Nationwide^® VL

Separate Account-C

  December 31, 2007

Annual Report

Nationwide Life and Annuity Insurance Company

Home Office: Columbus, Ohio

VLOB – 0173 –12/07

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
AIM VIF – Basic Value Fund – Series I (AIMBValue) 181 shares (cost $2,472)	$	2,298
AIM VIF – International Growth Fund – Series I (AIMIntGr) 222 shares (cost $7,428)		7,452
AllianceBernstein VPS – Growth and Income Portfolio – Class A (AlVGrIncA) 2,725 shares (cost $74,070)		73,095
AllianceBernstein VPS – International Value Portfolio – Class A (AlVIntlValA) 471,983 shares (cost $12,155,458)		11,865,656
American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp) 139,821 shares (cost $1,135,440)		2,234,336
American Century VP – Income & Growth Fund – Class I (ACVPIncGr) 220,050 shares (cost $1,821,189)		1,861,623
American Century VP – International Fund – Class I (ACVPInt) 341,696 shares (cost $3,013,451)		4,052,518
American Century VP – Ultra® Fund – Class I (ACVPUltra) 27,887 shares (cost $283,975)		338,822
American Century VP – Value Fund – Class I (ACVPVal) 255,521 shares (cost $2,071,761)		1,908,742
American Century VP – VistaSM Fund – Class I (ACVPVista1) 50 shares (cost $856)		1,098
Calvert Variable Series Inc. – Social Equity Portfolio (CalVSSocEq) 426 shares (cost $8,336)		8,682
Credit Suisse Trust – Global Small Cap Portfolio (CSTGlobSmCp) 23,101 shares (cost $317,916)		325,268
Credit Suisse Trust – International Focus Portfolio (CSTIntFoc) 4,096 shares (cost $57,116)		64,919
Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV) 5,593 shares (cost $85,167)		75,394
Credit Suisse Trust – Small Cap Core I Portfolio (CSTSmCapGr) 31,214 shares (cost $469,862)		482,876
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap) 407,050 shares (cost $7,943,026)		7,180,370
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 971,619 shares (cost $33,250,132)		36,338,537
Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp) 27,892 shares (cost $1,188,588)		1,251,244
Dreyfus VIF – International Value Portfolio – Initial Shares (DryVIntVal) 125,542 shares (cost $2,175,682)		2,188,198
DWS Variable Series II – Dreman High Return Equity VIP – Class B (DWSVHghRtrn) 17,216 shares (cost $240,451)		248,082
Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd) 48,765 shares (cost $548,405)		552,993
Fidelity® VIP – Equity-Income Portfolio – Service Class (FidVIPEIS) 119,089 shares (cost $3,138,040)		2,836,693
Fidelity® VIP – Growth Portfolio – Initial Class (FidVIPGr) 1,599 shares (cost $55,735)		72,131

(Continued)

2

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Fidelity® VIP – Growth Portfolio – Service Class (FidVIPGrS) 410,068 shares (cost $16,820,996)	$	18,448,942
Fidelity® VIP – High Income Portfolio – Service Class (FidVIPHIS) 267,831 shares (cost $1,713,061)		1,593,593
Fidelity® VIP – Overseas Portfolio – Service Class (FidVIPOvS) 193,253 shares (cost $4,236,460)		4,873,846
Fidelity® VIP II – Asset Manager Portfolio – Initial Class (FidVIPAM) 298,782 shares (cost $4,516,367)		4,950,812
Fidelity® VIP II – Contrafund® Portfolio – Service Class (FidVIPConS) 283,255 shares (cost $8,826,215)		7,874,498
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS) 4,221 shares (cost $53,271)		53,478
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS) 65,519 shares (cost $1,022,320)		1,462,383
Fidelity® VIP III – Mid Cap Portfolio – Service Class (FidVIPMCapS) 51,192 shares (cost $1,714,554)		1,841,888
Fidelity® VIP III – Value Strategies Portfolio – Service Class (FidVIPVaIS) 87 shares (cost $1,137)		1,095
Franklin Templeton VIP – Foreign Securities Fund – Class 2 (FrVIPForSec2) 28,745 shares (cost $550,283)		582,079
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2 (FrVIPSCapV2) 14,449 shares (cost $269,820)		247,086
Goldman Sachs VIT Mid Cap Value Fund (GSVTMdCpV) 257,706 shares (cost $4,177,861)		3,613,031
Janus Aspen Series – Balanced Portfolio – Service Shares (JAspBal) 16,512 shares (cost $392,566)		513,184
Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty) 8,386 shares (cost $267,080)		342,168
Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS) 110,472 shares (cost $455,083)		572,244
Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS) 46,899 shares (cost $1,643,043)		3,025,433
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1 (JPMMidCapGr) 80,579 shares (cost $1,561,656)		1,667,187
Lincoln VIP – Baron Growth Opportunies Funds – Service Class (LincGroOp) 68,890 shares (cost $2,271,777)		2,062,848
Lord Abbett Series Fund, Inc. – Mid-Cap Value Portfolio – Class VC (LrdMidCapV) 1,940 shares (cost $41,997)		36,661
Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc) 266,880 shares (cost $2,117,042)		2,038,961
Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts) 63,061 shares (cost $1,216,651)		1,425,815
Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl) 174 shares (cost $2,394)		2,128
Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro) 35,151 shares (cost $329,199)		494,228
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I (NVITWLead) 32,272 shares (cost $511,794)		612,846
Nationwide VIT – Global Financial Services Fund – Class I (NVITGlFin) 101,989 shares (cost $1,336,434)		1,110,665
Nationwide VIT – Global Health Sciences Fund – Class I (NVITGlHlth) 1,529 shares (cost $17,847)		18,002

(Continued)

3

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Nationwide VIT – Global Technology and Communications Fund – Class I (NVITGlTech) 71,492 shares (cost $352,099)	$	367,466
Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd) 333,620 shares (cost $3,840,394)		3,880,002
Nationwide VIT – Growth Fund – Class I (NVITGrowth) 26,811 shares (cost $331,429)		388,758
Nationwide VIT – International Index Fund – Class II (NVITIntIdx2) 737,175 shares (cost $8,747,898)		8,573,345
Nationwide VIT – Investor Destinations Conservative Fund – Class II (NVITIDCon2) 10,315 shares (cost $107,700)		107,278
Nationwide VIT – Investor Destinations Moderate Fund – Class II (NVITIDMod2) 76,199 shares (cost $892,727)		947,912
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II (NVITIDModAg2) 8,444 shares (cost $118,552)		112,648
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II (NVITIDModCon2) 189 shares (cost $2,171)		2,144
Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal) 144,187 shares (cost $1,593,954)		1,578,848
Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr) 14,976 shares (cost $436,667)		487,168
Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap) 388,864 shares (cost $7,529,568)		7,458,408
Nationwide VIT – Money Market Fund – Class I (NVITMyMkt) 408,534 shares (cost $408,534)		408,534
Nationwide VIT – Money Market Fund – Class V (NVITMyMkt5) 36,762,825 shares (cost $36,762,825)		36,762,825
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I (NVITSmCapGr) 48,455 shares (cost $707,933)		872,677
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I (NVITSmCapVal) 528,112 shares (cost $6,359,208)		5,217,747
Nationwide VIT – Multi-Manager Small Company Fund – Class I (NVITSmComp) 303,332 shares (cost $7,092,600)		6,736,998
Nationwide VIT – Nationwide Fund – Class I (NVITNWFund) 59,118 shares (cost $813,156)		803,412
Nationwide VIT – U.S. Growth Leaders Fund – Class I (NVITUSGro) 5,950 shares (cost $64,329)		76,818
Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal) 33,966 shares (cost $422,085)		390,605
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec) 226,253 shares (cost $2,244,540)		2,230,852
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBTAFasc) 1,706 shares (cost $26,854)		24,737
Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBTAGuard) 18,117 shares (cost $323,997)		382,449
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares (NBTAMCGr) 58,207 shares (cost $1,261,552)		1,658,905
Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart) 77,273 shares (cost $1,647,910)		1,604,964
Oppenheimer VAF – Balanced Fund – Non-Service Shares (OppBal) 58,178 shares (cost $957,249)		954,706
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp) 93,000 shares (cost $3,524,671)		4,387,753

(Continued)

4

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY, Continued

Oppenheimer VAF – Core Bond Fund – Non-Service Shares (OppBdFd) 95,552 shares (cost $1,088,424)	$	1,056,810
Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec) 66,619 shares (cost $2,366,186)		2,438,253
Oppenheimer VAF – Main Street® – Non-Service Shares (OppMSt) 6,200 shares (cost $129,616)		158,775
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap) 13,266 shares (cost $673,299)		717,271
PIMCO VIT – All Asset Portfolio – Administrative Shares (PVITAllAst) 274,805 shares (cost $3,154,212)		3,220,719
PIMCO VIT – Low Duration Portfolio – Administrative Shares (PVITLowDur) 142,245 shares (cost $1,429,012)		1,465,119
PIMCO VIT – Real Return Portfolio – Administrative Shares (PVITRealRet) 410,430 shares (cost $5,103,105)		5,159,107
PIMCO VIT – Total Return Portfolio – Administrative Shares (PVITTotRet) 1,037,089 shares (cost $10,539,899)		10,879,059
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares (PioVHiYield) 16,471 shares (cost $180,029)		182,002
Royce Capital Fund – Micro-Cap Portfolio (RCFMicroCap) 335,054 shares (cost $4,508,043)		4,513,183
T. Rowe Price Equity Income Portfolio – II (TRowEqInc2) 230,620 shares (cost $5,467,060)		5,454,168
T. Rowe Price Mid-Cap Growth Portfolio – II (TRowMidCap2) 124,673 shares (cost $3,242,521)		3,086,905
T. Rowe Price New America Growth Portfolio (TRowNwAmGr) 113,628 shares (cost $2,512,298)		2,508,911
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro) 3,713 shares (cost $109,136)		113,233
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class (VEWrldEMkt) 125,873 shares (cost $3,342,078)		3,489,196
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class (VEWrldHAs) 16,129 shares (cost $593,197)		664,340
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKUEmMkt) 41,180 shares (cost $349,094)		351,264
Van Kampen UIF – Mid Cap Growth Portfolio – Class I (VKUMCpGro) 25,269 shares (cost $303,422)		368,429
Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUUSRE) 101,216 shares (cost $2,657,273)		2,231,811
Wells Fargo AVT – Discovery FundSM (WFVDisc) 1,484 shares (cost $20,966)		29,838
Wells Fargo AVT – Opportunity FundSM (WFVOpp) 52,136 shares (cost $1,139,510)		1,148,565
Total Investments		269,091,045
Accounts Receivable		10,294
Accounts Receivable - AIM VIF - Basic Value Fund - Series I (AIMBValue)		51
Total Assets		269,101,390
Accounts Payable		–
Contract Owners Equity (note 7)	$	269,101,390

See accompanying notes to financial statements.

5

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:		Total		AIMBValue		AIMIntGr		AlVGrIncA		AlVIntlValA		ACVPCapAp		ACVPIncGr		ACVPInt
Reinvested dividends	$	6,031,352		14		30		16,881		7,229		–		36,193		21,720
Mortality and expense risk charges (note 3)		(650,900	)	(24	)	(8	)	(3,518	)	(6,984	)	(4,815	)	(5,692	)	(8,886	)
Net investment income (loss)		5,380,452		(10	)	22		13,363		245		(4,815	)	30,501		12,834
Proceeds from mutual fund shares sold		290,199,445		20,533		1,358		5,395,900		327,279		157,613		9,243,182		2,656,001
Cost of mutual fund shares sold		(266,510,636	)	(18,468	)	(1,213	)	(5,393,534	)	(289,642	)	(92,042	)	(7,096,594	)	(1,765,060	)
Realized gain (loss) on investments		23,688,809		2,065		145		2,366		37,637		65,571		2,146,588		890,941
Change in unrealized gain (loss) on investments		(21,544,419	)	(1,716	)	24		(73,032	)	(331,305	)	651,660		(2,180,458	)	(327,479	)
Net gain (loss) on investments		2,144,390		349		169		(70,666	)	(293,668	)	717,231		(33,870	)	563,462
Reinvested capital gains		11,793,316		132		–		57,296		23,908		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	19,318,158		471		191		(7	)	(269,515	)	712,416		(3,369	)	576,296
Investment activity:		ACVPUltra		ACVPVal		ACVPVista1		BRIntIndex		BRLrgCp		CalVSSocEq		CSTGlobSmCp		CSTIntFoc
Reinvested dividends	$	–		31,873		–		–		–		–		–		659
Mortality and expense risk charges (note 3)		(900	)	(5,124	)	(2	)	(2	)	(1	)	(23	)	(827	)	(147	)
Net investment income (loss)		(900	)	26,749		(2	)	(2	)	(1	)	(23	)	(827	)	512
Proceeds from mutual fund shares sold		242,624		356,835		292		9,014		2,204		3,700		141,017		35,554
Cost of mutual fund shares sold		(230,585	)	(345,768	)	(248	)	(8,787	)	(2,034	)	(3,363	)	(119,853	)	(29,732	)
Realized gain (loss) on investments		12,039		11,067		44		227		170		337		21,164		5,822
Change in unrealized gain (loss) on investments		50,671		(303,054	)	243		–		–		204		(32,817	)	2,803
Net gain (loss) on investments		62,710		(291,987	)	287		227		170		541		(11,653	)	8,625
Reinvested capital gains		–		165,284		–		–		–		427		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	61,810		(99,954	)	285		225		169		945		(12,480	)	9,137

(Continued)

6

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		CSTLCapV		CSTSmCapGr		DryIPMidCap		DryIPSmCap		DryStkIx		DryVApp		DryVIntVal		DWSVHghRtrn
Reinvested dividends	$	1,196		–		4		24,544		550,697		16,225		198,111		2,709
Mortality and expense risk charges (note 3)		(237	)	(1,288	)	(2	)	(19,628	)	(71,441	)	(3,860	)	(21,595	)	(663	)
Net investment income (loss)		959		(1,288	)	2		4,916		479,256		12,365		176,516		2,046
Proceeds from mutual fund shares sold		114,325		46,599		1,140		7,618,153		26,067,415		7,119,631		11,248,789		59,512
Cost of mutual fund shares sold		(92,823	)	(43,416	)	(1,187	)	(6,895,405	)	(19,194,527	)	(6,887,492	)	(11,863,700	)	(54,021	)
Realized gain (loss) on investments		21,502		3,183		(47	)	722,748		6,872,888		232,139		(614,911	)	5,491
Change in unrealized gain (loss) on investments		(35,661	)	(5,854	)	3		(1,590,936	)	(5,377,431	)	(125,243	)	(691,153	)	(17,024	)
Net gain (loss) on investments		(14,159	)	(2,671	)	(44	)	(868,188	)	1,495,457		106,896		(1,306,064	)	(11,533	)
Reinvested capital gains		17,743		–		117		263,600		–		–		1,591,282		2,147
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,543		(3,959	)	75		(599,672	)	1,974,713		119,261		461,734		(7,340	)
Investment activity:		FedQualBd		FidVIPEIS		FidVIPGr		FidVIPGrS		FidVIPHIS		FidVIPOvS		FidVIPAM		FidVIPConS
Reinvested dividends	$	25,745		52,724		527		27,538		132,020		245,473		270,144		64,871
Mortality and expense risk charges (note 3)		(1,383	)	(15,669	)	(163	)	(19,111	)	(4,383	)	(15,029	)	(11,020	)	(21,635	)
Net investment income (loss)		24,362		37,055		364		8,427		127,637		230,444		259,124		43,236
Proceeds from mutual fund shares sold		66,799		7,790,075		1,294		17,539,346		359,881		7,691,978		604,891		5,659,069
Cost of mutual fund shares sold		(68,128	)	(7,196,939	)	(1,004	)	(15,508,021	)	(362,342	)	(6,324,987	)	(526,114	)	(5,491,861	)
Realized gain (loss) on investments		(1,329	)	593,136		290		2,031,325		(2,461	)	1,366,991		78,777		167,208
Change in unrealized gain (loss) on investments		4,675		(685,180	)	14,589		9,851		(86,869	)	(1,358,930	)	174,858		(846,445	)
Net gain (loss) on investments		3,346		(92,044	)	14,879		2,041,176		(89,330	)	8,061		253,635		(679,237	)
Reinvested capital gains		–		246,367		59		15,149		–		758,409		112,375		1,952,380
Net increase (decrease) in contract owners’ equity resulting from operations	$	27,708		191,378		15,302		2,064,752		38,307		996,914		625,134		1,316,379

(Continued)

7

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		FidVIPIGBdS		FidVIPGrOpS		FidVIPMCapS		FidVIPVaIS		FrVIPForSec2		FrVIPSCapV2		GSVTMdCpV		JAspBal
Reinvested dividends	$	2,172		–		10,953		118		66,687		1,332		30,097		11,449
Mortality and expense risk charges (note 3)		(131	)	(3,658	)	(3,917	)	(28	)	(5,057	)	(561	)	(9,729	)	(1,267	)
Net investment income (loss)		2,041		(3,658	)	7,036		90		61,630		771		20,368		10,182
Proceeds from mutual fund shares sold		14,513		260,698		131,856		28,969		3,131,999		22,114		998,736		34,390
Cost of mutual fund shares sold		(14,691	)	(175,237	)	(120,826	)	(26,319	)	(2,467,560	)	(20,399	)	(890,489	)	(24,373	)
Realized gain (loss) on investments		(178	)	85,461		11,030		2,650		664,439		1,715		108,247		10,017
Change in unrealized gain (loss) on investments		168		211,574		52,561		(1,552	)	(487,024	)	(29,116	)	(594,243	)	27,254
Net gain (loss) on investments		(10	)	297,035		63,591		1,098		177,415		(27,401	)	(485,996	)	37,271
Reinvested capital gains		–		–		112,067		2,619		152,105		13,697		556,933		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,031		293,377		182,694		3,807		391,150		(12,933	)	91,305		47,453
Investment activity:		JAspForty		JAspGlTechS		JAspIntGroS		JPMMidCapGr		LincGroOp		LrdMidCapV		NVITFHiInc		NVITEmMrkts
Reinvested dividends	$	2,764		1,817		11,913		–		–		167		145,340		5,271
Mortality and expense risk charges (note 3)		(5,481	)	(1,385	)	(6,648	)	(3,379	)	(4,772	)	(94	)	(4,900	)	(1,728	)
Net investment income (loss)		(2,717	)	432		5,265		(3,379	)	(4,772	)	73		140,440		3,543
Proceeds from mutual fund shares sold		6,522,144		301,143		145,029		265,902		414,784		3,795		143,929		13,517
Cost of mutual fund shares sold		(5,863,399	)	(236,337	)	(68,950	)	(201,407	)	(385,438	)	(3,586	)	(146,630	)	(10,055	)
Realized gain (loss) on investments		658,745		64,806		76,079		64,495		29,346		209		(2,701	)	3,462
Change in unrealized gain (loss) on investments		56,030		42,794		570,566		(61,293	)	(261,516	)	(5,336	)	(87,172	)	166,697
Net gain (loss) on investments		714,775		107,600		646,645		3,202		(232,170	)	(5,127	)	(89,873	)	170,159
Reinvested capital gains		–		–		–		204,989		257,623		4,915		–		63,561
Net increase (decrease) in contract owners’ equity resulting from operations	$	712,058		108,032		651,910		204,812		20,681		(139	)	50,567		237,263

(Continued)

8

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITGlUtl		NVITIntGro		NVITWLead		NVITGlFin		NVITGlHlth		NVITGlTech		NVITGvtBd		NVITGrowth
Reinvested dividends	$	112,917		1,858		1,771		38,380		14		–		170,019		559
Mortality and expense risk charges (note 3)		(12,282	)	(1,167	)	(1,286	)	(2,942	)	(59	)	(1,839	)	(9,993	)	(832	)
Net investment income (loss)		100,635		691		485		35,438		(45	)	(1,839	)	160,026		(273	)
Proceeds from mutual fund shares sold		15,388,643		67,286		225,860		106,831		27,544		6,405,108		6,141,005		109,415
Cost of mutual fund shares sold		(14,466,399	)	(43,537	)	(138,242	)	(101,935	)	(26,808	)	(6,395,859	)	(6,505,842	)	(82,799	)
Realized gain (loss) on investments		922,244		23,749		87,618		4,896		736		9,249		(364,837	)	26,616
Change in unrealized gain (loss) on investments		(210	)	47,878		(9,743	)	(211,405	)	45		62,193		461,225		23,540
Net gain (loss) on investments		922,034		71,627		77,875		(206,509	)	781		71,442		96,388		50,156
Reinvested capital gains		172,007		37,852		–		160,193		835		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,194,676		110,170		78,360		(10,878	)	1,571		69,603		256,414		49,883
Investment activity:		NVITIntIdx2		NVITIDCon2		NVITIDMod2		NVITIDModAg2		NVITIDModCon2		NVITJPBal		NVITMdCpGr		NVITMidCap
Reinvested dividends	$	63,916		1,334		25,374		1,936		64		37,758		–		28,705
Mortality and expense risk charges (note 3)		(6,343	)	(28	)	(2,517	)	(156	)	(4	)	(4,287	)	(1,167	)	(3,730	)
Net investment income (loss)		57,573		1,306		22,857		1,780		60		33,471		(1,167	)	24,975
Proceeds from mutual fund shares sold		775,855		200		231,856		5,772		199		3,405,067		74,592		825,467
Cost of mutual fund shares sold		(760,649	)	(201	)	(202,813	)	(5,761	)	(200	)	(3,076,360	)	(57,752	)	(773,762	)
Realized gain (loss) on investments		15,206		(1	)	29,043		11		(1	)	328,707		16,840		51,705
Change in unrealized gain (loss) on investments		(174,553	)	(419	)	(11,785	)	(5,913	)	(27	)	(286,448	)	20,309		(92,074	)
Net gain (loss) on investments		(159,347	)	(420	)	17,258		(5,902	)	(28	)	42,259		37,149		(40,369	)
Reinvested capital gains		11,160		25		13,441		2,157		55		15,012		–		19,546
Net increase (decrease) in contract owners’ equity resulting from operations	$	(90,614	)	911		53,556		(1,965	)	87		90,742		35,982		4,152

(Continued)

9

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		NVITMyMkt		NVITMyMkt5		NVITSmCapGr		NVITSmCapVal		NVITSmComp		NVITNWFund		NVITNWLead		NVITUSGro
Reinvested dividends	$	19,477		1,907,300		–		69,533		6,452		38,094		409		–
Mortality and expense risk charges (note 3)		(1,049	)	(100,000	)	(2,362	)	(15,577	)	(17,879	)	(8,560	)	(70	)	(164	)
Net investment income (loss)		18,428		1,807,300		(2,362	)	53,956		(11,427	)	29,534		339		(164	)
Proceeds from mutual fund shares sold		231,414		46,197,073		523,290		1,440,142		1,444,308		5,383,593		177,271		6,968
Cost of mutual fund shares sold		(231,414	)	(46,197,073	)	(396,218	)	(1,437,270	)	(1,266,169	)	(5,266,380	)	(175,913	)	(6,012	)
Realized gain (loss) on investments		–		–		127,072		2,872		178,139		117,213		1,358		956
Change in unrealized gain (loss) on investments		–		–		(37,537	)	(1,243,708	)	(907,813	)	(119,546	)	–		12,397
Net gain (loss) on investments		–		–		89,535		(1,240,836	)	(729,674	)	(2,333	)	1,358		13,353
Reinvested capital gains		–		–		–		770,510		862,665		280,890		8,730		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	18,428		1,807,300		87,173		(416,370	)	121,564		308,091		10,427		13,189
Investment activity:		NVITVKVal		NVITMltSec		NBTAFasc		NBTAGuard		NBTAMCGr		NBTAPart		OppBal		OppCapAp
Reinvested dividends	$	4,115		89,913		–		1,045		–		10,274		24,447		9,422
Mortality and expense risk charges (note 3)		(458	)	(5,802	)	(45	)	(1,147	)	(3,654	)	(4,051	)	(2,454	)	(11,145	)
Net investment income (loss)		3,657		84,111		(45	)	(102	)	(3,654	)	6,223		21,993		(1,723	)
Proceeds from mutual fund shares sold		32,223		582,195		11,730		2,187,094		240,791		409,306		87,439		6,047,134
Cost of mutual fund shares sold		(28,951	)	(594,446	)	(11,246	)	(1,553,116	)	(165,771	)	(397,317	)	(81,089	)	(4,463,427	)
Realized gain (loss) on investments		3,272		(12,251	)	484		633,978		75,020		11,989		6,350		1,583,707
Change in unrealized gain (loss) on investments		(36,568	)	23,383		(2,133	)	(563,065	)	206,351		(37,342	)	(70,386	)	(878,960	)
Net gain (loss) on investments		(33,296	)	11,132		(1,649	)	70,913		281,371		(25,353	)	(64,036	)	704,747
Reinvested capital gains		17,689		112		191		–		–		160,765		76,456		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	(11,950	)	95,355		(1,503	)	70,811		277,717		141,635		34,413		703,024

(Continued)

10

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		OppBdFd		OppGlSec		OppMSt		OppMidCap		PVITAllAst		PVITLowDur		PVITRealRet		PVITTotRet
Reinvested dividends	$	53,183		31,186		1,608		–		234,146		93,566		225,724		476,288
Mortality and expense risk charges (note 3)		(2,644	)	(8,749	)	(418	)	(2,665	)	(7,716	)	(4,964	)	(12,156	)	(22,275	)
Net investment income (loss)		50,539		22,437		1,190		(2,665	)	226,430		88,602		213,568		454,013
Proceeds from mutual fund shares sold		94,945		2,650,337		21,986		6,314,459		290,141		1,376,673		1,225,917		5,655,789
Cost of mutual fund shares sold		(94,378	)	(2,274,102	)	(16,616	)	(4,410,552	)	(280,478	)	(1,376,830	)	(1,338,629	)	(5,615,927	)
Realized gain (loss) on investments		567		376,235		5,370		1,903,907		9,663		(157	)	(112,712	)	39,862
Change in unrealized gain (loss) on investments		(8,346	)	(262,463	)	549		(1,739,307	)	2,893		27,852		346,126		373,215
Net gain (loss) on investments		(7,779	)	113,772		5,919		164,600		12,556		27,695		233,414		413,077
Reinvested capital gains		–		113,362		–		–		–		–		11,719		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	42,760		249,571		7,109		161,935		238,986		116,297		458,701		867,090
Investment activity:		PioVHiYield		RCFMicroCap		TRowEqInc2		TRowMidCap2		TRowNwAmGr		DrySRGro		VEWrldEMkt		VEWrldHAs
Reinvested dividends	$	9,791		66,917		84,538		–		–		606		17,001		522
Mortality and expense risk charges (note 3)		(463	)	(14,360	)	(14,756	)	(7,409	)	(4,758	)	(829	)	(8,712	)	(4,458	)
Net investment income (loss)		9,328		52,557		69,782		(7,409	)	(4,758	)	(223	)	8,289		(3,936	)
Proceeds from mutual fund shares sold		10,228		2,778,876		2,048,635		1,097,550		198,744		2,736,211		14,953,896		22,025,414
Cost of mutual fund shares sold		(9,853	)	(1,858,274	)	(1,750,329	)	(1,021,754	)	(161,785	)	(2,838,096	)	(15,011,061	)	(22,309,053	)
Realized gain (loss) on investments		375		920,602		298,306		75,796		36,959		(101,885	)	(57,165	)	(283,639	)
Change in unrealized gain (loss) on investments		358		(1,023,350	)	(565,353	)	32,724		(42,433	)	(2,934	)	(373,547	)	354,674
Net gain (loss) on investments		733		(102,748	)	(267,047	)	108,520		(5,474	)	(104,819	)	(430,712	)	71,035
Reinvested capital gains		171		381,312		329,086		327,521		245,921		–		671,525		50,886
Net increase (decrease) in contract owners’ equity resulting from operations	$	10,232		331,121		131,821		428,632		235,689		(105,042	)	249,102		117,985

(Continued)

11

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2007

Investment activity:		VKUEmMkt		VKUMCpGro		VKUUSRE		WRRealEstS		WFVDisc		WFVOpp
Reinvested dividends	$	9,677		–		37,309		–		–		6,997
Mortality and expense risk charges (note 3)		(484	)	(883	)	(8,671	)	(557	)	(71	)	(3,058	)
Net investment income (loss)		9,193		(883	)	28,638		(557	)	(71	)	3,939
Proceeds from mutual fund shares sold		36,112		35,473		1,973,912		2,722,766		2,441		140,748
Cost of mutual fund shares sold		(36,938	)	(31,680	)	(1,584,339	)	(2,899,291	)	(1,748	)	(113,606	)
Realized gain (loss) on investments		(826	)	3,793		389,573		(176,525	)	693		27,142
Change in unrealized gain (loss) on investments		455		49,883		(1,214,331	)	–		4,929		(113,085	)
Net gain (loss) on investments		(371	)	53,676		(824,758	)	(176,525	)	5,622		(85,943	)
Reinvested capital gains		4,135		16,890		291,353		–		–		163,960
Net increase (decrease) in contract owners’ equity resulting from operations	$	12,957		69,683		(504,767	)	(177,082	)	5,551		81,956

See accompanying notes to financial statements.

12

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

		Total				AIMBValue				AIMIntGr				AlVGrIncA
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	5,380,452		6,806,542		(10	)	35		22		(425	)	13,363		2,539
Realized gain (loss) on investments		23,688,809		14,567,840		2,065		579		145		67,799		2,366		2,992
Change in unrealized gain (loss) on investments		(21,544,419	)	6,489,090		(1,716	)	696		24		–		(73,032	)	66,976
Reinvested capital gains		11,793,316		6,305,889		132		826		–		–		57,296		12,765
Net increase (decrease) in contract owners’ equity resulting from operations		19,318,158		34,169,361		471		2,136		191		67,374		(7	)	85,272
Equity transactions:
Purchase payments received from contract owners (note 6)		2,769,516		6,668,296		–		7		–		–		1		38
Transfers between funds		–		–		(17,617	)	7,011		7,283		1,479,998		(842,571	)	769,360
Surrenders (note 6)		(89,480,618	)	(35,612,692	)	(138	)	–		–		(1,543,518	)	(37,248	)	–
Death benefits (note 4)		(320,950	)	(351,170	)	–		–		–		–		–		–
Net policy repayments (loans) (note 5)		–		12,239		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,545,462	)	(5,583,931	)	(227	)	(348	)	(24	)	(3,849	)	(28,461	)	(5,616	)
Adjustments to maintain reserves		2,950		5,190		(7	)	36		20		(5	)	(27	)	31
Net equity transactions		(91,574,564	)	(34,862,068	)	(17,989	)	6,706		7,279		(67,374	)	(908,306	)	763,813
Net change in contract owners’ equity		(72,256,406	)	(692,707	)	(17,518	)	8,842		7,470		–		(908,313	)	849,085
Contract owners’ equity beginning of period		341,357,796		342,050,503		19,867		11,025		–		–		981,453		132,368
Contract owners’ equity end of period	$	269,101,390		341,357,796		2,349		19,867		7,470		–		73,140		981,453
CHANGES IN UNITS:
Beginning units		25,622,476		28,035,538		1,148		720		–		–		54,408		8,602
Units purchased		5,681,371		5,248,312		36		450		365		99,374		377		46,154
Units redeemed		(13,076,865	)	(7,661,374	)	(1,050	)	(22	)	(1	)	(99,374	)	(50,911	)	(348	)
Ending units		18,226,982		25,622,476		134		1,148		364		–		3,874		54,408

(Continued)

13

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		AlVIntlValA				ACVPBal			ACVPCapAp				ACVPIncGr
Investment activity:		2007		2006		2007	2006		2007		2006		2007		2006
Net investment income (loss)	$	245		(224	)	–	52,787		(4,815	)	(4,325	)	30,501		168,603
Realized gain (loss) on investments		37,637		27		–	(223,553	)	65,571		115,108		2,146,588		1,231,984
Change in unrealized gain (loss) on investments		(331,305	)	41,504		–	(2,703	)	651,660		154,233		(2,180,458	)	427,055
Reinvested capital gains		23,908		–		–	180,295		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(269,515	)	41,307		–	6,826		712,416		265,016		(3,369	)	1,827,642
Equity transactions:
Purchase payments received from contract owners (note 6)		51,964		1,529		–	–		–		–		19,403		95,687
Transfers between funds		11,658,381		408,538		–	2,858,960		–		11,384		(30,506	)	(815,874	)
Surrenders (note 6)		(1,853	)	–		–	(2,928,002	)	(103,854	)	(194,203	)	(8,981,781	)	(143,825	)
Death benefits (note 4)		–		–		–	–		–		–		–		(30,696	)
Net policy repayments (loans) (note 5)		–		–		–	–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(24,314	)	(380	)	–	(8,103	)	(48,945	)	(47,541	)	(34,440	)	(160,567	)
Adjustments to maintain reserves		18		17		–	(12	)	2		(32	)	10		(5	)
Net equity transactions		11,684,196		409,704		–	(77,157	)	(152,797	)	(230,392	)	(9,027,314	)	(1,055,280	)
Net change in contract owners’ equity		11,414,681		451,011		–	(70,331	)	559,619		34,624		(9,030,683	)	772,362
Contract owners’ equity beginning of period		451,011		–		–	70,331		1,674,712		1,640,088		10,892,353		10,119,991
Contract owners’ equity end of period	$	11,865,692		451,011		–	–		2,234,331		1,674,712		1,861,670		10,892,353
CHANGES IN UNITS:
Beginning units		39,832		–		–	5,834		100,414		114,984		767,452		830,724
Units purchased		954,667		39,868		–	233,360		–		1,394		1,291		7,417
Units redeemed		(2,483	)	(36	)	–	(239,194	)	(8,300	)	(15,964	)	(643,541	)	(70,689	)
Ending units		992,016		39,832		–	–		92,114		100,414		125,202		767,452

(Continued)

14

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

	ACVPInt					ACVPUltra				ACVPVal				ACVPVista1
Investment activity:	2007			2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	12,834		108,778		(900	)	(1,876	)	26,749		70,395		(2	)	–
Realized gain (loss) on investments		890,941		1,073,610		12,039		(11,272	)	11,067		(28,321	)	44		–
Change in unrealized gain (loss) on investments		(327,479	)	(85,023	)	50,671		(9,854	)	(303,054	)	(32,598	)	243		–
Reinvested capital gains		–		–		–		–		165,284		488,908		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		576,296		1,097,365		61,810		(23,002	)	(99,954	)	498,384		285		–
Equity transactions:
Purchase payments received from contract owners (note 6)		8,135		139,476		677		22,335		12,513		5,693		28		–
Transfers between funds		873,142		(2,745,554	)	(207,806	)	(383,460	)	(44,048	)	1,164,586		792		–
Surrenders (note 6)		(2,296,351	)	(342,470	)	(210	)	–		(37,589	)	(4,025,149	)	–		–
Death benefits (note 4)		(9,769	)	–		–		(12,434	)	–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(69,288	)	(95,801	)	(3,090	)	(7,792	)	(26,607	)	(55,868	)	(6	)	–
Adjustments to maintain reserves		41		(39	)	17		13		(10	)	11		11		–
Net equity transactions		(1,494,090	)	(3,044,388	)	(210,412	)	(381,338	)	(95,741	)	(2,910,727	)	825		–
Net change in contract owners’ equity		(917,794	)	(1,947,023	)	(148,602	)	(404,340	)	(195,695	)	(2,412,343	)	1,110		–
Contract owners’ equity beginning of period		4,970,381		6,917,404		487,474		891,814		2,104,462		4,516,805		–		–
Contract owners’ equity end of period	$	4,052,587		4,970,381		338,872		487,474		1,908,767		2,104,462		1,110		–
CHANGES IN UNITS:
Beginning units		331,670		620,300		44,920		79,294		107,824		273,906		–		–
Units purchased		57,608		18,622		137		2,163		616		72,358		64		–
Units redeemed		(158,978	)	(307,252	)	(19,191	)	(36,537	)	(5,086	)	(238,440	)	–		–
Ending units		230,300		331,670		25,866		44,920		103,354		107,824		64		–

(Continued)

15

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		BRIntIndex			BRLrgCp			CalVSSocEq				CSTGlobSmCp
Investment activity:		2007		2006	2007		2006	2007		2006		2007		2006
Net investment income (loss)	$	(2	)	–	(1	)	–	(23	)	(13	)	(827	)	(708	)
Realized gain (loss) on investments		227		–	170		–	337		644		21,164		4,944
Change in unrealized gain (loss) on investments		–		–	–		–	204		(17	)	(32,817	)	36,476
Reinvested capital gains		–		–	–		–	427		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		225		–	169		–	945		614		(12,480	)	40,712
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–	–		–	69		–		23,604		109,702
Transfers between funds		(220	)	–	(163	)	–	799		2,356		(40,359	)	(24,822	)
Surrenders (note 6)		–		–	–		–	–		–		(4,670	)	(12,657	)
Death benefits (note 4)		–		–	–		–	–		–		–		–
Net policy repayments (loans) (note 5)		–		–	–		–	–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(6	)	–	(6	)	–	(71	)	(48	)	(2,454	)	(3,149	)
Adjustments to maintain reserves		1		–	–		–	(22	)	18		(21	)	8
Net equity transactions		(225	)	–	(169	)	–	775		2,326		(23,900	)	69,082
Net change in contract owners’ equity		–		–	–		–	1,720		2,940		(36,380	)	109,794
Contract owners’ equity beginning of period		–		–	–		–	6,964		4,024		361,649		251,855
Contract owners’ equity end of period	$	–		–	–		–	8,684		6,964		325,269		361,649
CHANGES IN UNITS:
Beginning units		–		–	–		–	454		288		28,502		22,414
Units purchased		570		–	1		–	68		169		1,748		9,640
Units redeemed		(570	)	–	(1	)	–	(6	)	(3	)	(3,492	)	(3,552	)
Ending units		–		–	–		–	516		454		26,758		28,502

(Continued)

16

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		CSTIntFoc				CSTLCapV				CSTSmCapGr				DryIPMidCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	512		405		959		1,074		(1,288	)	(1,434	)	2		–
Realized gain (loss) on investments		5,822		6,444		21,502		16,658		3,183		479		(47	)	13
Change in unrealized gain (loss) on investments		2,803		(190	)	(35,661	)	10,325		(5,854	)	22,391		3		(62	)
Reinvested capital gains		–		–		17,743		–		–		–		117		132
Net increase (decrease) in contract owners’ equity resulting from operations		9,137		6,659		4,543		28,057		(3,959	)	21,436		75		83
Equity transactions:
Purchase payments received from contract owners (note 6)		8,686		115		62		149		–		–		–		–
Transfers between funds		175		15,733		(88,996	)	7,370		–		7,236		(1,050	)	78
Surrenders (note 6)		(6,986	)	(8,376	)	(208	)	(31,668	)	(32,016	)	(63,652	)	–		–
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,480	)	(1,256	)	(2,326	)	(4,091	)	(13,295	)	(15,805	)	(6	)	(8	)
Adjustments to maintain reserves		(10	)	5		(10	)	4		(8	)	12		–		(19	)
Net equity transactions		385		6,221		(91,478	)	(28,236	)	(45,319	)	(72,209	)	(1,056	)	51
Net change in contract owners’ equity		9,522		12,880		(86,935	)	(179	)	(49,278	)	(50,773	)	(981	)	134
Contract owners’ equity beginning of period		55,399		42,519		162,336		162,515		532,164		582,937		981		847
Contract owners’ equity end of period	$	64,921		55,399		75,401		162,336		482,886		532,164		–		981
CHANGES IN UNITS:
Beginning units		4,214		3,828		10,300		12,276		53,708		61,484		56		52
Units purchased		666		1,223		4		709		–		718		–		6
Units redeemed		(634	)	(837	)	(5,592	)	(2,685	)	(4,440	)	(8,494	)	(56	)	(2	)
Ending units		4,246		4,214		4,712		10,300		49,268		53,708		–		56

(Continued)

17

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		DryIPSmCap				DryStkIx				DryVApp				DryVGroInc
Investment activity:		2007		2006		2007		2006		2007		2006		2007	2006
Net investment income (loss)	$	4,916		10,152		479,256		620,390		12,365		13,312		–	655
Realized gain (loss) on investments		722,748		320,299		6,872,888		3,739,734		232,139		28,375		–	17,641
Change in unrealized gain (loss) on investments		(1,590,936	)	399,501		(5,377,431	)	2,010,636		(125,243	)	114,472		–	(13,449	)
Reinvested capital gains		263,600		128,243		–		–		–		–		–	–
Net increase (decrease) in contract owners’ equity resulting from operations		(599,672	)	858,195		1,974,713		6,370,760		119,261		156,159		–	4,847
Equity transactions:
Purchase payments received from contract owners (note 6)		1,221		1,771		285,580		380,057		2,237		16,235		–	–
Transfers between funds		641,068		2,424,621		43,795		4,185,932		89,621		50,088		–	–
Surrenders (note 6)		(49,756	)	(555,549	)	(11,498,462	)	(5,573,333	)	(33,919	)	(137,193	)	–	(8,863	)
Death benefits (note 4)		(2,956	)	(419	)	(41,207	)	(7,105	)	–		–		–	–
Net policy repayments (loans) (note 5)		–		–		–		(181,311	)	–		–		–	(181,314	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(61,827	)	(40,639	)	(406,373	)	(562,902	)	(27,037	)	(17,881	)	–	(9,059	)
Adjustments to maintain reserves		1		(4	)	(485	)	242		17		5		–	(13	)
Net equity transactions		527,751		1,829,781		(11,617,152	)	(1,758,420	)	30,919		(88,746	)	–	(199,249	)
Net change in contract owners’ equity		(71,921	)	2,687,976		(9,642,439	)	4,612,340		150,180		67,413		–	(194,402	)
Contract owners’ equity beginning of period		7,252,343		4,564,367		45,980,781		41,368,441		1,101,114		1,033,701		–	194,402
Contract owners’ equity end of period	$	7,180,422		7,252,343		36,338,342		45,980,781		1,251,294		1,101,114		–	–
CHANGES IN UNITS:
Beginning units		462,972		332,720		3,579,034		3,648,434		78,668		85,838		–	19,500
Units purchased		464,941		169,285		884,723		687,923		9,903		5,997		–	10
Units redeemed		(465,565	)	(39,033	)	(1,778,887	)	(757,323	)	(4,935	)	(13,167	)	–	(19,510	)
Ending units		462,348		462,972		2,684,870		3,579,034		83,636		78,668		–	–

(Continued)

18

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		DryVIntVal				DWSVHghRtrn				FedQualBd				FidVIPEIS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	176,516		53,465		2,046		(327	)	24,362		19,287		37,055		189,137
Realized gain (loss) on investments		(614,911	)	40,568		5,491		912		(1,329	)	(12,873	)	593,136		371,214
Change in unrealized gain (loss) on investments		(691,153	)	474,758		(17,024	)	24,654		4,675		12,497		(685,180	)	(80,793	)
Reinvested capital gains		1,591,282		360,054		2,147		9,556		–		–		246,367		814,894
Net increase (decrease) in contract owners’ equity resulting from operations		461,734		928,845		(7,340	)	34,795		27,708		18,911		191,378		1,294,452
Equity transactions:
Purchase payments received from contract owners (note 6)		347		3		451		912		3,977		6,533		20,790		50,035
Transfers between funds		(4,144,859	)	2,726,113		5,138		221,163		7,185		(29,372	)	(5,424,325	)	3,120,461
Surrenders (note 6)		(211,150	)	–		–		–		(17,225	)	(26,555	)	(433,816	)	(2,284,766	)
Death benefits (note 4)		(8,598	)	–		–		–		–		–		–		(8,555	)
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(88,172	)	(44,330	)	(4,709	)	(2,330	)	(8,457	)	(8,890	)	(76,068	)	(51,130	)
Adjustments to maintain reserves		(34	)	30		5		7		(18	)	20		1		25
Net equity transactions		(4,452,466	)	2,681,816		885		219,752		(14,538	)	(58,264	)	(5,913,418	)	826,070
Net change in contract owners’ equity		(3,990,732	)	3,610,661		(6,455	)	254,547		13,170		(39,353	)	(5,722,040	)	2,120,522
Contract owners’ equity beginning of period		6,178,974		2,568,313		254,547		–		539,847		579,200		8,558,789		6,438,267
Contract owners’ equity end of period	$	2,188,242		6,178,974		248,092		254,547		553,017		539,847		2,836,749		8,558,789
CHANGES IN UNITS:
Beginning units		294,346		149,700		22,612		–		37,376		41,670		569,754		501,478
Units purchased		20,763		146,973		552		22,833		899		457		67,524		284,434
Units redeemed		(214,639	)	(2,327	)	(576	)	(221	)	(1,853	)	(4,751	)	(464,520	)	(216,158	)
Ending units		100,470		294,346		22,588		22,612		36,422		37,376		172,758		569,754

(Continued)

19

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPGr				FidVIPGrS				FidVIPHIS				FidVIPOvS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	364		508		8,427		18,932		127,637		123,866		230,444		28,454
Realized gain (loss) on investments		290		12,988		2,031,325		(149,650	)	(2,461	)	(55,072	)	1,366,991		805,531
Change in unrealized gain (loss) on investments		14,589		(10,823	)	9,851		1,263,571		(86,869	)	108,645		(1,358,930	)	734,610
Reinvested capital gains		59		–		15,149		–		–		–		758,409		36,147
Net increase (decrease) in contract owners’ equity resulting from operations		15,302		2,673		2,064,752		1,132,853		38,307		177,439		996,914		1,604,742
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–		22,131		1,051		16,346		54,143		39,331		132,048
Transfers between funds		–		–		15,574,091		(141,416	)	(144,212	)	(322,364	)	(6,877,341	)	3,103,415
Surrenders (note 6)		–		(769	)	(17,219,311	)	(146,695	)	(25,306	)	(36,157	)	(70,586	)	(442,348	)
Death benefits (note 4)		–		–		–		–		–		(33,561	)	–		(39,571	)
Net policy repayments (loans) (note 5)		–		(181,316	)	–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,131	)	(9,973	)	(163,913	)	(263,651	)	(19,177	)	(21,525	)	(76,744	)	(81,987	)
Adjustments to maintain reserves		(2	)	11		70		54		(8	)	(15	)	12		26
Net equity transactions		(1,133	)	(192,047	)	(1,786,932	)	(550,657	)	(172,357	)	(359,479	)	(6,985,328	)	2,671,583
Net change in contract owners’ equity		14,169		(189,374	)	277,820		582,196		(134,050	)	(182,040	)	(5,988,414	)	4,276,325
Contract owners’ equity beginning of period		57,975		247,349		18,171,295		17,589,099		1,727,648		1,909,688		10,862,342		6,586,017
Contract owners’ equity end of period	$	72,144		57,975		18,449,115		18,171,295		1,593,598		1,727,648		4,873,928		10,862,342
CHANGES IN UNITS:
Beginning units		6,314		28,712		1,644,044		1,692,708		161,676		198,202		713,188		507,590
Units purchased		–		13		1,038,679		16		1,504		5,364		15,592		251,382
Units redeemed		(110	)	(22,411	)	(1,545,467	)	(48,680	)	(17,542	)	(41,890	)	(457,472	)	(45,784	)
Ending units		6,204		6,314		1,137,256		1,644,044		145,638		161,676		271,308		713,188

(Continued)

20

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPAM				FidVIPCon			FidVIPConS				FidVIPIGBdS
Investment activity:		2007		2006		2007	2006		2007		2006		2007		2006
Net investment income (loss)	$	259,124		192,993		–	1,634		43,236		117,894		2,041		(84	)
Realized gain (loss) on investments		78,777		311,946		–	141,137		167,208		1,432,149		(178	)	3,553
Change in unrealized gain (loss) on investments		174,858		(164,754	)	–	(136,867	)	(846,445	)	(1,070,598	)	168		39
Reinvested capital gains		112,375		–		–	3,674		1,952,380		969,358		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		625,134		340,185		–	9,578		1,316,379		1,448,803		2,031		3,508
Equity transactions:
Purchase payments received from contract owners (note 6)		–		(2,051	)	–	–		100,844		126,902		50		–
Transfers between funds		403,826		(3,562,266	)	–	–		(4,742,228	)	(3,271,362	)	(6,570	)	55,370
Surrenders (note 6)		(51,374	)	(105,917	)	–	(211,508	)	(218,820	)	(241,826	)	–		–
Death benefits (note 4)		–		–		–	–		–		(36,786	)	–		–
Net policy repayments (loans) (note 5)		–		–		–	(181,305	)	–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(112,250	)	(126,910	)	–	(12,908	)	(140,428	)	(225,047	)	(407	)	(503	)
Adjustments to maintain reserves		8		18		–	(25	)	34		7		(5	)	18
Net equity transactions		240,210		(3,797,126	)	–	(405,746	)	(5,000,598	)	(3,648,112	)	(6,932	)	54,885
Net change in contract owners’ equity		865,344		(3,456,941	)	–	(396,168	)	(3,684,219	)	(2,199,309	)	(4,901	)	58,393
Contract owners’ equity beginning of period		4,085,503		7,542,444		–	396,168		11,558,803		13,758,112		58,393		–
Contract owners’ equity end of period	$	4,950,847		4,085,503		–	–		7,874,584		11,558,803		53,492		58,393
CHANGES IN UNITS:
Beginning units		335,238		662,530		–	28,138		606,490		797,956		5,542		–
Units purchased		30,107		–		–	–		6,578		7,478		5		5,590
Units redeemed		(12,745	)	(327,292	)	–	(28,138	)	(272,738	)	(198,944	)	(663	)	(48	)
Ending units		352,600		335,238		–	–		340,330		606,490		4,884		5,542

(Continued)

21

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPGrOpS				FidVIPMCapS				FidVIPVaIS				FrVIPForSec2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(3,658	)	5,030		7,036		(711	)	90		128		61,630		20,316
Realized gain (loss) on investments		85,461		152,290		11,030		7,140		2,650		(2,147	)	664,439		133,803
Change in unrealized gain (loss) on investments		211,574		(95,357	)	52,561		74,773		(1,552	)	(766	)	(487,024	)	339,184
Reinvested capital gains		–		–		112,067		488		2,619		6,435		152,105		–
Net increase (decrease) in contract owners’ equity resulting from operations		293,377		61,963		182,694		81,690		3,807		3,650		391,150		493,303
Equity transactions:
Purchase payments received from contract owners (note 6)		3,095		10,726		109,753		4,408		59		(2	)	1,248		4,894
Transfers between funds		(101,663	)	(91,981	)	346,941		1,141,191		(25,407	)	(17,435	)	(2,860,556	)	175,220
Surrenders (note 6)		(42,723	)	(78,259	)	–		–		–		–		(30,762	)	–
Death benefits (note 4)		(31,622	)	–		–		–		–		–		–		(148	)
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(55,261	)	(55,512	)	(23,371	)	(1,419	)	(89	)	(259	)	(22,119	)	(24,862	)
Adjustments to maintain reserves		37		33		(35	)	51		(13	)	(15	)	17		3
Net equity transactions		(228,137	)	(214,993	)	433,288		1,144,231		(25,450	)	(17,711	)	(2,912,172	)	155,107
Net change in contract owners’ equity		65,240		(153,030	)	615,982		1,225,921		(21,643	)	(14,061	)	(2,521,022	)	648,410
Contract owners’ equity beginning of period		1,397,232		1,550,262		1,225,921		–		22,749		36,810		3,103,159		2,454,749
Contract owners’ equity end of period	$	1,462,472		1,397,232		1,841,903		1,225,921		1,106		22,749		582,137		3,103,159
CHANGES IN UNITS:
Beginning units		138,014		160,854		90,128		–		1,430		2,682		157,718		151,146
Units purchased		–		1,136		28,952		90,235		3		–		468		33,347
Units redeemed		(20,314	)	(23,976	)	(1,530	)	(107	)	(1,367	)	(1,252	)	(132,494	)	(26,775	)
Ending units		117,700		138,014		117,550		90,128		66		1,430		25,692		157,718

(Continued)

22

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FrVIPSCapV2				GSVTMdCpV				JAspBal				JAspForty
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	771		(68	)	20,368		24,989		10,182		7,773		(2,717	)	(325	)
Realized gain (loss) on investments		1,715		7		108,247		193,030		10,017		3,315		658,745		46,378
Change in unrealized gain (loss) on investments		(29,116	)	6,381		(594,243	)	(108,642	)	27,254		33,292		56,030		(25,873	)
Reinvested capital gains		13,697		–		556,933		360,585		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(12,933	)	6,320		91,305		469,962		47,453		44,380		712,058		20,180
Equity transactions:
Purchase payments received from contract owners (note 6)		18,126		465		1,966		3,614		–		110		4,111		28,900
Transfers between funds		110,061		128,712		15,614		389,522		(8,936	)	61,665		(600,431	)	(13,945	)
Surrenders (note 6)		–		–		(71,205	)	–		(2,646	)	–		(24,430	)	(187,228	)
Death benefits (note 4)		–		–		(3,901	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(3,552	)	(114	)	(40,836	)	(29,645	)	(4,895	)	(4,379	)	(26,244	)	(7,771	)
Adjustments to maintain reserves		(18	)	22		22		29		(7	)	8		12		10
Net equity transactions		124,617		129,085		(98,340	)	363,520		(16,484	)	57,404		(646,982	)	(180,034	)
Net change in contract owners’ equity		111,684		135,405		(7,035	)	833,482		30,969		101,784		65,076		(159,854	)
Contract owners’ equity beginning of period		135,405		–		3,620,139		2,786,657		482,242		380,458		277,121		436,975
Contract owners’ equity end of period	$	247,089		135,405		3,613,104		3,620,139		513,211		482,242		342,197		277,121
CHANGES IN UNITS:
Beginning units		10,222		–		174,678		155,806		33,144		28,800		29,924		51,332
Units purchased		9,198		10,231		13,289		21,542		97		4,665		2,326		5,857
Units redeemed		(264	)	(9	)	(18,615	)	(2,670	)	(1,179	)	(321	)	(5,148	)	(27,265	)
Ending units		19,156		10,222		169,352		174,678		32,062		33,144		27,102		29,924

(Continued)

23

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		JAspGlTechS				JAspIntGroS				JPMMidCapGr				JPMMidCapV
Investment activity:		2007		2006		2007		2006		2007		2006		2007	2006
Net investment income (loss)	$	432		(1,963	)	5,265		27,090		(3,379	)	(3,251	)	–	18
Realized gain (loss) on investments		64,806		58,528		76,079		121,812		64,495		127,000		–	(178	)
Change in unrealized gain (loss) on investments		42,794		(11,855	)	570,566		464,101		(61,293	)	(31,007	)	–	–
Reinvested capital gains		–		–		–		–		204,989		39,386		–	250
Net increase (decrease) in contract owners’ equity resulting from operations		108,032		44,710		651,910		613,003		204,812		132,128		–	90
Equity transactions:
Purchase payments received from contract owners (note 6)		954		89,239		87,650		101,547		–		–		–	–
Transfers between funds		(119,869	)	(427,115	)	164,257		399,396		240,023		30,704		–	(86	)
Surrenders (note 6)		–		–		–		(145,933	)	(8,750	)	(17,202	)	–	–
Death benefits (note 4)		–		–		–		–		–		–		–	–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–	–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(12,407	)	(18,200	)	(31,788	)	(24,158	)	(14,236	)	(13,866	)	–	(4	)
Adjustments to maintain reserves		4		13		(19	)	1		39		(3	)	–	–
Net equity transactions		(131,318	)	(356,063	)	220,100		330,853		217,076		(367	)	–	(90	)
Net change in contract owners’ equity		(23,286	)	(311,353	)	872,010		943,856		421,888		131,761		–	–
Contract owners’ equity beginning of period		595,550		906,903		2,153,441		1,209,585		1,245,350		1,113,589		–	–
Contract owners’ equity end of period	$	572,264		595,550		3,025,451		2,153,441		1,667,238		1,245,350		–	–
CHANGES IN UNITS:
Beginning units		140,322		229,836		150,838		123,920		69,548		69,100		–	–
Units purchased		202		23,788		20,195		42,597		11,258		9,267		–	–
Units redeemed		(29,450	)	(113,302	)	(5,113	)	(15,679	)	(1,188	)	(8,819	)	–	–
Ending units		111,074		140,322		165,920		150,838		79,618		69,548		–	–

(Continued)

24

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		LincGroOp				LrdMidCapV			NVITFHiInc				NVITEmMrkts
Investment activity:		2007		2006		2007		2006	2007		2006		2007		2006
Net investment income (loss)	$	(4,772	)	(1,697	)	73		–	140,440		113,982		3,543		664
Realized gain (loss) on investments		29,346		47,043		209		–	(2,701	)	(1,965	)	3,462		310,137
Change in unrealized gain (loss) on investments		(261,516	)	42,204		(5,336	)	–	(87,172	)	46,987		166,697		45,647
Reinvested capital gains		257,623		–		4,915		–	–		–		63,561		4,572
Net increase (decrease) in contract owners’ equity resulting from operations		20,681		87,550		(139	)	–	50,567		159,004		237,263		361,020
Equity transactions:
Purchase payments received from contract owners (note 6)		–		36		–		–	103,748		152,016		50		3,151
Transfers between funds		1,430,638		401,588		37,075		–	157,326		269,794		851,667		(254,222	)
Surrenders (note 6)		(64,210	)	(33,957	)	–		–	(3,476	)	–		–		–
Death benefits (note 4)		–		–		–		–	–		(12,088	)	–		–
Net policy repayments (loans) (note 5)		–		–		–		–	–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(44,692	)	(15,435	)	(275	)	–	(25,058	)	(18,945	)	(6,970	)	(15,659	)
Adjustments to maintain reserves		46		(6	)	24		–	(16	)	(5	)	776		1,730
Net equity transactions		1,321,782		352,226		36,824		–	232,524		390,772		845,523		(265,000	)
Net change in contract owners’ equity		1,342,463		439,776		36,685		–	283,091		549,776		1,082,786		96,020
Contract owners’ equity beginning of period		720,458		280,682		–		–	1,755,871		1,206,095		345,571		249,551
Contract owners’ equity end of period	$	2,062,921		720,458		36,685		–	2,038,962		1,755,871		1,428,357		345,571
CHANGES IN UNITS:
Beginning units		38,476		17,282		–		–	114,762		86,974		13,852		13,642
Units purchased		75,969		24,102		2,916		–	18,836		29,955		25,804		5,243
Units redeemed		(7,677	)	(2,908	)	(18	)	–	(4,090	)	(2,167	)	(228	)	(5,033	)
Ending units		106,768		38,476		2,898		–	129,508		114,762		39,428		13,852

(Continued)

25

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGlUtl				NVITIntGro				NVITWLead				NVITGlFin
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	100,635		(921	)	691		3,208		485		2,200		35,438		19,425
Realized gain (loss) on investments		922,244		261,777		23,749		13,178		87,618		30,825		4,896		9,539
Change in unrealized gain (loss) on investments		(210	)	507		47,878		86,730		(9,743	)	51,931		(211,405	)	37,028
Reinvested capital gains		172,007		562		37,852		853		–		–		160,193		140,063
Net increase (decrease) in contract owners’ equity resulting from operations		1,194,676		261,925		110,170		103,969		78,360		84,956		(10,878	)	206,055
Equity transactions:
Purchase payments received from contract owners (note 6)		(1	)	–		41		–		7,362		5,263		713		4,523
Transfers between funds		(1,084,187	)	(248,256	)	(14,144	)	(7,552	)	145,032		2,622		3,252		234,747
Surrenders (note 6)		–		–		–		–		(20,868	)	(43,597	)	(73,166	)	(141,908	)
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(113,446	)	(12,579	)	(11,654	)	(9,361	)	(12,733	)	(9,890	)	(29,954	)	(31,766	)
Adjustments to maintain reserves		36		(12	)	4		2		(2	)	(10	)	16		20
Net equity transactions		(1,197,598	)	(260,847	)	(25,753	)	(16,911	)	118,791		(45,612	)	(99,139	)	65,616
Net change in contract owners’ equity		(2,922	)	1,078		84,417		87,058		197,151		39,344		(110,017	)	271,671
Contract owners’ equity beginning of period		5,063		3,985		409,823		322,765		415,693		376,349		1,220,729		949,058
Contract owners’ equity end of period	$	2,141		5,063		494,240		409,823		612,844		415,693		1,110,712		1,220,729
CHANGES IN UNITS:
Beginning units		250		270		30,994		32,376		26,456		30,076		62,280		58,114
Units purchased		4,966		624		3		–		8,175		1,763		201		13,804
Units redeemed		(5,128	)	(644	)	(1,525	)	(1,382	)	(2,019	)	(5,383	)	(5,067	)	(9,638	)
Ending units		88		250		29,472		30,994		32,612		26,456		57,414		62,280

(Continued)

26

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGlHlth				NVITGlTech				NVITGvtBd				NVITGrowth
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(45	)	(807	)	(1,839	)	(1,299	)	160,026		370,129		(273	)	(542	)
Realized gain (loss) on investments		736		69,799		9,249		26,385		(364,837	)	(247,748	)	26,616		13,849
Change in unrealized gain (loss) on investments		45		1,114		62,193		(60,970	)	461,225		75,495		23,540		1,177
Reinvested capital gains		835		–		–		–		–		76,572		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,571		70,106		69,603		(35,884	)	256,414		274,448		49,883		14,484
Equity transactions:
Purchase payments received from contract owners (note 6)		50		–		–		5,730		26,650		84,640		(73	)	198
Transfers between funds		2,757		(58,227	)	(3,319,815	)	3,398,303		95,896		(144,510	)	99,682		28,712
Surrenders (note 6)		–		–		–		–		(5,414,360	)	(2,305,941	)	(31,077	)	(42,456	)
Death benefits (note 4)		–		–		–		–		(44,693	)	–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(180	)	(7,788	)	(23,290	)	(7,429	)	(148,550	)	(270,026	)	(8,060	)	(7,260	)
Adjustments to maintain reserves		25		(8	)	11		6		12		31		(7	)	(2	)
Net equity transactions		2,652		(66,023	)	(3,343,094	)	3,396,610		(5,485,045	)	(2,635,806	)	60,465		(20,808	)
Net change in contract owners’ equity		4,223		4,083		(3,273,491	)	3,360,726		(5,228,631	)	(2,361,358	)	110,348		(6,324	)
Contract owners’ equity beginning of period		13,807		9,724		3,640,974		280,248		9,108,725		11,470,083		278,417		284,741
Contract owners’ equity end of period	$	18,030		13,807		367,483		3,640,974		3,880,094		9,108,725		388,765		278,417
CHANGES IN UNITS:
Beginning units		1,020		736		1,047,120		89,376		600,106		785,122		39,802		43,126
Units purchased		170		860		–		960,063		7,321		5,661		12,901		4,210
Units redeemed		(10	)	(576	)	(958,896	)	(2,319	)	(371,469	)	(190,677	)	(6,095	)	(7,534	)
Ending units		1,180		1,020		88,224		1,047,120		235,958		600,106		46,608		39,802

(Continued)

27

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITIntIdx2			NVITIDCon2				NVITIDMod2				NVITIDModAg2
Investment activity:		2007		2006	2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	57,573		–	1,306		9		22,857		18,235		1,780		21
Realized gain (loss) on investments		15,206		–	(1	)	–		29,043		1,087		11		149
Change in unrealized gain (loss) on investments		(174,553	)	–	(419	)	(3	)	(11,785	)	53,459		(5,913	)	10
Reinvested capital gains		11,160		–	25		–		13,441		6,832		2,157		23
Net increase (decrease) in contract owners’ equity resulting from operations		(90,614	)	–	911		6		53,556		79,613		(1,965	)	203
Equity transactions:
Purchase payments received from contract owners (note 6)		1,113		–	–		–		1,859		4,156		180		–
Transfers between funds		8,680,730		–	105,464		976		77,755		231,997		113,899		800
Surrenders (note 6)		(552	)	–	–		–		(181,350	)	–		–		–
Death benefits (note 4)		–		–	–		–		(9,344	)	(1,846	)	–		–
Net policy repayments (loans) (note 5)		–		–	–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(17,332	)	–	(77	)	(1	)	(21,757	)	(15,260	)	(457	)	(10	)
Adjustments to maintain reserves		25		–	16		3		14		8		(10	)	23
Net equity transactions		8,663,984		–	105,403		978		(132,823	)	219,055		113,612		813
Net change in contract owners’ equity		8,573,370		–	106,314		984		(79,267	)	298,668		111,647		1,016
Contract owners’ equity beginning of period		–		–	984		–		1,027,227		728,559		1,016		–
Contract owners’ equity end of period	$	8,573,370		–	107,298		984		947,960		1,027,227		112,663		1,016
CHANGES IN UNITS:
Beginning units		–		–	80		–		73,762		58,110		68		–
Units purchased		848,957		–	8,227		80		5,726		16,955		7,084		69
Units redeemed		(1,855	)	–	(5	)	–		(14,902	)	(1,303	)	(30	)	(1	)
Ending units		847,102		–	8,302		80		64,586		73,762		7,122		68

(Continued)

28

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITIDModCon2				NVITJPBal				NVITMdCpGr				NVITMidCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	60		19		33,471		105,324		(1,167	)	(1,066	)	24,975		14,925
Realized gain (loss) on investments		(1	)	25		328,707		734,473		16,840		72,340		51,705		170,656
Change in unrealized gain (loss) on investments		(27	)	–		(286,448	)	(465,221	)	20,309		(25,635	)	(92,074	)	(91,790	)
Reinvested capital gains		55		12		15,012		–		–		–		19,546		22,098
Net increase (decrease) in contract owners’ equity resulting from operations		87		56		90,742		374,576		35,982		45,639		4,152		115,889
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–		23,002		6,116		6,255		41,960		3,298		8,323
Transfers between funds		1,087		931		(2,063,401	)	(8,517,103	)	84,095		35,972		6,508,603		(1,723,056	)
Surrenders (note 6)		–		–		(46,269	)	(86,918	)	(42,678	)	(233,354	)	(982	)	(11,771	)
Death benefits (note 4)		–		–		–		–		–		–		–		(3,258	)
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(14	)	(5	)	(47,235	)	(115,807	)	(10,587	)	(11,869	)	(10,270	)	(15,139	)
Adjustments to maintain reserves		7		17		(3	)	15		19		9		(10	)	(47	)
Net equity transactions		1,080		943		(2,133,906	)	(8,713,697	)	37,104		(167,282	)	6,500,639		(1,744,948	)
Net change in contract owners’ equity		1,167		999		(2,043,164	)	(8,339,121	)	73,086		(121,643	)	6,504,791		(1,629,059	)
Contract owners’ equity beginning of period		999		–		3,622,058		11,961,179		414,116		535,759		953,628		2,582,687
Contract owners’ equity end of period	$	2,166		999		1,578,894		3,622,058		487,202		414,116		7,458,419		953,628
CHANGES IN UNITS:
Beginning units		76		–		293,764		1,069,950		29,982		42,526		48,662		162,490
Units purchased		81		76		2,476		7,296		6,182		5,896		365,531		1,674
Units redeemed		(1	)	–		(173,538	)	(783,482	)	(3,726	)	(18,440	)	(2,337	)	(115,502	)
Ending units		156		76		122,702		293,764		32,438		29,982		411,856		48,662

(Continued)

29

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITMyMkt				NVITMyMkt5				NVITSmCapGr				NVITSmCapVal
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	18,428		26,414		1,807,300		2,947,752		(2,362	)	(3,036	)	53,956		11,437
Realized gain (loss) on investments		–		–		–		–		127,072		54,874		2,872		28,674
Change in unrealized gain (loss) on investments		–		–		–		–		(37,537	)	(21,124	)	(1,243,708	)	452,852
Reinvested capital gains		–		–		–		–		–		–		770,510		466,671
Net increase (decrease) in contract owners’ equity resulting from operations		18,428		26,414		1,807,300		2,947,752		87,173		30,714		(416,370	)	959,634
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–		1,479,588		3,114,183		3,271		16,930		11,117		17,578
Transfers between funds		(225,026	)	(399,998	)	(5,043,968	)	(7,978,907	)	(302,669	)	(168,070	)	(419,639	)	(365,568	)
Surrenders (note 6)		–		–		(25,587,921	)	(3,757,090	)	(33,894	)	(32,429	)	(42,621	)	(203,878	)
Death benefits (note 4)		–		–		(56,333	)	(63,574	)	–		(6,399	)	–		(12,582	)
Net policy repayments (loans) (note 5)		–		–		–		918,789		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(5,335	)	(8,395	)	(922,313	)	(1,422,435	)	(18,290	)	(24,100	)	(146,890	)	(142,740	)
Adjustments to maintain reserves		(15	)	(5	)	(6	)	(236	)	(3	)	29		(21	)	52
Net equity transactions		(230,376	)	(408,398	)	(30,130,953	)	(9,189,270	)	(351,585	)	(214,039	)	(598,054	)	(707,138	)
Net change in contract owners’ equity		(211,948	)	(381,984	)	(28,323,653	)	(6,241,518	)	(264,412	)	(183,325	)	(1,014,424	)	252,496
Contract owners’ equity beginning of period		620,488		1,002,472		65,086,274		71,327,792		1,137,140		1,320,465		6,232,235		5,979,739
Contract owners’ equity end of period	$	408,540		620,488		36,762,621		65,086,274		872,728		1,137,140		5,217,811		6,232,235
CHANGES IN UNITS:
Beginning units		48,288		81,346		5,999,472		6,864,472		66,752		79,800		250,552		281,280
Units purchased		–		–		160,485		686,758		299		1,076		844		8,931
Units redeemed		(17,872	)	(33,058	)	(2,915,281	)	(1,551,758	)	(20,257	)	(14,124	)	(25,528	)	(39,659	)
Ending units		30,416		48,288		3,244,676		5,999,472		46,794		66,752		225,868		250,552

(Continued)

30

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITSmComp				NVITNWFund				NVITNWLead			NVITUSGro
Investment activity:		2007		2006		2007		2006		2007		2006	2007		2006
Net investment income (loss)	$	(11,427	)	(10,926	)	29,534		4,238		339		–	(164	)	47
Realized gain (loss) on investments		178,139		25,951		117,213		408,039		1,358		–	956		(847	)
Change in unrealized gain (loss) on investments		(907,813	)	699,121		(119,546	)	(319,069	)	–		–	12,397		696
Reinvested capital gains		862,665		139,532		280,890		–		8,730		–	–		520
Net increase (decrease) in contract owners’ equity resulting from operations		121,564		853,678		308,091		93,208		10,427		–	13,189		416
Equity transactions:
Purchase payments received from contract owners (note 6)		46,730		126,626		29,130		72,496		–		–	–		–
Transfers between funds		48,132		(675,190	)	(100,521	)	55,429		(9,712	)	–	19,928		27,487
Surrenders (note 6)		(392,329	)	(3,072,940	)	–		(1,549,261	)	–		–	–		–
Death benefits (note 4)		(32,323	)	(46,895	)	–		–		–		–	–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–	–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(145,551	)	(148,021	)	(34,371	)	(7,535	)	(716	)	–	(504	)	(262	)
Adjustments to maintain reserves		–		(22	)	(11	)	(10	)	1		–	28		(5	)
Net equity transactions		(475,341	)	(3,816,442	)	(105,773	)	(1,428,881	)	(10,427	)	–	19,452		27,220
Net change in contract owners’ equity		(353,777	)	(2,962,764	)	202,318		(1,335,673	)	–		–	32,641		27,636
Contract owners’ equity beginning of period		7,090,820		10,053,584		601,109		1,936,782		–		–	44,211		16,575
Contract owners’ equity end of period	$	6,737,043		7,090,820		803,427		601,109		–		–	76,852		44,211
CHANGES IN UNITS:
Beginning units		312,382		524,046		46,336		168,102		–		–	2,848		1,062
Units purchased		30,823		6,314		13,501		10,976		42		–	1,232		1,803
Units redeemed		(51,907	)	(217,978	)	(2,445	)	(132,742	)	(42	)	–	(28	)	(17	)
Ending units		291,298		312,382		57,392		46,336		–		–	4,052		2,848

(Continued)

31

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITVKVal				NVITMltSec				NBTAFasc				NBTAGuard
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	3,657		1,062		84,111		89,892		(45	)	(12	)	(102	)	11,190
Realized gain (loss) on investments		3,272		4,646		(12,251	)	(9,870	)	484		382		633,978		223,148
Change in unrealized gain (loss) on investments		(36,568	)	1,646		23,383		12,695		(2,133	)	(251	)	(563,065	)	52,179
Reinvested capital gains		17,689		3,329		112		5,068		191		122		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(11,950	)	10,683		95,355		97,785		(1,503	)	241		70,811		286,517
Equity transactions:
Purchase payments received from contract owners (note 6)		–		149		8,700		–		–		–		1,524		9,040
Transfers between funds		330,826		(10,429	)	174,829		274,784		26,145		571		(19,113	)	(814,003	)
Surrenders (note 6)		(1,785	)	(11,395	)	(467,556	)	(330,050	)	(4,311	)	–		(2,149,958	)	–
Death benefits (note 4)		–		–		(9,501	)	–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(2,568	)	(1,953	)	(30,585	)	(35,450	)	(382	)	(51	)	(12,459	)	(40,087	)
Adjustments to maintain reserves		(6	)	–		3		(20	)	(26	)	43		(30	)	21
Net equity transactions		326,467		(23,628	)	(324,110	)	(90,736	)	21,426		563		(2,180,036	)	(845,029	)
Net change in contract owners’ equity		314,517		(12,945	)	(228,755	)	7,049		19,923		804		(2,109,225	)	(558,512	)
Contract owners’ equity beginning of period		76,095		89,040		2,459,628		2,452,579		4,830		4,026		2,491,716		3,050,228
Contract owners’ equity end of period	$	390,612		76,095		2,230,873		2,459,628		24,753		4,830		382,491		2,491,716
CHANGES IN UNITS:
Beginning units		5,640		7,630		163,528		170,534		320		280		169,448		240,748
Units purchased		24,360		13		12,156		18,155		1,617		43		98		664
Units redeemed		(318	)	(2,003	)	(33,490	)	(25,161	)	(301	)	(3	)	(144,868	)	(71,964	)
Ending units		29,682		5,640		142,194		163,528		1,636		320		24,678		169,448

(Continued)

32

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBTAMCGr				NBTAPart				OppBal				OppCapAp
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(3,654	)	(2,787	)	6,223		8,462		21,993		19,065		(1,723	)	16,291
Realized gain (loss) on investments		75,020		87,801		11,989		114,564		6,350		1,130		1,583,707		395,750
Change in unrealized gain (loss) on investments		206,351		54,667		(37,342	)	(142,239	)	(70,386	)	34,355		(878,960	)	293,801
Reinvested capital gains		–		–		160,765		194,290		76,456		47,454		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		277,717		139,681		141,635		175,077		34,413		102,004		703,024		705,842
Equity transactions:
Purchase payments received from contract owners (note 6)		4,340		4,505		33,924		35,593		–		–		6,864		603,847
Transfers between funds		162,479		19,431		(289,633	)	105,069		–		67,802		11,614		(823,724	)
Surrenders (note 6)		(8,834	)	(26,843	)	(7,281	)	(18,897	)	(59,713	)	(120,059	)	(5,659,870	)	(249,281	)
Death benefits (note 4)		–		–		–		(6,016	)	–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(21,750	)	(18,581	)	(22,481	)	(24,681	)	(25,272	)	(27,490	)	(81,047	)	(152,145	)
Adjustments to maintain reserves		(15	)	28		(16	)	8		(12	)	11		3		49
Net equity transactions		136,220		(21,460	)	(285,487	)	91,076		(84,997	)	(79,736	)	(5,722,436	)	(621,254	)
Net change in contract owners’ equity		413,937		118,221		(143,852	)	266,153		(50,584	)	22,268		(5,019,412	)	84,588
Contract owners’ equity beginning of period		1,244,986		1,126,765		1,748,820		1,482,667		1,005,307		983,039		9,407,260		9,322,672
Contract owners’ equity end of period	$	1,658,923		1,244,986		1,604,968		1,748,820		954,723		1,005,307		4,387,848		9,407,260
CHANGES IN UNITS:
Beginning units		76,228		78,930		112,472		106,762		69,630		75,488		655,982		698,816
Units purchased		8,562		295		2,058		9,167		–		5,142		1,606		42,159
Units redeemed		(1,684	)	(2,997	)	(19,886	)	(3,457	)	(5,756	)	(11,000	)	(400,938	)	(84,993	)
Ending units		83,106		76,228		94,644		112,472		63,874		69,630		256,650		655,982

(Continued)

33

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		OppBdFd				OppGlSec				OppMSt				OppMidCap
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	50,539		58,724		22,437		17,389		1,190		1,260		(2,665	)	(12,334	)
Realized gain (loss) on investments		567		(8,912	)	376,235		118,044		5,370		7,960		1,903,907		301,259
Change in unrealized gain (loss) on investments		(8,346	)	6,654		(262,463	)	105,647		549		11,720		(1,739,307	)	(70,471	)
Reinvested capital gains		–		–		113,362		119,633		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		42,760		56,466		249,571		360,713		7,109		20,940		161,935		218,454
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–		1,577		(1	)	67		–		4,276		193,563
Transfers between funds		–		91,090		(261,054	)	164,978		7,011		(19,612	)	(388,906	)	(714,878	)
Surrenders (note 6)		(65,062	)	(315,759	)	–		(15,464	)	(7,647	)	(20,875	)	(5,759,770	)	(333,730	)
Death benefits (note 4)		–		–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(27,239	)	(33,146	)	(30,651	)	(20,439	)	(2,588	)	(2,788	)	(21,957	)	(107,182	)
Adjustments to maintain reserves		(3	)	30		14		9		14		(8	)	(2	)	38
Net equity transactions		(92,304	)	(257,785	)	(290,114	)	129,083		(3,143	)	(43,283	)	(6,166,359	)	(962,189	)
Net change in contract owners’ equity		(49,544	)	(201,319	)	(40,543	)	489,796		3,966		(22,343	)	(6,004,424	)	(743,735	)
Contract owners’ equity beginning of period		1,106,386		1,307,705		2,478,831		1,989,035		154,830		177,173		6,721,797		7,465,532
Contract owners’ equity end of period	$	1,056,842		1,106,386		2,438,288		2,478,831		158,796		154,830		717,373		6,721,797
CHANGES IN UNITS:
Beginning units		79,144		98,238		167,220		157,524		12,890		16,924		518,166		593,346
Units purchased		–		6,862		580		12,350		647		–		299		15,152
Units redeemed		(6,542	)	(25,956	)	(12,702	)	(2,654	)	(845	)	(4,034	)	(467,889	)	(90,332	)
Ending units		72,602		79,144		155,098		167,220		12,692		12,890		50,576		518,166

(Continued)

34

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		PVITAllAst				PVITLowDur				PVITRealRet				PVITTotRet
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	226,430		97,617		88,602		194,838		213,568		151,183		454,013		577,429
Realized gain (loss) on investments		9,663		3,387		(157	)	(151,769	)	(112,712	)	(37,127	)	39,862		(292,993	)
Change in unrealized gain (loss) on investments		2,893		64,475		27,852		127,664		346,126		(215,686	)	373,215		222,097
Reinvested capital gains		–		7,412		–		–		11,719		127,594		–		73,171
Net increase (decrease) in contract owners’ equity resulting from operations		238,986		172,891		116,297		170,733		458,701		25,964		867,090		579,704
Equity transactions:
Purchase payments received from contract owners (note 6)		5,937		28,767		918		7,398		38,120		183,876		11,143		32,168
Transfers between funds		103,653		2,718,679		(892,359	)	(4,691,752	)	(100,426	)	1,504,924		(3,420,453	)	864,590
Surrenders (note 6)		–		–		(285,868	)	–		–		–		(57,192	)	(1,075,781	)
Death benefits (note 4)		–		–		(14,005	)	–		–		–		–		(13,750	)
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(81,227	)	(31,943	)	(30,721	)	(104,163	)	(53,715	)	(43,480	)	(88,667	)	(152,053	)
Adjustments to maintain reserves		16		(13	)	604		749		764		1,406		1,208		265
Net equity transactions		28,379		2,715,490		(1,221,431	)	(4,787,768	)	(115,257	)	1,646,726		(3,553,961	)	(344,561	)
Net change in contract owners’ equity		267,365		2,888,381		(1,105,134	)	(4,617,035	)	343,444		1,672,690		(2,686,871	)	235,143
Contract owners’ equity beginning of period		2,953,373		64,992		2,571,636		7,188,671		4,817,847		3,145,157		13,567,449		13,332,306
Contract owners’ equity end of period	$	3,220,738		2,953,373		1,466,502		2,571,636		5,161,291		4,817,847		10,880,578		13,567,449
CHANGES IN UNITS:
Beginning units		238,184		5,472		232,964		675,330		385,224		252,714		1,130,768		1,151,040
Units purchased		8,519		235,320		259		901		2,758		135,989		65,524		232,627
Units redeemed		(6,321	)	(2,608	)	(109,185	)	(443,267	)	(14,064	)	(3,479	)	(360,726	)	(252,899	)
Ending units		240,382		238,184		124,038		232,964		373,918		385,224		835,566		1,130,768

(Continued)

35

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		PioVHiYield				RCFMicroCap				TRowEqInc2				TRowMidCap2
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	9,328		8,586		52,557		(2,383	)	69,782		62,569		(7,409	)	(8,034	)
Realized gain (loss) on investments		375		(382	)	920,602		287,739		298,306		282,016		75,796		333,995
Change in unrealized gain (loss) on investments		358		1,715		(1,023,350	)	393,887		(565,353	)	538,836		32,724		(449,639	)
Reinvested capital gains		171		2,435		381,312		303,792		329,086		163,168		327,521		353,767
Net increase (decrease) in contract owners’ equity resulting from operations		10,232		12,354		331,121		983,035		131,821		1,046,589		428,632		230,089
Equity transactions:
Purchase payments received from contract owners (note 6)		–		1		15,139		662		2,909		237,744		2,749		8,233
Transfers between funds		(8,232	)	163,821		(1,046,191	)	140,552		(488,616	)	(1,945,991	)	304,471		(1,396,773	)
Surrenders (note 6)		–		–		(363,359	)	(22,229	)	(223,762	)	(1,368	)	(453,729	)	(22,314	)
Death benefits (note 4)		–		–		(13,256	)	–		(9,942	)	–		(18,672	)	–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(1,435	)	(1,181	)	(86,789	)	(69,603	)	(69,146	)	(58,862	)	(63,613	)	(65,410	)
Adjustments to maintain reserves		(36	)	94		(54	)	70		(15	)	73		(30	)	(16	)
Net equity transactions		(9,703	)	162,735		(1,494,510	)	49,452		(788,572	)	(1,768,404	)	(228,824	)	(1,476,280	)
Net change in contract owners’ equity		529		175,089		(1,163,389	)	1,032,487		(656,751	)	(721,815	)	199,808		(1,246,191	)
Contract owners’ equity beginning of period		181,558		6,469		5,676,627		4,644,140		6,111,036		6,832,851		2,887,102		4,133,293
Contract owners’ equity end of period	$	182,087		181,558		4,513,238		5,676,627		5,454,285		6,111,036		3,086,910		2,887,102
CHANGES IN UNITS:
Beginning units		11,150		430		247,052		244,076		345,376		456,876		143,370		217,810
Units purchased		–		10,796		42,816		39,965		24,717		29,796		28,906		5,425
Units redeemed		(566	)	(76	)	(100,398	)	(36,989	)	(70,051	)	(141,296	)	(41,182	)	(79,865	)
Ending units		10,584		11,150		189,470		247,052		300,042		345,376		131,094		143,370

(Continued)

36

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		TRowNwAmGr				DrySRGro				VEWrldEMkt				VEWrldHAs
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	(4,758	)	(698	)	(223	)	(191	)	8,289		5,307		(3,936	)	(3,810	)
Realized gain (loss) on investments		36,959		1,049		(101,885	)	14,331		(57,165	)	163,087		(283,639	)	(324,262	)
Change in unrealized gain (loss) on investments		(42,433	)	25,193		(2,934	)	(3,365	)	(373,547	)	228,271		354,674		(340,970	)
Reinvested capital gains		245,921		5,483		–		–		671,525		149,913		50,886		30,034
Net increase (decrease) in contract owners’ equity resulting from operations		235,689		31,027		(105,042	)	10,775		249,102		546,578		117,985		(639,008	)
Equity transactions:
Purchase payments received from contract owners (note 6)		3,019		–		46		149		12,710		13,742		–		7,427
Transfers between funds		1,977,127		111,983		125,547		(23,164	)	1,401,429		209,036		(6,607,344	)	7,378,684
Surrenders (note 6)		(86,561	)	–		(3,676	)	(58,588	)	(54,025	)	(117,730	)	–		–
Death benefits (note 4)		(4,489	)	–		–		–		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(42,925	)	(7,578	)	(8,915	)	(3,236	)	(74,461	)	(34,425	)	(65,717	)	(29,810	)
Adjustments to maintain reserves		30		14		(3	)	–		(8	)	(11	)	(29	)	(2	)
Net equity transactions		1,846,201		104,419		112,999		(84,839	)	1,285,645		70,612		(6,673,090	)	7,356,299
Net change in contract owners’ equity		2,081,890		135,446		7,957		(74,064	)	1,534,747		617,190		(6,555,105	)	6,717,291
Contract owners’ equity beginning of period		427,072		291,626		105,278		179,342		1,954,442		1,337,252		7,219,431		502,140
Contract owners’ equity end of period	$	2,508,962		427,072		113,235		105,278		3,489,189		1,954,442		664,326		7,219,431
CHANGES IN UNITS:
Beginning units		35,424		25,898		9,986		18,530		79,400		75,592		269,944		23,316
Units purchased		158,310		10,190		1,184		15		28,570		11,603		–		247,844
Units redeemed		(10,368	)	(664	)	(1,180	)	(8,559	)	(4,706	)	(7,795	)	(252,812	)	(1,216	)
Ending units		183,366		35,424		9,990		9,986		103,264		79,400		17,132		269,944

(Continued)

37

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		VKUEmMkt				VKUMCpGro				VKUUSRE				WRRealEstS
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	9,193		9,653		(883	)	(803	)	28,638		28,732		(557	)	–
Realized gain (loss) on investments		(826	)	3,063		3,793		2,608		389,573		577,406		(176,525	)	–
Change in unrealized gain (loss) on investments		455		(2,641	)	49,883		5,941		(1,214,331	)	308,320		–		–
Reinvested capital gains		4,135		2,162		16,890		19,993		291,353		226,699		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		12,957		12,237		69,683		27,739		(504,767	)	1,141,157		(177,082	)	–
Equity transactions:
Purchase payments received from contract owners (note 6)		–		521		–		–		26,062		45,205		–		–
Transfers between funds		240,821		53		(22,169	)	(8,763	)	(1,233,316	)	60,737		183,310		–
Surrenders (note 6)		(19,637	)	(46,288	)	–		–		(177,582	)	(331,140	)	–		–
Death benefits (note 4)		–		–		–		–		(10,339	)	(15,487	)	–		–
Net policy repayments (loans) (note 5)		–		–		–		–		–		–		–		–
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(4,433	)	(3,440	)	(9,149	)	(8,332	)	(81,321	)	(87,373	)	(6,227	)	–
Adjustments to maintain reserves		8		7		4		7		(3	)	160		(1	)	–
Net equity transactions		216,759		(49,147	)	(31,314	)	(17,088	)	(1,476,499	)	(327,898	)	177,082		–
Net change in contract owners’ equity		229,716		(36,910	)	38,369		10,651		(1,981,266	)	813,259		–		–
Contract owners’ equity beginning of period		121,578		158,488		330,076		319,425		4,213,234		3,399,975		–		–
Contract owners’ equity end of period	$	351,294		121,578		368,445		330,076		2,231,968		4,213,234		–		–
CHANGES IN UNITS:
Beginning units		6,038		8,700		35,840		37,806		124,206		138,000		–		–
Units purchased		11,563		28		–		–		1,136		2,633		398		–
Units redeemed		(1,183	)	(2,690	)	(3,144	)	(1,966	)	(45,792	)	(16,427	)	(398	)	–
Ending units		16,418		6,038		32,696		35,840		79,550		124,206		–		–

(Continued)

38

NATIONWIDE VL SEPARATE ACCOUNT– C

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		WFVDisc				WFVOpp
Investment activity:		2007		2006		2007		2006
Net investment income (loss)	$	(71	)	(68	)	3,939		(4,227	)
Realized gain (loss) on investments		693		1,130		27,142		332,855
Change in unrealized gain (loss) on investments		4,929		2,554		(113,085	)	(328,650	)
Reinvested capital gains		–		–		163,960		200,064
Net increase (decrease) in contract owners’ equity resulting from operations		5,551		3,616		81,956		200,042
Equity transactions:
Purchase payments received from contract owners (note 6)		–		–		–		205,511
Transfers between funds		–		(437	)	(3,845	)	(675,088	)
Surrenders (note 6)		(1,641	)	(3,190	)	(112,901	)	(1,482,590	)
Death benefits (note 4)		–		–		–		–
Net policy repayments (loans) (note 5)		–		–		–		(181,304	)
Redemptions to pay cost of insurance charges and administration charges (notes 2b and 2c)		(728	)	(753	)	(14,196	)	(30,503	)
Adjustments to maintain reserves		(5	)	15		(20	)	(15	)
Net equity transactions		(2,374	)	(4,365	)	(130,962	)	(2,163,989	)
Net change in contract owners’ equity		3,177		(749	)	(49,006	)	(1,963,947	)
Contract owners’ equity beginning of period		26,685		27,434		1,197,581		3,161,528
Contract owners’ equity end of period	$	29,862		26,685		1,148,575		1,197,581
CHANGES IN UNITS:
Beginning units		1,400		1,646		89,218		263,446
Units purchased		–		–		–		16,944
Units redeemed		(116	)	(246	)	(8,772	)	(191,172	)
Ending units		1,284		1,400		80,446		89,218

See accompanying notes to financial statements.

39

NATIONWIDE VL SEPARATE ACCOUNT– C

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide VL Separate Account-C (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life and Annuity Insurance Company (the Company) on December 3, 1997. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Corporate Flexible Premium Variable Life Insurance Policies through the Account. The primary distribution for the contracts is through wholesalers and brokers.

(b) The Contracts

Only contracts with a front-end sales charge and certain other fees are offered for purchase. See note 2 for a discussion of policy charges and note 3 for asset charges.

Contract owners may invest in the following:

Portfolios of the AIM Variable Insurance Funds (AIM VIF);

AIM VIF – Basic Value Fund – Series I (AIMBValue)

AIM VIF – Capital Development Fund – Series I (AIMCapDev)*

AIM VIF – International Growth Fund – Series I (AIMIntGr)

Portfolios of the AllianceBernstein Variable Products Series Fund, Inc. (AllianceBernstein VPS);

AllianceBernstein VPS – Growth and Income Portfolio – Class A (AlVGrIncA)

AllianceBernstein VPS – International Value Portfolio – Class A (AlVIntlValA)

AllianceBernstein VPS – Small Mid Cap Value Portfolio – Class A (AlVSmMdCpA)*

Portfolios of the American Century Variable Portfolios, Inc. (American Century VP);

American Century VP – Balanced Fund – Class I (ACVPBal)*

American Century VP – Capital Appreciation Fund – Class I (ACVPCapAp)

American Century VP – Income & Growth Fund – Class I (ACVPIncGr)

American Century VP – International Fund – Class I (ACVPInt)

American Century VP – Mid Cap Value Fund – Class I (ACVPMdCpV)*

American Century VP – Ultra^® Fund – Class I (ACVPUltra)

American Century VP – Value Fund – Class I (ACVPVal)

American Century VP – Vista^SM Fund – Class I (ACVPVista1)

Portfolios of the American Funds Insurance Series^® (American Funds IS);

American Funds IS – Asset Allocation Fund – Class 2 (AFAssetAlloc)*

American Funds IS – Bond Fund – Class 2 (AFBnd2)*

BlackRock International Index Portfolio – Class II (BRIntIndex)*

BlackRock Large Cap Core V.I. Fund – Class II (BRLrgCp)*

Calvert Variable Series Inc. – Social Equity Portfolio (CalVSSocEq)

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust – Global Small Cap Portfolio (CSTGlobSmCp)

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

Credit Suisse Trust – Large Cap Value Portfolio (CSTLCapV)

Credit Suisse Trust – Small Cap Core I Portfolio (CSTSmCapGr)

Davis Variable Account Fund, Inc. – Davis Value Portfolio (DavVAFVal)*

Portfolios of the Dreyfus Investment Portfolios (Dreyfus IP);

Dreyfus IP – European Equity Portfolio (DryIPEuroEq)*

Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares (DryIPMidCap)*

Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares (DryIPSmCap)

(Continued)

40

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx)

Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);

Dreyfus VIF – Appreciation Portfolio – Initial Shares (DryVApp)

Dreyfus VIF – Growth and Income Portfolio – Initial Shares (DryVGroInc)*

Dreyfus VIF – International Value Portfolio – Initial Shares (DryVIntVal)

Portfolios of the DWS Variable Series II Funds;

DWS Variable Series II – Dreman High Return Equity VIP – Class B (DWSVHghRtrn)

DWS Variable Series II – Dreman Small Mid Cap Value VIP – Class B (DWSSmMidCp)*

Portfolio of the Federated Insurance Series (Federated IS);

Federated IS – Quality Bond Fund II – Primary Shares (FedQualBd)

Portfolios of the Fidelity^® Variable Insurance Products Fund (Fidelity^® VIP);

Fidelity^® VIP – Equity-Income Portfolio – Initial Class (FidVIPEI)*

Fidelity^® VIP – Equity-Income Portfolio – Service Class (FidVIPEIS)

Fidelity^® VIP – Growth Portfolio – Initial Class (FidVIPGr)

Fidelity^® VIP – Growth Portfolio – Service Class (FidVIPGrS)

Fidelity^® VIP – High Income Portfolio – Initial Class (FidVIPHI)*

Fidelity^® VIP – High Income Portfolio – Service Class (FidVIPHIS)

Fidelity^® VIP – Overseas Portfolio – Initial Class (FidVIPOv)*

Fidelity^® VIP – Overseas Portfolio – Service Class (FidVIPOvS)

Portfolios of the Fidelity^® Variable Insurance Products Fund II (Fidelity^® VIP II);

Fidelity^® VIP II – Asset Manager Portfolio – Initial Class (FidVIPAM)

Fidelity^® VIP II – Contrafund^® Portfolio – Initial Class (FidVIPCon)*

Fidelity^® VIP II – Contrafund^® Portfolio – Service Class (FidVIPConS)

Fidelity^® VIP II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS)

Portfolios of the Fidelity^® Variable Insurance Products Fund III (Fidelity^® VIP III);

Fidelity^® VIP III – Growth Opportunities Portfolio – Initial Class (FidVIPGrOp)*

Fidelity^® VIP III – Growth Opportunities Portfolio – Service Class (FidVIPGrOpS)

Fidelity^® VIP III – Mid Cap Portfolio – Service Class (FidVIPMCapS)

Fidelity^® VIP III – Value Strategies Portfolio – Service Class (FidVIPVaIS)

Portfolios of the Franklin Templeton Variable Insurance Products Trust (Franklin Templeton VIP);

Franklin Templeton VIP – Foreign Securities Fund – Class 2 (FrVIPForSec2)

Franklin Templeton VIP – Global Income Securities Fund – Class 2 (FrVIPGlInc2)*

Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2 (FrVIPSCapV2)

Goldman Sachs Mid Cap Value Fund – Class A (GSMdCpValA)*

Portfolio of the Goldman Sachs Variable Insurance Trust (Goldman Sachs VIT);

Goldman Sachs VIT Mid Cap Value Fund (GSVTMdCpV)

Portfolios of the Janus Aspen Series;

Janus Aspen Series – Balanced Portfolio – Service Shares (JAspBal)

Janus Aspen Series – Forty Portfolio – Service Shares (JAspForty)

Janus Aspen Series – Global Technology Portfolio – Service Shares (JAspGlTechS)

Janus Aspen Series – International Growth Portfolio – Service Shares (JAspIntGroS)

Portfolios of the JPMorgan Insurance Trust;

JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1 (JPMMidCapGr)

JPMorgan Insurance Trust – Diversified Mid Cap Value Portfolio 1 (JPMMidCapV)*

Portfolio of the Legg Mason Partners Variable Equity Trust (Legg Mason Partners VET);

Legg Mason Partners VET – Small Cap Growth Portfolio – Class I (LMVESmCap)*

Portfolio of the Lehman Brothers Advisers Management Trust (Lehman Brothers AMT);

Lehman Brothers AMT – Short Duration Bond Portfolio – I Class

(formerly Neuberger Berman AMT – Limited Maturity Bond Portfolio – Class I) (LBTShrtDBd)*

(Continued)

41

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolio of the Lincoln Variable Insurance Products Trust (Lincoln VIP);

Lincoln VIP – Baron Growth Opportunities Funds – Service Class

(formerly Baron Capital Funds Trust – Baron Capital Asset Fund – Insurance Shares) (LincGroOp)

Lord Abbett Series Fund, Inc. – Mid Cap Value Portfolio – Class VC (LrdMidCapV)

Portfolios of the MFS Variable Insurance Trust (MFS VIT);

MFS VIT – Research International Series – Service Class (MFSRsrchIntl)*

MFS VIT – Value Series – Service Class (MFSValueS)*

Nationwide GVIT Strategic Value Fund – Class I (NWStratV)*

Portfolios of the Nationwide Variable Insurance Trust (Nationwide VIT) (formerly Gartmore GVIT);

Nationwide VIT – Federated High Income Bond Fund – Class I (NVITFHiInc)

Nationwide VIT – Gartmore Emerging Markets Fund – Class I (NVITEmMrkts)

Nationwide VIT – Gartmore Global Utilities Fund – Class I (NVITGlUtl)

Nationwide VIT – Gartmore International Growth Fund – Class I (NVITIntGro)

Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I (NVITWLead)

Nationwide VIT – Global Financial Services Fund – Class I (NVITGlFin)

Nationwide VIT – Global Health Sciences Fund – Class I (NVITGlHlth)

Nationwide VIT – Global Technology and Communications Fund – Class I (NVITGlTech)

Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd)

Nationwide VIT – Growth Fund – Class I (NVITGrowth)

Nationwide VIT – International Index Fund – Class II (NVITIntIdx2)

Nationwide VIT – Investor Destinations Aggressive Fund – Class II (NVITIDAgg2)*

Nationwide VIT – Investor Destinations Conservative Fund – Class II (NVITIDCon2)

Nationwide VIT – Investor Destinations Moderate Fund – Class II (NVITIDMod2)

Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II (NVITIDModAg2)

Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II (NVITIDModCon2)

Nationwide VIT – J.P. Morgan Balanced Fund – Class I (NVITJPBal)

Nationwide VIT – Mid Cap Growth Fund – Class I (NVITMdCpGr)

Nationwide VIT – Mid Cap Index Fund – Class I (NVITMidCap)

Nationwide VIT – Money Market Fund – Class I (NVITMyMkt)

Nationwide VIT – Money Market Fund – Class V (NVITMyMkt5)

Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I

(formerly Gartmore GVIT – Small Cap Growth Fund – Class I) (NVITSmCapGr)

Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I

(formerly Gartmore GVIT – Small Cap Value Fund – Class I) (NVITSmCapVal)

Nationwide VIT – Multi-Manager Small Company Fund – Class I

(formerly Gartmore GVIT – Small Company Fund – Class I) (NVITSmComp)

Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)

Nationwide VIT – Nationwide Leaders Fund – Class I (NVITNWLead)*

Nationwide VIT – U.S. Growth Leaders Fund – Class I (NVITUSGro)

Nationwide VIT – Van Kampen Comstock Value Fund – Class I (NVITVKVal)

Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I (NVITMltSec)

Portfolios of the Neuberger Berman Advisers Management Trust (Neuberger Berman AMT);

Neuberger Berman AMT – Fasciano Portfolio – S Class Shares (NBTAFasc)

Neuberger Berman AMT – Growth Portfolio – Class I (NBTAGro)*

Neuberger Berman AMT – Guardian Portfolio – I Class Shares (NBTAGuard)

Neuberger Berman AMT – Mid Cap Growth Portfolio – I Class Shares (NBTAMCGr)

Neuberger Berman AMT – Partners Portfolio – Class I (NBTAPart)

Neuberger Berman AMT – Regency Portfolio – Class I (NBTARegI)*

(Continued)

42

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the Oppenheimer Variable Account Funds (Oppenheimer VAF);

Oppenheimer VAF – Balanced Fund – Non-Service Shares (OppBal)

Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares (OppCapAp)

Oppenheimer VAF – Core Bond Fund – Non-Service Shares (OppBdFd)

Oppenheimer VAF – Global Securities Fund – Non-Service Shares (OppGlSec)

Oppenheimer VAF – Main Street^® – Non-Service Shares (OppMSt)

Oppenheimer VAF – Mid Cap Fund – Non-Service Shares (OppMidCap)

PIMCO Total Return Fund – Administrative Shares (PimTotRet)*

Portfolios of the PIMCO Variable Insurance Trust (PIMCO VIT);

PIMCO VIT – All Asset Portfolio – Administrative Shares (PVITAllAst)

PIMCO VIT – Low Duration Portfolio – Administrative Shares (PVITLowDur)

PIMCO VIT – Real Return Portfolio – Administrative Shares (PVITRealRet)

PIMCO VIT – Total Return Portfolio – Administrative Shares (PVITTotRet)

Portfolios of the Pioneer Variable Contracts Trust (Pioneer VCT);

Pioneer VCT – Pioneer Emerging Markets Portfolio – Class I Shares (PioVEmMrkt)*

Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares (PioVHiYield)

Portfolio of the Putnam Variable Trust (Putnam VT);

Putnam VT – Small Cap Value Fund – IB Shares (PVTSmCapV)*

Royce Capital Fund – Micro Cap Portfolio (RCFMicroCap)

Strong Variable Insurance Funds, Inc. – Strong International Stock Fund II (StVIFIntStk2)*

Portfolios of T. Rowe Price;

T. Rowe Price Equity Income Portfolio – II (TRowEqInc2)

T. Rowe Price Mid Cap Growth Portfolio – II (TRowMidCap2)

T. Rowe Price New America Growth Portfolio (TRowNwAmGr)

T. Rowe Price Personal Strategy Balanced Portfolio (TRowPerStrBal)*

The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares (DrySRGro)

Turner GVIT Growth Focus Fund – Class I (TurnGrowth)*

Portfolios of the Van Eck Worldwide Insurance Trust;

Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class (VEWrldBd)*

Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class (VEWrldEMkt)

Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class (VEWrldHAs)

Portfolios of the Van Kampen – The Universal Institutional Funds, Inc. (Van Kampen UIF);

Van Kampen UIF – Emerging Markets Debt Portfolio – Class I (VKUEmMkt)

Van Kampen UIF – Equity Growth Portfolio – Class I (VKUEqGro)*

Van Kampen UIF – Global Real Estate Portfolio – Class II (VKUGlobRE)*

Van Kampen UIF – Mid Cap Growth Portfolio – class I (VKUMCpGro)

Van Kampen UIF – U.S. Real Estate Portfolio – Class I (VKUUSRE)

Portfolios of the W&R Target Funds, Inc.;

W&R Target Funds, Inc. – Asset Strategy Portfolio (WRAsStrat)*

W&R Target Funds, Inc. – Growth Portfolio (WRGrowth)*

W&R Target Funds, Inc. – Real Estate Securities Portfolio (WRRealEstS)*

W&R Target Funds, Inc. – Science and Technology Portfolio (WRSciTech)*

Portfolios of the Wells Fargo Advantage Variable Trust Funds^SM (Wells Fargo AVT);

Wells Fargo AVT – Discovery Fund^SM (WFVDisc)

Wells Fargo AVT – Opportunity Fund^SM (WFVOpp)

Wells Fargo AVT – Small Cap Growth Fund (WFVSmCpGr)*

At December 31, 2007, contract owners were invested in all of the above funds except for those indicated with an asterisk (*). The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see notes 2 and 3).

(Continued)

43

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

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.

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.

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

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued on the closing net asset value per share at December 31, 2007 of such funds, which value their investment securities at fair value. Fund purchases and sales are accounted for on the trade date (date the order to buy or sell is executed). The cost of investments sold is determined on a First in – First out basis, and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company, which is taxed as a life insurance company under the provisions of the Internal Revenue Code.

The Company does not provide for income taxes within the Account. Taxes are the responsibility of the contract owner upon termination or withdrawal.

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

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

(f) New Accounting Pronouncement

In September 2006, the FASB issued SFAS 157, Fair Value Measurements (SFAS 157). SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities and requires new disclosures about fair value measurements. SFAS 157 also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. For assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables financial statement users to assess the inputs used to develop those measurements. SFAS 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early adoption permitted. The Company will adopt SFAS 157 effective January 1, 2008. SFAS 157 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

(Continued)

44

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

(2) Policy Charges

(a) Deductions from Premium

The Company deducts a charge not to exceed 9.0% (reduced to 5.5% starting in the seventh policy year) on all premiums received to cover the payment of premium taxes and some sale expenses. The Company may reduce this charge where the size or nature of the group results in savings in sales, underwriting, or administrative costs. Variations due to differences in costs are determined in a manner not unfairly discriminatory to policy owners.

For the periods ended December 31, 2007 and 2006, total front-end sales charge deductions were $171,565 and $498,954, respectively.

(b) Cost of Insurance

A cost of insurance charge is assessed monthly against each contract by liquidating units. The amount of the charge varies widely and is based upon age, sex, rate class and net amount at risk (death benefit less total contract value).

(c) Administrative Charges

The Company deducts a monthly administrative expense charge to recover policy maintenance, accounting, record keeping and other administrative expenses. This expense is assessed against each contract by liquidating units. Currently, this charge is $5.00 per month in all policy years (not to exceed $10.00 per month).

(3) Asset Charges

For corporate flexible premium contracts, the Company deducts a charge from the contract to cover mortality and expense risk charges related to operations. This charge is guaranteed not to exceed an annualized rate of 0.75% of the policy’s cash value. Currently, this rate is 0.40% during the first through fourth policy years, 0.25% during the fifth through twentieth policy years, and 0.10% thereafter. A reduced fee tier rate for corporate flexible premium contracts may apply as either 0.10%, 0.20% or 0.25% for all policy years. These charges are assessed through the daily unit value calculation.

The Company may reduce or eliminate certain charges, where the size or nature of the group results in savings in sales, underwriting, administrative or other costs, to the Company. These charges may be reduced in certain group, sponsored arrangements or special exchange programs made available by the Company.

(4) Death Benefits

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

(5) Policy Loans (Net of Repayments)

Contract provisions allow contract owners to borrow 90% of a policy’s non-loaned sub-account cash value. Interest is charged on the outstanding loan and is due and payable in advance on the policy anniversary, or when the loan is repaid or a new loan is effective. The interest rate is guaranteed not to exceed 3.75%.

At the time the loan is granted, the amount of the loan is transferred from the Account to the Company’s general account as collateral for the outstanding loan. Collateral amounts in the general account are credited with the stated rate of interest in effect at the time the loan is made. Interest credited is paid by the Company’s general account to the Account. Loan repayments result in a transfer of collateral including interest credited back to the Account.

(Continued)

45

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

(6) Related Party Transactions

The Company performs various services on behalf of the Mutual Fund Companies in which the Account invests and may receive fees for the services performed. These services include, among other things, shareholder communications, preparation, postage, fund transfer agency and various other record keeping and customer service functions. These fees are paid to an affiliate of the Company.

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. These transfers are the result of the contract owner executing fund exchanges. Fund exchanges from the Account to the fixed account are included in surrenders, and fund exchanges from the fixed account to the Account are included in purchase payments received from contact owners, as applicable, on the accompanying Statements of Change in Contract Owners’ Equity.

Policy loan transactions (note 5), executed at the direction of the contract owner, also result in transfers between the Account and the fixed account of the Company. The fixed account assets are not reflected in the accompanying financial statements.

For the periods ended December 31, 2007 and 2006, total transfers into the Account from the fixed account were $0 and $12,806, respectively, and total transfers from the Account to the fixed account were $0 and $567, respectively.

(Continued)

46

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

(7) Financial Highlights

The following is a summary of units, unit fair values and contract owners’ equity outstanding for variable universal life contracts as of the end of the periods indicated, and the contract expense rate, investment income ratio and total return for each period in the five year period ended December 31, 2007.

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
The BEST of AMERICA® America’s FUTURE Life SeriesSM
Reduced Fee Tier – (0.10%)
American Century VP – Income & Growth Fund – Class I
2006	0.10%	400,054	$	13.528072	$	5,411,959	1.75%	16.97	%
2005	0.10%	405,768		11.565387		4,692,864	1.95%	4.53	%
2004	0.10%	411,278		11.064552		4,550,607	1.42%	12.88	%
2003	0.10%	416,830		9.802103		4,085,811	1.33%	29.22	%
American Century VP – International Fund – Class I
2006	0.10%	95,056		15.094317		1,434,805	2.00%	24.90	%
2005	0.10%	96,452		12.085047		1,165,627	1.15%	13.14	%
2004	0.10%	97,792		10.681395		1,044,555	0.49%	14.81	%
2003	0.10%	99,202		9.303615		922,937	0.75%	24.39	%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.10%	46,372		12.675284		587,778	1.68%	5.15	%
2006	0.10%	630,234		12.054530		7,597,175	1.69%	15.38	%
2005	0.10%	640,046		10.447448		6,686,847	1.61%	4.59	%
2004	0.10%	649,438		9.989249		6,487,398	1.79%	10.53	%
2003	0.10%	659,883		9.037627		5,963,776	1.53%	28.23	%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2006	0.10%	18,982		16.213431		307,763	3.18%	19.96	%
2005	0.10%	19,260		13.515730		260,313	1.31%	5.65	%
2004	0.10%	19,522		12.792683		249,739	1.66%	11.27	%
2003	0.10%	19,757		11.496883		227,144	1.24%	30.09	%
Fidelity® VIP – Growth Portfolio – Service Class
2006	0.10%	975,936		9.843867		9,606,984	0.28%	6.63	%
2005	0.10%	990,278		9.232178		9,142,423	0.38%	5.57	%
2004	0.10%	1,004,222		8.745297		8,782,220	0.16%	3.16	%
2003	0.10%	1,019,800		8.477377		8,645,229	0.20%	32.65	%
Nationwide VIT – Government Bond Fund – Class I
2006	0.10%	207,598		14.788907		3,070,148	4.02%	3.24	%
2005	0.10%	210,586		14.325057		3,016,656	3.64%	3.16	%
2004	0.10%	213,496		13.886189		2,964,646	5.44%	3.16	%
2003	0.10%	216,645		13.460973		2,916,252	2.97%	1.90	%
Nationwide VIT – Money Market Fund – Class I
2004	0.10%	1,161,966		11.623489		13,506,099	0.76%	0.71	%
2003	0.10%	1,177,112		11.541477		13,585,611	0.62%	0.52	%
Nationwide VIT – Money Market Fund – Class V
2006	0.10%	1,484,064		10.900267		16,176,694	4.50%	4.51	%
2005	0.10%	1,505,820		10.429961		15,705,644	2.80%	2.65	%
2004	0.10%	197,354		10.160839		2,005,282	0.88%	0.79	%
2003	0.10%	199,733		10.081195		2,013,547	0.71%	0.61	%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2006	0.10%	5,968		15.247568		90,997	4.16%	4.73	%
2005	0.10%	6,052		14.558458		88,108	3.99%	2.08	%
2004	0.10%	6,132		14.262059		87,455	5.20%	6.43	%
2003	0.10%	6,204		13.400762		83,138	5.42%	12.00	%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2006	0.10%	82,428		14.953594		1,232,595	0.60%	13.26	%
2005	0.10%	83,636		13.202464		1,104,201	0.18%	8.28	%
2004	0.10%	84,814		12.192566		1,034,100	0.13%	15.70	%
2003	0.10%	86,143		10.538218		907,794	0.83%	31.63	%

(Continued)

47

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2006	0.10%	260,376	$	13.316078	$	3,467,187	0.37%	7.84%
2005 .	0.10%	264,232		12.347907		3,262,712	1.04%	4.99%
2004	0.10%	267,980		11.760631		3,151,614	0.29%	6.83%
2003	0.10%	272,222		11.008811		2,996,841	0.40%	30.81%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2006	0.10%	282,340		12.637642		3,568,112	0.00%	2.85%
2005	0.10%	286,486		12.287042		3,520,066	0.00%	12.21%
2004	0.10%	290,464		10.949589		3,180,461	0.00%	19.66%
2003	0.10%	294,600		9.150815		2,695,830	0.00%	25.46%
The BEST of AMERICA® America’s FUTURE Life SeriesSM
Reduced Fee Tier – (0.20%)
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2006	0.20%	38,296		18.052215		691,328	0.80%	17.05%
2004	0.20%	47,746		14.735953		703,583	0.93%	11.24%
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.20%	708,552		11.964050		8,477,152	0.23%	5.63%
American Century VP – International Fund – Class I
2005	0.20%	268,142		10.026374		2,688,492	1.15%	13.03%
2004	0.20%	238,398		8.870661		2,114,748	0.49%	14.69%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.20%	439,296		15.532546		6,823,385	0.27%	-0.85%
2006	0.20%	443,170		15.666332		6,942,848	0.36%	14.18%
2005	0.20%	306,272		13.720362		4,202,163	0.00%	7.02%
2004	0.20%	165,324		12.820499		2,119,536	0.79%	21.64%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.20%	1,615,390		12.912279		20,858,366	1.68%	5.04%
2006	0.20%	1,589,080		12.292280		19,533,416	1.69%	15.27%
2005	0.20%	1,109,194		10.664127		11,828,586	1.61%	4.48%
2004	0.20%	871,294		10.206598		8,892,948	1.79%	10.42%
2003	0.20%	485,834		9.243500		4,490,807	1.53%	28.11%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2004	0.20%	35,860		9.936435		356,321	1.46%	4.84%
Dreyfus VIF – International Value Portfolio – Initial Shares
2006	0.20%	182,762		21.009394		3,839,719	1.36%	22.35%
2005	0.20%	72,182		17.171154		1,239,448	0.00%	11.67%
2004	0.20%	3,798		15.377151		58,402	0.97%	19.78%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2006	0.20%	434,404		14.646026		6,362,292	3.18%	19.84%
2005	0.20%	268,080		12.221305		3,276,287	1.31%	5.55%
2004	0.20%	116,278		11.579043		1,346,388	1.66%	11.16%
Fidelity® VIP – Growth Portfolio – Service Class
2005	0.20%	3,430		9.100356		31,214	0.38%	5.46%
2004	0.20%	3,528		8.629025		30,443	0.16%	3.06%
Fidelity® VIP – Overseas Portfolio – Service Class
2006	0.20%	446,452		15.150740		6,764,078	0.57%	17.71%
2005	0.20%	224,828		12.871051		2,893,773	0.43%	18.73%
2004	0.20%	19,072		10.840230		206,745	1.10%	13.26%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2006	0.20%	130,694		16.578552		2,166,717	1.19%	11.37%
2005	0.20%	137,900		14.886411		2,052,836	0.11%	16.61%
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2004	0.20%	101,744		14.797053		1,505,511	0.77%	18.29%
Nationwide VIT – Government Bond Fund – Class I
2005	0.20%	50,238		12.515914		628,774	3.64%	3.06%
2004	0.20%	123,652		12.144574		1,501,701	5.44%	3.06%
Nationwide VIT – International Index Fund – Class II
2007	0.20%	839,308		10.120857		8,494,516	1.21%	1.21%	05/01/07

(Continued)

48

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2005	0.20%	767,630	$	11.245204	$	8,632,156	2.11%	2.34%
2004	0.20%	407,572		10.988290		4,478,519	2.29%	8.27%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.20%	383,938		17.745558		6,813,194	1.57%	7.34%
2006	0.20%	18,880		16.531559		312,116	0.92%	9.67%
2005	0.20%	133,356		15.073853		2,010,189	1.05%	11.87%
2004	0.20%	114,906		13.473852		1,548,226	0.84%	15.50%
Nationwide VIT – Money Market Fund – Class I
2003	0.20%	1,237,228		10.399136		12,866,102	0.62%	0.42%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2005	0.20%	116,736		15.261935		1,781,617	0.00%	12.09%
2004	0.20%	120,128		13.615456		1,635,597	0.00%	18.78%
Nationwide VIT – Nationwide Fund – Class I
2005	0.20%	82,642		11.600055		958,652	0.91%	7.23%
2004	0.20%	85,042		10.818197		920,001	1.21%	9.53%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2005	0.20%	66,492		11.830482		786,632	0.18%	8.18%
2004	0.20%	18,614		10.936423		203,571	0.13%	15.58%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2004	0.20%	284,034		9.289705		2,638,592	0.29%	6.72%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2005	0.20%	14,922		9.718714		145,023	0.00%	12.10%
2004	0.20%	15,354		8.669461		133,111	0.00%	19.54%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.20%	476,190		13.037033		6,208,105	4.68%	8.52%
2006	0.20%	511,288		12.013005		6,142,105	4.46%	3.64%
2005	0.20%	662,908		11.591132		7,683,854	3.32%	2.22%
2004	0.20%	1,073,616		11.339186		12,173,932	1.88%	4.67%
Royce Capital Fund – Micro-Cap Portfolio
2006	0.20%	56,170		23.017122		1,292,872	0.19%	20.83%
2005	0.20%	89,174		19.049333		1,698,705	0.54%	11.39%
2004	0.20%	98,604		17.101898		1,686,316	0.00%	13.62%
T. Rowe Price Equity Income Portfolio – II
2006	0.20%	52,696		17.726578		934,120	1.34%	18.41%
2005	0.20%	190,688		14.970390		2,854,674	1.39%	3.49%
2004	0.20%	104,780		14.465784		1,515,725	1.43%	14.39%
T. Rowe Price Mid-Cap Growth Portfolio – II
2004	0.20%	224,428		16.643864		3,735,349	0.00%	17.82%
Wells Fargo AVT – Opportunity FundSM
2005	0.20%	71,714		12.025433		862,392	0.00%	7.67%
2004	0.20%	332,596		11.168856		3,714,717	0.00%	17.98%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier – (0.25%)
AIM VIF – Basic Value Fund – Series I
2007	0.25%	128		17.537474		2,245	0.15%	1.29%
2006	0.25%	1,056		17.314284		18,284	0.50%	12.92%
2005	0.25%	536		15.332927		8,218	0.11%	5.47%
2004	0.25%	312		14.537319		4,536	0.00%	10.79%
2003	0.25%	237		13.121262		3,110	0.07%	33.29%
AIM VIF – International Growth Fund – Series I
2007	0.25%	364		20.523294		7,470	0.94%	14.43%
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.25%	3,674		18.887703		69,393	1.09%	4.85%
2006	0.25%	15,212		18.013258		274,018	0.80%	16.99%
2005	0.25%	7,626		15.396687		117,415	1.19%	4.61%
2004	0.25%	18,980		14.718823		279,363	0.93%	11.18%
2003	0.25%	268,363		13.238290		3,552,667	0.00%	32.17%

(Continued)

49

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.25%	283,142	$	11.954073	$	3,384,700	0.23%	5.57%
2006	0.25%	39,832		11.322832		451,011	0.00%	13.23% 05/01/06
American Century VP – Balanced Fund – Class I
2005	0.25%	5,834		12.055445		70,331	2.08%	4.67%
2004	0.25%	37,018		11.517200		426,344	1.14%	9.50%
2003	0.25%	33,960		10.517618		357,178	2.44%	19.16%
American Century VP – Capital Appreciation Fund – Class I
2007	0.25%	92,114		24.256151		2,234,331	0.00%	45.44%
2006	0.25%	100,414		16.678077		1,674,712	0.00%	16.93%
2005	0.25%	114,984		14.263618		1,640,088	0.00%	21.76%
2004	0.25%	103,872		11.714626		1,216,822	0.00%	7.32%
2003	0.25%	48,415		10.916046		528,500	0.00%	20.17%
American Century VP – Income & Growth Fund – Class I
2007	0.25%	125,202		14.869331		1,861,670	1.36%	-0.32%
2006	0.25%	367,398		14.916778		5,480,394	1.75%	16.80%
2005	0.25%	422,988		12.771709		5,402,280	1.95%	4.37%
2004	0.25%	420,484		12.236925		5,145,431	1.42%	12.71%
2003	0.25%	441,398		10.856971		4,792,245	1.33%	29.03%
American Century VP – International Fund – Class I
2007	0.25%	230,188		17.597111		4,050,644	0.59%	17.76%
2006	0.25%	235,638		14.943177		3,521,180	2.00%	24.71%
2005	0.25%	251,530		11.981952		3,013,820	1.15%	12.97%
2004	0.25%	364,388		10.606131		3,864,747	0.49%	14.64%
2003	0.25%	287,903		9.251932		2,663,659	0.75%	24.20%
American Century VP – Ultra® Fund – Class I
2007	0.25%	25,856		13.101110		338,742	0.00%	20.71%
2006	0.25%	44,246		10.853176		480,210	0.00%	-3.52%
2005	0.25%	76,974		11.248731		865,860	0.00%	1.91%
2004	0.25%	1,144		11.037791		12,627	0.00%	10.40%
2003	0.25%	921		9.998079		9,208	0.00%	24.59%
American Century VP – Value Fund – Class I
2007	0.25%	103,354		18.468246		1,908,767	1.56%	-5.38%
2006	0.25%	107,824		19.517566		2,104,462	2.56%	18.36%
2005	0.25%	273,906		16.490347		4,516,805	0.91%	4.77%
2004	0.25%	310,922		15.739280		4,893,688	1.05%	14.05%
2003	0.25%	326,659		13.800619		4,508,096	1.15%	28.64%
American Century VP – VistaSM Fund – Class I
2007	0.25%	64		17.350253		1,110	0.00%	39.42%
Calvert Variable Series Inc. – Social Equity Portfolio
2007	0.25%	516		16.829986		8,684	0.00%	9.71%
2006	0.25%	454		15.339931		6,964	0.00%	9.78%
2005	0.25%	288		13.973029		4,024	0.06%	4.28%
Credit Suisse Trust – Global Small Cap Portfolio
2007	0.25%	26,758		12.155952		325,269	0.00%	-4.20%
2006	0.25%	28,502		12.688555		361,649	0.00%	12.92%
2005	0.25%	22,414		11.236495		251,855	0.00%	15.85%
2004	0.25%	23,348		9.698794		226,447	0.00%	17.69%
2003	0.25%	36,710		8.240624		302,513	0.00%	47.29%
Credit Suisse Trust – International Focus Portfolio
2007	0.25%	4,246		15.289838		64,921	1.13%	16.30%
2006	0.25%	4,214		13.146533		55,399	1.15%	18.36%
2005	0.25%	3,828		11.107445		42,519	0.98%	17.15%
2004	0.25%	3,020		9.481681		28,635	0.65%	14.46%
2003	0.25%	10,498		8.284148		86,967	0.26%	32.76%
Credit Suisse Trust – Large Cap Value Portfolio
2007	0.25%	4,712		16.002005		75,401	1.21%	1.53%
2006	0.25%	10,300		15.760746		162,336	0.91%	19.05%
2005	0.25%	12,276		13.238469		162,515	0.83%	7.87%
2004	0.25%	11,184		12.272183		137,252	0.58%	11.07%
2003	0.25%	14,955		11.049535		165,246	0.68%	24.85%

(Continued)

50

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Credit Suisse Trust – Small Cap Core I Portfolio
2007	0.25%	49,268	$	9.801214	$	482,886	0.00%	- 1.08%
2006	0.25%	53,708		9.908462		532,164	0.00%	4.51%
2005	0.25%	61,484		9.481117		582,937	0.00%	-2.92%
2004	0.25%	119,238		9.766503		1,164,538	0.00%	10.59%
2003	0.25%	194,729		8.831040		1,719,660	0.00%	48.18%
Dreyfus IP – Mid Cap Stock Portfolio – Initial Shares
2006	0.25%	56		17.511529		981	0.34%	7.48%
2005	0.25%	52		16.292721		847	0.03%	8.90%
2003	0.25%	34,437		13.102225		451,201	2.38%	31.39%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.25%	23,004		15.488598		356,300	0.27%	-0.90%
2006	0.25%	19,726		15.629868		308,315	0.36%	14.13%
2005	0.25%	26,344		13.695264		360,788	0.00%	6.97%
2004	0.25%	3,590		12.803427		45,964	0.79%	21.58%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.25%	1,021,830		14.556103		14,873,863	1.68%	4.99%
2006	0.25%	1,353,284		13.864135		18,762,112	1.69%	15.21%
2005	0.25%	1,888,500		12.033778		22,725,790	1.61%	4.43%
2004	0.25%	2,256,426		11.523227		26,001,309	1.79%	10.36%
2003	0.25%	2,068,013		10.441111		21,592,353	1.53%	28.04%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.25%	83,176		14.962371		1,244,510	1.10%	6.86%
2006	0.25%	76,748		14.001376		1,074,578	1.54%	16.19%
2005	0.25%	80,674		12.050745		972,182	0.02%	4.12%
2004	0.25%	117,040		11.574140		1,354,637	1.46%	4.78%
2003	0.25%	224,737		11.045756		2,482,390	0.76%	20.87%
Dreyfus VIF – Growth and Income Portfolio – Initial Shares
2005	0.25%	19,500		9.969339		194,402	1.16%	3.09%
2004	0.25%	58,084		9.670082		561,677	1.28%	7.20%
2003	0.25%	80,448		9.020649		725,693	0.90%	26.25%
Dreyfus VIF – International Value Portfolio – Initial Shares
2007	0.25%	100,470		21.780049		2,188,242	2.01%	3.89%
2006	0.25%	111,584		20.964071		2,339,255	1.36%	22.29%
2005	0.25%	77,518		17.142660		1,328,865	0.00%	11.61%
2004	0.25%	27,262		15.359280		418,725	0.97%	19.72%
2003	0.25%	20,411		12.829044		261,854	1.91%	36.02%
DWS Variable Series II – Dreman High Return Equity VIP – Class B
2007	0.25%	22,588		10.983369		248,092	1.03%	-2.43%
2006	0.25%	22,418		11.257266		252,365	0.00%	12.57% 05/01/06
Federated IS – Quality Bond Fund II – Primary Shares
2007	0.25%	36,422		15.183610		553,017	4.69%	5.12%
2006	0.25%	37,252		14.444216		538,076	3.94%	3.89%
2005	0.25%	40,742		13.902748		566,426	4.49%	1.05%
2004	0.25%	123,254		13.758938		1,695,844	4.32%	3.36%
2003	0.25%	219,801		13.311504		2,925,882	3.73%	4.38%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2003	0.25%	24,845		10.332655		256,715	1.09%	30.00%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.25%	172,396		16.420855		2,830,890	0.77%	1.16%
2006	0.25%	115,616		16.232055		1,876,685	3.18%	19.78%
2005	0.25%	212,674		13.551510		2,882,054	1.31%	5.49%
2004	0.25%	216,278		12.845734		2,778,250	1.66%	11.10%
2003	0.25%	225,660		11.561882		2,609,054	1.24%	29.89%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	0.25%	6,204		11.628670		72,144	0.81%	26.65%
2006	0.25%	6,314		9.182046		57,975	0.55%	6.58%
2005	0.25%	28,712		8.614843		247,349	0.44%	5.54%
2004	0.25%	69,542		8.163013		567,672	0.26%	3.12%
2003	0.25%	583,926		7.916010		4,622,364	0.27%	32.52%

(Continued)

51

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.25%	1,137,072	$	16.222520	$	18,446,173	0.33%	26.55%
2006	0.25%	667,544		12.818891		8,557,174	0.28%	6.47%
2005	0.25%	693,710		12.040330		8,352,497	0.38%	5.41%
2004	0.25%	747,488		11.422418		8,538,120	0.16%	3.01%
2003	0.25%	744,778		11.089106		8,258,922	0.20%	32.45%
Fidelity® VIP – High Income Portfolio – Initial Class
2004	0.25%	10,864		12.623850		137,146	9.22%	9.32%
2003	0.25%	218,094		11.547696		2,518,483	5.94%	26.95%
Fidelity® VIP – High Income Portfolio – Service Class
2007	0.25%	145,638		10.942182		1,593,598	7.62%	2.40%
2006	0.25%	161,676		10.685864		1,727,648	7.36%	10.90%
2005	0.25%	197,328		9.635546		1,901,363	14.80%	2.27%
2004	0.25%	208,098		9.421875		1,960,673	9.51%	9.19%
2003	0.25%	225,045		8.628552		1,941,812	8.69%	26.65%
Fidelity® VIP – Overseas Portfolio – Initial Class
2004	0.25%	55,434		10.182861		564,477	1.12%	13.35%
2003	0.25%	180,429		8.983417		1,620,869	0.53%	43.01%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.25%	268,890		17.966865		4,831,110	3.95%	16.91%
2006	0.25%	262,300		15.367797		4,030,973	0.57%	17.65%
2005	0.25%	274,862		13.061950		3,590,234	0.43%	18.67%
2004	0.25%	267,844		11.006499		2,948,025	1.10%	13.20%
2003	0.25%	231,142		9.722686		2,247,321	0.85%	42.85%
Fidelity® VIP II – Asset Manager Portfolio – Initial Class
2007	0.25%	352,600		14.040973		4,950,847	6.14%	15.21%
2006	0.25%	335,238		12.186874		4,085,503	4.38%	7.05%
2005	0.25%	662,530		11.384305		7,542,444	2.59%	3.79%
2004	0.25%	856,436		10.969116		9,394,346	1.56%	5.21%
2003	0.25%	331,284		10.426372		3,454,090	3.44%	17.68%
Fidelity® VIP II – Contrafund® Portfolio – Initial Class
2005	0.25%	28,138		14.079448		396,168	0.29%	16.65%
2004	0.25%	30,156		12.070285		363,992	0.32%	15.19%
2003	0.25%	51,152		10.478748		536,009	0.34%	28.14%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.25%	338,604		23.139773		7,835,220	0.74%	17.21%
2006	0.25%	472,174		19.741674		9,321,505	1.19%	11.31%
2005	0.25%	654,312		17.735527		11,604,568	0.11%	16.56%
2004	0.25%	257,976		15.216289		3,925,437	0.36%	15.05%
2003	0.25%	549,404		13.225654		7,266,227	0.35%	28.03%
Fidelity® VIP II – Investment Grade Bond Portfolio – Service Class
2007	0.25%	4,884		10.952518		53,492	4.13%	3.95%
2006	0.25%	5,542		10.536365		58,393	0.00%	4.04%
Fidelity® VIP III – Growth Opportunities Portfolio – Initial Class
2003	0.25%	94,088		8.944397		841,560	0.88%	29.55%
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2007	0.25%	117,700		12.425418		1,462,472	0.00%	22.73%
2006	0.25%	138,014		10.123840		1,397,232	0.60%	5.04%
2005	0.25%	160,218		9.638132		1,544,202	0.80%	8.59%
2004	0.25%	178,546		8.875680		1,584,717	0.37%	6.79%
2003	0.25%	109,290		8.311178		908,329	0.68%	29.34%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2007	0.25%	117,550		15.669099		1,841,903	0.70%	15.20%
2006	0.25%	90,122		13.602006		1,225,840	0.00%	12.31%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2007	0.25%	66		16.757189		1,106	0.96%	5.33%
2006	0.25%	1,430		15.908520		22,749	0.72%	15.91%
2005	0.25%	2,670		13.725157		36,646	0.00%	2.30%
2004	0.25%	15,102		13.416717		202,619	0.00%	13.70%

(Continued)

52

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.25%	25,366	$	22.660573	$	574,808	3.29%	15.17%
2006	0.25%	156,638		19.676237		3,082,046	1.06%	21.14%
2005	0.25%	148,688		16.242222		2,415,024	1.59%	9.89%
2004	0.25%	93,558		14.779865		1,382,775	0.77%	18.23%
2003	0.25%	42,677		12.500683		533,492	1.42%	31.88%
Franklin Templeton VIP – Small Cap Value Securities Fund – Class 2
2007	0.25%	19,156		12.898779		247,089	0.61%	-2.62%
2006	0.25%	10,222		13.246445		135,405	0.00%	16.69%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.25%	66,228		17.036832		1,128,315	0.00%	2.95%
2005	0.25%	79,118		16.548582		1,309,291	0.00%	7.82%
2004	0.25%	273,266		15.348222		4,194,147	0.00%	13.13%
2003	0.25%	235,314		13.566592		3,192,409	0.00%	33.93%
Goldman Sachs VIT Mid Cap Value Fund
2007	0.25%	169,352		21.334874		3,613,104	0.78%	2.94%
2006	0.25%	174,678		20.724643		3,620,139	1.05%	15.87%
2005	0.25%	155,806		17.885426		2,786,657	0.64%	12.54%
2004	0.25%	165,892		15.891856		2,636,332	0.58%	25.57%
2003	0.25%	16,236		12.655709		205,478	1.17%	28.07%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.25%	32,006		16.007046		512,322	2.28%	10.01%
2006	0.25%	32,938		14.550491		479,264	2.05%	10.14%
2005	0.25%	28,528		13.210934		376,882	1.40%	7.39%
2004	0.25%	93,022		12.301545		1,144,314	2.23%	8.02%
2003	0.25%	94,676		11.387925		1,078,163	2.00%	13.44%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.25%	26,310		12.630653		332,312	0.11%	36.29%
2006	0.25%	27,884		9.267372		258,411	0.15%	8.84%
2005	0.25%	50,244		8.514303		427,793	0.00%	12.28%
2004	0.25%	34,622		7.583386		262,552	0.01%	17.67%
2003	0.25%	193,417		6.444456		1,246,467	0.21%	19.93%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2007	0.25%	111,074		5.152101		572,264	0.33%	21.39%
2006	0.25%	140,322		4.244167		595,550	0.00%	7.56%
2005	0.25%	229,836		3.945872		906,903	0.00%	11.27%
2004	0.25%	197,930		3.546168		701,893	0.00%	0.32%
2003	0.25%	236,572		3.535026		836,288	0.00%	46.11%
Janus Aspen Series – International Growth Portfolio – Service Shares
2007	0.25%	165,920		18.234395		3,025,451	0.45%	27.70%
2006	0.25%	147,862		14.279422		2,111,384	1.91%	46.26%
2005	0.25%	121,374		9.762789		1,184,949	1.16%	31.61%
2004	0.25%	85,384		7.417926		633,372	0.81%	18.39%
2003	0.25%	56,008		6.265664		350,927	1.04%	34.20%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2007	0.25%	79,618		20.940470		1,667,238	0.00%	16.94%
2006	0.25%	69,548		17.906342		1,245,350	0.00%	11.11%
2005	0.25%	69,100		16.115618		1,113,589	0.00%	10.82%
2004	0.25%	53,262		14.542707		774,574	0.00%	12.34%
Lehman Brothers AMT – Short Duration Bond Portfolio – I Class
2003	0.25%	706		11.596366		8,187	3.97%	2.17%
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.25%	106,480		19.321952		2,057,401	0.00%	3.16%
2006	0.25%	36,880		18.729880		690,758	0.00%	15.23%
2005	0.25%	14,624		16.253697		237,694	0.00%	3.11%
2004	0.25%	23,960		15.763932		377,704	0.00%	25.33%
2003	0.25%	5,295		12.578424		66,603	0.00%	29.69%
Lord Abbett Series Fund, Inc. – Mid-Cap Value Portfolio – Class VC
2007	0.25%	2,898		12.658811		36,685	0.44%	0.33%

(Continued)

53

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide GVIT Strategic Value Fund – Class I
2003	0.25%	60,484	$	9.391261	$	568,021	0.04%	38.46%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.25%	129,054		15.744706		2,031,917	7.52%	2.88%
2006	0.25%	112,142		15.304625		1,716,291	7.79%	10.33%
2005	0.25%	84,400		13.872000		1,170,797	7.94%	2.13%
2004	0.25%	69,416		13.583306		942,899	6.72%	9.82%
2003	0.25%	118,799		12.368539		1,469,370	7.88%	21.97%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2007	0.25%	39,428		36.226972		1,428,357	0.75%	45.21%
2006	0.25%	13,852		24.947405		345,571	0.34%	36.38%
2005	0.25%	13,642		18.292860		249,551	0.46%	32.31%
2004	0.25%	6,104		13.826171		84,395	0.51%	20.44%
2003	0.25%	187		11.479519		2,147	0.00%	64.85%
Nationwide VIT – Gartmore Global Utilities Fund – Class I
2007	0.25%	88		24.329252		2,141	2.57%	20.13%
2006	0.25%	250		20.252066		5,063	0.07%	37.22%
2005	0.25%	270		14.758947		3,985	0.47%	6.12%
Nationwide VIT – Gartmore International Growth Fund – Class I
2007	0.25%	29,472		16.769826		494,240	0.40%	26.83%
2006	0.25%	30,994		13.222655		409,823	1.13%	32.63%
2005	0.25%	32,376		9.969281		322,765	0.74%	29.89%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2007	0.25%	32,612		18.791981		612,844	0.35%	19.60%
2006	0.25%	26,456		15.712604		415,693	0.84%	25.57%
2005	0.25%	30,076		12.513271		376,349	1.01%	19.04%
2004	0.25%	9,180		10.511783		96,498	0.00%	15.38%
2003	0.25%	4,702		9.110845		42,839	0.00%	35.72%
Nationwide VIT – Global Financial Services Fund – Class I
2007	0.25%	57,414		19.345657		1,110,712	3.27%	-1.30%
2006	0.25%	62,280		19.600661		1,220,729	1.89%	20.02%
2005	0.25%	58,114		16.330978		949,058	4.50%	10.87%
2004	0.25%	388		14.729262		5,715	1.89%	20.69%
2003	0.25%	44		12.204124		537	5.11%	41.10%
Nationwide VIT – Global Health Sciences Fund – Class I
2007	0.25%	1,180		15.279611		18,030	0.06%	12.88%
2006	0.25%	1,020		13.536569		13,807	0.00%	2.45%
2005	0.25%	736		13.212593		9,724	0.00%	8.17%
2004	0.25%	234		12.214711		2,858	0.00%	7.59%
Nationwide VIT – Global Technology and Communications Fund – Class I
2007	0.25%	88,224		4.165338		367,483	0.00%	19.79%
2006	0.25%	1,047,120		3.477132		3,640,974	0.00%	10.89%
2005	0.25%	89,376		3.135604		280,248	0.00%	-0.76%
2004	0.25%	8,328		3.159750		26,314	0.00%	4.05%
2003	0.25%	5,272		3.036698		16,009	0.00%	54.84%
Nationwide VIT – Government Bond Fund – Class I
2007	0.25%	234,938		16.445029		3,863,562	4.04%	6.89%
2006	0.25%	391,450		15.385133		6,022,510	4.02%	3.08%
2005	0.25%	521,776		14.924878		7,787,443	3.64%	3.01%
2004	0.25%	739,432		14.489288		10,713,843	5.44%	3.00%
2003	0.25%	1,071,165		14.066694		15,067,750	2.97%	1.75%
Nationwide VIT – Growth Fund – Class I
2007	0.25%	46,608		8.341169		388,765	0.17%	19.24%
2006	0.25%	39,802		6.995039		278,417	0.05%	5.90%
2005	0.25%	41,652		6.605102		275,116	0.08%	6.24%
2004	0.25%	28,898		6.217435		179,671	0.11%	7.89%
2003	0.25%	140,404		5.762938		809,140	0.02%	32.41%
Nationwide VIT – International Index Fund – Class II
2007	0.25%	7,682		10.117465		77,722	1.21%	1.17% 0	5/01/07

(Continued)

54

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Investor Destinations Aggressive Fund – Class II
2003	0.25%	158	$	10.933839	$	1,728	1.49%	31.54%
Nationwide VIT – Investor Destinations Conservative Fund – Class II
2007	0.25%	8,302		12.924331		107,298	7.71%	5.12%
2006	0.25%	80		12.295233		984	0.89%	5.90%
2004	0.25%	28,254		11.266714		318,330	2.32%	4.39%
2003	0.25%	28,851		10.792806		311,383	3.07%	7.64%
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.25%	64,496		14.677673		946,651	2.55%	5.39%
2006	0.25%	73,596		13.926464		1,024,932	2.59%	11.08%
2005	0.25%	57,904		12.537840		725,991	2.20%	5.08%
2004	0.25%	86,964		11.931529		1,037,613	4.67%	9.26%
2003	0.25%	157		10.920096		1,714	2.03%	19.75%
Nationwide VIT – Investor Destinations Moderately Aggressive Fund – Class II
2007	0.25%	7,122		15.818947		112,663	3.09%	5.88%
2006	0.25%	68		14.939913		1,016	1.39%	14.26%
2003	0.25%	157		10.949354		1,719	1.63%	26.33%
Nationwide VIT – Investor Destinations Moderately Conservative Fund – Class II
2007	0.25%	156		13.881453		2,166	3.45%	5.59%
2006	0.25%	76		13.146115		999	2.21%	8.15%
2003	0.25%	156		10.910488		1,702	2.43%	13.41%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2007	0.25%	122,702		12.867713		1,578,894	2.03%	4.36%
2006	0.25%	293,764		12.329824		3,622,058	1.57%	11.97%
2005	0.25%	301,796		11.011806		3,323,319	2.11%	2.29%
2004	0.25%	332,060		10.765587		3,574,821	2.29%	8.22%
2003	0.25%	302,735		9.947843		3,011,560	2.19%	18.12%
Nationwide VIT – Mid Cap Growth Fund – Class I
2007	0.25%	32,438		15.019468		487,202	0.00%	8.74%
2006	0.25%	29,982		13.812141		414,116	0.00%	9.63%
2005	0.25%	42,526		12.598383		535,759	0.00%	9.47%
2004	0.25%	75,540		11.508706		869,368	0.00%	15.05%
2003	0.25%	71,540		10.003212		715,630	0.00%	39.79%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.25%	27,830		23.112486		643,220	1.57%	7.29%
2006	0.25%	29,578		21.542146		637,174	0.92%	9.62%
2005	0.25%	28,890		19.652410		567,758	1.05%	11.82%
2004	0.25%	95,542		17.575168		1,679,167	0.84%	15.44%
2003	0.25%	40,399		15.224120		615,039	0.48%	34.31%
Nationwide VIT – Money Market Fund – Class I
2007	0.25%	30,416		13.431742		408,540	4.64%	4.53%
2006	0.25%	48,288		12.849738		620,488	4.36%	4.27%
2005	0.25%	81,346		12.323562		1,002,472	1.88%	2.41%
2004	0.25%	843,680		12.033310		10,152,263	0.76%	0.56%
2003	0.25%	694,925		11.966375		8,315,733	0.62%	0.37%
Nationwide VIT – Money Market Fund – Class V
2007	0.25%	3,235,276		11.330392		36,656,945	4.66%	4.60%
2006	0.25%	4,504,854		10.831867		48,795,979	4.50%	4.35%
2005	0.25%	5,339,248		10.380057		55,421,699	2.80%	2.49%
2004	0.25%	4,352,894		10.127388		44,083,446	0.88%	0.64%
2003	0.25%	5,055,493		10.063117		50,874,018	0.71%	0.45%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.25%	46,678		18.651020		870,592	0.00%	9.47%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.25%	225,632		23.101501		5,212,438	1.13%	-7.13%
2006	0.25%	250,234		24.874426		6,224,427	0.44%	17.00%
2005	0.25%	280,230		21.259933		5,957,671	0.06%	2.82%
2004	0.25%	287,112		20.677651		5,936,802	0.00%	17.01%
2003	0.25%	206,506		17.672379		3,649,452	0.00%	56.46%

(Continued)

55

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.25%	289,916	$	23.129248	$	6,705,539	0.09%	1.88%
2006	0.25%	307,966		22.703339		6,991,856	0.10%	11.76%
2005	0.25%	397,326		20.314467		8,071,466	0.00%	12.04%
2004	0.25%	365,202		18.131930		6,621,817	0.00%	18.73%
2003	0.25%	323,465		15.272205		4,940,024	0.00%	40.66%
Nationwide VIT – Nationwide Fund – Class I
2007	0.25%	57,392		13.998938		803,427	0.96%	7.91%
2006	0.25%	46,336		12.972828		601,109	0.90%	13.34%
2005	0.25%	85,460		11.445466		978,130	0.91%	7.17%
2004	0.25%	88,244		10.679350		942,389	1.21%	9.48%
2003	0.25%	99,546		9.754873		971,059	0.58%	27.19%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2007	0.25%	4,052		18.966559		76,852	0.00%	22.18%
2006	0.25%	2,848		15.523663		44,211	0.41%	-0.54%
2005	0.25%	1,062		15.607398		16,575	0.00%	11.68%
2004	0.25%	404		13.974657		5,646	0.00%	12.13%
2003	0.25%	85		12.463103		1,059	0.00%	51.76%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2007	0.25%	29,682		13.159897		390,612	2.07%	-2.46%
2006	0.25%	5,640		13.492091		76,095	1.70%	15.62%
2005	0.25%	7,630		11.669684		89,040	1.62%	3.99%
2004	0.25%	6,650		11.222233		74,628	1.34%	17.21%
2003	0.25%	5,386		9.574848		51,570	1.37%	31.11%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2007	0.25%	142,194		15.688937		2,230,873	3.89%	4.36%
2006	0.25%	157,560		15.033200		2,368,631	4.16%	4.58%
2005	0.25%	164,482		14.375255		2,364,471	3.99%	1.93%
2004	0.25%	157,438		14.103672		2,220,454	5.20%	6.27%
2003	0.25%	163,122		13.271836		2,164,928	5.42%	11.84%
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.25%	1,552		15.136586		23,492	0.00%	0.26%
2006	0.25%	314		15.096902		4,740	0.00%	4.99%
2005	0.25%	280		14.379334		4,026	0.00%	2.64%
2004	0.25%	162		14.009370		2,270	0.00%	11.60%
2003	0.25%	14,408		12.553503		180,871	0.00%	24.75%
Neuberger Berman AMT – Growth Portfolio- Class I
2004	0.25%	46,276		7.971477		368,888	0.00%	16.31%
2003	0.25%	96,290		6.853558		659,929	0.00%	31.07%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2007	0.25%	24,678		15.499279		382,491	0.19%	7.12%
2006	0.25%	87,020		14.469329		1,259,121	0.60%	13.09%
2005	0.25%	90,620		12.794029		1,159,395	0.18%	8.12%
2004	0.25%	90,890		11.833049		1,075,506	0.13%	15.53%
2003	0.25%	97,420		10.242831		997,857	0.83%	31.43%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2007	0.25%	83,106		19.961533		1,658,923	0.00%	22.22%
2006	0.25%	76,228		16.332395		1,244,986	0.00%	14.41%
2005	0.25%	78,930		14.275493		1,126,765	0.00%	13.46%
2004	0.25%	103,072		12.582197		1,296,872	0.00%	16.02%
2003	0.25%	109,829		10.845085		1,191,105	0.00%	27.75%
Neuberger Berman AMT – Partners Portfolio- Class I
2007	0.25%	94,644		16.957944		1,604,968	0.63%	9.06%
2006	0.25%	112,472		15.548936		1,748,820	0.75%	11.96%
2005	0.25%	106,638		13.887778		1,480,965	0.87%	17.75%
2004	0.25%	139,126		11.794154		1,640,873	0.02%	18.68%
2003	0.25%	548,969		9.937929		5,455,615	0.00%	34.75%

(Continued)

56

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer VAF – Balanced Fund – Non-Service Shares
2007	0.25%	63,874	$	14.946978	$	954,723	2.50%	3.53%
2006	0.25%	69,630		14.437838		1,005,307	2.13%	10.87%
2005	0.25%	75,488		13.022455		983,039	2.39%	3.63%
2004	0.25%	93,010		12.566277		1,168,789	1.25%	9.83%
2003	0.25%	62,221		11.441957		711,930	2.69%	24.65%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2007	0.25%	256,650		17.096620		4,387,848	0.20%	13.86%
2006	0.25%	395,606		15.015124		5,940,073	0.37%	7.68%
2005	0.25%	434,584		13.944277		6,059,960	1.04%	4.84%
2004	0.25%	400,854		13.300944		5,331,737	0.29%	6.67%
2003	0.25%	330,090		12.469347		4,116,007	0.40%	30.62%
Oppenheimer VAF – Core Bond Fund – Non-Service Shares
2007	0.25%	72,602		14.556650		1,056,842	5.03%	4.13%
2006	0.25%	79,144		13.979406		1,106,386	5.21%	5.02%
2005	0.25%	98,238		13.311605		1,307,705	5.80%	2.33%
2004	0.25%	115,260		13.008289		1,499,335	4.96%	5.23%
2003	0.25%	76,473		12.361877		945,350	5.96%	6.51%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2007	0.25%	155,098		15.720950		2,438,288	0.85%	6.05%
2006	0.25%	167,220		14.823774		2,478,831	1.03%	17.40%
2005	0.25%	157,524		12.626867		1,989,035	0.62%	14.02%
2004	0.25%	66,624		11.073978		737,793	1.96%	18.87%
2003	0.25%	4,381		9.316393		40,815	0.99%	42.66%
Oppenheimer VAF – Main Street® – Non-Service Shares
2007	0.25%	12,692		12.511530		158,796	0.97%	4.16%
2006	0.25%	12,890		12.011636		154,830	1.06%	14.74%
2005	0.25%	16,924		10.468714		177,173	1.19%	5.71%
2004	0.25%	29,538		9.903052		292,516	0.93%	9.19%
2003	0.25%	33,073		9.069907		299,969	0.75%	26.40%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2007	0.25%	50,576		14.184053		717,373	0.00%	6.07%
2006	0.25%	235,826		13.372932		3,153,685	0.00%	2.70%
2005	0.25%	285,214		13.021408		3,713,888	0.00%	12.05%
2004	0.25%	429,564		11.621370		4,992,122	0.00%	19.48%
2003	0.25%	320,894		9.726809		3,121,275	0.00%	25.28%
PIMCO VIT – All Asset Portfolio – Administrative Shares
2007	0.25%	240,382		13.398414		3,220,738	7.61%	8.06%
2006	0.25%	238,184		12.399544		2,953,373	6.84%	4.40%
2005	0.25%	5,472		11.877133		64,992	1.91%	5.96%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.25%	123,908		11.823104		1,464,977	4.70%	7.10%
2006	0.25%	232,794		11.038824		2,569,772	4.01%	3.70%
2005	0.25%	675,140		10.644694		7,186,659	2.86%	0.75%
2004	0.25%	379,246		10.565271		4,006,837	1.06%	1.58%
2003	0.25%	2,471,858		10.400435		25,708,398	1.31%	2.09%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2007	0.25%	373,918		13.803269		5,161,291	4.66%	10.37%
2006	0.25%	385,224		12.506613		4,817,847	4.26%	0.49%
2005	0.25%	252,714		12.445521		3,145,157	2.94%	1.82%
2004	0.25%	103,544		12.223233		1,265,642	1.02%	8.62%
2003	0.25%	34,984		11.253423		393,690	2.65%	8.58%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.25%	357,356		13.002214		4,646,419	4.68%	8.47%
2006	0.25%	615,140		11.986960		7,373,659	4.46%	3.59%
2005	0.25%	486,292		11.571785		5,627,266	3.32%	2.17%
2004	0.25%	398,986		11.325918		4,518,883	1.88%	4.62%
2003	0.25%	50,980		10.825824		551,901	2.81%	4.78%

(Continued)

57

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2007	0.25%	10,584	$	17.203983	$	182,087	5.32%	5.65%
2006	0.25%	11,150		16.283186		181,558	5.90%	8.23%
2005	0.25%	430		15.044787		6,469	5.80%	1.69%
2004	0.25%	12,464		14.794578		184,400	5.52%	7.79%
2003	0.25%	38,913		13.725038		534,082	7.87%	32.45%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.25%	188,620		23.821182		4,493,151	1.14%	3.72%
2006	0.25%	188,708		22.967474		4,334,146	0.19%	20.77%
2005	0.25%	150,158		19.017724		2,855,663	0.54%	11.33%
2004	0.25%	156,340		17.082044		2,670,607	0.00%	13.56%
2003	0.25%	174,290		15.042113		2,621,690	0.00%	48.79%
T. Rowe Price Equity Income Portfolio – II
2007	0.25%	299,808		18.178518		5,450,065	1.44%	2.77%
2006	0.25%	291,730		17.688346		5,160,221	1.34%	18.35%
2005	0.25%	264,200		14.945544		3,948,613	1.39%	3.44%
2004	0.25%	190,758		14.448971		2,756,257	1.43%	14.33%
2003	0.25%	60,983		12.637920		770,698	1.61%	24.86%
T. Rowe Price Mid-Cap Growth Portfolio – II
2007	0.25%	131,028		23.547392		3,085,368	0.00%	16.93%
2006	0.25%	142,804		20.137940		2,875,778	0.00%	6.12%
2005	0.25%	216,468		18.977178		4,107,952	0.00%	14.15%
2004	0.25%	151,418		16.624542		2,517,255	0.00%	17.76%
2003	0.25%	163,581		14.117448		2,309,346	0.00%	37.75%
T. Rowe Price New America Growth Portfolio
2007	0.25%	183,150		13.682900		2,506,023	0.00%	13.49%
2006	0.25%	35,424		12.056017		427,072	0.05%	7.06%
2005	0.25%	25,898		11.260565		291,626	0.00%	4.21%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2007	0.25%	9,990		11.334861		113,235	0.19%	7.51%
2006	0.25%	9,986		10.542600		105,278	0.08%	8.93%
2005	0.25%	18,530		9.678444		179,342	0.00%	3.36%
2004	0.25%	19,508		9.364044		182,674	0.38%	5.95%
2003	0.25%	38,530		8.838565		340,550	0.11%	25.69%
Turner GVIT Growth Focus Fund – Class I
2003	0.25%	161		3.309832		533	0.00%	50.59%
Van Eck Worldwide Insurance Trust – Bond Fund – Initial Class
2003	0.25%	1,328		13.398966		17,794	1.41%	17.87%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2007	0.25%	103,264		33.789017		3,489,189	0.47%	37.27%
2006	0.25%	79,400		24.615135		1,954,442	0.56%	39.14%
2005	0.25%	75,592		17.690391		1,337,252	0.24%	31.67%
2004	0.25%	20,576		13.435652		276,452	0.85%	25.58%
2003	0.25%	23,844		10.699174		255,111	0.11%	53.80%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2007	0.25%	17,132		38.776915		664,326	0.02%	44.99%
2006	0.25%	269,944		26.744182		7,219,431	0.02%	24.18%
2005	0.25%	23,316		21.536287		502,140	0.02%	51.29%
2004	0.25%	5,464		14.234866		77,779	1.04%	23.92%
2003	0.25%	30,097		11.510500		346,432	0.45%	44.72%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2007	0.25%	16,418		21.396908		351,294	4.89%	6.26%
2006	0.25%	6,038		20.135510		121,578	8.16%	10.53%
2005	0.25%	8,700		18.217042		158,488	8.08%	11.97%
2004	0.25%	7,960		16.269408		129,504	7.05%	9.79%
2003	0.25%	25,519		14.819043		378,167	0.00%	27.55%

(Continued)

58

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Van Kampen UIF – Mid Cap Growth Portfolio- class I
2007	0.25%	32,696	$	11.268795	$	368,445	0.00%	22.36%
2006	0.25%	35,840		9.209696		330,076	0.00%	9.00%
2005	0.25%	37,806		8.449046		319,425	0.00%	17.28%
2004	0.25%	162,820		7.204463		1,173,031	0.00%	21.29%
2003	0.25%	18,020		5.939719		107,034	0.00%	41.41%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.25%	79,286		28.053652		2,224,262	1.08%	-17.28%
2006	0.25%	123,528		33.913546		4,189,273	1.04%	37.70%
2005	0.25%	136,828		24.628370		3,369,851	1.11%	16.76%
2004	0.25%	145,214		21.093147		3,063,020	1.54%	36.05%
2003	0.25%	165,337		15.503467		2,563,297	0.00%	37.17%
Wells Fargo AVT – Discovery FundSM
2007	0.25%	1,284		23.256824		29,862	0.00%	22.02%
2006	0.25%	1,400		19.060374		26,685	0.00%	14.36%
2005	0.25%	1,646		16.667162		27,434	0.00%	8.00%
2004	0.25%	11,836		15.432167		182,655	0.00%	15.43%
2003	0.25%	16,721		13.369301		223,548	0.00%	39.08%
Wells Fargo AVT – Opportunity FundSM
2007	0.25%	80,446		14.277593		1,148,575	0.58%	6.37%
2006	0.25%	89,218		13.423088		1,197,581	0.00%	11.94%
2005	0.25%	191,732		11.991404		2,299,136	0.00%	7.62%
2004	0.25%	191,888		11.142802		2,138,170	0.00%	17.93%
2003	0.25%	200,633		9.449055		1,895,792	0.09%	36.66%
The BEST of AMERICA® America’s FUTURE Life SeriesSM Reduced Fee Tier – (0.40%)
AIM VIF – Basic Value Fund – Series I
2007	0.40%	6		17.397964		104	0.15%	1.14%
2006	0.40%	92		17.202471		1,583	0.50%	12.75%
2005	0.40%	184		15.256716		2,807	0.11%	5.32%
2004	0.40%	162		14.486704		2,347	0.00%	10.63%
2003	0.40%	74		13.095200		969	0.07%	33.09%
AllianceBernstein VPS – Growth and Income Portfolio – Class A
2007	0.40%	200		18.737498		3,747	1.09%	4.70%
2006	0.40%	900		17.896979		16,107	0.80%	16.82%
2005	0.40%	976		15.320186		14,953	1.19%	4.45%
2004	0.40%	550		14.667608		8,067	0.93%	11.02%
2003	0.40%	12,315		13.212012		162,706	0.00%	31.97%
AllianceBernstein VPS – International Value Portfolio – Class A
2007	0.40%	322		11.924192		3,840	0.23%	5.42%
American Century VP – Income & Growth Fund – Class I
2005	0.40%	1,968		12.625722		24,847	1.95%	4.21%
2004	0.40%	3,126		12.115153		37,872	1.42%	12.54%
2003	0.40%	8,878		10.765053		95,572	1.33%	28.84%
American Century VP – International Fund – Class I
2007	0.40%	112		17.343787		1,943	0.59%	17.58%
2006	0.40%	976		14.750278		14,396	2.00%	24.53%
2005	0.40%	4,176		11.844974		49,465	1.15%	12.80%
2004	0.40%	5,644		10.500552		59,265	0.49%	14.47%
2003	0.40%	353,253		9.173579		3,240,594	0.75%	24.01%
American Century VP – Ultra® Fund – Class I
2007	0.40%	10		12.990210		130	0.00%	20.53%
2006	0.40%	674		10.777532		7,264	0.00%	-3.66%
2005	0.40%	2,320		11.187064		25,954	0.00%	1.76%
2004	0.40%	360		10.993709		3,958	0.00%	10.23%
2003	0.40%	221		9.973091		2,204	0.00%	24.40%

(Continued)

59

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		vestment Income Ratio**	Total   Return***
American Century VP – Value Fund – Class I
2006	0.40%	1,596	$	18.608964	$	29,700	0.00%	15.06%
2005	0.40%	2,658		16.172933		42,988	0.00%	2.95%
2004	0.40%	378		15.709055		5,938	0.00%	25.14%
2003	0.40%	10,857		13.683795		148,565	1.15%	28.44%
Credit Suisse Trust – Large Cap Value Portfolio
2003	0.40%	44		10.955988		482	0.68%	24.66%
Dreyfus IP – Small Cap Stock Index Portfolio – Service Shares
2007	0.40%	48		15.357469		737	0.27%	-1.05%
2006	0.40%	76		15.520951		1,180	0.36%	13.96%
2005	0.40%	104		13.620186		1,416	0.00%	6.81%
2004	0.40%	122		12.752292		1,556	0.79%	21.40%
2003	0.40%	879		10.504526		9,233	0.04%	37.23%
Dreyfus Stock Index Fund, Inc. – Initial Shares
2007	0.40%	1,278		14.346541		18,335	1.68%	4.83%
2006	0.40%	6,436		13.685152		88,078	1.69%	15.04%
2005	0.40%	10,694		11.896207		127,218	1.61%	4.27%
2004	0.40%	13,608		11.408542		155,247	1.79%	10.20%
2003	0.40%	999,962		10.352696		10,352,303	1.53%	27.85%
Dreyfus VIF – Appreciation Portfolio – Initial Shares
2007	0.40%	460		14.746966		6,784	1.10%	6.70%
2006	0.40%	1,920		13.820624		26,536	1.54%	16.01%
2005	0.40%	5,164		11.912967		61,519	0.02%	3.96%
2004	0.40%	7,182		11.458946		82,298	1.46%	4.63%
2003	0.40%	19,784		10.952239		216,679	0.76%	20.69%
Dreyfus VIF – International Value Portfolio – Initial Shares
2006	0.40%	194		11.246076		2,182	0.00%	12.46% 0	5/01/06
2003	0.40%	42		12.803571		538	1.91%	35.81%
Federated IS – Quality Bond Fund II – Primary Shares
2006	0.40%	124		14.279265		1,771	3.94%	3.74%
2005	0.40%	928		13.764550		12,774	4.49%	0.89%
2004	0.40%	2,250		13.642560		30,696	4.32%	3.21%
2003	0.40%	26,065		13.218733		344,546	3.73%	4.23%
Fidelity® VIP – Equity-Income Portfolio – Service Class
2007	0.40%	362		16.184435		5,859	0.77%	1.01%
2006	0.40%	752		16.022504		12,049	3.18%	19.60%
2005	0.40%	1,464		13.396579		19,613	1.31%	5.34%
2004	0.40%	1,272		12.717880		16,177	1.66%	10.94%
2003	0.40%	314,880		11.463982		3,609,779	1.24%	29.70%
Fidelity® VIP – Growth Portfolio – Service Class
2007	0.40%	184		15.988944		2,942	0.33%	26.36%
2006	0.40%	564		12.653389		7,137	0.28%	6.31%
2005	0.40%	5,290		11.902677		62,965	0.38%	5.25%
2004	0.40%	4,946		11.308717		55,933	0.16%	2.85%
2003	0.40%	73,719		10.995198		810,555	0.20%	32.25%
Fidelity® VIP – High Income Portfolio – Service Class
2005	0.40%	874		9.525383		8,325	14.80%	2.11%
2004	0.40%	2,444		9.328110		22,798	9.51%	9.03%
2003	0.40%	43,065		8.555502		368,443	8.69%	26.46%
Fidelity® VIP – Overseas Portfolio – Service Class
2007	0.40%	2,418		17.708202		42,818	3.95%	16.74%
2006	0.40%	4,436		15.169405		67,291	0.57%	17.48%
2005	0.40%	7,900		12.912620		102,010	0.43%	18.50%
2004	0.40%	4,804		10.896942		52,349	1.10%	13.03%
2003	0.40%	49,020		9.640353		472,570	0.85%	42.63%
Fidelity® VIP II – Contrafund® Portfolio – Service Class
2007	0.40%	1,726		22.806621		39,364	0.74%	17.04%
2006	0.40%	3,622		19.486792		70,581	1.19%	11.15%
2005	0.40%	5,744		17.532748		100,708	0.11%	16.38%
2004	0.40%	3,508		15.064815		52,847	0.36%	14.88%
2003	0.40%	26,935		13.113640		353,216	0.35%	27.84%

(Continued)

60

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity® VIP III – Growth Opportunities Portfolio – Service Class
2005	0.40%	636	$	9.527944	$	6,060	0.80%	8.43%
2004	0.40%	4,350		8.787333		38,225	0.37%	6.63%
2003	0.40%	22,412		8.240791		184,693	0.68%	29.14%
Fidelity® VIP III – Mid Cap Portfolio – Service Class
2006	0.40%	6		13.568197		81	0.00%	12.14%
Fidelity® VIP III – Value Strategies Portfolio – Service Class
2005	0.40%	12		13.649958		164	0.00%	2.15%
2004	0.40%	176		13.363171		2,352	0.00%	13.53%
Franklin Templeton VIP – Foreign Securities Fund – Class 2
2007	0.40%	326		22.480343		7,329	3.29%	14.99%
2006	0.40%	1,080		19.549201		21,113	1.06%	20.96%
2005	0.40%	2,458		16.161499		39,725	1.59%	9.73%
2004	0.40%	1,780		14.728417		26,217	0.77%	18.06%
2003	0.40%	47,616		12.475864		594,051	1.42%	31.68%
Gartmore GVIT – Small Cap Growth Fund: Class I – Intial Funding by Depositor
2006	0.40%	524		16.842189		8,825	0.00%	2.80%
2005	0.40%	682		16.384018		11,174	0.00%	7.66%
2004	0.40%	324		15.218321		4,931	0.00%	12.96%
2003	0.40%	3,860		13.471955		52,002	0.00%	33.73%
Goldman Sachs VIT Mid Cap Value Fund
2003	0.40%	168,012		12.630569		2,122,087	1.17%	27.88%
Janus Aspen Series – Balanced Portfolio – Service Shares
2007	0.40%	56		15.879713		889	2.28%	9.84%
2006	0.40%	206		14.456527		2,978	2.05%	9.98%
2005	0.40%	272		13.145265		3,576	1.40%	7.23%
2004	0.40%	158		12.258707		1,937	2.23%	7.86%
2003	0.40%	77		11.365300		875	2.00%	13.27%
Janus Aspen Series – Forty Portfolio – Service Shares
2007	0.40%	792		12.481327		9,885	0.11%	36.09%
2006	0.40%	2,040		9.171618		18,710	0.15%	8.68%
2005	0.40%	1,088		8.438947		9,182	0.00%	12.11%
2004	0.40%	1,190		7.527514		8,958	0.01%	17.50%
2003	0.40%	32,497		6.406568		208,194	0.21%	19.75%
Janus Aspen Series – Global Technology Portfolio – Service Shares
2003	0.40%	6,748		3.514240		23,714	0.00%	45.89%
Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.40%	2,976		14.131910		42,057	1.91%	46.05%
2005	0.40%	2,546		9.676381		24,636	1.16%	31.41%
2004	0.40%	2,008		7.363272		14,785	0.81%	18.21%
2003	0.40%	43,912		6.228826		273,520	1.04%	34.00%
JPMorgan Insurance Trust – Diversified Mid Cap Growth Portfolio 1
2003	0.40%	54,174		12.919754		699,915	0.00%	26.64%
Lincoln VIP – Baron Growth Opportunies Funds – Service Class
2007	0.40%	288		19.168269		5,520	0.00%	3.01%
Nationwide GVIT Strategic Value Fund – Class I
2003	0.40%	11		9.311693		102	0.04%	38.25%
Nationwide VIT – Federated High Income Bond Fund – Class I
2007	0.40%	454		15.518038		7,045	7.52%	2.72%
2006	0.40%	2,620		15.107048		39,580	7.79%	10.16%
2005	0.40%	2,574		13.713412		35,298	7.94%	1.97%
2004	0.40%	1,584		13.448117		21,302	6.72%	9.66%
2003	0.40%	20,240		12.263819		248,220	7.88%	21.78%
Nationwide VIT – Gartmore Emerging Markets Fund – Class I
2003	0.40%	23		11.423706		263	0.00%	64.60%
Nationwide VIT – Gartmore Worldwide Leaders Fund – Class I
2003	0.40%	22		9.033664		199	0.00%	35.52%
Nationwide VIT – Global Financial Services Fund – Class I
2003	0.40%	5		12.173639		61	5.11%	40.89%

(Continued)

61

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Global Technology and Communications Fund – Class I
2003	0.40%	45	$	3.021924	$	136	0.00%	54.61%
Nationwide VIT – Government Bond Fund – Class I
2007	0.40%	1,020		16.208282		16,532	4.04%	6.73%
2006	0.40%	1,058		15.186518		16,067	4.02%	2.93%
2005	0.40%	2,522		14.754249		37,210	3.64%	2.85%
2004	0.40%	3,174		14.345081		45,531	5.44%	2.85%
2003	0.40%	276,537		13.947593		3,857,026	2.97%	1.59%
Nationwide VIT – Growth Fund – Class I
2005	0.40%	1,474		6.529541		9,625	0.08%	6.08%
2004	0.40%	2,310		6.155504		14,219	0.11%	7.72%
2003	0.40%	336,262		5.714099		1,921,434	0.02%	32.21%
Nationwide VIT – International Index Fund – Class II
2007	0.40%	112		10.107323		1,132	1.21%	1.07% 0	5/01/07
Nationwide VIT – Investor Destinations Moderate Fund – Class II
2007	0.40%	90		14.547724		1,309	2.55%	5.24%
2006	0.40%	166		13.823999		2,295	2.59%	10.91%
2005	0.40%	206		12.464210		2,568	2.20%	4.92%
Nationwide VIT – J.P. Morgan Balanced Fund – Class I
2005	0.40%	524		10.885904		5,704	2.11%	2.13%
2004	0.40%	844		10.658428		8,996	2.29%	8.06%
2003	0.40%	9,355		9.863609		92,274	2.19%	17.94%
Nationwide VIT – Mid Cap Growth Fund – Class I
2003	0.40%	7,736		9.918443		76,729	0.00%	39.58%
Nationwide VIT – Mid Cap Index Fund – Class I
2007	0.40%	88		22.779636		2,005	1.57%	7.13%
2006	0.40%	204		21.263963		4,338	0.92%	9.45%
2005	0.40%	244		19.427688		4,740	1.05%	11.65%
2004	0.40%	122		17.400194		2,123	0.84%	15.27%
2003	0.40%	648		15.095175		9,782	0.48%	34.11%
Nationwide VIT – Money Market Fund – Class I
2003	0.40%	374,808		11.864684		4,446,978	0.62%	0.22%
Nationwide VIT – Money Market Fund – Class V
2007	0.40%	9,400		11.242166		105,676	4.66%	4.44%
2006	0.40%	10,554		10.763797		113,601	4.50%	4.20%
2005	0.40%	19,404		10.330316		200,449	2.80%	2.34%
2004	0.40%	16,318		10.093995		164,714	0.88%	0.49%
2003	0.40%	412,466		10.045042		4,143,238	0.71%	0.30%
Nationwide VIT – Multi-Manager Small Cap Growth Fund – Class I
2007	0.40%	116		18.410147		2,136	0.00%	9.31%
Nationwide VIT – Multi-Manager Small Cap Value Fund – Class I
2007	0.40%	236		22.768858		5,373	1.13%	-7.27%
2006	0.40%	318		24.553275		7,808	0.44%	16.83%
2005	0.40%	1,050		21.016857		22,068	0.06%	2.66%
2004	0.40%	536		20.471824		10,973	0.00%	16.83%
2003	0.40%	17,971		17.522719		314,901	0.00%	56.23%
Nationwide VIT – Multi-Manager Small Company Fund – Class I
2007	0.40%	1,382		22.796223		31,504	0.09%	1.72%
2006	0.40%	4,416		22.410227		98,964	0.10%	11.59%
2005	0.40%	9,984		20.082219		200,501	0.00%	11.87%
2004	0.40%	10,366		17.951460		186,085	0.00%	18.55%
2003	0.40%	152,314		15.142892		2,306,474	0.00%	40.45%
Nationwide VIT – Nationwide Fund – Class I
2003	0.40%	121,505		9.672247		1,175,226	0.58%	27.00%
Nationwide VIT – U.S. Growth Leaders Fund – Class I
2003	0.40%	11		12.431976		137	0.00%	51.53%
Nationwide VIT – Van Kampen Comstock Value Fund – Class I
2003	0.40%	898		9.493770		8,525	1.37%	30.91%
Nationwide VIT – Van Kampen Multi Sector Bond Fund – Class I
2003	0.40%	1		13.159481		13	5.42%	11.67%

(Continued)

62

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Neuberger Berman AMT – Fasciano Portfolio – S Class Shares
2007	0.40%	84	$	15.016171	$	1,261	0.00%	0.11%
2006	0.40%	6		14.999423		90	0.00%	4.83%
2004	0.40%	8		13.960609		112	0.00%	11.43%
2003	0.40%	442		12.528578		5,538	0.00%	24.56%
Neuberger Berman AMT – Guardian Portfolio – I Class Shares
2003	0.40%	2,004		10.156098		20,353	0.83%	31.24%
Neuberger Berman AMT – Mid-Cap Growth Portfolio – I Class Shares
2003	0.40%	371,607		10.753194		3,995,962	0.00%	27.56%
Neuberger Berman AMT – Partners Portfolio- Class I
2005	0.40%	124		13.728969		1,702	0.87%	17.58%
2004	0.40%	252		11.676716		2,943	0.02%	18.50%
2003	0.40%	5,347		9.853739		52,688	0.00%	34.55%
Oppenheimer VAF – Capital Appreciation Fund – Non-Service Shares
2003	0.40%	145,672		12.363752		1,801,052	0.40%	30.42%
Oppenheimer VAF – Global Securities Fund – Non-Service Shares
2003	0.40%	172,526		9.265284		1,598,502	0.99%	42.45%
Oppenheimer VAF – Main Street® – Non-Service Shares
2003	0.40%	844		8.993106		7,590	0.75%	26.21%
Oppenheimer VAF – Mid Cap Fund – Non-Service Shares
2005	0.40%	6,724		12.872483		86,555	0.00%	11.88%
2004	0.40%	12,654		11.505640		145,592	0.00%	19.30%
2003	0.40%	34,906		9.644393		336,647	0.00%	25.09%
PIMCO VIT – Low Duration Portfolio – Administrative Shares
2007	0.40%	130		11.728722		1,525	4.70%	6.94%
2006	0.40%	170		10.967285		1,864	4.01%	3.55%
2005	0.40%	190		10.591594		2,012	2.86%	0.60%
2004	0.40%	576		10.528355		6,064	1.06%	1.43%
PIMCO VIT – Real Return Portfolio – Administrative Shares
2003	0.40%	47,106		11.230805		529,038	2.65%	8.42%
PIMCO VIT – Total Return Portfolio – Administrative Shares
2007	0.40%	2,020		12.898203		26,054	4.68%	8.31%
2006	0.40%	4,340		11.909077		51,685	4.46%	3.43%
2005	0.40%	1,840		11.513866		21,186	3.32%	2.02%
2004	0.40%	28		11.286156		316	1.88%	4.46%
2003	0.40%	1,610,411		10.804064		17,398,984	2.81%	4.62%
Pioneer VCT – Pioneer High Yield Portfolio – Class I Shares
2003	0.40%	588		13.697677		8,054	7.87%	32.26%
Royce Capital Fund – Micro-Cap Portfolio
2007	0.40%	850		23.631757		20,087	1.14%	3.56%
2006	0.40%	2,174		22.819241		49,609	0.19%	20.59%
2005	0.40%	4,744		18.923254		89,772	0.54%	11.17%
2004	0.40%	3,408		17.022607		58,013	0.00%	13.39%
2003	0.40%	18,552		15.012271		278,508	0.00%	48.57%
T. Rowe Price Equity Income Portfolio – II
2007	0.40%	234		18.033915		4,220	1.44%	2.62%
2006	0.40%	950		17.574134		16,695	1.34%	18.18%
2005	0.40%	1,988		14.871262		29,564	1.39%	3.28%
2004	0.40%	1,076		14.398668		15,493	1.43%	14.16%
2003	0.40%	114,138		12.612824		1,439,603	1.61%	24.67%
T. Rowe Price Mid-Cap Growth Portfolio – II
2007	0.40%	66		23.360091		1,542	0.00%	16.75%
2006	0.40%	566		20.007898		11,324	0.00%	5.96%
2005	0.40%	1,342		18.882872		25,341	0.00%	13.98%
2004	0.40%	762		16.566668		12,624	0.00%	17.58%
2003	0.40%	654		14.089414		9,214	0.00%	37.54%
T. Rowe Price New America Growth Portfolio
2007	0.40%	216		13.607980		2,939	0.00%	13.32%
The Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares
2003	0.40%	184		8.763701		1,613	0.11%	25.50%

(Continued)

63

NATIONWIDE VL SEPARATE ACCOUNT– C (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Turner GVIT Growth Focus Fund – Class I
2003	0.40%	20	$	3.293722	$	66	0.00%	50.36%
Van Eck Worldwide Insurance Trust – Emerging Markets Fund – Initial Class
2003	0.40%	3,429		10.608507		36,377	0.11%	53.57%
Van Eck Worldwide Insurance Trust – Hard Assets Fund – Initial Class
2003	0.40%	584		11.413041		6,665	0.45%	44.50%
Van Kampen UIF – Emerging Markets Debt Portfolio – Class I
2003	0.40%	427		14.693571		6,274	0.00%	27.35%
Van Kampen UIF – Mid Cap Growth Portfolio- class I
2003	0.40%	2		5.907110		12	0.00%	41.20%
Van Kampen UIF – U.S. Real Estate Portfolio – Class I
2007	0.40%	264		29.190018		7,706	1.08%	-17.40%
2006	0.40%	678		35.340571		23,961	1.04%	37.50%
2005	0.40%	1,172		25.703042		30,124	1.11%	16.59%
2004	0.40%	818		22.046498		18,034	1.54%	35.85%
2003	0.40%	6,684		16.228488		108,471	0.00%	36.96%
Wells Fargo AVT – Opportunity FundSM
2003	0.40%	866,829		9.397220		8,145,783	0.09%	36.46%
Contract Owners’ Equity Total By Year
2007					$	269,101,390
2006					$	341,357,796
2005					$	342,050,503
2004					$	327,332,572
2003					$	383,208,644

*	This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are assessed through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
**	This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges or cost of insurance charges, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
***	This represents the total return for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Investment options with a date notation indicate the effective date of that investment option in the Account. The total return is calculated for the period indicated or from the effective date through the end of the period.

64

Report of Independent Registered Public Accounting Firm

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

    Contract Owners of Nationwide VL Separate Account-C:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide VL Separate Account-C (comprised of the sub-accounts listed in note 1(b) (collectively, “the Accounts”)) as of December 31, 2007, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2007, 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, 2007, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 18, 2008

65

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY	PRSRT STD U.S. POSTAGE PAID NATIONWIDE
HOME OFFICE: ONE NATIONWIDE PLAZA • COLUMBUS, OHIO 43215-2220

Nationwide^® is a registered federal service mark of Nationwide Mutual Insurance Company