NATIONWIDE^®

VARIABLE

ACCOUNT

Annual Report

to

Contract Owners

December 31, 2005

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

APO–717–12/05

NATIONWIDE VARIABLE ACCOUNT

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2005

Assets:
Investments at fair value:
AIM Basic Balanced Fund – Investor Class (AIMBBal) 24,995 shares (cost $299,258)	$	306,188
AIM Dynamics Fund – Investor Class (AIMDynam) 334,664 shares (cost $4,671,817)		6,094,227
AIM Small Company Growth Fund – Investor Class (AIMSmCoGr) 63,076 shares (cost $777,983)		836,387
American Century Growth Fund – Investor Class (ACGroI) 404,618 shares (cost $10,387,560)		8,327,032
American Century Income & Growth Fund – Advisor Class (ACIncGroA) 88,403 shares (cost $2,548,192)		2,679,503
American Century Income & Growth Fund – Investor Class (ACIncGroI) 227,262 shares (cost $6,597,757)		6,892,843
American Century International Growth Fund – Advisor Class (ACIntlGrA) 33,011 shares (cost $264,864)		332,752
American Century International Growth Fund – Investor Class (ACIntlGrI) 165,160 shares (cost $1,228,196)		1,666,469
American Century Short-Term Government Fund – Investor Class (ACSTGvtI) 309,477 shares (cost $2,970,488)		2,899,800
American Century Ultra ® Fund – Investor Class (ACUltraI) 534,163 shares (cost $17,412,953)		16,072,950
American Century VP – International Fund – Class IV (ACVPInt4) 77,190 shares (cost $557,762)		634,502
Credit Suisse Global Fixed Income Fund – Common Shares (CSGIFixInc) 106,420 shares (cost $1,084,865)		1,012,056
Credit Suisse Mid Cap Growth Fund – Common Shares (CSMidCpGr) 114,075 shares (cost $3,441,531)		3,795,267
Delaware Delchester Fund – Institutional Class (DeDelFund) 127,235 shares (cost $418,206)		412,243
Dreyfus A Bonds Plus, Inc. (DryABonds) 201,703 shares (cost $2,769,479)		2,731,060
Dreyfus Appreciation Fund, Inc. (DryApp) 135,360 shares (cost $4,836,414)		5,380,565
Dreyfus Emerging Leaders Fund (DryELead) 2,059 shares (cost $76,074)		85,272
Dreyfus Premier Balanced Opportunity Fund – Class Z (DryBalOpp) 102,723 shares (cost $2,006,702)		1,931,191
Dreyfus Premier Third Century Fund, Inc. – Class Z, The (Dry3dCen) 120,774 shares (cost $1,002,720)		1,045,905
Dreyfus S&P 500 Index Fund (Dry500Ix) 495,050 shares (cost $17,494,194)		17,995,068
Evergreen Equity Income Fund – Class I (EvInc) 47,388 shares (cost $1,024,060)		1,085,655
Federated Equity Income Fund – Class F Shares (FedEqInc) 5,191 shares (cost $78,263)		92,875
Federated High Yield Trust (FedHiYld) 344,775 shares (cost $2,107,250)		2,037,619
Federated Intermediate Corporate Bond Fund – Institutional Service Class (FedIntCorpBd) 84,944 shares (cost $861,516)		850,291
Federated Investment Series Funds, Inc. – Federated Bond Fund – Class F (FedBdFd) 270,148 shares (cost $2,421,511)		2,396,213

(Continued)

2

NATIONWIDE VARIABLE ACCOUNT

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

Fidelity® Advisor Balanced Fund – Class A (FidABalA) 41,370 shares (cost $626,852)	$	654,891
Fidelity® Advisor Balanced Fund – Class T (FidABalT) 71,976 shares (cost $1,102,490)		1,145,857
Fidelity® Advisor Equity Growth Fund – Class A (FidAEGroA) 19,167 shares (cost $836,347)		919,626
Fidelity® Advisor Equity Income Fund – Class A (FidAEqIncA) 149,675 shares (cost $3,788,034)		4,189,390
Fidelity® Advisor Equity Income Fund – Class T (FidAEqIncT) 150,810 shares (cost $3,811,931)		4,273,968
Fidelity® Advisor Growth Opportunities Fund – Class A (FidAGrOppA) 29,388 shares (cost $909,561)		958,337
Fidelity® Advisor Growth Opportunities Fund – Class T (FidAGrOppT) 126,812 shares (cost $4,017,004)		4,198,757
Fidelity® Advisor High Income Advantage Fund – Class T (FidAHiIncT) 263,205 shares (cost $2,544,370)		2,568,881
Fidelity® Advisor Overseas Fund – Class A (FidAOvA) 10,412 shares (cost $172,053)		202,623
Fidelity® Asset Manager™ (FidAsMgr) 200,588 shares (cost $3,075,691)		3,219,445
Fidelity® Capital & Income Fund (FidCapInc) 57,101 shares (cost $473,425)		477,937
Fidelity® Equity-Income Fund (FidEqInc) 199,711 shares (cost $9,635,331)		10,540,724
Fidelity® Magellan® Fund (FidMgln) 173,462 shares (cost $20,894,522)		18,463,244
Fidelity® Puritan® Fund (FidPurtn) 521,893 shares (cost $9,474,533)		9,775,051
Fidelity® VIP – High Income Portfolio – Initial Class (FidVIPHI) 3,388 shares (cost $20,294)		20,905
Fidelity® VIP – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R) 43,891 shares (cost $782,965)		891,871
Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A (FranMutSer) 357,703 shares (cost $7,499,489)		8,516,900
Franklin Small Mid Cap Growth Fund I – Class A (FranSmMCpGr) 66,008 shares (cost $2,085,264)		2,489,804
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 187,695 shares (cost $2,645,841)		2,928,047
Franklin VIT – Franklin Balance Sheet Investment Fund – Class A (FranBSInv) 57,200 shares (cost $3,149,642)		3,530,956
Gartmore Bond Fund – Class D (GartBond) 212,171 shares (cost $2,043,031)		2,038,961
Gartmore Bond Index Fund – Class A (GartBdIx) 24,772 shares (cost $274,026)		268,525
Gartmore Government Bond Fund – Class D (GartGvtBd) 472,561 shares (cost $4,979,852)		4,824,844
Gartmore Growth Fund – Class A (GartGrowA) 95,867 shares (cost $618,774)		671,067
Gartmore Growth Fund – Class D (GartGrowD) 165,421 shares (cost $994,512)		1,179,451
Gartmore GVIT ID Aggressive Fund – Class II (GVITIDAgg2) 23,502 shares (cost $264,021)		281,323
Gartmore GVIT ID Conservative Fund – Class II (GVITIDCon2) 3,079 shares (cost $31,984)		31,620
Gartmore GVIT ID Moderate Fund – Class II (GVITIDMod2) 79,550 shares (cost $871,819)		906,865
Gartmore GVIT ID Moderately Aggressive Fund – Class II (GVITIDModAg2) 81,867 shares (cost $942,919)		969,304

(Continued)

3

NATIONWIDE VARIABLE ACCOUNT

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

Gartmore GVIT ID Moderately Conservative Fund – Class II (GVITIDModCon2) 7,920 shares (cost $86,378)	$	86,408
Gartmore GVIT J.P. Morgan Balanced Fund – Class I (GVITJPBal) 23,047 shares (cost $223,495)		231,159
Gartmore ID Aggressive Fund – Service Class (GartIDAgg) 134,631 shares (cost $1,191,949)		1,304,578
Gartmore ID Conservative Fund – Service Class (GartIDCon) 161,610 shares (cost $1,637,115)		1,640,346
Gartmore ID Moderate Fund – Service Class (GartIDMod) 733,848 shares (cost $7,092,859)		7,507,260
Gartmore ID Moderately Aggressive Fund – Service Class (GartIDModAgg) 298,997 shares (cost $2,822,560)		2,998,942
Gartmore ID Moderately Conservative Fund – Service Class (GartIDModCon) 186,715 shares (cost $1,857,493)		1,906,357
Gartmore International Index Fund – Class A (GartIntlndx) 2,140 shares (cost $16,053)		19,366
Gartmore Large Cap Value Fund – Class A (GartLgCpVal) 156,825 shares (cost $1,990,800)		2,032,457
Gartmore Mid Cap Market Index Fund – Class A (GartMdCpMkt) 66,202 shares (cost $860,056)		977,797
Gartmore Money Market Fund – Prime Shares (GartMyMkt) 9,165,506 shares (cost $9,165,506)		9,165,506
Gartmore Money Market Fund – Service Class (GartMyMktS) 4,750,652 shares (cost $4,750,652)		4,750,652
Gartmore Nationwide Fund – Class D (GartNWFund) 294,695 shares (cost $5,740,023)		5,534,374
Gartmore S&P 500 Index Fund – Service Class (GartSP500Indx) 380,488 shares (cost $3,643,158)		4,044,588
Gartmore Small Cap Fund – Class A (GartSmCap) 266,372 shares (cost $4,428,153)		4,645,526
Gartmore Small Cap Index Fund – Class A (GartSmCapIx) 65,865 shares (cost $743,645)		785,114
Gartmore Value Opportunities Fund – Class A (GartValOpp) 23,491 shares (cost $349,867)		321,359
Janus Adviser Balanced Fund (JanBal) 54,227 shares (cost $1,257,006)		1,418,030
Janus Adviser International Growth Fund (JanIntlGr) 1,288 shares (cost $35,438)		48,771
Janus Adviser Worldwide Fund – Class S (JanWorld) 21,138 shares (cost $532,771)		612,576
Janus Fund (JanFund) 308,229 shares (cost $9,321,502)		7,869,094
Janus Twenty Fund (Jan20Fd) 484,250 shares (cost $29,752,925)		23,689,491
Janus Worldwide Fund (JanWrldwde) 147,251 shares (cost $8,259,768)		6,381,854
Lazard Small Cap Portfolio – Open Shares (LazSmCap) 190,905 shares (cost $3,488,167)		2,918,940
MFS® Strategic Income Fund – Class A (MFSStratIncA) 152,851 shares (cost $1,027,075)		1,022,575
Neuberger Berman EF – Guardian Fund – Investor Class Shares (NBEFGuard) 172,155 shares (cost $2,539,866)		3,071,246
Neuberger Berman EF – Partners Fund – Investor Class Shares (NBEFPart) 255,631 shares (cost $5,827,607)		7,170,460
Neuberger Berman ET – Genesis Fund – Trust Class Shares (NBETGen) 377,303 shares (cost $14,851,718)		18,318,049
Neuberger Berman ET – Guardian Fund – Trust Class Shares (NBETGuard) 21,618 shares (cost $229,673)		303,728

(Continued)

4

NATIONWIDE VARIABLE ACCOUNT

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

Neuberger Berman ET – Partners Fund – Trust Class Shares (NBETPart) 26,268 shares (cost $513,482)	$	568,694
Neuberger Berman ET – Socially Responsive Fund – Trust Class Shares (NBETSocRes) 33,353 shares (cost $503,591)		524,976
Neuberger Berman Limited Maturity Bond Fund® – Investor Class Shares (NBLtdMat) 112,786 shares (cost $1,075,401)		1,029,733
Oppenheimer Capital Appreciation Fund A (OppCapApA) 67,309 shares (cost $2,716,607)		2,888,228
Oppenheimer Champion Income Fund A (OppChpInc) 30,482 shares (cost $287,017)		284,395
Oppenheimer Global Fund A (OppGlob) 221,148 shares (cost $10,959,954)		14,750,602
Oppenheimer Global Securities Fund/VA – Class 4 (OppGlSec4) 171,418 shares (cost $4,689,389)		5,682,492
Oppenheimer Strategic Income Fund – Class A (OppStratInc) 147,428 shares (cost $627,781)		617,723
Phoenix Balanced Fund – Class A (PhxBalFd) 77,599 shares (cost $1,105,515)		1,129,071
PIMCO Total Return Fund – Class A (PimTotRet) 398,849 shares (cost $4,268,876)		4,187,913
Putnam International Equity Fund – Class A (PIntEq) 163 shares (cost $3,498)		4,255
Putnam Voyager Fund – Class A (PVoyager) 9,397 shares (cost $147,062)		163,509
Templeton Foreign Fund – Class A (TemForFd) 447,589 shares (cost $4,745,551)		5,675,423
Van Kampen Growth and Income Fund – Class A (VKGrInc) 107,588 shares (cost $2,054,268)		2,209,859
Van Kampen Growth Fund – Class A (VKGrowth) 18,513 shares (cost $434,084)		464,307
Van Kampen Real Estate Securities Fund – Class A (VKRealEstSec) 57,561 shares (cost $1,312,104)		1,422,911
Waddell & Reed Advisors Small Cap Fund, Inc. – Class A (WRAdSmCap) 16,262 shares (cost $222,879)		243,443
Wells Fargo Advantage Funds – Common Stock Fund – Class Z (WFComStk) 196,313 shares (cost $3,922,980)		4,273,737
Wells Fargo Advantage Funds – Growth and Income Fund (WFGrInc) 12,053 shares (cost $221,373)		251,425
Wells Fargo Advantage Funds – Growth Fund (WFGrowth) 8,619 shares (cost $175,679)		181,774
Wells Fargo Advantage Funds – Large Cap Growth Fund (WFLgCpGr) 84,009 shares (cost $1,912,425)		2,061,581
Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z (WFMidCpGr) 64,872 shares (cost $384,343)		397,018
Total investments		348,522,779
Accounts receivable		18,463
Total assets		348,541,242
Accounts payable		–
Contract owners’ equity (note 4)	$	348,541,242

See accompanying notes to financial statements.

5

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS

Year Ended December 31, 2005

Investment activity:	Total			AIMBBal		AIMDynam		AIMSmCoGr		AIMTotRet		ACGroI		ACIncGroA		ACIncGroI
Reinvested dividends	$	4,507,542		2,809		–		–		2,959		34,629		42,944		135,462
Mortality and expense risk charges (note 2)		(4,291,929	)	(1,677	)	(74,036	)	(5,551	)	(2,055	)	(108,873	)	(29,004	)	(92,788	)
Net investment income (loss)		215,613		1,132		(74,036	)	(5,551	)	904		(74,244	)	13,940		42,674
Proceeds from mutual fund shares sold		86,766,363		13,506		1,353,237		131,230		346,838		1,124,528		352,687		1,327,905
Cost of mutual fund shares sold		(92,813,421	)	(13,353	)	(1,632,510	)	(118,838	)	(335,865	)	(1,653,103	)	(320,502	)	(1,391,217	)
Realized gain (loss) on investments		(6,047,058	)	153		(279,273	)	12,392		10,973		(528,575	)	32,185		(63,312	)
Change in unrealized gain (loss) on investments		17,060,505		6,929		833,628		8,431		(16,111	)	883,547		(56,598	)	(18,923	)
Net gain (loss) on investments		11,013,447		7,082		554,355		20,823		(5,138	)	354,972		(24,413	)	(82,235	)
Reinvested capital gains		7,651,107		–		–		–		–		–		97,275		269,498
Net increase (decrease) in contract owners’ equity resulting from operations	$	18,880,167		8,214		480,319		15,272		(4,234	)	280,728		86,802		229,937
Investment activity:	ACIntlGrA			ACIntlGrI		ACSTGvtI		ACUltraI		ACVPInt4		CSGIFixInc		CSMidCpGr		DeDelFund
Reinvested dividends	$	4,924		28,906		92,115		19,836		4,296		21,975		–		40,106
Mortality and expense risk charges (note 2)		(3,463	)	(22,375	)	(35,550	)	(213,890	)	(6,828	)	(13,605	)	(51,461	)	(6,638	)
Net investment income (loss)		1,461		6,531		56,565		(194,054	)	(2,532	)	8,370		(51,461	)	33,468
Proceeds from mutual fund shares sold		33,006		404,658		685,535		4,342,334		405,746		203,497		677,035		294,413
Cost of mutual fund shares sold		(28,713	)	(286,114	)	(701,607	)	(5,945,791	)	(370,823	)	(215,797	)	(1,098,779	)	(276,184	)
Realized gain (loss) on investments		4,293		118,544		(16,072	)	(1,603,457	)	34,923		(12,300	)	(421,744	)	18,229
Change in unrealized gain (loss) on investments		29,729		57,725		(27,201	)	1,865,320		26,297		(71,965	)	682,766		(40,520	)
Net gain (loss) on investments		34,022		176,269		(43,273	)	261,863		61,220		(84,265	)	261,022		(22,291	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	35,483		182,800		13,292		67,809		58,688		(75,895	)	209,561		11,177

(Continued)

6

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	DryABonds			DryApp		DryELead		DryBalOpp		Dry3dCen		Dry500Ix		EvInc		FedEqInc
Reinvested dividends	$	135,839		72,805		–		32,065		4,019		237,761		17,000		1,787
Mortality and expense risk charges (note 2)		(39,321	)	(65,790	)	(1,002	)	(25,658	)	(14,357	)	(239,965	)	(14,392	)	(1,109	)
Net investment income (loss)		96,518		7,015		(1,002	)	6,407		(10,338	)	(2,204	)	2,608		678
Proceeds from mutual fund shares sold		793,725		1,086,091		12,800		358,435		200,280		3,050,192		218,724		12,960
Cost of mutual fund shares sold		(801,020	)	(1,053,637	)	(10,990	)	(366,670	)	(308,075	)	(3,487,685	)	(194,579	)	(10,815	)
Realized gain (loss) on investments		(7,295	)	32,454		1,810		(8,235	)	(107,795	)	(437,493	)	24,145		2,145
Change in unrealized gain (loss) on investments		(59,042	)	119,250		(7,234	)	(81,935	)	141,094		990,794		(47,434	)	(1,498	)
Net gain (loss) on investments		(66,337	)	151,704		(5,424	)	(90,170	)	33,299		553,301		(23,289	)	647
Reinvested capital gains		–		–		12,533		15,231		–		–		48,651		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	30,181		158,719		6,107		(68,532	)	22,961		551,097		27,970		1,325
Investment activity:	FedHiYld			FedIntCorpBd		FedBdFd		FidABalA		FidABalT		FidAEGroA		FidAEqIncA		FidAEqIncT
Reinvested dividends	$	165,043		42,965		136,994		13,892		20,225		–		38,870		31,162
Mortality and expense risk charges (note 2)		(27,015	)	(12,803	)	(31,203	)	(7,945	)	(15,182	)	(11,705	)	(44,309	)	(55,460	)
Net investment income (loss)		138,028		30,162		105,791		5,947		5,043		(11,705	)	(5,439	)	(24,298	)
Proceeds from mutual fund shares sold		1,124,024		443,829		451,745		223,418		302,071		471,896		844,123		787,972
Cost of mutual fund shares sold		(1,142,630	)	(451,834	)	(425,914	)	(218,612	)	(316,149	)	(422,061	)	(646,763	)	(682,698	)
Realized gain (loss) on investments		(18,606	)	(8,005	)	25,831		4,806		(14,078	)	49,835		197,360		105,274
Change in unrealized gain (loss) on investments		(93,689	)	(13,176	)	(118,798	)	(22,000	)	(14,689	)	3,625		(195,150	)	(104,829	)
Net gain (loss) on investments		(112,295	)	(21,181	)	(92,967	)	(17,194	)	(28,767	)	53,460		2,210		445
Reinvested capital gains		–		–		–		35,865		62,490		–		217,246		221,059
Net increase (decrease) in contract owners’ equity resulting from operations	$	25,733		8,981		12,824		24,618		38,766		41,755		214,017		197,206

(Continued)

7

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	FidAGrOppA			FidAGrOppT		FidAHiIncT		FidAOvA		FidAsMgr		FidCapInc		FidEqInc		FidMgln
Reinvested dividends	$	1,732		873		189,812		1,990		79,615		29,932		167,328		172,110
Mortality and expense risk charges (note 2)		(7,264	)	(52,397	)	(34,548	)	(2,436	)	(44,493	)	(6,410	)	(137,223	)	(246,780	)
Net investment income (loss)		(5,532	)	(51,524	)	155,264		(446	)	35,122		23,522		30,105		(74,670	)
Proceeds from mutual fund shares sold		722,307		871,661		928,748		97,523		912,534		83,063		1,537,876		3,370,656
Cost of mutual fund shares sold		(709,320	)	(1,258,903	)	(885,869	)	(88,008	)	(1,010,251	)	(99,531	)	(1,512,618	)	(4,124,630	)
Realized gain (loss) on investments		12,987		(387,242	)	42,879		9,515		(97,717	)	(16,468	)	25,258		(753,974	)
Change in unrealized gain (loss) on investments		13,440		698,681		(120,377	)	10,706		58,469		9,528		(34,410	)	1,195,038
Net gain (loss) on investments		26,427		311,439		(77,498	)	20,221		(39,248	)	(6,940	)	(9,152	)	441,064
Reinvested capital gains		–		–		7,806		3,125		80,193		–		419,075		513,479
Net increase (decrease) in contract owners’ equity resulting from operations	$	20,895		259,915		85,572		22,900		76,067		16,582		440,028		879,873
Investment activity:	FidPurtn			FidVIPHI		FidVIPOvS2R		FranMutSer		FranSmMCpGr		FrVIPForSec3		FranBSInv		GartBond
Reinvested dividends	$	261,504		3,058		1,904		113,824		2,833		34,340		25,250		95,707
Mortality and expense risk charges (note 2)		(132,716	)	(265	)	(5,384	)	(100,048	)	(25,235	)	(32,511	)	(32,869	)	(27,239	)
Net investment income (loss)		128,788		2,793		(3,480	)	13,776		(22,402	)	1,829		(7,619	)	68,468
Proceeds from mutual fund shares sold		1,931,269		285		364,686		2,085,899		1,066,199		1,312,322		630,664		513,480
Cost of mutual fund shares sold		(2,000,254	)	(346	)	(329,748	)	(1,704,483	)	(934,571	)	(1,127,039	)	(391,927	)	(499,950	)
Realized gain (loss) on investments		(68,985	)	(61	)	34,938		381,416		131,628		185,283		238,737		13,530
Change in unrealized gain (loss) on investments		(52,409	)	(2,447	)	60,898		(47,838	)	79,027		41,095		(76,434	)	(43,131	)
Net gain (loss) on investments		(121,394	)	(2,508	)	95,836		333,578		210,655		226,378		162,303		(29,601	)
Reinvested capital gains		307,367		–		1,803		369,251		–		–		132,540		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	314,761		285		94,159		716,605		188,253		228,207		287,224		38,867

(Continued)

8

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GartBdIx			GartGvtBd		GartGrowA		GartGrowD		GVITIDAgg2		GVITIDCon2		GVITIDMod2		GVITIDModAg2
Reinvested dividends	$	9,817		213,828		219		1,532		4,500		335		17,340		15,501
Mortality and expense risk charges (note 2)		(3,032	)	(68,194	)	(6,564	)	(15,480	)	(2,777	)	(109	)	(9,072	)	(8,530	)
Net investment income (loss)		6,785		145,634		(6,345	)	(13,948	)	1,723		226		8,268		6,971
Proceeds from mutual fund shares sold		47,373		1,996,327		191,164		220,779		4,771		4,114		40,633		138,198
Cost of mutual fund shares sold		(48,319	)	(2,114,791	)	(182,006	)	(193,938	)	(4,119	)	(4,108	)	(37,698	)	(127,290	)
Realized gain (loss) on investments		(946	)	(118,464	)	9,158		26,841		652		6		2,935		10,908
Change in unrealized gain (loss) on investments		(4,259	)	53,690		19,431		47,195		12,652		(369	)	7,847		7,833
Net gain (loss) on investments		(5,205	)	(64,774	)	28,589		74,036		13,304		(363	)	10,782		18,741
Reinvested capital gains		–		4,002		–		–		4,918		501		13,059		16,452
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,580		84,862		22,244		60,088		19,945		364		32,109		42,164
Investment activity:	GVITIDModCon2			GVITJPBal		GartIDAgg		GartIDCon		GartIDMod		GartIDModAgg		GartIDModCon		GartIntlndx
Reinvested dividends	$	1,343		4,107		20,668		39,919		150,034		52,886		43,085		483
Mortality and expense risk charges (note 2)		(506	)	(2,193	)	(11,747	)	(16,575	)	(72,242	)	(28,379	)	(17,912	)	(373	)
Net investment income (loss)		837		1,914		8,921		23,344		77,792		24,507		25,173		110
Proceeds from mutual fund shares sold		9,481		47,086		154,128		223,813		366,533		316,394		292,069		26,556
Cost of mutual fund shares sold		(9,393	)	(39,250	)	(105,255	)	(212,773	)	(298,549	)	(298,907	)	(269,576	)	(23,481	)
Realized gain (loss) on investments		88		7,836		48,873		11,040		67,984		17,487		22,493		3,075
Change in unrealized gain (loss) on investments		(87	)	(6,608	)	(6,753	)	(23,115	)	93,794		81,675		(20,980	)	(1,412	)
Net gain (loss) on investments		1		1,228		42,120		(12,075	)	161,778		99,162		1,513		1,663
Reinvested capital gains		1,099		–		24,647		19,318		79,895		39,361		30,172		530
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,937		3,142		75,688		30,587		319,465		163,030		56,858		2,303

(Continued)

9

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	GartLgCpVal			GartMdCpMkt		GartMyMkt		GartMyMktS		GartNWFund		GartSP500Indx		GartSmCap		GartSmCapIx
Reinvested dividends	$	18,652		8,163		271,409		140,411		47,132		47,541		–		6,355
Mortality and expense risk charges (note 2)		(23,143	)	(9,892	)	(132,584	)	(63,555	)	(72,883	)	(45,419	)	(45,916	)	(8,300	)
Net investment income (loss)		(4,491	)	(1,729	)	138,825		76,856		(25,751	)	2,122		(45,916	)	(1,945	)
Proceeds from mutual fund shares sold		1,059,297		186,504		5,796,377		7,699,891		976,629		772,922		1,858,759		222,793
Cost of mutual fund shares sold		(898,389	)	(123,174	)	(5,796,377	)	(7,699,891	)	(1,409,195	)	(570,700	)	(1,656,351	)	(201,978	)
Realized gain (loss) on investments		160,908		63,330		–		–		(432,566	)	202,222		202,408		20,815
Change in unrealized gain (loss) on investments		(147,854	)	(13,146	)	–		–		59,267		(110,651	)	(5,744	)	(28,794	)
Net gain (loss) on investments		13,054		50,184		–		–		(373,299	)	91,571		196,664		(7,979	)
Reinvested capital gains		88,056		41,666		–		–		719,667		28,520		513,742		30,661
Net increase (decrease) in contract owners’ equity resulting from operations	$	96,619		90,121		138,825		76,856		320,617		122,213		664,490		20,737
Investment activity:	GartValOpp			JanBal		JanIntlGr		JanWorld		JanFund		Jan20Fd		JanWrldwde		LazSmCap
Reinvested dividends	$	580		19,675		283		4,903		5,580		49,685		73,143		–
Mortality and expense risk charges (note 2)		(4,525	)	(14,907	)	(562	)	(8,169	)	(108,057	)	(302,202	)	(88,266	)	(38,960	)
Net investment income (loss)		(3,945	)	4,768		(279	)	(3,266	)	(102,477	)	(252,517	)	(15,123	)	(38,960	)
Proceeds from mutual fund shares sold		401,555		182,583		13,803		260,250		2,103,148		3,723,042		1,742,294		996,286
Cost of mutual fund shares sold		(414,039	)	(160,542	)	(12,716	)	(225,024	)	(3,926,789	)	(5,994,293	)	(3,296,249	)	(821,277	)
Realized gain (loss) on investments		(12,484	)	22,041		1,087		35,226		(1,823,641	)	(2,271,251	)	(1,553,955	)	175,009
Change in unrealized gain (loss) on investments		(5,144	)	27,828		10,847		(5,189	)	2,102,293		4,271,134		1,830,230		(742,467	)
Net gain (loss) on investments		(17,628	)	49,869		11,934		30,037		278,652		1,999,883		276,275		(567,458	)
Reinvested capital gains		42,554		28,611		–		–		–		–		–		667,901
Net increase (decrease) in contract owners’ equity resulting from operations	$	20,981		83,248		11,655		26,771		176,175		1,747,366		261,152		61,483

(Continued)

10

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	MFSStratIncA			NBEFGuard		NBEFPart		NBETGen		NBETGuard		NBETPart		NBETSocRes		NBLtdMat
Reinvested dividends	$	57,790		20,625		64,073		–		1,706		2,364		1,930		44,715
Mortality and expense risk charges (note 2)		(12,535	)	(40,438	)	(80,351	)	(200,131	)	(3,977	)	(4,476	)	(4,176	)	(15,736	)
Net investment income (loss)		45,255		(19,813	)	(16,278	)	(200,131	)	(2,271	)	(2,112	)	(2,246	)	28,979
Proceeds from mutual fund shares sold		163,209		631,257		769,174		2,192,241		125,332		141,756		20,458		337,782
Cost of mutual fund shares sold		(150,527	)	(710,289	)	(722,096	)	(1,669,073	)	(107,129	)	(106,775	)	(17,548	)	(355,064	)
Realized gain (loss) on investments		12,682		(79,032	)	47,078		523,168		18,203		34,981		2,910		(17,282	)
Change in unrealized gain (loss) on investments		(50,095	)	303,494		603,383		1,483,301		4,987		3,477		16,185		(9,279	)
Net gain (loss) on investments		(37,413	)	224,462		650,461		2,006,469		23,190		38,458		19,095		(26,561	)
Reinvested capital gains		–		–		312,361		404,316		–		18,900		15,231		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	7,842		204,649		946,544		2,210,654		20,919		55,246		32,080		2,418
Investment activity:	OppCapApA			OppChpInc		OppGlob		OppGlSec4		OppStratInc		PhxBalFd		PimTotRet		PIntEq
Reinvested dividends	$	16,669		13,515		93,231		34,820		37,758		21,930		127,753		84
Mortality and expense risk charges (note 2)		(29,505	)	(2,217	)	(186,156	)	(53,241	)	(5,462	)	(14,201	)	(45,540	)	(55	)
Net investment income (loss)		(12,836	)	11,298		(92,925	)	(18,421	)	32,296		7,729		82,213		29
Proceeds from mutual fund shares sold		1,690,340		34,639		3,210,234		678,051		102,700		167,076		1,320,952		58
Cost of mutual fund shares sold		(1,494,786	)	(33,285	)	(2,344,305	)	(567,317	)	(97,715	)	(167,572	)	(1,334,936	)	(52	)
Realized gain (loss) on investments		195,554		1,354		865,929		110,734		4,985		(496	)	(13,984	)	6
Change in unrealized gain (loss) on investments		(98,314	)	(9,339	)	470,761		532,390		(23,809	)	(30,690	)	(43,908	)	386
Net gain (loss) on investments		97,240		(7,985	)	1,336,690		643,124		(18,824	)	(31,186	)	(57,892	)	392
Reinvested capital gains		–		–		436,586		–		–		25,687		32,815		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	84,404		3,313		1,680,351		624,703		13,472		2,230		57,136		421

(Continued)

11

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2005

Investment activity:	PVoyager			StrMidCap		TemForFd		VKGrInc		VKGrowth		VKRealEstSec		WRAdSmCap		WFComStk
Reinvested dividends	$	1,162		–		92,075		24,647		–		17,342		–		–
Mortality and expense risk charges (note 2)		(1,572	)	(1,195	)	(71,609	)	(20,566	)	(2,681	)	(12,818	)	(2,443	)	(52,885	)
Net investment income (loss)		(410	)	(1,195	)	20,466		4,081		(2,681	)	4,524		(2,443	)	(52,885	)
Proceeds from mutual fund shares sold		15,217		674,396		1,369,661		208,205		97,313		180,566		52,542		975,253
Cost of mutual fund shares sold		(14,070	)	(620,711	)	(1,100,820	)	(163,272	)	(80,055	)	(144,496	)	(43,437	)	(808,846	)
Realized gain (loss) on investments		1,147		53,685		268,841		44,933		17,258		36,070		9,105		166,407
Change in unrealized gain (loss) on investments		8,740		(55,480	)	(79,944	)	(16,196	)	15,893		64,125		(2,594	)	(333,946	)
Net gain (loss) on investments		9,887		(1,795	)	188,897		28,737		33,151		100,195		6,511		(167,539	)
Reinvested capital gains		–		–		292,099		137,193		12,739		82,875		22,148		615,613
Net increase (decrease) in contract owners’ equity resulting from operations	$	9,477		(2,990	)	501,462		170,011		43,209		187,594		26,216		395,189
Investment activity:	WFGrInc			WFGrowth		WFLgCpGr		WFMidCpGr
Reinvested dividends	$	1,044		–		–		–
Mortality and expense risk charges (note 2)		(2,854	)	(479	)	(25,797	)	(4,980	)
Net investment income (loss)		(1,810	)	(479	)	(25,797	)	(4,980	)
Proceeds from mutual fund shares sold		40,785		52,832		374,041		557,129
Cost of mutual fund shares sold		(32,897	)	(49,736	)	(580,891	)	(512,508	)
Realized gain (loss) on investments		7,888		3,096		(206,850	)	44,621
Change in unrealized gain (loss) on investments		(14,240	)	4,674		352,545		12,675
Net gain (loss) on investments		(6,352	)	7,770		145,695		57,296
Reinvested capital gains		–		–		–		32,725
Net increase (decrease) in contract owners’ equity resulting from operations	$	(8,162	)	7,291		119,898		85,041

See accompanying notes to financial statements.

12

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2005 and 2004

	Total					AIMBBal			AIMDynam				AIMSmCoGr
Investment activity:	2005			2004		2005		2004	2005		2004		2005		2004
Net investment income (loss)	$	215,613		(75,031	)	1,132		–	(74,036	)	(79,059	)	(5,551	)	(6,051	)
Realized gain (loss) on investments		(6,047,058	)	(11,071,366	)	153		–	(279,273	)	(1,297,653	)	12,392		8,784
Change in unrealized gain (loss) on investments		17,060,505		38,567,086		6,929		–	833,628		1,972,234		8,431		48,684
Reinvested capital gains		7,651,107		3,119,972		–		–	–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		18,880,167		30,540,661		8,214		–	480,319		595,522		15,272		51,417
Equity transactions:
Purchase payments received from contract owners (note 3)		38,318,495		39,747,759		3,315		–	553,700		569,959		40,119		54,377
Transfers between funds		–		–		302,495		–	(196,601	)	(734,780	)	312,210		23,951
Redemptions (note 3)		(51,464,050	)	(54,016,120	)	(7,814	)	–	(903,135	)	(795,250	)	(56,619	)	(171,880	)
Annuity benefits		(10,761	)	(10,445	)	–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(369,724	)	(397,666	)	–		–	(7,484	)	(8,655	)	–		–
Contingent deferred sales charges (note 2)		(376,282	)	(382,282	)	(29	)	–	(7,898	)	(11,388	)	(1,002	)	(536	)
Adjustments to maintain reserves		24,932		(1,568	)	1,334		–	(165	)	2,802		(128	)	97
Net equity transactions		(13,877,390	)	(15,060,322	)	299,301		–	(561,583	)	(977,312	)	294,580		(93,991	)
Net change in contract owners’ equity		5,002,777		15,480,339		307,515		–	(81,264	)	(381,790	)	309,852		(42,574	)
Contract owners’ equity beginning of period		343,538,465		328,058,126		–		–	6,175,372		6,557,162		526,465		569,039
Contract owners’ equity end of period	$	348,541,242		343,538,465		307,515		–	6,094,108		6,175,372		836,317		526,465
CHANGES IN UNITS:
Beginning units		20,285,035		20,918,239		–		–	721,091		833,176		76,283		92,094
Units purchased		6,524,700		9,927,899		31,384		–	145,058		118,918		60,338		43,077
Units redeemed		(6,766,224	)	(10,561,103	)	(1,441	)	–	(193,429	)	(231,003	)	(20,322	)	(58,888	)
Ending units		20,043,511		20,285,035		29,943		–	672,720		721,091		116,299		76,283

(Continued)

13

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	AIMTotRet					ACGroI				ACIncGroA				ACIncGroI
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	904		620		(74,244	)	(106,507	)	13,940		13,480		42,674		51,160
Realized gain (loss) on investments		10,973		(9,695	)	(528,575	)	(396,835	)	32,185		119,851		(63,312	)	(116,326	)
Change in unrealized gain (loss) on investments		(16,111	)	17,770		883,547		1,196,644		(56,598	)	110,906		(18,923	)	848,319
Reinvested capital gains		–		–		–		–		97,275		–		269,498		–
Net increase (decrease) in contract owners’ equity resulting from operations		(4,234	)	8,695		280,728		693,302		86,802		244,237		229,937		783,153
Equity transactions:
Purchase payments received from contract owners (note 3)		3,613		13,333		430,615		470,456		352,701		706,816		421,962		572,017
Transfers between funds		(322,918	)	(66,368	)	(177,824	)	53,283		146,561		830,341		(20,711	)	(55,612	)
Redemptions (note 3)		(15,075	)	(27,619	)	(958,834	)	(924,670	)	(288,290	)	(1,481,003	)	(1,239,200	)	(968,765	)
Annuity benefits		–		–		(10,422	)	(10,130	)	–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(11,249	)	(12,285	)	–		–		(11,225	)	(11,658	)
Contingent deferred sales charges (note 2)		(292	)	(740	)	(6,332	)	(8,381	)	(3,450	)	(1,914	)	(10,480	)	(9,053	)
Adjustments to maintain reserves		(26	)	(16	)	3,422		4,120		(81	)	(17	)	3		356
Net equity transactions		(334,698	)	(81,410	)	(730,624	)	(427,607	)	207,441		54,223		(859,651	)	(472,715	)
Net change in contract owners’ equity		(338,932	)	(72,715	)	(449,896	)	265,695		294,243		298,460		(629,714	)	310,438
Contract owners’ equity beginning of period		338,932		411,647		8,775,738		8,510,043		2,385,190		2,086,730		7,522,589		7,212,151
Contract owners’ equity end of period	$	–		338,932		8,325,842		8,775,738		2,679,433		2,385,190		6,892,875		7,522,589
CHANGES IN UNITS:
Beginning units		34,578		43,049		216,274		199,202		261,253		254,671		404,012		431,936
Units purchased		667		2,339		39,913		52,660		65,536		298,844		40,219		66,179
Units redeemed		(35,245	)	(10,810	)	(37,608	)	(35,588	)	(42,857	)	(292,262	)	(86,323	)	(94,103	)
Ending units		–		34,578		218,579		216,274		283,932		261,253		357,908		404,012

(Continued)

14

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACIntlGrA					ACIntlGrI				ACSTGvtI				ACUltraI
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	1,461		(3,408	)	6,531		(7,318	)	56,565		22,480		(194,054	)	(229,910	)
Realized gain (loss) on investments		4,293		74,317		118,544		189,041		(16,072	)	(10,254	)	(1,603,457	)	(779,076	)
Change in unrealized gain (loss) on investments		29,729		(2,414	)	57,725		50,554		(27,201	)	(29,139	)	1,865,320		2,586,317
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		35,483		68,495		182,800		232,277		13,292		(16,913	)	67,809		1,577,331
Equity transactions:
Purchase payments received from contract owners (note 3)		–		23,237		901		68,838		429,530		375,041		1,225,132		1,356,020
Transfers between funds		(13,140	)	(798,159	)	(195,870	)	(194,798	)	(122,199	)	(148,843	)	(1,056,681	)	(599,961	)
Redemptions (note 3)		(16,246	)	(27,636	)	(175,818	)	(310,729	)	(494,273	)	(574,531	)	(2,299,841	)	(2,631,224	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(2,618	)	(3,298	)	(2,637	)	(3,058	)	(20,614	)	(23,566	)
Contingent deferred sales charges (note 2)		(114	)	(302	)	(796	)	(1,818	)	(4,171	)	(5,480	)	(20,645	)	(21,017	)
Adjustments to maintain reserves		(36	)	(17	)	2		246		(224	)	(164	)	(72	)	625
Net equity transactions		(29,536	)	(802,877	)	(374,199	)	(441,559	)	(193,974	)	(357,035	)	(2,172,721	)	(1,919,123	)
Net change in contract owners’ equity		5,947		(734,382	)	(191,399	)	(209,282	)	(180,682	)	(373,948	)	(2,104,912	)	(341,792	)
Contract owners’ equity beginning of period		326,791		1,061,173		1,857,828		2,067,110		3,079,892		3,453,840		18,177,859		18,519,651
Contract owners’ equity end of period	$	332,738		326,791		1,666,429		1,857,828		2,899,210		3,079,892		16,072,947		18,177,859
CHANGES IN UNITS:
Beginning units		46,456		172,001		91,337		115,663		173,163		194,103		1,146,821		1,249,922
Units purchased		–		177,802		42		19,898		39,455		37,318		319,769		185,119
Units redeemed		(4,169	)	(303,347	)	(18,144	)	(44,224	)	(42,721	)	(58,258	)	(455,164	)	(288,220	)
Ending units		42,287		46,456		73,235		91,337		169,897		173,163		1,011,426		1,146,821

(Continued)

15

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	ACVPInt4					CSGIFixInc				CSMidCpGr				DeDelFund
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(2,532	)	(1,774	)	8,370		57,878		(51,461	)	(50,125	)	33,468		31,493
Realized gain (loss) on investments		34,923		2,351		(12,300	)	3,684		(421,744	)	(703,537	)	18,229		46,974
Change in unrealized gain (loss) on investments		26,297		50,442		(71,965	)	18,194		682,766		1,172,232		(40,520	)	(18,302	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		58,688		51,019		(75,895	)	79,756		209,561		418,570		11,177		60,165
Equity transactions:
Purchase payments received from contract owners (note 3)		199,757		146,908		111,287		90,382		214,641		287,085		44,364		52,488
Transfers between funds		(183,794	)	445,575		39,614		35,069		(68,465	)	80,753		(188,598	)	26,838
Redemptions (note 3)		(67,302	)	(14,800	)	(57,430	)	(222,963	)	(514,850	)	(542,792	)	(57,741	)	(97,200	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(544	)	(126	)	(1,078	)	(1,195	)	(5,216	)	(5,610	)	(667	)	(679	)
Contingent deferred sales charges (note 2)		(245	)	(10	)	(259	)	(2,376	)	(1,881	)	(2,702	)	(219	)	(232	)
Adjustments to maintain reserves		(4	)	(622	)	(25	)	30		10		147		92		(199	)
Net equity transactions		(52,132	)	576,925		92,109		(101,053	)	(375,761	)	(183,119	)	(202,769	)	(18,984	)
Net change in contract owners’ equity		6,556		627,944		16,214		(21,297	)	(166,200	)	235,451		(191,592	)	41,181
Contract owners’ equity beginning of period		627,944		–		995,819		1,017,116		3,961,483		3,726,032		603,572		562,391
Contract owners’ equity end of period	$	634,500		627,944		1,012,033		995,819		3,795,283		3,961,483		411,980		603,572
CHANGES IN UNITS:
Beginning units		55,739		–		65,791		72,744		268,276		282,864		40,881		43,328
Units purchased		33,103		59,438		21,306		29,209		27,462		52,247		6,877		22,852
Units redeemed		(38,332	)	(3,699	)	(15,231	)	(36,162	)	(52,170	)	(66,835	)	(20,506	)	(25,299	)
Ending units		50,510		55,739		71,866		65,791		243,568		268,276		27,252		40,881

(Continued)

16

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryABonds					DryApp				DryBal			DryELead
Investment activity:	2005			2004		2005		2004		2005	2004		2005		2004
Net investment income (loss)	$	96,518		96,429		7,015		5,949		–	12,698		(1,002	)	(1,039	)
Realized gain (loss) on investments		(7,295	)	(12,099	)	32,454		(70,387	)	–	18,359		1,810		1,179
Change in unrealized gain (loss) on investments		(59,042	)	(33,614	)	119,250		277,706		–	36,775		(7,234	)	10,509
Reinvested capital gains		–		–		–		–		–	–		12,533		–
Net increase (decrease) in contract owners’ equity resulting from operations		30,181		50,716		158,719		213,268		–	67,832		6,107		10,649
Equity transactions:
Purchase payments received from contract owners (note 3)		210,614		272,898		881,027		713,264		–	191,005		–		36
Transfers between funds		(80,137	)	(176,609	)	(328,129	)	22,397		–	(2,062,137	)	(10,142	)	(10,777	)
Redemptions (note 3)		(654,356	)	(362,855	)	(569,080	)	(552,546	)	–	(172,505	)	(1,646	)	(9,494	)
Annuity benefits		–		–		–		–		–	–		–		–
Annual contract maintenance charges (note 2)		(3,978	)	(4,225	)	(4,115	)	(4,265	)	–	(2,052	)	–		–
Contingent deferred sales charges (note 2)		(2,786	)	(3,059	)	(6,870	)	(4,397	)	–	(1,385	)	–		–
Adjustments to maintain reserves		(56	)	120		(80	)	142		–	893		(4	)	(10	)
Net equity transactions		(530,699	)	(273,730	)	(27,247	)	174,595		–	(2,046,181	)	(11,792	)	(20,245	)
Net change in contract owners’ equity		(500,518	)	(223,014	)	131,472		387,863		–	(1,978,349	)	(5,685	)	(9,596	)
Contract owners’ equity beginning of period		3,231,535		3,454,549		5,249,026		4,861,163		–	1,978,349		90,953		100,549
Contract owners’ equity end of period	$	2,731,017		3,231,535		5,380,498		5,249,026		–	–		85,268		90,953
CHANGES IN UNITS:
Beginning units		213,109		231,833		499,347		482,126		–	197,843		8,093		10,101
Units purchased		20,260		26,628		130,500		137,044		–	35,529		–		3
Units redeemed		(55,021	)	(45,352	)	(127,873	)	(119,823	)	–	(233,372	)	(1,062	)	(2,011	)
Ending units		178,348		213,109		501,974		499,347		–	–		7,031		8,093

(Continued)

17

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	DryBalOpp					Dry3dCen				Dry500Ix				EvInc
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	6,407		22,415		(10,338	)	(14,944	)	(2,204	)	38,197		2,608		5,840
Realized gain (loss) on investments		(8,235	)	145		(107,795	)	(194,115	)	(437,493	)	(632,309	)	24,145		17,471
Change in unrealized gain (loss) on investments		(81,935	)	6,424		141,094		257,879		990,794		2,160,160		(47,434	)	29,009
Reinvested capital gains		15,231		12,773		–		–		–		–		48,651		35,252
Net increase (decrease) in contract owners’ equity resulting from operations		(68,532	)	41,757		22,961		48,820		551,097		1,566,048		27,970		87,572
Equity transactions:
Purchase payments received from contract owners (note 3)		208,848		4,781		74,924		111,919		1,596,442		1,829,677		81,877		80,368
Transfers between funds		(159,608	)	2,129,913		(62,217	)	(141,279	)	(744,433	)	(121,574	)	33,255		384,537
Redemptions (note 3)		(206,046	)	(1,687	)	(139,282	)	(102,568	)	(2,602,610	)	(2,274,696	)	(150,319	)	(321,621	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,871	)	(55	)	(1,680	)	(1,906	)	(31,194	)	(34,082	)	(1,569	)	(1,542	)
Contingent deferred sales charges (note 2)		(2,217	)	–		(2,110	)	(1,111	)	(16,453	)	(17,809	)	(484	)	(1,679	)
Adjustments to maintain reserves		15,535		(14,241	)	(16	)	(8	)	20		798		11		56
Net equity transactions		(145,359	)	2,118,711		(130,381	)	(134,953	)	(1,798,228	)	(617,686	)	(37,229	)	140,119
Net change in contract owners’ equity		(213,891	)	2,160,468		(107,420	)	(86,133	)	(1,247,131	)	948,362		(9,259	)	227,691
Contract owners’ equity beginning of period		2,160,468		–		1,153,302		1,239,435		19,242,268		18,293,906		1,094,936		867,245
Contract owners’ equity end of period	$	1,946,577		2,160,468		1,045,882		1,153,302		17,995,137		19,242,268		1,085,677		1,094,936
CHANGES IN UNITS:
Beginning units		213,309		–		83,260		94,492		688,019		712,646		46,314		39,990
Units purchased		27,070		214,871		7,216		13,073		86,130		152,575		8,905		24,677
Units redeemed		(43,166	)	(1,562	)	(15,168	)	(24,305	)	(149,871	)	(177,202	)	(10,413	)	(18,353	)
Ending units		197,213		213,309		75,308		83,260		624,278		688,019		44,806		46,314

(Continued)

18

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FedEqInc					FedHiYld				FedIntCorpBd				FedBdFd
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	678		787		138,028		168,977		30,162		16,202		105,791		111,694
Realized gain (loss) on investments		2,145		2,535		(18,606	)	18,113		(8,005	)	1,274		25,831		33,265
Change in unrealized gain (loss) on investments		(1,498	)	7,349		(93,689	)	14,846		(13,176	)	(4,747	)	(118,798	)	(19,970	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		1,325		10,671		25,733		201,936		8,981		12,729		12,824		124,989
Equity transactions:
Purchase payments received from contract owners (note 3)		489		2,923		373,402		433,793		113,906		498,741		201,479		287,294
Transfers between funds		1,439		(17,112	)	(311,938	)	1,466,551		(67,517	)	116,024		151,224		153,990
Redemptions (note 3)		(12,077	)	(80	)	(385,590	)	(1,552,674	)	(71,581	)	(41,338	)	(379,027	)	(405,061	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,718	)	(1,361	)	–		–		(2,443	)	(2,480	)
Contingent deferred sales charges (note 2)		(26	)	–		(2,370	)	(2,214	)	(447	)	(77	)	(2,184	)	(2,670	)
Adjustments to maintain reserves		(5	)	(12	)	(134	)	115		(93	)	(12	)	147		(968	)
Net equity transactions		(10,180	)	(14,281	)	(328,348	)	344,210		(25,732	)	573,338		(30,804	)	30,105
Net change in contract owners’ equity		(8,855	)	(3,610	)	(302,615	)	546,146		(16,751	)	586,067		(17,980	)	155,094
Contract owners’ equity beginning of period		101,722		105,332		2,340,085		1,793,939		866,946		280,879		2,414,432		2,259,338
Contract owners’ equity end of period	$	92,867		101,722		2,037,470		2,340,085		850,195		866,946		2,396,452		2,414,432
CHANGES IN UNITS:
Beginning units		12,280		14,167		202,267		170,690		68,364		22,611		162,608		160,643
Units purchased		234		936		92,592		664,877		34,663		50,820		32,574		63,851
Units redeemed		(1,505	)	(2,823	)	(121,096	)	(633,300	)	(36,657	)	(5,067	)	(35,251	)	(61,886	)
Ending units		11,009		12,280		173,763		202,267		66,370		68,364		159,931		162,608

(Continued)

19

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidABalA					FidABalT				FidAEGroA				FidAEqIncA
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	5,947		10,220		5,043		10,075		(11,705	)	(12,247	)	(5,439	)	(6,000	)
Realized gain (loss) on investments		4,806		160		(14,078	)	(25,813	)	49,835		28,530		197,360		247,722
Change in unrealized gain (loss) on investments		(22,000	)	22,151		(14,689	)	59,096		3,625		4,544		(195,150	)	92,738
Reinvested capital gains		35,865		–		62,490		–		–		–		217,246		52,743
Net increase (decrease) in contract owners’ equity resulting from operations		24,618		32,531		38,766		43,358		41,755		20,827		214,017		387,203
Equity transactions:
Purchase payments received from contract owners (note 3)		14,626		15,368		144,177		218,181		47,590		122,701		761,885		720,864
Transfers between funds		22,991		32,975		(144,811	)	(92,766	)	(371,160	)	69,796		(259,897	)	(100,645	)
Redemptions (note 3)		(191,668	)	(111,010	)	(167,256	)	(95,608	)	(78,523	)	(58,824	)	(535,126	)	(291,406	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(2,036	)	(2,083	)	–		–		–		–
Contingent deferred sales charges (note 2)		(3,797	)	(2,283	)	(284	)	(453	)	(906	)	(307	)	(4,380	)	(3,397	)
Adjustments to maintain reserves		(23	)	6		(13	)	46		(43	)	(5	)	(125	)	101
Net equity transactions		(157,871	)	(64,944	)	(170,223	)	27,317		(403,042	)	133,361		(37,643	)	325,517
Net change in contract owners’ equity		(133,253	)	(32,413	)	(131,457	)	70,675		(361,287	)	154,188		176,374		712,720
Contract owners’ equity beginning of period		788,131		820,544		1,277,305		1,206,630		1,280,886		1,126,698		4,012,980		3,300,260
Contract owners’ equity end of period	$	654,878		788,131		1,145,848		1,277,305		919,599		1,280,886		4,189,354		4,012,980
CHANGES IN UNITS:
Beginning units		77,870		84,334		85,032		83,221		196,942		176,059		315,936		287,775
Units purchased		6,499		10,408		10,951		18,083		12,273		66,407		71,484		117,747
Units redeemed		(22,154	)	(16,872	)	(22,359	)	(16,272	)	(73,500	)	(45,524	)	(74,051	)	(89,586	)
Ending units		62,215		77,870		73,624		85,032		135,715		196,942		313,369		315,936

(Continued)

20

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidAEqIncT					FidAGrOppA				FidAGrOppT				FidAHiIncT
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(24,298	)	(19,583	)	(5,532	)	(3,429	)	(51,524	)	(44,291	)	155,264		253,104
Realized gain (loss) on investments		105,274		38,907		12,987		27,649		(387,242	)	(599,666	)	42,879		114,429
Change in unrealized gain (loss) on investments		(104,829	)	308,683		13,440		(6,949	)	698,681		868,458		(120,377	)	24,896
Reinvested capital gains		221,059		58,909		–		–		–		–		7,806		–
Net increase (decrease) in contract owners’ equity resulting from operations		197,206		386,916		20,895		17,271		259,915		224,501		85,572		392,429
Equity transactions:
Purchase payments received from contract owners (note 3)		462,032		358,332		91,015		182,725		264,332		359,130		441		103,595
Transfers between funds		74,921		489,693		381,765		3,721		(110,389	)	(164,378	)	(370,594	)	(653,343	)
Redemptions (note 3)		(661,230	)	(374,942	)	(103,956	)	(21,229	)	(599,574	)	(681,932	)	(371,786	)	(486,104	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(5,966	)	(5,266	)	–		–		(7,182	)	(8,174	)	(2,585	)	(3,284	)
Contingent deferred sales charges (note 2)		(1,923	)	(5,574	)	(3,160	)	(797	)	(3,743	)	(4,032	)	(2,917	)	(2,399	)
Adjustments to maintain reserves		33		164		827		(27	)	28		163		27		474
Net equity transactions		(132,133	)	462,407		366,491		164,393		(456,528	)	(499,223	)	(747,414	)	(1,041,061	)
Net change in contract owners’ equity		65,073		849,323		387,386		181,664		(196,613	)	(274,722	)	(661,842	)	(648,632	)
Contract owners’ equity beginning of period		4,208,916		3,359,593		571,773		390,109		4,395,405		4,670,127		3,230,752		3,879,384
Contract owners’ equity end of period	$	4,273,989		4,208,916		959,159		571,773		4,198,792		4,395,405		2,568,910		3,230,752
CHANGES IN UNITS:
Beginning units		207,282		182,726		77,514		55,941		330,246		370,410		198,711		269,387
Units purchased		43,415		78,239		146,572		69,914		40,311		47,077		11,203		108,577
Units redeemed		(49,847	)	(53,683	)	(102,702	)	(48,341	)	(75,812	)	(87,241	)	(56,463	)	(179,253	)
Ending units		200,850		207,282		121,384		77,514		294,745		330,246		153,451		198,711

(Continued)

21

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidAOvA					FidAsMgr				FidCapInc				FidEqInc
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(446	)	(4,500	)	35,122		47,282		23,522		35,663		30,105		29,160
Realized gain (loss) on investments		9,515		39,818		(97,717	)	(182,541	)	(16,468	)	(29,153	)	25,258		(90,661	)
Change in unrealized gain (loss) on investments		10,706		(14,309	)	58,469		284,607		9,528		60,138		(34,410	)	697,510
Reinvested capital gains		3,125		951		80,193		–		–		–		419,075		338,666
Net increase (decrease) in contract owners’ equity resulting from operations		22,900		21,960		76,067		149,348		16,582		66,648		440,028		974,675
Equity transactions:
Purchase payments received from contract owners (note 3)		19		52,444		168,900		245,194		–		–		589,954		605,942
Transfers between funds		(90,932	)	(422,787	)	(175,469	)	41,727		–		(9,291	)	245,476		492,624
Redemptions (note 3)		(4,154	)	(7,818	)	(749,465	)	(1,006,264	)	(75,855	)	(198,277	)	(1,596,764	)	(1,631,380	)
Annuity benefits		–		–		–		–		–		–		(339	)	(315	)
Annual contract maintenance charges (note 2)		–		–		(5,082	)	(5,571	)	(841	)	(959	)	(14,110	)	(15,176	)
Contingent deferred sales charges (note 2)		(11	)	(35	)	(3,411	)	(11,123	)	–		–		(6,160	)	(3,522	)
Adjustments to maintain reserves		(5	)	(10	)	(15	)	129		(24	)	28		(5,641	)	720
Net equity transactions		(95,083	)	(378,206	)	(764,542	)	(735,908	)	(76,720	)	(208,499	)	(787,584	)	(551,107	)
Net change in contract owners’ equity		(72,183	)	(356,246	)	(688,475	)	(586,560	)	(60,138	)	(141,851	)	(347,556	)	423,568
Contract owners’ equity beginning of period		274,810		631,056		3,907,903		4,494,463		538,029		679,880		10,882,703		10,459,135
Contract owners’ equity end of period	$	202,627		274,810		3,219,428		3,907,903		477,891		538,029		10,535,147		10,882,703
CHANGES IN UNITS:
Beginning units		30,133		77,409		193,635		231,668		7,899		11,090		112,880		119,162
Units purchased		226		135,637		10,836		31,623		–		–		11,803		15,640
Units redeemed		(10,688	)	(182,913	)	(49,111	)	(69,656	)	(1,132	)	(3,191	)	(19,978	)	(21,922	)
Ending units		19,671		30,133		155,360		193,635		6,767		7,899		104,705		112,880

(Continued)

22

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FidMgln					FidPurtn				FidVIPHI				FidVIPOvS2R
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(74,670	)	(23,495	)	128,788		117,644		2,793		4,445		(3,480	)	(1,786	)
Realized gain (loss) on investments		(753,974	)	(934,907	)	(68,985	)	(164,892	)	(61	)	(29,559	)	34,938		3,143
Change in unrealized gain (loss) on investments		1,195,038		2,131,293		(52,409	)	438,199		(2,447	)	29,478		60,898		48,008
Reinvested capital gains		513,479		–		307,367		405,782		–		–		1,803		–
Net increase (decrease) in contract owners’ equity resulting from operations		879,873		1,172,891		314,761		796,733		285		4,364		94,159		49,365
Equity transactions:
Purchase payments received from contract owners (note 3)		772,559		1,041,801		423,507		496,722		–		–		185,948		228,362
Transfers between funds		(643,218	)	(604,586	)	161,605		259,629		–		–		122,787		245,168
Redemptions (note 3)		(2,872,270	)	(2,993,940	)	(1,889,399	)	(1,459,952	)	–		(47,140	)	(24,080	)	(9,419	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(26,642	)	(30,128	)	(11,920	)	(12,014	)	(17	)	(31	)	(140	)	(27	)
Contingent deferred sales charges (note 2)		(18,880	)	(21,687	)	(8,498	)	(7,740	)	–		(8	)	(150	)	(91	)
Adjustments to maintain reserves		58		840		35		418		(9	)	9		(74	)	7
Net equity transactions		(2,788,393	)	(2,607,700	)	(1,324,670	)	(722,937	)	(26	)	(47,170	)	284,291		464,000
Net change in contract owners’ equity		(1,908,520	)	(1,434,809	)	(1,009,909	)	73,796		259		(42,806	)	378,450		513,365
Contract owners’ equity beginning of period		20,371,875		21,806,684		10,784,970		10,711,174		20,644		63,450		513,365		–
Contract owners’ equity end of period	$	18,463,355		20,371,875		9,775,061		10,784,970		20,903		20,644		891,815		513,365
CHANGES IN UNITS:
Beginning units		737,378		837,429		379,994		407,038		875		2,909		46,477		–
Units purchased		38,819		54,606		32,302		44,210		–		–		56,471		62,732
Units redeemed		(139,969	)	(154,657	)	(78,923	)	(71,254	)	(1	)	(2,034	)	(34,075	)	(16,255	)
Ending units		636,228		737,378		333,373		379,994		874		875		68,873		46,477

(Continued)

23

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	FranMutSer					FranSmMCpGr				FrVIPForSec3				FranBSInv
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	13,776		24,456		(22,402	)	(22,103	)	1,829		(3,780	)	(7,619	)	(3,030	)
Realized gain (loss) on investments		381,416		132,274		131,628		9,832		185,283		1,189		238,737		61,433
Change in unrealized gain (loss) on investments		(47,838	)	494,021		79,027		271,558		41,095		241,111		(76,434	)	275,755
Reinvested capital gains		369,251		141,232		–		–		–		–		132,540		31,853
Net increase (decrease) in contract owners’ equity resulting from operations		716,605		791,983		188,253		259,287		228,207		238,520		287,224		366,011
Equity transactions:
Purchase payments received from contract owners (note 3)		1,081,663		880,195		313,775		337,434		778,180		286,209		769,046		745,814
Transfers between funds		444,571		212,729		(943,325	)	813,319		(98,963	)	1,933,093		561,621		171,978
Redemptions (note 3)		(946,483	)	(559,178	)	(160,823	)	(154,591	)	(359,750	)	(71,830	)	(309,556	)	(210,783	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(4,962	)	(4,869	)	–		–		(1,617	)	(342	)	–		–
Contingent deferred sales charges (note 2)		(7,809	)	(6,180	)	(2,359	)	(1,660	)	(3,089	)	(992	)	(2,687	)	(1,757	)
Adjustments to maintain reserves		(1,068	)	(5,867	)	(39	)	(23	)	(81	)	421		(54	)	(1	)
Net equity transactions		565,912		516,830		(792,771	)	994,479		314,680		2,146,559		1,018,370		705,251
Net change in contract owners’ equity		1,282,517		1,308,813		(604,518	)	1,253,766		542,887		2,385,079		1,305,594		1,071,262
Contract owners’ equity beginning of period		7,233,403		5,924,590		3,094,272		1,840,506		2,385,079		–		2,225,352		1,154,090
Contract owners’ equity end of period	$	8,515,920		7,233,403		2,489,754		3,094,272		2,927,966		2,385,079		3,530,946		2,225,352
CHANGES IN UNITS:
Beginning units		476,078		436,986		435,237		289,019		206,884		–		121,505		77,941
Units purchased		213,396		168,306		46,458		187,684		154,237		216,204		96,254		69,308
Units redeemed		(171,861	)	(129,214	)	(161,881	)	(41,466	)	(127,561	)	(9,320	)	(41,833	)	(25,744	)
Ending units		517,613		476,078		319,814		435,237		233,560		206,884		175,926		121,505

(Continued)

24

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartBond					GartBdIx				GartGvtBd				GartGrowA
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	68,468		79,684		6,785		5,133		145,634		163,397		(6,345	)	(5,023	)
Realized gain (loss) on investments		13,530		20,417		(946	)	262		(118,464	)	(100,334	)	9,158		8,986
Change in unrealized gain (loss) on investments		(43,131	)	(20,839	)	(4,259	)	276		53,690		65,740		19,431		26,922
Reinvested capital gains		–		–		–		135		4,002		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		38,867		79,262		1,580		5,806		84,862		128,803		22,244		30,885
Equity transactions:
Purchase payments received from contract owners (note 3)		185,496		225,500		46,924		94,224		296,585		487,221		72,171		137,214
Transfers between funds		(37,141	)	(92,712	)	(23,039	)	(15,558	)	(775,735	)	(427,973	)	85,218		91,524
Redemptions (note 3)		(413,462	)	(410,712	)	(11,129	)	(3,439	)	(821,785	)	(802,782	)	(48,260	)	(63,228	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,887	)	(3,494	)	–		–		(4,902	)	(5,699	)	(648	)	(569	)
Contingent deferred sales charges (note 2)		(2,505	)	(4,019	)	(180	)	(132	)	(9,473	)	(11,329	)	(537	)	(202	)
Adjustments to maintain reserves		9		33		(44	)	3		153		319		253		253
Net equity transactions		(270,490	)	(285,404	)	12,532		75,098		(1,315,157	)	(760,243	)	108,197		164,992
Net change in contract owners’ equity		(231,623	)	(206,142	)	14,112		80,904		(1,230,295	)	(631,440	)	130,441		195,877
Contract owners’ equity beginning of period		2,270,624		2,476,766		254,381		173,477		6,055,314		6,686,754		540,838		344,961
Contract owners’ equity end of period	$	2,039,001		2,270,624		268,493		254,381		4,825,019		6,055,314		671,279		540,838
CHANGES IN UNITS:
Beginning units		64,183		72,695		20,255		14,144		423,678		473,517		49,930		33,909
Units purchased		7,179		8,715		4,849		9,350		60,947		86,041		28,001		44,719
Units redeemed		(12,559	)	(17,227	)	(3,853	)	(3,239	)	(152,414	)	(135,880	)	(18,788	)	(28,698	)
Ending units		58,803		64,183		21,251		20,255		332,211		423,678		59,143		49,930

(Continued)

25

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartGrowD					GVITIDAgg2				GVITIDCon2				GVITIDMod2
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(13,948	)	(14,221	)	1,723		573		226		4		8,268		3,826
Realized gain (loss) on investments		26,841		13,471		652		63		6		–		2,935		56
Change in unrealized gain (loss) on investments		47,195		84,449		12,652		4,650		(369	)	5		7,847		27,199
Reinvested capital gains		–		–		4,918		1,140		501		2		13,059		831
Net increase (decrease) in contract owners’ equity resulting from operations		60,088		83,699		19,945		6,426		364		11		32,109		31,912
Equity transactions:
Purchase payments received from contract owners (note 3)		4,180		7,485		110,916		3,773		34,118		68		119,930		22,186
Transfers between funds		(15,979	)	(164,220	)	65,904		79,834		1,006		234		269,110		459,608
Redemptions (note 3)		(187,121	)	(111,838	)	(4,829	)	(344	)	(4,151	)	–		(27,267	)	–
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,082	)	(2,497	)	(298	)	–		(28	)	–		(540	)	(30	)
Contingent deferred sales charges (note 2)		(983	)	(388	)	(2	)	–		(2	)	–		(157	)	–
Adjustments to maintain reserves		(80	)	3		(4	)	1		(9	)	(3	)	2		3
Net equity transactions		(202,065	)	(271,455	)	171,687		83,264		30,934		299		361,078		481,767
Net change in contract owners’ equity		(141,977	)	(187,756	)	191,632		89,690		31,298		310		393,187		513,679
Contract owners’ equity beginning of period		1,321,373		1,509,129		89,690		–		310		–		513,679		–
Contract owners’ equity end of period	$	1,179,396		1,321,373		281,322		89,690		31,608		310		906,866		513,679
CHANGES IN UNITS:
Beginning units		49,460		60,362		8,041		–		30		–		47,710		–
Units purchased		56		211		16,229		8,073		3,369		30		37,450		47,713
Units redeemed		(9,710	)	(11,113	)	(595	)	(32	)	(401	)	–		(4,154	)	(3	)
Ending units		39,806		49,460		23,675		8,041		2,998		30		81,006		47,710

(Continued)

26

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GVITIDModAg2					GVITIDModCon2				GVITJPBal				GartIDAgg
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	6,971		3,377		837		86		1,914		1,144		8,921		3,645
Realized gain (loss) on investments		10,908		27		88		1		7,836		956		48,873		5,906
Change in unrealized gain (loss) on investments		7,833		18,552		(87	)	117		(6,608	)	6,946		(6,753	)	67,290
Reinvested capital gains		16,452		4,596		1,099		25		–		–		24,647		–
Net increase (decrease) in contract owners’ equity resulting from operations		42,164		26,552		1,937		229		3,142		9,046		75,688		76,841
Equity transactions:
Purchase payments received from contract owners (note 3)		157,417		15,044		30,314		8,079		107,936		54,950		631,840		270,187
Transfers between funds		315,869		496,152		50,538		2,769		8,924		(1,694	)	(61,378	)	20,098
Redemptions (note 3)		(81,136	)	–		(7,340	)	–		(33,701	)	(14,794	)	(85,414	)	(30,604	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,011	)	(31	)	(115	)	(1	)	(230	)	(160	)	–		–
Contingent deferred sales charges (note 2)		(1,715	)	–		–		–		(515	)	(89	)	(1,850	)	(177	)
Adjustments to maintain reserves		(6	)	1		(10	)	(3	)	(41	)	(5	)	(63	)	(8	)
Net equity transactions		389,418		511,166		73,387		10,844		82,373		38,208		483,135		259,496
Net change in contract owners’ equity		431,582		537,718		75,324		11,073		85,515		47,254		558,823		336,337
Contract owners’ equity beginning of period		537,718		–		11,073		–		145,621		98,367		745,692		409,355
Contract owners’ equity end of period	$	969,300		537,718		86,397		11,073		231,136		145,621		1,304,515		745,692
CHANGES IN UNITS:
Beginning units		48,890		–		1,048		–		13,825		10,009		76,169		47,094
Units purchased		46,093		48,893		7,802		1,048		12,682		5,878		67,223		33,518
Units redeemed		(11,593	)	(3	)	(921	)	–		(4,858	)	(2,062	)	(18,513	)	(4,443	)
Ending units		83,390		48,890		7,929		1,048		21,649		13,825		124,879		76,169

(Continued)

27

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartIDCon					GartIDMod				GartIDModAgg				GartIDModCon
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	23,344		14,072		77,792		31,500		24,507		8,027		25,173		12,247
Realized gain (loss) on investments		11,040		4,381		67,984		13,602		17,487		84,342		22,493		7,608
Change in unrealized gain (loss) on investments		(23,115	)	10,218		93,794		216,385		81,675		63,536		(20,980	)	40,853
Reinvested capital gains		19,318		7,170		79,895		3,321		39,361		117		30,172		1,202
Net increase (decrease) in contract owners’ equity resulting from operations		30,587		35,841		319,465		264,808		163,030		156,022		56,858		61,910
Equity transactions:
Purchase payments received from contract owners (note 3)		282,396		463,378		2,691,425		1,771,954		1,424,325		917,160		861,353		201,881
Transfers between funds		96,861		224,471		505,502		1,356,689		67,375		(746,605	)	33,824		175,737
Redemptions (note 3)		(149,697	)	(129,524	)	(288,531	)	(166,966	)	(230,173	)	(162,996	)	(271,322	)	(42,840	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(1,163	)	(417	)	(1,702	)	(2,466	)	(3,879	)	(3,424	)	(1,496	)	(783	)
Adjustments to maintain reserves		(65	)	52		(141	)	31		(128	)	3		(2	)	10
Net equity transactions		228,332		557,960		2,906,553		2,959,242		1,257,520		4,138		622,357		334,005
Net change in contract owners’ equity		258,919		593,801		3,226,018		3,224,050		1,420,550		160,160		679,215		395,915
Contract owners’ equity beginning of period		1,381,387		787,586		4,281,135		1,057,085		1,578,276		1,418,116		1,227,135		831,220
Contract owners’ equity end of period	$	1,640,306		1,381,387		7,507,153		4,281,135		2,998,826		1,578,276		1,906,350		1,227,135
CHANGES IN UNITS:
Beginning units		124,360		73,292		408,308		109,099		156,228		155,282		112,334		80,598
Units purchased		43,332		64,734		315,628		323,787		159,643		336,096		85,819		39,972
Units redeemed		(22,965	)	(13,666	)	(38,075	)	(24,578	)	(35,418	)	(335,150	)	(28,802	)	(8,236	)
Ending units		144,727		124,360		685,861		408,308		280,453		156,228		169,351		112,334

(Continued)

28

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartIntlndx					GartLgCpVal				GartMdCpMkt				GartMyMkt
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	110		(62	)	(4,491	)	(1,905	)	(1,729	)	(4,025	)	138,825		(52,033	)
Realized gain (loss) on investments		3,075		35,294		160,908		120,071		63,330		34,269		–		–
Change in unrealized gain (loss) on investments		(1,412	)	(15,524	)	(147,854	)	49,397		(13,146	)	42,609		–		–
Reinvested capital gains		530		432		88,056		–		41,666		14,392		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,303		20,140		96,619		167,563		90,121		87,245		138,825		(52,033	)
Equity transactions:
Purchase payments received from contract owners (note 3)		–		10,248		295,827		215,413		193,592		189,591		1,673,907		2,030,651
Transfers between funds		(14,788	)	(685,277	)	507,015		224,204		30,197		90,515		911,261		(325,409	)
Redemptions (note 3)		(11,373	)	(2,304	)	(365,082	)	(219,724	)	(109,684	)	(24,930	)	(3,162,885	)	(2,922,171	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges
(note 2)		–		–		(1,683	)	(1,173	)	–		–		(16,873	)	(19,115	)
Contingent deferred sales charges
(note 2)		(5	)	–		(1,151	)	(843	)	(1,669	)	(140	)	(10,195	)	(19,583	)
Adjustments to maintain reserves		4		(18	)	(50	)	60		(25	)	(26	)	136		414
Net equity transactions		(26,162	)	(677,351	)	434,876		217,937		112,411		255,010		(604,649	)	(1,255,213	)
Net change in contract owners’ equity		(23,859	)	(657,211	)	531,495		385,500		202,532		342,255		(465,824	)	(1,307,246	)
Contract owners’ equity beginning of period		43,218		700,429		1,500,937		1,115,437		775,258		433,003		9,631,496		10,938,742
Contract owners’ equity end of period	$	19,359		43,218		2,032,432		1,500,937		977,790		775,258		9,165,672		9,631,496
CHANGES IN UNITS:
Beginning units		4,530		86,263		117,301		99,480		64,225		40,923		418,674		472,855
Units purchased		–		28,295		122,669		78,801		24,386		37,008		303,113		385,033
Units redeemed		(2,719	)	(110,028	)	(90,010	)	(60,980	)	(15,348	)	(13,706	)	(328,731	)	(439,214	)
Ending units		1,811		4,530		149,960		117,301		73,263		64,225		393,056		418,674

(Continued)

29

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartMyMktS					GartNWFund				GartSP500Indx				GartSmCap
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	76,856		(29,439	)	(25,751	)	(5,983	)	2,122		2,717		(45,916	)	(34,417	)
Realized gain (loss) on investments		–		–		(432,566	)	(493,639	)	202,222		292,997		202,408		23,023
Change in unrealized gain (loss) on investments		–		–		59,267		941,966		(110,651	)	5,453		(5,744	)	255,782
Reinvested capital gains		–		–		719,667		23,749		28,520		–		513,742		418,170
Net increase (decrease) in contract owners’ equity resulting from Operations		76,856		(29,439	)	320,617		466,093		122,213		301,167		664,490		662,558
Equity transactions:
Purchase payments received from contract owners (note 3)		3,126,334		2,592,987		380,386		583,702		596,911		632,910		256,343		642,389
Transfers between funds		789,243		(1,815,080	)	(309,428	)	(333,650	)	15,156		(235,636	)	442,253		743,106
Redemptions (note 3)		(1,939,044	)	(9,026,740	)	(752,603	)	(521,825	)	(335,365	)	(362,190	)	(624,881	)	(254,613	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(9,728	)	(10,507	)	(2,204	)	(2,256	)	(3,916	)	(2,911	)
Contingent deferred sales charges (note 2)		(9,001	)	(22,467	)	(3,810	)	(2,965	)	(4,971	)	(5,451	)	(2,319	)	(3,013	)
Adjustments to maintain reserves		(148	)	11		14		174		(56	)	17		14		123
Net equity transactions		1,967,384		(8,271,289	)	(695,169	)	(285,071	)	269,471		27,394		67,494		1,125,081
Net change in contract owners’ equity		2,044,240		(8,300,728	)	(374,552	)	181,022		391,684		328,561		731,984		1,787,639
Contract owners’ equity beginning of period		2,706,289		11,007,017		5,908,971		5,727,949		3,652,845		3,324,284		3,913,587		2,125,948
Contract owners’ equity end of period	$	4,750,529		2,706,289		5,534,419		5,908,971		4,044,529		3,652,845		4,645,571		3,913,587
CHANGES IN UNITS:
Beginning units		260,132		1,054,174		87,381		88,218		427,342		423,786		231,298		153,649
Units purchased		941,282		1,597,360		8,924		20,302		138,522		202,020		119,008		155,499
Units redeemed		(751,505	)	(2,391,402	)	(14,480	)	(21,139	)	(105,652	)	(198,464	)	(120,672	)	(77,850	)
Ending units		449,909		260,132		81,825		87,381		460,212		427,342		229,634		231,298

(Continued)

30

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	GartSmCapIx					GartValOpp				JanBal				JanIntlGr
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(1,945	)	(2,711	)	(3,945	)	(4,888	)	4,768		5,768		(279	)	(1,941	)
Realized gain (loss) on investments		20,815		35,609		(12,484	)	7,554		22,041		38,417		1,087		39,561
Change in unrealized gain (loss) on investments		(28,794	)	38,961		(5,144	)	(48,493	)	27,828		44,592		10,847		(28,249	)
Reinvested capital gains		30,661		29,061		42,554		104,176		28,611		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		20,737		100,920		20,981		58,349		83,248		88,777		11,655		9,371
Equity transactions:
Purchase payments received from contract owners (note 3)		119,627		277,698		39,297		312,020		131,862		247,393		27		6,239
Transfers between funds		(105,861	)	197,202		(347,554	)	74,819		(25,427	)	(393,695	)	(4,678	)	(694,671	)
Redemptions (note 3)		(60,734	)	(62,009	)	(23,850	)	(9,260	)	(79,439	)	(59,562	)	(8,399	)	(1,038	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(496	)	(835	)	(107	)	(167	)	(1,203	)	(1,499	)	(172	)	(8	)
Adjustments to maintain reserves		(35	)	(17	)	2		(28	)	(14	)	(55	)	(2	)	(25	)
Net equity transactions		(47,499	)	412,039		(332,212	)	377,384		25,779		(207,418	)	(13,224	)	(689,503	)
Net change in contract owners’ equity		(26,762	)	512,959		(311,231	)	435,733		109,027		(118,641	)	(1,569	)	(680,132	)
Contract owners’ equity beginning of period		811,847		298,888		632,586		196,853		1,308,970		1,427,611		50,327		730,459
Contract owners’ equity end of period	$	785,085		811,847		321,355		632,586		1,417,997		1,308,970		48,758		50,327
CHANGES IN UNITS:
Beginning units		65,067		27,945		45,590		15,946		127,676		148,887		6,398		109,672
Units purchased		15,171		53,368		3,656		32,832		21,018		29,550		300		147,928
Units redeemed		(19,113	)	(16,246	)	(27,472	)	(3,188	)	(18,829	)	(50,761	)	(1,935	)	(251,202	)
Ending units		61,125		65,067		21,774		45,590		129,865		127,676		4,763		6,398

(Continued)

31

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	JanWorld					JanFund				Jan20Fd				JanWrldwde
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(3,266	)	(8,752	)	(102,477	)	(126,686	)	(252,517	)	(288,902	)	(15,123	)	(54,589	)
Realized gain (loss) on investments		35,226		44,174		(1,823,641	)	(2,206,385	)	(2,271,251	)	(2,175,763	)	(1,553,955	)	(2,914,362	)
Change in unrealized gain (loss) on investments		(5,189	)	(13,055	)	2,102,293		2,605,897		4,271,134		7,111,874		1,830,230		3,236,569
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		26,771		22,367		176,175		272,826		1,747,366		4,647,209		261,152		267,618
Equity transactions:
Purchase payments received from contract owners (note 3)		–		53,572		541,658		741,313		1,338,848		1,791,921		712		326,608
Transfers between funds		(142,002	)	(482,811	)	(970,156	)	(1,064,177	)	(727,673	)	(1,479,344	)	(494,938	)	(1,681,251	)
Redemptions (note 3)		(107,611	)	(55,155	)	(1,401,728	)	(1,384,366	)	(3,467,457	)	(2,794,605	)	(1,135,585	)	(1,225,229	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(15,183	)	(18,686	)	(41,184	)	(45,304	)	(11,990	)	(16,339	)
Contingent deferred sales charges (note 2)		(543	)	(1,021	)	(8,014	)	(14,305	)	(35,808	)	(30,394	)	(6,406	)	(12,385	)
Adjustments to maintain reserves		(47	)	(3	)	(42	)	312		33		1,032		(21	)	295
Net equity transactions		(250,203	)	(485,418	)	(1,853,465	)	(1,739,909	)	(2,933,241	)	(2,556,694	)	(1,648,228	)	(2,608,301	)
Net change in contract owners’ equity		(223,432	)	(463,051	)	(1,677,290	)	(1,467,083	)	(1,185,875	)	2,090,515		(1,387,076	)	(2,340,683	)
Contract owners’ equity beginning of period		835,980		1,299,031		9,546,393		11,013,476		24,875,542		22,785,027		7,768,920		10,109,603
Contract owners’ equity end of period	$	612,548		835,980		7,869,103		9,546,393		23,689,667		24,875,542		6,381,844		7,768,920
CHANGES IN UNITS:
Beginning units		132,162		212,407		710,079		840,546		1,174,936		1,367,638		552,324		745,134
Units purchased		–		10,495		42,914		78,587		91,072		124,178		50		30,813
Units redeemed		(39,750	)	(90,740	)	(165,532	)	(209,054	)	(249,231	)	(316,880	)	(116,797	)	(223,623	)
Ending units		92,412		132,162		587,461		710,079		1,016,777		1,174,936		435,577		552,324

(Continued)

32

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	LazSmCap					MFSStratIncA				NBEFGuard				NBEFPart
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(38,960	)	(36,844	)	45,255		38,157		(19,813	)	(31,793	)	(16,278	)	(30,413	)
Realized gain (loss) on investments		175,009		158,646		12,682		13,896		(79,032	)	(150,646	)	47,078		(134,716	)
Change in unrealized gain (loss) on investments		(742,467	)	(268,777	)	(50,095	)	2,176		303,494		603,738		603,383		1,002,587
Reinvested capital gains		667,901		523,382		–		–		–		–		312,361		–
Net increase (decrease) in contract owners’ equity resulting from operations		61,483		376,407		7,842		54,229		204,649		421,299		946,544		837,458
Equity transactions:
Purchase payments received from contract owners (note 3)		246,552		318,772		75,238		69,765		93,145		167,669		430,255		297,445
Transfers between funds		(103,395	)	427,369		216,818		141,989		127,760		(84,114	)	1,204,086		43,186
Redemptions (note 3)		(622,608	)	(333,245	)	(164,968	)	(114,560	)	(593,264	)	(513,396	)	(870,357	)	(753,635	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,965	)	(2,873	)	(1,205	)	(1,080	)	(3,989	)	(4,172	)	(8,101	)	(7,395	)
Contingent deferred sales charges (note 2)		(2,606	)	(2,192	)	(2,029	)	(694	)	(5,564	)	(4,013	)	(2,890	)	(3,404	)
Adjustments to maintain reserves		(48	)	92		(42	)	(29	)	(12	)	101		1,665		241
Net equity transactions		(485,070	)	407,923		123,812		95,391		(381,924	)	(437,925	)	754,658		(423,562	)
Net change in contract owners’ equity		(423,587	)	784,330		131,654		149,620		(177,275	)	(16,626	)	1,701,202		413,896
Contract owners’ equity beginning of period		3,342,506		2,558,176		890,884		741,264		3,248,495		3,265,121		5,470,922		5,057,026
Contract owners’ equity end of period	$	2,918,919		3,342,506		1,022,538		890,884		3,071,220		3,248,495		7,172,124		5,470,922
CHANGES IN UNITS:
Beginning units		194,132		168,554		69,176		61,538		167,914		193,335		185,415		201,663
Units purchased		38,097		74,318		24,136		21,320		14,114		16,149		57,778		24,732
Units redeemed		(67,591	)	(48,740	)	(14,513	)	(13,682	)	(33,708	)	(41,570	)	(34,475	)	(40,980	)
Ending units		164,638		194,132		78,799		69,176		148,320		167,914		208,718		185,415

(Continued)

33

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBETGen					NBETGuard				NBETPart				NBETSocRes
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(200,131	)	(148,378	)	(2,271	)	(3,420	)	(2,112	)	(1,476	)	(2,246	)	(266	)
Realized gain (loss) on investments		523,168		381,383		18,203		3,821		34,981		14,960		2,910		5
Change in unrealized gain (loss) on investments		1,483,301		1,307,627		4,987		50,820		3,477		37,271		16,185		5,200
Reinvested capital gains		404,316		412,375		–		–		18,900		–		15,231		1,779
Net increase (decrease) in contract owners’ equity resulting from operations		2,210,654		1,953,007		20,919		51,221		55,246		50,755		32,080		6,718
Equity transactions:
Purchase payments received from contract owners (note 3)		1,643,628		1,881,461		2,334		5,904		6,982		20,658		148,844		32,600
Transfers between funds		1,834,151		1,926,834		(1,100	)	16,844		211,428		120,743		271,190		49,643
Redemptions (note 3)		(1,956,472	)	(1,345,727	)	(119,404	)	(20,954	)	(62,206	)	(56,652	)	(15,604	)	(383	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(10,931	)	(9,296	)	–		–		–		–		(65	)	–
Contingent deferred sales charges (note 2)		(18,363	)	(11,383	)	(1,546	)	(491	)	(1,485	)	(361	)	(42	)	–
Adjustments to maintain reserves		1,407		467		(10	)	(39	)	7,451		(43	)	(40	)	(4	)
Net equity transactions		1,493,420		2,442,356		(119,726	)	1,264		162,170		84,345		404,283		81,856
Net change in contract owners’ equity		3,704,074		4,395,363		(98,807	)	52,485		217,416		135,100		436,363		88,574
Contract owners’ equity beginning of period		14,615,405		10,220,042		402,509		350,024		358,723		223,623		88,574		–
Contract owners’ equity end of period	$	18,319,479		14,615,405		303,702		402,509		576,139		358,723		524,937		88,574
CHANGES IN UNITS:
Beginning units		738,855		606,006		39,609		39,493		31,510		23,117		7,845		–
Units purchased		239,370		310,639		238		10,985		23,251		21,874		38,100		7,887
Units redeemed		(170,737	)	(177,790	)	(11,880	)	(10,869	)	(11,068	)	(13,481	)	(2,184	)	(42	)
Ending units		807,488		738,855		27,967		39,609		43,693		31,510		43,761		7,845

(Continued)

34

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	NBLtdMat					OppCapApA				OppChpInc				OppGlob
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	28,979		30,999		(12,836	)	(21,823	)	11,298		6,901		(92,925	)	(116,810	)
Realized gain (loss) on investments		(17,282	)	(9,456	)	195,554		40,943		1,354		893		865,929		798,982
Change in unrealized gain (loss) on investments		(9,279	)	(26,584	)	(98,314	)	95,796		(9,339	)	3,171		470,761		1,755,826
Reinvested capital gains		–		–		–		–		–		–		436,586		–
Net increase (decrease) in contract owners’ equity resulting from operations		2,418		(5,041	)	84,404		114,916		3,313		10,965		1,680,351		2,437,998
Equity transactions:
Purchase payments received from contract owners (note 3)		69,876		100,699		697,081		327,870		91,251		70,706		1,093		638,601
Transfers between funds		(8,128	)	120,724		(151,552	)	634,127		60,885		2,360		(879,592	)	(1,691,538	)
Redemptions (note 3)		(318,072	)	(317,927	)	(269,342	)	(105,360	)	(21,942	)	(6,385	)	(2,113,678	)	(2,389,090	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,337	)	(1,352	)	–		–		–		–		(13,836	)	(16,792	)
Contingent deferred sales charges (note 2)		(2,783	)	(3,405	)	(5,847	)	(3,697	)	(535	)	–		(11,761	)	(20,334	)
Adjustments to maintain reserves		99		56		(73	)	(2	)	77		(8	)	(223	)	656
Net equity transactions		(260,345	)	(101,205	)	270,267		852,938		129,736		66,673		(3,017,997	)	(3,478,497	)
Net change in contract owners’ equity		(257,927	)	(106,246	)	354,671		967,854		133,049		77,638		(1,337,646	)	(1,040,499	)
Contract owners’ equity beginning of period		1,287,763		1,394,009		2,533,507		1,565,653		151,387		73,749		16,086,858		17,127,357
Contract owners’ equity end of period	$	1,029,836		1,287,763		2,888,178		2,533,507		284,436		151,387		14,749,212		16,086,858
CHANGES IN UNITS:
Beginning units		90,347		97,423		327,920		213,208		12,480		6,563		625,115		799,413
Units purchased		6,717		25,101		269,493		187,268		13,272		7,621		225		188,210
Units redeemed		(24,996	)	(32,177	)	(236,427	)	(72,556	)	(2,670	)	(1,704	)	(98,372	)	(362,508	)
Ending units		72,068		90,347		360,986		327,920		23,082		12,480		526,968		625,115

(Continued)

35

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	OppGlSec4					OppStratInc				PhxBalFd				PimTotRet
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(18,421	)	(13,987	)	32,296		18,670		7,729		9,765		82,213		26,577
Realized gain (loss) on investments		110,734		2,030		4,985		3,034		(496	)	(8,538	)	(13,984	)	8,221
Change in unrealized gain (loss) on investments		532,390		460,712		(23,809	)	6,181		(30,690	)	15,780		(43,908	)	(31,688	)
Reinvested capital gains		–		–		–		–		25,687		43,528		32,815		114,299
Net increase (decrease) in contract owners’ equity resulting from operations		624,703		448,755		13,472		27,885		2,230		60,535		57,136		117,409
Equity transactions:
Purchase payments received from contract owners (note 3)		1,551,667		1,014,942		184,716		135,876		71,452		105,888		801,723		1,122,627
Transfers between funds		619,797		2,042,665		145,783		(13,911	)	86,434		17,923		386,500		285,951
Redemptions (note 3)		(548,821	)	(58,936	)	(103,205	)	(8,957	)	(158,041	)	(45,697	)	(900,470	)	(249,562	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,200	)	(825	)	–		–		(1,649	)	(1,527	)	–		–
Contingent deferred sales charges (note 2)		(7,295	)	(874	)	(1,334	)	(97	)	(75	)	(213	)	(6,021	)	(1,210	)
Adjustments to maintain reserves		(74	)	(48	)	56		34		(10	)	27		(580	)	(446	)
Net equity transactions		1,612,074		2,996,924		226,016		112,945		(1,889	)	76,401		281,152		1,157,360
Net change in contract owners’ equity		2,236,777		3,445,679		239,488		140,830		341		136,936		338,288		1,274,769
Contract owners’ equity beginning of period		3,445,679		–		378,215		237,385		1,128,718		991,782		3,848,466		2,573,697
Contract owners’ equity end of period	$	5,682,456		3,445,679		617,703		378,215		1,129,059		1,128,718		4,186,754		3,848,466
CHANGES IN UNITS:
Beginning units		298,367		–		27,596		18,797		58,000		53,906		294,143		203,571
Units purchased		233,957		310,430		24,954		14,902		9,229		8,111		129,431		153,285
Units redeemed		(95,567	)	(12,063	)	(8,790	)	(6,103	)	(9,304	)	(4,017	)	(107,376	)	(62,713	)
Ending units		436,757		298,367		43,760		27,596		57,925		58,000		316,198		294,143

(Continued)

36

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	PIntEq					PVoyager				StrMidCap				TemForFd
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	29		(218	)	(410	)	(868	)	(1,195	)	(3,145	)	20,466		37,555
Realized gain (loss) on investments		6		27,831		1,147		132		53,685		9,324		268,841		349,725
Change in unrealized gain (loss) on investments		386		(17,631	)	8,740		4,933		(55,480	)	40,233		(79,944	)	564,237
Reinvested capital gains		–		–		–		–		–		–		292,099		10,182
Net increase (decrease) in contract owners’ equity resulting from operations		421		9,982		9,477		4,197		(2,990	)	46,412		501,462		961,699
Equity transactions:
Purchase payments received from contract owners (note 3)		32		10,444		49,926		8,045		67,769		57,087		–		272,100
Transfers between funds		(32	)	(323,292	)	(1,712	)	18,596		(371,241	)	8,215		(325,084	)	(1,297,377	)
Redemptions (note 3)		–		(161	)	(663	)	(292	)	(13,156	)	(17,987	)	(963,521	)	(799,787	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		(5,067	)	(6,004	)
Contingent deferred sales charges (note 2)		–		–		(22	)	–		(604	)	(222	)	(6,501	)	(6,558	)
Adjustments to maintain reserves		(1	)	(1	)	20		(27	)	(8	)	(14	)	(110	)	563
Net equity transactions		(1	)	(313,010	)	47,549		26,322		(317,240	)	47,079		(1,300,283	)	(1,837,063	)
Net change in contract owners’ equity		420		(303,028	)	57,026		30,519		(320,230	)	93,491		(798,821	)	(875,364	)
Contract owners’ equity beginning of period		3,838		306,866		106,490		75,971		320,230		226,739		6,474,126		7,349,490
Contract owners’ equity end of period	$	4,258		3,838		163,516		106,490		–		320,230		5,675,305		6,474,126
CHANGES IN UNITS:
Beginning units		265		24,231		8,723		6,455		63,387		52,440		363,832		491,545
Units purchased		148		658		4,873		2,348		94,371		22,145		–		172,534
Units redeemed		(148	)	(24,624	)	(746	)	(80	)	(157,758	)	(11,198	)	(72,776	)	(300,247	)
Ending units		265		265		12,850		8,723		–		63,387		291,056		363,832

(Continued)

37

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	VKGrInc					VKGrowth				VKRealEstSec				WRAdSmCap
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	4,081		2,573		(2,681	)	(784	)	4,524		2,005		(2,443	)	(739	)
Realized gain (loss) on investments		44,933		7,606		17,258		2,125		36,070		29,845		9,105		409
Change in unrealized gain (loss) on investments		(16,196	)	135,475		15,893		13,918		64,125		42,525		(2,594	)	22,470
Reinvested capital gains		137,193		8,050		12,739		–		82,875		19,873		22,148		–
Net increase (decrease) in contract owners’ equity resulting from operations		170,011		153,704		43,209		15,259		187,594		94,248		26,216		22,140
Equity transactions:
Purchase payments received from contract owners (note 3)		393,643		455,167		51,399		26,847		411,264		338,906		111,984		126,393
Transfers between funds		355,900		457,098		297,347		86,316		229,325		164,155		(17,403	)	(1,305	)
Redemptions (note 3)		(206,160	)	(39,600	)	(62,938	)	(10,255	)	(66,550	)	(7,546	)	(30,440	)	(1,750	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(3,745	)	(1,013	)	(1,492	)	(14	)	(564	)	–		(1,496	)	(11	)
Adjustments to maintain reserves		(35	)	6		(50	)	9		(25	)	(36	)	(13	)	11
Net equity transactions		539,603		871,658		284,266		102,903		573,450		495,479		62,632		123,338
Net change in contract owners’ equity		709,614		1,025,362		327,475		118,162		761,044		589,727		88,848		145,478
Contract owners’ equity beginning of period		1,500,210		474,848		136,813		18,651		661,824		72,097		154,603		9,125
Contract owners’ equity end of period	$	2,209,824		1,500,210		464,288		136,813		1,422,868		661,824		243,451		154,603
CHANGES IN UNITS:
Beginning units		107,166		38,228		9,302		1,518		38,415		5,655		11,284		747
Units purchased		57,187		75,707		24,241		8,770		47,999		45,207		8,750		12,718
Units redeemed		(19,031	)	(6,769	)	(6,429	)	(986	)	(14,768	)	(12,447	)	(4,023	)	(2,181	)
Ending units		145,322		107,166		27,114		9,302		71,646		38,415		16,011		11,284

(Continued)

38

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	WFComStk					WFGrInc				WFGrowth				WFLgCpGr
Investment activity:	2005			2004		2005		2004		2005		2004		2005		2004
Net investment income (loss)	$	(52,885	)	(53,486	)	(1,810	)	(1,471	)	(479	)	(111	)	(25,797	)	(25,793	)
Realized gain (loss) on investments		166,407		76,521		7,888		530		3,096		(56	)	(206,850	)	(602,331	)
Change in unrealized gain (loss) on investments		(333,946	)	18,748		(14,240	)	19,115		4,674		1,421		352,545		765,975
Reinvested capital gains		615,613		299,824		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		395,189		341,607		(8,162	)	18,174		7,291		1,254		119,898		137,851
Equity transactions:
Purchase payments received from contract owners (note 3)		268,719		372,606		6,556		11,169		150,516		4,473		218,083		203,411
Transfers between funds		(146,228	)	(11,597	)	6,894		11,416		32,510		13,063		9,275		(123,151	)
Redemptions (note 3)		(629,629	)	(508,831	)	(10,594	)	(4,879	)	(26,026	)	–		(292,388	)	(378,964	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,237	)	(3,404	)	–		–		–		–		(3,640	)	(4,152	)
Contingent deferred sales charges (note 2)		(6,924	)	(6,996	)	(228	)	–		(1,303	)	–		(3,076	)	(2,211	)
Adjustments to maintain reserves		2,690		2,004		(6	)	(27	)	(13	)	(3	)	(21	)	79
Net equity transactions		(514,609	)	(156,218	)	2,622		17,679		155,684		17,533		(71,767	)	(304,988	)
Net change in contract owners’ equity		(119,420	)	185,389		(5,540	)	35,853		162,975		18,787		48,131		(167,137	)
Contract owners’ equity beginning of period		4,395,409		4,210,020		256,955		221,102		18,787		–		2,013,457		2,180,594
Contract owners’ equity end of period	$	4,275,989		4,395,409		251,415		256,955		181,762		18,787		2,061,588		2,013,457
CHANGES IN UNITS:
Beginning units		319,273		332,850		36,418		33,718		1,702		–		89,847		104,342
Units purchased		37,553		62,345		3,342		3,761		17,399		1,844		16,452		12,997
Units redeemed		(76,961	)	(75,922	)	(3,079	)	(1,061	)	(3,800	)	(142	)	(19,895	)	(27,492	)
Ending units		279,865		319,273		36,681		36,418		15,301		1,702		86,404		89,847

(Continued)

39

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2005 and 2004

	WFMidCpGr
Investment activity:	2005			2004
Net investment income (loss)	$	(4,980	)	–
Realized gain (loss) on investments		44,621		–
Change in unrealized gain (loss)on investments		12,675		–
Reinvested capital gains		32,725		–
Net increase (decrease) in contract owners’ equity resulting from operations		85,041		–
Equity transactions:
Purchase payments received from contract owners (note 3)		75,816		–
Transfers between funds		287,050		–
Redemptions (note 3)		(50,693	)	–
Annuity benefits		–		–
Annual contract maintenance charges (note 2)		–		–
Contingent deferred sales charges (note 2)		(198	)	–
Adjustments to maintain reserves		53		–
Net equity transactions		312,028		–
Net change in contract owners’ equity		397,069		–
Contract owners’ equity beginning of period		–		–
Contract owners’ equity end of period	$	397,069		–
CHANGES IN UNITS:
Beginning units		–		–
Units purchased		86,853		–
Units redeemed		(51,111	)	–
Ending units		35,742		–

See accompanying notes to financial statements.

40

NATIONWIDE VARIABLE ACCOUNT

NOTES TO FINANCIAL STATEMENTS

December 31, 2005 and 2004

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

The Nationwide Variable Account (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on March 3, 1976. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers Individual Deferred Variable Annuity Contracts through the Account. As of December 25, 1982, only tax qualified contracts are issued. The primary distribution for the contract is through the Company for Individual Retirement Account rollovers; however, other distributors may be utilized.

(b) The Contracts

Only contracts without a front-end sales charge, but with a contingent deferred sales charge and certain other fees, are offered for purchase. See note 2 for a discussion of contract charges.

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

AIM Basic Balanced Fund – Investor Class (AIMBBal)

AIM Dynamics Fund – Investor Class (AIMDynam)

     (formerly INVESCO Dynamics Fund – Investor Class)

AIM Small Company Growth Fund – Investor Class (AIMSmCoGr)

    (formerly INVESCO Small Company Growth Fund – Investor Class)

AIM Total Return Fund – Investor Class (AIMTotRet)

    (formerly INVESCO Total Return Fund – Investor Class)*

American Century Growth Fund – Investor Class (ACGroI)

American Century Income & Growth Fund – Advisor Class (ACIncGroA)

American Century Income & Growth Fund – Investor Class (ACIncGroI)

American Century International Growth Fund – Advisor Class (ACIntlGrA)

American Century International Growth Fund – Investor Class (ACIntlGrI)

American Century Short-Term Government Fund – Investor Class (ACSTGvtI)

American Century Ultra^® Fund – Investor Class (ACUltraI)

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

American Century VP – International Fund – Class IV (ACVPInt4)

Credit Suisse Global Fixed Income Fund – Common Shares (CSGIFixInc)

Credit Suisse Mid Cap Growth Fund – Common Shares (CSMidCpGr)

Delaware Delchester Fund – Institutional Class (DeDelFund)

Dreyfus A Bonds Plus, Inc. (DryABonds)

Dreyfus Appreciation Fund, Inc. (DryApp)

Dreyfus Balanced Fund, Inc. (DryBal)*

Dreyfus Emerging Leaders Fund (DryELead)

Dreyfus Premier Balanced Opportunity Fund – Class Z (DryBalOpp)

Dreyfus Premier Third Century Fund, Inc. – Class Z, The (Dry3dCen)

Dreyfus S&P 500 Index Fund (Dry500Ix)

Evergreen Equity Income Fund – Class I (EvInc)

Federated Equity Income Fund – Class F Shares (FedEqInc)

Federated High Yield Trust (FedHiYld)

Federated Intermediate Corporate Bond Fund – Institutional Service Class (FedIntCorpBd)

    (formerly Federated Intermediate Income Fund – Institutional Service Class)

(Continued)

41

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Federated Investment Series Funds, Inc. – Federated Bond Fund – Class F (FedBdFd)

Fidelity^® Advisor Balanced Fund – Class A (FidABalA)

Fidelity^® Advisor Balanced Fund – Class T (FidABalT)

Fidelity^® Advisor Equity Growth Fund – Class A (FidAEGroA)

Fidelity^® Advisor Equity Income Fund – Class A (FidAEqIncA)

Fidelity^® Advisor Equity Income Fund – Class T (FidAEqIncT)

Fidelity^® Advisor Growth Opportunities Fund – Class A (FidAGrOppA)

Fidelity^® Advisor Growth Opportunities Fund – Class T (FidAGrOppT)

Fidelity^® Advisor High Income Advantage Fund – Class T (FidAHiIncT)

Fidelity^® Advisor Overseas Fund – Class A (FidAOvA)

Fidelity^® Asset Manager™ (FidAsMgr)

Fidelity^® Capital & Income Fund (FidCapInc)

Fidelity^® Equity-Income Fund (FidEqInc)

Fidelity^® Magellan^® Fund (FidMgln)

Fidelity^® Puritan^® Fund (FidPurtn)

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

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

Fidelity^® VIP – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R)

Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A (FranMutSer)

Franklin Small Mid Cap Growth Fund I – Class A (FranSmMCpGr)

    (formerly Franklin Small Cap Growth Fund I – Class A)

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

Franklin Templeton VIP – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3)

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

Franklin VIT – Franklin Balance Sheet Investment Fund – Class A (FranBSInv)

Gartmore^† Bond Fund – Class D (GartBond)

Gartmore^† Bond Index Fund – Class A (GartBdIx)

Gartmore^† Government Bond Fund – Class D (GartGvtBd)

Gartmore^† Growth Fund – Class A (GartGrowA)

Gartmore^† Growth Fund – Class D (GartGrowD)

Gartmore^† GVIT ID Aggressive Fund – Class II (GVITIDAgg2)

Gartmore^† GVIT ID Conservative Fund – Class II (GVITIDCon2)

Gartmore^† GVIT ID Moderate Fund – Class II (GVITIDMod2)

Gartmore^† GVIT ID Moderately Aggressive Fund – Class II (GVITIDModAg2)

Gartmore^† GVIT ID Moderately Conservative Fund – Class II (GVITIDModCon2)

Gartmore^† GVIT J.P. Morgan Balanced Fund – Class I (GVITJPBal)

Gartmore^† ID Aggressive Fund – Service Class (GartIDAgg)

Gartmore^† ID Conservative Fund – Service Class (GartIDCon)

Gartmore^† ID Moderate Fund – Service Class (GartIDMod)

Gartmore^† ID Moderately Aggressive Fund – Service Class (GartIDModAgg)

Gartmore^† ID Moderately Conservative Fund – Service Class (GartIDModCon)

Gartmore^† International Index Fund – Class A (GartIntlndx)

Gartmore^† Large Cap Value Fund – Class A (GartLgCpVal)

Gartmore^† Mid Cap Market Index Fund – Class A (GartMdCpMkt)

Gartmore^† Money Market Fund – Prime Shares (GartMyMkt)

Gartmore^† Money Market Fund – Service Class (GartMyMktS)

Gartmore^† Nationwide Fund – Class D (GartNWFund)

Gartmore^† S&P 500 Index Fund – Service Class (GartSP500Indx)

Gartmore^† Small Cap Fund – Class A (GartSmCap)

Gartmore^† Small Cap Index Fund – Class A (GartSmCapIx)

Gartmore^† Value Opportunities Fund – Class A (GartValOpp)

(Continued)

42

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Janus Adviser Balanced Fund (JanBal)

Janus Adviser International Growth Fund (JanIntlGr) (formerly Janus Adviser International Fund)

Janus Adviser Worldwide Fund – Class S (JanWorld)

Janus Fund (JanFund)

Janus Twenty Fund (Jan20Fd)

Janus Worldwide Fund (JanWrldwde)

Lazard Small Cap Portfolio – Open Shares (LazSmCap)

MFS^® Strategic Income Fund – Class A (MFSStratIncA)

Nationwide^® Large Cap Growth Fund – Class A*

Nationwide^® Mutual Funds – Prestige Balanced Fund – Class A*

Nationwide^® Mutual Funds – Prestige International Fund – Class A*

Neuberger Berman EF – Guardian Fund – Investor Class Shares (NBEFGuard)

Neuberger Berman EF – Partners Fund – Investor Class Shares (NBEFPart)

Neuberger Berman ET – Genesis Fund – Trust Class Shares (NBETGen)

Neuberger Berman ET – Guardian Fund – Trust Class Shares (NBETGuard)

Neuberger Berman ET – Partners Fund – Trust Class Shares (NBETPart)

Neuberger Berman ET – Socially Responsive Fund – Trust Class Shares (NBETSocRes)

Neuberger Berman Limited Maturity Bond Fund^® – Investor Class Shares (NBLtdMat)

Oppenheimer Capital Appreciation Fund A (OppCapApA)

Oppenheimer Champion Income Fund A (OppChpInc)

Oppenheimer Global Fund A (OppGlob)

Oppenheimer Global Securities Fund/VA – Class 4 (OppGlSec4)

Oppenheimer Strategic Income Fund – Class A (OppStratInc)

Phoenix Balanced Fund – Class A (PhxBalFd)

    (formerly Phoenix-Oakhurst Balanced Fund – Class A)

PIMCO Total Return Fund – Class A (PimTotRet)

Putnam International Equity Fund – Class A (PIntEq)

Putnam Voyager Fund – Class A (PVoyager)

Strong Advisor Mid Cap Growth Fund – Class Z (StrMidCap)*

Templeton Foreign Fund – Class A (TemForFd)

Van Kampen Growth and Income Fund – Class A (VKGrInc)

Van Kampen Growth Fund – Class A (VKGrowth) (formerly Van Kampen Growth Fund – Class A)

Van Kampen Real Estate Securities Fund – Class A (VKRealEstSec)

Waddell & Reed Advisors Small Cap Fund, Inc. – Class A (WRAdSmCap)

Wells Fargo Advantage Funds – Common Stock Fund – Class Z (WFComStk)

    (formerly Strong Advisor Common Stock Fund – Class Z)

Wells Fargo Advantage Funds – Growth and Income Fund (WFGrInc)

    (formerly Strong Growth and Income Fund)

Wells Fargo Advantage Funds – Growth Fund (WFGrowth) (formerly Strong Growth Fund)

Wells Fargo Advantage Funds – Large Cap Growth Fund (WFLgCpGr)

    (formerly Strong Large Cap Growth Fund)

Wells Fargo Advantage Funds^SM – Mid Cap Growth Fund – Class Z (WFMidCpGr)

    (formerly Strong Advisor Mid Cap Growth Fund – Class Z)

* At December 31, 2005, contract owners were not invested in this fund.

^† Gartmore is an affiliate of the Company.

The contract owners’ equity is affected by the investment results of each fund, equity transactions by contract owners and certain contract expenses (see note 2). The accompanying financial statements include only contract owners’ purchase payments pertaining to the variable portions of their contracts and exclude any purchase payments for fixed dollar benefits, the latter being included in the accounts of the Company.

(Continued)

43

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued based on the closing net asset value per share at December 31, 2005 of such funds, which value their investment securities at fair value. The cost of investments sold is determined on the specific identification basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividends (which include capital gain distributions) are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

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

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

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

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

(f) Calculation of Annuity Reserves

Annuity reserves are computed for contracts in the variable payout stage according to industry standard mortality tables. The assumed investment return is 3.5% unless the annuitant elects otherwise, in which case the rate may vary from 3.5% to 7%, as regulated by the laws of the respective states. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Account by the Company to cover greater longevity of annuitants than expected. Conversely, if reserves exceed amounts required, transfers may be made to the Company.

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is surrendered, the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge.

For Soloist contracts issued prior to January 1, 1993, the contingent deferred sales charge will be equal to 5% of purchase payments surrendered from the contract. For Soloist contracts issued on or after January 1, 1993, the Company will deduct a contingent deferred sales charge not to exceed 7% of the lesser of purchase payments surrendered. This charge declines 1% per year. After the purchase payment has been held in the contract for 7 years the charge is 0%.

For Successor contracts, the standard contract does not include a contingent deferred sales charge. However, one of two optional contingent deferred sales charge schedules may be elected in return for a reduction in the annual mortality and expense risk charge.

No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company.

On Soloist contracts, the Company deducts an annual contract maintenance charge of $30, which is satisfied by surrendering units. No contract maintenance charge is deducted on Successor contracts.

The Company deducts a mortality and expense risk charge assessed through the daily unit value calculation. The Option table below illustrates the annual rate for all contract level charges by product as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract holders. The options and related charges are described in more detail in the applicable product prospectus.

(Continued)

44

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Nationwide Variable Account Options	Soloist		Successor
Variable Account Charges – Recurring	1.30	%	1.20	%
CDSC Options:
Seven Year CDSC	–		(0.25	%)
Five Year CDSC	–		(0.10	%)
Reduced Purchase Payment Option:
Initial lowered to $1,000 and subsequent lowered to $25.
In states other than Oregon	–		0.25	%
In Oregon only	–		0.30	%
Death Benefit Options:
Five-Year Reset	–		0.05	%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
One-Year Enhanced (for contracts issued on or after 1-2-01)	–		0.15	%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
Greater of One-Year or 5% Enhanced (for contracts issued on or after 1-2-01)	–		0.20	%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders, (iii) highest contract value before 86th birthday less surrenders or (iv) the 5% interest anniversary value.
One-Year Step Up (for contracts issued prior to 1-2-01)	–		0.10	%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value before 86th birthday less surrenders.
Guaranteed Minimum Income Benefit Options:
Provide for minimum guaranteed value that may replace contract value for annuitization under certain circumstances (for contracts issued prior to May 1, 2003).
Option 1	–		0.45	%
Option 2	–		0.30	%
Beneficiary Protector Option	–		0.40	%
Upon annuitant death, in addition to any death benefit payable, an additional amount will be credited to contract.
Maximum Variable Account Charges(1):	1.30	%	2.55	%

⁽¹⁾ When maximum options are elected. The contract charges indicated in bold, when summarized, represent the Maximum Variable Account Charges if all optional benefits available under the contract are elected including the most expensive of the mutually exclusive optional benefits.

(Continued)

45

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2005.

	Total		AIMBBal	AIMDynam	AIMSmCoGr	AIMTotRet	ACGroI	ACIncGroA	ACIncGroI
0.95%	$	356,514	361	4,707	1,851	428	929	8,090	–
1.00%		15,811	–	127	28	–	16	281	–
1.05%		8,310	2	467	150	2	413	859	–
1.10%		114,746	44	3,683	243	53	598	2,344	–
1.15%		24,066	–	313	138	–	113	151	–
1.20%		272,425	527	5,025	1,989	673	3,607	8,120	–
1.25%		56,923	50	2,036	257	68	350	2,322	–
1.30%		3,173,791	–	52,966	23	–	99,698	104	92,788
1.35%		37,606	12	832	87	14	578	556	–
1.40%		95,212	362	1,069	182	440	461	2,809	–
1.45%		94,151	281	2,261	329	325	1,899	2,085	–
1.50%		18,697	25	387	232	30	188	455	–
1.55%		8,472	12	93	30	14	–	180	–
1.60%		3,490	–	7	12	–	–	9	–
1.65%		6,220	–	14	–	–	–	580	–
1.70%		3,404	–	49	–	6	23	20	–
1.75%		299	–	–	–	–	–	14	–
1.80%		299	–	–	–	–	–	–	–
1.85%		575	–	–	–	–	–	–	–
1.90%		709	–	–	–	–	–	25	–
2.05%		16	1	–	–	2	–	–	–
2.10%		15	–	–	–	–	–	–	–
2.25%		178	–	–	–	–	–	–	–
Totals	$	4,291,929	1,677	74,036	5,551	2,055	108,873	29,004	92,788
	ACIntlGrA		ACIntlGrI	ACSTGvtI	ACUltraI	ACVPInt4	CSGIFixInc	CSMidCpGr	DeDelFund
0.95%	$	1,254	–	6,326	8,927	90	–	–	–
1.00%		–	–	1,513	108	–	–	–	–
1.05%		–	–	–	234	33	–	–	–
1.10%		312	–	198	4,997	91	–	–	–
1.15%		192	–	–	207	92	–	–	–
1.20%		1,231	–	2,154	12,554	799	–	–	–
1.25%		104	–	145	1,549	23	–	–	–
1.30%		–	22,375	22,965	180,374	5,351	13,605	51,461	6,638
1.35%		40	–	158	1,636	39	–	–	–
1.40%		53	–	397	390	75	–	–	–
1.45%		199	–	1,466	2,437	166	–	–	–
1.50%		78	–	41	202	–	–	–	–
1.55%		–	–	–	28	–	–	–	–
1.60%		–	–	–	7	47	–	–	–
1.65%		–	–	116	208	–	–	–	–
1.70%		–	–	15	–	–	–	–	–
1.75%		–	–	15	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	34	19	–	–	–	–
1.90%		–	–	7	–	22	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	13	–	–	–	–
Totals	$	3,463	22,375	35,550	213,890	6,828	13,605	51,461	6,638
	DryABonds		DryApp	DryELead	DryBalOpp	Dry3dCen	Dry500Ix	EvInc	FedEqInc
0.95%	$	–	10,314	80	1,284	286	–	–	135
1.00%		–	387	–	1,251	–	–	–	–
1.05%		–	–	–	518	–	–	–	–
1.10%		–	3,261	–	1,108	8	–	–	–
1.15%		–	258	–	–	132	–	–	–
1.20%		–	8,740	870	1,707	1,191	–	–	770
1.25%		–	1,390	52	274	236	–	–	119
1.30%		39,321	36,897	–	–	11,882	239,965	14,392	–

(Continued)

46

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	DryABonds		DryApp	DryELead	DryBalOpp	Dry3dCen	Dry500Ix	EvInc	FedEqInc
1.35%		–	1,810	–	243	20	–	–	11
1.40%		–	443	–	17,526	17	–	–	–
1.45%		–	1,116	–	1,404	356	–	–	72
1.50%		–	583	–	64	5	–	–	2
1.55%		–	403	–	–	–	–	–	–
1.60%		–	19	–	274	–	–	–	–
1.65%		–	55	–	–	188	–	–	–
1.70%		–	22	–	5	15	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	34	–	–	21	–	–	–
1.90%		–	58	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	39,321	65,790	1,002	25,658	14,357	239,965	14,392	1,109
	FedHiYld		FedIntCorpBd	FedBdFd	FidABalA	FidABalT	FidAEGroA	FidAEqIncA	FidAEqIncT
0.95%	$	2,302	3,462	1,011	2,401	–	6,554	18,453	–
1.00%		67	–	–	–	–	–	205	–
1.05%		8	–	250	75	–	–	347	–
1.10%		985	1,887	742	1,778	–	207	3,841	–
1.15%		240	134	–	–	–	1	961	–
1.20%		2,144	2,182	956	1,233	–	2,225	8,431	–
1.25%		326	196	546	890	–	813	1,654	–
1.30%		18,754	–	26,801	–	15,182	–	175	55,460
1.35%		64	502	51	577	–	119	2,526	–
1.40%		1,063	586	261	37	–	434	1,923	–
1.45%		825	410	563	757	–	991	3,727	–
1.50%		134	27	–	178	–	136	763	–
1.55%		–	3,071	–	–	–	9	548	–
1.60%		16	–	–	–	–	11	63	–
1.65%		8	299	–	–	–	193	558	–
1.70%		54	–	–	19	–	12	11	–
1.75%		2	15	–	–	–	–	34	–
1.80%		–	–	–	–	–	–	20	–
1.85%		17	30	–	–	–	–	41	–
1.90%		6	2	11	–	–	–	28	–
2.05%		–	–	11	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	27,015	12,803	31,203	7,945	15,182	11,705	44,309	55,460
	FidAGrOppA		FidAGrOppT	FidAHiIncT	FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln
0.95%	$	365	–	5,149	663	–	–	–	–
1.00%		30	–	222	–	–	–	–	–
1.05%		–	–	–	–	–	–	–	–
1.10%		839	–	65	68	–	–	–	–
1.15%		1	–	174	–	–	–	–	–
1.20%		4,260	–	1,210	663	–	–	–	–
1.25%		183	–	229	897	–	–	–	–
1.30%		13	52,397	26,738	–	44,493	6,410	137,223	246,780
1.35%		137	–	100	17	–	–	–	–
1.40%		372	–	214	3	–	–	–	–
1.45%		821	–	296	104	–	–	–	–
1.50%		223	–	105	–	–	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		–	–	–	–	–	–	–	–
1.65%		–	–	–	–	–	–	–	–
1.70%		–	–	42	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–

(Continued)

47

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	FidAGrOppA		FidAGrOppT	FidAHiIncT	FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln
1.85%		–	–	–	–	–	–	–	–
1.90%		20	–	4	21	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	7,264	52,397	34,548	2,436	44,493	6,410	137,223	246,780
	FidPurtn		FidVIPHI	FidVIPOvS2R	FranMutSer	FranSmMCpGr	FrVIPForSec3	FranBSInv	GartBond
0.95%	$	–	–	681	16,276	12,965	3,608	6,871	2,304
1.00%		–	–	–	495	472	82	356	54
1.05%		–	–	–	101	590	14	14	586
1.10%		–	–	1,236	2,488	997	325	2,555	19
1.15%		–	–	13	491	119	204	789	–
1.20%		–	–	892	10,032	5,195	3,069	8,564	562
1.25%		–	–	52	2,284	1,834	167	2,697	237
1.30%		132,716	265	1,920	59,386	13	23,198	326	22,637
1.35%		–	–	91	1,659	361	225	2,302	23
1.40%		–	–	57	1,220	297	662	2,429	8
1.45%		–	–	373	3,970	1,652	671	4,976	792
1.50%		–	–	41	696	505	240	335	–
1.55%		–	–	–	96	33	–	109	–
1.60%		–	–	28	145	8	5	44	–
1.65%		–	–	–	606	142	41	475	–
1.70%		–	–	–	12	28	–	6	5
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	21	21	–	–	–
1.85%		–	–	–	2	–	–	21	–
1.90%		–	–	–	68	3	–	–	11
2.05%		–	–	–	–	–	–	–	1
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	132,716	265	5,384	100,048	25,235	32,511	32,869	27,239
	GartBdIx		GartGvtBd	GartGrowA	GartGrowD	GVITIDAgg2	GVITIDCon2	GVITIDMod2	GVITIDModAg2
0.95%	$	598	15,355	1,167	697	–	–	–	–
1.00%		–	1,914	–	16	–	–	–	–
1.05%		–	41	–	–	–	–	–	–
1.10%		200	3,387	107	40	–	–	–	–
1.15%		–	87	–	–	–	–	–	–
1.20%		1,135	3,489	380	605	–	–	–	–
1.25%		113	149	79	–	–	–	–	–
1.30%		–	38,797	–	14,001	2,777	109	9,072	8,530
1.35%		187	676	34	20	–	–	–	–
1.40%		3	3,025	3,834	7	–	–	–	–
1.45%		728	1,072	963	94	–	–	–	–
1.50%		13	42	–	–	–	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		15	14	–	–	–	–	–	–
1.65%		40	–	–	–	–	–	–	–
1.70%		–	114	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	32	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	3,032	68,194	6,564	15,480	2,777	109	9,072	8,530
	GVITIDModCon2		GVITJPBal	GartIDAgg	GartIDCon	GartIDMod	GartIDModAgg	GartIDModCon	GartIntlndx
0.95%	$	–	555	1,113	7,461	29,253	5,086	7,967	–
1.00%		–	–	1,306	397	673	312	280	–
1.05%		–	–	–	–	–	–	–	–
1.10%		–	–	2,464	1	7,991	4,544	1,864	22

(Continued)

48

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	GVITIDModCon2		GVITJPBal	GartIDAgg	GartIDCon	GartIDMod	GartIDModAgg	GartIDModCon	GartIntlndx
1.15%		–	–	594	9	6,016	2,447	281	–
1.20%		–	461	3,834	3,561	10,333	6,168	1,378	271
1.25%		–	28	162	15	1,931	706	1,657	1
1.30%		506	907	26	155	13	245	–	–
1.35%		–	16	532	1,124	1,094	1,073	728	1
1.40%		–	–	459	–	2,367	890	1,906	–
1.45%		–	220	1,007	3,645	5,256	4,565	1,597	75
1.50%		–	6	185	62	2,219	1,960	216	–
1.55%		–	–	–	145	1,460	147	–	–
1.60%		–	–	36	–	314	97	11	–
1.65%		–	–	29	–	525	118	27	1
1.70%		–	–	–	–	2,693	–	–	–
1.75%		–	–	–	–	104	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	17	–	–
1.90%		–	–	–	–	–	4	–	2
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	506	2,193	11,747	16,575	72,242	28,379	17,912	373
	GartLgCpVal		GartMdCpMkt	GartMyMkt	GartMyMktS	GartNWFund	GartSP500Indx	GartSmCap	GartSmCapIx
0.95%	$	2,233	3,349	–	7,907	843	5,383	3,413	2,807
1.00%		–	89	–	338	81	464	105	7
1.05%		17	–	–	765	–	268	–	–
1.10%		1,019	1,148	–	14,010	652	3,772	215	724
1.15%		–	151	–	3,711	–	306	611	65
1.20%		2,868	2,347	–	25,374	1,911	11,766	1,690	2,051
1.25%		972	162	–	3,013	280	2,119	299	1,010
1.30%		15,270	12	132,584	283	68,469	15,132	38,063	15
1.35%		72	472	–	2,301	38	1,009	131	573
1.40%		12	298	–	1,055	88	86	297	185
1.45%		452	1,140	–	3,646	507	3,712	727	541
1.50%		111	290	–	811	2	1,035	25	247
1.55%		–	–	–	–	–	52	–	–
1.60%		6	257	–	36	–	28	284	31
1.65%		111	101	–	63	12	41	56	44
1.70%		–	–	–	89	–	–	–	–
1.75%		–	21	–	39	–	19	–	–
1.80%		–	–	–	–	–	110	–	–
1.85%		–	54	–	–	–	62	–	–
1.90%		–	1	–	56	–	–	–	–
2.05%		–	–	–	–	–	1	–	–
2.10%		–	–	–	15	–	–	–	–
2.25%		–	–	–	43	–	54	–	–
Totals	$	23,143	9,892	132,584	63,555	72,883	45,419	45,916	8,300
	GartValOpp		JanBal	JanIntlGr	JanWorld	JanFund	Jan20Fd	JanWrldwde	LazSmCap
0.95%	$	2,170	4,315	–	1,418	4,556	4,089	53	713
1.00%		52	131	–	62	141	22	62	–
1.05%		–	28	–	11	321	484	71	–
1.10%		124	1,687	–	806	1,841	2,503	34	209
1.15%		–	60	–	–	147	1,154	–	–
1.20%		438	3,921	324	2,870	2,348	6,639	123	695
1.25%		736	749	95	829	2,146	2,594	921	928
1.30%		–	57	55	1	94,548	282,265	86,894	35,727
1.35%		125	656	3	390	486	316	–	150
1.40%		133	788	–	103	73	557	–	5
1.45%		354	1,741	79	1,569	1,169	1,176	75	195
1.50%		41	288	–	15	179	157	33	48
1.55%		–	–	–	4	32	35	–	–
1.60%		352	289	–	–	–	28	–	224
1.65%		–	186	–	66	26	42	–	–
1.70%		–	10	–	9	32	69	–	–

(Continued)

49

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	GartValOpp		JanBal	JanIntlGr	JanWorld	JanFund	Jan20Fd	JanWrldwde	LazSmCap
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	1	6	16	12	72	–	66
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	4,525	14,907	562	8,169	108,057	302,202	88,266	38,960
	MFSStratIncA		NBEFGuard	NBEFPart	NBETGen	NBETGuard	NBETPart	NBETSocRes	NBLtdMat
0.95%	$	–	–	–	22,686	641	1,623	1,324	–
1.00%		–	–	–	832	47	305	–	–
1.05%		–	–	–	130	–	17	–	–
1.10%		–	–	–	5,132	393	12	612	–
1.15%		–	–	–	1,075	–	–	27	–
1.20%		–	–	–	17,368	1,553	1,274	151	–
1.25%		–	–	–	2,806	637	883	13	–
1.30%		12,535	40,438	80,351	139,709	–	–	1,019	15,736
1.35%		–	–	–	3,051	192	68	279	–
1.40%		–	–	–	2,570	6	–	528	–
1.45%		–	–	–	3,954	506	178	223	–
1.50%		–	–	–	468	2	12	–	–
1.55%		–	–	–	150	–	95	–	–
1.60%		–	–	–	129	–	–	–	–
1.65%		–	–	–	25	–	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	39	–	–	–	–
1.90%		–	–	–	7	–	9	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	12,535	40,438	80,351	200,131	3,977	4,476	4,176	15,736
	OppCapApA		OppChpInc	OppGlob	OppGlSec4	OppStratInc	PhxBalFd	PimTotRet	PIntEq
0.95%	$	14,073	977	14,140	6,764	1,557	–	13,675	–
1.00%		344	–	569	201	–	–	170	–
1.05%		60	–	613	593	23	–	–	–
1.10%		3,121	1	3,412	3,458	375	–	8,123	–
1.15%		63	–	996	347	41	–	915	–
1.20%		7,215	697	9,685	6,204	1,630	–	9,188	–
1.25%		638	143	2,559	1223	101	–	849	–
1.30%		19	151	150,289	30,656	–	14,201	780	–
1.35%		468	23	617	815	241	–	1,382	–
1.40%		798	–	1,232	250	488	–	1,321	–
1.45%		1,811	224	1,374	2,411	996	–	3,715	54
1.50%		543	–	488	134	–	–	2,644	1
1.55%		–	–	79	–	–	–	1,638	–
1.60%		79	–	9	32	10	–	286	–
1.65%		243	–	19	43	–	–	687	–
1.70%		10	–	–	12	–	–	–	–
1.75%		–	–	22	–	–	–	–	–
1.80%		20	–	–	–	–	–	107	–
1.85%		–	1	–	59	–	–	4	–
1.90%		–	–	53	27	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	12	–	–	56	–
Totals	$	29,505	2,217	186,156	53,241	5,462	14,201	45,540	55

(Continued)

50

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	PVoyager		StrMidCap	TemForFd	VKGrInc	VKGrowth	VKRealEstSec	WRAdSmCap	WFComStk
0.95%	$	798	471	9,816	10,984	1,446	3,149	898	6,814
1.00%		–	–	34	227	–	497	–	439
1.05%		–	–	45	–	14	–	–	146
1.10%		19	28	1,253	1,664	75	1,066	461	1,120
1.15%		67	8	2	52	–	88	–	–
1.20%		642	304	2,170	3,461	604	4,288	581	4,380
1.25%		–	180	109	412	70	701	121	1,293
1.30%		–	–	55,632	40	122	84	–	27
1.35%		–	19	308	1,910	31	674	4	439
1.40%		–	30	1,214	368	2	490	–	35,845
1.45%		10	147	892	1,218	294	1,349	366	2,013
1.50%		36	8	58	59	14	256	2	285
1.55%		–	–	–	–	9	–	–	–
1.60%		–	–	–	22	–	58	10	23
1.65%		–	–	76	60	–	96	–	–
1.70%		–	–	–	–	–	–	–	22
1.75%		–	–	–	14	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	75	–	–	–	2
1.90%		–	–	–	–	–	22	–	37
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	1,572	1,195	71,609	20,566	2,681	12,818	2,443	52,885
	WFGrInc		WFGrowth	WFLgCpGr	WFMidCpGr
0.95%	$	1,105	9	–	2,936
1.00%		–	–	–	–
1.05%		–	–	–	–
1.10%		–	5	–	80
1.15%		–	–	–	23
1.20%		1,277	358	–	840
1.25%		103	1	–	407
1.30%		–	–	25,797	–
1.35%		15	8	–	65
1.40%		9	–	–	100
1.45%		189	95	–	503
1.50%		1	–	–	26
1.55%		–	–	–	–
1.60%		115	–	–	–
1.65%		–	–	–	–
1.70%		–	–	–	–
1.75%		–	–	–	–
1.80%		–	–	–	–
1.85%		40	3	–	–
1.90%		–	–	–	–
2.05%		–	–	–	–
2.10%		–	–	–	–
2.25%		–	–	–	–
Totals	$	2,854	479	25,797	4,980

(Continued)

51

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(3) Related Party Transactions

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

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2005 and 2004, total transfers to the Account from the fixed account were $462,300 and $1,336,803, respectively, and total transfers from the Account to the fixed account were $761,846 and $994,181, respectively. Transfers from the Account to the fixed account are included in redemptions, and transfers to the Account from the fixed account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owners’ Equity.

For guaranteed minimum death benefits, the Company contributed $72,470 and $88,441 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2005 and 2004, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death, when applicable.

(Continued)

52

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(4) Financial Highlights

The Company offers several variable annuity products through the Account that have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit fair values and total returns.The following tabular presentation is a summary of units, unit fair values and contract owners’ equity outstanding for variable annuity contracts as of the end of the periods indicated, and contract expense rate, investment income ratio and total return for each period in the five-year period ended December 31, 2005. Beginning in 2003 the information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate. The unit fair values and total returns related to these identified contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented. For periods prior to 2003 the information is presented as a range of minimum and maximum values, however, such information is exclusive and independent for each column. Accordingly, there is no intentional relationship among and between the ranges of values presented for contract expense rate, unit fair value and total return.

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
AIM Basic Balanced Fund – Investor Class
2005	0.95% to 2.05%	29,943	$	10.28 to  10.23	$	307,515	1.83%	2.82% to    2.30%	(a) (b)
AIM Dynamics Fund – Investor Class
2005	0.95% to 1.70%	672,720		6.30 to    6.04		6,094,108	0.00%	9.32% to    8.49%
2004	0.95% to 1.70%	721,091		5.77 to    5.57		6,175,372	0.00%	10.88% to  10.04%
2003	0.95% to 1.70%	833,176		5.20 to    5.06		6,557,162	0.00%	36.96% to  35.93%
2002	0.95% to 1.70%	758,031		3.72 to    7.09		4,438,708	0.00%	-34.22% to -33.72%
2001	0.95% to 1.80%	857,934		5.65 to  10.74		7,890,231	0.00%	-34.11% to -33.53%
AIM Small Company Growth Fund – Investor Class
2005	0.95% to 1.60%	116,299		7.28 to    7.01		836,317	0.00%	4.49% to    3.81%
2004	0.95% to 1.60%	76,283		6.96 to    6.75		526,465	0.00%	11.97% to  11.23%
2003	0.95% to 1.65%	92,094		6.22 to    6.06		569,039	0.00%	32.23% to  31.29%
2002	0.95% to 1.65%	288,252		4.61 to    4.70		1,346,521	0.00%	-32.52% to -32.04%
2001	0.95% to 1.65%	51,770		6.84 to    6.92		357,182	0.00%	-22.23% to -21.67%
AIM Total Return Fund – Investor Class
2004	0.95% to 2.05%	34,578		9.92 to    9.42		338,932	1.28%	2.76% to    1.62%
2003	0.95% to 2.05%	43,049		9.66 to    9.27		411,647	1.49%	15.31% to  14.03%
2002	0.95% to 2.05%	44,076		8.13 to    8.37		366,162	1.67%	-14.24% to -13.28%
2001	0.95% to 1.70%	28,394		9.54 to    9.66		272,989	1.83%	-2.62% to   -1.88%
American Century Growth Fund – Investor Class
2005	0.95% to 1.50%	218,579		6.57 to    6.37		8,245,172	0.40%	3.85% to    3.27%
2004	0.95% to 1.70%	216,274		6.33 to    6.11		8,691,140	0.04%	8.86% to    8.04%
2003	0.95% to 1.70%	199,202		5.82 to    5.66		8,425,454	0.00%	23.23% to  22.30%
2002	0.95% to 1.70%	202,293		4.62 to  57.97		7,497,188	0.00%	-27.39% to -26.83%
2001	0.95% to 1.70%	195,078		6.37 to  79.51		11,383,722	0.00%	-20.06% to -19.45%
American Century Income & Growth Fund – Advisor Class
2005	0.95% to 1.90%	283,932		9.54 to    9.03		2,679,433	1.70%	3.54% to    2.55%
2004	0.95% to 1.90%	261,253		9.21 to    8.81		2,385,190	1.77%	11.64% to  10.57%
2003	0.95% to 1.90%	254,671		8.25 to    7.97		2,086,730	2.02%	28.10% to  26.88%
2002	0.95% to 1.90%	202,500		6.28 to    6.44		1,297,583	1.21%	-21.13% to -20.37%
2001	0.95% to 1.90%	147,837		7.99 to    8.09		1,192,789	0.89%	-10.20% to   -9.51%
American Century Income & Growth Fund – Investor Class
2005	1.30%	357,908		19.26		6,892,875	1.88%	3.43%
2004	1.30%	404,012		18.62		7,522,589	1.95%	11.51%
2003	1.30%	431,936		16.70		7,212,151	1.70%	27.94%
2002	1.30%	459,146		13.05		5,992,253	1.31%	-20.42%
2001	1.30%	524,128		16.40		8,595,867	1.04%	-9.57%
American Century International Growth Fund – Advisor Class
2005	0.95% to 1.50%	42,287		7.94 to    7.69		332,738	1.49%	11.99% to  11.37%
2004	0.95% to 1.50%	46,456		7.09 to    6.91		326,791	0.37%	13.95% to  13.31%
2003	0.95% to 1.90%	172,001		6.22 to    6.00		1,061,173	0.73%	23.92% to  22.74%
2002	0.95% to 1.90%	47,760		4.89 to    5.02		238,617	0.67%	-21.01% to -20.24%
2001	0.95% to 1.50%	27,565		6.24 to    6.29		173,061	0.17%	-28.10% to -27.69%

(Continued)

53

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
American Century International Growth Fund – Investor Class
2005	1.30%	73,235	$	22.75	$	1,666,429	1.64%	11.87%
2004	1.30%	91,337		20.34		1,857,828	0.96%	13.81%
2003	1.30%	115,663		17.87		2,067,110	0.81%	23.75%
2002	1.30%	109,800		14.44		1,585,693	0.71%	-20.30%
2001	1.30%	123,761		18.12		2,242,470	0.32%	-27.75%
American Century Short-Term Government Fund – Investor Class
2005	0.95% to 1.90%	169,897		11.76 to  11.14		2,899,210	3.08%	0.70% to   -0.26%
2004	0.95% to 1.90%	173,163		11.68 to  11.17		3,079,892	1.87%	-0.30% to   -1.25%
2003	0.95% to 1.90%	194,103		11.71 to  11.31		3,453,840	2.08%	0.15% to   -0.81%
2002	0.95% to 1.90%	209,853		11.40 to  27.03		4,038,133	3.13%	3.24% to    4.24%
2001	0.95% to 1.70%	111,419		11.08 to  26.02		2,321,700	4.03%	5.32% to    6.13%
American Century Ultra® Fund – Investor Class
2005	0.95% to 2.25%	1,011,426		7.13 to    9.16		16,072,947	0.12%	1.15% to   -0.17%
2004	0.95% to 2.25%	1,146,821		7.05 to    9.17		18,177,859	0.00%	9.64% to    8.20%
2003	0.95% to 2.25%	1,249,922		6.43 to    8.48		18,519,651	0.00%	24.63% to  23.00%
2002	0.95% to 1.90%	1,204,587		5.03 to  15.72		15,470,323	0.24%	-24.61% to -23.88%
2001	0.95% to 1.80%	1,276,469		6.68 to  20.73		22,547,669	0.00%	-16.16% to -15.43%
American Century VP – International Fund – Class IV
2005	0.95% to 1.90%	50,510		12.63 to  12.43		634,500	0.68%	11.90% to  10.83%
2004	1.05% to 1.90%	55,739		11.28 to  11.22		627,944	0.00%	12.81% to  12.17%	(a) (b)
Credit Suisse Global Fixed Income Fund – Common Shares
2005	1.30%	71,866		14.08		1,012,033	2.19%	-6.96%
2004	1.30%	65,791		15.14		995,819	7.01%	8.25%
2003	1.30%	72,744		13.98		1,017,116	13.00%	12.98%
2002	1.30%	50,344		12.38		623,027	9.19%	8.79%
2001	1.30%	16,666		11.38		189,593	4.44%	1.83%
Credit Suisse Mid Cap Growth Fund – Common Shares
2005	1.30%	243,568		15.58		3,795,283	0.00%	5.52%
2004	1.30%	268,276		14.77		3,961,483	0.00%	12.10%
2003	1.30%	282,864		13.17		3,726,032	0.00%	43.47%
2002	1.30%	263,436		9.18		2,418,674	0.00%	-31.07%
2001	1.30%	317,127		13.32		4,224,008	0.00%	-25.80%
Delaware Delchester Fund – Institutional Class
2005	1.30%	27,252		15.12		411,980	7.90%	2.39%
2004	1.30%	40,881		14.76		603,572	6.40%	13.75%
2003	1.30%	43,328		12.98		562,391	9.96%	29.05%
2002	1.30%	28,131		10.06		282,951	11.51%	-0.82%
2001	1.30%	39,799		10.14		403,604	11.97%	-8.93%
Dreyfus A Bonds Plus, Inc.
2005	1.30%	178,348		15.31		2,731,017	4.56%	0.98%
2004	1.30%	213,109		15.16		3,231,535	4.18%	1.76%
2003	1.30%	231,833		14.90		3,454,549	4.07%	3.29%
2002	1.30%	228,069		14.43		3,290,077	4.63%	6.48%
2001	1.30%	202,272		13.55		2,740,365	6.72%	3.23%
Dreyfus Appreciation Fund, Inc.
2005	0.95% to 1.90%	501,974		9.32 to    8.83		5,380,498	1.37%	3.15% to    2.17%
2004	0.95% to 1.90%	499,347		9.04 to    8.64		5,249,026	1.37%	4.57% to    3.56%
2003	0.95% to 1.90%	482,126		8.64 to    8.34		4,861,163	1.33%	19.24% to  18.10%
2002	0.95% to 1.90%	345,694		7.06 to  10.00		3,081,601	0.89%	-18.72% to -17.93%
2001	0.95% to 1.70%	310,248		8.72 to  12.22		3,342,317	0.85%	-12.28% to -11.60%
Dreyfus Balanced Fund, Inc.
2003	0.95% to 1.70%	197,843		9.04 to    8.79		1,978,349	1.29%	16.91% to  16.03%
2002	0.95% to 1.70%	151,031		7.58 to    9.15		1,294,706	2.16%	-17.89% to -17.26%
2001	0.95% to 1.70%	150,473		9.23 to  11.10		1,544,987	2.63%	-6.09% to   -5.37%

(Continued)

54

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Dreyfus Emerging Leaders Fund
2005	0.95% to 1.25%	7,031	$	12.29 to  12.08	$	85,268	0.00%	8.14% to    7.81%
2004	0.95% to 1.25%	8,093		11.36 to  11.20		90,953	0.00%	13.15% to  12.80%
2003	0.95% to 1.25%	10,101		10.04 to    9.93		100,549	0.00%	38.16% to  37.74%
2002	0.95% to 1.25%	7,585		7.21 to    7.27		54,785	0.00%	-21.16% to -20.92%
2001	0.95% to 1.25%	8,292		9.14 to    9.19		75,926	0.00%	-11.04% to -10.77%
Dreyfus Premier Balanced Opportunity Fund – Class Z
2005	0.95% to 1.60%	197,213		9.90 to    9.83		1,946,577	1.56%	-2.26% to  -2.90%
2004	0.95% to 1.70%	213,309		10.13 to  10.13		2,160,468	2.18%	1.29% to 1.27%	(a) (b)
Dreyfus Premier Third Century Fund, Inc. – Class Z, The
2005	0.95% to 1.85%	75,308		6.13 to    5.82		1,045,882	0.37%	2.49% to    1.56%
2004	0.95% to 1.85%	83,260		5.98 to    5.73		1,153,302	0.00%	4.92% to    3.97%
2003	0.95% to 1.85%	94,492		5.70 to    5.52		1,239,435	0.00%	24.68% to  23.55%
2002	0.95% to 1.70%	84,912		4.48 to  14.97		1,005,117	0.00%	-30.58% to -30.04%
2001	0.95% to 1.70%	128,466		6.46 to  21.47		1,894,868	0.00%	-25.02% to -24.45%
Dreyfus S&P 500 Index Fund
2005	1.30%	624,278		28.83		17,995,137	1.28%	3.07%
2004	1.30%	688,019		27.97		19,242,268	1.50%	8.95%
2003	1.30%	712,646		25.67		18,293,906	1.19%	26.42%
2002	1.30%	723,651		20.31		14,693,857	0.99%	-23.52%
2001	1.30%	789,038		26.55		20,949,067	0.88%	-13.51%
Evergreen Equity Income Fund – Class I
2005	1.30%	44,806		24.23		1,085,677	1.56%	2.49%
2004	1.30%	46,314		23.64		1,094,936	1.99%	9.01%
2003	1.30%	39,990		21.69		867,245	2.28%	29.75%
2002	1.30%	35,669		16.71		596,162	2.57%	-13.51%
2001	1.30%	37,440		19.32		723,486	2.93%	-6.61%
Federated Equity Income Fund – Class F Shares
2005	0.95% to 1.50%	11,009		8.54 to    8.29		92,867	1.84%	2.04% to    1.47%
2004	0.95% to 1.50%	12,280		8.37 to    8.17		101,722	1.90%	11.90% to  11.28%
2003	0.95% to 1.50%	14,167		7.48 to    7.34		105,332	2.08%	22.76% to  22.08%
2002	0.95% to 1.50%	9,824		6.02 to    6.09		59,545	1.40%	-20.63% to -20.19%
2001	1.20% to 1.50%	4,072		7.58 to    7.61		30,976	2.25%	-12.64% to -12.37%
Federated High Yield Trust
2005	0.95% to 1.90%	173,763		12.17 to  11.52		2,037,470	7.54%	1.46% to    0.49%
2004	0.95% to 1.85%	202,267		11.99 to  11.49		2,340,085	9.67%	10.57% to    9.57%
2003	0.95% to 1.90%	170,690		10.85 to  10.47		1,793,939	9.41%	21.65% to  20.48%
2002	0.95% to 1.90%	109,902		8.58 to    8.92		949,594	10.16%	-1.84% to   -0.89%
2001	0.95% to 1.60%	58,130		8.69 to    9.00		507,289	13.04%	-3.46% to   -2.82%
Federated Intermediate Corporate Bond Fund – Institutional Service Class
2005	0.95% to 1.90%	66,370		12.91 to  12.27		850,195	5.00%	1.09% to    0.12%
2004	0.95% to 1.85%	68,364		12.77 to  12.29		866,946	3.94%	2.24% to    1.31%
2003	0.95% to 1.75%	22,611		12.49 to  12.17		280,879	5.02%	5.03% to    4.18%
2002	0.95% to 1.45%	15,511		11.76 to  11.89		183,786	4.85%	7.33% to    7.88%
2001	0.95% to 1.00%	8,388		11.02 to  11.03		92,479	5.55%	6.30% to    6.36%
Federated Investment Series Funds, Inc. – Federated Bond Fund – Class F
2005	0.95% to 2.05%	159,931		14.03 to  13.17		2,396,452	5.70%	0.92% to   -0.20%
2004	0.95% to 2.05%	162,608		13.91 to  13.20		2,414,432	6.06%	5.77% to    4.59%
2003	0.95% to 2.05%	160,643		13.15 to  12.62		2,259,338	6.43%	11.80% to  10.56%
2002	0.95% to 2.05%	184,343		11.42 to  12.87		2,314,552	6.83%	4.74% to    5.91%
2001	0.95% to 1.90%	164,544		10.93 to  12.20		1,961,012	8.14%	5.27% to    6.30%
Fidelity® Advisor Balanced Fund – Class A
2005	0.95% to 1.50%	62,215		10.64 to  10.31		654,878	1.93%	4.29% to    3.71%
2004	0.95% to 1.70%	77,870		10.20 to    9.84		788,131	2.36%	4.19% to    3.40%
2003	0.95% to 1.70%	84,334		9.79 to    9.52		820,544	2.29%	16.75% to  15.87%
2002	0.95% to 1.70%	81,046		8.22 to    8.38		676,669	2.76%	-10.35% to   -9.66%
2001	0.95% to 1.70%	71,335		9.16 to    9.28		660,892	3.11%	-3.40% to   -2.66%

(Continued)

55

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® Advisor Balanced Fund – Class T
2005	1.30%	73,624	$	15.56	$	1,145,848	1.67%	3.61%
2004	1.30%	85,032		15.02		1,277,305	2.10%	3.60%
2003	1.30%	83,221		14.50		1,206,630	2.04%	16.02%
2002	1.30%	85,330		12.50		1,066,341	2.31%	-10.26%
2001	1.30%	86,449		13.92		1,203,797	2.61%	-3.19%
Fidelity® Advisor Equity Growth Fund – Class A
2005	0.95% to 1.65%	135,715		6.83 to    6.58		919,599	0.00%	4.38% to    3.65%
2004	0.95% to 1.70%	196,942		6.54 to    6.33		1,280,886	0.00%	1.87% to    1.10%
2003	0.95% to 1.70%	176,059		6.42 to    6.27		1,126,698	0.00%	30.82% to  29.83%
2002	0.95% to 1.70%	103,982		4.83 to    4.91		508,932	0.00%	-31.71% to -31.19%
2001	0.95% to 1.70%	51,875		7.07 to    7.13		369,764	0.00%	-19.35% to -18.73%
Fidelity® Advisor Equity Income Fund – Class A
2005	0.95% to 1.90%	313,369		13.50 to  12.78		4,189,354	0.95%	5.42% to    4.41%
2004	0.95% to 1.90%	315,936		12.80 to  12.24		4,012,980	0.93%	11.06% to    9.99%
2003	0.95% to 1.90%	287,775		11.53 to  11.13		3,300,260	1.05%	27.53% to  26.31%
2002	0.95% to 1.90%	207,180		8.81 to    9.04		1,864,143	0.99%	-17.11% to -16.31%
2001	0.95% to 1.70%	116,878		10.67 to  10.80		1,260,302	0.90%	-3.88% to   -3.14%
Fidelity® Advisor Equity Income Fund – Class T
2005	1.30%	200,850		21.28		4,273,989	0.73%	4.80%
2004	1.30%	207,282		20.31		4,208,916	0.78%	10.44%
2003	1.30%	182,726		18.39		3,359,593	0.87%	26.74%
2002	1.30%	173,217		14.51		2,512,751	0.68%	-16.74%
2001	1.30%	145,153		17.42		2,528,949	0.58%	-3.70%
Fidelity® Advisor Growth Opportunities Fund – Class A
2005	0.95% to 1.90%	121,384		8.02 to    7.60		959,159	0.23%	7.60% to    6.57%
2004	0.95% to 1.90%	77,514		7.46 to    7.13		571,773	0.59%	6.07% to    5.05%
2003	0.95% to 1.90%	55,941		7.03 to    6.79		390,109	0.36%	28.16% to  26.94%
2002	0.95% to 1.90%	41,447		5.35 to    5.48		226,006	0.90%	-23.82% to -23.08%
2001	0.95% to 1.80%	28,345		7.03 to    7.13		201,522	0.94%	-16.56% to -15.83%
Fidelity® Advisor Growth Opportunities Fund – Class T
2005	1.30%	294,745		14.25		4,198,792	0.02%	7.03%
2004	1.30%	330,246		13.31		4,395,405	0.28%	5.56%
2003	1.30%	370,410		12.61		4,670,127	0.15%	27.58%
2002	1.30%	375,670		9.88		3,712,674	0.44%	-23.44%
2001	1.30%	414,206		12.91		5,347,103	0.58%	-16.25%
Fidelity® Advisor High Income Advantage Fund – Class T
2005	0.95% to 1.90%	153,451		14.13 to  13.38		2,568,910	6.55%	3.62% to    2.63%
2004	0.95% to 1.90%	198,711		13.64 to  13.04		3,230,752	8.41%	13.76% to  12.67%
2003	0.95% to 1.90%	269,387		11.99 to  11.57		3,879,384	12.40%	42.27% to  40.90%
2002	0.95% to 1.90%	222,978		8.21 to  10.88		2,304,935	8.25%	-5.85% to   -4.94%
2001	0.95% to 1.80%	198,014		8.74 to  11.48		2,238,779	9.34%	-2.97% to   -2.13%
Fidelity® Advisor Overseas Fund – Class A
2005	0.95% to 1.90%	19,671		10.41 to    9.89		202,627	0.83%	13.23% to  12.15%
2004	0.95% to 1.90%	30,133		9.19 to    8.82		274,810	0.14%	11.93% to  10.86%
2003	0.95% to 1.50%	77,409		8.21 to    8.06		631,056	1.45%	42.94% to  42.15%
2002	0.95% to 1.45%	4,402		5.68 to    5.74		25,233	0.00%	-21.29% to -20.89%
2001	0.95% to 1.20%	5,894		7.24 to    7.26		42,703	0.00%	-21.09% to -20.89%
Fidelity® Asset Manager™
2005	1.30%	155,360		20.72		3,219,428	2.23%	2.68%
2004	1.30%	193,635		20.18		3,907,903	2.46%	4.03%
2003	1.30%	231,668		19.40		4,494,463	2.56%	15.65%
2002	1.30%	242,946		16.77		4,075,286	3.22%	-9.25%
2001	1.30%	284,944		18.48		5,266,966	3.93%	-5.18%
Fidelity® Capital & Income Fund
2005	1.30%	6,767		70.62		477,891	5.89%	3.68%
2004	1.30%	7,899		68.11		538,029	7.26%	11.10%
2003	1.30%	11,090		61.31		679,880	8.32%	37.32%
2002	1.30%	12,054		44.64		538,152	6.64%	-1.71%
2001	1.30%	13,985		45.42		635,168	8.47%	-5.94%

(Continued)

56

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Fidelity® Equity-Income Fund
2005	1.30%	104,705	$	100.60	$	10,532,987	1.56%	4.36%
2004	1.30%	112,880		96.39		10,880,437	1.56%	9.84%
2003	1.30%	119,162		87.75		10,456,879	1.52%	28.27%
2002	1.30%	121,343		68.41		8,301,198	1.53%	-18.24%
2001	1.30%	137,625		83.67		11,515,266	1.45%	-6.26%
Fidelity® Magellan® Fund
2005	1.30%	636,228		29.02		18,463,355	0.89%	5.04%
2004	1.30%	737,378		27.63		20,371,875	1.18%	6.10%
2003	1.30%	837,429		26.04		21,806,684	0.82%	23.20%
2002	1.30%	941,898		21.14		19,908,044	0.65%	-24.66%
2001	1.30%	1,116,333		28.05		31,317,101	0.41%	-12.81%
Fidelity® Puritan® Fund
2005	1.30%	333,373		29.32		9,775,061	2.54%	3.31%
2004	1.30%	379,994		28.38		10,784,970	2.39%	7.85%
2003	1.30%	407,038		26.31		10,711,174	2.57%	20.61%
2002	1.30%	455,032		21.82		9,927,580	2.97%	-9.11%
2001	1.30%	526,520		24.00		12,638,717	3.28%	-2.35%
Fidelity® VIP – High Income Portfolio – Initial Class
2005	1.30%	874		23.92		20,903	14.72%	1.37%
2004	1.30%	875		23.59		20,644	12.36%	8.17%
2003	1.30%	2,909		21.81		63,450	7.17%	25.61%
2002	1.30%	2,911		17.36		50,542	12.13%	2.10%
2001	1.30%	4,118		17.01		70,036	13.13%	-12.89%
Fidelity® VIP – Overseas Portfolio – Service Class 2 R
2005	0.95% to 1.60%	68,873		13.01 to  12.87		891,815	0.27%	17.62% to  16.85%
2004	0.95% to 1.60%	46,477		11.06 to  11.01		513,365	0.00%	10.63% to  10.14%	(a) (b)
Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A
2005	0.95% to 1.90%	517,613		15.60 to  14.77		8,515,920	1.45%	8.94% to    7.90%
2004	0.95% to 1.90%	476,078		14.32 to  13.69		7,233,403	1.58%	12.42% to  11.34%
2003	0.95% to 1.90%	436,986		12.74 to  12.30		5,924,590	1.40%	24.98% to  23.79%
2002	0.95% to 1.90%	380,780		9.93 to  11.45		4,163,804	1.27%	-12.89% to -12.04%
2001	0.95% to 1.90%	261,828		11.40 to  13.07		3,278,385	1.29%	3.91% to    4.93%
Franklin Small Mid Cap Growth Fund I – Class A
2005	0.95% to 1.90%	319,814		7.84 to    7.42		2,489,754	0.10%	9.50% to    8.45%
2004	0.95% to 1.90%	435,237		7.16 to    6.84		3,094,272	0.00%	11.96% to  10.89%
2003	0.95% to 1.90%	289,019		6.39 to    6.17		1,840,506	0.00%	36.37% to  35.06%
2002	0.95% to 1.90%	185,549		4.57 to    4.69		866,959	0.00%	-30.92% to -30.25%
2001	0.95% to 1.70%	127,318		6.64 to    6.72		854,058	0.36%	-21.89% to -21.29%
Franklin Templeton VIP – Templeton Foreign Securities Fund – Class 3
2005	0.95% to 1.65%	233,560		12.60 to  12.45		2,927,966	1.29%	9.09% to    8.32%
2004	0.95% to 1.65%	206,884		11.55 to  11.50		2,385,079	0.49%	15.52% to  14.98%	(a) (b)
Franklin VIT – Franklin Balance Sheet Investment Fund – Class A
2005	0.95% to 1.85%	175,926		20.33 to  19.38		3,530,946	0.88%	9.85% to    8.86%
2004	0.95% to 1.85%	121,505		18.50 to  17.80		2,225,352	0.89%	24.12% to  22.99%
2003	0.95% to 1.85%	77,941		14.91 to  14.47		1,154,090	0.48%	28.35% to  27.18%
2002	0.95% to 1.70%	42,332		11.42 to  11.62		489,094	0.94%	-7.56% to   -6.86%
2001	0.95% to 1.70%	19,653		12.35 to  12.47		244,496	1.96%	15.69% to  16.58%
Gartmore Bond Fund – Class D
2005	0.95% to 2.05%	30,706		13.96 to  13.10		425,554	4.44%	2.15% to    1.02%
2004	0.95% to 2.05%	31,530		13.67 to  12.97		428,495	4.63%	3.83% to    2.68%
2003	0.95% to 2.05%	35,896		13.16 to  12.63		470,273	5.21%	5.38% to    4.21%
2002	0.95% to 2.05%	39,246		12.12 to  12.49		488,618	5.35%	7.03% to    8.23%
2001	0.95% to 1.70%	34,240		11.40 to  11.54		393,896	4.93%	7.97% to    8.80%
Tax qualified
2005	1.30%	28,025		57.42		1,609,330	4.44%	1.79%
2004	1.30%	32,581		56.42		1,838,084	4.63%	3.47%
2003	1.30%	36,727		54.53		2,002,584	5.21%	5.01%
2002	1.30%	39,588		51.93		2,055,664	5.35%	7.85%
2001	1.30%	34,762		48.15		1,673,737	4.93%	8.41%

(Continued)

57

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Non-tax qualified
2005	1.30%	72	$	57.18	$	4,117	4.44%	1.79%
2004	1.30%	72		56.17		4,045	4.63%	3.47%
2003	1.30%	72		54.29		3,909	5.21%	5.01%
2002	1.30%	72		51.70		3,748	5.35%	7.85%
2001	1.30%	73		47.94		3,500	4.93%	8.41%
Gartmore Bond Index Fund – Class A
2005	0.95% to 1.65%	21,251		12.81 to  12.34		268,493	3.76%	0.90% to    0.19%
2004	0.95% to 1.65%	20,255		12.69 to  12.32		254,381	3.62%	2.75% to    2.02%
2003	0.95% to 1.65%	14,144		12.35 to  12.07		173,477	4.05%	2.20% to    1.47%
2002	0.95% to 1.45%	8,533		11.95 to  12.09		102,628	4.20%	7.87% to    8.41%
2001	0.95% to 1.25%	1,128		11.11 to  11.15		12,549	4.64%	5.80% to    6.13%
Gartmore Government Bond Fund – Class D
2005	0.95% to 1.90%	332,211		13.60 to  12.88		4,825,019	3.93%	1.80% to    0.83%
2004	0.95% to 1.90%	423,678		13.36 to  12.77		6,055,314	3.76%	2.44% to    1.46%
2003	0.95% to 1.90%	473,517		13.04 to  12.59		6,686,754	4.09%	0.93% to   -0.04%
2002	0.95% to 1.90%	507,979		12.59 to  14.99		7,158,033	3.97%	8.87% to    9.93%
2001	0.95% to 1.90%	197,497		11.57 to  13.69		2,497,854	4.99%	5.94% to    6.97%
Gartmore Growth Fund – Class A
2005	0.95% to 1.45%	59,143		11.42 to  11.30		671,279	0.04%	5.11% to    4.58%
2004	0.95% to 1.45%	49,930		10.86 to  10.81		540,838	0.14%	6.77% to    6.23%
2003	0.95% to 1.45%	33,909		10.17 to  10.17		344,961	0.00%	1.74% to    1.72%	(a)
Gartmore Growth Fund – Class D
2005	0.95% to 1.45%	24,246		5.54 to    5.39		133,511	0.12%	5.54% to    5.01%
2004	0.95% to 1.45%	31,341		5.25 to    5.13		163,434	0.19%	7.09% to    6.54%
2003	0.95% to 1.45%	38,281		4.90 to    4.81		186,771	0.04%	31.76% to  31.10%
2002	1.00% to 1.45%	12,687		3.67 to    3.72		46,876	0.00%	-29.74% to -29.42%
2001	0.95% to 1.45%	15,463		5.23 to    5.27		81,234	0.00%	-28.84% to -28.48%
Tax qualified
2005	1.30%	15,445		67.19		1,037,727	0.12%	5.17%
2004	1.30%	18,003		63.88		1,150,114	0.19%	6.71%
2003	1.30%	21,965		59.87		1,315,025	0.04%	31.30%
2002	1.30%	19,736		45.60		899,907	0.00%	-29.63%
2001	1.30%	20,929		64.80		1,356,183	0.00%	-28.73%
Non-tax qualified
2005	1.30%	115		70.94		8,158	0.12%	5.17%
2004	1.30%	116		67.45		7,825	0.19%	6.71%
2003	1.30%	116		63.21		7,333	0.04%	31.30%
2002	1.30%	116		48.15		5,599	0.00%	-29.63%
2001	1.30%	179		68.42		12,247	0.00%	-28.73%
Gartmore GVIT ID Aggressive Fund – Class II
2005	1.30%	23,675		11.88		281,322	2.43%	6.53%
2004	1.30%	8,041		11.15		89,690	2.03%	11.54%	(a) (b)
Gartmore GVIT ID Conservative Fund – Class II
2005	1.30%	2,998		10.54		31,608	2.10%	1.97%
2004	1.30%	30		10.34		310	3.23%	3.39%	(a) (b)
Gartmore GVIT ID Moderate Fund – Class II
2005	1.30%	81,006		11.20		906,866	2.44%	3.98%
2004	1.30%	47,710		10.77		513,679	2.23%	7.67%	(a) (b)
Gartmore GVIT ID Moderately Aggressive Fund – Class II
2005	1.30%	83,390		11.62		969,300	2.06%	5.68%
2004	1.30%	48,890		11.00		537,718	1.75%	9.99%	(a) (b)
Gartmore GVIT ID Moderately Conservative Fund – Class II
2005	1.30%	7,929		10.90		86,397	2.76%	3.13%
2004	1.30%	1,048		10.57		11,073	1.90%	5.66%	(a) (b)

(Continued)

58

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Gartmore GVIT J.P. Morgan Balanced Fund – Class I
2005	0.95% to 1.50%	21,649	$	10.79 to  10.53	$	231,136	2.18%	1.57% to    1.01%
2004	0.95% to 1.50%	13,825		10.62 to  10.42		145,621	2.23%	7.46% to    6.86%
2003	0.95% to 1.50%	10,009		9.89 to    9.75		98,367	1.58%	17.29% to  16.64%
2002	1.20% to 1.50%	7,874		8.36 to    8.40		66,041	2.25%	-13.63% to -13.37%
2001	1.20% to 1.30%	8,363		9.69 to    9.70		81,050	1.08%	-3.09% to   -3.05%	(a)
Gartmore ID Aggressive Fund – Service Class
2005	0.95% to 1.65%	124,879		10.56 to  10.17		1,304,515	2.02%	6.82% to    6.07%
2004	0.95% to 1.60%	76,169		9.88 to    9.61		745,692	1.77%	12.92% to  12.18%
2003	0.95% to 1.50%	47,094		8.75 to    8.60		409,355	1.12%	30.44% to  29.72%
2002	0.95% to 1.50%	12,677		6.63 to    6.71		84,519	0.75%	-19.63% to -19.18%
2001	1.20% to 1.40%	1,341		8.25 to    8.28		11,072	0.34%	-12.69% to -12.52%
Gartmore ID Conservative Fund – Service Class
2005	0.95% to 1.55%	144,727		11.44 to  11.08		1,640,306	2.64%	2.22% to    1.60%
2004	0.95% to 1.55%	124,360		11.19 to  10.90		1,381,387	2.24%	3.78% to    3.15%
2003	0.95% to 1.50%	73,292		10.78 to  10.59		787,586	2.03%	6.63% to    6.04%
2002	0.95% to 1.45%	32,226		10.00 to  10.11		324,890	7.25%	-0.94% to   -0.44%
2001	1.35%	19		10.10		192	7.29%	0.75%
Gartmore ID Moderate Fund – Service Class
2005	0.95% to 1.90%	685,861		11.04 to  10.50		7,507,153	2.55%	4.40% to    3.41%
2004	0.95% to 1.75%	408,308		10.58 to  10.22		4,281,135	2.10%	8.38% to    7.50%
2003	0.95% to 1.75%	109,099		9.76 to    9.51		1,057,085	1.90%	18.57% to  17.61%
2002	0.95% to 1.75%	52,794		8.08 to    8.23		433,241	2.51%	-11.14% to -10.41%
2001	0.95% to 1.45%	20,377		9.13 to    9.19		187,135	2.13%	-6.14% to   -5.66%
Gartmore ID Moderately Aggressive Fund – Service Class
2005	0.95% to 1.90%	280,453		10.83 to  10.30		2,998,826	2.31%	6.02% to    5.01%
2004	0.95% to 1.85%	156,228		10.21 to    9.83		1,578,276	1.46%	11.03% to  10.02%
2003	0.95% to 1.50%	155,282		9.20 to    9.03		1,418,116	1.19%	25.11% to  24.42%
2002	0.95% to 1.50%	21,384		7.26 to    7.35		156,352	1.31%	-15.72% to -15.25%
2001	1.35% to 1.45%	195		8.62 to    8.63		1,681	1.19%	-10.11% to -10.02%
Gartmore ID Moderately Conservative Fund – Service Class
2005	0.95% to 1.65%	169,351		11.36 to  10.94		1,906,350	2.75%	3.41% to    2.69%
2004	0.95% to 1.65%	112,334		10.98 to  10.66		1,227,135	2.30%	6.04% to    5.30%
2003	0.95% to 1.50%	80,598		10.36 to  10.17		831,220	1.27%	12.45% to  11.83%
2002	1.20% to 1.45%	9,259		9.10 to    9.16		84,474	2.32%	-5.63% to   -5.39%
2001	1.50%	141		9.64		1,360	2.06%	-2.65%
Gartmore International Index Fund – Class A
2005	1.10% to 1.90%	1,811		10.78 to  10.33		19,359	1.54%	12.27% to  11.37%
2004	1.10% to 1.90%	4,530		9.60 to    9.27		43,218	0.18%	17.83% to  16.87%
2003	1.10% to 1.90%	86,263		8.15 to    7.94		700,429	1.07%	35.53% to  34.43%
2002	1.10% to 1.90%	564		5.90 to    6.01		3,377	1.86%	-19.27% to -18.61%
2001	1.20% to 1.45%	257		7.35 to    7.38		1,893	0.53%	-23.65% to -23.45%
Gartmore Large Cap Value Fund – Class A
2005	0.95% to 1.65%	149,960		13.99 to  13.44		2,032,432	1.06%	6.26% to    5.51%
2004	0.95% to 1.65%	117,301		13.16 to  12.74		1,500,937	1.05%	14.78% to  13.97%
2003	0.95% to 1.90%	99,480		11.47 to  11.07		1,115,437	1.03%	26.81% to  25.60%
2002	0.95% to 1.90%	64,810		8.76 to    9.04		572,276	0.84%	-15.43% to -14.61%
2001	0.95% to 1.50%	56,771		10.30 to  10.59		589,278	1.05%	-6.22% to   -5.69%
Gartmore Mid Cap Market Index Fund – Class A
2005	0.95% to 1.90%	73,263		13.48 to  12.82		977,790	0.93%	10.76% to    9.71%
2004	0.95% to 1.90%	64,225		12.17 to  11.69		775,258	0.42%	14.48% to  13.39%
2003	0.95% to 1.90%	40,923		10.63 to  10.31		433,003	0.39%	33.11% to  31.83%
2002	0.95% to 1.90%	32,942		7.82 to    7.99		262,216	0.43%	-16.89% to -16.08%
2001	0.95% to 1.45%	1,678		9.46 to    9.52		15,935	0.74%	-3.21% to   -2.72%
Gartmore Money Market Fund – Prime Shares
2005	1.30%	387,808		23.24		9,011,956	2.89%	1.38%
2004	1.30%	412,803		22.92		9,461,896	0.86%	-0.48%
2003	1.30%	464,749		23.03		10,703,514	0.65%	-0.69%
2002	1.30%	588,136		23.19		13,639,591	1.09%	-0.19%
2001	1.30%	645,265		23.24		14,992,880	3.53%	2.11%

(Continued)

59

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Tax qualified
2005	1.30%	4,426	$	29.26	$	129,511	2.89%	1.38%
2004	1.30%	5,046		28.86		145,638	0.86%	-0.48%
2003	1.30%	7,279		29.00		211,093	0.65%	-0.69%
2002	1.30%	44,653		29.20		1,303,965	1.09%	-0.19%
2001	1.30%	13,826		29.26		404,517	3.53%	2.11%
Non-tax qualified
2005	1.30%	822		29.45		24,205	2.89%	1.38%
2004	1.30%	825		29.04		23,962	0.86%	-0.48%
2003	1.30%	827		29.18		24,135	0.65%	-0.69%
2002	1.30%	830		29.39		24,405	1.09%	-0.19%
2001	1.30%	833		29.44		24,526	3.53%	2.11%
Gartmore Money Market Fund – Service Class
2005	0.95% to 2.25%	449,909		10.68 to    9.59		4,750,529	3.77%	1.60% to    0.27%
2004	0.95% to 2.25%	260,132		10.51 to    9.57		2,706,289	0.46%	-0.28% to   -1.59%
2003	0.95% to 2.25%	1,054,174		10.54 to    9.72		11,007,017	0.53%	-0.45% to   -1.76%
2002	0.95% to 1.90%	767,343		10.32 to  10.59		8,076,213	0.95%	-0.91% to    0.05%
2001	0.95% to 1.75%	456,054		10.44 to  10.58		4,813,949	3.25%	1.57% to    2.40%
Gartmore Nationwide Fund – Class D
2005	0.95% to 1.65%	39,655		9.96 to    9.57		389,996	0.82%	6.34% to    5.60%
2004	0.95% to 1.65%	39,211		9.36 to    9.06		363,697	1.17%	8.73% to    7.96%
2003	0.95% to 1.65%	37,314		8.61 to    8.39		319,313	0.81%	25.89% to  25.00%
2002	0.95% to 1.90%	14,376		6.67 to    6.84		97,884	0.83%	-18.70% to -17.92%
2001	0.95% to 1.80%	24,097		8.21 to    8.33		200,101	0.60%	-13.54% to -12.79%
Tax qualified
2005	1.30%	42,114		121.99		5,137,308	0.82%	5.97%
2004	1.30%	48,114		115.11		5,538,559	1.17%	8.35%
2003	1.30%	50,848		106.25		5,402,439	0.81%	25.45%
2002	1.30%	51,953		84.69		4,400,104	0.83%	-18.21%
2001	1.30%	53,874		103.55		5,578,402	0.60%	-13.10%
Non-tax qualified
2005	1.30%	56		127.06		7,115	0.82%	5.97%
2004	1.30%	56		119.90		6,715	1.17%	8.35%
2003	1.30%	56		110.67		6,197	0.81%	25.45%
2002	1.30%	60		88.22		5,269	0.83%	-18.21%
2001	1.30%	92		107.85		9,922	0.60%	-13.10%
Gartmore S&P 500 Index Fund – Service Class
2005	0.95% to 2.25%	460,212		8.52 to    9.31		4,044,529	1.24%	3.26% to    1.90%
2004	0.95% to 2.25%	427,342		8.25 to    9.14		3,652,845	1.28%	9.25% to    7.81%
2003	0.95% to 2.25%	423,786		7.55 to    8.48		3,324,284	1.02%	26.57% to  24.92%
2002	0.95% to 2.05%	374,477		5.79 to    6.96		2,315,159	0.92%	-24.26% to -23.41%
2001	0.95% to 1.80%	299,497		7.68 to    9.12		2,460,849	0.69%	-13.92% to -13.17%
Gartmore Small Cap Fund – Class A
2005	0.95% to 1.65%	229,634		17.59 to  16.90		4,645,571	0.00%	21.35% to  20.50%
2004	0.95% to 1.65%	231,298		14.50 to  14.02		3,913,587	0.00%	24.57% to  23.69%
2003	0.95% to 1.65%	153,649		11.64 to  11.34		2,125,948	0.00%	46.61% to  45.57%
2002	0.95% to 1.45%	74,127		7.83 to    9.74		707,046	0.00%	-19.73% to -19.32%
2001	0.95% to 1.45%	39,865		9.76 to  12.12		476,153	0.00%	-3.32% to   -2.82%
Gartmore Small Cap Index Fund – Class A
2005	0.95% to 1.65%	61,125		12.98 to  12.50		785,085	0.80%	3.35% to    2.62%
2004	0.95% to 1.65%	65,067		12.56 to  12.18		811,847	0.70%	16.64% to  15.82%
2003	0.95% to 1.65%	27,945		10.76 to  10.52		298,888	0.49%	44.06% to  43.05%
2002	0.95% to 1.50%	7,171		7.38 to    7.47		53,271	1.32%	-22.13% to -21.69%
2001	0.95% to 1.50%	846		9.48 to    9.54		8,046	0.72%	0.14% to    0.70%
Gartmore Value Opportunities Fund – Class A
2005	0.95% to 1.60%	21,774		14.91 to  14.41		321,355	0.12%	6.87% to    6.17%
2004	0.95% to 1.60%	45,590		13.95 to  13.57		632,586	0.07%	12.33% to  11.59%
2003	0.95% to 1.60%	15,946		12.42 to  12.16		196,853	0.07%	35.40% to  34.51%
2002	0.95% to 1.60%	4,444		9.04 to    9.17		40,469	0.68%	-15.73% to -15.18%
2001	1.25% to 1.50%	313		10.74 to  10.78		3,366	0.53%	0.31% to    0.57%

(Continued)

60

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Janus Adviser Balanced Fund
2005	0.95% to 1.70%	129,865	$	11.04 to 10.60	$	1,417,997	1.44%	6.65% to    5.84%
2004	0.95% to 1.90%	127,676		10.35 to   9.93		1,308,970	1.53%	7.39% to    6.36%
2003	0.95% to 1.90%	148,887		9.64 to   9.34		1,427,611	1.93%	12.92% to  11.84%
2002	0.95% to 1.70%	107,570		8.39 to   8.53		915,474	2.04%	-8.16% to   -7.46%
2001	0.95% to 1.70%	33,047		9.13 to   9.22		304,374	2.69%	-6.47% to   -5.75%
Janus Adviser International Growth Fund
2005	1.20% to 1.90%	4,763		10.27 to   9.89		48,758	0.57%	30.15% to  29.24%
2004	1.20% to 1.90%	6,398		7.89 to   7.65		50,327	0.08%	18.41% to  17.58%
2003	1.20% to 1.50%	109,672		6.66 to   6.60		730,459	0.97%	33.16% to  32.76%
2002	1.05% to 1.45%	7,960		4.97 to   5.02		39,797	0.66%	-26.70% to -26.40%
2001	1.05% to 1.60%	2,188		6.77 to   6.82		14,898	0.72%	-24.03% to -23.60%
Janus Adviser Worldwide Fund – Class S
2005	0.95% to 1.90%	92,412		6.72 to   6.38		612,548	0.68%	5.06% to    4.06%
2004	0.95% to 1.90%	132,162		6.39 to   6.14		835,980	0.28%	3.74% to    2.74%
2003	0.95% to 1.90%	212,407		6.16 to   5.97		1,299,031	0.63%	21.67% to  20.50%
2002	0.95% to 1.90%	189,431		4.96 to   5.06		954,394	0.38%	-27.41% to -26.71%
2001	0.95% to 1.80%	153,530		6.84 to   6.91		1,058,035	0.19%	-22.51% to -21.83%
Janus Fund
2005	0.95% to 2.05%	587,461		5.84 to   5.48		7,869,103	0.06%	2.99% to    1.85%
2004	0.95% to 2.05%	710,079		5.67 to   5.38		9,546,393	0.00%	3.69% to    2.54%
2003	0.95% to 2.05%	840,546		5.47 to   5.25		11,013,476	0.00%	30.46% to  29.01%
2002	0.95% to 2.05%	927,009		4.07 to 12.76		9,380,070	0.00%	-29.05% to -28.25%
2001	0.95% to 1.80%	1,057,293		5.76 to 17.85		15,177,679	0.00%	-27.47% to -26.81%
Janus Twenty Fund
2005	0.95% to 1.90%	1,016,777		5.99 to   5.67		23,689,667	0.20%	8.38% to    7.35%
2004	0.95% to 1.90%	1,174,936		5.53 to   5.29		24,875,542	0.03%	22.72% to  21.54%
2003	0.95% to 1.90%	1,367,638		4.51 to   4.35		22,785,027	0.51%	24.12% to  22.93%
2002	0.95% to 1.90%	1,505,246		3.54 to 18.40		20,571,379	0.59%	-25.47% to -24.74%
2001	0.95% to 1.80%	1,693,929		4.75 to 24.54		30,903,488	0.72%	-30.49% to -29.88%
Janus Worldwide Fund
2005	0.95% to 1.50%	435,577		5.94 to   5.76		6,381,844	1.03%	4.84% to    4.26%
2004	0.95% to 1.50%	552,324		5.67 to   5.52		7,768,920	0.65%	4.53% to    3.95%
2003	0.95% to 1.50%	745,134		5.42 to   5.31		10,109,603	0.94%	23.06% to  22.37%
2002	0.95% to 1.50%	864,427		4.34 to 11.28		9,510,531	0.72%	-27.13% to -26.72%
2001	0.95% to 1.50%	1,078,979		5.96 to 15.44		15,661,803	0.02%	-24.04% to -23.61%
Lazard Small Cap Portfolio – Open Shares
2005	0.95% to 1.90%	164,638		16.43 to 15.56		2,918,919	0.00%	2.94% to    1.96%
2004	0.95% to 1.90%	194,132		15.96 to 15.26		3,342,506	0.02%	13.81% to  12.72%
2003	0.95% to 1.90%	168,554		14.02 to 13.54		2,558,176	0.00%	37.25% to  35.93%
2002	0.95% to 1.90%	255,464		9.96 to 11.25		2,744,647	0.00%	-19.39% to -18.60%
2001	0.95% to 1.90%	103,663		12.35 to 13.87		1,414,930	0.13%	15.44% to  16.56%
MFS® Strategic Income Fund – Class A
2005	1.30%	78,799		12.98		1,022,538	6.04%	0.76%
2004	1.30%	69,176		12.88		890,884	5.95%	6.91%
2003	1.30%	61,538		12.05		741,264	6.42%	12.30%
2002	1.30%	39,645		10.73		425,225	6.58%	5.99%
2001	1.30%	34,722		10.12		351,384	2.62%	1.20%	(a) (b)
Nationwide® Large Cap Growth Fund – Class A
2002	1.20% to 1.45%	41,537		4.12 to    5.63		214,128	0.00%	-29.31% to -29.13%
2001	0.95% to 1.45%	13,422		5.83 to      .96		97,173	0.00%	-21.90% to -21.50%
Neuberger Berman EF – Guardian Fund – Investor Class Shares
2005	1.30%	148,320		20.71		3,071,220	0.65%	7.03%
2004	1.30%	167,914		19.35		3,248,495	0.29%	14.55%
2003	1.30%	193,335		16.89		3,265,121	0.29%	33.38%
2002	1.30%	241,595		12.66		3,058,980	0.82%	-26.71%
2001	1.30%	291,417		17.28		5,034,831	0.81%	-3.13%

(Continued)

61

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Neuberger Berman EF – Partners Fund – Investor Class Shares
2005	1.30%	208,718	$	34.36	$	7,172,124	1.01%	16.46%
2004	1.30%	185,415		29.51		5,470,922	0.70%	17.66%
2003	1.30%	201,663		25.08		5,057,026	0.03%	34.11%
2002	1.30%	209,534		18.70		3,917,971	0.15%	-25.80%
2001	1.30%	247,749		25.20		6,243,516	0.36%	-4.29%
Neuberger Berman ET – Genesis Fund – Trust Class Shares
2005	0.95% to 1.90%	807,488		22.34 to  21.15		18,319,479	0.00%	15.20% to  14.10%
2004	0.95% to 1.90%	738,855		19.39 to  18.54		14,615,405	0.00%	17.55% to  16.42%
2003	0.95% to 1.90%	606,006		16.49 to  15.92		10,220,042	0.00%	30.40% to  29.16%
2002	0.95% to 1.90%	507,180		12.33 to  13.18		6,601,375	0.00%	-4.84% to   -3.92%
2001	0.95% to 1.65%	327,635		13.01 to  13.76		4,458,041	0.00%	10.22% to  11.01%
Neuberger Berman ET – Guardian Fund – Trust Class Shares
2005	0.95% to 1.50%	27,967		11.01 to  10.67		303,702	0.48%	7.23% to    6.64%
2004	0.95% to 1.50%	39,609		10.27 to  10.01		402,509	0.22%	14.83% to  14.20%
2003	0.95% to 1.55%	39,493		8.95 to    8.75		350,024	0.20%	33.73% to  32.92%
2002	0.95% to 1.55%	39,007		6.58 to    6.69		259,236	0.88%	-27.06% to -26.61%
2001	0.95% to 1.55%	26,591		9.02 to    9.11		241,440	0.97%	-3.46% to   -2.86%
Neuberger Berman ET – Partners Fund – Trust Class Shares
2005	0.95% to 1.90%	43,693		13.39 to  12.68		576,139	0.51%	16.69% to  15.58%
2004	0.95% to 1.90%	31,510		11.47 to  10.97		358,723	0.66%	17.89% to  16.76%
2003	0.95% to 1.90%	23,117		9.73 to    9.39		223,623	0.00%	34.37% to  33.09%
2002	0.95% to 1.90%	20,457		7.06 to    7.24		147,302	0.00%	-26.34% to -25.62%
2001	0.95% to 1.45%	19,125		9.65 to    9.74		185,603	0.29%	-4.66% to   -4.17%
Neuberger Berman ET – Socially Responsive Fund – Trust Class Shares
2005	0.95% to 1.45%	43,761		12.04 to  11.94		524,937	0.63%	6.43% to    5.90%
2004	0.95% to 1.40%	7,845		11.31 to  11.28		88,574	0.02%	13.13% to  12.79%	(a) (b)
Neuberger Berman Limited Maturity Bond Fund® – Investor Class Shares
2005	1.30%	72,068		14.29		1,029,836	3.86%	0.25%
2004	1.30%	90,347		14.25		1,287,763	3.60%	-0.39%
2003	1.30%	97,423		14.31		1,394,009	3.71%	1.20%
2002	1.30%	89,370		14.14		1,263,616	4.77%	3.74%
2001	1.30%	87,855		13.63		1,197,430	5.09%	6.99%
Oppenheimer Capital Appreciation Fund A
2005	0.95% to 1.80%	360,986		8.06 to    7.71		2,888,178	0.61%	3.70% to    2.82%
2004	0.95% to 1.80%	327,920		7.77 to    7.49		2,533,507	0.00%	5.45% to    4.54%
2003	0.95% to 1.80%	213,208		7.37 to    7.17		1,565,653	0.00%	28.23% to  27.13%
2002	0.95% to 1.80%	98,464		5.64 to    5.75		563,983	0.00%	-27.59% to -26.96%
2001	0.95% to 1.70%	48,520		7.80 to    7.87		381,399	0.00%	-14.19% to -13.53%
Oppenheimer Champion Income Fund A
2005	0.95% to 1.45%	23,082		12.37 to  12.20		284,436	6.20%	1.68% to    1.17%
2004	0.95% to 1.45%	12,480		12.16 to  12.06		151,387	7.34%	8.17% to    7.63%
2003	0.95% to 1.45%	6,563		11.24 to  11.21		73,749	5.79%	12.45% to  12.06%	(a) (b)
Oppenheimer Global Fund A
2005	0.95% to 1.90%	526,968		12.01 to  11.37		14,749,212	0.60%	12.75% to  11.68%
2004	0.95% to 1.90%	625,115		10.65 to  10.18		16,086,858	0.54%	17.54% to  16.42%
2003	0.95% to 2.25%	799,413		9.06 to    9.80		17,127,357	0.80%	41.72% to  39.86%
2002	0.95% to 1.90%	645,872		6.23 to  25.81		11,057,926	0.00%	-23.92% to -23.19%
2001	0.95% to 1.90%	1,741,535		8.19 to    8.32		14,413,609	0.00%	-13.49% to -12.64%
Oppenheimer Global Securities Fund/VA – Class 4
2005	0.95% to 2.25%	436,757		13.07 to  12.79		5,682,456	0.76%	12.97% to  11.49%
2004	0.95% to 2.25%	298,367		11.57 to  11.47		3,445,679	0.00%	15.69% to  14.68%	(a) (b)
Oppenheimer Strategic Income Fund – Class A
2005	0.95% to 1.60%	43,760		14.27 to  13.79		617,703	7.58%	3.17% to    2.49%
2004	0.95% to 1.45%	27,596		13.84 to  13.54		378,215	7.32%	8.58% to    8.03%
2003	0.95% to 1.45%	18,797		12.74 to  12.54		237,385	4.89%	18.46% to  17.86%
2002	1.20% to 1.45%	8,948		10.64 to  10.70		95,479	6.94%	5.30% to    5.56%
2001	1.25% to 1.45%	2,330		10.10 to  10.13		23,590	15.96%	2.06% to    2.27%

(Continued)

62

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Phoenix Balanced Fund – Class A
2005	1.30%	57,925	$	19.49	$	1,129,059	1.94%	0.16%
2004	1.30%	58,000		19.46		1,128,718	2.21%	5.77%
2003	1.30%	53,906		18.40		991,782	2.02%	17.06%
2002	1.30%	48,209		15.72		757,712	2.61%	-12.71%
2001	1.30%	48,287		18.01		869,481	2.71%	0.59%
PIMCO Total Return Fund – Class A
2005	0.95% to 2.25%	316,198		13.38 to  11.89		4,186,754	3.18%	1.43% to    0.10%
2004	0.95% to 2.25%	294,143		13.19 to  11.87		3,848,466	2.08%	3.65% to    2.29%
2003	0.95% to 2.25%	203,571		12.73 to  11.61		2,573,697	2.94%	4.07% to    2.70%
2002	0.95% to 1.80%	147,395		12.00 to  12.23		1,793,691	3.28%	7.67% to    8.60%
2001	0.95% to 1.50%	39,495		11.18 to  11.26		443,700	7.24%	7.33% to    7.93%
Putnam International Equity Fund – Class A
2005	1.45% to 1.50%	265		16.07 to  16.05		4,258	2.08%	10.95% to  10.89%
2004	1.45% to 1.50%	265		14.48 to  14.47		3,838	0.03%	14.55% to  14.49%
2003	1.20% to 1.50%	24,231		12.66 to  12.64		306,866	3.32%	26.65% to  26.39%	(a) (b)
Putnam Voyager Fund – Class A
2005	0.95% to 1.50%	12,850		12.77 to  12.58		163,516	0.86%	4.50% to    3.92%
2004	0.95% to 1.20%	8,723		12.22 to  12.17		106,490	0.00%	3.80% to    3.54%
2003	0.95% to 1.45%	6,455		11.77 to  11.73		75,971	0.00%	17.71% to  17.31%	(a) (b)
Strong Advisor Mid Cap Growth Fund – Class Z
2004	0.95% to 1.50%	63,387		5.10 to    4.98		320,230	0.00%	17.28% to  16.63%
2003	0.95% to 1.50%	52,440		4.35 to    4.27		226,739	0.00%	32.98% to  32.24%
2002	0.95% to 1.45%	18,389		3.23 to    3.27		59,785	0.00%	-38.63% to -38.32%
2001	1.10% to 1.45%	2,739		5.27 to    5.29		14,464	0.00%	-31.87% to -31.63%
Templeton Foreign Fund – Class A
2005	0.95% to 1.65%	291,056		14.33 to  13.77		5,675,305	1.52%	9.59% to    8.81%
2004	0.95% to 1.65%	363,832		13.08 to  12.66		6,474,126	1.75%	17.02% to  16.19%
2003	0.95% to 1.65%	491,545		11.18 to  10.89		7,349,490	1.99%	29.28% to  28.36%
2002	0.95% to 1.50%	397,854		8.52 to  13.67		4,892,982	1.65%	-10.02% to   -9.51%
2001	0.95% to 1.60%	356,734		9.45 to  15.16		5,176,972	2.52%	-9.40% to   -8.80%
Van Kampen Growth and Income Fund – Class A
2005	0.95% to 1.90%	145,322		15.26 to  14.87		2,209,824	1.33%	8.83% to    7.79%
2004	0.95% to 1.85%	107,166		14.02 to  13.81		1,500,210	1.14%	12.86% to  11.83%
2003	0.95% to 1.45%	38,228		12.42 to  12.38		474,848	0.59%	24.24% to  23.82%	(a)
Van Kampen Growth Fund – Class A
2005	0.95% to 1.55%	27,114		17.17 to  16.90		464,288	0.00%	16.50% to  15.79%
2004	0.95% to 1.55%	9,302		14.74 to  14.59		136,813	0.00%	19.88% to  19.15%
2003	0.95% to 1.45%	1,518		12.30 to  12.26		18,651	0.00%	22.98% to  22.57%	(a)
Van Kampen Real Estate Securities Fund – Class A
2005	0.95% to 1.90%	71,646		19.96 to  19.46		1,422,868	1.66%	15.50% to  14.39%
2004	0.95% to 1.90%	38,415		17.29 to  17.01		661,824	1.32%	35.38% to  34.08%
2003	0.95% to 1.65%	5,655		12.77 to  12.71		72,097	2.27%	27.69% to  27.09%	(a) (b)
Waddell & Reed Advisors Small Cap Fund, Inc. – Class A
2005	0.95% to 1.60%	16,011		15.28 to  15.01		243,451	0.00%	11.31% to  10.58%
2004	0.95% to 1.45%	11,284		13.73 to  13.61		154,603	0.00%	12.18% to  11.62%
2003	1.20% to 1.25%	747		12.22 to  12.21		9,125	0.00%	22.16% to  22.12%	(a)
Wells Fargo Advantage Funds – Common Stock Fund – Class Z
2005	0.95% to 1.90%	279,865		12.42 to  11.76		4,275,989	0.00%	10.95% to    9.89%
2004	0.95% to 1.90%	319,273		11.20 to  10.70		4,395,409	0.00%	8.91% to    7.87%
2003	0.95% to 1.90%	332,850		10.28 to    9.92		4,210,020	0.00%	37.38% to  36.07%
2002	0.95% to 1.90%	305,307		7.29 to  10.88		2,890,786	0.00%	-20.80% to -20.03%
2001	0.95% to 1.70%	264,765		9.24 to  13.65		3,131,330	0.00%	-3.38% to   -2.64%
Wells Fargo Advantage Funds – Growth and Income Fund
2005	0.95% to 1.85%	36,681		6.91 to    6.59		251,415	0.41%	-2.74% to   -3.62%
2004	0.95% to 1.85%	36,418		7.11 to    6.84		256,955	0.48%	7.85% to    6.87%
2003	0.95% to 1.85%	33,718		6.59 to    6.40		221,102	0.19%	23.26% to  22.14%
2002	0.95% to 1.45%	18,511		5.29 to    5.35		98,434	0.01%	-22.97% to -22.57%
2001	0.95% to 1.45%	2,793		6.86 to    6.91		19,241	0.00%	-21.23% to -20.83%

(Continued)

63

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense *Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income **Ratio**	Total ***Return***
Wells Fargo Advantage Funds – Growth Fund
2005	0.95% to 1.45%	15,301	$	11.95 to 11.82	$	181,762	0.00%	7.96%  to   7.42%
2004	0.95% to 1.45%	1,702		11.07 to 11.00		18,787	0.00%	11.50%  to 10.93%
Wells Fargo Advantage Funds – Large Cap Growth Fund
2005	1.30%	86,404		23.86		2,061,588	0.00%	6.47%
2004	1.30%	89,847		22.41		2,013,457	0.00%	7.23%
2003	1.30%	104,342		20.90		2,180,594	0.00%	25.19%
2002	1.30%	109,741		16.69		1,832,011	0.00%	-30.81%
2001	1.30%	139,555		24.13		3,367,016	0.00%	-33.16%
Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z
2005	0.95% to 1.50%	35,742		11.13 to 11.08		397,069	0.00%	11.25% to 10.80%	(a) (b)
2005 Reserves for annuity contracts in payout phase:						82,830
2005 Contract owners’ equity					$	348,541,242
2004 Reserves for annuity contracts in payout phase:						86,864
2004 Contract owners’ equity					$	343,538,465
2003 Reserves for annuity contracts in payout phase:						86,845
2003 Contract owners’ equity					$	328,058,126
2002 Reserves for annuity contracts in payout phase:						76,586
2002 Contract owners’ equity					$	261,873,293
2001 Reserves for annuity contracts in payout phase:						112,595
2001 Contract owners’ equity					$	321,523,190

*	This represents the range of annual contract expense rates of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.
**	This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions to the contractholder accounts either through reductions in unit values or redemption of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.
***	This represents the range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit value for expenses assessed. It does not include any expenses assessed through the redemption of units. The inclusion of these expenses in the calculation would result in a reduction of the total return presented.
(a) & (b)	Denote the minimum and maximum of the total return ranges, respectively, for underlying mutual fund options that were added during the reporting period. These returns were not annualized. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) is representative of all units issued and outstanding at period end. Such options that were added during the reporting period are designated using both symbols.
†	Under a substitution order effective in 2001, the MFS® Strategic Income Fund – Class A was substituted for the MFS® Global Governments Fund – Class A. The financial highlights present data for the MFS® Global Governments Fund – Class A through 2000 and MFS® Strategic Income Fund – Class A thereafter.

64

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

    Contract Owners of Nationwide Variable Account:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account (comprised of the sub-accounts listed in note 1(b)) (collectively, “the Account”) as of December 31, 2005, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Account as of December 31, 2005, and the results of its operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

KPMG LLP

Columbus, Ohio

March 8, 2006

65

NATIONWIDE LIFE INSURANCE COMPANY	PRSRT STD
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