NATIONWIDE^®

VARIABLE

ACCOUNT

Annual Report

to

Contract Owners

December 31, 2006

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

APO–717–12/06

NATIONWIDE VARIABLE ACCOUNT

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2006

Assets:
Investments at fair value:
AIM Basic Balanced Fund – Investor Class (AIMBBal) 16,998 shares (cost $206,069)	$	225,393
AIM Dynamics Fund – Investor Class (AIMDynam) 306,976 shares (cost $4,466,558)		6,514,038
AIM Small Cap Growth Fund – Investor Class (AIMSmCpGr) 15,813 shares (cost $489,370)		472,959
American Century Growth Fund – Investor Class (ACGroI) 364,716 shares (cost $8,723,133)		8,096,691
American Century Income & Growth Fund – Advisor Class (ACIncGroA) 80,683 shares (cost $2,414,901)		2,684,338
American Century Income & Growth Fund – Investor Class (ACIncGroI) 202,578 shares (cost $5,774,722)		6,745,838
American Century International Growth Fund – Advisor Class (ACIntlGrA) 26,420 shares (cost $212,756)		330,512
American Century International Growth Fund – Investor Class (ACIntlGrI) 131,147 shares (cost $1,001,262)		1,641,960
American Century Short-Term Government Fund – Investor Class (ACSTGvtI) 292,767 shares (cost $2,790,536)		2,734,445
American Century Ultra® Fund – Investor Class (ACUltraI) 444,192 shares (cost $12,817,904)		12,042,033
American Century Variable Portfolios, Inc. – International Fund – Class IV (ACVPInt4) 219,146 shares (cost $1,888,014)		2,215,569
Credit Suisse Global Fixed Income Fund – Common Shares (CSGIFixInc) 74,604 shares (cost $743,762)		730,370
Credit Suisse Mid Cap Growth Fund – Common Shares (CSMidCpGr) 92,534 shares (cost $2,592,840)		3,131,335
Delaware Delchester Fund – Institutional Class (DeDelFund) 133,241 shares (cost $441,836)		454,353
Dreyfus A Bonds Plus, Inc. (DryABonds) 169,514 shares (cost $2,329,666)		2,279,960
Dreyfus Appreciation Fund, Inc. (DryApp) 115,225 shares (cost $4,249,105)		5,045,719
Dreyfus Emerging Leaders Fund (DryELead) 651 shares (cost $26,112)		22,611
Dreyfus Premier Balanced Opportunity Fund – Class Z (DryBalOpp) 93,028 shares (cost $1,820,193)		1,881,963
Dreyfus Premier Third Century Fund, Inc. – Class Z, The (Dry3dCen) 95,984 shares (cost $737,596)		906,089
Dreyfus S&P 500 Index Fund (Dry500Ix) 459,835 shares (cost $15,867,873)		18,393,397
Evergreen Equity Income Fund – Class I (EvInc) 42,470 shares (cost $966,989)		992,952
Federated Equity Income Fund, Inc. – Class F Shares (FedEqInc) 8,578 shares (cost $158,477)		183,994
Federated High Yield Trust (FedHiYld) 412,420 shares (cost $2,464,653)		2,507,515
Federated Intermediate Corporate Bond Fund – Institutional Service Shares (FedIntCorpBd) 72,805 shares (cost $735,595)		725,862
Federated Investment Series Funds, Inc. – Federated Bond Fund – Class F Shares (FedBdFd) 244,988 shares (cost $2,213,376)		2,175,494

(Continued)

2

NATIONWIDE VARIABLE ACCOUNT

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

Fidelity® Advisor Balanced Fund – Class A (FidABalA) 34,511 shares (cost $524,957)	$	565,634
Fidelity® Advisor Balanced Fund – Class T (FidABalT) 76,650 shares (cost $1,193,626)		1,264,730
Fidelity® Advisor Equity Growth Fund – Class A (FidAEGroA) 17,500 shares (cost $799,391)		894,625
Fidelity® Advisor Equity Income Fund – Class A (FidAEqIncA) 141,887 shares (cost $3,813,876)		4,428,293
Fidelity® Advisor Equity Income Fund – Class T (FidAEqIncT) 144,346 shares (cost $3,781,280)		4,558,453
Fidelity® Advisor Growth Opportunities Fund – Class A (FidAGrOppA) 16,843 shares (cost $555,171)		576,880
Fidelity® Advisor Growth Opportunities Fund – Class T (FidAGrOppT) 100,073 shares (cost $2,902,939)		3,475,525
Fidelity® Advisor High Income Advantage Fund – Class T (FidAHiIncT) 212,590 shares (cost $2,068,753)		2,244,956
Fidelity® Advisor Overseas Fund – Class A (FidAOvA) 807 shares (cost $14,168)		17,601
Fidelity® Asset Manager™ (FidAsMgr) 158,545 shares (cost $2,420,484)		2,554,167
Fidelity® Capital & Income Fund (FidCapInc) 51,633 shares (cost $417,824)		459,021
Fidelity® Equity-Income Fund (FidEqInc) 190,945 shares (cost $9,294,600)		11,179,855
Fidelity® Magellan® Fund (FidMgln) 175,223 shares (cost $19,573,885)		15,685,961
Fidelity® Puritan® Fund (FidPurtn) 476,974 shares (cost $8,642,349)		9,525,165
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class (FidVIPHI) 3,612 shares (cost $21,638)		22,935
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R) 119,986 shares (cost $2,475,821)		2,832,877
Franklin Mutual Series Fund, Inc. – Mutual Shares Fund – Class A (FranMutSer) 377,374 shares (cost $8,590,597)		9,777,756
Franklin Small-Mid Cap Growth Fund I – Class A (FranSmMCpGr) 63,351 shares (cost $2,172,142)		2,392,782
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 226,153 shares (cost $3,435,359)		4,224,544
Franklin Value Investors Trust – Franklin Balance Sheet Investment Fund – Class A (FranBSInv) 69,576 shares (cost $4,321,547)		4,641,426
Gartmore Bond Fund – Class D (GartBond) 185,701 shares (cost $1,792,954)		1,773,448
Gartmore Bond Index Fund – Class A (GartBdIx) 27,305 shares (cost $298,221)		294,350
Gartmore Government Bond Fund – Class D (GartGvtBd) 411,106 shares (cost $4,267,217)		4,180,948
Gartmore Growth Fund – Class A (GartGrowA) 57,479 shares (cost $404,065)		426,491
Gartmore Growth Fund – Class D (GartGrowD) 114,895 shares (cost $693,617)		870,902
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2) 72,545 shares (cost $906,560)		980,076
Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2) 4,651 shares (cost $48,234)		48,696
Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2) 91,765 shares (cost $1,057,495)		1,126,868

(Continued)

3

NATIONWIDE VARIABLE ACCOUNT

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

Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2) 173,318 shares (cost $2,108,534)	$	2,270,464
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2) 13,524 shares (cost $150,620)		153,500
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund – Class I (GVITJPBal) 22,178 shares (cost $221,422)		243,962
Gartmore International Index Fund – Class A (GartIntlndx) 2,184 shares (cost $16,711)		23,627
Gartmore Investor Destinations Aggressive Fund – Service Class (GartIDAgg) 164,241 shares (cost $1,544,213)		1,800,083
Gartmore Investor Destinations Conservative Fund – Service Class (GartIDCon) 198,243 shares (cost $2,020,979)		2,043,888
Gartmore Investor Destinations Moderate Fund – Service Class (GartIDMod) 855,492 shares (cost $8,482,547)		9,384,749
Gartmore Investor Destinations Moderately Aggressive Fund – Service Class (GartIDModAgg) 345,701 shares (cost $3,354,643)		3,833,829
Gartmore Investor Destinations Moderately Conservative Fund – Service Class (GartIDModCon) 240,140 shares (cost $2,434,195)		2,535,877
Gartmore Large Cap Value Fund – Class A (GartLgCpVal) 227,465 shares (cost $3,094,682)		3,086,699
Gartmore Mid Cap Market Index Fund – Class A (GartMdCpMkt) 108,953 shares (cost $1,553,850)		1,653,904
Gartmore Money Market Fund – Prime Shares (GartMyMkt) 10,726,967 shares (cost $10,726,967)		10,726,967
Gartmore Money Market Fund – Service Class (GartMyMktS) 6,997,918 shares (cost $6,997,918)		6,997,918
Gartmore Nationwide Fund – Class D (GartNWFund) 272,256 shares (cost $5,083,514)		5,148,368
Gartmore S&P 500 Index Fund – Service Class (GartSP500Indx) 355,384 shares (cost $3,650,025)		4,275,267
Gartmore Small Cap Fund – Class A (GartSmCap) 261,794 shares (cost $4,852,149)		5,654,761
Gartmore Small Cap Index Fund – Class A (GartSmCapIx) 114,186 shares (cost $1,391,878)		1,458,154
Gartmore Value Opportunities Fund – Class A (GartValOpp) 20,930 shares (cost $310,148)		293,650
Janus Adviser Series – Balanced Fund – Class S (JanBal) 47,806 shares (cost $1,158,822)		1,265,892
Janus Adviser Series – International Growth Fund – Class S (JanIntlGr) 1,245 shares (cost $34,472)		67,666
Janus Adviser Series – Worldwide Fund – Class S (JanWorld) 16,138 shares (cost $412,016)		536,763
Janus Equity Funds – Janus Fund (JanFund) 269,148 shares (cost $7,549,039)		7,573,811
Janus Equity Funds – Janus Twenty Fund (Jan20Fd) 418,186 shares (cost $23,982,612)		22,841,339
Janus Equity Funds – Janus Worldwide Fund (JanWrldwde) 114,667 shares (cost $5,803,042)		5,786,097
Lazard Small Cap Portfolio Open Shares (LazSmCap) 200,382 shares (cost $3,400,010)		2,859,447
MFS® Strategic Income Fund – Class A (MFSStratIncA) 135,335 shares (cost $915,483)		912,157
Neuberger Berman Genesis Fund – Trust Class (NBGen) 342,745 shares (cost $14,580,407)		16,359,200
Neuberger Berman Guardian Fund – Investor Class (NBGuard) 151,660 shares (cost $2,259,555)		2,861,819
Neuberger Berman Guardian Fund – Trust Class (NBGuardT) 14,708 shares (cost $165,377)		218,561

(Continued)

4

NATIONWIDE VARIABLE ACCOUNT

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

Neuberger Berman Limited Maturity Bond Fund – Investor Class (NBLtdMat) 107,917 shares (cost $1,016,248)	$	980,965
Neuberger Berman Partners Fund – Investor Class (NBPartI) 215,178 shares (cost $5,068,603)		6,681,284
Neuberger Berman Partners Fund – Trust Class (NBPartT) 25,949 shares (cost $565,392)		622,260
Neuberger Berman Socially Responsive Fund – Trust Class (NBSocRes) 91,845 shares (cost $1,497,793)		1,634,835
Oppenheimer Capital Appreciation Fund A (OppCapApA) 48,010 shares (cost $2,022,916)		2,214,693
Oppenheimer Champion Income Fund A (OppChpInc) 25,085 shares (cost $234,935)		238,810
Oppenheimer Global Fund A (OppGlob) 176,091 shares (cost $9,085,215)		12,944,480
Oppenheimer Global Securities Fund/VA – Class 4 (OppGlSec4) 226,857 shares (cost $6,830,299)		8,278,029
Oppenheimer Strategic Income Fund A (OppStratInc) 138,800 shares (cost $591,011)		595,454
Phoenix Balanced Fund – Class A (PhxBalFd) 64,136 shares (cost $915,670)		937,667
PIMCO Total Return Fund – Class A (PimTotRet) 357,542 shares (cost $3,802,380)		3,711,287
Putnam International Equity Fund – Class A (PIntEq) 172 shares (cost $3,795)		5,378
Putnam Voyager Fund – Class A (PVoyager) 3,400 shares (cost $57,231)		62,258
Templeton Foreign Fund – Class A (TemForFd) 366,549 shares (cost $4,061,191)		4,999,732
Van Kampen Growth and Income Fund – Class A (VKGrInc) 151,647 shares (cost $3,048,275)		3,348,370
Van Kampen Mid Cap Growth Fund – Class A (VKMidCpGro) 29,553 shares (cost $770,763)		767,791
Van Kampen Real Estate Securities Fund – Class A (VKRealEstSec) 105,053 shares (cost $2,778,910)		3,282,919
Waddell & Reed Advisors Small Cap Fund – Class A (WRAdSmCap) 21,025 shares (cost $301,432)		288,250
Wells Fargo Advantage FundsSM – Common Stock Fund – Class Z (WFComStk) 214,811 shares (cost $4,387,115)		4,296,230
Wells Fargo Advantage FundsSM – Growth and Income Fund – Investor Class (WFGrInc) 7,062 shares (cost $156,838)		169,351
Wells Fargo Advantage FundsSM – Growth Fund – Investor Class (WFGrowth) 17,634 shares (cost $390,690)		400,645
Wells Fargo Advantage FundsSM – Large Cap Growth Fund – Investor Class (WFLgCpGr) 74,964 shares (cost $1,560,395)		1,910,843
Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z (WFMidCpGr) 49,450 shares (cost $326,472)		301,152
Total investments		355,701,457
Accounts receivable		–
Total assets		355,701,457
Accounts payable		2,080
Contract owners’ equity (note 4)	$	355,699,377

See accompanying notes to financial statements.

5

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS

Year Ended December 31, 2006

Investment activity:	Total			AIMBBal		AIMDynam		AIMSmCpGr		AIMSmCoGr		ACGroI		ACIncGroA		ACIncGroI
Reinvested dividends	$	5,162,535		5,897		–		–		–		5,434		41,283		122,745
Mortality and expense risk charges (note 2)		(4,365,030	)	(3,281	)	(80,616	)	(5,171	)	(1,947	)	(103,449	)	(29,522	)	(86,639	)
Net investment income (loss)		797,505		2,616		(80,616	)	(5,171	)	(1,947	)	(98,015	)	11,761		36,106
Proceeds from mutual fund shares sold		94,912,388		178,733		1,486,863		448,945		1,084,954		1,800,990		906,934		1,541,379
Cost of mutual fund shares sold		(95,416,045	)	(171,230	)	(1,187,166	)	(472,185	)	(950,564	)	(2,624,397	)	(799,380	)	(1,597,161	)
Realized gain (loss) on investments		(503,657	)	7,503		299,697		(23,240	)	134,390		(823,407	)	107,554		(55,782	)
Change in unrealized gain (loss) on investments		18,740,537		12,394		625,070		(16,411	)	(58,404	)	1,434,086		138,127		676,030
Net gain (loss) on investments		18,236,880		19,897		924,767		(39,651	)	75,986		610,679		245,681		620,248
Reinvested capital gains		15,798,752		–		–		33,100		–		–		120,913		304,587
Net increase (decrease) in contract owners’ equity resulting from operations	$	34,833,137		22,513		844,151		(11,722	)	74,039		512,664		378,355		960,941
Investment activity:	ACIntlGrA			ACIntlGrI		ACSTGvtI		ACUltraI		ACVPInt4		CSGIFixInc		CSMidCpGr		DeDelFund
Reinvested dividends	$	1,581		11,903		118,827		–		14,783		21,485		–		31,838
Mortality and expense risk charges (note 2)		(3,520	)	(21,330	)	(33,859	)	(174,316	)	(18,418	)	(11,834	)	(45,415	)	(5,163	)
Net investment income (loss)		(1,939	)	(9,427	)	84,968		(174,316	)	(3,635	)	9,651		(45,415	)	26,675
Proceeds from mutual fund shares sold		74,703		396,450		610,128		3,694,676		314,015		531,188		836,449		117,982
Cost of mutual fund shares sold		(53,689	)	(239,134	)	(633,280	)	(5,659,559	)	(246,202	)	(562,954	)	(958,480	)	(114,615	)
Realized gain (loss) on investments		21,014		157,316		(23,152	)	(1,964,883	)	67,813		(31,766	)	(122,031	)	3,367
Change in unrealized gain (loss) on investments		49,867		202,427		14,597		564,132		250,816		59,417		184,760		18,481
Net gain (loss) on investments		70,881		359,743		(8,555	)	(1,400,751	)	318,629		27,651		62,729		21,848
Reinvested capital gains		–		–		–		835,593		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	68,942		350,316		76,413		(739,474	)	314,994		37,302		17,314		48,523

(Continued)

6

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	DryABonds			DryApp		DryELead		DryBalOpp		Dry3dCen		Dry500Ix		EvInc		FedEqInc
Reinvested dividends	$	113,236		69,060		–		32,642		–		246,011		23,923		3,245
Mortality and expense risk charges (note 2)		(32,422	)	(60,241	)	(498	)	(24,899	)	(12,066	)	(232,306	)	(13,629	)	(1,422	)
Net investment income (loss)		80,814		8,819		(498	)	7,743		(12,066	)	13,705		10,294		1,823
Proceeds from mutual fund shares sold		640,356		1,345,542		69,080		440,878		240,880		3,429,753		384,556		43,285
Cost of mutual fund shares sold		(649,373	)	(1,129,658	)	(59,545	)	(440,571	)	(288,313	)	(3,769,848	)	(315,154	)	(30,184	)
Realized gain (loss) on investments		(9,017	)	215,884		9,535		307		(47,433	)	(340,095	)	69,402		13,101
Change in unrealized gain (loss) on investments		(11,288	)	252,464		(12,698	)	137,281		125,307		2,024,649		(35,633	)	10,904
Net gain (loss) on investments		(20,305	)	468,348		(3,163	)	137,588		77,874		1,684,554		33,769		24,005
Reinvested capital gains		–		195,512		4,982		360		–		587,351		104,047		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	60,509		672,679		1,321		145,691		65,808		2,285,610		148,110		25,828
Investment activity:	FedHiYld			FedIntCorpBd		FedBdFd		FidABalA		FidABalT		FidAEGroA		FidAEqIncA		FidAEqIncT
Reinvested dividends	$	176,097		33,282		125,956		10,833		20,974		–		46,967		45,407
Mortality and expense risk charges (note 2)		(28,543	)	(7,941	)	(29,238	)	(6,538	)	(15,917	)	(9,712	)	(46,989	)	(57,071	)
Net investment income (loss)		147,554		25,341		96,718		4,295		5,057		(9,712	)	(22	)	(11,664	)
Proceeds from mutual fund shares sold		916,125		222,939		668,747		162,074		232,401		344,963		997,904		869,270
Cost of mutual fund shares sold		(955,686	)	(227,909	)	(655,119	)	(152,053	)	(216,952	)	(306,955	)	(766,173	)	(717,452	)
Realized gain (loss) on investments		(39,561	)	(4,970	)	13,628		10,021		15,449		38,008		231,731		151,818
Change in unrealized gain (loss) on investments		112,493		1,492		(12,585	)	12,639		27,737		11,956		213,060		315,136
Net gain (loss) on investments		72,932		(3,478	)	1,043		22,660		43,186		49,964		444,791		466,954
Reinvested capital gains		–		–		–		30,912		68,460		–		162,706		166,017
Net increase (decrease) in contract owners’ equity resulting from operations	$	220,486		21,863		97,761		57,867		116,703		40,252		607,475		621,307

(Continued)

7

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	FidAGrOppA			FidAGrOppT		FidAHiIncT		FidAOvA		FidAsMgr		FidCapInc		FidEqInc		FidMgln
Reinvested dividends	$	–		–		155,211		183		81,706		28,926		174,309		83,067
Mortality and expense risk charges (note 2)		(7,422	)	(47,293	)	(29,035	)	(1,225	)	(37,365	)	(6,041	)	(137,098	)	(222,452	)
Net investment income (loss)		(7,422	)	(47,293	)	126,176		(1,042	)	44,341		22,885		37,211		(139,385	)
Proceeds from mutual fund shares sold		1,034,714		1,178,200		789,711		203,096		1,024,834		75,916		2,018,463		4,188,881
Cost of mutual fund shares sold		(990,185	)	(1,413,542	)	(756,843	)	(158,927	)	(991,391	)	(84,527	)	(1,891,691	)	(5,664,616	)
Realized gain (loss) on investments		44,529		(235,342	)	32,868		44,169		33,443		(8,611	)	126,772		(1,475,735	)
Change in unrealized gain (loss) on investments		(27,067	)	390,832		151,691		(27,137	)	(10,071	)	36,685		979,861		(1,456,646	)
Net gain (loss) on investments		17,462		155,490		184,559		17,032		23,372		28,074		1,106,633		(2,932,381	)
Reinvested capital gains		–		–		–		859		133,887		–		643,235		3,996,272
Net increase (decrease) in contract owners’ equity resulting from operations	$	10,040		108,197		310,735		16,849		201,600		50,959		1,787,079		924,506
Investment activity:	FidPurtn			FidVIPHI		FidVIPOvS2R		FranMutSer		FranSmMCpGr		FrVIPForSec3		FranBSInv		GartBond
Reinvested dividends	$	284,650		1,713		9,830		155,131		–		46,562		55,605		90,786
Mortality and expense risk charges (note 2)		(123,953	)	(281	)	(24,255	)	(108,021	)	(27,665	)	(44,985	)	(47,191	)	(23,270	)
Net investment income (loss)		160,697		1,432		(14,425	)	47,110		(27,665	)	1,577		8,414		67,516
Proceeds from mutual fund shares sold		1,868,382		300		315,440		1,752,159		767,923		701,754		1,139,017		495,533
Cost of mutual fund shares sold		(1,825,218	)	(368	)	(245,517	)	(1,180,558	)	(574,453	)	(550,472	)	(808,325	)	(495,098	)
Realized gain (loss) on investments		43,164		(68	)	69,923		571,601		193,470		151,282		330,692		435
Change in unrealized gain (loss) on investments		582,298		685		248,150		169,748		(183,901	)	506,979		(61,434	)	(15,437	)
Net gain (loss) on investments		625,462		617		318,073		741,349		9,569		658,261		269,258		(15,002	)
Reinvested capital gains		399,630		–		8,192		585,067		167,436		–		269,546		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,185,789		2,049		311,840		1,373,526		149,340		659,838		547,218		52,514

(Continued)

8

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GartBdIx			GartGvtBd		GartGrowA		GartGrowD		GVITIDAgg2		GVITIDCon2		GVITIDMod2		GVITIDModAg2
Reinvested dividends	$	11,328		186,707		–		–		13,139		1,241		26,559		38,117
Mortality and expense risk charges (note 2)		(3,264	)	(53,434	)	(7,093	)	(12,807	)	(6,436	)	(494	)	(14,751	)	(19,613	)
Net investment income (loss)		8,064		133,273		(7,093	)	(12,807	)	6,703		747		11,808		18,504
Proceeds from mutual fund shares sold		63,919		1,390,504		508,988		369,310		91,426		2,576		394,526		271,657
Cost of mutual fund shares sold		(66,970	)	(1,485,653	)	(454,884	)	(305,691	)	(81,407	)	(2,611	)	(340,174	)	(243,471	)
Realized gain (loss) on investments		(3,051	)	(95,149	)	54,104		63,619		10,019		(35	)	54,352		28,186
Change in unrealized gain (loss) on investments		1,629		68,739		(29,867	)	(7,655	)	56,213		826		34,326		135,545
Net gain (loss) on investments		(1,422	)	(26,410	)	24,237		55,964		66,232		791		88,678		163,731
Reinvested capital gains		–		–		–		–		5,951		353		10,021		19,437
Net increase (decrease) in contract owners’ equity resulting from operations	$	6,642		106,863		17,144		43,157		78,886		1,891		110,507		201,672
Investment activity:	GVITIDModCon2			GVITJPBal		GartIntlndx		GartIDAgg		GartIDCon		GartIDMod		GartIDModAgg		GartIDModCon
Reinvested dividends	$	3,155		5,438		496		17,715		54,666		158,400		49,269		54,674
Mortality and expense risk charges (note 2)		(1,336	)	(2,823	)	(258	)	(17,941	)	(20,524	)	(94,141	)	(41,207	)	(25,227	)
Net investment income (loss)		1,819		2,615		238		(226	)	34,142		64,259		8,062		29,447
Proceeds from mutual fund shares sold		46,961		59,223		633		172,687		162,498		387,405		269,195		183,307
Cost of mutual fund shares sold		(47,206	)	(51,739	)	(462	)	(125,586	)	(156,446	)	(300,815	)	(230,627	)	(168,180	)
Realized gain (loss) on investments		(245	)	7,484		171		47,101		6,052		86,590		38,568		15,127
Change in unrealized gain (loss) on investments		2,851		14,876		3,603		143,241		19,677		487,801		302,803		52,818
Net gain (loss) on investments		2,606		22,360		3,774		190,342		25,729		574,391		341,371		67,945
Reinvested capital gains		1,516		–		624		37,558		29,522		179,425		76,718		59,666
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,941		24,975		4,636		227,674		89,393		818,075		426,151		157,058

(Continued)

9

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	GartLgCpVal			GartMdCpMkt		GartMyMkt		GartMyMktS		GartNWFund		GartSP500Indx		GartSmCap		GartSmCapIx
Reinvested dividends	$	28,625		16,720		450,378		245,404		57,561		55,698		9,985		15,417
Mortality and expense risk charges (note 2)		(29,441	)	(15,758	)	(131,153	)	(64,853	)	(69,500	)	(51,243	)	(65,721	)	(13,537	)
Net investment income (loss)		(816	)	962		319,225		180,551		(11,939	)	4,455		(55,736	)	1,880
Proceeds from mutual fund shares sold		680,015		85,614		5,204,652		5,048,064		1,477,656		1,376,923		2,145,027		166,330
Cost of mutual fund shares sold		(580,175	)	(52,552	)	(5,204,652	)	(5,048,064	)	(1,670,638	)	(1,070,753	)	(1,668,114	)	(142,611	)
Realized gain (loss) on investments		99,840		33,062		–		–		(192,982	)	306,170		476,913		23,719
Change in unrealized gain (loss) on investments		(49,640	)	(17,687	)	–		–		270,503		223,812		585,239		24,807
Net gain (loss) on investments		50,200		15,375		–		–		77,521		529,982		1,062,152		48,526
Reinvested capital gains		397,348		85,226		–		–		546,752		17,303		229,009		109,884
Net increase (decrease) in contract owners’ equity resulting from operations	$	446,732		101,563		319,225		180,551		612,334		551,740		1,235,425		160,290
Investment activity:	GartValOpp			JanBal		JanIntlGr		JanWorld		JanFund		Jan20Fd		JanWrldwde		LazSmCap
Reinvested dividends	$	–		19,008		481		9,897		25,516		133,753		73,080		–
Mortality and expense risk charges (note 2)		(4,618	)	(15,049	)	(706	)	(6,400	)	(97,183	)	(291,827	)	(75,658	)	(38,192	)
Net investment income (loss)		(4,618	)	3,959		(225	)	3,497		(71,667	)	(158,074	)	(2,578	)	(38,192	)
Proceeds from mutual fund shares sold		323,452		413,615		2,437		158,563		1,242,745		3,971,638		1,571,606		1,133,421
Cost of mutual fund shares sold		(327,178	)	(338,248	)	(1,446	)	(130,652	)	(1,972,695	)	(6,417,484	)	(2,551,428	)	(1,306,261	)
Realized gain (loss) on investments		(3,726	)	75,367		991		27,911		(729,950	)	(2,445,846	)	(979,822	)	(172,840	)
Change in unrealized gain (loss) on investments		12,010		(53,954	)	19,861		44,943		1,477,180		4,922,161		1,860,969		28,664
Net gain (loss) on investments		8,284		21,413		20,852		72,854		747,230		2,476,315		881,147		(144,176	)
Reinvested capital gains		38,523		87,095		–		–		–		–		–		588,325
Net increase (decrease) in contract owners’ equity resulting from operations	$	42,189		112,467		20,627		76,351		675,563		2,318,241		878,569		405,957

(Continued)

10

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	MFSStratIncA			NBGen		NBGuard		NBGuardT		NBLtdMat		NBPartI		NBPartT		NBSocRes
Reinvested dividends	$	58,057		188,289		9,859		511		46,325		41,402		2,677		1,053
Mortality and expense risk charges (note 2)		(12,899	)	(223,153	)	(38,488	)	(3,041	)	(13,385	)	(91,848	)	(7,627	)	(13,460	)
Net investment income (loss)		45,158		(34,864	)	(28,629	)	(2,530	)	32,940		(50,446	)	(4,950	)	(12,407	)
Proceeds from mutual fund shares sold		338,030		4,974,024		687,452		116,991		226,845		1,965,719		233,099		292,281
Cost of mutual fund shares sold		(332,396	)	(3,490,847	)	(596,374	)	(80,773	)	(242,052	)	(1,556,032	)	(178,781	)	(265,000	)
Realized gain (loss) on investments		5,634		1,483,177		91,078		36,218		(15,207	)	409,687		54,318		27,281
Change in unrealized gain (loss) on investments		1,175		(1,687,537	)	70,884		(20,871	)	10,386		269,828		1,655		115,656
Net gain (loss) on investments		6,809		(204,360	)	161,962		15,347		(4,821	)	679,515		55,973		142,937
Reinvested capital gains		–		1,196,371		185,657		14,137		–		109,536		10,142		15,026
Net increase (decrease) in contract owners’ equity resulting from operations	$	51,967		957,147		318,990		26,954		28,119		738,605		61,165		145,556
Investment activity:	OppCapApA			OppChpInc		OppGlob		OppGlSec4		OppStratInc		PhxBalFd		PimTotRet		PIntEq
Reinvested dividends	$	–		14,708		89,386		56,824		28,983		23,152		163,713		112
Mortality and expense risk charges (note 2)		(25,913	)	(2,480	)	(170,946	)	(86,652	)	(6,724	)	(13,783	)	(44,616	)	(67	)
Net investment income (loss)		(25,913	)	12,228		(81,560	)	(29,828	)	22,259		9,369		119,097		45
Proceeds from mutual fund shares sold		1,540,633		154,875		3,952,425		1,045,242		212,339		384,289		940,434		69
Cost of mutual fund shares sold		(1,370,530	)	(155,751	)	(2,674,021	)	(771,255	)	(210,970	)	(365,295	)	(978,811	)	(50	)
Realized gain (loss) on investments		170,103		(876	)	1,278,404		273,987		1,369		18,994		(38,377	)	19
Change in unrealized gain (loss) on investments		20,157		6,497		68,617		454,627		14,501		(1,559	)	(10,130	)	826
Net gain (loss) on investments		190,260		5,621		1,347,021		728,614		15,870		17,435		(48,507	)	845
Reinvested capital gains		–		–		701,372		351,939		–		82,287		13,814		235
Net increase (decrease) in contract owners’ equity resulting from operations	$	164,347		17,849		1,966,833		1,050,725		38,129		109,091		84,404		1,125

(Continued)

11

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006

Investment activity:	PVoyager			TemForFd		VKGrInc		VKMidCpGro		VKRealEstSec		WRAdSmCap		WFComStk		WFGrInc
Reinvested dividends	$	–		108,662		43,756		–		30,966		–		–		585
Mortality and expense risk charges (note 2)		(1,164	)	(65,144	)	(30,032	)	(6,381	)	(27,038	)	(3,170	)	(56,088	)	(2,159	)
Net investment income (loss)		(1,164	)	43,518		13,724		(6,381	)	3,928		(3,170	)	(56,088	)	(1,574	)
Proceeds from mutual fund shares sold		135,092		1,639,399		345,499		456,705		698,946		44,499		965,063		435,175
Cost of mutual fund shares sold		(118,133	)	(1,216,734	)	(282,693	)	(399,362	)	(531,608	)	(35,547	)	(777,704	)	(389,656	)
Realized gain (loss) on investments		16,959		422,665		62,806		57,343		167,338		8,952		187,359		45,519
Change in unrealized gain (loss) on investments		(11,419	)	8,670		144,504		(33,195	)	393,203		(33,746	)	(441,643	)	(17,540	)
Net gain (loss) on investments		5,540		431,335		207,310		24,148		560,541		(24,794	)	(254,284	)	27,979
Reinvested capital gains		–		423,162		183,952		37,710		200,071		40,101		856,909		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,376		898,015		404,986		55,477		764,540		12,137		546,537		26,405
Investment activity:	WFGrowth			WFLgCpGr		WFMidCpGr
Reinvested dividends	$	–		–		–
Mortality and expense risk charges (note 2)		(3,537	)	(26,088	)	(5,495	)
Net investment income (loss)		(3,537	)	(26,088	)	(5,495	)
Proceeds from mutual fund shares sold		161,970		456,147		545,108
Cost of mutual fund shares sold		(153,437	)	(600,052	)	(514,636	)
Realized gain (loss) on investments		8,533		(143,905	)	30,472
Change in unrealized gain (loss) on investments		3,861		201,292		(37,995	)
Net gain (loss) on investments		12,394		57,387		(7,523	)
Reinvested capital gains		–		–		37,411
Net increase (decrease) in contract owners’ equity resulting from operations	$	8,857		31,299		24,393

See accompanying notes to financial statements.

12

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2006 and 2005

	Total					AIMBBal				AIMDynam				AIMSmCpGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	797,505		215,613		2,616		1,132		(80,616	)	(74,036	)	(5,171	)	–
Realized gain (loss) on investments		(503,657	)	(6,047,058	)	7,503		153		299,697		(279,273	)	(23,240	)	–
Change in unrealized gain (loss) on investments		18,740,537		17,060,505		12,394		6,929		625,070		833,628		(16,411	)	–
Reinvested capital gains		15,798,752		7,651,107		–		–		–		–		33,100		–
Net increase (decrease) in contract owners’ equity resulting from operations		34,833,137		18,880,167		22,513		8,214		844,151		480,319		(11,722	)	–
Equity transactions:
Purchase payments received from contract owners (note 3)		32,346,562		38,318,495		48,819		3,315		538,595		553,700		81,788		–
Transfers between funds		–		–		(118,804	)	302,495		(166,325	)	(196,601	)	466,133		–
Redemptions (note 3)		(59,456,305	)	(51,464,050	)	(34,563	)	(7,814	)	(785,672	)	(903,135	)	(63,060	)	–
Annuity benefits		(10,955	)	(10,761	)	–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(336,146	)	(369,724	)	–		–		(7,019	)	(7,484	)	–		–
Contingent deferred sales charges (note 2)		(224,610	)	(376,282	)	(100	)	(29	)	(3,808	)	(7,898	)	(189	)	–
Adjustments to maintain reserves		6,452		24,932		(10	)	1,334		(134	)	(165	)	1,116		–
Net equity transactions		(27,675,002	)	(13,877,390	)	(104,658	)	299,301		(424,363	)	(561,583	)	485,788		–
Net change in contract owners’ equity		7,158,135		5,002,777		(82,145	)	307,515		419,788		(81,264	)	474,066		–
Contract owners’ equity beginning of period		348,541,242		343,538,465		307,515		–		6,094,108		6,175,372		–		–
Contract owners’ equity end of period	$	355,699,377		348,541,242		225,370		307,515		6,513,896		6,094,108		474,066		–
CHANGES IN UNITS:
Beginning units		20,043,511		20,285,035		29,943		–		672,720		721,091		–		–
Units purchased		5,509,615		6,524,700		7,148		31,384		144,639		145,058		92,504		–
Units redeemed		(6,657,972	)	(6,766,224	)	(17,017	)	(1,441	)	(199,346	)	(193,429	)	(46,078	)	–
Ending units		18,895,154		20,043,511		20,074		29,943		618,013		672,720		46,426		–

(Continued)

13

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	AIMSmCoGr					AIMTotRet			ACGroI				ACIncGroA
Investment activity:	2006			2005		2006	2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,947	)	(5,551	)	–	904		(98,015	)	(74,244	)	11,761		13,940
Realized gain (loss) on investments		134,390		12,392		–	10,973		(823,407	)	(528,575	)	107,554		32,185
Change in unrealized gain (loss) on investments		(58,404	)	8,431		–	(16,111	)	1,434,086		883,547		138,127		(56,598	)
Reinvested capital gains		–		–		–	–		–		–		120,913		97,275
Net increase (decrease) in contract owners’ equity resulting from operations		74,039		15,272		–	(4,234	)	512,664		280,728		378,355		86,802
Equity transactions:
Purchase payments received from contract owners (note 3)		16,011		40,119		–	3,613		444,904		430,615		218,114		352,701
Transfers between funds		(877,210	)	312,210		–	(322,918	)	(71,111	)	(177,824	)	(400,216	)	146,561
Redemptions (note 3)		(49,151	)	(56,619	)	–	(15,075	)	(1,097,524	)	(958,834	)	(188,895	)	(288,290	)
Annuity benefits		–		–		–	–		(10,601	)	(10,422	)	–		–
Annual contract maintenance charges (note 2)		–		–		–	–		(10,112	)	(11,249	)	–		–
Contingent deferred sales charges (note 2)		(5	)	(1,002	)	–	(292	)	(2,580	)	(6,332	)	(2,453	)	(3,450	)
Adjustments to maintain reserves		(1	)	(128	)	–	(26	)	4,228		3,422		(110	)	(81	)
Net equity transactions		(910,356	)	294,580		–	(334,698	)	(742,796	)	(730,624	)	(373,560	)	207,441
Net change in contract owners’ equity		(836,317	)	309,852		–	(338,932	)	(230,132	)	(449,896	)	4,795		294,243
Contract owners’ equity beginning of period		836,317		526,465		–	338,932		8,325,842		8,775,738		2,679,433		2,385,190
Contract owners’ equity end of period	$	–		836,317		–	–		8,095,710		8,325,842		2,684,228		2,679,433
CHANGES IN UNITS:
Beginning units		116,299		76,283		–	34,578		218,579		216,274		283,932		261,253
Units purchased		22,635		60,338		–	667		133,073		39,913		57,241		65,536
Units redeemed		(138,934	)	(20,322	)	–	(35,245	)	(130,248	)	(37,608	)	(94,611	)	(42,857	)
Ending units		–		116,299		–	–		221,404		218,579		246,562		283,932

(Continued)

14

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACIncGroI					ACIntlGrA				ACIntlGrI				ACSTGvtI
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	36,106		42,674		(1,939	)	1,461		(9,427	)	6,531		84,968		56,565
Realized gain (loss) on investments		(55,782	)	(63,312	)	21,014		4,293		157,316		118,544		(23,152	)	(16,072	)
Change in unrealized gain (loss) on investments		676,030		(18,923	)	49,867		29,729		202,427		57,725		14,597		(27,201	)
Reinvested capital gains		304,587		269,498		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		960,941		229,937		68,942		35,483		350,316		182,800		76,413		13,292
Equity transactions:
Purchase payments received from contract owners (note 3)		451,242		421,962		–		–		91		901		268,335		429,530
Transfers between funds		(250,745	)	(20,711	)	(53,253	)	(13,140	)	(102,166	)	(195,870	)	(170,844	)	(122,199	)
Redemptions (note 3)		(1,297,800	)	(1,239,200	)	(17,261	)	(16,246	)	(269,888	)	(175,818	)	(335,785	)	(494,273	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(9,892	)	(11,225	)	–		–		(2,303	)	(2,618	)	(2,237	)	(2,637	)
Contingent deferred sales charges (note 2)		(793	)	(10,480	)	(646	)	(114	)	(512	)	(796	)	(1,214	)	(4,171	)
Adjustments to maintain reserves		(9	)	3		(23	)	(36	)	11		2		(58	)	(224	)
Net equity transactions		(1,107,997	)	(859,651	)	(71,183	)	(29,536	)	(374,767	)	(374,199	)	(241,803	)	(193,974	)
Net change in contract owners’ equity		(147,056	)	(629,714	)	(2,241	)	5,947		(24,451	)	(191,399	)	(165,390	)	(180,682	)
Contract owners’ equity beginning of period		6,892,875		7,522,589		332,738		326,791		1,666,429		1,857,828		2,899,210		3,079,892
Contract owners’ equity end of period	$	6,745,819		6,892,875		330,497		332,738		1,641,978		1,666,429		2,733,820		2,899,210
CHANGES IN UNITS:
Beginning units		357,908		404,012		42,287		46,456		73,235		91,337		169,897		173,163
Units purchased		32,428		40,219		–		–		5		42		28,146		39,455
Units redeemed		(87,478	)	(86,323	)	(8,238	)	(4,169	)	(14,754	)	(18,144	)	(39,900	)	(42,721	)
Ending units		302,858		357,908		34,049		42,287		58,486		73,235		158,143		169,897

(Continued)

15

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	ACUltraI					ACVPInt4				CSGIFixInc				CSMidCpGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(174,316	)	(194,054	)	(3,635	)	(2,532	)	9,651		8,370		(45,415	)	(51,461	)
Realized gain (loss) on investments		(1,964,883	)	(1,603,457	)	67,813		34,923		(31,766	)	(12,300	)	(122,031	)	(421,744	)
Change in unrealized gain (loss) on investments		564,132		1,865,320		250,816		26,297		59,417		(71,965	)	184,760		682,766
Reinvested capital gains		835,593		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		(739,474	)	67,809		314,994		58,688		37,302		(75,895	)	17,314		209,561
Equity transactions:
Purchase payments received from contract owners (note 3)		782,715		1,225,132		320,255		199,757		48,812		111,287		171,668		214,641
Transfers between funds		(1,312,598	)	(1,056,681	)	1,090,766		(183,794	)	(101,714	)	39,614		(321,519	)	(68,465	)
Redemptions (note 3)		(2,737,375	)	(2,299,841	)	(143,642	)	(67,302	)	(264,738	)	(57,430	)	(526,224	)	(514,850	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(16,636	)	(20,614	)	(981	)	(544	)	(1,012	)	(1,078	)	(4,173	)	(5,216	)
Contingent deferred sales charges (note 2)		(7,570	)	(20,645	)	(318	)	(245	)	(323	)	(259	)	(1,022	)	(1,881	)
Adjustments to maintain reserves		(191	)	(72	)	(62	)	(4	)	12		(25	)	(29	)	10
Net equity transactions		(3,291,655	)	(2,172,721	)	1,266,018		(52,132	)	(318,963	)	92,109		(681,299	)	(375,761	)
Net change in contract owners’ equity		(4,031,129	)	(2,104,912	)	1,581,012		6,556		(281,661	)	16,214		(663,985	)	(166,200	)
Contract owners’ equity beginning of period		16,072,947		18,177,859		634,500		627,944		1,012,033		995,819		3,795,283		3,961,483
Contract owners’ equity end of period	$	12,041,818		16,072,947		2,215,512		634,500		730,372		1,012,033		3,131,298		3,795,283
CHANGES IN UNITS:
Beginning units		1,011,426		1,146,821		50,510		55,739		71,866		65,791		243,568		268,276
Units purchased		70,507		319,769		120,692		33,103		15,896		21,306		14,602		27,462
Units redeemed		(290,811	)	(455,164	)	(28,241	)	(38,332	)	(38,009	)	(15,231	)	(58,003	)	(52,170	)
Ending units		791,122		1,011,426		142,961		50,510		49,753		71,866		200,167		243,568

(Continued)

16

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DeDelFund					DryABonds				DryApp				DryELead
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	26,675		33,468		80,814		96,518		8,819		7,015		(498	)	(1,002	)
Realized gain (loss) on investments		3,367		18,229		(9,017	)	(7,295	)	215,884		32,454		9,535		1,810
Change in unrealized gain (loss) on investments		18,481		(40,520	)	(11,288	)	(59,042	)	252,464		119,250		(12,698	)	(7,234	)
Reinvested capital gains		–		–		–		–		195,512		–		4,982		12,533
Net increase (decrease) in contract owners’ equity resulting from operations		48,523		11,177		60,509		30,181		672,679		158,719		1,321		6,107
Equity transactions:
Purchase payments received from contract owners (note 3)		29,147		44,364		156,740		210,614		371,651		881,027		–		–
Transfers between funds		27,751		(188,598	)	(152,661	)	(80,137	)	(790,582	)	(328,129	)	(26,293	)	(10,142	)
Redemptions (note 3)		(62,733	)	(57,741	)	(511,358	)	(654,356	)	(582,207	)	(569,080	)	(37,682	)	(1,646	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(622	)	(667	)	(2,913	)	(3,978	)	(3,703	)	(4,115	)	–		–
Contingent deferred sales charges (note 2)		(168	)	(219	)	(1,408	)	(2,786	)	(2,631	)	(6,870	)	–		–
Adjustments to maintain reserves		197		92		14		(56	)	(101	)	(80	)	4		(4	)
Net equity transactions		(6,428	)	(202,769	)	(511,586	)	(530,699	)	(1,007,573	)	(27,247	)	(63,971	)	(11,792	)
Net change in contract owners’ equity		42,095		(191,592	)	(451,077	)	(500,518	)	(334,894	)	131,472		(62,650	)	(5,685	)
Contract owners’ equity beginning of period		411,980		603,572		2,731,017		3,231,535		5,380,498		5,249,026		85,268		90,953
Contract owners’ equity end of period	$	454,075		411,980		2,279,940		2,731,017		5,045,604		5,380,498		22,618		85,268
CHANGES IN UNITS:
Beginning units		27,252		40,881		178,348		213,109		501,974		499,347		7,031		8,093
Units purchased		7,173		6,877		12,388		20,260		48,656		130,500		344		–
Units redeemed		(7,758	)	(20,506	)	(45,729	)	(55,021	)	(145,117	)	(127,873	)	(5,621	)	(1,062	)
Ending units		26,667		27,252		145,007		178,348		405,513		501,974		1,754		7,031

(Continued)

17

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	DryBalOpp					Dry3dCen				Dry500Ix				EvInc
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	7,743		6,407		(12,066	)	(10,338	)	13,705		(2,204	)	10,294		2,608
Realized gain (loss) on investments		307		(8,235	)	(47,433	)	(107,795	)	(340,095	)	(437,493	)	69,402		24,145
Change in unrealized gain (loss) on investments		137,281		(81,935	)	125,307		141,094		2,024,649		990,794		(35,633	)	(47,434	)
Reinvested capital gains		360		15,231		–		–		587,351		–		104,047		48,651
Net increase (decrease) in contract owners’ equity resulting from operations		145,691		(68,532	)	65,808		22,961		2,285,610		551,097		148,110		27,970
Equity transactions:
Purchase payments received from contract owners (note 3)		117,497		208,848		42,688		74,924		1,470,759		1,596,442		62,674		81,877
Transfers between funds		(46,987	)	(159,608	)	(118,238	)	(62,217	)	(120,802	)	(744,433	)	32,382		33,255
Redemptions (note 3)		(278,363	)	(206,046	)	(128,367	)	(139,282	)	(3,202,823	)	(2,602,610	)	(333,110	)	(150,319	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,418	)	(1,871	)	(1,415	)	(1,680	)	(27,472	)	(31,194	)	(1,582	)	(1,569	)
Contingent deferred sales charges (note 2)		(1,243	)	(2,217	)	(267	)	(2,110	)	(7,060	)	(16,453	)	(1,181	)	(484	)
Adjustments to maintain reserves		1,494		15,535		(19	)	(16	)	40		20		(44	)	11
Net equity transactions		(209,020	)	(145,359	)	(205,618	)	(130,381	)	(1,887,358	)	(1,798,228	)	(240,861	)	(37,229	)
Net change in contract owners’ equity		(63,329	)	(213,891	)	(139,810	)	(107,420	)	398,252		(1,247,131	)	(92,751	)	(9,259	)
Contract owners’ equity beginning 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
Contract owners’ equity end of period	$	1,883,248		1,946,577		906,072		1,045,882		18,393,389		17,995,137		992,926		1,085,677
CHANGES IN UNITS:
Beginning units		197,213		213,309		75,308		83,260		624,278		688,019		44,806		46,314
Units purchased		15,973		27,070		3,069		7,216		89,671		86,130		6,631		8,905
Units redeemed		(36,810	)	(43,166	)	(19,827	)	(15,168	)	(152,953	)	(149,871	)	(15,969	)	(10,413	)
Ending units		176,376		197,213		58,550		75,308		560,996		624,278		35,468		44,806

(Continued)

18

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FedEqInc					FedHiYld				FedIntCorpBd				FedBdFd
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,823		678		147,554		138,028		25,341		30,162		96,718		105,791
Realized gain (loss) on investments		13,101		2,145		(39,561	)	(18,606	)	(4,970	)	(8,005	)	13,628		25,831
Change in unrealized gain (loss) on investments		10,904		(1,498	)	112,493		(93,689	)	1,492		(13,176	)	(12,585	)	(118,798	)
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		25,828		1,325		220,486		25,733		21,863		8,981		97,761		12,824
Equity transactions:
Purchase payments received from contract owners (note 3)		484		489		251,709		373,402		53,260		113,906		227,381		201,479
Transfers between funds		68,657		1,439		541,093		(311,938	)	(106,469	)	(67,517	)	(41,918	)	151,224
Redemptions (note 3)		(3,741	)	(12,077	)	(538,051	)	(385,590	)	(91,532	)	(71,581	)	(501,299	)	(379,027	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,537	)	(1,718	)	–		–		(2,257	)	(2,443	)
Contingent deferred sales charges (note 2)		(97	)	(26	)	(3,669	)	(2,370	)	(1,480	)	(447	)	(626	)	(2,184	)
Adjustments to maintain reserves		(28	)	(5	)	103		(134	)	–		(93	)	9		147
Net equity transactions		65,275		(10,180	)	249,648		(328,348	)	(146,221	)	(25,732	)	(318,710	)	(30,804	)
Net change in contract owners’ equity		91,103		(8,855	)	470,134		(302,615	)	(124,358	)	(16,751	)	(220,949	)	(17,980	)
Contract owners’ equity beginning of period		92,867		101,722		2,037,470		2,340,085		850,195		866,946		2,396,452		2,414,432
Contract owners’ equity end of period	$	183,970		92,867		2,507,604		2,037,470		725,837		850,195		2,175,503		2,396,452
CHANGES IN UNITS:
Beginning units		11,009		12,280		173,763		202,267		66,370		68,364		159,931		162,608
Units purchased		11,186		234		107,710		92,592		7,388		34,663		27,934		32,574
Units redeemed		(4,272	)	(1,505	)	(86,746	)	(121,096	)	(18,817	)	(36,657	)	(48,721	)	(35,251	)
Ending units		17,923		11,009		194,727		173,763		54,941		66,370		139,144		159,931

(Continued)

19

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidABalA					FidABalT				FidAEGroA				FidAEqIncA
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	4,295		5,947		5,057		5,043		(9,712	)	(11,705	)	(22	)	(5,439	)
Realized gain (loss) on investments		10,021		4,806		15,449		(14,078	)	38,008		49,835		231,731		197,360
Change in unrealized gain (loss) on investments		12,639		(22,000	)	27,737		(14,689	)	11,956		3,625		213,060		(195,150	)
Reinvested capital gains		30,912		35,865		68,460		62,490		–		–		162,706		217,246
Net increase (decrease) in contract owners’ equity resulting from operations		57,867		24,618		116,703		38,766		40,252		41,755		607,475		214,017
Equity transactions:
Purchase payments received from contract owners (note 3)		11,777		14,626		136,745		144,177		184,113		47,590		500,001		761,885
Transfers between funds		(37,516	)	22,991		26,467		(144,811	)	(100,157	)	(371,160	)	(394,818	)	(259,897	)
Redemptions (note 3)		(119,967	)	(191,668	)	(158,160	)	(167,256	)	(145,708	)	(78,523	)	(466,214	)	(535,126	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,790	)	(2,036	)	–		–		–		–
Contingent deferred sales charges (note 2)		(1,389	)	(3,797	)	(1,092	)	(284	)	(3,471	)	(906	)	(7,469	)	(4,380	)
Adjustments to maintain reserves		(45	)	(23	)	(4	)	(13	)	(59	)	(43	)	(145	)	(125	)
Net equity transactions		(147,140	)	(157,871	)	2,166		(170,223	)	(65,282	)	(403,042	)	(368,645	)	(37,643	)
Net change in contract owners’ equity		(89,273	)	(133,253	)	118,869		(131,457	)	(25,030	)	(361,287	)	238,830		176,374
Contract owners’ equity beginning of period		654,878		788,131		1,145,848		1,277,305		919,599		1,280,886		4,189,354		4,012,980
Contract owners’ equity end of period	$	565,605		654,878		1,264,717		1,145,848		894,569		919,599		4,428,184		4,189,354
CHANGES IN UNITS:
Beginning units		62,215		77,870		73,624		85,032		135,715		196,942		313,369		315,936
Units purchased		1,187		6,499		15,684		10,951		30,674		12,273		53,223		71,484
Units redeemed		(14,639	)	(22,154	)	(15,330	)	(22,359	)	(40,983	)	(73,500	)	(79,960	)	(74,051	)
Ending units		48,763		62,215		73,978		73,624		125,406		135,715		286,632		313,369

(Continued)

20

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidAEqIncT					FidAGrOppA				FidAGrOppT				FidAHiIncT
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(11,664	)	(24,298	)	(7,422	)	(5,532	)	(47,293	)	(51,524	)	126,176		155,264
Realized gain (loss) on investments		151,818		105,274		44,529		12,987		(235,342	)	(387,242	)	32,868		42,879
Change in unrealized gain (loss) on investments		315,136		(104,829	)	(27,067	)	13,440		390,832		698,681		151,691		(120,377	)
Reinvested capital gains		166,017		221,059		–		–		–		–		–		7,806
Net increase (decrease) in contract owners’ equity resulting from operations		621,307		197,206		10,040		20,895		108,197		259,915		310,735		85,572
Equity transactions:
Purchase payments received from contract owners (note 3)		425,766		462,032		60,752		91,015		250,429		264,332		–		441
Transfers between funds		36,664		74,921		(300,782	)	381,765		(223,642	)	(110,389	)	(132,184	)	(370,594	)
Redemptions (note 3)		(791,227	)	(661,230	)	(151,845	)	(103,956	)	(849,782	)	(599,574	)	(499,821	)	(371,786	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(5,425	)	(5,966	)	–		–		(6,418	)	(7,182	)	(2,045	)	(2,585	)
Contingent deferred sales charges (note 2)		(2,623	)	(1,923	)	(486	)	(3,160	)	(2,063	)	(3,743	)	(647	)	(2,917	)
Adjustments to maintain reserves		(26	)	33		(25	)	827		(38	)	28		234		27
Net equity transactions		(336,871	)	(132,133	)	(392,386	)	366,491		(831,514	)	(456,528	)	(634,463	)	(747,414	)
Net change in contract owners’ equity		284,436		65,073		(382,346	)	387,386		(723,317	)	(196,613	)	(323,728	)	(661,842	)
Contract owners’ equity beginning of period		4,273,989		4,208,916		959,159		571,773		4,198,792		4,395,405		2,568,910		3,230,752
Contract owners’ equity end of period	$	4,558,425		4,273,989		576,813		959,159		3,475,475		4,198,792		2,245,182		2,568,910
CHANGES IN UNITS:
Beginning units		200,850		207,282		121,384		77,514		294,745		330,246		153,451		198,711
Units purchased		33,105		43,415		83,120		146,572		36,102		40,311		8,611		11,203
Units redeemed		(48,192	)	(49,847	)	(134,048	)	(102,702	)	(95,201	)	(75,812	)	(43,562	)	(56,463	)
Ending units		185,763		200,850		70,456		121,384		235,646		294,745		118,500		153,451

(Continued)

21

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidAOvA					FidAsMgr				FidCapInc				FidEqInc
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,042	)	(446	)	44,341		35,122		22,885		23,522		37,211		30,105
Realized gain (loss) on investments		44,169		9,515		33,443		(97,717	)	(8,611	)	(16,468	)	126,772		25,258
Change in unrealized gain (loss) on investments		(27,137	)	10,706		(10,071	)	58,469		36,685		9,528		979,861		(34,410	)
Reinvested capital gains		859		3,125		133,887		80,193		–		–		643,235		419,075
Net increase (decrease) in contract owners’ equity resulting from operations		16,849		22,900		201,600		76,067		50,959		16,582		1,787,079		440,028
Equity transactions:
Purchase payments received from contract owners (note 3)		–		19		176,128		168,900		–		–		609,006		589,954
Transfers between funds		(131,805	)	(90,932	)	(111,545	)	(175,469	)	–		–		25,430		245,476
Redemptions (note 3)		(68,381	)	(4,154	)	(926,385	)	(749,465	)	(69,087	)	(75,855	)	(1,761,538	)	(1,596,764	)
Annuity benefits		–		–		–		–		–		–		(354	)	(339	)
Annual contract maintenance charges (note 2)		–		–		(4,166	)	(5,082	)	(772	)	(841	)	(12,910	)	(14,110	)
Contingent deferred sales charges (note 2)		(1,672	)	(11	)	(911	)	(3,411	)	(18	)	–		(1,663	)	(6,160	)
Adjustments to maintain reserves		(8	)	(5	)	24		(15	)	95		(24	)	(223	)	(5,641	)
Net equity transactions		(201,866	)	(95,083	)	(866,855	)	(764,542	)	(69,782	)	(76,720	)	(1,142,252	)	(787,584	)
Net change in contract owners’ equity		(185,017	)	(72,183	)	(665,255	)	(688,475	)	(18,823	)	(60,138	)	644,827		(347,556	)
Contract owners’ equity beginning of period		202,627		274,810		3,219,428		3,907,903		477,891		538,029		10,535,147		10,882,703
Contract owners’ equity end of period	$	17,610		202,627		2,554,173		3,219,428		459,068		477,891		11,179,974		10,535,147
CHANGES IN UNITS:
Beginning units		19,671		30,133		155,360		193,635		6,767		7,899		104,705		112,880
Units purchased		–		226		10,904		10,836		–		–		12,791		11,803
Units redeemed		(18,204	)	(10,688	)	(51,895	)	(49,111	)	(941	)	(1,132	)	(23,534	)	(19,978	)
Ending units		1,467		19,671		114,369		155,360		5,826		6,767		93,962		104,705

(Continued)

22

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FidMgln					FidPurtn				FidVIPHI				FidVIPOvS2R
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(139,385	)	(74,670	)	160,697		128,788		1,432		2,793		(14,425	)	(3,480	)
Realized gain (loss) on investments		(1,475,735	)	(753,974	)	43,164		(68,985	)	(68	)	(61	)	69,923		34,938
Change in unrealized gain (loss) on investments		(1,456,646	)	1,195,038		582,298		(52,409	)	685		(2,447	)	248,150		60,898
Reinvested capital gains		3,996,272		513,479		399,630		307,367		–		–		8,192		1,803
Net increase (decrease) in contract owners’ equity resulting from operations		924,506		879,873		1,185,789		314,761		2,049		285		311,840		94,159
Equity transactions:
Purchase payments received from contract owners (note 3)		606,671		772,559		397,080		423,507		–		–		458,852		185,948
Transfers between funds		(877,559	)	(643,218	)	82,662		161,605		–		–		1,374,378		122,787
Redemptions (note 3)		(3,402,694	)	(2,872,270	)	(1,899,373	)	(1,889,399	)	–		–		(202,673	)	(24,080	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(23,409	)	(26,642	)	(10,437	)	(11,920	)	(17	)	(17	)	(805	)	(140	)
Contingent deferred sales charges (note 2)		(4,970	)	(18,880	)	(5,645	)	(8,498	)	–		–		(558	)	(150	)
Adjustments to maintain reserves		(630	)	58		44		35		(11	)	(9	)	(13	)	(74	)
Net equity transactions		(3,702,591	)	(2,788,393	)	(1,435,669	)	(1,324,670	)	(28	)	(26	)	1,629,181		284,291
Net change in contract owners’ equity		(2,778,085	)	(1,908,520	)	(249,880	)	(1,009,909	)	2,021		259		1,941,021		378,450
Contract owners’ equity beginning of period		18,463,355		20,371,875		9,775,061		10,784,970		20,903		20,644		891,815		513,365
Contract owners’ equity end of period	$	15,685,270		18,463,355		9,525,181		9,775,061		22,924		20,903		2,832,836		891,815
CHANGES IN UNITS:
Beginning units		636,228		737,378		333,373		379,994		874		875		68,873		46,477
Units purchased		32,752		38,819		23,903		32,302		–		–		150,632		56,471
Units redeemed		(158,241	)	(139,969	)	(70,535	)	(78,923	)	(1	)	(1	)	(31,505	)	(34,075	)
Ending units		510,739		636,228		286,741		333,373		873		874		188,000		68,873

(Continued)

23

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	FranMutSer					FranSmMCpGr				FrVIPForSec3				FranBSInv
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	47,110		13,776		(27,665	)	(22,402	)	1,577		1,829		8,414		(7,619	)
Realized gain (loss) on investments		571,601		381,416		193,470		131,628		151,282		185,283		330,692		238,737
Change in unrealized gain (loss) on investments		169,748		(47,838	)	(183,901	)	79,027		506,979		41,095		(61,434	)	(76,434	)
Reinvested capital gains		585,067		369,251		167,436		–		–		–		269,546		132,540
Net increase (decrease) in contract owners’ equity resulting from operations		1,373,526		716,605		149,340		188,253		659,838		228,207		547,218		287,224
Equity transactions:
Purchase payments received from contract owners (note 3)		984,408		1,081,663		241,659		313,775		653,384		778,180		874,483		769,046
Transfers between funds		539,551		444,571		(296,576	)	(943,325	)	706,842		(98,963	)	135,575		561,621
Redemptions (note 3)		(1,622,527	)	(946,483	)	(190,074	)	(160,823	)	(720,554	)	(359,750	)	(443,833	)	(309,556	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(5,278	)	(4,962	)	–		–		(2,108	)	(1,617	)	–		–
Contingent deferred sales charges (note 2)		(7,797	)	(7,809	)	(1,332	)	(2,359	)	(865	)	(3,089	)	(2,927	)	(2,687	)
Adjustments to maintain reserves		(207	)	(1,068	)	(90	)	(39	)	(11	)	(81	)	(177	)	(54	)
Net equity transactions		(111,850	)	565,912		(246,413	)	(792,771	)	636,688		314,680		563,121		1,018,370
Net change in contract owners’ equity		1,261,676		1,282,517		(97,073	)	(604,518	)	1,296,526		542,887		1,110,339		1,305,594
Contract owners’ equity beginning 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
Contract owners’ equity end of period	$	9,777,596		8,515,920		2,392,681		2,489,754		4,224,492		2,927,966		4,641,285		3,530,946
CHANGES IN UNITS:
Beginning units		517,613		476,078		319,814		435,237		233,560		206,884		175,926		121,505
Units purchased		124,644		213,396		76,226		46,458		119,830		154,237		92,034		96,254
Units redeemed		(130,844	)	(171,861	)	(106,744	)	(161,881	)	(72,432	)	(127,561	)	(67,038	)	(41,833	)
Ending units		511,413		517,613		289,296		319,814		280,958		233,560		200,922		175,926

(Continued)

24

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartBond					GartBdIx				GartGvtBd				GartGrowA
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	67,516		68,468		8,064		6,785		133,273		145,634		(7,093	)	(6,345	)
Realized gain (loss) on investments		435		13,530		(3,051	)	(946	)	(95,149	)	(118,464	)	54,104		9,158
Change in unrealized gain (loss) on investments		(15,437	)	(43,131	)	1,629		(4,259	)	68,739		53,690		(29,867	)	19,431
Reinvested capital gains		–		–		–		–		–		4,002		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		52,514		38,867		6,642		1,580		106,863		84,862		17,144		22,244
Equity transactions:
Purchase payments received from contract owners (note 3)		149,087		185,496		80,725		46,924		262,686		296,585		78,957		72,171
Transfers between funds		(141,374	)	(37,141	)	(30,479	)	(23,039	)	(234,465	)	(775,735	)	(184,494	)	85,218
Redemptions (note 3)		(320,856	)	(413,462	)	(30,689	)	(11,129	)	(772,822	)	(821,785	)	(154,112	)	(48,260	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,620	)	(2,887	)	–		–		(3,998	)	(4,902	)	(574	)	(648	)
Contingent deferred sales charges (note 2)		(2,235	)	(2,505	)	(351	)	(180	)	(2,258	)	(9,473	)	(1,748	)	(537	)
Adjustments to maintain reserves		(107	)	9		(15	)	(44	)	129		153		253		253
Net equity transactions		(318,105	)	(270,490	)	19,191		12,532		(750,728	)	(1,315,157	)	(261,718	)	108,197
Net change in contract owners’ equity		(265,591	)	(231,623	)	25,833		14,112		(643,865	)	(1,230,295	)	(244,574	)	130,441
Contract owners’ equity beginning of period		2,039,001		2,270,624		268,493		254,381		4,825,019		6,055,314		671,279		540,838
Contract owners’ equity end of period	$	1,773,410		2,039,001		294,326		268,493		4,181,154		4,825,019		426,705		671,279
CHANGES IN UNITS:
Beginning units		58,803		64,183		21,251		20,255		332,211		423,678		59,143		49,930
Units purchased		4,620		7,179		6,819		4,849		51,773		60,947		23,209		28,001
Units redeemed		(16,382	)	(12,559	)	(5,286	)	(3,853	)	(102,357	)	(152,414	)	(46,432	)	(18,788	)
Ending units		47,041		58,803		22,784		21,251		281,627		332,211		35,920		59,143

(Continued)

25

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartGrowD					GVITIDAgg2				GVITIDCon2				GVITIDMod2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(12,807	)	(13,948	)	6,703		1,723		747		226		11,808		8,268
Realized gain (loss) on investments		63,619		26,841		10,019		652		(35	)	6		54,352		2,935
Change in unrealized gain (loss) on investments		(7,655	)	47,195		56,213		12,652		826		(369	)	34,326		7,847
Reinvested capital gains		–		–		5,951		4,918		353		501		10,021		13,059
Net increase (decrease) in contract owners’ equity resulting from operations		43,157		60,088		78,886		19,945		1,891		364		110,507		32,109
Equity transactions:
Purchase payments received from contract owners (note 3)		3,548		4,180		130,431		110,916		16,374		34,118		155,604		119,930
Transfers between funds		(97,099	)	(15,979	)	547,786		65,904		212		1,006		331,863		269,110
Redemptions (note 3)		(256,176	)	(187,121	)	(57,163	)	(4,829	)	(1,227	)	(4,151	)	(372,805	)	(27,267	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(1,736	)	(2,082	)	(1,044	)	(298	)	(171	)	(28	)	(1,883	)	(540	)
Contingent deferred sales charges (note 2)		(227	)	(983	)	(140	)	(2	)	–		(2	)	(3,282	)	(157	)
Adjustments to maintain reserves		89		(80	)	(14	)	(4	)	11		(9	)	4		2
Net equity transactions		(351,601	)	(202,065	)	619,856		171,687		15,199		30,934		109,501		361,078
Net change in contract owners’ equity		(308,444	)	(141,977	)	698,742		191,632		17,090		31,298		220,008		393,187
Contract owners’ equity beginning of period		1,179,396		1,321,373		281,322		89,690		31,608		310		906,866		513,679
Contract owners’ equity end of period	$	870,952		1,179,396		980,064		281,322		48,698		31,608		1,126,874		906,866
CHANGES IN UNITS:
Beginning units		39,806		49,460		23,675		8,041		2,998		30		81,006		47,710
Units purchased		55		56		56,000		16,229		1,620		3,369		44,041		37,450
Units redeemed		(17,244	)	(9,710	)	(8,174	)	(595	)	(210	)	(401	)	(33,464	)	(4,154	)
Ending units		22,617		39,806		71,501		23,675		4,408		2,998		91,583		81,006

(Continued)

26

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GVITIDModAg2					GVITIDModCon2				GVITJPBal				GartIntlndx
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	18,504		6,971		1,819		837		2,615		1,914		238		110
Realized gain (loss) on investments		28,186		10,908		(245	)	88		7,484		7,836		171		3,075
Change in unrealized gain (loss) on investments		135,545		7,833		2,851		(87	)	14,876		(6,608	)	3,603		(1,412	)
Reinvested capital gains		19,437		16,452		1,516		1,099		–		–		624		530
Net increase (decrease) in contract owners’ equity resulting from operations		201,672		42,164		5,941		1,937		24,975		3,142		4,636		2,303
Equity transactions:
Purchase payments received from contract owners (note 3)		263,571		157,417		76,483		30,314		37,331		107,936		–		–
Transfers between funds		1,026,335		315,869		11,692		50,538		(19,030	)	8,924		(256	)	(14,788	)
Redemptions (note 3)		(187,968	)	(81,136	)	(26,489	)	(7,340	)	(29,926	)	(33,701	)	(106	)	(11,373	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(2,363	)	(1,011	)	(446	)	(115	)	(295	)	(230	)	–		–
Contingent deferred sales charges (note 2)		(87	)	(1,715	)	(82	)	–		(237	)	(515	)	(2	)	(5	)
Adjustments to maintain reserves		(6	)	(6	)	9		(10	)	(23	)	(41	)	(9	)	4
Net equity transactions		1,099,482		389,418		61,167		73,387		(12,180	)	82,373		(373	)	(26,162	)
Net change in contract owners’ equity		1,301,154		431,582		67,108		75,324		12,795		85,515		4,263		(23,859	)
Contract owners’ equity beginning of period		969,300		537,718		86,397		11,073		231,136		145,621		19,359		43,218
Contract owners’ equity end of period	$	2,270,454		969,300		153,505		86,397		243,931		231,136		23,622		19,359
CHANGES IN UNITS:
Beginning units		83,390		48,890		7,929		1,048		21,649		13,825		1,811		4,530
Units purchased		114,419		46,093		9,740		7,802		4,871		12,682		–		–
Units redeemed		(25,036	)	(11,593	)	(4,505	)	(921	)	(5,902	)	(4,858	)	(30	)	(2,719	)
Ending units		172,773		83,390		13,164		7,929		20,618		21,649		1,781		1,811

(Continued)

27

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartIDAgg					GartIDCon				GartIDMod				GartIDModAgg
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(226	)	8,921		34,142		23,344		64,259		77,792		8,062		24,507
Realized gain (loss) on investments		47,101		48,873		6,052		11,040		86,590		67,984		38,568		17,487
Change in unrealized gain (loss) on investments		143,241		(6,753	)	19,677		(23,115	)	487,801		93,794		302,803		81,675
Reinvested capital gains		37,558		24,647		29,522		19,318		179,425		79,895		76,718		39,361
Net increase (decrease) in contract owners’ equity resulting from operations		227,674		75,688		89,393		30,587		818,075		319,465		426,151		163,030
Equity transactions:
Purchase payments received from contract owners (note 3)		396,418		631,840		292,728		282,396		1,359,945		2,691,425		722,456		1,424,325
Transfers between funds		50,091		(61,378	)	175,118		96,861		71,023		505,502		15,895		67,375
Redemptions (note 3)		(176,402	)	(85,414	)	(152,607	)	(149,697	)	(367,677	)	(288,531	)	(323,571	)	(230,173	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(2,241	)	(1,850	)	(1,056	)	(1,163	)	(3,781	)	(1,702	)	(5,981	)	(3,879	)
Adjustments to maintain reserves		(39	)	(63	)	(42	)	(65	)	(141	)	(141	)	(11	)	(128	)
Net equity transactions		267,827		483,135		314,141		228,332		1,059,369		2,906,553		408,788		1,257,520
Net change in contract owners’ equity		495,501		558,823		403,534		258,919		1,877,444		3,226,018		834,939		1,420,550
Contract owners’ equity beginning of period		1,304,515		745,692		1,640,306		1,381,387		7,507,153		4,281,135		2,998,826		1,578,276
Contract owners’ equity end of period	$	1,800,016		1,304,515		2,043,840		1,640,306		9,384,597		7,507,153		3,833,765		2,998,826
CHANGES IN UNITS:
Beginning units		124,879		76,169		144,727		124,360		685,861		408,308		280,453		156,228
Units purchased		43,758		67,223		44,662		43,332		139,758		315,628		69,826		159,643
Units redeemed		(19,273	)	(18,513	)	(17,549	)	(22,965	)	(46,760	)	(38,075	)	(33,004	)	(35,418	)
Ending units		149,364		124,879		171,840		144,727		778,859		685,861		317,275		280,453

(Continued)

28

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartIDModCon					GartLgCpVal				GartMdCpMkt				GartMyMkt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	29,447		25,173		(816	)	(4,491	)	962		(1,729	)	319,225		138,825
Realized gain (loss) on investments		15,127		22,493		99,840		160,908		33,062		63,330		–		–
Change in unrealized gain (loss) on investments		52,818		(20,980	)	(49,640	)	(147,854	)	(17,687	)	(13,146	)	–		–
Reinvested capital gains		59,666		30,172		397,348		88,056		85,226		41,666		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		157,058		56,858		446,732		96,619		101,563		90,121		319,225		138,825
Equity transactions:
Purchase payments received from contract owners (note 3)		495,340		861,353		346,053		295,827		326,421		193,592		2,006,408		1,673,907
Transfers between funds		167,303		33,824		716,498		507,015		300,692		30,197		2,573,289		911,261
Redemptions (note 3)		(188,877	)	(271,322	)	(451,775	)	(365,082	)	(51,070	)	(109,684	)	(3,312,847	)	(3,162,885	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,852	)	(1,683	)	–		–		(17,230	)	(16,873	)
Contingent deferred sales charges (note 2)		(1,269	)	(1,496	)	(1,388	)	(1,151	)	(1,461	)	(1,669	)	(7,557	)	(10,195	)
Adjustments to maintain reserves		(86	)	(2	)	(28	)	(50	)	(160	)	(25	)	9		136
Net equity transactions		472,411		622,357		607,508		434,876		574,422		112,411		1,242,072		(604,649	)
Net change in contract owners’ equity		629,469		679,215		1,054,240		531,495		675,985		202,532		1,561,297		(465,824	)
Contract owners’ equity beginning of period		1,906,350		1,227,135		2,032,432		1,500,937		977,790		775,258		9,165,672		9,631,496
Contract owners’ equity end of period	$	2,535,819		1,906,350		3,086,672		2,032,432		1,653,775		977,790		10,726,969		9,165,672
CHANGES IN UNITS:
Beginning units		169,351		112,334		149,960		117,301		73,263		64,225		393,056		418,674
Units purchased		61,452		85,819		97,864		122,669		49,367		24,386		370,389		303,113
Units redeemed		(20,816	)	(28,802	)	(58,373	)	(90,010	)	(8,436	)	(15,348	)	(317,309	)	(328,731	)
Ending units		209,987		169,351		189,451		149,960		114,194		73,263		446,136		393,056

(Continued)

29

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartMyMktS					GartNWFund				GartSP500Indx				GartSmCap
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	180,551		76,856		(11,939	)	(25,751	)	4,455		2,122		(55,736	)	(45,916	)
Realized gain (loss) on investments		–		–		(192,982	)	(432,566	)	306,170		202,222		476,913		202,408
Change in unrealized gain (loss) on investments		–		–		270,503		59,267		223,812		(110,651	)	585,239		(5,744	)
Reinvested capital gains		–		–		546,752		719,667		17,303		28,520		229,009		513,742
Net increase (decrease) in contract owners’ equity resulting from operations		180,551		76,856		612,334		320,617		551,740		122,213		1,235,425		664,490
Equity transactions:
Purchase payments received from contract owners (note 3)		1,393,475		3,126,334		305,112		380,386		422,445		596,911		387,548		256,343
Transfers between funds		3,133,469		789,243		(240,315	)	(309,428	)	(392,026	)	15,156		87,247		442,253
Redemptions (note 3)		(2,439,129	)	(1,939,044	)	(1,053,046	)	(752,603	)	(347,821	)	(335,365	)	(694,146	)	(624,881	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(8,742	)	(9,728	)	(1,897	)	(2,204	)	(3,906	)	(3,916	)
Contingent deferred sales charges (note 2)		(20,940	)	(9,001	)	(1,353	)	(3,810	)	(1,681	)	(4,971	)	(2,963	)	(2,319	)
Adjustments to maintain reserves		(204	)	(148	)	(138	)	14		(122	)	(56	)	(66	)	14
Net equity transactions		2,066,671		1,967,384		(998,482	)	(695,169	)	(321,102	)	269,471		(226,286	)	67,494
Net change in contract owners’ equity		2,247,222		2,044,240		(386,148	)	(374,552	)	230,638		391,684		1,009,139		731,984
Contract owners’ equity beginning 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
Contract owners’ equity end of period	$	6,997,751		4,750,529		5,148,271		5,534,419		4,275,167		4,044,529		5,654,710		4,645,571
CHANGES IN UNITS:
Beginning units		449,909		260,132		81,825		87,381		460,212		427,342		229,634		231,298
Units purchased		749,734		941,282		28,403		8,924		119,229		138,522		99,454		119,008
Units redeemed		(559,453	)	(751,505	)	(46,309	)	(14,480	)	(149,632	)	(105,652	)	(112,458	)	(120,672	)
Ending units		640,190		449,909		63,919		81,825		429,809		460,212		216,630		229,634

(Continued)

30

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	GartSmCapIx					GartValOpp				JanBal				JanIntlGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,880		(1,945	)	(4,618	)	(3,945	)	3,959		4,768		(225	)	(279	)
Realized gain (loss) on investments		23,719		20,815		(3,726	)	(12,484	)	75,367		22,041		991		1,087
Change in unrealized gain (loss) on investments		24,807		(28,794	)	12,010		(5,144	)	(53,954	)	27,828		19,861		10,847
Reinvested capital gains		109,884		30,661		38,523		42,554		87,095		28,611		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		160,290		20,737		42,189		20,981		112,467		83,248		20,627		11,655
Equity transactions:
Purchase payments received from contract owners (note 3)		319,151		119,627		66,813		39,297		61,024		131,862		–		27
Transfers between funds		249,881		(105,861	)	(94,636	)	(347,554	)	(122,612	)	(25,427	)	(316	)	(4,678	)
Redemptions (note 3)		(55,818	)	(60,734	)	(42,054	)	(23,850	)	(202,251	)	(79,439	)	(1,402	)	(8,399	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(432	)	(496	)	–		(107	)	(722	)	(1,203	)	–		(172	)
Adjustments to maintain reserves		(82	)	(35	)	(26	)	2		(30	)	(14	)	(7	)	(2	)
Net equity transactions		512,700		(47,499	)	(69,903	)	(332,212	)	(264,591	)	25,779		(1,725	)	(13,224	)
Net change in contract owners’ equity		672,990		(26,762	)	(27,714	)	(311,231	)	(152,124	)	109,027		18,902		(1,569	)
Contract owners’ equity beginning of period		785,085		811,847		321,355		632,586		1,417,997		1,308,970		48,758		50,327
Contract owners’ equity end of period	$	1,458,075		785,085		293,641		321,355		1,265,873		1,417,997		67,660		48,758
CHANGES IN UNITS:
Beginning units		61,125		65,067		21,774		45,590		129,865		127,676		4,763		6,398
Units purchased		51,660		15,171		14,725		3,656		13,346		21,018		–		300
Units redeemed		(14,958	)	(19,113	)	(19,447	)	(27,472	)	(37,023	)	(18,829	)	(137	)	(1,935	)
Ending units		97,827		61,125		17,052		21,774		106,188		129,865		4,626		4,763

(Continued)

31

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	JanWorld					JanFund				Jan20Fd				JanWrldwde
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,497		(3,266	)	(71,667	)	(102,477	)	(158,074	)	(252,517	)	(2,578	)	(15,123	)
Realized gain (loss) on investments		27,911		35,226		(729,950	)	(1,823,641	)	(2,445,846	)	(2,271,251	)	(979,822	)	(1,553,955	)
Change in unrealized gain (loss) on investments		44,943		(5,189	)	1,477,180		2,102,293		4,922,161		4,271,134		1,860,969		1,830,230
Reinvested capital gains		–		–		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		76,351		26,771		675,563		176,175		2,318,241		1,747,366		878,569		261,152
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		474,302		541,658		1,194,343		1,338,848		4,352		712
Transfers between funds		(89,940	)	(142,002	)	(404,696	)	(970,156	)	(1,061,458	)	(727,673	)	(559,426	)	(494,938	)
Redemptions (note 3)		(61,599	)	(107,611	)	(1,024,574	)	(1,401,728	)	(3,253,499	)	(3,467,457	)	(907,279	)	(1,135,585	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(12,299	)	(15,183	)	(35,369	)	(41,184	)	(9,460	)	(11,990	)
Contingent deferred sales charges (note 2)		(591	)	(543	)	(3,592	)	(8,014	)	(10,723	)	(35,808	)	(2,516	)	(6,406	)
Adjustments to maintain reserves		(23	)	(47	)	(83	)	(42	)	(48	)	33		7		(21	)
Net equity transactions		(152,153	)	(250,203	)	(970,942	)	(1,853,465	)	(3,166,754	)	(2,933,241	)	(1,474,322	)	(1,648,228	)
Net change in contract owners’ equity		(75,802	)	(223,432	)	(295,379	)	(1,677,290	)	(848,513	)	(1,185,875	)	(595,753	)	(1,387,076	)
Contract owners’ equity beginning of period		612,548		835,980		7,869,103		9,546,393		23,689,667		24,875,542		6,381,844		7,768,920
Contract owners’ equity end of period	$	536,746		612,548		7,573,724		7,869,103		22,841,154		23,689,667		5,786,091		6,381,844
CHANGES IN UNITS:
Beginning units		92,412		132,162		587,461		710,079		1,016,777		1,174,936		435,577		552,324
Units purchased		–		–		33,916		42,914		70,513		91,072		219		50
Units redeemed		(22,332	)	(39,750	)	(104,538	)	(165,532	)	(208,609	)	(249,231	)	(95,409	)	(116,797	)
Ending units		70,080		92,412		516,839		587,461		878,681		1,016,777		340,387		435,577

(Continued)

32

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	LazSmCap					MFSStratIncA				NBGen				NBGuard
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(38,192	)	(38,960	)	45,158		45,255		(34,864	)	(200,131	)	(28,629	)	(19,813	)
Realized gain (loss) on investments		(172,840	)	175,009		5,634		12,682		1,483,177		523,168		91,078		(79,032	)
Change in unrealized gain (loss) on investments		28,664		(742,467	)	1,175		(50,095	)	(1,687,537	)	1,483,301		70,884		303,494
Reinvested capital gains		588,325		667,901		–		–		1,196,371		404,316		185,657		–
Net increase (decrease) in contract owners’ equity resulting from operations		405,957		61,483		51,967		7,842		957,147		2,210,654		318,990		204,649
Equity transactions:
Purchase payments received from contract owners (note 3)		296,401		246,552		123,764		75,238		1,735,546		1,643,628		104,915		93,145
Transfers between funds		(82,811	)	(103,395	)	(103,289	)	216,818		(1,721,061	)	1,834,151		(167,191	)	127,760
Redemptions (note 3)		(673,781	)	(622,608	)	(181,075	)	(164,968	)	(2,910,328	)	(1,956,472	)	(462,028	)	(593,264	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,064	)	(2,965	)	(1,139	)	(1,205	)	(11,141	)	(10,931	)	(3,560	)	(3,989	)
Contingent deferred sales charges (note 2)		(2,198	)	(2,606	)	(607	)	(2,029	)	(10,635	)	(18,363	)	(528	)	(5,564	)
Adjustments to maintain reserves		(9	)	(48	)	(39	)	(42	)	(214	)	1,407		(4	)	(12	)
Net equity transactions		(465,462	)	(485,070	)	(162,385	)	123,812		(2,917,833	)	1,493,420		(528,396	)	(381,924	)
Net change in contract owners’ equity		(59,505	)	(423,587	)	(110,418	)	131,654		(1,960,686	)	3,704,074		(209,406	)	(177,275	)
Contract owners’ equity beginning of period		2,918,919		3,342,506		1,022,538		890,884		18,319,479		14,615,405		3,071,220		3,248,495
Contract owners’ equity end of period	$	2,859,414		2,918,919		912,120		1,022,538		16,358,793		18,319,479		2,861,814		3,071,220
CHANGES IN UNITS:
Beginning units		164,638		194,132		78,799		69,176		807,488		738,855		148,320		167,914
Units purchased		44,092		38,097		13,868		24,136		158,791		239,370		9,292		14,114
Units redeemed		(69,078	)	(67,591	)	(26,005	)	(14,513	)	(284,705	)	(170,737	)	(34,219	)	(33,708	)
Ending units		139,652		164,638		66,662		78,799		681,574		807,488		123,393		148,320

(Continued)

33

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBGuardT					NBLtdMat				NBPartI				NBPartT
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(2,530	)	(2,271	)	32,940		28,979		(50,446	)	(16,278	)	(4,950	)	(2,112	)
Realized gain (loss) on investments		36,218		18,203		(15,207	)	(17,282	)	409,687		47,078		54,318		34,981
Change in unrealized gain (loss) on investments		(20,871	)	4,987		10,386		(9,279	)	269,828		603,383		1,655		3,477
Reinvested capital gains		14,137		–		–		–		109,536		312,361		10,142		18,900
Net increase (decrease) in contract owners’ equity resulting from operations		26,954		20,919		28,119		2,418		738,605		946,544		61,165		55,246
Equity transactions:
Purchase payments received from contract owners (note 3)		1,792		2,334		43,042		69,876		492,281		430,255		7,536		6,982
Transfers between funds		(77,973	)	(1,100	)	56,648		(8,128	)	(340,530	)	1,204,086		7,967		211,428
Redemptions (note 3)		(35,900	)	(119,404	)	(175,033	)	(318,072	)	(1,369,788	)	(870,357	)	(30,926	)	(62,206	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(1,187	)	(1,337	)	(8,445	)	(8,101	)	–		–
Contingent deferred sales charges (note 2)		(21	)	(1,546	)	(377	)	(2,783	)	(3,119	)	(2,890	)	(160	)	(1,485	)
Adjustments to maintain reserves		(30	)	(10	)	160		99		35		1,665		202		7,451
Net equity transactions		(112,132	)	(119,726	)	(76,747	)	(260,345	)	(1,229,566	)	754,658		(15,381	)	162,170
Net change in contract owners’ equity		(85,178	)	(98,807	)	(48,628	)	(257,927	)	(490,961	)	1,701,202		45,784		217,416
Contract owners’ equity beginning of period		303,702		402,509		1,029,836		1,287,763		7,172,124		5,470,922		576,139		358,723
Contract owners’ equity end of period	$	218,524		303,702		981,208		1,029,836		6,681,163		7,172,124		621,923		576,139
CHANGES IN UNITS:
Beginning units		27,967		39,609		72,068		90,347		208,718		185,415		43,693		31,510
Units purchased		190		238		11,207		6,717		33,596		57,778		16,345		23,251
Units redeemed		(10,185	)	(11,880	)	(16,497	)	(24,996	)	(68,289	)	(34,475	)	(17,837	)	(11,068	)
Ending units		17,972		27,967		66,778		72,068		174,025		208,718		42,201		43,693

(Continued)

34

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	NBSocRes					OppCapApA				OppChpInc				OppGlob
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(12,407	)	(2,246	)	(25,913	)	(12,836	)	12,228		11,298		(81,560	)	(92,925	)
Realized gain (loss) on investments		27,281		2,910		170,103		195,554		(876	)	1,354		1,278,404		865,929
Change in unrealized gain (loss) on investments		115,656		16,185		20,157		(98,314	)	6,497		(9,339	)	68,617		470,761
Reinvested capital gains		15,026		15,231		–		–		–		–		701,372		436,586
Net increase (decrease) in contract owners’ equity resulting from operations		145,556		32,080		164,347		84,404		17,849		3,313		1,966,833		1,680,351
Equity transactions:
Purchase payments received from contract owners (note 3)		267,588		148,844		367,619		697,081		76,351		91,251		382		1,093
Transfers between funds		793,543		271,190		(953,665	)	(151,552	)	(118,752	)	60,885		(1,359,625	)	(879,592	)
Redemptions (note 3)		(95,409	)	(15,604	)	(248,993	)	(269,342	)	(20,736	)	(21,942	)	(2,394,796	)	(2,113,678	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(184	)	(65	)	–		–		–		–		(11,883	)	(13,836	)
Contingent deferred sales charges (note 2)		(1,216	)	(42	)	(2,792	)	(5,847	)	(343	)	(535	)	(5,573	)	(11,761	)
Adjustments to maintain reserves		5		(40	)	(65	)	(73	)	36		77		(183	)	(223	)
Net equity transactions		964,327		404,283		(837,896	)	270,267		(63,444	)	129,736		(3,771,678	)	(3,017,997	)
Net change in contract owners’ equity		1,109,883		436,363		(673,549	)	354,671		(45,595	)	133,049		(1,804,845	)	(1,337,646	)
Contract owners’ equity beginning of period		524,937		88,574		2,888,178		2,533,507		284,436		151,387		14,749,212		16,086,858
Contract owners’ equity end of period	$	1,634,820		524,937		2,214,629		2,888,178		238,841		284,436		12,944,367		14,749,212
CHANGES IN UNITS:
Beginning units		43,761		7,845		360,986		327,920		23,082		12,480		526,968		625,115
Units purchased		101,129		38,100		97,939		269,493		7,292		13,272		126		225
Units redeemed		(24,428	)	(2,184	)	(198,211	)	(236,427	)	(12,377	)	(2,670	)	(133,724	)	(98,372	)
Ending units		120,462		43,761		260,714		360,986		17,997		23,082		393,370		526,968

(Continued)

35

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	OppGlSec4					OppStratInc				PhxBalFd				PimTotRet
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(29,828	)	(18,421	)	22,259		32,296		9,369		7,729		119,097		82,213
Realized gain (loss) on investments		273,987		110,734		1,369		4,985		18,994		(496	)	(38,377	)	(13,984	)
Change in unrealized gain (loss) on investments		454,627		532,390		14,501		(23,809	)	(1,559	)	(30,690	)	(10,130	)	(43,908	)
Reinvested capital gains		351,939		–		–		–		82,287		25,687		13,814		32,815
Net increase (decrease) in contract owners’ equity resulting from operations		1,050,725		624,703		38,129		13,472		109,091		2,230		84,404		57,136
Equity transactions:
Purchase payments received from contract owners (note 3)		1,631,019		1,551,667		123,186		184,716		71,445		71,452		287,823		801,723
Transfers between funds		988,017		619,797		(89,950	)	145,783		(73,227	)	86,434		(185,455	)	386,500
Redemptions (note 3)		(1,064,874	)	(548,821	)	(92,916	)	(103,205	)	(295,755	)	(158,041	)	(659,407	)	(900,470	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(4,478	)	(3,200	)	–		–		(1,520	)	(1,649	)	–		–
Contingent deferred sales charges (note 2)		(4,851	)	(7,295	)	(687	)	(1,334	)	(1,431	)	(75	)	(3,752	)	(6,021	)
Adjustments to maintain reserves		(139	)	(74	)	(19	)	56		(19	)	(10	)	77		(580	)
Net equity transactions		1,544,694		1,612,074		(60,386	)	226,016		(300,507	)	(1,889	)	(560,714	)	281,152
Net change in contract owners’ equity		2,595,419		2,236,777		(22,257	)	239,488		(191,416	)	341		(476,310	)	338,288
Contract owners’ equity beginning of period		5,682,456		3,445,679		617,703		378,215		1,129,059		1,128,718		4,186,754		3,848,466
Contract owners’ equity end of period	$	8,277,875		5,682,456		595,446		617,703		937,643		1,129,059		3,710,444		4,186,754
CHANGES IN UNITS:
Beginning units		436,757		298,367		43,760		27,596		57,925		58,000		316,198		294,143
Units purchased		246,257		233,957		11,842		24,954		4,794		9,229		34,803		129,431
Units redeemed		(134,463	)	(95,567	)	(15,949	)	(8,790	)	(19,488	)	(9,304	)	(76,906	)	(107,376	)
Ending units		548,551		436,757		39,653		43,760		43,231		57,925		274,095		316,198

(Continued)

36

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	PIntEq					PVoyager				StrMidCap			TemForFd
Investment activity:	2006			2005		2006		2005		2006	2005		2006		2005
Net investment income (loss)	$	45		29		(1,164	)	(410	)	–	(1,195	)	43,518		20,466
Realized gain (loss) on investments		19		6		16,959		1,147		–	53,685		422,665		268,841
Change in unrealized gain (loss) on investments		826		386		(11,419	)	8,740		–	(55,480	)	8,670		(79,944	)
Reinvested capital gains		235		–		–		–		–	–		423,162		292,099
Net increase (decrease) in contract owners’ equity resulting from operations		1,125		421		4,376		9,477		–	(2,990	)	898,015		501,462
Equity transactions:
Purchase payments received from contract owners (note 3)		–		32		13,012		49,926		–	67,769		166		–
Transfers between funds		–		(32	)	(93,086	)	(1,712	)	–	(371,241	)	(422,824	)	(325,084	)
Redemptions (note 3)		–		–		(25,544	)	(663	)	–	(13,156	)	(1,143,602	)	(963,521	)
Annuity benefits		–		–		–		–		–	–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–	–		(4,458	)	(5,067	)
Contingent deferred sales charges (note 2)		–		–		–		(22	)	–	(604	)	(2,897	)	(6,501	)
Adjustments to maintain reserves		(1	)	(1	)	(28	)	20		–	(8	)	35		(110	)
Net equity transactions		(1	)	(1	)	(105,646	)	47,549		–	(317,240	)	(1,573,580	)	(1,300,283	)
Net change in contract owners’ equity		1,124		420		(101,270	)	57,026		–	(320,230	)	(675,565	)	(798,821	)
Contract owners’ equity beginning of period		4,258		3,838		163,516		106,490		–	320,230		5,675,305		6,474,126
Contract owners’ equity end of period	$	5,382		4,258		62,246		163,516		–	–		4,999,740		5,675,305
CHANGES IN UNITS:
Beginning units		265		265		12,850		8,723		–	63,387		291,056		363,832
Units purchased		–		148		2,282		4,873		–	94,371		244		–
Units redeemed		–		(148	)	(10,410	)	(746	)	–	(157,758	)	(69,298	)	(72,776	)
Ending units		265		265		4,722		12,850		–	–		222,002		291,056

(Continued)

37

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	VKGrInc					VKMidCpGro				VKRealEstSec				WRAdSmCap
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	13,724		4,081		(6,381	)	(2,681	)	3,928		4,524		(3,170	)	(2,443	)
Realized gain (loss) on investments		62,806		44,933		57,343		17,258		167,338		36,070		8,952		9,105
Change in unrealized gain (loss) on investments		144,504		(16,196	)	(33,195	)	15,893		393,203		64,125		(33,746	)	(2,594	)
Reinvested capital gains		183,952		137,193		37,710		12,739		200,071		82,875		40,101		22,148
Net increase (decrease) in contract owners’ equity resulting from operations		404,986		170,011		55,477		43,209		764,540		187,594		12,137		26,216
Equity transactions:
Purchase payments received from contract owners (note 3)		589,069		393,643		214,074		51,399		583,023		411,264		60,908		111,984
Transfers between funds		323,745		355,900		108,899		297,347		698,561		229,325		(16,584	)	(17,403	)
Redemptions (note 3)		(177,113	)	(206,160	)	(74,431	)	(62,938	)	(184,564	)	(66,550	)	(11,226	)	(30,440	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		–		–		–		–		–		–		–		–
Contingent deferred sales charges (note 2)		(2,143	)	(3,745	)	(516	)	(1,492	)	(1,520	)	(564	)	(417	)	(1,496	)
Adjustments to maintain reserves		(11	)	(35	)	(88	)	(50	)	(120	)	(25	)	(50	)	(13	)
Net equity transactions		733,547		539,603		247,938		284,266		1,095,380		573,450		32,631		62,632
Net change in contract owners’ equity		1,138,533		709,614		303,415		327,475		1,859,920		761,044		44,768		88,848
Contract owners’ equity beginning of period		2,209,824		1,500,210		464,288		136,813		1,422,868		661,824		243,451		154,603
Contract owners’ equity end of period	$	3,348,357		2,209,824		767,703		464,288		3,282,788		1,422,868		288,219		243,451
CHANGES IN UNITS:
Beginning units		145,322		107,166		27,114		9,302		71,646		38,415		16,011		11,284
Units purchased		72,978		57,187		41,527		24,241		82,937		47,999		5,270		8,750
Units redeemed		(26,409	)	(19,031	)	(26,924	)	(6,429	)	(33,040	)	(14,768	)	(3,231	)	(4,023	)
Ending units		191,891		145,322		41,717		27,114		121,543		71,646		18,050		16,011

(Continued)

38

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	WFComStk					WFGrInc				WFGrowth				WFLgCpGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(56,088	)	(52,885	)	(1,574	)	(1,810	)	(3,537	)	(479	)	(26,088	)	(25,797	)
Realized gain (loss) on investments		187,359		166,407		45,519		7,888		8,533		3,096		(143,905	)	(206,850	)
Change in unrealized gain (loss) on investments		(441,643	)	(333,946	)	(17,540	)	(14,240	)	3,861		4,674		201,292		352,545
Reinvested capital gains		856,909		615,613		–		–		–		–		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		546,537		395,189		26,405		(8,162	)	8,857		7,291		31,299		119,898
Equity transactions:
Purchase payments received from contract owners (note 3)		230,342		268,719		2,376		6,556		142,874		150,516		223,946		218,083
Transfers between funds		(49,852	)	(146,228	)	(2,443	)	6,894		104,967		32,510		(52,710	)	9,275
Redemptions (note 3)		(700,353	)	(629,629	)	(105,553	)	(10,594	)	(36,772	)	(26,026	)	(349,363	)	(292,388	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(3,056	)	(3,237	)	–		–		–		–		(3,282	)	(3,640	)
Contingent deferred sales charges (note 2)		(3,785	)	(6,924	)	(2,842	)	(228	)	(1,048	)	(1,303	)	(643	)	(3,076	)
Adjustments to maintain reserves		2,986		2,690		(32	)	(6	)	(15	)	(13	)	(21	)	(21	)
Net equity transactions		(523,718	)	(514,609	)	(108,494	)	2,622		210,006		155,684		(182,073	)	(71,767	)
Net change in contract owners’ equity		22,819		(119,420	)	(82,089	)	(5,540	)	218,863		162,975		(150,774	)	48,131
Contract owners’ equity beginning of period		4,275,989		4,395,409		251,415		256,955		181,762		18,787		2,061,588		2,013,457
Contract owners’ equity end of period	$	4,298,808		4,275,989		169,326		251,415		400,625		181,762		1,910,814		2,061,588
CHANGES IN UNITS:
Beginning units		279,865		319,273		36,681		36,418		15,301		1,702		86,404		89,847
Units purchased		31,460		37,553		44,505		3,342		29,679		17,399		14,204		16,452
Units redeemed		(64,334	)	(76,961	)	(59,399	)	(3,079	)	(13,291	)	(3,800	)	(22,495	)	(19,895	)
Ending units		246,991		279,865		21,787		36,681		31,689		15,301		78,113		86,404

(Continued)

39

NATIONWIDE VARIABLE ACCOUNT

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005

	WFMidCpGr
Investment activity:	2006			2005
Net investment income (loss)	$	(5,495	)	(4,980	)
Realized gain (loss) on investments		30,472		44,621
Change in unrealized gain (loss) on investments		(37,995	)	12,675
Reinvested capital gains		37,411		32,725
Net increase (decrease) in contract owners’ equity resulting from operations		24,393		85,041
Equity transactions:
Purchase payments received from contract owners (note 3)		80,358		75,816
Transfers between funds		(154,403	)	287,050
Redemptions (note 3)		(45,569	)	(50,693	)
Annuity benefits		–		–
Annual contract maintenance charges (note 2)		–		–
Contingent deferred sales charges (note 2)		(652	)	(198	)
Adjustments to maintain reserves		(92	)	53
Net equity transactions		(120,358	)	312,028
Net change in contract owners’ equity		(95,965	)	397,069
Contract owners’ equity beginning of period		397,069		–
Contract owners’ equity end of period	$	301,104		397,069
CHANGES IN UNITS:
Beginning units		35,742		–
Units purchased		34,463		86,853
Units redeemed		(46,096	)	(51,111	)
Ending units		24,109		35,742

See accompanying notes to financial statements.

40

NATIONWIDE VARIABLE ACCOUNT

NOTES TO FINANCIAL STATEMENTS

December 31, 2006 and 2005

(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)

AIM Small Cap Growth Fund – Investor Class (AIMSmCpGr)

AIM Small Company Growth Fund – Investor Class (AIMSmCoGr)*

AIM Total Return Fund – Investor Class (AIMTotRet)*

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)

Portfolio of the American Century Variable Portfolios Inc.;

    American Century Variable Portfolios Inc. – 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 Inc. – Class F Shares (FedEqInc)

Federated High Yield Trust (FedHiYld)

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

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

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

(Continued)

41

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

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^® Variable Insurance Products Fund – High Income Portfolio – Initial Class (FidVIPHI)

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R)

Portfolio of the Franklin Mutual Series Fund Inc.;

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

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

Portfolio of the Franklin Templeton Variable Insurance Products Trust;

Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3

    (FrVIPForSec3)

Portfolio of the Franklin Value Investors Trust;

Franklin Value Investors Trust – 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)

Portfolios of the Gartmore Variable Insurance Trust (GVIT);

Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2)

Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2)

Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2)

Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2)

Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2)

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

Gartmore International Index Fund – Class A (GartIntlndx)

Gartmore Investor Destinations Aggressive Fund – Service Class (GartIDAgg)

Gartmore Investor Destinations Conservative Fund – Service Class (GartIDCon)

Gartmore Investor Destinations Moderate Fund – Service Class (GartIDMod)

Gartmore Investor Destinations Moderately Aggressive Fund – Service Class (GartIDModAgg)

Gartmore Investor Destinations Moderately Conservative Fund – Service Class (GartIDModCon)

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)

(Continued)

42

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Gartmore Small Cap Fund – Class A (GartSmCap)

Gartmore Small Cap Index Fund – Class A (GartSmCapIx)

Gartmore Value Opportunities Fund – Class A (GartValOpp)

Portfolios of the Janus Adviser Series;

Janus Adviser Series – Balanced Fund – Class S (JanBal)

Janus Adviser Series – International Growth Fund – Class S (JanIntlGr)

Janus Adviser Series – Worldwide Fund – Class S (JanWorld)

Janus Equity Funds – Janus Fund (JanFund)

Janus Equity Funds – Janus Twenty Fund (Jan20Fd)

Janus Equity Funds – Janus Worldwide Fund (JanWrldwde)

Lazard Small Cap Portfolio Open Shares (LazSmCap)

MFS^® Global Governments Fund – Class A (MFSGlobGov)*

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

Nationwide Large Cap Growth Fund – Class A (NWLgCapGr)*

Neuberger Berman Genesis Fund – Trust Class (NBGen)

Neuberger Berman Guardian Fund – Investor Class (NBGuard)

Neuberger Berman Guardian Fund – Trust Class (NBGuardT)

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

Neuberger Berman Partners Fund – Investor Class (NBPartI)

Neuberger Berman Partners Fund – Trust Class (NBPartT)

Neuberger Berman Socially Responsive Fund – Trust Class (NBSocRes)

NMF Prestige Balanced Fund – Class A (NWPrBal)*

NMF Prestige International Fund – Class A (NWPrInt)*

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 A (OppStratInc)

Phoenix Balanced Fund – Class A (PhxBalFd)

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 Mid Cap Growth Fund – Class A (VKMidCpGro)

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

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

Portfolios of the Wells Fargo Advantage Funds^SM;

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

Wells Fargo Advantage Funds^SM – Growth and Income Fund – Investor Class (WFGrInc)

Wells Fargo Advantage Funds^SM – Growth Fund – Investor Class (WFGrowth)

Wells Fargo Advantage Funds^SM – Large Cap Growth Fund – Investor Class (WFLgCpGr)

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

*At December 31, 2006, contract owners were not invested in this fund.

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

(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, 2006 of such funds, which value their investment securities at fair value. The cost of investments sold is determined on a First in – First out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividends (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.

(g) New Accounting Pronouncement

In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standard (SFAS) 157. SFAS 157 also provides guidance regarding the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurements on earnings. SFAS 157 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances. SFAS 157 is effective for fiscal years beginning after November 15, 2007, with early adoption permitted. SFAS 157 is not expected to have a material impact on the Accounts’ financial position or results of their operations upon adoption.

(Continued)

44

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

(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 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)

45

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)
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.	–		0.15	%
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)

46

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, 2006.

	Total		AIMBBal	AIMDynam	AIMSmCpGr	AIMSmCoGr	ACGroI	ACIncGroA	ACIncGroI
0.95%	$	388,694	827	5,879	2,537	637	1,011	8,409	–
1.00%		18,195	–	96	17	8	–	250	–
1.05%		7,743	2	475	110	44	427	791	–
1.10%		125,935	87	5,506	135	73	683	2,490	–
1.15%		33,571	7	362	111	42	341	324	–
1.20%		316,740	867	4,588	1,344	792	3,546	7,551	–
1.25%		59,611	118	1,816	266	89	323	2,363	–
1.30%		3,095,200	–	56,981	11	5	93,075	97	86,639
1.35%		48,540	26	1,013	70	30	727	718	–
1.40%		100,016	772	812	58	26	475	2,650	–
1.45%		124,577	483	2,630	280	115	2,656	2,498	–
1.50%		20,079	57	308	197	75	185	419	–
1.55%		9,119	29	108	26	10	–	193	–
1.60%		4,357	–	8	9	1	–	8	–
1.65%		7,157	–	16	–	–	–	666	–
1.70%		3,292	–	18	–	–	–	–	–
1.75%		457	–	–	–	–	–	29	–
1.80%		325	–	–	–	–	–	–	–
1.85%		217	–	–	–	–	–	–	–
1.90%		972	–	–	–	–	–	66	–
2.05%		20	6	–	–	–	–	–	–
2.10%		15	–	–	–	–	–	–	–
2.25%		198	–	–	–	–	–	–	–
Totals	$	4,365,030	3,281	80,616	5,171	1,947	103,449	29,522	86,639
	ACIntlGrA		ACIntlGrI	ACSTGvtI	ACUltraI	ACVPInt4	CSGIFixInc	CSMidCpGr	DeDelFund
0.95%	$	1,459	–	6,064	6,654	1,031	–	–	–
1.00%		–	–	1,113	40	–	–	–	–
1.05%		–	–	–	124	39	–	–	–
1.10%		236	–	204	2,869	2,114	–	–	–
1.15%		227	–	–	222	176	–	–	–
1.20%		1,044	–	3,337	10,727	1,662	–	–	–
1.25%		123	–	124	851	754	–	–	–
1.30%		–	21,330	20,384	148,059	11,827	11,834	45,415	5,163
1.35%		47	–	184	1,635	159	–	–	–
1.40%		65	–	556	502	88	–	–	–
1.45%		227	–	1,699	2,168	313	–	–	–
1.50%		92	–	48	236	44	–	–	–
1.55%		–	–	–	27	–	–	–	–
1.60%		–	–	–	7	168	–	–	–
1.65%		–	–	119	155	3	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	15	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	20	–	–	–	–
1.90%		–	–	12	–	40	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	20	–	–	–	–
Totals	$	3,520	21,330	33,859	174,316	18,418	11,834	45,415	5,163
	DryABonds		DryApp	DryELead	DryBalOpp	Dry3dCen	Dry500Ix	EvInc	FedEqInc
0.95%	$	–	7,594	89	1,333	237	–	–	243
1.00%		–	236	–	1,270	–	–	–	–
1.05%		–	–	–	533	–	–	–	–
1.10%		–	1,345	–	579	8	–	–	52
1.15%		–	281	–	–	148	–	–	–
1.20%		–	9,562	351	2,392	884	–	–	944
1.25%		–	1,227	58	290	227	–	–	91
1.30%		32,422	35,397	–	–	10,105	232,306	13,629	–

(Continued)

47

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	DryABonds		DryApp	DryELead	DryBalOpp	Dry3dCen	Dry500Ix	EvInc	FedEqInc
1.35%		–	2,134	–	229	15	–	–	12
1.40%		–	462	–	16,176	10	–	–	–
1.45%		–	1,099	–	1,769	274	–	–	80
1.50%		–	764	–	62	8	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		–	47	–	266	–	–	–	–
1.65%		–	78	–	–	125	–	–	–
1.70%		–	–	–	–	5	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	20	–	–	–
1.90%		–	15	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	32,422	60,241	498	24,899	12,066	232,306	13,629	1,422
	FedHiYld		FedIntCorpBd	FedBdFd	FidABalA	FidABalT	FidAEGroA	FidAEqIncA	FidAEqIncT
0.95%	$	1,757	3,135	908	1,586	–	4,488	16,154	–
1.00%		71	–	–	–	–	–	164	–
1.05%		8	–	211	82	–	–	384	–
1.10%		536	1,801	629	1,819	–	225	4,150	–
1.15%		389	270	–	–	–	22	1,379	–
1.20%		3,227	1,068	1,015	646	–	2,092	10,197	–
1.25%		372	162	364	1,063	–	606	1,990	–
1.30%		19,210	–	25,233	–	15,917	–	181	57,071
1.35%		253	631	45	577	–	183	3,379	–
1.40%		1,247	–	217	43	–	471	2,270	–
1.45%		1,219	521	592	523	–	1,169	4,570	–
1.50%		144	33	–	199	–	207	964	–
1.55%		–	–	–	–	–	10	242	–
1.60%		42	–	–	–	–	12	100	–
1.65%		9	303	–	–	–	227	673	–
1.70%		20	–	–	–	–	–	–	–
1.75%		13	15	–	–	–	–	52	–
1.80%		–	–	–	–	–	–	27	–
1.85%		–	–	–	–	–	–	45	–
1.90%		26	2	11	–	–	–	68	–
2.05%		–	–	13	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	28,543	7,941	29,238	6,538	15,917	9,712	46,989	57,071
	FidAGrOppA		FidAGrOppT	FidAHiIncT	FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln
0.95%	$	307	–	4,630	225	–	–	–	–
1.00%		–	–	233	–	–	–	–	–
1.05%		–	–	23	–	–	–	–	–
1.10%		883	–	68	17	–	–	–	–
1.15%		42	–	183	–	–	–	–	–
1.20%		4,118	–	1,185	216	–	–	–	–
1.25%		166	–	246	665	–	–	–	–
1.30%		53	47,293	21,932	–	37,365	6,041	137,098	222,452
1.35%		146	–	58	19	–	–	–	–
1.40%		522	–	16	–	–	–	–	–
1.45%		982	–	346	56	–	–	–	–
1.50%		179	–	94	–	–	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		–	–	–	–	–	–	–	–
1.65%		–	–	–	–	–	–	–	–
1.70%		–	–	17	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		24	–	4	27	–	–	–	–

(Continued)

48

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	FidAGrOppA		FidAGrOppT	FidAHiIncT	FidAOvA	FidAsMgr	FidCapInc	FidEqInc	FidMgln
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	7,422	47,293	29,035	1,225	37,365	6,041	137,098	222,452
	FidPurtn		FidVIPHI	FidVIPOvS2R	FranMutSer	FranSmMCpGr	FrVIPForSec3	FranBSInv	GartBond
0.95%	$	–	–	2,060	15,584	13,206	3,047	9,773	2,004
1.00%		–	–	–	692	444	73	729	67
1.05%		–	–	–	100	603	51	30	183
1.10%		–	–	2,525	2,718	935	597	4,694	7
1.15%		–	–	96	1,364	333	578	1,334	–
1.20%		–	–	2,245	9,570	6,229	4,928	13,474	339
1.25%		–	–	780	2,831	1,692	525	3,196	250
1.30%		123,953	281	15,601	64,517	81	31,860	465	19,609
1.35%		–	–	175	2,091	566	332	2,884	16
1.40%		–	–	65	1,887	357	960	2,901	–
1.45%		–	–	598	4,633	2,390	1,457	6,565	778
1.50%		–	–	48	895	531	425	377	–
1.55%		–	–	–	108	37	–	160	–
1.60%		–	–	61	211	24	105	4	–
1.65%		–	–	1	710	201	47	583	–
1.70%		–	–	–	–	6	–	–	2
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	27	27	–	–	–
1.85%		–	–	–	–	–	–	22	–
1.90%		–	–	–	83	3	–	–	15
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	123,953	281	24,255	108,021	27,665	44,985	47,191	23,270
	GartBdIx		GartGvtBd	GartGrowA	GartGrowD	GVITIDAgg2	GVITIDCon2	GVITIDMod2	GVITIDModAg2
0.95%	$	481	10,910	913	561	–	–	–	–
1.00%		–	1,843	–	–	–	–	–	–
1.05%		–	42	–	–	–	–	–	–
1.10%		200	2,184	112	9	–	–	–	–
1.15%		–	179	–	–	–	–	–	–
1.20%		1,095	3,413	870	323	–	–	–	–
1.25%		112	98	101	–	–	–	–	–
1.30%		51	30,206	–	11,838	6,436	494	14,751	19,613
1.35%		227	757	176	12	–	–	–	–
1.40%		8	2,503	3,754	–	–	–	–	–
1.45%		987	1,172	1,167	64	–	–	–	–
1.50%		23	31	–	–	–	–	–	–
1.55%		–	–	–	–	–	–	–	–
1.60%		41	15	–	–	–	–	–	–
1.65%		39	–	–	–	–	–	–	–
1.70%		–	40	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	41	–	–	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	3,264	53,434	7,093	12,807	6,436	494	14,751	19,613
	GVITIDModCon2		GVITJPBal	GartIntlndx	GartIDAgg	GartIDCon	GartIDMod	GartIDModAgg	GartIDModCon
0.95%	$	–	410	–	2,659	9,825	37,287	6,323	8,974
1.00%		–	–	–	1,519	582	997	439	220
1.05%		–	–	–	–	–	–	–	–
1.10%		–	–	28	2,782	37	9,183	5,678	4,697
1.15%		–	–	–	839	216	6,796	3,040	613
1.20%		–	1,150	159	5,873	3,099	15,058	10,878	2,706

(Continued)

49

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	GVITIDModCon2		GVITJPBal	GartIntlndx	GartIDAgg	GartIDCon	GartIDMod	GartIDModAgg	GartIDModCon
1.25%		–	25	1	146	98	2,711	765	2,032
1.30%		1,336	881	–	26	164	80	406	27
1.35%		–	30	1	1,040	1,394	1,831	2,174	1,205
1.40%		–	–	–	524	–	2,914	1,177	1,913
1.45%		–	326	68	2,139	4,847	9,144	7,356	2,500
1.50%		–	1	–	238	46	2,347	2,343	260
1.55%		–	–	–	–	216	1,568	232	–
1.60%		–	–	–	103	–	328	252	9
1.65%		–	–	1	53	–	620	130	71
1.70%		–	–	–	–	–	3,116	–	–
1.75%		–	–	–	–	–	147	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	–	–	–	–	14	14	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	1,336	2,823	258	17,941	20,524	94,141	41,207	25,227
	GartLgCpVal		GartMdCpMkt	GartMyMkt	GartMyMktS	GartNWFund	GartSP500Indx	GartSmCap	GartSmCapIx
0.95%	$	2,296	5,895	–	11,771	676	5,543	6,787	4,961
1.00%		–	190	–	429	34	466	217	84
1.05%		2	–	–	299	–	277	28	–
1.10%		1,804	1,469	–	15,793	757	4,624	455	707
1.15%		166	436	–	3,577	–	58	783	327
1.20%		2,733	3,759	–	21,550	1,156	13,045	3,209	3,670
1.25%		1,235	421	–	1,479	367	2,171	470	1,336
1.30%		19,694	36	131,153	264	65,714	16,652	51,469	53
1.35%		281	650	–	2,258	69	1,193	185	756
1.40%		16	331	–	532	99	76	458	205
1.45%		938	1,614	–	5,414	610	5,142	1,368	967
1.50%		134	468	–	1,143	5	1,574	11	358
1.55%		–	–	–	–	–	58	–	–
1.60%		11	339	–	62	–	57	209	62
1.65%		131	112	–	70	13	27	72	51
1.70%		–	–	–	33	–	–	–	–
1.75%		–	23	–	88	–	19	–	–
1.80%		–	–	–	–	–	115	–	–
1.85%		–	–	–	–	–	66	–	–
1.90%		–	1	–	87	–	–	–	–
2.05%		–	–	–	–	–	1	–	–
2.10%		–	14	–	1	–	–	–	–
2.25%		–	–	–	3	–	79	–	–
Totals	$	29,441	15,758	131,153	64,853	69,500	51,243	65,721	13,537
	GartValOpp		JanBal	JanIntlGr	JanWorld	JanFund	Jan20Fd	JanWrldwde	LazSmCap
0.95%	$	2,226	4,698	–	1,135	4,573	3,881	30	891
1.00%		97	91	–	45	70	25	49	–
1.05%		–	4	–	–	346	335	10	–
1.10%		168	1,322	–	461	1,466	2,326	37	24
1.15%		–	81	–	–	158	1,029	–	–
1.20%		442	4,020	409	2,329	2,410	5,629	135	752
1.25%		667	800	134	586	1,713	1,968	899	650
1.30%		–	62	79	–	84,359	274,113	74,401	35,136
1.35%		173	759	4	317	518	335	–	174
1.40%		1	601	–	80	67	659	–	7
1.45%		424	1,766	69	1,369	1,129	1,133	58	171
1.50%		46	423	–	9	288	162	39	54
1.55%		–	–	–	4	34	39	–	–
1.60%		374	203	–	–	–	30	–	247
1.65%		–	219	–	57	27	47	–	–
1.70%		–	–	–	–	11	24	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–

(Continued)

50

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued	GartValOpp		JanBal	JanIntlGr	JanWorld	JanFund	Jan20Fd	JanWrldwde	LazSmCap
1.85%		–	–	–	–	–	–	–	–
1.90%		–	–	11	8	14	92	–	86
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	4,618	15,049	706	6,400	97,183	291,827	75,658	38,192
	MFSStratIncA		NBGen	NBGuard	NBGuardT	NBLtdMat	NBPartI	NBPartT	NBSocRes
0.95%	$	–	25,011	–	358	–	–	1,815	6,510
1.00%		–	970	–	51	–	–	412	118
1.05%		–	188	–	–	–	–	191	–
1.10%		–	8,117	–	376	–	–	117	765
1.15%		–	1,724	–	–	–	–	320	68
1.20%		–	22,054	–	1,091	–	–	1,471	1,862
1.25%		–	3,470	–	433	–	–	661	45
1.30%		12,899	149,130	38,488	–	13,385	91,848	–	2,079
1.35%		–	3,977	–	176	–	–	90	352
1.40%		–	2,607	–	7	–	–	–	1,082
1.45%		–	4,542	–	549	–	–	183	575
1.50%		–	472	–	–	–	–	24	–
1.55%		–	742	–	–	–	–	2,333	–
1.60%		–	143	–	–	–	–	–	–
1.65%		–	–	–	–	–	–	–	4
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	–	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	6	–	–	–	–	10	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	12,899	223,153	38,488	3,041	13,385	91,848	7,627	13,460
	OppCapApA		OppChpInc	OppGlob	OppGlSec4	OppStratInc	PhxBalFd	PimTotRet	PIntEq
0.95%	$	10,883	786	12,922	11,346	1,745	–	13,998	–
1.00%		344	–	574	588	–	–	267	–
1.05%		64	–	560	722	72	–	–	–
1.10%		1,349	–	3,207	5,379	419	–	4,408	–
1.15%		84	–	1,171	989	327	–	1,326	–
1.20%		7,672	947	8,573	10,782	1,860	–	10,978	–
1.25%		547	150	2,354	1,912	168	–	836	–
1.30%		46	155	137,349	48,937	–	13,783	770	–
1.35%		793	82	723	1,274	170	–	1,296	–
1.40%		902	–	1,352	277	517	–	2,093	–
1.45%		2,268	360	1,398	3,809	1,429	–	4,141	66
1.50%		575	–	551	360	–	–	492	1
1.55%		–	–	93	–	–	–	2,839	–
1.60%		67	–	11	134	17	–	201	–
1.65%		294	–	23	80	–	–	790	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	26	–	–	–	–	–
1.80%		25	–	–	–	–	–	104	–
1.85%		–	–	–	–	–	–	–	–
1.90%		–	–	59	44	–	–	–	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	19	–	–	77	–
Totals	$	25,913	2,480	170,946	86,652	6,724	13,783	44,616	67

(Continued)

51

NATIONWIDE VARIABLE ACCOUNT (NOTES TO FINANCIAL STATEMENTS, Continued)

	PVoyager		TemForFd	VKGrInc	VKMidCpGro	VKRealEstSec	WRAdSmCap	WFComStk	WFGrInc
0.95%	$	156	9,541	14,672	1,658	8,931	1,058	6,993	487
1.00%		–	40	315	–	1,015	–	601	–
1.05%		–	52	72	62	30	–	167	–
1.10%		19	1,317	2,567	344	1,765	420	1,004	–
1.15%		84	–	344	52	512	8	–	–
1.20%		719	1,801	5,724	2,393	8,763	951	4,683	1,240
1.25%		–	116	605	434	1,104	131	1,016	30
1.30%		–	49,414	75	177	175	–	16	–
1.35%		12	355	2,343	78	1,262	39	456	24
1.40%		–	1,398	792	62	774	–	38,438	11
1.45%		101	961	2,158	1,008	2,215	471	2,380	181
1.50%		73	61	157	100	223	53	282	2
1.55%		–	–	–	11	–	–	–	–
1.60%		–	–	65	–	121	39	4	140
1.65%		–	88	105	2	115	–	–	–
1.70%		–	–	–	–	–	–	–	–
1.75%		–	–	30	–	–	–	–	–
1.80%		–	–	–	–	–	–	–	–
1.85%		–	–	–	–	–	–	–	44
1.90%		–	–	8	–	33	–	48	–
2.05%		–	–	–	–	–	–	–	–
2.10%		–	–	–	–	–	–	–	–
2.25%		–	–	–	–	–	–	–	–
Totals	$	1,164	65,144	30,032	6,381	27,038	3,170	56,088	2,159
	WFGrowth		WFLgCpGr	WFMidCpGr
0.95%	$	558	–	2,692
1.00%		–	–	–
1.05%		–	–	–
1.10%		–	–	54
1.15%		–	–	33
1.20%		2,104	–	1,060
1.25%		474	–	512
1.30%		–	26,088	–
1.35%		12	–	153
1.40%		–	–	171
1.45%		389	–	761
1.50%		–	–	59
1.55%		–	–	–
1.60%		–	–	–
1.65%		–	–	–
1.70%		–	–	–
1.75%		–	–	–
1.80%		–	–	–
1.85%		–	–	–
1.90%		–	–	–
2.05%		–	–	–
2.10%		–	–	–
2.25%		–	–	–
Totals	$	3,537	26,088	5,495

(Continued)

52

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, 2006 and 2005, total transfers to the Account from the fixed account were $1,793,231 and $462,300, respectively, and total transfers from the Account to the fixed account were $1,623,070 and $761,846, 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 $100,013 and $72,470 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2006 and 2005, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death, when applicable.

(Continued)

53

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, 2006. 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
2006	0.95% to 2.05%	20,074	$11.27 to  11.09	$	225,370	2.21%	9.62% to    8.40%
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
2006	0.95% to 1.65%	618,013	7.28 to    6.94		6,513,896	0.00%	15.43% to  14.61%
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%
AIM Small Cap Growth Fund – Investor Class
2006	0.95% to 1.60%	46,426	10.22 to  10.18		474,066	0.00%	2.24% to    1.75%	(a) (b)
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  34.70		1,346,521	0.00%	-32.52% to -32.04%
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%
American Century Growth Fund – Investor Class
2006	0.95% to 1.50%	221,404	7.03 to    6.77		8,016,547	0.07%	6.92% to    6.33%
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%
American Century Income & Growth Fund – Advisor Class
2006	0.95% to 1.90%	246,562	11.04 to  10.36		2,684,228	1.54%	15.76% to  14.65%
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%
American Century Income & Growth Fund – Investor Class
2006	1.30%	302,858	22.27		6,745,819	1.80%	15.66%
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%
American Century International Growth Fund – Advisor Class
2006	0.95% to 1.50%	34,049	9.81 to    9.45		330,497	0.48%	23.53% to  22.85%
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%

(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***
American Century International Growth Fund – Investor Class
2006	1.30%	58,486	$	28.07	$	1,641,978	0.72%	23.38%
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%
American Century Short-Term Government Fund – Investor Class
2006	0.95% to 1.90%	158,143		12.12 to  11.36		2,733,820	4.22%	3.02% to    2.03%
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%
American Century Ultra® Fund – Investor Class
2006	0.95% to 2.25%	791,122		6.83 to    8.66		12,041,818	0.00%	-4.20% to   -5.45%
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%
American Century Variable Portfolios, Inc. – International Fund – Class IV
2006	0.95% to 1.90%	142,961		15.62 to  15.23		2,215,512	1.04%	23.68% to  22.50%
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
2006	1.30%	49,753		14.68		730,372	2.47%	4.24%
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%
Credit Suisse Mid Cap Growth Fund – Common Shares
2006	1.30%	200,167		15.64		3,131,298	0.00%	0.39%
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%
Delaware Delchester Fund – Institutional Class
2006	1.30%	26,667		17.03		454,075	7.35%	12.64%
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%
Dreyfus A Bonds Plus, Inc.
2006	1.30%	145,007		15.72		2,279,940	4.52%	2.68%
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%
Dreyfus Appreciation Fund, Inc.
2006	0.95% to 1.90%	405,513		10.74 to  10.07		5,045,604	1.32%	15.16% to  14.06%
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%
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%
Dreyfus Emerging Leaders Fund
2006	0.95% to 1.25%	1,754		13.03 to  12.77		22,618	0.00%	6.05% to    5.73%
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%

(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***
Dreyfus Premier Balanced Opportunity Fund – Class Z
2006	0.95% to 1.60%	176,376	$	10.74   to   10.60	$	1,883,248	1.70%	8.49%   to    7.78%
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
2006	0.95% to 1.85%	58,550		6.62   to     6.23		906,072	0.00%	7.97%   to    7.00%
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%
Dreyfus S&P 500 Index Fund
2006	1.30%	560,996		32.79		18,393,389	1.35%	13.74%
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%
Evergreen Equity Income Fund – Class I
2006	1.30%	35,468		27.99		992,926	2.30%	15.54%
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%
Federated Equity Income Fund, Inc.– Class F Shares
2006	0.95% to 1.50%	17,923		10.38   to   10.02		183,970	2.34%	21.52%   to  20.84%
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%
Federated High Yield Trust
2006	0.95% to 1.90%	194,727		13.40  to  12.57		2,507,604	7.75%	10.16%  to    9.10%
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%
Federated Intermediate Corporate Bond Fund – Institutional Service Shares
2006	0.95% to 1.90%	54,941		13.34   to   12.56		725,837	4.22%	3.31%   to    2.32%
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%
Federated Investment Series Funds, Inc.– Federated Bond Fund – Class F Shares
2006	0.95% to 2.05%	139,144		14.71   to   13.66		2,175,503	5.51%	4.82%   to    3.66%
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%
Fidelity®Advisor Balanced Fund – Class A
2006	0.95% to 1.50%	48,763		11.75   to   11.32		565,605	1.78%	10.46%   to    9.85%
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%
Fidelity®Advisor Balanced Fund – Class T
2006	1.30%	73,978		17.10		1,264,717	1.74%	9.85%
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%

(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® Advisor Equity Growth Fund – Class A
2006	0.95% to 1.65%	125,406	$	7.21 to    6.89	$	894,569	0.00%	5.53% to    4.79%
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%
Fidelity® Advisor Equity Income Fund – Class A
2006	0.95% to 1.90%	286,632		15.65 to  14.68		4,428,184	1.09%	15.96% to   14.86%
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%
Fidelity® Advisor Equity Income Fund – Class T
2006	1.30%	185,763		24.54		4,558,425	1.03%	15.32%
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%
Fidelity® Advisor Growth Opportunities Fund – Class A
2006	0.95% to 1.90%	70,456		8.35 to    7.83		576,813	0.00%	4.03% to    3.04%
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%
Fidelity® Advisor Growth Opportunities Fund – Class T
2006	1.30%	235,646		14.75		3,475,475	0.00%	3.53%
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%
Fidelity® Advisor High Income Advantage Fund – Class T
2006	0.95% to 1.90%	118,500		16.18 to  15.17		2,245,182	6.45%	14.50% to  13.40%
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%
Fidelity® Advisor Overseas Fund – Class A
2006	0.95% to 1.90%	1,467		12.26 to  11.55		17,610	0.17%	17.83% to   16.70%
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%
Fidelity® Asset Manager™
2006	1.30%	114,369		22.33		2,554,173	2.83%	7.77%
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%
Fidelity® Capital & Income Fund
2006	1.30%	5,826		78.80		459,068	6.17%	11.58%
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%
Fidelity® Equity-Income Fund
2006	1.30%	93,962		118.96		11,177,642	1.61%	18.25%
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%

(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***
Fidelity® Magellan® Fund
2006	1.30%	510,739	$	30.71	$	15,685,270	0.49%	5.83%
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%
Fidelity® Puritan® Fund
2006	1.30%	286,741		33.22		9,525,181	2.95%	13.29%
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%
Fidelity® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	1.30%	873		26.26		22,924	7.82%	9.79%
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%
Fidelity® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 R
2006	0.95% to 1.60%	188,000		15.18 to  14.92		2,832,836	0.53%	16.70% to  15.93%
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
2006	0.95% to 1.90%	511,413		18.23 to  17.10		9,777,596	1.70%	16.86% to  15.74%
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%
Franklin Small-Mid Cap Growth Fund I – Class A
2006	0.95% to 1.90%	289,296		8.35 to    7.83		2,392,681	0.00%	6.50% to    5.48%
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%
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.95% to 1.65%	280,958		15.16 to  14.88		4,224,492	1.30%	20.31% to  19.46%
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    4.98%	(a) (b)
Franklin Value Investors Trust – Franklin Balance Sheet Investment Fund – Class A
2006	0.95% to 1.85%	200,922		23.43 to  22.13		4,641,285	1.36%	15.25% to  14.21%
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%
Gartmore Bond Fund – Class D
2006	0.95% to 2.05%	22,512		14.44 to  13.40		321,978	4.76%	3.41% to    2.26%
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%
Tax qualified
2006	1.30%	24,457		59.17		1,447,190	4.76%	3.04%
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%

(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***
Non-tax qualified
2006	1.30%	72	$	58.92	$	4,242	4.76%	3.04%
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%
Gartmore Bond Index Fund – Class A
2006	0.95% to 1.65%	22,784		13.16 to  12.59		294,326	4.03%	2.76% to    2.04%
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%
Gartmore Government Bond Fund – Class D
2006	0.95% to 1.90%	281,627		13.99 to    3.12		4,181,154	4.15%	2.87% to    1.89%
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%
Gartmore Growth Fund – Class A
2006	0.95% to 1.45%	35,920		11.99 to  11.81		426,705	0.00%	5.00% to    4.47%
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
2006	0.95% to 1.45%	11,189		5.84 to    5.64		64,792	0.00%	5.30% to    4.77%
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%
Tax qualified
2006	1.30%	11,313		70.50		797,599	0.00%	4.93%
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%
Non-tax qualified
2006	1.30%	115		74.44		8,561	0.00%	4.93%
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%
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	1.30%	71,501		13.71		980,064	2.08%	15.35%
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 – Investor Destinations Conservative Fund – Class II
2006	1.30%	4,408		11.05		48,698	3.09%	4.79%
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 – Investor Destinations Moderate Fund – Class II
2006	1.30%	91,583		12.30		1,126,874	2.61%	9.91%
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 – Investor Destinations Moderately Aggressive Fund – Class II
2006	1.30%	172,773		13.14		2,270,454	2.35%	13.06%
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 – Investor Destinations Moderately Conservative Fund – Class II
2006	1.30%	13,164		11.66		153,505	2.63%	7.02%
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)

59

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 GVIT Balanced Fund – Class I
2006	0.95%to 1.50%	20,618	$	12.00 to  11.64	$	243,931	2.29%	11.19% to  10.57%
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%
Gartmore International Index Fund – Class A
2006	1.10% to 1.90%	1,781		13.39 to  12.73		23,622	2.31%	24.26% to  23.25%
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%
Gartmore Investor Destinations Aggressive Fund – Service Class
2006	0.95% to 1.65%	149,364		12.22 to  11.69		1,800,016	1.14%	15.72% to  14.90%
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%
Gartmore Investor Destinations Conservative Fund – Service Class
2006	0.95% to 1.55%	171,840		12.02 to  11.57		2,043,840	2.97%	5.11% to    4.47%
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%
Gartmore Investor Destinations Moderate Fund – Service Class
2006	0.95% to 1.90%	778,859		12.18 to  11.47		9,384,597	1.88%	10.33% to    9.28%
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%
Gartmore Investor Destinations Moderately Aggressive Fund – Service Class
2006	0.95% to 1.90%	317,275		12.28  to  11.56		3,833,765	1.44%	13.36% to  12.27%
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%
Gartmore Investor Destinations Moderately Conservative Fund – Service Class
2006	0.95% to 1.65%	209,987		12.21 to  11.68		2,535,819	2.46%	7.47% to    6.71%
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%
Gartmore Large Cap Value Fund – Class A
2006	0.95% to 1.65%	189,451		16.84 to  16.06		3,086,672	1.12%	19.89% to  19.05%
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%
Gartmore Mid Cap Market Index Fund – Class A
2006	0.95% to 2.10%	114,194		14.63 to  13.61		1,653,775	1.27%	8.54% to    7.28%
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%
Gartmore Money Market Fund – Prime Shares
2006	1.30%	441,699		23.98		10,592,824	4.53%	3.20%
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%

(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***
Tax qualified
2006	1.30%	3,617	$	30.20	$	109,226	4.53%	3.20%
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%
Non-tax qualified
2006	1.30%	820		30.39		24,919	4.53%	3.20%
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%
Gartmore Money Market Fund – Service Class
2006	0.95% to 1.90%	640,190		11.04 to 10.35		6,997,751	4.18%	3.39% to    2.40%
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%
Gartmore Nationwide Fund – Class D
2006	0.95% to 1.65%	28,674		11.23 to 10.71		316,831	1.08%	12.77% to  11.97%
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%
Tax qualified
2006	1.30%	35,190		137.07		4,823,587	1.08%	12.37%
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%
Non-tax qualified
2006	1.30%	55		142.78		7,853	1.08%	12.37%
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%
Gartmore S&P 500 Index Fund – Service Class
2006	0.95% to 2.25%	429,809		9.72 to 10.48		4,275,167	1.34%	14.06% to  12.57%
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%
Gartmore Small Cap Fund – Class A
2006	0.95% to 1.65%	216,630		22.51 to 21.47		5,654,710	0.19%	27.94% to  27.03%
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%
Gartmore Small Cap Index Fund – Class A
2006	0.95% to 1.65%	97,827		15.06 to 14.41		1,458,075	1.37%	16.09% to  15.27%
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%
Gartmore Value Opportunities Fund – Class A
2006	0.95% to 1.60%	17,052		17.41 to 16.71		293,641	0.00%	16.73% to  15.96%
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%

(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***
Janus Adviser Series – Balanced Fund – Class S
2006	0.95% to 1.65%	106,188	$ 12.07 to 11.54	$1,265,873	1.42%	9.35% to    8.58%
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%
Janus Adviser Series – International Growth Fund – Class S
2006	1.20% to 1.90%	4,626	14.67 to 14.03	67,660	0.83%	42.90% to  41.89%
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%
Janus Adviser Series – Worldwide Fund – Class S
2006	0.95% to 1.90%	70,080	7.78 to   7.32	536,746	1.72%	15.82% to  14.72%
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%
Janus Equity Funds – Janus Fund
2006	0.95% to 2.05%	516,839	6.40 to   5.94	7,573,724	0.33%	9.54% to    8.33%
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%
Janus Equity Funds – Janus Twenty Fund
2006	0.95% to 1.90%	878,681	6.67 to   6.25	22,841,154	0.57%	11.23% to  10.17%
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%
Janus Equity Funds – Janus Worldwide Fund
2006	0.95% to 1.50%	340,387	6.94 to   6.69	5,786,091	1.20%	16.78% to  16.14%
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%
Lazard Small Cap Portfolio Open Shares
2006	0.95% to 1.90%	139,652	19.00 to 17.82	2,859,414	0.00%	15.66% to  14.56%
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%
MFS® Strategic Income Fund – Class A
2006	1.30%	66,662	13.68	912,120	6.00%	5.44%
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%
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%
Neuberger Berman Genesis Fund – Trust Class
2006	0.95% to 1.90%	681,574	23.73 to 22.25	16,358,793	1.09%	6.24% to    5.22%
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%

(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***
Neuberger Berman Guardian Fund – Investor Class
2006	1.30%	123,393	$	23.19	$	2,861,814	0.33%	12.01%
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%
Neuberger Berman Guardian Fund – Trust Class
2006	0.95% to 1.50%	17,972		12.36 to 11.91		218,524	0.20%	12.24% to  11.62%
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%
Neuberger Berman Limited Maturity Bond Fund – Investor Class
2006	1.30%	66,778		14.69		981,208	4.61%	2.83%
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%
Neuberger Berman Partners Fund – Investor Class
2006	1.30%	174,025		38.39		6,681,163	0.60%	11.73%
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%
Neuberger Berman Partners Fund – Trust Class
2006	0.95% to 1.90%	42,201		14.99 to 14.06		621,923	0.45%	11.97% to  10.90%
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%
Neuberger Berman Socially Responsive Fund – Trust Class
2006	0.95% to 1.50%	120,462		13.62 to 13.42		1,634,820	0.10%	13.13% to  12.51%
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)
Oppenheimer Capital Appreciation Fund A
2006	0.95% to 1.80%	260,714		8.58 to   8.13		2,214,629	0.00%	6.49% to    5.57%
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%
Oppenheimer Champion Income Fund A
2006	0.95% to 1.45%	17,997		13.38 to 13.13		238,841	5.62%	8.16% to    7.61%
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
2006	0.95% to 1.90%	393,370		13.96 to 13.09		12,944,367	0.65%	16.27% to  15.15%
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%
Oppenheimer Global Securities Fund/VA – Class 4
2006	0.95% to 2.25%	548,551		15.20 to 14.67		8,277,875	0.81%	16.29% to  14.77%
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 A
2006	0.95% to 1.60%	39,653		15.23 to 14.61		595,446	4.78%	6.66% to    5.96%
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%
								(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***
Phoenix Balanced Fund – Class A
2006	1.30%	43,231	$	21.69	$	937,643	2.24%	11.27%
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%
PIMCO Total Return Fund – Class A
2006	0.95% to 2.25%	274,095		13.72 to  12.03		3,710,444	4.15%	2.53% to    1.18%
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%
Putnam International Equity Fund – Class A
2006	1.45% to 1.50%	265		20.31 to  20.27		5,382	2.32%	26.38% to  26.32%
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
2006	1.10% to 1.50%	4,722		13.23 to  13.04		62,246	0.00%	4.08% to    3.66%
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%
Templeton Foreign Fund – Class A
2006	0.95% to 1.65%	222,002		17.03 to  16.24		4,999,740	2.04%	18.79% to  17.96%
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%
Van Kampen Growth and Income Fund – Class A
2006	0.95% to 1.90%	191,891		17.54 to  16.93		3,348,357	1.57%	14.91% to  13.81%
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 Mid Cap Growth Fund – Class A
2006	0.95% to 1.55%	41,717		18.54 to  18.14		767,703	0.00%	7.97% to    7.32%
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
2006	0.95% to 1.90%	121,543		27.18 to  26.24		3,282,788	1.32%	36.14% to  34.84%
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 – Class A
2006	0.95% to 1.60%	18,050		16.07 to  15.69		288,219	0.00%	5.16% to    4.47%
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 FundsSM – Common Stock Fund – Class Z
2006	0.95% to 1.90%	246,991		14.19 to  13.31		4,298,808	0.00%	14.22% to  13.13%
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%

(Continued)

64

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 FundsSM – Growth and Income Fund – Investor Class
2006	0.95% to 1.85%	21,787	$	7.90 to    7.47	$	169,326	0.28%	14.30% to  13.26%
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%
Wells Fargo Advantage FundsSM – Growth Fund – Investor Class
2006	0.95% to 1.45%	31,689		12.75 to  12.55		400,625	0.00%	6.71% to    6.17%
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 FundsSM – Large Cap Growth Fund – Investor Class
2006	1.30%	78,113		24.46		1,910,814	0.00%	2.52%
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%
Wells Fargo Advantage FundsSM – Mid Cap Growth Fund – Class Z
2006	0.95% to 1.50%	24,109		12.54 to 12.42		301,104	0.00%	12.71% to  12.08%
2005	0.95% to 1.50%	35,742		11.13 to 11.08		397,069	0.00%	11.25% to  10.80%	(a	) (b)
2006 Reserves for annuity contracts in payout phase:						81,495
2006 Contract owners’ equity					$	355,699,377
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

*	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.

65

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 Accounts”)) as of December 31, 2006, and the related statements of operations and changes in contract owners’ equity, and the financial highlights for each of the periods indicated herein. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2006, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2006, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 9, 2007

66

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

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