485BPOS 1 d697818d485bpos.htm BOA AMERICA'S INCOME ANNUITY (IVA) BOA America's Income Annuity (IVA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 File No. 333-79327
Pre-Effective Amendment No. □
Post-Effective Amendment No. 27 ☑
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 File No. 811-08241
Amendment No. 155 ☑
(Check appropriate box or boxes.)
Nationwide Variable Account-9
(Exact Name of Registrant)
Nationwide Life Insurance Company
(Name of Depositor)
One Nationwide Plaza, Columbus, Ohio 43215
(Address of Depositor's Principal Executive Offices) (Zip Code)
(614) 249-7111
Depositor's Telephone Number, including Area Code
Robert W. Horner III, Vice President Corporate Governance and Secretary,
One Nationwide Plaza, Columbus, Ohio 43215
(Name and Address of Agent for Service)
May 1, 2014
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective (check appropriate box)
□ immediately upon filing pursuant to paragraph (b)
☑ on May 1, 2014 pursuant to paragraph (b)
□ 60 days after filing pursuant to paragraph (a)(1)
□ on (date) pursuant to paragraph (a)(1)
If appropriate, check the following box:
□ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

The Best of America® America's INCOME Annuity®
Individual Single Premium Immediate Fixed and Variable Annuity Contracts
Issued by
Nationwide Life Insurance Company
through its
Nationwide Variable Account-9
The date of this prospectus is May 1, 2014.
This prospectus contains basic information about the contracts that should be understood before investing. Read this prospectus carefully and keep it for future reference.
Variable annuities are complex investment products with unique benefits and advantages that may be particularly useful in meeting long-term savings and retirement needs. There are costs and charges associated with these benefits and advantages - costs and charges that are different, or do not exist at all, within other investment products. With help from financial consultants and advisors, investors are encouraged to compare and contrast the costs and benefits of the variable annuity described in this prospectus against those of other investment products, especially other variable annuity and variable life insurance products offered by Nationwide and its affiliates. Nationwide offers a wide array of such products, many with different charges, benefit features, and underlying investment options. This process of comparison and analysis should aid in determining whether the purchase of the contract described in this prospectus is consistent with the purchaser's investment objectives, risk tolerance, investment time horizon, marital status, tax situation, and other personal characteristics and needs.
The Statement of Additional Information (dated May 1, 2014), which contains additional information about the contracts and the Variable Account, has been filed with the SEC and is incorporated herein by reference. The table of contents for the Statement of Additional Information is on page 38. To obtain free copies of the Statement of Additional Information or to make any other service requests, contact Nationwide by one of the methods described in Contacting the Service Center.
Information about Nationwide and the variable annuity contract described in this prospectus (including the Statement of Additional Information) may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., or may be obtained upon payment of a duplicating fee by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, D.C. 20549. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. The SEC also maintains a web site (www.sec.gov) that contains the prospectus, the Statement of Additional Information, material incorporated by reference, and other information.
Variable annuities are not insured by the Federal Deposit Insurance Corporation or any other federal government agency, and are not deposits of, guaranteed by, or insured by the depository institution where offered or any of its affiliates. Variable annuity contracts involve investment risk and may lose value. These securities have not been approved or disapproved by the SEC, nor has the SEC passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.
The Sub-Accounts available under this contract invest in underlying mutual funds of the portfolio companies listed below.
• AllianceBernstein Variable Products Series Fund, Inc.
• American Century Variable Portfolios II, Inc.
• American Century Variable Portfolios, Inc.
• BlackRock Variable Series Funds, Inc.
• Dreyfus
• Dreyfus Investment Portfolios
• Dreyfus Variable Investment Fund
• Federated Insurance Series
• Fidelity Variable Insurance Products Fund
• Franklin Templeton Variable Insurance Products Trust
• Invesco
• Ivy Funds Variable Insurance Portfolios
• Janus Aspen Series
• MFS® Variable Insurance Trust
• Nationwide Variable Insurance Trust
• Neuberger Berman Advisers Management Trust
• Oppenheimer Variable Account Funds
• PIMCO Variable Insurance Trust
• Putnam Variable Trust
• T. Rowe Price Equity Series, Inc.
• The Universal Institutional Funds, Inc.
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• Van Eck VIP Trust
• Wells Fargo Advantage Variable Trust
For a complete list of the available Sub-Accounts, refer to Appendix A: Underlying Mutual Funds. For more information on the underlying mutual funds, refer to the prospectus for the mutual fund.
Any portion of the contract assets allocated to provide for Fixed Annuity Payments may not be reallocated to Sub-Accounts.
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Glossary of Special Terms
Accumulation Unit – An accounting unit of measure used to calculate the Variable Account Value prior to the Income Start Date.
Annual Benefit Leveling – The adjustment to Variable Annuity Payments to make payments made during the following 12 months equal in amount.
Annuitant – The person(s) whose length of life determines how long annuity payments are paid.
Annuity Income Unit – An accounting unit of measure used to calculate the Variable Annuity Payments after the first payment.
Assumed Investment Return – The net investment return required to maintain level Variable Annuity Payments. The selected Assumed Investment Return is used in calculating the initial Variable Annuity Payment.
Assumed Investment Return Factor – The Assumed Investment Return Factor adjusts the Annuity Income Unit value based on the Assumed Investment Return chosen by the Contract Owner and permitted under the contract.
Commutation Value – The value of future annuity payments that are converted (commuted) into a lump sum. The Commutation Value may be available for withdrawal under certain Income Options and may be available to beneficiaries when an Annuitant dies before all term certain payments have been made.
Contract Owner(s) – The person(s) who owns all rights under the contract.
Contract Value – The total value of any amount allocated to the Variable Account (plus or minus any investment experience) plus any amount designated for the purchase of Fixed Annuity Payments, less any distributions previously made.
Contract Year – Each year the contract is in force beginning with the date the contract is issued.
Daily Net Assets – A figure that is calculated at the end of each Valuation Date and represents the sum of all the Contract Owners' interests in the Sub-Accounts after the deduction of underlying mutual fund expenses.
Fixed Annuity Payment(s) – Annuity payments that are guaranteed by Nationwide as to dollar amount.
General Account – All assets of Nationwide other than those of the Variable Account or in other separate accounts of Nationwide.
Income Option – The type of annuity payments chosen by the Contract Owner.
Income Start Date – The date annuity payments actually commence.
Individual Retirement Annuity or IRA – An annuity contract that qualifies for favorable tax treatment under Section 408(b) of the Internal Revenue Code, but does not include Roth IRAs or Simple IRAs.
Nationwide – Nationwide Life Insurance Company.
Net Asset Value – The value of one share of an underlying mutual fund at the close of the New York Stock Exchange.
Non-Qualified Contract – A contract which does not qualify for favorable tax treatment as a Qualified Plan, IRA, Roth IRA, SEP IRA, Simple IRA, or Tax Sheltered Annuity.
Roth IRA – An annuity contract that qualifies for favorable tax treatment under Section 408A of the Internal Revenue Code.
SEC – Securities and Exchange Commission.
Service Center – The department of Nationwide responsible for receiving all service and transaction requests relating to the contract. For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility. For service and transaction requests communicated by telephone, the Service Center is Nationwide's operations processing facility. Information on how to contact the Service Center is in the Contacting the Service Center provision.
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Sub-Accounts – Divisions of the Variable Account, each of which invests in a single underlying mutual fund.
Tax Sheltered Annuity – An annuity that qualifies for favorable tax treatment under Section 403(b) of the Internal Revenue Code.
Valuation Date – Each day the New York Stock Exchange is open for business or any other day during which there is a sufficient degree of trading of underlying mutual fund shares such that their current Net Asset Value might be materially affected. Values of the Variable Account are determined as of the close of the New York Stock Exchange, which generally closes at 4:00 p.m. EST.
Valuation Period – The period of time commencing at the close of a Valuation Date and ending at the close of the New York Stock Exchange for the next succeeding Valuation Date.
Variable Account – Nationwide Variable Account-9, a separate account that Nationwide established to hold Contract Owner assets allocated to variable investment options. The Variable Account is divided into Sub-Accounts, each of which invests in a separate underlying mutual fund.
Variable Account Value – The amount allocated to the Variable Account plus or minus investment experience minus any previous Variable Account distributions.
Variable Annuity Payment(s) – Annuity payments which are not guaranteed as to dollar amount and which vary with the investment experience of the Sub-Accounts.
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Contract Expenses
The following tables describe the fees and expenses that a Contract Owner will pay when buying, owning, or surrendering the contract.
The first table describes the fees and expenses a Contract Owner will pay at the time the contract is purchased, surrendered, or when cash value is transferred between investment options. State premium taxes may also be deducted.
Contract Owner Transaction Expenses
Maximum Contingent Deferred Sales Charge ("CDSC") (as a percentage of purchase payments withdrawn)
 6% 1
Range of CDSC over time:
Number of Completed Years from Date of Issue   0   1   2   3   4   5   6   Thereafter  
CDSC Percentage   6%   6%   5%   5%   4%   3%   2%   0%  
Some state jurisdictions require a lower CDSC schedule. Please refer to your contract for state specific information.
Maximum Variable to Fixed Transfer Processing Fee (per variable to fixed transfer)
 lesser of $25
or 2% of the
amount
transferred2
Maximum Short-Term Trading Fee (as a percentage of transaction amount)
 1%
Maximum Check Processing Fee
 $15 3
Maximum Premium Tax Charge (as a percentage of purchase payments)
 5% 4
    
The next table describes the fees and expenses that a Contract Owner will pay periodically during the life of the contract (not including underlying mutual fund fees and expenses).
Recurring Contract Expenses
Variable Account Annual Expenses (annualized rate of total Variable Account charges assessed as a percentage of the Daily Net Assets)5
 		 
Mortality and Expense Risk Charge
 1.25%
America's Income Annuity Income FoundationSM Rider
 1.00% 6
Total Variable Account Charges (including this option)
 2.25%
    
1 For contracts issued on or after May 1, 2003 and before May 1, 2004, no CDSC will be assessed for withdrawals taken during the first Contract Year. A CDSC will only be assessed if a withdrawal (other than an annuity payment) is taken as permitted under certain income options. Income options permitting withdrawals are: Single Life with Term Certain, Joint and 100% Last Survivor with Term Certain, Term Certain, and Term Certain with Enhanced Death Benefit (only available for contracts issued prior to May 1, 2002). The Internal Revenue Code may impose restrictions on withdrawals from contracts issued as Tax Sheltered Annuities.
2 Currently, Nationwide does not assess a Variable to Fixed Transfer Processing Fee. If assessed, the fee will be deducted from the amount transferred.
3 For contracts issued on or after May 1, 2004, Nationwide reserves the right to assess a fee for each annuity payment made by check. The fee will be deducted from each annuity payment check issued.
4 Nationwide will charge between 0% and 5% of purchase payments for premium taxes levied by state or other government entities. The amount assessed to the contract will equal the amount assessed by the state or government entity.
5 These charges apply only to Sub-Account allocations. They are charged on a daily basis at the annualized rate noted above.
6 The America's Income Annuity Income FoundationSM Rider is a guaranteed variable annuity payment option that may only be elected at application. Election of the option is irrevocable. It is not available in conjunction with Fixed Annuity Payments or Term Certain options of less than 10 years. If elected, Nationwide reserves the right to assess the Variable to Fixed Transfer Processing Fee described above.
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Underlying Mutual Fund Annual Expenses
The next table provides the minimum and maximum total operating expenses, as of December 31, 2013, charged by the underlying mutual funds that the Contract Owner may pay periodically during the life of the contract. The table does not reflect Short-Term Trading Fees. More detail concerning each underlying mutual fund's fees and expenses is contained in the prospectus for each underlying mutual fund.
Total Annual Underlying Mutual Fund Operating Expenses
  Minimum   Maximum
(expenses that are deducted from underlying mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses, as a percentage of average underlying mutual fund assets) 0.29%   2.25%
The minimum and maximum underlying mutual fund operating expenses indicated above do not reflect voluntary or contractual reimbursements and/or waivers applied to some underlying mutual funds. Therefore, actual expenses could be lower. Refer to the underlying mutual fund prospectuses for specific expense information.
Synopsis of the Contracts
The annuity described in this prospectus is intended to provide benefits to a single or joint owner and his/her beneficiaries. The contracts described in this prospectus are Individual Single Premium Immediate Fixed and Variable Annuity Contracts.
The contracts can be categorized as:
• Individual Retirement Annuities ("IRAs")
• Non-Qualified Contracts
• Roth IRAs
• Tax Sheltered Annuities
Nationwde no longer issues the contract as a Tax Sheltered Annuity, except to participants in ERISA and ORP plans that have purchased a Nationwide individual annuity contract before September 25, 2007.
For more detailed information with regard to the differences in contract types, see Appendix E: Contract Types and Tax Information.
Prospective purchasers may apply to purchase a contract through broker dealers that have entered into a selling agreement with Nationwide Investment Services Corporation.
Minimum Initial and Subsequent Purchase Payments
The minimum single purchase payment is $35,000. No additional purchase payments will be accepted or permitted. However, if the contract is being funded from multiple sources, Nationwide, at its sole discretion, may permit multiple deposits into the contract prior to the Income Start Date.
Mortality and Expense Risk Charge
Nationwide deducts a Mortality and Expense Risk Charge equal to an annualized rate of 1.25% of the Daily Net Assets. The Mortality and Expense Risk Charge compensates Nationwide for bearing certain mortality and expense risks, as well as for administrative expenses. Nationwide may realize a profit from this charge.
Sales Charge
Nationwide does not deduct a sales charge from purchase payments upon deposit into the contract. However, if the Income Option elected permits withdrawals other than annuity payments, Nationwide may deduct a Contingent Deferred Sales Charge ("CDSC") upon such withdrawal. This CDSC reimburses Nationwide for sales expenses. The amount of the CDSC will not exceed 6% of purchase payments withdrawn.
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Variable to Fixed Transfer Processing Fee
Nationwide reserves the right to assess a Variable to Fixed Transfer Processing Fee, which will equal the lesser of $25 or 2% of the amount transferred. The fee compensates Nationwide for transaction costs associated with making variable to fixed transfers. The fee will be deducted from the amount transferred. Nationwide may need to assess this fee against contracts that have elected the AIA Income Foundation Rider while not assessing it against contracts that have not elected the rider due to the potential for Nationwide to experience increased transaction costs associated with selling the financial instruments held to support the guarantees associated with the rider. Currently, Nationwide does not assess this fee against any contracts.
Check Processing Fee
For contracts issued on or after May 1, 2004, Nationwide reserves the right to assess a fee, not to exceed $15, for each annuity payment made by check. No such charge will be assessed to contracts issued prior to May 1, 2004. The fee compensates Nationwide for expenses related to processing and mailing checks. The fee will be deducted from each annuity payment check issued. Nationwide does not currently assess this fee.
America's Income Annuity ("AIA") Income FoundationSM Rider
If the Contract Owner elected the America's Income Annuity Income Foundation Rider, Nationwide will deduct an additional amount equal to an annualized rate of 1.00% of the Daily Net Assets. This charge reimburses Nationwide for the increased market risk assumed in order to provide the benefit of guaranteed payments associated with this optional benefit.
Underlying Mutual Fund Annual Expenses
The underlying mutual funds charge fees and expenses that are deducted from underlying mutual fund assets. These fees and expenses are in addition to the fees and expenses assessed by the contract. The prospectus for each underlying mutual fund provides information regarding the fees and expenses applicable to the fund.
Short-Term Trading Fees
Some underlying mutual funds may assess (or reserve the right to assess) a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of allocation to the Sub-Account.
Any short-term trading fee assessed by any underlying mutual fund available in conjunction with the contracts described in this prospectus will equal 1% of the amount determined to be engaged in short-term trading.
Annuity Payments
Annuity payments begin on the Income Start Date and will be based on the Income Option chosen at the time of application (see Income Options). Nationwide will send annuity payments no later than seven days after each annuity payment date.
Taxation
How distributions from an annuity contract are taxed depends on the type of contract issued and the purpose for which the contract is purchased. Generally, distributions from an annuity contract, including the payment of death benefits, are taxable to the extent they exceed investment in the contract. Nationwide will charge against the contract any premium taxes levied by any governmental authority. Premium tax rates currently range from 0% to 5% (see Premium Taxes and Appendix E: Contract Types and Tax Information).
Cancellation of the Contract
Under state insurance laws, Contract Owners have the right, during a limited period of time, to examine their contract and decide if they want to keep it or cancel it. This right is referred to as a "free look" right. The length of this time period depends on state law and may vary depending on whether the purchase is a replacement of another annuity contract.
If the Contract Owner elects to cancel the contract pursuant to the free look provision, where required by law, Nationwide will return the greater of the Contract Value or the amount of purchase payment(s) applied during the free look period, less any withdrawals from the contract, and applicable federal and state income tax withholding. Otherwise, Nationwide will return the Contract Value, less any withdrawals from the contract, and applicable federal and state income tax withholding (see Right to Examine and Cancel).
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Condensed Financial Information
The value of an Accumulation Unit is determined on the basis of changes in the per share value of the underlying mutual funds and the assessment of Variable Account charges. Refer to Appendix D: Condensed Financial Information for Accumulation Unit value information.
Financial Statements
Financial statements for the Variable Account and consolidated financial statements for Nationwide are located in the Statement of Additional Information. A current Statement of Additional Information may be obtained, without charge, by contacting the Service Center.
Nationwide Life Insurance Company
Nationwide, the depositor, is a stock life insurance company organized under Ohio law in March 1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities, and retirement products. Nationwide is admitted to do business in all states, the District of Columbia, and Puerto Rico.
Nationwide is a member of the Nationwide group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December 1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.
Nationwide Investment Services Corporation
The contracts are distributed by the general distributor, Nationwide Investment Services Corporation ("NISC"), One Nationwide Plaza, Columbus, Ohio 43215. NISC is a wholly-owned subsidiary of Nationwide.
Investing in the Contract
The contracts described in this prospectus are combination fixed and variable immediate annuity contracts. The following provisions discuss those interests under the contracts that relate to the portion of the purchase payment allocated to Variable Annuity Payments. For a discussion of the interests allocated to Fixed Annuity Payments, see Appendix B: Fixed Annuity Payments.
The Variable Account and Underlying Mutual Funds
Nationwide Variable Account-9 is a variable account that invests in the underlying mutual funds listed in Appendix A: Underlying Mutual Funds. Nationwide established the Variable Account on May 22, 1997 pursuant to Ohio law. Although the Variable Account is registered with the SEC as a unit investment trust pursuant to the Investment Company Act of 1940 ("1940 Act"), the SEC does not supervise the management of Nationwide or the Variable Account.
Income, gains, and losses credited to or charged against the Variable Account reflect the Variable Account's own investment experience and not the investment experience of Nationwide's other assets. The Variable Account's assets are held separately from Nationwide's assets and are not chargeable with liabilities incurred in any other business of Nationwide. Nationwide is obligated to pay all amounts promised to Contract Owners under the contracts.
The Variable Account is divided into Sub-Accounts, each of which invests in shares of a single underlying mutual fund. Nationwide uses the assets of each Sub-Account to buy shares of the underlying mutual funds based on Contract Owner instructions.
Contract Owners receive underlying mutual fund prospectuses when they make their initial Sub-Account allocations and any time they change those allocations. Contract Owners can obtain prospectuses for underlying mutual funds free of charge at any time by contacting the Service Center. Contract Owners should read these prospectuses carefully before investing.
Underlying mutual funds in the Variable Account are NOT publicly traded mutual funds. They are only 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.
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The investment advisers of the underlying mutual funds may manage publicly traded mutual funds with similar names and investment objectives. However, the underlying mutual funds are NOT directly related to any publicly traded mutual fund. Contract Owners should not compare the performance of a publicly traded fund with the performance of underlying mutual funds participating in the Variable Account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds.
The particular underlying mutual funds available under the contract may change from time to time. Specifically, underlying mutual funds or underlying mutual fund share classes that are currently available may be removed or closed off to future investment. New underlying mutual funds or new share classes of currently available underlying mutual funds may be added. Contract Owners will receive notice of any such changes that affect their contract.
Voting Rights
Contract Owners with assets allocated to Sub-Accounts are entitled to certain voting rights. Nationwide will vote Contract Owner shares at special shareholder meetings based on Contract Owner instructions. However, if the law changes and Nationwide is allowed to vote in its own right, it may elect to do so.
Contract Owners with voting interests in an underlying mutual fund will be notified of issues requiring the shareholders' vote as soon as possible before the shareholder meeting. Notification will contain proxy materials and a form with which to give Nationwide voting instructions. Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. What this means is that when only a small number of Contract Owners vote, each vote has a greater impact on, and may control, the outcome.
The number of shares which a Contract Owner may vote is determined by dividing the cash value of the amount they have allocated to an underlying mutual fund by the Net Asset Value of that underlying mutual fund. Nationwide will designate a date for this determination not more than 90 days before the shareholder meeting.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other insurance companies, as well as through other separate accounts of Nationwide. Nationwide does not anticipate any disadvantages to this. However, it is possible that a conflict may arise between the interests of the Variable Account and one or more of the other separate accounts in which these underlying mutual funds participate.
Material conflicts may occur due to a change in law affecting the operations of variable life insurance policies and variable annuity contracts, or differences in the voting instructions of the Contract Owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect Contract Owners and variable annuity payees, including withdrawal of the Variable Account from participation in the underlying mutual fund(s) involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs:
(1) shares of a current underlying mutual fund are no longer available for investment; or
(2) further investment in an underlying mutual fund is inappropriate.
No substitution of shares may take place without the prior approval of the SEC. All affected Contract Owners will be notified in the event there is a substitution, elimination, or combination of shares.
Deregistration of the Variable Account
Nationwide may deregister the Variable Account under the 1940 Act in the event the Variable Account meets an exemption from registration under the 1940 Act, if there are no shareholders in the separate account, or for any other purpose approved by the SEC.
No deregistration may take place without the prior approval of the SEC. All affected Contract Owners will be notified in the event Nationwide deregisters the Variable Account.
Contacting the Service Center
All inquiries, paperwork, information requests, service requests, and transaction requests should be made to the Service Center:
• by telephone at 1-800-848-6331 (TDD 1-800-238-3035)
• by mail to P.O. Box 182021, Columbus, Ohio 43218-2021
• by fax at 1-888-634-4472
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• by Internet at www.nationwide.com.
Nationwide reserves the right to restrict or remove the ability to submit service requests via Internet, phone, or fax upon written notice.
Not all methods of communication are available for all types of requests. To determine which methods are permitted for a particular request, refer to the specific transaction provision in this prospectus or call the Service Center. Requests submitted by means other than described in this prospectus could be returned or delayed.
Service and transaction requests will generally be processed on the Valuation Date they are received at the Service Center as long as the request is in good order. Good order generally means that all necessary information to process the request is complete and in a form acceptable to Nationwide. If a request is not in good order, Nationwide will take reasonable actions to obtain the information necessary to process the request. Requests that are not in good order may be delayed or returned. Nationwide reserves the right to process any purchase payment or withdrawal request sent to a location other than the Service Center on the Valuation Date it is received at the Service Center. On any day the post office is closed, Nationwide is unable to retrieve service and transaction requests that are submitted by mail. This will result in a delay of the delivery of those requests to the Service Center.
Nationwide may be required to provide information about one or more contracts to government regulators. If mandated under applicable law, Nationwide may be required to reject a purchase payment and to refuse to process transaction requests for transfers, withdrawals, loans, and/or death benefits until instructed otherwise by the appropriate regulator.
Nationwide will use reasonable procedures to confirm that instructions are genuine and will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may record telephone requests. Telephone and computer systems may not always be available. Any telephone system or computer can experience outages or slowdowns for a variety of reasons. The outages or slowdowns could prevent or delay processing. Although Nationwide has taken precautions to support heavy use, it is still possible to incur an outage or delay. To avoid technical difficulties, submit transaction requests by mail.
The Contract in General
In order to comply with the USA Patriot Act and rules promulgated thereunder, Nationwide has implemented procedures designed to prevent contracts described in this prospectus from being used to facilitate money laundering or the financing of terrorist activities.
Due to state law variations, the options and benefits described in this prospectus may vary or may not be available depending on the state in which the contract is issued. Possible state law variations include, but are not limited to, minimum initial purchase payment amounts, investment options, age issuance limitations, availability of certain optional benefits, free look rights, annuity payment options, ownership and interests in the contract, the assumed investment return percentages, and death benefit calculations. This prospectus describes all the material features of the contract. To review a copy of the contract and any endorsements, contact the Service Center.
Nationwide will not contest the contract.
The annuity described in this prospectus is intended to provide benefits to a single individual and his/her beneficiaries. It is not intended to be used by institutional investors, in connection with other Nationwide contracts that have the same Annuitant, or in connection with other Nationwide contracts that have different Annuitants, but the same Contract Owner. If Nationwide determines that the risks it intended to assume in issuing the contract have been altered by misusing the contract as described above, Nationwide reserves the right to take any action it deems necessary to reduce or eliminate the altered risk. Nationwide also reserves the right to take any action it deems necessary to reduce or eliminate altered risk resulting from materially false, misleading, incomplete, or otherwise deficient information provided by the Contract Owner.
These contracts are offered to customers of various financial institutions and brokerage firms. No financial institution or brokerage firm is responsible for any of the contractual insurance benefits and features guaranteed under the contracts. These guarantees are the sole responsibility of Nationwide.
In general, deferred variable annuities are long-term investments; they are not intended as short-term investments. The contracts associated with this prospectus are not intended to be sold to a terminally ill Contract Owner or Annuitant. Accordingly, Nationwide has designed the contract to offer features, pricing, and investment options that encourage long-term ownership. It is very important that Contract Owners and prospective purchasers understand all the costs associated
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with owning a contract, and if and how those costs change during the lifetime of the contract. Contract charges may not be the same in later Contract Years as they are in early Contract Years. The various contract charges are assessed in order to compensate Nationwide for administrative services, distribution and operational expenses, and assumed actuarial risks associated with the contract.
Following is a discussion of some relevant factors that may be of particular interest to prospective investors.
Distribution, Promotional, and Sales Expenses
Nationwide pays commissions to the firms that sell the contracts. The maximum gross commission that Nationwide will pay on the sale of the contracts is 6.5% of purchase payments. Note: The individual registered representatives typically receive only a portion of this amount; the remainder is retained by the firm. Nationwide may also, instead of a premium-based commission, pay an asset-based commission (sometimes referred to as "trails" or "residuals"), or a combination of the two.
In addition to or partially in lieu of commission, Nationwide may also pay the selling firms a marketing allowance, which is based on the firm's ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide's products. For more information on the exact compensation arrangement associated with this contract, consult your sales representative.
Underlying Mutual Fund Payments
Nationwide's Relationship with the Underlying Mutual Funds
The underlying mutual funds incur expenses each time they sell, administer, or redeem their shares. The Variable Account aggregates Contract Owner purchase, redemption, and transfer requests and submits net or aggregated purchase/redemption requests to each underlying mutual fund daily. The Variable Account (not the Contract Owners) is the underlying mutual fund shareholder. When the Variable Account aggregates transactions, the underlying mutual fund does not incur the expense of processing individual transactions it would normally incur if it sold its shares directly to the public. Nationwide incurs these expenses instead.
Nationwide also incurs the distribution costs of selling the contract (as discussed above), which benefit the underlying mutual funds by providing Contract Owners with Sub-Account options that correspond to the underlying mutual funds.
An investment adviser or subadviser of an underlying mutual fund or its affiliates may provide Nationwide or its affiliates with wholesaling services that assist in the distribution of the contract and may pay Nationwide or its affiliates to participate in educational and/or marketing activities. These activities may provide the adviser or subadviser (or their affiliates) with increased exposure to persons involved in the distribution of the contract.
Types of Payments Nationwide Receives
In light of the above, the underlying mutual funds and their affiliates make certain payments to Nationwide or its affiliates (the "payments"). The amount of these payments is typically based on a percentage of assets invested in the underlying mutual funds attributable to the contracts and other variable contracts Nationwide and its affiliates issue, but in some cases may involve a flat fee. These payments may be used by Nationwide for any corporate purpose, which include reducing the prices of the contracts, paying expenses that Nationwide or its affiliates incur in promoting, marketing, and administering the contracts and the underlying mutual funds, and achieving a profit.
Nationwide or its affiliates receive the following types of payments:
• Underlying mutual fund 12b-1 fees, which are deducted from underlying mutual fund assets;
• Sub-transfer agent fees or fees pursuant to administrative service plans adopted by the underlying mutual fund, which may be deducted from underlying mutual fund assets; and
• Payments by an underlying mutual fund's adviser or subadviser (or its affiliates). Such payments may be derived, in whole or in part, from the advisory fee, which is deducted from underlying mutual fund assets and is reflected in mutual fund charges.
Furthermore, Nationwide benefits from assets invested in Nationwide's affiliated underlying mutual funds (i.e., Nationwide Variable Insurance Trust) because its affiliates also receive compensation from the underlying mutual funds for investment advisory, administrative, transfer agency, distribution, and/or other services. Thus, Nationwide may receive more revenue with respect to affiliated underlying mutual funds than unaffiliated underlying mutual funds.
Nationwide took into consideration the anticipated payments from the underlying mutual funds when it determined the charges imposed under the contracts (apart from fees and expenses imposed by the underlying mutual funds). Without these payments, Nationwide would have imposed higher charges under the contract.
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Amount of Payments Nationwide Receives
For the year ended December 31, 2013, the underlying mutual fund payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.75% (as a percentage of the average Daily Net Assets invested in the underlying mutual funds) offered through this contract or other variable contracts that Nationwide and its affiliates issue. Payments from investment advisers or subadvisers to participate in educational and/or marketing activities have not been taken into account in this percentage.
Most underlying mutual funds or their affiliates have agreed to make payments to Nationwide or its affiliates, although the applicable percentages may vary from underlying mutual fund to underlying mutual fund and some may not make any payments at all. Because the amount of the actual payments Nationwide and its affiliates receive depends on the assets of the underlying mutual funds attributable to the contract, Nationwide and its affiliates may receive higher payments from underlying mutual funds with lower percentages (but greater assets) than from underlying mutual funds that have higher percentages (but fewer assets).
Identification of Underlying Mutual Funds
Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following: investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency, and fund expenses. Another factor Nationwide considers during the identification process is whether the underlying mutual fund's adviser or subadviser is a Nationwide affiliate or whether the underlying mutual fund, its adviser, its subadviser(s), or an affiliate will make payments to Nationwide or its affiliates.
There may be underlying mutual funds with lower fees, as well as other variable contracts that offer underlying mutual funds with lower fees. The purchaser should consider all of the fees and charges of the contract in relation to its features and benefits when making a decision to invest. Note: Higher contract and underlying mutual fund fees and charges have a direct effect on and may lower investment performance.
Treatment of Unclaimed Property
Every state has unclaimed property laws which generally declare annuity contracts to be abandoned after a period of inactivity of three to five years from the contract's Annuity Commencement Date or the date Nationwide becomes informed that a death benefit is due and payable. For example, if the payment of a death benefit has been triggered, but, if after a thorough search, Nationwide is still unable to locate the beneficiary of the death benefit, or the beneficiary does not come forward to claim the death benefit in a timely manner, Nationwide will escheat the death benefit to the abandoned property division or unclaimed property office of the state in which the beneficiary or the Contract Owner last resided, as shown on Nationwide's books and records, or to Ohio, Nationwide's state of domicile. If a claim is subsequently made, the state is obligated to pay any such amount (without interest) to the designated recipient upon presentation of proper documentation.
To prevent escheatment, it is important to update beneficiary designations - including complete names, complete addresses, phone numbers, and social security numbers - as they change. Such updates should be sent to the Service Center.
Profitability
Nationwide does consider profitability when determining the charges in the contract. In early Contract Years, Nationwide does not anticipate earning a profit, since that is a time when administrative and distribution expenses are typically higher. Nationwide does, however, anticipate earning a profit in later Contract Years. In general, Nationwide's profit will be greater the higher the investment return and the longer the contract is held.
Contract Modification
Nationwide may modify the contract, but no modification will affect the amount or term of any contract unless a modification is required to conform the contract to applicable federal or state law. No modification will affect the method by which Contract Value is determined.
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Standard Charges and Deductions
Mortality and Expense Risk Charge
Nationwide deducts a Mortality and Expense Risk Charge equal to an annualized rate of 1.25% of the Daily Net Assets. The Mortality and Expense Risk Charge compensates Nationwide for bearing certain mortality and expense risks, as well as for administrative expenses. Nationwide may realize a profit from this charge.
Contingent Deferred Sales Charge
No sales charge deduction is made from the purchase payment upon deposit into the contract. However, if the Income Option elected permits withdrawals other than regular annuity payments, Nationwide will deduct a CDSC upon such withdrawal. The CDSC will not exceed 6% of the amount withdrawn.
The CDSC is calculated by multiplying the applicable CDSC percentage (noted below) by the amount withdrawn. The applicable CDSC will not be applied to any amount in excess of the single purchase payment.
The CDSC applies as follows:
Number of Completed Years from Date of Issue   0   1   2   3   4   5   6   7+
CDSC Percentage
   6%   6%   5%   5%   4%   3%   2%   0%
For contracts issued on or after May 1, 2003 and before May 1, 2004, no CDSC will be assessed for withdrawals taken during the first Contract Year.
The CDSC is used to cover sales expenses, including commissions, production of sales material, and other promotional expenses. If expenses are greater than the CDSC, the shortfall will be made up from Nationwide's General Account, which may indirectly include portions of the Variable Account charges, since Nationwide may generate a profit from these charges.
Contract Owners taking withdrawals (other than substantially equal periodic payments for life) before age 59½ may be subject to a 10% tax penalty. In addition, all or a portion of the withdrawal may be subject to federal income taxes.
Premium Taxes
Nationwide will charge against the Contract Value any premium taxes levied by a state or other government entity. Premium tax rates currently range from 0% to 5% and vary from state to state. This range is subject to change. Nationwide will assess premium taxes to the contract at the time Nationwide is assessed the premium taxes by the state. Premium taxes may be deducted from death benefit proceeds.
Short-Term Trading Fees
Some underlying mutual funds may assess (or reserve the right to assess) a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of allocation to the Sub-Account.
Short-term trading fees are intended to compensate the underlying mutual fund (and Contract Owners with interests in the underlying mutual fund) for the negative impact on fund performance that may result from frequent, short-term trading strategies. Short-term trading fees are not intended to affect the large majority of Contract Owners not engaged in such strategies.
Any short-term trading fee assessed by any underlying mutual fund available in conjunction with the contracts described in this prospectus will equal 1% of the amount determined to be engaged in short-term trading.
Short-term trading fees will only apply to those Sub-Accounts corresponding to underlying mutual funds that charge such fees (see the underlying mutual fund prospectus). Contract Owners are responsible for monitoring the length of time allocations are held in any particular Sub-Account. Nationwide will not provide advance notice of the assessment of any applicable short-term trading fee.
To determine whether a particular underlying mutual fund assesses (or reserves the right to assess) a short-term trading fee, see Appendix A: Underlying Mutual Funds.
If a short-term trading fee is assessed, the underlying mutual fund will charge the Variable Account 1% of the amount determined to be engaged in short-term trading. The Variable Account will then pass the short-term trading fee on to the specific Contract Owner that engaged in short-term trading by deducting an amount equal to the short-term trading fee from that Contract Owner's Sub-Account value. All such fees will be remitted to the underlying mutual fund; none of the fee proceeds will be retained by Nationwide or the Variable Account.
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When multiple purchase payments (or exchanges) are made to a Sub-Account that is subject to short-term trading fees, transfers will be considered to be made on a first in/first out (FIFO) basis for purposes of determining short-term trading fees. In other words, units held the longest time will be treated as being transferred first, and units held for the shortest time will be treated as being transferred last.
Some transactions are not subject to the short-term trading fees, including:
• withdrawals from the contract (as permitted under the selected Income Option);
• withdrawals of Annuity Income Units to make annuity payments;
• withdrawals of Annuity Income Units to pay a death benefit; or
• variable to fixed transfers, as discussed in the Transfers between Variable Annuity Payments and Fixed Annuity Payments provision.
New share classes of currently available underlying mutual funds may be added as investment options under the contracts. These new share classes may require the assessment of short-term trading fees. When these new share classes are added, new purchase payment allocations and exchange reallocations to the underlying mutual funds in question may be limited to the new share class.
Variable to Fixed Transfer Processing Fee
Nationwide reserves the right to assess a Variable to Fixed Transfer Processing Fee, which will equal the lesser of $25 or 2% of the amount transferred. The fee compensates Nationwide for transaction costs associated with making variable to fixed transfers. The fee will be deducted from the amount transferred. Nationwide may need to assess this fee against contracts that have elected the AIA Income Foundation Rider while not assessing it against contracts that have not elected the rider due to the potential for Nationwide to experience increased transaction costs associated with selling the financial instruments held to support the guarantees associated with the rider. Currently, Nationwide does not assess this fee against any contracts.
Check Processing Fee
For contracts issued on or after May 1, 2004, Nationwide reserves the right to assess a fee, not to exceed $15, for each annuity payment made by check. No such charge will be assessed to contracts issued prior to May 1, 2004. The fee compensates Nationwide for expenses related to processing and mailing checks. The fee will be deducted from each annuity payment check issued. Nationwide does not currently assess this fee.
Optional Contract Benefits, Charges, and Deductions
America's Income Annuity ("AIA") Income FoundationSM Rider
The AIA Income Foundation Rider can only be elected at the time of application. If elected, Nationwide will deduct an additional 1.00% of the Daily Net Assets for the life of the contract. The charge associated with the AIA Income Foundation Rider is not assessed against the fixed annuity portion of the contract. Election of the rider is irrevocable.
The AIA Income Foundation Rider provides the Contract Owner with a choice between two guaranteed Variable Annuity Payment options (each a "GVAP option"): an 85% Level Floor, or a 75% Step-Up Floor. Once the GVAP option is chosen, it cannot be changed.
Nationwide calculates and pays Variable Annuity Payments under the contract according to the Income Option and frequency selected by the Contract Owner. Variable Annuity Payments will vary with the performance of the Sub-Accounts chosen by the Contract Owner. Contract Owners who elect the AIA Income Foundation Rider receive a guarantee that when market declines cause their Variable Annuity Payment amount to fall below the guaranteed floor amount, Nationwide will make up the difference such that the Contract Owner will receive a guaranteed payment, regardless of poor market performance.
Nationwide determines the first guaranteed floor payment at contract issuance. If the 85% Level Floor is elected, the guaranteed floor payment amount determined at contract issuance will not change for the life of the contract, subject to the terms of the contract (see Reductions in the Guaranteed Floor Payment). If the 75% Step-Up Floor is elected, Nationwide will recalculate the guaranteed floor payment on each Income Start Date Anniversary. The guaranteed floor payment under this option will not be reduced, and may even increase, subject to the terms of the contract (see Reduction in the Guaranteed Floor Payment and 75% Step-Up Floor).
The AIA Income Foundation Rider will also protect payments for contracts that have elected Annual Benefit Leveling (see Guaranteed Floor Payment and Annual Benefit Leveling).
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Determining the Guaranteed Floor Payment
At contract issuance, Nationwide will determine the amount of the initial guaranteed floor payment. Nationwide will use a projected first Variable Annuity Payment and apply the chosen GVAP option to determine the amount of the initial guaranteed floor payment. Nationwide considers the following factors when calculating the projected first Variable Annuity Payment:
• the amount allocated to Variable Annuity Payments;
• any applicable contract charges;
• an Assumed Investment Return of 3.0%; and
• the annuity purchase rate guaranteed at the time of contract issuance.
Annuity purchase rates may vary by Income Option, Annuitant age, sex, time of issue, annuity type (fixed vs. variable), and Assumed Investment Return.
The guaranteed floor payment under the 85% Level Floor option will be 85% of the first projected Variable Annuity Payment described above. This guaranteed floor payment will remain in effect for the life of the contract, subject to the contract's terms (see Reductions in the Guaranteed Floor Payment). If at any time during the life of the contract the Contract Owner's Variable Annuity Payments fall below the guaranteed floor payment established at contract issuance, Nationwide will pay the Contract Owner the guaranteed floor payment.
The guaranteed floor payment under the 75% Step-Up Floor option will be 75% of the first projected Variable Annuity Payment described above. This initial guaranteed floor payment will remain in effect until the first Income Start Date anniversary, subject to the contract's terms (see Reductions in the Guaranteed Floor Payment). On each Income Start Date anniversary, Nationwide will recalculate the guaranteed floor payment (see 75% Step-Up Floor). If at any time during the life of the contract the Contract Owner's Variable Annuity Payments fall below the guaranteed floor payment currently in effect, Nationwide will pay the current guaranteed floor payment.
The first Variable Annuity Payment due to the Contract Owner will be calculated on the Income Start Date. Nationwide uses the Assumed Investment Return to determine the amount of the first Variable Annuity Payment. For contracts that have elected the AIA Income Foundation Rider, the Assumed Investment Return will be 3.0%. See Variable Annuity Payment for more information on how the first and subsequent Variable Annuity Payments are calculated.
The first Variable Annuity Payment made to the Contract Owner is protected by the GVAP option selected. Thus, the first payment received by the Contract Owner could be the guaranteed floor payment if the first calculated Variable Annuity Payment is less than the guaranteed floor payment.
75% Step-Up Floor
On each one-year anniversary of the Income Start Date, Nationwide will recalculate the guaranteed floor payment under this option. The new guaranteed floor payment amount on each Income Start Date anniversary will be the greater of:
1. the previous year's guaranteed floor payment; or
2. 75% of the Variable Annuity Payment calculated on the Income Start Date anniversary (without regard to Annual Benefit Leveling, if elected).
The guaranteed floor payment will be recalculated each Income Start Date Anniversary until the contract is terminated. There is no maximum guaranteed amount. The guaranteed floor payment amount is subject to reduction in accordance with the terms of the contract (see Reductions in the Guaranteed Floor Payment).
Guaranteed Floor Payment and Annual Benefit Leveling
If the Contract Owner has elected to receive level payments under Annual Benefit Leveling, Nationwide will compare the payment due under Annual Benefit Leveling with the guaranteed floor payment calculated on the Income Start Date (and each subsequent Income Start Date anniversary). The payment actually received, if Annual Benefit Leveling is in effect, will be the higher of the two calculations. Nationwide will make this comparison on each Income Start Date anniversary for as long as the Contract Owner continues Annual Benefit Leveling (see Annual Benefit Leveling).
Reductions in the Guaranteed Floor Payment
Certain transactions permitted under the contract may cause a reduction in the guaranteed floor payment in effect at the time of the transaction. Typically, if circumstances cause a reduction in the calculated Variable Annuity Payment, then a proportionate reduction in the guaranteed floor payment will also occur.
If the Contract Owner incurs a redemption fee according to the Short-Term Trading Fees provision, the guaranteed floor payment will be reduced by the ratio of the amount of the fee to the Variable Account Value immediately preceding the transfer request.
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If the Contract Owner makes a variable to fixed transfer (see Transfers between Variable Annuity Payments and Fixed Annuity Payments), the guaranteed floor payment will be reduced by the ratio of the amount transferred from the Variable Account to the Variable Account Value immediately prior to the transfer request.
The contract permits withdrawals before the Income Start Date and after the Income Start Date, according to the Income Option selected. Any time the Contract Owner elects a partial withdrawal of Variable Annuity Payments, Nationwide will reduce the number of Annuity Income Units provided by each Sub-Account on a pro-rata basis for the remainder of the term certain period. For contracts that have elected the AIA Income Foundation Rider, this reduction in Annuity Income Units will result in a proportionate reduction in the guaranteed floor payment amount for the remainder of the term certain period (see Partial Withdrawals (Partial Redemptions)).
If, at the end of the term certain period the Annuitant is still alive, annuity payments will be calculated as if no withdrawal had been taken (see Income Options). Accordingly, the guaranteed floor payment will also be calculated as if no withdrawals had been taken. In these circumstances, the guaranteed floor payment will be at least what it was immediately prior to the first withdrawal.
A full withdrawal is only permitted under certain Income Options. The Commutation Value of Variable Annuity Payments upon full withdrawal of a contract that has elected the AIA Income Foundation Rider will be calculated in the same manner as a contract that has not elected the rider. However, the actual value will be less due to the charge associated with the rider (see Full Withdrawals (Full Redemptions)).
Under certain joint and life Income Options the calculated Variable Annuity Payment due following the death of the first Annuitant will be reduced according to the terms of the applicable Income Option (see Income Options). Accordingly, the guaranteed floor payment will be reduced by the same percentage as the calculated Variable Annuity Payment is reduced under the applicable Income Option.
If the contract is issued as a Tax Sheltered Annuity, the Internal Revenue Code requires certain minimum distributions (see Appendix E: Contract Types and Tax Information). If a minimum distribution is required, the impact to the guaranteed floor payment will be the same as a partial withdrawal.
Continuation of Payments Upon Death of Annuitant
The AIA Income Foundation Rider applies to the Continuation of Payments Death Benefit Option if elected by any beneficiary. The guaranteed floor payment for multiple beneficiaries who elect to continue payments will be based upon:
• The current guaranteed floor payment that would be in effect if the Annuitant had not died; and
• The percentage of the death benefit the beneficiary is entitled to receive (see Death of Annuitant).
Conditions Associated with the AIA Income Foundation Rider
The AIA Income Foundation Rider must be elected at application and the election is irrevocable. The applicant must choose one of the GVAP options: either the 85% Level Floor or the 75% Step-Up Floor. Once the GVAP option is chosen, it cannot be changed. The following conditions apply when the AIA Income Foundation Rider is elected:
• Term-certain payment options with periods of less than 10 years cannot be elected.
• Nationwide reserves the right to assess a fee on any variable to fixed transfer of Contract Value when the rider is elected. The fee will be the lesser of $25 or 2% of the amount transferred. This transfer fee may not apply to contracts that do not elect the Rider (see Standard Charges and Deductions).
• If only Fixed Annuity Payments are elected, the rider is unavailable.
• The list of available Sub-Accounts in the contract is restricted.
• Allocations (including exchanges) to the Sub-Accounts are subject to certain allocation restrictions.
There is no guaranteed commutation value associated with the election of a GVAP option. Accordingly, amounts paid by Nationwide due to withdrawal or lump sum death benefit distribution will not reflect the future value of any guaranteed floor payments (see Commutation of Variable Annuity Payments).
Available Sub-Accounts
Nationwide makes only certain Sub-Accounts available when a Contract Owner elects the AIA Income Foundation Rider. Nationwide selected the available options on the basis of certain risk factors associated with the underlying mutual fund's investment objective. Sub-Accounts not made available in conjunction with the AIA Income Foundation Rider were excluded on the basis of similar risk considerations.
Nationwide will limit the amount of Variable Account Value that can be allocated to certain Sub-Accounts when the AIA Income Foundation Rider is elected.
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The available Sub-Accounts are listed below in three categories. Currently, there are no allocation restrictions associated with the Sub-Accounts listed as Category I or Category III. However, if any allocation is made to a Category II Sub-Account, Nationwide may require up to 30% of the Variable Account Value also be invested in Category I Investment Sub-Accounts. Currently, the required Category I allocation is only 20%.
For example, if a Contract Owner who elected the AIA Income Foundation Rider selected all Category III Sub-Accounts on his or her application, Nationwide would not require any allocation to Category I. However, if that same Contract Owner subsequently makes an exchange of Variable Account Value from Category III to Category II, Nationwide will require that the Contract Owner also allocate at least 20% of the current Variable Account Value to Category I. In the future Nationwide could require up to 30% be allocated to Category I in this same scenario.
Subsequent transfer requests may be rejected if their execution would result in final allocations of Variable Account Value that do not meet the current allocation requirements. These allocation restrictions apply to the initial purchase payment as well as any subsequent transfers among the Sub-Accounts. Nationwide will notify the Contract Owner if a requested allocation of initial purchase payment or subsequent exchange cannot be completed.
Note: Some of the investment options listed are funds of funds. Additionally, some of the indicated investment options may not be available to a particular Contract Owner due to the date the contract was issued. Refer to Appendix A: Underlying Mutual Funds for more information.
Category I Sub-Accounts
• American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II
• Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
• Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
• Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II
• Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class Shares
• PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class
• The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class II
Category II Sub-Accounts
• AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class B
• American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class II
• Dreyfus Stock Index Fund, Inc.: Initial Shares
• Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
• Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
• Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
• Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2
• Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class
• Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 2
• Invesco - Invesco V.I. Mid Cap Growth Fund: Series II Shares
• Janus Aspen Series - Forty Portfolio: Service Shares
• MFS® Variable Insurance Trust - MFS Investors Growth Stock Series: Service Class
• MFS® Variable Insurance Trust - MFS Value Series: Service Class
• Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I
• Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II
• Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II
• Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I
• Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I
• Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II
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• Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
• Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I
• Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class Shares
• Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Category III Sub-Accounts
• Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class 2
• Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class 2
• Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class 2
• Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2
• Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
• Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Parties with Interests in the Contract
Contract Owner
The Contract Owner has all rights under the contract, unless a joint owner is named. If a joint owner is named, each joint owner has all rights under the contract. Purchasers who name someone other than themselves as the Contract Owner will have no rights under the contract.
Joint Owner
Joint owners each own an undivided interest in the contract. Joint owners must be spouses at the time joint ownership is requested unless state law requires Nationwide to allow non-spousal joint owners. A joint owner may only be named in Non-Qualified Contracts.
Generally, the exercise of any ownership rights under the contract must be in writing and signed by both joint owners. However, if a written election, signed by both Contract Owners, authorizing Nationwide to allow the exercise of ownership rights independently by either joint owner is submitted, Nationwide will permit joint owners to act independently. If such an authorization is submitted, Nationwide will not be liable for any loss, liability, cost, or expense for acting in accordance with the instructions of either joint owner.
If a Contract Owner who is not the Annuitant dies before the Income Start Date and there is a surviving joint owner, the joint owner will become the Contract Owner.
If the Contract Owner who is the Annuitant dies before the Income Start Date and there is a surviving joint owner, the contract will terminate and Nationwide will pay the Contract Value to the joint owner.
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Annuitant and Joint Annuitant
The Annuitant (and joint Annuitant, if applicable) must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for an Annuitant or joint Annuitant of greater age. Once designated, the Annuitant and joint Annuitant, if applicable, cannot be changed. Joint Annuitants can be named only if permitted under the elected Income Option.
For contracts issued as IRAs or Tax Sheltered Annuities, the Contract Owner and Annuitant must be the same person, and that individual's entire interest in the contract is nonforfeitable. For either of these contract types, if a joint and survivor Income Option is elected, the joint annuitant must be the Annuitant's spouse.
Payee
The payee is the person designated, at the time of application, by the Contract Owner to receive annuity payments. If no payee is designated at the time of application, the payee will be the Annuitant.
Beneficiary and Contingent Beneficiary
The beneficiary is the person who may receive benefits under the contract if the Annuitant (and joint Annuitant, if any) dies after the Income Start Date. The Contract Owner can name more than one beneficiary. The beneficiaries will share the benefits equally, unless otherwise specified.
If no beneficiary survives the Annuitant (and the joint Annuitant, if any), the beneficiary's rights will vest in the contingent beneficiary. Contingent beneficiaries will share the benefits equally, unless otherwise specified.
If no beneficiary or contingent beneficiary survives the Annuitant (and the joint Annuitant, if any), all beneficiary rights will vest with the Contract Owner or the last surviving Contract Owner's estate.
If the Annuitant (and joint Annuitant, if any) dies before the Income Start Date, and there is no surviving Contract Owner or joint owner, Nationwide will pay the contract proceeds to the beneficiary.
Ownership Rights
Ownership Rights at the Time of Application
At the time of application, the Contract Owner designates/elects:
• an Annuitant, and if applicable, a joint Annuitant;
• a Payee to whom annuity payments will be made;
• the frequency of payments, Income Option, Assumed Investment Return (if applicable), and Income Start Date;
• a beneficiary, and if applicable, a contingent beneficiary;
• the portion of the purchase payment used to purchase Fixed Annuity Payments and/or Variable Annuity Payments;
• the allocation among Sub-Accounts, if applicable; and
• any optional benefits that may be provided under the elected Income Option.
Once elected, the Income Option cannot be changed.
Ownership Rights Between the Date of Issue and the Income Start Date
Between the date of issue and the Income Start Date, the Contract Owner has the right to:
• cancel the contract during the free look period;
• change the beneficiary and/or the contingent beneficiary;
• change allocations among Sub-Accounts;
• request a "variable to fixed transfer" whereby a portion of the purchase payment that was originally designated to provide Variable Annuity Payments is transferred in order to provide Fixed Annuity Payments. Variable to fixed transfers are irrevocable and subject to the terms and conditions described in the "Transfers between Variable Annuity Payments and Fixed Annuity Payments" provision;
• elect to take a partial or full withdrawal, if permitted under the Income Option selected and subject to any restrictions described in this prospectus; and
• elect or revoke a prior election of Annual Benefit Leveling (see Annual Benefit Leveling).
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Ownership Rights After the Income Start Date and Prior to the Annuitant's Death
After the Income Start Date and prior to the Annuitant's death, the Contract Owner has the right to:
• change the beneficiary and/or the contingent beneficiary;
• change allocations among Sub-Accounts;
• request a "variable to fixed transfer" whereby a portion of the purchase payment that was originally designated to provide Variable Annuity Payments is transferred in order to provide Fixed Annuity Payments. Variable to fixed transfers are irrevocable and subject to the terms and conditions described in the "Transfers between Variable Annuity Payments and Fixed Annuity Payments" provision;
• elect to take a partial or full withdrawal, depending on the Income Option selected and subject to any restrictions described in this prospectus; and
• elect or discontinue Annual Benefit Leveling.
Changes
All changes, except those to Annual Benefit Leveling, will take effect as of the time such changes are recorded by Nationwide, whether or not the Contract Owner or Annuitant is living at the time of the recording. Nationwide will not be liable for any payments made or actions taken by Nationwide before recording the change. Changes to Annual Benefit Leveling will take effect on the next anniversary of the Income Start Date.
Nationwide may require that all changes be submitted in writing or in another form Nationwide deems acceptable. Nationwide may require that signatures be guaranteed by a member firm of a major stock exchange or other depository institution qualified to give such a guarantee.
Operation of the Contract
Purchase Payment
The minimum single purchase payment must be at least $35,000. No additional purchase payments will be accepted or permitted. However, if the contract is being funded from multiple sources, Nationwide, at its sole discretion, may permit multiple deposits into the contract prior to the Income Start Date.
The cumulative total of all purchase payments under contracts issued by Nationwide on the life of any one Annuitant or owned by any one Contract Owner cannot exceed $2,000,000 for single life Income Options or term certain Income Options, and $3,000,000 for joint life Income Options without Nationwide's prior consent. Nationwide's decision as to whether or not to accept a purchase payment in excess of that amount will be based on one or more factors, including, but not limited to: age, spouse age (if applicable), Annuitant age, state of issue, total purchase payments, optional benefits elected, current market conditions, and current hedging costs. All such decisions will be based on internally established actuarial guidelines and will be applied in a non-discriminatory manner. In the event that Nationwide does not accept a purchase payment under these guidelines, it will immediately return the purchase payment in its entirety in the same manner as it was received. If Nationwide accepts the purchase payment, it will be applied to the contract immediately and will receive the next calculated Accumulation Unit value. Any references in this prospectus to purchase payment amounts in excess of $2,000,000 are assumed to have been approved by Nationwide.
The purchase payment will be priced at the Accumulation Unit value next determined no later than two business days after receipt of an order to purchase if the application and all necessary information are complete and are received at the Service Center before the close of the New York Stock Exchange, which generally occurs at 4:00 p.m. EST. If the order is received after the close of the New York Stock Exchange, the purchase payment will be priced within two business days after the next Valuation Date.
If an incomplete application is not completed within five business days after receipt at the Service Center, the prospective purchaser will be informed of the reason for the delay. The purchase payment will be returned unless the prospective purchaser specifically consents to allow Nationwide to hold the purchase payment until the application is completed.
Allocation of the Purchase Payment
For any particular Income Option, the single purchase payment may be allocated to provide Variable Annuity Payments, Fixed Annuity Payments, or a combination of both. Changes to this allocation are permitted as described in the Transfers between Variable Annuity Payments and Fixed Annuity Payments provision.
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Nationwide allocates that portion of the purchase payment intended for Variable Annuity Payments to Sub-Accounts as instructed by the Contract Owner on the application. However, in some states, Nationwide will allocate purchase payments to the money market Sub-Account during the free look period. After the free look period, Nationwide will reallocate the Variable Account Value among the Sub-Accounts based on the instructions contained on the application. In other states, Nationwide will immediately allocate purchase payments to the Sub-Accounts based on the instructions contained on the application.
Shares of the underlying mutual funds are purchased by the Variable Account at Net Asset Value and temporarily maintained as Accumulation Units until being converted into Annuity Income Units on the Income Start Date. Contract Owners can change allocations or make exchanges among the Sub-Accounts after the time of application by submitting a written request to the Service Center subject to conditions imposed by the underlying mutual funds and those set forth in the contract.
If the AIA Income Foundation Rider was elected, additional restrictions apply to allocations of purchase payment and subsequent exchanges of Variable Account Value (see AIA Income Foundation Rider).
Pricing
Generally, Nationwide prices Accumulation Units on each day that the New York Stock Exchange is open. (Pricing is the calculation of a new Accumulation Unit value that reflects that day's investment experience.)
Accumulation Units are not priced when the New York Stock Exchange is closed or on the following nationally recognized holidays:
• New Year's Day
• Martin Luther King, Jr. Day
• Presidents' Day
• Good Friday
• Memorial Day
• Independence Day
• Labor Day
• Thanksgiving
• Christmas
Nationwide also will not price purchase payments, withdrawals, or transfers if:
(1) trading on the New York Stock Exchange is restricted;
(2) an emergency exists making disposal or valuation of securities held in the Variable Account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the protection of security holders.
Rules and regulations of the SEC will govern as to when the conditions described in (2) and (3) exist. If Nationwide is closed on days when the New York Stock Exchange is open, Contract Value may change and Contract Owners will not have access to their accounts.
Transfers between Variable Annuity Payments and Fixed Annuity Payments
Any portion of the single purchase payment that is allocated to provide Fixed Annuity Payments may not be transferred to provide Variable Annuity Payments. Variable to fixed transfers may not be available in all states.
Subject to certain terms and conditions, all or a portion of the single purchase payment that is allocated to provide Variable Annuity Payments may be transferred to provide Fixed Annuity Payments. This type of transfer, referred to as a "variable to fixed transfer," is irrevocable. Once a variable to fixed transfer is complete, the transferred amount must remain allocated to provide Fixed Annuity Payments for the duration of the contract. The amount transferred cannot be transferred back to provide Variable Annuity Payments.
Currently, Nationwide does not assess a fee for variable to fixed transfers. However, Nationwide reserves the right to assess a Variable to Fixed Transfer Processing Fee, which will equal the lesser of $25 or 2% of the amount transferred. The fee will be deducted from the amount transferred. Nationwide also reserves the right to assess the Variable to Fixed Transfer Processing Fee on contracts that have elected the AIA Income Foundation Rider while not assessing it against contracts that have not elected the rider (see Standard Charges and Deductions).
Each variable to fixed transfer request is subject to the following terms and conditions:
• variable to fixed transfers are not permitted prior to the end of the free look period;
• the Annuitant and joint Annuitant, if applicable, must be younger than age 91 at the time the variable to fixed transfer is requested;
• the minimum variable to fixed transfer amount is the lesser of $10,000 or the total Variable Account Value;
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• after the variable to fixed transfer, the Variable Account Value must be at least $2,000 (as of the date of the transfer). If a requested transfer would result in a Variable Account Value of less than $2,000, Nationwide will attempt to contact the Contract Owner to obtain revised instructions relating to the transfer. The Contract Owner may elect to:
❍ cancel the transaction;
❍ decrease the amount of the variable to fixed transfer so that the Variable Account Value will be $2,000 or more; or
❍ transfer all Variable Account Value to provide for Fixed Annuity Payments.
• variable to fixed transfers are not permitted if:
❍ the Contract Owner elected a Term Certain with Enhanced Death Benefit Income Option; or
❍ the Contract Owner elected a Term Certain Income Option and there are fewer than five years remaining in the term certain period;
• Nationwide reserves the right to limit the number of variable to fixed transfers to one per calendar quarter and 20 over the life of the contract;
• Nationwide reserves the right to prohibit variable to fixed transfers during the remaining term certain period if:
❍ the Contract Owner elected a Single Life with Term Certain Income Option or a Joint and 100% Last Survivor with Term Certain Income Option; and
❍ the Contract Owner has taken a withdrawal from the contract, as permitted by the Income Option elected;
• annuity payments resulting from variable to fixed transfers will be of the same frequency as existing Fixed Annuity Payments; and
• variable to fixed transfer requests must be submitted in writing and must be signed by the Contract Owner(s).
Variable to fixed transfers will be taken proportionately from each Sub-Account based on current allocations. Variable to fixed transfers do not count as a transfer event.
If a Contract Owner elected the AIA Income Foundation Rider, the following additional terms and conditions apply to variable to fixed transfer requests:
• the guaranteed floor payment in effect at the time of the variable to fixed transfer request will be reduced by the ratio of the amount transferred to the Variable Account Value immediately prior to the transfer request; and
• the amount of any variable to fixed transfer will be based upon the actual Variable Account Value at the time of the request rather than the present value of any guaranteed payments under the rider.
Each variable to fixed transfer will constitute a new fixed annuity segment (a series of Fixed Annuity Payments), which will be calculated as of the date of the transfer. Fixed annuity segments resulting from variable to fixed transfers will be of the same frequency and will be applied to the same Income Option that was elected at the time of application. The only factor that will differ among fixed annuity segments is the purchase rate, which is based on current market conditions at the time the fixed annuity segment is determined. Due to the varying market conditions, the purchase rates may be more or less favorable at the time each fixed annuity segment is determined.
When multiple transactions are effected on a contract on the same day that a variable to fixed transfer is requested (for example, a Sub-Account transfer or a withdrawal), the variable to fixed transfer will be processed last. This could have an effect on whether or not the variable to fixed transfer request meets the terms and conditions described previously.
The Fixed Annuity Payment purchased by the variable to fixed transfer will be reflected in the next annuity payment calculated, unless the Contract Owner has elected Annual Benefit Leveling. If Annual Benefit Leveling is in effect, the Fixed Annuity Payment purchased by the variable to fixed transfer will be reflected in the first annuity payment on the next Income Start Date anniversary.
Some state jurisdictions do not permit Contract Owners to take withdrawals from the Fixed Annuity Payment portion of the contract. In these state jurisdictions, if the Contract Owner elected an Income Option that permits withdrawals, a variable to fixed transfer will effectively reduce the amount of Commutation Value that the Contract Owner can withdraw.
Determining the Contract Value
The Contract Value is the sum of the value of amounts allocated to the Sub-Accounts plus any amount designated for the purchase of Fixed Annuity Payments, less any distributions previously made.
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Transfer Requests
A Contract Owner may request to transfer allocations among the Sub-Accounts at any time, subject to terms and conditions imposed by this prospectus and the underlying mutual funds. Contract Owners may submit transfer requests in writing or over the telephone to the Service Center. Nationwide may restrict or withdraw the telephone transfer privilege at any time upon written notice to Contract Owners. Sub-Account transfers will receive the Annuity Income Unit value next computed after the transfer request is received at the Service Center.
Transfer Restrictions
Neither the contracts described in this prospectus nor the underlying mutual funds are designed to support active trading strategies that require frequent movement between or among Sub-Accounts (sometimes referred to as "market-timing" or "short-term trading"). A Contract Owner who intends to use an active trading strategy should consult his/her registered representative and request information on other Nationwide variable annuity contracts that offer investment in underlying mutual funds that are designed specifically to support active trading strategies.
Nationwide discourages (and will take action to deter) short-term trading in this contract because the frequent movement between or among Sub-Accounts may negatively impact other investors in the contract. Short-term trading can result in:
• the dilution of the value of the investors' interests in the underlying mutual fund;
• underlying mutual fund managers taking actions that negatively impact performance (keeping a larger portion of the underlying mutual fund assets in cash or liquidating investments prematurely in order to support redemption requests); and/or
• increased administrative costs due to frequent purchases and redemptions.
To protect investors in this contract from the negative impact of these practices, Nationwide has implemented, or reserves the right to implement, several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Nationwide makes no assurances that all risks associated with short-term trading will be completely eliminated by these processes and/or restrictions.
Nationwide cannot guarantee that its attempts to deter active trading strategies will be successful. If Nationwide is unable to deter active trading strategies, the performance of the Sub-Accounts that are actively traded may be adversely impacted.
Redemption Fees
Some underlying mutual funds assess a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of the allocation to the Sub-Account. The fee is assessed against the amount transferred and is paid to the underlying mutual fund. Redemption fees compensate the underlying mutual fund for any negative impact on fund performance resulting from short-term trading.
U.S. Mail Restrictions
Nationwide monitors transfer activity in order to identify those who may be engaged in harmful trading practices. Transaction reports are produced and examined. Generally, a contract may appear on these reports if the Contract Owner (or a third party acting on their behalf) engages in a certain number of "transfer events" in a given period. A "transfer event" is any transfer, or combination of transfers, occurring on a given trading day (Valuation Period). For example, if a Contract Owner executes multiple transfers involving 10 investment options in one day, this counts as one transfer event. A single transfer occurring on a given trading day and involving only two investment options will also count as one transfer event.
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As a result of this monitoring process, Nationwide may restrict the method of communication by which transfer orders will be accepted. In general, Nationwide will adhere to the following guidelines:
Trading Behavior Nationwide's Response
Six or more transfer events in one calendar quarter Nationwide will mail a letter to the Contract Owner notifying them that:
(1) they have been identified as engaging in harmful trading practices; and
(2) if their transfer events exceed 11 in two consecutive calendar quarters or 20 in one calendar year, the Contract Owner will be limited to submitting transfer requests via U.S. mail on a Nationwide issued form.
More than 11 transfer events in two consecutive calendar quarters
OR
More than 20 transfer events in one calendar year 		Nationwide will automatically limit the Contract Owner to submitting transfer requests via U.S. mail on a Nationwide issued form.
For purposes of Nationwide's transfer policy, U.S. mail includes standard U.S. mail, overnight U.S. mail, and overnight delivery via private carrier.
Each January 1, Nationwide will start the monitoring anew, so that each contract starts with 0 transfer events each January 1. See, however, the Other Restrictions provision.
Managers of Multiple Contracts
Some investment advisors/representatives manage the assets of multiple Nationwide contracts pursuant to trading authority granted or conveyed by multiple Contract Owners. These multi-contract advisors will generally be required by Nationwide to submit all transfer requests via U.S. mail.
Nationwide may, as an administrative practice, implement a "one-day delay" program for these multi-contract advisors, which they can use in addition to or in lieu of submitting transfer requests via U.S. mail. The one-day delay option permits multi-contract advisors to continue to submit transfer requests via the Internet or telephone. However, transfer requests submitted by multi-contract advisors via the Internet or telephone will not receive the next available Accumulation Unit value. Rather, they will receive the Accumulation Unit value that is calculated on the following Valuation Date. Transfer requests submitted under the one-day delay program are irrevocable. Multi-contract advisors will receive advance notice of being subject to the one-day delay program.
Other Restrictions
Contract Owners that are required to submit transfer requests via U.S. mail will be required to use a Nationwide issued form for their transfer request. Nationwide will refuse transfer requests that either do not use the Nationwide issued form for their transfer request or fail to provide accurate and complete information on their transfer request form. In the event that a Contract Owner's transfer request is refused by Nationwide, they will receive notice in writing by U.S. mail and will be required to resubmit their transfer request on a Nationwide issued form.
Nationwide reserves the right to refuse or limit transfer requests, or take any other action it deems necessary in order to protect Contract Owners, Annuitants, and beneficiaries from the negative investment results that may result from short-term trading or other harmful investment practices employed by some Contract Owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of Nationwide's monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by Nationwide to constitute harmful trading practices, may be restricted.
Any restrictions that Nationwide implements will be applied consistently and uniformly.
Underlying Mutual Fund Restrictions and Prohibitions
Pursuant to regulations adopted by the SEC, Nationwide is required to enter into written agreements with the underlying mutual funds which allow the underlying mutual funds to:
(1) request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any Contract Owner;
(2) request the amounts and dates of any purchase, redemption, transfer, or exchange request ("transaction information"); and
(3) instruct Nationwide to restrict or prohibit further purchases or exchanges by Contract Owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide's policies).
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Nationwide is required to provide such transaction information to the underlying mutual funds upon their request. In addition, Nationwide is required to restrict or prohibit further purchases or requests to exchange into a specific Sub-Account upon instruction from the underlying mutual fund in which that Sub-Account invests. Nationwide and any affected Contract Owner may not have advance notice of such instructions from an underlying mutual fund to restrict or prohibit further purchases or requests to exchange. If an underlying mutual fund refuses to accept a purchase or request to exchange into the Sub-Account associated with the underlying mutual fund submitted by Nationwide, Nationwide will keep any affected Contract Owner in their current Sub-Account allocation.
Right to Examine and Cancel
If the Contract Owner elects to cancel the contract, he/she may return it to the Service Center within a certain period of time known as the "free look" period. Depending on the state in which the contract was purchased (and, in some states, if the contract is purchased as a replacement for another annuity contract), the free look period may be 10 days or longer. For ease of administration, Nationwide will honor any free look cancellation that is received at the Service Center or postmarked within 30 days after the contract issue date. The contract issue date is the date the initial purchase payment is applied to the contract.
Where state law requires the return of purchase payments for free look cancellations, Nationwide will return all purchase payments applied to the contract, less any withdrawals from the contract and any applicable federal and state income tax withholding.
Where state law requires the return of Contract Value for free look cancellations, Nationwide will return the Contract Value as of the date of the cancellation, less any withdrawals from the contract and any applicable federal and state income tax withholding.
Liability of the Variable Account under this provision is limited to the Contract Value in each Sub-Account on the date of revocation. Any additional amounts refunded to the Contract Owner will be paid by Nationwide.
Allocation of Purchase Payments during Free Look Period
Where state law requires the return of purchase payments for free look cancellations, Nationwide will allocate initial purchase payments allocated to Sub-Accounts to the money market Sub-Account during the free look period.
Where state law requires the return of Contract Value for free look cancellations, Nationwide will immediately allocate initial purchase payments to the investment options based on the instructions contained on the application.
Withdrawals (Redemptions)
Some Income Options permit the Contract Owner to take a partial or full withdrawal after the free look period. If the elected Income Option does not permit partial or full withdrawals, the Contract Owner cannot withdraw value from the contract (other than annuity payments). Withdrawals may not be permitted in all states.
Withdrawal requests may be submitted in writing or by telephone to the Service Center. Requests submitted by telephone will be subject to dollar amount limitations and may be subject to payment restrictions to prevent fraud. Nationwide reserves the right to restrict or remove the ability to submit requests by telephone upon written notice. Contact the Service Center for current limitations and restrictions. Nationwide reserves the right to require that the signature(s) be guaranteed by a member firm of a major stock exchange or other depository institution qualified to give such a guarantee.
Nationwide will pay any amounts withdrawn from the Sub-Accounts to the Contract Owner within seven days after the request is received at the Service Center.
Nationwide reserves the right to delay payment of a withdrawal from the Fixed Annuity Payment portion of the contract for up to six months from the date of the withdrawal request.
Withdrawals Before the Income Start Date
If the Income Option elected so permits, a Contract Owner may take a partial or full withdrawal after the right to examine the contract and before the Income Start Date. The amount available for withdrawal will be based on the Commutation Value, using the next calculated Annuity Income Unit values to estimate the Variable Annuity Payment amount, and will reflect the investment performance of the Sub-Accounts chosen by the Contract Owner. A CDSC will apply.
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Withdrawals On or After the Income Start Date
If the Income Option elected so permits, a Contract Owner may take a withdrawal on or after the Income Start Date. The amount available for withdrawal on or after the Income Start Date will be based on the Commutation Value and will reflect the investment performance of the Sub-Accounts chosen by the Contract Owner. A CDSC may apply.
After the Income Start Date, distributions other than regular annuity payments are generally required to be included in income for federal income tax purposes. However, this general rule does not apply to a complete withdrawal or redemption of a contract - a portion of the amount received in a complete withdrawal or redemption may be treated for federal income tax purposes as the tax-free return of investment in the contract. Partial withdrawals or redemptions other than regular annuity payments are generally required to be included in income. The Internal Revenue Code, Treasury Regulations, and other informational releases by the IRS contain complex rules regarding the taxation of distributions from annuity contracts. The Contract Owner should review these tax documents and consult with a tax advisor prior to requesting a distribution.
Commutation Value of Variable Annuity Payments
The Commutation Value of Variable Annuity Payments is equal to the present value of the Variable Annuity Payments remaining in the term certain period. This present value is calculated using the Assumed Investment Return for the contract and the Annuity Income Unit values determined at the next unit value calculation after Nationwide receives the withdrawal request.
If a Contract Owner who has elected Annual Benefit Leveling takes a full withdrawal, the withdrawn amount will be made up of two components:
1) the Commutation Values, which do not include amounts allocated to Annual Benefit Leveling; and
2) the present value of the leveled Variable Annuity Payments scheduled to be paid after Nationwide receives complete instructions, but before the next Income Start Date anniversary.
The present value of these payments will be calculated using the Annual Benefit Leveling interest rate that was assumed when the leveled payment amount was determined.
If a Contract Owner who has elected Annual Benefit Leveling takes a partial withdrawal, no portion of the present value of the leveled Variable Annuity Payments scheduled to be paid before the next Income Start Date anniversary may be withdrawn. Only the Commutation Value of amounts remaining in the Sub-Accounts or of the Fixed Annuity Payments may be withdrawn.
The Commutation Value of Variable Annuity Payments when the AIA Income Foundation Rider is elected is calculated in the same manner as the Commutation Value of Variable Annuity Payments when the rider is not elected. However, because the charge associated with the rider will also be reflected in the calculation, the value will be lower.
If a Contract Owner who has elected the AIA Income Foundation Rider takes a partial withdrawal, no consideration is given to the present value of any guaranteed Variable Annuity Payments under the rider. Only the Commutation Value of amounts in the Variable Account may be withdrawn.
Commutation Value of Fixed Annuity Payments
The Commutation Value of Fixed Annuity Payments is defined in Appendix B: Fixed Annuity Payments.
Partial Withdrawals (Partial Redemptions)
If a partial withdrawal is allowed under the Income Option and elected, the Contract Owner must specify the percentage of the withdrawal to be taken from Fixed Annuity Payments and/or Variable Annuity Payments.
A partial withdrawal will result in the reduction of the remaining term certain period payments. If the Contract Owner elects a partial withdrawal of Fixed Annuity Payments, Nationwide will proportionally reduce the remaining payments in the term certain period by the ratio of the withdrawal amount received from Fixed Annuity Payments, plus any CDSC, to the total Commutation Value available from Fixed Annuity Payments. If the Contract Owner elects a partial withdrawal of Variable Annuity Payments, for the remainder of the term certain period, Nationwide will reduce the number of Annuity Income Units provided by each Sub-Account on a pro-rata basis.
If Annual Benefit Leveling is in effect, no portion of the contract designated to make Variable Annuity Payments for the remainder of the Contract Year may be withdrawn.
The minimum partial withdrawal amount is $2,000. Other minimum amounts may apply in some states. In addition, each remaining annuity payment after the partial withdrawal must equal $100 or more.
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A CDSC may apply. The CDSC deducted is a percentage of the amount requested by the Contract Owner. Amounts deducted for CDSC are not subject to subsequent CDSC. The Contract Owner may take the CDSC from either:
a) the amount requested; or
b) the Commutation Value remaining after the Contract Owner has received the requested amount.
If the Contract Owner does not make a specific election, any applicable CDSC will be taken from the Commutation Value remaining after the Contract Owner has received the requested amount.
Nationwide reserves the right to prohibit variable to fixed transfers for the duration of the term certain period if a Contract Owner who has elected a Single Life with Term Certain Income Option or a Joint and 100% Last Survivor with Term Certain Income Option takes a partial withdrawal from the contract.
Full Withdrawals (Full Redemptions)
A full withdrawal is only permitted under the following Income Options: Term Certain and Term Certain with Enhanced Death Benefit. The Commutation Value upon full withdrawal may be more or less than the purchase payment made to the contract. The Commutation Value will reflect Variable Account charges, charges for any optional riders elected, underlying mutual fund charges, the investment performance of the underlying mutual funds, prior redemptions, and remaining term certain annuity payments. A CDSC may apply. Upon full withdrawal, the contract is terminated.
Withdrawals from Individual Retirement Annuities, Roth IRAs, or Tax Sheltered Annuities upon Exercise of the Right to Examine
To prevent disqualification of an Individual Retirement Annuity, a Roth IRA, or a Tax Sheltered Annuity when the Contract Owner exercises the right to examine the contract, Nationwide will transfer the Contract Value or another amount required by law to another Individual Retirement Annuity, Roth IRA, or Tax Sheltered Annuity, respectively, upon proper direction by the Contract Owner.
Restrictions on Withdrawals from a Tax Sheltered Annuity
Contract Owners of a Tax Sheltered Annuity may withdraw Contract Value attributable to contributions made pursuant to a salary reduction agreement (within the meaning of Internal Revenue Code Section 402(g)(3)(C)) or transfers from a Custodial Account (described in Section 403(b)(7) of the Internal Revenue Code), only if permitted by the terms of the contract and:
(1) when the Contract Owner reaches age 59½, separates from service, dies, or becomes disabled (within the meaning of Internal Revenue Code Section 72(m)(7)); or
(2) in the case of hardship (as defined for purposes of Internal Revenue Code Section 401(k)), provided that any such hardship surrender may not include any income earned on salary reduction contributions.
The withdrawal limitations described previously also apply to:
(1) salary reduction contributions to Tax Sheltered Annuities made for plan years beginning after December 31, 1988;
(2) earnings credited to such contracts after the last plan year beginning before January 1, 1989, on amounts attributable to salary reduction contributions; and
(3) all amounts transferred from Internal Revenue Code Section 403(b)(7) Custodial Accounts (except that earnings and employer contributions as of December 31, 1988 in such Custodial Accounts may be withdrawn in the case of hardship).
Any distribution other than the above, including a free look cancellation of the contract (when available) may result in taxes, penalties, and/or retroactive disqualification of a Tax Sheltered Annuity.
In order to prevent disqualification of a Tax Sheltered Annuity after a free look cancellation, Nationwide will transfer the proceeds to another Tax Sheltered Annuity upon proper direction by the Contract Owner.
These provisions explain Nationwide's understanding of current withdrawal restrictions. These restrictions may change.
Distributions pursuant to Qualified Domestic Relations Orders will not violate the restrictions stated previously.
Assignment
Contract rights are personal to the Contract Owner and may not be assigned.
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Contract Owner Services
Annual Benefit Leveling
If the Contract Owner elects Annual Benefit Leveling, Variable Annuity Payments will be adjusted to reflect the performance of the Sub-Accounts once every 12 months, instead of with every payment.
On the Income Start Date (or the Income Start Date anniversary on which Annual Benefit Leveling begins), the number of Annuity Income Units necessary to make the payments for the following year will be calculated. These Annuity Income Units will be redeemed from the Sub-Accounts and the redemption proceeds are immediately transferred to Nationwide's General Account. The Annual Benefit Leveling interest rate in effect on the Income Start Date or Income Start Date anniversary will be used to calculate the guaranteed amount of level payments for the following year.
The level payment calculated on each subsequent Income Start Date anniversary could be higher or lower than the level payment for the previous year.
An election to start or discontinue Annual Benefit Leveling will take effect only on the Income Start Date or anniversary thereof. In order for such an election to take effect on the next Income Start Date anniversary, Nationwide must receive the election at least five days prior to the Income Start Date anniversary. If a Contract Owner elects Annual Benefit Leveling, the process of calculating leveled Variable Annuity Payments will take place on each subsequent Income Start Date anniversary until the Contract Owner instructs Nationwide otherwise.
Nationwide reserves the right to discontinue Annual Benefit Leveling. If Nationwide does discontinue this program, any Contract Owner receiving leveled Variable Annuity Payments will continue to do so until the next Income Start Date anniversary.
Annuity Payments
Income Start Date
The Income Start Date is the date chosen by the Contract Owner as the date for annuity payments to begin. The Income Start Date must be no earlier than the day after the end of the free look period and no later than one year after the date of issue. In connection with the Income Start Date, the Contract Owner also elects the frequency of annuity payment dates.
Frequency and Amount of Annuity Payments
Payments are made based on the Income Option and frequency selected. Payment frequencies available are: monthly, quarterly, semi-annually, or annually. In no event will Nationwide make payments less frequently than annually.
Nationwide reserves the right to change the frequency of payments if the amount of any payment becomes less than $100. The payment frequency will be changed to an interval that will result in payments of at least $100.
Nationwide will send annuity payments no later than seven days after each annuity payment date.
Form of Annuity Payment
The Contract Owner may elect to receive annuity payments by electronic funds transfer or by check. If the Contract Owner makes no election as to the payment method, Nationwide will make annuity payments via electronic funds transfer or via check, in the event bank information has not been provided. The Contract Owner may change the form of payment at any time by notifying Nationwide in writing.
For contracts issued on or after May 1, 2004, Nationwide reserves the right to assess a fee not to exceed $15 for each annuity payment made by check. No such charge will be assessed to contracts issued prior to May 1, 2004. The check fee compensates Nationwide for expenses related to processing and mailing checks. The fee will be deducted from each annuity payment check issued.
Fixed Annuity Payments
Fixed Annuity Payments provide for level annuity payments. The Fixed Annuity Payments will remain level unless the Income Option calls for a reduction in the annuity income upon withdrawal or death of the Annuitant (or joint annuitant) (see Appendix B: Fixed Annuity Payments).
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Variable Annuity Payments
Variable Annuity Payments will vary depending on the performance of the Sub-Accounts selected. The Sub-Accounts available during annuitization are those Sub-Accounts shown in Appendix A: Underlying Mutual Funds.
Assumed Investment Return
An Assumed Investment Return is the net investment return required to maintain level Variable Annuity Payments. That is, if the net investment performance of each Sub-Account in which the Contract Owner invests exactly equals the Assumed Investment Return for every payment period, then each payment will be the same amount. To the extent that investment performance is not equal to the Assumed Investment Return for given payment periods, the amount of the payments in those periods will not be the same. Payments will increase from one payment date to the next if the annualized net rate of return is greater than the Assumed Investment Return during that time. Conversely, payments will decrease from one payment to the next if the annualized net rate of return is less than the Assumed Investment Return during that time.
At the time of application, the Contract Owner elects one of three available Assumed Investment Return percentages: 3.5%, 5.0%, or 6.0%. This percentage cannot be changed after contract issuance. Refer to Appendix C: Illustration of Variable Annuity Income for more information on selecting an Assumed Investment Return percentage. One or more of the above Assumed Investment Return percentages might not be available in all states. Refer to your contract for specific information.
If the AIA Income Foundation Rider is elected, the Assumed Investment Return percentage will be 3.0%.
Nationwide uses this percentage rate of return to determine the amount of the first Variable Annuity Payment.
First Variable Annuity Payment
The following factors determine the amount of the first Variable Annuity Payment:
• the portion of the purchase payment allocated to provide Variable Annuity Payments;
• the Variable Account Value on the Income Start Date;
• the age and sex of the Annuitant (and joint annuitant, if any);
• the Income Option elected;
• the frequency of annuity payments elected;
• the Income Start Date;
• the selected Assumed Investment Return;
• the deduction of applicable premium taxes; and
• the date the contract was issued.
Subsequent Variable Annuity Payments
Variable Annuity Payments will vary with the performance of the Sub-Accounts chosen by the Contract Owner after the investment performance is adjusted by the Assumed Investment Return Factor.
The dollar amount of each subsequent Variable Annuity Payment is determined by taking the portion of the first annuity payment funded by a particular Sub-Account divided by the Annuity Income Unit value for that Sub-Account as of the Income Start Date. This establishes the number of Annuity Income Units provided by each Sub-Account for each Variable Annuity Payment after the first.
The number of Annuity Income Units for each Sub-Account per payment will remain constant, subject to the following exceptions:
1) if a reduction applies after the first death when the Contract Owner elected a joint and survivor Income Option;
2) if the Contract Owner takes a withdrawal, as permitted under the Income Option elected;
3) if the Contract Owner transfers value from one Sub-Account to another;
4) if the Contract Owner incurs a redemption fee; or
5) if the Contract Owner makes a variable to fixed transfer.
The number of Annuity Income Units for each Sub-Account is multiplied by the Annuity Income Unit value for that Sub-Account for the Valuation Date for which the payment is due. The sum of these results for all the Sub-Accounts in which the Contract Owner invests establishes the dollar amount of the Variable Annuity Payment.
Subsequent Variable Annuity Payments may be more or less than the previous Variable Annuity Payment, depending on whether the net investment performance of the elected Sub-Accounts is greater or lesser than the Assumed Investment Return.
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Value of an Annuity Income Unit
Annuity Income Unit values for Sub-Accounts are determined by:
1) multiplying the Annuity Income Unit value for each Sub-Account for the immediately preceding Valuation Period by the net investment factor for the Sub-Account for the subsequent Valuation Period; and then
2) multiplying the result from (1) by an interest factor to neutralize the Assumed Investment Return Factor year built into the purchase rate basis for variable payment annuities. The Assumed Investment Return Factor corresponds with the Assumed Investment Return chosen by the Contract Owner.
Net Investment Factor
The net investment factor is determined by dividing (a) by (b), and then subtracting (c) from the result, where:
(a) is the sum of:
1) the Net Asset Value of the underlying mutual fund as of the end of the current Valuation Period; and
2) the per share amount of any dividend or income distributions made by the underlying mutual fund (if the date of the dividend or income distribution occurs during the current Valuation Period).
(b) is the Net Asset Value of the underlying mutual funde determined as of the end of the preceding Valuation Period.
(c) is a factor representing the daily Variable Account charges. The factor is equal to an annualized rate of 1.25% (2.25% if the AIA Income Foundation Rider has been chosen) of the Daily Net Assets.
Changes in the net investment factor may not be directly proportional to changes in the Net Asset Value of the underlying mutual fund shares because of the deduction of Variable Account charges.
Though the number of Annuity Income Units will not change as a result of investment experience, the value of an Annuity Income Unit may increase or decrease from Valuation Period to Valuation Period.
Income Options
Contract Owners must elect an Income Option at the time of application. This election is irrevocable.
The Income Options available are:
• Single Life
• Single Life with Term Certain
• Single Life with Cash Refund
• Joint and Last Survivor
• Joint and 100% Last Survivor with Term Certain
• Joint and 100% Last Survivor with Cash Refund
• Joint and 50% Survivor
• Term Certain
• Term Certain with Enhanced Death Benefit (only available for contracts issued prior to May 1, 2002)
Each of the Income Options is discussed more thoroughly below.
Single Life
The Single Life Income Option provides for annuity payments to be paid during the lifetime of the Annuitant.
Payments will cease with the last payment before the Annuitant's death. Any Contract Value not paid as of the date of the Annuitant's death will be forfeited. No death benefit will be paid.
No withdrawals other than the scheduled annuity payments are permitted.
Single Life with Term Certain
The Single Life with Term Certain Income Option provides that annuity payments will be paid during the Annuitant's lifetime or for the term certain period selected by the Contract Owner on the application, whichever is longer.
During the term certain period, the owner may elect at any time prior to the death of the Annuitant to withdraw all or a part of the value of the remaining term certain period payments. If the owner elects to take such a withdrawal, the annuity payments for the remaining term certain period will be reduced as described in the Partial Withdrawals (Partial Redemptions) provision. If, at the end of the term certain period, the Annuitant is still alive, annuity payments will be
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calculated as if no withdrawal had been taken. However, the actual dollar amount of annuity payments may be more or less than the last payment prior to the withdrawal, since the dollar amount of annuity payments depends on the investment performance of the Sub-Accounts elected by the Contract Owner. Withdrawals may be subject to a CDSC.
If the Annuitant dies during this term certain period, the beneficiary will have the option to receive the Commutation Value of the remaining payments of the term certain period either periodically over the remainder of the term certain period, or in a single lump sum payment.
Single Life with Cash Refund
The Single Life with Cash Refund Income Option provides that annuity payments will be made during the lifetime of the Annuitant.
If the Annuitant dies before aggregate annuity payments actually received by the Annuitant are at least equal to the purchase payment, less any premium tax, the difference between the aggregate annuity payments actually received by the Annuitant and the purchase payment, less any premium tax, will be paid to the beneficiary in a single lump sum.
No withdrawals other than the death benefit or scheduled annuity payments are permitted.
Joint and Last Survivor
The Joint and Last Survivor Income Option provides for annuity payments to continue during the joint lifetimes of the Annuitant and joint Annuitant. After the death of either the Annuitant or joint Annuitant, payments will continue for the life of the survivor. Payments to the survivor will be 50%, 75%, or 100% of the amount that would have been paid if both Annuitants were living, depending on which continuation percentage was selected by the Contract Owner on the application.
Payments will cease with the last payment due prior to the death of the last survivor of the Annuitant and joint Annuitant. Any Contract Value not paid as of the date of the last surviving Annuitant's death will be forfeited. No death benefit will be paid.
No withdrawals other than the scheduled annuity payments are permitted.
Joint and 100% Last Survivor with Term Certain
The Joint and 100% Last Survivor with Term Certain Income Option provides for annuity payments to be made during the joint lifetimes of the Annuitant and joint Annuitant or for the term certain period selected by the Contract Owner on the application, whichever is longer. After the death of either the Annuitant or joint Annuitant, if the term certain period has not expired, payments will continue at the same level for the remainder of the term certain period. If either Annuitant survives the expiration of the term certain period, payments will continue at the same level for the life of the survivor.
During the term certain period, the owner may elect at any time prior to the second death of the Annuitant and joint Annuitant to withdraw all or part of the value of the remaining term certain period payments. If the owner elects to take such a withdrawal, the annuity payments for the remaining term certain period will be reduced as described in the Partial Withdrawals (Partial Redemptions) provision. If, at the end of the term certain period, one (or both) of the Annuitants is still alive, annuity payments will be calculated as if no withdrawal had been taken. However, the actual dollar amount of annuity payments may be more or less than the last payment prior to the withdrawal, since the dollar amount of annuity payments depends on the investment performance of the Sub-Accounts elected by the Contract Owner. Withdrawals may be subject to a CDSC.
If the Annuitant and joint Annuitant die during the term certain period, the beneficiary will have the option to receive the Commutation Value of the remaining payments of the term certain period either periodically over the remainder of the term certain period, or in a single lump sum payment.
Joint and 100% Last Survivor with Cash Refund
The Joint and 100% Last Survivor with Cash Refund Income Option provides for annuity payments to be made during the joint lifetimes of the Annuitant and joint Annuitant.
After the death of either the Annuitant or joint Annuitant, payments will continue at the same level for the life of the survivor.
If the survivor dies after the Income Start Date, but before aggregate annuity payments actually received by the Annuitant are at least equal to the single purchase payment, less any premium tax, the difference between the aggregate annuity payments actually received by the Annuitant and the single purchase payment, less any premium tax, will be paid to the beneficiary in a single lump sum.
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No withdrawals other than the death benefit and scheduled annuity payments are permitted.
Joint and 50% Survivor
The Joint and 50% Survivor Income Option provides for annuity payments to be made during the joint lifetimes of the Annuitant and joint Annuitant.
After the death of the Annuitant, payments of 50% of the amount that would have been paid if the Annuitant were living will be made for the life of the joint Annuitant. If the joint Annuitant dies before the Annuitant, the 50% reduction does not apply.
Payments will cease with the last payment due before the death of the last survivor of the Annuitant and joint Annuitant. Any Contract Value not paid as of the date of the last surviving Annuitant's death will be forfeited. No death benefit will be paid. No withdrawals other than the scheduled annuity payments are permitted.
Term Certain
The Term Certain Income Option provides for annuity payments to be made for the term certain selected by the Contract Owner on the application. Nationwide reserves the right to limit the availability of some term certain durations.
The Contract Owner may elect at any time prior to the Annuitant's death to withdraw all or part of the value of the contract as set forth in the Withdrawals (Redemptions) provision. Withdrawals may be subject to a CDSC.
If the Annuitant dies during the term certain period, the beneficiary will have the option to continue payments for the remainder of the period or to receive the Commutation Value of the remaining payments in a single lump sum payment.
Term Certain with Enhanced Death Benefit (only available for contracts issued prior to May 1, 2002)
The Term Certain with Enhanced Death Benefit Income Option provides for annuity payments to be made for the term certain selected by the Contract Owner on the application.
The Contract Owner may elect at any time prior to the Annuitant's death to withdraw all or part of the value of the contract. Withdrawals may be subject to a CDSC.
If the Annuitant dies during the term certain period, the beneficiary will have the option to continue payments for the remainder of the period or to receive the death benefit in a single lump sum payment as described in the Lump Sum Death Benefit Option and Continuation of Payments Death Benefit Option below.
The Term Certain with Enhanced Death Benefit Income Option may not be available in all states.
Any Other Option
Income Options not set forth in this provision may be available. Both Nationwide and the Contract Owner must approve any Income Option not set forth in this provision.
Death Before the Income Start Date
Death of Contract Owner
If a Contract Owner (including a joint owner) who is not the Annuitant dies before the Income Start Date, no death benefit is payable and ownership rights will vest in the surviving joint owner. If there is no surviving joint owner, ownership rights will vest in the Annuitant. Subject to any required distributions (see Appendix E: Contract Types and Tax Information), the Annuitant will be entitled to receive scheduled annuity payments.
If the Contract Owner who is also the Annuitant dies before the Income Start Date, the terms of the Death of Annuitant provision apply.
Death of Annuitant
If the Annuitant dies before the Income Start Date, the contract will terminate and Nationwide will pay the Contract Value to the surviving owner(s). If there is no surviving owner, the beneficiary will be entitled to elect a lump sum distribution or to receive annuity benefits in accordance with the required distributions provisions (see Appendix E: Contract Types and Tax Information).
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Death On or After the Income Start Date
Death of Contract Owner
If a Contract Owner (including a joint owner) dies on or after the Income Start Date, annuity payments will continue under the elected Income Option and ownership rights will vest in any surviving joint owner. If there is no surviving joint owner, ownership rights will vest in the Annuitant.
Death of Annuitant
If the Annuitant dies on or after the Income Start Date, the terms of the Income Option elected by the Contract Owner will apply.
Once Nationwide is notified of the Annuitant's (and joint Annuitant's, if applicable) death, any remaining term certain fixed or Variable Annuity Payments will be suspended until Nationwide has received proper proof of death and complete instructions to either continue payments or pay the death benefit in a single lump sum. The availability of any withdrawals allowed by the selected Income Option will also be suspended for this period. In addition, the Commutation Value of any remaining term certain Variable Annuity Payments will be transferred to the money market Sub-Account no later than the Valuation Date following receipt by Nationwide of notification of death.
Once Nationwide receives proper proof of death and complete instructions at the Service Center, Nationwide will make any payments that were suspended. The amount of each suspended Variable Annuity Payment will be determined using the Annuity Income Unit values for the money market Sub-Account on the date the Variable Annuity Payment was originally scheduled to be made. No interest will be paid on any payments that were suspended. Once any remaining term certain fixed or Variable Annuity Payments have resumed, the beneficiary shall have the right to make any transfers to other Sub-Accounts allowed by the contract.
Instructions regarding payment of any death benefit provided by the Income Option selected must be submitted in writing to the Service Center. Nationwide reserves the right to require that the signature(s) be guaranteed by a member firm of a major stock exchange or other depository institution qualified to give such a guarantee.
If a lump sum death benefit is available and has been elected, it will be paid to the beneficiary within seven days of receipt of proper proof of death and instructions satisfactory to Nationwide.
Death Benefit Payment
Lump Sum Death Benefit Option
If the beneficiary elects to receive the death benefit in one lump sum, Nationwide will calculate the death benefit (after receipt of proper proof of death and complete instructions) as described below.
The beneficiary will receive the present value of any Fixed Annuity Payments remaining in the term certain period.
Additionally, the beneficiary will receive the present value of any Variable Annuity Payments remaining in the term certain period. This amount will be the greater of (1) or (2) where:
(1) is the Commutation Value of the Variable Annuity Payments remaining in the term certain period; and
(2) is the Commutation Value of the Variable Annuity Payments remaining in the term certain period, calculated as if each remaining payment would be equal to the highest Variable Annuity Payment the Annuitant received under the contract prior to the Annuitant's attaining age 80 (or, if the Annuitant died prior to attaining age 80, the date of the Annuitant's death).
The Commutation Values will be calculated using the Assumed Investment Return elected for the contract and will be proportionally adjusted for any partial withdrawals that have been taken.
If Annual Benefit Leveling is in effect, the present value of remaining Variable Annuity Payments will be comprised of two components:
(a) The non-leveled Variable Annuity Payment component, which will equal the Commutation Value of the Variable Annuity Payments remaining in the term certain period after the next Income Start Date anniversary (which do not include leveled payments); and
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(b) The leveled Variable Annuity Payment component, which will equal the Commutation Value of the remaining leveled Variable Annuity Payments scheduled to be paid until the next Income Start Date anniversary. The present value of these payments will be calculated using the Annual Benefit Leveling interest rate that was assumed when the leveled payment amount was determined.
Continuation of Payments Death Benefit Option
If the beneficiary elects to receive the death benefit in the form of annuity payments for the remainder of the term certain period, Nationwide will calculate the annuity payments (after receipt of proper proof of death and complete instructions) as described below.
The beneficiary will receive Fixed Annuity Payments at the same level as prior to the Annuitant's death for the remainder of the term certain period.
Additionally, the beneficiary will receive Variable Annuity Payments for the remainder of the term certain period, based on the number of Annuity Income Units that correlates to the greater of (1) or (2) where:
(1) is the dollar amount of the most recent Variable Annuity Payment; and
(2) is the dollar amount of the highest Variable Annuity Payment the Annuitant received under the contract prior to the Annuitant's attaining age 80 (or, if the Annuitant died prior to attaining age 80, the date of the Annuitant's death).
Nationwide will proportionately adjust the number of Annuity Income Units to equal the number of Annuity Income Units in the greater of (1) or (2) above. The beneficiary is able to submit transfer requests to reallocate the Contract Value to other Sub-Accounts. Each remaining Variable Annuity Payment will reflect the adjusted number of Annuity Income Units and the performance of the Sub-Accounts in which they are invested.
Note, however, that if Annual Benefit Leveling is in effect at the time of the Annuitant's death, the leveled Variable Annuity Payments will continue at the same level until the next Income Start Date anniversary and will not be included in the adjusted Variable Annuity Payments described above.
The beneficiary may withdraw part or all of the remaining death benefit at any time. The amount withdrawn will be the Commutation Value, which is calculated as described in the Withdrawals On or After the Income Start Date provision, using the Assumed Investment Return elected by the Contract Owner.
Statements and Reports
Nationwide will mail Contract Owners statements and reports. Therefore, Contract Owners should promptly notify the Service Center of any address change.
These mailings will contain:
• statements showing the contract's quarterly activity;
• confirmation statements showing transactions that affect the contract's value; and
• semi-annual and annual reports of allocated underlying mutual funds.
Contract Owners can receive information from Nationwide faster and reduce the amount of mail received by signing up for Nationwide's eDelivery program. Nationwide will notify Contract Owners by email when important documents (statements, prospectuses, and other documents) are ready for a Contract Owner to view, print, or download from Nationwide's secure server. To choose this option, go to: www.nationwide.com/login.
Contract Owners should review statements and confirmations carefully. All errors or corrections must be reported to Nationwide immediately to assure proper crediting to the contract. Unless Nationwide is notified within 30 days of receipt of the statement, Nationwide will assume statements and confirmation statements are correct.
IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY OWNER DOCUMENTS
When multiple copies of the same disclosure document(s), such as prospectuses, supplements, proxy statements, and semi-annual and annual reports are required to be mailed to multiple Contract Owners in the same household, Nationwide will mail only one copy of each document, unless notified otherwise by the Contract Owner(s). Household delivery will continue for the life of the contracts.
A Contract Owner can revoke their consent to household delivery and reinstitute individual delivery by contacting the Service Center. Nationwide will reinstitute individual delivery within 30 days after receiving such notification.
36

Legal Proceedings
Nationwide Life Insurance Company
Nationwide Financial Services, Inc. (NFS, or collectively with its subsidiaries, "the Company") was formed in November 1996. NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base. NFS is incorporated in Delaware and maintains its principal executive offices in Columbus, Ohio.
The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company's legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company's litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs' claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company's condensed consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company's condensed consolidated financial position or results of operations in a particular quarter or annual period.
The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue Service, and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC's operations.
On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (ERISA) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys' fees. On November 6, 2009, the Court granted the plaintiffs' motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs' motion for class certification. The case is set for trial beginning February 9, 2015. NLIC continues to defend this lawsuit vigorously.
On November 20, 2007, Nationwide Retirement Solutions, Inc. (NRS) and NLIC were named in a lawsuit filed in the Circuit Court of Jefferson County, Alabama entitled Ruth A. Gwin and Sandra H. Turner, and a class of similarly situated individuals v. Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc., Alabama State Employees Association, PEBCO, Inc. and Fictitious Defendants A to Z. On March 12, 2010, NRS and NLIC were named in a Second Amended Class Action Complaint filed in the Circuit Court of Jefferson County, Alabama entitled Steven E. Coker, Sandra H. Turner, David N. Lichtenstein and a class of similarly situated individuals v. Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc., Alabama State Employees Association, Inc., PEBCO, Inc. and Fictitious
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Defendants A to Z claiming to represent a class of all participants in the Alabama State Employees Association, Inc. (ASEA) Plan, excluding members of the Deferred Compensation Committee, ASEA's directors, officers and board members, and PEBCO's directors, officers and board members. On October 22, 2010, the parties to this action executed a court approved stipulation of settlement that agreed to certify a class for settlement purposes only, that provided for payments to the settlement class, and that provided for releases, certain bar orders, and dismissal of the case. The settlement fund has been paid out. On December 6, 2011, the Court entered an Order that NRS owed indemnification to ASEA and PEBCO for only the Coker (Gwin) class action, and dismissed NLIC. The Company resolved the indemnification claims of ASEA. On February 15, 2013, the Court issued its Order determining the amount of fees due to PEBCO on its indemnification claim. On March 28, 2014, the Alabama Supreme Court reversed the trial Court decision awarding PEBCO its attorney fees and remanded the case back to the trial court to enter a judgment in favor of NRS. NRS continues to defend this case vigorously.
Lehman Brothers Holdings, Inc. (Debtors) and Giddens, James v NLIC and NMIC, et al. In 2012 the Plaintiff, Debtor in Possession Lehman Brothers Special Financing, Inc., filed a class action in the United States Bankruptcy Court for the Southern District of New York seeking the recovery of nearly $3.0 billion in assets from all the named defendants including NLIC and NMIC. This litigation arises from two collateralized debt obligation transactions, 801 Grand and Alta, which resulted in payments to NLIC and NMIC after the Plaintiff and its parent company, Lehman Brothers Holding, Inc. filed for bankruptcy in 2008. This triggered an early termination of the above transactions. The Plaintiff seeks to have sums returned to the bankruptcy estate in addition to prejudgment interest and costs. The case is currently stayed. In 2013, Plaintiff sent correspondence to all defendants inviting settlement discussions and has served NMIC and NLIC with a "SPV Derivatives ADR Notice," formally starting the Alternative Dispute Resolution process. NMIC and NLIC have responded, and are currently taking part in the ADR process. Mediation was scheduled for and proceeded on December 13, 2013, but the parties reached an impasse. The mediator is continuing to work with the parties and is expected to issue a final recommendation shortly. On January 10, 2014, Lehman filed another motion to extend the stay for a final four month period. After a hearing, the court extended the stay to the later of (a) May 20, 2014 or (b) 30 days after the court enters a scheduling order governing the Distributed Action. The parties have been negotiating the proposed scheduling order for the conduct of the Distributed Action litigation, and Lehman filed a revised proposed scheduling order on March 24, 2014. On April 14, 2014, Nationwide and 77 other defendants filed a joint response to the proposed scheduling order, and a hearing on the proposed scheduling order has been scheduled for May 14, 2014.
Nationwide Investment Services Corporation
The general distributor, NISC, is not engaged in any litigation of any material nature.
Contents of Statement of Additional Information
General Information and History
Services
Purchase of Securities Being Offered
Underwriters
Advertising
Annuity Payments
Financial Statements
Investment Company Act of 1940 Registration File No. 811-08241
Securities Act of 1933 Registration File No. 333-79327
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Appendix A: Underlying Mutual Funds
This appendix contains information about the underlying mutual funds in which the Sub-Accounts invest. The underlying mutual funds in which the Sub-Accounts invest are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies. There is no guarantee that the investment objectives will be met. Refer to the prospectus for each underlying mutual fund for more detailed information.
   
Designations Key:
STTF: The underlying mutual fund assesses (or reserves the right to assess) a short-term trading fee (see Short-Term Trading Fees).
FF: The underlying mutual fund primarily invests in other mutual funds. Therefore, a proportionate share of the fees and expenses of any acquired funds are indirectly borne by investors. As a result, investors in this Sub-Account may incur higher charges than if the assets were invested in an underlying mutual fund that does not invest in other mutual funds. Refer to the prospectus for this underlying mutual fund for more information.
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Growth and Income Portfolio: Class B
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class B
Investment Advisor: AllianceBernstein L.P.
Investment Objective: Long-term growth of capital.
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term total return using a strategy that seeks to protect against U.S. inflation.
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class I
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Capital growth by investing in common stocks. Income is a secondary objective.
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class II
Investment Advisor: American Century Investment Management, Inc.
Investment Objective: Long-term capital growth with income as a secondary objective.
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III
Investment Advisor: BlackRock Advisors, LLC
Sub-advisor: BlackRock Investment Management, LLC; BlackRock International Limited
Investment Objective: Seeks high total investment return.
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P SmallCap 600 Index®.
Dreyfus Socially Responsible Growth Fund, Inc. (The): Initial Shares
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: The Dreyfus Corporation
Investment Objective: Capital growth with current income as a secondary goal.
Dreyfus Stock Index Fund, Inc.: Initial Shares
Investment Advisor: The Dreyfus Corporation
Investment Objective: To match performance of the S&P 500.
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares
Investment Advisor: The Dreyfus Corporation
Sub-advisor: Fayez Sarofim & Co.
Investment Objective: Long-term capital growth consistent with the preservation of capital.
Dreyfus Variable Investment Fund - Opportunistic Small Cap Portfolio: Service Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: The Dreyfus Corporation
Investment Objective: Capital growth.
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Federated Insurance Series - Federated Managed Tail Risk Fund II: Service Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: Federated Global Investment Management Corp.
Investment Objective: To create an allocation mix which will maximize return while capturing the benefits of asset class diversification in periods of market volatility.
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2008
Investment Advisor: Federated Investment Management Company
Investment Objective: Current income.
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class 2
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class 2
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class 2
Investment Advisor: Strategic Advisers Inc. Boston MA
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: High total return with a secondary objective of principal preservation as the fund approaches its target date and beyond.
Designation: FF
Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective: Capital appreciation.
Designation: STTF
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Reasonable income.
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Capital appreciation.
Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income while also considering growth of capital.
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: Fidelity Investments Money Management, Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: High level of current income.
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Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Long-term growth of capital.
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Long-term capital growth.
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class R
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective: Long-term capital growth.
Designation: STTF
Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006
Investment Advisor: Fidelity Management & Research Company
Sub-advisor: FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective: Capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Founding Funds Allocation VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2)
Investment Advisor: Franklin Templeton Services, LLC
Investment Objective: Capital appreciation with income as a secondary goal.
Designation: FF
Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Franklin Income Securities Fund: Class 2)
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: Maximum income while maintaining prospects for capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends Securities Fund: Class 2)
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value Securities Fund: Class 2)
Investment Advisor: Franklin Advisory Services, LLC
Investment Objective: Long-term total return.
Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets Securities Fund: Class 2)
    
This underlying mutual fund is only available in contracts for which good order applications were received before April 30, 2014
Investment Advisor: Templeton Asset Management, Ltd.
Investment Objective: Long-term capital appreciation.
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Templeton Foreign Securities Fund: Class 2)
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective April 30, 2014
Investment Advisor: Templeton Investment Counsel, LLC
Investment Objective: Long-term capital growth.
41

Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 2 (formerly, Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond Securities Fund: Class 2)
Investment Advisor: Franklin Advisers, Inc.
Investment Objective: High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.
Invesco - Invesco V.I. American Franchise Fund: Series II Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: seek capital growth.
Invesco - Invesco V.I. Mid Cap Growth Fund: Series II Shares
Investment Advisor: Invesco Advisers, Inc.
Investment Objective: Capital growth.
Ivy Funds Variable Insurance Portfolios - Asset Strategy
Investment Advisor: Waddell & Reed Investment Management Company
Investment Objective: To seek to provide total return.
Janus Aspen Series - Balanced Portfolio: Service Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term capital growth, consistent with preservation of capital and balanced by current income.
Janus Aspen Series - Forty Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Global Technology Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
Janus Aspen Series - Overseas Portfolio: Service Shares
Investment Advisor: Janus Capital Management LLC
Investment Objective: Long-term growth of capital.
MFS® Variable Insurance Trust - MFS Investors Growth Stock Series: Service Class
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
MFS® Variable Insurance Trust - MFS Value Series: Service Class
Investment Advisor: Massachusetts Financial Services Company
Investment Objective: To seek capital appreciation.
Nationwide Variable Insurance Trust - American Century NVIT Growth Fund: Class I
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.
Investment Objective: The Fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.
Investment Objective: The Fund seeks capital appreciation, and secondarily current income.
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks to provide high total return (including income and capital gains) consistent with the preservation of capital over the long term.
Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund seeks to maximize an investors level of current income and preserve the investor's capital.
42

Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation through stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The Fund is designed for investors seeking capital appreciation principally through investment in stocks.
Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II
Investment Advisor: Capital Research and Management Company
Investment Objective: The fund seeks returns from both capital gains as well as income generated by dividends paid by stock issuers.
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks to provide high current income.
Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc.
Investment Objective: The Fund's investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks, and convertible securities.
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC
Investment Objective: The Fund seeks long-term growth of capital by investing primarily in securities of companies that meet the fund's financial criteria and social policy.
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return through investment in both equity and fixed income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Cardinal Funds.
Designation: FF
43

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Cardinal Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks a high level of current income consistent with preserving capital.
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: The Fund seeks long-term total return consistent with reasonable risk.
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: The Boston Company Asset Management, LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The fund seeks as high level of income as is consistent with the preserving of capital.
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Lazard Asset Management LLC
Investment Objective: The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class VIII
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks to match the performance of the MSCI, Inc. Europe, Australasia and Far East Index ("MSCI EAFE Index") as closely as possible before the deduction of Fund expenses.
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
44

Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Balanced Fund seeks a high level of total return through investment in both equity and fixed-income securities.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Capital Appreciation Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other NVIT Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Conservative Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderate Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Aggressive Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Investor Destinations Funds.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Investment Objective: The NVIT Investor Destinations Moderately Conservative Fund seeks a high level of total return consistent with a moderately conservative level of risk.
Designation: FF
Nationwide Variable Insurance Trust - NVIT Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: The Boston Company Asset Management, LLC
Investment Objective: The Fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: BlackRock Investment Management, LLC
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Federated Investment Management Company
Investment Objective: The Fund seeks as high a level of current income as is consistent with preserving capital and maintaining liquidity.
Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Logan Circle Partners, L.P.
Investment Objective: The Fund seeks to provide above average total return over a market cycle of three to five years.
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Invesco Advisers, Inc. and American Century Investment Management, Inc.
Investment Objective: The Fund seeks long-term capital growth.
45

Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: AllianceBernstein L.P.; JPMorgan Investment Management, Inc.
Investment Objective: The Fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Winslow Capital Management, Inc.; Neuberger Berman Management Inc. and Wells Capital Management, Inc.;
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Goldman Sachs Asset Management, L.P.; Wellington Management Company, LLP; The Boston Company Asset Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective May 1, 2010
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Goldman Sachs Asset Management, L.P.; Wellington Management Company, LLP; The Boston Company Asset Management, LLC
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Neuberger Berman Management LLC; Wells Capital Management, Inc.
Investment Objective: The fund seeks long-term capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: American Century Investment Management, Inc.; Thompson, Siegel & Walmsley LLC; WEDGE Capital Management L.L.P.
Investment Objective: The fund seeks long-term capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: OppenheimerFunds, Inc.; Wellington Management Company, LLP
Investment Objective: The Fund seeks capital growth.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Aberdeen Asset Management, Inc.; Epoch Investment Partners, Inc.; J.P. Morgan Investment Management Inc.
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Aberdeen Asset Management, Inc.; Morgan Stanley Investment Management; Neuberger Berman Management, Inc.; Putnam Investment Management, LLC; and Waddell & Reed Investment Management Company
Investment Objective: The Fund seeks capital appreciation.
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: HighMark Capital Management, Inc.
Investment Objective: The Fund seeks total return through a flexible combination of capital appreciation and current income.
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Brookfield Investment Management Inc.
Investment Objective: The Fund seeks current income and long-term capital appreciation.
46

Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Nationwide Asset Management, LLC
Investment Objective: The Fund seeks to provide a high level of current income while preserving capital and minimizing fluctuations in share value.
Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class I
Investment Advisor: Nationwide Fund Advisors
Sub-advisor: Templeton Investment Counsel, LLC
Investment Objective: The Fund seeks to maximize total return consisting of capital appreciation and/or current income.
Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class Shares
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman Fixed Income LLC
Investment Objective: Highest available current income consistent with liquidity and low risk to principal; total return is a secondary goal.
Neuberger Berman Advisers Management Trust - AMT Small Cap Growth Portfolio: S Class Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2008
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: Long-term capital growth.
Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class Shares
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2008
Investment Advisor: Neuberger Berman Management LLC
Sub-advisor: Neuberger Berman, LLC
Investment Objective: Long-term growth by investing primarily in securities of companies that meet financial criteria and social policy.
Oppenheimer Variable Account Funds - Oppenheimer Discovery Mid Cap Growth Fund/VA: Non-Service Shares
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: The Fund seeks long-term capital appreciation by investing a substantial portion of its assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special situations that are considered to have appreciation possibilities.
Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income Fund/VA: Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: High level of current income principally derived from interest on debt securities.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: High total return which includes growth in the value of its shares as well as current income from equity and debt securities.
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Service Shares
Investment Advisor: OFI Global Asset Management, Inc.
Sub-advisor: OppenheimerFunds, Inc.
Investment Objective: Capital appreciation.
47

PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: Seeks maximum total return consistent with preservation of capital and prudent investment management. The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to foreign (non-U.S.) countries, representing at least three foreign countries, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements.
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class
Investment Advisor: Pacific Investment Management Company LLC
Investment Objective: Seeks maximum total return, consistent with preservation of capital and prudent investment management.
Putnam Variable Trust - Putnam VT Growth & Income Fund: Class IB
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital growth and current income.
Putnam Variable Trust - Putnam VT International Equity Fund: Class IB
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited and Putnam Advisory Company, LLC
Investment Objective: Capital appreciation.
Putnam Variable Trust - Putnam VT Voyager Fund: Class IB
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2005
Investment Advisor: Putnam Investment Management, LLC
Sub-advisor: Putnam Investments Limited
Investment Objective: Capital appreciation.
T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II
Investment Advisor: T. Rowe Price Associates, Inc.
Investment Objective: Long-term capital appreciation.
The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class II
    
This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2009
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: Above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities.
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective May 1, 2004
Investment Advisor: Morgan Stanley Investment Management Inc.
Investment Objective: High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.
Van Eck VIP Trust - Van Eck VIP Emerging Markets Fund: Initial Class
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in equity securities in emerging markets around the world.
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class
    
This underlying mutual fund is no longer available to receive transfers or new purchase payments effective September 20, 2004
Investment Advisor: Van Eck Associates Corporation
Investment Objective: Long-term capital appreciation by investing primarily in hard asset securities. Income is a secondary consideration.
Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2
Investment Advisor: Wells Fargo Funds Management, LLC
Sub-advisor: Wells Capital Management Inc.
Investment Objective: The Fund seeks long-term capital appreciation
48

Appendix B: Fixed Annuity Payments
The contracts described in this prospectus are combination fixed and variable immediate annuity contracts. This appendix discusses those interests under the contracts that relate to Fixed Annuity Payments.
Interests in Fixed Annuity Payments purchased under the contracts are supported by Nationwide's General Account. In reliance on certain exemptions provided for under the Securities Act of 1933, such interests have not been registered with the SEC, and the SEC has not reviewed the following disclosures.
Fixed Annuity Payment Allocations under the Contract
Contract Owners not allocating all of their single purchase payment to the Variable Account for the purchase of Variable Annuity Payments may allocate their single purchase payment to Nationwide's General Account for the purchase of Fixed Annuity Payments. Alternatively, Contract Owners may allocate their single purchase payment to the General Account and the Variable Account for the purchase of a combination of fixed and variable annuity payments.
Amounts originally allocated for the purchase of Fixed Annuity Payments may not be reallocated to the Variable Account to purchase Variable Annuity Payments. However, subject to certain terms and conditions, Contract Owners may execute a variable to fixed transfer, as described in the "Transfers between Variable Annuity Payments and Fixed Annuity Payments" provision. The amount originally allocated to provide Fixed Annuity Payments, and each amount subsequent amount allocated to provide Fixed Annuity Payments as a result of one or more variable to fixed transfers, constitute an independent series of Fixed Annuity Payments or "fixed annuity segments."
Determination of Fixed Annuity Payments
Fixed Annuity Payments are level, meaning that each payment received will be the same, unless certain transactions are affected on the contract. Fixed Annuity Payments will be reduced if:
• non-annuity payment withdrawals are taken, as permitted under some Income Options;
• required under the terms of the Income Option elected. For example, under the joint and last survivor Income Option, annuity payments continuing to a survivor after the death of either the Annuitant or joint Annuitant may be reduced if the Contract Owner selected a continuation percentage of less than 100%. Other Income Options may provide for similar reductions in Fixed Annuity Payments.
Fixed Annuity Payments will be increased if the Contract Owner makes one or more variable to fixed transfers.
When the Contract Owner allocates all or part of the single purchase payment for the purchase of Fixed Annuity Payments, or if the Contract Owner makes one or more variable to fixed transfers, the amount of each fixed annuity segment will be determined by Nationwide, based on the following factors:
• the amount allocated for the purchase of Fixed Annuity Payments, or, in the case of a variable to fixed transfer, the amount transferred from the Variable Account to purchase Fixed Annuity Payments;
• the age of the Annuitant (and joint Annuitant, if any) at the time of contract issuance and at the time of each variable to fixed transfer;
• the sex of the Annuitant (and joint Annuitant, if any) at the time of contract issuance;
• the Income Option elected;
• the frequency of annuity payments elected (monthly, quarterly, etc.);
• the Income Start Date or the date Fixed Annuity Payments begin that are the result of one or more variable to fixed transfers;
• the deduction of applicable premium taxes; and
• the date the contract was issued.
These factors will allow Nationwide to determine the level of Fixed Annuity Payments it is able to guarantee on the basis of its expense, mortality, and normal profit assumptions.
Assets transferred to purchase Fixed Annuity Payments pursuant to a variable to fixed transfer will receive the purchase rate that is current as of the date of the transfer. This could result in different purchase rates for different Fixed Annuity Payment allocations.
Fixed Annuity Payments and the Annuity Income Options
Fixed Annuity Payments may be purchased in conjunction with any of the Income Options available under the contract.
49

Commutation Value of Fixed Annuity Payments
Under certain circumstances, it may be necessary to "commute" the value of Fixed Annuity Payments. The Commutation Value of Fixed Annuity Payments is the value of future guaranteed Fixed Annuity Payments that are converted mathematically into a lump sum. This is commonly referred to as a "present value" calculation. There are two basic purposes for which it may be necessary to calculate the Commutation Value of Fixed Annuity Payments.
First, under term certain Income Options, the Contract Owner has the right to make withdrawals from the contract that are in addition to regularly scheduled annuity payments. In order to know what can be withdrawn from allocations for Fixed Annuity Payments, it is necessary to know the Commutation Value of Fixed Annuity Payments at the time the withdrawal is taken. (It is important to understand that partial withdrawals of this nature will reduce on-going Fixed Annuity Payments subsequent to the withdrawal, and a CDSC may apply as well - see the following section.)
Second, for those Income Options that provide a death benefit based on Commutation Values, the Commutation Value of remaining Fixed Annuity Payments will equal the lump sum death benefit to which a beneficiary is entitled, insofar as Fixed Annuity Payments are concerned.
It may also be necessary to calculate the Commutation Value of Fixed Annuity Payments when a Contract Owner and/or Annuitant die prior to the Income Start Date.
The Adjusted Contract Rate
For purposes of calculating the Commutation Value of guaranteed Fixed Annuity Payments, Nationwide calculates the present value of such payments, using the adjusted contract rate.
The adjusted contract rate is equal to the Commutation Value interest rate (which is a rate of interest established on the date the contract is issued and on the date of each variable to fixed transfer), plus the interest rate adjustment.
The interest rate adjustment is equal to;
CMT(c) - CMT(i); where
CMT(c) = the 10-year Constant Maturity Treasury (CMT) rate in effect on the date the request for withdrawal is received (or on the date of a death benefit calculation); and
CMT(i) = the 10-year Constant Maturity Treasury (CMT) rate in effect on the date the contract is issued (for fixed annuity segments purchased at the time the contract is issued) and/or the 10-year CMT rate in effect when any fixed annuity segments are created as a result of a variable to fixed transfer.
The CMT rates are interest rate quotations for various maturity durations published by the Federal Reserve Board on a regular basis. These rates represent a readily available and consistently reliable interest rate benchmark in financial markets.
If the Federal Reserve Board halts publication of CMT rates, or if for any reason the CMT rates become unavailable, Nationwide will use appropriate rates based on Treasury bond yields.
Contingent Deferred Sales Charges (CDSC)
Under term certain Income Options (including the term certain with enhanced death benefit option) withdrawals in addition to regularly scheduled annuity payments may be taken. Nationwide may assess a CDSC if such withdrawals are taken.
The CDSC is calculated by multiplying the applicable CDSC percentage by the amount that is withdrawn. The applicable CDSC will not be applied to any amount in excess of the single purchase payment.
CDSC may be assessed based on amounts withdrawn from Variable Annuity Payment allocations as well as Fixed Annuity Payment allocations.
The CDSC applies as follows:
Number of Completed Years from Date of Issue   0   1   2   3   4   5   6   7+
CDSC Percentage
   6%   6%   5%   5%   4%   3%   2%   0%
For contracts issued on or after May 1, 2003 and before May 1, 2004, no CDSC will be assessed for withdrawals taken during the first Contract Year.
50

Appendix C: Illustration of Variable Annuity Income
The following charts demonstrate how the Assumed Investment Return (AIR) selected, and how different levels of investment performance, would affect variable annuity income over time. Variable income will increase from one Income Start Date anniversary to the next if the annualized net rate of return during that time is greater than the AIR chosen. Variable income will decrease if the annualized net rate of return is less than the AIR. The first Variable Annuity Payment will be lower if the Contract Owner selected a 3.5% AIR than if the Contract Owner selected a 5.0% AIR. However, subsequent Variable Annuity Payments will increase more rapidly (or decrease more slowly) with a 3.5% AIR than with a 5.0% AIR.
Each of the three charts below shows the variable annuity income amounts for a contract with a 3.5% AIR, a contract with a 5.0% AIR, and a contract with a 6.0% AIR. The 6.0% AIR may not be available in all states. (Check with your registered representative regarding availability.) The first chart is based on a 0% constant investment return before expenses, the second is based on a 6% return, and the third is based on a 12% return. These are hypothetical rates of return. Nationwide does not guarantee that the contract will earn these returns. The charts are for illustrative purposes only. They do not represent past or future investment returns.
A Contract Owner's variable annuity income will differ from the income shown if the actual returns of the underlying mutual funds selected are different than those shown below. Since it is very likely that investment returns will fluctuate over time, the amount of variable annuity income actually received will also fluctuate. The total amount of variable annuity income actually received will depend on the cumulative investment returns of the underlying mutual funds chosen, the Contract Owner's life span, and the Income Option chosen. The Annuitant's age and sex will also affect the level of annuity payments.
The variable income amounts shown reflect the deduction of all fees and expenses. Actual underlying mutual fund fees and expenses will vary from year to year and from underlying mutual fund to underlying mutual fund. Actual expenses may be higher or lower than the rate used in the illustrations. The illustration does not consider contracts that have elected the AIA Income Foundation Rider. The illustrations assume that each underlying mutual fund will incur expenses at an average annualized rate of 0.95% of the average daily net assets of the underlying mutual fund. The insurance charges are calculated at an annualized rate of 1.25% of the average Daily Net Assets of the Variable Account. After taking these expenses and charges into consideration, the illustrated gross investment returns of 0%, 6%, and 12% are approximately equal to the net rates (which means after expenses have been deducted) of -2.19%, 3.68% and 9.55%, respectively.
51

Assumptions:
Annuitant: Male, Age 70
Date of Birth: 01/01/30
Annuity Purchase Amount: $100,000
Income Option: Single Life with a 10 Year Term Certain
Income Start Date: 01/01/00
Variable Annuity Percentage: 100%
Payment Frequency: Monthly
52

53

Appendix D: Condensed Financial Information
The following tables list the Condensed Financial Information (the Accumulation Unit value information for Accumulation Units outstanding) for contracts as of December 31, 2013. The term "Period" is defined as a complete calendar year, unless otherwise noted. Those Periods with an asterisk (*) reflect Accumulation Unit information for a partial year only.
The following Sub-Accounts were added to the Variable Account after December 31, 2013; therefore, no Condensed Financial Information is available:
• Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets VIP Fund: Class 2
• Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond VIP Fund: Class 2
• Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class I
• Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares
    
Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Growth and Income Portfolio: Class B - Q/NQ
2013
   13.601280   18.077559   32.91%   904
2012
   11.747971   13.601280   15.78%   1,007
2011
   11.215556   11.747971   4.75%   1,117
2010
   10.068761   11.215556   11.39%   1,236
2009
   8.472197   10.068761   18.84%   1,363
2008
   14.466786   8.472197   -41.44%   1,499
2007
   13.971839   14.466786   3.54%   1,644
2006
   12.094129   13.971839   15.53%   1,798
2005
   11.708653   12.094129   3.29%   1,963
2004
   10.660536   11.708653   9.83%   0
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class B - Q/NQ
2013
   17.651726   23.991408   35.92%   412
2012
   15.088886   17.651726   16.98%   611
2011
   16.721219   15.088886   -9.76%   1,124
2010
   13.376095   16.721219   25.01%   337
2009
   9.495046   13.376095   40.87%   363
2008
   14.965038   9.495046   -36.55%   391
2007
   14.927481   14.965038   0.25%   419
2006
   13.236164   14.927481   12.78%   450
2005
   12.569700   13.236164   5.30%   1,090
2004
   10.689767   12.569700   17.59%   0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
2013
   14.950729   13.511959   -9.62%   56,968
2012
   14.099100   14.950729   6.04%   64,340
2011
   12.776476   14.099100   10.35%   66,890
2010
   12.308103   12.776476   3.81%   70,803
2009
   11.308735   12.308103   8.84%   85,289
2008
   11.636753   11.308735   -2.82%   106,360
2007
   10.763004   11.636753   8.12%   107,223
2006
   10.728572   10.763004   0.32%   98,314
2005
   10.696844   10.728572   0.30%   222,391
2004
   10.237378   10.696844   4.49%   856
54

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class I - Q/NQ
2013
   15.166971   20.342590   34.12%   16,331
2012
   13.385756   15.166971   13.31%   20,159
2011
   13.145746   13.385756   1.83%   22,210
2010
   11.662225   13.145746   12.72%   24,765
2009
   10.000143   11.662225   16.62%   28,629
2008
   15.481418   10.000143   -35.41%   32,196
2007
   15.689047   15.481418   -1.32%   35,807
2006
   13.568544   15.689047   15.63%   40,123
2005
   13.131678   13.568544   3.33%   239,843
2004
   11.768787   13.131678   11.58%   0
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class II - Q/NQ
2013
   16.183432   20.759602   28.28%   14,247
2012
   14.100594   16.183432   14.77%   16,057
2011
   14.400100   14.100594   -2.08%   16,214
2010
   12.256429   14.400100   17.49%   19,407
2009
   9.561908   12.256429   28.18%   19,506
2008
   12.826795   9.561908   -25.45%   22,059
2007
   13.312954   12.826795   -3.65%   24,953
2006
   11.213063   13.312954   18.73%   4,859
2005*
   10.000000   11.213063   12.13%   5,986
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
2013
   13.525237   15.281611   12.99%   14,322
2012
   12.455436   13.525237   8.59%   18,442
2011
   13.089237   12.455436   -4.84%   20,205
2010
   12.076097   13.089237   8.39%   13,457
2009*
   10.000000   12.076097   20.76%   4,020
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares - Q/NQ
2013
   17.377168   24.146713   38.96%   20,394
2012
   15.204228   17.377168   14.29%   22,587
2011
   15.310131   15.204228   -0.69%   24,675
2010
   12.321501   15.310131   24.26%   34,169
2009
   9.979863   12.321501   23.46%   38,038
2008
   14.628661   9.979863   -31.78%   38,615
2007
   14.912520   14.628661   -1.90%   48,169
2006
   13.198697   14.912520   12.98%   49,400
2005
   12.463747   13.198697   5.90%   88,187
2004
   10.355238   12.463747   20.36%   2,209
55

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Dreyfus Socially Responsible Growth Fund, Inc. (The): Initial Shares - Q/NQ
2013
   12.647026   16.778230   32.67%   3,203
2012
   11.437824   12.647026   10.57%   3,419
2011
   11.478851   11.437824   -0.36%   3,648
2010
   10.124093   11.478851   13.38%   3,888
2009
   7.664898   10.124093   32.08%   4,661
2008
   11.836884   7.664898   -35.25%   4,958
2007
   11.121665   11.836884   6.43%   5,324
2006
   10.313177   11.121665   7.84%   7,855
2005
   10.078937   10.313177   2.32%   287,872
2004
   9.609681   10.078937   4.88%   0
Dreyfus Stock Index Fund, Inc.: Initial Shares - Q/NQ
2013
   15.032842   19.599525   30.38%   103,539
2012
   13.153502   15.032842   14.29%   111,973
2011
   13.074179   13.153502   0.61%   125,179
2010
   11.528882   13.074179   13.40%   151,272
2009
   9.241214   11.528882   24.76%   161,410
2008
   14.888051   9.241214   -37.93%   178,041
2007
   14.324729   14.888051   3.93%   187,272
2006
   12.559128   14.324729   14.06%   188,695
2005
   12.147726   12.559128   3.39%   799,340
2004
   11.118412   12.147726   9.26%   7,442
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares - Q/NQ
2013
   17.009549   20.341736   19.59%   20,718
2012
   15.598402   17.009549   9.05%   25,638
2011
   14.489599   15.598402   7.65%   27,827
2010
   12.723920   14.489599   13.88%   29,531
2009
   10.513296   12.723920   21.03%   34,475
2008
   15.112442   10.513296   -30.43%   36,030
2007
   14.285838   15.112442   5.79%   47,925
2006
   12.419725   14.285838   15.03%   61,446
2005
   12.049000   12.419725   3.08%   368,495
2004
   11.615394   12.049000   3.73%   0
Dreyfus Variable Investment Fund - Opportunistic Small Cap Portfolio: Service Shares - Q/NQ
2013
   10.512170   15.386342   46.37%   0
2012
   8.853615   10.512170   18.73%   0
2011
   10.432093   8.853615   -15.13%   0
2010
   8.075468   10.432093   29.18%   0
2009
   6.502407   8.075468   24.19%   0
2008
   10.581711   6.502407   -38.55%   0
2007
   12.078880   10.581711   -12.39%   0
2006
   11.815361   12.078880   2.23%   0
2005
   11.334718   11.815361   4.24%   0
2004
   10.336480   11.334718   9.66%   0
56

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Federated Insurance Series - Federated Managed Tail Risk Fund II: Service Shares - Q/NQ
2013
   12.157054   13.939605   14.66%   0
2012
   11.189359   12.157054   8.65%   0
2011
   11.991291   11.189359   -6.69%   0
2010
   10.745277   11.991291   11.60%   0
2009
   9.606853   10.745277   11.85%   0
2008
   13.832225   9.606853   -30.55%   0
2007
   12.776417   13.832225   8.26%   0
2006
   11.174187   12.776417   14.34%   0
2005
   11.126609   11.174187   0.43%   0
2004
   10.519530   11.126609   5.77%   0
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares - Q/NQ
2013
   17.763915   17.723414   -0.23%   41,130
2012
   16.395358   17.763915   8.35%   56,738
2011
   16.233427   16.395358   1.00%   66,419
2010
   15.150425   16.233427   7.15%   76,132
2009
   12.738951   15.150425   18.93%   86,216
2008
   13.914256   12.738951   -8.45%   116,276
2007
   13.371467   13.914256   4.06%   129,160
2006
   13.000205   13.371467   2.86%   140,825
2005
   12.995693   13.000205   0.03%   312,788
2004
   12.700446   12.995693   2.32%   2,419
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class 2 - Q/NQ
2013
   13.510072   15.101749   11.78%   1,366
2012
   12.261246   13.510072   10.19%   1,353
2011
   12.469404   12.261246   -1.67%   974
2010
   11.219591   12.469404   11.14%   1,330
2009
   9.165923   11.219591   22.41%   1,831
2008
   12.403881   9.165923   -26.10%   2,431
2007
   11.585934   12.403881   7.06%   2,743
2006
   10.706491   11.585934   8.21%   3,171
2005*
   10.000000   10.706491   7.06%   977
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class 2 - Q/NQ
2013
   13.662026   15.600631   14.19%   3,437
2012
   12.236028   13.662026   11.65%   3,714
2011
   12.546367   12.236028   -2.47%   4,151
2010
   11.112765   12.546367   12.90%   4,610
2009
   8.754255   11.112765   26.94%   5,095
2008
   13.192339   8.754255   -33.64%   5,604
2007
   12.149289   13.192339   8.59%   1,206
2006
   11.013523   12.149289   10.31%   1,316
2005*
   10.000000   11.013523   10.14%   379
57

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class 2 - Q/NQ
2013
   13.559656   16.256842   19.89%   14,373
2012
   11.921764   13.559656   13.74%   15,958
2011
   12.423867   11.921764   -4.04%   18,151
2010
   10.855980   12.423867   14.44%   20,811
2009
   8.380464   10.855980   29.54%   23,975
2008
   13.726255   8.380464   -38.95%   24,989
2007
   12.514327   13.726255   9.68%   10,880
2006
   11.221906   12.514327   11.52%   3,182
2005*
   10.000000   11.221906   12.22%   372
Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2 - Q/NQ
2013
   16.592312   20.341203   22.59%   7,766
2012
   16.043285   16.592312   3.42%   10,498
2011
   17.137015   16.043285   -6.38%   11,700
2010
   14.563801   17.137015   17.67%   12,074
2009
   9.993789   14.563801   45.73%   15,235
2008
   22.196567   9.993789   -54.98%   18,683
2007
   15.434380   22.196567   43.81%   14,590
2006
   13.402323   15.434380   15.16%   10,959
2005*
   10.000000   13.402323   34.02%   4,964
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class - Q/NQ
2013
   17.051501   21.555222   26.41%   70,824
2012
   14.735197   17.051501   15.72%   81,858
2011
   14.794276   14.735197   -0.40%   91,574
2010
   13.017361   14.794276   13.65%   102,711
2009
   10.137667   13.017361   28.41%   119,323
2008
   17.918117   10.137667   -43.42%   133,127
2007
   17.892525   17.918117   0.14%   153,650
2006
   15.088589   17.892525   18.58%   170,739
2005
   14.447194   15.088589   4.44%   833,906
2004
   13.134952   14.447194   9.99%   300
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class - Q/NQ
2013
   14.443460   19.426706   34.50%   31,522
2012
   12.769356   14.443460   13.11%   37,833
2011
   12.912423   12.769356   -1.11%   43,793
2010
   10.540147   12.912423   22.51%   48,915
2009
   8.329103   10.540147   26.55%   54,525
2008
   15.985215   8.329103   -47.89%   61,549
2007
   12.759957   15.985215   25.28%   64,455
2006
   12.106070   12.759957   5.40%   62,580
2005
   11.600743   12.106070   4.36%   515,706
2004
   11.376316   11.600743   1.97%   4
58

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class - Q/NQ
2013
   15.729084   16.444824   4.55%   5,598
2012
   13.948535   15.729084   12.77%   6,474
2011
   13.591116   13.948535   2.63%   7,208
2010
   12.095392   13.591116   12.37%   9,394
2009
   8.519187   12.095392   41.98%   10,836
2008
   11.512518   8.519187   -26.00%   12,144
2007
   11.357330   11.512518   1.37%   13,868
2006
   10.344409   11.357330   9.79%   16,809
2005
   10.217205   10.344409   1.24%   74,317
2004
   9.451656   10.217205   8.10%   0
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class - Q/NQ
2013
   14.296186   13.850724   -3.12%   24,829
2012
   13.687953   14.296186   4.44%   36,617
2011
   12.928768   13.687953   5.87%   31,533
2010
   12.158698   12.928768   6.33%   36,277
2009
   10.644234   12.158698   14.23%   45,839
2008
   11.152038   10.644234   -4.55%   45,866
2007
   10.837555   11.152038   2.90%   71,111
2006
   10.521925   10.837555   3.00%   54,571
2005
   10.437626   10.521925   0.81%   88,768
2004
   10.132142   10.437626   3.01%   184
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2 - Q/NQ
2013
   20.193532   27.094043   34.17%   19,573
2012
   17.850276   20.193532   13.13%   22,617
2011
   20.276338   17.850276   -11.96%   26,406
2010
   15.969957   20.276338   26.97%   28,969
2009
   11.571985   15.969957   38.01%   34,309
2008
   19.403947   11.571985   -40.36%   42,254
2007
   17.037613   19.403947   13.89%   44,994
2006
   15.348956   17.037613   11.00%   38,613
2005
   13.169953   15.348956   16.55%   62,513
2004
   10.698680   13.169953   23.10%   144
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class - Q/NQ
2013
   14.631535   18.837764   28.75%   5,267
2012
   12.292184   14.631535   19.03%   7,044
2011
   15.038362   12.292184   -18.26%   7,746
2010
   13.477523   15.038362   11.58%   12,197
2009
   10.794322   13.477523   24.86%   13,523
2008
   19.473097   10.794322   -44.57%   16,260
2007
   16.825747   19.473097   15.73%   27,450
2006
   14.445584   16.825747   16.48%   32,236
2005
   12.295261   14.445584   17.49%   75,699
2004
   10.971102   12.295261   12.07%   0
59

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class R - Q/NQ
2013
   14.592931   18.777289   28.67%   21,031
2012
   12.246683   14.592931   19.16%   24,348
2011
   14.996170   12.246683   -18.33%   28,307
2010
   13.437646   14.996170   11.60%   34,438
2009
   10.757924   13.437646   24.91%   41,885
2008
   19.411921   10.757924   -44.58%   46,012
2007
   16.770243   19.411921   15.75%   50,426
2006
   14.397587   16.770243   16.48%   39,565
2005
   12.259263   14.397587   17.44%   100,227
2004*
   10.000000   12.259263   22.59%   820
Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class - Q/NQ
2013
   16.732169   21.553598   28.82%   6,637
2012
   13.331454   16.732169   25.51%   7,623
2011
   14.810348   13.331454   -9.99%   8,306
2010
   11.860125   14.810348   24.88%   10,040
2009
   7.630562   11.860125   55.43%   12,014
2008
   15.826899   7.630562   -51.79%   15,769
2007
   15.178387   15.826899   4.27%   25,582
2006
   13.227488   15.178387   14.75%   29,117
2005
   13.060805   13.227488   1.28%   54,639
2004
   11.603120   13.060805   12.56%   0
Franklin Templeton Variable Insurance Products Trust - Franklin Founding Funds Allocation VIP Fund: Class 2 - Q/NQ
2013
   10.235367   12.510067   22.22%   3,337
2012
   8.987230   10.235367   13.89%   3,649
2011
   9.243283   8.987230   -2.77%   3,978
2010
   8.489692   9.243283   8.88%   4,325
2009
   6.600419   8.489692   28.62%   2,765
2008*
   10.000000   6.600419   -34.00%   2,693
Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2 - Q/NQ
2013
   13.264831   14.925220   12.52%   43,045
2012
   11.924398   13.264831   11.24%   48,165
2011
   11.793823   11.924398   1.11%   53,806
2010
   10.599753   11.793823   11.27%   67,159
2009
   7.916115   10.599753   33.90%   72,888
2008
   11.396036   7.916115   -30.54%   70,827
2007
   11.123200   11.396036   2.45%   54,183
2006*
   10.000000   11.123200   11.23%   29,347
60

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 2 - Q/NQ
2013
   14.664894   18.781103   28.07%   33,250
2012
   13.264311   14.664894   10.56%   36,109
2011
   12.671698   13.264311   4.68%   41,586
2010
   10.636241   12.671698   19.14%   39,451
2009
   9.178848   10.636241   15.88%   45,301
2008
   12.750528   9.178848   -28.01%   52,893
2007
   13.269467   12.750528   -3.91%   64,129
2006
   11.472529   13.269467   15.66%   72,752
2005
   11.232480   11.472529   2.14%   167,272
2004
   10.247554   11.232480   9.61%   901
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 2 - Q/NQ
2013
   18.525896   24.924006   34.54%   16,173
2012
   15.847002   18.525896   16.90%   21,835
2011
   16.674194   15.847002   -4.96%   23,839
2010
   13.168615   16.674194   26.62%   31,220
2009
   10.324935   13.168615   27.54%   38,054
2008
   15.609664   10.324935   -33.86%   41,985
2007
   16.193756   15.609664   -3.61%   38,304
2006
   14.017788   16.193756   15.52%   37,491
2005
   13.050590   14.017788   7.41%   54,273
2004
   10.679693   13.050590   22.20%   977
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2 - Q/NQ
2013
   16.353351   19.858524   21.43%   1,399
2012
   14.006949   16.353351   16.75%   1,523
2011
   15.871877   14.006949   -11.75%   1,784
2010
   14.826263   15.871877   7.05%   1,946
2009
   10.955666   14.826263   35.33%   2,121
2008
   18.608192   10.955666   -41.12%   4,144
2007
   16.322062   18.608192   14.01%   5,496
2006
   13.609486   16.322062   19.93%   6,397
2005
   12.509221   13.609486   8.80%   18,386
2004
   10.687308   12.509221   17.05%   0
Invesco - Invesco V.I. American Franchise Fund: Series II Shares - Q/NQ
2013
   9.649123   13.320486   38.05%   106
2012*
   10.000000   9.649123   -3.51%   116
Invesco - Invesco V.I. Mid Cap Growth Fund: Series II Shares - Q/NQ
2013
   9.743742   13.143955   34.90%   7,401
2012*
   10.000000   9.743742   -2.56%   8,237
Ivy Funds Variable Insurance Portfolios - Asset Strategy - Q/NQ
2013
   25.155125   31.083721   23.57%   8,931
2012
   21.375327   25.155125   17.68%   11,063
2011
   23.326248   21.375327   -8.36%   12,921
2010
   21.735727   23.326248   7.32%   5,785
2009
   18.101080   21.735727   20.08%   0
61

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Janus Aspen Series - Balanced Portfolio: Service Shares - Q/NQ
2013
   17.126090   20.261110   18.31%   4,117
2012
   15.297370   17.126090   11.95%   4,547
2011
   15.283509   15.297370   0.09%   4,875
2010
   14.314603   15.283509   6.77%   7,409
2009
   11.542833   14.314603   24.01%   7,927
2008
   13.925434   11.542833   -17.11%   7,919
2007
   12.787179   13.925434   8.90%   2,342
2006
   11.727222   12.787179   9.04%   3,983
2005
   11.030242   11.727222   6.32%   8,941
2004
   10.314462   11.030242   6.94%   0
Janus Aspen Series - Forty Portfolio: Service Shares - Q/NQ
2013
   10.927524   14.123878   29.25%   13,898
2012
   8.934517   10.927524   22.31%   18,701
2011
   9.722280   8.934517   -8.10%   25,912
2010
   9.246199   9.722280   5.15%   38,542
2009
   6.412493   9.246199   44.19%   44,137
2008
   11.660629   6.412493   -45.01%   40,646
2007
   8.642729   11.660629   34.92%   32,984
2006
   8.020653   8.642729   7.76%   29,751
2005
   7.215824   8.020653   11.15%   87,496
2004
   6.194175   7.215824   16.49%   0
Janus Aspen Series - Global Technology Portfolio: Service Shares - Q/NQ
2013
   5.315315   7.106516   33.70%   2,471
2012
   4.517653   5.315315   17.66%   3,274
2011
   5.008333   4.517653   -9.80%   2,469
2010
   4.077032   5.008333   22.84%   2,729
2009
   2.631430   4.077032   54.94%   3,021
2008
   4.756180   2.631430   -44.67%   3,445
2007
   3.957908   4.756180   20.17%   3,827
2006
   3.716911   3.957908   6.48%   4,566
2005
   3.374104   3.716911   10.16%   28,760
2004
   3.397584   3.374104   -0.69%   0
Janus Aspen Series - Overseas Portfolio: Service Shares - Q/NQ
2013
   12.946237   14.610236   12.85%   14,010
2012
   11.583679   12.946237   11.76%   20,222
2011
   17.336409   11.583679   -33.18%   8,156
2010
   14.042580   17.336409   23.46%   8,927
2009
   7.941109   14.042580   76.83%   12,153
2008
   16.834173   7.941109   -52.83%   16,157
2007
   13.317081   16.834173   26.41%   17,711
2006
   9.196737   13.317081   44.80%   20,358
2005
   7.058336   9.196737   30.30%   78,544
2004
   6.022291   7.058336   17.20%   0
62

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
MFS® Variable Insurance Trust - MFS Investors Growth Stock Series: Service Class - Q/NQ
2013
   14.132645   18.150394   28.43%   10,754
2012
   12.265664   14.132645   15.22%   12,099
2011
   12.374816   12.265664   -0.88%   13,767
2010
   11.173604   12.374816   10.75%   15,052
2009
   8.134716   11.173604   37.36%   17,229
2008
   13.071783   8.134716   -37.77%   17,864
2007
   11.923591   13.071783   9.63%   19,750
2006
   11.252200   11.923591   5.97%   22,488
2005
   10.932163   11.252200   2.93%   62,111
2004
   10.157854   10.932163   7.62%   975
MFS® Variable Insurance Trust - MFS Value Series: Service Class - Q/NQ
2013
   16.077205   21.527618   33.90%   12,927
2012
   14.049748   16.077205   14.43%   15,138
2011
   14.293898   14.049748   -1.71%   17,921
2010
   13.014934   14.293898   9.83%   21,361
2009
   10.763214   13.014934   20.92%   15,759
2008
   16.205840   10.763214   -33.58%   19,144
2007
   15.253770   16.205840   6.24%   22,698
2006
   12.817901   15.253770   19.00%   18,892
2005
   12.191297   12.817901   5.14%   26,763
2004
   10.751630   12.191297   13.39%   539
Nationwide Variable Insurance Trust - American Century NVIT Growth Fund: Class I - Q/NQ
2013
   8.740200   11.197848   28.12%   3,646
2012
   7.762626   8.740200   12.59%   4,488
2011
   7.915339   7.762626   -1.93%   5,305
2010
   6.721715   7.915339   17.76%   6,203
2009
   5.099795   6.721715   31.80%   7,140
2008
   8.425771   5.099795   -39.47%   8,276
2007
   7.137919   8.425771   18.04%   9,571
2006
   6.808112   7.137919   4.84%   10,947
2005
   6.473239   6.808112   5.17%   28,810
2004
   6.060807   6.473239   6.80%   0
Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I - Q/NQ
2013
   15.710602   20.463168   30.25%   57,419
2012
   13.875428   15.710602   13.23%   66,375
2011
   13.960429   13.875428   -0.61%   75,331
2010
   12.459482   13.960429   12.05%   91,597
2009*
   10.000000   12.459482   24.59%   0
63

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
2013
   11.682668   14.222958   21.74%   87,175
2012
   10.224031   11.682668   14.27%   91,577
2011
   10.257868   10.224031   -0.33%   99,121
2010
   9.273251   10.257868   10.62%   104,691
2009
   7.609027   9.273251   21.87%   116,592
2008
   10.972607   7.609027   -30.65%   124,934
2007
   10.469308   10.972607   4.81%   39,343
2006*
   10.000000   10.469308   4.69%   22,383
Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II - Q/NQ
2013
   11.865284   11.415393   -3.79%   13,951
2012
   11.447284   11.865284   3.65%   13,302
2011
   10.964216   11.447284   4.41%   18,599
2010
   10.475482   10.964216   4.67%   41,991
2009
   9.458857   10.475482   10.75%   47,991
2008
   10.627782   9.458857   -11.00%   24,305
2007
   10.451366   10.627782   1.69%   23,350
2006*
   10.000000   10.451366   4.51%   1,696
Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II - Q/NQ
2013
   12.208952   15.509504   27.03%   20,424
2012
   10.127105   12.208952   20.56%   25,864
2011
   11.307734   10.127105   -10.44%   25,155
2010
   10.288170   11.307734   9.91%   32,294
2009
   7.357433   10.288170   39.83%   36,352
2008
   12.142021   7.357433   -39.41%   43,007
2007
   10.752059   12.142021   12.93%   43,570
2006*
   10.000000   10.752059   7.52%   22,418
Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II - Q/NQ
2013
   10.919651   13.976162   27.99%   23,961
2012
   9.419098   10.919651   15.93%   28,485
2011
   10.007247   9.419098   -5.88%   34,357
2010
   8.573945   10.007247   16.72%   37,906
2009
   6.256195   8.573945   37.05%   40,958
2008
   11.356722   6.256195   -44.91%   40,561
2007
   10.278312   11.356722   10.49%   39,955
2006*
   10.000000   10.278312   2.78%   7,714
Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II - Q/NQ
2013
   9.469669   12.434315   31.31%   23,512
2012
   8.192020   9.469669   15.60%   27,806
2011
   8.485198   8.192020   -3.46%   31,730
2010
   7.742763   8.485198   9.59%   38,037
2009
   5.999507   7.742763   29.06%   56,798
2008
   9.809470   5.999507   -38.84%   61,030
2007*
   10.000000   9.809470   -1.91%   49,128
64

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I - Q/NQ
2013
   20.049030   21.198613   5.73%   10,623
2012
   17.723460   20.049030   13.12%   12,177
2011
   17.287312   17.723460   2.52%   13,822
2010
   15.470945   17.287312   11.74%   15,854
2009
   10.730712   15.470945   44.17%   17,311
2008
   15.090339   10.730712   -28.89%   26,170
2007
   14.817911   15.090339   1.84%   30,813
2006
   13.566462   14.817911   9.22%   40,429
2005
   13.418308   13.566462   1.10%   153,214
2004
   12.342012   13.418308   8.72%   209
Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I - Q/NQ
2013
   13.787567   18.467794   33.95%   21,377
2012
   11.786225   13.787567   16.98%   24,388
2011
   12.219243   11.786225   -3.54%   27,662
2010
   10.688060   12.219243   14.33%   31,424
2009
   8.419634   10.688060   26.94%   33,552
2008
   13.532052   8.419634   -37.78%   44,763
2007
   14.014970   13.532052   -3.45%   52,321
2006
   12.244340   14.014970   14.46%   64,219
2005
   11.893755   12.244340   2.95%   144,100
2004
   10.250526   11.893755   16.03%   651
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I - Q/NQ
2013
   8.931281   12.684429   42.02%   9,393
2012
   7.734260   8.931281   15.48%   13,950
2011
   8.861580   7.734260   -12.72%   15,849
2010
   7.762224   8.861580   14.16%   24,843
2009
   5.138900   7.762224   51.05%   27,578
2008*
   10.000000   5.138900   -48.61%   388
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I - Q/NQ
2013
   10.223501   14.009506   37.03%   0
2012
   9.285484   10.223501   10.10%   0
2011
   9.711597   9.285484   -4.39%   0
2010
   7.957915   9.711597   22.04%   0
2009
   6.126637   7.957915   29.89%   0
2008*
   10.000000   6.126637   -38.73%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
2013
   9.766700   12.487438   27.86%   0
2012
   8.515135   9.766700   14.70%   0
2011
   9.210181   8.515135   -7.55%   0
2010
   8.113295   9.210181   13.52%   0
2009
   6.359322   8.113295   27.58%   0
2008*
   10.000000   6.359322   -36.41%   0
65

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
2013
   10.919428   12.363447   13.22%   17,745
2012
   9.956667   10.919428   9.67%   19,138
2011
   10.219895   9.956667   -2.58%   20,601
2010
   9.373787   10.219895   9.03%   22,444
2009
   7.922177   9.373787   18.32%   24,285
2008*
   10.000000   7.922177   -20.78%   928
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
2013
   10.483128   12.551484   19.73%   0
2012
   9.341674   10.483128   12.22%   0
2011
   9.797479   9.341674   -4.65%   0
2010
   8.827775   9.797479   10.98%   16,826
2009
   7.199765   8.827775   22.61%   18,563
2008*
   10.000000   7.199765   -28.00%   20,360
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
2013
   11.353027   11.764140   3.62%   8,267
2012
   10.695079   11.353027   6.15%   8,933
2011
   10.679483   10.695079   0.15%   12,209
2010
   10.126015   10.679483   5.47%   10,363
2009
   9.072864   10.126015   11.61%   11,128
2008*
   10.000000   9.072864   -9.27%   3,576
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
2013
   10.712256   12.461811   16.33%   12,331
2012
   9.653974   10.712256   10.96%   13,941
2011
   10.009410   9.653974   -3.55%   15,608
2010
   9.101202   10.009410   9.98%   26,419
2009
   7.557700   9.101202   20.42%   28,880
2008*
   10.000000   7.557700   -24.42%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
2013
   10.185291   12.499753   22.72%   21,759
2012
   9.001558   10.185291   13.15%   23,052
2011
   9.561977   9.001558   -5.86%   24,417
2010
   8.545465   9.561977   11.90%   25,853
2009
   6.836576   8.545465   25.00%   27,370
2008*
   10.000000   6.836576   -31.63%   25,562
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
2013
   11.117335   12.212196   9.85%   2,656
2012
   10.230827   11.117335   8.67%   2,879
2011
   10.388154   10.230827   -1.51%   1,655
2010
   9.648048   10.388154   7.67%   1,785
2009
   8.302301   9.648048   16.21%   1,922
2008*
   10.000000   8.302301   -16.98%   892
66

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I - Q/NQ
2013
   12.544963   12.151350   -3.14%   0
2012
   11.789974   12.544963   6.40%   781
2011
   11.200187   11.789974   5.27%   0
2010
   10.594362   11.200187   5.72%   1,357
2009
   9.862143   10.594362   7.42%   1,741
2008*
   10.000000   9.862143   -1.38%   0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
2013
   13.389013   12.950768   -3.27%   956
2012
   12.657925   13.389013   5.78%   1,499
2011
   12.086780   12.657925   4.73%   1,718
2010
   11.321157   12.086780   6.76%   1,331
2009
   9.846106   11.321157   14.98%   1,807
2008*
   10.000000   9.846106   -1.54%   2,299
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I - Q/NQ
2013
   23.058241   22.939802   -0.51%   2,641
2012
   19.920861   23.058241   15.75%   2,929
2011
   25.987329   19.920861   -23.34%   3,132
2010
   22.651951   25.987329   14.72%   3,360
2009
   14.045719   22.651951   61.27%   4,268
2008
   33.675844   14.045719   -58.29%   4,524
2007
   23.426504   33.675844   43.75%   4,918
2006
   17.351085   23.426504   35.01%   5,247
2005
   13.246644   17.351085   30.98%   18,849
2004
   11.109704   13.246644   19.23%   0
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I - Q/NQ
2013
   17.218431   16.313625   -5.25%   53,420
2012
   16.919707   17.218431   1.77%   62,904
2011
   15.974347   16.919707   5.92%   71,218
2010
   15.438298   15.974347   3.47%   82,767
2009
   15.224418   15.438298   1.40%   93,362
2008
   14.312279   15.224418   6.37%   116,227
2007
   13.526164   14.312279   5.81%   127,314
2006
   13.254058   13.526164   2.05%   140,155
2005
   12.997203   13.254058   1.98%   364,157
2004
   12.745923   12.997203   1.97%   147
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I - Q/NQ
2013
   12.105864   14.086405   16.36%   785
2012
   10.604322   12.105864   14.16%   842
2011
   11.900361   10.604322   -10.89%   901
2010
   10.637128   11.900361   11.88%   963
2009
   8.303713   10.637128   28.10%   1,660
2008
   15.588521   8.303713   -46.73%   1,965
2007
   12.416347   15.588521   25.55%   2,281
2006
   9.455883   12.416347   31.31%   2,610
2005
   7.353676   9.455883   28.59%   4,108
2004
   6.521138   7.353676   12.77%   0
67

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II - Q/NQ
2013
   7.879131   9.147158   16.09%   7,039
2012
   6.924704   7.879131   13.78%   13,008
2011
   7.791317   6.924704   -11.12%   12,973
2010
   6.982004   7.791317   11.59%   7,153
2009
   5.461818   6.982004   27.83%   8,052
2008*
   10.000000   5.461818   -45.38%   5,501
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class VIII - Q/NQ
2013
   8.929890   10.671140   19.50%   0
2012
   7.649968   8.929890   16.73%   1,037
2011
   8.888768   7.649968   -13.94%   1,550
2010
   8.381156   8.888768   6.06%   1,854
2009
   6.599237   8.381156   27.00%   924
2008
   11.743033   6.599237   -43.80%   1,176
2007
   10.871766   11.743033   8.01%   239
2006*
   10.000000   10.871766   8.72%   3,597
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II - Q/NQ
2013
   14.963314   18.802482   25.66%   103,406
2012
   13.073974   14.963314   14.45%   111,290
2011
   13.780903   13.073974   -5.13%   119,620
2010
   12.174286   13.780903   13.20%   95,248
2009
   9.691703   12.174286   25.62%   101,473
2008
   15.540025   9.691703   -37.63%   122,867
2007
   14.852830   15.540025   4.63%   130,377
2006
   12.869465   14.852830   15.41%   135,285
2005
   12.074239   12.869465   6.59%   183,220
2004
   10.723013   12.074239   12.60%   0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II - Q/NQ
2013
   13.470237   15.087523   12.01%   0
2012
   12.470644   13.470237   8.02%   0
2011
   12.517421   12.470644   -0.37%   0
2010
   11.542944   12.517421   8.44%   0
2009*
   10.000000   11.542944   15.43%   0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II - Q/NQ
2013
   14.518698   17.132214   18.00%   0
2012
   13.098350   14.518698   10.84%   0
2011
   13.389091   13.098350   -2.17%   0
2010
   12.102502   13.389091   10.63%   0
2009*
   10.000000   12.102502   21.03%   0
68

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II - Q/NQ
2013
   13.435167   13.908266   3.52%   31,459
2012
   12.936126   13.435167   3.86%   34,138
2011
   12.726522   12.936126   1.65%   40,221
2010
   12.170443   12.726522   4.57%   46,284
2009
   11.298120   12.170443   7.72%   50,750
2008
   12.174397   11.298120   -7.20%   51,141
2007
   11.699753   12.174397   4.06%   53,673
2006
   11.159571   11.699753   4.84%   61,920
2005
   10.938716   11.159571   2.02%   271,630
2004
   10.584735   10.938716   3.34%   0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II - Q/NQ
2013
   14.595000   16.809029   15.17%   484,388
2012
   13.338062   14.595000   9.42%   525,990
2011
   13.512010   13.338062   -1.29%   576,336
2010
   12.336608   13.512010   9.53%   638,536
2009
   10.486186   12.336608   17.65%   706,094
2008
   13.826087   10.486186   -24.16%   754,269
2007
   13.252053   13.826087   4.33%   806,933
2006
   12.051166   13.252053   9.96%   812,446
2005
   11.584213   12.051166   4.03%   1,483,835
2004
   10.709575   11.584213   8.17%   24,602
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II - Q/NQ
2013
   15.002751   18.130547   20.85%   197,912
2012
   13.355371   15.002751   12.33%   215,304
2011
   13.817929   13.355371   -3.35%   236,158
2010
   12.401149   13.817929   11.42%   266,554
2009
   10.095565   12.401149   22.84%   298,099
2008
   14.901132   10.095565   -32.25%   327,193
2007
   14.216422   14.901132   4.82%   327,675
2006
   12.568358   14.216422   13.11%   310,101
2005
   11.886380   12.568358   5.74%   534,245
2004
   10.738253   11.886380   10.69%   8,590
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II - Q/NQ
2013
   14.300081   15.603383   9.11%   148,926
2012
   13.403862   14.300081   6.69%   159,460
2011
   13.298880   13.403862   0.79%   170,186
2010
   12.410250   13.298880   7.16%   183,263
2009
   10.969951   12.410250   13.13%   199,159
2008
   13.076032   10.969951   -16.11%   226,759
2007
   12.509474   13.076032   4.53%   242,029
2006
   11.683322   12.509474   7.07%   277,140
2005
   11.322864   11.683322   3.18%   595,122
2004
   10.700165   11.322864   5.82%   3,109
69

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Large Cap Growth Fund: Class I - Q/NQ
2013
   15.744370   21.254134   35.00%   131,401
2012
   13.433936   15.744370   17.20%   152,084
2011
   13.914433   13.433936   -3.45%   170,385
2010
   12.950830   13.914433   7.44%   205,481
2009*
   10.000000   12.950830   29.51%   0
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I - Q/NQ
2013
   31.020387   40.756306   31.39%   19,771
2012
   26.741414   31.020387   16.00%   22,625
2011
   27.786191   26.741414   -3.76%   26,180
2010
   22.295780   27.786191   24.63%   26,699
2009
   16.509748   22.295780   35.05%   29,766
2008
   26.314008   16.509748   -37.26%   35,674
2007
   24.775941   26.314008   6.21%   39,424
2006
   22.830881   24.775941   8.52%   47,037
2005
   20.623786   22.830881   10.70%   104,694
2004
   18.045837   20.623786   14.29%   243
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I - Q/NQ
2013
   11.526704   11.382626   -1.25%   129,221
2012
   11.673013   11.526704   -1.25%   96,950
2011
   11.820354   11.673013   -1.25%   118,026
2010
   11.969960   11.820354   -1.25%   118,477
2009
   12.116391   11.969960   -1.21%   115,182
2008
   12.022852   12.116391   0.78%   128,880
2007
   11.619013   12.022852   3.48%   128,825
2006
   11.255765   11.619013   3.23%   240,888
2005
   11.101653   11.255765   1.39%   1,953,289
2004
   11.151696   11.101653   -0.45%   589
Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I - Q/NQ
2013
   18.992008   18.543732   -2.36%   26,327
2012
   17.134094   18.992008   10.84%   29,345
2011
   16.438470   17.134094   4.23%   33,459
2010
   15.052787   16.438470   9.21%   37,406
2009
   12.255431   15.052787   22.83%   39,325
2008
   15.005176   12.255431   -18.33%   52,562
2007
   14.524404   15.005176   3.31%   58,884
2006
   14.029010   14.524404   3.53%   57,500
2005
   13.903003   14.029010   0.91%   131,498
2004
   13.215501   13.903003   5.20%   0
70

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class II - Q/NQ
2013
   11.791405   14.095089   19.54%   0
2012
   10.201786   11.791405   15.58%   179
2011
   12.359319   10.201786   -17.46%   195
2010
   11.818994   12.359319   4.57%   212
2009
   9.241535   11.818994   27.89%   230
2008
   17.486107   9.241535   -47.15%   249
2007
   17.241681   17.486107   1.42%   269
2006
   14.263887   17.241681   20.88%   290
2005
   12.921038   14.263887   10.39%   352
2004
   10.919858   12.921038   18.33%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I - Q/NQ
2013
   10.163854   13.523743   33.06%   25,104
2012
   8.846061   10.163854   14.90%   29,303
2011
   9.225932   8.846061   -4.12%   33,053
2010
   8.088157   9.225932   14.07%   38,400
2009
   6.311220   8.088157   28.16%   12,876
2008*
   10.000000   6.311220   -36.89%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I - Q/NQ
2013
   11.280967   15.087889   33.75%   1,769
2012
   9.697033   11.280967   16.33%   1,970
2011
   10.427486   9.697033   -7.01%   2,182
2010*
   10.000000   10.427486   4.27%   2,424
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
2013
   9.496486   12.662622   33.34%   19,068
2012
   8.178285   9.496486   16.12%   20,852
2011
   8.818891   8.178285   -7.26%   14,962
2010
   7.920878   8.818891   11.34%   16,816
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I - Q/NQ
2013
   10.505185   14.414054   37.21%   49,835
2012
   9.258570   10.505185   13.46%   56,317
2011
   9.789588   9.258570   -5.42%   63,872
2010
   7.816992   9.789588   25.23%   71,927
2009
   6.227072   7.816992   25.53%   78,824
2008*
   10.000000   6.227072   -37.73%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
2013
   11.303532   15.144711   33.98%   12,042
2012
   9.838731   11.303532   14.89%   13,368
2011
   10.199792   9.838731   -3.54%   14,600
2010
   8.633805   10.199792   18.14%   16,613
2009
   6.701262   8.633805   28.84%   18,359
2008*
   10.000000   6.701262   -32.99%   0
71

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I - Q/NQ
2013
   15.496411   22.080401   42.49%   5,839
2012
   13.834035   15.496411   12.02%   6,190
2011
   14.100206   13.834035   -1.89%   8,383
2010
   11.382047   14.100206   23.88%   9,572
2009
   9.042865   11.382047   25.87%   11,305
2008
   17.091260   9.042865   -47.09%   13,392
2007
   15.771065   17.091260   8.37%   10,636
2006
   15.473935   15.771065   1.92%   11,116
2005
   14.496373   15.473935   6.74%   22,480
2004
   12.943374   14.496373   12.00%   345
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I - Q/NQ
2013
   35.981005   49.886320   38.65%   15,932
2012
   30.252307   35.981005   18.94%   16,164
2011
   32.270762   30.252307   -6.25%   18,534
2010
   25.811790   32.270762   25.02%   20,596
2009
   20.709509   25.811790   24.64%   23,203
2008
   30.910484   20.709509   -33.00%   26,148
2007
   33.621951   30.910484   -8.06%   28,877
2006
   29.026603   33.621951   15.83%   32,799
2005
   28.516666   29.026603   1.79%   85,809
2004
   24.618843   28.516666   15.83%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I - Q/NQ
2013
   29.920035   41.632625   39.15%   17,221
2012
   26.232865   29.920035   14.06%   20,240
2011
   28.127878   26.232865   -6.74%   23,356
2010
   22.728813   28.127878   23.75%   26,546
2009
   17.086989   22.728813   33.02%   29,642
2008
   27.994447   17.086989   -38.96%   36,293
2007
   27.758912   27.994447   0.85%   44,367
2006
   25.089017   27.758912   10.64%   44,903
2005
   22.619557   25.089017   10.92%   108,927
2004
   19.244942   22.619557   17.54%   126
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I - Q/NQ
2013
   13.582138   17.583937   29.46%   36,226
2012
   12.042666   13.582138   12.78%   44,147
2011
   12.130640   12.042666   -0.73%   49,637
2010
   10.827787   12.130640   12.03%   57,454
2009
   8.695593   10.827787   24.52%   62,682
2008
   15.066968   8.695593   -42.29%   70,973
2007
   14.104765   15.066968   6.82%   78,943
2006
   12.569807   14.104765   12.21%   90,632
2005
   11.846853   12.569807   6.10%   161,192
2004
   10.930890   11.846853   8.38%   0
72

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I - Q/NQ
2013
   11.183243   11.379761   1.76%   61,254
2012
   9.781032   11.183243   14.34%   69,245
2011
   9.299999   9.781032   5.17%   72,352
2010
   7.234189   9.299999   28.56%   76,481
2009
   5.599255   7.234189   29.20%   86,657
2008*
   10.000000   5.599255   -44.01%   674
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
2013
   10.786788   10.663192   -1.15%   4,227
2012
   10.551870   10.786788   2.23%   5,128
2011
   10.548150   10.551870   0.04%   5,969
2010
   10.429293   10.548150   1.14%   6,828
2009
   9.860285   10.429293   5.77%   6,704
2008*
   10.000000   9.860285   -1.40%   0
Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class I - Q/NQ
2013
   13.859670   16.436669   18.59%   0
2012
   11.738872   13.859670   18.07%   0
2011
   13.574005   11.738872   -13.52%   0
2010
   12.925473   13.574005   5.02%   0
2009*
   10.000000   12.925473   28.38%   0
Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class - Q/NQ
2013
   10.817032   10.747713   -0.64%   26,737
2012
   10.472043   10.817032   3.29%   35,698
2011
   10.573700   10.472043   -0.96%   28,235
2010
   10.170049   10.573700   3.97%   20,383
2009
   9.087672   10.170049   11.91%   24,007
2008
   10.630241   9.087672   -14.51%   22,440
2007
   10.275244   10.630241   3.45%   27,135
2006
   9.985363   10.275244   2.90%   28,599
2005
   9.967544   9.985363   0.18%   104,466
2004
   10.015684   9.967544   -0.48%   0
Neuberger Berman Advisers Management Trust - AMT Small Cap Growth Portfolio: S Class - Q/NQ
2013
   10.912964   15.716044   44.01%   2,078
2012
   10.155577   10.912964   7.46%   2,249
2011
   10.394092   10.155577   -2.29%   2,551
2010
   8.799827   10.394092   18.12%   3,022
2009
   7.259416   8.799827   21.22%   3,382
2008
   12.145853   7.259416   -40.23%   3,884
2007
   12.237442   12.145853   -0.75%   4,471
2006
   11.773573   12.237442   3.94%   5,320
2005
   11.586478   11.773573   1.61%   15,515
2004
   10.487525   11.286478   7.62%   969
73

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class - Q/NQ
2013
   14.678284   19.945418   35.88%   804
2012
   13.393928   14.678284   9.59%   930
2011
   13.994219   13.393928   -4.29%   1,064
2010
   11.534933   13.994219   21.32%   1,208
2009
   8.887810   11.534933   29.78%   1,574
2008
   14.862813   8.887810   -40.20%   1,977
2007
   13.987076   14.862813   6.26%   3,218
2006
   12.456727   13.987076   12.29%   2,897
2005
   11.804504   12.456727   5.53%   5,481
2004
   10.552559   11.804504   11.86%   0
Oppenheimer Variable Account Funds - Oppenheimer Discovery Mid Cap Growth Fund/VA: Non-Service Shares - Q/NQ
2013
   16.477598   22.126981   34.29%   2,616
2012
   14.329813   16.477598   14.99%   2,821
2011
   14.353550   14.329813   -0.17%   3,031
2010
   11.403177   14.353550   25.87%   3,258
2009
   8.708048   11.403177   30.95%   3,869
2008
   17.313969   8.708048   -49.71%   4,652
2007
   16.490117   17.313969   5.00%   4,989
2006
   16.218926   16.490117   1.67%   5,348
2005
   14.621223   16.218926   10.93%   18,926
2004
   12.361526   14.621223   18.28%   0
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares - Q/NQ
2013
   14.732589   18.521236   25.72%   36,566
2012
   12.303213   14.732589   19.75%   40,101
2011
   13.584878   12.303213   -9.43%   47,880
2010
   11.862818   13.584878   14.52%   52,971
2009
   8.594707   11.862818   38.02%   59,502
2008
   14.551844   8.594707   -40.94%   68,121
2007
   13.861145   14.551844   4.98%   77,186
2006
   11.926147   13.861145   16.22%   88,163
2005
   10.565033   11.926147   12.88%   231,602
2004
   8.978200   10.565033   17.67%   0
Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income Fund/VA: Service Shares - Q/NQ
2013
   10.152703   9.989009   -1.61%   1,860
2012*
   10.000000   10.152703   1.53%   2,263
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares - Q/NQ
2013
   15.600062   20.299880   30.13%   27,602
2012
   13.517400   15.600062   15.41%   37,912
2011
   13.690128   13.517400   -1.26%   41,803
2010
   11.940024   13.690128   14.66%   53,857
2009
   9.425201   11.940024   26.68%   60,330
2008
   15.512276   9.425201   -39.24%   71,494
2007
   15.044165   15.512276   3.11%   82,806
2006
   13.244102   15.044165   13.59%   95,594
2005
   12.654982   13.244102   4.66%   232,726
2004
   11.707682   12.654982   8.09%   0
74

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Service Shares - Q/NQ
2013
   16.314986   22.655996   38.87%   7,697
2012
   14.040925   16.314986   16.20%   10,229
2011
   14.565384   14.040925   -3.60%   11,138
2010
   11.986096   14.565384   21.52%   13,564
2009
   8.867308   11.986096   35.17%   14,582
2008
   14.484337   8.867308   -38.78%   15,897
2007
   14.875772   14.484337   -2.63%   13,112
2006
   13.137799   14.875772   13.23%   14,220
2005
   12.125632   13.137799   8.35%   31,409
2004
   10.302989   12.125632   17.69%   0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
2013
   13.066955   12.056240   -7.73%   753
2012
   12.574831   13.066955   3.91%   814
2011
   11.745076   12.574831   7.06%   1,772
2010
   10.874552   11.745076   8.01%   946
2009*
   10.000000   10.874552   8.75%   0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
2013
   11.851685   11.676359   -1.48%   2,798
2012
   11.349481   11.851685   4.42%   17,645
2011
   11.378072   11.349481   -0.25%   18,039
2010
   10.954048   11.378072   3.87%   2,090
2009*
   10.000000   10.954048   9.54%   1,922
Putnam Variable Trust - Putnam VT Growth & Income Fund: Class IB - Q/NQ
2013
   12.532144   16.790817   33.98%   808
2012
   10.652543   12.532144   17.64%   877
2011
   11.312147   10.652543   -5.83%   950
2010
   10.015281   11.312147   12.95%   1,028
2009
   7.812876   10.015281   28.19%   1,111
2008
   12.906250   7.812876   -39.46%   1,634
2007
   13.910568   12.906250   -7.22%   2,177
2006
   12.152566   13.910568   14.47%   2,742
2005
   11.694543   12.152566   3.92%   7,051
2004
   10.658246   11.694543   9.72%   0
Putnam Variable Trust - Putnam VT International Equity Fund: Class IB - Q/NQ
2013
   13.687730   17.310928   26.47%   0
2012
   11.369608   13.687730   20.39%   0
2011
   13.860478   11.369608   -17.97%   0
2010
   12.756827   13.860478   8.65%   0
2009
   10.365012   12.756827   23.08%   0
75

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Putnam Variable Trust - Putnam VT Voyager Fund: Class IB - Q/NQ
2013
   13.103478   18.597723   41.93%   0
2012
   11.616871   13.103478   12.80%   0
2011
   14.319526   11.616871   -18.87%   0
2010
   12.004044   14.319526   19.29%   0
2009
   7.416851   12.004044   61.85%   0
2008
   11.928081   7.416851   -37.82%   0
2007
   11.447914   11.928081   4.19%   0
2006
   10.994804   11.447914   4.12%   0
2005
   10.533905   10.994804   4.38%   0
2004
   10.156107   10.533905   3.72%   0
T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II - Q/NQ
2013
   14.874074   22.107656   48.63%   4,489
2012
   11.498337   14.874074   29.36%   3,668
2011
   10.548103   11.498337   9.01%   3,222
2010
   9.446802   10.548103   11.66%   0
The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class II - Q/NQ
2013
   12.842387   12.608286   -1.82%   1,598
2012
   11.910410   12.842387   7.82%   1,953
2011
   11.442482   11.910410   4.09%   3,151
2010
   10.843603   11.442482   5.52%   3,631
2009
   10.039135   10.843603   8.01%   4,139
2008
   11.353261   10.039135   -11.57%   4,346
2007
   10.927517   11.353261   3.90%   4,276
2006
   10.684974   10.927517   2.27%   3,368
2005
   10.410321   10.684974   2.64%   11,760
2004
   10.129517   10.410321   2.77%   0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I - Q/NQ
2013
   47.381061   42.694833   -9.89%   2,445
2012
   40.676240   47.381061   16.48%   2,680
2011
   38.483287   40.676240   5.70%   2,920
2010
   35.509855   38.483287   8.37%   3,330
2009
   27.616445   35.509855   28.58%   3,696
2008
   32.892265   27.616445   -16.04%   4,443
2007
   31.268369   32.892265   5.19%   4,969
2006
   28.574908   31.268369   9.43%   5,973
2005
   25.777598   28.574908   10.85%   16,173
2004
   23.717411   25.777598   8.69%   0
76

Additional Contract Options Elected Total - 1.25%
Variable account charges of the daily net assets of the variable account - 1.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Van Eck VIP Trust - Van Eck VIP Emerging Markets Fund: Initial Class - Q/NQ
2013
   50.853950   56.254685   10.62%   457
2012
   39.673191   50.853950   28.18%   560
2011
   54.098716   39.673191   -26.67%   604
2010
   43.190476   54.098716   25.26%   640
2009
   20.516561   43.190476   110.52%   678
2008
   58.991911   20.516561   -65.22%   1,754
2007
   43.412632   58.991911   35.89%   2,318
2006
   31.514704   43.412632   37.75%   2,980
2005
   24.176597   31.514704   30.35%   11,367
2004
   19.447415   24.176597   24.32%   0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
2013
   48.668394   53.122674   9.15%   273
2012
   47.671725   48.668394   2.09%   346
2011
   57.779398   47.671725   -17.49%   380
2010
   45.274087   57.779398   27.62%   417
2009
   29.102885   45.274087   55.57%   456
2008
   54.704654   29.102885   -46.80%   525
2007
   38.113622   54.704654   43.53%   571
2006
   31.001698   38.113622   22.94%   621
2005
   20.697822   31.001698   49.78%   1,637
2004
   16.905954   20.697822   22.43%   0
Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2 - Q/NQ
2013
   16.447217   24.400000   48.35%   6,176
2012
   15.440558   16.447217   6.52%   6,115
2011
   16.388970   15.440558   -5.79%   6,789
2010
   13.091373   16.388970   25.19%   7,853
2009*
   10.000000   13.091373   30.91%   0
77

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Growth and Income Portfolio: Class B - Q/NQ
2013
   11.783765   15.503429   31.57%   0
2012
   10.282455   11.783765   14.60%   0
2011
   9.916659   10.282455   3.69%   0
2010
   8.993683   9.916659   10.26%   0
2009
   7.645037   8.993683   17.64%   0
2008
   13.188316   7.645037   -42.03%   0
2007
   12.868119   13.188316   2.49%   0
2006
   11.252332   12.868119   14.36%   0
2005
   11.680790   11.252332   -3.67%   0
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class B - Q/NQ
2013
   17.049594   22.938552   34.54%   26,354
2012
   14.723614   17.049594   15.80%   33,578
2011
   16.483132   14.723614   -10.67%   39,212
2010
   13.320343   16.483132   23.74%   41,509
2009
   9.552223   13.320343   39.45%   34,318
2008
   15.209622   9.552223   -37.20%   2,524
2007
   15.327536   15.209622   -0.77%   0
2006
   13.729511   15.327536   11.64%   0
2005
   12.435531   13.729511   10.41%   0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
2013
   13.549305   12.121345   -10.54%   56,764
2012
   12.908526   13.549305   4.96%   72,791
2011
   11.816879   12.908526   9.24%   76,168
2010
   11.500113   11.816879   2.75%   85,408
2009
   10.674445   11.500113   7.73%   77,092
2008
   11.096433   10.674445   -3.80%   43,603
2007
   10.368826   11.096433   7.02%   41,506
2006
   10.441102   10.368826   -0.69%   33,771
2005
   10.545772   10.441102   -0.99%   41,544
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class I - Q/NQ
2013
   9.432069   12.522711   32.77%   0
2012
   8.409701   9.432069   12.16%   0
2011
   8.343210   8.409701   0.80%   0
2010
   7.477302   8.343210   11.58%   0
2009
   6.477256   7.477302   15.44%   0
2008
   10.130404   6.477256   -36.06%   0
2007
   10.371892   10.130404   -2.33%   0
2006
   9.061513   10.371892   14.46%   0
2005
   9.001893   9.061513   0.66%   0
78

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class II - Q/NQ
2013
   14.968686   19.007056   26.98%   9,495
2012
   13.175924   14.968686   13.61%   12,390
2011
   13.593186   13.175924   -3.07%   17,649
2010
   11.687865   13.593186   16.30%   19,439
2009
   9.211612   11.687865   26.88%   16,013
2008
   12.483546   9.211612   -26.21%   10,727
2007
   13.090018   12.483546   -4.63%   7,688
2006
   11.137716   13.090018   17.53%   3,891
2005
   10.775888   11.137716   3.36%   1,028
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
2013
   13.029722   14.572708   11.84%   0
2012
   12.122153   13.029722   7.49%   0
2011
   12.869051   12.122153   -5.80%   0
2010
   11.994330   12.869051   7.29%   0
2009*
   10.000000   11.994330   19.94%   0
Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares - Q/NQ
2013
   15.588913   21.442684   37.55%   0
2012
   13.779417   15.588913   13.13%   0
2011
   14.017079   13.779417   -1.70%   0
2010
   11.396127   14.017079   23.00%   0
2009
   9.324820   11.396127   22.21%   0
2008
   13.808682   9.324820   -32.47%   0
2007
   14.221505   13.808682   -2.90%   0
2006
   12.715512   14.221505   11.84%   0
2005
   12.300357   12.715512   3.38%   0
Dreyfus Socially Responsible Growth Fund, Inc. (The): Initial Shares - Q/NQ
2013
   6.850509   8.996288   31.32%   0
2012
   6.259052   6.850509   9.45%   0
2011
   6.345630   6.259052   -1.36%   0
2010
   5.653903   6.345630   12.23%   0
2009
   4.324325   5.653903   30.75%   0
2008
   6.746523   4.324325   -35.90%   0
2007
   6.404072   6.746523   5.35%   0
2006
   5.999106   6.404072   6.75%   0
2005
   5.874922   5.999106   2.11%   0
Dreyfus Stock Index Fund, Inc.: Initial Shares - Q/NQ
2013
   9.125191   11.776854   29.06%   59,154
2012
   8.066253   9.125191   13.13%   65,567
2011
   8.099441   8.066253   -0.41%   70,409
2010
   7.215119   8.099441   12.26%   87,315
2009
   5.842587   7.215119   23.49%   91,345
2008
   9.509256   5.842587   -38.56%   46,105
2007
   9.243565   9.509256   2.87%   45,883
2006
   8.186900   9.243565   12.91%   36,732
2005
   8.009176   8.186900   2.22%   99,761
79

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Dreyfus Variable Investment Fund - Appreciation Portfolio: Initial Shares - Q/NQ
2013
   11.140524   13.188128   18.38%   8,976
2012
   10.321021   11.140524   7.94%   9,980
2011
   9.685194   10.321021   6.56%   11,015
2010
   8.591886   9.685194   12.72%   12,080
2009
   7.171759   8.591886   19.80%   4,262
2008
   10.414758   7.171759   -31.14%   131
2007
   9.946363   10.414758   4.71%   146
2006
   8.735295   9.946363   13.86%   163
2005
   8.787858   8.735295   -0.60%   598
Dreyfus Variable Investment Fund - Opportunistic Small Cap Portfolio: Service Shares - Q/NQ
2013
   9.209685   13.343603   44.89%   0
2012
   7.836158   9.209685   17.53%   0
2011
   9.327610   7.836158   -15.99%   0
2010
   7.294246   9.327610   27.88%   0
2009
   5.933484   7.294246   22.93%   0
2008
   9.754979   5.933484   -39.17%   0
2007
   11.249822   9.754979   -13.29%   0
2006
   11.116686   11.249822   1.20%   0
2005
   10.673921   11.116686   4.15%   0
Federated Insurance Series - Federated Managed Tail Risk Fund II: Service Shares - Q/NQ
2013
   10.336114   11.731694   13.50%   0
2012
   9.610931   10.336114   7.55%   0
2011
   10.404900   9.610931   -7.63%   0
2010
   9.419008   10.404900   10.47%   0
2009
   8.507277   9.419008   10.72%   0
2008
   12.374616   8.507277   -31.25%   0
2007
   11.547634   12.374616   7.16%   0
2006
   10.202498   11.547634   13.18%   0
2005
   10.151968   10.202498   0.50%   0
Federated Insurance Series - Federated Quality Bond Fund II: Primary Shares - Q/NQ
2013
   16.020079   15.821691   -1.24%   3,763
2012
   14.937513   16.020079   7.25%   4,125
2011
   14.940862   14.937513   -0.02%   4,505
2010
   14.086697   14.940862   6.06%   4,900
2009
   11.965619   14.086697   17.73%   5,313
2008
   13.203298   11.965619   -9.37%   7,403
2007
   12.818721   13.203298   3.00%   7,444
2006
   12.589947   12.818721   1.82%   10,986
2005
   12.677091   12.589947   -0.69%   3,204
80

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2010 Portfolio: Service Class 2 - Q/NQ
2013
   12.496093   13.826916   10.65%   3,182
2012
   11.457282   12.496093   9.07%   3,511
2011
   11.770734   11.457282   -2.66%   3,849
2010
   10.699212   11.770734   10.01%   4,198
2009
   8.830182   10.699212   21.17%   495
2008
   12.071974   8.830182   -26.85%   0
2007
   11.391876   12.071974   5.97%   0
2006
   10.634532   11.391876   7.12%   0
2005
   10.290160   10.634532   3.35%   0
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2020 Portfolio: Service Class 2 - Q/NQ
2013
   12.636579   14.283608   13.03%   6,351
2012
   11.433657   12.636579   10.52%   6,840
2011
   11.843328   11.433657   -3.46%   7,346
2010
   10.597275   11.843328   11.76%   8,091
2009
   8.433561   10.597275   25.66%   8,630
2008
   12.839348   8.433561   -34.31%   2,688
2007
   11.945798   12.839348   7.48%   2,176
2006
   10.939506   11.945798   9.20%   1,536
2005
   10.397420   10.939506   5.19%   0
Fidelity Variable Insurance Products Fund - Fidelity VIP Freedom Fund 2030 Portfolio: Service Class 2 - Q/NQ
2013
   12.541764   14.884300   18.68%   6,627
2012
   11.139882   12.541764   12.58%   7,136
2011
   11.727594   11.139882   -5.01%   8,519
2010
   10.352302   11.727594   13.28%   8,921
2009
   8.073400   10.352302   28.23%   9,589
2008
   13.358960   8.073400   -39.57%   10,272
2007
   12.304728   13.358960   8.57%   17,052
2006
   11.146499   12.304728   10.39%   9,648
2005
   10.469974   11.146499   6.46%   7,844
Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2 - Q/NQ
2013
   15.346435   18.623387   21.35%   0
2012
   14.990822   15.346435   2.37%   0
2011
   16.176362   14.990822   -7.33%   0
2010
   13.887891   16.176362   16.48%   0
2009
   9.627506   13.887891   44.25%   0
2008
   21.602731   9.627506   -55.43%   0
2007
   15.175959   21.602731   42.35%   0
2006
   13.312384   15.175959   14.00%   0
2005
   11.117828   13.312384   19.74%   0
81

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class - Q/NQ
2013
   12.463509   15.595993   25.13%   48,001
2012
   10.880856   12.463509   14.55%   54,438
2011
   11.036037   10.880856   -1.41%   58,202
2010
   9.809757   11.036037   12.50%   62,636
2009
   7.717828   9.809757   27.11%   67,561
2008
   13.781135   7.717828   -44.00%   31,515
2007
   13.903021   13.781135   -0.88%   32,057
2006
   11.843841   13.903021   17.39%   32,630
2005
   11.394408   11.843841   3.94%   3,437
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class - Q/NQ
2013
   7.065251   9.406737   33.14%   16,921
2012
   6.310368   7.065251   11.96%   19,454
2011
   6.446216   6.310368   -2.11%   20,731
2010
   5.315668   6.446216   21.27%   22,165
2009
   4.243553   5.315668   25.26%   25,582
2008
   8.227831   4.243553   -48.42%   9,369
2007
   6.635254   8.227831   24.00%   7,544
2006
   6.359482   6.635254   4.34%   342
2005
   6.080836   6.359482   4.58%   1,447
Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class - Q/NQ
2013
   12.654432   13.096312   3.49%   0
2012
   11.336989   12.654432   11.62%   0
2011
   11.159193   11.336989   1.59%   0
2010
   10.032637   11.159193   11.23%   0
2009
   7.138508   10.032637   40.54%   0
2008
   9.745511   7.138508   -26.75%   0
2007
   9.713021   9.745511   0.33%   0
2006
   8.936966   9.713021   8.68%   0
2005
   8.738076   8.936966   2.28%   0
Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class - Q/NQ
2013
   12.956551   12.425685   -4.10%   72,812
2012
   12.532532   12.956551   3.38%   79,999
2011
   11.958169   12.532532   4.80%   88,143
2010
   11.360925   11.958169   5.26%   95,645
2009
   10.047525   11.360925   13.07%   79,394
2008
   10.634552   10.047525   -5.52%   60,660
2007
   10.440933   10.634552   1.85%   62,095
2006
   10.240260   10.440933   1.96%   63,160
2005
   10.317124   10.240260   -0.75%   28,165
82

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2 - Q/NQ
2013
   19.842665   26.353910   32.81%   33,355
2012
   17.719969   19.842665   11.98%   37,668
2011
   20.333989   17.719969   -12.86%   41,311
2010
   16.178971   20.333989   25.68%   47,626
2009
   11.843312   16.178971   36.61%   42,739
2008
   20.062596   11.843312   -40.97%   41,758
2007
   17.797120   20.062596   12.73%   43,211
2006
   16.196762   17.797120   9.88%   35,781
2005
   14.385817   16.196762   12.59%   25,725
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class - Q/NQ
2013
   8.453465   10.773535   27.45%   0
2012
   7.174681   8.453465   17.82%   0
2011
   8.867342   7.174681   -19.09%   0
2010
   8.028179   8.867342   10.45%   0
2009
   6.495676   8.028179   23.59%   0
2008
   11.838503   6.495676   -45.13%   0
2007
   10.334267   11.838503   14.56%   0
2006
   8.962888   10.334267   15.30%   0
2005
   7.662464   8.962888   16.97%   0
Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class R - Q/NQ
2013
   13.091062   16.674371   27.37%   0
2012
   11.098887   13.091062   17.95%   0
2011
   13.729672   11.098887   -19.16%   0
2010
   12.428459   13.729672   10.47%   0
2009
   10.051829   12.428459   23.64%   0
2008
   18.323911   10.051829   -45.14%   0
2007
   15.993091   18.323911   14.57%   0
2006
   13.870439   15.993091   15.30%   0
2005
   11.862700   13.870439   16.92%   0
Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class - Q/NQ
2013
   15.010058   19.139589   27.51%   1,229
2012
   12.081950   15.010058   24.24%   1,874
2011
   13.559393   12.081950   -10.90%   2,252
2010
   10.969289   13.559393   23.61%   2,791
2009
   7.129621   10.969289   53.86%   3,346
2008
   14.939812   7.129621   -52.28%   4,137
2007
   14.475045   14.939812   3.21%   4,638
2006
   12.743211   14.475045   13.59%   5,157
2005
   12.539712   12.743211   1.62%   5,242
Franklin Templeton Variable Insurance Products Trust - Franklin Founding Funds Allocation VIP Fund: Class 2 - Q/NQ
2013
   9.760501   11.808948   20.99%   0
2012
   8.658146   9.760501   12.73%   0
2011
   8.995750   8.658146   -3.75%   0
2010
   8.346794   8.995750   7.77%   0
2009
   6.555682   8.346794   27.32%   0
2008*
   10.000000   6.555682   -34.44%   0
83

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Franklin Templeton Variable Insurance Products Trust - Franklin Income VIP Fund: Class 2 - Q/NQ
2013
   12.394472   13.804741   11.38%   23,004
2012
   11.256241   12.394472   10.11%   26,823
2011
   11.246606   11.256241   0.09%   29,260
2010
   10.211260   11.246606   10.14%   34,815
2009
   7.703927   10.211260   32.55%   30,476
2008
   11.204194   7.703927   -31.24%   22,307
2007
   11.048415   11.204194   1.41%   22,237
2006*
   10.000000   11.048415   10.48%   10,080
Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends VIP Fund: Class 2 - Q/NQ
2013
   12.706858   16.108800   26.77%   10,248
2012
   11.611141   12.706858   9.44%   11,782
2011
   11.205596   11.611141   3.62%   14,488
2010
   9.501757   11.205596   17.93%   16,108
2009
   8.283744   9.501757   14.70%   18,160
2008
   11.625107   8.283744   -28.74%   21,472
2007
   12.222720   11.625107   -4.89%   26,201
2006
   10.675301   12.222720   14.50%   33,756
2005
   10.394611   10.675301   2.70%   30,803
Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value VIP Fund: Class 2 - Q/NQ
2013
   13.593737   18.103408   33.17%   0
2012
   11.747255   13.593737   15.72%   0
2011
   12.486678   11.747255   -5.92%   0
2010
   9.962231   12.486678   25.34%   0
2009
   7.890917   9.962231   26.25%   0
2008
   12.052206   7.890917   -34.53%   0
2007
   12.631858   12.052206   -4.59%   0
2006
   11.046037   12.631858   14.36%   0
2005
   10.602359   11.046037   4.18%   0
Franklin Templeton Variable Insurance Products Trust - Templeton Foreign VIP Fund: Class 2 - Q/NQ
2013
   12.332724   14.824586   20.21%   0
2012
   10.671512   12.332724   15.57%   0
2011
   12.215949   10.671512   -12.64%   0
2010
   11.527799   12.215949   5.97%   0
2009
   8.605442   11.527799   33.96%   0
2008
   14.766218   8.605442   -41.72%   0
2007
   13.085284   14.766218   12.85%   0
2006
   11.021895   13.085284   18.72%   0
2005
   10.157275   11.021895   8.51%   0
Invesco - Invesco V.I. American Franchise Fund: Series II Shares - Q/NQ
2013
   10.762399   14.706995   36.65%   700
2012
   11.230958   10.762399   -4.17%   857
Invesco - Invesco V.I. Mid Cap Growth Fund: Series II Shares - Q/NQ
2013
   9.676761   12.921521   33.53%   709
2012*
   10.000000   9.676761   -3.23%   1,216
84

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Ivy Funds Variable Insurance Portfolios - Asset Strategy - Q/NQ
2013
   21.820188   26.689945   22.32%   0
2012
   18.731568   21.820188   16.49%   0
2011
   20.650009   18.731568   -9.29%   0
2010
   19.438614   20.650009   6.23%   0
2009
   16.304804   19.438614   19.22%   0
Janus Aspen Series - Balanced Portfolio: Service Shares - Q/NQ
2013
   14.811902   17.345921   17.11%   0
2012
   13.365944   14.811902   10.82%   0
2011
   13.490132   13.365944   -0.92%   0
2010
   12.764091   13.490132   5.69%   0
2009
   10.397776   12.764091   22.76%   0
2008
   12.672454   10.397776   -17.95%   0
2007
   11.756284   12.672454   7.79%   0
2006
   10.891752   11.756284   7.94%   0
2005
   10.468329   10.891752   4.04%   0
Janus Aspen Series - Forty Portfolio: Service Shares - Q/NQ
2013
   9.579968   12.256846   27.94%   32,689
2012
   7.913008   9.579968   21.07%   37,232
2011
   8.698640   7.913008   -9.03%   40,302
2010
   8.357247   8.698640   4.08%   45,512
2009
   5.855251   8.357247   42.73%   29,373
2008
   10.756603   5.855251   -45.57%   13,016
2007
   8.054624   10.756603   33.55%   2,484
2006
   7.551143   8.054624   6.67%   0
2005
   7.253447   7.551143   4.10%   0
Janus Aspen Series - Global Technology Portfolio: Service Shares - Q/NQ
2013
   4.659576   6.166785   32.35%   0
2012
   4.000927   4.659576   16.46%   0
2011
   4.480795   4.000927   -10.71%   0
2010
   3.684847   4.480795   21.60%   0
2009
   2.402631   3.684847   53.37%   0
2008
   4.387219   2.402631   -45.24%   0
2007
   3.688412   4.387219   18.95%   0
2006
   3.499173   3.688412   5.41%   0
2005
   3.112792   3.499173   12.41%   0
Janus Aspen Series - Overseas Portfolio: Service Shares - Q/NQ
2013
   11.349489   12.678606   11.71%   0
2012
   10.259168   11.349489   10.63%   0
2011
   15.511202   10.259168   -33.86%   0
2010
   12.692466   15.511202   22.21%   0
2009
   7.251003   12.692466   75.04%   0
2008
   15.529146   7.251003   -53.31%   0
2007
   12.410984   15.529146   25.12%   0
2006
   8.658372   12.410984   43.34%   0
2005
   6.854996   8.658372   26.31%   0
85

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
MFS® Variable Insurance Trust - MFS Investors Growth Stock Series: Service Class - Q/NQ
2013
   12.838603   16.321645   27.13%   141
2012
   11.256797   12.838603   14.05%   161
2011
   11.472905   11.256797   -1.88%   183
2010
   10.465111   11.472905   9.63%   207
2009
   7.696834   10.465111   35.97%   234
2008
   12.495010   7.696834   -38.40%   262
2007
   11.514701   12.495010   8.51%   292
2006
   10.977206   11.514701   4.90%   619
2005
   10.597673   10.977206   3.58%   1,680
MFS® Variable Insurance Trust - MFS Value Series: Service Class - Q/NQ
2013
   13.762809   18.242159   32.55%   18,884
2012
   12.150524   13.762809   13.27%   20,709
2011
   12.487881   12.150524   -2.70%   26,029
2010
   11.486745   12.487881   8.72%   28,652
2009
   9.596586   11.486745   19.70%   18,017
2008
   14.597459   9.596586   -34.26%   11,176
2007
   13.881187   14.597459   5.16%   9,678
2006
   11.783442   13.881187   17.80%   10,279
2005
   11.583355   11.783442   1.73%   4,127
Nationwide Variable Insurance Trust - American Century NVIT Growth Fund: Class I - Q/NQ
2013
   6.137477   7.783693   26.82%   0
2012
   5.506896   6.137477   11.45%   0
2011
   5.672554   5.506896   -2.92%   0
2010
   4.866360   5.672554   16.57%   0
2009
   3.729893   4.866360   30.47%   0
2008
   6.225656   3.729893   -40.09%   0
2007
   5.328316   6.225656   16.84%   0
2006
   5.133976   5.328316   3.79%   0
2005
   4.994482   5.133976   2.79%   0
Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class I - Q/NQ
2013
   15.135135   19.514139   28.93%   21,191
2012
   13.504241   15.135135   12.08%   22,639
2011
   13.725695   13.504241   -1.61%   25,805
2010
   12.375183   13.725695   10.91%   28,463
2009*
   10.000000   12.375183   23.75%   185
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
2013
   10.915987   13.155061   20.51%   138,136
2012
   9.651009   10.915987   13.11%   157,439
2011
   9.781789   9.651009   -1.34%   172,281
2010
   8.933259   9.781789   9.50%   188,212
2009
   7.405025   8.933259   20.64%   200,510
2008
   10.787854   7.405025   -31.36%   134,024
2007
   10.398894   10.787854   3.74%   74,383
2006*
   10.000000   10.398894   3.99%   12,877
86

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II - Q/NQ
2013
   11.086812   10.558416   -4.77%   24,479
2012
   10.805947   11.086812   2.60%   31,126
2011
   10.455502   10.805947   3.35%   36,395
2010
   10.091602   10.455502   3.61%   41,028
2009
   9.205400   10.091602   9.63%   44,255
2008
   10.448842   9.205400   -11.90%   40,076
2007
   10.381087   10.448842   0.65%   36,190
2006*
   10.000000   10.381087   3.81%   13,829
Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II - Q/NQ
2013
   11.407665   14.344932   25.75%   0
2012
   9.559441   11.407665   19.33%   0
2011
   10.782936   9.559441   -11.35%   0
2010
   9.910942   10.782936   8.80%   0
2009
   7.160160   9.910942   38.42%   0
2008
   11.937617   7.160160   -40.02%   0
2007
   10.679747   11.937617   11.78%   0
2006*
   10.000000   10.679747   6.80%   0
Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II - Q/NQ
2013
   10.202870   12.926599   26.70%   50,596
2012
   8.891032   10.202870   14.75%   62,505
2011
   9.542654   8.891032   -6.83%   75,020
2010
   8.259444   9.542654   15.54%   86,695
2009
   6.088358   8.259444   35.66%   70,852
2008
   11.165468   6.088358   -45.47%   58,094
2007
   10.209164   11.165468   9.37%   49,602
2006*
   10.000000   10.209164   2.09%   18,241
Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II - Q/NQ
2013
   8.938617   11.618251   29.98%   68,226
2012
   7.811893   8.938617   14.42%   78,649
2011
   8.174079   7.811893   -4.43%   90,546
2010
   7.535100   8.174079   8.48%   101,738
2009
   5.898318   7.535100   27.75%   90,557
2008
   9.742939   5.898318   -39.46%   25,475
2007*
   10.000000   9.742939   -2.57%   9,068
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I - Q/NQ
2013
   16.575707   17.348678   4.66%   0
2012
   14.803274   16.575707   11.97%   0
2011
   14.586321   14.803274   1.49%   0
2010
   13.187222   14.586321   10.61%   0
2009
   9.240153   13.187222   42.72%   0
2008
   13.127264   9.240153   -29.61%   0
2007
   13.022843   13.127264   0.80%   0
2006
   12.044579   13.022843   8.12%   0
2005
   11.822602   12.044579   1.88%   0
87

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - Invesco NVIT Comstock Value Fund: Class I - Q/NQ
2013
   8.436121   11.185447   32.59%   10,449
2012
   7.285500   8.436121   15.79%   11,239
2011
   7.630293   7.285500   -4.52%   13,045
2010
   6.742362   7.630293   13.17%   13,978
2009
   5.365695   6.742362   25.66%   18,159
2008
   8.712249   5.365695   -38.41%   18,732
2007
   9.115994   8.712249   -4.43%   21,300
2006
   8.045521   9.115994   13.31%   23,236
2005
   7.855041   8.045521   2.42%   24,487
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Multi Cap Opportunities Fund: Class I - Q/NQ
2013
   8.516641   11.973208   40.59%   2,294
2012
   7.450809   8.516641   14.30%   2,442
2011
   8.624038   7.450809   -13.60%   2,597
2010
   7.631379   8.624038   13.01%   2,758
2009
   5.103952   7.631379   49.52%   1,647
2008*
   10.000000   5.103952   -48.96%   1,059
Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class I - Q/NQ
2013
   9.749030   13.224168   35.65%   3,650
2012
   8.945341   9.749030   8.98%   3,006
2011
   9.451376   8.945341   -5.35%   3,248
2010
   7.823806   9.451376   20.80%   3,501
2009
   6.085016   7.823806   28.57%   3,880
2008*
   10.000000   6.085016   -39.15%   920
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
2013
   9.313423   11.787398   26.56%   235
2012
   8.203195   9.313423   13.53%   256
2011
   8.963415   8.203195   -8.48%   278
2010
   7.976604   8.963415   12.37%   0
2009
   6.316145   7.976604   26.29%   0
2008*
   10.000000   6.316145   -36.84%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
2013
   10.412844   11.670508   12.08%   17,228
2012
   9.592119   10.412844   8.56%   18,764
2011
   9.946216   9.592119   -3.56%   20,400
2010
   9.216039   9.946216   7.92%   22,105
2009
   7.868519   9.216039   17.13%   23,912
2008*
   10.000000   7.868519   -21.31%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
2013
   9.996743   11.847990   18.52%   14,209
2012
   8.999579   9.996743   11.08%   15,325
2011
   9.535070   8.999579   -5.62%   16,486
2010
   8.679150   9.535070   9.86%   17,690
2009
   7.150952   8.679150   21.37%   18,535
2008*
   10.000000   7.150952   -28.49%   0
88

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
2013
   10.826431   11.104872   2.57%   26,394
2012
   10.303603   10.826431   5.07%   30,742
2011
   10.393550   10.303603   -0.87%   32,948
2010
   9.955686   10.393550   4.40%   31,983
2009
   9.011472   9.955686   10.48%   2,263
2008*
   10.000000   9.011472   -9.89%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
2013
   10.215280   11.763379   15.15%   99,772
2012
   9.300488   10.215280   9.84%   106,060
2011
   9.741351   9.300488   -4.53%   112,226
2010
   8.948011   9.741351   8.87%   118,591
2009
   7.506482   8.948011   19.20%   116,829
2008*
   10.000000   7.506482   -24.94%   0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
2013
   9.712704   11.799144   21.48%   107,541
2012
   8.671897   9.712704   12.00%   114,924
2011
   9.305852   8.671897   -6.81%   122,300
2010
   8.401560   9.305852   10.76%   130,329
2009
   6.790204   8.401560   23.73%   136,343
2008*
   10.000000   6.790204   -32.10%   3,285
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
2013
   10.601632   11.527800   8.74%   4,649
2012
   9.856291   10.601632   7.56%   4,952
2011
   10.109999   9.856291   -2.51%   12,515
2010
   9.485717   10.109999   6.58%   13,233
2009
   8.246084   9.485717   15.03%   1,507
2008*
   10.000000   8.246084   -17.54%   1,581
Nationwide Variable Insurance Trust - NVIT Core Bond Fund: Class I - Q/NQ
2013
   11.963215   11.470486   -4.12%   6,777
2012
   11.358538   11.963215   5.32%   11,029
2011
   10.900368   11.358538   4.20%   12,249
2010
   10.416211   10.900368   4.65%   9,052
2009
   9.795461   10.416211   6.34%   9,966
2008*
   10.000000   9.795461   -2.05%   8,590
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
2013
   12.768152   12.225141   -4.25%   7,727
2012
   12.194752   12.768152   4.70%   8,292
2011
   11.763273   12.194752   3.67%   9,056
2010
   11.130830   11.763273   5.68%   3,777
2009
   9.779546   11.130830   13.82%   3,440
2008*
   10.000000   9.779546   -2.20%   435
89

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I - Q/NQ
2013
   20.355369   20.045678   -1.52%   0
2012
   17.766068   20.355369   14.57%   0
2011
   23.413276   17.766068   -24.12%   0
2010
   20.616718   23.413276   13.56%   0
2009
   12.914454   20.616718   59.64%   0
2008
   31.281790   12.914454   -58.72%   0
2007
   21.984674   31.281790   42.29%   0
2006
   16.449238   21.984674   33.65%   0
2005
   13.485149   16.449238   21.98%   0
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I - Q/NQ
2013
   15.455427   14.494946   -6.21%   48,149
2012
   15.343062   15.455427   0.73%   54,430
2011
   14.633524   15.343062   4.85%   60,468
2010
   14.287140   14.633524   2.42%   63,796
2009
   14.233310   14.287140   0.38%   73,256
2008
   13.517369   14.233310   5.30%   53,201
2007
   12.906278   13.517369   4.73%   53,421
2006
   12.775650   12.906278   1.02%   49,051
2005
   12.846235   12.775650   -0.55%   35,878
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I - Q/NQ
2013
   10.686762   12.309276   15.18%   0
2012
   9.457202   10.686762   13.00%   0
2011
   10.721499   9.457202   -11.79%   0
2010
   9.681307   10.721499   10.74%   0
2009
   7.634898   9.681307   26.80%   0
2008
   14.480003   7.634898   -47.27%   0
2007
   11.651986   14.480003   24.27%   0
2006
   8.964258   11.651986   29.98%   0
2005
   7.284758   8.964258   23.05%   0
Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class II - Q/NQ
2013
   7.513425   8.634305   14.92%   0
2012
   6.670992   7.513425   12.63%   0
2011
   7.582552   6.670992   -12.02%   0
2010
   6.864350   7.582552   10.46%   0
2009
   5.424728   6.864350   26.54%   0
2008*
   10.000000   5.424728   -45.75%   0
Nationwide Variable Insurance Trust - NVIT International Index Fund: Class VIII - Q/NQ
2013
   8.343599   9.869618   18.29%   0
2012
   7.220989   8.343599   15.55%   0
2011
   8.476116   7.220989   -14.81%   0
2010
   8.073743   8.476116   4.98%   0
2009
   6.422245   8.073743   25.72%   0
2008
   11.545296   6.422245   -44.37%   0
2007
   10.798640   11.545296   6.91%   0
2006*
   10.000000   10.798640   7.99%   0
90

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II - Q/NQ
2013
   13.387602   16.652249   24.39%   8,818
2012
   11.817147   13.387602   13.29%   9,543
2011
   12.583341   11.817147   -6.09%   10,308
2010
   11.229930   12.583341   12.05%   11,036
2009
   9.031394   11.229930   24.34%   10,230
2008
   14.629797   9.031394   -38.27%   10,559
2007
   14.126678   14.629797   3.56%   19,623
2006
   12.365120   14.126678   14.25%   17,246
2005
   11.734544   12.365120   5.37%   0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II - Q/NQ
2013
   12.976755   14.387629   10.87%   1,870
2012
   12.136974   12.976755   6.92%   2,001
2011
   12.306842   12.136974   -1.38%   2,138
2010
   11.464785   12.306842   7.34%   2,280
2009*
   10.000000   11.464785   14.65%   2,369
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II - Q/NQ
2013
   13.986825   16.337548   16.81%   4,145
2012
   12.747900   13.986825   9.72%   3,956
2011
   13.163898   12.747900   -3.16%   4,235
2010
   12.020578   13.163898   9.51%   4,526
2009*
   10.000000   12.020578   20.21%   1,498
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II - Q/NQ
2013
   12.020658   12.317933   2.47%   13,678
2012
   11.692852   12.020658   2.80%   14,946
2011
   11.620753   11.692852   0.62%   16,241
2010
   11.226634   11.620753   3.51%   23,418
2009
   10.528544   11.226634   6.63%   35,631
2008
   11.461211   10.528544   -8.14%   34,237
2007
   11.127671   11.461211   3.00%   31,081
2006
   10.722170   11.127671   3.78%   26,332
2005
   10.651109   10.722170   67.00%   29,431
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II - Q/NQ
2013
   13.058282   14.886968   14.00%   234,746
2012
   12.056058   13.058282   8.31%   258,468
2011
   12.337950   12.056058   -2.28%   278,849
2010
   11.379824   12.337950   8.42%   303,497
2009
   9.771858   11.379824   16.46%   312,973
2008
   13.016218   9.771858   -24.93%   335,447
2007
   12.604126   13.016218   3.27%   347,149
2006
   11.578857   12.604126   8.85%   282,174
2005
   11.267564   11.578857   2.76%   107,943
91

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II - Q/NQ
2013
   13.422973   16.057228   19.62%   165,115
2012
   12.071574   13.422973   11.19%   178,226
2011
   12.617200   12.071574   -4.32%   193,680
2010
   11.439275   12.617200   10.30%   205,777
2009
   9.407785   11.439275   21.59%   229,752
2008
   14.028309   9.407785   -32.94%   255,915
2007
   13.521373   14.028309   3.75%   277,999
2006
   12.075809   13.521373   11.97%   252,309
2005
   11.570960   12.075809   4.36%   209,054
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II - Q/NQ
2013
   12.794433   13.819172   8.01%   32,185
2012
   12.115555   12.794433   5.60%   34,744
2011
   12.143332   12.115555   -0.23%   37,406
2010
   11.447776   12.143332   6.08%   45,573
2009
   10.222697   11.447776   11.98%   32,658
2008
   12.310070   10.222697   -16.96%   20,739
2007
   11.897824   12.310070   3.46%   18,823
2006
   11.225416   11.897824   5.99%   21,701
2005
   11.036455   11.225416   1.71%   20,655
Nationwide Variable Insurance Trust - NVIT Large Cap Growth Fund: Class I - Q/NQ
2013
   15.167716   20.268477   33.63%   132,558
2012
   13.074566   15.167716   16.01%   145,089
2011
   13.680470   13.074566   -4.43%   169,617
2010
   12.863233   13.680470   6.35%   186,719
2009*
   10.000000   12.863233   28.63%   10,438
Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I - Q/NQ
2013
   18.252366   23.738314   30.06%   3,232
2012
   15.895943   18.252366   14.82%   4,887
2011
   16.685667   15.895943   -4.73%   12,594
2010
   13.525433   16.685667   23.37%   14,961
2009
   10.117884   13.525433   33.68%   12,892
2008
   16.291811   10.117884   -37.90%   9,138
2007
   15.497335   16.291811   5.13%   10,162
2006
   14.426404   15.497335   7.42%   8,585
2005
   13.669005   14.426404   5.54%   8,269
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I - Q/NQ
2013
   9.633292   9.416547   -2.25%   36,953
2012
   9.855639   9.633292   -2.26%   53,103
2011
   10.081859   9.855639   -2.24%   40,123
2010
   10.313905   10.081859   -2.25%   42,224
2009
   10.546883   10.313905   -2.21%   59,118
2008
   10.572523   10.546883   -0.24%   70,927
2007
   10.322500   10.572523   2.42%   30,727
2006
   10.101803   10.322500   2.18%   34,332
2005
   10.058320   10.101803   0.43%   7,838
92

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I - Q/NQ
2013
   15.964041   15.429370   -3.35%   0
2012
   14.550018   15.964041   9.72%   0
2011
   14.101705   14.550018   3.18%   0
2010
   13.045048   14.101705   8.10%   0
2009
   10.729363   13.045048   21.58%   0
2008
   13.271150   10.729363   -19.15%   0
2007
   12.978045   13.271150   2.26%   0
2006
   12.663264   12.978045   2.49%   0
2005
   12.648443   12.663264   0.12%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class II - Q/NQ
2013
   8.616713   10.195903   18.33%   0
2012
   7.531527   8.616713   14.41%   0
2011
   9.217669   7.531527   -18.29%   0
2010
   8.904774   9.217669   3.51%   0
2009
   7.034117   8.904774   26.59%   0
2008
   13.445992   7.034117   -47.69%   0
2007
   13.394458   13.445992   0.38%   0
2006
   11.194114   13.394458   19.66%   0
2005
   10.161326   11.194114   10.16%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class I - Q/NQ
2013
   9.692208   12.765691   31.71%   14,839
2012
   8.522037   9.692208   13.73%   16,292
2011
   8.978726   8.522037   -5.09%   17,278
2010
   7.951875   8.978726   12.91%   19,430
2009
   6.268363   7.951875   26.86%   948
2008*
   10.000000   6.268363   -37.32%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class I - Q/NQ
2013
   10.978345   14.534572   32.39%   0
2012
   9.533651   10.978345   15.15%   0
2011
   10.356508   9.533651   -7.95%   0
2010*
   10.000000   10.356508   3.57%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
2013
   9.055687   11.952685   31.99%   4,761
2012
   7.878627   9.055687   14.94%   4,999
2011
   8.582541   7.878627   -8.20%   5,246
2010
   7.787385   8.582541   10.21%   5,502
2009
   6.252676   7.787385   24.54%   5,769
2008*
   10.000000   6.252676   -37.47%   472
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class I - Q/NQ
2013
   10.017701   13.606104   35.82%   13,796
2012
   8.919474   10.017701   12.31%   19,434
2011
   9.527355   8.919474   -6.38%   21,642
2010
   7.685308   9.527355   23.97%   23,492
2009
   6.184777   7.685308   24.26%   25,335
2008*
   10.000000   6.184777   -38.15%   0
93

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
2013
   10.778981   14.295792   32.63%   2,721
2012
   9.478359   10.778981   13.72%   2,827
2011
   9.926538   9.478359   -4.51%   3,549
2010
   8.488366   9.926538   16.94%   4,139
2009
   6.655774   8.488366   27.53%   4,226
2008*
   10.000000   6.655774   -33.44%   458
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class I - Q/NQ
2013
   6.301248   8.887660   41.05%   0
2012
   5.682974   6.301248   10.88%   0
2011
   5.851466   5.682974   -2.88%   0
2010
   4.771711   5.851466   22.63%   0
2009
   3.829839   4.771711   24.59%   0
2008
   7.312826   3.829839   -47.63%   0
2007
   6.817362   7.312826   7.27%   0
2006
   6.757209   6.817362   0.89%   0
2005
   6.246511   6.757209   8.18%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I - Q/NQ
2013
   20.053215   27.521796   37.24%   0
2012
   17.033276   20.053215   17.73%   0
2011
   18.355342   17.033276   -7.20%   0
2010
   14.831548   18.355342   23.76%   0
2009
   12.021534   14.831548   23.37%   0
2008
   18.127074   12.021534   -33.68%   0
2007
   19.920154   18.127074   -9.00%   0
2006
   17.372951   19.920154   14.66%   0
2005
   17.062224   17.372951   1.82%   0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I - Q/NQ
2013
   14.457113   19.913044   37.74%   0
2012
   12.805463   14.457113   12.90%   0
2011
   13.870755   12.805463   -7.68%   0
2010
   11.322815   13.870755   22.50%   0
2009
   8.599322   11.322815   31.67%   0
2008
   14.233228   8.599322   -39.58%   0
2007
   14.258693   14.233228   -0.18%   0
2006
   13.018755   14.258693   9.52%   0
2005
   12.152595   13.018755   7.13%   0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class I - Q/NQ
2013
   9.711318   12.445398   28.15%   39,785
2012
   8.698871   9.711318   11.64%   43,645
2011
   8.851882   8.698871   -1.73%   50,039
2010
   7.981931   8.851882   10.90%   53,761
2009
   6.475718   7.981931   23.26%   58,949
2008
   11.335692   6.475718   -42.87%   59,521
2007
   10.720914   11.335692   5.73%   63,499
2006
   9.651649   10.720914   11.08%   59,307
2005
   9.334508   9.651649   3.40%   41,736
94

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class I - Q/NQ
2013
   10.663875   10.741354   0.73%   0
2012
   9.422383   10.663875   13.18%   0
2011
   9.050421   9.422383   4.11%   0
2010
   7.111931   9.050421   27.26%   0
2009
   5.561032   7.111931   27.89%   0
2008*
   10.000000   5.561032   -44.39%   0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
2013
   10.286445   10.065596   -2.15%   29,959
2012
   10.165640   10.286445   1.19%   34,547
2011
   10.265736   10.165640   -0.98%   40,522
2010
   10.253900   10.265736   0.12%   42,223
2009
   9.793605   10.253900   4.70%   48,677
2008*
   10.000000   9.793605   -2.06%   406
Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class I - Q/NQ
2013
   13.351853   15.674150   17.39%   0
2012
   11.424689   13.351853   16.87%   0
2011
   13.345750   11.424689   -14.39%   0
2010
   12.838018   13.345750   3.95%   0
2009*
   10.000000   12.838018   29.25%   0
Neuberger Berman Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class - Q/NQ
2013
   9.803310   9.641839   -1.65%   23,908
2012
   9.588009   9.803310   2.25%   34,357
2011
   9.779855   9.588009   -1.96%   24,339
2010
   9.502722   9.779855   2.92%   26,697
2009
   8.578190   9.502722   10.78%   20,203
2008
   10.136974   8.578190   -15.38%   19,527
2007
   9.899222   10.136974   2.40%   11,873
2006
   9.718098   9.899222   1.86%   12,743
2005
   9.750570   9.718098   -0.33%   12,956
Neuberger Berman Advisers Management Trust - AMT Small Cap Growth Portfolio: S Class - Q/NQ
2013
   11.340596   16.166704   42.56%   0
2012
   10.661741   11.340596   6.37%   0
2011
   11.023563   10.661741   -3.28%   0
2010
   9.428093   11.023563   16.92%   0
2009
   7.857286   9.428093   19.99%   0
2008
   13.280979   7.857286   -40.84%   0
2007
   13.518806   13.280979   -1.76%   0
2006
   13.139124   13.518806   2.89%   0
2005
   12.655090   13.139124   3.82%   0
95

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class - Q/NQ
2013
   12.852555   17.287846   34.51%   1,982
2012
   11.848214   12.852555   8.48%   2,153
2011
   12.505627   11.848214   -5.26%   2,647
2010
   10.413252   12.505627   20.09%   2,867
2009
   8.105646   10.413252   28.47%   3,126
2008
   13.693921   8.105646   -40.81%   4,298
2007
   13.019610   13.693921   5.18%   2,756
2006
   11.713378   13.019610   11.15%   1,798
2005
   11.040918   11.713378   6.09%   1,634
Oppenheimer Variable Account Funds - Oppenheimer Discovery Mid Cap Growth Fund/VA: Non-Service Shares - Q/NQ
2013
   5.392950   7.168656   32.93%   0
2012
   4.738094   5.392950   13.82%   0
2011
   4.794398   4.738094   -1.17%   0
2010
   3.847818   4.794398   24.60%   0
2009
   2.968443   3.847818   29.62%   0
2008
   5.962681   2.968443   -50.22%   0
2007
   5.737368   5.962681   3.93%   0
2006
   5.700607   5.737368   0.64%   0
2005
   5.295116   5.700607   7.66%   0
Oppenheimer Variable Account Funds - Oppenheimer Global Fund/VA: Non-Service Shares - Q/NQ
2013
   12.950164   16.115703   24.44%   0
2012
   10.925563   12.950164   18.53%   0
2011
   12.186992   10.925563   -10.35%   0
2010
   10.750875   12.186992   13.36%   0
2009
   7.868788   10.750875   36.63%   0
2008
   13.459419   7.868788   -41.54%   0
2007
   12.952450   13.459419   3.91%   0
2006
   11.257951   12.952450   15.05%   0
2005
   10.081789   11.257951   11.67%   0
Oppenheimer Variable Account Funds - Oppenheimer Global Strategic Income Fund/VA: Service Shares - Q/NQ
2013
   16.479002   16.049092   -2.61%   742
2012
   16.260960   16.479002   1.34%   0
Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares - Q/NQ
2013
   9.407559   12.117918   28.81%   16,514
2012
   8.235164   9.407559   14.24%   18,393
2011
   8.425534   8.235164   -2.26%   19,604
2010
   7.423529   8.425534   13.50%   20,863
2009
   5.919937   7.423529   25.40%   22,189
2008
   9.843152   5.919937   -39.86%   13,355
2007
   9.644314   9.843152   2.06%   14,258
2006
   8.576947   9.644314   12.44%   9,459
2005
   8.315771   8.576947   3.14%   2,450
96

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Service Shares - Q/NQ
2013
   13.421237   18.449040   37.46%   0
2012
   11.668947   13.421237   15.02%   0
2011
   12.228430   11.668947   -4.58%   0
2010
   10.165804   12.228430   20.29%   0
2009
   7.597639   10.165804   33.80%   0
2008
   12.537743   7.597639   -39.40%   0
2007
   13.009062   12.537743   -3.62%   0
2006
   11.606399   13.009062   12.09%   0
2005
   10.846787   11.606399   7.00%   0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
2013
   12.588038   11.496748   -8.67%   0
2012
   12.238228   12.588038   2.86%   0
2011
   11.547299   12.238228   5.98%   0
2010
   10.800810   11.547299   6.91%   0
2009*
   10.000000   10.800810   8.01%   0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
2013
   11.417306   11.134504   -2.48%   22,326
2012
   11.045679   11.417306   3.36%   27,992
2011
   11.186479   11.045679   -1.26%   17,979
2010
   10.879769   11.186479   2.82%   18,716
2009*
   10.000000   10.879769   8.80%   5,885
Putnam Variable Trust - Putnam VT Growth & Income Fund: Class IB - Q/NQ
2013
   10.382994   13.770592   32.63%   0
2012
   8.916215   10.382994   16.45%   0
2011
   9.565019   8.916215   -6.78%   0
2010
   8.554994   9.565019   11.81%   0
2009
   6.741994   8.554994   26.89%   0
2008
   11.251494   6.741994   -40.08%   0
2007
   12.251855   11.251494   -8.16%   0
2006
   10.812637   12.251855   13.31%   0
2005
   10.642309   10.812637   1.60%   0
Putnam Variable Trust - Putnam VT International Equity Fund: Class IB - Q/NQ
2013
   10.274521   12.862752   25.19%   0
2012
   8.621937   10.274521   19.17%   0
2011
   10.618332   8.621937   -18.80%   0
2010
   9.872685   10.618332   7.55%   0
2009
   8.103753   9.872685   21.83%   0
97

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Putnam Variable Trust - Putnam VT Voyager Fund: Class IB - Q/NQ
2013
   12.486233   17.542411   40.49%   0
2012
   11.183148   12.486233   11.65%   0
2011
   13.925797   11.183148   -19.69%   0
2010
   11.793272   13.925797   18.08%   0
2009
   7.361108   11.793272   60.21%   0
2008
   11.959842   7.361108   -38.45%   0
2007
   11.596483   11.959842   3.13%   0
2006
   11.251140   11.596483   3.07%   0
2005
   10.795010   11.251140   4.23%   0
T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II - Q/NQ
2013
   14.476417   21.299002   47.13%   0
2012
   11.305609   14.476417   28.05%   0
2011
   10.477157   11.305609   7.91%   0
2010
   9.443119   10.477157   10.95%   0
The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class II - Q/NQ
2013
   11.640009   11.312088   -2.82%   8,315
2012
   10.906004   11.640009   6.73%   8,987
2011
   10.584401   10.906004   3.04%   10,335
2010
   10.133021   10.584401   4.45%   11,167
2009
   9.477206   10.133021   6.92%   12,045
2008
   10.827458   9.477206   -12.47%   10,655
2007
   10.528615   10.827458   2.84%   7,267
2006
   10.399944   10.528615   1.24%   9,595
2005
   10.358167   10.399944   0.40%   9,713
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class I - Q/NQ
2013
   28.583678   25.495625   -10.80%   0
2012
   24.790427   28.583678   15.30%   0
2011
   23.693190   24.790427   4.63%   0
2010
   22.086056   23.693190   7.28%   0
2009
   17.352177   22.086056   27.28%   0
2008
   20.878662   17.352177   -16.89%   0
2007
   20.052000   20.878662   4.12%   0
2006
   18.511634   20.052000   8.32%   0
2005
   17.482734   18.511634   5.89%   0
Van Eck VIP Trust - Van Eck VIP Emerging Markets Fund: Initial Class - Q/NQ
2013
   18.432443   20.183542   9.50%   0
2012
   14.527262   18.432443   26.88%   0
2011
   20.012106   14.527262   -27.41%   0
2010
   16.140102   20.012106   23.99%   0
2009
   7.745238   16.140102   108.39%   0
2008
   22.499126   7.745238   -65.58%   0
2007
   16.727451   22.499126   34.50%   0
2006
   12.266817   16.727451   36.36%   0
2005
   10.147224   12.266817   20.89%   0
98

Additional Contract Options Elected Total - 2.25%
Variable account charges of the daily net assets of the variable account - 2.25%
Period   Beginning Value   Ending Value   Percentage Change   Units
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
2013
   33.435924   36.126471   8.05%   0
2012
   33.087192   33.435924   1.05%   0
2011
   40.512456   33.087192   -18.33%   0
2010
   32.068624   40.512456   26.33%   0
2009
   20.825181   32.068624   53.99%   0
2008
   39.546906   20.825181   -47.34%   0
2007
   27.836326   39.546906   42.07%   0
2006
   22.873047   27.836326   21.70%   0
2005
   17.911877   22.873047   27.70%   0
Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2 - Q/NQ
2013
   15.844694   23.268417   46.85%   0
2012
   15.027491   15.844694   5.44%   0
2011
   16.113447   15.027491   -6.74%   0
2010
   13.002801   16.113447   23.92%   0
2009*
   10.000000   13.002801   30.03%   0
99

Appendix E: Contract Types and Tax Information
Types of Contracts
The contracts described in this prospectus are classified according to the tax treatment to which they are subject under the Internal Revenue Code (the "Code"). Following is a general description of the various contract types. Eligibility requirements, tax benefits (if any), limitations, and other features of the contracts will differ depending on contract type.
Non-Qualified Contracts
A non-qualified contract is a contract that does not qualify for certain tax benefits under the Code, and which is not an IRA, Roth IRA, SEP IRA, Simple IRA, or tax sheltered annuity.
Upon the death of the owner of a non-qualified contract, mandatory distribution requirements are imposed to ensure distribution of the entire balance in the contract within a required period.
Non-qualified contracts that are owned by natural persons allow the deferral of taxation on the income earned in the contract until it is distributed or deemed to be distributed. Non-qualified contracts that are owned by non-natural persons, such as trusts, corporations, and partnerships are generally subject to current income tax on the income earned inside the contract, unless the non-natural person owns the contract as an agent of a natural person.
Individual Retirement Annuities (IRAs)
IRAs are contracts that satisfy the provisions of Section 408(b) of the Code, including the following requirements:
• the contract is not transferable by the owner;
• the premiums are not fixed;
• if the contract owner is younger than age 50, the annual premium cannot exceed $5,500; if the contract owner is age 50 or older, the annual premium cannot exceed $6,500 (although rollovers of greater amounts from Qualified Plans, Tax Sheltered Annuities, and other IRAs can be received);
• certain minimum distribution requirements must be satisfied after the owner attains the age of 70½;
• the entire interest of the owner in the contract is nonforfeitable; and
• after the death of the owner, additional distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.
Depending on the circumstance of the owner, all or a portion of the contributions made to the account may be deducted for federal income tax purposes.
IRAs may receive rollover contributions from other individual retirement accounts, other individual retirement annuities, tax sheltered annuities, certain 457 governmental plans, and qualified retirement plans (including 401(k) plans).
When the owner of an IRA attains the age of 70½, the Code requires that certain minimum distributions be made. In addition, upon the death of the owner of an IRA, mandatory distribution requirements are imposed by the Code to ensure distribution of the entire contract value within the required statutory period. Due to recent changes in Treasury Regulations, the amount used to compute the mandatory distributions may exceed the contract value.
Failure to make the mandatory distributions can result in an additional penalty tax of 50% of the excess of the amount required to be distributed over the amount that was actually distributed.
For further details regarding IRAs, refer to the disclosure statement provided when the IRA was established and the annuity contract's IRA endorsement.
As used herein, the term "individual retirement plans" shall refer to both individual retirement annuities and individual retirement accounts that are described in Section 408 of the Code.
Roth IRAs
Roth IRA contracts are contracts that satisfy the provisions of Section 408A of the Code, including the following requirements:
• the contract is not transferable by the owner;
• the premiums are not fixed;
• if the contract owner is younger than age 50, the annual premium cannot exceed $5,500; if the contract owner is age 50 or older, the annual premium cannot exceed $6,500 (although rollovers of greater amounts from other Roth IRAs and other individual retirement plans can be received);
• the entire interest of the owner in the contract is nonforfeitable; and
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• after the death of the owner, certain distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.
A Roth IRA can receive a rollover from an individual retirement plan or another eligible retirement plan; however, the amount rolled over from the individual retirement plan or other eligible retirement plan to the Roth IRA is required to be included in the owner's federal gross income at the time of the rollover, and will be subject to federal income tax.
There are income limitations on eligibility to participate in a Roth IRA.
For further details regarding Roth IRAs, please refer to the disclosure statement provided when the Roth IRA was established and the annuity contract's IRA endorsement.
Tax Sheltered Annuities
Certain tax-exempt organizations (described in Section 501(c)(3) of the Code) and public school systems may establish a plan under which annuity contracts can be purchased for their employees. These annuity contracts are often referred to as Tax Sheltered Annuities.
Purchase payments made to Tax Sheltered Annuities are excludable from the income of the employee, up to statutory maximum amounts. These amounts should be set forth in the plan adopted by the employer.
Tax Sheltered Annuities may receive rollover contributions from Individual Retirement Accounts, Individual Retirement Annuities, other Tax Sheltered Annuities, certain 457 governmental plans, and qualified retirement plans (including 401(k) plans).
The owner's interest in the contract is nonforfeitable (except for failure to pay premiums) and cannot be transferred.
When the owner of a Tax Sheltered Annuity attains the age of 70½, the Code requires that certain minimum distributions be made. Due to recent changes in Treasury Regulations, the amount used to compute the minimum distributions may exceed the contract value. In addition, upon the death of the owner of a Tax Sheltered Annuity, mandatory distribution requirements are imposed by the Code to ensure distribution of the entire contract value within the required statutory period.
Final 403(b) Regulations issued by the Internal Revenue Service impose certain restrictions on non-taxable transfers or exchanges of one 403(b) Tax Sheltered Annuity contract for another. Nationwide will no longer issue or accept applications for new and/or in-service transfers to new or existing Nationwide individual 403(b) Tax Sheltered Annuity contracts used for salary reduction plans not subject to ERISA. Nationwide will continue to accept applications and in-service transfers for individual 403(b) Tax Sheltered Annuity contracts used for 403(b) plans that are subject to ERISA and certain state Optional Retirement Plans and/or Programs that have purchased at least one individual annuity contract issued by Nationwide prior to September 25, 2007.
Commencing in 2009, Tax Sheltered Annuities must be issued pursuant to a written plan, and the plan must satisfy various administrative requirements. Check with your employer to ensure that these requirements will be satisfied in a timely manner.
Federal Tax Considerations
Federal Income Taxes
The tax consequences of purchasing a contract described in this prospectus will depend on:
• the type of contract purchased;
• the purposes for which the contract is purchased; and
• the personal circumstances of individual investors having interests in the contracts.
Existing tax rules are subject to change, and may affect individuals differently depending on their situation. Nationwide does not guarantee the tax status of any contracts or any transactions involving the contracts.
Representatives of the Internal Revenue Service have informally suggested, from time to time, that the number of underlying mutual funds available or the number of transfer opportunities available under a variable product may be relevant in determining whether the product qualifies for the desired tax treatment. In 2003, the Internal Revenue Service issued formal guidance, in Revenue Ruling 2003-91, that indicates that if the number of underlying mutual funds available in a variable insurance product does not exceed 20, the number of underlying mutual funds alone would not cause the contract to not qualify for the desired tax treatment. The Internal Revenue Service has also indicated that exceeding 20 investment options may be considered a factor, along with other factors including the number of transfer opportunities available under the contract, when determining whether the contract qualifies for the desired tax treatment. The revenue ruling did not indicate the actual number of underlying mutual funds that would cause the contract to not provide the desired tax treatment. Should the U.S. Secretary of the Treasury issue additional rules or regulations limiting the number
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of underlying mutual funds, transfers between underlying mutual funds, exchanges of underlying mutual funds or changes in investment objectives of underlying mutual funds such that the contract would no longer qualify for tax deferred treatment under Section 72 of the Code, Nationwide will take whatever steps are available to remain in compliance.
If the contract is purchased as an investment in certain retirement plans (such as qualified retirement plans, Individual Retirement Accounts, and custodial accounts as described in Sections 401 and 408(a) of the Code), tax advantages enjoyed by the contract owner and/or annuitant may relate to participation in the plan rather than ownership of the annuity contract. Such plans are permitted to purchase investments other than annuities and retain tax-deferred status.
The following is a brief summary of some of the federal income tax considerations related to the types of contracts sold in connection with this prospectus. In addition to the federal income tax, distributions from annuity contracts may be subject to state and local income taxes. Nothing in this prospectus should be considered to be tax advice. Purchasers and prospective purchasers of the contract should consult a financial consultant, tax advisor, or legal counsel to discuss the taxation and use of the contracts.
IRAs
Distributions from IRAs are generally taxed as ordinary income when received. If any of the amounts contributed to the Individual Retirement Annuity was non-deductible for federal income tax purposes, then a portion of each distribution is excludable from income.
If distributions of income from an IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to the regular income tax, and an additional penalty tax of 10% is generally applicable. The 10% penalty tax can be avoided if the distribution is:
• made to a beneficiary on or after the death of the owner;
• attributable to the owner becoming disabled (as defined in the Code);
• part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary;
• used for qualified higher education expenses; or
• used for expenses attributable to the purchase of a home for a qualified first-time buyer.
If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner's gross estate for tax purposes.
Roth IRAs
Distributions of earnings from Roth IRAs are taxable or nontaxable depending upon whether they are "qualified distributions" or "non-qualified distributions." A "qualified distribution" is one that is made after the Roth IRA has satisfied the five-year rule and meets one of the following requirements:
• it is made on or after the date on which the contract owner attains age 59½;
• it is made to a beneficiary (or the contract owner's estate) on or after the death of the contract owner;
• it is attributable to the contract owner's disability; or
• it is used for expenses attributable to the purchase of a home for a qualified first-time buyer.
The five-year rule is satisfied if a five taxable-year period, beginning with the first taxable year in which a contribution is made to any Roth IRA established for the owner, has passed.
A qualified distribution is not included in gross income for federal income tax purposes.
A non-qualified distribution is not includable in gross income to the extent that the distribution, when added to all previous distributions, does not exceed the total amount of contributions made to the Roth IRA. Any non-qualified distribution in excess of total contributions is includable in the contract owner's gross income as ordinary income in the year that it is distributed to the contract owner.
Special rules apply for Roth IRAs that have proceeds received from an individual retirement plan prior to January 1, 1999 if the owner elected the special four-year income averaging provisions that were in effect for 1998.
If non-qualified distributions of income from a Roth IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is:
• made to a beneficiary on or after the death of the owner;
• attributable to the owner becoming disabled (as defined in the Code);
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• part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary;
• for qualified higher education expenses; or
• used for expenses attributable to the purchase of a home for a qualified first-time buyer.
If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner's gross estate for tax purposes.
Tax Sheltered Annuities
Distributions from Tax Sheltered Annuities are generally taxed when received. If nondeductible contributions are made, then a portion of each distribution after the annuitization date is excludable from income based on a formula established pursuant to the Code. The formula excludes from income the amount invested in the contract divided by the number of anticipated payments until the full investment in the contract is recovered. Thereafter all distributions are fully taxable.
If a distribution of income is made from a Tax Sheltered Annuity prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is:
• made to a beneficiary on or after the death of the owner;
• attributable to the owner becoming disabled (as defined in the Code);
• part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; or
• made to the owner after separation from service with his or her employer after age 55.
A loan from a Tax Sheltered Annuity generally is not considered to be a distribution, and is therefore generally not taxable. However, if the loan is not repaid in accordance with the repayment schedule, the entire balance of the loan would be treated as being in default, and the defaulted amount would be treated as being distributed to the participant as a taxable distribution.
If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner's gross estate for tax purposes.
Non-Qualified Contracts - Natural Persons as Contract Owners
Generally, the income earned inside a non-qualified annuity contract that is owned by a natural person is not taxable until it is distributed from the contract.
Distributions before the annuitization date are taxable to the contract owner to the extent that the cash value of the contract exceeds the contract owner's investment in the contract at the time of the distribution. In general, the investment in the contract is equal to the purchase payments made with after-tax dollars reduced by any nontaxable distribution. Distributions, for this purpose, include full and partial surrenders, any portion of the contract that is assigned or pledged, amounts borrowed from the contract, or any portion of the contract that is transferred by gift. For these purposes, a transfer by gift may occur upon annuitization if the contract owner and the annuitant are not the same individual.
With respect to annuity distributions on or after the annuitization date, a portion of each annuity payment is excludable from taxable income. The amount excludable from each annuity payment is determined by multiplying the annuity payment by a fraction which is equal to the contract owner's investment in the contract, divided by the expected return on the contract. Once the entire investment in the contract is recovered, all distributions are fully includable in income. The maximum amount excludable from income is the investment in the contract. If the annuitant dies before the entire investment in the contract has been excluded from income, and as a result of the annuitant's death no more payments are due under the contract, then the unrecovered investment in the contract may be deducted on his or her final tax return.
Commencing after December 31, 2010, the Code provides that if only a portion of a non-qualified annuity contract is annuitized for either (a) a period of 10 years or greater, or (b) for the life or lives of one or more persons, then the portion of the contract that has been annuitized would be treated as if it were a separate annuity contract. This means that an annuitization date can be established for a portion of the annuity contract (rather than requiring the entire contract to be annuitized at once) and the above description of the taxation of annuity distributions after the annuitization date would apply to the portion of the contract that has been annuitized. The investment in the contract is required to be allocated pro rata between the portion of the contract that is annuitized and the portion that is not. All other benefits under the contract (e.g., death benefit) would also be reduced pro rata. For example, if 1/3 of the cash value of the contract were to be annuitized, the death benefit would also be reduced by 1/3.
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In determining the taxable amount of a distribution that is made prior to the annuitization date, all annuity contracts issued after October 21, 1988 by the same company to the same contract owner during the same calendar year will be treated as one annuity contract.
A special rule applies to distributions from contracts that have investments that were made prior to August 14, 1982. For those contracts, distributions that are made prior to the annuitization date are treated first as the nontaxable recovery of the investment in the contract as of that date. A distribution in excess of the amount of the investment in the contract as of August 14, 1982, will be treated as taxable income.
The Code imposes a penalty tax if a distribution is made before the contract owner reaches age 59½. The amount of the penalty is 10% of the portion of any distribution that is includable in gross income. The penalty tax does not apply if the distribution is:
• the result of a contract owner's death;
• the result of a contract owner's disability (as defined in the Code);
• one of a series of substantially equal periodic payments made over the life (or life expectancy) of the contract owner or the joint lives (or joint life expectancies) of the contract owner and the beneficiary selected by the contract owner to receive payment under the annuity payment option selected by the contract owner; or
• is allocable to an investment in the contract before August 14, 1982.
If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner's gross estate for tax purposes.
Non-Qualified Contracts - Non-Natural Persons as Contract Owners
The previous discussion related to the taxation of non-qualified contracts owned by individuals. Different rules (the so-called "non-natural persons" rules) apply if the contract owner is not a natural person.
Generally, contracts owned by corporations, partnerships, trusts, and similar entities are not treated as annuity contracts for most purposes of the Code. Therefore, income earned under a non-qualified contract that is owned by a non-natural person is taxed as ordinary income during the taxable year in which it is earned. Taxation is not deferred, even if the income is not distributed out of the contract. The income is taxable as ordinary income, not capital gain.
The non-natural persons rules do not apply to all entity-owned contracts. For purposes of the non-natural persons rule, a contract that is owned by a non-natural person as an agent of an individual is treated as owned by the individual. This would cause the contract to be treated as an annuity under the Code, allowing tax deferral. However, this exception does not apply when the non-natural person is an employer that holds the contract under a non-qualified deferred compensation arrangement for one or more employees.
The non-natural persons rules also do not apply to contracts that are:
• acquired by the estate of a decedent by reason of the death of the decedent;
• issued in connection with certain qualified retirement plans and individual retirement plans;
• purchased by an employer upon the termination of certain qualified retirement plans; or
• immediate annuities within the meaning of Section 72(u) of the Code.
If the annuitant dies before the contract is completely distributed, the balance may be included in the annuitant's gross estate for tax purposes, depending on the obligations that the non-natural owner may have owed to the annuitant.
Exchanges
As a general rule, federal income tax law treats exchanges of property in the same manner as a sale of the property. However, pursuant to Section 1035 of the Code, an annuity contract may be exchanged tax-free for another annuity, provided that the obligee (the person to whom the annuity obligation is owed) is the same for both contracts. If the exchange includes the receipt of property in addition to another annuity contract, such as cash, special rules may cause a portion of the transaction to be taxable to the extent of the value of the property, other than the annuity contract received in the exchange.
Tax Treatment of a Partial 1035 Exchange With Subsequent Withdrawal
In June 2011, the Internal Revenue Service issued Rev. Proc. 2011-38, which addresses the income tax consequences of the direct transfer of a portion of the cash value of an annuity contract in exchange for the issuance of a second annuity contract. Rev. Proc. 2011-38 modified and superseded prior guidance that was contained in Rev. Proc. 2008-24. A direct transfer that satisfies the revenue procedure will be treated as a tax-free exchange under Section 1035 of the Code if, for a period of at least 180 days from the date of the direct transfer, there are no distributions or surrenders from either annuity contract involved in the exchange. In addition, the 180-day period will be deemed to have been satisfied with
104

respect to amounts received as an annuity for a period of 10 years or more, or as an annuity for the life of one or more persons. The taxation of distributions (other than distributions described in the immediately preceding sentence) received from either contract within the 180-day period will be determined using general tax principles to determine the substance of those payments. For example, they could be treated as taxable "boot" in an otherwise tax-free exchange, or as a distribution from the new contract. Rev. Proc. 2011-38 also removed numerous exceptions to the 180-day waiting period that Rev. Proc. 2008-11 provided for in its 12-month waiting period. Please discuss any tax consequences concerning any contemplated or completed transactions with a professional tax advisor.
Same-Sex Marriages, Domestic Partnership, and Other Similar Relationships
In US. v. Windsor, the United States Supreme Court declared Section 3 of the Defense of Marriage Act to be unconstitutional and concluded that same sex marriages, in states that recognize them, are to be accorded the same federal benefits, rights and obligations as other marriages recognized by that state.
Revenue Ruling 2013-17 declared that the terms "spouse," "husband and wife," "husband" and "wife" do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state. Therefore, the favorable income-deferral options afforded by federal tax law to a married spouse under Code Sections 72 and 401(a)(9) are not available to individuals who have entered into a domestic partnership, civil union or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state.
Withholding
Pre-death distributions from the contracts are subject to federal income tax. Nationwide is required to withhold the tax from the distributions unless the contract owner requests otherwise. Under some circumstances, the Code will not permit contract owners to waive withholding. Such circumstances include:
• if the payee does not provide Nationwide with a taxpayer identification number; or
• if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect.
If a contract owner is prohibited from waiving withholding, as described above, the distribution will be subject to withholding rates established by Section 3405 of the Code and is applied against the amount of income that is distributed.
If the distribution is from a Tax Sheltered Annuity, it will be subject to mandatory 20% withholding that cannot be waived, unless:
• the distribution is made directly to another Tax Sheltered Annuity, qualified pension or profit-sharing plan described in Section 401(a), an eligible deferred compensation plan described in Section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A) or individual retirement plan; or
• the distribution satisfies the minimum distribution requirements imposed by the Code.
Non-Resident Aliens
Generally, a pre-death distribution from a contract to a non-resident alien is subject to federal income tax at a rate of 30% of the amount of income that is distributed.
Nationwide is required to withhold this amount and send it to the Internal Revenue Service. Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies. In order to obtain the benefits of such a treaty, the non-resident alien must:
(1) provide Nationwide with a properly completed withholding certificate claiming the treaty benefit of a lower tax rate or exemption from tax; and
(2) provide Nationwide with an individual taxpayer identification number.
If the non-resident alien does not meet the above conditions, Nationwide will withhold 30% of income from the distribution.
Another exemption from the 30% withholding rate is for the non-resident alien to provide Nationwide with sufficient evidence that:
(1) the distribution is connected to the non-resident alien's conduct of business in the United States;
(2) the distribution is includable in the non-resident alien's gross income for United States federal income tax purposes; and
(3) provide Nationwide with a properly completed withholding certificate claiming the exemption.
Note that for the preceding exemption, the distributions would be subject to the same withholding rules that are applicable to payments to United States persons.
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This prospectus does not address any tax matters that may arise by reason of application of the laws of a non-resident alien's country of citizenship and/or country of residence. Purchasers and prospective purchasers should consult a financial consultant, tax advisor or legal counsel to discuss the applicability of laws of those jurisdictions to the purchase or ownership of a contract.
Federal Estate, Gift and Generation Skipping Transfer Taxes
The following transfers may be considered a gift for federal gift tax purposes:
• a transfer of the contract from one contract owner to another; or
• a distribution to someone other than a contract owner.
Upon the contract owner's death, the value of the contract may be subject to estate taxes, even if all or a portion of the value is also subject to federal income taxes.
Section 2612 of the Code may require Nationwide to determine whether a death benefit or other distribution is a "direct skip" and the amount of the resulting generation skipping transfer tax, if any. A direct skip is when property is transferred to, or a death benefit or other distribution is made to:
a) an individual who is two or more generations younger than the contract owner; or
b) certain trusts, as described in Section 2613 of the Code (generally, trusts that have no beneficiaries who are not two or more generations younger than the contract owner).
If the contract owner is not an individual, then for this purpose only, "contract owner" refers to any person:
• who would be required to include the contract, death benefit, distribution, or other payment in his or her federal gross estate at his or her death; or
• who is required to report the transfer of the contract, death benefit, distribution, or other payment for federal gift tax purposes.
If a payment is subject to the generation skipping transfer tax, Nationwide may be required to deduct the amount of the transfer tax from the death benefit, distribution or other payment, and remit it directly to the Internal Revenue Service.
Charge for Tax
Nationwide is not required to maintain a capital gain reserve liability on non-qualified contracts. If tax laws change requiring a reserve, Nationwide may implement and adjust a tax charge.
Diversification
Code Section 817(h) contains rules on diversification requirements for variable annuity contracts. A variable annuity contract that does not meet these diversification requirements will not be treated as an annuity, unless:
• the failure to diversify was accidental;
• the failure is corrected; and
• a fine is paid to the Internal Revenue Service.
The amount of the fine will be the amount of tax that would have been paid by the contract owner if the income, for the period the contract was not diversified, had been received by the contract owner.
If the violation is not corrected, the contract owner will be considered the owner of the underlying securities and will be taxed on the earnings of his or her contract. Nationwide believes that the investments underlying this contract meet these diversification requirements.
Required Distributions
The Code requires that certain distributions be made from the contracts issued in conjunction with this prospectus. Following is an overview of the required distribution rules applicable to each type of contract. Consult a qualified tax or financial advisor for more specific required distribution information.
Required Distributions – General Information
In general, a beneficiary is an individual or other entity that the contract owner designates to receive death proceeds upon the contract owner's death. The distribution rules in the Code make a distinction between "beneficiary" and "designated beneficiary" when determining the life expectancy that may be used for payments that are made from IRAs, SEP IRAs, Simple IRAs, Roth IRAs and Tax Sheltered Annuities after the death of the contract owner, or that are made from non-qualified contracts after the death of the contract owner. A designated beneficiary is a natural person who is designated by the contract owner as the beneficiary under the contract. Non-natural beneficiaries (e.g. charities or certain trusts) are not designated beneficiaries for the purpose of required distributions and the life expectancy of such a beneficiary is zero.
106

Life expectancies and joint life expectancies will be determined in accordance with the relevant guidance provided by the Internal Revenue Service and the Treasury Department, including but not limited to Treasury Regulation 1.72-9 and Treasury Regulation 1.401(a)(9)-9.
Required distributions paid upon the death of the contract owner are paid to the beneficiary or beneficiaries stipulated by the contract owner. How quickly the distributions must be made may be determined with respect to the life expectancies of the beneficiaries. For non-qualified contracts, the beneficiaries used in the determination of the distribution period are those in effect on the date of the contract owner's death. For contracts other than non-qualified contracts, the beneficiaries used in the determination of the distribution period do not have to be determined until September 30 of the year following the contract owner's death. If there is more than one beneficiary, the life expectancy of the beneficiary with the shortest life expectancy is used to determine the distribution period. Any beneficiary that is not a designated beneficiary has a life expectancy of zero.
Required Distributions for Non-Qualified Contracts
Code Section 72(s) requires Nationwide to make certain distributions when a contract owner dies. The following distributions will be made in accordance with the following requirements:
(1) If any contract owner dies on or after the annuitization date and before the entire interest in the contract has been distributed, then the remaining interest must be distributed at least as rapidly as the distribution method in effect on the contract owner's death.
(2) If any contract owner dies before the annuitization date, then the entire interest in the contract (consisting of either the death benefit or the contract value reduced by charges set forth elsewhere in the contract) must be distributed within five years of the contract owner's death, provided however:
(a) any interest payable to or for the benefit of a designated beneficiary may be distributed over the life of the designated beneficiary or over a period not longer than the life expectancy of the designated beneficiary. Payments must begin within one year of the contract owner's death unless otherwise permitted by federal income tax regulations; and
(b) if the designated beneficiary is the surviving spouse of the deceased contract owner, the spouse can choose to become the contract owner instead of receiving a death benefit. Any distributions required under these distribution rules will be made upon that spouse's death.
In the event that the contract owner is not a natural person (e.g., a trust or corporation), but is acting as an agent for a natural person, for purposes of these distribution provisions:
(a) the death of the annuitant will be treated as the death of a contract owner;
(b) any change of annuitant will be treated as the death of a contract owner; and
(c) in either case, the appropriate distribution will be made upon the death or change, as the case may be.
These distribution provisions do not apply to any contract exempt from Section 72(s) of the Code by reason of Section 72(s)(5) or any other law or rule.
Required Distributions for Tax Sheltered Annuities, IRAs and Roth IRAs
Distributions from a Tax Sheltered Annuity or IRA must begin no later than April 1 of the calendar year following the calendar year in which the contract owner reaches age 70½. Distributions may be paid in a lump sum or in substantially equal payments over:
(a) the life of the contract owner or the joint lives of the contract owner and the contract owner's designated beneficiary; or
(b) a period not longer than the period determined under the table in Treasury Regulation 1.401(a)(9)-9, which is the deemed joint life expectancy of the contract owner and a person 10 years younger than the contract owner. If the designated beneficiary is the spouse of the contract owner, the period may not exceed the longer of the period determined under such table or the joint life expectancy of the contract owner and the contract owner's spouse, determined in accordance with Treasury Regulation 1.72-9, or such additional guidance as may be provided pursuant to Treasury Regulation 1.401(a)(9)-9.
For Tax Sheltered Annuities, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another Tax Sheltered Annuity of the contract owner.
For IRAs, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another IRA of the contract owner.
107

If the contract owner's entire interest in a Tax Sheltered Annuity or IRA will be distributed in equal or substantially equal payments over a period described in (a) or (b) above, the payments must begin on or before the required beginning date. The required beginning date is April 1 of the calendar year following the calendar year in which the contract owner reaches age 70½. The rules for Roth IRAs do not require distributions to begin during the contract owner's lifetime, therefore, the required beginning date is not applicable to Roth IRAs.
Due to recent changes in Treasury Regulations, the amount used to compute the minimum distribution requirement may exceed the contract value.
If the contract owner dies before the required beginning date (in the case of a Tax Sheltered Annuity or IRA) or before the entire contract value is distributed (in the case of Roth IRAs), any remaining interest in the contract must be distributed by December 31 of the fifth year following the contract owner's death or over a period not exceeding the applicable distribution period, which is determined as follows:
(a) if the designated beneficiary is the contract owner's spouse, the applicable distribution period is the surviving spouse's remaining life expectancy using the surviving spouse's birthday for each distribution calendar year after the calendar year of the contract owner's death. For calendar years after the death of the contract owner's surviving spouse, the applicable distribution period is the spouse's remaining life expectancy using the spouse's age in the calendar year of the spouse's death, reduced by one for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse's death. Such distributions must begin on or before the later of (a) the end of the calendar year immediately following the calendar year in which the contract owner died; or (b) the end of the calendar year in which the contract owner would have attained 70½;
(b) if the designated beneficiary is not the contract owner's surviving spouse, the applicable distribution period is the designated beneficiary's remaining life expectancy using the designated beneficiary's birthday in the calendar year immediately following the calendar year of the contract owner's death, reduced by one for each calendar year that elapsed thereafter. Such distributions must begin on or before the end of the calendar year immediately following the calendar year in which the contract owner died; and
(c) if there is no designated beneficiary, the entire balance of the contract must be distributed by December 31 of the fifth year following the contract owner's death.
If the contract owner dies on or after the required beginning date, the interest in the Tax Sheltered Annuity or IRA must be distributed over a period not exceeding the applicable distribution period, which is determined as follows:
(a) if the designated beneficiary is the contract owner's spouse, the applicable distribution period is the surviving spouse's remaining life expectancy using the surviving spouse's birthday for each distribution calendar year after the calendar year of the contract owner's death. For calendar years after the death of the contract owner's surviving spouse, the applicable distribution period is the greater of (a) the contract owner's remaining life expectancy using the contract owner's birthday in the calendar year of the contract owner's death, reduced by one for each year thereafter; or (b) the spouse's remaining life expectancy using the spouse's age in the calendar year of the spouse's death, reduced by one for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse's death;
(b) if the designated beneficiary is not the contract owner's surviving spouse, the applicable distribution period is the greater of (a) the contract owner's remaining life expectancy using the contract owner's birthday in the calendar year of the contract owner's death, reduced by one for each year thereafter; or (b) the designated beneficiary's remaining life expectancy using the designated beneficiary's birthday in the calendar year immediately following the calendar year of the contract owner's death, reduced by one for each calendar year that elapsed thereafter; and
(c) if there is no designated beneficiary, the applicable distribution period is the contract owner's remaining life expectancy using the contract owner's birthday in the calendar year of the contract owner's death, reduced by one for each year thereafter.
If distribution requirements are not met, a penalty tax of 50% is levied on the difference between the amount that should have been distributed for that year and the amount that actually was distributed for that year.
For IRAs, all or a portion of each distribution will be included in the recipient's gross income and taxed at ordinary income tax rates. The portion of a distribution that is taxable is based on the ratio between the amount by which non-deductible purchase payments exceed prior non-taxable distributions and total account balances at the time of the distribution. The owner of an IRA must annually report the amount of non-deductible purchase payments, the amount of any distribution, the amount by which non-deductible purchase payments for all years exceed non taxable distributions for all years, and the total balance of all IRAs.
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Distributions from Roth IRAs may be either taxable or nontaxable, depending upon whether they are "qualified distributions" or "non-qualified distributions."
Additional Medicare Tax
Effective January 1, 2013, Section 1411 of the Code imposes a surtax of 3.8% on certain net investment income received by individuals and certain trusts and estates. The surtax is imposed on the lesser of (a) net investment income or (b) the excess of the modified adjusted gross income over a threshold amount. For individuals, the threshold amount is $250,000 (married filing jointly, or qualifying widow(er) with dependent child); $125,000 (married filing separately); or $200,000 (single, or head of household (with qualifying person)). The threshold for an estate or trust that is subject to the surtax is generally equal to the dollar amount at which the highest tax bracket under Code Section 1(e) begins for the taxable year. For 2013, that amount is $11,950.
Modified adjusted gross income is equal to gross income with several modifications; consult with a qualified tax advisor regarding how to determine modified adjusted gross income for purposes of determining the applicability of the surtax.
Net investment income includes, but is not limited to, interest, dividends, capital gains, rent and royalty income, and income from nonqualified annuities. It may also include taxable distributions from, and gain from the sale or surrender of, life insurance contracts. Net investment income does not include, among other things, distributions from certain qualified plans (such as IRAs, Roth IRAs, and plans described in Code Sections 401(a), 401(k), 403(a), 403(b) or 457(b)); however, such distributions, to the extent that they are includible in income for federal income tax purposes, are includible in modified adjusted gross income.
Tax Changes
The foregoing tax information is based on Nationwide's understanding of federal tax laws. It is NOT intended as tax advice. All information is subject to change without notice. You should consult with your personal tax and/or financial advisor for more information.
In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) was enacted. EGTRRA made numerous changes to the Code, including the following:
• generally lowering federal income tax rates;
• increasing the amounts that may be contributed to various retirement plans, such as individual retirement plans, Tax Sheltered Annuities, and Qualified Plans;
• increasing the portability of various retirement plans by permitting individual retirement plans, Tax Sheltered Annuities, Qualified Plans and certain governmental 457 plans to "roll" money from one plan to another;
• eliminating and/or reducing the highest federal estate tax rates;
• increasing the estate tax credit; and
• for persons dying after 2009, repealing the estate tax.
In 2006, the Pension Protection Act of 2006 made permanent the EGTRRA provisions noted above that increase the amounts that may be contributed to various retirement plans and that increase the portability of various retirement plans. However, all of the other changes resulting from EGTRRA were scheduled to "sunset," or become ineffective, after December 31, 2010 unless they were extended by additional legislation. The American Taxpayer Relief Act (ATRA) was enacted on January 1, 2013 and made permanent the lower federal income tax rates established under EGTRRA, except for individuals with taxable income above $400,000 ($450,000 for married couples) whose tax rate will revert to the pre-EGTRRA tax rate of 39.6%. ATRA also permanently provides for a maximum federal estate tax rate of 40% with an annually inflation-adjusted $5 million exclusion for estates of persons dying after December 31, 2012. Consult a qualified tax or financial advisor for further information relating to these and other tax issues.
State Taxation
The tax rules across the various states and localities are not uniform and therefore are not discussed in this prospectus. Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed. Purchasers and prospective purchasers should consult a financial consultant, tax advisor or legal counsel to discuss the taxation and use of the contracts.
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STATEMENT OF ADDITIONAL INFORMATION
May 1, 2014
Individual Single Premium Immediate Fixed and Variable Annuity Contracts
Issued by Nationwide Life Insurance Company
through its Nationwide Variable Account-9
This Statement of Additional Information is not a prospectus. It contains information in addition to and more detailed than set forth in the prospectus and should be read in conjunction with the prospectus dated May 1, 2014. The prospectus may be obtained from Nationwide Life Insurance Company by writing P.O. Box 182021, Columbus, Ohio 43218-2021 or calling 1-800-848-6331, TDD 1-800-238-3035. Capitalized terms in this Statement of Additional Information correspond to terms defined in the prospectus.
TABLE OF CONTENTS

General Information and History
Nationwide Variable Account-9 (the "Variable Account") is a separate investment account of Nationwide Life Insurance Company ("Nationwide"). Nationwide is a stock life insurance company organized under the laws of the State of Ohio in March of 1929 with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide provides life insurance, annuities and retirement products. Nationwide is admitted to do business in all states, the District of Columbia and Puerto Rico. Nationwide is a member of the Nationwide group of companies and all of its common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. Nationwide Corporation owns all of NFS's common stock and is a holding company, as well. All of Nationwide Corporation's common stock is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), the ultimate controlling persons of the Nationwide group of companies. The Nationwide group of companies is one of America's largest insurance and financial services family of companies, with combined assets of over $183.1 billion as of December 31, 2013.
Services
Nationwide, which has responsibility for administration of the contracts and the Variable Account, maintains records of the name, address, taxpayer identification number, and other pertinent information for each Contract Owner, the number and type of contract issued to each Contract Owner, and records with respect to the Contract Value.
The custodian of the assets of the Variable Account is Nationwide. Nationwide will maintain a record of all purchases and redemptions of shares of the underlying mutual funds. Nationwide or its affiliates may have entered into agreements with the underlying mutual funds and/or their affiliates. The agreements relate to services furnished by Nationwide or an affiliate of Nationwide. Some of the services provided include distribution of underlying fund prospectuses, semi-annual and annual fund reports, proxy materials, and fund communications, as well as maintaining the websites and voice response systems necessary for Contract Owners to execute trades in the funds. Nationwide also acts as a limited agent for each underlying mutual fund for purposes of accepting the trades. See Underlying Mutual Fund Payments located in the prospectus.
Distribution, Promotional, and Sales Expenses
In addition to or partially in lieu of commission, Nationwide may pay the selling firms a marketing allowance, which is based on the firm's ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities, such as training and education, that may contribute to the promotion and marketing of Nationwide's products. Nationwide makes certain assumptions about the amount of marketing allowance it will pay and takes these assumptions into consideration when it determines the charges that will be assessed under the contracts. For the contracts described in the prospectus, Nationwide assumed 0.75% (of the purchase payment amount) for marketing allowance when determining the charges for the contracts. The actual amount of the marketing allowance may be higher or lower than this assumption. If the actual amount of marketing allowance paid is more than what was assumed, Nationwide will fund the difference. Nationwide generally does not profit from any excess marketing allowance if the amount assumed was higher than what is actually paid. Any excess would be spent on additional marketing for the contracts. For more information about marketing allowance or how a particular selling firm uses marketing allowances, consult with your registered representative.
Independent Registered Public Accounting Firm
The financial statements of Nationwide Variable Account-9 and the consolidated financial statements and schedules of Nationwide Life Insurance Company for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP is located at 191 West Nationwide Blvd., Suite 500, Columbus, Ohio 43215.
Purchase of Securities Being Offered
The contracts will be sold by licensed insurance agents in the states where the contracts may be lawfully sold. Such agents will be registered representatives of broker-dealers registered under the Securities Exchange Act of 1934 who are members of the Financial Industry Regulatory Authority (FINRA).
2

Underwriters
The contracts, which are offered continuously, are distributed by Nationwide Investment Services Corporation ("NISC"), One Nationwide Plaza, Columbus, Ohio 43215, a wholly owned subsidiary of Nationwide. For contracts issued in Michigan, all references to NISC will mean Nationwide Investment Svcs. Corporation. No underwriting commissions have been paid by Nationwide to NISC for each of this Variable Account's last three fiscal years.
Advertising
Money Market Yields
Nationwide may advertise the "yield" and "effective yield" for the money market Sub-Account. Yield and effective yield are annualized, which means that it is assumed that the underlying mutual fund generates the same level of net income throughout a year.
Yield is a measure of the net dividend and interest income earned over a specific seven-day period (which period will be stated in the advertisement) expressed as a percentage of the offering price of the underlying mutual fund's units. The effective yield is calculated similarly, but reflects assumed compounding, calculated under rules prescribed by the SEC. Thus, effective yield will be slightly higher than yield, due to the compounding.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the Sub-Accounts in accordance with SEC prescribed calculations. Performance information is annualized. However, if a Sub-Account has been available in the Variable Account for less than one year, the performance information for that Sub-Account is not annualized.
Performance information is based on historical earnings and is not intended to predict or project future results.
Standardized performance will reflect the maximum Variable Account charges possible under the contract. Non-standardized performance, which will be accompanied by standardized performance, will reflect other expense structures contemplated under the contract. The expense assumptions will be stated in the advertisement.
Additional Materials
Nationwide may provide information on various topics to owners and prospective purchasers in advertising, sales literature, or other materials.
Performance Comparisons
Each Sub-Account may, from time to time, include in advertisements the ranking of its performance figures compared with performance figures of other annuity contracts' Sub-Accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services.
Annuity Payments
See Annuitizing the Contract located in the prospectus.
3

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and Subsidiaries and

Contract Owners of Nationwide Variable Account-9:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account-9 (comprised of the sub-accounts listed in note 1(b), (collectively, “the Accounts”)) as of December 31, 2013, and the related statements of operations for the period then ended, the statements of changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2013, the results of their operations for the period then ended, the changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

 

/s/ KPMG LLP

Columbus, Ohio

March 13, 2014

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

Assets:

   

Investments at fair value:

   

VPS Dynamic Asset Allocation Portfolio - Class B (ALVDAB)

   

34,589 shares (cost $383,982)

    $ 403,995   

Variable Insurance Funds - Equity Income VIF (BBGI)

   

46,000 shares (cost $377,336)

      483,001   

Global Allocation V.I. Fund - Class III (MLVGA3)

   

2,899,215 shares (cost $41,757,412)

      45,169,776   

VIP Small Cap Value Series: Service Class (DWVSVS)

   

11,782 shares (cost $446,029)

      489,913   

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

   

8,047,841 shares (cost $227,978,509)

        328,673,832   

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

   

984,603 shares (cost $25,797,130)

      43,401,283   

Socially Responsible Growth Fund Inc - Service Shares (DSRGS)

   

1,814 shares (cost $46,426)

      79,368   

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

   

16,945 shares (cost $192,422)

      194,361   

VA International Equity Fund (HVIE)

   

7,531 shares (cost $115,162)

      129,909   

VA Situs Fund (HVSIT)

   

52,350 shares (cost $1,060,106)

      1,253,778   

V.I. Mid Cap Core Equity - Series II Shares (IVMCC2)

   

23,036 shares (cost $318,596)

      344,393   

Van Kampen V.I. Mid Cap Growth Fund - Series II Shares (IVKMG2)

   

263,013 shares (cost $1,102,895)

      1,401,859   

Mid Cap Value Portfolio: Class 1 (JPMMV1)

   

1,882,970 shares (cost $13,663,461)

      19,902,988   

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

   

2,630 shares (cost $70,078)

      83,414   

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

   

1,845,279 shares (cost $65,620,013)

      96,692,613   

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

   

3,849,860 shares (cost $20,966,062)

      32,107,835   

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

   

2,117,090 shares (cost $84,986,523)

      86,631,304   

Investors Growth Stock Series - Service Class (MIGSC)

   

13,202 shares (cost $130,500)

      197,497   

Mid Cap Growth Series - Service Class (MMCGSC)

   

143,998 shares (cost $809,978)

      1,255,658   

New Discovery Series - Service Class (MNDSC)

   

188,892 shares (cost $3,303,411)

      3,970,519   

Value Series - Service Class (MVFSC)

   

2,158,761 shares (cost $28,529,003)

      41,081,230   

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

   

635,693 shares (cost $11,126,674)

      13,718,245   

Core Plus Fixed Income Portfolio - Class I (MSVFI)

   

196,823 shares (cost $2,104,979)

      2,009,559   

Core Plus Fixed Income Portfolio - Class II (MSVF2)

   

79,261 shares (cost $799,398)

      807,671   

Emerging Markets Debt Portfolio - Class I (MSEM)

   

892,421 shares (cost $6,947,268)

      7,335,702   

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

   

3,313 shares (cost $34,261)

      47,742   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

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

   

57,508 shares (cost $572,098)

    $ 905,180   

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

   

7,536,253 shares (cost $107,208,588)

        146,127,946   

American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)

   

137,952 shares (cost $1,966,743)

      2,665,225   

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

   

2,056,040 shares (cost $35,776,271)

      49,303,829   

American Funds NVIT Bond Fund - Class II (GVABD2)

   

1,389,823 shares (cost $15,229,918)

      15,593,814   

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

   

824,367 shares (cost $17,055,408)

      25,093,740   

American Funds NVIT Growth Fund - Class II (GVAGR2)

   

574,676 shares (cost $28,246,261)

      44,893,682   

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

   

359,479 shares (cost $13,545,034)

      19,580,806   

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

   

3,307,731 shares (cost $22,054,016)

      22,856,419   

Federated NVIT High Income Bond Fund - Class III (HIBF3)

   

4,109,938 shares (cost $28,257,740)

      28,358,572   

NVIT Emerging Markets Fund - Class I (GEM)

   

81,942 shares (cost $909,726)

      966,912   

NVIT Emerging Markets Fund - Class III (GEM3)

   

2,097,410 shares (cost $22,420,119)

      24,707,489   

NVIT Emerging Markets Fund - Class VI (GEM6)

   

36,122 shares (cost $406,389)

      423,717   

NVIT International Equity Fund - Class I (GIG)

   

521,827 shares (cost $4,645,044)

      5,609,636   

NVIT International Equity Fund - Class III (GIG3)

   

1,803,983 shares (cost $14,709,685)

      19,410,860   

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

   

6,023 shares (cost $52,517)

      64,383   

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

   

6,622,275 shares (cost $54,119,514)

      75,493,938   

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

   

396,457 shares (cost $4,769,797)

      5,978,574   

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

   

296,663 shares (cost $2,736,552)

      3,310,756   

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

   

961,797 shares (cost $10,190,778)

      11,454,996   

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

   

554,576 shares (cost $5,627,644)

      6,776,923   

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

   

733,284 shares (cost $7,713,572)

      7,963,459   

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

   

1,918,065 shares (cost $19,964,459)

      23,112,679   

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

   

749,634 shares (cost $7,409,803)

      8,898,154   

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

   

758,867 shares (cost $7,927,078)

      8,780,093   

NVIT Core Bond Fund - Class I (NVCBD1)

   

540,834 shares (cost $6,131,072)

      5,781,517   

NVIT Core Bond Fund - Class II (NVCBD2)

   

64,807 shares (cost $701,142)

      690,842   

NVIT Core Plus Bond Fund - Class II (NVLCP2)

   

468,031 shares (cost $5,448,678)

      5,209,190   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

NVIT Nationwide Fund - Class I (TRF)

   

8,788,355 shares (cost $89,748,914)

    $     115,918,403   

NVIT Nationwide Fund - Class II (TRF2)

   

35,662 shares (cost $278,471)

      468,599   

NVIT Government Bond Fund - Class I (GBF)

   

13,687,638 shares (cost $162,044,214)

      147,826,495   

NVIT Government Bond Fund - Class II (GBF2)

   

321,308 shares (cost $3,755,808)

      3,460,487   

American Century NVIT Growth Fund - Class I (CAF)

   

1,561,278 shares (cost $20,080,528)

      31,397,296   

NVIT International Index Fund - Class VIII (GVIX8)

   

425,672 shares (cost $3,658,376)

      4,197,127   

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

   

3,722,473 shares (cost $33,234,429)

      46,605,366   

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

   

424,996 shares (cost $5,624,729)

      6,417,441   

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

   

96,985 shares (cost $1,501,979)

      1,694,322   

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

   

3,580,101 shares (cost $35,870,659)

      37,770,064   

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

   

16,455,696 shares (cost $159,525,071)

      212,607,596   

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

   

8,025,595 shares (cost $89,042,577)

      107,864,003   

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

   

5,164,187 shares (cost $52,809,605)

      60,885,768   

NVIT Mid Cap Index Fund - Class I (MCIF)

   

4,349,722 shares (cost $77,137,972)

      106,220,214   

NVIT Money Market Fund - Class I (SAM)

   

181,169,702 shares (cost $181,169,710)

      181,169,712   

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

   

16,067 shares (cost $171,042)

      194,092   

NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)

   

4,258,437 shares (cost $33,230,512)

      51,356,750   

NVIT Multi-Manager International Value Fund - Class III (GVDIV3)

   

822,691 shares (cost $7,909,347)

      9,518,534   

NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)

   

41,057 shares (cost $383,967)

      470,921   

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

   

2,113,942 shares (cost $21,403,142)

      27,777,195   

NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)

   

35,182 shares (cost $300,268)

      459,823   

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

   

820,737 shares (cost $8,344,497)

      9,783,182   

NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)

   

305,183 shares (cost $2,528,593)

      3,625,579   

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

   

6,926,500 shares (cost $58,760,693)

      95,308,643   

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

   

546,069 shares (cost $4,923,933)

      7,388,314   

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

   

5,163,821 shares (cost $47,581,274)

      68,368,991   

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

   

1,217,761 shares (cost $18,602,164)

      29,007,069   

NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)

   

15,059 shares (cost $201,537)

      347,874   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

   

6,940,574 shares (cost $71,976,499)

    $     114,103,034   

NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)

   

54,520 shares (cost $500,616)

      882,678   

NVIT Multi-Manager Small Company Fund - Class I (SCF)

   

3,980,356 shares (cost $67,586,826)

      109,618,993   

NVIT Multi-Manager Small Company Fund - Class II (SCF2)

   

69,053 shares (cost $1,013,847)

      1,848,545   

NVIT Multi-Sector Bond Fund - Class I (MSBF)

   

5,528,976 shares (cost $47,758,398)

      50,092,527   

NVIT Short Term Bond Fund - Class II (NVSTB2)

   

847,066 shares (cost $8,841,012)

      8,826,428   

NVIT Large Cap Growth Fund - Class I (NVOLG1)

   

17,868,561 shares (cost $272,113,170)

      419,732,508   

NVIT Large Cap Growth Fund - Class II (NVOLG2)

   

401,517 shares (cost $6,102,991)

      9,403,517   

Templeton NVIT International Value Fund - Class III (NVTIV3)

   

218,597 shares (cost $2,648,458)

      3,119,383   

Invesco NVIT Comstock Value Fund - Class I (EIF)

   

2,092,141 shares (cost $20,458,288)

      32,407,257   

NVIT Real Estate Fund - Class I (NVRE1)

   

9,175,382 shares (cost $71,139,479)

      81,752,650   

NVIT Cardinal(SM) Managed Growth Fund - Class II (NCPG2)

   

17,478 shares (cost $186,558)

      187,539   

NVIT Cardinal(SM) Managed Growth & Income Fund: Class II (NCPGI2)

   

21,426 shares (cost $216,105)

      227,114   

NVIT Investor Destinations Managed Growth Fund: Class II (IDPG2)

   

11,975 shares (cost $122,230)

      126,933   

NVIT Investor Destinations Managed Growth & Income Fund: Class II (IDPGI2)

   

3,140 shares (cost $32,217)

      32,975   

NVIT Small Cap Index Fund Class II (NVSIX2)

   

61,765 shares (cost $829,650)

      865,332   

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

   

146,671 shares (cost $1,761,719)

      1,881,793   

VPS Growth and Income Portfolio - Class B (ALVGIB)

   

44,379 shares (cost $797,701)

      1,219,985   

VPS Large Cap Growth Portfolio: Class B (ALVPGB)

   

25,657 shares (cost $622,630)

      1,067,831   

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)

   

363,147 shares (cost $6,881,317)

      8,257,955   

VP Income & Growth Fund - Class I (ACVIG)

   

6,998,292 shares (cost $46,494,813)

      64,174,334   

VP Income & Growth Fund - Class II (ACVIG2)

   

127,933 shares (cost $775,715)

      1,173,148   

American Century VP Inflation Protection Fund - Class II (ACVIP2)

   

4,092,449 shares (cost $46,741,676)

      42,766,097   

VP International Fund - Class I (ACVI)

   

174,989 shares (cost $1,412,965)

      1,879,385   

VP International Fund - Class III (ACVI3)

   

9,550 shares (cost $73,592)

      102,565   

VP Mid Cap Value Fund - Class I (ACVMV1)

   

851,250 shares (cost $12,277,337)

      15,722,586   

VP Mid Cap Value Fund - Class II (ACVMV2)

   

25,768 shares (cost $311,866)

      476,192   

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

   

1,267 shares (cost $13,336)

      18,651   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

VP Value Fund - Class I (ACVV)

   

267,120 shares (cost $1,395,601)

    $ 2,257,165   

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

   

1,660,824 shares (cost $19,764,377)

      30,891,324   

Appreciation Portfolio - Initial Shares (DCAP)

   

1,399,420 shares (cost $46,466,751)

      67,102,187   

Appreciation Portfolio - Service Shares (DCAPS)

   

23,792 shares (cost $766,449)

      1,134,633   

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

   

759 shares (cost $23,591)

      35,704   

International Value Portfolio - Initial Shares (DVIV)

   

791 shares (cost $8,290)

      9,347   

Managed Tail Risk Fund II: Service Shares (FCA2S)

   

37,724 shares (cost $226,367)

      266,706   

High Income Bond Fund II - Service Shares (FHIBS)

   

274,734 shares (cost $1,792,023)

      1,953,358   

Quality Bond Fund II - Primary Shares (FQB)

   

7,915,601 shares (cost $85,925,923)

      90,475,320   

Quality Bond Fund II - Service Shares (FQBS)

   

318,191 shares (cost $3,373,737)

      3,621,011   

VIP Value Strategies Portfolio - Service Class 2 (FVSS2)

   

46,987 shares (cost $357,815)

      679,438   

VIP Contrafund(R) Portfolio - Service Class (FCS)

   

416,118 shares (cost $10,928,760)

      14,247,895   

VIP Energy Portfolio - Service Class 2 (FNRS2)

   

720,203 shares (cost $14,938,268)

      17,162,441   

VIP Equity-Income Portfolio - Service Class (FEIS)

   

9,971,205 shares (cost $223,253,214)

        231,331,950   

VIP Equity-Income Portfolio - Service Class 2 (FEI2)

   

220,882 shares (cost $4,542,104)

      5,053,775   

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

   

867,333 shares (cost $9,525,366)

      10,659,518   

VIP Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)

   

5,111 shares (cost $52,973)

      62,556   

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

   

978,926 shares (cost $10,692,235)

      12,324,673   

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)

   

11,510 shares (cost $102,748)

      144,331   

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

   

637,511 shares (cost $6,927,112)

      8,172,896   

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)

   

26,001 shares (cost $268,328)

      332,290   

VIP Growth Opportunities Portfolio - Service Class (FGOS)

   

39,185 shares (cost $734,699)

      1,172,014   

VIP Growth Portfolio - Service Class (FGS)

   

3,070,536 shares (cost $100,978,268)

      175,020,537   

VIP Growth Portfolio - Service Class 2 (FG2)

   

47,247 shares (cost $1,799,589)

      2,672,782   

VIP High Income Portfolio - Service Class (FHIS)

   

6,811,517 shares (cost $35,291,761)

      39,302,452   

VIP High Income Portfolio - Service Class R (FHISR)

   

9,317,524 shares (cost $54,805,581)

      53,482,590   

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

   

3,571,806 shares (cost $46,000,715)

      43,718,906   

VIP Mid Cap Portfolio - Service Class (FMCS)

   

1,015,096 shares (cost $31,056,803)

      36,705,857   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

VIP Mid Cap Portfolio - Service Class 2 (FMC2)

   

184,201 shares (cost $5,206,075)

    $ 6,557,558   

VIP Overseas Portfolio - Service Class (FOS)

   

798,852 shares (cost $15,300,337)

          16,424,405   

VIP Overseas Portfolio - Service Class 2 R (FO2R)

   

136,671 shares (cost $2,273,388)

      2,768,962   

VIP Overseas Portfolio - Service Class R (FOSR)

   

1,352,193 shares (cost $24,071,029)

      27,747,001   

VIP Value Strategies Portfolio - Service Class (FVSS)

   

893,659 shares (cost $8,497,439)

      12,815,070   

Franklin Income Securities Fund - Class 2 (FTVIS2)

   

3,769,149 shares (cost $53,487,394)

      60,570,228   

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

   

28,479 shares (cost $564,516)

      786,578   

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

   

629,948 shares (cost $10,844,730)

      15,162,839   

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

   

613,346 shares (cost $6,190,864)

      6,207,057   

Templeton Foreign Securities Fund - Class 2 (TIF2)

   

1,611 shares (cost $22,818)

      27,781   

Templeton Foreign Securities Fund - Class 3 (TIF3)

   

558,313 shares (cost $8,004,127)

      9,591,819   

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

   

2,304,328 shares (cost $42,792,666)

      42,906,583   

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

   

816,909 shares (cost $6,255,307)

      6,061,465   

Short Duration Bond Portfolio - I Class Shares (AMTB)

   

2,432,206 shares (cost $26,900,470)

      26,219,184   

Guardian Portfolio - I Class Shares (AMGP)

   

8,671 shares (cost $131,152)

      231,420   

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

   

7,460 shares (cost $176,193)

      306,380   

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

   

3,073 shares (cost $34,815)

      46,211   

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

   

90,269 shares (cost $1,297,437)

      1,737,684   

Socially Responsive Portfolio - I Class Shares (AMSRS)

   

521,127 shares (cost $8,212,622)

      11,318,882   

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

   

57,498 shares (cost $2,330,594)

      3,328,013   

Global Securities Fund/VA - Class 3 (OVGS3)

   

2,053,615 shares (cost $61,008,209)

      84,506,257   

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

   

1,216,227 shares (cost $35,195,152)

      49,695,042   

Global Securities Fund/VA - Service Class (OVGSS)

   

37,736 shares (cost $1,039,680)

      1,527,185   

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

   

3,287,962 shares (cost $66,673,337)

      102,715,927   

Main Street Fund(R)/VA - Service Class (OVGIS)

   

86,368 shares (cost $1,841,530)

      2,676,547   

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

   

390,823 shares (cost $9,315,347)

      10,864,867   

Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)

   

6,333 shares (cost $98,933)

      174,347   

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

   

840,100 shares (cost $42,552,454)

      62,595,827   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

   

869,228 shares (cost $4,906,657)

    $ 4,676,448   

Global Strategic Income Fund/VA: Service Shares (OVSBS)

   

556,024 shares (cost $3,034,575)

      3,058,132   

All Asset Portfolio - Advisor Class (PMVAAD)

   

501,094 shares (cost $5,731,734)

      5,502,011   

Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)

   

478,157 shares (cost $5,723,848)

      5,135,409   

Low Duration Portfolio - Advisor Class (PMVLAD)

   

3,692,857 shares (cost $39,088,553)

          39,181,218   

Real Return Portfolio - Administrative Class (PMVRRA)

   

72,807 shares (cost $1,033,237)

      917,371   

Total Return Portfolio - Administrative Class (PMVTRA)

   

140,698 shares (cost $1,589,478)

      1,544,859   

Total Return Portfolio - Advisor Class (PMVTRD)

   

1,595,293 shares (cost $18,338,738)

      17,516,320   

Putnam VT Growth and Income Fund - Class IB (PVGIB)

   

568 shares (cost $10,983)

      13,573   

VI American Franchise Fund - Series II Shares (ACEG2)

   

66,380 shares (cost $2,686,980)

      3,291,131   

VI Comstock Fund - Series II Shares (ACC2)

   

351,458 shares (cost $4,303,492)

      6,213,769   

VI American Franchise Fund - Series I Shares (ACEG)

   

1,167 shares (cost $43,473)

      59,065   

Van Kampen V.I. Value Opportunities Fund: Series II Shares (AVBV2)

   

1 shares (cost $9)

      11   

VI Core Equity Fund - Series I Shares (AVGI)

   

1,543 shares (cost $41,793)

      59,287   

VI Core Equity Fund - Series II Shares (AVCE2)

   

16,218 shares (cost $379,433)

      616,782   

VI Equity and Income Fund - Series I Shares (IVKEI1)

   

17,528 shares (cost $278,694)

      325,669   

VI Global Health Care Fund - Series I Shares (IVHS)

   

10,761 shares (cost $233,976)

      315,515   

VI Global Real Estate Fund - Series I Shares (IVRE)

   

17,781 shares (cost $255,613)

      271,876   

Diversified Stock Fund Class A Shares (VYDS)

   

271,713 shares (cost $2,987,439)

      3,768,658   

Micro-Cap Portfolio - Investment Class (ROCMC)

   

55,089 shares (cost $573,005)

      706,790   

Variable Fund - Multi-Hedge Strategies (RVARS)

   

10,216 shares (cost $231,758)

      232,404   

SBL Fund - Series D (World Equity Income Series) (SBLD)

   

18,767 shares (cost $156,925)

      225,205   

SBL Fund - Series J (StylePlus Mid Growth Series) (SBLJ)

   

3,648 shares (cost $104,086)

      158,509   

Series N (Managed Asset Allocation Series) (SBLN)

   

10,777 shares (cost $241,492)

      279,442   

Series O (All Cap Value Series) (SBLO)

   

10,778 shares (cost $243,571)

      354,058   

Series P (High Yield Series) (SBLP)

   

8,931 shares (cost $268,051)

      294,909   

Series Q (Small Cap Value Series) (SBLQ)

   

18,093 shares (cost $655,814)

      949,135   

Series V (Mid Cap Value Series) (SBLV)

   

27,108 shares (cost $1,392,840)

      2,262,435   

SBL Fund - Series X (StylePlus Small Growth Series) (SBLX)

   

7,779 shares (cost $172,611)

      227,136   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

SBL Fund - Series Y (StylePlus Large Growth Series) (SBLY)

   

2,767 shares (cost $28,958)

    $ 37,416   

Health Sciences Portfolio - II (TRHS2)

   

1,464,115 shares (cost $34,110,268)

      43,630,631   

VIP Trust - Global Hard Assets Fund- Service Class (VWHAS)

   

144,255 shares (cost $4,178,609)

      4,407,000   

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

   

1,748,019 shares (cost $21,972,686)

      26,045,476   

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

   

812,378 shares (cost $24,523,119)

      25,500,552   

Variable Insurance Portfolios - Asset Strategy (WRASP)

   

13,785,587 shares (cost $128,114,086)

          182,639,722   

Variable Insurance Portfolios - Balanced (WRBP)

   

4,885,938 shares (cost $41,258,055)

      51,097,626   

Variable Insurance Portfolios - Bond (WRBDP)

   

12,725,702 shares (cost $69,650,364)

      69,856,468   

Variable Insurance Portfolios - Core Equity (WRCEP)

   

7,857,813 shares (cost $89,565,101)

      118,913,860   

Variable Insurance Portfolios - Dividend Opportunities (WRDIV)

   

1,910,686 shares (cost $13,319,348)

      17,280,625   

Variable Insurance Portfolios - Energy (WRENG)

   

877,424 shares (cost $5,319,274)

      6,584,012   

Variable Insurance Portfolios - Global Bond (WRGBP)

   

746,965 shares (cost $3,792,588)

      3,851,876   

Variable Insurance Portfolios - Global Natural Resources (WRGNR)

   

2,425,569 shares (cost $11,720,425)

      13,177,872   

Variable Insurance Portfolios - Growth (WRGP)

   

8,670,312 shares (cost $77,669,237)

      115,598,665   

Variable Insurance Portfolios - High Income (WRHIP)

   

22,580,448 shares (cost $75,209,040)

      90,229,214   

Variable Insurance Portfolios - International Growth (WRIP)

   

2,949,737 shares (cost $23,822,932)

      28,951,377   

Variable Insurance Portfolios - International Core Equity (WRI2P)

   

611,758 shares (cost $8,945,657)

      12,082,459   

Variable Insurance Portfolios - Limited-Term Bond (WRLTBP)

   

1,074,360 shares (cost $5,332,936)

      5,251,258   

Variable Insurance Portfolios - Micro Cap Growth (WRMIC)

   

166,867 shares (cost $3,393,438)

      5,302,221   

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

   

1,569,082 shares (cost $12,966,508)

      16,825,732   

Variable Insurance Portfolios - Money Market (WRMMP)

   

16,618,333 shares (cost $16,618,333)

      16,618,333   

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

   

860,675 shares (cost $4,867,731)

      6,800,621   

Variable Insurance Portfolios - Science and Technology (WRSTP)

   

3,138,946 shares (cost $50,700,830)

      83,445,431   

Variable Insurance Portfolios - Small Cap Growth (WRSCP)

   

3,881,220 shares (cost $37,819,378)

      53,393,561   

Variable Insurance Portfolios - Small Cap Value (WRSCV)

   

357,949 shares (cost $5,104,731)

      7,123,428   

Variable Insurance Portfolios - Value (WRVP)

   

6,192,571 shares (cost $36,930,965)

      48,399,896   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2013

 

Advantage VT Opportunity Fund - Class 2 (SVOF)

   

8,625 shares (cost $154,543)

    $ 225,546   

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

   

830,662 shares (cost $7,819,691)

      9,320,024   
  

 

 

  

Total Investments

    $ 6,214,271,364   
  

 

 

  

Other Accounts Receivable

      2,097   

Accounts Receivable-Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

      5,644   

Accounts Receivable-VP International Fund - Class III (ACVI3)

      36   

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

      13   

Accounts Receivable-VIP Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)

      2,070   

Accounts Receivable-VIP Growth Opportunities Portfolio - Service Class (FGOS)

      648   

Accounts Receivable-VIP Mid Cap Portfolio - Service Class 2 (FMC2)

      5,423   

Accounts Receivable-Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

      18   

Accounts Receivable-Total Return Portfolio - Administrative Class (PMVTRA)

      1,459   

Accounts Receivable-Series P (High Yield Series) (SBLP)

      82   

Accounts Receivable-Advantage VT Opportunity Fund - Class 2 (SVOF)

      2,036   

Accounts Payable-NVIT Core Bond Fund - Class I (NVCBD1)

      (9,539 ) 

Accounts Payable-Opportunistic Small Cap Portfolio: Initial Shares (DSC)

      (20 ) 

Accounts Payable-International Value Portfolio - Initial Shares (DVIV)

      (5 ) 

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

      (922 ) 

Accounts Payable-VI American Franchise Fund - Series I Shares (ACEG)

      (15 ) 

Accounts Payable-Van Kampen V.I. Value Opportunities Fund: Series II Shares (AVBV2)

      (11 ) 

Accounts Payable-VI Global Real Estate Fund - Series I Shares (IVRE)

      (117 ) 

Accounts Payable-Micro-Cap Portfolio - Investment Class (ROCMC)

      (235 ) 

Accounts Payable-SBL Fund - Series J (StylePlus Mid Growth Series) (SBLJ)

      (87 ) 

Accounts Payable-Series O (All Cap Value Series) (SBLO)

      (253 ) 

Accounts Payable-Series Q (Small Cap Value Series) (SBLQ)

      (346 ) 

Accounts Payable-SBL Fund - Series X (StylePlus Small Growth Series) (SBLX)

      (58 ) 

Accounts Payable-SBL Fund - Series Y (StylePlus Large Growth Series) (SBLY)

     

 

 (25

 

 ) 

 

  

 

 

  
   $     6,214,279,257   
  

 

 

  

Contract Owners’ Equity:

   

Accumulation units

      6,136,189,424   

Contracts in payout (annuitization) period (note 1f)

      78,089,833   
  

 

 

  

Total Contract Owners’ Equity (note 5)

    $ 6,214,279,257   
  

 

 

  

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    Total     ALVDAB     BBGI     MLVGA3     DWVSVS     DSIF     DSRG     DSRGS  

Reinvested dividends

    $ 91,470,363        915        7,055        461,190        -            5,638,060        512,449        795   

Mortality and expense risk charges (note 2)

      (68,686,935 )      (2,667 )      (7,228 )      (485,750 )      (2,051 )      (3,405,338 )      (439,415 )      (1,278 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      22,783,428        (1,752 )      (173 )      (24,560 )      (2,051 )      2,232,722        73,034        (483 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      209,339,515        3,380        51,327        623,791        2,749        10,814,372        2,263,903        3,714   

Change in unrealized gain (loss) on investments

      836,511,835        19,183        49,484        2,672,751        43,884        65,826,300        9,115,095        17,090   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,045,851,350        22,563        100,811        3,296,542        46,633        76,640,672        11,378,998        20,804   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      98,662,566        1,262        -            1,822,827        -            3,407,590        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,167,297,344        22,073        100,638        5,094,809        44,582        82,280,984        11,452,032        20,321   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    GVGMNS     HVIE     HVSIT     IVMCC2     IVKMG2     JPMMV1     JABS     JACAS  

Reinvested dividends

    $ 86        1,769        3,455        1,717        3,019        189,239        1,677        533,944   

Mortality and expense risk charges (note 2)

      (1,576 )      (1,382 )      (13,009 )      (2,825 )      (15,955 )      (210,305 )      (1,029 )      (1,031,292 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (1,490 )      387        (9,554 )      (1,108 )      (12,936 )      (21,066 )      648        (497,348 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,693        12,530        152,379        3,796        81,993        2,383,537        1,051        2,642,226   

Change in unrealized gain (loss) on investments

      1,887        12,204        139,776        25,700        312,621        2,238,584        8,087        21,519,702   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      3,580        24,734        292,155        29,496        394,614        4,622,121        9,138        24,161,928   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      4,696        -            -            23,874        -            203,361        3,891        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 6,786        25,121        282,601        52,262        381,678        4,804,416        13,677        23,664,580   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    JAGTS     JAIGS     MIGSC     MMCGSC     MNDSC     MVFSC     MVIVSC     MSVFI  

Reinvested dividends

    $ -            2,644,016        783        -            -            370,533        148,580        91,907   

Mortality and expense risk charges (note 2)

      (324,002 )      (969,038 )      (2,369 )      (21,849 )      (43,770 )      (427,543 )      (120,969 )      (29,924 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (324,002 )      1,674,978        (1,586 )      (21,849 )      (43,770 )      (57,010 )      27,611        61,983   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      3,010,926        (2,171,098 )      8,169        18,585        351,829        3,259,462        421,554        49,217   

Change in unrealized gain (loss) on investments

      5,976,110        10,991,476        33,063        351,521        664,417        7,482,688        1,858,865        (178,767 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      8,987,036        8,820,378        41,232        370,106        1,016,246        10,742,150        2,280,419        (129,550 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            5,885        4,591        34,640        113,698        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 8,663,034        10,495,356        45,531        352,848        1,007,116        10,798,838        2,308,030        (67,567 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    MSVF2     MSEM     MSVMG     MSVRE     NVAMV1     NVAMV2     GVAAA2     GVABD2  

Reinvested dividends

    $ 28,651        343,202        152        10,466        2,557,349        42,107        568,664        292,912   

Mortality and expense risk charges (note 2)

      (15,821 )      (97,046 )      (854 )      (16,020 )      (1,610,531 )      (48,260 )      (509,233 )      (209,375 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      12,830        246,156        (702 )      (5,554 )      946,818        (6,153 )      59,431        83,537   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (7,231 )      133,700        4,493        80,860        5,245,373        115,708        839,987        805,306   

Change in unrealized gain (loss) on investments

      (26,625 )      (1,397,030 )      8,511        (68,483 )      28,304,589        506,909        7,244,164        (1,599,796 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (33,856 )      (1,263,330 )      13,004        12,377        33,549,962        622,617        8,084,151        (794,490 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            105,195        945        -            2,697,451        48,052        10,573        4,875   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (21,026 )      (911,979 )      13,247        6,823        37,194,231        664,516        8,154,155        (706,078 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    GVAGG2     GVAGR2     GVAGI2     HIBF     HIBF3     GEM     GEM3     GEM6  

Reinvested dividends

    $ 85,928        130,894        172,165        1,493,195        1,818,872        12,252        294,224        4,203   

Mortality and expense risk charges (note 2)

      (256,280 )      (470,451 )      (188,104 )      (274,300 )      (316,450 )      (11,624 )      (295,323 )      (8,578 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (170,352 )      (339,557 )      (15,939 )      1,218,895        1,502,422        628        (1,099 )      (4,375 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,050,542        2,447,300        707,914        (535,931 )      441,336        (14,768 )      2,455,460        42,188   

Change in unrealized gain (loss) on investments

      3,579,002        8,061,401        3,690,226        737,228        (310,837 )      8,866        (2,672,442 )      (42,135 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      5,629,544        10,508,701        4,398,140        201,297        130,499        (5,902 )      (216,982 )      53   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 5,459,192        10,169,144        4,382,201        1,420,192        1,632,921        (5,274 )      (218,081 )      (4,322 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    GIG     GIG3     NVIE6     NVNMO1     NVNSR1     NVCRA2     NVCRB2     NVCCA2  

Reinvested dividends

    $ 29,004        99,829        365        694,982        43,905        35,822        178,485        95,999   

Mortality and expense risk charges (note 2)

      (61,611 )      (213,234 )      (1,041 )      (773,925 )      (62,982 )      (30,574 )      (121,911 )      (72,461 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (32,607 )      (113,405 )      (676 )      (78,943 )      (19,077 )      5,248        56,574        23,538   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      108,585        1,107,891        10,232        3,718,968        672,203        72,896        225,919        251,710   

Change in unrealized gain (loss) on investments

      784,737        1,952,461        2,493        18,110,887        1,060,119        534,829        821,279        670,360   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      893,322        3,060,352        12,725        21,829,855        1,732,322        607,725        1,047,198        922,070   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            2,899,262        -            66,997        233,150        169,362   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 860,715        2,946,947        12,049        24,650,174        1,713,245        679,970        1,336,922        1,114,970   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    NVCCN2     NVCMD2     NVCMA2     NVCMC2     NVCBD1     NVCBD2     NVLCP2     TRF  

Reinvested dividends

    $ 147,737        350,183        121,426        145,976        142,877        16,844        88,368        1,420,115   

Mortality and expense risk charges (note 2)

      (104,608 )      (253,632 )      (106,005 )      (97,575 )      (84,353 )      (15,614 )      (69,061 )      (1,152,195 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      43,129        96,551        15,421        48,401        58,524        1,230        19,307        267,920   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      140,137        636,479        350,179        191,716        31,105        20,815        30,413        4,456,527   

Change in unrealized gain (loss) on investments

      (12,696 )      1,998,015        974,035        411,507        (417,690 )      (63,770 )      (379,754 )      23,465,035   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      127,441        2,634,494        1,324,214        603,223        (386,585 )      (42,955 )      (349,341 )      27,921,562   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      132,527        539,589        353,605        175,701        72,537        8,266        123,654        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 303,097        3,270,634        1,693,240        827,325        (255,524 )      (33,459 )      (206,380 )      28,189,482   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    TRF2     GBF     GBF2     CAF     GVIX8     GVIDA     NVDBL2     NVDCA2  

Reinvested dividends

    $ 4,671        3,082,325        62,501        192,782        105,473        709,580        102,680        26,679   

Mortality and expense risk charges (note 2)

      (8,457 )      (1,879,455 )      (71,835 )      (308,036 )      (40,082 )      (538,392 )      (62,647 )      (15,232 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (3,786 )      1,202,870        (9,334 )      (115,254 )      65,391        171,188        40,033        11,447   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      15,728        (1,502,888 )      (51,440 )      2,081,296        13,535        1,685,717        117,025        80,202   

Change in unrealized gain (loss) on investments

      100,703        (10,567,064 )      (230,808 )      5,378,537        601,658        8,185,369        446,098        104,784   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      116,431        (12,069,952 )      (282,248 )      7,459,833        615,193        9,871,086        563,123        184,986   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            1,860,134        44,758        -            -            -            52,924        22,851   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 112,645        (9,006,948 )      (246,824 )      7,344,579        680,584        10,042,274        656,080        219,284   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    GVIDC     GVIDM     GVDMA     GVDMC     MCIF     SAM     NVMIG1     NVMIG3  

Reinvested dividends

    $ 662,464        3,410,567        1,697,692        1,068,581        1,098,036        1        1,853        606,642   

Mortality and expense risk charges (note 2)

      (506,839 )      (2,566,431 )      (1,313,614 )      (791,129 )      (1,143,354 )      (2,285,835 )      (1,203 )      (544,991 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      155,625        844,136        384,078        277,452        (45,318 )      (2,285,834 )      650        61,651   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,410,612        (690,016 )      (1,040,704 )      146,556        3,099,266        2,719        7,544        2,364,611   

Change in unrealized gain (loss) on investments

      (693,654 )      29,702,227        20,377,081        4,435,192        21,750,573        185        17,458        6,638,618   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      716,958        29,012,211        19,336,377        4,581,748        24,849,839        2,904        25,002        9,003,229   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      593,385        -            -            784,191        2,585,430        -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,465,968        29,856,347        19,720,455        5,643,391        27,389,951        (2,282,930 )      25,652        9,064,880   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    GVDIV2     GVDIV3     GVDIV6     NVMLG1     NVMLG2     NVMLV1     NVMLV2     NVMMG1  

Reinvested dividends

    $ -            202,545        10,368        186,292        2,208        122,231        39,006        -       

Mortality and expense risk charges (note 2)

      (7 )      (106,142 )      (7,263 )      (278,823 )      (8,952 )      (95,587 )      (53,947 )      (973,483 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (7 )      96,403        3,105        (92,531 )      (6,744 )      26,644        (14,941 )      (973,483 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (689 )      (55,037 )      (12,894 )      1,561,348        55,888        875,426        160,736        6,540,293   

Change in unrealized gain (loss) on investments

      735        1,637,052        92,577        3,681,806        49,760        1,033,730        644,838        15,872,688   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      46        1,582,015        79,683        5,243,154        105,648        1,909,156        805,574        22,412,981   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            1,594,683        34,059        411,470        168,195        6,296,586   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 39        1,678,418        82,788        6,745,306        132,963        2,347,270        958,828        27,736,084   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    NVMMG2     NVMMV2     SCGF     SCGF2     SCVF     SCVF2     SCF     SCF2  

Reinvested dividends

    $ -            748,485        -            -            848,353        5,083        134,474        2,163   

Mortality and expense risk charges (note 2)

      (82,988 )      (746,063 )      (289,546 )      (6,308 )      (1,176,065 )      (15,088 )      (1,107,844 )      (31,880 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (82,988 )      2,422        (289,546 )      (6,308 )      (327,712 )      (10,005 )      (973,370 )      (29,717 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      375,338        4,110,043        4,781,175        22,217        2,316,792        75,812        (151,816 )      110,603   

Change in unrealized gain (loss) on investments

      1,220,839        11,592,126        2,986,216        82,910        32,228,768        197,855        34,389,528        479,634   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,596,177        15,702,169        7,767,391        105,127        34,545,560        273,667        34,237,712        590,237   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      486,322        2,959,602        1,479,517        18,489        -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,999,511        18,664,193        8,957,362        117,308        34,217,848        263,662        33,264,342        560,520   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    MSBF     NVSTB2     NVOLG1     NVOLG2     NVTIV3     EIF     NVRE1     NCPG2  

Reinvested dividends

    $ 1,800,519        97,858        2,953,618        44,409        54,195        -            1,276,670        72   

Mortality and expense risk charges (note 2)

      (645,157 )      (97,567 )      (4,318,462 )      (156,272 )      (33,776 )      (318,178 )      (1,008,108 )      (26 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,155,362        291        (1,364,844 )      (111,863 )      20,419        (318,178 )      268,562        46   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,251,573        71,552        16,963,567        395,132        (95,058 )      2,957,962        6,174,643        -       

Change in unrealized gain (loss) on investments

      (4,685,544 )      (151,823 )      101,875,169        2,263,967        563,105        5,342,002        (10,574,167 )      981   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (2,433,971 )      (80,271 )      118,838,736        2,659,099        468,047        8,299,964        (4,399,524 )      981   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            7,003        -            -            25,031        -            6,193,818        41   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (1,278,609 )      (72,977 )      117,473,892        2,547,236        513,497        7,981,786        2,062,856        1,068   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    NCPGI2     IDPG2     IDPGI2     NVSIX2     GVEX2     ALVGIB     ALVPGB     ALVSVB  

Reinvested dividends

    $ 3,584        1,938        511        9,463        30,579        14,410        -            36,046   

Mortality and expense risk charges (note 2)

      (1,235 )      (496 )      (179 )      (2,290 )      (8,408 )      (23,523 )      (17,457 )      (121,016 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,349        1,442        332        7,173        22,171        (9,113 )      (17,457 )      (84,970 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      39        9        954        1,384        47,937        (18,203 )      53,065        1,452,591   

Change in unrealized gain (loss) on investments

      11,009        4,703        758        35,682        120,073        382,524        255,816        747,551   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      11,048        4,712        1,712        37,066        168,010        364,321        308,881        2,200,142   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      1,942        144        102        -            -            -            -            492,490   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 15,339        6,298        2,146        44,239        190,181        355,208        291,424        2,607,662   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    ACVIG     ACVIG2     ACVIP2     ACVI     ACVI3     ACVMV1     ACVMV2     ACVU1  

Reinvested dividends

    $ 1,313,960        21,139        907,577        27,007        2,080        172,303        5,129        83   

Mortality and expense risk charges (note 2)

      (670,516 )      (20,948 )      (630,085 )      (18,499 )      (1,978 )      (157,338 )      (8,164 )      (280 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      643,444        191        277,492        8,508        102        14,965        (3,035 )      (197 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      988,411        (2,670 )      1,813,877        (17,141 )      12,461        631,438        22,852        45   

Change in unrealized gain (loss) on investments

      15,888,675        311,501        (9,826,194 )      333,675        8,530        2,626,892        90,271        4,956   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      16,877,086        308,831        (8,012,317 )      316,534        20,991        3,258,330        113,123        5,001   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            2,185,191        -            -            194,451        7,087        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 17,520,530        309,022        (5,549,634 )      325,042        21,093        3,467,746        117,175        4,804   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    ACVV     DVSCS     DCAP     DCAPS     DSC     DVIV     FCA2S     FHIBS  

Reinvested dividends

    $ 35,711        298,964        1,293,470        20,059        -            1,291        2,393        141,917   

Mortality and expense risk charges (note 2)

      (24,395 )      (310,637 )      (742,190 )      (22,669 )      (438 )      (551 )      (5,634 )      (39,131 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      11,316        (11,673 )      551,280        (2,610 )      (438 )      740        (3,241 )      102,786   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      208,471        2,161,139        822,927        72,661        1,948        1,976        11,106        120,765   

Change in unrealized gain (loss) on investments

      356,902        6,411,883        10,499,289        126,905        11,119        7,999        25,776        (125,995 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      565,373        8,573,022        11,322,216        199,566        13,067        9,975        36,882        (5,230 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            367,633        158,836        2,908        -            -            6,689        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 576,689        8,928,982        12,032,332        199,864        12,629        10,715        40,330        97,556   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FQB     FQBS     FVSS2     FCS     FNRS2     FEIS     FEI2     FF10S  

Reinvested dividends

    $ 4,274,984        155,037        4,449        126,970        115,152        5,225,757        109,010        166,264   

Mortality and expense risk charges (note 2)

      (1,128,288 )      (70,922 )      (12,774 )      (145,843 )      (193,790 )      (2,527,500 )      (91,256 )      (118,962 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      3,146,696        84,115        (8,325 )      (18,873 )      (78,638 )      2,698,257        17,754        47,302   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      750,176        20,755        48,480        (64,998 )      1,151,279        (2,272,279 )      (134,661 )      422,945   

Change in unrealized gain (loss) on investments

      (4,078,399 )      (148,491 )      126,598        3,496,168        2,333,300        37,959,562        921,419        626,671   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (3,328,223 )      (127,736 )      175,078        3,431,170        3,484,579        35,687,283        786,758        1,049,616   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            3,722        101,607        14,488,748        322,198        125,669   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (181,527 )      (43,621 )      166,753        3,416,019        3,507,548        52,874,288        1,126,710        1,222,587   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    FF10S2     FF20S     FF20S2     FF30S     FF30S2     FGOS     FGS     FG2  

Reinvested dividends

    $ 883        198,815        2,146        124,149        4,646        2,076        298,043        1,090   

Mortality and expense risk charges (note 2)

      (1,241 )      (121,109 )      (2,667 )      (77,491 )      (4,947 )      (11,993 )      (1,744,513 )      (44,290 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (358 )      77,706        (521 )      46,658        (301 )      (9,917 )      (1,446,470 )      (43,200 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,532        643,751        549        272,203        12,244        135,776        10,041,943        110,933   

Change in unrealized gain (loss) on investments

      3,685        630,875        15,808        889,337        40,245        205,783        38,878,941        625,912   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      6,217        1,274,626        16,357        1,161,540        52,489        341,559        48,920,884        736,845   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      743        151,323        1,909        104,570        4,559        553        107,541        1,659   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 6,602        1,503,655        17,745        1,312,768        56,747        332,195        47,581,955        695,304   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FHIS     FHISR     FIGBS     FMCS     FMC2     FOS     FO2R     FOSR  

Reinvested dividends

    $ 2,259,545        3,084,439        1,037,319        136,002        16,294        188,583        29,467        323,165   

Mortality and expense risk charges (note 2)

      (456,576 )      (554,493 )      (571,607 )      (392,588 )      (113,927 )      (162,775 )      (47,735 )      (288,236 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,802,969        2,529,946        465,712        (256,586 )      (97,633 )      25,808        (18,268 )      34,929   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (706,508 )      1,418,908        953,071        3,966,221        17,514        612,198        (196,854 )      (1,774,263 ) 

Change in unrealized gain (loss) on investments

      827,598        (1,379,847 )      (3,560,836 )      2,436,914        1,065,445        3,212,031        848,679        8,136,706   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      121,090        39,061        (2,607,765 )      6,403,135        1,082,959        3,824,229        651,825        6,362,443   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            553,469        4,320,151        785,983        56,022        9,597        95,206   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 1,924,059        2,569,007        (1,588,584 )      10,466,700        1,771,309        3,906,059        643,154        6,492,578   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    FVSS     FTVIS2     FTVRD2     FTVSV2     FTVDM3     TIF2     TIF3     FTVGI3  

Reinvested dividends

    $ 96,929        3,639,812        11,038        180,200        135,095        592        194,831        2,214,423   

Mortality and expense risk charges (note 2)

      (139,815 )      (676,201 )      (10,856 )      (159,184 )      (89,066 )      (325 )      (97,025 )      (532,182 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (42,886 )      2,963,611        182        21,016        46,029        267        97,806        1,682,241   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      1,436,260        1,634,511        40,996        817,425        (492,106 )      (448 )      434,139        1,803,043   

Change in unrealized gain (loss) on investments

      1,720,252        2,172,379        135,314        3,074,057        240,650        5,253        1,135,698        (3,837,995 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      3,156,512        3,806,890        176,310        3,891,482        (251,456 )      4,805        1,569,837        (2,034,952 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            232,554        -            -            -            577,350   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 3,113,626        6,770,501        176,492        4,145,052        (205,427 )      5,072        1,667,643        224,639   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    FTVFA2     AMTB     AMGP     AMCG     AMTP     AMFAS     AMSRS     OVGR  

Reinvested dividends

    $ 603,599        581,489        1,676        -            567        -            71,508        29,960   

Mortality and expense risk charges (note 2)

      (56,771 )      (267,400 )      (3,532 )      (4,857 )      (834 )      (18,740 )      (108,015 )      (33,942 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      546,828        314,089        (1,856 )      (4,857 )      (267 )      (18,740 )      (36,507 )      (3,982 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      5,065        (427,766 )      3,197        15,629        5,043        75,745        397,245        72,661   

Change in unrealized gain (loss) on investments

      (486,192 )      710        50,360        64,280        7,976        440,541        2,570,557        694,863   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (481,127 )      (427,056 )      53,557        79,909        13,019        516,286        2,967,802        767,524   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      880,260        -            10,640        -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 945,961        (112,967 )      62,341        75,052        12,752        497,546        2,931,295        763,542   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    OVGS3     OVGS     OVGSS     OVGI     OVGIS     OVSC     OVSCS     OVAG  

Reinvested dividends

    $ 1,086,172        659,390        17,290        1,104,384        21,657        102,013        1,150        7,019   

Mortality and expense risk charges (note 2)

      (914,864 )      (552,630 )      (27,135 )      (1,075,376 )      (44,468 )      (129,523 )      (2,148 )      (643,027 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      171,308        106,760        (9,845 )      29,008        (22,811 )      (27,510 )      (998 )      (636,008 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      969,516        1,137,024        23,764        8,882,240        117,620        3,930,184        12,309        7,131,365   

Change in unrealized gain (loss) on investments

      16,982,687        9,755,721        312,060        16,708,450        555,850        275,807        42,751        10,475,353   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      17,952,203        10,892,745        335,824        25,590,690        673,470        4,205,991        55,060        17,606,718   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            -            -            134,297        1,986        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 18,123,511        10,999,505        325,979        25,619,698        650,659        4,312,778        56,048        16,970,710   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    OVSB     OVSBS     PMVAAD     PMVFAD     PMVLAD     PMVRRA     PMVTRA     PMVTRD  

Reinvested dividends

    $ 209,799        152,400        253,181        103,607        562,065        16,972        48,248        377,713   

Mortality and expense risk charges (note 2)

      (40,902 )      (58,445 )      (56,650 )      (70,927 )      (479,407 )      (11,702 )      (24,740 )      (197,196 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      168,897        93,955        196,531        32,680        82,658        5,270        23,508        180,517   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (16,598 )      55,621        (26,737 )      (192,017 )      247,999        (12,831 )      (1,276 )      51,706   

Change in unrealized gain (loss) on investments

      (249,380 )      (218,874 )      (260,045 )      (497,366 )      (1,007,975 )      (109,023 )      (120,610 )      (1,012,512 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      (265,978 )      (163,253 )      (286,782 )      (689,383 )      (759,976 )      (121,854 )      (121,886 )      (960,806 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            51,633        -            7,737        15,024        152,985   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (97,081 )      (69,298 )      (90,251 )      (605,070 )      (677,318 )      (108,847 )      (83,354 )      (627,304 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:      PVGIB      ACEG2      ACC2      ACEG      AVGI      AVCE2      IVKEI1      IVHS  

Reinvested dividends

      $ 210         4,858         82,220         226         757         7,696         6,341         1,973   

Mortality and expense risk charges (note 2)

        (159 )       (36,314 )       (106,294 )       (587 )       (819 )       (11,788 )       (4,229 )       (2,953 ) 
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income (loss)

        51         (31,456 )       (24,074 )       (361 )       (62 )       (4,092 )       2,112         (980 ) 
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Realized gain (loss) on investments

        (322 )       276,390         188,821         743         5,315         61,512         25,980         21,546   

Change in unrealized gain (loss) on investments

        3,890         455,043         1,527,550         16,677         9,485         86,337         42,836         61,948   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net gain (loss) on investments

        3,568         731,433         1,716,371         17,420         14,800         147,849         68,816         83,494   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Reinvested capital gains

        -             -             -             -             -             -             -             -       
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      $ 3,619         699,977         1,692,297         17,059         14,738         143,757         70,928         82,514   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Investment Activity:      IVRE      VYDS      ROCMC      RVARS      SBLD      SBLJ      SBLN      SBLO  

Reinvested dividends

      $ 11,030         21,654         3,421         -             -             -             -             -       

Mortality and expense risk charges (note 2)

        (4,043 )       (40,212 )       (8,485 )       (1,350 )       (2,190 )       (1,640 )       (2,783 )       (3,766 ) 
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income (loss)

        6,987         (18,558 )       (5,064 )       (1,350 )       (2,190 )       (1,640 )       (2,783 )       (3,766 ) 
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Realized gain (loss) on investments

        26,007         (44,728 )       132,883         176         1,232         10,152         6,187         15,978   

Change in unrealized gain (loss) on investments

        (29,046 )       1,035,739         (11,308 )       646         33,087         28,155         25,766         79,092   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net gain (loss) on investments

        (3,039 )       991,011         121,575         822         34,319         38,307         31,953         95,070   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Reinvested capital gains

        -             -             17,926         -             -             -             -             -       
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      $ 3,948         972,453         134,437         (528 )       32,129         36,667         29,170         91,304   
    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    SBLP     SBLQ     SBLV     SBLX     SBLY     TRHS2     VWHAS     VWEM  

Reinvested dividends

    $ -            -            -            -            -            -            20,180        479,499   

Mortality and expense risk charges (note 2)

      (4,236 )      (10,599 )      (25,899 )      (1,607 )      (353 )      (386,737 )      (41,177 )      (323,026 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (4,236 )      (10,599 )      (25,899 )      (1,607 )      (353 )      (386,737 )      (20,997 )      156,473   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      45,420        115,668        324,944        842        516        4,756,167        (10,843 )      1,942,458   

Change in unrealized gain (loss) on investments

      (19,230 )      173,189        332,409        48,552        7,454        7,138,096        275,794        836,691   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      26,190        288,857        657,353        49,394        7,970        11,894,263        264,951        2,779,149   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            -            -            -            1,749,813        78,233        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 21,954        278,258        631,454        47,787        7,617        13,257,339        322,187        2,935,622   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    VWHA     WRASP     WRBP     WRBDP     WRCEP     WRDIV     WRENG     WRGBP  

Reinvested dividends

    $ 211,221        2,268,255        700,939        2,917,500        606,886        263,669        -            -       

Mortality and expense risk charges (note 2)

      (306,939 )      (1,967,038 )      (539,143 )      (923,284 )      (1,238,246 )      (181,781 )      (72,057 )      (35,074 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (95,718 )      301,217        161,796        1,994,216        (631,360 )      81,888        (72,057 )      (35,074 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      (227,569 )      6,991,178        1,962,868        1,592,428        6,479,325        322,103        837,540        12,753   

Change in unrealized gain (loss) on investments

      2,103,275        29,950,156        3,573,471        (7,677,960 )      16,243,237        3,310,088        695,989        44,584   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,875,706        36,941,334        5,536,339        (6,085,532 )      22,722,562        3,632,191        1,533,529        57,337   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      603,793        -            4,029,241        1,379,661        8,934,536        358,298        21,800        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 2,383,781        37,242,551        9,727,376        (2,711,655 )      31,025,738        4,072,377        1,483,272        22,263   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    WRGNR     WRGP     WRHIP     WRIP     WRI2P     WRLTBP     WRMIC     WRMCG  

Reinvested dividends

    $ -            466,925        4,267,949        263,852        196,496        -            -            -       

Mortality and expense risk charges (note 2)

      (167,995 )      (1,203,785 )      (974,460 )      (325,346 )      (130,534 )      (58,877 )      (48,810 )      (177,407 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (167,995 )      (736,860 )      3,293,489        (61,494 )      65,962        (58,877 )      (48,810 )      (177,407 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      2,222,315        7,284,206        2,286,006        668,471        (835,297 )      (135,404 )      667,266        2,170,982   

Change in unrealized gain (loss) on investments

      (1,072,903 )      17,647,588        2,031,391        3,597,753        3,250,490        104,458        1,166,865        1,418,729   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      1,149,412        24,931,794        4,317,397        4,266,224        2,415,193        (30,946 )      1,834,131        3,589,711   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            8,346,850        -            564,558        -            5,437        177,931        511,647   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 981,417        32,541,784        7,610,886        4,769,288        2,481,155        (84,386 )      1,963,252        3,923,951   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Investment Activity:    WRMMP     WRRESP     WRSTP     WRSCP     WRSCV     WRVP     SVOF     WFVSCG  

Reinvested dividends

    $ 3,371        88,365        -            -            57,980        368,119        444        -       

Mortality and expense risk charges (note 2)

      (186,460 )      (86,250 )      (806,619 )      (552,994 )      (76,509 )      (525,679 )      (3,754 )      (88,745 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      (183,089 )      2,115        (806,619 )      (552,994 )      (18,529 )      (157,560 )      (3,310 )      (88,745 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gain (loss) on investments

      -            265,574        3,669,486        2,239,499        599,663        1,008,493        13,709        1,281,500   

Change in unrealized gain (loss) on investments

      -            (235,956 )      24,696,450        15,735,873        858,664        11,358,920        44,932        1,311,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net gain (loss) on investments

      -            29,618        28,365,936        17,975,372        1,458,327        12,367,413        58,641        2,592,768   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Reinvested capital gains

      -            -            4,284,287        -            428,882        1,182,484        -            383,476   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ (183,089 )      31,733        31,843,604        17,422,378        1,868,680        13,392,337        55,331        2,887,499   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENT OF OPERATIONS

Year Ended December 31, 2013

 

Investment Activity:    BBCMAG  

Reinvested dividends

    $ 231   

Mortality and expense risk charges (note 2)

      (1,778 ) 
  

 

 

  

Net investment income (loss)

      (1,547 ) 
  

 

 

  

Realized gain (loss) on investments

      55,425   

Change in unrealized gain (loss) on investments

      (39,205 ) 
  

 

 

  

Net gain (loss) on investments

      16,220   
  

 

 

  

Reinvested capital gains

      -       
  

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

    $ 14,673   
  

 

 

  

See accompanying notes to financial statements.

  

 

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     Total     ALVDAB     BBGI     MLVGA3  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 22,783,428        26,897,349        (1,752 )      (63 )      (173 )      (1,301 )      (24,560 )      113,924   

Realized gain (loss) on investments

      209,339,515        90,053,516        3,380        3        51,327        3,755        623,791        288,184   

Change in unrealized gain (loss) on investments

      836,511,835        457,010,471        19,183        829        49,484        96,402        2,672,751        2,563,533   

Reinvested capital gains

      98,662,566        139,698,470        1,262        6        -            -            1,822,827        123,480   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,167,297,344        713,659,806        22,073        775        100,638        98,856        5,094,809        3,089,121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      143,408,453        108,133,487        219,036        13,000        13,859        15,659        3,382,331        732,457   

Transfers between subaccounts (including fixed account), net (note 3)

      (743,042 )      -            170,622        9,663        1,474        (25,621 )      3,713,062        2,067,870   

Redemptions (note 3)

      (949,329,984 )      (1,017,052,775 )      (31,091 )      -            (392,287 )      (109,318 )      (4,487,586 )      (4,892,165 ) 

Annuity benefits

      (5,194,057 )      (5,212,983 )      -            -            -            -            (21,715 )      (24,366 ) 

Contract maintenance charges (note 2)

      (146,580 )      (166,309 )      (4 )      -            -            -            (326 )      (343 ) 

Contingent deferred sales charges (note 2)

      (743,533 )      (1,062,216 )      (75 )      -            (127 )      -            (2,196 )      (5,082 ) 

Adjustments to maintain reserves

      431,118        (567,375 )      (19 )      1        (18 )      (25 )      (413 )      (388 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (812,317,625 )      (915,928,171 )      358,469        22,664        (377,099 )      (119,305 )      2,583,157        (2,122,017 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      354,979,719        (202,268,365 )      380,542        23,439        (276,461 )      (20,449 )      7,677,966        967,104   

Contract owners’ equity beginning of period

      5,859,299,538        6,061,567,903        23,439        -            759,483        779,932        37,491,623        36,524,519   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 6,214,279,257        5,859,299,538        403,981        23,439        483,022        759,483        45,169,589        37,491,623   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      391,788,053        451,701,753        2,307        -            67,944        78,794        2,743,720        2,904,957   

Units purchased

      66,261,043        70,012,304        37,518        2,307        1,385        1,463        760,084        545,899   

Units redeemed

      (114,789,443 )      (129,926,004 )      (3,869 )      -            (32,231 )      (12,313 )      (575,115 )      (707,136 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      343,259,653        391,788,053        35,956        2,307        37,098        67,944        2,928,689        2,743,720   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     DWVSVS      DSIF     DSRG     DSRGS  
     2013         2012          2013     2012     2013     2012     2013     2012  

Investment activity:

                  

Net investment income (loss)

    $ (2,051 )      -             2,232,722        2,742,495        73,034        (97,127 )      (483 )      (823 ) 

Realized gain (loss) on investments

      2,749        -             10,814,372        8,904,080        2,263,903        1,921,539        3,714        3,880   

Change in unrealized gain (loss) on investments

      43,884        -             65,826,300        14,149,386        9,115,095        2,251,890        17,090        4,301   

Reinvested capital gains

      -            -             3,407,590        14,931,487        -            -            -            -       
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      44,582        -             82,280,984        40,727,448        11,452,032        4,076,302        20,321        7,358   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (note 3)

      25,285        -             5,013,743        5,663,048        438,182        1,033,807        -            -       

Transfers between subaccounts (including fixed account), net (note 3)

      434,618        -             (9,911,648 )      (8,538,985 )      (443,933 )      (1,668,548 )      435        (463 ) 

Redemptions (note 3)

      (14,564 )      -             (36,663,709 )      (43,342,075 )      (4,838,765 )      (5,863,762 )      (9,261 )      (14,079 ) 

Annuity benefits

      -            -             (175,960 )      (159,695 )      (3,828 )      (5,642 )      -            -       

Contract maintenance charges (note 2)

      (3 )      -             (7,549 )      (8,145 )      (2,603 )      (2,897 )      -            -       

Contingent deferred sales charges (note 2)

      -            -             (36,805 )      (48,653 )      (11,854 )      (13,180 )      -            -       

Adjustments to maintain reserves

      (5 )      -             498        3,582        (3,696 )      (8,323 )      (10 )      (14 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      445,331        -             (41,781,430 )      (46,430,923 )      (4,866,497 )      (6,528,545 )      (8,836 )      (14,556 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      489,913        -             40,499,554        (5,703,475 )      6,585,535        (2,452,243 )      11,485        (7,198 ) 

Contract owners’ equity beginning of period

      -            -             288,174,613        293,878,088        36,814,561        39,266,804        67,889        75,087   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 489,913        -             328,674,167        288,174,613        43,400,096        36,814,561        79,374        67,889   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      -            -             18,017,028        21,028,413        2,809,210        3,319,842        5,926        7,281   

Units purchased

      42,935        -             969,743        783,272        93,206        130,687        35        1,204   

Units redeemed

      (2,929 )      -             (3,230,305 )      (3,794,657 )      (409,950 )      (641,319 )      (688 )      (2,559 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      40,006        -             15,756,466        18,017,028        2,492,466        2,809,210        5,273        5,926   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVGMNS     HVIE     HVSIT     IVMCC2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (1,490 )      (5 )      387        373        (9,554 )      (4,772 )      (1,108 )      (5 ) 

Realized gain (loss) on investments

      1,693        -            12,530        (862 )      152,379        11,854        3,796        -       

Change in unrealized gain (loss) on investments

      1,887        52        12,204        9,507        139,776        74,275        25,700        97   

Reinvested capital gains

      4,696        3        -            -            -            -            23,874        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      6,786        50        25,121        9,018        282,601        81,357        52,262        92   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      100,177        1,931        14,233        366        61,630        4,760        243,461        -       

Transfers between subaccounts (including fixed account), net (note 3)

      86,554        188.00        38,085        22,888        326,165        264,384        47,997        12,272   

Redemptions (note 3)

      (1,279 )      -            (41,679 )      (4,704 )      (77,926 )      (79,550 )      (11,680 )      -       

Annuity benefits

      -            -            -            -            -            -            -            -       

Contract maintenance charges (note 2)

      (3 )      -            -            -            -            -            (4 )      -       

Contingent deferred sales charges (note 2)

      (34 )      -            -            -            (120 )      (11 )      -            -       

Adjustments to maintain reserves

      (28 )      (2 )      (21 )      (9 )      453        (38 )      -            (4 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      185,387        2,117        10,618        18,541        310,202        189,545        279,774        12,268   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      192,173        2,167        35,739        27,559        592,803        270,902        332,036        12,360   

Contract owners’ equity beginning of period

      2,167        -            94,163        66,604        660,955        390,053        12,360        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 194,340        2,167        129,902        94,163        1,253,758        660,955        344,396        12,360   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      212        -            9,241        7,372        49,252        35,238        1,240        -       

Units purchased

      30,755        212        13,232        2,819        112,973        36,857        28,579        1,240   

Units redeemed

      (14,050 )      -            (11,989 )      (950 )      (90,709 )      (22,843 )      (2,628 )      -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      16,917        212        10,484        9,241        71,516        49,252        27,191        1,240   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     IVKMG2     JPMMV1     JABS     JACAS  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (12,936 )      (10,037 )      (21,066 )      (17,653 )      648        989        (497,348 )      (530,407 ) 

Realized gain (loss) on investments

      81,993        (13,470 )      2,383,537        1,177,465        1,051        467        2,642,226        1,934,711   

Change in unrealized gain (loss) on investments

      312,621        (13,657 )      2,238,584        1,033,698        8,087        1,884        21,519,702        17,109,956   

Reinvested capital gains

      -            426        203,361        -            3,891        5,432        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      381,678        (36,738 )      4,804,416        2,193,510        13,677        8,772        23,664,580        18,514,260   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      8,192        210,399        695,326        219,322        -            -            1,512,898        1,405,076   

Transfers between subaccounts (including fixed account), net (note 3)

      (13,347 )      1,210,526.00        1,838,076        3,696,408        (2,331 )      -            (6,051,044 )      (1,219,027 ) 

Redemptions (note 3)

      (193,217 )      (154,752 )      (2,538,154 )      (1,642,326 )      (5,338 )      (5,042 )      (13,210,207 )      (13,982,016 ) 

Annuity benefits

      (6,140 )      (4,358 )      (3,500 )      (2,916 )      (473 )      (433 )      (44,120 )      (40,995 ) 

Contract maintenance charges (note 2)

      (31 )      (26 )      (374 )      (363 )      -            -            (2,036 )      (2,285 ) 

Contingent deferred sales charges (note 2)

      (70 )      (412 )      (886 )      (2,236 )      -            -            (12,508 )      (13,067 ) 

Adjustments to maintain reserves

      (49 )      137        (369 )      (300 )      2        1        189        (968 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (204,662 )      1,261,514        (9,881 )      2,267,589        (8,140 )      (5,474 )      (17,806,828 )      (13,853,282 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      177,016        1,224,776        4,794,535        4,461,099        5,537        3,298        5,857,752        4,660,978   

Contract owners’ equity beginning of period

      1,224,776        -            15,108,354        10,647,255        77,878        74,580        90,834,700        86,173,722   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,401,792        1,224,776        19,902,889        15,108,354        83,415        77,878        96,692,452        90,834,700   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      116,100        -            865,697        724,335        4,547        4,875        8,117,046        9,423,318   

Units purchased

      38,127        134,902        292,814        369,101        33        30        351,805        878,314   

Units redeemed

      (55,805 )      (18,802 )      (288,150 )      (227,739 )      (463 )      (358 )      (1,794,812 )      (2,184,586 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      98,422        116,100        870,361        865,697        4,117        4,547        6,674,039        8,117,046   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     JAGTS     JAIGS     MIGSC     MMCGSC  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (324,002 )      (272,673 )      1,674,978        (270,706 )      (1,586 )      (1,834 )      (21,849 )      (22,061 ) 

Realized gain (loss) on investments

      3,010,926        2,005,865        (2,171,098 )      6,412,838        8,169        9,404        18,585        (9,036 ) 

Change in unrealized gain (loss) on investments

      5,976,110        677,474        10,991,476        (12,902,637 )      33,063        9,141        351,521        192,773   

Reinvested capital gains

      -            -            -            10,488,863        5,885        8,944        4,591        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      8,663,034        2,410,666        10,495,356        3,728,358        45,531        25,655        352,848        161,676   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      601,554        391,435        1,189,885        1,239,112        -            -            5,849        16,041   

Transfers between subaccounts (including fixed account), net (note 3)

      (1,677,628 )      14,231,712.00        (5,884,746 )      54,549,085        -            -            (7,688 )      (56,706 ) 

Redemptions (note 3)

      (3,798,573 )      (3,786,158 )      (12,041,569 )      (11,090,134 )      (14,980 )      (16,207 )      (223,802 )      (206,510 ) 

Annuity benefits

      (4,051 )      (3,604 )      (17,030 )      (23,520 )      (6,975 )      (6,576 )      -            -       

Contract maintenance charges (note 2)

      (773 )      (732 )      (2,248 )      (1,897 )      -            -            -            -       

Contingent deferred sales charges (note 2)

      (4,668 )      (2,750 )      (11,439 )      (11,263 )      -            -            -            (15 ) 

Adjustments to maintain reserves

      (649 )      119        (873 )      (11,542 )      873        (741 )      (87 )      (39 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (4,884,788 )      10,830,022        (16,768,020 )      44,649,841        (21,082 )      (23,524 )      (225,728 )      (247,229 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      3,778,246        13,240,688        (6,272,664 )      48,378,199        24,449        2,131        127,120        (85,553 ) 

Contract owners’ equity beginning of period

      28,329,230        15,088,542        92,903,627        44,525,428        173,051        170,920        1,128,495        1,214,048   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 32,107,476        28,329,230        86,630,963        92,903,627        197,500        173,051        1,255,615        1,128,495   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      5,219,721        3,262,667        7,024,388        3,758,384        12,259        13,950        110,539        135,789   

Units purchased

      368,909        3,155,780        427,650        4,834,183        87        72        1,735        2,347   

Units redeemed

      (1,167,714 )      (1,198,726 )      (1,654,702 )      (1,568,179 )      (1,451 )      (1,763 )      (21,067 )      (27,597 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      4,420,916        5,219,721        5,797,336        7,024,388        10,895        12,259        91,207        110,539   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     MNDSC     MVFSC     MVIVSC     MSVFI  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (43,770 )      (17,358 )      (57,010 )      94,008        27,611        15,908        61,983        105,315   

Realized gain (loss) on investments

      351,829        162,311        3,259,462        2,351,741        421,554        14,172        49,217        52,604   

Change in unrealized gain (loss) on investments

      664,417        (98,673 )      7,482,688        1,824,215        1,858,865        808,442        (178,767 )      83,248   

Reinvested capital gains

      34,640        99,267        113,698        257,856        -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,007,116        145,547        10,798,838        4,527,820        2,308,030        838,522        (67,567 )      241,167   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      331,499        27,673        933,776        486,251        514,040        279,456        171,732        12,818   

Transfers between subaccounts (including fixed account), net (note 3)

      1,818,379        723,850.00        784,698        801,170        4,551,937        2,237,218        (258,408 )      (345,348 ) 

Redemptions (note 3)

      (567,057 )      (266,425 )      (4,432,796 )      (4,833,223 )      (1,167,021 )      (977,479 )      (420,930 )      (489,834 ) 

Annuity benefits

      -            -            (33,301 )      (29,156 )      (325 )      -            -            -       

Contract maintenance charges (note 2)

      (16 )      (1 )      (829 )      (907 )      (46 )      (40 )      (69 )      (70 ) 

Contingent deferred sales charges (note 2)

      (297 )      (45 )      (5,739 )      (5,368 )      (612 )      (1,105 )      (152 )      (692 ) 

Adjustments to maintain reserves

      (180 )      (78 )      (220 )      (354 )      (854 )      (196 )      (143 )      (89 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,582,328        484,974        (2,754,411 )      (3,581,587 )      3,897,119        1,537,854        (507,970 )      (823,215 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      2,589,444        630,521        8,044,427        946,233        6,205,149        2,376,376        (575,537 )      (582,048 ) 

Contract owners’ equity beginning of period

      1,380,983        750,462        33,036,854        32,090,621        7,513,001        5,136,625        2,585,027        3,167,075   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 3,970,427        1,380,983        41,081,281        33,036,854        13,718,150        7,513,001        2,009,490        2,585,027   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      102,754        58,141        2,700,096        2,989,414        627,398        491,546        207,420        274,506   

Units purchased

      377,657        109,437        497,408        487,491        520,418        341,155        376,485        63,893   

Units redeemed

      (226,164 )      (64,824 )      (690,342 )      (776,809 )      (240,572 )      (205,303 )      (419,915 )      (130,979 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      254,247        102,754        2,507,162        2,700,096        907,244        627,398        163,990        207,420   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     MSVF2     MSEM     MSVMG     MSVRE  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 12,830        21,657        246,156        173,770        (702 )      (890 )      (5,554 )      (7,896 ) 

Realized gain (loss) on investments

      (7,231 )      (6,202 )      133,700        217,103        4,493        703        80,860        55,009   

Change in unrealized gain (loss) on investments

      (26,625 )      44,498        (1,397,030 )      1,170,017        8,511        (2,311 )      (68,483 )      83,867   

Reinvested capital gains

      -            -            105,195        -            945        5,476        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (21,026 )      59,953        (911,979 )      1,560,890        13,247        2,978        6,823        130,980   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,534        -            13,661        74,146        -            -            1,466        11,234   

Transfers between subaccounts (including fixed account), net (note 3)

      8,725        (7,072.00 )      (451,338 )      (175,608 )      993        (93 )      5,923        (27,635 ) 

Redemptions (note 3)

      (24,123 )      (46,353 )      (1,258,106 )      (1,587,818 )      (12,610 )      (691 )      (111,533 )      (53,945 ) 

Annuity benefits

      (8,852 )      (9,949 )      (8,871 )      (9,095 )      (566 )      (503 )      (8,272 )      (6,695 ) 

Contract maintenance charges (note 2)

      -            -            (162 )      (237 )      (4 )      (5 )      (85 )      (131 ) 

Contingent deferred sales charges (note 2)

      -            -            (386 )      (2,069 )      -            -            2        -       

Adjustments to maintain reserves

      (22 )      (4 )      (214 )      (596 )      1,545        346        (6 )      121   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (22,738 )      (63,378 )      (1,705,416 )      (1,701,277 )      (10,642 )      (946 )      (112,505 )      (77,051 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (43,764 )      (3,425 )      (2,617,395 )      (140,387 )      2,605        2,032        (105,682 )      53,929   

Contract owners’ equity beginning of period

      851,417        854,842        9,952,804        10,093,191        50,781        48,749        1,010,839        956,910   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 807,653        851,417        7,335,409        9,952,804        53,386        50,781        905,157        1,010,839   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      59,721        62,432        259,118        306,681        4,783        4,859        27,707        29,336   

Units purchased

      1,776        -            4,934        4,126        90        1        1,058        724   

Units redeemed

      (2,635 )      (2,711 )      (50,990 )      (51,689 )      (1,136 )      (77 )      (4,216 )      (2,353 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      58,862        59,721        213,062        259,118        3,737        4,783        24,549        27,707   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVAMV1     NVAMV2     GVAAA2     GVABD2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 946,818        (272,913 )      (6,153 )      (28,065 )      59,431        16,402        83,537        240,658   

Realized gain (loss) on investments

      5,245,373        1,887,398        115,708        51,321        839,987        1,767        805,306        999,801   

Change in unrealized gain (loss) on investments

      28,304,589        10,220,768        506,909        184,235        7,244,164        4,223,258        (1,599,796 )      (364,026 ) 

Reinvested capital gains

      2,697,451        5,506,389        48,052        105,809        10,573        -            4,875        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      37,194,231        17,341,642        664,516        313,300        8,154,155        4,241,427        (706,078 )      876,433   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,892,811        1,858,885        55,436        21,489        5,494,580        1,037,978        160,092        150,758   

Transfers between subaccounts (including fixed account), net (note 3)

      (3,138,920 )      (7,537,639.00 )      (58,901 )      (11,838 )      7,203,726        3,517,894        (3,091,321 )      (196,154 ) 

Redemptions (note 3)

      (20,607,477 )      (19,618,236 )      (430,967 )      (634,833 )      (5,754,545 )      (4,464,716 )      (2,407,123 )      (3,427,400 ) 

Annuity benefits

      (120,797 )      (102,497 )      -            -            (88,394 )      (79,556 )      (25,796 )      (32,413 ) 

Contract maintenance charges (note 2)

      (3,212 )      (3,841 )      -            -            (1,212 )      (1,152 )      (234 )      (327 ) 

Contingent deferred sales charges (note 2)

      (10,684 )      (21,120 )      -            (258 )      (5,748 )      (6,392 )      (1,294 )      (2,777 ) 

Adjustments to maintain reserves

      5,488        33,765        (55 )      (95 )      (302 )      (275 )      (247 )      (261 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (21,982,791 )      (25,390,683 )      (434,487 )      (625,535 )      6,848,105        3,781        (5,365,923 )      (3,508,574 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      15,211,440        (8,049,041 )      230,029        (312,235 )      15,002,260        4,245,208        (6,072,001 )      (2,632,141 ) 

Contract owners’ equity beginning of period

      130,917,010        138,966,051        2,435,163        2,747,398        34,301,466        30,056,258        21,665,779        24,297,920   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 146,128,450        130,917,010        2,665,192        2,435,163        49,303,726        34,301,466        15,593,778        21,665,779   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      8,204,277        9,880,961        159,591        202,068        2,681,096        2,662,323        1,768,019        2,054,466   

Units purchased

      266,561        217,651        5,285        8,559        1,149,286        510,388        81,020        262,822   

Units redeemed

      (1,455,988 )      (1,894,335 )      (29,595 )      (51,036 )      (604,790 )      (491,615 )      (533,300 )      (549,269 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      7,014,850        8,204,277        135,281        159,591        3,225,592        2,681,096        1,315,739        1,768,019   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVAGG2     GVAGR2     GVAGI2     HIBF  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (170,352 )      (59,970 )      (339,557 )      (359,209 )      (15,939 )      (18,778 )      1,218,895        1,808,805   

Realized gain (loss) on investments

      2,050,542        (244,972 )      2,447,300        (802,970 )      707,914        1,037,885        (535,931 )      (478,210 ) 

Change in unrealized gain (loss) on investments

      3,579,002        4,053,810        8,061,401        6,884,479        3,690,226        850,436        737,228        2,052,332   

Reinvested capital gains

      -            -            -            -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      5,459,192        3,748,868        10,169,144        5,722,300        4,382,201        1,869,543        1,420,192        3,382,927   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,574,944        404,971        2,107,300        731,595        2,017,225        776,099        57,650        38,665   

Transfers between subaccounts (including fixed account), net (note 3)

      191,803        330,528.00        14,454        (520,388 )      1,520,142        353,646        (1,231,465 )      (429,725 ) 

Redemptions (note 3)

      (2,860,522 )      (3,101,095 )      (4,866,358 )      (5,476,498 )      (1,350,535 )      (2,190,180 )      (3,731,905 )      (3,857,387 ) 

Annuity benefits

      (20,578 )      (17,153 )      (53,339 )      (51,204 )      (56,037 )      (43,302 )      (16,343 )      (15,599 ) 

Contract maintenance charges (note 2)

      (645 )      (696 )      (1,268 )      (1,318 )      (370 )      (319 )      (285 )      (348 ) 

Contingent deferred sales charges (note 2)

      (2,620 )      (3,576 )      (8,209 )      (8,077 )      (1,064 )      (2,511 )      (711 )      (1,403 ) 

Adjustments to maintain reserves

      (384 )      (332 )      194        2,941        (209 )      (174 )      (444 )      (125 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,118,002 )      (2,387,353 )      (2,807,226 )      (5,322,949 )      2,129,152        (1,106,741 )      (4,923,503 )      (4,265,922 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      4,341,190        1,361,515        7,361,918        399,351        6,511,353        762,802        (3,503,311 )      (882,995 ) 

Contract owners’ equity beginning of period

      20,752,449        19,390,934        37,531,659        37,132,308        13,069,414        12,306,612        26,359,604        27,242,599   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 25,093,639        20,752,449        44,893,577        37,531,659        19,580,767        13,069,414        22,856,293        26,359,604   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,659,885        1,877,500        3,321,520        3,807,910        1,267,595        1,374,546        1,281,408        1,499,037   

Units purchased

      365,596        338,517        406,725        354,624        442,865        276,713        11,235        4,443   

Units redeemed

      (441,761 )      (556,132 )      (616,895 )      (841,014 )      (236,982 )      (383,664 )      (246,446 )      (222,072 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,583,720        1,659,885        3,111,350        3,321,520        1,473,478        1,267,595        1,046,197        1,281,408   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     HIBF3     GEM     GEM3     GEM6  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 1,502,422        2,124,060        628        (6,896 )      (1,099 )      (215,240 )      (4,375 )      (9,804 ) 

Realized gain (loss) on investments

      441,336        381,361        (14,768 )      (84,247 )      2,455,460        92,791        42,188        53,841   

Change in unrealized gain (loss) on investments

      (310,837 )      1,386,952        8,866        263,682        (2,672,442 )      4,536,231        (42,135 )      38,384   

Reinvested capital gains

      -            -            -            -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,632,921        3,892,373        (5,274 )      172,539        (218,081 )      4,413,782        (4,322 )      82,421   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      541,936        706,301        6,541        20,744        684,325        422,879        -            -       

Transfers between subaccounts (including fixed account), net (note 3)

      (741,401 )      (169,402.00 )      (33,403 )      (38,955 )      (1,821,799 )      (4,321,654 )      (16,026 )      6,260   

Redemptions (note 3)

      (4,206,788 )      (5,105,140 )      (146,921 )      (138,796 )      (2,835,789 )      (3,898,266 )      (105,742 )      (127,550 ) 

Annuity benefits

      (26,310 )      (23,880 )      (2,758 )      (2,763 )      (17,823 )      (23,189 )      -            -       

Contract maintenance charges (note 2)

      (289 )      (326 )      (39 )      (35 )      (1,608 )      (1,992 )      -            -       

Contingent deferred sales charges (note 2)

      (3,650 )      (4,033 )      (303 )      (122 )      (4,215 )      (6,701 )      -            (51 ) 

Adjustments to maintain reserves

      (386 )      (519 )      (56 )      (50 )      2,435        (1,756 )      (66 )      (28 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (4,436,888 )      (4,596,999 )      (176,939 )      (159,977 )      (3,994,474 )      (7,830,679 )      (121,834 )      (121,369 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (2,803,967 )      (704,626 )      (182,213 )      12,562        (4,212,555 )      (3,416,897 )      (126,156 )      (38,948 ) 

Contract owners’ equity beginning of period

      31,162,396        31,867,022        1,149,111        1,136,549        28,921,854        32,338,751        549,863        588,811   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 28,358,429        31,162,396        966,898        1,149,111        24,709,299        28,921,854        423,707        549,863   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      1,969,531        2,286,315        45,909        53,088        1,117,157        1,447,881        28,770        35,349   

Units purchased

      585,127        684,472        8,793        1,282        154,342        199,768        2,892        4,703   

Units redeemed

      (862,445 )      (1,001,256 )      (16,097 )      (8,461 )      (313,287 )      (530,492 )      (9,184 )      (11,282 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      1,692,213        1,969,531        38,605        45,909        958,212        1,117,157        22,478        28,770   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GIG     GIG3     NVIE6     NVNMO1  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (32,607 )      (12,515 )      (113,405 )      (63,815 )      (676 )      (619 )      (78,943 )      190,010   

Realized gain (loss) on investments

      108,585        (41,790 )      1,107,891        562,321        10,232        (3,325 )      3,718,968        1,162,866   

Change in unrealized gain (loss) on investments

      784,737        831,862        1,952,461        2,161,661        2,493        16,734        18,110,887        3,576,195   

Reinvested capital gains

      -            -            -            -            -            -            2,899,262        4,496,098   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      860,715        777,557        2,946,947        2,660,167        12,049        12,790        24,650,174        9,425,169   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      14,222        71,657        268,611        198,658        (71 )      -            625,427        750,782   

Transfers between subaccounts (including fixed account), net (note 3)

      (431,460 )      168,497.00        (621,199 )      (1,217,443 )      (44,155 )      12,315        (2,112,340 )      (4,887,700 ) 

Redemptions (note 3)

      (731,362 )      (791,951 )      (2,323,807 )      (3,334,179 )      (3,495 )      (10,245 )      (10,060,584 )      (9,005,640 ) 

Annuity benefits

      (3,077 )      (2,864 )      (3,525 )      (403 )      (2,441 )      (2,202 )      (17,179 )      (12,994 ) 

Contract maintenance charges (note 2)

      (89 )      (114 )      (481 )      (576 )      -            -            (1,210 )      (1,250 ) 

Contingent deferred sales charges (note 2)

      (400 )      (439 )      (1,894 )      (4,516 )      -            -            (5,753 )      (6,693 ) 

Adjustments to maintain reserves

      1,429        2,670        2,510        33,436        1        1        (10,525 )      (21,970 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,150,737 )      (552,544 )      (2,679,785 )      (4,325,023 )      (50,161 )      (131 )      (11,582,164 )      (13,185,465 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (290,022 )      225,013        267,162        (1,664,856 )      (38,112 )      12,659        13,068,010        (3,760,296 ) 

Contract owners’ equity beginning of period

      5,899,967        5,674,954        19,143,368        20,808,224        102,496        89,837        62,425,368        66,185,664   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,609,945        5,899,967        19,410,530        19,143,368        64,384        102,496        75,493,378        62,425,368   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      475,976        523,208        975,577        1,215,140        13,008        12,973        6,918,204        8,487,495   

Units purchased

      6,809        36,568        72,107        45,440        129        1,860        514,381        266,031   

Units redeemed

      (94,497 )      (83,800 )      (198,925 )      (285,003 )      (6,098 )      (1,825 )      (1,550,775 )      (1,835,322 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      388,288        475,976        848,759        975,577        7,039        13,008        5,881,810        6,918,204   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVNSR1     NVCRA2     NVCRB2     NVCCA2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (19,077 )      8,789        5,248        (4,173 )      56,574        32,650        23,538        6,233   

Realized gain (loss) on investments

      672,203        166,100        72,896        104,133        225,919        179,818        251,710        394,798   

Change in unrealized gain (loss) on investments

      1,060,119        209,208        534,829        143,967        821,279        518,711        670,360        191,385   

Reinvested capital gains

      -            -            66,997        89,121        233,150        117,386        169,362        84,438   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,713,245        384,097        679,970        333,048        1,336,922        848,565        1,114,970        676,854   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      235,378        73,355        379,971        85,111        463,353        263,528        224,955        82,301   

Transfers between subaccounts (including fixed account), net (note 3)

      149,267        898,702.00        331,415        (374,742 )      1,083,939        1,683,974        60,585        337,615   

Redemptions (note 3)

      (604,368 )      (459,244 )      (331,538 )      (412,613 )      (1,286,693 )      (1,393,331 )      (573,668 )      (743,070 ) 

Annuity benefits

      (1,403 )      (611 )      -            -            (488 )      (4,550 )      (1,109 )      (1,006 ) 

Contract maintenance charges (note 2)

      (481 )      (512 )      (825 )      (756 )      (234 )      (263 )      (375 )      (426 ) 

Contingent deferred sales charges (note 2)

      (2,692 )      (2,376 )      (1,425 )      (1,928 )      (5,082 )      (1,721 )      (271 )      (3,091 ) 

Adjustments to maintain reserves

      (271 )      (145 )      (67 )      (58 )      (137 )      (159 )      (80 )      (98 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (224,570 )      509,169        377,531        (704,986 )      254,658        547,478        (289,963 )      (327,775 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,488,675        893,266        1,057,501        (371,938 )      1,591,580        1,396,043        825,007        349,079   

Contract owners’ equity beginning of period

      4,489,865        3,596,599        2,253,238        2,625,176        9,863,365        8,467,322        5,951,873        5,602,794   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,978,540        4,489,865        3,310,739        2,253,238        11,454,945        9,863,365        6,776,880        5,951,873   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      432,385        381,863        228,694        306,028        860,739        806,397        550,198        581,248   

Units purchased

      311,634        161,394        72,663        13,090        189,024        256,676        65,703        97,012   

Units redeemed

      (324,820 )      (110,872 )      (38,631 )      (90,424 )      (164,939 )      (202,334 )      (92,571 )      (128,062 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      419,199        432,385        262,726        228,694        884,824        860,739        523,330        550,198   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVCCN2     NVCMD2     NVCMA2     NVCMC2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 43,129        38,915        96,551        39,257        15,421        (10,944 )      48,401        38,684   

Realized gain (loss) on investments

      140,137        62,643        636,479        789,237        350,179        232,437        191,716        127,228   

Change in unrealized gain (loss) on investments

      (12,696 )      352,796        1,998,015        889,044        974,035        551,645        411,507        409,829   

Reinvested capital gains

      132,527        130,428        539,589        297,097        353,605        199,681        175,701        157,872   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      303,097        584,782        3,270,634        2,014,635        1,693,240        972,819        827,325        733,613   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      305,130        221,564        1,517,880        453,393        601,843        472,320        91,920        381,831   

Transfers between subaccounts (including fixed account), net (note 3)

      918,901        (259,890.00 )      819,065        388,653        (395,777 )      (112,416 )      263,024        86,397   

Redemptions (note 3)

      (1,933,040 )      (2,184,751 )      (2,049,303 )      (2,123,338 )      (706,043 )      (1,215,069 )      (1,118,338 )      (1,100,818 ) 

Annuity benefits

      (32,250 )      (32,053 )      (56,161 )      (55,361 )      (86,114 )      (76,791 )      (1,526 )      (3,733 ) 

Contract maintenance charges (note 2)

      (356 )      (294 )      (1,324 )      (1,341 )      (833 )      (1,008 )      (299 )      (338 ) 

Contingent deferred sales charges (note 2)

      (5,382 )      (3,437 )      (4,269 )      (3,824 )      (2,798 )      (1,522 )      (387 )      (1,307 ) 

Adjustments to maintain reserves

      7,388        6,120        (116 )      (235 )      (66 )      (69 )      (140 )      (137 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (739,609 )      (2,252,741 )      225,772        (1,342,053 )      (589,788 )      (934,555 )      (765,746 )      (638,105 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (436,512 )      (1,667,959 )      3,496,406        672,582        1,103,452        38,264        61,579        95,508   

Contract owners’ equity beginning of period

      8,401,952        10,069,911        19,616,266        18,943,684        7,794,694        7,756,430        8,718,471        8,622,963   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 7,965,440        8,401,952        23,112,672        19,616,266        8,898,146        7,794,694        8,780,050        8,718,471   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      684,120        876,996        1,704,961        1,828,979        627,883        715,736        771,585        824,921   

Units purchased

      172,989        289,652        381,779        502,464        111,474        109,088        77,421        93,616   

Units redeemed

      (230,479 )      (482,528 )      (351,878 )      (626,482 )      (155,862 )      (196,941 )      (142,680 )      (146,952 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      626,630        684,120        1,734,862        1,704,961        583,495        627,883        706,326        771,585   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVCBD1     NVCBD2     NVLCP2     TRF  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 58,524        180,427        1,230        7,543        19,307        61,280        267,920        329,384   

Realized gain (loss) on investments

      31,105        302,473        20,815        22,256        30,413        126,803        4,456,527        2,604,752   

Change in unrealized gain (loss) on investments

      (417,690 )      16,428        (63,770 )      13,363        (379,754 )      54,615        23,465,035        9,899,571   

Reinvested capital gains

      72,537        52,973        8,266        5,975        123,654        129,449        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (255,524 )      552,301        (33,459 )      49,137        (206,380 )      372,147        28,189,482        12,833,707   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      234,771        308,145        -            6,265        239,829        153,481        1,299,416        1,172,108   

Transfers between subaccounts (including fixed account), net (note 3)

      (1,239,421 )      859,819.00        (5,979 )      94,251        (461,312 )      1,154,613        (1,576,738 )      (2,474,688 ) 

Redemptions (note 3)

      (2,173,198 )      (1,700,762 )      (182,850 )      (140,863 )      (784,313 )      (1,258,156 )      (12,800,426 )      (15,110,064 ) 

Annuity benefits

      (11,250 )      (13,491 )      -            -            (8,352 )      (10,165 )      (96,685 )      (89,070 ) 

Contract maintenance charges (note 2)

      (262 )      (335 )      -            -            (73 )      (84 )      (5,866 )      (6,758 ) 

Contingent deferred sales charges (note 2)

      (1,779 )      (2,601 )      -            (308 )      (76 )      (883 )      (13,804 )      (15,190 ) 

Adjustments to maintain reserves

      (9,710 )      (234 )      (13 )      (21 )      (156 )      (150 )      733        (1,348 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (3,200,849 )      (549,459 )      (188,842 )      (40,676 )      (1,014,453 )      38,656        (13,193,370 )      (16,525,010 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (3,456,373 )      2,842        (222,301 )      8,461        (1,220,833 )      410,803        14,996,112        (3,691,303 ) 

Contract owners’ equity beginning of period

      9,228,351        9,225,509        913,159        904,698        6,429,992        6,019,189        100,922,244        104,613,547   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,771,978        9,228,351        690,858        913,159        5,209,159        6,429,992        115,918,356        100,922,244   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      720,113        766,295        76,022        79,379        468,113        463,061        7,146,201        8,372,529   

Units purchased

      219,953        503,431        3,434        11,410        115,682        201,501        170,704        154,058   

Units redeemed

      (474,979 )      (549,613 )      (19,443 )      (14,767 )      (192,868 )      (196,449 )      (986,217 )      (1,380,386 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      465,087        720,113        60,013        76,022        390,927        468,113        6,330,688        7,146,201   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     TRF2     GBF     GBF2     CAF  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (3,786 )      (3,033 )      1,202,870        1,976,152        (9,334 )      (3,889 )      (115,254 )      (144,403 ) 

Realized gain (loss) on investments

      15,728        (26,088 )      (1,502,888 )      2,136,203        (51,440 )      72,364        2,081,296        2,112,701   

Change in unrealized gain (loss) on investments

      100,703        81,658        (10,567,064 )      (6,786,423 )      (230,808 )      (181,347 )      5,378,537        1,493,152   

Reinvested capital gains

      -            -            1,860,134        6,481,589        44,758        162,690        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      112,645        52,537        (9,006,948 )      3,807,521        (246,824 )      49,818        7,344,579        3,461,450   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      2,618        5,009        2,283,235        3,213,595        11,311        8,474        643,749        561,295   

Transfers between subaccounts (including fixed account), net (note 3)

      (1,464 )      (13,309.00 )      (9,000,572 )      (4,012,839 )      (65,649 )      (51,437 )      (607,155 )      304,172   

Redemptions (note 3)

      (55,985 )      (109,133 )      (26,931,262 )      (32,180,724 )      (777,713 )      (1,324,788 )      (3,758,968 )      (3,973,008 ) 

Annuity benefits

      -            -            (151,762 )      (186,593 )      (645 )      (688 )      (7,068 )      (6,679 ) 

Contract maintenance charges (note 2)

      -            -            (3,233 )      (4,026 )      -            -            (2,178 )      (2,448 ) 

Contingent deferred sales charges (note 2)

      -            -            (15,876 )      (35,254 )      -            (337 )      (6,202 )      (4,248 ) 

Adjustments to maintain reserves

      (26 )      (39 )      (4,126 )      (493 )      67        113        (634 )      (1,245 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (54,857 )      (117,472 )      (33,823,596 )      (33,206,334 )      (832,629 )      (1,368,663 )      (3,738,456 )      (3,122,161 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      57,788        (64,935 )      (42,830,544 )      (29,398,813 )      (1,079,453 )      (1,318,845 )      3,606,123        339,289   

Contract owners’ equity beginning of period

      410,807        475,742        190,657,396        220,056,209        4,539,972        5,858,817        27,790,594        27,451,305   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 468,595        410,807        147,826,852        190,657,396        3,460,519        4,539,972        31,396,717        27,790,594   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      35,483        45,677        10,447,542        12,293,357        336,649        438,421        2,932,172        3,261,287   

Units purchased

      213        4,075        1,123,266        2,510,918        27,838        15,903        160,603        300,397   

Units redeemed

      (4,148 )      (14,269 )      (3,035,291 )      (4,356,733 )      (91,247 )      (117,675 )      (509,553 )      (629,512 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      31,548        35,483        8,535,517        10,447,542        273,240        336,649        2,583,222        2,932,172   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVIX8     GVIDA     NVDBL2     NVDCA2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 65,391        39,830        171,188        113,559        40,033        35,527        11,447        6,033   

Realized gain (loss) on investments

      13,535        (440,621 )      1,685,717        (4,973,056 )      117,025        71,212        80,202        25,146   

Change in unrealized gain (loss) on investments

      601,658        1,000,600        8,185,369        10,310,917        446,098        222,600        104,784        69,595   

Reinvested capital gains

      -            -            -            -            52,924        51,866        22,851        12,712   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      680,584        599,809        10,042,274        5,451,420        656,080        381,205        219,284        113,486   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      194,593        40,012        1,434,871        861,151        294,630        101,200        333,906        26,796   

Transfers between subaccounts (including fixed account), net (note 3)

      267,742        (2,511,726.00 )      (334,464 )      (1,205,415 )      740,549        728,177        392,476        129,707   

Redemptions (note 3)

      (218,638 )      (288,580 )      (5,153,873 )      (3,954,065 )      (417,032 )      (463,412 )      (333,711 )      (200,100 ) 

Annuity benefits

      -            (999 )      (129,146 )      (113,109 )      (1,914 )      (1,826 )      (1,564 )      (1,168 ) 

Contract maintenance charges (note 2)

      (66 )      (80 )      (5,941 )      (6,624 )      (230 )      (148 )      (111 )      (119 ) 

Contingent deferred sales charges (note 2)

      (23 )      (881 )      (15,188 )      (19,205 )      (453 )      (229 )      (452 )      (1,999 ) 

Adjustments to maintain reserves

      (86 )      (135 )      (445 )      (322 )      (130 )      (40 )      (40 )      (51 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      243,522        (2,762,389 )      (4,204,186 )      (4,437,589 )      615,420        363,722        390,504        (46,934 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      924,106        (2,162,580 )      5,838,088        1,013,831        1,271,500        744,927        609,788        66,552   

Contract owners’ equity beginning of period

      3,273,006        5,435,586        40,767,150        39,753,319        5,145,908        4,400,981        1,084,524        1,017,972   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 4,197,112        3,273,006        46,605,238        40,767,150        6,417,408        5,145,908        1,694,312        1,084,524   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      360,461        701,900        2,595,098        2,902,862        377,590        349,250        70,337        73,171   

Units purchased

      107,247        94,549        414,140        512,812        91,606        82,240        53,580        14,863   

Units redeemed

      (80,179 )      (435,988 )      (652,679 )      (820,576 )      (48,893 )      (53,900 )      (29,679 )      (17,697 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      387,529        360,461        2,356,559        2,595,098        420,303        377,590        94,238        70,337   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVIDC     GVIDM     GVDMA     GVDMC  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 155,625        226,146        844,136        781,128        384,078        297,172        277,452        272,568   

Realized gain (loss) on investments

      1,410,612        163,471        (690,016 )      (2,282,610 )      (1,040,704 )      (2,707,646 )      146,556        (172,528 ) 

Change in unrealized gain (loss) on investments

      (693,654 )      816,295        29,702,227        21,435,832        20,377,081        14,726,916        4,435,192        4,103,118   

Reinvested capital gains

      593,385        646,625        -            -            -            -            784,191        276,192   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,465,968        1,852,537        29,856,347        19,934,350        19,720,455        12,316,442        5,643,391        4,479,350   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,089,921        592,329        3,468,559        3,116,306        2,859,480        2,254,291        1,320,583        780,354   

Transfers between subaccounts (including fixed account), net (note 3)

      (3,999,788 )      3,036,497.00        (667,881 )      (3,535,321 )      (2,492,035 )      (2,600,800 )      494,036        (1,083,453 ) 

Redemptions (note 3)

      (7,373,721 )      (7,441,332 )      (29,071,172 )      (33,208,120 )      (12,242,924 )      (18,372,990 )      (11,625,246 )      (8,497,493 ) 

Annuity benefits

      (33,711 )      (34,779 )      (653,193 )      (645,565 )      (334,826 )      (302,391 )      (140,208 )      (136,377 ) 

Contract maintenance charges (note 2)

      (1,074 )      (1,052 )      (10,299 )      (11,658 )      (12,462 )      (13,764 )      (2,740 )      (3,225 ) 

Contingent deferred sales charges (note 2)

      (6,525 )      (7,688 )      (31,282 )      (42,067 )      (33,238 )      (44,897 )      (7,562 )      (18,401 ) 

Adjustments to maintain reserves

      (410 )      (471 )      (6,831 )      (4,518 )      2,344        1,120        84        (46 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (10,325,308 )      (3,856,496 )      (26,972,099 )      (34,330,943 )      (12,253,661 )      (19,079,431 )      (9,961,053 )      (8,958,641 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (8,859,340 )      (2,003,959 )      2,884,248        (14,396,593 )      7,466,794        (6,762,989 )      (4,317,662 )      (4,479,291 ) 

Contract owners’ equity beginning of period

      46,629,290        48,633,249        209,723,689        224,120,282        100,397,839        107,160,828        65,203,477        69,682,768   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 37,769,950        46,629,290        212,607,937        209,723,689        107,864,633        100,397,839        60,885,815        65,203,477   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,409,144        3,695,621        13,526,513        15,869,278        6,299,513        7,590,233        4,348,864        4,970,184   

Units purchased

      312,005        714,789        873,774        658,854        335,577        219,608        291,672        248,024   

Units redeemed

      (1,067,449 )      (1,001,266 )      (2,529,526 )      (3,001,619 )      (1,047,174 )      (1,510,328 )      (930,802 )      (869,344 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,653,700        3,409,144        11,870,761        13,526,513        5,587,916        6,299,513        3,709,734        4,348,864   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     MCIF     SAM     NVMIG1     NVMIG3  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (45,318 )      (102,049 )      (2,285,834 )      (2,623,399 )      650        30        61,651        (265,816 ) 

Realized gain (loss) on investments

      3,099,266        1,672,668        2,719        -            7,544        117        2,364,611        1,806,589   

Change in unrealized gain (loss) on investments

      21,750,573        6,565,448        185        -            17,458        5,294        6,638,618        5,322,966   

Reinvested capital gains

      2,585,430        6,418,782        -            -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      27,389,951        14,554,849        (2,282,930 )      (2,623,399 )      25,652        5,441        9,064,880        6,863,739   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,603,925        1,255,953        25,724,722        19,798,113        2,115        1,226        397,156        394,452   

Transfers between subaccounts (including fixed account), net (note 3)

      (1,286,590 )      (6,343,905.00 )      60,462,107        52,711,328        105,363        51,663        (800,459 )      (1,735,951 ) 

Redemptions (note 3)

      (13,643,843 )      (14,261,432 )      (111,247,518 )      (119,333,539 )      (9,184 )      -            (6,721,247 )      (7,181,845 ) 

Annuity benefits

      (79,505 )      (72,311 )      (204,346 )      (274,766 )      -            -            (7,146 )      (8,691 ) 

Contract maintenance charges (note 2)

      (2,043 )      (2,439 )      (3,536 )      (3,940 )      -            -            (1,246 )      (1,447 ) 

Contingent deferred sales charges (note 2)

      (11,233 )      (15,783 )      (37,413 )      (85,261 )      (60 )      -            (6,593 )      (7,079 ) 

Adjustments to maintain reserves

      (130 )      (628 )      (3,324 )      (11,356 )      40        (12 )      (657 )      (524 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (13,419,419 )      (19,440,545 )      (25,309,308 )      (47,199,421 )      98,274        52,877        (7,140,192 )      (8,541,085 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      13,970,532        (4,885,696 )      (27,592,238 )      (49,822,820 )      123,926        58,318        1,924,688        (1,677,346 ) 

Contract owners’ equity beginning of period

      92,249,454        97,135,150        208,761,386        258,584,206        70,192        11,874        49,431,910        51,109,256   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 106,219,986        92,249,454        181,169,148        208,761,386        194,118        70,192        51,356,598        49,431,910   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,063,218        3,748,165        17,342,803        21,235,532        4,488        870        5,166,488        6,118,224   

Units purchased

      262,494        163,045        17,555,131        12,995,450        8,504        3,675        134,217        159,785   

Units redeemed

      (644,909 )      (847,992 )      (19,730,661 )      (16,888,179 )      (2,659 )      (57 )      (828,111 )      (1,111,521 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,680,803        3,063,218        15,167,273        17,342,803        10,333        4,488        4,472,594        5,166,488   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVDIV2     GVDIV3     GVDIV6     NVMLG1  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (7 )      (23 )      96,403        (71,638 )      3,105        (6,320 )      (92,531 )      (169,232 ) 

Realized gain (loss) on investments

      (689 )      (103 )      (55,037 )      (2,350,431 )      (12,894 )      (64,243 )      1,561,348        723,827   

Change in unrealized gain (loss) on investments

      735        421        1,637,052        3,774,656        92,577        136,480        3,681,806        2,168,296   

Reinvested capital gains

      -            -            -            -            -            -            1,594,683        569,918   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      39        295        1,678,418        1,352,587        82,788        65,917        6,745,306        3,292,809   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      -            -            134,306        178,748        -            394        928,877        289,126   

Transfers between subaccounts (including fixed account), net (note 3)

      (2,109 )      -            (351,150 )      (327,222 )      (9,343 )      148        1,318,963        (800,871 ) 

Redemptions (note 3)

      9        14        (1,237,758 )      (1,374,162 )      (54,936 )      (36,372 )      (3,350,997 )      (3,424,154 ) 

Annuity benefits

      (51 )      (186 )      -            -            (9,647 )      (9,354 )      (29,497 )      (30,177 ) 

Contract maintenance charges (note 2)

      -            -            (433 )      (466 )      -            -            (1,166 )      (1,439 ) 

Contingent deferred sales charges (note 2)

      -            -            (747 )      (2,864 )      -            (7 )      (5,216 )      (6,741 ) 

Adjustments to maintain reserves

      -            (1 )      (437 )      (365 )      (617 )      1,147        46        (1,590 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (2,151 )      (173 )      (1,456,219 )      (1,526,331 )      (74,543 )      (44,044 )      (1,138,990 )      (3,975,846 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (2,112 )      122        222,199        (173,744 )      8,245        21,873        5,606,316        (683,037 ) 

Contract owners’ equity beginning of period

      2,112        1,990        9,296,209        9,469,953        462,688        440,815        22,170,759        22,853,796   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ -            2,112        9,518,408        9,296,209        470,933        462,688        27,777,075        22,170,759   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      179        195        603,932        712,738        30,450        32,579        2,143,624        2,538,927   

Units purchased

      1        1        32,392        124,783        312        2,676        527,754        263,513   

Units redeemed

      (180 )      (17 )      (121,132 )      (233,589 )      (5,078 )      (4,805 )      (651,445 )      (658,816 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      -            179        515,192        603,932        25,684        30,450        2,019,933        2,143,624   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVMLG2     NVMLV1     NVMLV2     NVMMG1  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (6,744 )      (9,002 )      26,644        15,767        (14,941 )      (19,498 )      (973,483 )      (956,816 ) 

Realized gain (loss) on investments

      55,888        38,399        875,426        (22,564 )      160,736        131,244        6,540,293        5,719,988   

Change in unrealized gain (loss) on investments

      49,760        30,395        1,033,730        1,168,951        644,838        379,900        15,872,688        (1,331,738 ) 

Reinvested capital gains

      34,059        12,892        411,470        -            168,195        -            6,296,586        7,806,377   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      132,963        72,684        2,347,270        1,162,154        958,828        491,646        27,736,084        11,237,811   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      281        37,633        202,535        131,875        794        10,813        1,265,766        1,168,127   

Transfers between subaccounts (including fixed account), net (note 3)

      (37,834 )      (35,569.00 )      586,875        388,586        (89,310 )      (69,447 )      (1,243,211 )      (3,693,233 ) 

Redemptions (note 3)

      (110,054 )      (103,768 )      (1,309,528 )      (1,576,981 )      (358,881 )      (649,864 )      (12,580,787 )      (13,563,970 ) 

Annuity benefits

      (215 )      (610 )      (134 )      (388 )      (10,799 )      (14,327 )      (77,400 )      (72,894 ) 

Contract maintenance charges (note 2)

      -            -            (156 )      (168 )      (11 )      (16 )      (2,775 )      (3,367 ) 

Contingent deferred sales charges (note 2)

      -            (86 )      (1,444 )      (1,295 )      (221 )      (57 )      (14,030 )      (17,439 ) 

Adjustments to maintain reserves

      4        (35,876 )      (313 )      (324 )      3,323        37,699        (65 )      25,214   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (147,818 )      (138,276 )      (522,165 )      (1,058,695 )      (455,105 )      (685,199 )      (12,652,502 )      (16,157,562 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (14,855 )      (65,592 )      1,825,105        103,459        503,723        (193,553 )      15,083,582        (4,919,751 ) 

Contract owners’ equity beginning of period

      474,688        540,280        7,958,019        7,854,560        3,121,845        3,315,398        80,225,363        85,145,114   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 459,833        474,688        9,783,124        7,958,019        3,625,568        3,121,845        95,308,945        80,225,363   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      47,902        62,261        701,373        806,019        307,809        390,315        7,505,685        9,057,308   

Units purchased

      28        189        361,946        193,239        4,310        4,095        394,164        242,930   

Units redeemed

      (12,222 )      (14,548 )      (419,193 )      (297,885 )      (44,315 )      (86,601 )      (1,408,431 )      (1,794,553 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      35,708        47,902        644,126        701,373        267,804        307,809        6,491,418        7,505,685   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVMMG2     NVMMV2     SCGF     SCGF2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (82,988 )      (76,776 )      2,422        (46,627 )      (289,546 )      (267,591 )      (6,308 )      (6,447 ) 

Realized gain (loss) on investments

      375,338        388,477        4,110,043        2,569,169        4,781,175        898,874        22,217        4,938   

Change in unrealized gain (loss) on investments

      1,220,839        (102,103 )      11,592,126        159,150        2,986,216        2,131,203        82,910        41,495   

Reinvested capital gains

      486,322        547,237        2,959,602        5,672,390        1,479,517        -            18,489        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,999,511        756,835        18,664,193        8,354,082        8,957,362        2,762,486        117,308        39,986   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      30,933        50,940        562,036        702,057        413,334        430,837        90        -       

Transfers between subaccounts (including fixed account), net (note 3)

      137,454        (312,927.00 )      (659,665 )      (2,164,846 )      465,871        (1,181,060 )      (8,534 )      25,418   

Redemptions (note 3)

      (469,107 )      (677,750 )      (7,841,663 )      (9,342,860 )      (2,927,365 )      (3,659,959 )      (79,043 )      (121,724 ) 

Annuity benefits

      -            -            (20,815 )      (22,114 )      (9,146 )      (7,887 )      (39 )      (32 ) 

Contract maintenance charges (note 2)

      -            -            (1,170 )      (1,336 )      (796 )      (891 )      -            -       

Contingent deferred sales charges (note 2)

      -            -            (7,824 )      (8,992 )      (2,852 )      (3,104 )      -            (108 ) 

Adjustments to maintain reserves

      (76 )      (70 )      (205 )      (723 )      2,573        (552 )      (33 )      (41 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (300,796 )      (939,807 )      (7,969,306 )      (10,838,814 )      (2,058,381 )      (4,422,616 )      (87,559 )      (96,487 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,698,715        (182,972 )      10,694,887        (2,484,732 )      6,898,981        (1,660,130 )      29,749        (56,501 ) 

Contract owners’ equity beginning of period

      5,689,561        5,872,533        57,673,371        60,158,103        22,111,080        23,771,210        318,125        374,626   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 7,388,276        5,689,561        68,368,258        57,673,371        29,010,061        22,111,080        347,874        318,125   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      549,050        641,306        5,061,320        6,072,780        1,396,829        1,683,899        30,452        39,878   

Units purchased

      50,099        25,644        462,760        134,230        385,680        149,307        936        2,588   

Units redeemed

      (78,132 )      (117,900 )      (1,051,607 )      (1,145,690 )      (496,614 )      (436,377 )      (7,825 )      (12,014 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      521,017        549,050        4,472,473        5,061,320        1,285,895        1,396,829        23,563        30,452   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     SCVF     SCVF2     SCF     SCF2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (327,712 )      (290,000 )      (10,005 )      (10,690 )      (973,370 )      (907,477 )      (29,717 )      (31,776 ) 

Realized gain (loss) on investments

      2,316,792        (2,415,600 )      75,812        19,474        (151,816 )      (5,816,670 )      110,603        (81,912 ) 

Change in unrealized gain (loss) on investments

      32,228,768        19,379,035        197,855        132,737        34,389,528        19,453,972        479,634        324,374   

Reinvested capital gains

      -            -            -            -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      34,217,848        16,673,435        263,662        141,521        33,264,342        12,729,825        560,520        210,686   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,261,309        1,088,900        26,427        923        1,169,084        885,343        16,662        (1 ) 

Transfers between subaccounts (including fixed account), net (note 3)

      (1,445,699 )      (3,924,376.00 )      (32,583 )      (24,517 )      (3,643,463 )      (4,005,654 )      (49,023 )      (7,027 ) 

Redemptions (note 3)

      (13,597,700 )      (13,822,451 )      (141,399 )      (191,407 )      (12,161,561 )      (13,453,715 )      (347,347 )      (226,367 ) 

Annuity benefits

      (50,108 )      (43,183 )      (112 )      (90 )      (45,916 )      (49,169 )      -            -       

Contract maintenance charges (note 2)

      (2,240 )      (2,236 )      -            -            (2,353 )      (2,625 )      -            -       

Contingent deferred sales charges (note 2)

      (9,794 )      (11,703 )      -            (4 )      (10,360 )      (11,786 )      -            (2 ) 

Adjustments to maintain reserves

      478        (1,102 )      (6 )      (9 )      (5,405 )      (45,772 )      (71 )      (69 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (13,843,754 )      (16,716,151 )      (147,673 )      (215,104 )      (14,699,974 )      (16,683,378 )      (379,779 )      (233,466 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      20,374,094        (42,716 )      115,989        (73,583 )      18,564,368        (3,953,553 )      180,741        (22,780 ) 

Contract owners’ equity beginning of period

      93,728,992        93,771,708        766,719        840,302        91,054,143        95,007,696        1,667,793        1,690,573   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 114,103,086        93,728,992        882,708        766,719        109,618,511        91,054,143        1,848,534        1,667,793   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,933,718        3,501,538        51,758        67,112        3,336,881        3,983,163        107,261        123,033   

Units purchased

      221,427        86,600        5,226        2,146        132,253        103,072        5,230        1,937   

Units redeemed

      (587,790 )      (654,420 )      (13,656 )      (17,500 )      (585,612 )      (749,354 )      (26,193 )      (17,709 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,567,355        2,933,718        43,328        51,758        2,883,522        3,336,881        86,298        107,261   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     MSBF     NVSTB2     NVOLG1     NVOLG2  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 1,155,362        843,565        291        7,765        (1,364,844 )      (1,706,436 )      (111,863 )      (132,571 ) 

Realized gain (loss) on investments

      2,251,573        2,472,953        71,552        77,263        16,963,567        6,894,095        395,132        269,309   

Change in unrealized gain (loss) on investments

      (4,685,544 )      3,209,477        (151,823 )      160,584        101,875,169        57,222,440        2,263,967        1,320,959   

Reinvested capital gains

      -            -            7,003        -            -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      (1,278,609 )      6,525,995        (72,977 )      245,612        117,473,892        62,410,099        2,547,236        1,457,697   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      844,036        703,500        91,824        294,528        3,783,480        3,980,551        39,184        128,935   

Transfers between subaccounts (including fixed account), net (note 3)

      (4,165,175 )      3,527,046.00        2,700,404        (750,669 )      (15,002,562 )      (17,637,828 )      (189,004 )      (238,390 ) 

Redemptions (note 3)

      (7,526,917 )      (9,230,802 )      (2,761,152 )      (1,899,443 )      (53,228,861 )      (57,562,095 )      (1,332,374 )      (2,359,041 ) 

Annuity benefits

      (38,130 )      (32,011 )      (44,112 )      (47,086 )      (363,018 )      (345,874 )      (8,485 )      (7,414 ) 

Contract maintenance charges (note 2)

      (433 )      (575 )      (70 )      (159 )      (11,433 )      (13,604 )      -            -       

Contingent deferred sales charges (note 2)

      (3,259 )      (8,642 )      (422 )      (2,886 )      (40,918 )      (53,591 )      (190 )      (928 ) 

Adjustments to maintain reserves

      591        (689 )      (204 )      (176 )      63        (4,872 )      (10 )      (1 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (10,889,287 )      (5,042,173 )      (13,732 )      (2,405,891 )      (64,863,249 )      (71,637,313 )      (1,490,879 )      (2,476,839 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (12,167,896 )      1,483,822        (86,709 )      (2,160,279 )      52,610,643        (9,227,214 )      1,056,357        (1,019,142 ) 

Contract owners’ equity beginning of period

      62,260,599        60,776,777        8,913,083        11,073,362        367,122,142        376,349,356        8,347,113        9,366,255   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 50,092,703        62,260,599        8,826,374        8,913,083        419,732,785        367,122,142        9,403,470        8,347,113   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,260,113        3,529,900        782,664        998,649        22,889,891        27,561,260        541,918        708,208   

Units purchased

      320,384        624,672        472,734        123,223        493,446        589,116        7,018        16,251   

Units redeemed

      (902,881 )      (894,459 )      (467,183 )      (339,208 )      (4,042,173 )      (5,260,485 )      (93,175 )      (182,541 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,677,616        3,260,113        788,215        782,664        19,341,164        22,889,891        455,761        541,918   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NVTIV3     EIF     NVRE1     NCPG2  
     2013     2012     2013     2012     2013     2012     2013         2012      

Investment activity:

                 

Net investment income (loss)

    $ 20,419        56,090        (318,178 )      9,783        268,562        (98,073 )      46        -       

Realized gain (loss) on investments

      (95,058 )      (96,155 )      2,957,962        2,028,516        6,174,643        6,678,302        -            -       

Change in unrealized gain (loss) on investments

      563,105        564,600        5,342,002        1,686,887        (10,574,167 )      (2,156,379 )      981        -       

Reinvested capital gains

      25,031        58,833        -            -            6,193,818        8,596,787        41        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      513,497        583,368        7,981,786        3,725,186        2,062,856        13,020,637        1,068        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      145,031        58,102        729,827        310,451        1,322,416        903,154        -            -       

Transfers between subaccounts (including fixed account), net (note 3)

      (1,241,728 )      806,951.00        4,307,984        (498,525 )      (2,638,633 )      (1,536,515 )      186,472        -       

Redemptions (note 3)

      (393,758 )      (486,782 )      (3,626,839 )      (3,154,321 )      (11,383,152 )      (13,210,987 )      -            -       

Annuity benefits

      -            -            (39,067 )      (36,177 )      (43,357 )      (49,385 )      -            -       

Contract maintenance charges (note 2)

      (504 )      (549 )      (915 )      (1,342 )      (2,313 )      (2,891 )      -            -       

Contingent deferred sales charges (note 2)

      (2,519 )      (2,022 )      (4,139 )      (5,889 )      (8,737 )      (15,031 )      -            -       

Adjustments to maintain reserves

      (193 )      (227 )      (54 )      (753 )      3,541        (1,139 )      (3 )      -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,493,671 )      375,473        1,366,797        (3,386,556 )      (12,750,235 )      (13,912,794 )      186,469        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (980,174 )      958,841        9,348,583        338,630        (10,687,379 )      (892,157 )      187,537        -       

Contract owners’ equity beginning of period

      4,099,498        3,140,657        23,058,786        22,720,156        92,443,657        93,335,814        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 3,119,324        4,099,498        32,407,369        23,058,786        81,756,278        92,443,657        187,537        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      294,124        266,383        1,643,914        1,921,900        8,144,479        9,422,684        -            -       

Units purchased

      46,283        92,312        564,669        197,108        818,541        954,998        17,065        -       

Units redeemed

      (151,678 )      (64,571 )      (474,569 )      (475,094 )      (1,896,475 )      (2,233,203 )      -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      188,729        294,124        1,734,014        1,643,914        7,066,545        8,144,479        17,065        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     NCPGI2      IDPG2      IDPGI2      NVSIX2  
     2013         2012          2013         2012          2013         2012          2013         2012      

Investment activity:

                    

Net investment income (loss)

    $ 2,349        -             1,442        -             332        -             7,173        -       

Realized gain (loss) on investments

      39        -             9        -             954        -             1,384        -       

Change in unrealized gain (loss) on investments

      11,009        -             4,703        -             758        -             35,682        -       

Reinvested capital gains

      1,942        -             144        -             102        -             -            -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      15,339        -             6,298        -             2,146        -             44,239        -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Equity transactions:

                    

Purchase payments received from contract owners (note 3)

      207,151        -             38,765        -             -            -             51,725        -       

Transfers between subaccounts (including fixed account), net (note 3)

      4,624        -             82,121        -             30,828        -             798,847        -       

Redemptions (note 3)

      -            -             (251 )      -             -            -             (29,460 )      -       

Annuity benefits

      -            -             -            -             -            -             -            -       

Contract maintenance charges (note 2)

      -            -             -            -             -            -             (15 )      -       

Contingent deferred sales charges (note 2)

      -            -             -            -             -            -             -            -       

Adjustments to maintain reserves

      (1 )      -             3        -             6        -             7        -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net equity transactions

      211,774        -             120,638        -             30,834        -             821,104        -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net change in contract owners’ equity

      227,113        -             126,936        -             32,980        -             865,343        -       

Contract owners’ equity beginning of period

      -            -             -            -             -            -             -            -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 227,113        -             126,936        -             32,980        -             865,343        -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

CHANGES IN UNITS:

                    

Beginning units

      -            -             -            -             -            -             -            -       

Units purchased

      20,964        -             11,814        -             5,071        -             105,890        -       

Units redeemed

      -            -             (24 )      -             (1,984 )      -             (37,164 )      -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Ending units

      20,964        -             11,790        -             3,087        -             68,726        -       
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     GVEX2      ALVGIB     ALVPGB     ALVSVB  
     2013         2012          2013     2012     2013     2012     2013     2012  

Investment activity:

                  

Net investment income (loss)

    $ 22,171        -             (9,113 )      (6,809 )      (17,457 )      (18,763 )      (84,970 )      (86,127 ) 

Realized gain (loss) on investments

      47,937        -             (18,203 )      (62,940 )      53,065        18,259        1,452,591        151,342   

Change in unrealized gain (loss) on investments

      120,073        -             382,524        255,934        255,816        149,484        747,551        874,154   

Reinvested capital gains

      -            -             -            -            -            -            492,490        240,873   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      190,181        -             355,208        186,185        291,424        148,980        2,607,662        1,180,242   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (note 3)

      542,986        -             -            30        -            4,802        385,367        193,660   

Transfers between subaccounts (including fixed account), net (note 3)

      1,204,898        -             (14,021 )      42,873        (89,573 )      (6,045 )      (897,785 )      (544,326 ) 

Redemptions (note 3)

      (56,261 )      -             (398,115 )      (235,857 )      (113,122 )      (216,322 )      (846,719 )      (1,519,801 ) 

Annuity benefits

      -            -             -            -            -            -            (38,099 )      (34,444 ) 

Contract maintenance charges (note 2)

      -            -             -            -            -            -            (47 )      (43 ) 

Contingent deferred sales charges (note 2)

      -            -             (98 )      -            (86 )      -            (408 )      (570 ) 

Adjustments to maintain reserves

      (55 )      -             (73 )      (61 )      (30 )      (1,278 )      (271 )      (266 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      1,691,568        -             (412,307 )      (193,015 )      (202,811 )      (218,843 )      (1,397,962 )      (1,905,790 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,881,749        -             (57,099 )      (6,830 )      88,613        (69,863 )      1,209,700        (725,548 ) 

Contract owners’ equity beginning of period

      -            -             1,277,040        1,283,870        979,227        1,049,090        7,048,207        7,773,755   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 1,881,749        -             1,219,941        1,277,040        1,067,840        979,227        8,257,907        7,048,207   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      -            -             102,976        118,845        85,005        104,755        498,580        630,824   

Units purchased

      269,602        -             1,449        9,691        2,108        1,774        397,462        105,235   

Units redeemed

      (108,954 )      -             (30,404 )      (25,560 )      (18,167 )      (21,524 )      (464,694 )      (237,479 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      160,648        -             74,021        102,976        68,946        85,005        431,348        498,580   
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     ACVIG     ACVIG2     ACVIP2     ACVI  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 643,444        535,392        191        (1,109 )      277,492        910,398        8,508        (3,233 ) 

Realized gain (loss) on investments

      988,411        (216,697 )      (2,670 )      (52,504 )      1,813,877        1,795,963        (17,141 )      14,324   

Change in unrealized gain (loss) on investments

      15,888,675        6,857,406        311,501        181,032        (9,826,194 )      (10,111 )      333,675        265,670   

Reinvested capital gains

      -            -            -            -            2,185,191        1,625,515        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      17,520,530        7,176,101        309,022        127,419        (5,549,634 )      4,321,765        325,042        276,761   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      582,715        695,536        3,292        35,048        1,152,828        798,686        39,358        193,303   

Transfers between subaccounts (including fixed account), net (note 3)

      (1,145,957 )      145,281.00        (18,936 )      17,981        (12,825,544 )      903,784        112,743        (271,145 ) 

Redemptions (note 3)

      (7,695,649 )      (9,003,443 )      (123,120 )      (249,371 )      (9,100,010 )      (9,557,966 )      (111,013 )      (260,286 ) 

Annuity benefits

      (26,845 )      (22,598 )      (474 )      (403 )      (135,970 )      (156,267 )      (1,574 )      (1,362 ) 

Contract maintenance charges (note 2)

      (1,474 )      (1,612 )      -            -            (166 )      (550 )      -            -       

Contingent deferred sales charges (note 2)

      (6,279 )      (7,873 )      (241 )      -            (3,468 )      (5,758 )      (1,190 )      (1,156 ) 

Adjustments to maintain reserves

      100        (1,003 )      50        51        (358 )      (699 )      314        173   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (8,293,389 )      (8,195,712 )      (139,429 )      (196,694 )      (20,912,688 )      (8,018,770 )      38,638        (340,473 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      9,227,141        (1,019,611 )      169,593        (69,275 )      (26,462,322 )      (3,697,005 )      363,680        (63,712 ) 

Contract owners’ equity beginning of period

      54,947,189        55,966,800        1,003,588        1,072,863        69,228,365        72,925,370        1,516,065        1,579,777   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 64,174,330        54,947,189        1,173,181        1,003,588        42,766,043        69,228,365        1,879,745        1,516,065   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,486,389        4,001,635        81,372        97,513        4,443,914        4,977,859        89,644        111,870   

Units purchased

      201,058        299,825        1,258        5,377        502,869        974,156        11,733        8,889   

Units redeemed

      (677,040 )      (815,071 )      (10,939 )      (21,518 )      (1,931,823 )      (1,508,101 )      (9,484 )      (31,115 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      3,010,407        3,486,389        71,691        81,372        3,014,960        4,443,914        91,893        89,644   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     ACVI3     ACVMV1     ACVMV2     ACVU1  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 102        (922 )      14,965        101,547        (3,035 )      715        (197 )      (1,263 ) 

Realized gain (loss) on investments

      12,461        6,556        631,438        397,125        22,852        (1,225 )      45        69,989   

Change in unrealized gain (loss) on investments

      8,530        15,255        2,626,892        489,954        90,271        34,389        4,956        (17,278 ) 

Reinvested capital gains

      -            -            194,451        648,586        7,087        24,077        -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      21,093        20,889        3,467,746        1,637,212        117,175        57,956        4,804        51,448   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      (181 )      (250 )      630,750        97,307        -            659        (8 )      200   

Transfers between subaccounts (including fixed account), net (note 3)

      (17,129 )      (2,162.00 )      1,496,368        (206,989 )      (46,598 )      (23,760 )      (9 )      (264,696 ) 

Redemptions (note 3)

      (17,441 )      (20,878 )      (1,551,284 )      (1,250,736 )      (12,518 )      (18,432 )      8        (8,595 ) 

Annuity benefits

      (682 )      (589 )      -            -            (28,328 )      (31,185 )      -            -       

Contract maintenance charges (note 2)

      (12 )      (12 )      (357 )      (383 )      -            -            7        -       

Contingent deferred sales charges (note 2)

      1        -            (1,206 )      (1,889 )      -            -            1        -       

Adjustments to maintain reserves

      137        100        (338 )      (221 )      1,173        (1,105 )      3        4   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (35,307 )      (23,791 )      573,933        (1,362,911 )      (86,271 )      (73,823 )      2        (273,087 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      (14,214 )      (2,902 )      4,041,679        274,301        30,904        (15,867 )      4,806        (221,639 ) 

Contract owners’ equity beginning of period

      116,815        119,717        11,680,827        11,406,526        445,290        461,157        13,858        235,497   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 102,601        116,815        15,722,506        11,680,827        476,194        445,290        18,664        13,858   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      7,644        9,402        851,917        958,698        28,445        33,862        1,197        22,767   

Units purchased

      -            76        264,824        133,130        525        1,614        -            83,223   

Units redeemed

      (2,168 )      (1,834 )      (224,053 )      (239,911 )      (5,230 )      (7,031 )      -            (104,793 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      5,476        7,644        892,688        851,917        23,740        28,445        1,197        1,197   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    ACVV     DVSCS     DCAP     DCAPS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 11,316        16,322        (11,673 )      (169,538 )      551,280        1,724,538        (2,610 )      16,599   

Realized gain (loss) on investments

     208,471        24,153        2,161,139        1,924,971        822,927        414,890        72,661        (5,431 ) 

Change in unrealized gain (loss) on investments

     356,902        226,680        6,411,883        776,328        10,499,289        3,755,580        126,905        92,804   

Reinvested capital gains

     -            -            367,633        847,920        158,836        -            2,908        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     576,689        267,155        8,928,982        3,379,681        12,032,332        5,895,008        199,864        103,972   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     59,917        194,317        394,100        593,916        979,213        1,340,875        39        752   

Transfers between subaccounts (including fixed account), net (note 3)

     745        (96,126.00 )      1,161,326        (656,004 )      (3,768,177 )      4,071,721        (17,588 )      14,960   

Redemptions (note 3)

     (447,556 )      (434,596 )      (3,956,872 )      (3,220,861 )      (7,980,505 )      (9,344,431 )      (227,984 )      (310,355 ) 

Annuity benefits

     -            (23 )      (47,568 )      (39,262 )      (45,932 )      (50,007 )      -            -       

Contract maintenance charges (note 2)

     -            1        (1,260 )      (1,327 )      (1,162 )      (1,296 )      -            -       

Contingent deferred sales charges (note 2)

     (2,621 )      (811 )      (3,505 )      (4,469 )      (7,957 )      (13,633 )      -            (1,447 ) 

Adjustments to maintain reserves

     (244 )      670        (425 )      (393 )      (11,037 )      (1,225 )      (16 )      (27 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (389,759 )      (336,568 )      (2,454,204 )      (3,328,400 )      (10,835,557 )      (3,997,996 )      (245,549 )      (296,117 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     186,930        (69,413 )      6,474,778        51,281        1,196,775        1,897,012        (45,685 )      (192,145 ) 

Contract owners’ equity beginning of period

     2,070,334        2,139,747        24,416,512        24,365,231        65,893,721        63,996,709        1,180,325        1,372,470   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,257,264        2,070,334        30,891,290        24,416,512        67,090,496        65,893,721        1,134,640        1,180,325   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     92,264        108,358        1,365,131        1,559,234        3,631,658        3,822,632        88,355        111,004   

Units purchased

     8,524        9,047        239,846        303,818        267,249        831,000        1,555        7,733   

Units redeemed

     (23,650 )      (25,141 )      (363,582 )      (497,921 )      (821,988 )      (1,021,974 )      (17,896 )      (30,382 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     77,138        92,264        1,241,395        1,365,131        3,076,919        3,631,658        72,014        88,355   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    DSC     DVIV     FCA2S     FHIBS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (438 )      (399 )      740        1,571        (3,241 )      (7,239 )      102,786        114,353   

Realized gain (loss) on investments

     1,948        2,316        1,976        (11,928 )      11,106        15,559        120,765        170,875   

Change in unrealized gain (loss) on investments

     11,119        5,079        7,999        18,475        25,776        3,694        (125,995 )      (31,484 ) 

Reinvested capital gains

     -            -            -            -            6,689        25,080        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     12,629        6,996        10,715        8,118        40,330        37,094        97,556        253,744   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     2,451        1,487        -            -            673        1,405        17,748        15,589   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,115 )      (52.00 )      -            -            (48,759 )      (14,952 )      46,227        99,560   

Redemptions (note 3)

     (9,633 )      (23,213 )      (60,472 )      (32,018 )      (50,863 )      (193,574 )      (388,841 )      (430,668 ) 

Annuity benefits

     -            -            -            -            -            -            (216 )      (207 ) 

Contract maintenance charges (note 2)

     -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

     -            -            -            -            -            (1,151 )      (142 )      (55 ) 

Adjustments to maintain reserves

     (26 )      (5 )      (25 )      11        (45 )      (41 )      (17 )      31   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (8,323 )      (21,783 )      (60,497 )      (32,007 )      (98,994 )      (208,313 )      (325,241 )      (315,750 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     4,306        (14,787 )      (49,782 )      (23,889 )      (58,664 )      (171,219 )      (227,685 )      (62,006 ) 

Contract owners’ equity beginning of period

     31,378        46,165        59,124        83,013        325,343        496,562        2,181,049        2,243,055   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 35,684        31,378        9,342        59,124        266,679        325,343        1,953,364        2,181,049   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,740        4,774        4,058        6,452        30,241        50,099        113,545        131,217   

Units purchased

     248        136        -            -            230        543        4,742        14,097   

Units redeemed

     (849 )      (2,170 )      (3,522 )      (2,394 )      (8,664 )      (20,401 )      (20,949 )      (31,769 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,139        2,740        536        4,058        21,807        30,241        97,338        113,545   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FQB     FQBS     FVSS2     FCS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 3,146,696        3,390,985        84,115        86,270        (8,325 )      (10,755 )      (18,873 )      16,594   

Realized gain (loss) on investments

     750,176        801,143        20,755        36,114        48,480        (3 )      (64,998 )      (212,329 ) 

Change in unrealized gain (loss) on investments

     (4,078,399 )      4,929,705        (148,491 )      187,425        126,598        179,512        3,496,168        1,838,899   

Reinvested capital gains

     -            -            -            -            -            -            3,722        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     (181,527 )      9,121,833        (43,621 )      309,809        166,753        168,754        3,416,019        1,643,164   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     846,957        983,919        19,698        39,624        5,625        5,872        251,923        1,129,890   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,913,984 )      (1,840,287.00 )      89,826        (160,050 )      7,148        (49,833 )      15,492        (145,076 ) 

Redemptions (note 3)

     (14,245,846 )      (15,430,596 )      (472,591 )      (707,007 )      (156,730 )      (237,389 )      (1,407,062 )      (1,825,205 ) 

Annuity benefits

     (68,004 )      (73,399 )      (703 )      (712 )      -            -            -            (132 ) 

Contract maintenance charges (note 2)

     (1,039 )      (1,383 )      -            -            -            -            (17 )      (25 ) 

Contingent deferred sales charges (note 2)

     (7,694 )      (8,812 )      -            (52 )      -            (14 )      (10,969 )      (7,154 ) 

Adjustments to maintain reserves

     (5,096 )      3,233        110        91        4        (22 )      (189 )      (917 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (15,394,706 )      (16,367,325 )      (363,660 )      (828,106 )      (143,953 )      (281,386 )      (1,150,822 )      (848,619 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (15,576,233 )      (7,245,492 )      (407,281 )      (518,297 )      22,800        (112,632 )      2,265,197        794,545   

Contract owners’ equity beginning of period

     106,050,776        113,296,268        4,028,322        4,546,619        656,663        769,295        11,983,127        11,188,582   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 90,474,543        106,050,776        3,621,041        4,028,322        679,463        656,663        14,248,324        11,983,127   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     5,823,950        6,746,552        284,778        345,820        42,219        61,512        507,700        545,334   

Units purchased

     293,737        588,019        9,808        10,851        1,298        473        18,424        21,758   

Units redeemed

     (1,136,652 )      (1,510,621 )      (35,519 )      (71,893 )      (9,166 )      (19,766 )      (60,688 )      (59,392 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     4,981,035        5,823,950        259,067        284,778        34,351        42,219        465,436        507,700   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FNRS2     FEIS     FEI2     FF10S  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (78,638 )      (98,065 )      2,698,257        3,838,618        17,754        43,630        47,302        55,232   

Realized gain (loss) on investments

     1,151,279        3,216,148        (2,272,279 )      (8,047,487 )      (134,661 )      (328,302 )      422,945        707,535   

Change in unrealized gain (loss) on investments

     2,333,300        (2,547,635 )      37,959,562        22,821,298        921,419        672,548        626,671        87,569   

Reinvested capital gains

     101,607        -            14,488,748        13,681,559        322,198        312,136        125,669        144,611   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     3,507,548        570,448        52,874,288        32,293,988        1,126,710        700,012        1,222,587        994,947   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     486,855        465,590        2,651,275        2,726,839        80,802        32,035        384,426        116,098   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,110,736 )      (3,411,903.00 )      (4,241,996 )      (4,186,518 )      35,997        (50,780 )      1,007,009        352,617   

Redemptions (note 3)

     (2,362,015 )      (3,435,503 )      (31,157,774 )      (35,093,679 )      (864,791 )      (1,071,802 )      (2,017,407 )      (1,730,265 ) 

Annuity benefits

     (26,103 )      (23,851 )      (169,367 )      (149,559 )      -            -            (5,040 )      (7,185 ) 

Contract maintenance charges (note 2)

     (896 )      (976 )      (3,522 )      (3,748 )      -            -            (82 )      (107 ) 

Contingent deferred sales charges (note 2)

     (4,009 )      (6,094 )      (23,578 )      (26,384 )      (114 )      (524 )      (5,597 )      (682 ) 

Adjustments to maintain reserves

     (317 )      (643 )      7,372        1,036        (96 )      (118 )      (191 )      (151 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (3,017,221 )      (6,413,380 )      (32,937,590 )      (36,732,013 )      (748,202 )      (1,091,189 )      (636,882 )      (1,269,675 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     490,327        (5,842,932 )      19,936,698        (4,438,025 )      378,508        (391,177 )      585,705        (274,728 ) 

Contract owners’ equity beginning of period

     16,672,039        22,514,971        211,400,236        215,838,261        4,675,223        5,066,400        10,073,753        10,348,481   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 17,162,366        16,672,039        231,336,934        211,400,236        5,053,731        4,675,223        10,659,458        10,073,753   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,612,415        2,263,082        12,322,376        14,580,614        368,868        459,405        805,672        915,875   

Units purchased

     225,817        459,261        517,529        494,088        17,206        12,564        169,376        171,430   

Units redeemed

     (482,967 )      (1,109,928 )      (2,204,554 )      (2,752,326 )      (68,322 )      (103,101 )      (214,083 )      (281,633 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,355,265        1,612,415        10,635,351        12,322,376        317,752        368,868        760,965        805,672   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FF10S2     FF20S     FF20S2     FF30S  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (358 )      (173 )      77,706        88,078        (521 )      (205 )      46,658        59,024   

Realized gain (loss) on investments

     2,532        1,108        643,751        396,337        549        (722 )      272,203        275,876   

Change in unrealized gain (loss) on investments

     3,685        3,250        630,875        408,979        15,808        13,537        889,337        472,428   

Reinvested capital gains

     743        853        151,323        112,591        1,909        1,627        104,570        59,084   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     6,602        5,038        1,503,655        1,005,985        17,745        14,237        1,312,768        866,412   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     (8 )      27        642,665        490,083        -            -            365,046        294,919   

Transfers between subaccounts (including fixed account), net (note 3)

     1,039        10,730.00        1,878,292        1,631,053        -            -            674,212        212,562   

Redemptions (note 3)

     (1,116 )      (3,874 )      (1,801,036 )      (1,233,940 )      (1,717 )      (3,493 )      (821,871 )      (907,756 ) 

Annuity benefits

     (6,122 )      (5,808 )      -            (5,132 )      (8,873 )      (8,354 )      -            -       

Contract maintenance charges (note 2)

     -            -            (963 )      (909 )      -            -            (1,481 )      (1,559 ) 

Contingent deferred sales charges (note 2)

     -            -            (4,074 )      (14,606 )      -            -            (6,297 )      (9,503 ) 

Adjustments to maintain reserves

     2,076        1        (184 )      (173 )      -            -            (172 )      (130 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (4,131 )      1,076        714,700        866,376        (10,590 )      (11,847 )      209,437        (411,467 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     2,471        6,114        2,218,355        1,872,361        7,155        2,390        1,522,205        454,945   

Contract owners’ equity beginning of period

     62,155        56,041        10,106,278        8,233,917        137,177        134,787        6,650,619        6,195,674   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 64,626        62,155        12,324,633        10,106,278        144,332        137,177        8,172,824        6,650,619   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,864        4,823        836,539        763,176        10,554        11,497        569,456        605,991   

Units purchased

     259        830        268,957        214,020        77        72        217,218        112,785   

Units redeemed

     (575 )      (789 )      (215,749 )      (140,657 )      (842 )      (1,015 )      (204,180 )      (149,320 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     4,548        4,864        889,747        836,539        9,789        10,554        582,494        569,456   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FF30S2     FGOS     FGS     FG2  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (301 )      816        (9,917 )      (6,798 )      (1,446,470 )      (1,007,739 )      (43,200 )      (35,698 ) 

Realized gain (loss) on investments

     12,244        18,397        135,776        57,271        10,041,943        10,496,309        110,933        158,906   

Change in unrealized gain (loss) on investments

     40,245        16,310        205,783        65,438        38,878,941        10,705,775        625,912        160,312   

Reinvested capital gains

     4,559        2,764        553        -            107,541        -            1,659        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     56,747        38,287        332,195        115,911        47,581,955        20,194,345        695,304        283,520   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     -            (47 )      15,590        63,690        1,972,589        2,549,727        9,100        12,193   

Transfers between subaccounts (including fixed account), net (note 3)

     -            (9,222.00 )      (8,657 )      335,460        (1,901,725 )      (6,389,785 )      38,337        (133,067 ) 

Redemptions (note 3)

     (20,052 )      (18,154 )      (143,584 )      (187,235 )      (20,414,759 )      (23,342,846 )      (246,378 )      (280,073 ) 

Annuity benefits

     (11,330 )      (15,287 )      -            -            (65,075 )      (83,929 )      -            -       

Contract maintenance charges (note 2)

     -            -            -            -            (6,142 )      (6,863 )      -            -       

Contingent deferred sales charges (note 2)

     -            -            (1,034 )      (535 )      (21,330 )      (19,724 )      (138 )      (154 ) 

Adjustments to maintain reserves

     1,056        (995 )      455        (322 )      (4,653 )      (3,562 )      (82 )      (45 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (30,326 )      (43,705 )      (137,230 )      211,058        (20,441,095 )      (27,296,982 )      (199,161 )      (401,146 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     26,421        (5,418 )      194,965        326,969        27,140,860        (7,102,637 )      496,143        (117,626 ) 

Contract owners’ equity beginning of period

     305,870        311,288        977,697        650,728        147,878,628        154,981,265        2,176,630        2,294,256   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 332,291        305,870        1,172,662        977,697        175,019,488        147,878,628        2,672,773        2,176,630   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     23,093        26,670        83,048        65,159        9,695,757        11,526,597        189,748        224,696   

Units purchased

     183        166        8,549        38,961        411,907        595,238        8,998        17,152   

Units redeemed

     (2,276 )      (3,743 )      (18,483 )      (21,072 )      (1,585,053 )      (2,426,078 )      (23,886 )      (52,100 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     21,000        23,093        73,114        83,048        8,522,611        9,695,757        174,860        189,748   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FHIS     FHISR     FIGBS     FMCS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 1,802,969        2,008,375        2,529,946        2,992,861        465,712        622,054        (256,586 )      (235,750 ) 

Realized gain (loss) on investments

     (706,508 )      (1,084,976 )      1,418,908        (132,703 )      953,071        1,596,311        3,966,221        1,779,111   

Change in unrealized gain (loss) on investments

     827,598        4,724,097        (1,379,847 )      3,437,949        (3,560,836 )      (1,032,107 )      2,436,914        434,115   

Reinvested capital gains

     -            -            -            -            553,469        1,614,466        4,320,151        2,677,468   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     1,924,059        5,647,496        2,569,007        6,298,107        (1,588,584 )      2,800,724        10,466,700        4,654,944   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     105,863        179,848        879,965        938,889        639,195        1,116,534        827,904        821,888   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,686,559 )      (1,502,004.00 )      (7,026,948 )      3,246,988        (6,609,009 )      134,219        (3,217,378 )      (3,168,250 ) 

Redemptions (note 3)

     (5,680,861 )      (6,725,622 )      (7,566,503 )      (5,183,042 )      (7,802,415 )      (9,077,942 )      (5,256,110 )      (5,665,934 ) 

Annuity benefits

     (21,911 )      (15,405 )      -            -            (82,573 )      (94,958 )      (422 )      (368 ) 

Contract maintenance charges (note 2)

     (352 )      (557 )      (261 )      (305 )      (1,283 )      (1,587 )      (981 )      (1,092 ) 

Contingent deferred sales charges (note 2)

     (3,270 )      (2,809 )      (2,653 )      (3,189 )      (6,878 )      (9,936 )      (6,787 )      (9,348 ) 

Adjustments to maintain reserves

     230        (1,174 )      (400 )      (463 )      (364 )      1,452        (507 )      (370 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (7,286,860 )      (8,067,723 )      (13,716,800 )      (1,001,122 )      (13,863,327 )      (7,932,218 )      (7,654,281 )      (8,023,474 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (5,362,801 )      (2,420,227 )      (11,147,793 )      5,296,985        (15,451,911 )      (5,131,494 )      2,812,419        (3,368,530 ) 

Contract owners’ equity beginning of period

     44,665,296        47,085,523        64,630,282        59,333,297        59,170,732        64,302,226        33,893,278        37,261,808   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 39,302,495        44,665,296        53,482,489        64,630,282        43,718,821        59,170,732        36,705,697        33,893,278   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     2,889,322        3,441,039        4,789,971        4,959,858        3,975,975        4,529,810        2,847,168        3,553,566   

Units purchased

     12,279        12,158        2,393,328        3,762,009        347,172        736,725        340,269        330,826   

Units redeemed

     (477,730 )      (563,875 )      (3,396,553 )      (3,931,896 )      (1,303,048 )      (1,290,560 )      (896,044 )      (1,037,224 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,423,871        2,889,322        3,786,746        4,789,971        3,020,099        3,975,975        2,291,393        2,847,168   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FMC2     FOS     FO2R     FOSR  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (97,633 )      (89,540 )      25,808        104,879        (18,268 )      (4,349 )      34,929        159,109   

Realized gain (loss) on investments

     17,514        (22,415 )      612,198        158,806        (196,854 )      (364,688 )      (1,774,263 )      (2,574,884 ) 

Change in unrealized gain (loss) on investments

     1,065,445        352,842        3,212,031        2,295,233        848,679        824,528        8,136,706        6,723,028   

Reinvested capital gains

     785,983        472,090        56,022        48,050        9,597        9,057        95,206        79,665   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     1,771,309        712,977        3,906,059        2,606,968        643,154        464,548        6,492,578        4,386,918   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     75,802        14,413        11,725        96,961        29,189        26,902        476,210        326,776   

Transfers between subaccounts (including fixed account), net (note 3)

     (305,082 )      (60,806.00 )      (550,556 )      (661,647 )      (67,464 )      756        160,563        (585,648 ) 

Redemptions (note 3)

     (806,760 )      (653,761 )      (1,666,691 )      (1,785,026 )      (510,574 )      (553,414 )      (3,607,610 )      (4,281,477 ) 

Annuity benefits

     (87,505 )      (83,330 )      (8,189 )      (7,862 )      (173 )      (148 )      (45,455 )      (37,534 ) 

Contract maintenance charges (note 2)

     -            (115 )      (101 )      (103 )      -            -            (788 )      (832 ) 

Contingent deferred sales charges (note 2)

     (64 )      (165 )      (447 )      (625 )      -            (94 )      (3,354 )      (4,294 ) 

Adjustments to maintain reserves

     6,134        (778 )      (8,294 )      (41,917 )      13        (73 )      (348 )      386   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,117,475 )      (784,542 )      (2,222,553 )      (2,400,219 )      (549,009 )      (526,071 )      (3,020,782 )      (4,582,623 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     653,834        (71,565 )      1,683,506        206,749        94,145        (61,523 )      3,471,796        (195,705 ) 

Contract owners’ equity beginning of period

     5,909,147        5,980,712        14,740,309        14,533,560        2,674,839        2,736,362        24,275,063        24,470,768   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,562,981        5,909,147        16,423,815        14,740,309        2,768,984        2,674,839        27,746,859        24,275,063   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     225,619        257,566        979,779        1,153,475        197,646        239,221        1,616,873        1,944,416   

Units purchased

     4,553        4,966        6,410        2,101        3,051        8,657        179,466        107,924   

Units redeemed

     (44,486 )      (36,913 )      (139,141 )      (175,797 )      (40,328 )      (50,232 )      (364,149 )      (435,467 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     185,686        225,619        847,048        979,779        160,369        197,646        1,432,190        1,616,873   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FVSS     FTVIS2     FTVRD2     FTVSV2  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (42,886 )      (71,734 )      2,963,611        2,759,841        182        1,018        21,016        (46,696 ) 

Realized gain (loss) on investments

     1,436,260        997,729        1,634,511        (1,136,842 )      40,996        17,915        817,425        154,816   

Change in unrealized gain (loss) on investments

     1,720,252        1,664,721        2,172,379        4,019,195        135,314        50,059        3,074,057        1,964,911   

Reinvested capital gains

     -            -            -            -            -            -            232,554        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     3,113,626        2,590,716        6,770,501        5,642,194        176,492        68,992        4,145,052        2,073,031   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     392,143        122,535        2,583,568        734,595        (367 )      -            645,113        191,668   

Transfers between subaccounts (including fixed account), net (note 3)

     (190,929 )      78,663.00        3,341,539        5,129,242        52,299        (5,285 )      (346,294 )      (1,991,730 ) 

Redemptions (note 3)

     (2,187,367 )      (1,680,677 )      (6,164,192 )      (7,068,034 )      (57,978 )      (44,015 )      (1,731,544 )      (2,244,826 ) 

Annuity benefits

     (14,118 )      (12,111 )      (61,277 )      (62,496 )      (61,953 )      (59,770 )      (28,319 )      (27,425 ) 

Contract maintenance charges (note 2)

     (336 )      (502 )      (379 )      (514 )      -            (141 )      (485 )      (510 ) 

Contingent deferred sales charges (note 2)

     (2,395 )      (1,868 )      (3,385 )      (6,731 )      -            (47 )      (3,246 )      (3,089 ) 

Adjustments to maintain reserves

     (412 )      (346 )      (717 )      (493 )      1,179        (577 )      345        (840 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (2,003,414 )      (1,494,306 )      (304,843 )      (1,274,431 )      (66,820 )      (109,835 )      (1,464,430 )      (4,076,752 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,110,212        1,096,410        6,465,658        4,367,763        109,672        (40,843 )      2,680,622        (2,003,721 ) 

Contract owners’ equity beginning of period

     11,704,776        10,608,366        54,104,522        49,736,759        676,912        717,755        12,482,144        14,485,865   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 12,814,988        11,704,776        60,570,180        54,104,522        786,584        676,912        15,162,766        12,482,144   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     680,153        774,871        3,981,931        4,067,800        47,724        55,911        1,017,605        1,387,527   

Units purchased

     114,717        133,456        927,838        862,835        5,328        551        339,858        161,943   

Units redeemed

     (215,364 )      (228,174 )      (946,091 )      (948,704 )      (9,720 )      (8,738 )      (432,558 )      (531,865 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     579,506        680,153        3,963,678        3,981,931        43,332        47,724        924,905        1,017,605   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FTVDM3     TIF2     TIF3     FTVGI3  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 46,029        31,838        267        422        97,806        139,763        1,682,241        2,725,968   

Realized gain (loss) on investments

     (492,106 )      49,068        (448 )      (1,117 )      434,139        47,854        1,803,043        1,512,368   

Change in unrealized gain (loss) on investments

     240,650        859,667        5,253        4,406        1,135,698        1,065,593        (3,837,995 )      2,414,958   

Reinvested capital gains

     -            -            -            -            -            -            577,350        84,184   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     (205,427 )      940,573        5,072        3,711        1,667,643        1,253,210        224,639        6,737,478   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     115,784        96,919        -            -            145,559        83,994        950,364        554,608   

Transfers between subaccounts (including fixed account), net (note 3)

     (3,119,879 )      3,153,148.00        -            (1,770 )      (547,703 )      1,323,273        (1,830,539 )      (2,191,316 ) 

Redemptions (note 3)

     (1,158,837 )      (1,326,648 )      531        387        (700,476 )      (847,531 )      (6,742,126 )      (9,466,423 ) 

Annuity benefits

     (17,695 )      (19,185 )      (2,731 )      (2,356 )      (12,546 )      (17,433 )      (23,720 )      (21,380 ) 

Contract maintenance charges (note 2)

     (198 )      (250 )      -            (1 )      (127 )      (135 )      (427 )      (539 ) 

Contingent deferred sales charges (note 2)

     (912 )      (1,701 )      -            -            (1,194 )      (907 )      (3,588 )      (6,216 ) 

Adjustments to maintain reserves

     (268 )      (357 )      -            (53 )      (186 )      (287 )      (364 )      (440 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (4,182,005 )      1,901,926        (2,200 )      (3,793 )      (1,116,673 )      540,974        (7,650,400 )      (11,131,706 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (4,387,432 )      2,842,499        2,872        (82 )      550,970        1,794,184        (7,425,761 )      (4,394,228 ) 

Contract owners’ equity beginning of period

     10,594,418        7,751,919        24,909        24,991        9,040,822        7,246,638        50,332,270        54,726,498   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,206,986        10,594,418        27,781        24,909        9,591,792        9,040,822        42,906,509        50,332,270   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     878,045        715,467        1,523        1,784        799,025        745,150        2,803,406        3,466,837   

Units purchased

     136,789        432,576        38        34        184,741        219,355        337,046        382,640   

Units redeemed

     (493,784 )      (269,998 )      (162 )      (295 )      (285,693 )      (165,480 )      (762,922 )      (1,046,071 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     521,050        878,045        1,399        1,523        698,073        799,025        2,377,530        2,803,406   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    FTVFA2     AMTB     AMGP     AMCG  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 546,828        73,402        314,089        362,324        (1,856 )      (2,775 )      (4,857 )      (4,943 ) 

Realized gain (loss) on investments

     5,065        94,371        (427,766 )      (110,267 )      3,197        10,098        15,629        27,660   

Change in unrealized gain (loss) on investments

     (486,192 )      286,373        710        471,312        50,360        10,863        64,280        6,811   

Reinvested capital gains

     880,260        -            -            -            10,640        1,362        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     945,961        454,146        (112,967 )      723,369        62,341        19,548        75,052        29,528   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     703,656        48,254        317,934        264,977        26        1,310        (1 )      (16,448 ) 

Transfers between subaccounts (including fixed account), net (note 3)

     1,654,280        (533,533.00 )      10,172,417        1,383,839        (3,005 )      143        (6,487 )      (31,625 ) 

Redemptions (note 3)

     (822,947 )      (501,271 )      (4,521,378 )      (4,736,746 )      (1,419 )      (31,974 )      (18,606 )      (15,533 ) 

Annuity benefits

     (2,589 )      (2,283 )      (33,076 )      (39,719 )      -            -            (925 )      651   

Contract maintenance charges (note 2)

     (78 )      (68 )      (417 )      (516 )      (17 )      (17 )      (33 )      (39 ) 

Contingent deferred sales charges (note 2)

     (282 )      (1,429 )      (1,845 )      (3,153 )      -            -            1        -       

Adjustments to maintain reserves

     (120 )      (152 )      (354 )      (365 )      (3 )      -            216        345   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     1,531,920        (990,482 )      5,933,281        (3,131,683 )      (4,418 )      (30,538 )      (25,835 )      (62,649 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     2,477,881        (536,336 )      5,820,314        (2,408,314 )      57,923        (10,990 )      49,217        (33,121 ) 

Contract owners’ equity beginning of period

     3,583,526        4,119,862        20,398,769        22,807,083        173,493        184,483        257,220        290,341   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 6,061,407        3,583,526        26,219,083        20,398,769        231,416        173,493        306,437        257,220   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     345,064        452,981        1,803,378        2,113,398        13,209        15,702        14,902        17,132   

Units purchased

     231,250        49,543        1,664,304        267,265        2        81        5        87   

Units redeemed

     (97,556 )      (157,460 )      (1,103,001 )      (577,285 )      (314 )      (2,574 )      (1,264 )      (2,317 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     478,758        345,064        2,364,681        1,803,378        12,897        13,209        13,643        14,902   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    AMTP     AMRS     AMFAS     AMSRS  
    2013     2012         2013         2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (267 )      (663 )      -            (14 )      (18,740 )      (16,465 )      (36,507 )      (70,094 ) 

Realized gain (loss) on investments

     5,043        363        -            758        75,745        (23,860 )      397,245        265,344   

Change in unrealized gain (loss) on investments

     7,976        7,394        -            (624 )      440,541        128,915        2,570,557        564,121   

Reinvested capital gains

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     12,752        7,094        -            120        497,546        88,590        2,931,295        759,371   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     79        1,205        -            (1,549 )      16,141        4,631        167,253        80,063   

Transfers between subaccounts (including fixed account), net (note 3)

     703        3,244.00        -            (4,437 )      287,496        (73,197 )      1,225,765        (362,609 ) 

Redemptions (note 3)

     (23,196 )      (1,940 )      -            -            (100,682 )      (256,524 )      (704,792 )      (1,037,443 ) 

Annuity benefits

     -            -            -            2,448        (2,031 )      (2,826 )      (4,105 )      (3,584 ) 

Contract maintenance charges (note 2)

     (12 )      (7 )      -            -            (13 )      (14 )      (224 )      (236 ) 

Contingent deferred sales charges (note 2)

     -            -            -            -            (56 )      (90 )      (643 )      (837 ) 

Adjustments to maintain reserves

     7        (4 )      -            635        (186 )      (74 )      (231 )      (130 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (22,419 )      2,498        -            (2,903 )      200,669        (328,094 )      683,023        (1,324,776 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (9,667 )      9,592        -            (2,783 )      698,215        (239,504 )      3,614,318        (565,405 ) 

Contract owners’ equity beginning of period

     55,896        46,304        -            2,783        1,039,403        1,278,907        7,704,483        8,269,888   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 46,229        55,896        -            -            1,737,618        1,039,403        11,318,801        7,704,483   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,405        4,144        -            244        102,750        137,510        537,817        634,052   

Units purchased

     117        532        -            -            62,819        28,449        151,978        56,091   

Units redeemed

     (1,869 )      (271 )      -            (244 )      (41,483 )      (63,209 )      (107,483 )      (152,326 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     2,653        4,405        -            -            124,086        102,750        582,312        537,817   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    OVGR     OVGS3     OVGS     OVGSS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (3,982 )      (13,458 )      171,308        726,914        106,760        461,468        (9,845 )      1,102   

Realized gain (loss) on investments

     72,661        60,842        969,516        (927,247 )      1,137,024        2,771,845        23,764        88,236   

Change in unrealized gain (loss) on investments

     694,863        312,674        16,982,687        13,444,656        9,755,721        5,125,843        312,060        179,636   

Reinvested capital gains

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     763,542        360,058        18,123,511        13,244,323        10,999,505        8,359,156        325,979        268,974   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     70,093        372,461        1,870,507        1,498,540        40,401        106,423        -            -       

Transfers between subaccounts (including fixed account), net (note 3)

     (56,658 )      (65,090.00 )      1,044,173        (2,597,372 )      (1,472,387 )      (1,965,669 )      -            (63,097 ) 

Redemptions (note 3)

     (243,076 )      (699,066 )      (10,008,767 )      (11,395,311 )      (5,984,352 )      (6,611,537 )      (223,405 )      (536,070 ) 

Annuity benefits

     -            (79 )      (38,965 )      (39,823 )      (35,724 )      (39,209 )      (3,572 )      (3,026 ) 

Contract maintenance charges (note 2)

     1        -            (2,544 )      (2,722 )      (436 )      (437 )      -            -       

Contingent deferred sales charges (note 2)

     (1,855 )      (1,910 )      (12,337 )      (13,692 )      (2,284 )      (2,012 )      -            (359 ) 

Adjustments to maintain reserves

     (717 )      1,120        (1,310 )      (576 )      (794 )      (447 )      (84 )      (9 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (232,212 )      (392,564 )      (7,149,243 )      (12,550,956 )      (7,455,576 )      (8,512,888 )      (227,061 )      (602,561 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     531,330        (32,506 )      10,974,268        693,367        3,543,929        (153,732 )      98,918        (333,587 ) 

Contract owners’ equity beginning of period

     2,795,761        2,828,267        73,531,726        72,838,359        46,150,593        46,304,325        1,428,258        1,761,845   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 3,327,091        2,795,761        84,505,994        73,531,726        49,694,522        46,150,593        1,527,176        1,428,258   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     156,559        178,265        3,103,349        3,682,904        3,050,182        3,666,878        85,619        125,525   

Units purchased

     6,025        9,217        286,476        196,416        32,276        11,807        1        -       

Units redeemed

     (17,418 )      (30,923 )      (564,184 )      (775,971 )      (473,989 )      (628,503 )      (12,197 )      (39,906 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     145,166        156,559        2,825,641        3,103,349        2,608,469        3,050,182        73,423        85,619   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    OVGI     OVGIS     OVSC     OVSCS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 29,008        (139,528 )      (22,811 )      (28,781 )      (27,510 )      (61,041 )      (998 )      (1,545 ) 

Realized gain (loss) on investments

     8,882,240        930,063        117,620        79,872        3,930,184        969,411        12,309        2,785   

Change in unrealized gain (loss) on investments

     16,708,450        13,529,484        555,850        302,423        275,807        650,811        42,751        23,429   

Reinvested capital gains

     -            -            -            -            134,297        -            1,986        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     25,619,698        14,320,019        650,659        353,514        4,312,778        1,559,181        56,048        24,669   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     1,271,430        1,018,754        8,108        2,890        508,170        222,102        -            -       

Transfers between subaccounts (including fixed account), net (note 3)

     (2,531,823 )      (3,934,847.00 )      (75,513 )      (81,473 )      (4,628,088 )      (361,837 )      (6,011 )      -       

Redemptions (note 3)

     (13,229,460 )      (14,247,410 )      (355,365 )      (359,561 )      (1,114,604 )      (1,281,034 )      (32,526 )      (4,516 ) 

Annuity benefits

     (49,159 )      (48,134 )      -            -            (140 )      (117 )      (10,031 )      (9,684 ) 

Contract maintenance charges (note 2)

     (2,034 )      (2,221 )      -            -            (182 )      (195 )      -            -       

Contingent deferred sales charges (note 2)

     (14,609 )      (12,900 )      (19 )      -            (1,283 )      (1,797 )      -            -       

Adjustments to maintain reserves

     (457 )      (963 )      (57 )      (45 )      (318 )      (245 )      2        2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (14,556,112 )      (17,227,721 )      (422,846 )      (438,189 )      (5,236,445 )      (1,423,123 )      (48,566 )      (14,198 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     11,063,586        (2,907,702 )      227,813        (84,675 )      (923,667 )      136,058        7,482        10,471   

Contract owners’ equity beginning of period

     91,652,396        94,560,098        2,448,732        2,533,407        11,788,433        11,652,375        166,865        156,394   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 102,715,982        91,652,396        2,676,545        2,448,732        10,864,766        11,788,433        174,347        166,865   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     6,117,718        7,294,295        197,383        233,999        1,043,075        1,204,457        10,228        11,138   

Units purchased

     704,133        538,160        1,425        2,284        874,046        678,707        93        87   

Units redeemed

     (1,559,858 )      (1,714,737 )      (32,363 )      (38,900 )      (1,223,127 )      (840,089 )      (2,625 )      (997 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     5,261,993        6,117,718        166,445        197,383        693,994        1,043,075        7,696        10,228   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    OVAG     OVSB     OVSBS     PMVAAD  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (636,008 )      (625,638 )      168,897        (2,193 )      93,955        148,860        196,531        87,205   

Realized gain (loss) on investments

     7,131,365        3,654,401        (16,598 )      478        55,621        55,631        (26,737 )      8,587   

Change in unrealized gain (loss) on investments

     10,475,353        4,987,237        (249,380 )      19,170        (218,874 )      152,317        (260,045 )      30,322   

Reinvested capital gains

     -            -            -            -            -            41,583        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     16,970,710        8,016,000        (97,081 )      17,455        (69,298 )      398,391        (90,251 )      126,114   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     1,057,408        1,211,282        159,189        7,136        15,354        1,957        1,877,256        94,584   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,626,986 )      (1,089,846.00 )      3,713,661        1,330,671        144,224        64,924        752,448        3,531,027   

Redemptions (note 3)

     (7,240,053 )      (8,858,766 )      (375,186 )      (78,906 )      (511,183 )      (648,227 )      (711,856 )      (76,621 ) 

Annuity benefits

     (2,769 )      (4,665 )      -            -            (2,606 )      (406 )      -            -       

Contract maintenance charges (note 2)

     (3,156 )      (3,560 )      (23 )      (2 )      -            -            (40 )      (17 ) 

Contingent deferred sales charges (note 2)

     (11,332 )      (11,851 )      (384 )      -            (39 )      (134 )      (508 )      -       

Adjustments to maintain reserves

     (567 )      (1,425 )      (117 )      15        (46 )      (72 )      (139 )      (17 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (7,827,455 )      (8,758,831 )      3,497,140        1,258,914        (354,296 )      (581,958 )      1,917,161        3,548,956   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     9,143,255        (742,831 )      3,400,059        1,276,369        (423,594 )      (183,567 )      1,826,910        3,675,070   

Contract owners’ equity beginning of period

     53,452,005        54,194,836        1,276,369        -            3,481,727        3,665,294        3,675,070        -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 62,595,260        53,452,005        4,676,428        1,276,369        3,058,133        3,481,727        5,501,980        3,675,070   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     3,506,895        4,099,641        125,636        -            199,380        235,323        345,476        -       

Units purchased

     564,348        279,674        517,062        144,997        12,751        21,886        479,809        364,841   

Units redeemed

     (1,019,886 )      (872,420 )      (176,512 )      (19,361 )      (33,783 )      (57,829 )      (303,027 )      (19,365 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     3,051,357        3,506,895        466,186        125,636        178,348        199,380        522,258        345,476   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    PMVFAD     PMVLAD     PMVRRA     PMVTRA  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 32,680        375,416        82,658        252,880        5,270        (740 )      23,508        43,224   

Realized gain (loss) on investments

     (192,017 )      182,427        247,999        237,048        (12,831 )      45,949        (1,276 )      33,616   

Change in unrealized gain (loss) on investments

     (497,366 )      (375,326 )      (1,007,975 )      1,236,380        (109,023 )      (17,864 )      (120,610 )      102,417   

Reinvested capital gains

     51,633        178,796        -            -            7,737        63,221        15,024        54,683   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     (605,070 )      361,313        (677,318 )      1,726,308        (108,847 )      90,566        (83,354 )      233,940   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     114,605        87,725        1,422,052        847,081        35,079        163,550        117,295        297,845   

Transfers between subaccounts (including fixed account), net (note 3)

     (1,108,779 )      (1,174,029.00 )      3,217,412        8,326,948        (57,440 )      60,348        (859,043 )      340,785   

Redemptions (note 3)

     (969,360 )      (1,556,576 )      (7,276,998 )      (6,323,620 )      (152,399 )      (327,263 )      (474,587 )      (727,375 ) 

Annuity benefits

     -            (1,560 )      (31,497 )      (32,999 )      -            -            -            -       

Contract maintenance charges (note 2)

     (32 )      (39 )      (271 )      (308 )      -            -            -            -       

Contingent deferred sales charges (note 2)

     (50 )      (392 )      (3,092 )      (3,560 )      (665 )      (1,942 )      (1,139 )      (2,819 ) 

Adjustments to maintain reserves

     (47 )      374        821        1,029        147        9        380        (678 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (1,963,663 )      (2,644,497 )      (2,671,573 )      2,814,571        (175,278 )      (105,298 )      (1,217,094 )      (92,242 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (2,568,733 )      (2,283,184 )      (3,348,891 )      4,540,879        (284,125 )      (14,732 )      (1,300,448 )      141,698   

Contract owners’ equity beginning of period

     7,703,833        9,987,017        42,529,115        37,988,236        1,201,582        1,216,314        2,846,766        2,705,068   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 5,135,100        7,703,833        39,180,224        42,529,115        917,457        1,201,582        1,546,318        2,846,766   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     586,111        790,240        3,531,011        3,301,266        79,167        86,160        184,087        189,504   

Units purchased

     92,092        120,070        1,519,915        1,232,335        17,408        42,809        41,132        49,588   

Units redeemed

     (254,924 )      (324,199 )      (1,735,500 )      (1,002,590 )      (29,240 )      (49,802 )      (121,989 )      (55,005 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     423,279        586,111        3,315,426        3,531,011        67,335        79,167        103,230        184,087   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    PMVTRD     PVGIB     ACEG2     ACC2  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 180,517        157,404        51        50        (31,456 )      (31,526 )      (24,074 )      (23,825 ) 

Realized gain (loss) on investments

     51,706        63,825        (322 )      (596 )      276,390        172,395        188,821        (68,905 ) 

Change in unrealized gain (loss) on investments

     (1,012,512 )      305,182        3,890        2,275        455,043        (63,452 )      1,527,550        1,012,573   

Reinvested capital gains

     152,985        321,568        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     (627,304 )      847,979        3,619        1,729        699,977        77,417        1,692,297        919,843   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     1,692,861        859,671        -            -            108,061        22,775        82,001        12,380   

Transfers between subaccounts (including fixed account), net (note 3)

     2,519,120        10,489,311.00        -            -            754,767        1,095,479        (130,145 )      (226,048 ) 

Redemptions (note 3)

     (2,919,854 )      (1,550,691 )      (1,039 )      (860 )      (312,203 )      (293,854 )      (1,014,912 )      (1,051,281 ) 

Annuity benefits

     -            -            -            -            (1,197 )      (1,379 )      (6,105 )      (5,080 ) 

Contract maintenance charges (note 2)

     (180 )      (95 )      -            -            (11 )      (5 )      -            -       

Contingent deferred sales charges (note 2)

     (1,866 )      (1,091 )      -            -            (154 )      -            (227 )      (264 ) 

Adjustments to maintain reserves

     734        (313 )      -            1        512        222        (84 )      (71 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     1,290,815        9,796,792        (1,039 )      (859 )      549,775        823,238        (1,069,472 )      (1,270,364 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     663,511        10,644,771        2,580        870        1,249,752        900,655        622,825        (350,521 ) 

Contract owners’ equity beginning of period

     16,852,755        6,207,984        10,993        10,123        2,041,371        1,140,716        5,590,930        5,941,451   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 17,516,266        16,852,755        13,573        10,993        3,291,123        2,041,371        6,213,755        5,590,930   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     1,553,315        619,895        877        950        188,672        113,135        412,036        512,532   

Units purchased

     891,707        1,446,425        13        13        115,962        129,394        14,582        8,699   

Units redeemed

     (778,045 )      (513,005 )      (82 )      (86 )      (76,072 )      (53,857 )      (83,295 )      (109,195 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     1,666,977        1,553,315        808        877        228,562        188,672        343,323        412,036   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    ACEG     AVBV2     AVGI     AVCE2  
    2013     2012         2013         2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (361 )      (371 )      -            (130 )      (62 )      (493 )      (4,092 )      (6,673 ) 

Realized gain (loss) on investments

     743        (247 )      -            13,089        5,315        15,800        61,512        38,898   

Change in unrealized gain (loss) on investments

     16,677        (1,085 )      -            (8,440 )      9,485        (575 )      86,337        36,751   

Reinvested capital gains

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     17,059        (1,703 )      -            4,519        14,738        14,732        143,757        68,976   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     738        514        -            (4,631 )      163        171        -            316   

Transfers between subaccounts (including fixed account), net (note 3)

     185        52,515.00        -            (28,904 )      -            -            5,031        (7,382 ) 

Redemptions (note 3)

     (3,697 )      (6,533 )      -            (2,802 )      (20,286 )      (97,769 )      (116,210 )      (123,190 ) 

Annuity benefits

     -            -            -            4,703        -            -            -            -       

Contract maintenance charges (note 2)

     -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

     -            -            -            -            -            -            -            (29 ) 

Adjustments to maintain reserves

     (34 )      6        -            (37,134 )      (4 )      (11 )      (35 )      (28 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (2,808 )      46,502        -            (68,768 )      (20,127 )      (97,609 )      (111,214 )      (130,313 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     14,251        44,799        -            (64,249 )      (5,389 )      (82,877 )      32,543        (61,337 ) 

Contract owners’ equity beginning of period

     44,799        -            -            64,249        64,665        147,542        584,210        645,547   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 59,050        44,799        -            -            59,276        64,665        616,753        584,210   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     4,630        -            -            6,785        4,438        11,470        51,171        63,040   

Units purchased

     168        5,311        -            -            10        12        1,143        437   

Units redeemed

     (390 )      (681 )      -            (6,785 )      (1,220 )      (7,044 )      (9,503 )      (12,306 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     4,408        4,630        -            -            3,228        4,438        42,811        51,171   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    IVKEI1     IVHS     IVRE     VYDS  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ 2,112        1,880        (980 )      (1,386 )      6,987        (1,836 )      (18,558 )      (6,776 ) 

Realized gain (loss) on investments

     25,980        (444 )      21,546        4,797        26,007        10,079        (44,728 )      (126,269 ) 

Change in unrealized gain (loss) on investments

     42,836        24,826        61,948        16,580        (29,046 )      70,048        1,035,739        596,070   

Reinvested capital gains

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     70,928        26,262        82,514        19,991        3,948        78,291        972,453        463,025   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     531        626        12,278        22,124        17,149        50,217        6,081        66,102   

Transfers between subaccounts (including fixed account), net (note 3)

     174,588        (67.00 )      77,434        66,008        (76,272 )      27,606        (32,923 )      (42,019 ) 

Redemptions (note 3)

     (161,752 )      (24,038 )      (32,780 )      (16,916 )      (51,645 )      (67,034 )      (344,318 )      (584,472 ) 

Annuity benefits

     -            -            -            -            -            -            -            -       

Contract maintenance charges (note 2)

     -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

     -            -            (119 )      (28 )      (164 )      (166 )      (58 )      -       

Adjustments to maintain reserves

     (45 )      (2 )      (21 )      10        58        (154 )      (83 )      (95 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     13,322        (23,481 )      56,792        71,198        (110,874 )      10,469        (371,301 )      (560,484 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     84,250        2,781        139,306        91,189        (106,926 )      88,760        601,152        (97,459 ) 

Contract owners’ equity beginning of period

     241,404        238,623        176,151        84,962        378,685        289,925        3,167,471        3,264,930   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 325,654        241,404        315,457        176,151        271,759        378,685        3,768,623        3,167,471   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     23,707        26,106        13,126        7,570        32,559        31,564        248,424        294,187   

Units purchased

     15,796        65        7,449        7,047        10,026        8,470        476        5,793   

Units redeemed

     (13,555 )      (2,464 )      (3,685 )      (1,491 )      (19,582 )      (7,475 )      (25,783 )      (51,556 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     25,948        23,707        16,890        13,126        23,003        32,559        223,117        248,424   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    ROCMC     RVARS     SBLD     SBLJ  
    2013     2012     2013         2012         2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (5,064 )      (9,341 )      (1,350 )      -            (2,190 )      (2,534 )      (1,640 )      (1,517 ) 

Realized gain (loss) on investments

     132,883        46,324        176        -            1,232        (11,193 )      10,152        10,170   

Change in unrealized gain (loss) on investments

     (11,308 )      (322 )      646        -            33,087        42,869        28,155        10,588   

Reinvested capital gains

     17,926        17,579        -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     134,437        54,240        (528 )      -            32,129        29,142        36,667        19,241   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     22,651        103,371        75,559        -            6,021        41,796        3,738        12,115   

Transfers between subaccounts (including fixed account), net (note 3)

     (80,706 )      (137,359.00 )      183,137        -            17,338        (24,546 )      7,792        998   

Redemptions (note 3)

     (164,803 )      (63,078 )      (25,760 )      -            (1,061 )      (103,447 )      (18,176 )      (38,684 ) 

Annuity benefits

     -            -            -            -            -            -            -            -       

Contract maintenance charges (note 2)

     -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

     (597 )      (410 )      -            -            (55 )      (1,014 )      (48 )      (43 ) 

Adjustments to maintain reserves

     (42 )      85        (22 )      -            (1 )      (17 )      (32 )      (20 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (223,497 )      (97,391 )      232,914        -            22,242        (87,228 )      (6,726 )      (25,634 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     (89,060 )      (43,151 )      232,386        -            54,371        (58,086 )      29,941        (6,393 ) 

Contract owners’ equity beginning of period

     795,615        838,766        -            -            170,809        228,895        128,481        134,874   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 706,555        795,615        232,386        -            225,180        170,809        158,422        128,481   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     67,539        75,757        -            -            17,262        26,678        12,558        15,074   

Units purchased

     4,652        7,595        42,891        -            2,264        1,933        1,750        976   

Units redeemed

     (22,034 )      (15,813 )      (19,459 )      -            (230 )      (11,349 )      (2,326 )      (3,492 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     50,157        67,539        23,432        -            19,296        17,262        11,982        12,558   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    SBLN     SBLO     SBLP     SBLQ  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (2,783 )      (1,684 )      (3,766 )      (6,213 )      (4,236 )      (4,602 )      (10,599 )      (10,345 ) 

Realized gain (loss) on investments

     6,187        20,392        15,978        110,172        45,420        27,382        115,668        116,006   

Change in unrealized gain (loss) on investments

     25,766        (3,569 )      79,092        (35,615 )      (19,230 )      30,416        173,189        46,582   

Reinvested capital gains

     -            -            -            -            -            -            -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     29,170        15,139        91,304        68,344        21,954        53,196        278,258        152,243   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     4,377        9,640        3,324        49,595        9,877        49,893        26,068        79,344   

Transfers between subaccounts (including fixed account), net (note 3)

     74,476        68,866.00        (8,658 )      (504,978 )      (168,784 )      91,484        (39,083 )      (92,063 ) 

Redemptions (note 3)

     (14,093 )      (4,803 )      (10,383 )      (108,468 )      (49,179 )      (128,100 )      (174,058 )      (201,709 ) 

Annuity benefits

     -            -            -            -            -            -            -            -       

Contract maintenance charges (note 2)

     (15 )      (15 )      -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

     (28 )      (44 )      (34 )      (261 )      (222 )      (1,134 )      (651 )      (974 ) 

Adjustments to maintain reserves

     (22 )      (45 )      (126 )      (151 )      66        (81 )      (352 )      292   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     64,695        73,599        (15,877 )      (564,263 )      (208,242 )      12,062        (188,076 )      (215,110 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     93,865        88,738        75,427        (495,919 )      (186,288 )      65,258        90,182        (62,867 ) 

Contract owners’ equity beginning of period

     185,513        96,775        278,378        774,297        481,279        416,021        858,607        921,474   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 279,378        185,513        353,805        278,378        294,991        481,279        948,789        858,607   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     14,756        8,621        24,139        76,596        29,664        29,110        58,150        73,734   

Units purchased

     7,061        12,336        3,543        7,789        6,062        15,817        11,097        18,327   

Units redeemed

     (2,166 )      (6,201 )      (4,390 )      (60,246 )      (18,598 )      (15,263 )      (21,744 )      (33,911 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     19,651        14,756        23,292        24,139        17,128        29,664        47,503        58,150   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    SBLV     SBLX     SBLY     TRHS2  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (25,899 )      (23,389 )      (1,607 )      (995 )      (353 )      (280 )      (386,737 )      (184,436 ) 

Realized gain (loss) on investments

     324,944        109,404        842        2,161        516        528        4,756,167        649,179   

Change in unrealized gain (loss) on investments

     332,409        225,073        48,552        7,170        7,454        1,214        7,138,096        2,526,162   

Reinvested capital gains

     -            -            -            -            -            -            1,749,813        396,572   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     631,454        311,088        47,787        8,336        7,617        1,462        13,257,339        3,387,477   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     63,154        281,796        2,021        14,978        1,973        8,624        2,021,920        510,492   

Transfers between subaccounts (including fixed account), net (note 3)

     (248,508 )      (6,611.00 )      85,130        (13,055 )      (532 )      1,650        15,862,457        11,708,455   

Redemptions (note 3)

     (355,900 )      (331,702 )      -            -            -            -            (9,173,042 )      (1,728,263 ) 

Annuity benefits

     -            -            -            -            -            -            (10,536 )      (8,589 ) 

Contract maintenance charges (note 2)

     -            -            -            -            -            -            (372 )      (247 ) 

Contingent deferred sales charges (note 2)

     (1,574 )      (1,266 )      (24 )      (35 )      -            (2 )      (4,079 )      (1,680 ) 

Adjustments to maintain reserves

     (70 )      557        9        (1 )      (7 )      (16 )      (358 )      (269 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     (542,898 )      (57,226 )      87,136        1,887        1,434        10,256        8,695,990        10,479,899   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     88,556        253,862        134,923        10,223        9,051        11,718        21,953,329        13,867,376   

Contract owners’ equity beginning of period

     2,173,908        1,920,046        92,155        81,932        28,340        16,622        21,677,255        7,809,879   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 2,262,464        2,173,908        227,078        92,155        37,391        28,340        43,630,584        21,677,255   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     161,868        165,613        8,905        8,735        2,881        1,849        1,447,320        674,188   

Units purchased

     15,824        38,517        6,956        1,447        1,025        1,349        1,454,308        1,316,381   

Units redeemed

     (49,876 )      (42,262 )      (168 )      (1,277 )      (908 )      (317 )      (944,464 )      (543,249 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     127,816        161,868        15,693        8,905        2,998        2,881        1,957,164        1,447,320   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

    VWHAS     VWEM     VWHA     WRASP  
    2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                

Net investment income (loss)

   $ (20,997 )      10,722        156,473        (248,215 )      (95,718 )      (88,650 )      301,217        40,707   

Realized gain (loss) on investments

     (10,843 )      132,987        1,942,458        (1,418,170 )      (227,569 )      (882,332 )      6,991,178        1,921,224   

Change in unrealized gain (loss) on investments

     275,794        (47,403 )      836,691        5,971,494        2,103,275        (1,527,949 )      29,950,156        27,314,516   

Reinvested capital gains

     78,233        53,266        -            -            603,793        1,235,353        -            -       
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

     322,187        149,572        2,935,622        4,305,109        2,383,781        (1,263,578 )      37,242,551        29,276,447   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                

Purchase payments received from contract owners (note 3)

     452,582        327,599        220,641        290,943        44,454        142,371        3,179,888        1,720,766   

Transfers between subaccounts (including fixed account), net (note 3)

     493,447        3,386,205.00        (4,074,620 )      16,656,279        (5,132,990 )      27,277,177        (2,516,933 )      (7,582,824 ) 

Redemptions (note 3)

     (493,202 )      (229,985 )      (3,807,429 )      (2,477,707 )      (3,942,615 )      (5,995,369 )      (26,553,009 )      (29,918,806 ) 

Annuity benefits

     (337 )      -            (180 )      (161 )      (8,315 )      (4,273 )      (35,990 )      (43,583 ) 

Contract maintenance charges (note 2)

     (91 )      (32 )      (320 )      (299 )      (112 )      (232 )      (444 )      (483 ) 

Contingent deferred sales charges (note 2)

     (606 )      (280 )      (2,850 )      (2,453 )      (3,150 )      (1,930 )      (14,363 )      (41,695 ) 

Adjustments to maintain reserves

     476,188        (476,284 )      (398 )      (313 )      (2,693 )      (695 )      331        (195 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

     927,981        3,007,223        (7,665,156 )      14,466,289        (9,045,421 )      21,417,049        (25,940,520 )      (35,866,820 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

     1,250,168        3,156,795        (4,729,534 )      18,771,398        (6,661,640 )      20,153,471        11,302,031        (6,590,373 ) 

Contract owners’ equity beginning of period

     3,156,795        -            30,774,832        12,003,434        32,162,070        12,008,599        171,346,652        177,937,025   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

   $ 4,406,963        3,156,795        26,045,298        30,774,832        25,500,430        32,162,070        182,648,683        171,346,652   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                

Beginning units

     327,050        -            905,469        475,910        900,815        354,656        6,695,505        8,197,211   

Units purchased

     376,345        658,302        123,264        649,431        3,481        941,029        513,540        487,802   

Units redeemed

     (285,180 )      (331,252 )      (325,513 )      (219,872 )      (247,666 )      (394,870 )      (1,443,858 )      (1,989,508 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

     418,215        327,050        703,220        905,469        656,630        900,815        5,765,187        6,695,505   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     WRBP     WRBDP     WRCEP     WRDIV  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 161,796        181,105        1,994,216        1,874,267        (631,360 )      (565,447 )      81,888        (3,540 ) 

Realized gain (loss) on investments

      1,962,868        2,227,263        1,592,428        1,513,484        6,479,325        6,797,849        322,103        56,369   

Change in unrealized gain (loss) on investments

      3,573,471        (226,844 )      (7,677,960 )      77,511        16,243,237        409,503        3,310,088        1,935,894   

Reinvested capital gains

      4,029,241        2,567,876        1,379,661        744,247        8,934,536        10,649,920        358,298        -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      9,727,376        4,749,400        (2,711,655 )      4,209,509        31,025,738        17,291,825        4,072,377        1,988,723   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      672,028        418,167        588,700        657,055        1,037,496        870,602        188,016        195,180   

Transfers between subaccounts (including fixed account), net (note 3)

      2,419,136        1,341,360.00        (6,423,787 )      6,387,663        84,140        (3,203,141 )      (587,476 )      (1,228,417 ) 

Redemptions (note 3)

      (7,234,827 )      (7,999,416 )      (14,304,526 )      (15,175,921 )      (17,412,383 )      (17,826,998 )      (2,211,330 )      (2,687,829 ) 

Annuity benefits

      (10,290 )      (9,354 )      (9,865 )      (26,218 )      (12,454 )      (10,731 )      (547 )      (487 ) 

Contract maintenance charges (note 2)

      -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

      (2,474 )      (2,247 )      (5,126 )      (5,133 )      (7,017 )      (14,582 )      (1,025 )      (1,947 ) 

Adjustments to maintain reserves

      301        46        155        248        385        264        31        (3 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (4,156,126 )      (6,251,444 )      (20,154,449 )      (8,162,306 )      (16,309,833 )      (20,184,586 )      (2,612,331 )      (3,723,503 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      5,571,250        (1,502,044 )      (22,866,104 )      (3,952,797 )      14,715,905        (2,892,761 )      1,460,046        (1,734,780 ) 

Contract owners’ equity beginning of period

      45,526,485        47,028,529        92,722,617        96,675,414        104,198,086        107,090,847        15,820,622        17,555,402   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 51,097,735        45,526,485        69,856,513        92,722,617        118,913,991        104,198,086        17,280,668        15,820,622   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      2,832,072        3,231,584        5,653,755        6,157,959        7,924,937        9,558,169        1,093,997        1,359,638   

Units purchased

      311,690        274,453        451,767        819,508        431,845        395,733        94,661        94,055   

Units redeemed

      (545,371 )      (673,965 )      (1,712,737 )      (1,323,712 )      (1,506,822 )      (2,028,965 )      (256,483 )      (359,696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      2,598,391        2,832,072        4,392,785        5,653,755        6,849,960        7,924,937        932,175        1,093,997   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     WRENG     WRGBP     WRGNR     WRGP  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (72,057 )      (88,877 )      (35,074 )      48,870        (167,995 )      (239,143 )      (736,860 )      (1,169,438 ) 

Realized gain (loss) on investments

      837,540        (331,224 )      12,753        1,084        2,222,315        (5,446,507 )      7,284,206        7,024,466   

Change in unrealized gain (loss) on investments

      695,989        423,008        44,584        42,766        (1,072,903 )      4,480,134        17,647,588        (1,631,017 ) 

Reinvested capital gains

      21,800        -            -            2,421        -            1,257,006        8,346,850        8,123,967   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,483,272        2,907        22,263        95,141        981,417        51,490        32,541,784        12,347,978   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      126,353        80,356        67,499        55,277        137,663        199,782        881,921        1,039,439   

Transfers between subaccounts (including fixed account), net (note 3)

      (450,327 )      (1,611,706.00 )      1,688,804        1,382,304        (2,518,137 )      (1,933,780 )      (3,160,818 )      (4,163,212 ) 

Redemptions (note 3)

      (1,023,408 )      (954,557 )      (607,387 )      (215,985 )      (2,978,120 )      (3,861,405 )      (18,303,190 )      (18,243,149 ) 

Annuity benefits

      -            -            -            -            (594 )      (592 )      (10,492 )      (9,289 ) 

Contract maintenance charges (note 2)

      -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

      (700 )      (1,129 )      -            -            (1,614 )      (10,343 )      (6,468 )      (12,911 ) 

Adjustments to maintain reserves

      (96 )      (31 )      (51 )      (45 )      (85 )      (118 )      129        61   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (1,348,178 )      (2,487,067 )      1,148,865        1,221,551        (5,360,887 )      (5,606,456 )      (20,598,918 )      (21,389,061 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      135,094        (2,484,160 )      1,171,128        1,316,692        (4,379,470 )      (5,554,966 )      11,942,866        (9,041,083 ) 

Contract owners’ equity beginning of period

      6,448,904        8,933,064        2,680,726        1,364,034        17,557,306        23,112,272        103,655,837        112,696,920   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 6,583,998        6,448,904        3,851,854        2,680,726        13,177,836        17,557,306        115,598,703        103,655,837   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      580,041        805,071        258,003        138,156        1,371,424        1,820,540        8,850,476        10,732,698   

Units purchased

      100,019        122,150        201,271        172,835        61,017        163,667        236,116        294,009   

Units redeemed

      (211,018 )      (347,180 )      (90,792 )      (52,988 )      (466,965 )      (612,783 )      (1,773,489 )      (2,176,231 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      469,042        580,041        368,482        258,003        965,476        1,371,424        7,313,103        8,850,476   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     WRHIP     WRIP     WRI2P     WRLTBP  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ 3,293,489        3,895,983        (61,494 )      261,238        65,962        162,597        (58,877 )      111,327   

Realized gain (loss) on investments

      2,286,006        689,914        668,471        1,518,761        (835,297 )      (2,008,603 )      (135,404 )      5,311   

Change in unrealized gain (loss) on investments

      2,031,391        7,317,699        3,597,753        991,128        3,250,490        3,178,270        104,458        (169,691 ) 

Reinvested capital gains

      -            -            564,558        1,970,962        -            110,534        5,437        127,757   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      7,610,886        11,903,596        4,769,288        4,742,089        2,481,155        1,442,798        (84,386 )      74,704   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,824,624        896,348        166,852        270,220        137,375        119,594        36,813        47,102   

Transfers between subaccounts (including fixed account), net (note 3)

      12,122,305        11,111,848.00        (345,570 )      160,347        (260,015 )      (976,398 )      2,354,774        3,067,197   

Redemptions (note 3)

      (13,496,703 )      (12,126,231 )      (6,016,092 )      (5,438,477 )      (2,163,582 )      (2,130,126 )      (2,176,107 )      (432,665 ) 

Annuity benefits

      (21,200 )      (26,636 )      (4,021 )      (3,636 )      (7,448 )      (10,396 )      -            -       

Contract maintenance charges (note 2)

      (102 )      (29 )      -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

      (6,168 )      (9,273 )      (2,533 )      (5,603 )      (1,416 )      (3,445 )      (720 )      (127 ) 

Adjustments to maintain reserves

      (4,427 )      (28 )      (21 )      (25 )      95        (11 )      (25 )      (16 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      418,329        (154,001 )      (6,201,385 )      (5,017,174 )      (2,294,991 )      (3,000,782 )      214,735        2,681,491   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      8,029,215        11,749,595        (1,432,097 )      (275,085 )      186,164        (1,557,984 )      130,349        2,756,195   

Contract owners’ equity beginning of period

      82,199,979        70,450,384        30,383,469        30,658,554        11,896,285        13,454,269        5,120,924        2,364,729   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 90,229,194        82,199,979        28,951,372        30,383,469        12,082,449        11,896,285        5,251,273        5,120,924   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,437,628        3,451,947        2,396,608        2,824,384        780,139        988,441        494,224        233,219   

Units purchased

      1,045,726        771,291        132,951        230,507        70,197        73,849        413,779        375,144   

Units redeemed

      (1,038,581 )      (785,610 )      (592,056 )      (658,283 )      (208,555 )      (282,151 )      (392,272 )      (114,139 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      3,444,773        3,437,628        1,937,503        2,396,608        641,781        780,139        515,731        494,224   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     WRMIC     WRMCG     WRMMP     WRRESP  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (48,810 )      (45,214 )      (177,407 )      (157,352 )      (183,089 )      (242,326 )      2,115        (33,251 ) 

Realized gain (loss) on investments

      667,266        80,931        2,170,982        700,091        -            -            265,574        (354,533 ) 

Change in unrealized gain (loss) on investments

      1,166,865        38,839        1,418,729        (272,612 )      -            -            (235,956 )      1,651,739   

Reinvested capital gains

      177,931        330,117        511,647        1,358,391        -            -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      1,963,252        404,673        3,923,951        1,628,518        (183,089 )      (242,326 )      31,733        1,263,955   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      12,066        53,286        625,225        179,002        4,654,709        4,001,718        127,907        69,649   

Transfers between subaccounts (including fixed account), net (note 3)

      329,348        (98,706.00 )      920,961        1,190,191        11,741,480        8,008,357        115,937        (299,561 ) 

Redemptions (note 3)

      (781,350 )      (454,627 )      (2,890,547 )      (2,238,193 )      (19,054,770 )      (18,945,495 )      (1,462,872 )      (1,419,078 ) 

Annuity benefits

      (4,353 )      (4,177 )      (261 )      -            (12,455 )      (27,982 )      (5,983 )      (5,575 ) 

Contract maintenance charges (note 2)

      -            -            (21 )      (12 )      -            -            -            -       

Contingent deferred sales charges (note 2)

      (774 )      (464 )      (906 )      (1,546 )      (1,754 )      (1,088 )      (1,014 )      (4,759 ) 

Adjustments to maintain reserves

      (45 )      (74 )      (570 )      (122 )      839        2,403        (6 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (445,108 )      (504,762 )      (1,346,119 )      (870,680 )      (2,671,951 )      (6,962,087 )      (1,226,031 )      (1,659,329 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      1,518,144        (100,089 )      2,577,832        757,838        (2,855,040 )      (7,204,413 )      (1,194,298 )      (395,374 ) 

Contract owners’ equity beginning of period

      3,784,012        3,884,101        14,247,875        13,490,037        19,473,548        26,677,961        7,994,902        8,390,276   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 5,302,156        3,784,012        16,825,707        14,247,875        16,618,508        19,473,548        6,800,604        7,994,902   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      237,238        269,527        799,639        849,997        1,805,265        2,452,513        462,722        565,907   

Units purchased

      40,175        37,136        249,385        168,001        2,258,816        1,951,749        80,197        51,217   

Units redeemed

      (63,351 )      (69,425 )      (314,137 )      (218,359 )      (2,508,872 )      (2,598,997 )      (149,398 )      (154,402 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      214,062        237,238        734,887        799,639        1,555,209        1,805,265        393,521        462,722   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     WRSTP     WRSCP     WRSCV     WRVP  
     2013     2012     2013     2012     2013     2012     2013     2012  

Investment activity:

                 

Net investment income (loss)

    $ (806,619 )      (729,999 )      (552,994 )      (573,350 )      (18,529 )      (43,428 )      (157,560 )      88,704   

Realized gain (loss) on investments

      3,669,486        3,165,662        2,239,499        1,074,573        599,663        47,512        1,008,493        369,928   

Change in unrealized gain (loss) on investments

      24,696,450        8,054,879        15,735,873        712,618        858,664        603,667        11,358,920        3,195,112   

Reinvested capital gains

      4,284,287        4,612,332        -            1,191,119        428,882        432,601        1,182,484        3,707,698   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      31,843,604        15,102,874        17,422,378        2,404,960        1,868,680        1,040,352        13,392,337        7,361,442   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Equity transactions:

                 

Purchase payments received from contract owners (note 3)

      1,192,542        716,187        442,075        607,736        29,616        28,221        301,389        284,770   

Transfers between subaccounts (including fixed account), net (note 3)

      (760,589 )      (2,099,521.00 )      (1,427,433 )      (1,209,598 )      35,437        (741,761 )      (808,595 )      (2,077,472 ) 

Redemptions (note 3)

      (13,142,104 )      (10,173,047 )      (9,323,287 )      (8,445,057 )      (810,434 )      (1,120,619 )      (7,439,586 )      (8,260,379 ) 

Annuity benefits

      (2,346 )      (1,825 )      (1,103 )      (988 )      (8,733 )      (11,390 )      (11,503 )      (9,727 ) 

Contract maintenance charges (note 2)

      -            -            -            -            -            -            -            -       

Contingent deferred sales charges (note 2)

      (5,302 )      (15,271 )      (4,330 )      (5,569 )      (487 )      (1,569 )      (2,564 )      (8,178 ) 

Adjustments to maintain reserves

      844        454        (34 )      (34 )      96        (76 )      (70 )      (85 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net equity transactions

      (12,716,955 )      (11,573,023 )      (10,314,112 )      (9,053,510 )      (754,505 )      (1,847,194 )      (7,960,929 )      (10,071,071 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      19,126,649        3,529,851        7,108,266        (6,648,550 )      1,114,175        (806,842 )      5,431,408        (2,709,629 ) 

Contract owners’ equity beginning of period

      64,319,040        60,789,189        46,285,262        52,933,812        6,009,282        6,816,124        42,968,632        45,678,261   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 83,445,689        64,319,040        53,393,528        46,285,262        7,123,457        6,009,282        48,400,040        42,968,632   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                 

Beginning units

      3,672,810        4,392,183        3,296,538        3,922,926        400,259        531,829        2,815,525        3,517,161   

Units purchased

      270,162        185,344        132,802        184,124        67,536        35,078        151,317        138,357   

Units redeemed

      (862,767 )      (904,717 )      (746,319 )      (810,512 )      (107,838 )      (166,648 )      (596,634 )      (839,993 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ending units

      3,080,205        3,672,810        2,683,021        3,296,538        359,957        400,259        2,370,208        2,815,525   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     SVOF     WFVSCG     JAGTS2     JAIGS2  
     2013     2012     2013     2012         2013          2012     2013     2012  

Investment activity:

                  

Net investment income (loss)

    $ (3,310 )      (3,746 )      (88,745 )      (71,159 )      -             (50,716 )      -            (236,327 ) 

Realized gain (loss) on investments

      13,709        35,599        1,281,500        367,404        -             1,480,930        -            (4,957,678 ) 

Change in unrealized gain (loss) on investments

      44,932        984        1,311,268        (159,584 )      -             720,539        -            12,289,824   

Reinvested capital gains

      -            85        383,476        288,716        -             -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      55,331        32,922        2,887,499        425,377        -             2,150,753        -            7,095,819   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Equity transactions:

                  

Purchase payments received from contract owners (note 3)

      1,220        (13,592 )      400,230        84,357        -             161,441        136        396,635   

Transfers between subaccounts (including fixed account), net (note 3)

      (18,845 )      (33,182.00 )      1,679,454        (924,901 )      -             (12,814,174 )      (122 )      (60,982,505 ) 

Redemptions (note 3)

      (14,774 )      (54,338 )      (691,934 )      (1,022,632 )      -             (866,193 )      (14 )      (2,479,019 ) 

Annuity benefits

      (2,517 )      (2,156 )      (4,355 )      (3,848 )      -             (1,022 )      -            (6,329 ) 

Contract maintenance charges (note 2)

      (30 )      (50 )      (63 )      (50 )      -             (155 )      -            (867 ) 

Contingent deferred sales charges (note 2)

      1        -            (398 )      (868 )      -             (1,316 )      -            (3,807 ) 

Adjustments to maintain reserves

      972        555        (208 )      (151 )      -             68        (2,610 )      13,871   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net equity transactions

      (33,973 )      (102,763 )      1,382,726        (1,868,093 )      -             (13,521,351 )      (2,610 )      (63,062,021 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      21,358        (69,841 )      4,270,225        (1,442,716 )      -             (11,370,598 )      (2,610 )      (55,966,202 ) 

Contract owners’ equity beginning of period

      206,224        276,065        5,049,807        6,492,523        -             11,370,598        2,610        55,968,812   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ 227,582        206,224        9,320,032        5,049,807        -             -            -            2,610   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                  

Beginning units

      12,979        20,470        300,349        412,796        -             816,960        -            2,777,451   

Units purchased

      79        412        353,187        78,778        -             253,306        347        137,973   

Units redeemed

      (2,046 )      (7,903 )      (279,631 )      (191,225 )      -             (1,070,266 )      (347 )      (2,915,424 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ending units

      11,012        12,979        373,905        300,349        -             -            -            -       
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     AVCA2     VWEMR     VWHAR     BBCMAG  
         2013          2012     2013      2012     2013      2012     2013     2012  

Investment activity:

                    

Net investment income (loss)

    $ -             (5,570 )      -             (55,341 )      -             (135,685 )      (1,547 )      (2,364 ) 

Realized gain (loss) on investments

      -             296,939        -             1,282,315        -             1,438,506        55,425        (70,912 ) 

Change in unrealized gain (loss) on investments

      -             (139,590 )      -             1,198,502        -             (2,152,832 )      (39,205 )      129,668   

Reinvested capital gains

      -             -            -             -            -             2,537,636        -            -       
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      -             151,779        -             2,425,476        -             1,687,625        14,673        56,392   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Equity transactions:

                    

Purchase payments received from contract owners (note 3)

      -             (9,303 )      -             176,919        -             181,890        3,973        7,902   

Transfers between subaccounts (including fixed account), net (note 3)

      -             (1,124,190.00 )      -             (14,544,702 )      -             (34,177,336 )      (433,611 )      31   

Redemptions (note 3)

      -             (44,681 )      -             (760,630 )      -             (1,860,428 )      (20,383 )      (146,820 ) 

Annuity benefits

      -             (2,391 )      -             -            -             (1,439 )      -            -       

Contract maintenance charges (note 2)

      -             (6 )      -             (51 )      -             (150 )      -            -       

Contingent deferred sales charges (note 2)

      -             -            -             (1,519 )      -             (2,292 )      -            -       

Adjustments to maintain reserves

      -             13        -             (54 )      -             2,712        3        (32 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net equity transactions

      -             (1,180,558 )      -             (15,130,037 )      -             (35,857,043 )      (450,018 )      (138,919 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net change in contract owners’ equity

      -             (1,028,779 )      -             (12,704,561 )      -             (34,169,418 )      (435,345 )      (82,527 ) 

Contract owners’ equity beginning of period

      -             1,028,779        -             12,704,561        -             34,169,418        435,345        517,872   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Contract owners’ equity end of period

    $ -             -            -             -            -             -            -            435,345   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

CHANGES IN UNITS:

                    

Beginning units

      -             123,477        -             606,157        -             1,173,183        37,711        50,679   

Units purchased

      -             31,499        -             63,022        -             75,075        323        702   

Units redeemed

      -             (154,976 )      -             (669,179 )      -             (1,248,258 )      (38,034 )      (13,670 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ending units

      -             -            -             -            -             -            -            37,711   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     OVHI3     OVHI     AVCA     AVCD2  
         2013          2012     2013      2012     2013      2012     2013      2012  

Investment activity:

                     

Net investment income (loss)

    $ -             150,089        -             8,419        -             (184 )      -             (5,193 ) 

Realized gain (loss) on investments

      -             (118,307 )      -             (141,750 )      -             2,124        -             12,901   

Change in unrealized gain (loss) on investments

      -             77,686        -             139,798        -             4,827        -             152,643   

Reinvested capital gains

      -             -            -             -            -             -            -             -       
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      -             109,468        -             6,467        -             6,767        -             160,351   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Equity transactions:

                     

Purchase payments received from contract owners (note 3)

      -             11,575        -             -            -             211        -             (95,257 ) 

Transfers between subaccounts (including fixed account), net (note 3)

      -             (802,165.00 )      -             (52,563 )      -             (51,417 )      -             (1,218,251 ) 

Redemptions (note 3)

      -             (274,828 )      -             (18,813 )      -             (641 )      -             (79,149 ) 

Annuity benefits

      -             -            -             -            -             -            -             (1,481 ) 

Contract maintenance charges (note 2)

      -             (21 )      -             (6 )      -             -            -             (9 ) 

Contingent deferred sales charges (note 2)

      -             (81 )      -             (5 )      -             -            -             (88 ) 

Adjustments to maintain reserves

      -             (61 )      -             (18 )      -             (11 )      -             1,303   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net equity transactions

      -             (1,065,581 )      -             (71,405 )      -             (51,858 )      -             (1,392,932 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net change in contract owners’ equity

      -             (956,113 )      -             (64,938 )      -             (45,091 )      -             (1,232,581 ) 

Contract owners’ equity beginning of period

      -             956,113        -             64,938        -             45,091        -             1,232,581   
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Contract owners’ equity end of period

    $ -             -            -             -            -             -            -             -       
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

CHANGES IN UNITS:

                     

Beginning units

      -             347,539        -             21,860        -             4,899        -             125,245   

Units purchased

      -             140,416        -             -            -             53        -             13,084   

Units redeemed

      -             (487,955 )      -             (21,860 )      -             (4,952 )      -             (138,329 ) 
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Ending units

      -             -            -             -            -             -            -             -       
  

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2013 and 2012

 

     OVHIS  
         2013          2012  

Investment activity:

      

Net investment income (loss)

    $ -             3,514   

Realized gain (loss) on investments

      -             (61,910 ) 

Change in unrealized gain (loss) on investments

      -             60,885   

Reinvested capital gains

      -             -       
  

 

 

     

 

 

  

Net increase (decrease) in contract owners’ equity resulting from operations

      -             2,489   
  

 

 

     

 

 

  

Equity transactions:

      

Purchase payments received from contract owners (note 3)

      -             -       

Transfers between subaccounts (including fixed account), net (note 3)

      -             (23,240.00 ) 

Redemptions (note 3)

      -             (14 ) 

Annuity benefits

      -             (1,828 ) 

Contract maintenance charges (note 2)

      -             -       

Contingent deferred sales charges (note 2)

      -             -       

Adjustments to maintain reserves

      -             -       
  

 

 

     

 

 

  

Net equity transactions

      -             (25,082 ) 
  

 

 

     

 

 

  

Net change in contract owners’ equity

      -             (22,593 ) 

Contract owners’ equity beginning of period

      -             22,593   
  

 

 

     

 

 

  

Contract owners’ equity end of period

    $ -             -       
  

 

 

     

 

 

  

CHANGES IN UNITS:

      

Beginning units

      -             6,674   

Units purchased

      -             -       

Units redeemed

      -             (6,674 ) 
  

 

 

     

 

 

  

Ending units

      -             -       
  

 

 

     

 

 

  

See accompanying notes to financial statements.

  

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide Variable Account-9 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on May 22, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers tax qualified and non-tax qualified Modified Single Premium Deferred Variable Annuity Contracts and Individual Single Premium Immediate Variable Annuity Contracts through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors are utilized.

Effective July 1, 2000, the Company entered into a reinsurance agreement with Security Benefit Life Insurance Company (SBL) to sell, transfer and cede on an indemnity basis all of its obligations in connection with annuity contracts issued pursuant to the NEA Valuebuilder Annuity Program (Program). Under the agreement, the Company continued to provide administrative and support services for contracts issued under the Program until September 2001. Thereafter, SBL assumed full responsibility for servicing the contracts and receives all fees and charges of the contracts. The Company is paid a supplemental Capital Charge by SBL to meet the capital needs of the reinsured contracts. The ceding of risk does not discharge the Company from its primary obligation, including regulatory record keeping and reporting, to the contract owners of the Account.

(b) The Contracts

Only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees are offered for purchase. See note 2 for a discussion of contract expenses.

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

 

ALLIANCE BERNSTEIN FUNDS

VPS Dynamic Asset Allocation Portfolio - Class B (ALVDAB)

STERLING CAPITAL FUNDS

Variable Insurance Funds - Equity Income VIF (BBGI)

BLACKROCK FUNDS

Global Allocation V.I. Fund - Class III (MLVGA3)

DELAWARE GROUP

VIP Small Cap Value Series: Service Class (DWVSVS)

DREYFUS CORPORATION

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

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

Socially Responsible Growth Fund Inc - Service Shares (DSRGS)

GOLDMAN SACHS ASSET MANAGEMENT GROUP

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

HUNTINGTON TRUST COMPANY

VA International Equity Fund (HVIE)

VA Situs Fund (HVSIT)

INVESCO INVESTMENTS

V.I. Mid Cap Core Equity - Series II Shares (IVMCC2)

Van Kampen V.I. Mid Cap Growth Fund - Series II Shares (IVKMG2)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Mid Cap Value Portfolio: Class 1 (JPMMV1)

JANUS FUNDS

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

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

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

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

MASSACHUSETTS FINANCIAL SERVICES CO.

Investors Growth Stock Series - Service Class (MIGSC)

Mid Cap Growth Series - Service Class (MMCGSC)

New Discovery Series - Service Class (MNDSC)

Value Series - Service Class (MVFSC)

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

MORGAN STANLEY

Core Plus Fixed Income Portfolio - Class I (MSVFI)

Core Plus Fixed Income Portfolio - Class II (MSVF2)

Emerging Markets Debt Portfolio - Class I (MSEM)

Global Tactical Asset Allocation Portfolio- Class I (MSVIM)*

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

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

NATIONWIDE FUNDS GROUP

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

American Funds NVIT Bond Fund - Class II (GVABD2)

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

American Funds NVIT Growth Fund - Class II (GVAGR2)

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

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

Federated NVIT High Income Bond Fund - Class III (HIBF3)

NVIT Emerging Markets Fund - Class I (GEM)

NVIT Emerging Markets Fund - Class III (GEM3)

NVIT Emerging Markets Fund - Class VI (GEM6)

NVIT International Equity Fund - Class I (GIG)

NVIT International Equity Fund - Class III (GIG3)

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

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)*

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

NVIT Core Bond Fund - Class I (NVCBD1)

NVIT Core Bond Fund - Class II (NVCBD2)

NVIT Core Plus Bond Fund - Class II (NVLCP2)

NVIT Nationwide Fund - Class I (TRF)

NVIT Nationwide Fund - Class II (TRF2)

NVIT Government Bond Fund - Class I (GBF)

NVIT Government Bond Fund - Class II (GBF2)

American Century NVIT Growth Fund - Class I (CAF)

NVIT International Index Fund - Class VIII (GVIX8)

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

NVIT Mid Cap Index Fund - Class I (MCIF)

NVIT Money Market Fund - Class I (SAM)

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)

NVIT Multi-Manager International Value Fund - Class II (GVDIV2)*

NVIT Multi-Manager International Value Fund - Class III (GVDIV3)

NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

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

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

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)

NVIT Multi-Manager Small Company Fund - Class I (SCF)

NVIT Multi-Manager Small Company Fund - Class II (SCF2)

NVIT Multi-Sector Bond Fund - Class I (MSBF)

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Large Cap Growth Fund - Class I (NVOLG1)

NVIT Large Cap Growth Fund - Class II (NVOLG2)

Templeton NVIT International Value Fund - Class III (NVTIV3)

Invesco NVIT Comstock Value Fund - Class I (EIF)

NVIT Real Estate Fund - Class I (NVRE1)

NVIT Cardinal(SM) Managed Growth Fund - Class II (NCPG2)

NVIT Cardinal(SM) Managed Growth & Income Fund: Class II (NCPGI2)

NVIT Investor Destinations Managed Growth Fund: Class II (IDPG2)

NVIT Investor Destinations Managed Growth & Income Fund: Class II (IDPGI2)

NVIT Small Cap Index Fund Class II (NVSIX2)

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

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC

VPS Growth and Income Portfolio - Class B (ALVGIB)

VPS Large Cap Growth Portfolio: Class B (ALVPGB)

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Income & Growth Fund - Class I (ACVIG)

VP Income & Growth Fund - Class II (ACVIG2)

American Century VP Inflation Protection Fund - Class II (ACVIP2)

VP International Fund - Class I (ACVI)

VP International Fund - Class III (ACVI3)

VP Mid Cap Value Fund - Class I (ACVMV1)

VP Mid Cap Value Fund - Class II (ACVMV2)

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

VP Ultra(R) Fund - Class II (ACVU2)*

VP Value Fund - Class I (ACVV)

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

VP Value Fund - Class II (ACVV2)*

VP Vista(SM) Fund - Class II (ACVVS2)*

PORTFOLIOS OF THE DREYFUS INVESTMENT PORTFOLIOS

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

PORTFOLIOS OF THE DREYFUS VARIABLE INVESTMENT FUND

Appreciation Portfolio - Initial Shares (DCAP)

Appreciation Portfolio - Service Shares (DCAPS)

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

Opportunistic Small Cap Portfolio: Service Shares (DVDLS)*

International Value Portfolio - Initial Shares (DVIV)

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Managed Tail Risk Fund II: Service Shares (FCA2S)

High Income Bond Fund II - Service Shares (FHIBS)

Quality Bond Fund II - Primary Shares (FQB)

Quality Bond Fund II - Service Shares (FQBS)

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

Contrafund(R)Portfolio - Service Class 2 (FC2)*

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

VIP Value Strategies Portfolio - Service Class 2 (FVSS2)

VIP Contrafund(R) Portfolio - Service Class (FCS)

VIP Energy Portfolio - Service Class 2 (FNRS2)

VIP Equity-Income Portfolio - Service Class (FEIS)

VIP Equity-Income Portfolio - Service Class 2 (FEI2)

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

VIP Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)

VIP Growth Opportunities Portfolio - Service Class (FGOS)

VIP Growth Portfolio - Service Class (FGS)

VIP Growth Portfolio - Service Class 2 (FG2)

VIP High Income Portfolio - Service Class (FHIS)

VIP High Income Portfolio - Service Class R (FHISR)

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

VIP Mid Cap Portfolio - Service Class (FMCS)

VIP Mid Cap Portfolio - Service Class 2 (FMC2)

VIP Overseas Portfolio - Service Class (FOS)

VIP Overseas Portfolio - Service Class 2 R (FO2R)

VIP Overseas Portfolio - Service Class R (FOSR)

VIP Value Strategies Portfolio - Service Class (FVSS)

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Franklin Income Securities Fund - Class 2 (FTVIS2)

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

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

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

Templeton Foreign Securities Fund - Class 1 (TIF)*

Templeton Foreign Securities Fund - Class 2 (TIF2)

Templeton Foreign Securities Fund - Class 3 (TIF3)

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

PORTFOLIOS OF THE NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST

Short Duration Bond Portfolio - I Class Shares (AMTB)

Guardian Portfolio - I Class Shares (AMGP)

International Portfolio - S Class Shares (AMINS)*

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

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class S (AMRS)*

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

Socially Responsive Portfolio - I Class Shares (AMSRS)

PORTFOLIOS OF THE OPPENHEIMER VARIABLE ACCOUNT FUNDS

Oppenheimer Capital Appreciation Fund/VA - Service Class (OVCAFS)*

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

Global Securities Fund/VA - Class 3 (OVGS3)

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

Global Securities Fund/VA - Service Class (OVGSS)

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

Main Street Fund(R)/VA - Service Class (OVGIS)

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)

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

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

Global Strategic Income Fund/VA: Service Shares (OVSBS)

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

All Asset Portfolio - Advisor Class (PMVAAD)

Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)

Low Duration Portfolio - Advisor Class (PMVLAD)

Real Return Portfolio - Administrative Class (PMVRRA)

Total Return Portfolio - Administrative Class (PMVTRA)

Total Return Portfolio - Advisor Class (PMVTRD)

PORTFOLIOS OF THE PUTNAM VARIABLE TRUST

Putnam VT Growth and Income Fund - Class IB (PVGIB)

Putnam VT International Equity Fund - Class IB (PVTIGB)*

Putnam VT Voyager Fund - Class IB (PVTVB)*

PORTFOLIOS OF THE INVESCO INVESTMENTS TRUST

VI American Franchise Fund - Series II Shares (ACEG2)

VI Comstock Fund - Series II Shares (ACC2)

VI American Franchise Fund - Series I Shares (ACEG)

Van Kampen V.I. Value Opportunities Fund: Series II Shares (AVBV2)*

VI Core Equity Fund - Series I Shares (AVGI)

VI Core Equity Fund - Series II Shares (AVCE2)

VI Equity and Income Fund - Series I Shares (IVKEI1)

VI Global Health Care Fund - Series I Shares (IVHS)

VI Global Real Estate Fund - Series I Shares (IVRE)

VI International Growth Fund - Series I Shares (AVIE)*

PORTFOLIOS OF THE VICTORY VARIABLE INSURANCE FUNDS

Diversified Stock Fund Class A Shares (VYDS)

ROYCE CAPITAL FUNDS

Micro-Cap Portfolio - Investment Class (ROCMC)

GUGGENHEIM INVESTMENTS

Variable Fund - Multi-Hedge Strategies (RVARS)

SBL Fund - Series D (World Equity Income Series) (SBLD)

SBL Fund - Series J (StylePlus Mid Growth Series) (SBLJ)

Series N (Managed Asset Allocation Series) (SBLN)

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

Series O (All Cap Value Series) (SBLO)

Series P (High Yield Series) (SBLP)

Series Q (Small Cap Value Series) (SBLQ)

Series V (Mid Cap Value Series) (SBLV)

SBL Fund - Series X (StylePlus Small Growth Series) (SBLX)

SBL Fund - Series Y (StylePlus Large Growth Series) (SBLY)

T. ROWE PRICE

Blue Chip Growth Portfolio - II (TRBCG2)*

Equity Income Portfolio - II (TREI2)*

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

Health Sciences Portfolio - II (TRHS2)

Limited-Term Bond Portfolio - II (TRLT2)*

VAN ECK ASSOCIATES CORPORATION

VIP Trust - Global Hard Assets Fund- Service Class (VWHAS)

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

WADDELL & REED, INC.

Variable Insurance Portfolios - Asset Strategy (WRASP)

Variable Insurance Portfolios - Balanced (WRBP)

Variable Insurance Portfolios - Bond (WRBDP)

Variable Insurance Portfolios - Core Equity (WRCEP)

Variable Insurance Portfolios - Dividend Opportunities (WRDIV)

Variable Insurance Portfolios - Energy (WRENG)

Variable Insurance Portfolios - Global Bond (WRGBP)

Variable Insurance Portfolios - Global Natural Resources (WRGNR)

Variable Insurance Portfolios - Growth (WRGP)

Variable Insurance Portfolios - High Income (WRHIP)

Variable Insurance Portfolios - International Growth (WRIP)

Variable Insurance Portfolios - International Core Equity (WRI2P)

Variable Insurance Portfolios - Limited-Term Bond (WRLTBP)

Variable Insurance Portfolios - Micro Cap Growth (WRMIC)

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

Variable Insurance Portfolios - Money Market (WRMMP)

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

Variable Insurance Portfolios - Science and Technology (WRSTP)

Variable Insurance Portfolios - Small Cap Growth (WRSCP)

Variable Insurance Portfolios - Small Cap Value (WRSCV)

Variable Insurance Portfolios - Value (WRVP)

WELLS FARGO FUNDS

Advantage VT Opportunity Fund - Class 2 (SVOF)

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

VT Omega Growth - Class 1 (EVOM)*

*At December 31, 2013, 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.

Living credit adjustments may result in additional shares of mutual funds purchased or sold during the period. This activity may result in a net positive redemption amount in the Statements of Changes in Contract Owners’ Equity.

The Company allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value, then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued at the closing net asset value per share at December 31, 2013 of such funds. The cost of investments sold is determined on a first in - first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

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

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

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

(f) 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 7.0%, as regulated by the laws of the respective states. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company to cover greater longevity of annuitants than expected. Conversely, if reserves exceed amounts required, transfers may be made to the Company.

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

(g) Recently Issued Accounting Standards

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

(h) Subsequent Events

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

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is redeemed the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge.

On BOA Future, ElitePro Classic, BOA Choice, BOA V and BOA Choice Venue contracts, the contingent deferred sales charge will not exceed 7% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 7 years, the charge is 0%. On ElitePro Ltd contracts, the contingent deferred sales charge will not exceed 7% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 3 years, the charge is 0%. On BOA Income contracts, the contingent deferred sales charge will not exceed 6% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 6 years, the charge is 0%. No sales charges are deducted on BOA Exclusive II contracts.

The charges above are assessed against each contract by redeeming units.

No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company.

The Company may deduct an annual contract maintenance charge of up to $35, depending on contract issued, which is satisfied by redeeming units.

The Company deducts a mortality and expense risk charge assessed through a reduction of the unit values. The Option tables below and on the following page illustrate the annual rate for all contract level charges by product, as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract owners. The options and related charges are described in more detail in the applicable product prospectus.

 

Nationwide Variable Account - 9 Options

   

BOA

Future(1)

   

BOA

Exclusive II(2)

    BOA V(3)    BOA Choice Venue

Variable Account Charges - Recurring

    0.95%    1.20%    1.10%    1.50%

Reduced Purchase Payment Option

    0.25%    -    -    -
Initial lowered to $1,000 and subsequent lowered to $25. Not available for investment only contracts.                

Five Year CDSC Option

   0.15%    -    0.15%    -

CDSC Waiver Options:

                

Additional (5%) Withdrawal without Charge and Disability

    0.10%    -    0.10%    -

In addition to standard 10% CDSC-free withdrawal privilege.

                

10 Year and Disability Waiver for Tax Sheltered Annuities

    0.05%    -    0.05%    -

CDSC waived if (i) contract owner has owned contract for 10 years and (ii) has made regular payroll deferrals during entire contract year for at least 5 of those 10 years.

                

Hardship Waiver for Tax Sheltered Annuities

    0.15%    -    0.15%    -

CDSC waived if contract owner experiences hardship (defined under IRC Section 401(k)).

                

Death Benefit Options -

                    

Allows enhanced provision in place of the standard death benefit.

                

One-Year Enhanced

    0.15%(5)    0.15%(5)    -    -

One-Year Step Up

    0.05%(6)    0.10%(6)    0.05%    -

Greater of One-Year or 5% Enhanced

    0.20%(5)    0.20%(5)    -    0.15%

5% Enhanced

    0.10%(7)    0.15%(7)    0.10%    -

Guaranteed Minimum Income Benefit Options:

                    

Provide for minimum guaranteed value that may replace contract value for annuitization under certain circumstances.

                

Option 1

    0.45%(8)    0.45%(9)    -    0.45%(9)

Option 2

    0.30%(8)    0.30%(9)    -    0.30%(9)

Spousal Protection Annuity Option

   -    -    -    0.10%

Allows a surviving spouse to continue the contract while receiving the economic benefit of the death benefit upon the death of the other spouse.

                

Extra Value Option (EV)

   0.45%    -    -    -

Fee assessed to assets of the variable account and to allocations made to the fixed account or guaranteed term options for first seven contract years in exchange for application of 3% of purchase payments made during the first 12 months contract is in force.

                

Beneficiary Protector Option

   0.40%    0.40%    -    0.40%

Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount

                

Capital Preservation Plus Option

    0.50%    0.50%    -    0.50%

Provides a return of principle guarantee over the elected program period.

                

Maximum Variable Account Charges (10):

   3.95%    2.80%    1.65%    3.10%

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

Nationwide Variable Account - 9 Options,
Continued		   

BOA

Choice (4)

   

BOA

Income

   

ElitePro

Ltd

   

ElitePro

Classic

Variable Account Charges - Recurring

    1.20%    1.25%    1.75%    1.60%

Death Benefit Options -

                    

Allows enhanced provision in place of the standard death benefit.
Greater of One-Year or 5% Enhanced

    0.15%(5)    -    -    -

5% Enhanced

    0.05%(7)    -    -    -

Guaranteed Minimum Income Benefit Options:

                    

Provide for minimum guaranteed value that may replace contract value for annuitization under certain circumstances.

                    

Option 1

    0.45%(9)    -    -    -

Option 2

    0.30%(9)    -    -    -

Beneficiary Protector Option

   0.40%    -    -    -

Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount

                    

America’s Income Annuity Income Foundation Rider

    -    1.00%    -    -

Provides for a guarantee of variable annuity payments.

                    

Maximum Variable Account Charges (10):

   2.20%    2.25%    1.75%    1.60%

(1) Includes Key Bank, NEA, Waddell & Reed Select Plus, America’s Horizon and BB&T products.

(2) Includes Waddill & Reed Advisors select Reserve product.

(3) Includes NEA Select product.

(4) Includes Key Bank and Paine Weber products.

(5) Available beginning January 2, 2001 or a later date if state law requires.

(6) Available until state approval is received for the One-Year Enhanced Death Benefit Option.

(7) Available until state approval is received for Greater of One-Year or 5% Enhanced Death Benefit Option

(8) No longer available effective May 1, 2003. Applicant could have elected one or both GMIB options.

(9) No longer available effective May 1, 2003. Applicant could have elected one GMIB option.

(10) When maximum options are elected. The contract charges indicated in bold, when summarized, represent the Maximum Variable Account Charges

if all optional benefits available under the contract are elected including the most expensive of the mutually exclusive optional benefits.

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2013.

 

     Total      ALVDAB      BBGI      MLVGA3      DWVSVS      DSIF      DSRG      DSRGS  
  

 

 

  

0.95%

    $ 18,078,506       $ 123       $ 2,131       $ 89,934       $ 296       $ 1,002,842       $ 131,726       $ -       

1.00%

      6,347,023         34         -             38,195         207         474,540         60,692         -       

1.05%

      1,302,438         43         1         6,768         -             104,810         15,764         -       

1.10%

      10,072,708         284         879         42,866         210         380,054         85,640         -       

1.15%

      4,949,772         198         1,296         40,607         46         203,936         24,538         -       

1.20%

      10,891,805         1,115         -             144,329         98         649,364         65,253         -       

1.25%

      2,126,116         105         30         12,171         -             93,306         11,255         -       

1.30%

      1,894,075         7         2,016         24,130         1,097         87,700         8,227         -       

1.35%

      2,443,954         758         139         24,230         -             137,692         10,229         -       

1.40%

      2,769,787         -             651         21,986         7         100,481         11,601         -       

1.45%

      431,286         -             63         4,032         -             17,225         1,130         -       

1.50%

      1,011,539         -             -             3,035         -             24,382         4,729         435   

1.55%

      746,094         -             22         4,614         86         11,821         1,386         -       

1.60%

      1,131,596         -             -             7,359         -             38,572         952         54   

1.65%

      1,155,601         -             -             7,025         2         24,614         2,418         304   

1.70%

      116,968         -             -             599         -             10,623         295         -       

1.75%

      614,394         -             -             488         2         11,323         2,781         -       

1.80%

      419,260         -             -             3,577         -             5,717         143         -       

1.85%

      142,838         -             -             254         -             2,929         103         -       

1.90%

      81,042         -             -             6,685         -             494         239         -       

1.95%

      370,886         -             -             934         -             1,445         -             23   

2.00%

      53,446         -             -             -             -             246         -             -       

2.05%

      251,512         -             -             5         -             1,628         314         -       

2.10%

      242,765         -             -             -             -             129         -             458   

2.15%

      50,721         -             -             -             -             221         -             -       

2.20%

      235,192         -             -             1,927         -             4,034         -             -       

2.25%

      627,323         -             -             -             -             15,210         -             -       

2.35%

      23,856         -             -             -             -             -             -             -       

2.40%

      1,231         -             -             -             -             -             -             -       

2.45%

      25,250         -             -             -             -             -             -             -       

2.50%

      15,209         -             -             -             -             -             -             -       

2.60%

      62,742         -             -             -             -             -             -             4   
  

 

 

  

Totals

    $ 68,686,935       $ 2,667       $ 7,228       $ 485,750       $ 2,051       $ 3,405,338       $ 439,415       $ 1,278   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     GVGMNS      HVIE      HVSIT      IVMCC2      IVKMG2      JPMMV1      JABS      JACAS  
  

 

 

  

0.95%

    $ 133       $ 728       $ 6,279       $ 19       $ 4,033       $ 54,348       $ -           $ 255,595   

1.00%

      8         -             881         -             480         26,398         -             150,631   

1.05%

      -             -             363         -             75         3,925         -             23,139   

1.10%

      812         94         471         2,123         1,446         16,885         -             101,307   

1.15%

      -             158         1,390         560         237         9,319         -             45,253   

1.20%

      455         402         418         91         2,375         44,613         -             199,630   

1.25%

      90         -             46         9         1,231         4,998         1,029         33,859   

1.30%

      -             -             -             -             1         10,630         -             50,510   

1.35%

      78         -             251         19         54         7,244         -             41,753   

1.40%

      -             -             554         -             233         4,497         -             39,075   

1.45%

      -             -             96         -             -             402         -             5,052   

1.50%

      -             -             69         -             1,481         1,778         -             21,438   

1.55%

      -             -             1,942         -             88         3,281         -             9,497   

1.60%

      -             -             245         -             92         4,607         -             13,216   

1.65%

      -             -             -             -             1,623         5,667         -             16,713   

1.70%

      -             -             -             -             -             575         -             2,557   

1.75%

      -             -             4         4         118         92         -             2,776   

1.80%

      -             -             -             -             234         979         -             4,755   

1.85%

      -             -             -             -             -             2,540         -             829   

1.90%

      -             -             -             -             -             -             -             253   

1.95%

      -             -             -             -             225         5,918         -             1,672   

2.00%

      -             -             -             -             -             -             -             420   

2.05%

      -             -             -             -             1,124         693         -             2,742   

2.10%

      -             -             -             -             -             581         -             -       

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      -             -             -             -             577         335         -             273   

2.25%

      -             -             -             -             228         -             -             8,347   

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 1,576       $ 1,382       $ 13,009       $ 2,825       $ 15,955       $ 210,305       $ 1,029       $ 1,031,292   
  

 

 

  
     JAGTS      JAIGS      MIGSC      MMCGSC      MNDSC      MVFSC      MVIVSC      MSVFI  
  

 

 

  

0.95%

    $ 85,265       $ 247,609       $ -           $ -           $ 12,144       $ 138,962       $ 40,178       $ 7,903   

1.00%

      51,838         127,196         -             -             2,084         34,763         11,031         2,599   

1.05%

      8,013         21,688         -             -             144         6,339         1,091         54   

1.10%

      41,852         114,768         -             -             2,441         32,617         8,368         2,590   

1.15%

      16,360         54,864         -             -             4,203         20,734         6,201         531   

1.20%

      57,904         224,727         -             -             2,557         79,116         21,174         4,966   

1.25%

      14,211         29,932         2,319         -             277         8,570         1,216         1,822   

1.30%

      9,270         26,385         -             -             -             14,990         3,958         934   

1.35%

      19,313         33,238         -             -             37         11,136         2,798         918   

1.40%

      7,631         34,224         -             -             190         15,923         4,978         772   

1.45%

      1,627         5,359         -             -             146         1,772         165         -       

1.50%

      2,089         10,354         -             3,346         1,346         9,162         1,054         216   

1.55%

      755         4,506         -             -             1,488         1,751         2,090         74   

1.60%

      1,561         6,891         -             500         1,448         3,472         1,786         208   

1.65%

      2,073         10,482         -             3,530         1,649         11,618         1,769         710   

1.70%

      147         1,127         -             -             47         410         487         28   

1.75%

      1,131         6,776         -             1,536         263         4,587         1,486         5,243   

1.80%

      781         3,173         -             1,083         229         2,055         434         -       

1.85%

      470         756         -             -             964         252         1,577         325   

1.90%

      235         375         -             1,058         199         134         302         -       

1.95%

      136         510         -             3,323         4,489         3,325         5,682         31   

2.00%

      -             293         -             -             -             3,195         -             -       

2.05%

      1,108         2,549         -             3,587         3,705         4,135         265         -       

2.10%

      20         -             -             2,375         1,164         2,848         1,187         -       

2.15%

      -             97         -             -             -             3,516         -             -       

2.20%

      212         1,159         -             756         2,531         3,988         1,159         -       

2.25%

      -             -             50         -             -             7,230         -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             41         25         98         50         -       

2.50%

      -             -             -             -             -             663         -             -       

2.60%

      -             -             -             714         -             182         483         -       
  

 

 

  
   $ 324,002       $ 969,038       $ 2,369       $ 21,849       $ 43,770       $ 427,543       $ 120,969       $ 29,924   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     MSVF2      MSEM      MSVMG      MSVRE      NVAMV1      NVAMV2      GVAAA2      GVABD2  
  

 

 

  

0.95%

    $ -           $ 29,585       $ -           $ -           $ 397,308       $ -           $ 84,936       $ 56,745   

1.00%

      -             10,252         -             -             151,332         -             51,787         13,436   

1.05%

      -             1,405         -             -             25,945         -             13,467         6,501   

1.10%

      -             9,480         -             -             201,514         -             45,071         12,264   

1.15%

      -             4,340         -             -             103,678         -             24,056         10,463   

1.20%

      -             14,655         17         534         324,222         -             111,682         60,501   

1.25%

      293         2,905         -             100         58,583         -             20,151         4,437   

1.30%

      -             2,088         -             -             55,828         -             36,313         11,670   

1.35%

      -             4,790         -             -             70,627         -             16,456         11,301   

1.40%

      -             2,726         -             -             87,442         -             23,974         6,433   

1.45%

      -             1,699         -             -             9,239         -             4,068         147   

1.50%

      604         323         -             37         22,028         10,121         3,626         2,272   

1.55%

      -             960         -             -             8,982         -             6,141         1,042   

1.60%

      -             7,920         39         10,651         28,547         433         1,232         263   

1.65%

      1,850         1,511         -             -             20,250         3,986         9,546         2,915   

1.70%

      -             23         -             -             3,022         -             786         -       

1.75%

      2,493         1,640         798         4,698         9,046         1,960         279         362   

1.80%

      -             452         -             -             9,554         4,923         1,182         1,350   

1.85%

      -             76         -             -             3,296         -             2,249         56   

1.90%

      -             12         -             -             625         2,661         64         55   

1.95%

      7,135         -             -             -             1,130         4,413         4,744         -       

2.00%

      -             200         -             -             1,370         1,422         -             -       

2.05%

      -             -             -             -             4,315         4,893         435         -       

2.10%

      -             -             -             -             129         3,679         318         -       

2.15%

      -             4         -             -             10         1,337         -             -       

2.20%

      391         -             -             -             3,505         4,631         5,060         33   

2.25%

      2,259         -             -             -             9,004         -             41,610         7,129   

2.35%

      -             -             -             -             -             2,430         -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             636         -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      796         -             -             -             -             735         -             -       
  

 

 

  
   $ 15,821       $ 97,046       $ 854       $ 16,020       $ 1,610,531       $ 48,260       $ 509,233       $ 209,375   
  

 

 

  
     GVAGG2      GVAGR2      GVAGI2      HIBF      HIBF3      GEM      GEM3      GEM6  
  

 

 

  

0.95%

    $ 58,657       $ 136,787       $ 44,673       $ 77,763       $ 90,713       $ 3,088       $ 75,233       $ -       

1.00%

      18,937         30,006         15,053         36,505         27,201         1,095         24,175         -       

1.05%

      5,027         8,672         3,535         11,121         5,387         54         4,535         -       

1.10%

      27,391         36,934         16,635         27,547         32,129         3,523         35,700         -       

1.15%

      19,392         25,110         10,694         19,538         13,875         1,161         32,302         -       

1.20%

      55,923         84,919         49,041         34,151         61,887         823         55,089         -       

1.25%

      10,364         16,323         7,192         7,452         17,829         1,051         11,063         -       

1.30%

      24,652         49,618         6,821         12,209         17,661         56         7,796         -       

1.35%

      11,117         16,553         4,680         10,835         19,103         47         18,960         -       

1.40%

      13,795         22,329         7,419         9,538         16,570         367         11,186         -       

1.45%

      67         2,074         77         1,280         1,033         -             1,631         -       

1.50%

      907         5,113         1,497         3,400         1,198         40         2,365         1,282   

1.55%

      3,051         2,053         1,849         2,154         2,042         -             2,575         -       

1.60%

      2,118         2,747         454         5,786         2,034         73         4,119         653   

1.65%

      1,903         10,677         1,359         2,913         6,049         234         1,568         994   

1.70%

      44         126         -             361         87         -             107         -       

1.75%

      1,624         3,019         -             7,017         377         -             3,653         928   

1.80%

      1,011         569         67         4,148         972         -             922         82   

1.85%

      96         383         -             331         254         -             548         -       

1.90%

      83         82         123         2         6         -             -             175   

1.95%

      71         464         -             60         1         -             773         1,024   

2.00%

      -             -             -             -             -             -             337         -       

2.05%

      -             893         -             -             4         12         661         876   

2.10%

      -             -             -             -             -             -             23         589   

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      50         36         42         189         38         -             2         1,423   

2.25%

      -             14,964         16,893         -             -             -             -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             336   

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             216   
  

 

 

  
   $ 256,280       $ 470,451       $ 188,104       $ 274,300       $ 316,450       $ 11,624       $ 295,323       $ 8,578   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     GIG      GIG3      NVIE6      NVNMO1      NVNSR1      NVCRA2      NVCRB2      NVCCA2  
  

 

 

  

0.95%

    $ 19,759       $ 59,002       $ -           $ 235,884       $ 24,550       $ 8,723       $ 31,207       $ 16,099   

1.00%

      10,094         26,345         -             118,752         3,969         2,106         14,109         5,989   

1.05%

      2,856         5,690         -             31,151         788         -             3,157         1,533   

1.10%

      8,758         20,653         -             92,756         7,364         5,892         17,773         12,039   

1.15%

      2,046         10,659         -             41,264         6,511         1,573         3,942         1,169   

1.20%

      7,494         49,820         -             112,377         9,076         8,468         20,310         3,722   

1.25%

      2,412         4,586         1,041         18,279         2,268         1,577         8,339         5,518   

1.30%

      2,909         7,187         -             29,859         272         -             4,510         10,700   

1.35%

      1,336         10,345         -             29,600         3,424         792         3,004         6,337   

1.40%

      1,420         5,363         -             23,248         1,776         92         5,553         1,064   

1.45%

      203         1,216         -             4,491         100         -             456         -       

1.50%

      193         2,048         -             6,175         412         -             281         1,433   

1.55%

      288         1,812         -             7,456         310         432         1,028         281   

1.60%

      250         2,803         -             7,872         92         -             258         -       

1.65%

      764         789         -             5,423         662         667         847         -       

1.70%

      -             247         -             1,502         115         -             -             -       

1.75%

      -             2,062         -             596         327         191         -             -       

1.80%

      483         832         -             2,391         -             -             -             2,810   

1.85%

      212         311         -             552         -             -             -             -       

1.90%

      -             -             -             2,089         -             -             2,580         -       

1.95%

      -             170         -             14         -             -             -             -       

2.00%

      -             21         -             -             -             -             -             -       

2.05%

      76         730         -             1,553         -             -             -             -       

2.10%

      -             -             -             -             -             -             -             -       

2.15%

      -             2         -             -             -             -             -             -       

2.20%

      58         541         -             86         -             -             -             -       

2.25%

      -             -             -             555         966         61         4,557         3,767   

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 61,611       $ 213,234       $ 1,041       $ 773,925       $ 62,982       $ 30,574       $ 121,911       $ 72,461   
  

 

 

  
     NVCCN2      NVCMD2      NVCMA2      NVCMC2      NVCBD1      NVCBD2      NVLCP2      TRF  
  

 

 

  

0.95%

    $ 18,203       $ 39,952       $ 20,716       $ 24,023       $ 17,829       $ -           $ 19,534       $ 449,339   

1.00%

      9,067         40,271         8,824         7,902         9,093         -             4,831         246,435   

1.05%

      773         1,192         -             3,234         1,060         -             1,195         42,991   

1.10%

      6,334         38,965         10,907         13,549         10,277         -             2,678         117,851   

1.15%

      1,374         21,179         4,410         7,292         4,495         -             3,032         36,950   

1.20%

      20,626         39,969         15,864         20,785         22,855         -             19,622         118,472   

1.25%

      12,960         11,858         8,126         3,024         1,341         -             3,110         27,531   

1.30%

      4,766         4,891         3,717         5,333         2,346         -             8,247         18,922   

1.35%

      9,664         17,417         5,148         4,688         5,633         -             935         17,093   

1.40%

      2,067         2,370         852         5,334         3,504         -             1,709         25,524   

1.45%

      657         1,200         -             -             327         -             -             5,804   

1.50%

      1,063         71         46         -             974         1,883         83         10,594   

1.55%

      3,939         459         -             -             195         -             -             1,530   

1.60%

      2,010         2,272         286         -             546         594         1,709         6,989   

1.65%

      1,439         3,701         -             -             435         1,416         41         5,437   

1.70%

      -             -             -             -             389         -             -             2,099   

1.75%

      1,450         -             -             -             81         328         -             4,139   

1.80%

      870         2,880         -             -             257         98         -             2,047   

1.85%

      -             -             -             1,202         -             -             -             570   

1.90%

      -             -             -             -             -             -             -             60   

1.95%

      -             -             -             -             17         2,326         -             54   

2.00%

      -             -             -             -             -             -             -             -       

2.05%

      -             -             -             -             -             6,300         -             92   

2.10%

      -             -             -             -             -             942         -             549   

2.15%

      -             -             -             -             -             -             -             203   

2.20%

      -             -             -             -             -             795         12         345   

2.25%

      7,346         24,985         27,109         1,209         2,699         -             2,323         10,575   

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             610         -             -       

2.50%

      -             -             -             -             -             322         -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 104,608       $ 253,632       $ 106,005       $ 97,575       $ 84,353       $ 15,614       $ 69,061       $ 1,152,195   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     TRF2      GBF      GBF2      CAF      GVIX8      GVIDA      NVDBL2      NVDCA2  
  

 

 

  

0.95%

    $ -           $ 561,784       $ -           $ 120,497       $ 20,760       $ 105,789       $ 18,148       $ 6,638   

1.00%

      -             226,737         -             60,728         458         15,083         8,107         359   

1.05%

      -             48,805         -             18,341         415         7,872         1,249         -       

1.10%

      -             229,747         -             28,799         2,173         75,573         8,016         646   

1.15%

      -             99,499         -             13,906         2,409         29,129         8,141         112   

1.20%

      -             319,468         -             32,928         7,970         68,421         10,750         3,573   

1.25%

      -             45,597         -             5,345         4,527         66,232         728         1,166   

1.30%

      -             57,895         -             8,727         69         4,575         3,488         2   

1.35%

      -             64,530         -             4,183         173         27,218         459         818   

1.40%

      -             82,747         -             4,789         854         18,828         1,937         485   

1.45%

      -             5,797         -             314         4         5,137         88         -       

1.50%

      730         13,871         16,777         2,787         24         14,481         -             -       

1.55%

      -             17,030         -             1,483         -             7,661         407         -       

1.60%

      130         33,876         2,461         1,051         -             12,432         257         -       

1.65%

      2,493         17,142         12,734         1,434         58         15,777         9         9   

1.70%

      -             3,194         -             647         -             1,731         -             -       

1.75%

      574         19,543         7,151         1,713         -             6,432         234         8   

1.80%

      720         8,154         1,098         277         135         6,590         27         -       

1.85%

      -             2,510         -             -             53         2,504         -             -       

1.90%

      -             71         759         -             -             132         -             -       

1.95%

      498         -             8,657         -             -             21,166         -             -       

2.00%

      -             304         47         42         -             -             -             -       

2.05%

      941         1,987         4,719         45         -             5,155         -             -       

2.10%

      1,329         -             9,406         -             -             2,890         -             -       

2.15%

      -             339         -             -             -             1,034         -             -       

2.20%

      350         1,198         5,416         -             -             3,178         -             -       

2.25%

      -             17,630         -             -             -             3,153         602         1,416   

2.35%

      -             -             163         -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             1,222         -             -             -             -             -       

2.50%

      581         -             117         -             -             -             -             -       

2.60%

      111         -             1,108         -             -             10,219         -             -       
  

 

 

  
   $ 8,457       $ 1,879,455       $ 71,835       $ 308,036       $ 40,082       $ 538,392       $ 62,647       $ 15,232   
  

 

 

  
     GVIDC      GVIDM      GVDMA      GVDMC      MCIF      SAM      NVMIG1      NVMIG3  
  

 

 

  

0.95%

    $ 104,753       $ 473,975       $ 180,664       $ 173,828       $ 283,394       $ 633,443       $ 36       $ 168,574   

1.00%

      23,316         145,482         41,526         38,038         123,958         237,183         2         81,162   

1.05%

      7,477         48,777         12,015         6,898         18,735         67,044         -             14,844   

1.10%

      57,329         332,926         206,253         105,708         151,613         216,380         1,128         42,158   

1.15%

      42,366         214,104         125,398         44,106         78,621         99,629         33         18,700   

1.20%

      77,774         353,543         160,704         94,100         207,791         547,140         -             107,574   

1.25%

      15,379         155,611         83,382         41,149         36,892         62,887         4         18,536   

1.30%

      11,411         47,752         11,589         13,331         61,002         63,415         -             18,810   

1.35%

      30,264         75,080         53,125         26,493         54,824         89,286         -             17,520   

1.40%

      28,140         158,579         77,191         35,927         41,532         88,116         -             20,120   

1.45%

      1,944         19,010         4,754         5,229         6,697         4,405         -             3,181   

1.50%

      14,314         52,747         35,856         26,760         9,712         33,121         -             16,120   

1.55%

      8,142         24,244         66,217         3,007         8,019         7,764         -             1,439   

1.60%

      27,269         108,480         31,114         23,832         14,114         13,096         -             4,017   

1.65%

      12,625         65,439         41,131         31,762         11,475         40,777         -             5,036   

1.70%

      33         7,884         2,858         5,159         1,889         1,850         -             365   

1.75%

      7,809         70,571         18,046         22,790         15,132         27,466         -             1,140   

1.80%

      1,397         39,411         11,397         8,858         4,648         11,615         -             2,982   

1.85%

      5,046         8,668         6,848         1,418         1,327         2,904         -             403   

1.90%

      404         3,786         1,872         7,667         338         1,802         -             90   

1.95%

      7,149         15,630         22,609         3,731         86         5,226         -             892   

2.00%

      -             2,160         -             1,641         539         248         -             12   

2.05%

      2,866         14,912         8,194         8,300         4,934         5,805         -             421   

2.10%

      4,626         19,391         21,092         15,669         830         5,086         -             -       

2.15%

      2,193         3,449         8,294         7,835         276         2,499         -             75   

2.20%

      4,394         13,024         13,640         18,269         3,001         3,796         -             768   

2.25%

      3,938         78,216         58,028         9,992         1,975         11,370         -             52   

2.35%

      273         7,072         1,582         308         -             1,095         -             -       

2.40%

      -             -             1,170         -             -             -             -             -       

2.45%

      -             2,279         2,393         1,019         -             37         -             -       

2.50%

      654         2,706         2,441         3,736         -             -             -             -       

2.60%

      3,554         1,523         2,231         4,569         -             1,350         -             -       
  

 

 

  
   $ 506,839       $ 2,566,431       $ 1,313,614       $ 791,129       $ 1,143,354       $ 2,285,835       $ 1,203       $ 544,991   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     GVDIV2      GVDIV3      GVDIV6      NVMLG1      NVMLG2      NVMLV1      NVMLV2      NVMMG1  
  

 

 

  

0.95%

    $ -           $ 23,999       $ -           $ 56,029       $ -           $ 20,434       $ 4,033       $ 275,947   

1.00%

      -             6,259         -             24,632         -             9,530         136         132,090   

1.05%

      -             2,013         -             2,631         -             2,081         514         20,991   

1.10%

      -             9,483         -             34,540         -             10,862         1,700         132,836   

1.15%

      -             8,824         -             28,332         -             9,895         1,014         58,706   

1.20%

      -             26,281         -             48,229         -             15,217         2,048         166,518   

1.25%

      7         1,880         1,998         10,817         -             3,047         3,337         37,424   

1.30%

      -             11,426         -             6,254         -             2,164         271         12,686   

1.35%

      -             2,804         -             11,921         -             2,490         212         27,941   

1.40%

      -             2,885         -             8,609         -             4,884         4,051         32,213   

1.45%

      -             160         -             952         -             124         44         5,629   

1.50%

      -             423         1,560         3,995         1,555         1,630         5,775         14,955   

1.55%

      -             859         -             1,116         -             432         -             5,040   

1.60%

      -             3,002         93         9,433         336         7,305         1,363         9,026   

1.65%

      -             731         1,866         9,041         1,439         768         5,008         17,065   

1.70%

      -             76         -             756         -             147         9         1,972   

1.75%

      -             1,169         292         5,545         -             2,147         1,489         2,760   

1.80%

      -             1,873         -             2,861         5         1,983         896         4,202   

1.85%

      -             839         -             102         -             119         -             789   

1.90%

      -             -             -             325         -             125         1,014         834   

1.95%

      -             15         214         2,368         2,469         -             6,323         855   

2.00%

      -             43         -             353         -             164         -             265   

2.05%

      -             606         558         2,068         38         11         1,148         3,411   

2.10%

      -             -             201         1,415         436         -             4,434         -       

2.15%

      -             -             -             13         -             16         248         271   

2.20%

      -             492         438         1,542         2,495         7         4,457         4,389   

2.25%

      -             -             -             3,871         45         5         1,173         4,668   

2.35%

      -             -             31         -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             41         -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             12         1,032         134         -             3,250         -       
  

 

 

  
   $ 7       $ 106,142       $ 7,263       $ 278,823       $ 8,952       $ 95,587       $ 53,947       $ 973,483   
  

 

 

  
     NVMMG2      NVMMV2      SCGF      SCGF2      SCVF      SCVF2      SCF      SCF2  
  

 

 

  

0.95%

    $ -           $ 166,292       $ 72,599       $ -           $ 357,088       $ -           $ 347,892       $ -       

1.00%

      -             39,334         27,288         -             114,210         -             140,909         -       

1.05%

      -             6,827         3,830         -             15,060         -             22,001         -       

1.10%

      -             112,725         37,817         -             156,365         -             120,458         -       

1.15%

      -             63,560         18,582         -             68,192         -             57,918         -       

1.20%

      41,166         166,145         61,658         -             213,717         -             201,102         -       

1.25%

      -             23,109         9,832         -             35,075         -             34,640         -       

1.30%

      15,463         17,931         7,947         -             27,245         -             37,683         -       

1.35%

      13,628         37,420         15,239         -             47,875         -             33,966         -       

1.40%

      8,169         49,704         9,830         -             45,204         -             53,227         -       

1.45%

      -             1,594         839         -             6,070         -             3,443         -       

1.50%

      629         12,075         1,719         715         12,689         3,187         12,303         6,111   

1.55%

      -             6,439         1,765         -             6,986         -             5,081         -       

1.60%

      41         9,544         4,279         450         23,414         945         11,480         3,423   

1.65%

      2,307         14,076         3,730         528         13,729         2,870         9,032         2,446   

1.70%

      -             2,164         430         -             3,442         -             978         -       

1.75%

      250         3,437         5,031         478         12,984         1,128         4,998         1,268   

1.80%

      50         6,418         4,121         -             7,552         14         7,459         2,696   

1.85%

      145         879         204         -             2,736         -             946         -       

1.90%

      -             614         43         204         493         430         651         1,458   

1.95%

      -             80         2         1,726         1,483         1,145         82         2,724   

2.00%

      -             -             -             34         324         123         170         654   

2.05%

      415         4,005         1,314         839         1,415         598         1,183         2,068   

2.10%

      725         -             -             705         129         2,051         -             3,146   

2.15%

      -             6         204         -             265         -             -             682   

2.20%

      -             858         1,243         575         2,309         1,763         242         2,252   

2.25%

      -             827         -             -             -             -             -             -       

2.35%

      -             -             -             -             -             134         -             -       

2.40%

      -             -             -             -             14         -             -             -       

2.45%

      -             -             -             15         -             14         -             1,678   

2.50%

      -             -             -             -             -             -             -             571   

2.60%

      -             -             -             39         -             686         -             703   
  

 

 

  
   $ 82,988       $ 746,063       $ 289,546       $ 6,308       $ 1,176,065       $ 15,088       $ 1,107,844       $ 31,880   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     MSBF      NVSTB2      NVOLG1      NVOLG2      NVTIV3      EIF      NVRE1      NCPG2  
  

 

 

  

0.95%

    $ 172,000       $ 33,896       $ 1,270,395       $ -           $ 8,437       $ 66,376       $ 332,130       $ 24   

1.00%

      75,690         6,733         580,868         -             1,729         43,927         96,519         -       

1.05%

      14,222         1,668         108,623         -             976         9,118         12,395         -       

1.10%

      50,285         4,733         441,048         -             5,021         31,207         113,028         -       

1.15%

      29,794         5,111         232,211         -             4,928         36,110         60,392         -       

1.20%

      124,197         18,307         753,988         -             4,693         56,919         163,025         -       

1.25%

      14,178         3,734         146,988         -             2,852         11,121         24,586         -       

1.30%

      27,126         2,742         114,579         -             1,813         5,529         20,463         -       

1.35%

      28,012         3,477         162,370         -             946         16,846         46,531         2   

1.40%

      19,226         5,611         185,454         -             1,212         10,335         30,313         -       

1.45%

      1,367         4         27,014         -             102         1,126         6,078         -       

1.50%

      16,349         501         42,578         33,826         23         4,209         15,563         -       

1.55%

      4,336         101         23,467         -             55         2,852         5,371         -       

1.60%

      5,470         163         52,275         5,875         75         3,384         20,403         -       

1.65%

      19,241         3,319         49,332         29,313         609         8,027         17,107         -       

1.70%

      1,311         -             9,465         -             126         890         1,105         -       

1.75%

      7,215         -             22,500         13,168         72         2,506         7,010         -       

1.80%

      5,033         -             20,255         7,063         102         1,282         8,336         -       

1.85%

      1,791         -             3,805         -             -             1,182         1,783         -       

1.90%

      768         -             2,951         4,126         -             -             834         -       

1.95%

      6,308         -             1,262         20,040         -             1,761         5,680         -       

2.00%

      12         -             1,059         1,940         -             43         496         -       

2.05%

      11,098         -             5,249         8,687         -             761         4,506         -       

2.10%

      5,145         -             -             10,817         -             129         6,197         -       

2.15%

      4         -             12         251         -             -             14         -       

2.20%

      3,065         -             5,696         14,043         5         135         5,707         -       

2.25%

      -             7,467         55,004         -             -             2,403         186         -       

2.35%

      -             -             -             3,222         -             -             1,342         -       

2.40%

      -             -             14         -             -             -             19         -       

2.45%

      643         -             -             1,891         -             -             144         -       

2.50%

      -             -             -             224         -             -             -             -       

2.60%

      1,271         -             -             1,786         -             -             845         -       
  

 

 

  
   $ 645,157       $ 97,567       $ 4,318,462       $ 156,272       $ 33,776       $ 318,178       $ 1,008,108       $ 26   
  

 

 

  
     NCPGI2      IDPG2      IDPGI2      NVSIX2      GVEX2      ALVGIB      ALVPGB      ALVSVB  
  

 

 

  

0.95%

    $ -           $ -           $ 21       $ 700       $ 2,082       $ -           $ -           $ 16,712   

1.00%

      1         430         -             277         726         -             -             6,142   

1.05%

      -             -             147         -             83         -             -             641   

1.10%

      -             -             -             237         567         -             -             13,539   

1.15%

      -             59         -             458         921         -             -             5,400   

1.20%

      1,234         7         -             476         3,090         -             -             13,712   

1.25%

      -             -             11         71         74         182         -             1,366   

1.30%

      -             -             -             -             150         -             -             1,739   

1.35%

      -             -             -             -             219         -             -             4,841   

1.40%

      -             -             -             45         178         -             -             3,822   

1.45%

      -             -             -             -             -             -             -             26   

1.50%

      -             -             -             -             -             2,997         1,471         5,795   

1.55%

      -             -             -             -             262         -             -             368   

1.60%

      -             -             -             20         56         729         985         882   

1.65%

      -             -             -             6         -             4,936         6,682         6,688   

1.70%

      -             -             -             -             -             -             -             70   

1.75%

      -             -             -             -             -             476         508         2,127   

1.80%

      -             -             -             -             -             961         368         1,842   

1.85%

      -             -             -             -             -             -             -             130   

1.90%

      -             -             -             -             -             -             -             1,155   

1.95%

      -             -             -             -             -             4,247         4,495         9,133   

2.00%

      -             -             -             -             -             -             -             34   

2.05%

      -             -             -             -             -             2,961         1,500         1,706   

2.10%

      -             -             -             -             -             2,146         472         2,467   

2.15%

      -             -             -             -             -             110         -             -       

2.20%

      -             -             -             -             -             2,768         862         5,454   

2.25%

      -             -             -             -             -             -             -             13,885   

2.35%

      -             -             -             -             -             -             -             439   

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             474         -             89   

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             536         114         812   
  

 

 

  
   $ 1,235       $ 496       $ 179       $ 2,290       $ 8,408       $ 23,523       $ 17,457       $ 121,016   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     ACVIG      ACVIG2      ACVIP2      ACVI      ACVI3      ACVMV1      ACVMV2      ACVU1  
  

 

 

  

0.95%

    $ 190,433       $ -           $ 192,938       $ 2,071       $ 72       $ 46,210       $ -           $ -       

1.00%

      69,191         -             45,582         103         -             19,028         -             -       

1.05%

      15,242         -             9,037         -             -             1,223         -             -       

1.10%

      87,417         -             42,045         10,018         -             17,608         -             -       

1.15%

      35,980         -             36,864         5,290         -             8,285         -             -       

1.20%

      118,404         -             144,032         507         -             39,391         -             -       

1.25%

      19,214         -             18,444         99         -             2,062         3,649         -       

1.30%

      22,874         -             14,708         218         -             4,079         -             -       

1.35%

      23,664         -             37,178         -             -             3,696         -             -       

1.40%

      25,331         -             21,788         9         -             5,563         -             -       

1.45%

      2,582         -             1,000         -             -             233         -             -       

1.50%

      7,688         2,241         5,366         -             -             893         -             -       

1.55%

      8,164         -             8,660         -             -             2,169         -             -       

1.60%

      7,659         398         8,806         -             92         2,376         -             -       

1.65%

      12,103         2,935         4,741         -             -             869         -             -       

1.70%

      867         -             53         -             -             364         -             -       

1.75%

      4,970         1,279         4,519         184         1,814         127         -             280   

1.80%

      9,212         656         5,087         -             -             372         -             -       

1.85%

      1,954         -             2,254         -             -             583         -             -       

1.90%

      -             279         607         -             -             -             -             -       

1.95%

      3,775         1,129         1,547         -             -             1,444         -             -       

2.00%

      142         52         -             -             -             -             -             -       

2.05%

      3,156         1,530         -             -             -             3         -             -       

2.10%

      323         8,006         687         -             -             128         -             -       

2.15%

      -             147         2,159         -             -             -             -             -       

2.20%

      171         552         2,303         -             -             632         -             -       

2.25%

      -             -             18,603         -             -             -             4,515         -       

2.35%

      -             1,242         217         -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             294         -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             502         566         -             -             -             -             -       
  

 

 

  
   $ 670,516       $ 20,948       $ 630,085       $ 18,499       $ 1,978       $ 157,338       $ 8,164       $ 280   
  

 

 

  
     ACVV      DVSCS      DCAP      DCAPS      DSC      DVIV      FCA2S      FHIBS  
  

 

 

  

0.95%

    $ 2,109       $ 78,697       $ 210,771       $ -           $ 33       $ 475       $ -           $ -       

1.00%

      17         26,260         88,956         -             -             -             -             -       

1.05%

      -             3,579         27,083         -             -             -             -             -       

1.10%

      14,174         38,533         81,001         -             86         30         -             -       

1.15%

      6,569         21,607         46,545         -             -             11         -             -       

1.20%

      467         56,673         140,745         -             -             -             -             -       

1.25%

      404         14,025         19,835         -             72         -             -             -       

1.30%

      655         6,996         21,819         -             -             -             -             -       

1.35%

      -             27,907         27,631         -             -             -             -             -       

1.40%

      -             13,434         29,159         -             -             35         -             -       

1.45%

      -             3,605         2,445         -             -             -             -             -       

1.50%

      -             1,475         6,939         2,806         -             -             720         5,854   

1.55%

      -             2,074         6,441         -             247         -             -             -       

1.60%

      -             4,104         5,967         1,186         -             -             1,222         1,376   

1.65%

      -             2,034         6,629         4,248         -             -             220         4,397   

1.70%

      -             693         2,440         -             -             -             -             -       

1.75%

      -             1,659         2,558         1,086         -             -             -             2,477   

1.80%

      -             392         2,204         89         -             -             77         751   

1.85%

      -             1,987         2,563         -             -             -             -             -       

1.90%

      -             -             -             -             -             -             -             -       

1.95%

      -             2,667         5,997         2,265         -             -             606         4,555   

2.00%

      -             -             259         -             -             -             -             358   

2.05%

      -             1,400         887         2,816         -             -             383         7,522   

2.10%

      -             293         443         3,913         -             -             52         8,641   

2.15%

      -             -             -             -             -             -             150         -       

2.20%

      -             531         203         898         -             -             2,053         986   

2.25%

      -             12         2,670         -             -             -             -             -       

2.35%

      -             -             -             -             -             -             -             457   

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             1,616         -             -             -             752   

2.50%

      -             -             -             159         -             -             -             -       

2.60%

      -             -             -             1,587         -             -             151         1,005   
  

 

 

  
   $ 24,395       $ 310,637       $ 742,190       $ 22,669       $ 438       $ 551       $ 5,634       $ 39,131   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     FQB      FQBS      FVSS2      FCS      FNRS2      FEIS      FEI2      FF10S  
  

 

 

  

0.95%

    $ 281,969       $ -           $ -           $ 12,081       $ 47,475       $ 679,915       $ -           $ 35,127   

1.00%

      76,740         -             -             1,197         22,510         328,434         -             13,489   

1.05%

      22,086         -             -             -             3,687         72,958         -             231   

1.10%

      135,223         -             -             89,097         24,875         317,808         -             13,978   

1.15%

      78,020         -             -             36,119         8,056         144,858         -             7,279   

1.20%

      202,878         -             -             3,255         44,220         431,269         -             21,234   

1.25%

      35,589         -             -             1,537         6,056         71,892         -             436   

1.30%

      49,011         -             -             2,506         4,411         78,576         -             16,238   

1.35%

      57,856         -             -             51         10,999         108,172         -             1,578   

1.40%

      58,521         -             -             -             8,756         101,869         -             3,407   

1.45%

      6,200         -             -             -             514         8,751         -             -       

1.50%

      8,880         9,804         2,274         -             1,589         23,901         19,411         996   

1.55%

      13,590         -             -             -             1,110         18,395         -             71   

1.60%

      30,686         2,842         297         -             1,725         40,202         3,207         408   

1.65%

      20,063         11,655         1,117         -             1,646         32,323         14,666         2,576   

1.70%

      2,802         -             -             -             2         4,696         -             21   

1.75%

      31,107         3,787         2,219         -             3,107         18,845         4,478         1,750   

1.80%

      10,519         771         141         -             1,618         13,235         6,172         126   

1.85%

      2,687         -             -             -             527         4,815         -             -       

1.90%

      -             1,639         -             -             95         663         4,879         -       

1.95%

      33         11,494         1,521         -             528         2,501         10,686         17   

2.00%

      508         482         67         -             182         395         108         -       

2.05%

      1,479         10,709         1,191         -             100         4,698         5,693         -       

2.10%

      -             7,199         2,127         -             -             160         7,456         -       

2.15%

      86         5,015         -             -             -             9         -             -       

2.20%

      204         3,125         1,032         -             2         1,256         7,024         -       

2.25%

      1,551         -             -             -             -             16,904         -             -       

2.35%

      -             452         -             -             -             -             329         -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             131         -             -             -             -             1,085         -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             1,817         788         -             -             -             6,062         -       
  

 

 

  
   $ 1,128,288       $ 70,922       $ 12,774       $ 145,843       $ 193,790       $ 2,527,500       $ 91,256       $ 118,962   
  

 

 

  
     FF10S2      FF20S      FF20S2      FF30S      FF30S2      FGOS      FGS      FG2  
  

 

 

  

0.95%

    $ -           $ 32,069       $ -           $ 12,967       $ -           $ 336       $ 507,391       $ -       

1.00%

      -             15,905         -             19,097         -             21         280,892         -       

1.05%

      -             3,492         -             1,172         -             -             56,654         -       

1.10%

      -             19,319         -             13,356         -             9,417         194,640         -       

1.15%

      -             8,257         -             8,100         -             2,061         79,733         -       

1.20%

      -             25,918         -             11,783         -             10         320,303         -       

1.25%

      240         1,991         655         2,210         2,812         -             54,765         -       

1.30%

      -             1,698         -             5,789         -             148         58,881         -       

1.35%

      -             1,963         -             2,331         -             -             48,740         -       

1.40%

      -             3,931         -             673         -             -             47,620         -       

1.45%

      -             -             -             -             -             -             6,188         -       

1.50%

      -             3,407         -             -             -             -             23,585         8,812   

1.55%

      -             1,480         -             -             -             -             7,756         -       

1.60%

      -             -             -             -             -             -             10,768         1,888   

1.65%

      -             323         -             -             -             -             19,332         6,322   

1.70%

      -             -             -             -             -             -             2,940         -       

1.75%

      -             -             -             -             -             -             8,533         4,279   

1.80%

      -             -             -             13         -             -             6,103         6   

1.85%

      -             650         -             -             -             -             1,995         -       

1.90%

      -             -             -             -             -             -             504         1,104   

1.95%

      -             706         -             -             -             -             -             3,065   

2.00%

      -             -             -             -             -             -             237         545   

2.05%

      -             -             -             -             -             -             3,184         4,281   

2.10%

      -             -             -             -             -             -             -             5,214   

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      -             -             -             -             -             -             456         5,721   

2.25%

      1,001         -             2,012         -             2,135         -             3,313         -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             1,175   

2.50%

      -             -             -             -             -             -             -             157   

2.60%

      -             -             -             -             -             -             -             1,721   
  

 

 

  
   $ 1,241       $ 121,109       $ 2,667       $ 77,491       $ 4,947       $ 11,993       $ 1,744,513       $ 44,290   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     FHIS      FHISR      FIGBS      FMCS      FMC2      FOS      FO2R      FOSR  
  

 

 

  

0.95%

    $ 137,844       $ 118,503       $ 172,195       $ 117,888       $ -           $ 52,940       $ -           $ 72,828   

1.00%

      70,992         32,295         44,817         38,114         -             34,597         -             22,484   

1.05%

      19,361         8,192         12,807         4,943         -             7,970         -             5,802   

1.10%

      48,602         30,277         40,940         52,208         -             10,092         -             36,281   

1.15%

      24,407         16,186         35,177         17,652         -             5,319         -             16,771   

1.20%

      73,351         276,552         129,381         78,008         -             31,126         -             64,357   

1.25%

      9,583         6,033         15,482         5,434         6,262         4,920         -             9,865   

1.30%

      18,627         20,907         27,650         11,886         -             4,509         -             10,684   

1.35%

      17,119         22,667         16,030         17,076         -             2,417         -             9,640   

1.40%

      11,730         9,865         18,960         19,363         -             2,195         -             21,426   

1.45%

      1,023         2,623         767         1,648         -             1,045         -             1,875   

1.50%

      4,583         2,543         4,589         2,462         11,070         2,034         5,446         1,991   

1.55%

      2,677         713         4,266         1,391         -             369         -             2,238   

1.60%

      4,198         2,158         4,846         5,863         4,651         224         4,683         2,403   

1.65%

      4,789         2,173         5,485         13,128         19,430         1,418         10,944         3,295   

1.70%

      81         440         1,561         70         -             20         -             129   

1.75%

      4,441         682         9,577         630         4,921         241         2,265         1,979   

1.80%

      1,855         1,158         3,687         1,113         1,520         203         436         2,375   

1.85%

      216         194         248         245         -             -             -             712   

1.90%

      -             -             268         103         1,770         -             994         -       

1.95%

      11         1         -             544         10,383         -             9,309         63   

2.00%

      -             12         -             127         4,136         -             1,208         83   

2.05%

      -             -             -             1,385         8,303         371         1,775         406   

2.10%

      -             -             -             -             14,398         -             4,388         -       

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      1,086         319         902         1,307         2,752         765         4,668         549   

2.25%

      -             -             21,972         -             18,306         -             -             -       

2.35%

      -             -             -             -             619         -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             2,909         -             758         -       

2.50%

      -             -             -             -             1,216         -             -             -       

2.60%

      -             -             -             -             1,281         -             861         -       
  

 

 

  
   $ 456,576       $ 554,493       $ 571,607       $ 392,588       $ 113,927       $ 162,775       $ 47,735       $ 288,236   
  

 

 

  
     FVSS      FTVIS2      FTVRD2      FTVSV2      FTVDM3      TIF2      TIF3      FTVGI3  
  

 

 

  

0.95%

    $ 39,218       $ 114,372       $ -           $ 43,087       $ 22,831       $ -           $ 24,476       $ 155,338   

1.00%

      13,124         65,997         -             14,399         10,393         -             12,390         54,014   

1.05%

      3,121         11,828         -             2,023         1,061         -             1,564         8,794   

1.10%

      16,859         60,039         -             17,326         13,198         -             7,288         46,335   

1.15%

      9,568         27,229         -             12,171         3,359         -             5,056         28,255   

1.20%

      21,845         159,972         -             38,187         14,589         -             12,733         110,977   

1.25%

      4,141         15,054         7,188         8,908         4,229         325         4,228         11,946   

1.30%

      3,751         58,562         -             2,875         2,082         -             14,983         25,462   

1.35%

      4,723         60,887         -             7,120         4,733         -             2,432         22,109   

1.40%

      7,755         37,526         -             4,391         3,020         -             7,601         19,834   

1.45%

      895         2,510         -             828         1,161         -             27         951   

1.50%

      170         5,431         -             720         258         -             639         2,751   

1.55%

      821         1,340         -             1,003         735         -             53         5,536   

1.60%

      6,190         8,551         -             2,114         4,085         -             2,448         4,519   

1.65%

      1,713         23,110         -             2,232         672         -             114         13,186   

1.70%

      631         780         -             112         -             -             -             1,396   

1.75%

      998         6,329         -             675         1,281         -             345         6,351   

1.80%

      409         6,580         -             788         27         -             -             2,884   

1.85%

      763         1,607         -             208         114         -             127         3,532   

1.90%

      -             -             -             -             79         -             -             -       

1.95%

      1,437         781         -             -             58         -             521         7,057   

2.00%

      -             -             -             -             198         -             -             -       

2.05%

      896         8         -             -             903         -             -             -       

2.10%

      129         -             -             -             -             -             -             560   

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      12         211         -             17         -             -             -             395   

2.25%

      646         7,497         3,668         -             -             -             -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 139,815       $ 676,201       $ 10,856       $ 159,184       $ 89,066       $ 325       $ 97,025       $ 532,182   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     FTVFA2      AMTB      AMGP      AMCG      AMTP      AMFAS      AMSRS      OVGR  
  

 

 

  

0.95%

    $ 13,373       $ 48,988       $ -           $ 19       $ -           $ 2,819       $ 31,246       $ 3,044   

1.00%

      4,585         19,394         -             -             -             524         13,666         291   

1.05%

      796         5,718         -             -             -             -             5,625         -       

1.10%

      2,757         37,507         -             -             -             935         9,811         17,880   

1.15%

      2,787         21,121         -             -             -             644         2,533         11,278   

1.20%

      13,331         69,002         -             91         -             1,553         33,293         541   

1.25%

      1,408         11,501         -             3         -             401         1,467         444   

1.30%

      2,431         4,140         -             -             -             861         900         334   

1.35%

      2,814         12,936         -             -             -             1,295         294         126   

1.40%

      2,869         6,420         -             -             -             1,222         1,011         -       

1.45%

      627         427         -             -             -             -             56         -       

1.50%

      485         2,534         -             -             -             1,179         203         -       

1.55%

      129         451         -             -             -             -             1,603         -       

1.60%

      7,161         2,154         576         1,062         355         1,177         1,031         -       

1.65%

      20         4,736         -             -             -             1,105         672         -       

1.70%

      -             41         -             -             -             -             665         -       

1.75%

      194         2,994         2,956         3,682         479         923         624         -       

1.80%

      112         2,295         -             -             -             -             50         -       

1.85%

      263         48         -             -             -             -             551         -       

1.90%

      -             55         -             -             -             1,726         161         -       

1.95%

      624         2,092         -             -             -             605         1,672         -       

2.00%

      -             194         -             -             -             462         -             -       

2.05%

      5         292         -             -             -             307         -             -       

2.10%

      -             4,678         -             -             -             66         143         -       

2.15%

      -             -             -             -             -             578         -             -       

2.20%

      -             695         -             -             -             307         12         -       

2.25%

      -             6,919         -             -             -             -             726         4   

2.35%

      -             68         -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             8         -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             43         -             -       
  

 

 

  
   $ 56,771       $ 267,400       $ 3,532       $ 4,857       $ 834       $ 18,740       $ 108,015       $ 33,942   
  

 

 

  
     OVGS3      OVGS      OVGSS      OVGI      OVGIS      OVSC      OVSCS      OVAG  
  

 

 

  

0.95%

    $ 234,913       $ 130,649       $ -           $ 285,495       $ -           $ 52,011       $ -           $ 176,126   

1.00%

      58,120         35,198         -             161,958         -             11,702         -             82,910   

1.05%

      10,928         5,420         -             23,726         -             2,200         -             16,768   

1.10%

      103,468         79,649         -             120,013         -             17,515         -             88,495   

1.15%

      54,736         29,564         -             61,975         -             4,127         -             41,210   

1.20%

      192,129         111,166         -             183,720         -             18,982         -             114,793   

1.25%

      29,581         17,733         -             36,900         -             2,100         2,148         29,993   

1.30%

      28,431         13,812         -             30,191         -             1,213         -             12,316   

1.35%

      37,175         35,219         -             49,800         -             6,459         -             24,986   

1.40%

      44,587         34,436         -             40,977         -             2,830         -             23,533   

1.45%

      2,994         1,834         -             7,887         -             89         -             3,027   

1.50%

      13,854         6,103         4,575         13,347         8,620         185         -             4,758   

1.55%

      4,596         6,718         -             7,130         -             3,464         -             1,294   

1.60%

      24,922         12,367         692         7,704         2,097         457         -             4,721   

1.65%

      17,625         10,927         3,472         16,154         13,715         3,559         -             9,943   

1.70%

      2,007         607         -             1,495         -             396         -             768   

1.75%

      11,686         7,312         3,243         9,622         5,527         1,581         -             1,290   

1.80%

      5,483         8,618         2,284         9,559         924         229         -             3,003   

1.85%

      1,543         591         -             753         -             410         -             717   

1.90%

      4,619         905         57         955         1,189         -             -             1,282   

1.95%

      5,059         4         4,359         69         2,795         14         -             65   

2.00%

      1,906         2,017         -             245         52         -             -             -       

2.05%

      10,618         541         1,646         236         1,771         -             -             55   

2.10%

      2,643         741         2,366         -             4,976         -             -             -       

2.15%

      1,134         -             1,189         -             -             -             -             -       

2.20%

      6,744         485         1,914         1,156         1,343         -             -             970   

2.25%

      -             -             -             4,309         -             -             -             4   

2.35%

      -             -             1,096         -             618         -             -             -       

2.40%

      -             14         -             -             -             -             -             -       

2.45%

      954         -             76         -             -             -             -             -       

2.50%

      326         -             -             -             -             -             -             -       

2.60%

      2,083         -             166         -             841         -             -             -       
  

 

 

  
   $ 914,864       $ 552,630       $ 27,135       $ 1,075,376       $ 44,468       $ 129,523       $ 2,148       $ 643,027   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     OVSB      OVSBS      PMVAAD      PMVFAD      PMVLAD      PMVRRA      PMVTRA      PMVTRD  
  

 

 

  

0.95%

    $ 13,813       $ -           $ 18,446       $ 16,795       $ 107,535       $ 1,062       $ 2,961       $ 65,876   

1.00%

      2,737         -             5,459         4,371         35,458         42         86         25,894   

1.05%

      871         -             939         1,833         10,625         -             -             5,680   

1.10%

      1,452         -             9,027         4,257         30,188         6,332         15,192         24,008   

1.15%

      1,028         -             3,512         1,491         21,544         3,622         5,718         20,598   

1.20%

      8,514         -             11,175         17,506         160,419         117         318         21,364   

1.25%

      668         257         1,308         1,059         9,542         49         336         3,882   

1.30%

      2,761         -             192         15,807         16,499         478         129         2,529   

1.35%

      5,486         -             709         2,202         13,265         -             -             4,631   

1.40%

      1,688         -             2,023         3,258         19,554         -             -             6,330   

1.45%

      24         -             472         493         271         -             -             175   

1.50%

      523         6,008         230         177         5,246         -             -             1,715   

1.55%

      167         -             1,023         824         3,004         -             -             3,940   

1.60%

      -             3,463         21         -             11,110         -             -             1,583   

1.65%

      233         22,008         24         310         5,309         -             -             898   

1.70%

      -             -             325         252         41         -             -             712   

1.75%

      241         4,596         -             -             2,677         -             -             760   

1.80%

      -             444         -             -             16,122         -             -             192   

1.85%

      -             -             321         -             967         -             -             1,741   

1.90%

      -             823         -             -             53         -             -             -       

1.95%

      -             8,070         1,291         292         626         -             -             4,254   

2.00%

      -             86         -             -             -             -             -             -       

2.05%

      4         1,031         -             -             14         -             -             -       

2.10%

      -             7,284         153         -             -             -             -             407   

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      692         2,047         -             -             3,183         -             -             27   

2.25%

      -             204         -             -             6,155         -             -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             294         -             -             -             -             -             -       

2.50%

      -             951         -             -             -             -             -             -       

2.60%

      -             879         -             -             -             -             -             -       
  

 

 

  
   $ 40,902       $ 58,445       $ 56,650       $ 70,927       $ 479,407       $ 11,702       $ 24,740       $ 197,196   
  

 

 

  
     PVGIB      ACEG2      ACC2      ACEG      AVGI      AVCE2      IVKEI1      IVHS  
  

 

 

  

0.95%

    $ -           $ 981       $ -           $ 62       $ 65       $ -           $ 1,169       $ 161   

1.00%

      -             8         -             -             -             -             -             -       

1.05%

      -             963         -             -             -             -             -             -       

1.10%

      -             543         -             67         69         -             957         2,342   

1.15%

      -             776         -             310         -             -             271         366   

1.20%

      -             2,176         -             -             -             -             -             20   

1.25%

      159         157         -             -             -             -             310         64   

1.30%

      -             -             -             109         -             -             98         -       

1.35%

      -             88         -             -             106         -             33         -       

1.40%

      -             189         -             39         -             -             917         -       

1.45%

      -             -             -             -             -             -             -             -       

1.50%

      -             5,196         22,722         -             -             1,671         -             -       

1.55%

      -             113         -             -             579         -             15         -       

1.60%

      -             621         4,700         -             -             470         -             -       

1.65%

      -             2,790         18,558         -             -             714         -             -       

1.70%

      -             -             -             -             -             -             459         -       

1.75%

      -             1,920         7,521         -             -             514         -             -       

1.80%

      -             949         2,356         -             -             26         -             -       

1.85%

      -             -             -             -             -             -             -             -       

1.90%

      -             92         2,778         -             -             773         -             -       

1.95%

      -             5,423         16,305         -             -             2,174         -             -       

2.00%

      -             1,110         1,369         -             -             -             -             -       

2.05%

      -             3,084         4,103         -             -             1,958         -             -       

2.10%

      -             2,077         12,536         -             -             1,585         -             -       

2.15%

      -             2,338         3,522         -             -             -             -             -       

2.20%

      -             3,835         6,588         -             -             386         -             -       

2.25%

      -             219         -             -             -             -             -             -       

2.35%

      -             277         390         -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             36         44         -             -             1,357         -             -       

2.50%

      -             -             225         -             -             160         -             -       

2.60%

      -             353         2,577         -             -             -             -             -       
  

 

 

  
   $ 159       $ 36,314       $ 106,294       $ 587       $ 819       $ 11,788       $ 4,229       $ 2,953   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     IVRE      VYDS      ROCMC      RVARS      SBLD      SBLJ      SBLN      SBLO  
  

 

 

  

0.95%

    $ 261       $ 2,727       $ 154       $ 106       $ -           $ -           $ 34       $ 365   

1.00%

      3         6,896         15         155         -             -             -             21   

1.05%

      -             409         -             -             -             -             -             -       

1.10%

      2,066         11,425         4,672         282         1,177         1,263         1,968         2,063   

1.15%

      1,615         1,365         3,541         -             921         206         507         642   

1.20%

      6         7,675         63         333         84         -             37         675   

1.25%

      70         1,671         40         -             -             107         69         -       

1.30%

      22         2,932         -             33         8         64         168         -       

1.35%

      -             300         -             419         -             -             -             -       

1.40%

      -             1,006         -             -             -             -             -             -       

1.45%

      -             -             -             -             -             -             -             -       

1.50%

      -             619         -             -             -             -             -             -       

1.55%

      -             535         -             22         -             -             -             -       

1.60%

      -             2,461         -             -             -             -             -             -       

1.65%

      -             191         -             -             -             -             -             -       

1.70%

      -             -             -             -             -             -             -             -       

1.75%

      -             -             -             -             -             -             -             -       

1.80%

      -             -             -             -             -             -             -             -       

1.85%

      -             -             -             -             -             -             -             -       

1.90%

      -             -             -             -             -             -             -             -       

1.95%

      -             -             -             -             -             -             -             -       

2.00%

      -             -             -             -             -             -             -             -       

2.05%

      -             -             -             -             -             -             -             -       

2.10%

      -             -             -             -             -             -             -             -       

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      -             -             -             -             -             -             -             -       

2.25%

      -             -             -             -             -             -             -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 4,043       $ 40,212       $ 8,485       $ 1,350       $ 2,190       $ 1,640       $ 2,783       $ 3,766   
  

 

 

  
     SBLP      SBLQ      SBLV      SBLX      SBLY      TRHS2      VWHAS      VWEM  
  

 

 

  

0.95%

    $ 328       $ 274       $ 1,333       $ -           $ -           $ 140,953       $ 12,606       $ 91,468   

1.00%

      12         16         29         -             -             55,856         5,979         37,029   

1.05%

      -             -             -             -             -             4,760         1,101         9,331   

1.10%

      3,241         5,676         13,522         1,606         251         35,656         5,100         27,277   

1.15%

      473         4,000         9,702         1         2         20,252         1,820         12,601   

1.20%

      -             300         817         -             -             46,824         8,015         77,667   

1.25%

      1         19         310         -             100         10,171         1,697         5,863   

1.30%

      181         314         186         -             -             9,028         418         18,343   

1.35%

      -             -             -             -             -             22,706         1,011         14,398   

1.40%

      -             -             -             -             -             13,320         776         5,623   

1.45%

      -             -             -             -             -             466         290         1,477   

1.50%

      -             -             -             -             -             1,586         811         6,142   

1.55%

      -             -             -             -             -             6,560         16         3,037   

1.60%

      -             -             -             -             -             4,272         717         1,437   

1.65%

      -             -             -             -             -             2,716         267         2,130   

1.70%

      -             -             -             -             -             538         -             474   

1.75%

      -             -             -             -             -             3,985         90         1,862   

1.80%

      -             -             -             -             -             522         -             1,391   

1.85%

      -             -             -             -             -             300         49         992   

1.90%

      -             -             -             -             -             142         119         3   

1.95%

      -             -             -             -             -             2,199         -             2,864   

2.00%

      -             -             -             -             -             100         -             -       

2.05%

      -             -             -             -             -             1,755         112         351   

2.10%

      -             -             -             -             -             1,262         -             285   

2.15%

      -             -             -             -             -             -             -             -       

2.20%

      -             -             -             -             -             512         183         981   

2.25%

      -             -             -             -             -             -             -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             26         -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             270         -             -       
  

 

 

  
   $ 4,236       $ 10,599       $ 25,899       $ 1,607       $ 353       $ 386,737       $ 41,177       $ 323,026   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     VWHA      WRASP      WRBP      WRBDP      WRCEP      WRDIV      WRENG      WRGBP  
  

 

 

  

0.95%

    $ 93,549       $ 498,179       $ 160,591       $ 259,888       $ 362,187       $ 55,164       $ 16,917       $ 14,681   

1.00%

      42,543         43,810         3,662         13,217         13,173         2,042         657         386   

1.05%

      8,512         10,955         1,503         2,739         3,324         91         21         -       

1.10%

      24,896         591,360         171,033         314,197         440,461         60,240         27,104         9,261   

1.15%

      13,693         285,670         95,388         129,871         191,561         29,883         12,606         3,652   

1.20%

      59,493         122,871         6,389         8,515         13,855         1,677         1,472         698   

1.25%

      6,532         42,000         7,980         21,282         21,401         3,509         1,871         656   

1.30%

      12,262         19,395         1,703         3,895         3,130         356         17         23   

1.35%

      13,321         43,294         6,944         7,852         16,645         4,235         792         31   

1.40%

      14,979         110,940         31,991         53,057         49,118         5,799         1,575         835   

1.45%

      501         37,233         10,911         16,426         23,863         3,985         1,065         557   

1.50%

      2,203         17,854         1,999         16,120         14,381         858         95         2,451   

1.55%

      1,678         59,080         15,644         21,299         33,352         5,472         4,760         1,264   

1.60%

      2,851         39,559         10,819         27,009         25,460         5,963         1,350         -       

1.65%

      1,932         18,378         5,412         10,188         11,766         1,130         169         208   

1.70%

      37         2,411         520         1,672         621         324         27         332   

1.75%

      2,084         3,160         1,160         2,045         1,227         -             -             -       

1.80%

      2,928         4,601         1,577         2,524         3,740         645         1,050         -       

1.85%

      652         5,371         2,181         2,789         4,810         126         89         -       

1.90%

      10         33         25         212         128         -             -             -       

1.95%

      108         4,592         678         1,185         735         -             -             -       

2.00%

      -             2,774         766         3,977         2,178         235         -             -       

2.05%

      1,586         422         1         7         1         5         88         -       

2.10%

      53         92         47         61         81         -             331         -       

2.15%

      -             -             96         514         -             -             -             -       

2.20%

      207         747         -             -             -             -             -             -       

2.25%

      155         2,257         123         2,743         1,048         42         1         39   

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      174         -             -             -             -             -             -             -       
  

 

 

  
   $ 306,939       $ 1,967,038       $ 539,143       $ 923,284       $ 1,238,246       $ 181,781       $ 72,057       $ 35,074   
  

 

 

  
     WRGNR      WRGP      WRHIP      WRIP      WRI2P      WRLTBP      WRMIC      WRMCG  
  

 

 

  

0.95%

    $ 44,363       $ 358,615       $ 286,283       $ 96,345       $ 39,874       $ 11,228       $ 14,239       $ 47,074   

1.00%

      623         11,532         19,714         2,050         386         608         99         1,313   

1.05%

      227         1,432         2,228         1,400         57         -             182         458   

1.10%

      60,754         400,914         340,578         117,150         44,143         26,875         18,633         62,046   

1.15%

      20,658         184,633         135,635         45,261         22,310         6,005         7,696         25,801   

1.20%

      3,070         15,650         18,870         5,330         2,079         17         1,641         5,509   

1.25%

      3,585         18,684         19,982         4,303         2,127         337         952         3,863   

1.30%

      288         4,196         1,608         65         58         242         208         756   

1.35%

      1,861         18,113         9,648         3,103         1,639         1,054         1,304         2,019   

1.40%

      10,221         54,628         40,768         14,831         4,622         4,854         1,715         8,192   

1.45%

      2,854         28,786         13,696         4,919         760         1,285         231         3,039   

1.50%

      2,331         15,271         10,828         3,928         3,104         42         89         2,948   

1.55%

      8,892         32,012         29,905         10,943         6,002         4,660         639         5,292   

1.60%

      3,712         26,737         25,065         5,119         1,551         993         663         3,655   

1.65%

      804         18,123         3,318         1,744         769         -             16         1,963   

1.70%

      431         1,651         1,655         613         231         -             37         722   

1.75%

      -             1,623         76         -             21         -             -             26   

1.80%

      1,073         3,326         2,012         726         499         -             -             604   

1.85%

      923         4,059         3,018         1,394         116         -             430         807   

1.90%

      5         133         9         19         -             -             -             4   

1.95%

      99         618         6,099         666         72         377         36         50   

2.00%

      237         1,075         2,224         1,284         91         300         -             414   

2.05%

      1         -             9         1         1         -             -             1   

2.10%

      45         44         569         -             -             -             -             -       

2.15%

      -             127         -             -             -             -             -             -       

2.20%

      -             -             27         -             -             -             -             -       

2.25%

      938         1,803         636         4,152         22         -             -             851   

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 167,995       $ 1,203,785       $ 974,460       $ 325,346       $ 130,534       $ 58,877       $ 48,810       $ 177,407   
  

 

 

  

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

     WRMMP      WRRESP      WRSTP      WRSCP      WRSCV      WRVP      SVOF      WFVSCG  
  

 

 

  

0.95%

    $ 65,701       $ 23,116       $ 236,490       $ 170,357       $ 17,537       $ 126,116       $ -           $ 16,892   

1.00%

      2,751         1,085         3,987         2,761         1,431         761         -             10,268   

1.05%

      2,249         32         1,182         847         41         889         -             2,687   

1.10%

      50,168         34,977         302,901         194,938         30,877         181,579         -             5,015   

1.15%

      30,325         10,734         111,162         83,235         10,994         96,567         -             7,017   

1.20%

      1,192         1,856         13,134         9,125         1,038         5,782         337         22,376   

1.25%

      2,952         1,357         9,101         9,968         1,820         7,428         -             3,179   

1.30%

      1,219         241         2,201         613         206         362         -             2,008   

1.35%

      2,998         3,779         15,563         10,199         2,411         7,395         -             4,075   

1.40%

      5,174         2,040         39,713         25,072         3,874         28,746         -             1,926   

1.45%

      2,273         133         7,956         4,253         1,112         13,872         -             105   

1.50%

      1,034         170         5,415         4,928         308         10,152         -             297   

1.55%

      4,237         4,139         27,439         16,340         2,309         11,547         -             747   

1.60%

      5,370         1,313         16,390         7,898         1,558         17,294         514         495   

1.65%

      856         692         3,778         3,224         524         7,980         -             9,293   

1.70%

      133         -             200         396         156         1,054         -             297   

1.75%

      -             -             536         91         -             543         2,903         2   

1.80%

      5,590         214         3,706         3,103         46         1,920         -             497   

1.85%

      -             112         3,895         3,656         234         2,600         -             83   

1.90%

      43         -             -             10         -             47         -             111   

1.95%

      191         60         372         383         -             769         -             74   

2.00%

      221         -             1,197         533         -             1,089         -             -       

2.05%

      -             -             3         1         1         2         -             1,301   

2.10%

      -             -             89         45         -             64         -             -       

2.15%

      -             -             82         -             -             95         -             -       

2.20%

      -             -             -             -             -             -             -             -       

2.25%

      1,783         200         127         1,018         32         1,026         -             -       

2.35%

      -             -             -             -             -             -             -             -       

2.40%

      -             -             -             -             -             -             -             -       

2.45%

      -             -             -             -             -             -             -             -       

2.50%

      -             -             -             -             -             -             -             -       

2.60%

      -             -             -             -             -             -             -             -       
  

 

 

  
   $ 186,460       $ 86,250       $ 806,619       $ 552,994       $ 76,509       $ 525,679       $ 3,754       $ 88,745   
  

 

 

  
     BBCMAG         
  

 

 

     

0.95%

    $ 318      

1.00%

      -          

1.05%

      -          

1.10%

      238      

1.15%

      276      

1.20%

      -          

1.25%

      121      

1.30%

      7      

1.35%

      17      

1.40%

      72      

1.45%

      21      

1.50%

      -          

1.55%

      -          

1.60%

      492      

1.65%

      -          

1.70%

      216      

1.75%

      -          

1.80%

      -          

1.85%

      -          

1.90%

      -          

1.95%

      -          

2.00%

      -          

2.05%

      -          

2.10%

      -          

2.15%

      -          

2.20%

      -          

2.25%

      -          

2.35%

      -          

2.40%

      -          

2.45%

      -          

2.50%

      -          

2.60%

      -          
  

 

 

     
   $ 1,778      
  

 

 

     

(3) Related Party Transactions

The Company performs various services on behalf of the mutual fund companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2013 and 2012, total transfers to the Account from the fixed account were $29,240,877 and $35,115,035, respectively, and total transfers from the Account to the fixed account were $100,476,292 and $121,806,985, respectively. Transfers from the Account to the fixed account, and transfers to the Account from the fixed account are included in transfers between subaccounts (including fixed account), net, on the accompanying Statements of Changes in Contract Owners’ Equity.

 

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

For guaranteed minimum death benefits, the Company contributed $5,243,303 and $9,562,075 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2013 and 2012, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

(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 Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Account categorizes financial assets recorded at fair value as follows:

• Level 1 – Unadjusted quoted prices accessible in active markets and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

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

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

The Account recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Level 1 and 2 as of December 31, 2013.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2013:

 

     Level 1    Level 2    Level 3    Total

Separate Account Investments

    $6,214,271,364    $0    $0    $6,214,271,364

The cost of purchases and proceeds from sales of Investments for the year ended December 31, 2013 are as follows:

 

     Purchases of
Investments		      Sales of
Investments		  

VPS Dynamic Asset Allocation Portfolio - Class B (ALVDAB)

    $ 399,231       $ 41,244   

Variable Insurance Funds - Equity Income VIF (BBGI)

      13,969         391,251   

Global Allocation V.I. Fund - Class III (MLVGA3)

      9,422,867         5,041,384   

VIP Small Cap Value Series: Service Class (DWVSVS)

      465,943         22,662   

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

        13,268,895         49,409,116   

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

      1,183,283         5,983,852   

Socially Responsible Growth Fund Inc - Service Shares (DSRGS)

      1,216         10,537   

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

      332,708         144,095   

VA International Equity Fund (HVIE)

      146,967         135,954   

VA Situs Fund (HVSIT)

      1,507,261         1,206,616   

V.I. Mid Cap Core Equity - Series II Shares (IVMCC2)

      344,699         42,166   

Van Kampen V.I. Mid Cap Growth Fund - Series II Shares (IVKMG2)

      431,314         648,202   

Mid Cap Value Portfolio: Class 1 (JPMMV1)

      4,491,501         4,319,097   

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

      6,155         9,757   

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

      1,751,635         20,056,128   

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

      1,033,607         6,243,251   

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

      5,000,794         20,097,584   

Investors Growth Stock Series - Service Class (MIGSC)

      16,285         25,217   

Mid Cap Growth Series - Service Class (MMCGSC)

      23,804         266,754   

New Discovery Series - Service Class (MNDSC)

      4,052,788         2,479,555   

Value Series - Service Class (MVFSC)

      4,931,723         7,629,625   

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

      5,872,471         1,947,698   

Core Plus Fixed Income Portfolio - Class I (MSVFI)

      4,691,317         5,137,267   

Core Plus Fixed Income Portfolio - Class II (MSVF2)

      51,526         61,423   

Emerging Markets Debt Portfolio - Class I (MSEM)

      633,374         1,987,484   

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

      2,117         13,991   

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

      48,183         166,286   

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

      6,270,801         24,574,708   

American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)

      138,962         531,564   

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

      11,728,346         4,810,194   

American Funds NVIT Bond Fund - Class II (GVABD2)

      895,892         6,173,416   

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

      3,356,962         4,645,279   

American Funds NVIT Growth Fund - Class II (GVAGR2)

      2,576,724         5,720,188   

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

      3,843,316         1,730,115   

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

      1,714,128         5,418,697   

Federated NVIT High Income Bond Fund - Class III (HIBF3)

      9,006,327         11,940,802   

NVIT Emerging Markets Fund - Class I (GEM)

      191,006         367,346   

NVIT Emerging Markets Fund - Class III (GEM3)

      2,103,616         6,101,240   

NVIT Emerging Markets Fund - Class VI (GEM6)

      49,368         175,550   

NVIT International Equity Fund - Class I (GIG)

      47,359         1,230,871   

NVIT International Equity Fund - Class III (GIG3)

      1,053,734         3,811,320   

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

      1,360         52,196   

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

      6,050,647         14,832,246   

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

      3,327,036         3,570,612   

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

      866,749         416,959   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

    $ 2,190,768       $ 1,646,382   

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

      999,102         1,096,156   

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

      2,140,037         2,704,541   

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

      4,374,708         3,512,846   

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

      1,546,021         1,766,787   

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

      1,079,753         1,621,371   

NVIT Core Bond Fund - Class I (NVCBD1)

      2,651,958         5,712,252   

NVIT Core Bond Fund - Class II (NVCBD2)

      67,121         246,478   

NVIT Core Plus Bond Fund - Class II (NVLCP2)

      1,436,442         2,307,918   

NVIT Nationwide Fund - Class I (TRF)

      2,343,184         15,269,512   

NVIT Nationwide Fund - Class II (TRF2)

      7,137         65,782   

NVIT Government Bond Fund - Class I (GBF)

      15,939,474         46,700,322   

NVIT Government Bond Fund - Class II (GBF2)

      427,324         1,224,538   

American Century NVIT Growth Fund - Class I (CAF)

      824,168         4,677,929   

NVIT International Index Fund - Class VIII (GVIX8)

      1,042,020         733,129   

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

      6,414,217         10,447,137   

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

      1,373,272         664,860   

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

      870,326         445,531   

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

      3,987,698         13,563,964   

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

      8,245,160         34,377,041   

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

      4,029,161         15,899,043   

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

      4,265,228         13,164,808   

NVIT Mid Cap Index Fund - Class I (MCIF)

      6,720,697         17,600,293   

NVIT Money Market Fund - Class I (SAM)

        92,522,970           120,126,351   

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

      136,170         37,285   

NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)

      827,442         7,905,918   

NVIT Multi-Manager International Value Fund - Class II (GVDIV2)

      9         2,167   

NVIT Multi-Manager International Value Fund - Class III (GVDIV3)

      541,440         1,901,206   

NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)

      12,328         92,024   

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

      6,911,518         6,548,193   

NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)

      36,538         157,067   

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

      4,834,350         4,918,415   

NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)

      256,335         534,248   

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

      8,982,025         16,311,880   

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

      1,058,296         955,748   

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

      7,424,816         12,432,390   

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

      7,762,015         8,633,625   

NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)

      29,324         104,702   

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

      4,734,415         18,906,654   

NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)

      93,170         250,870   

NVIT Multi-Manager Small Company Fund - Class I (SCF)

      1,523,033         17,235,546   

NVIT Multi-Manager Small Company Fund - Class II (SCF2)

      73,560         483,055   

NVIT Multi-Sector Bond Fund - Class I (MSBF)

      4,372,263         14,106,853   

NVIT Short Term Bond Fund - Class II (NVSTB2)

      4,729,271         4,735,697   

NVIT Large Cap Growth Fund - Class I (NVOLG1)

      4,234,966         70,463,657   

NVIT Large Cap Growth Fund - Class II (NVOLG2)

      94,749         1,697,516   

Templeton NVIT International Value Fund - Class III (NVTIV3)

      711,058         2,159,290   

Invesco NVIT Comstock Value Fund - Class I (EIF)

      6,808,398         5,756,300   

NVIT Real Estate Fund - Class I (NVRE1)

      10,611,214         16,903,222   

NVIT Cardinal(SM) Managed Growth Fund - Class II (NCPG2)

      186,584         26   

NVIT Cardinal(SM) Managed Growth & Income Fund: Class II (NCPGI2)

      217,160         1,094   

NVIT Investor Destinations Managed Growth Fund: Class II (IDPG2)

      122,692         471   

NVIT Investor Destinations Managed Growth & Income Fund: Class II (IDPGI2)

      52,127         20,864   

NVIT Small Cap Index Fund Class II (NVSIX2)

      1,248,899         420,632   

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

      2,732,969         1,019,187   

VPS Growth and Income Portfolio - Class B (ALVGIB)

      32,317         453,717   

VPS Large Cap Growth Portfolio: Class B (ALVPGB)

      26,407         246,688   

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)

      5,080,086         6,070,546   

VP Income & Growth Fund - Class I (ACVIG)

      2,596,364         10,246,795   

VP Income & Growth Fund - Class II (ACVIG2)

      35,520         174,760   

American Century VP Inflation Protection Fund - Class II (ACVIP2)

      6,607,800         25,050,011   

VP International Fund - Class I (ACVI)

      192,629         145,722   

VP International Fund - Class III (ACVI3)

      2,209         37,429   

VP Mid Cap Value Fund - Class I (ACVMV1)

      3,313,478         2,530,087   

VP Mid Cap Value Fund - Class II (ACVMV2)

      20,769         102,986   

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

      83         282   

VP Value Fund - Class I (ACVV)

      203,859         582,056   

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

      3,451,532         5,549,842   

Appreciation Portfolio - Initial Shares (DCAP)

      3,770,022         13,871,983   

Appreciation Portfolio - Service Shares (DCAPS)

      39,723         285,005   

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

      1,918         10,663   

International Value Portfolio - Initial Shares (DVIV)

      1,291         61,031   

Managed Tail Risk Fund II: Service Shares (FCA2S)

      11,195         106,723   

High Income Bond Fund II - Service Shares (FHIBS)

      191,431         413,886   

Quality Bond Fund II - Primary Shares (FQB)

      5,341,007         17,585,097   

Quality Bond Fund II - Service Shares (FQBS)

      249,775         529,351   

VIP Value Strategies Portfolio - Service Class 2 (FVSS2)

      23,145         175,464   

VIP Contrafund(R) Portfolio - Service Class (FCS)

      259,241         1,425,028   

VIP Energy Portfolio - Service Class 2 (FNRS2)

      1,613,308         4,607,570   

VIP Equity-Income Portfolio - Service Class (FEIS)

      21,169,280         36,922,000   

VIP Equity-Income Portfolio - Service Class 2 (FEI2)

      646,388         1,054,617   

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

      2,276,231         2,740,110   

VIP Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)

      8,032         13,848   

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

      3,356,865         2,413,128   

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)

      5,070         14,272   

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

      2,433,437         2,072,729   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)

    $ 11,635       $ 37,703   

VIP Growth Opportunities Portfolio - Service Class (FGOS)

      70,865         217,914   

VIP Growth Portfolio - Service Class (FGS)

      1,933,311         23,712,700   

VIP Growth Portfolio - Service Class 2 (FG2)

      115,413         356,101   

VIP High Income Portfolio - Service Class (FHIS)

      2,431,484         7,915,498   

VIP High Income Portfolio - Service Class R (FHISR)

      33,195,582         44,382,452   

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

      3,886,406         16,727,115   

VIP Mid Cap Portfolio - Service Class (FMCS)

      6,406,336         9,996,992   

VIP Mid Cap Portfolio - Service Class 2 (FMC2)

      922,948         1,357,502   

VIP Overseas Portfolio - Service Class (FOS)

      361,480         2,542,439   

VIP Overseas Portfolio - Service Class 2 R (FO2R)

      67,365         625,092   

VIP Overseas Portfolio - Service Class R (FOSR)

      2,315,124         5,211,495   

VIP Value Strategies Portfolio - Service Class (FVSS)

      1,566,034         3,612,295   

Franklin Income Securities Fund - Class 2 (FTVIS2)

      12,520,566         9,861,880   

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

      105,245         162,630   

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

      3,442,596         4,653,436   

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

      1,407,847         5,543,821   

Templeton Foreign Securities Fund - Class 2 (TIF2)

      1,243         3,176   

Templeton Foreign Securities Fund - Class 3 (TIF3)

      2,105,801         3,124,718   

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

      5,106,421         10,497,290   

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

      3,777,398         818,392   

Short Duration Bond Portfolio - I Class Shares (AMTB)

        15,803,553         9,555,851   

Guardian Portfolio - I Class Shares (AMGP)

      12,316         7,951   

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

      240         30,970   

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

      2,612         25,310   

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

      626,149         444,154   

Socially Responsive Portfolio - I Class Shares (AMSRS)

      2,190,994         1,544,434   

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

      96,005         331,322   

Global Securities Fund/VA - Class 3 (OVGS3)

      3,567,991         10,545,846   

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

      1,046,433         8,395,074   

Global Securities Fund/VA - Service Class (OVGSS)

      17,290         254,215   

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

      9,990,901         24,518,217   

Main Street Fund(R)/VA - Service Class (OVGIS)

      26,795         472,448   

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

      10,490,674         15,620,268   

Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)

      4,869         52,446   

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

      11,547,808           20,011,399   

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

      5,161,672         1,495,636   

Global Strategic Income Fund/VA: Service Shares (OVSBS)

      339,037         599,384   

All Asset Portfolio - Advisor Class (PMVAAD)

      4,527,103         2,413,387   

Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)

      1,131,599         3,011,031   

Low Duration Portfolio - Advisor Class (PMVLAD)

      12,740,712         15,330,700   

Real Return Portfolio - Administrative Class (PMVRRA)

      174,717         337,135   

Total Return Portfolio - Administrative Class (PMVTRA)

      442,626         1,621,568   

Total Return Portfolio - Advisor Class (PMVTRD)

      7,170,858         5,547,481   

Putnam VT Growth and Income Fund - Class IB (PVGIB)

      392         1,380   

VI American Franchise Fund - Series II Shares (ACEG2)

      1,308,130         789,647   

VI Comstock Fund - Series II Shares (ACC2)

      232,995         1,326,610   

VI American Franchise Fund - Series I Shares (ACEG)

      1,802         4,949   

Van Kampen V.I. Value Opportunities Fund: Series II Shares (AVBV2)

      2         24,635   

VI Core Equity Fund - Series I Shares (AVGI)

      867         21,058   

VI Core Equity Fund - Series II Shares (AVCE2)

      21,606         136,864   

VI Equity and Income Fund - Series I Shares (IVKEI1)

      180,530         165,068   

VI Global Health Care Fund - Series I Shares (IVHS)

      108,926         53,094   

VI Global Real Estate Fund - Series I Shares (IVRE)

      103,658         207,603   

Diversified Stock Fund Class A Shares (VYDS)

      23,070         412,938   

Micro-Cap Portfolio - Investment Class (ROCMC)

      46,392         256,985   

Variable Fund - Multi-Hedge Strategies (RVARS)

      391,879         160,297   

SBL Fund - Series D (World Equity Income Series) (SBLD)

      22,835         2,782   

SBL Fund - Series J (StylePlus Mid Growth Series) (SBLJ)

      18,060         26,393   

Series N (Managed Asset Allocation Series) (SBLN)

      92,059         30,126   

Series O (All Cap Value Series) (SBLO)

      43,632         63,148   

Series P (High Yield Series (SBLP)

      72,004         284,548   

Series Q (Small Cap Value Series) (SBLQ)

      145,959         344,284   

Series V (Mid Cap Value Series) (SBLV)

      139,786         708,513   

SBL Fund - Series X (StylePlus Small Growth Series) (SBLX)

      88,710         3,190   

SBL Fund - Series Y (StylePlus Large Growth Series) (SBLY)

      4,574         3,486   

Health Sciences Portfolio - II (TRHS2)

      22,344,447         12,285,396   

VIP Trust - Global Hard Assets Fund- Service Class (VWHAS)

      2,543,406         2,034,383   

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

      2,598,563         10,107,288   

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

      936,451         9,473,833   

Variable Insurance Portfolios - Asset Strategy (WRASP)

      4,633,844         30,282,229   

Variable Insurance Portfolios - Balanced (WRBP)

      7,347,640         7,312,905   

Variable Insurance Portfolios - Bond (WRBDP)

      5,751,679         22,532,247   

Variable Insurance Portfolios - Core Equity (WRCEP)

      10,980,865         18,987,645   

Variable Insurance Portfolios - Dividend Opportunities (WRDIV)

      1,680,610         3,852,797   

Variable Insurance Portfolios - Energy (WRENG)

      984,495         2,382,908   

Variable Insurance Portfolios - Global Bond (WRGBP)

      1,875,940         762,140   

Variable Insurance Portfolios - Global Natural Resources (WRGNR)

      177,816         5,706,721   

Variable Insurance Portfolios - Growth (WRGP)

      9,005,915         21,994,907   

Variable Insurance Portfolios - High Income (WRHIP)

      20,109,719         16,397,984   

Variable Insurance Portfolios - International Growth (WRIP)

      1,444,976         7,143,287   

Variable Insurance Portfolios - International Core Equity (WRI2P)

      921,439         3,150,508   

Variable Insurance Portfolios - Limited-Term Bond (WRLTBP)

      3,812,796         3,651,512   

Variable Insurance Portfolios - Micro Cap Growth (WRMIC)

      873,765         1,189,691   

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

      3,858,904         4,870,792   

Variable Insurance Portfolios - Money Market (WRMMP)

      12,564,490         15,418,578   

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

    $ 940,725       $ 2,164,664   

Variable Insurance Portfolios - Science and Technology (WRSTP)

      5,930,552         15,170,011   

Variable Insurance Portfolios - Small Cap Growth (WRSCP)

      496,167         11,363,268   

Variable Insurance Portfolios - Small Cap Value (WRSCV)

      1,426,876         1,771,084   

Variable Insurance Portfolios - Value (WRVP)

      2,380,950         9,316,993   

Advantage VT Opportunity Fund - Class 2 (SVOF)

      1,962         39,763   

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

      6,685,205         5,007,752   

Sterling Capital Strategic Allocation Equity VIF (BBCMAG)

      2,629         454,210   
  

 

 

  

Total      

    $   727,390,206       $   1,418,765,660   
  

 

 

  

(5) Financial Highlights

The Company offers several variable annuity products through the Account that have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit fair values and total returns. 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, 2013, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2013. The information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate for contracts with units outstanding as of the balance sheet date. The unit fair values and total returns related to these identified contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented. 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 owner’s equity presented below may not agree to the contract owner’s equity presented in the Statements of Changes due to reserves for annuity contracts in payout.

 

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VPS Dynamic Asset Allocation Portfolio - Class B (ALVDAB)

2013

     0.95% to 1.35%        35,956      $  11.28 to $ 11.21      $ 403,981        0.42%        10.87% to 10.42%     

2012

     0.95% to 1.25%        2,307        10.18 to 10.16        23,439        0.10%        1.78% to 1.58%      ****

Variable Insurance Funds - Equity Income VIF (BBGI)

2013

     0.95% to 1.55%        37,098        13.33 to 12.39        483,022        1.12%        16.63% to 15.92%     

2012

     0.95% to 1.55%        67,944        11.43 to 10.69        759,483        0.99%        13.19% to 12.51%     

2011

     0.95% to 1.55%        78,794        10.10 to 9.50        779,932        1.01%        -4.94% to -5.52%     

2010

     0.95% to 1.65%        123,387        10.63 to 9.96        1,280,950        1.19%        10.87% to 10.08%     

2009

     0.95% to 1.75%        181,163        9.58 to 8.96        1,698,220        1.01%        17.37% to 16.24%     

Global Allocation V.I. Fund - Class III (MLVGA3)

2013

     0.95% to 2.20%        2,928,689        15.50 to 14.61        44,950,725        1.11%        13.33% to 11.90%     

2012

     0.95% to 2.20%        2,743,720        13.68 to 13.05        37,242,186        1.47%        8.92% to 7.54%     

2011

     0.95% to 2.20%        2,904,957        12.56 to 12.14        36,272,862        2.51%        -4.55% to -5.76%     

2010

     0.95% to 2.20%        2,250,841        13.16 to 12.88        29,496,902        1.53%        8.72% to 7.35%     

2009

     0.95% to 2.30%        1,329,525        12.10 to 12.00        16,061,460        2.54%        21.01% to 19.95%      ****

VIP Small Cap Value Series: Service Class (DWVSVS)

2013

     0.95% to 1.75%        40,006        12.26 to 12.20        489,913        0.00%        22.64% to 21.97%      ****

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

2013

     0.95% to 2.25%        15,756,466        21.79 to 11.78        325,787,636        1.83%        30.77% to 29.06%     

2012

     0.95% to 2.25%        18,017,028        16.66 to 9.13        285,760,237        2.02%        14.64% to 13.13%     

2011

     0.95% to 2.25%        21,028,413        14.54 to 8.07        291,539,265        1.79%        0.91% to -0.41%     

2010

     0.95% to 2.25%        25,036,633        14.40 to 8.10        344,641,183        1.80%        13.75% to 12.26%     

2009

     0.95% to 2.40%        29,044,402        12.66 to 8.10        351,401,392        2.06%        25.13% to 23.13%     

Socially Responsible Growth Fund Inc - Initial Shares (DSRG)

2013

     0.95% to 2.05%        2,492,466        17.94 to 10.82        43,320,669        1.27%        33.07% to 31.59%     

2012

     0.95% to 2.05%        2,809,210        13.48 to 8.22        36,750,060        0.84%        10.91% to 9.67%     

2011

     0.95% to 2.05%        3,319,842        12.16 to 7.50        39,202,256        0.90%        -0.06% to -1.16%     

2010

     0.95% to 2.25%        3,796,404        12.16 to 6.35        44,919,292        0.90%        13.73% to 12.23%     

2009

     0.95% to 2.25%        4,390,417        10.70 to 5.65        45,732,384        0.98%        32.48% to 30.75%     

Socially Responsible Growth Fund Inc - Service Shares (DSRGS)

2013

     1.50% to 2.60%        5,273        15.48 to 13.58        79,374        1.08%        31.99% to 30.51%     

2012

     1.50% to 2.60%        5,926        11.73 to 10.41        67,889        0.54%        10.02% to 8.79%     

2011

     1.50% to 2.60%        7,281        10.66 to 9.57        75,087        0.69%        -0.86% to -1.96%     

2010

     1.50% to 2.60%        8,596        10.76 to 9.76        90,116        0.71%        12.83% to 11.57%     

2009

     1.50% to 2.60%        12,253        9.53 to 8.75        114,013        0.65%        31.44% to 29.97%     

Goldman Sachs Global Markets Navigator Fund - Service Shares (GVGMNS)

2013

     0.95% to 1.35%        16,917        11.53 to 11.45        194,340        0.06%        12.49% to 12.03%     

2012

     0.95% to 1.35%        212        10.25 to 10.22        2,167        0.00%        2.47% to 2.19%      ****

VA International Equity Fund (HVIE)

2013

     0.95% to 1.20%        10,484        12.43 to 12.33        129,902        1.35%        21.74% to 21.43%     

2012

     0.95% to 1.20%        9,241        10.21 to 10.16        94,163        1.52%        12.95% to 12.66%     

2011

     0.95% to 1.20%        7,372        9.04 to 9.01        66,604        1.12%        -12.39% to -12.61%     

2010

     0.95% to 1.20%        477        10.32 to 10.32        4,922        0.00%        3.20% to 3.15%      ****

VA Situs Fund (HVSIT)

2013

     0.95% to 1.75%        71,516        17.60 to 17.15        1,253,758        0.30%        30.67% to 29.61%     

2012

     0.95% to 1.60%        49,252        13.47 to 13.28        660,955        0.00%        21.46% to 20.66%     

2011

     0.95% to 1.60%        35,238        11.09 to 11.00        390,053        0.02%        -1.85% to -2.49%     

2010

     0.95% to 1.20%        1,356        11.30 to 11.29        15,316        0.00%        12.96% to 12.91%      ****

V.I. Mid Cap Core Equity - Series II Shares (IVMCC2)

2013

     0.95% to 1.75%        27,191        12.70 to 12.53        344,396        0.69%        27.24% to 26.22%     

2012

     0.95% to 1.20%        1,240        9.98 to 9.97        12,360        0.00%        -0.18% to -0.35%      ****

Van Kampen V.I. Mid Cap Growth Fund - Series II Shares (IVKMG2)

2013

     0.95% to 2.20%        98,422        13.21 to 12.93        1,293,616        0.24%        35.31% to 33.60%     

2012

     0.95% to 2.20%        116,100        9.76 to 9.68        1,131,369        0.00%        -2.36% to -3.20%      ****

Mid Cap Value Portfolio: Class 1 (JPMMV1)

2013

     0.95% to 2.20%        870,361        23.27 to 20.58        19,889,406        1.04%        31.04% to 29.39%     

2012

     0.95% to 2.20%        865,697        17.76 to 15.91        15,095,036        1.01%        19.23% to 17.72%     

2011

     0.95% to 2.20%        724,335        14.89 to 13.51        10,633,454        1.29%        1.19% to -0.08%     

2010

     0.95% to 2.20%        817,428        14.72 to 13.53        11,891,483        1.22%        22.28% to 20.74%     

2009

     0.95% to 2.30%        921,638        12.04 to 11.13        10,981,625        0.00%        25.49% to 23.63%     

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

2013

     1.25%        4,117        20.26        83,415        2.06%        18.31%     

2012

     1.25%        4,547        17.13        77,878        2.53%        11.95%     

2011

     1.25%        4,875        15.23        74,580        2.33%        0.09%     

2010

     1.25%        7,409        15.28        113,236        2.54%        6.80%     

2009

     1.25%        7,927        14.31        113,433        2.77%        24.00%     

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

2013

     0.95% to 2.25%        6,674,039        14.73 to 12.26        96,052,947        0.59%        29.64% to 27.94%     

2012

     0.95% to 2.25%        8,117,046        16.58 to 9.58        90,254,217        0.56%        22.68% to 21.07%     

2011

     0.95% to 2.25%        9,423,318        9.26 to 7.91        85,603,175        0.24%        -7.86% to -9.03%     

2010

     0.95% to 2.25%        12,264,933        10.05 to 8.70        121,067,434        0.22%        5.47% to 4.08%     

2009

     0.95% to 2.40%        14,689,565        9.53 to 12.59        138,297,870        0.01%        44.63% to 42.30%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

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

2013

     0.95% to 2.20%        4,420,916      $  7.41 to $ 6.21      $ 32,082,981        0.00%        34.10% to 32.41%     

2012

     0.95% to 2.20%        5,219,721        5.53 to 4.69        28,306,341        0.00%        18.01% to 16.52%     

2011

     0.95% to 2.20%        3,262,667        4.68 to 4.03        15,067,549        0.00%        -9.62% to -10.66%     

2010

     0.95% to 2.20%        3,870,859        5.18 to 4.51        19,788,975        0.00%        23.22% to 21.66%     

2009

     0.95% to 2.20%        4,618,124        4.20 to 3.70        19,180,095        0.00%        55.41% to 53.45%     

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

2013

     0.95% to 2.20%        5,797,336        15.24 to 12.77        86,421,163        3.05%        13.20% to 11.77%     

2012

     0.95% to 2.20%        7,024,388        13.46 to 11.42        92,636,043        0.75%        12.10% to 10.68%     

2011

     0.95% to 2.20%        3,758,384        12.01 to 10.32        44,427,214        0.37%        -32.98% to -33.83%     

2010

     0.95% to 2.20%        4,560,947        17.92 to 15.60        80,556,813        0.54%        23.83% to 22.27%     

2009

     0.95% to 2.20%        5,558,077        14.47 to 12.76        79,406,176        0.42%        77.37% to 75.13%     

Investors Growth Stock Series - Service Class (MIGSC)

2013

     1.25% to 2.25%        10,895        18.15 to 16.32        197,500        0.42%        28.43% to 27.13%     

2012

     1.25% to 2.25%        12,260        14.13 to 12.84        173,051        0.23%        15.22% to 14.05%     

2011

     1.25% to 2.25%        13,950        12.27 to 11.26        170,920        0.26%        -1.88% to -0.88%     

2010

     1.25% to 2.25%        15,259        12.37 to 11.47        188,641        0.30%        10.79% to 9.58%     

2009

     1.25% to 2.25%        17,463        11.17 to 10.47        194,959        0.44%        37.36% to 35.97%     

Mid Cap Growth Series - Service Class (MMCGSC)

2013

     1.50% to 2.60%        91,207        14.33 to 12.57        1,255,615        0.00%        35.16% to 33.65%     

2012

     1.50% to 2.60%        110,539        10.60 to 9.40        1,128,495        0.00%        14.67% to 13.39%     

2011

     1.50% to 2.60%        135,789        9.24 to 8.29        1,214,048        0.00%        -7.57% to -8.60%     

2010

     1.50% to 2.60%        175,231        10.00 to 9.07        1,703,470        0.00%        27.27% to 25.85%     

2009

     1.50% to 2.60%        210,034        7.86 to 7.21        1,610,125        0.00%        39.13% to 37.58%     

New Discovery Series - Service Class (MNDSC)

2013

     0.95% to 2.45%        254,247        14.34 to 19.87        3,970,427        0.00%        39.88% to 37.76%     

2012

     0.95% to 2.20%        102,754        10.25 to 14.82        1,380,983        0.00%        2.52% to 18.23%      ****

2011

     1.50% to 2.60%        58,141        13.43 to 12.05        750,462        0.00%        -11.83% to -12.82%     

2010

     1.50% to 2.60%        84,336        15.23 to 13.82        1,241,335        0.00%        33.90% to 32.41%     

2009

     1.50% to 2.60%        106,493        11.38 to 10.44        1,173,015        0.00%        60.48% to 58.69%     

Value Series - Service Class (MVFSC)

2013

     0.95% to 2.60%        2,507,162        15.99 to 17.49        40,457,138        1.00%        34.31% to 32.07%     

2012

     0.95% to 2.60%        2,700,096        11.90 to 13.25        32,507,119        1.44%        14.78% to 12.86%     

2011

     0.95% to 2.60%        2,989,414        10.37 to 11.74        31,521,123        1.26%        -1.41% to -3.05%     

2010

     0.95% to 2.60%        3,299,060        10.52 to 12.11        35,605,645        1.35%        10.16% to 8.33%     

2009

     0.95% to 2.60%        3,696,423        9.55 to 11.18        36,396,990        1.16%        21.29% to 19.27%     

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

2013

     0.95% to 2.60%        907,244        15.22 to 14.31        13,708,791        1.42%        26.42% to 24.32%     

2012

     0.95% to 2.60%        627,398        12.04 to 11.51        7,513,001        1.42%        14.83% to 12.91%     

2011

     0.95% to 2.60%        491,546        10.48 to 10.19        5,136,625        0.94%        -2.71% to -4.33%     

2010

     0.95% to 2.00%        94,481        10.77 to 10.70        1,017,244        0.00%        7.75% to 6.99%      ****

Core Plus Fixed Income Portfolio - Class I (MSVFI)

2013

     0.95% to 1.85%        163,990        12.51 to 11.67        2,009,490        3.80%        -1.26% to -2.16%     

2012

     0.95% to 1.95%        207,420        12.67 to 11.84        2,585,027        4.70%        8.40% to 7.30%     

2011

     0.95% to 1.95%        274,506        11.69 to 11.04        3,167,075        3.46%        4.65% to 3.59%     

2010

     0.95% to 1.85%        332,360        11.17 to 10.71        3,677,059        6.41%        6.13% to 5.16%     

2009

     0.95% to 1.85%        397,097        10.53 to 10.18        4,149,190        9.45%        8.60% to 7.62%     

Core Plus Fixed Income Portfolio - Class II (MSVF2)

2013

     1.50% to 2.60%        58,862        12.27 to 10.89        693,444        3.46%        -2.07% to -3.17%     

2012

     1.50% to 2.60%        59,721        12.53 to 11.24        721,725        4.41%        7.55% to 6.35%     

2011

     1.50% to 2.60%        62,432        11.65 to 10.57        704,601        3.47%        3.83% to 2.67%     

2010

     1.50% to 2.60%        66,721        11.22 to 10.30        728,272        3.93%        5.26% to 4.08%     

2009

     1.50% to 2.60%        63,439        10.66 to 9.89        659,139        6.43%        7.74% to 6.54%     

Emerging Markets Debt Portfolio - Class I (MSEM)

2013

     0.95% to 2.15%        213,062        28.99 to 28.83        7,231,044        4.01%        -9.62% to -10.71%     

2012

     0.95% to 2.15%        259,118        32.08 to 32.29        9,825,853        2.85%        16.84% to 15.42%     

2011

     0.95% to 2.15%        306,681        27.45 to 27.97        9,974,415        3.54%        6.02% to 4.74%     

2010

     0.95% to 2.15%        377,508        25.90 to 26.71        11,612,180        4.15%        8.70% to 7.39%     

2009

     0.95% to 2.20%        466,768        23.82 to 29.48        13,214,085        7.81%        28.97% to 27.35%     

Universal Institutional Funds, Inc. - Mid Cap Growth Portfolio- Class I (MSVMG)

2013

     1.60% to 1.75%        3,737        14.20 to 13.91        52,021        0.37%        35.29% to 35.08%     

2012

     1.60% to 1.75%        4,783        10.50 to 10.30        49,287        0.00%        6.95% to 6.78%     

2011

     1.60% to 1.75%        4,859        9.82 to 9.64        46,886        0.28%        -8.60% to -8.74%     

2010

     1.60% to 1.75%        6,496        10.74 to 10.57        68,671        0.00%        30.20% to 30.00%     

2009

     1.60% to 1.75%        4,834        8.25 to 8.13        39,312        0.00%        55.14% to 54.9%     

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

2013

     1.60% to 1.75%        24,549        35.89 to 32.01        855,806        1.19%        0.42% to 0.27%     

2012

     1.60% to 1.75%        27,707        35.74 to 31.93        953,958        0.86%        13.98% to 13.80%     

2011

     1.60% to 1.75%        29,336        31.36 to 28.06        884,976        0.83%        4.23% to 4.07%     

2010

     1.60% to 1.75%        35,233        30.08 to 26.96        1,021,191        1.42%        27.89% to 27.69%     

2009

     0.95% to 1.75%        47,730        22.01 to 21.11        1,086,981        5.50%        27.13% to 26.11%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)

2013

     0.95% to 2.25%        7,014,850      $  20.75 to $ 19.51      $ 144,368,536        1.82%        30.65% to 28.93%     

2012

     0.95% to 2.25%        8,204,277        15.89 to 15.14        129,473,465        0.94%        13.57% to 12.08%     

2011

     0.95% to 2.25%        9,880,961        13.99 to 13.50        137,560,150        1.55%        -0.31% to -1.61%     

2010

     0.95% to 2.25%        12,471,315        14.03 to 13.73        174,473,779        1.95%        12.39% to 10.91%     

2009

     0.95% to 1.85%        31,259        12.48 to 12.41        389,738        1.14%        24.85% to 24.14%      ****

American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)

2013

     1.50% to 2.60%        135,281        20.04 to 19.02        2,665,192        1.63%        29.70% to 28.25%     

2012

     1.50% to 2.60%        159,591        15.45 to 14.83        2,435,163        0.77%        12.73% to 11.46%     

2011

     1.50% to 2.60%        202,068        13.71 to 13.30        2,747,398        1.38%        -1.02% to -2.12%     

2010

     1.50% to 2.60%        256,614        13.85 to 13.59        3,535,740        1.29%        11.46% to 10.21%     

American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)

2013

     0.95% to 2.20%        3,225,592        14.56 to 13.21        46,246,667        1.35%        22.11% to 20.57%     

2012

     0.95% to 2.20%        2,681,096        11.92 to 10.95        31,513,005        1.27%        14.61% to 13.17%     

2011

     0.95% to 2.20%        2,662,323        10.40 to 9.68        27,380,159        1.39%        -0.03% to -1.29%     

2010

     0.95% to 2.20%        3,070,605        10.40 to 9.81        31,664,338        1.47%        10.95% to 9.55%     

2009

     0.95% to 2.20%        3,655,535        9.38 to 8.95        34,018,642        0.07%        22.24% to 20.70%     

American Funds NVIT Bond Fund - Class II (GVABD2)

2013

     0.95% to 1.85%        1,315,739        11.68 to 10.89        15,176,840        1.59%        -3.50% to -4.38%     

2012

     0.95% to 1.90%        1,768,019        12.11 to 11.35        21,163,670        2.18%        3.97% to 2.97%     

2011

     0.95% to 2.00%        2,054,466        11.65 to 10.96        23,692,513        2.32%        4.72% to 3.62%     

2010

     0.95% to 2.20%        2,540,834        11.12 to 10.48        28,007,984        2.01%        4.98% to 3.66%     

2009

     0.95% to 2.20%        2,923,369        10.59 to 10.11        30,736,122        0.32%        11.08% to 9.68%     

American Funds NVIT Global Growth Fund - Class II (GVAGG2)

2013

     0.95% to 1.95%        1,583,720        15.87 to 14.69        24,775,951        0.38%        27.42% to 26.13%     

2012

     0.95% to 2.20%        1,659,885        12.46 to 11.45        20,435,727        0.84%        20.92% to 19.40%     

2011

     0.95% to 2.20%        1,877,500        10.30 to 9.59        19,135,209        0.98%        -10.17% to -11.30%     

2010

     0.95% to 2.15%        2,352,559        11.47 to 10.83        26,749,892        0.82%        10.24% to 8.91%     

2009

     0.95% to 2.20%        2,651,292        10.40 to 9.92        27,381,129        0.00%        40.26% to 38.34%     

American Funds NVIT Growth Fund - Class II (GVAGR2)

2013

     0.95% to 2.05%        3,111,350        14.31 to 13.13        43,904,661        0.32%        28.38% to 26.95%     

2012

     0.95% to 2.05%        3,321,520        11.14 to 10.34        36,582,883        0.22%        16.28% to 14.99%     

2011

     0.95% to 2.05%        3,807,910        9.58 to 8.99        36,141,690        0.27%        -5.59% to -6.64%     

2010

     0.95% to 2.20%        4,103,841        10.15 to 9.57        41,328,804        0.16%        17.07% to 15.60%     

2009

     0.95% to 2.25%        4,400,289        8.67 to 8.24        37,905,563        0.00%        37.46% to 35.45%     

American Funds NVIT Growth-Income Fund - Class II (GVAGI2)

2013

     0.95% to 2.20%        1,473,478        12.69 to 11.66        18,495,773        1.07%        31.71% to 30.04%     

2012

     0.95% to 2.20%        1,267,595        9.63 to 8.96        12,103,085        1.03%        15.95% to 14.48%     

2011

     0.95% to 2.20%        1,374,546        8.31 to 7.83        11,339,347        0.99%        -3.16% to -4.38%     

2010

     0.95% to 2.05%        1,421,023        8.58 to 8.24        12,123,365        0.93%        9.92% to 8.70%     

2009

     0.95% to 2.05%        1,422,326        7.81 to 7.58        11,047,272        0.00%        29.45% to 28.01%     

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

2013

     0.95% to 2.20%        1,046,197        22.49 to 16.60        22,597,680        6.10%        6.06% to 4.72%     

2012

     0.95% to 2.20%        1,281,408        21.21 to 15.85        26,114,165        7.81%        13.47% to 12.03%     

2011

     0.95% to 2.20%        1,499,037        18.69 to 14.15        26,996,076        8.19%        2.83% to 1.54%     

2010

     0.95% to 2.20%        1,905,594        18.17 to 13.93        33,448,436        8.32%        12.08% to 10.67%     

2009

     0.95% to 2.20%        2,432,766        16.22 to 12.59        38,123,665        9.44%        44.61% to 42.79%     

Federated NVIT High Income Bond Fund - Class III (HIBF3)

2013

     0.95% to 2.20%        1,692,213        16.76 to 15.01        27,925,404        6.39%        5.92% to 4.58%     

2012

     0.95% to 2.20%        1,969,531        15.82 to 14.35        30,763,762        7.77%        13.62% to 12.18%     

2011

     0.95% to 2.20%        2,286,315        13.93 to 12.80        31,488,000        7.96%        2.82% to 1.53%     

2010

     0.95% to 2.20%        2,742,198        13.54 to 12.60        36,812,941        7.54%        12.09% to 10.67%     

2009

     0.95% to 2.20%        5,022,438        12.08 to 11.39        60,129,567        8.74%        44.69% to 42.82%     

NVIT Emerging Markets Fund - Class I (GEM)

2013

     0.95% to 2.05%        38,605        23.88 to 20.60        906,322        1.15%        -0.21% to -1.32%     

2012

     0.95% to 2.05%        45,909        23.93 to 20.87        1,081,590        0.49%        16.10% to 14.81%     

2011

     0.95% to 2.05%        53,088        20.61 to 18.18        1,074,164        0.64%        -23.11% to -23.96%     

2010

     0.95% to 2.05%        70,785        26.81 to 23.91        1,861,155        0.06%        15.07% to 13.80%     

2009

     0.95% to 2.05%        92,773        23.30 to 21.01        2,128,566        1.19%        61.76% to 59.97%     

NVIT Emerging Markets Fund - Class III (GEM3)

2013

     0.95% to 2.05%        958,212        26.19 to 22.99        24,572,794        1.12%        -0.21% to -1.31%     

2012

     0.95% to 2.20%        1,117,157        26.24 to 22.92        28,762,555        0.44%        16.12% to 14.65%     

2011

     0.95% to 2.20%        1,447,881        22.60 to 19.99        32,179,315        0.66%        -23.13% to -24.10%     

2010

     0.95% to 2.25%        1,961,773        29.40 to 26.22        56,857,465        0.07%        15.11% to 13.60%     

2009

     0.95% to 2.45%        2,343,389        25.54 to 22.73        59,011,515        1.29%        61.93% to 59.09%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Emerging Markets Fund - Class VI (GEM6)

2013

     1.50% to 2.60%        22,478      $  19.52 to $ 17.51      $ 423,707        0.91%        -1.06% to -2.16%     

2012

     1.50% to 2.60%        28,770        19.73 to 17.90        549,863        0.24%        15.16% to 13.87%     

2011

     1.50% to 2.60%        35,349        17.13 to 15.72        588,811        0.43%        -23.75% to -24.60%     

2010

     1.50% to 2.60%        45,329        22.47 to 20.85        994,617        0.00%        14.15% to 12.88%     

2009

     1.50% to 2.60%        57,783        19.68 to 18.47        1,113,594        1.11%        60.64% to 58.85%     

NVIT International Equity Fund - Class I (GIG)

2013

     0.95% to 2.05%        388,288        14.66 to 12.65        5,598,112        0.51%        16.71% to 15.42%     

2012

     0.95% to 2.20%        475,976        12.56 to 10.75        5,887,748        0.86%        14.51% to 13.06%     

2011

     0.95% to 2.20%        523,208        10.97 to 9.51        5,662,385        1.69%        -10.62% to -11.75%     

2010

     0.95% to 1.85%        62,717        12.28 to 11.18        754,976        0.80%        12.22% to 11.20%     

2009

     0.95% to 1.85%        108,942        10.94 to 10.05        1,173,520        0.96%        28.49% to 27.32%     

NVIT International Equity Fund - Class III (GIG3)

2013

     0.95% to 2.20%        848,759        23.25 to 20.04        19,360,340        0.52%        16.69% to 15.22%     

2012

     0.95% to 2.20%        975,577        19.92 to 17.40        19,096,114        0.80%        14.48% to 13.03%     

2011

     0.95% to 2.20%        1,215,140        17.40 to 15.39        20,803,714        1.25%        -10.62% to -11.75%     

2010

     0.95% to 2.20%        1,299,368        19.47 to 17.44        24,942,615        0.93%        12.19% to 10.78%     

2009

     0.95% to 2.45%        1,606,441        17.35 to 15.44        27,490,845        1.02%        28.44% to 26.23%     

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

2013

     1.25%        7,039        9.15        64,384        0.45%        16.09%     

2012

     1.25%        13,008        7.88        102,496        0.62%        13.78%     

2011

     1.25%        12,973        6.92        89,837        1.20%        -11.12%     

2010

     1.25%        7,153        7.79        55,731        0.81%        11.62%     

2009

     1.25%        8,052        6.98        56,219        0.85%        27.83%     

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)

2013

     0.95% to 2.20%        5,881,810        12.90 to 12.01        75,315,730        0.99%        42.45% to 40.66%     

2012

     0.95% to 2.20%        6,918,204        9.06 to 8.54        62,260,709        1.39%        15.83% to 14.36%     

2011

     0.95% to 2.20%        8,487,495        7.82 to 7.46        66,039,952        0.56%        -12.46% to -13.56%     

2010

     0.95% to 2.25%        10,221,217        8.93 to 8.62        90,975,125        0.19%        14.51% to 13.01%     

2009

     0.95% to 2.30%        13,082,723        7.80 to 7.60        101,820,966        0.18%        51.51% to 49.15%     

Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)

2013

     0.95% to 1.75%        419,199        14.25 to 13.61        5,930,267        0.77%        37.45% to 36.34%     

2012

     0.95% to 1.75%        432,385        10.37 to 9.98        4,460,561        1.30%        10.44% to 9.54%     

2011

     0.95% to 1.75%        381,863        9.39 to 9.11        3,567,543        0.70%        -4.10% to -4.87%     

2010

     0.95% to 1.90%        318,693        9.79 to 9.53        3,107,996        0.70%        22.41% to 21.35%     

2009

     0.95% to 2.20%        545,466        8.00 to 7.81        4,351,485        0.47%        30.29% to 28.45%     

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)

2010

     2.20%        217        9.44        2,049        0.06%        20.85%     

2009

     2.20%        217        7.81        1,695        0.09%        28.38%     

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

2013

     0.95% to 1.75%        262,726        12.70 to 12.13        3,307,973        1.30%        28.25% to 27.21%     

2012

     0.95% to 1.65%        228,694        9.91 to 9.58        2,250,854        0.91%        15.05% to 14.23%     

2011

     0.95% to 1.65%        306,028        8.61 to 8.39        2,622,892        1.96%        -7.27% to -7.92%     

2010

     0.95% to 1.40%        289,171        9.29 to 9.16        2,674,006        0.32%        13.86% to 13.44%     

2009

     0.95% to 1.40%        291,521        8.15 to 8.07        2,370,573        0.96%        27.97% to 27.21%     

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

2013

     0.95% to 1.90%        884,824        12.58 to 11.91        11,034,496        1.66%        13.57% to 12.48%     

2012

     0.95% to 1.90%        860,739        11.08 to 10.59        9,459,005        1.50%        10% to 8.95%     

2011

     0.95% to 1.90%        806,397        10.07 to 9.72        8,066,520        2.42%        -2.28% to -3.22%     

2010

     0.95% to 1.75%        962,233        10.30 to 10.08        9,861,670        0.86%        9.36% to 8.47%     

2009

     0.95% to 1.75%        589,939        9.42 to 9.29        5,537,130        2.17%        18.68% to 17.72%     

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

2013

     0.95% to 1.80%        523,330        12.77 to 12.16        6,608,536        1.56%        20.09% to 19.06%     

2012

     0.95% to 1.80%        550,198        10.63 to 10.21        5,798,672        1.28%        12.56% to 11.59%     

2011

     0.95% to 1.80%        581,248        9.45 to 9.15        5,454,426        2.27%        -4.36% to -5.18%     

2010

     0.95% to 1.80%        580,022        9.88 to 9.65        5,701,288        0.66%        11.32% to 10.37%     

2009

     0.95% to 1.80%        418,388        8.87 to 8.75        3,698,081        1.41%        22.98% to 21.93%     

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

2013

     0.95% to 1.80%        626,630        11.97 to 11.41        7,404,662        1.79%        3.94% to 3.07%     

2012

     0.95% to 1.80%        684,120        11.51 to 11.06        7,789,099        1.62%        6.48% to 5.56%     

2011

     0.95% to 1.80%        876,996        10.82 to 10.48        9,416,711        2.39%        0.45% to -0.36%     

2010

     0.95% to 1.90%        807,699        10.77 to 10.49        8,651,582        1.24%        5.79% to 4.77%     

2009

     0.95% to 1.85%        581,196        10.18 to 10.02        5,894,080        2.88%        11.95% to 10.93%     

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

2013

     0.95% to 1.80%        1,734,862        12.68 to 12.07        21,785,350        1.63%        16.69% to 15.68%     

2012

     0.95% to 1.80%        1,704,961        10.87 to 10.44        18,383,499        1.39%        11.30% to 10.34%     

2011

     0.95% to 1.80%        1,828,979        9.76 to 9.46        17,749,205        2.32%        -3.26% to -4.09%     

2010

     0.95% to 1.80%        1,912,124        10.09 to 9.86        19,202,888        0.84%        10.31% to 9.37%     

2009

     0.95% to 1.85%        1,273,021        9.15 to 9.00        11,603,008        1.95%        20.79% to 19.61%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

2013

     0.95% to 1.60%        583,495      $  12.72 to 12.25      $ 7,357,270        1.46%        23.10% to 22.29%     

2012

     0.95% to 1.60%        627,883        10.33 to 10.02        6,443,680        1.13%        13.49% to 12.75%     

2011

     0.95% to 2.00%        715,736        9.10 to 8.75        6,476,071        2.34%        -5.58% to -6.57%     

2010

     0.95% to 1.55%        703,800        9.64 to 9.48        6,757,246        0.60%        12.23% to 11.56%     

2009

     0.95% to 1.60%        487,057        8.59 to 8.49        4,172,398        1.51%        25.38% to 24.55%     

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

2013

     0.95% to 1.85%        706,326        12.42 to 11.80        8,694,013        1.68%        10.18% to 9.18%     

2012

     0.95% to 1.85%        771,585        11.28 to 10.81        8,633,970        1.57%        9.00% to 8.00%     

2011

     0.95% to 1.95%        824,921        10.35 to 9.97        8,482,686        2.57%        -1.22% to -2.21%     

2010

     0.95% to 1.85%        798,523        10.47 to 10.22        8,326,251        1.01%        8.00% to 7.02%     

2009

     0.95% to 1.85%        633,405        9.70 to 9.55        6,123,239        2.42%        16.56% to 15.47%     

NVIT Core Bond Fund - Class I (NVCBD1)

2013

     0.95% to 1.95%        465,087        12.36 to 11.67        5,694,245        1.94%        -2.84% to -3.82%     

2012

     0.95% to 1.95%        720,113        12.72 to 12.14        9,086,612        3.11%        6.73% to 5.65%     

2011

     0.95% to 1.85%        766,295        11.92 to 11.53        9,086,373        3.14%        5.58% to 4.63%     

2010

     0.95% to 1.90%        722,330        11.29 to 11.01        8,117,766        2.70%        6.04% to 5.06%     

2009

     0.95% to 2.30%        669,759        10.65 to 10.41        7,107,261        3.38%        7.75% to 6.31%     

NVIT Core Bond Fund - Class II (NVCBD2)

2013

     1.50% to 2.50%        60,013        11.80 to 11.14        690,858        2.07%        -3.60% to -4.58%     

2012

     1.50% to 2.50%        76,022        12.24 to 11.67        913,159        2.73%        5.87% to 4.79%     

2011

     1.50% to 2.50%        79,379        11.57 to 11.14        904,698        2.90%        4.65% to 3.59%     

2010

     1.50% to 2.50%        72,196        11.05 to 10.75        789,449        2.52%        5.18% to 4.11%     

2009

     1.50% to 2.50%        63,999        10.51 to 10.33        668,098        3.22%        6.96% to 5.88%     

NVIT Core Plus Bond Fund - Class II (NVLCP2)

2013

     0.95% to 1.65%        390,927        13.18 to 12.66        5,102,318        1.46%        -2.98% to -3.67%     

2012

     0.95% to 2.20%        468,113        13.58 to 12.80        6,304,056        2.12%        6.10% to 4.76%     

2011

     0.95% to 2.20%        463,061        12.80 to 12.22        5,887,019        2.49%        5.04% to 3.72%     

2010

     0.95% to 2.20%        307,535        12.18 to 11.78        3,728,394        2.46%        7.09% to 5.74%     

2009

     0.95% to 2.20%        344,564        11.38 to 11.14        3,910,872        5.36%        15.33% to 13.88%     

NVIT Nationwide Fund - Class I (TRF)

2013

     0.95% to 2.20%        6,330,688        18.42 to 11.93        114,704,338        1.31%        29.86% to 28.22%     

2012

     0.95% to 2.20%        7,146,201        14.19 to 9.31        99,844,793        1.38%        13.13% to 11.70%     

2011

     0.95% to 2.20%        8,372,529        12.54 to 8.33        103,533,162        1.12%        -0.42% to -1.68%     

2010

     0.95% to 2.20%        9,987,008        12.59 to 8.47        124,151,365        1.00%        12.37% to 10.96%     

2009

     0.95% to 2.30%        11,511,657        11.21 to 8.07        127,435,570        1.32%        24.90% to 22.98%     

NVIT Nationwide Fund - Class II (TRF2)

2013

     1.50% to 2.60%        31,548        15.48 to 13.58        468,595        1.03%        28.83% to 27.39%     

2012

     1.50% to 2.60%        35,483        12.02 to 10.66        410,807        1.15%        12.14% to 10.88%     

2011

     1.50% to 2.60%        45,677        10.72 to 9.61        475,742        0.86%        -1.12% to -2.23%     

2010

     1.50% to 2.60%        59,096        10.84 to 9.83        623,121        0.70%        11.53% to 10.28%     

2009

     1.50% to 2.60%        90,233        9.72 to 8.92        855,533        1.09%        23.67% to 22.29%     

NVIT Government Bond Fund - Class I (GBF)

2013

     0.95% to 2.25%        8,535,517        18.36 to 14.49        146,192,451        1.82%        -4.97% to -6.21%     

2012

     0.95% to 2.25%        10,447,542        19.32 to 15.46        188,677,693        2.07%        2.08% to 0.73%     

2011

     0.95% to 2.25%        12,293,357        18.93 to 15.34        217,827,584        2.89%        6.24% to 4.85%     

2010

     0.95% to 2.25%        15,180,960        17.82 to 14.63        253,606,247        2.91%        3.79% to 2.42%     

2009

     0.95% to 2.45%        18,571,113        17.17 to 13.31        298,915,230        3.28%        1.71% to 0.20%     

NVIT Government Bond Fund - Class II (GBF2)

2013

     1.50% to 2.60%        273,240        13.10 to 11.49        3,454,451        1.56%        -5.69% to -6.75%     

2012

     1.50% to 2.60%        336,649        13.89 to 12.32        4,533,019        1.73%        1.22% to 0.09%     

2011

     1.50% to 2.60%        438,421        13.72 to 12.31        5,851,405        2.55%        5.40% to 4.23%     

2010

     1.50% to 2.60%        626,493        13.02 to 11.81        7,945,256        2.60%        2.96% to 1.81%     

2009

     1.50% to 2.60%        853,076        12.65 to 11.60        10,524,843        3.10%        0.89% to -0.23%     

American Century NVIT Growth Fund - Class I (CAF)

2013

     0.95% to 2.05%        2,583,222        12.64 to 7.58        31,350,253        0.66%        28.51% to 27.08%     

2012

     0.95% to 2.05%        2,932,172        9.84 to 5.97        27,746,329        0.55%        12.94% to 11.68%     

2011

     0.95% to 2.05%        3,261,287        8.71 to 5.34        27,405,056        0.57%        -1.63% to -2.72%     

2010

     0.95% to 2.05%        3,600,445        8.86 to 5.49        30,828,620        0.63%        18.12% to 16.81%     

2009

     0.95% to 2.05%        4,093,988        7.50 to 4.70        29,698,562        0.56%        32.20% to 30.74%     

NVIT International Index Fund - Class VIII (GVIX8)

2013

     0.95% to 1.85%        387,529        10.92 to 10.18        4,197,112        2.79%        19.86% to 18.77%     

2012

     0.95% to 1.85%        360,461        9.11 to 8.57        3,263,744        2.29%        17.09% to 16.02%     

2011

     0.95% to 1.85%        701,900        7.78 to 7.39        5,423,730        2.82%        -13.68% to -14.46%     

2010

     0.95% to 1.85%        345,841        9.02 to 8.64        3,107,704        1.98%        6.38% to 5.41%     

2009

     0.95% to 1.85%        362,938        8.48 to 8.20        3,066,717        2.76%        27.39% to 26.23%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

2013

     0.95% to 2.60%        2,356,559      $  19.50 to $ 15.95      $ 44,506,142        1.62%        26.04% to 23.94%     

2012

     0.95% to 2.60%        2,595,098        15.47 to 12.87        38,966,073        1.51%        14.80% to 12.88%     

2011

     0.95% to 2.60%        2,902,862        13.47 to 11.40        38,059,017        1.80%        -4.84% to -6.42%     

2010

     0.95% to 2.60%        3,478,795        14.16 to 12.19        48,049,263        1.65%        13.54% to 11.65%     

2009

     0.95% to 2.60%        4,157,079        12.47 to 10.91        50,579,875        1.00%        26.00% to 23.73%     

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

2013

     0.95% to 1.80%        420,303        15.30 to 14.70        6,390,506        1.79%        12.35% 11.38%     

2012

     0.95% to 1.80%        377,590        13.62 to 13.20        5,119,938        1.82%        8.34% to 7.41%     

2011

     0.95% to 1.60%        349,250        12.57 to 12.35        4,375,034        2.15%        -0.07% to -0.73%     

2010

     0.95% to 1.60%        317,412        12.58 to 12.44        3,984,256        1.40%        8.77% to 8.06%     

2009

     0.95% to 1.85%        127,959        11.57 to 11.50        1,477,660        1.94%        15.66% to 15.00%      ****

NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)

2013

     0.95% to 1.75%        94,238        17.38 to 16.73        1,626,597        1.96%        18.36% to 17.40%     

2012

     0.95% to 1.40%        70,337        14.68 to 14.44        1,029,188        1.65%        11.18% to 10.67%     

2011

     0.95% to 1.35%        73,171        13.21 to 13.06        963,988        1.97%        -1.87% to -2.27%     

2010

     0.95% to 1.35%        78,659        13.46 to 13.37        1,056,847        1.13%        10.97% to 10.52%     

2009

     0.95% to 1.20%        61,529        12.13 to 12.11        745,662        1.69%        21.27% to 21.07%      ****

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

2013

     0.95% to 2.60%        2,653,700        14.42 to 11.80        37,164,122        1.58%        3.84% to 2.11%     

2012

     0.95% to 2.60%        3,409,144        13.89 to 11.56        45,991,163        1.70%        4.17% to 2.43%     

2011

     0.95% to 2.60%        3,695,621        13.33 to 11.28        47,923,219        2.43%        1.95% to 0.26%     

2010

     0.95% to 2.60%        4,288,835        13.08 to 11.25        54,764,393        2.25%        4.89% to 3.14%     

2009

     0.95% to 2.60%        5,109,651        12.47 to 10.91        62,303,928        1.86%        8.05% to 6.25%     

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

2013

     0.95% to 2.60%        11,870,761        17.43 to 14.26        200,837,375        1.62%        15.52% to 13.60%     

2012

     0.95% to 2.60%        13,526,513        15.09 to 12.56        198,495,540        1.57%        9.76% to 7.92%     

2011

     0.95% to 2.60%        15,869,278        12.27 to 11.63        212,855,992        2.11%        -0.99% to -2.63%     

2010

     0.95% to 2.60%        19,697,426        12.39 to 11.95        267,407,824        1.95%        9.86% to 8.03%     

2009

     0.95% to 2.60%        24,580,501        11.28 to 11.07        303,672,799        1.42%        5.32% to 15.97%     

NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)

2013

     0.95% to 2.60%        5,587,916        18.80 to 15.38        101,518,872        1.64%        21.22% to 19.20%     

2012

     0.95% to 2.60%        6,299,513        15.51 to 12.91        94,676,446        1.54%        12.68% to 10.80%     

2011

     0.95% to 2.60%        7,590,233        13.76 to 11.65        101,570,285        2.00%        -3.05% to -4.67%     

2010

     0.95% to 2.60%        9,585,870        14.20 to 12.22        132,535,343        1.85%        11.76% to 9.90%     

2009

     0.95% to 2.60%        11,933,118        12.70 to 11.12        147,623,643        1.20%        23.21% to 21.16%     

NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)

2013

     0.95% to 2.60%        3,709,734        16.18 to 13.24        58,032,917        1.67%        9.45% to 7.62%     

2012

     0.95% to 2.60%        4,348,864        14.78 to 12.30        62,377,300        1.63%        7.01% to 5.22%     

2011

     0.95% to 2.60%        4,970,184        13.81 to 11.69        66,830,206        2.30%        1.09% to -0.59%     

2010

     0.95% to 2.60%        6,041,482        13.66 to 11.76        80,607,880        2.15%        7.49% to 5.70%     

2009

     0.95% to 2.60%        7,849,777        12.71 to 11.13        97,464,346        1.65%        13.47% to 11.58%     

NVIT Mid Cap Index Fund - Class I (MCIF)

2013

     0.95% to 2.20%        2,680,803        38.00 to 27.75        105,294,643        1.09%        31.78% to 30.12%     

2012

     0.95% to 2.20%        3,063,218        28.84 to 21.33        91,420,368        1.03%        16.35% to 14.88%     

2011

     0.95% to 2.20%        3,748,165        24.78 to 18.56        96,212,301        0.76%        -3.47% to -4.68%     

2010

     0.95% to 2.25%        4,548,842        25.67 to 16.69        121,160,598        1.24%        25.00% to 23.37%     

2009

     0.95% to 2.30%        5,661,511        20.54 to 16.09        120,603,219        0.95%        35.46% to 33.44%     

NVIT Money Market Fund - Class I (SAM)

2013

     0.95% to 2.60%        15,167,273        12.36 to 8.96        179,273,814        0.00%        -0.95% to -2.60%     

2012

     0.95% to 2.60%        17,342,803        12.48 to 9.19        207,045,415        0.00%        0.95% to -2.61%     

2011

     0.95% to 2.60%        21,235,532        12.60 to 9.44        256,646,827        0.00%        -0.95% to -2.59%     

2010

     0.95% to 2.60%        22,936,653        12.72 to 9.69        280,127,960        0.00%        -0.95% to -2.60%     

2009

     0.95% to 2.70%        31,981,566        12.84 to 10.08        394,485,878        0.04%        -0.91% to -2.66%     

NVIT Multi-Manager International Growth Fund - Class I (NVMIG1)

2013

     0.95% to 1.25%        10,333        18.91 to 18.64        194,118        1.71%        20.21% to 19.85%     

2012

     1.10% to 1.10%        4,488        15.64 to 15.64        70,192        1.18%        14.58% to 14.58%     

2011

     1.10% to 1.15%        870        13.65 to 13.63        11,874        1.32%        -10.32% to -10.33%     

2010

     1.10% to 1.15%        896        15.22 to 15.20        13,636        0.86%        12.77% to 12.70%     

2009

     1.10%        813        13.48        10,958        0.00%        34.80%     

NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)

2013

     0.95% to 2.25%        4,472,594        11.53 to 10.69        51,124,329        1.23%        20.19% to 18.61%     

2012

     0.95% to 2.25%        5,166,488        9.59 to 9.02        49,202,731        0.57%        14.68% to 13.17%     

2011

     0.95% to 2.25%        6,118,224        8.36 to 7.97        50,889,122        1.26%        -10.23% to -11.40%     

2010

     0.95% to 2.25%        7,207,413        9.31 to 8.99        66,875,552        0.73%        12.95% to 11.47%     

2009

     0.95% to 2.40%        9,022,689        8.25 to 8.03        74,212,142        0.87%        35.16% to 32.99%     

NVIT Multi-Manager International Value Fund - Class II (GVDIV2)

2012

     1.25%        179        11.79        2,112        0.12%        15.58%     

2011

     1.25%        195        10.20        1,990        1.53%        -17.46%     

2010

     1.25%        212        12.35        2,620        2.07%        4.56%     

2009

     1.25%        230        11.82        2,718        1.88%        27.89%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Manager International Value Fund - Class III (GVDIV3)

2013

     0.95% to 2.20%        515,192      $  18.89 to $ 16.49      $ 9,518,408        2.21%        20.27% to 18.75%     

2012

     0.95% to 2.20%        603,932        15.70 to 13.89        9,296,209        0.40%        16.12% to 14.65%     

2011

     0.95% to 2.20%        712,738        13.52 to 12.11        9,469,953        1.72%        -16.91% to -17.96%     

2010

     0.95% to 2.20%        905,151        16.28 to 14.77        14,505,612        2.12%        5.10% to 3.78%     

2009

     0.95% to 2.20%        1,150,634        15.49 to 14.23        17,575,662        2.06%        28.60% to 26.98%     

NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)

2013

     1.50% to 2.60%        25,684        12.23 to 10.97        307,543        2.23%        19.28% to 17.95%     

2012

     1.50% to 2.60%        30,450        10.25 to 9.30        306,774        0.16%        15.19% to 13.90%     

2011

     1.50% to 2.60%        32,579        8.90 to 8.17        284,539        1.58%        -17.65% to -18.57%     

2010

     1.50% to 2.60%        39,415        10.81 to 10.03        419,558        1.42%        4.26% to 3.10%     

2009

     1.50% to 2.60%        67,302        10.37 to 9.73        687,819        0.99%        27.55% to 26.12%     

NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)

2013

     0.95% to 2.60%        2,019,933        13.76 to 12.51        27,247,280        0.79%        33.46% to 31.24%     

2012

     0.95% to 2.60%        2,143,624        10.31 to 9.53        21,714,092        0.47%        15.25% to 13.32%     

2011

     0.95% to 2.60%        2,538,927        8.94 to 8.41        22,413,289        0.01%        -3.83% to -5.43%     

2010

     0.95% to 2.60%        3,235,185        3.42 to 8.89        29,745,990        0.06%        14.41% to 12.51%     

2009

     0.95% to 2.20%        1,116,209        8.13 to 7.94        9,044,189        0.86%        28.54% to 26.74%     

NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)

2013

     1.50% to 2.60%        35,708        13.16 to 12.35        459,833        0.46%        32.40% to 30.92%     

2012

     1.50% to 2.60%        47,902        9.94 to 9.43        467,975        0.20%        14.39% to 13.11%     

2011

     1.50% to 2.60%        62,261        8.69 to 8.34        533,955        0.00%        -4.68% to -5.74%     

2010

     1.50% to 2.60%        97,408        9.12 to 8.85        880,856        0.00%        13.63% to 12.36%     

2009

     1.50% to 2.60%        138,048        8.02 to 7.87        1,101,310        0.48%        27.41% to 25.99%     

NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)

2013

     0.95% to 2.25%        644,126        15.26 to 14.53        9,756,439        1.48%        34.15% to 32.39%     

2012

     0.95% to 2.25%        701,373        11.37 to 10.98        7,935,795        1.35%        16.69% to 15.15%     

2011

     0.95% to 2.25%        806,019        9.75 to 9.53        7,833,141        1.06%        -6.72% to -7.95%     

2010

     0.95% to 2.25%        978,492        10.45 to 10.36        10,227,148        0.51%        4.49% to 3.57%      ****

NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)

2013

     0.95% to 2.60%        267,804        12.88 to 11.71        3,327,237        1.15%        33.74% to 31.52%     

2012

     0.95% to 2.60%        307,809        9.63 to 8.91        2,878,555        1.02%        16.47% to 14.53%     

2011

     0.95% to 2.60%        390,315        8.27 to 7.78        3,151,706        0.80%        -6.98% to -8.53%     

2010

     0.95% to 2.60%        510,297        8.89 to 8.50        4,463,463        0.50%        11.68% to 9.82%     

2009

     0.95% to 2.60%        671,187        7.96 to 7.74        5,292,201        1.17%        26.20% to 24.10%     

NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)

2013

     0.95% to 2.25%        6,491,418        14.66 to 13.61        94,365,577        0.00%        37.63% to 35.82%     

2012

     0.95% to 2.25%        7,505,685        10.66 to 10.02        79,409,521        0.00%        13.81% to 12.31%     

2011

     0.95% to 2.25%        9,057,308        9.36 to 8.92        84,331,712        0.00%        -5.14% to -6.38%     

2010

     0.95% to 2.25%        11,324,227        9.87 to 9.53        111,318,566        0.00%        25.61% to 23.97%     

2009

     0.95% to 2.40%        13,643,300        7.86 to 7.65        106,907,689        0.00%        25.91% to 23.87%     

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

2013

     1.20% to 2.10%        521,017        14.25 to 13.53        7,388,276        0.00%        36.94% to 35.70%     

2012

     1.20% to 2.10%        549,050        10.40 to 9.97        5,689,561        0.00%        13.27% to 12.23%     

2011

     1.20% to 2.10%        641,306        9.18 to 8.88        5,872,533        0.00%        -5.60% to -6.45%     

2010

     1.20% to 2.10%        828,610        9.73 to 9.49        8,045,704        0.00%        24.95% to 23.81%     

2009

     1.20% to 2.10%        970,197        7.79 to 7.67        7,545,630        0.00%        25.19% to 24.05%     

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

2013

     0.95% to 2.20%        4,472,473        15.41 to 14.34        68,139,925        1.16%        34.39% to 32.69%     

2012

     0.95% to 2.20%        5,061,320        11.46 to 10.80        57,485,284        1.08%        15.24% to 13.78%     

2011

     0.95% to 2.20%        6,072,780        9.95 to 9.50        59,973,772        0.78%        -3.25% to -4.47%     

2010

     0.95% to 2.25%        7,386,826        10.28 to 9.93        75,555,521        1.29%        18.50% to 16.94%     

2009

     0.95% to 2.25%        9,387,443        8.68 to 8.49        81,175,736        1.17%        29.23% to 27.53%     

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)

2013

     0.95% to 2.20%        1,285,895        23.08 to 19.16        28,872,405        0.00%        42.92% to 41.12%     

2012

     0.95% to 2.20%        1,396,829        16.15 to 13.58        22,006,733        0.00%        12.36% to 10.94%     

2011

     0.95% to 2.20%        1,683,899        14.38 to 12.24        23,650,834        0.00%        -1.60% to -2.83%     

2010

     0.95% to 2.20%        2,093,550        14.61 to 12.60        29,940,560        0.00%        24.26% to 22.69%     

2009

     0.95% to 2.20%        2,405,794        11.76 to 10.27        27,692,099        0.00%        26.25% to 24.66%     

NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)

2013

     1.50% to 2.60%        23,563        15.40 to 13.50        347,438        0.00%        41.79% to 40.21%     

2012

     1.50% to 2.60%        30,452        10.86 to 9.63        317,793        0.00%        11.39% to 10.15%     

2011

     1.50% to 2.60%        39,878        9.75 to 8.74        374,304        0.00%        -2.35% to -3.43%     

2010

     1.50% to 2.60%        52,561        9.98 to 9.06        507,807        0.00%        23.23% to 21.85%     

2009

     1.50% to 2.60%        75,333        8.10 to 7.43        594,293        0.00%        25.28% to 23.88%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)

2013

     0.95% to 2.40%        2,567,355      $  39.13 to $ 26.94      $ 113,265,857        0.81%        39.07% to 37.03%     

2012

     0.95% to 2.40%        2,933,718        36.38 to 19.66        93,120,074        0.81%        19.30% to 17.55%     

2011

     0.95% to 2.40%        3,501,538        23.59 to 16.72        93,191,567        0.44%        -5.97% to -7.34%     

2010

     0.95% to 2.40%        4,308,309        25.09 to 18.05        122,185,799        0.60%        25.40% to 23.57%     

2009

     0.95% to 2.40%        5,299,089        20.00 to 14.61        119,917,757        0.58%        25.02% to 23.19%     

NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)

2013

     1.50% to 2.60%        43,328        21.11 to 18.52        881,477        0.61%        37.92% to 36.39%     

2012

     1.50% to 2.60%        51,758        15.31 to 13.58        765,755        0.51%        18.50% to 17.17%     

2011

     1.50% to 2.60%        67,112        12.92 to 11.59        839,424        0.34%        -6.87% to -7.91%     

2010

     1.50% to 2.60%        95,306        13.87 to 12.58        1,284,076        0.38%        24.58% to 23.19%     

2009

     1.50% to 2.60%        123,050        11.13 to 10.21        1,335,668        0.54%        23.97% to 22.59%     

NVIT Multi-Manager Small Company Fund - Class I (SCF)

2013

     0.95% to 2.20%        2,883,522        34.88 to 29.96        108,877,931        0.13%        39.58% to 37.81%     

2012

     0.95% to 2.20%        3,336,881        24.99 to 21.74        90,428,333        0.15%        14.40% to 12.96%     

2011

     0.95% to 2.20%        3,983,163        21.84 to 19.24        94,371,306        0.53%        -6.45% to -7.63%     

2010

     0.95% to 2.25%        4,900,621        23.35 to 13.87        124,117,565        0.28%        24.13% to 22.50%     

2009

     0.95% to 2.25%        6,145,117        18.81 to 11.32        125,332,191        0.27%        33.42% to 31.67%     

NVIT Multi-Manager Small Company Fund - Class II (SCF2)

2013

     1.50% to 2.60%        86,298        22.29 to 19.55        1,848,534        0.13%        38.44% to 36.90%     

2012

     1.50% to 2.60%        107,261        16.10 to 14.28        1,667,793        0.00%        13.49% to 12.22%     

2011

     1.50% to 2.60%        123,033        14.19 to 12.73        1,690,573        0.48%        -7.21% to -8.25%     

2010

     1.50% to 2.60%        180,903        15.29 to 13.87        2,679,638        0.05%        23.11% to 21.73%     

2009

     1.50% to 2.60%        239,791        12.42 to 11.40        2,898,029        0.16%        32.41% to 30.93%     

NVIT Multi-Sector Bond Fund - Class I (MSBF)

2013

     0.95% to 2.60%        2,677,616        19.00 to 14.68        49,520,067        3.22%        -2.06% to -3.70%     

2012

     0.95% to 2.60%        3,260,113        19.40 to 15.24        61,682,321        2.50%        11.18% to 9.32%     

2011

     0.95% to 2.60%        3,529,900        17.45 to 13.94        60,182,019        4.23%        4.55% to 2.81%     

2010

     0.95% to 2.60%        4,263,225        16.69 to 13.56        69,754,208        6.07%        9.54% to 7.71%     

2009

     0.95% to 2.60%        5,382,701        15.24 to 12.59        80,458,840        9.45%        23.20% to 21.15%     

NVIT Short Term Bond Fund - Class II (NVSTB2)

2013

     0.95% to 1.65%        788,215        10.85 to 10.42        8,479,754        1.14%        -0.85% to -1.55%     

2012

     0.95% to 1.65%        782,664        10.94 to 10.58        8,502,399        1.23%        2.54% to 1.81%     

2011

     0.95% to 1.65%        998,649        10.67 to 10.40        10,598,447        1.53%        0.34% to -0.37%     

2010

     0.95% to 2.20%        1,469,186        10.63 to 10.28        15,554,330        1.29%        1.45% to 0.17%     

2009

     0.95% to 2.20%        2,035,595        10.48 to 10.26        21,275,367        2.48%        6.09% to 4.77%     

NVIT Large Cap Growth Fund - Class I (NVOLG1)

2013

     0.95% to 2.40%        19,341,164        21.56 to 20.12        414,023,136        0.76%        35.40% to 33.42%     

2012

     0.95% to 2.40%        22,889,891        15.92 to 15.08        362,380,774        0.68%        17.56% to 15.83%     

2011

     0.95% to 2.40%        27,561,260        13.54 to 13.02        371,745,104        0.66%        -3.16% to -4.58%     

2010

     0.95% to 2.40%        35,443,657        13.98 to 13.65        494,416,782        0.06%        7.77% to 6.19%     

2009

     0.95% to 1.85%        103,250        12.98 to 12.90        1,339,008        0.33%        29.77% to 28.98%      ****

NVIT Large Cap Growth Fund - Class II (NVOLG2)

2013

     1.50% to 2.60%        455,761        20.75 to 19.69        9,330,319        0.52%        34.24% to 32.74%     

2012

     1.50% to 2.60%        541,918        15.46 to 14.83        8,285,284        0.41%        16.64% to 15.34%     

2011

     1.50% to 2.60%        708,208        13.25 to 12.86        9,306,722        0.40%        -3.95% to -5.03%     

2010

     1.50% to 2.60%        934,222        13.80 to 13.54        12,819,308        0.07%        6.89% to 5.70%     

2009

     1.95%        983        12.87        12,649        0.00%        28.68%      ****

Templeton NVIT International Value Fund - Class III (NVTIV3)

2013

     0.95% to 1.75%        188,729        16.67 to 16.05        3,119,324        1.77%        18.95% to 17.99%     

2012

     0.95% to 2.20%        294,124        14.01 to 13.38        4,099,498        2.75%        18.43% to 16.93%     

2011

     0.95% to 2.20%        266,383        11.83 to 11.44        3,140,657        2.73%        -13.26% to -14.35%     

2010

     0.95% to 1.90%        281,143        13.64 to 13.44        3,825,427        1.78%        5.34% to 4.38%     

2009

     0.95% to 2.20%        452,463        12.95 to 12.85        5,854,117        0.45%        29.52% to 28.49%      ****

Invesco NVIT Comstock Value Fund - Class I (EIF)

2013

     0.95% to 2.20%        1,734,014        18.78 to 12.42        31,894,766        0.00%        34.35% to 32.66%     

2012

     0.95% to 2.20%        1,643,914        13.98 to 9.36        22,623,622        1.21%        17.34% to 15.85%     

2011

     0.95% to 2.20%        1,921,900        11.91 to 8.08        22,292,576        1.29%        -3.25% to -4.47%     

2010

     0.95% to 2.20%        2,221,826        12.31 to 8.46        26,948,240        1.47%        14.67% to 13.23%     

2009

     0.95% to 2.20%        2,805,689        10.74 to 7.97        29,662,654        1.09%        27.33% to 25.55%     

NVIT Real Estate Fund - Class I (NVRE1)

2013

     0.95% to 2.60%        7,066,545        11.58 to 10.53        81,041,231        1.43%        2.12% to 0.37%     

2012

     0.95% to 2.60%        8,144,479        11.34 to 10.49        91,656,539        1.03%        14.68% to 12.77%     

2011

     0.95% to 2.60%        9,422,684        9.89 to 9.30        92,615,775        0.85%        5.49% to 3.74%     

2010

     0.95% to 2.60%        11,210,732        9.38 to 8.96        104,636,450        1.88%        28.95% to 26.80%     

2009

     0.95% to 2.60%        13,652,000        7.27 to 7.07        98,956,949        2.14%        29.59% to 27.43%     

NVIT Cardinal(SM) Managed Growth Fund - Class II (NCPG2)

2013

     0.95% to 1.35%        17,065        10.99 to 10.96        187,537        0.04%        9.90% to 9.61%      ****

NVIT Cardinal(SM) Managed Growth & Income Fund: Class II (NCPGI2)

2013

     1.00% to 1.20%        20,964        10.85 to 10.83        227,113        1.91%        8.48% to 8.33%      ****

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

NVIT Investor Destinations Managed Growth Fund: Class II (IDPG2)

2013

     1.00% to 1.20%        11,790      $  10.77 to $ 10.76      $ 126,936        2.25%        7.71% to 7.56%      ****

NVIT Investor Destinations Managed Growth & Income Fund: Class II (IDPGI2)

2013

     0.95% to 1.05%        3,087        10.69 to 10.68        32,980        1.79%        6.86% to 6.79%      ****

NVIT Small Cap Index Fund Class II (NVSIX2)

2013

     0.95% to 1.65%        68,726        12.60 to 12.54        865,343        2.18%        25.99% to 25.40%      ****

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

2013

     0.95% to 1.60%        160,648        11.73 to 11.68        1,881,749        2.51%        17.27% to 16.75%      ****

VPS Growth and Income Portfolio - Class B (ALVGIB)

2013

     1.50% to 2.60%        74,021        16.95 to 14.87        1,203,601        1.14%        32.57% to 31.10%     

2012

     1.50% to 2.60%        102,976        12.79 to 11.34        1,263,347        1.35%        15.48% to 14.19%     

2011

     1.50% to 2.60%        118,845        11.07 to 9.93        1,270,742        1.10%        4.48% to 3.32%     

2010

     1.50% to 2.60%        139,314        10.60 to 9.61        1,434,511        0.00%        11.11% to 9.87%     

2009

     1.50% to 2.60%        174,315        9.54 to 8.75        1,623,035        3.48%        18.54% to 17.22%     

VPS Large Cap Growth Portfolio: Class B (ALVPGB)

2013

     1.50% to 2.60%        68,946        16.01 to 14.04        1,067,840        0.00%        34.94% to 33.44%     

2012

     1.50% to 2.60%        85,005        11.86 to 10.52        979,227        0.03%        14.38% to 13.10%     

2011

     1.50% to 2.60%        104,755        10.32 to 9.26        1,049,090        0.09%        -5.19% to -6.25%     

2010

     1.50% to 2.60%        151,328        10.88 to 9.87        1,608,213        0.28%        8.18% to 6.98%     

2009

     1.50% to 2.60%        204,515        10.06 to 9.23        2,012,131        0.00%        35.05% to 33.54%     

VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)

2013

     0.95% to 2.60%        431,348        15.94 to 22.00        7,621,229        0.42%        36.33% to 34.06%     

2012

     0.95% to 2.60%        498,580        11.69 to 16.41        6,446,196        0.29%        17.34% to 15.38%     

2011

     0.95% to 2.60%        630,824        9.97 to 14.22        7,161,370        0.28%        -9.49% to -10.99%     

2010

     0.95% to 2.60%        751,905        11.01 to 15.98        9,603,846        0.36%        25.39% to 23.30%     

2009

     0.95% to 2.60%        714,580        8.78 to 12.96        7,535,414        0.68%        41.30% to 38.95%     

VP Income & Growth Fund - Class I (ACVIG)

2013

     0.95% to 2.20%        3,010,407        22.41 to 13.32        63,780,641        2.21%        34.53% to 32.84%     

2012

     0.95% to 2.20%        3,486,389        16.65 to 10.03        54,588,819        2.07%        13.65% to 12.21%     

2011

     0.95% to 2.20%        4,001,635        14.65 to 8.93        55,628,696        1.52%        2.13% to 0.85%     

2010

     0.95% to 2.20%        4,808,008        14.35 to 8.86        65,536,631        1.51%        13.06% to 11.64%     

2009

     0.95% to 2.20%        5,855,561        12.69 to 7.94        70,573,993        4.88%        16.97% to 15.50%     

VP Income & Growth Fund - Class II (ACVIG2)

2013

     1.50% to 2.60%        71,691        17.13 to 15.03        1,168,018        1.97%        33.45% to 31.96%     

2012

     1.50% to 2.60%        81,372        12.84 to 11.39        999,407        1.82%        12.74% to 11.47%     

2011

     1.50% to 2.60%        97,513        11.39 to 10.22        1,068,862        1.26%        1.32% to 0.19%     

2010

     1.50% to 2.60%        139,202        11.24 to 10.20        1,507,703        1.25%        12.15% to 10.90%     

2009

     1.50% to 2.60%        163,644        10.02 to 9.19        1,589,419        4.41%        16.01% to 14.71%     

American Century VP Inflation Protection Fund - Class II (ACVIP2)

2013

     0.95% to 2.60%        3,014,960        13.96 to 11.67        41,310,100        1.64%        -9.35% to -10.86%     

2012

     0.95% to 2.60%        4,443,914        15.40 to 13.09        67,281,061        2.41%        6.36% to 4.59%     

2011

     0.95% to 2.60%        4,977,859        14.47 to 12.51        70,999,847        3.96%        10.69% to 8.85%     

2010

     0.95% to 2.45%        4,962,733        13.08 to 11.63        64,018,130        1.65%        4.12% to 2.54%     

2009

     0.95% to 2.45%        5,478,989        12.56 to 11.34        68,026,571        1.65%        9.17% to 7.51%     

VP International Fund - Class I (ACVI)

2013

     0.95% to 1.75%        91,893        20.65 to 14.63        1,869,497        1.64%        21.26% to 20.27%     

2012

     0.95% to 1.75%        89,644        17.03 to 12.17        1,506,233        0.91%        20.01% to 19.04%     

2011

     0.95% to 1.75%        111,870        14.19 to 10.22        1,570,384        1.36%        -12.88% to -13.58%     

2010

     0.95% to 1.75%        131,890        16.29 to 11.83        2,129,207        1.96%        12.22% to 11.31%     

2009

     0.95% to 1.75%        125,256        14.51 to 10.63        1,802,949        3.52%        32.49% to 31.42%     

VP International Fund - Class III (ACVI3)

2013

     1.60% to 1.75%        5,476        17.54 to 17.23        94,478        2.07%        20.45% to 20.27%     

2012

     1.60% to 1.75%        7,644        14.56 to 14.33        109,611        0.90%        19.22% to 19.04%     

2011

     1.60% to 1.75%        9,402        12.22 to 12.04        113,260        1.38%        -13.45% to -13.58%     

2010

     1.00% to 1.75%        10,476        14.88 to 13.93        146,144        1.91%        12.16% to 11.31%     

2009

     1.20% to 1.75%        11,571        13.06 to 12.51        145,033        3.59%        32.16% to 31.42%     

VP Mid Cap Value Fund - Class I (ACVMV1)

2013

     0.95% to 2.20%        892,688        17.85 to 16.19        15,722,506        1.22%        28.88% to 27.25%     

2012

     0.95% to 2.20%        851,917        13.85 to 12.72        11,680,827        1.99%        15.22% to 13.76%     

2011

     0.95% to 2.20%        958,698        12.02 to 11.18        11,406,526        1.35%        -1.63% to -2.87%     

2010

     0.95% to 2.20%        914,061        12.22 to 11.51        11,085,155        2.17%        18.12% to 16.63%     

2009

     0.95% to 2.70%        1,084,995        10.34 to 11.51        11,196,510        3.66%        28.71% to 26.35%     

VP Mid Cap Value Fund - Class II (ACVMV2)

2013

     1.25% to 2.25%        23,740        20.76 to 19.01        476,194        1.06%        28.28% to 26.98%     

2012

     1.25% to 2.25%        28,445        16.18 to 14.97        445,290        1.85%        14.77% to 13.61%     

2011

     1.25% to 2.25%        33,862        13.17 to 14.10        461,157        1.16%        -2.07% to -3.06%     

2010

     1.25% to 2.25%        38,845        14.40 to 13.59        543,686        2.12%        17.46% to 16.28%     

2009

     1.25% to 2.25%        35,520        12.26 to 11.69        426,241        3.66%        28.18% to 26.90%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VP Ultra(R) Fund - Class I (ACVU1)

2013

     1.75%        1,197        $ 15.59      $ 18,664        0.52%        34.68%    

2012

     1.75%        1,197        11.58        13,858        0.00%        11.93%     

2011

     1.75%        22,767        10.34        235,497        0.00%        -0.70%     

2010

     1.75%        23,615        10.42        245,986        0.04%        14.05%     

2009

     1.60% to 1.75%        3,041        9.24 to 9.13        27,971        0.46%        32.33% to 32.13%     

VP Value Fund - Class I (ACVV)

2013

     0.95% to 1.30%        77,138        28.30 to 28.86        2,239,005        1.64%        30.48% to 30.01%     

2012

     0.95% to 1.30%        92,264        21.69 to 22.19        2,056,297        1.92%        13.50% to 13.04%     

2011

     0.95% to 1.65%        108,358        19.11 to 18.37        2,127,340        2.00%        0.05% to -0.65%     

2010

     0.95% to 1.30%        117,661        19.10 to 19.69        2,315,963        1.66%        11.49% to 11.87%     

2009

     0.95% to 2.30%        10,383,543        17.00 to 13.79        178,152,843        5.83%        18.72% to 16.99%     

VP Value Fund - Class II (ACVV2)

2009

     1.50% to 2.60%        358,036        11.75 to 10.78        4,107,489        5.56%        17.93% to 16.61%     

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

2013

     0.95% to 2.25%        1,241,395        25.02 to 21.44        30,398,885        1.10%        39.38% to 37.55%     

2012

     0.95% to 2.25%        1,365,131        17.95 to 15.59        24,024,025        0.44%        14.64% to 13.13%     

2011

     0.95% to 2.25%        1,559,234        15.66 to 13.78        23,990,069        0.63%        -0.39% to -1.70%     

2010

     0.95% to 2.25%        1,716,152        15.72 to 14.02        26,538,538        0.64%        24.63% to 23.00%     

2009

     0.95% to 2.25%        2,276,941        12.61 to 11.40        28,341,084        2.39%        23.84% to 22.21%     

Appreciation Portfolio - Initial Shares (DCAP)

2013

     0.95% to 2.25%        3,076,919        23.06 to 13.19        66,538,642        1.95%        19.95% to 18.38%     

2012

     0.95% to 2.25%        3,631,658        19.22 to 11.14        65,335,071        3.66%        9.38% to 7.94%     

2011

     0.95% to 2.25%        3,822,632        17.57 to 10.32        63,435,211        1.64%        7.98% to 6.56%     

2010

     0.95% to 2.25%        3,905,064        16.28 to 9.69        60,048,211        2.21%        14.22% to 12.72%     

2009

     0.95% to 2.45%        4,306,442        14.25 to 9.10        57,939,394        2.62%        21.39% to 19.44%     

Appreciation Portfolio - Service Shares (DCAPS)

2013

     1.50% to 2.60%        72,014        16.58 to 14.54        1,134,640        1.70%        19.01% to 17.68%     

2012

     1.50% to 2.60%        88,355        13.93 to 12.35        1,180,325        3.20%        8.48% to 7.27%     

2011

     1.50% to 2.60%        111,004        12.84 to 11.52        1,372,470        1.60%        7.11% to 5.92%     

2010

     1.50% to 2.60%        139,376        11.99 to 10.87        1,621,785        2.02%        13.32% to 12.06%     

2009

     1.50% to 2.60%        170,902        10.58 to 9.70        1,765,657        2.67%        20.40% to 19.05%     

Opportunistic Small Cap Portfolio: Initial Shares (DSC)

2013

     0.95% to 1.55%        2,139        17.53 to 16.28        35,684        0.00%        47.14% to 46.25%     

2012

     0.95% to 1.55%        2,740        11.91 to 11.13        31,378        0.00%        19.42% to 18.69%     

2011

     0.95% to 1.55%        4,774        9.98 to 9.38        46,165        0.39%        -14.66% to -15.18%     

2010

     0.95% to 1.55%        8,165        11.69 to 11.06        92,805        0.89%        29.90% to 29.12%     

2009

     0.95% to 1.55%        17,873        9.00 to 8.57        157,759        1.58%        24.84% to 24.08%     

International Value Portfolio - Initial Shares (DVIV)

2013

     0.95% to 1.40%        536        17.82 to 16.86        9,342        2.32%        21.83% to 21.27%     

2012

     0.95% to 1.40%        4,058        14.62 to 13.90        59,124        3.45%        11.59% to 11.09%     

2011

     0.95% to 1.55%        6,452        13.10 to 12.32        83,013        2.09%        -19.25% to -19.74%     

2010

     0.95% to 1.55%        7,345        16.23 to 15.35        117,319        2.26%        3.46% to 2.84%     

2009

     0.95% to 1.55%        16,864        15.69 to 14.93        257,017        4.12%        29.73% to 28.94%     

Managed Tail Risk Fund II: Service Shares (FCA2S)

2013

     1.50% to 2.60%        21,807        12.83 to 11.25        266,679        0.80%        14.37% to 13.10%     

2012

     1.50% to 2.60%        30,241        11.21 to 9.95        325,343        0.26%        8.37% to 7.16%     

2011

     1.50% to 2.60%        50,099        10.35 to 9.28        496,562        0.47%        -6.92% to -7.96%     

2010

     1.50% to 2.60%        56,848        11.12 to 10.09        607,510        0.72%        11.31% to 10.07%     

2009

     1.50% to 2.20%        58,283        9.99 to 9.46        565,180        0.71%        11.57% to 10.77%     

High Income Bond Fund II - Service Shares (FHIBS)

2013

     1.50% to 2.60%        97,338        21.00 to 18.42        1,951,238        6.86%        5.13% to 3.95%     

2012

     1.50% to 2.60%        113,545        19.98 to 17.72        2,178,864        7.11%        12.59% to 11.33%     

2011

     1.50% to 2.60%        131,217        17.74 to 15.92        2,240,961        8.87%        3.35% to 2.20%     

2010

     1.50% to 2.60%        154,353        17.17 to 15.58        2,568,928        8.79%        12.67% to 11.41%     

2009

     1.50% to 2.60%        242,434        15.24 to 13.98        3,594,078        10.82%        50.19% to 48.52%     

Quality Bond Fund II - Primary Shares (FQB)

2013

     0.95% to 2.25%        4,981,035        18.53 to 15.82        89,634,995        4.37%        0.08% to -1.24%     

2012

     0.95% to 2.25%        5,823,950        18.52 to 16.02        104,920,544        4.21%        8.68% to 7.25%     

2011

     0.95% to 2.25%        6,746,552        17.04 to 14.94        112,074,014        5.41%        1.29% to -0.02%     

2010

     0.95% to 2.25%        8,254,166        16.82 to 14.94        135,697,381        5.10%        7.47% to 6.06%     

2009

     0.95% to 2.30%        10,095,439        15.65 to 13.44        154,419,893        6.54%        19.29% to 17.68%     

Quality Bond Fund II - Service Shares (FQBS)

2013

     1.50% to 2.60%        259,067        14.56 to 12.77        3,614,276        4.09%        -0.76% to -1.87%     

2012

     1.50% to 2.60%        284,778        14.67 to 13.01        4,020,956        3.90%        7.80% to 6.59%     

2011

     1.50% to 2.60%        345,820        13.61 to 12.21        4,539,246        5.21%        0.46% to -0.65%     

2010

     1.50% to 2.60%        439,803        13.55 to 12.29        5,785,519        4.99%        6.66% to 5.47%     

2009

     1.50% to 2.60%        538,177        12.70 to 11.65        6,667,702        6.25%        18.35% to 17.03%     

Contrafund(R)Portfolio - Service Class 2 (FC2)

2009

     1.50% to 2.60%        871,508        13.56 to 12.44        11,508,587        1.15%        33.44% to 31.95%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Value Strategies Portfolio - Service Class 2 (FVSS2)

2013

     1.50% to 2.60%        34,351      $  20.69 to $ 18.15      $ 679,463        0.65%        28.23% to 26.80%     

2012

     1.50% to 2.60%        42,219        16.14 to 14.31        656,663        0.33%        25.15% to 23.75%     

2011

     1.50% to 2.60%        61,512        12.89 to 11.57        769,295        0.67%        -10.40% to -11.40%     

2010

     1.50% to 2.60%        76,877        14.39 to 13.05        1,076,207        0.26%        24.44% to 23.06%     

2009

     1.50% to 2.60%        107,421        11.56 to 10.61        1,209,103        0.34%        54.80% to 53.07%     

VIP Contrafund(R) Portfolio - Service Class (FCS)

2013

     0.95% to 1.35%        465,436        31.35 to 29.45        14,229,522        0.97%        29.90% to 29.38%     

2012

     0.95% to 1.35%        507,700        24.13 to 22.76        11,968,609        1.26%        15.20% to -14.72%     

2011

     0.95% to 1.35%        545,334        20.95 to 19.84        11,175,941        0.87%        -3.56% to -3.92%     

2010

     0.95% to 1.35%        627,694        21.72 to 20.65        13,355,641        0.09%        15.96% to 15.5%     

2009

     0.95% to 2.40%        21,380,872        18.73 to 10.26        389,004,147        1.25%        34.38% to 32.41%     

VIP Energy Portfolio - Service Class 2 (FNRS2)

2013

     0.95% to 2.05%        1,355,265        12.65 to 11.61        17,002,586        0.67%        22.97% to 21.60%     

2012

     0.95% to 2.20%        1,612,415        10.29 to 9.45        16,496,248        0.67%        3.74% to 2.42%     

2011

     0.95% to 2.20%        2,263,082        9.92 to 9.23        22,325,584        0.76%        -6.10% to -7.28%     

2010

     0.95% to 2.20%        2,554,064        10.56 to 9.95        26,870,031        0.36%        18.03% to 16.54%     

2009

     0.95% to 2.70%        2,882,823        8.95 to 13.58        25,998,693        0.23%        46.17% to 43.18%     

VIP Equity-Income Portfolio - Service Class (FEIS)

2013

     0.95% to 2.25%        10,635,351        21.75 to 15.60        228,824,899        2.33%        26.80% to 25.13%     

2012

     0.95% to 2.25%        12,322,376        17.15 to 12.46        209,206,883        2.88%        16.07% to 14.55%     

2011

     0.95% to 2.25%        14,580,614        14.78 to 10.88        213,749,641        2.23%        -0.10% to -1.41%     

2010

     0.95% to 2.25%        17,468,381        14.79 to 11.04        256,820,879        1.64%        14.00% to 12.50%     

2009

     0.95% to 2.70%        21,467,817        12.97 to 9.35        276,837,475        2.09%        28.80% to 26.30%     

VIP Equity-Income Portfolio - Service Class 2 (FEI2)

2013

     1.50% to 2.60%        317,752        16.52 to 14.49        5,053,731        2.19%        25.91% to 24.51%     

2012

     1.50% to 2.60%        368,868        13.12 to 11.64        4,675,223        2.73%        15.30% to 14.01%     

2011

     1.50% to 2.60%        459,405        11.38 to 10.21        5,066,400        2.05%        -0.85% to -1.96%     

2010

     1.50% to 2.60%        604,329        11.48 to 10.41        6,746,388        1.50%        13.19% to 11.93%     

2009

     1.50% to 2.60%        766,428        10.14 to 9.30        7,577,401        2.02%        27.94% to 26.51%     

VIP Freedom Fund 2010 Portfolio - Service Class (FF10S)

2013

     0.95% to 1.95%        760,965        14.18 to 13.12        10,654,276        1.56%        12.32% to 11.18%     

2012

     0.95% to 1.80%        805,672        12.63 to 11.92        10,064,363        1.67%        10.62% to 9.67%     

2011

     0.95% to 1.80%        915,875        11.41 to 10.87        10,333,207        2.19%        -1.23% to -2.08%     

2010

     0.95% to 1.80%        819,834        11.56 to 11.10        9,395,678        2.07%        11.67% to 10.71%     

2009

     0.95% to 2.05%        805,897        10.35 to 10.88        8,312,434        3.67%        22.97% to 21.54%     

VIP Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)

2013

     1.25% to 2.25%        4,548        15.10 to 13.83        64,626        1.40%        11.78% to 10.65%     

2012

     1.25% to 2.25%        4,864        13.51 to 12.50        62,155        1.74%        10.19% 9.07%     

2011

     1.25% to 2.25%        4,823        12.26 to 11.46        56,041        1.71%        -1.67% to -2.66%     

2010

     1.25% to 2.25%        5,528        12.47 to 11.77        65,998        2.04%        11.14% to 10.01%     

2009

     1.25% to 2.25%        2,327        11.22 to 10.7        25,849        4.06%        22.41% to 21.17%     

VIP Freedom Fund 2020 Portfolio - Service Class (FF20S)

2013

     0.95% to 1.85%        889,747        14.01 to 13.06        12,324,633        1.81%        14.85% to 13.81%     

2012

     0.95% to 1.95%        836,539        12.20 to 11.40        10,106,278        2.05%        12.11% to 10.98%     

2011

     0.95% to 1.95%        763,176        10.88 to 10.27        8,229,065        1.99%        -2.06% to -3.05%     

2010

     0.95% to 2.05%        767,233        11.11 to 10.54        8,458,325        2.30%        13.43% to 12.17%     

2009

     0.95% to 1.95%        660,383        9.79 to 9.43        6,433,356        3.47%        27.55% to 26.27%     

VIP Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)

2013

     1.25% to 2.25%        9,789        15.60 to 14.28        144,332        1.53%        14.19% to 13.03%     

2012

     1.25% to 2.25%        10,554        13.66 to 12.64        137,177        1.75%        11.65% to 10.52%     

2011

     1.25% to 2.25%        11,497        12.23 to 11.43        134,787        1.82%        -2.47% to -3.45%     

2010

     1.25% to 2.25%        12,701        12.55 to 11.84        153,663        1.97%        12.93% to 11.73%     

2009

     1.25% to 2.25%        13,725        11.11 to 10.60        148,069        4.25%        26.94% to 25.66%     

VIP Freedom Fund 2030 Portfolio - Service Class (FF30S)

2013

     0.95% to 1.80%        582,494        14.18 to 13.27        8,172,824        1.74%        20.34% to 19.31%     

2012

     0.95% to 1.80%        569,456        11.78 to 11.12        6,650,619        1.97%        14.38% to 13.40%     

2011

     0.95% to 1.80%        605,991        10.30 to 9.81        6,195,674        2.16%        -3.62% to -4.44%     

2010

     0.95% to 1.80%        478,176        10.69 to 10.26        5,078,635        2.50%        14.90% to 13.91%     

2009

     0.95% to 1.80%        357,399        9.30 to 9.01        3,312,351        2.28%        30.16% to 29.04%     

VIP Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)

2013

     1.25% to 2.25%        21,000        16.26 to 14.88        332,291        1.46%        19.89% to 18.68%     

2012

     1.25% to 2.25%        23,092        13.56 to 12.54        305,870        1.83%        13.74% to 12.58%     

2011

     1.25% to 2.25%        26,670        11.92 to 11.13        311,288        1.97%        -4.04% to -5.01%     

2010

     1.25% to 2.25%        29,732        12.42 to 11.73        363,175        1.74%        14.40% to 13.31%     

2009

     1.25% to 2.25%        33,564        10.86 to 10.35        359,536        2.04%        29.54% to 28.23%     

VIP Growth Opportunities Portfolio - Service Class (FGOS)

2013

     0.95% to 1.30%        73,114        17.09 to 15.69        1,172,662        0.19%        36.50% to 35.99%     

2012

     0.95% to 1.30%        83,048        12.52 to 11.53        977,697        0.34%        18.34% to 17.86%     

2011

     0.95% to 1.20%        65,159        10.58 to 9.92        650,728        0.05%        1.24% to 1.02%     

2010

     0.95% to 1.25%        73,468        10.45 to 9.76        727,853        0.00%        25.90% to 20.23%     

2009

     0.95% to 2.05%        2,823,689        8.54 to 5.68        23,519,320        0.37%        44.33% to 42.73%     

VIP Growth Portfolio - Service Class (FGS)

2013

     0.95% to 2.20%        8,522,611        21.64 to 11.81        174,182,549        0.19%        34.91% to 33.21%     

2012

     0.95% to 2.20%        9,695,757        16.04 to 8.87        147,152,178        0.47%        13.45% to 12.02%     

2011

     0.95% to 2.20%        11,526,597        14.14 to 7.92        154,239,022        0.24%        -0.81% to -2.06%     

2010

     0.95% to 2.20%        13,259,948        14.25 to 8.08        179,671,360        0.17%        22.88% to 21.33%     

2009

     0.95% to 2.30%        15,488,178        11.60 to 6.92        170,635,502        0.32%        26.93% to 24.94%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VIP Growth Portfolio - Service Class 2 (FG2)

2013

     1.50% to 2.60%        174,860      $  15.93 to $ 13.97      $ 2,672,773        0.05%        33.96% to 32.47%     

2012

     1.50% to 2.60%        189,748        11.89 to 10.55        2,176,630        0.33%        12.68% to 11.42%     

2011

     1.50% to 2.60%        224,696        10.55 to 9.47        2,294,256        0.12%        -1.53% to -2.63%     

2010

     1.50% to 2.60%        266,660        10.71 to 9.72        2,776,071        0.03%        22.01% to 20.64%     

2009

     1.50% to 2.60%        341,722        8.78 to 8.06        2,922,370        0.19%        26.05% to 24.64%     

VIP High Income Portfolio - Service Class (FHIS)

2013

     0.95% to 2.20%        2,423,871        15.89 to 12.50        39,104,663        5.44%        4.87% to 3.54%     

2012

     0.95% to 2.20%        2,889,322        15.15 to 12.07        44,514,658        5.45%        13.11% to 11.68%     

2011

     0.95% to 2.20%        3,441,039        13.40 to 10.81        46,947,223        6.15%        2.94% to 1.65%     

2010

     0.95% to 2.20%        4,355,171        13.01 to 10.63        57,786,511        7.15%        12.71% to 11.29%     

2009

     0.95% to 2.45%        5,487,281        11.55 to 10.06        64,565,193        7.36%        42.41% to 40.23%     

VIP High Income Portfolio - Service Class R (FHISR)

2013

     0.95% to 2.20%        3,786,746        14.31 to 13.15        53,482,489        6.16%        4.92% to 3.59%     

2012

     0.95% to 2.20%        4,789,971        13.64 to 12.69        64,630,282        6.17%        13.01% to 11.58%     

2011

     0.95% to 2.00%        4,959,858        12.07 to 11.48        59,333,297        7.93%        3.01% to 1.92%     

2010

     0.95% to 2.20%        5,516,431        11.72 to 11.18        64,197,429        9.52%        12.58% to 11.16%     

2009

     0.95% to 2.45%        4,212,440        10.41 to 9.99        43,660,512        8.36%        42.56% to 40.38%     

VIP Investment Grade Bond Portfolio - Service Class (FIGBS)

2013

     0.95% to 2.20%        3,020,099        14.31 to 12.49        42,470,243        2.06%        -2.82% to -4.05%     

2012

     0.95% to 2.20%        3,975,975        14.72 to 13.02        57,606,006        2.14%        4.76% to 3.44%     

2011

     0.95% to 2.05%        4,529,810        14.05 to 12.77        62,756,257        3.03%        6.19% to 5.02%     

2010

     0.95% to 2.20%        5,555,592        13.23 to 12.01        72,621,963        3.21%        6.66% to 5.31%     

2009

     0.95% to 2.40%        6,353,808        12.41 to 12.21        78,092,553        8.20%        14.57% to 12.92%     

VIP Mid Cap Portfolio - Service Class (FMCS)

2013

     0.95% to 2.20%        2,291,393        16.22 to 14.71        36,702,772        0.39%        34.77% to 33.07%     

2012

     0.95% to 2.20%        2,847,168        16.07 to 11.06        33,890,768        0.48%        13.66% to 12.22%     

2011

     0.95% to 2.20%        3,553,566        10.59 to 9.85        37,259,289        0.13%        -11.56% to -12.68%     

2010

     0.95% to 2.20%        4,461,090        11.97 to 11.28        53,007,856        0.29%        27.48% to 25.87%     

2009

     0.95% to 2.40%        3,928,131        9.39 to 12.10        36,894,241        0.64%        38.69% to 36.50%     

VIP Mid Cap Portfolio - Service Class 2 (FMC2)

2013

     1.50% to 2.60%        185,686        28.81 to 25.27        5,132,066        0.27%        33.83% to 32.34%     

2012

     1.50% to 2.60%        225,619        21.53 to 19.10        4,685,563        0.38%        12.84% to 11.58%     

2011

     1.50% to 2.60%        257,566        19.08 to 17.12        4,757,756        0.02%        -12.19% to -13.17%     

2010

     1.50% to 2.60%        352,256        21.73 to 19.71        7,431,732        0.10%        26.64% to 25.23%     

2009

     1.50% to 2.60%        463,361        17.16 to 15.74        7,739,724        0.34%        37.66% to 36.12%     

VIP Overseas Portfolio - Service Class (FOS)

2013

     0.95% to 2.20%        847,048        19.28 to 13.48        16,317,408        1.25%        29.14% to 27.51%     

2012

     0.95% to 2.20%        979,779        14.93 to 10.57        14,631,223        1.78%        19.39% to 17.88%     

2011

     0.95% to 2.20%        1,153,475        12.51 to 8.96        14,432,905        1.18%        -18.01% to -19.05%     

2010

     0.95% to 2.20%        1,404,565        15.25 to 11.07        21,449,069        1.25%        11.92% to 10.51%     

2009

     0.95% to 2.20%        1,697,629        13.63 to 10.02        23,195,540        1.92%        25.24% to 23.66%     

VIP Overseas Portfolio - Service Class 2 R (FO2R)

2013

     1.50% to 2.60%        160,369        17.93 to 15.73        2,767,075        1.13%        28.20% to 26.77%     

2012

     1.50% to 2.60%        197,646        13.98 to 12.40        2,673,230        1.67%        18.64% to 17.31%     

2011

     1.50% to 2.60%        239,221        11.79 to 10.57        2,734,899        1.10%        -18.63% to -19.54%     

2010

     1.50% to 2.60%        299,579        14.49 to 13.14        4,222,224        1.05%        11.13% to 9.90%     

2009

     1.50% to 2.60%        421,604        13.03 to 11.96        5,354,781        1.89%        24.31% to 22.92%     

VIP Overseas Portfolio - Service Class R (FOSR)

2013

     0.95% to 2.20%        1,432,190        19.45 to 16.77        27,301,447        1.28%        29.06% to 27.44%     

2012

     0.95% to 2.20%        1,616,873        15.07 to 13.16        23,901,516        1.78%        19.52% to 18.01%     

2011

     0.95% to 2.20%        1,944,416        12.61 to 11.15        24,106,625        1.18%        -18.09% to -19.12%     

2010

     0.95% to 2.20%        2,367,047        15.40 to 13.79        35,872,048        1.21%        11.94% to 10.53%     

2009

     0.95% to 2.45%        3,074,483        13.75 to 12.23        41,693,409        1.92%        25.29% to 23.15%     

VIP Value Strategies Portfolio - Service Class (FVSS)

2013

     0.95% to 2.20%        579,506        22.33 to 19.25        12,648,432        0.79%        29.21% to 27.58%     

2012

     0.95% to 2.05%        680,153        17.28 to 15.34        11,549,104        0.50%        25.89% to 24.49%     

2011

     0.95% to 2.05%        774,871        13.73 to 12.32        10,470,435        0.80%        -9.71% to -10.71%     

2010

     0.95% to 2.05%        1,026,381        15.21 to 13.80        15,377,908        0.39%        25.25% to 23.86%     

2009

     0.95% to 2.20%        1,328,090        12.14 to 11.01        15,897,453        0.50%        55.90% to 53.93%     

Franklin Income Securities Fund - Class 2 (FTVIS2)

2013

     0.95% to 2.20%        3,963,678        15.28 to 13.86        59,562,946        6.38%        12.86% to 11.44%     

2012

     0.95% to 2.20%        3,981,931        13.54 to 12.44        53,095,603        6.44%        11.58% to 10.17%     

2011

     0.95% to 2.20%        4,067,800        12.13 to 11.29        48,728,371        5.83%        1.41% to 0.14%     

2010

     0.95% to 2.20%        4,370,430        11.96 to 11.27        51,734,546        6.48%        11.60% to 10.20%     

2009

     0.95% to 2.25%        4,609,866        10.72 to 10.20        48,998,095        7.73%        34.31% to 32.46%     

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

2013

     1.25% to 2.25%        43,332        18.78 to 16.11        786,584        1.51%        28.07% to 26.77%     

2012

     1.25% to 2.25%        47,724        14.66 to 12.71        676,912        1.62%        10.56% to 9.44%     

2011

     1.25% to 2.25%        55,911        13.26 to 11.61        717,755        1.48%        4.67% to 3.62%     

2010

     1.25% to 2.25%        55,395        12.67 to 11.21        678,413        1.65%        19.09% to 17.95%     

2009

     1.25% to 2.25%        63,352        10.64 to 9.50        653,229        1.46%        15.86% to 14.7%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

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

2013

     0.95% to 2.20%        924,905      $  16.01 to $ 14.52      $ 14,759,707        1.28%        34.94% to 33.24%     

2012

     0.95% to 2.20%        1,017,605        11.86 to 10.90        12,077,628        0.77%        17.26% to 15.78%     

2011

     0.95% to 1.85%        1,387,527        10.12 to 9.61        14,108,091        0.68%        -4.67% to -5.54%     

2010

     0.95% to 1.95%        2,143,936        10.61 to 10.12        22,914,997        0.79%        27.00% to 25.72%     

2009

     0.95% to 2.30%        2,007,761        8.36 to 10.20        17,042,279        1.45%        27.93% to 26.01%     

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

2013

     0.95% to 2.05%        521,050        11.65 to 10.70        6,009,116        1.69%        -1.91% to -3.00%     

2012

     0.95% to 2.15%        878,045        17.34 to 10.95        10,359,629        1.46%        12.08% to 10.72%     

2011

     0.95% to 2.15%        715,467        10.60 to 9.89        7,517,269        0.95%        -16.66% to -17.67%     

2010

     0.95% to 2.20%        1,121,698        12.72 to 11.99        14,177,454        1.35%        16.40% to 14.93%     

2009

     0.95% to 2.20%        1,279,742        10.93 to 10.43        14,037,162        2.63%        70.99% to 68.84%     

Templeton Foreign Securities Fund - Class 2 (TIF2)

2013

     1.25%        1,399        19.86        27,781        2.29%        21.43%     

2012

     1.25%        1,524        16.35        24,909        2.94%        16.75%     

2011

     1.25%        1,784        14.00        24,991        1.65%        -11.75%     

2010

     1.25%        1,946        15.87        30,887        1.84%        7.03%     

2009

     1.25%        2,121        14.83        31,449        4.37%        35.33%     

Templeton Foreign Securities Fund - Class 3 (TIF3)

2013

     0.95% to 1.95%        698,073        13.54 to 12.53        9,344,201        2.25%        21.81% to 20.58%     

2012

     0.95% to 2.15%        799,025        11.11 to 10.25        8,809,472        2.93%        17.18% to 15.75%     

2011

     0.95% to 2.15%        745,150        9.49 to 8.85        7,018,430        1.69%        -11.53% to -12.60%     

2010

     0.95% to 2.20%        798,014        10.72 to 10.10        8,510,162        1.47%        7.38% to 6.02%     

2009

     0.95% to 2.25%        1,082,482        9.98 to 11.67        10,823,879        3.40%        35.89% to 33.94%     

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

2013

     0.95% to 2.20%        2,377,530        18.19 to 16.50        42,672,358        4.72%        0.67% to -0.60%     

2012

     0.95% to 2.20%        2,803,406        18.07 to 16.60        50,081,035        6.30%        13.97% to 12.52%     

2011

     0.95% to 2.20%        3,466,837        15.85 to 14.75        54,408,865        5.60%        -1.77% to -3.01%     

2010

     0.95% to 2.20%        3,633,038        16.14 to 15.21        58,145,726        1.36%        13.29% to 11.86%     

2009

     0.95% to 2.70%        3,437,497        14.25 to 13.76        48,665,063        13.65%        17.56% to 15.54%     

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

2013

     0.95% to 2.05%        478,758        12.73 to 11.95        6,019,658        12.55%        22.59% to 21.23%     

2012

     0.95% to 1.95%        345,064        10.38 to 9.90        3,546,176        3.07%        14.23% to 13.08%     

2011

     0.95% to 1.95%        452,981        9.09 to 8.76        4,084,106        0.01%        -2.48% to -3.46%     

2010

     0.95% to 2.20%        478,144        9.32 to 9.01        4,419,657        2.32%        9.21% to 7.83%     

2009

     0.95% to 2.40%        392,225        8.53 to 8.31        3,326,554        4.20%        29.01% to 26.98%     

Short Duration Bond Portfolio - I Class Shares (AMTB)

2013

     0.95% to 2.35%        2,364,681        11.10 to 9.54        25,702,062        2.57%        -0.34% to -1.75%     

2012

     0.95% to 2.35%        1,803,378        11.14 to 9.71        19,676,659        2.89%        3.61% to 2.14%     

2011

     0.95% to 2.35%        2,113,398        10.75 to 9.50        22,278,758        3.64%        -0.66% to -2.06%     

2010

     0.95% to 2.35%        2,809,299        10.82 to 9.70        29,875,050        5.23%        4.28% to 2.81%     

2009

     0.95% to 2.35%        2,844,136        10.38 to 9.44        29,105,787        7.43%        12.25% to 10.66%     

Guardian Portfolio - I Class Shares (AMGP)

2013

     1.60% to 1.75%        12,897        25.21 to 16.89        231,416        0.83%        36.60% to 36.39%     

2012

     1.60% to 1.75%        13,209        18.45 to 12.39        173,493        0.26%        10.92% to 10.75%     

2011

     1.60% to 1.75%        15,702        16.64 to 11.18        184,483        0.47%        -4.49% to -4.64%     

2010

     1.60% to 1.75%        16,109        17.42 to 11.73        199,575        0.32%        17.11% to 16.93%     

2009

     1.60% to 1.75%        24,926        14.87 to 10.03        282,823        0.01%        27.61% to 27.42%     

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

2013

     1.60% to 1.75%        13,643        28.72 to 20.15        295,847        0.00%        30.49% to 30.29%     

2012

     1.60% to 1.75%        14,902        22.01 to 15.46        248,502        0.00%        10.61% to 10.44%     

2011

     1.60% to 1.75%        17,132        19.90 to 14.00        264,073        0.00%        -1.13% to -1.28%     

2010

     0.95% to 1.75%        25,562        25.01 to 14.18        418,065        0.00%        27.87% to 26.84%     

2009

     1.60% to 1.75%        27,121        15.84 to 11.18        349,144        0.00%        29.49% to 29.3%     

Advisers Management Trust: Large Cap Value Portfolio - Class I (AMTP)

2013

     1.60% to 1.75%        2,653        20.10 to 14.94        46,229        1.16%        29.04% to 28.84%     

2012

     1.60% to 1.75%        4,405        15.57 to 11.59        55,896        0.45%        14.73% to 14.55%     

2011

     1.60% to 1.75%        4,144        13.58 to 10.12        46,304        0.00%        -12.77% to -12.91%     

2010

     1.10% to 1.75%        4,601        16.56 to 11.62        62,147        0.77%        14.39% to 13.64%     

2009

     1.60% to 1.75%        49,029        13.67 to 10.23        508,356        0.04%        53.58% to 53.34%     

Advisers Management Trust: Mid Cap Intrinsic Value Portfolio - Class S (AMRS)

2011

     1.25%        244        11.39        2,783        0.35%        -7.87%     

2010

     1.25%        331        12.35        4,090        0.02%        24.44%     

2009

     1.25%        422        9.93        4,191        0.00%        44.33%     

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

2013

     0.95% to 2.60%        124,086        12.80 to 15.50        1,704,978        0.00%        44.45% to 42.05%     

2012

     0.95% to 2.60%        102,750        8.86 to 10.91        1,014,871        0.00%        7.78% to 5.99%     

2011

     0.95% to 2.60%        137,510        8.22 to 10.30        1,253,000        0.00%        -2.00% to -3.63%     

2010

     0.95% to 2.60%        185,434        8.39 to 10.69        1,711,120        0.00%        18.48% to 16.50%     

2009

     0.95% to 2.60%        189,090        7.08 to 9.17        1,482,626        0.00%        21.59% to 19.56%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Socially Responsive Portfolio - I Class Shares (AMSRS)

2013

     0.95% to 2.20%        582,312      $  19.64 to 17.37      $ 11,268,503        0.73%        36.30% to 34.58%     

2012

     0.95% to 2.10%        537,817        14.41 to 13.02        7,663,164        0.23%        9.92% to 8.64%     

2011

     0.95% to 2.45%        634,052        13.11 to 11.66        8,224,270        0.31%        -4.00% to -5.45%     

2010

     0.95% to 2.45%        717,855        13.66 to 12.34        9,712,445        0.03%        21.69% to 19.85%     

2009

     0.95% to 2.45%        315,329        11.22 to 10.29        3,523,342        2.09%        30.18% to 28.21%     

Oppenheimer Capital Appreciation Fund/VA - Service Class (OVCAFS)

2009

     1.50% to 2.60%        366,282        9.90 to 9.09        3,549,018        0.04%        41.99% to 40.41%     

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

2013

     0.95% to 1.35%        145,166        21.61 to 22.31        3,322,094        0.99%        28.51% to 27.99%     

2012

     0.95% to 1.35%        156,559        16.82 to 17.43        2,791,859        0.66%        13.03% to -12.60%     

2011

     0.95% to 1.35%        178,265        14.88 to 15.48        2,815,319        0.37%        -2.09% to -2.46%     

2010

     0.95% to 1.35%        209,242        15.20 to 15.87        3,373,897        0.20%        8.42% to 7.89%     

2009

     0.95% to 2.45%        10,161,530        14.02 to 9.58        144,577,862        0.33%        43.15% to 40.77%     

Global Securities Fund/VA - Class 3 (OVGS3)

2013

     0.95% to 2.60%        2,825,641        30.34 to 25.36        83,835,381        1.38%        26.13% to 24.03%     

2012

     0.95% to 2.60%        3,103,349        24.05 to 20.45        73,128,193        2.16%        20.07% to 18.07%     

2011

     0.95% to 2.60%        3,682,904        20.03 to 17.32        72,453,662        1.30%        -9.14% to -10.65%     

2010

     0.95% to 2.60%        4,418,360        22.05 to 19.38        95,853,925        1.49%        14.87% to 12.96%     

2009

     0.95% to 2.60%        5,462,572        19.19 to 17.16        103,265,246        2.26%        38.37% to 36.06%     

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

2013

     0.95% to 2.40%        2,608,469        19.31 to 15.78        49,006,436        1.39%        26.13% to 24.25%     

2012

     0.95% to 2.40%        3,050,182        22.92 to 12.70        45,550,676        2.16%        20.11% to 18.35%     

2011

     0.95% to 2.40%        3,666,878        12.75 to 10.73        45,704,064        1.34%        -9.16% to -10.49%     

2010

     0.95% to 2.40%        4,726,587        14.03 to 11.99        64,970,455        1.50%        14.86% to 13.18%     

2009

     0.95% to 2.40%        5,899,391        12.22 to 10.59        70,940,440        2.32%        38.44% to 36.42%     

Global Securities Fund/VA - Service Class (OVGSS)

2013

     1.50% to 2.60%        73,423        21.24 to 18.63        1,498,522        1.22%        25.09% to 23.69%     

2012

     1.50% to 2.60%        85,619        16.98 to 15.06        1,402,134        1.90%        19.13% to 17.80%     

2011

     1.50% to 2.60%        125,525        14.25 to 12.79        1,737,120        1.14%        -9.90% to -10.90%     

2010

     1.50% to 2.60%        171,295        15.82 to 14.35        2,629,627        1.32%        13.97% to 12.70%     

2009

     1.50% to 2.60%        234,040        13.88 to 12.73        3,160,699        2.01%        37.26% to 35.73%     

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

2013

     0.95% to 2.25%        5,261,993        18.61 to 12.12        101,913,976        1.15%        30.52% to 28.81%     

2012

     0.95% to 2.25%        6,117,718        14.26 to 9.41        90,848,370        0.98%        15.76% to 14.24%     

2011

     0.95% to 2.25%        7,294,295        12.32 to 8.24        93,789,052        0.88%        -0.97% to -2.26%     

2010

     0.95% to 2.25%        8,884,716        12.44 to 8.43        115,518,627        1.15%        15.01% to 13.50%     

2009

     0.95% to 2.30%        10,897,405        10.81 to 8.75        123,287,525        1.97%        27.07% to 25.17%     

Main Street Fund(R)/VA - Service Class (OVGIS)

2013

     1.50% to 2.60%        166,445        16.52 to 14.49        2,676,545        0.86%        29.47% to 28.02%     

2012

     1.50% to 2.60%        197,383        12.76 to 11.32        2,448,732        0.66%        14.86% to 13.57%     

2011

     1.50% to 2.60%        233,999        11.11 to 9.96        2,533,407        0.61%        -1.81% to -2.90%     

2010

     1.50% to 2.60%        277,137        11.31 to 10.26        3,062,481        0.95%        14.09% to 12.82%     

2009

     1.50% to 2.60%        334,673        9.91 to 9.10        3,245,291        1.66%        26.07% to 24.67%     

Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)

2013

     0.95% to 1.85%        693,994        15.87 to 14.80        10,863,061        0.85%        39.68% to 38.41%     

2012

     0.95% to 1.85%        1,043,075        11.36 to 10.69        11,787,120        0.43%        16.86% to 15.80%     

2011

     0.95% to 1.85%        1,204,457        9.72 to 9.23        11,651,166        0.57%        -3.14% to -4.02%     

2010

     0.95% to 1.85%        930,790        10.04 to 9.62        9,283,938        0.57%        22.23% to 21.13%     

2009

     0.95% to 2.00%        1,073,093        8.21 to 10.63        8,820,680        0.86%        35.89% to 34.28%     

Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)

2013

     1.25%        7,696        22.66        174,347        0.67%        38.87%     

2012

     1.25%        10,227        16.31        166,865        0.33%        16.20%     

2011

     1.25%        11,138        14.04        156,394        0.41%        -3.60%     

2010

     1.25%        13,564        14.57        197,565        0.42%        21.48%     

2009

     1.25%        14,582        11.99        174,782        0.65%        35.17%     

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

2013

     0.95% to 2.25%        3,051,357        18.96 to 7.17        62,518,687        0.01%        34.69% to 32.93%     

2012

     0.95% to 2.25%        3,506,895        14.08 to 5.39        53,390,563        0.00%        15.34% to 13.82%     

2011

     0.95% to 2.25%        4,099,641        12.20 to 4.74        54,135,465        0.00%        0.08% to -1.17%     

2010

     0.95% to 2.25%        5,038,472        12.19 to 4.79        66,253,324        0.00%        26.26% to 24.60%     

2009

     0.95% to 2.25%        5,642,712        9.65 to 3.85        58,874,182        0.00%        31.35% to 29.62%     

Global Strategic Income Fund/VA: Non-service Shares (OVSB)

2013

     0.95% to 2.20%        466,186        10.05 to 9.90        4,676,428        5.83%        -1.08% to -2.33%     

2012

     0.95% to 1.75%        125,636        10.16 to 10.15        1,276,369        0.00%        1.62% to 1.47%      ****

Global Strategic Income Fund/VA: Service Shares (OVSBS)

2013

     1.50% to 2.60%        178,348        17.55 to 15.39        3,027,647        4.65%        -1.86% to -2.96%     

2012

     1.50% to 2.60%        199,380        17.88 to 15.86        3,458,755        5.83%        11.45% to 10.20%     

2011

     1.50% to 2.60%        235,323        16.04 to 14.39        3,665,294        2.78%        -0.86% to -1.96%     

2010

     1.50% to 2.60%        284,422        16.18 to 14.68        4,488,006        8.09%        13.05% to 11.79%     

2009

     1.50% to 2.60%        325,335        14.31 to 13.13        4,558,458        0.24%        16.63% to 15.33%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

All Asset Portfolio - Advisor Class (PMVAAD)

2013

     0.95% to 1.95%        522,258      $  10.56 to $ 10.38      $ 5,501,980        4.99%        -0.84% to -1.84%     

2012

     0.95% to 2.10%        345,476        10.65 to 10.57        3,675,070        5.57%        6.50% to 5.67%      ****

Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)

2013

     0.95% to 1.65%        423,279        12.23 to 11.83        5,126,025        1.67%        -7.45% to -8.11%     

2012

     0.95% to 1.85%        586,111        13.21 to 12.78        7,693,194        5.33%        4.23% to 3.28%     

2011

     0.95% to 2.20%        790,240        12.68 to 12.25        9,964,732        1.92%        7.39% to 6.04%     

2010

     0.95% to 1.75%        602,956        11.80 to 11.65        7,099,754        1.27%        8.33% to 7.46%     

2009

     0.95% to 1.90%        356,059        10.90 to 10.83        3,876,841        0.81%        8.97% to 8.27%      ****

Low Duration Portfolio - Advisor Class (PMVLAD)

2013

     0.95% to 2.20%        3,315,426        11.84 to 11.16        38,898,969        1.37%        -1.18% to -2.43%     

2012

     0.95% to 2.20%        3,531,011        11.98 to 11.44        42,000,403        1.80%        4.74% to 3.42%     

2011

     0.95% to 2.20%        3,301,266        11.44 to 11.06        37,584,910        1.58%        0.05% to -1.21%     

2010

     0.95% to 2.20%        2,894,543        11.44 to 11.20        32,987,611        1.57%        4.19% to 2.87%     

2009

     0.95% to 2.25%        1,622,430        10.98 to 10.88        17,783,700        1.43%        9.76% to 8.83%      ****

Real Return Portfolio - Administrative Class (PMVRRA)

2013

     0.95% to 1.30%        67,335        13.79 to 13.42        917,457        1.62%        -10.08% to -10.40%     

2012

     0.95% to 1.30%        79,167        15.33 to 14.98        1,201,582        1.05%        -7.73% to -7.31%     

2011

     0.95% to 1.30%        86,160        14.23 to 13.96        1,216,314        1.96%        10.57% to 10.27%     

2010

     0.95% to 1.30%        66,930        12.87 to 12.66        855,103        1.43%        6.91% to 6.53%     

2009

     0.95% to 1.30%        65,525        12.02 to 11.87        782,688        3.12%        17.27% to 16.95%     

Total Return Portfolio - Administrative Class (PMVTRA)

2013

     0.95% to 1.30%        103,230        15.16 to 14.76        1,546,318        2.14%        -2.89% to -3.23%     

2012

     0.95% to 1.30%        184,087        15.61 to 15.25        2,846,766        2.57%        -8.55% to -8.16%     

2011

     0.95% to 1.30%        189,504        14.38 to 14.10        2,705,068        2.62%        2.64% to 2.25%     

2010

     0.95% to 1.30%        209,787        14.01 to 13.79        2,920,948        2.41%        6.92% to 6.54%     

2009

     0.95% to 1.30%        188,936        13.08 to 12.92        2,460,265        5.11%        12.95% to 12.64%     

Total Return Portfolio - Advisor Class (PMVTRD)

2013

     0.95% to 2.20%        1,666,977        10.55 to 10.20        17,516,266        2.11%        -2.98% to -4.21%     

2012

     0.95% to 2.20%        1,553,315        10.88 to 10.65        16,852,755        2.46%        8.46% to 7.09%     

2011

     0.95% to 2.10%        619,895        10.03 to 9.95        6,207,984        1.64%        0.28% to -0.50%      ****

Putnam VT Growth and Income Fund - Class IB (PVGIB)

2013

     1.25%        808        16.79        13,573        1.67%        33.98%     

2012

     1.25%        877        12.53        10,993        1.72%        17.64%     

2011

     1.25%        950        10.65        10,123        1.25%        -5.83%     

2010

     1.25%        1,028        11.31        11,629        1.57%        12.90%     

2009

     1.25%        1,111        10.02        11,122        2.60%        28.19%     

VI American Franchise Fund - Series II Shares (ACEG2)

2013

     0.95% to 2.60%        228,562        13.39 to 14.10        3,279,415        0.22%        38.47% to 36.16%     

2012

     0.95% to 2.60%        188,672        9.67 to 10.36        2,031,028        0.00%        -3.31% to 10.44%      ****

2011

     1.50% to 2.60%        113,135        10.45 to 9.38        1,140,716        0.00%        -7.79% to -8.82%     

2010

     1.50% to 2.60%        138,423        11.34 to 10.29        1,517,174        0.00%        17.77% to 16.46%     

2009

     1.50% to 2.60%        181,324        9.63 to 8.83        1,694,443        0.00%        63.16% to 61.34%     

VI Comstock Fund - Series II Shares (ACC2)

2013

     1.50% to 2.60%        343,323        18.59 to 16.31        6,163,839        1.43%        33.62% to 32.13%     

2012

     1.50% to 2.60%        412,036        13.92 to 12.34        5,548,327        1.42%        17.14% to 15.83%     

2011

     1.50% to 2.60%        512,532        11.88 to 10.66        5,900,442        1.36%        -3.57% to -4.65%     

2010

     1.50% to 2.60%        647,015        12.32 to 11.18        7,741,763        0.14%        13.96% to 12.69%     

2009

     1.50% to 2.60%        821,709        10.81 to 9.92        8,659,295        4.31%        26.48% to 25.07%     

VI American Franchise Fund - Series I Shares (ACEG)

2013

     0.95% to 1.40%        4,408        13.45 to 13.34        59,050        0.44%        38.81% to 38.18%     

2012

     0.95% to 1.40%        4,630        9.69 to 9.66        44,799        0.00%        -3.13% to -3.43%      ****

Van Kampen V.I. Value Opportunities Fund: Series II Shares (AVBV2)

2011

     1.25%        6,785        9.47        64,249        0.61%        -4.60%     

2010

     1.25%        7,408        9.93        73,537        0.10%        5.60%     

2009

     1.25%        8,622        9.40        81,041        0.02%        45.89%     

VI Core Equity Fund - Series I Shares (AVGI)

2013

     0.95% to 1.55%        3,228        19.49 to 18.10        59,276        1.29%        28.02% to 27.25%     

2012

     0.95% to 1.55%        4,438        15.22 to 14.23        64,665        0.74%        12.80% to 12.11%     

2011

     0.95% to 1.55%        11,470        13.50 to 12.69        147,542        0.49%        -1.01% to -1.61%     

2010

     0.95% to 1.90%        37,621        13.63 to 12.50        487,965        0.97%        8.52% to 7.55%     

2009

     0.95% to 1.55%        41,016        12.56 to 11.96        497,604        2.30%        27.08% to 26.31%     

VI Core Equity Fund - Series II Shares (AVCE2)

2013

     1.50% to 2.50%        42,811        14.90 to 13.78        616,753        1.26%        27.00% to 25.71%     

2012

     1.50% to 2.50%        51,171        11.73 to 10.96        584,210        0.84%        11.91% to 10.77%     

2011

     1.50% to 2.50%        63,040        10.48 to 9.89        645,547        0.74%        -1.79% to -2.78%     

2010

     1.50% to 2.60%        77,258        10.67 to 10.13        807,804        0.75%        7.61% to 6.41%     

2009

     1.50% to 2.60%        113,102        9.92 to 9.52        1,105,384        1.48%        26.06% to 24.65%     

VI Equity and Income Fund - Series I Shares (IVKEI1)

2013

     0.95% to 1.70%        25,948        12.65 to 12.39        325,654        1.77%        23.99% to 23.06%     

2012

     0.95% to 1.55%        23,707        10.20 to 10.10        241,404        1.84%        11.50% to 10.83%     

2011

     0.95% to 1.55%        26,106        9.15 to 9.11        238,623        0.28%        -8.52% to -8.89%      ****

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

VI Global Health Care Fund - Series I Shares (IVHS)

2013

     0.95% to 1.20%        16,890      $  18.88 to $ 18.53      $ 315,457        0.75%        39.21% to 38.86%     

2012

     0.95% to 1.25%        13,126        13.57 to 13.30        176,151        0.00%        19.77% to 19.39%     

2011

     0.95% to 1.25%        7,570        11.33 to 11.14        84,962        0.00%        3.00% to 2.67%     

2010

     0.95% to 1.25%        9,435        11.00 to 10.85        103,057        0.00%        4.12% to 3.80%     

2009

     0.95% to 1.25%        11,235        10.55 to 10.44        117,816        0.40%        26.50% to 25.93%     

VI Global Real Estate Fund - Series I Shares (IVRE)

2013

     0.95% to 1.30%        23,003        11.96 to 11.65        271,759        3.07%        1.74% to 1.38%     

2012

     0.95% to 1.30%        32,559        11.76 to 11.49        378,685        0.57%        26.86% to 26.40%     

2011

     0.95% to 1.30%        31,564        9.27 to 9.09        289,925        3.29%        -7.39% to -7.72%     

2010

     0.95% to 1.30%        34,474        10.01 to 9.85        342,593        5.13%        16.22% to 15.81%     

2009

     0.95% to 1.30%        36,267        8.60 to 8.49        310,149        0.00%        30.30% to 29.82%     

Diversified Stock Fund Class A Shares (VYDS)

2013

     0.95% to 1.65%        223,117        17.41 to 15.63        3,768,623        0.62%        32.66% to 31.72%     

2012

     0.95% to 1.65%        248,424        13.13 to 11.87        3,167,471        0.95%        15.17% to 14.36%     

2011

     0.95% to 1.65%        294,187        11.40 to 10.38        3,264,930        0.64%        -7.71% to -8.36%     

2010

     0.95% to 1.70%        383,725        12.35 to 11.26        4,624,290        0.72%        11.28% to 10.44%     

2009

     0.95% to 2.05%        510,692        11.10 to 9.81        5,537,239        0.82%        25.85% to 24.28%     

Micro-Cap Portfolio - Investment Class (ROCMC)

2013

     0.95% to 1.25%        50,157        14.28 to 13.95        706,555        0.45%        19.84% to 19.47%     

2012

     0.95% to 1.25%        67,539        11.91 to 11.68        795,615        0.00%        6.53% to 6.28%     

2011

     0.95% to 1.25%        75,757        11.18 to 10.99        838,766        2.27%        -12.93% to -13.19%     

2010

     0.95% to 1.30%        83,270        12.84 to 12.63        1,061,105        2.04%        28.54% to 28.07%     

2009

     0.95% to 1.30%        78,868        9.97 to 9.85        781,980        0.00%        56.51% to 56.10%     

Variable Fund - Multi-Hedge Strategies (RVARS)

2013

     0.95% to 1.35%        23,432        9.93 to 9.91        232,386        0.00%        -0.68% to -0.95%      ****

SBL Fund - Series D (World Equity Income Series) (SBLD)

2013

     1.10% to 1.30%        19,296        11.69 to 11.51        225,180        0.00%        17.97% to 17.73%     

2012

     1.10% to 1.30%        17,262        9.91 to 9.78        170,809        0.00%        15.23% to 15.06%     

2011

     1.10% to 1.30%        26,678        8.60 to 8.50        228,895        0.00%        -16.67% to -16.91%     

2010

     1.10% to 1.30%        23,376        10.32 to 10.23        240,880        0.00%        14.23% to 14.01%     

2009

     1.10% to 1.30%        23,481        9.02 to 8.96        211,619        0.00%        17.91% to 18.21%     

SBL Fund - Series J (StylePlus Mid Growth Series) (SBLJ)

2013

     1.10% to 1.30%        11,982        13.23 to 13.03        158,422        0.00%        29.08% to 28.82%     

2012

     1.10% to 1.30%        12,558        10.25 to 10.12        128,481        0.00%        14.53% to 14.35%     

2011

     0.95% to 1.30%        15,074        9.03 to 8.85        134,874        0.00%        -5.25% to -5.55%     

2010

     0.95% to 1.30%        16,355        9.53 to 9.37        154,677        0.00%        22.83% to 22.37%     

2009

     0.95% to 1.30%        14,777        7.74 to 7.65        113,801        0.00%        42.54% to 42.19%     

Series N (Managed Asset Allocation Series) (SBLN)

2013

     0.95% to 1.30%        19,651        14.40 to 14.02        279,378        0.00%        13.24% to 12.84%     

2012

     0.95% to 1.30%        14,756        12.72 to 12.43        185,513        0.00%        12.02% to 11.64%     

2011

     1.10% to 1.25%        8,621        11.24 to 11.14        96,775        0.00%        -0.44% to -0.63%     

2010

     0.95% to 1.30%        12,170        11.37 to 11.19        137,282        0.00%        9.35% to 8.97%     

2009

     0.95% to 1.25%        14,169        10.38 to 10.27        146,319        0.00%        24.46% to 24.03%     

Series O (All Cap Value Series) (SBLO)

2013

     0.95% to 1.20%        23,292        15.37 to 15.08        353,805        0.00%        31.95% to 31.61%     

2012

     0.95% to 1.20%        24,139        11.65 to 11.46        278,378        0.00%        14.44% to 14.14%     

2011

     0.95% to 1.20%        76,596        10.18 to 10.04        774,297        0.00%        -5.30% to -5.55%     

2010

     0.95% to 1.30%        98,721        10.75 to 10.58        1,054,397        0.00%        15.33% to 14.94%     

2009

     0.95% to 1.30%        75,841        9.31 to 9.19        702,539        0.00%        31.87% to 31.29%     

Series P (High Yield Series) (SBLP)

2013

     0.95% to 1.30%        17,128        17.43 to 16.96        294,991        0.00%        6.36% to 5.99%     

2012

     0.95% to 1.30%        29,664        16.38 to 16.01        481,279        0.00%        13.75% to 13.39%     

2011

     0.95% to 1.30%        29,110        14.40 to 14.12        416,021        0.00%        -0.96% to -1.33%     

2010

     0.95% to 1.30%        29,311        14.54 to 14.31        423,441        0.00%        14.18% to 13.78%     

2009

     0.95% to 1.30%        35,166        12.72 to 12.56        445,532        0.00%        71.20% to 70.42%     

Series Q (Small Cap Value Series) (SBLQ)

2013

     0.95% to 1.30%        47,503        20.23 to 19.70        948,789        0.00%        35.49% to 35.02%     

2012

     0.95% to 1.30%        58,150        14.93 to 14.59        858,607        0.00%        18.30% to 17.95%     

2011

     0.95% to 1.30%        73,734        12.62 to 12.37        921,474        0.00%        -5.47% to -5.86%     

2010

     0.95% to 1.30%        82,673        13.35 to 13.14        1,095,848        0.00%        20.56% to 20.14%     

2009

     0.95% to 1.30%        63,451        11.06 to 10.92        697,437        0.00%        54.47% to 53.80%     

Series V (Mid Cap Value Series) (SBLV)

2013

     0.95% to 1.30%        127,816        17.93 to 17.45        2,262,464        0.00%        32.06% to 31.59%     

2012

     0.95% to 1.30%        161,868        13.58 to 13.26        2,173,908        0.00%        16.07% to 15.61%     

2011

     0.95% to 1.30%        165,613        11.70 to 11.47        1,920,046        0.00%        -8.38% to -8.75%     

2010

     0.95% to 1.30%        189,899        12.77 to 12.57        2,406,943        0.00%        16.51% to 16.11%     

2009

     0.95% to 1.30%        185,377        10.95 to 10.81        2,018,141        0.00%        42.58% to 42.05%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

SBL Fund - Series X (StylePlus Small Growth Series) (SBLX)

2013

     1.10%        15,693        $ 14.47      $ 227,078        0.00%        39.78%     

2012

     1.10% to 1.15%        8,905        10.35 to 10.32        92,155        0.00%        10.34% to 10.26%     

2011

     1.10% to 1.15%        8,735        9.38 to 9.36        81,932        0.00%        -3.10% to -3.01%     

2010

     0.95% to 1.15%        12,090        9.74 to 9.65        117,162        0.00%        28.68% to 28.41%     

2009

     0.95% to 1.15%        6,371        7.56 to 7.51        47,929        0.00%        33.81% to 33.63%     

SBL Fund - Series Y (StylePlus Large Growth Series) (SBLY)

2013

     1.10% to 1.25%        2,998        12.51 to 12.37        37,391        0.00%        26.86% to 26.67%     

2012

     1.10% to 1.25%        2,881        9.86 to 9.76        28,340        0.00%        9.43% to 9.29%     

2011

     1.10% to 1.25%        1,849        9.01 to 8.93        16,622        0.00%        -5.36% to -5.50%     

2010

     1.10% to 1.25%        2,191        9.52 to 9.45        20,806        0.00%        15.20% to 15.02%     

2009

     1.10% to 1.25%        3,045        8.25 to 8.20        25,093        0.00%        31.79% to 31.62%     

Blue Chip Growth Portfolio - II (TRBCG2)

2009

     0.95% to 1.95%        754,802        9.40 to 10.45        7,071,421        0.00%        40.44% to 38.86%     

Equity Income Portfolio - II (TREI2)

2009

     0.95% to 2.05%        1,708,614        8.81 to 8.46        15,026,299        1.55%        24.06% to 22.68%     

Health Sciences Portfolio - II (TRHS2)

2013

     0.95% to 2.60%        1,957,164        22.35 to 21.02        43,531,343        0.00%        49.08% to 46.60%     

2012

     0.95% to 2.60%        1,447,320        14.99 to 14.34        21,622,699        0.00%        29.75% to 27.59%     

2011

     0.95% to 2.60%        674,188        11.56 to 11.24        7,772,836        0.00%        9.34% to 7.52%     

2010

     0.95% to 1.95%        129,181        10.57 to 10.50        1,363,675        0.00%        5.69% to 4.98%      ****

Limited-Term Bond Portfolio - II (TRLT2)

2009

     1.25%        1,107        11.37        12,587        3.22%        6.01%     

VIP Trust - Global Hard Assets Fund- Service Class (VWHAS)

2013

     0.95% to 2.20%        418,215        10.56 to 10.34        4,403,224        0.54%        9.25% to 7.87%     

2012

     0.95% to 2.20%        327,050        9.66 to 9.58        3,156,795        1.06%        -3.37% to -4.19%      ****

VIP Trust Emerging Markets Fund - Initial Class (VWEM)

2013

     0.95% to 2.20%        703,220        27.98 to 31.91        26,019,673        1.67%        10.96% to 9.56%     

2012

     0.95% to 2.20%        905,469        25.22 to 29.13        30,746,409        0.00%        28.57% to 26.95%     

2011

     0.95% to 2.20%        475,910        19.62 to 22.95        11,979,501        1.09%        -26.44% to -27.37%     

2010

     0.95% to 2.20%        581,474        26.67 to 31.59        19,607,103        0.62%        25.64% to 24.05%     

2009

     0.95% to 2.20%        712,637        21.23 to 25.47        18,859,632        0.17%        111.15% to 108.49%     

VIP Trust Global Hard Assets Fund - Initial Class (VWHA)

2013

     0.95% to 2.60%        656,630        32.26 to 34.36        25,424,540        0.77%        9.48% to 7.66%     

2012

     0.95% to 2.60%        900,815        29.47 to 31.92        32,107,037        0.77%        2.40% to 0.69%     

2011

     0.95% to 2.05%        354,656        28.78 to 34.08        11,990,469        1.22%        -17.24% to -18.16%     

2010

     0.95% to 2.20%        412,231        34.78 to 40.90        16,848,636        0.37%        28.01% to 26.40%     

2009

     0.95% to 2.20%        473,719        27.17 to 32.36        14,993,036        0.27%        56.04% to 54.07%     

Variable Insurance Portfolios - Asset Strategy (WRASP)

2013

     0.95% to 2.25%        5,765,187        32.34 to 26.69        182,232,052        1.30%        23.94% to 22.32%     

2012

     0.95% to 2.25%        6,695,505        26.09 to 21.82        170,977,693        1.16%        18.04% to 16.49%     

2011

     0.95% to 2.25%        8,197,211        22.11 to 18.73        177,547,335        1.05%        -8.09% to -9.29%     

2010

     0.95% to 2.25%        10,423,052        24.05 to 20.65        245,715,762        1.10%        7.64% to 6.23%     

2009

     0.95% to 2.45%        12,278,354        22.34 to 19.55        268,795,979        0.37%        23.86% to 21.91%     

Variable Insurance Portfolios - Balanced (WRBP)

2013

     0.95% to 2.25%        2,598,391        20.07 to 16.63        51,059,224        1.46%        22.52% to 20.92%     

2012

     0.95% to 2.25%        2,832,072        16.38 to 13.76        45,485,972        1.50%        10.68% to 9.23%     

2011

     0.95% to 2.25%        3,231,584        14.80 to 12.59        46,983,411        1.52%        2.33% to 0.99%     

2010

     0.95% to 2.25%        4,034,607        14.47 to 12.47        57,336,407        1.99%        16.00% to 14.48%     

2009

     0.95% to 2.25%        4,701,582        12.47 to 11.09        57,583,672        2.05%        12.15% to 10.61%     

Variable Insurance Portfolios - Bond (WRBDP)

2013

     0.95% to 2.25%        4,392,785        16.24 to 13.26        69,801,032        3.56%        -3.02% to -4.29%     

2012

     0.95% to 2.25%        5,653,755        16.74 to 13.85        92,655,701        3.12%        4.77% to 3.39%     

2011

     0.95% to 2.25%        6,157,959        15.98 to 13.40        96,552,451        2.68%        6.29% to 4.90%     

2010

     0.95% to 2.25%        7,474,683        15.04 to 12.77        110,313,533        3.89%        5.03% to 3.65%     

2009

     0.95% to 2.45%        7,877,501        14.32 to 12.51        110,602,955        3.80%        6.15% to 4.56%     

Variable Insurance Portfolios - Core Equity (WRCEP)

2013

     0.95% to 2.25%        6,849,960        17.71 to 14.96        118,818,034        0.55%        32.24% to 30.51%     

2012

     0.95% to 2.25%        7,924,937        13.39 to 11.46        104,114,930        0.59%        17.47% to 15.93%     

2011

     0.95% to 2.25%        9,558,169        11.40 to 9.89        107,010,691        0.36%        0.70% to -0.62%     

2010

     0.95% to 2.25%        11,988,244        11.32 to 9.95        133,346,578        1.01%        19.75% to 18.18%     

2009

     0.95% to 2.45%        14,723,373        9.45 to 8.24        136,658,228        1.03%        22.84% to 20.83%     

Variable Insurance Portfolios - Dividend Opportunities (WRDIV)

2013

     0.95% to 2.25%        932,175        18.81 to 16.56        17,272,541        1.62%        28.38% to 26.70%     

2012

     0.95% to 2.25%        1,093,997        14.65 to 13.07        15,813,876        1.10%        12.10% to 10.63%     

2011

     0.95% to 2.25%        1,359,638        13.07 to 11.81        17,548,996        1.05%        -5.59% to -6.83%     

2010

     0.95% to 2.05%        1,654,847        13.85 to 12.86        22,638,229        1.15%        15.27% to 14.06%     

2009

     0.95% to 2.10%        1,974,176        12.01 to 11.16        23,409,402        1.00%        16.76% to 15.24%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Portfolios - Energy (WRENG)

2013

     0.95% to 2.25%        469,042      $  14.24 to $ 12.86      $ 6,583,998        0.00%        26.54% to 24.88%     

2012

     0.95% to 2.25%        580,041        11.25 to 10.30        6,448,904        0.00%        0.41% to -0.91%     

2011

     0.95% to 2.25%        805,071        11.20 to 10.40        8,933,064        0.00%        -9.94% to -11.12%     

2010

     0.95% to 2.25%        1,023,074        12.44 to 11.70        12,619,383        0.28%        20.80% to 19.21%     

2009

     0.95% to 2.25%        1,063,778        10.30 to 9.81        10,865,760        0.00%        39.15% to 37.32%     

Variable Insurance Portfolios - Global Bond (WRGBP)

2013

     0.95% to 2.25%        368,482        10.49 to 10.13        3,851,854        0.00%        0.78% to -0.54%     

2012

     0.95% to 2.25%        258,003        10.41 to 10.19        2,680,726        3.42%        5.40% to 4.01%     

2011

     0.95% to 2.25%        138,156        9.88 to 9.79        1,364,034        2.16%        -1.20% to -2.07%      ****

Variable Insurance Portfolios - Global Natural Resources (WRGNR)

2013

     0.95% to 2.25%        965,476        13.86 to 12.37        13,170,383        0.00%        6.78% to 5.38%     

2012

     0.95% to 2.25%        1,371,424        12.98 to 11.74        17,549,749        0.00%        0.91% to -0.41%     

2011

     0.95% to 2.25%        1,820,540        12.86 to 11.79        23,104,191        0.00%        -22.19% to -23.21%     

2010

     0.95% to 2.25%        2,580,151        16.53 to 15.35        42,109,755        0.00%        15.95% to 14.43%     

2009

     0.95% to 2.40%        3,338,506        14.25 to 13.30        46,986,034        0.00%        71.99% to 68.97%     

Variable Insurance Portfolios - Growth (WRGP)

2013

     0.95% to 2.25%        7,313,103        16.14 to 13.93        115,513,677        0.43%        35.16% to 33.39%     

2012

     0.95% to 2.25%        8,850,476        11.94 to 10.45        103,583,897        0.06%        11.67% to 10.20%     

2011

     0.95% to 2.25%        10,732,698        10.69 to 9.48        112,624,107        0.40%        1.16% to -0.17%     

2010

     0.95% to 2.25%        13,537,586        10.57 to 9.50        140,392,124        0.65%        11.51% to 10.05%     

2009

     0.95% to 2.40%        16,771,104        9.48 to 8.30        155,856,008        0.39%        25.87% to 23.89%     

Variable Insurance Portfolios - High Income (WRHIP)

2013

     0.95% to 2.25%        3,444,773        26.69 to 22.29        90,092,893        4.89%        9.45% to 8.01%     

2012

     0.95% to 2.25%        3,437,628        24.38 to 20.63        82,139,540        6.30%        17.51% to 15.97%     

2011

     0.95% to 2.25%        3,451,947        20.75 to 17.79        70,365,113        7.33%        4.26% to 2.90%     

2010

     0.95% to 2.25%        4,324,579        19.90 to 17.29        84,584,599        7.82%        13.77% to 12.28%     

2009

     0.95% to 2.45%        4,948,846        17.49 to 15.29        84,994,354        8.96%        45.03% to 42.85%     

Variable Insurance Portfolios - International Growth (WRIP)

2013

     0.95% to 2.25%        1,937,503        15.26 to 12.71        28,929,728        0.91%        18.09% to 16.54%     

2012

     0.95% to 2.25%        2,396,608        12.93 to 10.91        30,361,361        1.97%        16.93% to 15.39%     

2011

     0.95% to 2.25%        2,824,384        11.05 to 9.45        30,636,295        0.42%        -8.20% to -9.40%     

2010

     0.95% to 2.25%        3,816,483        12.04 to 10.43        45,080,282        0.99%        13.70% to 12.21%     

2009

     0.95% to 2.45%        4,678,629        10.59 to 9.23        48,546,792        1.53%        25.69% to 23.58%     

Variable Insurance Portfolios - International Core Equity (WRI2P)

2013

     0.95% to 2.05%        641,781        19.09 to 17.14        12,068,034        1.67%        23.73% to 22.35%     

2012

     0.95% to 2.25%        780,139        15.43 to 13.76        11,877,621        2.39%        12.25% to 10.77%     

2011

     0.95% to 2.05%        988,441        13.75 to 12.62        13,427,910        1.56%        -14.70% to -15.65%     

2010

     0.95% to 2.05%        1,234,813        16.11 to 14.96        19,738,384        1.41%        13.01% to 11.76%     

2009

     0.95% to 2.05%        1,454,572        14.26 to 13.39        20,676,076        3.48%        35.66% to 34.16%     

Variable Insurance Portfolios - Limited-Term Bond (WRLTBP)

2013

     0.95% to 2.00%        515,731        10.24 to 9.95        5,251,273        0.00%        -1.48% to -2.53%     

2012

     0.95% to 2.00%        494,224        10.39 to 10.21        5,120,924        4.09%        2.39% to 1.30%     

2011

     0.95% to 1.60%        233,219        10.15 to 10.11        2,364,729        2.12%        1.50% to 1.06%      ****

Variable Insurance Portfolios - Micro Cap Growth (WRMIC)

2013

     0.95% to 1.95%        214,062        25.13 to 22.79        5,302,156        0.00%        55.79% to 54.22%     

2012

     0.95% to 1.85%        237,238        16.13 to 14.91        3,779,957        0.00%        10.78% to 9.77%     

2011

     0.95% to 1.85%        269,527        14.56 to 13.58        3,876,651        0.00%        -7.89% to -8.73%     

2010

     0.95% to 2.00%        360,541        15.81 to 14.73        5,628,834        0.00%        39.52% to 38.04%     

2009

     0.95% to 2.05%        361,907        11.33 to 10.34        4,039,189        0.00%        39.95% to 38.19%     

Variable Insurance Portfolios - Mid Cap Growth (WRMCG)

2013

     0.95% to 2.25%        734,887        23.23 to 20.74        16,818,109        0.00%        28.70% to 27.02%     

2012

     0.95% to 2.25%        799,639        18.05 to 16.33        14,247,875        0.00%        12.48% to 11.00%     

2011

     0.95% to 2.25%        849,997        16.05 to 14.71        13,490,037        0.01%        -1.50% to -2.79%     

2010

     0.95% to 2.25%        1,112,006        16.29 to 15.13        17,915,900        0.04%        30.31% to 28.60%     

2009

     0.95% to 2.40%        1,188,377        12.50 to 11.68        14,695,895        0.00%        45.27% to 43.04%     

Variable Insurance Portfolios - Money Market (WRMMP)

2013

     0.95% to 2.25%        1,555,209        10.87 to 9.12        16,597,987        0.02%        -0.93% to -2.23%     

2012

     0.95% to 2.25%        1,805,265        10.98 to 9.33        19,441,214        0.02%        -0.93% to -2.24%     

2011

     0.95% to 2.25%        2,452,513        11.08 to 9.54        26,589,991        0.02%        -0.93% to -2.22%     

2010

     0.95% to 2.25%        2,650,355        11.18 to 9.76        29,097,700        0.08%        -0.88% to -2.18%     

2009

     0.95% to 2.40%        3,428,531        11.28 to 9.90        37,949,287        1.07%        0.06% to -1.40%     

Variable Insurance Portfolios - Real Estate Securities (WRRESP)

2013

     0.95% to 2.25%        393,521        17.49 to 15.44        6,779,587        1.15%        0.17% to -1.15%     

2012

     0.95% to 2.25%        462,722        17.46 to 15.62        7,968,210        0.73%        16.60% to 15.06%     

2011

     0.95% to 2.25%        565,907        14.97 to 13.57        8,362,297        0.76%        4.01% to 2.65%     

2010

     0.95% to 2.25%        733,906        14.39 to 13.22        10,455,436        1.89%        27.29% to 25.62%     

2009

     0.95% to 2.25%        869,687        11.31 to 10.53        9,776,465        3.16%        22.45% to 20.84%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

Variable Insurance Portfolios - Science and Technology (WRSTP)

2013

     0.95% to 2.25%        3,080,205      $  27.65 to $ 25.31      $ 83,423,314        0.00%        54.90% to 52.87%     

2012

     0.95% to 2.25%        3,672,810        17.85 to 16.55        64,303,289        0.00%        26.61% to 24.95%     

2011

     0.95% to 2.25%        4,392,183        14.10 to 13.25        60,775,633        0.00%        -6.66% to -7.88%     

2010

     0.95% to 2.25%        5,651,827        15.10 to 14.38        83,787,588        0.00%        11.68% to 10.22%     

2009

     0.95% to 2.45%        6,937,432        13.52 to 11.80        91,919,030        0.00%        42.47% to 40.24%     

Variable Insurance Portfolios - Small Cap Growth (WRSCP)

2013

     0.95% to 2.25%        2,683,021        20.30 to 17.74        53,369,884        0.00%        42.00% to 40.14%     

2012

     0.95% to 2.25%        3,296,538        14.30 to 12.66        46,267,768        0.00%        4.16% to 2.79%     

2011

     0.95% to 2.25%        3,922,926        13.73 to 12.31        52,916,173        0.00%        -11.45% to -12.61%     

2010

     0.95% to 2.25%        4,957,025        15.50 to 14.09        75,522,922        0.00%        27.63% to 25.95%     

2009

     0.95% to 2.45%        6,103,814        12.15 to 10.59        72,782,371        0.42%        33.44% to 31.30%     

Variable Insurance Portfolios - Small Cap Value (WRSCV)

2013

     0.95% to 2.25%        359,957        20.10 to 17.69        7,117,138        0.85%        32.26% to 30.53%     

2012

     0.95% to 2.05%        400,259        15.19 to 13.79        5,996,555        0.46%        17.50% to 16.20%     

2011

     0.95% to 2.05%        531,829        12.93 to 11.87        6,794,860        0.49%        -13.62% to -14.57%     

2010

     0.95% to 2.05%        644,275        14.97 to 13.90        9,566,202        0.08%        25.21% to 23.82%     

2009

     0.95% to 2.05%        719,794        11.95 to 11.22        8,594,076        0.00%        27.92% to 26.50%     

Variable Insurance Portfolios - Value (WRVP)

2013

     0.95% to 2.25%        2,370,208        20.90 to 17.68        48,380,049        0.80%        34.05% to 32.29%     

2012

     0.95% to 2.25%        2,815,525        15.59 to 13.36        42,943,614        1.34%        17.75% to 16.20%     

2011

     0.95% to 2.25%        3,517,161        13.24 to 11.50        45,648,129        0.75%        -8.20% to -9.40%     

2010

     0.95% to 2.25%        4,443,444        14.42 to 12.69        62,774,142        0.92%        17.58% to 16.04%     

2009

     0.95% to 2.45%        5,275,682        12.27 to 10.76        63,321,636        2.09%        25.44% to 23.40%     

Advantage VT Opportunity Fund - Class 2 (SVOF)

2013

     1.60% to 1.75%        11,012        18.24 to 17.86        197,425        0.27%        28.59% to 28.39%     

2012

     1.60% to 1.75%        12,979        14.18 to 13.91        181,078        0.10%        13.67% to 13.50%     

2011

     1.60% to 1.75%        20,470        12.48 to 12.26        252,377        0.14%        -7.03% to -7.17%     

2010

     1.60% to 1.75%        20,045        13.42 to 13.20        265,916        0.54%        21.78% to 21.59%     

2009

     1.60% to 1.75%        26,804        11.02 to 10.86        292,549        0.00%        45.37% to 45.15%     

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

2013

     0.95% to 2.05%        373,905        24.75 to 23.49        9,169,342        0.00%        48.80% to 47.15%     

2012

     0.95% to 2.05%        300,349        16.63 to 15.96        4,949,232        0.00%        6.84% to 5.65%     

2011

     0.95% to 2.05%        412,796        15.57 to 15.11        6,387,695        0.00%        -5.50% to -6.55%     

2010

     0.95% to 2.05%        688,377        16.47 to 16.17        11,315,575        0.00%        25.57% to 24.18%     

2009

     0.95% to 2.15%        358,511        13.12 to 9.46        4,689,092        0.00%        31.18% to 30.12%      ****

Janus Aspen Series - Global Technology Portfolio - Service II Shares (obsolete) (JAGTS2)

2011

     0.95% to 2.20%        816,960        14.17 to 12.54        11,363,182        0.00%        -9.67% to -10.81%     

2010

     0.95% to 2.20%        1,087,988        15.69 to 14.06        16,812,409        0.00%        23.33% to 21.78%     

2009

     0.95% to 2.30%        1,031,386        12.72 to 11.44        12,931,641        0.00%        55.60% to 53.35%     

Janus Aspen Series - Overseas Portfolio - Service II Shares (obsolete) (JAIGS2)

2011

     0.95% to 2.20%        2,777,451        20.42 to 18.06        55,745,574        0.37%        -32.98% to -33.82%     

2010

     0.95% to 2.20%        4,043,040        30.47 to 27.29        121,341,628        0.53%        23.84% to 22.28%     

2009

     0.95% to 2.70%        4,589,729        24.60 to 21.49        111,311,388        0.42%        77.37% to 74.00%     

V.I. Capital Appreciation Fund - Series I (obsolete) (AVCA)

2011

     0.95% to 1.40%        4,899        9.39 to 8.97        45,091        0.12%        -8.78% to -9.20%     

2010

     0.95% to 1.60%        9,360        10.30 to 9.70        93,543        0.75%        14.39% to 13.64%     

2009

     0.95% to 1.75%        11,670        9.00 to 5.76        101,643        0.71%        19.93% to 18.76%     

V.I. Capital Appreciation Fund - Series II (obsolete) (AVCA2)

2011

     0.95% to 2.60%        123,477        7.73 to 8.05        1,014,201        0.00%        -8.99% to -10.50%     

2010

     0.95% to 2.60%        125,988        8.50 to 8.99        1,150,533        0.49%        14.11% to 12.21%     

2009

     0.95% to 2.60%        147,550        7.45 to 8.01        1,192,449        0.23%        19.57% to 17.58%     

V.I. Capital Development Fund - Series II (obsolete) (AVCD2)

2011

     0.95% to 2.20%        125,245        8.77 to 10.87        1,137,977        0.00%        -8.25% to -9.41%     

2010

     0.95% to 2.50%        110,859        9.56 to 11.76        1,120,317        0.00%        17.35% to 15.51%     

2009

     0.95% to 2.50%        208,876        8.15 to 10.18        1,772,494        0.00%        40.64% to 38.44%     

VIP Trust - Emerging Markets Fund - Class R1 (obsolete) (VWEMR)

2011

     0.95% to 2.05%        606,157        21.22 to 19.48        12,704,561        1.14%        -26.46% to -27.28%     

2010

     0.95% to 2.05%        823,233        28.85 to 26.78        23,512,591        0.67%        25.66% to 24.27%     

2009

     0.95% to 2.05%        1,015,118        22.96 to 21.55        23,100,080        0.13%        111.37% to 109.03%     

VIP Trust - Global Hard Assets Fund - Class R1 (obsolete) (VWHAR)

2011

     0.95% to 2.60%        1,173,183        29.47 to 25.91        34,128,221        1.21%        -17.19% to -18.57%     

2010

     0.95% to 2.25%        1,361,957        35.59 to 32.59        47,937,236        0.35%        28.03% to 26.35%     

2009

     0.95% to 2.25%        1,314,117        27.79 to 25.79        36,210,549        0.25%        56.12% to 54.07%     

AllianceBernstein NVIT Global Fixed Income Fund - Class III (obsolete) (NVAGF3)

2010

     0.95% to 1.70%        125,863        12.16 to 12.01        1,526,761        6.57%        7.21% to 6.40%     

2009

     0.95% to 1.70%        85,960        11.35 to 11.29        974,308        6.15%        13.46% to 12.93%      ****

Clover Value Fund II - Service Shares (obsolete) (FALFS)

2009

     1.50% to 2.60%        23,209        8.41 to 7.72        187,104        2.34%        12.79% to 11.53%     

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

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

2010

     0.95% to 1.35%        98,789      $  10.01 to $ 11.18      $ 1,109,618        0.10%        11.17% to 10.72%     

2009

     0.95% to 1.20%        118,233        9 to 10.73        1,195,448        0.00%        -10.00% to 7.30%      ****

Sterling Capital Strategic Allocation Equity VIF (obsolete) (BBCMAG)

2012

     0.95% to 1.70%        37,711        11.96 to 10.99        435,345        0.86%        12.33% to 11.48%     

2011

     0.95% to 1.70%        50,679        10.65 to 9.86        517,872        0.76%        -8.20% to -8.89%     

2010

     0.95% to 1.70%        65,988        11.60 to 10.82        732,063        1.53%        13.89% to 13.02%     

2009

     0.95% to 1.75%        79,522        10.19 to 9.52        780,089        0.86%        24.05% to 22.87%     

Gartmore NVIT Global Utilities Fund - Class I (obsolete) (GVGU1)

2009

     1.25%        1,356        16.23        22,007        3.98%        6.66%     

Gartmore NVIT Global Utilities Fund - Class III (obsolete) (GVGU)

2009

     0.95% to 2.25%        617,366        15.35 to 13.82        9,320,767        3.54%        6.95% to 5.55%     

NVIT Worldwide Leaders Fund - Class I (obsolete) (GEF)

2010

     0.95% to 2.20%        475,495        15.26 to 10.19        7,136,099        0.99%        10.40% to 9.01%     

2009

     0.95% to 2.20%        586,309        13.82 to 9.34        7,979,898        1.04%        23.82% to 22.25%     

NVIT Worldwide Leaders Fund - Class III (obsolete)(GEF3)

2010

     0.95% to 2.20%        252,208        20.53 to 18.63        5,115,978        0.97%        10.30% to 8.91%     

2009

     0.95% to 2.20%        352,465        18.61 to 17.10        6,481,949        1.03%        23.81% to 22.25%     

High Income Fund/VA - Class 3 (obsolete) (OVHI3)

2011

     0.95% to 1.85%        347,539        2.78 to 2.67        956,113        12.28%        -2.81% to -3.69%     

2010

     0.95% to 2.20%        995,159        2.86 to 2.73        2,832,621        5.69%        13.60% to 12.16%     

2009

     0.95% to 2.20%        859,349        2.52 to 2.44        2,158,516        0.00%        25.55% to 23.96%     

High Income Fund/VA - Non-Service Shares (obsolete) (OVHI)

2011

     0.95% to 1.55%        21,860        3.01 to 2.91        64,938        11.64%        -3.26% to -3.85%     

2010

     0.95% to 1.55%        40,971        3.11 to 3.02        126,029        6.16%        13.72% to 13.03%     

2009

     0.95% to 1.65%        45,401        2.73 to 2.79        123,551        0.00%        24.13% to 21.80%     

High Income Fund/VA - Service Class (obsolete) (OVHIS)

2011

     1.25%        6,674        3.39        22,593        8.94%        -3.77%     

2010

     1.25%        7,510        3.52        26,420        5.98%        13.12%     

2009

     1.25%        8,314        3.11        25,880        0.00%        24.38%     

Ivy Fund Variable Insurance Portfolios, Inc. - Mortgage Securities (obsolete) (WRMSP)

2009

     0.95% to 1.95%        543,845        10.40 to 10.02        5,600,904        5.50%        7.34% to 6.24%     

INTECH Risk-Managed Core Portfolio - Service Shares (obsolete) (JARLCS)

2009

     1.25%        475        13.54        6,437        0.83%        21.02%     

Market Opportunity Fund II - Service Shares (obsolete) (FVMOS)

2009

     0.95% to 2.20%        312,243        9.93 to 9.48        3,079,972        1.98%        0.32% to -0.94%     

Mid Cap Growth VIF (obsolete) (BBCA)

2009

     0.95% to 2.05%        93,676        12.21 to 11.14        1,121,159        0.00%        26.47% to 24.76%     

NVIT Global Financial Services Fund - Class I (obsolete) (GVGF1)

2009

     1.25%        294        12.61        3,712        1.13%        30.11%     

NVIT Global Financial Services Fund - Class III (obsolete) (GVGFS)

2009

     0.95% to 2.15%        331,596        13.30 to 12.08        4,332,608        1.10%        30.68% to 29.09%     

NVIT Health Sciences Fund - Class I (obsolete) (GVGH1)

2009

     1.25%        5,321        12.54        66,726        0.29%        17.67%     

NVIT Health Sciences Fund - Class III (obsolete) (GVGHS)

2009

     0.95% to 2.60%        1,040,801        13.12 to 11.48        13,394,642        0.30%        17.98% to 16.02%     

NVIT Leaders Fund - Class III (obsolete) (GVUSL)

2009

     0.95% to 2.20%        503,325        12.24 to 11.06        6,073,923        0.85%        32.62% to 30.95%     

NVIT Technology & Communications Fund - Class I (obsolete) (GGTC)

2009

     0.95% to 1.90%        318,647        3.04 to 2.78        956,649        0.00%        51.02% to 49.57%     

NVIT Technology & Communications Fund - Class III (obsolete) (GGTC3)

2009

     0.95% to 2.25%        1,054,005        11.26 to 10.17        11,699,017        0.00%        51.00% to 49.02%     

NVIT U.S. Growth Leaders Fund - Class I (obsolete) (GVUG1)

2009

     1.25% to 2.25%        21,372        12.91 to 9.51        240,376        0.00%        24.27% to 23.01%     

NVIT U.S. Growth Leaders Fund - Class III (obsolete) (GVUGL)

2009

     0.95% to 2.60%        657,631        12.17 to 10.65        7,854,087        0.00%        24.60% to 22.52%     

U.S. Equity Flex I Portfolio (obsolete) (WSCP)

2010

     0.95% to 1.85%        387,091        12.30 to 12.16        4,784,269        0.15%        13.37% to 12.34%     

2009

     0.95% to 1.85%        465,051        10.85 to 10.83        5,075,301        0.00%        8.51% to 8.26%      ****

 

(Continued)

NATIONWIDE VARIABLE ACCOUNT-9 NOTES TO FINANCIAL STATEMENTS

December 31, 2013

 

    Contract
Expense
Rate*		     Units     Unit
Fair
Value		     Contract
Owners’
Equity		     Investment
Income
Ratio**		     Total
Return***		     Inception
Date****

V.I. Basic Balanced Fund - Series I (obsolete) (AVB)

2010

     0.95% to 1.55%        20,191      $  10.13 to $ 9.58      $ 201,197        1.72%        7.04% to 6.39%    

2009

     0.95% to 2.05%        37,731        9.46 to 8.63        347,836        5.62%        32.57% to 30.94%     

2013

     Reserves for annuity contracts in payout phase:        78,089,833         

2013

     Contract owners equity:      $   6,214,279,257         

2012

     Reserves for annuity contracts in payout phase:        73,557,624         

2012

     Contract owners equity:      $ 5,859,299,538         

2011

     Reserves for annuity contracts in payout phase:        73,413,778         

2011

     Contract owners equity:      $ 6,061,567,903         

2010

     Reserves for annuity contracts in payout phase:        84,463,089         

2010

     Contract owners equity:      $ 7,542,257,800         

2009

     Reserves for annuity contracts in payout phase:        81,634,158         

2009

     Contract owners equity:      $ 7,961,391,641         

 

* This represents the range of annual contract expense rates 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 range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit values for expenses assessed. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) exists. In such cases, the total return presented is representative of all units issued and outstanding at period end.
**** Subaccounts denoted indicate the underlying mutual fund option was initially added and funded during the period presented.

 

LOGO  
  KPMG LLP
  Suite 500
 

191 West Nationwide Blvd.

Columbus, OH 43215-2568

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholder

Nationwide Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2013. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying index. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Nationwide Life Insurance Company and subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

/s/ KPMG LLP

Columbus, Ohio

February 28, 2014

 

 

KPMG  LLP  is  a  Delaware  limited  liability  partnership,

the U.S. member firm of KPMG International Cooperative

(“KPMG International”), a Swiss entity.

 

1

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Operations

(in millions)

 

     Year ended December 31,  
     2013     2012     2011  
           (As Adjusted)  

Revenues

       

Policy charges

    $ 1,849      $ 1,670      $ 1,506   

Premiums

      724        635        531   

Net investment income

      1,849        1,825        1,844   

Net realized investment gains (losses), net of other-than-temporary impairment losses

      678        319        (1,676 ) 

Other revenues

      17        7        3   
  

 

 

    

 

 

    

 

 

  

Total revenues

    $ 5,117      $ 4,456      $ 2,208   
  

 

 

    

 

 

    

 

 

  

Benefits and expenses

       

Interest credited to policyholder account values

    $ 1,067      $ 1,038      $ 1,033   

Benefits and claims

      1,354        1,227        1,062   

Policyholder dividends

      59        54        67   

Amortization of deferred policy acquisition costs

      374        575        65   

Other expenses, net of deferrals

      922        863        830   
  

 

 

    

 

 

    

 

 

  

Total benefits and expenses

    $ 3,776      $ 3,757      $ 3,057   
  

 

 

    

 

 

    

 

 

  

Income (loss) before federal income taxes and noncontrolling interests

    $ 1,341      $ 699      $ (849 ) 

Federal income tax expense (benefit)

      313        99        (427 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss)

    $ 1,028      $ 600      $ (422 ) 

Less: Loss attributable to noncontrolling interest, net of tax

      (82 )      (61 )      (56 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss) attributable to Nationwide Life Insurance Company

    $ 1,110      $ 661      $ (366 ) 
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

 

2

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Comprehensive Income (Loss)

(in millions)

 

     Year ended December 31,  
     2013     2012     2011  
           (As Adjusted)  

Net income (loss)

    $ 1,028      $ 600      $ (422 ) 
  

 

 

    

 

 

    

 

 

  

Other comprehensive (loss) income, net of tax

       

Changes in:

       

Net unrealized (losses) gains on available-for-sale securities

      (663 )      571        317   

Other

      (7 )      (5 )      12   
  

 

 

    

 

 

    

 

 

  

Total other comprehensive (loss) income, net of tax

    $ (670 )    $ 566      $ 329   
  

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

    $ 358      $ 1,166      $ (93 ) 
  

 

 

    

 

 

    

 

 

  

Less: Comprehensive loss attributable to noncontrolling interests, net of tax

      (82 )      (61 )      (56 ) 
  

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss) attributable to Nationwide Life Insurance Company

    $ 440      $ 1,227      $ (37 ) 
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

 

3

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

(in millions, except for share and per share amounts)

 

     December 31,  
     2013      2012  

Assets

      

Investments

      

Fixed maturity securities, available-for-sale

    $ 32,249       $ 31,811   

Mortgage loans, net of allowance

      6,341         5,827   

Policy loans

      987         980   

Short-term investments

      411         1,034   

Other investments

      767         639   
  

 

 

     

 

 

  

Total investments

    $ 40,755       $ 40,291   

Cash and cash equivalents

      61         62   

Accrued investment income

      603         566   

Deferred policy acquisition costs

      3,778         3,249   

Goodwill

      200         200   

Other assets

      3,979         4,362   

Separate account assets

      84,069         71,440   
  

 

 

     

 

 

  

Total assets

    $ 133,445       $ 120,170   
  

 

 

     

 

 

  

Liabilities and equity

      

Liabilities

      

Future policy benefits and claims

    $ 36,765       $ 36,154   

Short-term debt

      278         300   

Long-term debt

      707         1,038   

Other liabilities

      4,122         4,507   

Separate account liabilities

      84,069         71,440   
  

 

 

     

 

 

  

Total liabilities

    $ 125,941       $ 113,439   
  

 

 

     

 

 

  

Shareholder’s equity

      

Common stock ($1 par value; authorized - 5,000,000 shares, issued and outstanding - 3,814,779 shares)

    $ 4       $ 4   

Additional paid-in capital

      1,718         1,718   

Retained earnings

      4,520         3,410   

Accumulated other comprehensive income

      582         1,252   
  

 

 

     

 

 

  

Total shareholder’s equity

    $ 6,824       $ 6,384   

Noncontrolling interest

      680         347   
  

 

 

     

 

 

  

Total equity

    $ 7,504       $ 6,731   
  

 

 

     

 

 

  

Total liabilities and equity

    $ 133,445       $ 120,170   
  

 

 

     

 

 

  

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

 

4

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Changes in Equity

(in millions)

 

     Common
stock		      Additional
paid-in
capital		      Retained
earnings		     Accumulated
other
comprehensive
income		     Total
shareholder’s
equity		     Non-controlling
interest		     Total
equity		  

Balance as of December 31, 2010

    $ 4       $ 1,718       $ 3,155      $ 357      $ 5,234      $ 355      $ 5,589   

Comprehensive (loss) income:

                 

Net loss

      —           —           (366 )      —          (366 )      (56 )      (422 ) 

Other comprehensive income

      —           —           —          329        329        —          329   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive (loss) income

      —           —           (366 )      329        (37 )      (56 )      (93 ) 

Change in noncontrolling interest

      —           —           —          —          —          46        46   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2011

    $ 4       $ 1,718       $ 2,789      $ 686      $ 5,197      $ 345      $ 5,542   

Cash dividend paid

      —           —           (40 )      —          (40 )      —          (40 ) 

Comprehensive income (loss):

                 

Net income (loss)

      —           —           661        —          661        (61 )      600   

Other comprehensive income

      —           —           —          566        566        —          566   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

      —           —           661        566        1,227        (61 )      1,166   

Change in noncontrolling interest

      —           —           —          —          —          63        63   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2012

    $ 4       $ 1,718       $ 3,410      $ 1,252      $ 6,384      $ 347      $ 6,731   

Comprehensive income (loss):

                 

Net income (loss)

      —           —           1,110        —          1,110        (82 )      1,028   

Other comprehensive loss

      —           —           —          (670 )      (670 )      —          (670 ) 
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income (loss)

      —           —           1,110        (670 )      440        (82 )      358   

Change in noncontrolling interest

      —           —           —          —          —          415        415   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2013

    $ 4       $ 1,718       $ 4,520      $ 582      $ 6,824      $ 680      $ 7,504   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

 

5

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Cash Flows

(in millions)

 

     Year ended December 31,  
     2013     2012     2011  
           (As Adjusted)  

Cash flows from operating activities:

       

Net income (loss)

    $ 1,028      $ 600      $ (422 ) 

Adjustments to net income (loss):

       

Net realized investment (gains) losses, net of other-than-temporary impairment losses

      (678 )      (319 )      1,676   

Interest credited to policyholder account values

      1,067        1,038        1,033   

Capitalization of deferred policy acquisition costs

      (604 )      (470 )      (604 ) 

Amortization of deferred policy acquisition costs

      374        575        65   

Amortization and depreciation

      77        80        48   

Deferred tax expense (benefit)

      346        243        (482 ) 

Changes in:

       

Policy liabilities

      (475 )      (548 )      (608 ) 

Derivatives, net

      (483 )      (490 )      (364 ) 

Other, net

      88        (84 )      (265 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by operating activities

    $ 740      $ 625      $ 77   
  

 

 

    

 

 

    

 

 

  

Cash flows from investing activities:

       

Proceeds from maturities of available-for-sale securities

    $ 3,689      $ 2,909      $ 2,705   

Proceeds from sales of available-for-sale securities

      1,091        796        1,585   

Purchases of available-for-sale securities

      (6,842 )      (5,167 )      (6,176 ) 

Proceeds from repayments and sales of mortgage loans

      1,091        1,048        1,124   

Issuances and purchases of mortgage loans

      (1,593 )      (1,114 )      (751 ) 

Net decrease (increase) in short-term investments

      654        98        (61 ) 

Collateral (paid) received, net

      (637 )      (208 )      359   

Other, net

      42        (12 )      104   
  

 

 

    

 

 

    

 

 

  

Net cash used in investing activities

    $ (2,505 )    $ (1,650 )    $ (1,111 ) 
  

 

 

    

 

 

    

 

 

  

Cash flows from financing activities:

       

Net change in short-term debt

    $ (22 )    $ (477 )    $ 477   

Proceeds from issuance of long-term debt

      2        13        13   

Cash dividend paid to Nationwide Financial Services, Inc.

      —          (40 )      —     

Repayments of long-term debt

      (299 )      —          —     

Investment and universal life insurance product deposits

      6,139        5,566        5,314   

Investment and universal life insurance product withdrawals

      (4,034 )      (4,063 )      (5,024 ) 

Other, net

      (22 )      39        (34 ) 
  

 

 

    

 

 

    

 

 

  

Net cash provided by financing activities

    $ 1,764      $ 1,038      $ 746   
  

 

 

    

 

 

    

 

 

  

Net (decrease) increase in cash and cash equivalents

    $ (1 )    $ 13      $ (288 ) 

Cash and cash equivalents, beginning of period

      62        49        337   
  

 

 

    

 

 

    

 

 

  

Cash and cash equivalents, end of period

    $ 61      $ 62      $ 49   
  

 

 

    

 

 

    

 

 

  

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

 

6

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements

December 31, 2013, 2012 and 2011

 

(1) Nature of Operations

Nationwide Life Insurance Company (“NLIC,” or collectively with its subsidiaries, “the Company”) was incorporated in 1929 and is an Ohio domiciled stock life insurance company. The Company is a member of the Nationwide group of companies (“Nationwide”), which is comprised of Nationwide Mutual Insurance Company (“NMIC”) and all of its subsidiaries and affiliates.

All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (“NFS”), a holding company formed by Nationwide Corporation (“Nationwide Corp.”), a majority-owned subsidiary of NMIC.

Wholly-owned subsidiaries of NLIC as of December 31, 2013 include Nationwide Life and Annuity Insurance Company (“NLAIC”), Nationwide Investment Services Corporation (“NISC”) and Nationwide Investment Advisor (“NIA”). NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life insurance (“COLI”) and individual annuity contracts on a non-participating basis. NISC is a registered broker-dealer. NIA is a registered investment advisor.

The Company is a leading provider of long-term savings and retirement products in the United States (“U.S.”). The Company develops and sells a diverse range of products and services including individual annuities, private and public sector group retirement plans, investment products sold to institutions, life insurance and advisory services.

The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. (“NRS”) and Nationwide Financial Network (“NFN”) producers, which includes the agency distribution force of the Company’s ultimate parent company, NMIC.

As of December 31, 2013 and 2012, the Company did not have a significant concentration of financial instruments in a single investee, industry or geographic region of the U.S. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region of the U.S. in which the Company is overly vulnerable to a single event which could cause a severe impact to the Company’s financial position.

 

(2) Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include majority-owned subsidiaries and consolidated variable interest entities (“VIEs”). All significant intercompany accounts and transactions have been eliminated.

Entities in which NLIC does not have a controlling interest, but the Company has significant influence over the operating and financing decisions and also certain other investments, are reported using the equity method.

 

7

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), legal and regulatory reserves, certain investment and derivative valuations including investment impairment losses, future policy benefits and claims including the valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts, goodwill, provision for income taxes and valuation of deferred tax assets. Actual results could differ significantly from those estimates.

Revenues and Benefits

Investment and universal life insurance products. Investment products are long duration contracts that do not subject the Company to significant risk arising from mortality (the relative incidence of death in a given time) or morbidity (the relative incidence of disability resulting from disease or physical impairment). These include variable and fixed deferred annuity contracts in the accumulation phase with both individuals and groups and certain annuities without life contingencies. Universal life insurance products include long duration insurance contracts that do not have fixed or guaranteed terms. These include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (“BOLI”) and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income, surrender charges and other policy charges earned and assessed against policy account balances during the period. Policy charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Assessments for services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited. Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms. Policy benefits and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts.

Traditional life insurance products. Traditional life insurance products include those products with fixed and guaranteed terms, primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are generally recognized as revenue when due. For certain annuities with life contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

Future Policy Benefits and Claims

Investment and universal life insurance products. The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and for universal life insurance policies as the policy accrued account balance, which represents participants’ net deposits adjusted for investment performance, interest credited and applicable contract charges.

 

8

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The Company offers certain universal life insurance, variable universal life insurance and variable annuity products with secondary guarantees, guaranteed minimum death benefits (“GMDB”), and guaranteed minimum income benefits (“GMIB”). Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. The Company regularly evaluates its experience and assumptions and adjusts the benefit ratio as appropriate. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes with a related charge or credit to other benefits and claims in the period of evaluation. Determination of the expected benefit payments and assessments are based on a range of scenarios and assumptions including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated gross profits used to calculate the balance and amortization of DAC and other. Refer to Note 4 for further discussion of these guarantees.

Guarantees to variable annuity contractholders can include a return of no less than the total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. In addition, these guarantees can include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. Refer to Note 4 for further discussion of these guarantees.

The Company’s guaranteed minimum accumulation benefit (“GMAB”) and guaranteed living withdrawal benefit (“GLWB”) are living benefit guarantees which represent embedded derivatives in variable annuity contracts that are required to be separated from, and valued apart from, the host variable annuity contracts. The embedded derivatives are held at fair value and include the present value of attributed fees. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivatives incorporate numerous assumptions including, but not limited to, mortality, lapse rates, index volatility, wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible), efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes) and discounting, including liquidity and non-performance risk (the risk that the liability will not be fulfilled and affects the value at which the liability is transferred). The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.

The Company’s equity indexed products (life and annuity) have the policyholders’ interest credits based on market performance with caps and floors. The interest credits represent embedded derivatives within the insurance contract and therefore are required to be separated from, and valued apart from, the host contracts. The embedded derivatives are held at fair value. Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of interest credited. The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality, lapse rates and index volatility. The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.

Traditional life insurance products. The process of calculating reserve amounts for traditional life insurance products involves the use of a number of assumptions, including those related to persistency, mortality, morbidity, interest rates (the rates expected to be paid or received on financial instruments) and certain other expenses.

 

9

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued with a provision for adverse deviation.

The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses discounted using weighted average interest rates of 5.3% with a provision for adverse deviation.

Reinsurance ceded

The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not relieve the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company.

Deferred Policy Acquisition Costs

The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product.

Investment and universal life insurance products. For certain investment and universal life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities with the corresponding adjustment recorded in accumulated other comprehensive income (“AOCI”). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to operations had such unrealized amounts been realized. DAC for investment and universal life insurance products is subject to recoverability testing in the year of policy issuance and DAC for universal life insurance products is also subject to loss recognition testing at the end of each reporting period.

The Company regularly evaluates and adjusts the DAC balance when actual gross profits in a given reporting period vary from management’s initial estimates. Additionally, the assumptions used in the estimation of future gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual process. During the annual process, the Company performs a comprehensive study of assumptions, including mortality and persistency studies, maintenance expense studies and an evaluation of projected general and separate account investment returns. The most significant assumptions that are involved in the estimation of future gross profits include future net separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. The Company refers to this process as “unlocking.” Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years such that the separate account mean return measured from the anchor date to the end of the life of the product equals the long-term assumption. The Company’s long-term assumption for net separate account investment performance is approximately 7% growth per year.

 

10

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

Changes in assumptions and the emergence of actual gross profits can have a significant impact on the amount of DAC reported for investment and universal life insurance products and their related amortization patterns. Additionally, the amortization of DAC can be affected by the change in the valuation of the Company’s variable annuity guarantees. See Future Policy Benefits and Claims for further discussion of the valuation of the Company’s variable annuity guarantees. In the event actual experience differs from assumptions or future assumptions are revised, the Company will record an increase or decrease in DAC amortization expense, which could be significant.

Traditional life insurance. DAC is amortized with interest over the premium-paying period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance. DAC is evaluated for recoverability at the time of policy issuance, and loss recognition testing is conducted each reporting period.

Refer to Note 5 for discussion regarding assumption changes impacting DAC amortization and related balances.

Investments

Available-for-sale securities. Available-for-sale securities are reported at fair value, with unrealized holding gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC, future policy benefits and claims, policyholder dividend obligations and deferred federal income taxes. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned.

As of December 31, 2013 and 2012, 99% of fixed maturity securities were priced using external source data. Independent pricing services are most often utilized (86% as of December 31, 2013 and 2012) to determine the fair value of securities for which market quotations are available. For these securities, the Company obtains the pricing services’ methodologies, inputs and assumptions and classifies the investments accordingly in the fair value hierarchy.

A corporate pricing matrix or an internally developed pricing model is used in valuing certain corporate debt securities. The corporate pricing matrix is developed using private spreads for corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security.

Non-binding broker quotes are also utilized to determine the fair value of certain corporate debt, mortgage-backed and other asset-backed securities when quotes are not available from independent pricing services, corporate pricing matrix or internal pricing models. These securities are classified with the lowest priority in the fair value hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the development of prices are not provided to the Company by the brokers, as the brokers often do not provide the necessary transparency into their quotes and methodologies. The Company performs reviews and tests to ensure that quotes are a reasonable estimate of the investments’ fair value at least annually. Price movements of broker quotes are subject to validation and require approval from the Company’s management. Management uses its knowledge of the investment and current market conditions to determine if the price is indicative of the investment’s fair value.

When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company determines that payment of future principal and interest is probable.

 

11

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.

The Company periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value.

In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. Treasury securities and obligations of U.S. Government corporations and agencies and obligations of states, political subdivisions and foreign governments for other-than-temporary impairment by examining similar characteristics.

When evaluating whether residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities are other-than-temporarily impaired, the Company examines characteristics of the underlying collateral, such as delinquency and default rates, the quality of the underlying borrower, the type of collateral in the pool, the vintage year of the collateral, subordination levels within the structure of the collateral pool, the quality of any credit guarantors, the Company’s intent to sell the security and whether it is more likely than not it will be required to sell the security before the recovery of its amortized cost basis.

The Company evaluates its intent to sell on an individual security basis. Other-than-temporary impairment losses on debt securities when the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis are bifurcated with the credit portion of the impairment loss being recognized in earnings and the non-credit loss portion of the impairment and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of applicable taxes and other offsets. To estimate the credit portion of an impairment loss recognized in earnings, the Company considers the timing and present value of the cash flows. To the extent that the present value of cash flows generated by a debt security is less than the amortized cost, an other-than-temporary impairment is recognized through earnings.

It is reasonably possible that further declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments in the near term, which could be significant.

Mortgage loans, net of allowance. The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S. These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, industrial, retail, apartment and other. Mortgage loans held-for-investment are held at amortized cost less a valuation allowance.

As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new mortgage loan. Third-party appraisals are generally obtained to support loaned amounts as the loans are usually collateral dependent.

 

12

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral. Many of the Company’s commercial mortgage loans are structured with balloon payment maturities, exposing the Company to risks associated with the borrowers’ ability to make the balloon payment or refinance the property.

The Company actively monitors the credit quality of its mortgage loans to support the development of the valuation allowance. This monitoring process includes quantitative analyses which facilitate the identification of deteriorating loans, and qualitative analyses, which consider other factors relevant to the borrowers’ ability to repay. Loans with deteriorating credit fundamentals are identified through special surveillance procedures and are evaluated based on the severity of their deterioration and management’s judgment as to the likelihood of loss.

Mortgage loans require a loan-specific reserve when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan requires a loan-specific reserve, a provision for loss is established equal to the difference between the carrying value and either the fair value of the collateral less costs to sell or the present value of expected future cash flows discounted at the loan’s market interest rate. Loan-specific reserve charges are recorded in net realized investment gains and losses. In the event a loan-specific reserve charge is reversed, the recovery is recorded in net realized investment gains and losses.

In addition to the loan-specific reserves, the Company maintains a non-specific reserve based primarily on loan surveillance categories and property type classes, which reflects management’s best estimate of probable credit losses inherent in the portfolio as of the balance sheet date but not yet attributable to specific loans. Management’s periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve changes are recorded in net realized investment gains and losses.

Interest income on performing mortgage loans is recognized over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are considered delinquent when contractual payments are 90 days past due.

Policy loans. Policy loans, which are collateralized by the related insurance policy, are held at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required.

Short-term investments. Short-term investments consist of highly liquid mutual funds and government agency discount notes with maturities of twelve months or less at acquisition. The Company and various affiliates maintains agreements with Nationwide Cash Management Company (“NCMC”), an affiliate, under which NCMC acts as a common agent in handling the purchase and sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC for the benefit of the Company are included in short-term investments on the consolidated balance sheets. The Company carries short-term investments at fair value.

Other investments. Other investments consist primarily of equity method investments in joint ventures and partnerships, equity securities, capital stock with the Federal Home Loan Bank of Cincinnati (“FHLB”) and trading securities.

 

13

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

Securities lending. The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income on the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Periodically, the Company may receive non-cash collateral, which would be recorded off-balance sheet. The Company recognizes loaned securities in either available-for-sale or other investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from securities lending activities is included in net investment income.

Variable interest entities. In the normal course of business, the Company has relationships with VIEs. If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE. This determination is based on a review of the entity’s contract and other deal related information, such as the entity’s equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE.

The majority of the VIEs consolidated by the Company are due to guarantees provided to limited partners related to the amount of tax credits that will be generated by the Low-Income-Housing Tax Credit Funds (“Tax Credit Funds”). The results of operations and financial position of each VIE for which the Company is the primary beneficiary as well as the corresponding noncontrolling interests, are recorded in the consolidated financial statements. Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Loss attributable to noncontrolling interests is excluded from the net income attributable to NLIC on the consolidated statements of operations.

The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and asset-backed securities. The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance. The Company’s maximum exposure to loss is limited to the carrying values of these securities. There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets. Refer to Note 6 for additional disclosures related to these investments.

The Company is not required and does not intend to provide financial or other support outside of contractual requirements to any VIE.

Derivative Instruments

The Company uses derivative instruments to manage exposures and mitigate risks primarily associated with interest rates, equity markets and foreign currency. These derivative instruments primarily include interest rate swaps, futures contracts and options. Certain features embedded in the Company’s indexed products and certain variable annuity contracts require derivative accounting. Refer to the prior discussion of Future Policy Benefits and Claims for a description of the valuation applicable to these products. All derivative instruments are held at fair value and are reflected as assets or liabilities in the consolidated balance sheets.

 

14

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

Fair value of derivative instruments is determined using various valuation techniques relying predominantly on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding broker quotes to determine fair value, and these instruments are classified accordingly in the fair value hierarchy. Price movements of these broker quotes are subject to validation and require approval from the Company’s management. Management uses models to internally value the instruments for comparison to the values received through broker quotes.

For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is primarily recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for fair value hedge accounting, the gain or loss on the derivative instrument, as well as the hedged item to the extent of the risk being hedged, are recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses.

The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements, which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the form of cash and marketable securities.

Fair Value Measurements

Fair value is defined 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. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods, primarily market and income approaches.

The Company categorizes its fair value measurements 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.

 

15

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The Company categorizes assets and liabilities held at fair value in the consolidated balance sheets as follows:

 

  •   Level 1 – Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds where the value per share (unit) is determined and published daily and is the basis for current transactions.

 

  •   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. Primary inputs to this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate (“LIBOR”), prime rates, cash flows, maturity dates, call ability, estimated prepayments, and/or underlying collateral values.

 

  •   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 Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs.

Fair Value Option

The Company assesses the fair value option election for newly acquired assets or liabilities on a prospective basis. There are no material assets or liabilities for which the Company elected the fair value option.

Federal Income Taxes

The Company recognizes deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expense.

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant.

Tax reserves are reviewed regularly and are adjusted as events occur that management believes impact its liability for additional taxes, such as lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue.

 

16

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

NLIC files a separate consolidated federal income tax return, with its subsidiaries, and is eligible to join the NMIC consolidated federal tax return group in 2015.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of less than three months.

Goodwill

In connection with business acquisitions, the Company recognizes goodwill as the excess of the purchase price over the fair value of net assets acquired as goodwill. Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually. Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will calculate implied goodwill. An impairment would be recognized on a reporting unit for the amount that the carrying value of its goodwill exceeds the implied value of its goodwill.

The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions. The Company performed its 2013 annual impairment test and determined that no impairment was required.

Closed Block

In connection with the sponsored demutualization of Provident Mutual Life Insurance Company (“Provident”) prior to its acquisition by the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001. Assets were allocated to the closed block in an amount that produces cash flows which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues.

Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit of the Company. No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without the approval of the Pennsylvania Insurance Department and Ohio Department of Insurance (“ODI”). The closed block will remain in effect as long as any policy in the closed block is in force.

If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block, dividends to policyholders will increase. If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced. If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company’s assets outside of the closed block, which are general account assets.

The assets and liabilities allocated to the closed block are recorded in the Company’s consolidated financial statements on the same basis as other similar assets and liabilities. The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force.

 

17

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income. This is because the excess actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation. Therefore, the excess will be paid to closed block policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected. If actual cumulative performance is less favorable than expected, actual earnings will be recognized in income.

The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes. The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross margins of closed block policies. See Note 10 for further disclosure.

Separate Accounts

Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives. In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. Separate account assets are primarily comprised of public, privately registered and non-registered mutual funds. Separate account assets are recorded at fair value based on the methodology that would be applicable to the underlying assets. The value of separate account liabilities is set to equal the fair value for separate account assets.

Participating Business

Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 4% of the Company’s life insurance in force in 2013 (5% in 2012 and 2011) and 38% of the number of life insurance policies in force in 2013 (40% in 2012 and 42% in 2011). The provision for policyholder dividends was based on the respective year’s dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets.

Change in Accounting Principle

In October 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-26, which amends FASB Accounting Standards Codification (“ASC”) 944, Financial Services – Insurance. The amended guidance modifies the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal insurance and investment contracts. Under the amended guidance, acquisition costs are to include only those costs that are directly related to the successful acquisition of new or renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of DAC were not impacted as a result of adopting this guidance.

The Company adjusted the presentation of its consolidated financial statements and accompanying notes for all periods presented, to reflect the retrospective adoption of this change in accounting principle.

 

18

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following tables summarize the impact of the retrospective change in accounting principle on the consolidated statements of operations for the periods indicated:

 

     Year ended December 31, 2011  

(in millions)

    As Originally
Reported		     As Adjusted     Effect of Change  

Amortization of deferred policy acquisition costs

    $ 76      $ 65      $ 11   

Other expenses, net of deferrals1

    $ 620      $ 760      $ (140 ) 

Federal income tax benefit

    $ (382 )    $ (427 )    $ 45   

Net loss attributable to Nationwide Life Insurance Company

    $ (282 )    $ (366 )    $ (84 ) 

 

1  Excludes interest expense, which is included in other expenses, net of deferrals on the consolidated statements of operations.

Subsequent Events

The Company evaluated subsequent events through February 28, 2014, the date the consolidated financial statements were issued.

 

(3) Recently Issued Accounting Standards

Adopted Accounting Standards

On January 1, 2013, the Company adopted ASU 2011-11, which expands the disclosure requirements within ASC 210-10, Balance Sheet – Offsetting. The new disclosures require improved information about certain financial instruments and derivatives that are either offset in accordance with GAAP or subject to enforceable master offsetting arrangements irrespective of GAAP. The Company also adopted ASU 2013-01, which clarifies the scope of these disclosures. The adoption of this guidance resulted in increased disclosures only and had no impact on the Company’s consolidated financial statements.

On January 1, 2013, the Company adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends FASB ASC 220, Comprehensive Income. The amended guidance requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by significant component. For significant amounts reclassified into net income in their entirety in the same reporting period, the amended guidance also requires entities to present or disclose the effect of these reclassifications on line items of net income. The adoption of this guidance resulted in increased disclosures only and had no impact on the Company’s consolidated financial statements.

On July 17, 2013, the Company adopted ASU 2013-10, which permits the Overnight Index Swap Rate to be designed as a U.S. benchmark interest rate for hedge accounting purposes. This guidance is applied prospectively on new or redesigned hedging relationships and accordingly had no impact to the Company’s consolidated financial statements.

On January 1, 2012, the Company adopted ASU 2011-04, which amends existing guidance in ASC 820, Fair Value Measurements and Disclosures. The guidance in this ASU clarifies existing fair value measurement guidance and expands disclosures primarily related to Level 3 fair value measurements. The Company also adopted ASU 2013-03, which clarifies the applicability of these disclosures. The adoption of this guidance resulted in increased disclosures only and had no impact on the Company’s consolidated financial statements.

 

19

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

On January 1, 2012, the Company adopted ASU 2011-05, which amends existing guidance in ASC 220, Comprehensive Income. The amended guidance requires reporting entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The Company elected two separate but consecutive statements of operations and comprehensive income and adopted ASU 2011-05 retrospectively.

Pending Accounting Standards

In February 2013, the FASB issued ASU 2013-04, which amends existing guidance in ASC 405, Liabilities. The ASU provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The guidance is effective retrospectively for the Company’s annual and interim periods beginning January 1, 2014. The Company is currently in the process of determining the impact of adoption.

In June 2013, the FASB issued ASU 2013-08, which amends existing guidance in ASC 946, Financial Services – Investment Companies. The amended guidance modifies the definition of investment companies and requires new disclosures around the status and operations of investment companies. In addition, the guidance requires an investment company to measure its noncontrolling interests in another investment company at fair value rather than the equity method of accounting. The Company will adopt the ASU for interim and annual reporting periods beginning January 1, 2014. The Company is currently in the process of determining the impact of adoption.

In July 2013, the FASB issued ASU 2013-11, which amends existing guidance in ASC 740, Income Taxes. The amended guidance provides clarification on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. The Company will adopt the ASU for interim and annual periods beginning January 1, 2014. The Company is currently in the process of determining the impact of adoption.

In January 2014, the FASB issued ASU 2014-01, which amends existing guidance in ASC 323, Equity Method and Joint Ventures. The amended guidance permits reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The Company will adopt the ASU for interim and annual reporting periods beginning January 1, 2015. The Company is currently in the process of determining the impact of adoption.

 

(4) Certain Long-Duration Contracts

Variable Annuity Contracts

Contractholder assets are invested in general and separate account investment options as directed by the contractholder. The Company issues variable annuity contracts through its separate accounts. The Company also provides various forms of guarantees to benefit the related contractholders. The Company provides five primary guarantee types: (1) GMDB; (2) GMAB; (3) GLWB; (4) a hybrid guarantee with GMAB and GLWB; and (5) GMIB.

The GMDB, offered on every variable annuity contract, provides a specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it by having the death benefit paid into the contract and having a second death benefit paid upon the survivor’s death.

 

20

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The GMAB, which was offered in the Company’s Capital Preservation Plus product, is a living benefit that provides the contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract. In some cases, the contractholder also has the option, after a specified time period, to drop the guarantee and continue the variable annuity contract without the GMAB. In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy.

The GLWB, offered in the Company’s Lifetime Income products, are living benefits that provide for enhanced retirement income security without the liquidity loss associated with annuitization. The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base to determine the guaranteed lifetime income amount available to a contractholder. The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by account performance and policy duration.

The GMIB, which was offered with several variable annuity contracts, is a living benefit that provides the contractholder with a guaranteed annuitization stream of income.

The following table summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees):

 

     December 31, 2013      December 31, 2012  

(in millions)

    General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		      General
account
value		      Separate
account
value		      Net
amount
at risk1		      Average
age2		  

Contracts with GMDB:

                        

Return of net deposits

    $ 916       $ 19,927       $ 13         64       $ 836       $ 14,963       $ 24         64   

Minimum return or anniversary contract value

      2,031         33,520         237         69         2,048         29,787         561         68   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total contracts with GMDB

    $ 2,947       $ 53,447       $ 250         67       $ 2,884       $ 44,750       $ 585         66   

GMAB Return of net deposits3

    $ 92       $ 2,383       $ —           64       $ 165       $ 3,230       $ 12         64   

GLWB Minimum return or anniversary contract value

    $ 178       $ 28,071       $ 74         64       $ 128       $ 22,031       $ 613         65   

GMIB Minimum return or anniversary contract value

    $ 49       $ 510       $ —           64       $ 49       $ 514       $ 1         65   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

1  Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).
2  Represents the weighted average attained age of contractholders.
3  Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts.

 

21

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes the reserve balances for guarantees on variable annuity contracts, as of the dates indicated:

 

(in millions)

    December 31,
2013		     December 31,
2012		  

GMDB

    $ 55      $ 65   

GMAB1, 2

    $ (19 )    $ 57   

GLWB1

    $ (1,075 )    $ 600   

GMIB

    $ 2      $ 2   
  

 

 

    

 

 

  

 

1  The fair value of the living benefit liability includes the present value of attributed fees.
2  Contracts with the hybrid accumulation/withdrawal benefits are included with the accumulation benefits contracts.

Paid claims for GMDBs were $22 million and $30 million for the years ended December 31, 2013 and 2012, respectively.

Paid claims for GMABs, GLWBs and GMIBs were immaterial for the years ended December 31, 2013 and 2012.

The following table summarizes account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated:

 

(in millions)

    December 31,
2013		      December 31,
2012		  

Mutual funds:

      

Bond

    $ 5,685       $ 5,634   

Domestic equity

      43,505         35,277   

International equity

      3,179         2,614   
  

 

 

     

 

 

  

Total mutual funds

    $ 52,369       $ 43,525   

Money market funds

      1,078         1,225   
  

 

 

     

 

 

  

Total1

    $ 53,447       $ 44,750   
  

 

 

     

 

 

  

 

1  Excludes $30.6 billion and $26.7 billion as of December 31, 2013 and 2012, respectively, of separate account assets not related to deferred variable annuity contracts with guarantees and are primarily attributable to retirement plan, variable universal life and COLI products.

The Company did not transfer any assets from the general account to the separate account to cover guarantees for any of its variable annuity contracts during the years ended December 31, 2013 and 2012.

Universal and Variable Universal Life Insurance Contracts

The Company offers certain universal life and variable universal life insurance products with secondary guarantees. These no-lapse guarantees provide that a policy will not lapse so long as the policyholder makes minimum premium payments. The reserve balances on these guarantees were $325 million and $216 million as of December 31, 2013 and 2012, respectively. Paid claims on contracts maintained in force by these guarantees were immaterial for the years ended December 31, 2013 and 2012.

 

22

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated:

 

(in millions)

    General account
value		      Separate account
value		      Adjusted insurance
in force1		      Average age2  

December 31, 2013

    $ 1,270       $ 362       $ 16,960         55   

December 31, 2012

    $ 992       $ 328       $ 12,321         56   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1  The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value (or zero if the account value exceeds the guaranteed benefit).
2  Represents the weighted average attained age of contractholders.

 

(5) Deferred Policy Acquisition Costs

The following table summarizes changes in the DAC balance, as of the dates indicated:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
20111		  

Balance at beginning of year

    $ 3,249      $ 3,487      $ 3,125   

Capitalization of DAC

      604        470        604   

Amortization of DAC, excluding unlocks

      (373 )      (525 )      (200 ) 

Amortization of DAC related to unlocks

      (1 )      (50 )      135   

Adjustments to DAC related to unrealized gains and losses on available-for-sale securities

      299        (133 )      (177 ) 
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ 3,778      $ 3,249      $ 3,487   
  

 

 

    

 

 

    

 

 

  

 

1  The balances reflect a change in accounting principle, as described in Note 2.

During 2013, the net change in DAC amortization as a result of the annual comprehensive review of model assumptions was immaterial.

During 2012, the Company incurred additional DAC amortization of $50 million as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns. The updated assumptions were primarily related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses.

During 2011, the Company recognized a reduction in DAC amortization of $135 million as a result of the annual comprehensive review of model assumptions. The updated assumptions related to interest spread, mortality, maintenance expense and market performance assumptions. The 2011 reduction in DAC amortization reflects the impact of the retrospective change in accounting principle described in Note 2.

 

23

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

 

(6) Investments

Available-for-Sale Securities

The following table summarizes amortized cost, unrealized gains and losses and fair value of available-for-sale securities, as of the dates indicated:

 

(in millions)

    Amortized
cost		      Unrealized
gains		      Unrealized
losses		      Fair
value		  

December 31, 2013

            

Fixed maturity securities:

            

U.S. Treasury securities and obligations of U.S. Government corporations and agencies

    $ 484       $ 79       $ 2       $ 561   

Obligations of states, political subdivisions and foreign governments

      1,892         111         40         1,963   

Corporate public securities

      18,004         1,076         295         18,785   

Corporate private securities

      4,374         258         38         4,594   

Residential mortgage-backed securities

      3,919         163         79         4,003   

Commercial mortgage-backed securities

      1,439         86         21         1,504   

Other asset-backed securities

      890         26         77         839   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 31,002       $ 1,799       $ 552       $ 32,249   

Equity securities

      6         18         —           24   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 31,008       $ 1,817       $ 552       $ 32,273   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012

            

Fixed maturity securities:

            

U.S. Treasury securities and obligations of U.S. Government corporations and agencies

    $ 476       $ 121       $ —         $ 597   

Obligations of states, political subdivisions and foreign governments

      1,820         301         1         2,120   

Corporate public securities

      16,152         1,891         33         18,010   

Corporate private securities

      4,216         392         19         4,589   

Residential mortgage-backed securities

      4,506         267         106         4,667   

Commercial mortgage-backed securities

      1,219         133         15         1,337   

Other asset-backed securities

      533         45         87         491   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total fixed maturity securities

    $ 28,922       $ 3,150       $ 261       $ 31,811   

Equity securities

      15         5         —           20   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total available-for-sale securities

    $ 28,937       $ 3,155       $ 261       $ 31,831   
  

 

 

     

 

 

     

 

 

     

 

 

  

The fair value of the Company’s investments may fluctuate significantly in response to changes in interest rates, investment quality ratings and credit spreads. The Company has the ability and intent to hold equity securities until recovery. The Company does not have the intent to sell, nor is it more likely than not it will be required to sell, debt securities in an unrealized loss position.

 

24

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes the amortized cost and fair value of fixed maturity securities, by contractual maturity, as of December 31, 2013. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties.

 

(in millions)

    Amortized
cost		      Fair
value		  

Fixed maturity securities:

      

Due in one year or less

    $ 1,081       $ 1,097   

Due after one year through five years

      8,927         9,685   

Due after five years through ten years

      7,805         7,967   

Due after ten years

      6,941         7,154   
  

 

 

     

 

 

  

Subtotal

    $ 24,754       $ 25,903   

Residential mortgage-backed securities

      3,919         4,003   

Commercial mortgage-backed securities

      1,439         1,504   

Other asset-backed securities

      890         839   
  

 

 

     

 

 

  

Total fixed maturity securities

    $ 31,002       $ 32,249   
  

 

 

     

 

 

  

The following table summarizes components of net unrealized gains and losses, as of the dates indicated:

 

(in millions)

    December 31,
2013		     December 31,
2012		  

Net unrealized gains on available-for-sale securities, before adjustments, taxes and fair value hedging

    $ 1,265      $ 2,894   

Change in fair value attributable to fixed maturity securities designated in fair value hedging relationships

      —          (4 ) 
  

 

 

    

 

 

  

Net unrealized gains on available-for-sale securities, before adjustments and taxes1

    $ 1,265      $ 2,890   

Adjustment to DAC and other

      (176 )      (482 ) 

Adjustment to future policy benefits and claims

      (89 )      (295 ) 

Adjustment to policyholder dividend obligation

      (85 )      (177 ) 

Deferred federal income tax expense

      (314 )      (672 ) 
  

 

 

    

 

 

  

Net unrealized gains on available-for-sale securities

    $ 601      $ 1,264   
  

 

 

    

 

 

  

 

1  Includes net unrealized losses of $(40) million and $(48) million as of December 31, 2013 and 2012, respectively, related to the non-credit portion of other-than-temporarily impaired securities.

 

25

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes the change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		  

Balance at beginning of year

    $ 1,264      $ 693   

Unrealized gains and losses arising during the period:

     

Net unrealized (losses) gains on available-for-sale securities before adjustments

      (1,657 )      990   

Non-credit impairments and subsequent changes in fair value of impaired debt securities

      8        178   

Net adjustment to DAC and other

      306        (135 ) 

Net adjustment to future policy benefits and claims

      206        (112 ) 

Net adjustment to policyholder dividend obligation

      92        (45 ) 

Related federal income tax benefit (expense)

      366        (308 ) 
  

 

 

    

 

 

  

Change in unrealized (losses) gains on available-for-sale securities

    $ (679 )    $ 568   
  

 

 

    

 

 

  

Reclassification adjustment for net losses realized on available-for-sale securities, net of tax benefit ($8 and $2 as of December 31, 2013 and 2012, respectively)

      (16 )      (3 ) 
  

 

 

    

 

 

  

Change in net unrealized (losses) gains on available-for-sale securities

    $ (663 )    $ 571   
  

 

 

    

 

 

  

Balance at end of year

    $ 601      $ 1,264   
  

 

 

    

 

 

  

 

26

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes by asset class available-for-sale securities, in an unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value and number of securities, as of the dates indicated:

 

     Less than or equal to one year      More than one year      Total  

(in millions, except number

of securities)

    Fair
value		      Unrealized
losses		      Number
of
securities		      Fair
value		      Unrealized
losses		      Number
of
securities		      Fair
value		      Unrealized
losses		      Number
of
securities		  

December 31, 2013

                           

Fixed maturity securities:

                           

Corporate public securities

    $ 4,889       $ 256         346       $ 442       $ 39         34       $ 5,331       $ 295         380   

Residential mortgage-backed securities

      725         16         70         604         63         148         1,329         79         218   

Other asset-backed securities

      507         6         32         144         71         40         651         77         72   

Other

      1,838         85         126         222         16         20         2,060         101         146   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 7,959       $ 363         574       $ 1,412       $ 189         242       $ 9,371       $ 552         816   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012

                           

Fixed maturity securities:

                           

Corporate public securities

    $ 710       $ 11         68       $ 150       $ 22         10       $ 860       $ 33         78   

Residential mortgage-backed securities

      89         2         12         1,029         104         190         1,118         106         202   

Other asset-backed securities

      27         1         5         163         86         46         190         87         51   

Other

      326         4         23         284         31         36         610         35         59   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 1,152       $ 18         108       $ 1,626       $ 243         282       $ 2,778       $ 261         390   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

The following table summarizes gross unrealized losses based on the ratio of fair value to amortized cost, for available-for-sale securities in an unrealized loss position, as of the dates indicated:

 

     December 31, 2013      December 31, 2012  

(in millions)

    Less
than or
equal to
one year		      More
than
one
year		      Total      Less
than or
equal to
one year		      More
than
one
year		      Total  

99.9% - 80.0%

    $ 363       $ 107       $ 470       $ 18       $ 85       $ 103   

Less than 80.0%

                  

Residential mortgage-backed securities

      —           21         21         —           50         50   

Other asset-backed securities

      —           61         61         —           72         72   

Other

      —           —           —           —           36         36   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 363       $ 189       $ 552       $ 18       $ 243       $ 261   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

27

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

Residential mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value (“LTV”) ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration for the instrument’s position in the overall structure, to determine cash flows associated with the security.

Certain other asset-backed securities are assessed for impairment using expected cash flows based on various inputs including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research.

The Company believes the unrealized losses on these available-for-sale securities represent temporary fluctuations in economic factors that are not indicative of other-than-temporary impairment.

Mortgage Loans, Net of Allowance

The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated:

 

(in millions)

    December 31,
2013		      December 31,
2012		  

Amortized cost:

      

Loans with non-specific reserves

    $ 6,350       $ 5,820   

Loans with specific reserves

      26         51   
  

 

 

     

 

 

  

Total amortized cost

    $ 6,376       $ 5,871   

Valuation allowance:

      

Non-specific reserves

    $ 29       $ 33   

Specific reserves

      6         11   
  

 

 

     

 

 

  

Total valuation allowance

    $ 35       $ 44   
  

 

 

     

 

 

  

Mortgage loans, net of allowance

    $ 6,341       $ 5,827   
  

 

 

     

 

 

  

The following table summarizes activity in the valuation allowance for mortgage loans, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Balance at beginning of year

    $ 44      $ 60      $ 96   

Current period provision1

      (4 )      2        25   

Recoveries2

      (5 )      (15 )      (7 ) 

Charge offs and other

      —          (3 )      (54 ) 
  

 

 

    

 

 

    

 

 

  

Balance at end of year

    $ 35      $ 44      $ 60   
  

 

 

    

 

 

    

 

 

  

 

1  Includes specific reserve provisions and all changes in non-specific reserves.
2  Includes recoveries on sales and increases in the valuation of loans with specific reserves.

 

28

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes impaired commercial mortgage loans by class, for the years ended:

 

(in millions)

    Office     Industrial     Retail     Other      Total  

December 31, 2013

            

Amortized cost

    $ —        $ 26      $ —        $ —         $ 26   

Specific reserves

      —          (6 )      —          —           (6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Carrying value of impaired mortgage loans, net of allowance

    $ —        $ 20      $ —        $ —         $ 20   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

December 31, 2012

            

Amortized cost

    $ 13      $ 26      $ 12      $ —         $ 51   

Specific reserves

      (2 )      (7 )      (2 )      —           (11 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Carrying value of impaired mortgage loans, net of allowance

    $ 11      $ 19      $ 10      $ —         $ 40   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

The following table summarizes average recorded investment and interest income recognized for impaired commercial mortgage loans by class, for the years ended:

 

(in millions)

    Office      Industrial      Retail      Other      Total  

December 31, 2013

               

Average recorded investment

    $ 5       $ 20       $ 5       $ —         $ 30   

Interest income recognized

    $ 1       $ 1       $ 1       $ —         $ 3   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012

               

Average recorded investment

    $ 9       $ 20       $ 11       $ 34       $ 74   

Interest income recognized

    $ 1       $ 2       $ 1       $ 6       $ 10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

As of December 31, 2013 and 2012, the Company’s mortgage loans classified as delinquent and/or in non-accrual status were immaterial in relation to the total mortgage loan portfolio. The Company had no mortgage loans 90 days or more past due and still accruing interest.

Management evaluates the credit quality of individual mortgage loans and the portfolio as a whole through a number of loan quality measurements, including, but not limited to, LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies mortgage loans representing the lowest risk profile and lowest potential for loss and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually.

 

29

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio, as of the dates indicated:

 

     LTV ratio      DSC ratio  

(in millions)

    Less
than
80%		      80% - less
than 90%		      90% or
greater		      Total      Greater
than 1.10		     1.00-1.10     Less than
1.00		     Total  

December 31, 2013:

                     

Apartment

    $ 1,788       $ 52       $ 30       $ 1,870       $ 1,857      $ 6      $ 7      $ 1,870   

Industrial

      951         52         86         1,089         893        122        74        1,089   

Office

      837         30         38         905         800        43        62        905   

Retail

      2,236         41         21         2,298         2,214        61        23        2,298   

Other

      213         —           1         214         214        —          —          214   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 6,025       $ 175       $ 176       $ 6,376       $ 5,978      $ 232      $ 166      $ 6,376   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average DSC ratio

      1.77         1.22         1.00         1.74         n/a        n/a        n/a        n/a   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average LTV ratio

      n/a         n/a         n/a         n/a         60 %      61 %      91 %      61 % 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2012:

                     

Apartment

    $ 1,119       $ 129       $ 62       $ 1,310       $ 1,303      $ 5      $ 2      $ 1,310   

Industrial

      922         76         162         1,160         951        121        88        1,160   

Office

      776         55         42         873         783        16        74        873   

Retail

      1,940         250         86         2,276         2,139        92        45        2,276   

Other

      189         57         6         252         252        —          —          252   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 4,946       $ 567       $ 358       $ 5,871       $ 5,428      $ 234      $ 209      $ 5,871   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average DSC ratio

      1.74         1.27         1.07         1.65         n/a        n/a        n/a        n/a   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average LTV ratio

      n/a         n/a         n/a         n/a         66 %      76 %      96 %      68 % 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

While these loan quality measurements contribute to management’s assessment of relative credit risk in the mortgage loan portfolio for the dates indicated based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.

Available-For-Sale Securities on Deposit, Held in Trust and Pledged as Collateral

Available-for-sale securities with a carrying value of $8 million and $9 million were on deposit with various regulatory agencies as required by law as of December 31, 2013 and 2012, respectively. Additionally, available-for-sale securities with a carrying value of $849 million and $73 million were pledged as collateral to secure recoveries under reinsurance contracts and other funding agreements as of December 31, 2013 and 2012, respectively. These securities are primarily included in fixed maturity securities in the consolidated balance sheets.

 

30

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

Tax Credit Funds

The Company has sold $1.2 billion and $0.9 billion in Tax Credit Funds to unrelated third parties as of December 31, 2013 and 2012, respectively. The Company has guaranteed after-tax benefits to the third party investors through periods ending in 2028. The Company held immaterial reserves on these transactions as of December 31, 2013 and 2012. These guarantees are in effect for periods of approximately 15 years each. The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields, the Company must fund any shortfall. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $796 million, but the company does not anticipate making any material payments related to the guarantees. The Company’s risks are mitigated in the following ways: (1) the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2) the Company may replace underperforming properties to mitigate exposure to guarantee payments and (3) the Company oversees the asset management of the deals.

Consolidated VIEs

The Company has relationships with VIEs where the Company is the primary beneficiary. These consolidated VIEs are primarily made up of Low-Income-Housing Tax Credit Funds with guarantees to limited partners. Net assets (controlling and noncontrolling interests) of all consolidated VIEs totaled $680 million and $347 million as of December 31, 2013 and 2012, respectively, which were composed primarily of other investments of $554 million, other assets of $182 million and other liabilities of $82 million as of December 31, 2013, and other investments of $348 million as of December 31, 2012. The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs.

Unconsolidated VIEs

In addition to the consolidated VIEs, the Company holds investments in VIEs where the Company is not the primary beneficiary, which are primarily investments in Tax Credit Funds without guarantees to limited partners. The carrying value of these investments was $104 million and $222 million as of December 31, 2013 and 2012, respectively. In addition, the Company has made commitments for further investments in these VIEs of $29 million and $66 million as of December 31, 2013 and 2012, respectively.

Net Investment Income

The following table summarizes net investment income by investment type, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Fixed maturity securities, available-for-sale

    $ 1,565      $ 1,506      $ 1,502   

Mortgage loans

      348        366        370   

Policy loans

      52        53        56   

Other

      (57 )      (45 )      (34 ) 
  

 

 

    

 

 

    

 

 

  

Gross investment income

    $ 1,908      $ 1,880      $ 1,894   
  

 

 

    

 

 

    

 

 

  

Investment expenses

      59        55        50   
  

 

 

    

 

 

    

 

 

  

Net investment income

    $ 1,849      $ 1,825      $ 1,844   
  

 

 

    

 

 

    

 

 

  

 

31

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

Net Realized Investment Gains and Losses, Net of Other-Than-Temporary Impairments

The following table summarizes net realized investment gains and losses, net of other-than-temporary impairments, by source, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Net derivative gains (losses)

    $ 705      $ 314      $ (1,636 ) 

Realized gains on sales

      32        48        64   

Realized losses on sales

      (54 )      (23 )      (45 ) 

Other

      —          12        (19 ) 
  

 

 

    

 

 

    

 

 

  

Net realized investment gains (losses) before other-than-temporary impairments on fixed maturity securities

    $ 683      $ 351      $ (1,636 ) 

Other-than-temporary impairments on fixed maturity securities1

      (5 )      (32 )      (40 ) 
  

 

 

    

 

 

    

 

 

  

Net realized investment gains (losses), net of other-than-temporary impairments

    $ 678      $ 319      $ (1,676 ) 
  

 

 

    

 

 

    

 

 

  

 

1  Other-than-temporary impairments on fixed maturity securities are net $6 million, $36 million and $95 million of non-credit losses included in other comprehensive income for the years ended December 31, 2013, 2012 and 2011, respectively.

Proceeds from the sale of available-for-sale securities were $1.1 billion, $0.8 billion and $1.6 billion during the years ended December 31, 2013, 2012 and 2011, respectively. Gross gains of $31 million, $47 million and $50 million and gross losses of $50 million, $20 million and $39 million were realized on sales of available-for-sale securities during the years ended December 31, 2013, 2012 and 2011, respectively.

The following table summarizes the cumulative credit losses, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Cumulative credit losses at beginning of year1

    $ (289 )    $ (328 )    $ (340 ) 

New credit losses

      (3 )      (18 )      (8 ) 

Incremental credit losses

      (3 )      (10 )      (29 ) 

Losses related to securities included in the beginning balance sold or paid down during the period

      23        67        49   
  

 

 

    

 

 

    

 

 

  

Cumulative credit losses at end of year1

    $ (272 )    $ (289 )    $ (328 ) 
  

 

 

    

 

 

    

 

 

  

 

1  Cumulative credit losses are defined as amounts related to the Company’s credit portion of the other-than-temporary impairment losses on debt securities that the Company does not intend to sell and that it is not more likely than not the Company will be required to sell prior to recovery of the amortized cost basis.

 

32

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

(7) Derivative Instruments

The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative instruments.

Interest rate risk management. The Company uses interest rate contracts, primarily interest rate swaps, to reduce or alter interest rate exposure arising from mismatches between assets and liabilities. In the case of interest rate swaps, the Company enters into a contractual agreement with a counterparty to exchange, at specified intervals, the difference between fixed and variable rates of interest, calculated on a reference notional amount.

Interest rate swaps are used by the Company in association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate swaps are generally used to convert fixed rate cash flow streams to variable rate cash flow streams or vice versa. The Company also enters into interest rate swap transactions which are structured to provide an offset against the negative impact of higher interest rates on the Company’s capital position.

Equity market and interest rate risk management. The Company has a variety of variable annuity products with guaranteed benefit features. These products and related obligations expose the Company to various market risks, primarily equity and interest rate risks. Adverse changes in the equity markets or interest rate movements expose the Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return swaps.

Foreign currency risk management. As part of its regular investing activities, the Company may purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally offsets the changes in the functional-currency equivalent cash flows of the hedged item. To mitigate this risk, the Company uses cross-currency swaps and futures, which are primarily included in other derivative contracts in the following tables.

Credit risk associated with derivative transactions. The Company periodically evaluates the risks within the derivative portfolios due to credit exposure. When evaluating this risk, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company’s own credit as it relates to derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. In addition, the impact the Company’s exposure to credit risk could have on the effectiveness of the Company’s hedging relationships is considered. As of December 31, 2013 and 2012, the impact of the exposure to credit risk on the fair value measurement of derivatives and the effectiveness of the Company’s hedging relationships was immaterial.

 

33

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated:

 

     Derivative assets      Derivative liabilities  

(in millions)

    Fair value      Notional      Fair value      Notional  

December 31, 2013

            

Derivatives designated and qualifying as hedging instruments

    $ 1       $ 6       $ 26       $ 345   

Derivatives not designated as hedging instruments:

            

Interest rate contracts

    $ 1,787       $ 26,156       $ 2,100       $ 29,715   

Equity contracts

      343         6,556         —           —     

Total return swaps

      6         1,101         52         1,183   

Other derivative contracts

      —           —           5         2   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative positions1

    $ 2,137       $ 33,819       $ 2,183       $ 31,245   
  

 

 

     

 

 

     

 

 

     

 

 

  

December 31, 2012

            

Derivatives designated and qualifying as hedging instruments

    $ 4       $ 79       $ 21       $ 192   

Derivatives not designated as hedging instruments:

            

Interest rate contracts

    $ 1,960       $ 21,216       $ 2,065       $ 23,746   

Equity contracts

      822         7,445         —           —     

Total return swaps

      4         1,513         32         1,551   

Other derivative contracts

      —           10         5         17   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total derivative positions1

    $ 2,790       $ 30,263       $ 2,123       $ 25,506   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

1  Derivative assets and liabilities are included in other assets and other liabilities, respectively, in the consolidated balance sheets. As of December 31, 2013 and 2012, derivative assets exclude $196 million and $170 million, respectively, of accrued interest receivable, and derivative liabilities exclude $227 million and $179 million, respectively, of accrued interest payable.

The fair value of the Company’s derivative positions, subject to offsetting by master netting agreements of $1.7 billion and $2.0 billion as of December 31, 2013 and 2012, respectively, and by collateral received from or posted with counterparties, resulted in immaterial net uncollateralized derivative asset and liability positions as of December 31, 2013 and 2012. As of December 31, 2013 and 2012, the Company held cash collateral from derivative counterparties of $382 million and $798 million, respectively. The Company held $29 million of securities as off-balance sheet collateral as of December 31, 2013. No securities were held as off-balance sheet collateral as of December 31, 2012. As of December 31, 2013 and 2012, the Company had posted cash collateral of $435 million and $228 million, respectively, and pledged securities with a fair value of $173 million and $148 million, respectively, with derivative counterparties.

 

34

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended:

 

(in millions)

   December 31,
2013		     December 31,
2012		     December 31,
2011		  

Derivatives designated and qualifying as hedging instruments

   $ (1 )    $ (1 )    $ (4 ) 

Derivatives not designated as hedging instruments:

      

Interest rate contracts

   $ (209 )    $ (125 )    $ (44 ) 

Equity contracts

     (776 )      (665 )      (45 ) 

Total return swaps

     (321 )      (343 )      (17 ) 

Other derivative contracts

     (9 )      (1 )      (6 ) 

Net interest settlements

     14        53        34   
 

 

 

    

 

 

    

 

 

  

Total derivative losses1

   $ (1,302 )    $ (1,082 )    $ (82 ) 
 

 

 

    

 

 

    

 

 

  

Change in embedded derivatives on guaranteed benefit annuity programs2

     1,751        1,185        (1,674 ) 

Other revenue on guaranteed benefit annuity programs

     256        211        120   
 

 

 

    

 

 

    

 

 

  

Change in embedded derivative liabilities and related fees

   $ 2,007      $ 1,396      $ (1,554 ) 
 

 

 

    

 

 

    

 

 

  

Net realized derivative gains (losses)

   $ 705      $ 314      $ (1,636 ) 
 

 

 

    

 

 

    

 

 

  

 

1  Included in total derivative losses are economic hedging losses of $1.8 billion, $827 million and gains of $1.0 billion related to the guaranteed benefit annuity programs for the years ended December 31, 2013, 2012 and 2011, respectively.
2  As part of the Company’s annual comprehensive review of DAC model assumptions, all relevant assumptions impacting the fair value of embedded derivatives on annuity programs are also reviewed and updated. For the individual variable annuity business, the change in the embedded derivatives on guaranteed benefit annuity programs for the year ended December 31, 2013 includes model enhancements and updated assumptions for discounting, benefit utilization, mortality and lapse rates. The change in embedded derivatives on guaranteed benefit annuity programs for the year ended December 31, 2012 included updated assumptions for lapse rates, mortality, withdrawal behavior and benefit utilization.

 

35

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

(8) Fair Value Measurements

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2013:

 

(in millions)

    Level 1      Level 2     Level 3     Total  

Assets

          

Investments:

          

Fixed maturity securities, available-for-sale:

          

U.S. Treasury securities and obligations of U.S. Government corporations and agencies

    $ 557       $ 1      $ 3      $ 561   

Obligations of states, political subdivisions and foreign governments

      63         1,900        —          1,963   

Corporate public securities

      1         18,705        79        18,785   

Corporate private securities

      —           3,791        803        4,594   

Residential mortgage-backed securities

      791         3,203        9        4,003   

Commercial mortgage-backed securities

      —           1,504        —          1,504   

Other asset-backed securities

      —           645        194        839   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 1,412       $ 29,749      $ 1,088      $ 32,249   

Other investments at fair value

      64         357        45        466   
  

 

 

     

 

 

    

 

 

    

 

 

  

Investments at fair value

    $ 1,476       $ 30,106      $ 1,133      $ 32,715   
  

 

 

     

 

 

    

 

 

    

 

 

  

Derivative assets

      —           1,794        343        2,137   

Separate account assets

      80,647         1,339        2,083        84,069   
  

 

 

     

 

 

    

 

 

    

 

 

  

Assets at fair value

    $ 82,123       $ 33,239      $ 3,559      $ 118,921   
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities

          

Future policy benefits and claims:

          

Embedded derivatives on living benefits

    $ —         $ —        $ 1,094      $ 1,094   

Embedded derivatives on indexed products

      —           —          (84 )      (84 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Total future policy benefits and claims

    $ —         $ —        $ 1,010      $ 1,010   

Derivative liabilities

      —           (2,178 )      (5 )      (2,183 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities at fair value

    $ —         $ (2,178 )    $ 1,005      $ (1,173 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

 

36

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2013:

 

    Balance
as of
December 31,
2012		     Net gains (losses)                             Balance
as of
December 31,
2013		  

(in millions)

     In operations1     In other
comprehensive
income		     Purchases     Sales     Transfers
into
Level 3		     Transfers
out of
Level 3		    

Assets

                

Investments:

                

Fixed maturity securities, available-for-sale:

                

Corporate private securities

   $ 772      $ (1 )$      (2 )$      91      $ (117 )$      127      $ (67 )$      803   

Other asset-backed securities

     291        —          10        6        (62 )      15        (66 )      194   

Other

     134        —          (7 )      18        (53 )      —          (1 )      91   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed maturity securities, available-for-sale, at fair value2

   $ 1,197        (1 )      1        115        (232 )      142        (134 )      1,088   

Other investments at fair value

     62        (6 )      6        5        (22 )      —          —          45   

Derivative assets3

     822        (447 )      —          129        (161 )      —          —          343   

Separate account assets

     2,025        58        —          —          —          —          —          2,083   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Assets at fair value

   $ 4,106      $ (396 )$      7      $ 249      $ (415 )$      142      $ (134 )$      3,559   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

                

Future policy benefits and claims:

                

Embedded derivatives on living benefits

   $ (657 )$      1,751      $ —        $ —        $ —        $ —        $ —        $ 1,094   

Embedded derivatives on indexed products

     (91 )      7        —          —          —          —          —          (84 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total future policy benefits and claims

   $ (748 )$      1,758      $ —        $ —        $ —        $ —        $ —        $ 1,010   

Derivative liabilities3

     (5 )      —          —          —          —          —          —          (5 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities at fair value

   $ (753 )$      1,758      $ —        $ —        $ —        $ —        $ —        $ 1,005   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1  Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized (losses) gains included in operations on assets and liabilities still held at the end of the year was $(6) million for other investments at fair value, $(297) million for derivative assets and $1.8 billion for future policy benefits and claims.
2  Non-binding broker quotes were utilized to determine a fair value of $924 million of total fixed maturity securities as of December 31, 2013.
3  Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.

Transfers into and out of Level 3 during the year ended December 31, 2013 are primarily due to certain corporate private securities and other asset-backed securities, which changed pricing sources between broker quotes and independent pricing services. There were no transfers between Levels 1 and 2 during the year ended December 31, 2013.

 

37

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

As discussed in Note 2, the valuation of embedded derivatives in living benefit guarantees and equity indexed products incorporates many inputs. Significant unobservable inputs for living benefit guarantees include discounting, index volatility, mortality, lapse rates, wait period and benefit utilization, while significant unobservable inputs for equity indexed products include mortality, lapse rates and index volatility. For both products, the Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money (living benefit guarantees only) and the existence of surrender charges, from current experience and industry data. The fair value for these benefits is calculated using the mean of discounted cash flows across numerous random scenarios, an approach that is commonly used by the insurance industry for this type of valuation. This process considers a broader range of assumptions than what would be found in a deterministic approach.

Living Benefit Guarantees

The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities classified as Level 3 as of December 31, 2013:

 

Unobservable Inputs

   

Range

Mortality

    0.1%-8%2

Lapse

    0%-35%

Wait period

    0 yrs – 30 yrs3

Efficiency of benefit utilization1

    65%-100%

Discount rate

    See footnote 4

Index volatility

    15%-25%

 

1  The unobservable input is not applicable to GMABs.
2  Represents the mortality for the majority of business with living benefits, with policyholders ranging from 45 to 85.
3  A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period.
4  Incorporates the liquidity and non-performance risk adjustment. The liquidity spread takes into consideration market observables for spreads in illiquid assets. The non-performance risk adjustment reflects an additional spread over LIBOR determined by market observables for similarly rated public bonds.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness and applicable surrender charges. All else being equal, policies that are in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge.

The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals. These assumptions vary by the product type, age of the policyholder and policy duration. Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced. All else being equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue. In addition, policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount.

 

38

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

A higher discount rate tends to decrease the value of the liability and a lower discount rate tends to increase the value of the liability.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

Equity Indexed Products

The following table summarizes significant unobservable inputs used for fair value measurements for indexed universal life equity indexed products classified as Level 3 as of December 31, 2013:

 

Unobservable Inputs

   

Range

Mortality

    0%-4%1

Lapse

    0%-10%

Index volatility

    15%-25%

 

1  Represents the mortality for the majority of business, with policyholders ranging from 0 to 75.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the equity indexed products:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability. Factors that impact the predicted lapse rate can include: age, policy duration, policy size, and applicable surrender charges. All else being equal, policies with a surrender charge present will have lower lapse rates than policies without a surrender charge.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

Separate Accounts

The Company’s separate account assets include an investment in a mutual fund with a non-readily determinable fair value. Net asset value has been used to estimate the fair value of this investment as a practical expedient. The investments are included in Level 3 as they may not be redeemed until a seven year guarantee period expires in 2016. The investment strategy of this fund is to build a portfolio where the assets shall be sufficient to achieve a target portfolio value by the end of the seven year guarantee period. The net asset value of this fund reported in separate account assets was $1.7 billion and $1.6 billion as of December 31, 2013 and 2012, respectively.

 

39

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table summarizes assets and liabilities held at fair value on a recurring basis as of December 31, 2012:

 

(in millions)

    Level 1      Level 2     Level 3     Total  

Assets

          

Investments:

          

Fixed maturity securities, available-for-sale:

          

U.S. Treasury securities and obligations of U.S. Government corporations and agencies

    $ 592       $ 2      $ 3      $ 597   

Obligations of states, political subdivisions and foreign governments

      73         2,047        —          2,120   

Corporate public securities

      1         17,890        119        18,010   

Corporate private securities

      —           3,817        772        4,589   

Residential mortgage-backed securities

      484         4,173        10        4,667   

Commercial mortgage-backed securities

      —           1,335        2        1,337   

Other asset-backed securities

      —           200        291        491   
  

 

 

     

 

 

    

 

 

    

 

 

  

Total fixed maturity securities, available-for-sale, at fair value

    $ 1,150       $ 29,464      $ 1,197      $ 31,811   

Other investments at fair value

      45         1,001        62        1,108   
  

 

 

     

 

 

    

 

 

    

 

 

  

Investments at fair value

    $ 1,195       $ 30,465      $ 1,259      $ 32,919   
  

 

 

     

 

 

    

 

 

    

 

 

  

Derivative assets

      —           1,968        822        2,790   

Separate account assets

      68,185         1,230        2,025        71,440   
  

 

 

     

 

 

    

 

 

    

 

 

  

Assets at fair value

    $ 69,380       $ 33,663      $ 4,106      $ 107,149   
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities

          

Future policy benefits and claims:

          

Embedded derivatives on living benefits

    $ —         $ —        $ (657 )    $ (657 ) 

Embedded derivatives on indexed products

      —           —          (91 )      (91 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Total future policy benefits and claims

    $ —         $ —        $ (748 )    $ (748 ) 

Derivative liabilities

      —           (2,118 )      (5 )      (2,123 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

Liabilities at fair value

    $ —         $ (2,118 )    $ (753 )    $ (2,871 ) 
  

 

 

     

 

 

    

 

 

    

 

 

  

 

40

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2012:

 

    Balance
as of
December
31, 2011		     Net gains (losses)                             Balance
as of
December
31, 2012		  

(in millions)

     In operations1     In other
comprehensive
income		     Purchases     Sales     Transfers
into
Level 3		     Transfers
out of
Level 3		    

Assets

                

Investments:

                

Fixed maturity securities, available-for-sale:

                

Corporate private securities

   $ 1,209      $ 2      $ 13      $ 69      $ (187 )$      40      $ (374 )$      772   

Other asset-backed securities

     251        2        53        36        (61 )      10        —          291   

Other

     131        —          11        2        (8 )      1        (3 )      134   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed maturity securities, available-for-sale, at fair value2

   $ 1,591        4        77        107        (256 )      51        (377 )      1,197   

Other investments at fair value

     43        16        3        —          —          —          —          62   

Derivative assets3

     1,004        (353 )      —          350        (179 )      —          —          822   

Separate account assets

     1,952        73        —          —          —          —          —          2,025   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Assets at fair value

   $ 4,590      $ (260 )$      80      $ 457      $ (435 )$      51      $ (377 )$      4,106   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities

                

Future policy benefits and claims:

                

Embedded derivatives on living benefits

   $ (1,842 )$      1,185      $ —        $ —        $ —        $ —        $ —        $ (657 ) 

Embedded derivatives on indexed products

     (63 )      (28 )      —          —          —          —          —          (91 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total future policy benefits and claims

   $ (1,905 )$      1,157      $ —        $ —        $ —        $ —        $ —        $ (748 ) 

Derivative liabilities3

     (6 )      1        —          —          —          —          —          (5 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Liabilities at fair value

   $ (1,911 )$      1,158      $ —        $ —        $ —        $ —        $ —        $ (753 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1  Net gains and losses included in operations are reported in net realized investment gains and losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets are attributable to contractholders and therefore are not included in the Company’s earnings. The change in unrealized gains (losses) included in operations on assets and liabilities still held as of the end of the year was $16 million for other investments at fair value, $(257) million for derivative assets, $1.2 billion for future policy benefits and claims and $(1) million for derivative liabilities.
2  Non-binding broker quotes were utilized to determine a fair value of $1.1 billion of total fixed maturity securities as of December 31, 2012.
3  Non-binding broker quotes were utilized to determine a fair value of all Level 3 derivative assets and liabilities.

During the year ended December 31, 2012, transfers from Level 1 to Level 2 within the debt securities issued by foreign governments were $42 million. There were no transfers from Level 2 to Level 1 during the year ended December 31, 2012.

Transfers into and out of Level 3 during the year ended December 31, 2012 represented changes in the sources used to price certain securities and changes in the Company’s assumptions related to the observability of certain inputs.

 

41

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

Financial Instruments Not Carried at Fair Value

The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated. The valuation techniques used to estimate these fair values are described below.

 

     December 31, 2013      December 31, 2012  

(in millions)

    Carrying
value		      Fair
value		      Level 2      Level 3      Carrying
value		      Fair
value		      Level 2      Level 3  

Assets

                        

Investments:

                        

Mortgage loans, net of allowance

    $ 6,341       $ 6,481       $ —         $ 6,481       $ 5,827       $ 5,988       $ —         $ 5,988   

Policy loans

    $ 987       $ 987       $ —         $ 987       $ 980       $ 980       $ —         $ 980   

Liabilities

                        

Investment contracts

    $ 21,874       $ 20,436       $ —         $ 20,436       $ 20,123       $ 19,561       $ —         $ 19,561   

Short-term debt

    $ 278       $ 278       $ —         $ 278       $ 300       $ 300       $ —         $ 300   

Long-term debt

    $ 707       $ 1,004       $ 997       $ 7       $ 1,038       $ 1,323       $ 1,282       $ 41   

Mortgage loans, net of allowance. The fair values of mortgage loans are estimated using discounted cash flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.

Policy loans. The carrying amount reported in the consolidated balance sheets approximates fair value.

Investment contracts. For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued. The fair value of adjustable rate contracts approximates their carrying value.

Short-term debt. The carrying amount reported in the consolidated balance sheets approximates fair value.

Long-term debt. The fair value for long-term debt are based on estimated market prices using observable inputs from similar debt instruments.

 

42

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

(9) Goodwill

The following table summarizes changes in the carrying value of goodwill by segment for the years indicated:

 

(in millions)

    Retirement
Plans		      Individual
Products &
Solutions -
Life and
NBSG		      Total  

Balance as of December 31, 20111

    $ 25       $ 175       $ 200   

Adjustments

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20121

    $ 25       $ 175       $ 200   

Adjustments

      —           —           —     
  

 

 

     

 

 

     

 

 

  

Balance as of December 31, 20131

    $ 25       $ 175       $ 200   
  

 

 

     

 

 

     

 

 

  

 

1 The goodwill balances have not been previously impaired.

 

43

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

(10) Closed Block

The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that enter into the determination of amounts that are to be paid to policyholders.

The following table summarizes financial information for the closed block, as of the dates indicated:

 

(in millions)

   December 31,
2013		     December 31,
2012		  

Liabilities:

    

Future policyholder benefits

   $ 1,703      $ 1,732   

Policyholder funds and accumulated dividends

     141        142   

Policyholder dividends payable

     23        24   

Policyholder dividend obligation

     113        198   

Other policy obligations and liabilities

     29        32   
 

 

 

    

 

 

  

Total liabilities

   $ 2,009      $ 2,128   
 

 

 

    

 

 

  

Assets:

    

Fixed maturity securities, available-for-sale

   $ 1,320      $ 1,511   

Mortgage loans, net of allowance

     257        183   

Policy loans

     157        164   

Other assets

     93        77   
 

 

 

    

 

 

  

Total assets

   $ 1,827      $ 1,935   
 

 

 

    

 

 

  

Excess of reported liabilities over assets

     182        193   
 

 

 

    

 

 

  

Portion of above representing other comprehensive income:

    

(Decrease) increase in unrealized gain on fixed maturity securities, available-for-sale

   $ (92 )    $ 45   

Adjustment to policyholder dividend obligation

     92        (45 ) 
 

 

 

    

 

 

  

Total

   $ —        $ —     
 

 

 

    

 

 

  

Maximum future earnings to be recognized from assets and liabilities

   $ 182      $ 193   
 

 

 

    

 

 

  

Other comprehensive income:

    

Fixed maturity securities, available-for-sale:

    

Fair value

   $ 1,320      $ 1,511   

Amortized cost

     1,235        1,334   

Shadow policyholder dividend obligation

     (85 )      (177 ) 
 

 

 

    

 

 

  

Net unrealized appreciation

   $ —        $ —     
 

 

 

    

 

 

  

 

44

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

The following table summarizes closed block operations for the years ended:

 

(in millions)

   December 31,
2013		     December 31,
2012		     December 31,
2011		  

Revenues:

      

Premiums

   $ 66      $ 73      $ 77   

Net investment income

     94        98        102   

Realized investment gains (losses)

     —          1        (3 ) 

Realized losses credited to policyholder benefit obligation

     (4 )      (5 )      (1 ) 
 

 

 

    

 

 

    

 

 

  

Total revenues

   $ 156      $ 167      $ 175   
 

 

 

    

 

 

    

 

 

  

Benefits and expenses:

      

Policy and contract benefits

   $ 123      $ 134      $ 145   

Change in future policyholder benefits and interest credited to policyholder accounts

     (29 )      (27 )      (35 ) 

Policyholder dividends

     44        50        55   

Change in policyholder dividend obligation

     3        (8 )      (8 ) 

Other expenses

     (2 )      1        1   
 

 

 

    

 

 

    

 

 

  

Total benefits and expenses

   $ 139      $ 150      $ 158   
 

 

 

    

 

 

    

 

 

  

Total revenues, net of benefits and expenses, before federal income tax expense

   $ 17      $ 17      $ 17   

Federal income tax expense

     6        6        6   
 

 

 

    

 

 

    

 

 

  

Revenues, net of benefits and expenses and federal income tax expense

   $ 11      $ 11      $ 11   
 

 

 

    

 

 

    

 

 

  

Maximum future earnings from assets and liabilities:

      

Beginning of period

   $ 193      $ 204      $ 215   

Change during period

     (11 )      (11 )      (11 ) 
 

 

 

    

 

 

    

 

 

  

End of period

   $ 182      $ 193      $ 204   
 

 

 

    

 

 

    

 

 

  

Cumulative closed block earnings from inception through December 31, 2013, 2012 and 2011 were higher than expected as determined in the actuarial calculation. Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $28 million, $21 million and $23 million as of December 31, 2013, 2012 and 2011, respectively.

 

45

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

(11) Short-Term Debt

The Company classifies debt as short-term if the maturity date at inception is less than one year and all other debt instruments as long-term.

The following table summarizes the carrying value of short-term debt and weighted average annual interest rates, as of the dates indicated:

 

(in millions)

    December 31,
2013		      December 31,
2012		  

$600 million commercial paper program (0.24% and 0.29%, respectively)

    $ 278       $ 300   
  

 

 

     

 

 

  

Total short-term debt

    $ 278       $ 300   
  

 

 

     

 

 

  

In March 2012, NLIC entered into an agreement with the FHLB that allows the Company access to borrow up to $250 million and expires on March 28, 2014. The Company had $4.3 billion in eligible collateral and no amounts outstanding under the agreement as of December 31, 2013. Additionally, as part of the agreement, NLIC purchased $25 million in capital stock with the FHLB.

In May 2011, NMIC, NFS, and NLIC entered into a $600 million revolving variable rate credit facility upon expiration of its existing facility of the same amount. The new facility matures on May 6, 2015 and is subject to various covenants, as defined in the agreement. NLIC had no amounts outstanding under the facility as of December 31, 2013 and 2012.

The Company has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program. The maximum amount available under the agreement is $350 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. The Company had no amounts outstanding under this agreement as of December 31, 2013 and 2012.

The terms of each debt instrument contain various restrictive covenants, including, but not limited to, minimum statutory surplus and minimum net worth requirements, and maximum debt to tangible net worth requirements, as defined in the agreements. The Company was in compliance with all covenants as of December 31, 2013 and 2012.

The amount of interest paid on short-term debt was immaterial in 2013, 2012 and 2011.

 

(12) Long-Term Debt

The following table summarizes the carrying value of long-term debt, as of the dates indicated:

 

(in millions)

    December 31,
2013		      December 31,
2012		  

8.15% surplus note, due June 26, 2032, payable to NFS

    $ 300       $ 300   

7.50% surplus note, due December 17, 2031, payable to NFS

      300         300   

6.75% surplus note, due December 23, 2033, payable to NFS

      100         100   

Variable funding surplus note, repaid June 2013

      —           297   

Other

      7         41   
  

 

 

     

 

 

  

Total long-term debt

    $ 707       $ 1,038   
  

 

 

     

 

 

  

 

46

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

On December 31, 2010, Olentangy Reinsurance, LLC (Olentangy), a special purpose financial captive insurance company subsidiary of NLAIC domiciled in the State of Vermont, issued a variable funding surplus note due on December 31, 2040 to Nationwide Corporation, a majority-owned subsidiary of NMIC. In June 2013, the Company paid the outstanding balance of the surplus note. The Company made interest payments on this surplus note totaling $5 million and $10 million for the years ending December 31, 2013 and 2012, respectively. Any payment of interest or principal on the note requires the prior approval of the State of Vermont.

The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended December 31, 2013, 2012 and 2011. Payments of interest and principal under the notes require the prior approval of the ODI.

 

(13) Federal Income Taxes

The following table summarizes the federal income tax expense (benefit) attributable to income (loss) before loss attributable to noncontrolling interests, for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
20111		  

Current tax (benefit) expense

    $ (33 )    $ (144 )    $ 55   

Deferred tax expense (benefit)

      346        243        (482 ) 
  

 

 

    

 

 

    

 

 

  

Total tax expense (benefit)

    $ 313      $ 99      $ (427 ) 
  

 

 

    

 

 

    

 

 

  

 

1  The balances reflect a change in accounting principle, as described in Note 2.

The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to income (loss) before loss attributable to noncontrolling interests, for the years ended:

 

     December 31,
2013		     December 31,
2012		     December 31,
20111		  

(in millions)

    Amount     %     Amount     %     Amount     %  

Rate reconciliation:

             

Computed (expected tax expense (benefit))

    $ 469        35 %    $ 245        35 %    $ (297 )      35 % 

Dividends received deduction

      (112 )      (8 )%      (75 )      (11 )%      (99 )      12 % 

Tax credits

      (82 )      (6 )%      (85 )      (12 )%      (30 )      3 % 

Other, net

      38        2 %      14        2 %      (1 )      —   % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

    $ 313        23 %    $ 99        14 %    $ (427 )      50 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

1  The balances reflect a change in accounting principle, as described in Note 2.

The Company’s current federal income tax (liability) receivable was $(13) million and $61 million as of December 31, 2013 and 2012, respectively.

Total federal income taxes (refunded) paid were $(107) million, $(95) million and $121 million for the years ended December 31, 2013, 2012 and 2011, respectively.

During 2013 and 2011, the Company recorded a tax benefit of $13 million and $10 million, respectively. These changes in estimates were primarily driven by differences in the Company’s separate account dividends received deduction (“DRD”) between the previous year’s estimate and the amount reported on the previous year’s tax return. No material changes in estimated income tax expense were recorded in 2012.

 

47

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2013, 2012 and 2011

 

As of December 31, 2013, the Company has gross federal net operating loss carryforwards of $797 million, which expire between 2027 and 2028. In addition, the Company has $222 million in low-income-housing credit carryforwards, which expire between 2024 and 2033, $90 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward and $40 million in foreign tax credit carryforwards which expire between 2019 and 2023. The Company expects to fully utilize all carryforwards.

The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax liability included in other liabilities in the consolidated balance sheets, as of the dates indicated:

 

(in millions)

   December 31,
2013		     December 31,
2012		  

Deferred tax assets:

    

Future policy benefits and claims

   $ 1,244      $ 1,295   

Derivatives, including embedded derivatives

     —          94   

Tax credit carryforwards

     352        288   

Other

     845        478   
 

 

 

    

 

 

  

Gross deferred tax assets

   $ 2,441      $ 2,155   
 

 

 

    

 

 

  

Valuation allowance

     (17 )      (18 ) 
 

 

 

    

 

 

  

Net deferred tax assets

     2,424        2,137   
 

 

 

    

 

 

  

Deferred tax liabilities:

    

Deferred policy acquisition costs

   $ (1,048 )    $ (874 ) 

Available-for-sale securities

     (821 )      (1,338 ) 

Derivatives, including embedded derivatives

     (600 )      —     

Other

     (255 )      (239 ) 
 

 

 

    

 

 

  

Gross deferred tax liabilities

   $ (2,724 )    $ (2,451 ) 
 

 

 

    

 

 

  

Net deferred tax liability

   $ (300 )    $ (314 ) 
 

 

 

    

 

 

  

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Valuation allowances are established when necessary to reduce the deferred tax assets to amounts expected to be realized. The valuation allowance was $17 million and $18 million as of December 31, 2013 and 2012, respectively. The change in the valuation allowance for the years ended December 31, 2013 and 2011 was $1 million and $6 million, respectively, while there was no change in the valuation allowance for the year ended December 31, 2012. Based on management’s analysis, it is more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established valuation allowances.

 

48

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties:

 

(in millions)

    2013     2012     2011  

Balance at beginning of period

    $ 36      $ 76      $ 119   

Additions for current year tax positions

      2        (2 )      9   

Additions for prior years tax positions

      —          25        —     

Reductions for prior years tax positions

      (2 )      (63 )      (52 ) 
  

 

 

    

 

 

    

 

 

  

Balance at end of period

    $ 36      $ 36      $ 76   
  

 

 

    

 

 

    

 

 

  

The Company does not anticipate any significant changes to unrecognized tax benefits during the next twelve months.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities through the 2005 tax year. In 2013, the IRS commenced an examination of the Company’s U.S. income tax returns for the years 2009 through 2010. Any adjustments that may result from IRS examination of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

 

(14) Statutory Financial Information

Statutory Results

The Company’s life insurance subsidiaries are required to prepare statutory financial statements in conformity with the statutory accounting practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state department of insurance. Olentangy was granted a permitted practice from the State of Vermont that changed NLAIC’s valuation of this subsidiary by $66 million as of December 31, 2013, which also allowed NLIC to admit additional deferred tax assets of $10 million as of December 31, 2013. Statutory accounting practices focus on insurer solvency and materially differ from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves using different actuarial assumptions, excluding certain assets from statutory admitted assets; and valuing investments and establishing deferred taxes on a different basis.

The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company’s primary life insurance subsidiary for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Statutory net income (loss)

       

NLIC

    $ 262      $ 764      $ 18   

NLAIC

    $ (103 )    $ (54 )    $ (61 ) 

Statutory capital and surplus

       

NLIC

    $ 3,550      $ 3,837      $ 3,591   

NLAIC

    $ 534      $ 311      $ 302   
  

 

 

    

 

 

    

 

 

  

 

49

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

Dividend Restrictions

The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its domiciliary state. The State of Ohio insurance laws require Ohio-domiciled life insurance companies to seek prior regulatory approval to pay a dividend or distribution of cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding 12 months, exceeds the greater of (1) 10% of statutory-basis policyholders’ surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer for the prior year. During the years ended December 31, 2013 and 2011, NLIC did not pay any dividends to NFS. During the year ended December 31, 2012, NLIC paid a cash dividend of $40 million to NFS. As of January 1, 2014, NLIC has the ability to pay dividends to NFS totaling $355 million without obtaining prior approval.

The State of Ohio insurance laws also require insurers to seek prior regulatory approval for any dividend paid from other than earned surplus. Earned capital and surplus is defined under the State of Ohio insurance laws as the amount equal to the Company’s unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets. Additionally, following any dividend, an insurer’s policyholder capital and surplus must be reasonable in relation to the insurer’s outstanding liabilities and adequate for its financial needs. The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the state of New York that limit the amount of statutory profits on the Company’s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders.

The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.

Regulatory Risk-Based Capital

The National Association of Insurance Commissioners’ (“NAIC”) Risk-Based Capital (“RBC”) model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company’s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio, where NLIC and NLAIC are domiciled, imposes minimum RBC requirements that are developed by the NAIC. The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action. NLIC and NLAIC each exceeded the minimum RBC requirements for all periods presented herein.

 

(15) Related Party Transactions

The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations. These include annuity and life insurance contracts, employee benefit plans, office space cost sharing arrangements, and agreements related to reinsurance, cost sharing, administrative services, marketing, intercompany loans, intercompany repurchases, cash management services and software licensing. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, the number of full-time employees, commission expense and other methods agreed to by the participating companies.

In addition, Nationwide Services Company, LLC (“NSC”), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed. For the years ended December 31, 2013, 2012 and 2011, the Company made payments to NMIC and NSC totaling $277 million, $283 million and $241 million, respectively.

 

50

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates. Total account values of these contracts were $3.3 billion and $3.2 billion as of December 31, 2013 and 2012, respectively. Total revenues from these contracts were $137 million, $140 million and $148 million for the years ended December 31, 2013, 2012 and 2011, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $109 million, $113 million and $122 million for the years ended December 31, 2013, 2012 and 2011, respectively. The terms of these contracts are materially consistent with what the Company offers to unaffiliated parties.

The Company has a cost sharing arrangement with NMIC to occupy office space. For the years ended December 31, 2013, 2012 and 2011, the Company made payments to NMIC of $16 million, $15 million and $14 million, respectively. In addition, an affiliate of NMIC has a cost sharing arrangement with the Company to occupy office space.

NLIC has a reinsurance agreement with NMIC whereby all of NLIC’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are paid to the reinsurer. Under the terms of NLIC’s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. The Company believes that the terms of the modified coinsurance agreements are consistent in all material respects with what the Company could have obtained with unaffiliated parties. Revenues ceded to NMIC for the years ended December 31, 2013, 2012 and 2011 were $179 million, $161 million and $203 million, respectively, while benefits, claims and expenses ceded during these years were $178 million, $167 million and $212 million, respectively.

Funds of Nationwide Funds Group (“NFG”), an affiliate, are offered to the Company’s customers as investment options in certain of the Company’s products. As of December 31, 2013 and 2012, customer allocations to NFG funds totaled $53.2 billion and $45.0 billion, respectively. For the years ended December 31, 2013, 2012 and 2011, NFG paid the Company $163 million, $144 million and $129 million, respectively, for the distribution and servicing of these funds.

Amounts on deposit with NCMC for the benefit of the Company were $228 million and $854 million as of December 31, 2013 and 2012, respectively.

Refer to Note 12 for discussion of variable funding surplus note between Olentangy Reinsurance, LLC and Nationwide Corporation.

Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates were $54 million for the years ended December 31, 2013 and 2012 and $64 million for the year ended December 31, 2011.

The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC. As of December 31, 2013 and 2012, the Company had notes receivable outstanding of $146 million and $126 million, respectively.

 

51

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

 

(16) Contingencies

Legal and Regulatory Matters

The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company’s legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates. These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted. Regulatory proceedings could also affect the outcome of one or more of the Company’s litigation matters. Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company’s consolidated financial position. Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company’s consolidated financial position or results of operations in a particular quarter or annual period.

The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS and state insurance authorities. Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates. The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with NMIC insofar as any inquiry, examination or investigation encompasses NMIC’s operations.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under the Employee Retirement Income Security Act of 1974 (“ERISA”) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief and attorneys’ fees. On November 6, 2009, the Court granted the plaintiffs’ motion for class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. On September 6, 2013, the District Court granted the plaintiffs’ motion for class certification. The case is set for trial beginning August 11, 2014. NLIC continues to defend this lawsuit vigorously.

 

52

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

On November 20, 2007, NRS and NLIC were named in a lawsuit filed in the Circuit Court of Jefferson County, Alabama entitled Ruth A. Gwin and Sandra H. Turner, and a class of similarly situated individuals v Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc., Alabama State Employees Association, PEBCO, Inc. and Fictitious Defendants A to Z. On March 12, 2010, NRS and NLIC were named in a Second Amended Class Action Complaint filed in the Circuit Court of Jefferson County, Alabama entitled Steven E. Coker, Sandra H. Turner, David N. Lichtenstein and a class of similarly situated individuals v. Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc, Alabama State Employees Association, Inc., PEBCO, Inc. and Fictitious Defendants A to Z claiming to represent a class of all participants in the Alabama State Employees Association, Inc. (“ASEA”) Plan, excluding members of the Deferred Compensation Committee, ASEA’s directors, officers and board members, and PEBCO’s directors, officers and board members. On October 22, 2010, the parties to this action executed a court approved stipulation of settlement that agreed to certify a class for settlement purposes only, that provided for payments to the settlement class, and that provided for releases, certain bar orders, and dismissal of the case. The settlement fund has been paid out. On December 6, 2011, the Court entered an Order that NRS owes indemnification to ASEA and PEBCO for only the Coker (Gwin) class action, and dismissed NLIC. The Company has resolved the indemnification claims of ASEA. On February 15, 2013, the Court issued its Order determining the amount of fees due to PEBCO on its indemnification claim. On March 28, 2013, the Company filed a notice of appeal to the Alabama Supreme Court. The case is fully briefed. NRS continues to defend this case vigorously.

On June 8, 2011, NMIC and NLIC were named in a lawsuit filed in Court of Common Pleas, Cuyahoga County, Ohio entitled Stanley Andrews and Donald C. Clark v. Nationwide Mutual Insurance Company and Nationwide Life Insurance Company. The complaint alleges that NMIC and NLIC have an obligation to review the Social Security Administration Death Master File database for all life insurance policyholders who have at least a 70% probability of being deceased according to actuarial tables. The complaint further alleges that NMIC and NLIC are not conducting such a review. The complaint seeks injunctive relief and declaratory judgment requiring NMIC and NLIC to conduct such a review, and alleges NMIC and NLIC have violated the covenant of good faith and fair dealing and have been unjustly enriched by not having conducted such reviews. The lower court granted Nationwide’s motion to dismiss. Plaintiffs appealed. The Court of Appeals affirmed the dismissal on October 24, 2012. Plaintiffs filed a petition for rehearing en banc on November 5, 2012. The Court of Appeals denied the petition on December 14, 2012. Plaintiffs filed a notice of appeal to the Ohio Supreme Court on January 24, 2013. Nationwide filed its memorandum in opposition to plaintiffs’ petition for jurisdiction to the Ohio Supreme Court on February 27, 2013. The Ohio Supreme Court denied plaintiffs’ petition for review of the decision of the Court of Appeals on April 24, 2013. Plaintiffs’ time to file a petition for writ of certiorari to the U.S. Supreme Court has expired, concluding this matter.

In 2012, the Plaintiff, Debtor in Possession Lehman Brothers Special Financing, Inc., filed a class action in the United States Bankruptcy Court for the Southern District of New York seeking the recovery of nearly $3.0 billion in assets from all the named defendants including NLIC and NMIC. This litigation arises from two collateralized debt obligation transactions, 801 Grand and Alta, which resulted in payments to NLIC and NMIC after the Plaintiff and its parent company, Lehman Brothers Holding, Inc. filed for bankruptcy in 2008. This triggered an early termination of the above transactions. The Plaintiff seeks to have sums returned to the bankruptcy estate in addition to prejudgment interest and costs. The case is currently stayed. In 2013, Plaintiff sent correspondence to all defendants inviting settlement discussions and has served NMIC and NLIC with a “SPV Derivatives ADR Notice,” formally starting the Alternative Dispute Resolution process. NMIC and NLIC have responded, and are currently taking part in the ADR process. Mediation was scheduled for and proceeded on December 13, 2013, but the parties reached an impasse. On January 10, 2014, Lehman filed another motion to extend the stay for a final four month period. After a hearing, the court extended the stay to the later of (a) May 20, 2014 or (b) 30 days after the court enters a scheduling order governing the Distributed Action. The parties are negotiating the proposed scheduling order for the conduct of the Distributed Action litigation, which will be finalized by March 24, 2014.

 

53

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

Tax Matters

The Company’s federal income tax returns are routinely audited by the IRS. The Company has established tax reserves as described in Note 2. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

Indemnifications

In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated, and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

 

(17) Reinsurance

The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended:

 

(in millions)

    December 31,
2013		     December 31,
2012		     December 31,
2011		  

Premiums

       

Direct

    $ 1,015      $ 890      $ 832   

Assumed from other companies

      —          —          —     

Ceded to other companies

      (291 )      (255 )      (301 ) 
  

 

 

    

 

 

    

 

 

  

Net

    $ 724      $ 635      $ 531   
  

 

 

    

 

 

    

 

 

  

Life, accident and health insurance in force

       

Direct

    $ 228,095      $ 216,002      $ 209,732   

Assumed from other companies

      6        5        5   

Ceded to other companies

      (58,310 )      (59,895 )      (60,499 ) 
  

 

 

    

 

 

    

 

 

  

Net

    $ 169,791      $ 156,112      $ 149,238   
  

 

 

    

 

 

    

 

 

  

Total amounts recoverable under reinsurance contracts totaled $675 million, $684 million and $704 million as of December 31, 2013, 2012 and 2011, respectively.

 

(18) Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Products and Solutions-Annuity (formerly named Individual Investments), Retirement Plans, Individual Products and Solutions-Life and NBSG (formerly named Individual Protection) and Corporate and Other.

 

54

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts); (2) the adjustment to amortization of DAC and other related to net realized investment gains and losses; and (3) net losses attributable to noncontrolling interest.

Due to a change in the manner in which we view our reportable segments, certain prior period amounts have been restated.

Individual Products and Solutions-Annuity

The Individual Products & Solutions-Annuity segment consists of individual annuity products marketed under the Nationwide DestinationSM and other Nationwide-specific or private label brands. Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while deferred fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period or for the owner’s lifetime without future access to the original investment. The majority of assets and recent sales for the Individual Products & Solutions-Annuity segment consist of deferred variable annuities.

Retirement Plans

The Retirement Plans segment is comprised of the Company’s private and public sector retirement plans businesses. The private sector primarily includes Internal Revenue Code (“IRC”) Section 401 fixed and variable group annuity business, and the public sector primarily includes IRC Section 457 and Section 401(a) business in the form of full-service arrangements that provide plan administration and fixed and variable group annuities as well as administration-only business. The Retirement Plan segment also includes managed account services and stable value wrap products.

Individual Products and Solutions-Life and NBSG

The Individual Products & Solutions-Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and BOLI products; traditional life insurance products; fixed universal life insurance products; and indexed universal life products. Life insurance products provide a death benefit and generally allow the customer to build cash value on a tax-advantaged basis.

Corporate and Other

The Corporate and Other segment includes non-operating realized gains and losses and related amortization, including mark-to-market adjustments on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products & Solutions-Annuity segment and other revenues and expenses not allocated to other segments.

 

55

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

The following tables summarize the Company’s business segment operating results for the years ended:

 

(in millions)

    Individual
Products and
Solutions-
Annuity		     Retirement
Plans		     Individual
Products and
Solutions-Life
and NBSG		      Corporate
and Other		     Total  

December 31, 2013

            

Revenues:

            

Policy charges

    $ 1,021      $ 101      $ 727       $ —        $ 1,849   

Premiums

      416        —          282         26        724   

Net investment income

      546        743        544         16        1,849   

Non-operating net realized investment gains, net of other-than-temporary impairment losses1

      —          —          —           791        791   

Other revenues2

      (109 )      —          —           13        (96 ) 
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total revenues

    $ 1,874      $ 844      $ 1,553       $ 846      $ 5,117   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Benefits and expenses:

            

Interest credited to policyholder accounts

    $ 377      $ 473      $ 213       $ 4      $ 1,067   

Benefits and claims

      688        —          636         30        1,354   

Policyholder dividends

      —          —          61         (2 )      59   

Amortization of DAC

      185        (2 )      125         66        374   

Other expenses, net of deferrals

      303        151        284         184        922   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,553      $ 622      $ 1,319       $ 282      $ 3,776   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 321      $ 222      $ 234       $ 564      $ 1,341   
           

 

 

  

Less:    non-operating net realized investment gains, net of other-than-temporary impairment losses1

      —          —          —           (791 )   

Less:    adjustment to amortization of DAC and other related to net realized investment gains and losses

      —          —          —           70     

Less:    net loss attributable to noncontrolling interest

      —          —          —           82     
  

 

 

    

 

 

    

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 321      $ 222      $ 234       $ (75 )   
  

 

 

    

 

 

    

 

 

     

 

 

    

Assets as of year end

    $ 68,805      $ 29,904      $ 27,183       $ 7,553      $ 133,445   
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

1  Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2  Includes operating items discussed above.

 

56

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

 

(in millions)

    Individual
Products and
Solutions-
Annuity		     Retirement
Plans		      Individual
Products and
Solutions-Life
and NBSG		      Corporate
and Other		     Total  

December 31, 2012

             

Revenues:

             

Policy charges

    $ 899      $ 94       $ 677       $ —        $ 1,670   

Premiums

      334        —           274         27        635   

Net investment income

      551        736         534         4        1,825   

Non-operating net realized investment gains, net of other-than-temporary impairment losses1

      —          —           —           428        428   

Other revenues2

      (124 )      —           —           22        (102 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues

    $ 1,660      $ 830       $ 1,485       $ 481      $ 4,456   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Benefits and expenses:

             

Interest credited to policyholder accounts

    $ 375      $ 457       $ 199       $ 7      $ 1,038   

Benefits and claims

      595        —           589         43        1,227   

Policyholder dividends

      —          —           57         (3 )      54   

Amortization of DAC

      185        14         150         226        575   

Other expenses, net of deferrals

      285        163         250         165        863   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,440      $ 634       $ 1,245       $ 438      $ 3,757   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Income before federal income taxes and noncontrolling interests

    $ 220      $ 196       $ 240       $ 43      $ 699   
            

 

 

  

Less:    non-operating net realized investment gains, net of other-than-temporary impairment losses1

      —          —           —           (428 )   

Less:    adjustment to amortization of DAC and other related to net realized investment gains and losses

      —          —           —           243     

Less:    net loss attributable to noncontrolling interest

      —          —           —           61     
  

 

 

    

 

 

     

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 220      $ 196       $ 240       $ (81 )   
  

 

 

    

 

 

     

 

 

     

 

 

    

Assets as of year end

    $ 58,707      $ 27,842       $ 25,301       $ 8,320      $ 120,170   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

 

1  Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2  Includes operating items discussed above.

 

57

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

 

December 31, 2013, 2012 and 2011

 

(in millions)

    Individual
Products and
Solutions-
Annuity		     Retirement
Plans		      Individual
Products and
Solutions-Life
and NBSG		      Corporate
and Other		     Total  

December 31, 20113

             

Revenues:

             

Policy charges

    $ 781      $ 96       $ 629       $ —        $ 1,506   

Premiums

      234        —           272         25        531   

Net investment income

      527        715         531         71        1,844   

Non-operating net realized investment losses, net of other-than-temporary impairment losses1

      —          —           —           (1,613 )      (1,613 ) 

Other revenues2

      (59 )      —           —           (1 )      (60 ) 
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total revenues

    $ 1,483      $ 811       $ 1,432       $ (1,518 )    $ 2,208   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Benefits and expenses:

             

Interest credited to policyholder accounts

    $ 374      $ 441       $ 198       $ 20      $ 1,033   

Benefits and claims

      476        —           577         9        1,062   

Policyholder dividends

      —          —           67         —          67   

Amortization of DAC

      80        11         75         (101 )      65   

Other expenses, net of deferrals

      269        166         235         160        830   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Total benefits and expenses

    $ 1,199      $ 618       $ 1,152       $ 88      $ 3,057   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

Income (loss) before federal income taxes and noncontrolling interests

    $ 284      $ 193       $ 280       $ (1,606 )    $ (849 ) 
            

 

 

  

Less:    non-operating net realized investment losses, net of other-than-temporary impairment losses1

      —          —           —           1,613     

Less:    adjustment to amortization of DAC and other related to net realized investment gains and losses

      —          —           —           (115 )   

Less:    net loss attributable to noncontrolling interest

      —          —           —           56     
  

 

 

    

 

 

     

 

 

     

 

 

    

Pre-tax operating earnings (loss)

    $ 284      $ 193       $ 280       $ (52 )   
  

 

 

    

 

 

     

 

 

     

 

 

    

Assets as of year end

    $ 57,741      $ 25,114       $ 22,503       $ 6,628      $ 111,986   
  

 

 

    

 

 

     

 

 

     

 

 

    

 

 

  

 

1  Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).
2  Includes operating items discussed above.
3  The balances reflect a change in accounting principle, as described in Note 2.

 

58

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule I Consolidated Summary of Investments – Other Than Investments in Related Parties

As of December 31, 2013 (in millions)

 

Column A

    Column B      Column C      Column D  

Type of investment

    Cost      Fair value      Amount at
which shown
in the
consolidated
balance sheet		  

Fixed maturity securities, available-for-sale:

         

Bonds:

         

U.S. Treasury securities and obligations of U.S. Government corporations and agencies

    $ 484       $ 561       $ 561   

Obligations of states, political subdivisions and foreign governments

      1,892         1,963         1,963   

Public utilities

      2,616         2,759         2,759   

All other corporate, mortgage-backed and asset-backed securities

      26,010         26,966         26,966   
  

 

 

     

 

 

     

 

 

  

Total fixed maturity securities, available-for-sale

    $ 31,002       $ 32,249       $ 32,249   
  

 

 

     

 

 

     

 

 

  

Equity securities, available-for-sale:

         

Common stocks:

         

Industrial, miscellaneous and all other

    $ 6       $ 14       $ 14   

Nonredeemable preferred stocks

      —           10         10   
  

 

 

     

 

 

     

 

 

  

Total equity securities, available-for-sale

    $ 6       $ 24       $ 24   
  

 

 

     

 

 

     

 

 

  

Trading assets

      30         31         31   

Mortgage loans, net of allowance

      6,376            6,341 1 

Policy loans

      987            987   

Other investments

      712            712   

Short-term investments

      411            411   
  

 

 

        

 

 

  

Total investments

    $ 39,524          $ 40,755   
  

 

 

        

 

 

  

 

1  Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements).

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

59

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule III Supplementary Insurance Information

As of December 31, 2013, 2012 and 2011 and for each of the years then ended (in millions)

 

Column A

    Column B     Column C      Column D     Column E      Column F  

Year: Segment

    Deferred
policy
acquisition
costs3		     Future policy
benefits, losses,
claims and
loss expenses		      Unearned
premiums1		     Other policy
claims and
benefits payable1		      Premium
revenue		  

2013

             

IPS - Annuity

    $ 2,214      $ 10,985            $ 416   

Retirement Plans

      179        14,313              —     

IPS - Life and NBSG

      1,557        10,068              282   

Corporate and Other

      (172 )      1,399              26   
  

 

 

    

 

 

          

 

 

  

Total

    $ 3,778      $ 36,765            $ 724   
  

 

 

    

 

 

          

 

 

  

2012

             

IPS - Annuity

    $ 2,110      $ 12,214            $ 334   

Retirement Plans

      168        13,628              —     

IPS - Life and NBSG

      1,442        9,564              301   

Corporate and Other

      (471 )      748              —     
  

 

 

    

 

 

          

 

 

  

Total

    $ 3,249      $ 36,154            $ 635   
  

 

 

    

 

 

          

 

 

  

2011

             

IPS - Annuity

    $ 2,232      $ 12,550            $ 234   

Retirement Plans

      172        12,638              —     

IPS - Life and NBSG

      1,421        9,338              297   

Corporate and Other

      (338 )      726              —     
  

 

 

    

 

 

          

 

 

  

Total

    $ 3,487      $ 35,252            $ 531   
  

 

 

    

 

 

          

 

 

  

Column A

    Column G     Column H      Column I     Column J      Column K  

Year: Segment

    Net
investment
income2		     Benefits, claims,
losses and
settlement expenses		      Amortization
of deferred policy
acquisition costs3		     Other
operating
expenses2,3		      Premiums
written		  

2013

             

IPS - Annuity

    $ 546      $ 1,065       $ 185      $ 303      

Retirement Plans

      743        473         (2 )      151      

IPS - Life and NBSG

      544        910         125        284      

Corporate and Other

      16        32         66        184      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,849      $ 2,480       $ 374      $ 922      
  

 

 

    

 

 

     

 

 

    

 

 

     

2012

             

IPS - Annuity

    $ 551      $ 970       $ 185      $ 285      

Retirement Plans

      736        457         14        163      

IPS - Life and NBSG

      536        868         150        255      

Corporate and Other

      2        24         226        160      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,825      $ 2,319       $ 575      $ 863      
  

 

 

    

 

 

     

 

 

    

 

 

     

2011

             

IPS - Annuity

    $ 527      $ 850       $ 80      $ 269      

Retirement Plans

      715        441         11        166      

IPS - Life and NBSG

      533        863         75        238      

Corporate and Other

      69        8         (101 )      157      
  

 

 

    

 

 

     

 

 

    

 

 

     

Total

    $ 1,844      $ 2,162       $ 65      $ 830      
  

 

 

    

 

 

     

 

 

    

 

 

     

 

1  Unearned premiums and other policy claims and benefits payable are included in Column C amounts.
2  Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.
3  The 2011 balances reflect a change in accounting principle, as described in Note 2.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

60

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule IV Reinsurance

As of December 31, 2013, 2012 and 2011 and for each of the years then ended (in millions)

 

Column A

    Column B      Column C     Column D      Column E      Column F  
     Gross
amount		      Ceded to
other
companies		     Assumed
from other
companies		      Net
amount		      Percentage
of amount
assumed
to net		  

2013

              

Life, accident and health insurance in force

    $ 228,095       $ (58,310 )    $ 6       $ 169,791         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Premiums:

              

Life insurance1

    $ 783       $ (59 )    $ —         $ 724         —     

Accident and health insurance

      232         (232 )      —           —           —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 1,015       $ (291 )    $ —         $ 724         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

2012

              

Life, accident and health insurance in force

    $ 216,002       $ (59,895 )    $ 5       $ 156,112         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Premiums:

              

Life insurance1

    $ 701       $ (66 )    $ —         $ 635         —     

Accident and health insurance

      189         (189 )      —           —           —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 890       $ (255 )    $ —         $ 635         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

2011

              

Life, accident and health insurance in force

    $ 209,732       $ (60,499 )    $ 5       $ 149,238         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Premiums:

              

Life insurance1

    $ 596       $ (65 )    $ —         $ 531         —     

Accident and health insurance

      236         (236 )      —           —           —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total

    $ 832       $ (301 )    $ —         $ 531         —     
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

1  Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

61

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule V Valuation and Qualifying Accounts

Years ended December 31, 2013, 2012 and 2011 (in millions)

 

Column A

    Column B      Column C      Column D      Column E  

Description

    Balance at
beginning
of period		      Charged to
costs and
expenses		     Charged to
other
accounts		      Deductions1      Balance at
end of
period		  

2013

              

Valuation allowances - mortgage loans

    $ 44       $ (4 )    $ —         $ 5       $ 35   

2012

              

Valuation allowances - mortgage loans

    $ 60       $ 1      $ —         $ 17       $ 44   

2011

              

Valuation allowances - mortgage loans

    $ 96       $ 25      $ —         $ 61       $ 60   
  

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

1 Amounts generally represent payoffs, sales and recoveries.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

 

62

PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements
  Nationwide Variable Account-9:
Report of Independent Registered Public Accounting Firm.
Statement of Assets, Liabilities and Contract Owners' Equity as of December 31, 2013.
Statement of Operations for the year ended December 31, 2013.
Statements of Changes in Contract Owners Equity for the years ended December 31, 2013 and 2012.
Notes to Financial Statements.
Nationwide Life Insurance Company and subsidiaries:
Report of Independent Registered Public Accounting Firm.
Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011.
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2013, 2012 and 2011.
Consolidated Balance Sheets as of December 31, 2013 and 2012.
Consolidated Statements of Changes in Equity as of December 31, 2013, 2012 and 2011.
Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011.
Notes to Consolidated Financial Statements.
Financial Statement Schedules.
(b) Exhibits
(1) Resolution of the Depositor's Board of Directors authorizing the establishment of the Registrant - Filed previously with initial registration statement (File No. 333-28995) and is hereby incorporated by reference.
(2) Not Applicable
(3) Underwriting or Distribution of contracts between the Depositor and Principal Underwriter - Filed previously on April 26, 2000 with Post-Effective Amendment No. 2 to registration statement (File No. 333-79327) and hereby incorporated by reference.
(4) The form of the variable annuity contract - Filed previously with Post-Effective Amendment No. 11 to registration statement (File No. 333-79327) and hereby incorporated by reference.
(5) Variable Annuity Application - Filed previously with Post Effective Amendment No. 15 to registration statement (File No. 333-79327) and hereby incorporated by reference.
(6) Depositor's Certificate of Incorporation and By-Laws.
(a) Amended Articles of Incorporation for Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6a.htm" and hereby incorporated by reference.
(b) Amended and Restated Code of Regulations of Nationwide Life Insurance Company. Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6b.htm" and hereby incorporated by reference.
(c) Articles of Merger of Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company, effective December 31, 2009. Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6c.htm" and hereby incorporated by reference.
(7) Not Applicable
(8) Fund Participation Agreements - The following Fund Participation Agreements were previously filed on July 17, 2007 with pre-effective amendment number 1 of registration statement (333-140608) under Exhibit 26(h), and are hereby incorporated by reference.

1. Fund Participation Agreement with AIM Variable Insurance Funds, AIM Advisors, Inc., and AIM Distributors dated January 6, 2003, under document "aimfpa99h1.htm"
2. Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended, under document "amcentfpa99h2"
3. Restated and Amended Fund Participation Agreement with The Dreyfus Corporation dated January 27, 2000, as amended, under document "dreyfusfpa99h3.htm"
4. Fund Participation Agreement with Federated Insurance Series and Federated Securities Corp. dated April 1, 2006, as amended, under document "fedfpa99h4.htm"
5. Fund Participation Agreement with Fidelity Variable Insurance Products Fund dated May 1, 1988, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V, under document "fidifpa99h5.htm"
6. Amended and Restated Fund Participation Agreement with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc. dated May 1, 2003; as amended, under document "frankfpa99h8.htm"
7. Fund Participation Agreement, Service and Institutional Shares, with Janus Aspen Series, dated December 31, 1999, under document "janusfpa99h9a.htm"
8. Amended and Restated Fund Participation Agreement with MFS Variable Insurance Trust and Massachusetts Financial Services Company dated February 1, 2003, as amended, under document "mfsfpa99h11.htm"
9. Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated May 2, 2005, as amended, under document "nwfpa99h12a.htm"
10. Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust), American Funds Insurance Series, and Capital Research and Management Company, dated May 1, 2007, as amended, under document "nwfpa99h12b.htm"
11. Fund Participation Agreement with Neuberger Berman Advisers Management Trust/Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust) dated January 1, 2006, under document "neuberfpa99h13.htm"
12. Fund Participation Agreement with Oppenheimer Variable Account Funds and Oppenheimer Funds, Inc. dated April 13, 2007, under document "oppenfpa99h14.htm"
13. Fund Participation Agreement with T. Rowe Price Equity Series, Inc., T. Rowe Price International Series, Inc., T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price Investment Services, Inc. dated October 1, 2002, as amended, under document "trowefpa99h15.htm"
14. Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley Distribution, Inc., and Morgan Stanley Investment Management, Inc. dated February 1, 2002, as amended, under document "univfpa99h16.htm"
  The following Fund Participation Agreements were previously filed on September 27, 2007 with pre-effective amendment number 3 of registration statement (333-137202) under Exhibit 26(h), and are hereby incorporated by reference.
15. Amended and Restated Fund Participation Agreement with Alliance Capital Management L.P. and Alliance Bernstein Investment Research and Management, Inc., dated June 1, 2003, under document "alliancebernsteinfpa.htm".
16. Fund Participation Agreement with BlackRock (formerly FAM Distributors, Inc. and FAM Variable Series Funds, Inc.) dated April 13, 2004, as amended, under document "blackrockfpa.htm"
17. Fund Participation Agreement with PIMCO Variable Insurance Trust and PIMCO Funds Distributors, LLC, dated March 28, 2002, as amended, under document "pimcofpa.htm"
18. Fund Participation Agreement with Putnam Variable Trust and Putnam Retail Management, L.P., dated February 1, 2002, under document "putnamfpa.htm".
19. Fund Participation Agreement Van Eck Investment Trust, Van Eck Associates Corporation, Van Eck Securities Corporation dated September 1, 1989, as amended, as document "vaneckfpa.htm".
20. Fund Participation Agreement with Wells Fargo Management, LLC, Stephens, Inc. dated November 15, 2004, as amended, under document "wellsfargofpa.htm".

21. Fund Participation Agreement with Waddell and Reed Services Company and Waddell and Reed, Inc., dated December 1, 2000, as amended, as document "waddellreedfpa.htm".
(9) Opinion of Counsel - Filed previously on May 26, 1999 with initial registration statement (File No. 333-79327) and hereby incorporated by reference.
(10) Consent of Independent Registered Public Accounting Firm - Attached hereto.
(11) Not Applicable
(12) Not Applicable
(99) Power of Attorney - Attached hereto.

Item 25. Directors and Officers of the Depositor
The business address of the Directors and Officers of the Depositor is:
One Nationwide Plaza, Columbus, Ohio 43215
President and Chief Operating Officer and Director Kirt A. Walker
Executive Vice President-Chief Legal and Governance Officer Patricia R. Hatler
Executive Vice President Terri L. Hill
Executive Vice President-Chief Marketing Officer Matthew Jauchius
Executive Vice President-Chief Information Officer Michael C. Keller
Executive Vice President-Chief Human Resources Officer Gale V. King
Executive Vice President Mark A. Pizzi
Executive Vice President and Director Mark R. Thresher
Senior Vice President-Government Relations Steven M. English
Senior Vice President Harry H. Hallowell
Senior Vice President and Treasurer David LaPaul
Senior Vice President-Business Transformation Office Mark A. Gaetano
Senior Vice President-Chief Claims Officer David A. Bano
Senior Vice President-Chief Compliance Officer Sandra L. Rich
Senior Vice President-Chief Economist David W. Berson
Senior Vice President-Chief Financial Officer and Director Timothy G. Frommeyer
Senior Vice President-Chief Financial Officer-Property and Casualty Michael P. Leach
Senior Vice President-Chief Risk Officer Michael W. Mahaffey
Senior Vice President-CIO Allied Group Daniel G. Greteman
Senior Vice President-CIO Enterprise Applications Michael A. Richardson
Senior Vice President-CIO IT Infrastructure Gregory S. Moran
Senior Vice President-CIO NF Systems Susan J. Gueli
Senior Vice President-Controller James D. Benson
Senior Vice President-Corporate Strategy Katherine M. Liebel
Senior Vice President-Deputy General Counsel Sandra L. Neely
Senior Vice President-NW Retirement Plans and Director John L. Carter
Senior Vice President-Enterprise Chief Technology Officer Guruprasad C. Vasudeva
Senior Vice President-Field Operations EC Amy T. Shore
Senior Vice President-Field Operations IC Thomas E. Clark
Senior Vice President-Head of Taxation Pamela A. Biesecker
Senior Vice President-Individual Products & Solutions and Director Eric S. Henderson
Senior Vice President-Internal Audit Kai V. Monahan
Senior Vice President-Investment Management Group Michael S. Spangler
Senior Vice President-IT Finance & Head of Sourcing Andrew Walker
Senior Vice President-IT Strategic Initiatives Tammy Craig
Senior Vice President-Nationwide Financial Steven C. Power
Senior Vice President-Nationwide Financial Network Peter A. Golato
Senior Vice President-Corporate Marketing William J. Burke
Senior Vice President-NFS Legal Rae Ann Dankovic
Senior Vice President-NF Distribution and Sales David L. Giertz
Senior Vice President-NI Brand Marketing Jennifer M. Hanley
Senior Vice President-NW Retirement Plans Anne L. Arvia
Senior Vice President-Personal Lines Product Management Eric E. Smith
Senior Vice President-PCIO Sales Support Melissa D. Gutierrez
Senior Vice President-President-Nationwide Bank J. Lynn Anderson
Senior Vice President-Property and Casualty Commercial/Farm Product Pricing W. Kim Austen
Senior Vice President-Talent, Div & Org Effect Terri L Forgy
Senior Vice President-Trial Division Peter J. Hersha
Vice President-Corporate Governance and Secretary Robert W. Horner, III
Director Stephen S. Rasmussen

Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant.
Following is a list of entities directly or indirectly controlled by or under common control with the depositor or registrant. Ownership is indicated through indentation. Unless otherwise indicated, each subsidiary is either wholly-owned or majority-owned by the parent company immediately preceding it. (For example, Nationwide Fund Distributors, LLC is either wholly-owned or majority owned by NFS Distributors, Inc.) Separate accounts that have been established pursuant to board resolution but are not, and have never been, active are omitted.
Company Jurisdiction of
Domicile 		Brief Description of Business
Nationwide Financial Services, Inc. Delaware The company acts primarily as a holding company for companies within the Nationwide organization that offer or distribute life insurance, long-term savings and retirement products.
NFS Distributors, Inc. Delaware The company acts primarily as a holding company for Nationwide Financial Services, Inc. companies.
Nationwide Financial General Agency, Inc. Pennsylvania The company is a multi-state licensed insurance agency.
Nationwide Financial Institution Distributors Agency, Inc. Delaware The company is an insurance agency.
Nationwide Fund Distributors, LLC Delaware The company is a limited purpose broker-dealer.
Nationwide Fund Management, LLC Delaware The company provides administration, transfer and dividend disbursing agent services to various mutual fund entities.
Nationwide Retirement Solutions, Inc. Delaware The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions, Inc. of Arizona Arizona The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions Insurance Agency, Inc. Massachusetts The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions, Inc. of Ohio, Inc.1 Ohio The company provides retirement products, marketing and education and administration to public employees.
Nationwide Retirement Solutions, Inc. of Texas, Inc.1 Texas The company markets and administers deferred compensation plans for public employees.
Nationwide Securities, LLC Delaware The company is a registered broker-dealer.
Nationwide Bank Federal This is a federally chartered savings bank supervised by the Office of the Office of the Comptroller of the Currency to exercise deposit, lending, agency, custody and fiduciary powers and to engage in activities permissible for federal savings banks under the Home Owners' Loan Act of 1933.
Nationwide Financial Services Capital Trust Delaware The trust's sole purpose is to issue and sell certain securities representing individual beneficial interests in the assets of the trust
Nationwide Life Insurance Company2 Ohio A stock corporation. The corporation provides individual life insurance, group and health insurance, fixed and variable annuity products and other life insurance products.
MFS Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Multi-Flex Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-II2,3 Ohio A separate account issuing variable annuity contracts.

Company Jurisdiction of
Domicile 		Brief Description of Business
Nationwide Variable Account-32,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-42,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-52,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-62,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-72,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-82,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-92,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-102,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-112,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-122,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-132,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Variable Account-142,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account 12,3 Pennsylvania A separate account issuing variable annuity contracts.
Nationwide VLI Separate Account2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-22,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-32,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-42,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-52,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-62,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VLI Separate Account-72,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account 12,3 Pennsylvania A separate account issuing variable life insurance policies.
Nationwide Investment Services Corporation3 Oklahoma This is a limited purpose broker-dealer and distributor of variable annuities and variable life products for Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company. The company also provides educational services to retirement plan sponsors and its participants.
Nationwide Financial Assignment Company3 Ohio The company is an administrator of structured settlements.
Nationwide Investment Advisors, LLC3 Ohio The company provides investment advisory services.
Life Reo Holdings, LLC3 Ohio The company is an investment holding company.
Nationwide Life and Annuity Insurance Company2,3 Ohio The company engages in underwriting life insurance and granting, purchasing and disposing of annuities.

Company Jurisdiction of
Domicile 		Brief Description of Business
Nationwide VA Separate Account-A2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-B2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-C2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide VA Separate Account-D2,3 Ohio A separate account issuing variable annuity contracts.
Nationwide Provident VA Separate Account A2,3 Delaware A separate account issuing variable annuity contracts.
Nationwide VL Separate Account-A2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-B2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-C2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-D2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide VL Separate Account-G2,3 Ohio A separate account issuing variable life insurance policies.
Nationwide Provident VLI Separate Account A2,3 Delaware A separate account issuing variable life insurance policies.
Olentangy Reinsurance, LLC3 Vermont The company is a captive life reinsurance company.
Registered Investment Advisors Services, Inc.3 Texas The company is a technology company that facilitates third-party money management services for registered investment advisors
Nationwide Fund Advisors3,4 Delaware The trust acts as a registered investment advisor.
1 This subsidiary/entity is controlled by its immediate parent through contractual association.
2 This subsidiary/entity files separate financial statements.
3 Information for this subsidiary/entity is included in the consolidated financial statements of its immediate parent.
4 This subsidiary/entity is a business trust.
Item 27. Number of Contract Owners
The number of Contract Owners of Qualified and Non-Qualified Contracts as of March 1, 2014, was 846 and 1,212 respectively.
Item 28. Indemnification
Provision is made in Nationwide's Amended and Restated Code of Regulations and expressly authorized by the General Corporation Law of the State of Ohio, for indemnification by Nationwide of any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person is or was a director, officer or employee of Nationwide, against expenses, including attorneys fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by the General Corporation Law of the State of Ohio.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers or persons controlling Nationwide pursuant to the foregoing provisions, Nationwide has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 29. Principal Underwriter
Nationwide Investment Services Corporation ("NISC")
(a) NISC serves as principal underwriter and general distributor for the following separate investment accounts of Nationwide or its affiliates:
   
MFS Variable Account Nationwide VA Separate Account-D
Multi-Flex Variable Account Nationwide VLI Separate Account
Nationwide Variable Account Nationwide VLI Separate Account-2
Nationwide Variable Account-II Nationwide VLI Separate Account-3
Nationwide Variable Account-3 Nationwide VLI Separate Account-4
Nationwide Variable Account-4 Nationwide VLI Separate Account-5
Nationwide Variable Account-5 Nationwide VLI Separate Account-6
Nationwide Variable Account-6 Nationwide VLI Separate Account-7
Nationwide Variable Account-7 Nationwide VL Separate Account-A
Nationwide Variable Account-8 Nationwide VL Separate Account-C
Nationwide Variable Account-9 Nationwide VL Separate Account-D
Nationwide Variable Account-10 Nationwide VL Separate Account-G
Nationwide Variable Account-11 Nationwide Provident VA Separate Account 1
Nationwide Variable Account-12 Nationwide Provident VA Separate Account A
Nationwide Variable Account-13 Nationwide Provident VLI Separate Account 1
Nationwide Variable Account-14 Nationwide Provident VLI Separate Account A
Nationwide VA Separate Account-A  
Nationwide VA Separate Account-B  
Nationwide VA Separate Account-C  
(b) Directors and Officers of NISC:
   
President Robert O. Cline
Vice President, Treasurer and Director Keith L. Sheridan
Vice President-Chief Compliance Officer James J. Rabenstine
Associate Vice President and Secretary Kathy R. Richards
Associate Vice President and Assistant Secretary Parag H. Shah
Associate Vice President-Finance Operations and Assistant Treasurer Terry C. Smetzer
Assistant Treasurer J. Morgan Elliott
Assistant Treasurer Jerry L. Greene
Director John L. Carter
Director Eric S. Henderson
The business address of the Directors and Officers of NISC is:
One Nationwide Plaza, Columbus, Ohio 43215.

(c)
Name of Principal Underwriter   Net Underwriting
Discounts and
Commissions 		  Compensation on
Redemption or
Annuitization 		  Brokerage
Commissions 		  Compensation
Nationwide Investment Services Corporation
   N/A   N/A   N/A   N/A
Item 30. Location of Accounts and Records
Timothy G. Frommeyer
Nationwide Life Insurance Company
One Nationwide Plaza
Columbus, OH 43215
Item 31. Management Services
Not Applicable
Item 32. Undertakings
The Registrant hereby undertakes to:
(a) file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted;
(b) include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and
(c) deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.
The Registrant represents that any of the contracts which are issued pursuant to Section 403(b) of the Internal Revenue Code, are issued by Nationwide through the Registrant in reliance upon, and in compliance with, a no-action letter issued by the Staff of the Securities and Exchange Commission to the American Council of Life Insurance (publicly available November 28, 1988) permitting withdrawal restrictions to the extent necessary to comply with Section 403(b)(11) of the Internal Revenue Code.
Nationwide Life Insurance Company represents that the fees and charges deducted under the contract in the aggregate are reasonable in relation to the services rendered, the expenses expected to be incurred and risks assumed by Nationwide Life Insurance Company.

SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements of Rule 485(b) under the Securities Act of 1933 for effectiveness of the Registration Statement and has caused this Registration Statement to be signed by the undersigned, duly authorized, in the City of Columbus, and State of Ohio, on April 22, 2014.
Nationwide Variable Account-9
(Registrant)
Nationwide Life Insurance Company
(Depositor)
By: /s/ JAMIE RUFF CASTO
Jamie Ruff Casto
Attorney-in-Fact
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated, on April 22, 2014.
KIRT A. WALKER  
Kirt A. Walker, President and Chief Operating Officer, and Director  
MARK R. THRESHER  
Mark R. Thresher, Executive Vice President and Director  
TIMOTHY G. FROMMEYER  
Timothy G. Frommeyer, Senior Vice President-Chief Financial Officer and Director  
ERIC S. HENDERSON  
Eric S. Henderson, Senior Vice President - Individual Products & Solutions and Director  
JOHN L. CARTER  
John L. Carter, Senior Vice President – Nationwide Retirement Plans and Director  
STEPHEN S. RASMUSSEN  
Stephen S. Rasmussen, Director  
  By /s/ JAMIE RUFF CASTO
  Jamie Ruff Casto
Attorney-in-Fact