Unassociated Document

485BPOS 1 futurevenuecomp.htm BOA FUTURE VENUE Unassociated Document

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933	File No. 333-104513

Pre-Effective Amendment No.	o

Post-Effective Amendment No. 14	þ
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940	File No. 811-3330

Amendment No. 207	þ

(Check appropriate box or boxes.)

NATIONWIDE VARIABLE ACCOUNT – II

(Exact Name of Registrant)

NATIONWIDE LIFE INSURANCE COMPANY

(Name of Depositor)

One Nationwide Plaza, Columbus, Ohio 43215

(Address of Depositor's Principal Executive Offices) (Zip Code)

Depositor's Telephone Number, including Area Code

(614) 249-7111

Thomas E. Barnes, VP and Secretary, One Nationwide Plaza, Columbus, Ohio 43215

(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering

September 4, 2007

It is proposed that this filing will become effective (check appropriate box)

o immediately upon filing pursuant to paragraph (b)

þ on September 4, 2007 pursuant to paragraph (b)

o 60 days after filing pursuant to paragraph (a)(1)

o on (date) pursuant to paragraph (a)(1)

If appropriate, check the following box:

o this post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Title of Securities Being Registered

Flexible Premium Deferred Variable Annuity Contract

The Best of America^® Future Venue Annuity^sm

Nationwide Life Insurance Company

Flexible Premium Deferred Variable Annuity Contracts

Issued by Nationwide Life Insurance Company through its Nationwide Variable Account-II

The date of this prospectus is May 1, 2007 as amended September 4, 2007.

This prospectus contains basic information you should understand about the contracts before investing – the annuity contract is the legally binding instrument governing the relationship between you and Nationwide should you choose to invest. Please read this prospectus carefully and keep it for future reference.

Variable annuities are complex investment products with unique benefits and advantages that may be particularly useful in meeting long-term savings and retirement needs. There are costs and charges associated with these benefits and advantages - costs and charges that are different, or do not exist at all, within other investment products. With help from financial consultants and advisers, investors are encouraged to compare and contrast the costs and benefits of the variable annuity described in this prospectus against those of other investment products, especially other variable annuity and variable life insurance products offered by Nationwide and its affiliates. Nationwide offers a wide array of such products, many with different charges, benefit features and underlying investment options. This process of comparison and analysis should aid in determining whether the purchase of the contract described in this prospectus is consistent with your investment objectives, risk tolerance, investment time horizon, marital status, tax situation and other personal characteristics and needs.

Information about this and other Nationwide products can be found at: www.nationwide.com.

Information about us and the product (including the Statement of Additional Information ) may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C., or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, D.C. 20549-4644. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090. The SEC also maintains a web site (www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information.

These annuities are NOT deposits or obligations of, or issued, guaranteed or endorsed by, any bank, are NOT insured or guaranteed by the US Government, the Federal Deposit Insurance corporation (FDIC), the Federal Reserve Board or any other agency. An investment in this annuity involves investment risks, including possible loss of value. Annuities that involve investment risk may lose value. These securities have not been approved or disapproved by the SEC, nor has the SEC passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense.

This contract contains features that apply credits to the contract value. The benefit of the credits may be more than offset by the additional fees that the contract owner will pay in connection with the credits. A contract without credits may cost less. Additionally, with respect to the Extra Value Options, be aware that the cost of electing the option and the recapture of the credits (in the event of a surrender) could exceed any benefit of receiving the Extra Value Option credits.

The following is a list of the underlying mutual funds available under the contract.

AIM Variable Insurance Funds

·	AIM V.I. Basic Value Fund: Series II Shares

·	AIM V.I. Capital Appreciation Fund: Series II Shares

·	AIM V.I. Capital Development Fund: Series II Shares

American Century Variable Portfolios II, Inc.

American Century VP Inflation Protection Fund: Class II American Century Variable Portfolios, Inc.

·	American Century VP International Fund: Class IV†

·	American Century VP Mid Cap Value Fund: Class II

·	American Century VP Value Fund: Class II*

·	American Century VP Vista Fund: Class II

Dreyfus

·	Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares

·	Dreyfus Stock Index Fund, Inc.: Service Shares

·	Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares

Federated Insurance Series

·	Federated Market Opportunity Fund II: Service Shares

·	Federated Quality Bond Fund II: Service Shares

Fidelity Variable Insurance Products Fund

·	VIP Equity-Income Portfolio: Service Class 2*

·	VIP Growth Portfolio: Service Class 2

·	VIP Overseas Portfolio: Service Class 2R†

·	VIP ContrafundÒ Portfolio: Service Class 2

·	VIP Investment Grade Bond Portfolio: Service Class 2*

·	VIP Mid Cap Portfolio: Service Class 2

·	VIP Energy Portfolio: Service Class 2†

·	VIP Freedom Fund 2010 Portfolio: Service Class 2

·	VIP Freedom Fund 2020 Portfolio: Service Class 2

·	VIP Freedom Fund 2030 Portfolio: Service Class 2

Franklin Templeton Variable Insurance Products Trust

·	Franklin Income Securities Fund: Class 2

·	Franklin Small Cap Value Securities Fund: Class 2

·	Templeton Developing Markets Securities Fund: Class 3†

·	Templeton Foreign Securities Fund: Class 3†

·	Templeton Global Income Securities Fund: Class 3†

Janus Aspen Series

·	Forty Portfolio: Service Shares

·	INTECH Risk-Managed Core Portfolio: Service Shares

·	International Growth Portfolio: Service II Shares†

Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust)

·	AMT Short Duration Bond Portfolio: I Class* (formerly, AMT Limited Maturity Bond Portfolio: I Class)

MFS® Variable Insurance Trust

·	MFS Value Series: Service Class

Nationwide Variable Insurance Trust ("NVIT") (formerly, Gartmore Variable Insurance Trust (“GVIT”))

·	American Funds NVIT Asset Allocation Fund: Class II

·	American Funds NVIT Bond Fund: Class II

·	American Funds NVIT Global Growth Fund: Class II

·	American Funds NVIT Growth Fund: Class II

·	American Funds NVIT Growth-Income Fund: Class II

·	Federated NVIT High Income Bond Fund: Class III†*

·	Gartmore NVIT Emerging Markets Fund: Class VI†

·	Nationwide Multi-Manager NVIT Small Cap Growth Fund: Class II (formerly, GVIT Small Cap Growth Fund: Class II)

·	Nationwide Multi-Manager NVIT Small Cap Value Fund: Class II (formerly, GVIT Small Cap Value Fund: Class II)

·	Nationwide Multi-Manager NVIT Small Company Fund: Class II (formerly, GVIT Small Company Fund: Class II)

·	Nationwide NVIT Global Health Sciences Fund: Class VI†

·	Nationwide NVIT Global Technology and Communications Fund: Class VI†

·	Nationwide NVIT Government Bond Fund: Class I

·	Nationwide NVIT Investor Destinations Funds: Class II

Nationwide NVIT Investor Destinations Conservative Fund: Class II

Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II

Nationwide NVIT Investor Destinations Moderate Fund: Class II

Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II

Nationwide NVIT Investor Destinations Aggressive Fund: Class II

·	Nationwide NVIT Mid Cap Growth Fund: Class II

·	Nationwide NVIT Money Market Fund: Class I

·	Nationwide NVIT U.S. Growth Leaders Fund: Class II

·	NVIT International Index Fund: Class VIII†

·	NVIT International Value Fund: Class VI†

·	NVIT Mid Cap Index Fund: Class I

·	NVIT Nationwide® Fund: Class II

·	Van Kampen NVIT Comstock Value Fund: Class II*

·	Van Kampen NVIT Multi Sector Bond Fund: Class I*

Neuberger Berman Advisers Management Trust

·	AMT Fasciano Portfolio: S Class*

·	AMT International Portfolio: S Class†

·	AMT Regency Portfolio: S Class

·	AMT Socially Responsive Portfolio: I Class

Oppenheimer Variable Account Funds

·	Oppenheimer Capital Appreciation Fund/VA: Service Shares

·	Oppenheimer Global Securities Fund/VA: Class 4†

·	Oppenheimer High Income Fund/VA: Class 4†*

·	Oppenheimer Main Street Fund®/VA: Service Shares

·	Oppenheimer Main Street Small Cap Fund®/VA: Service Shares

T. Rowe Price Equity Series, Inc.

·	T. Rowe Price Blue Chip Growth Portfolio: Class II

·	T. Rowe Price Equity Income Portfolio: Class II

·	T. Rowe Price Limited Term Bond Portfolio: Class II

Van Kampen

The Universal Institutional Funds, Inc.

·	Core Plus Fixed Income Portfolio: Class II*

·	U.S. Real Estate Portfolio: Class II

Wells Fargo Advantage Variable Trust

·	Wells Fargo Advantage VT Discovery Fund

·	Wells Fargo Advantage VT Large Company Growth Fund

·	Wells Fargo Advantage VT Money Market Fund

·	Wells Fargo Advantage VT Small Cap Growth Fund

·	Wells Fargo Advantage VT Small/Mid Cap Value Fund

·	Wells Fargo Advantage VT Total Return Bond Fund

The following underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2007:

American Century Variable Portfolios, Inc.

·	American Century VP Ultra Fund: Class II

The following underlying mutual funds are only available in contracts for which good order applications were received before May 1, 2006:

Fidelity Variable Insurance Products Fund

·	VIP Value Strategies Portfolio: Service Class 2

Franklin Templeton Variable Insurance Products Trust

·	Franklin Rising Dividends Securities Fund: Class 2

MFS® Variable Insurance Trust

·	MFS Investors Growth Stock Series: Service Class

The following underlying mutual funds are only available in contracts for which good order applications were received before May 1, 2005:

Putnam Variable Trust

·	Putnam VT Growth and Income Fund: Class IB

·	Putnam VT Voyager Fund: Class IB

The following underlying mutual funds are only available in contracts for which good order applications were received before May 1, 2004:

AllianceBernstein Variable Products Series Fund, Inc.

·	AllianceBernstein Growth and Income Portfolio: Class B

·	AllianceBernstein Small/Mid Cap Value Portfolio: Class B

American Century Variable Portfolios, Inc.

·	American Century VP Income & Growth Fund: Class II

Dreyfus

·	Dreyfus Variable Investment Fund - Developing Leaders Portfolio: Service Shares

Federated Insurance Series

·	Federated American Leaders Fund II: Service Shares

·	Federated Capital Appreciation Fund II: Service Shares

Janus Aspen Series

·	Balanced Portfolio: Service Shares

Neuberger Berman Advisers Management Trust

·	AMT Mid-Cap Growth Portfolio: S Class

Effective May 1, 2007, the following underlying mutual fund is no longer available to receive transfers or new purchase payments:

Oppenheimer Variable Account Funds

·	Oppenheimer High Income Fund/VA: Service Shares

Effective May 1, 2005, the following underlying mutual fund is no longer available to receive transfers or new purchase payments:

Nationwide Variable Insurance Trust

·	Federated NVIT High Income Bond Fund: Class I*

Effective May 1, 2004, the following underlying mutual funds are no longer available to receive transfers or new purchase payments:

American Century Variable Portfolios, Inc.

·	American Century VP International Fund: Class II

Fidelity Variable Insurance Products Fund

·	VIP Overseas Portfolio: Service Class 2

Franklin Templeton Variable Insurance Products Trust

·	Templeton Foreign Securities Fund: Class 2

Janus Aspen Series

·	International Growth Portfolio: Service Shares

Nationwide Variable Insurance Trust

·	Gartmore NVIT Emerging Markets Fund: Class II

·	Gartmore NVIT Global Utilities Fund: Class II

·	Nationwide NVIT Global Financial Services Fund: Class II

·	Nationwide NVIT Global Health Sciences Fund: Class II

·	Nationwide NVIT Global Technology and Communications Fund: Class II

·	NVIT International Value Fund: Class II

Oppenheimer Variable Account Funds

·	Oppenheimer Global Securities Fund/VA: Service Shares

Putnam Variable Trust

·	Putnam VT International Equity Fund: Class IB

Van Kampen

The Universal Institutional Funds, Inc.

·	Emerging Markets Debt Portfolio: Class II

*These underlying mutual funds may invest in lower quality debt securities commonly referred to as junk bonds.

†These underlying mutual funds assess a short-term trading fee.

Purchase payments not invested in the underlying mutual funds of the Nationwide Variable Account-II ("variable account") may be allocated to the fixed account or the Guaranteed Term Options (Guaranteed Term Options may not be available in every jurisdiction – refer to your contract for specific information).

Glossary of Special Terms

Accumulation unit - An accounting unit of measure used to calculate the contract value allocated to the variable account before the annuitization date.

Annuitization date - The date on which annuity payments begin.

Annuity commencement date - The date on which annuity payments are scheduled to begin.

Annuity unit - An accounting unit of measure used to calculate the value of variable annuity payments.

Contract value - The value of all accumulation units in a contract plus any amount held in the fixed account, any amount held under Guaranteed Term Options and any amounts transferred as a loan to the collateral fixed account.

Contract year - Each year the contract is in force beginning with the date the contract is issued.

FDIC - Federal Deposit Insurance Corporation.

Fixed account - An investment option that is funded by Nationwide's general account.

General account - All assets of Nationwide other than those of the variable account or in other separate accounts that have been or may be established by Nationwide.

Individual Retirement Account - An account that qualifies for favorable tax treatment under Section 408(a) of the Internal Revenue Code, but does not include Roth IRAs.

Individual Retirement Annuity or IRA - An annuity contract that qualifies for favorable tax treatment under Section 408(b) of the Internal Revenue Code, but does not include Roth IRAs.

Investment-Only Contract - A contract purchased by a qualified pension, profit-sharing or stock bonus plan as defined by Section 401(a) of the Internal Revenue Code.

Nationwide - Nationwide Life Insurance Company.

Net asset value - The value of one share of an underlying mutual fund at the end of a market day or at the close of the New York Stock Exchange.

Non-Qualified Contract - A contract which does not qualify for favorable tax treatment as a Qualified Plan, IRA, Roth IRA, SEP IRA, Simple IRA, or Tax Sheltered Annuity.

Qualified Plan - A retirement plan that receives favorable tax treatment under Section 401 of the Internal Revenue Code, including Investment-Only Contracts. In this prospectus, all provisions applicable to Qualified Plans also apply to Investment-Only Contracts unless specifically stated otherwise.

Roth IRA - An annuity contract which qualifies for favorable tax treatment under Section 408A of the Internal Revenue Code.

SEC - Securities and Exchange Commission.

SEP IRA - An annuity contract which qualifies for favorable tax treatment under Section 408(k) of the Internal Revenue Code.

Simple IRA- An annuity contract which qualifies for favorable tax treatment under Section 408(p) of the Internal Revenue Code.

Sub-accounts - Divisions of the variable account for which accumulation units and annuity units are separately maintained – each sub-account corresponds to a single underlying mutual fund.

Tax Sheltered Annuity - An annuity that qualifies for favorable tax treatment under Section 403(b) of the Internal Revenue Code. The Tax Sheltered Annuities sold under this prospectus not available in connection with investment plans that are subject to the Employee Retirement Income Security Act of 1974, as amended ("ERISA").

Valuation date - Each day the New York Stock Exchange and Nationwide's home office are open for business, or any other day during which there is a sufficient degree of trading of underlying mutual fund shares such that the current net asset value of accumulation units or annuity units might be materially affected. Values of the variable account are determined as of the close of the New York Stock Exchange which generally closes at 4:00 p.m. Eastern Time, but may close earlier on certain days and as conditions warrant.

Valuation period - The period of time commencing at the close of a valuation date and ending at the close of business for the next succeeding valuation date.

Variable account - Nationwide Variable Account-II, a separate account of Nationwide that contains variable account allocations. The variable account is divided into sub-accounts, each of which invests in shares of a separate underlying mutual fund.

Table of Contents	Page
Glossary of Special Terms	4
Contract Expenses	7
Underlying Mutual Fund Annual Expenses	9
Example	10
Synopsis of the Contracts	10
Purpose of the Contract
Minimum Initial and Subsequent Purchase Payments
Credits on Purchase Payments
Charges and Expenses
Annuity Payments
Taxation
Ten Day Free-look
Condensed Financial Information	13
Financial Statements	13
Nationwide Life Insurance Company	13
Nationwide Investment Services Corporation	13
Investing in the Contract	13
The Variable Account and Underlying Mutual Funds
Guaranteed Term Options
The Fixed Account
The Contract in General	16
Distribution, Promotional and Sales Expenses
Underlying Mutual Fund Payments
Profitability
Standard Charges and Deductions	18
Mortality and Expense Risk and Administrative Charges
Contract Maintenance Charge
Contingent Deferred Sales Charge
Premium Taxes
Short-Term Trading Fees
Optional Contract Benefits, Charges and Deductions	20
Death Benefit Options
Spousal Protection Annuity Options
Beneficiary Protector II Option
Extra Value Option
Capital Preservation Plus Option
Capital Preservation Plus Lifetime Income Option
7% Lifetime Income Option
5% Lifetime Income Option
Spousal Continuation Benefit
Removal of Variable Account Charges	45
Ownership and Interests in the Contract	45
Contract Owner
Joint Owner
Contingent Owner
Annuitant
Contingent Annuitant
Co-Annuitant
Joint Annuitant
Beneficiary and Contingent Beneficiary
Changes to the Parties to the Contract
Operation of the Contract	46
Minimum Initial and Subsequent Purchase Payments
Purchase Payment Credits
Pricing
Allocation of Purchase Payments
Determining the Contract Value
Transfer Requests

Table of Contents (continued)	Page
Transfer Restrictions
Transfers Prior to Annuitization
Transfers After Annuitization
Right to Examine and Cancel	51
Surrender (Redemption) Prior to Annuitization	51
Partial Surrenders (Partial Redemptions)
Full Surrenders (Full Redemptions)
Surrender (Redemption) After Annuitization	52
Surrenders Under Certain Plan Types	52
Surrenders Under a Tax Sheltered Annuity
Surrenders Under a Texas Optional Retirement Program or a Louisiana Optional Retirement Plan
Loan Privilege	52
Minimum and Maximum Loan Amounts
Maximum Loan Processing Fee
How Loan Requests are Processed
Loan Interest
Loan Repayment
Distributions and Annuity Payments
Transferring the Contract
Grace Period and Loan Default
Assignment	54
Contract Owner Services	54
Asset Rebalancing
Dollar Cost Averaging
Enhanced Fixed Account Dollar Cost Averaging
Fixed Account Interest Out Dollar Cost Averaging
Systematic Withdrawals
Nationwide Allocation Architect
Custom Portfolio Asset Rebalancing Service
Death Benefits	57
Death of Contract Owner
Death of Annuitant
Death of Contract Owner/Annuitant
Death Benefit Payment
Death Benefit Calculations
Annuity Commencement Date	62
Annuitizing the Contract	62
Annuitization Date
Annuitization
Fixed Annuity Payments
Variable Annuity Payments
Frequency and Amount of Annuity Payments
Annuity Payment Options	63
Annuity Payment Options for Contracts with Total Purchase Payments Less Than or Equal to $2,000,000
Annuity Payment Options for Contracts with Total Purchase Payments Greater Than $2,000,000
Statements and Reports	64
Legal Proceedings	64
Table of Contents of Statement of Additional Information	68
Appendix A: Underlying Mutual Funds	69
Appendix B: Condensed Financial Information	79
Appendix C: Contract Types and Tax Information	113

Contract Expenses

The following tables describe the fees and expenses that a contract owner will pay when buying, owning, or surrendering the contract.

The first table describes the fees and expenses a contract owner will pay at the time the contract is purchased, surrendered, or when cash value is transferred between investment options.

Contract Owner Transaction Expenses
Maximum Contingent Deferred Sales Charge ("CDSC") (as a percentage of purchase payments surrendered)	7%¹
Maximum Loan Processing Fee	$25²
Maximum Premium Tax Charge	5%³
Maximum Short-Term Trading Fee (as a percentage of transaction amount)	1%

The next table describes the fees and expenses that a contract owner will pay periodically during the life of the contract (not including underlying mutual fund fees and expenses).

Recurring Contract Expenses
Maximum Annual Contract Maintenance Charge	$30⁴
Annual Loan Interest Charge	2.25%⁵
Variable Account Annual Expenses (annualized rate of total variable account charges as a percentage of the daily net assets)⁶
Mortality and Expense Risk Charge	0 .90%
Administrative Charge	0.20%
Death Benefit Options (an applicant may purchase one)
One-Year Enhanced Death Benefit II Option (available beginning September 1, 2004 or a later date if state law requires) Total Variable Account Charges (including this option only)	0.15%⁷ 1.25%
One-Year Enhanced Death Benefit Option (available until September 1, 2004 or until state approval is received for the One-Year Enhanced Death Benefit II Option) Total Variable Account Charges (including this option only)	0.10% 1.20%
One-Month Enhanced Death Benefit II Option (available beginning September 1, 2004 or a later date if state law requires) Total Variable Account Charges (including this option only)	0.35%⁸ 1.45%
One-Month Enhanced Death Benefit Option (available until September 1, 2004 or until state approval is received for the One-Month Enhanced Death Benefit II Option) Total Variable Account Charges (including this option only)	0.30% 1.40%
Combination Enhanced Death Benefit II Option (available beginning September 1, 2004 or a later date if state law requires) Total Variable Account Charges (including this option only)	0.45%⁹ 1.55%
Combination Enhanced Death Benefit Option (available until September 1, 2004 or until state approval is received for the Combination Enhanced Death Benefit II Option) Total Variable Account Charges (including this option only)	0.40%¹⁰ 1.50%
Spousal Protection Options (an applicant may elect one)
Spousal Protection Annuity II Option (available beginning September 1, 2004 or a later date if state law requires) Total Variable Account Charges (including this option only)	0.20% 1.30%
Spousal Protection Annuity Option (available until September 1, 2004 or until state approval is received for the Spousal Protection Annuity II Option) Total Variable Account Charges (including this option only)	0.10% 1.20%
Beneficiary Protector II Option Total Variable Account Charges (including this option only) In addition to the charge assessed to variable account allocations, allocations made to the fixed account or to the Guaranteed Term Options will be assessed a fee of 0.35%.	0.35%¹¹ 1.45%
3% Extra Value Option Total Variable Account Charges (including this option only) In addition to the charge assessed to variable account allocations, allocations made to the fixed account and the Guaranteed Term Options for the first 7 contract years will be assessed a fee of 0.45%.	0.45%¹² 1.55%
(continued on next page)

Recurring Contract Expenses (continued)
Capital Preservation Plus Lifetime Income Option Total Variable Account Charges (including this option only) In addition to the charge assessed to variable account allocations, allocations made to the Guaranteed Term Options or Target Term Options will be assessed a fee of 1.00%.¹³	1.00%¹⁴ 2.10%
Capital Preservation Plus Option (available for 150 days after the later of March 1, 2005 or the date state approval is received for the Capital Preservation Plus Lifetime Income Option) Total Variable Account Charges (including this option only) In addition to the charge assessed to variable account allocations, allocations made to the Guaranteed Term Options or Target Term Options will be assessed a fee of 0.50%.	0.50% 1.60%
Additional Optional Riders (as a percentage of the Current Income Benefit Base)¹⁵
5% Lifetime Income Option (available in New York only)	1.00%¹⁶
7% Lifetime Income Option (not available in New York)	1.00%¹⁷
Spousal Continuation Benefit	0.15%¹⁸

The next table shows the fees and expenses that a contract owner would pay if he/she elected all of the optional benefits available under the contract (and the most expensive of mutually exclusive optional benefits).

Summary of Maximum Contract Expenses
Variable Account Charge (applicable to all contracts)	1.10%
Combination Enhanced Death Benefit II Option	0.45%
Beneficiary Protector II Option	0.35%
Spousal Protection Annuity II Option	0.20%
3% Extra Value Option	0.45%
Capital Preservation Plus Lifetime Income Option	1.00%
Maximum Possible Total Variable Account Charges	3.55%

¹ Range of CDSC over time:

Number of Completed Years from Date of Purchase Payment	0	1	2	3	4	5	6	7
CDSC Percentage	7%	7%	6%	5%	4%	3%	2%	0%

Some state jurisdictions require a lower CDSC schedule. Please refer to your contract for state specific information.

Each contract year, the contract owner may withdraw without a CDSC the greater of:

(1)10% of the net difference of purchase payments that are subject to CDSC minus purchase payments surrendered that were subject to CDSC; or

(2)any amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code.

This free withdrawal privilege is non-cumulative. Free amounts not taken during any given contract year cannot be taken as free amounts in a subsequent contract year. The Internal Revenue Code may impose restrictions on surrenders from contracts issued as Tax Sheltered Annuities.

² Nationwide may assess a loan processing fee at the time each new loan is processed. Currently, Nationwide does not assess a loan processing fee. Loans are only available for contracts issued as Tax Sheltered Annuities.

³ Nationwide will charge between 0% and 5% of purchase payments for premium taxes levied by state or other government entities.

⁴ The Contract Maintenance Charge is deducted annually from all contracts containing less than $50,000 on each contract anniversary. This charge is permanently waived for any contract valued at $50,000 or more on any contract anniversary.

⁵ The loan interest rate is determined, based on market conditions, at the time of loan application or issuance. The loan balance in the collateral fixed account is credited with interest at 2.25% less than the loan interest rate. Thus, the net loan interest charge is an annual rate of 2.25%, which is applied against the outstanding loan balance.

⁶ These charges apply only to sub-account allocations. They do not apply to allocations made to the fixed account or to the Guaranteed Term Options. They are charged on a daily basis at the annualized rate noted above.

⁷ The One-Year Enhanced Death Benefit II Option is only available for contracts with annuitants age 80 or younger at the time of application.

⁸ The One-Month Enhanced Death Benefit II Option is only available for contracts with annuitants age 80 or younger at the time of application.

⁹ The Combination Enhanced Death Benefit II Option is only available for contracts with annuitants age 75 or younger at the time of application.

¹⁰ The Combination Enhanced Death Benefit Option is only available for contracts with annuitants age 80 or younger at the time of application.

¹¹ The Beneficiary Protector II Option is only available for contracts with annuitants age 75 or younger at the time of application.

¹² Nationwide will discontinue deducting the charge associated with the 3% Extra Value Option 7 years from the date the contract was issued.

¹³ Currently, the Guaranteed Term Option/Target Term Option charge associated with the Capital Preservation Plus Lifetime Income Option is equal to a reduction in crediting rates of 0.60%.

¹⁴ Currently, the variable account charge associated with the Capital Preservation Plus Lifetime Income Option is equal to an annualized rate of 0.60% of the daily net assets of the variable account.

¹⁵For information about how the Current Income Benefit Base is calculated see “Determination of the Income Benefit Base Prior to the First Surrender” later in this prospectus.

¹⁶ Currently, the charge associated with the 5% Lifetime Income Option is equal to 0.60% of the current income benefit base.

¹⁷ Currently, the charge associated with the 7% Lifetime Income Option is equal to 0.70% of the current income benefit base.

¹⁸ The Spousal Continuation Benefit is only available for election if and when either of the Lifetime Income Options is elected.

Underlying Mutual Fund Annual Expenses

The next table shows the minimum and maximum total operating expenses charged by the underlying mutual funds periodically during the life of the contract. The table does not reflect Short-Term Trading Fees. More detail concerning each underlying mutual fund's fees and expenses is contained in the prospectus for each underlying mutual fund.

Total Annual Underlying Mutual Fund Operating Expenses	Minimum	Maximum

(expenses that are deducted from underlying mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses, as a percentage of average underlying mutual fund assets)	0.25%	11.49%

The minimum and maximum underlying mutual fund operating expenses indicated above do not reflect voluntary or contractual reimbursements and/or waivers applied to some underlying mutual funds. Therefore, actual expenses could be lower. Refer to the underlying mutual fund prospectuses for specific expense information.

Example

This Example is intended to help contract owners compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, variable account annual expenses, and underlying mutual fund fees and expenses. The Example does not reflect premium taxes or Short-Term Trading Fees which, if reflected, would result in higher expenses.

The Example assumes:

·	a $10,000 investment in the contract for the time periods indicated;

·	a 5% return each year;

·	the maximum and the minimum fees and expenses of any of the underlying mutual funds;

·	Contingent Deferred Sales Charges;

·	A $30 Contract Maintenance Charge expressed as a percentage of the average contract account size; and

·	the total variable account charges associated with the most expensive combination of optional benefits (3.55%).

For those contracts that do not elect the most expensive combination of optional benefits, the expenses would be lower.

	If you surrender your contract at the end of the applicable time period				If you do not surrender your contract				If you annuitize your contract at the end of the applicable time period
	1 Yr.	3 Yrs.	5 Yrs.	10 Yrs.	1 Yr.	3 Yrs.	5 Yrs.	10 Yrs.	1 Yr.	3 Yrs.	5 Yrs.	10 Yrs.
Maximum Total Underlying Mutual Fund Operating Expenses (11.49%)	2,241	4,765	6,722	10,034	1,611	4,315	6,452	10,034	*	4,315	6,452	10,034
Minimum Total Underlying Mutual Fund Operating Expenses (0.25%)	1,061	1,750	2,453	4,442	431	1,300	2,183	4,442	*	1,300	2,183	4,442

*The contracts sold under this prospectus do not permit annuitization during the first two contract years.

Synopsis of the Contracts

The contracts described in this prospectus are individual flexible purchase payment contracts.

The contracts can be categorized as:

·	Charitable Remainder Trusts;

·	Individual Retirement Annuities ("IRAs");

·	Investment-Only Contracts (Qualified Plans);

·	Non-Qualified Contracts;

·	Roth IRAs;

·	Simplified Employee Pension IRAs ("SEP IRAs");

·	Simple IRAs; and

·	Tax Sheltered Annuities (Non-ERISA).

For more detailed information with regard to the differences in contract types, please see Appendix C: Contract Types and Tax Information later in this prospectus.

Purpose of the Contract

The annuity described in this prospectus is intended to provide benefits to a single individual and his/her beneficiaries. It is not intended to be used:

·	by institutional investors;

·	in connection with other Nationwide contracts that have the same annuitant; or

·	in connection with other Nationwide contracts that have different annuitants, but the same contract owner.

By providing these annuity benefits, Nationwide assumes certain risks. If Nationwide determines that the risks it intended to assume in issuing the contract have been altered by misusing the contract as described above, Nationwide reserves the right to take any action it deems necessary to reduce or eliminate the altered risk, including, but not limited to, rescinding the contract and returning the contract value (less any applicable Contingent Deferred Sales Charge and/or market value adjustment). Nationwide also reserves the right to take any action it deems necessary to reduce or eliminate altered risk resulting from materially false, misleading, incomplete or otherwise deficient information provided by the contract owner.

Minimum Initial and Subsequent Purchase Payments

Contract Type	Minimum Initial Purchase Payment*	Minimum Subsequent Payments**
Charitable Remainder Trust	$5,000	$500
IRA	$3,000	$500
Investment-Only	$3,000	$500
Non-Qualified	$5,000	$500
Roth IRA	$3,000	$500
SEP IRA	$3,000	$500
Simple IRA	$3,000	$500
Tax Sheltered Annuity	$3,000	$500

*A contract owner will meet the minimum initial purchase payment requirement by making purchase payments equal to the required minimum over the course of the first contract year.

**For subsequent purchase payments sent via electronic deposit, the minimum subsequent purchase payment is $50.

Subsequent purchase payments may not be permitted in all states.

If the contract owner elects the 3% Extra Value Option, amounts credited to the contract in excess of total purchase payments may not be used to meet the minimum initial and subsequent purchase payment requirements.

Guaranteed Term Options

Guaranteed Term Options are separate investment options under the contract. The minimum amount that may be allocated to a Guaranteed Term Option is $1,000.

Credits on Purchase Payments

Purchase Payment Credits ("PPCs") are additional credits that Nationwide will apply to a contract when cumulative purchase payments reach certain aggregate levels.

Each time a contract owner submits a purchase payment, Nationwide will perform a calculation to determine if and how many PPCs are payable as a result of that particular deposit.

PPCs are considered earnings, not purchase payments, and they will be allocated in the same proportion that purchase payments are allocated on the date the PPCs are applied.

If the contract owner cancels the contract pursuant to the contractual free-look provision, Nationwide will recapture all PPCs applied to the contract. In those states that require the return of purchase payments for IRAs that are surrendered pursuant to the contractual free-look, Nationwide will recapture all PPCs, but under no circumstances will the amount returned to the contract owner be less than the purchase payments made to the contract. In those states that allow a return of contract value, the contract owner will retain any earnings attributable to the PPCs, but all losses attributable to the PPCs will be incurred by Nationwide.

All PPCs are fully vested after the end of the contractual free-look period.

For further information on PPCs, please see "Purchase Payment Credits" later in this prospectus.

Charges and Expenses

Mortality and Expense Risk and Administrative Charges

Nationwide deducts a mortality and expense risk charge and an administrative charge from the variable account. The mortality and expense risk charge is computed on a daily basis and is equal to an annualized rate of 0.90% of the daily net assets of the variable account. The administrative charge is computed on a daily basis and is equal to an annualized rate of 0.20% of the daily net assets of the variable account.

Contract Maintenance Charge

A $30 Contract Maintenance Charge is assessed on each contract anniversary and upon full surrender of the contract. If, on any contract anniversary (or on the date of a full surrender) the contract value is $50,000 or more, Nationwide will waive the Contract Maintenance Charge from that point forward.

Contingent Deferred Sales Charge

Nationwide does not deduct a sales charge from purchase payments upon deposit into the contract. However, Nationwide may deduct a Contingent Deferred Sales Charge ("CDSC") if any amount is withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses. The amount of the CDSC will not exceed 7% of purchase payments surrendered.

Death Benefit Options

In lieu of the standard death benefit, an applicant may elect a death benefit option at the time of application, as follows:

Death Benefit Options	Charges*
One-Year Enhanced Death Benefit II Option¹	0.15%
One-Year Enhanced Death Benefit Option²	0.10%
One-Month Enhanced Death Benefit II Option³	0.35%
One-Month Enhanced Death Benefit Option⁴	0.30%
Combination Enhanced Death Benefit II Option⁵	0.45%
Combination Enhanced Death Benefit Option⁶	0.40%

*The charges shown are the annualized rates charged as a percentage of the daily net assets of the variable account.

¹The One-Year Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) and is only available for contracts with annuitants age 80 or younger at the time of application.

²The One-Year Enhanced Death Benefit Option is only available until September 1, 2004 (or a later date if state law requires).

³The One-Month Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) and is only available for contracts with annuitants age 80 or younger at the time of application.

⁴The One-Month Enhanced Death Benefit Option is only available until September 1, 2004 (or a later date if state law requires).

⁵The Combination Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) and is only available for contracts with annuitants age 75 or younger at the time of application.

⁶The Combination Enhanced Death Benefit Option is only available until September 1, 2004 (or a later date if state law requires) and is only available for contracts with annuitants age 80 or younger at the time of application.

For more information about the standard and optional death benefits, please see the "Death Benefit Calculations" provision.

Spousal Protection Annuity Options

Spousal Protection Annuity Options	Charges*
Spousal Protection Annuity II Option¹	0.20%
Spousal Protection Annuity Option²	0.10%

*The charges shown are the annualized rates charged as a percentage of the daily net assets of the variable account.

¹The Spousal Protection Annuity II Option is only available beginning September 1, 2004 (or a later date if state law requires).

²The Spousal Protection Annuity Option is only available until September 1, 2004 (or until state approval of the price increase is received).

Beneficiary Protector II Option

A Beneficiary Protector II Option is available under the contract at the time of application. This option is only available for contracts with annuitants age 75 or younger at

the time of application. If the contract owner of an eligible contract elects the Beneficiary Protector II Option, Nationwide will deduct an additional charge at an annualized rate of 0.35% of the daily net assets of the variable account. Additionally, allocations made to the fixed account and the Guaranteed Term Options will be assessed a fee of 0.35%.

3% Extra Value Option

A 3% Extra Value Option is available under the contract at the time of application. If the contract owner elects the 3% Extra Value Option, Nationwide will assess a charge equal to an annualized rate of 0.45% of the daily net assets of the variable account. In addition to the charge assessed to the variable account, allocations made to the fixed account and the Guaranteed Term Options will be assessed a fee of 0.45%. Nationwide will discontinue deducting the charge at the end of the 7^th contract year. Under certain circumstances, Nationwide may restrict the allocation of purchase payments to the fixed account when the contract owner elects or has elected the 3% Extra Value Option. These restrictions may be imposed at Nationwide's discretion when economic conditions are such that Nationwide is unable to recoup the cost of providing the up-front Extra Value Option credits.

Capital Preservation Plus Option

The Capital Preservation Plus Option is available for 150 days after the later of March 1, 2005 or the date state approval is received for the Capital Preservation Plus Lifetime Income Option. If the option is still available, it may only be elected at the time of application. The Capital Preservation Plus Option may not be elected if the Capital Preservation Plus Lifetime Income Option, the 7% Lifetime Income Option is elected or the 5% Lifetime Income Option is elected.

If the contract owner or applicant elects the Capital Preservation Plus Option, Nationwide will deduct an additional charge at an annualized rate not to exceed 0.50% of the daily net assets of the variable account. Additionally, allocations made to the Guaranteed Term Options or Target Term Options will be assessed a fee of not more than 0.50%. Consequently, the interest rate of return for assets in the Guaranteed Term Option/Target Term Option will be lowered due to the assessment of this charge.

Capital Preservation Plus Lifetime Income Option

Effective May 1, 2007, the Capital Preservation Plus Lifetime Income Option may only be elected at the time of application. For contracts issued prior to May 1, 2007, the Capital Preservation Plus Lifetime Income Option can be elected within 60 days after the contract issue date. The primary contract owner (or the primary annuitant in the case of a non-natural contract owner) must be age 35 or older at the time of application. The Capital Preservation Plus Lifetime Income Option may not be elected if the following optional benefits are elected: 7% the Lifetime Income Option, the 5% Lifetime Income Option or the Capital Preservation Plus Option.

If the contract owner or applicant elects the Capital Preservation Plus Lifetime Income Option, Nationwide will deduct an additional charge at an annualized rate not to exceed 1.00% of the daily net assets of the variable account. Currently, the variable account charge is an annualized rate of 0.60% of the daily net assets of the variable account. Additionally, the interest rate of return credited to allocations made to the Guaranteed Term Options or Target Term Options will be reduced by not more than 1.00%. Currently, the interest rate deduction is 0.60%.

7% Lifetime Income Option

For contracts issued on or after September 4, 2007, the 7% Lifetime Income Option may only be elected at the time of application. Contracts issued between May 1, 2007 and September 4, 2007 may not elect the 7% Lifetime Income Benefit Option. For contracts issued prior to May 1, 2007, the 7% Lifetime Income Option may be elected at any time. The primary contract owner (or the primary annuitant in the case of a non-natural contract owner) must be between age 45 and 85 at the time the option is elected. The 7% Lifetime Income Option may not be elected if any of the following optional benefits are elected: 5% Lifetime Income Option, Capital Preservation Plus Option, or the Capital Preservation Plus Lifetime Income Option.

If the contract owner or applicant elects the 7% Lifetime Income Option, Nationwide will deduct an annual charge not to exceed 1.00% of the Current Income Benefit Base, which is the amount upon which the annual benefit is based. The current charge for the 7% Lifetime Income Option is 0.70% of the Current Income Benefit Base. The charge is deducted on each anniversary of the election of the 7% Lifetime Income Option and is taken from the sub-accounts proportionally based on contract allocations at the time the charge is deducted.

5% Lifetime Income Option

Effective, May 1, 2007, the 5% Lifetime Income Option may only be elected at the time of application. The primary contract owner (or the primary annuitant in the case of a non-natural contract owner) must be between age 45 and 85 at the time the option is elected. The 5% Lifetime Income Option may not be elected if any of the following optional benefits are elected: the 7% Lifetime Income Option, Capital Preservation Plus Option, or the Capital Preservation Plus Lifetime Income Option.

If the contract owner or applicant elects the 5% Lifetime Income Option, Nationwide will deduct an annual charge not to exceed 1.00% of the Current Income Benefit Base, which is the amount upon which the annual benefit is based. The current charge for the 5% Lifetime Income Option is 0.60% of the Current Income Benefit Base. The charge is deducted on each anniversary of the election of the 5% Lifetime Income Option and is taken from the sub-accounts proportionally based on contract allocations at the time the charge is deducted.

Spousal Continuation Benefit

The Spousal Continuation Benefit is only available for election if and when either the 5% or the 7% Lifetime Income Option is elected. The contract owner’s spouse (or the primary annuitant’s spouse in the case of a non-natural contract owner) must be between age 45 and 85 at the time the option is elected. If the contract owner or applicant elects the Spousal Continuation Benefit, Nationwide will deduct an annual charge of 0.15% of the Current Income Benefit Base.

The charge is deducted at the same time and in the same manner as the Lifetime Income Option you elected.

Charges for Optional Benefits

The charges associated with optional benefits are generally only assessed prior to annuitization. However, the charge associated with the 3% Extra Value Option is assessed for the first 7 contract years. Therefore, if a contract owner that elected the 3% Extra Value Option annuitizes before the end of the 7^th contract year, the charge for that option will continue to be assessed after annuitization until the end of the 7^th contract year.

Annuity Payments

Annuity payments begin on the annuitization date and will be based on the annuity payment option chosen prior to annuitization. Annuity payments will generally be received within 7 to 10 days after each annuity payment date.

Taxation

How a contract is taxed depends on the type of contract issued and the purpose for which the contract is purchased. Nationwide will charge against the contract any premium taxes levied by any governmental authority (see "Federal Tax Considerations" in Appendix C: Contract Types and Tax Information and "Premium Taxes").

Ten Day Free-look

Under state insurance laws, you have the right, during a limited period of time, to examine your contract and decide if you want to keep it or cancel it. This right is referred to as your “free look” right. The length of this time period depends on the law of your state, and may vary depending on whether your purchase is a replacement or not. Check your contract for more details about your free look right.

Condensed Financial Information

The value of an accumulation unit is determined on the basis of changes in the per share value of the underlying mutual funds and the assessment of variable account charges which may vary from contract to contract (for more information on the calculation of accumulation unit values, see "Determining Variable Account Value – Valuing an Accumulation Unit"). Please refer to Appendix B for information regarding the minimum and maximum class of accumulation unit values. All classes of accumulation unit values may be obtained, free of charge, by contacting Nationwide’s home office at the telephone number listed on page 1 of this prospectus.

Financial Statements

Financial statements for the variable account and consolidated financial statements for Nationwide are located in the Statement of Additional Information. A current Statement of Additional Information may be obtained, without charge, by contacting Nationwide's home office at the telephone number listed on page 1 of this prospectus.

Nationwide Life Insurance Company

Nationwide is a stock life insurance company organized under Ohio law in March 1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider of life insurance, annuities and retirement products. It is admitted to do business in all states, the District of Columbia and Puerto Rico.

Nationwide is a member of the Nationwide group of companies. Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company (the "Companies") are the ultimate controlling persons of the Nationwide group of companies. The Companies were organized under Ohio law in December 1925 and 1933 respectively. The Companies engage in a general insurance and reinsurance business, except life insurance.

Nationwide Investment Services Corporation

The contracts are distributed by the general distributor, Nationwide Investment Services Corporation ("NISC"), One Nationwide Plaza, Columbus, Ohio 43215. NISC is a wholly owned subsidiary of Nationwide.

Investing in the Contract

The Variable Account and Underlying Mutual Funds

Nationwide Variable Account-II is a variable account that invests in the underlying mutual funds listed in Appendix A. Nationwide established the variable account on October 7, 1981 pursuant to Ohio law. Although the variable account is registered with the SEC as a unit investment trust pursuant to the Investment Company Act of 1940 ("1940 Act"), the SEC does not supervise the management of Nationwide or the variable account.

Income, gains, and losses credited to, or charged against, the variable account reflect the variable account's own investment experience and not the investment experience of Nationwide's other assets. The variable account's assets are held separately from Nationwide's assets and are not chargeable with liabilities incurred in any other business of Nationwide. Nationwide is obligated to pay all amounts promised to contract owners under the contracts.

The variable account is divided into sub-accounts, each corresponding to a single underlying mutual fund. Nationwide uses the assets of each sub-account to buy shares of the underlying mutual funds based on contract owner instructions.

Each underlying mutual fund's prospectus contains more detailed information about that fund. Prospectuses for the underlying mutual funds should be read in conjunction with this prospectus.

Underlying mutual funds in the variable account are NOT publicly traded mutual funds. They are only available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies, or in some cases, through participation in certain qualified pension or retirement plans.

The investment advisers of the underlying mutual funds may manage publicly traded mutual funds with similar names and investment objectives. However, the underlying mutual funds are NOT directly related to any publicly traded mutual fund. Contract owners should not compare the performance of a publicly traded fund with the performance of underlying

mutual funds participating in the variable account. The performance of the underlying mutual funds could differ substantially from that of any publicly traded funds.

The particular underlying mutual funds available under the contract may change from time to time. Specifically, underlying mutual funds or underlying mutual fund share classes that are currently available may be removed or closed off to future investment. New underlying mutual funds or new share classes of currently available underlying mutual funds may be added. Contract owners will receive notice of any such changes that affect their contract. Additionally, not all of the underlying mutual funds are available in every state.

In the future, additional underlying mutual funds managed by certain financial institutions, brokerage firms or their affiliates may be added to the variable account. These additional underlying mutual funds may be offered exclusively to purchasing customers of the particular financial institution or brokerage firm, or through other exclusive distribution arrangements.

Voting Rights

Contract owners who have allocated assets to the underlying mutual funds are entitled to certain voting rights. Nationwide will vote contract owner shares at special shareholder meetings based on contract owner instructions. However, if the law changes and Nationwide is allowed to vote in its own right, it may elect to do so.

Contract owners with voting interests in an underlying mutual fund will be notified of issues requiring the shareholders' vote as soon as possible before the shareholder meeting. Notification will contain proxy materials and a form with which to give Nationwide voting instructions. Nationwide will vote shares for which no instructions are received in the same proportion as those that are received. What this means to you is that when only a small number of contract owners vote, each vote has a greater impact and may control the outcome.

The number of shares which a contract owner may vote is determined by dividing the cash value of the amount they have allocated to an underlying mutual fund by the net asset value of that underlying mutual fund. Nationwide will designate a date for this determination not more than 90 days before the shareholder meeting.

Material Conflicts

The underlying mutual funds may be offered through separate accounts of other insurance companies, as well as through other separate accounts of Nationwide. Nationwide does not anticipate any disadvantages to this. However, it is possible that a conflict may arise between the interests of the variable account and one or more of the other separate accounts in which these underlying mutual funds participate.

Material conflicts may occur due to a change in law affecting the operations of variable life insurance policies and variable annuity contracts, or differences in the voting instructions of the contract owners and those of other companies. If a material conflict occurs, Nationwide will take whatever steps are necessary to protect contract owners and variable annuity payees, including withdrawal of the variable account from participation in the underlying mutual fund(s) involved in the conflict.

Substitution of Securities

Nationwide may substitute, eliminate, or combine shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs:

(1)	shares of a current underlying mutual fund are no longer available for investment; or

(2)	further investment in an underlying mutual fund is inappropriate.

No substitution, elimination, or combination of shares may take place without the prior approval of the SEC.

Guaranteed Term Options

Guaranteed Term Options ("GTOs") are separate investment options under the contract. The minimum amount that may be allocated to a GTO is $1,000. Allocations to a GTO are held in a separate account, established by Nationwide pursuant to Ohio law, to aid in the reserving and accounting for Guaranteed Term Option obligations. The separate account's assets are held separately from Nationwide's other assets and are not chargeable with liabilities incurred in any other business of Nationwide. However, the general assets of Nationwide are available for the purpose of meeting the guarantees of any GTO, subject to Nationwide's claims-paying ability. A GTO prospectus should be read along with this prospectus.

Guaranteed Term Options provide a guaranteed rate of interest over four different maturity durations: three (3), five (5), seven (7) or ten (10) years. Note: The guaranteed term may last for up to 3 months beyond the 3, 5, 7, or 10 year period since every guaranteed term will end on the final day of a calendar quarter.

For the duration selected, Nationwide will declare a guaranteed interest rate. The guaranteed interest rate will be credited to amounts allocated to the GTO(s) unless a distribution is taken before the maturity date. If a distribution occurs before the maturity date, the amount distributed will be subject to a market value adjustment. A market value adjustment can increase or decrease the amount distributed depending on fluctuations in swap rates. No market value adjustment will be applied if GTO allocations are held to maturity.

Because a market value adjustment can affect the value of a distribution, its effects should be carefully considered before surrendering or transferring from GTOs. Please refer to the prospectus for the GTOs for further information.

Guaranteed Term Options are available only during the accumulation phase of a contract. They are not available after the annuitization date. In addition, GTOs are not available for use with Asset Rebalancing, Dollar Cost Averaging, or Systematic Withdrawals.

Guaranteed Term Options may not be available in every state.

GTO Charges Assessed for Certain Optional Benefits

For contract owners that elect the following optional benefits, allocations made to the GTOs will be assessed a fee as indicated:

Optional Benefit	GTO Charge
Beneficiary Protector II Option	0.35%
Extra Value Option	0.45%
Capital Preservation Plus Option	0.50%
Capital Preservation Plus Lifetime Income Option	up to 1.00%*

*Currently, the GTO charge associated with this option is 0.60%.

The GTO charges are assessed by decreasing the interest rate of return credited to assets allocated to the Guranteed Term Options.

Target Term Options

Due to certain state requirements, in some state jurisdictions, Nationwide uses Target Term Options ("TTOs") instead of GTOs in connection with the Capital Preservation Plus Option and the Capital Preservation Plus Lifetime Income Option. Target Term Options are not available separate from these options.

For all material purposes, GTOs and TTOs are the same. Target Term Options are managed and administered identically to GTOs. The distinction is that the interest rate associated with TTOs is not guaranteed as it is in GTOs. However, because the options are managed and administered identically, the result to the investor is the same.

All references in this prospectus to GTOs in connection with the Capital Preservation Plus Option and the Capital Preservation Plus Lifetime Income Option will also mean TTOs (in applicable jurisdictions). Please refer to the prospectus for the Guaranteed Term Options/Target Term Options for more information.

The Fixed Account

The fixed account is an investment option that is funded by assets of Nationwide's general account. The general account contains all of Nationwide's assets other than those in this and other Nationwide separate accounts and is used to support Nationwide's annuity and insurance obligations. The general account is not subject to the same laws as the variable account and the SEC has not reviewed material in this prospectus relating to the fixed account.

Purchase payments will be allocated to the fixed account by election of the contract owner. Nationwide reserves the right to limit or refuse purchase payments allocated to the fixed account at its sole discretion. Generally, Nationwide will invoke this right when interest rates are low by historical standards.

Under certain circumstances, Nationwide may restrict the allocation of purchase payments to the fixed account when the contract owner elects or has elected the 3% Extra Value Option. These restrictions may be imposed at Nationwide's discretion when economic conditions are such that Nationwide is unable to recoup the cost of providing the up-front Extra Value Option credits.

The investment income earned by the fixed account will be allocated to the contracts at varying guaranteed interest rate(s) depending on the following categories of fixed account allocations:

New Money Rate– The rate credited on the fixed account allocation when the contract is purchased or when subsequent purchase payments are made. Subsequent purchase payments may receive different New Money Rates than the rate when the contract was issued, since the New Money Rate is subject to change based on market conditions.

Variable Account to Fixed Rate– Allocations transferred from any of the underlying investment options in the variable account to the fixed account may receive a different rate. The rate may be lower than the New Money Rate. There may be limits on the amount and frequency of movements from the variable account to the fixed account.

Renewal Rate– The rate available for maturing fixed account allocations which are entering a new guarantee period. The contract owner will be notified of this rate in a letter issued with the quarterly statements when any of the money in the contract owner's fixed account matures. At that time, the contract owner will have an opportunity to leave the money in the fixed account and receive the Renewal Rate or the contract owner can move the money to any of the other underlying mutual fund options.

·	Dollar Cost Averaging Rate– From time to time, Nationwide may offer a more favorable rate for an initial purchase payment into a new contract when used in conjunction with a dollar cost averaging program.

All of these rates are subject to change on a daily basis; however, once applied to the fixed account, the interest rates are guaranteed until the end of the calendar quarter during which the 12 month anniversary of the fixed account allocation occurs.

Credited interest rates are annualized rates – the effective yield of interest over a one-year period. Interest is credited to each contract on a daily basis. As a result, the credited interest rate is compounded daily to achieve the stated effective yield.

The guaranteed rate for any purchase payment will be effective for not less than twelve months. Nationwide guarantees that the rate will not be less than the minimum interest rate required by applicable state law.

Any interest in excess of the minimum interest rate required by applicable state law will be credited to fixed account allocations at Nationwide's sole discretion. The contract owner assumes the risk that interest credited to fixed account allocations may not exceed the minimum interest rate required by applicable state law for any given year.

Nationwide guarantees that the fixed account contract value will not be less than the amount of the purchase payments allocated to the fixed account, plus interest credited as described above, less any surrenders and any applicable charges including CDSC. Additionally, Nationwide guarantees that interest credited to fixed account allocations will not be less than the minimum interest required by applicable state law.

Fixed Account Interest Rate Guarantee Period

The fixed account interest rate guarantee period is the period of time that the fixed account interest rate is guaranteed to remain the same. During a fixed account interest rate guarantee period, transfers cannot be made from the fixed account, and amounts transferred to the fixed account must remain on deposit. If contract value is allocated to the fixed account and the contract owner subsequently elects the Capital Preservation Plus Option or the Capital Preservation Plus Lifetime Income Option, the current fixed account interest rate guarantee period will terminate. If such contract owner allocates all or part of the Non-Guaranteed Term Option component of the Capital Preservation Plus Option or the Capital Preservation Plus Lifetime Income Option to the fixed account, the allocation will be credited interest at the then current Renewal Rate and a new fixed account interest rate guarantee period will begin.

For new purchase payments allocated to the fixed account and transfers to the fixed account, the fixed account interest rate guarantee period begins on the date of deposit or transfer and ends on the one year anniversary of the deposit or transfer. The guaranteed interest rate period may last for up to 3 months beyond the 1 year anniversary because guaranteed terms end on the last day of a calendar quarter.

The fixed account interest rate guarantee period is distinct from the maturity durations associated with Guaranteed Term Options.

Fixed Account Charges Assessed for Certain Optional Benefits

All interest rates credited to the fixed account will be determined as described above. Based on the criteria listed above, it is possible for a contract with various optional benefits to receive the same rate of interest as a contract with no optional benefits. However, for contract owners that elect certain optional benefits under the contract, a charge is assessed to assets allocated to the fixed account. Consequently, even though the guaranteed interest rate credited does not change, the charge assessed for the optional benefit will result in investment returns lower than the interest rate credited, as specified below:

Optional Benefit	Fixed Account Charges
Beneficiary Protector II Option	0.35%*
Extra Value Option	0.45%**

*The fixed account charge associated with this option will not be assessed after the applicable benefits are applied according to the terms of the option.

**The fixed account charge associated with this option will not be assessed after the end of the 7^th contract year.

Although there is a fee assessed to the assets in the fixed account when either of the above optional benefits are elected, Nationwide guarantees that the interest rate credited to any assets in the fixed account will never be less than the minimum interest rate required by applicable state law.

The Contract in General

Nationwide offers a wide array of such products, many with different charges, benefit features and underlying investment options. This process of comparison and analysis should aid in determining whether the purchase of the contract described in this prospectus is consistent with your investment objectives, risk tolerance, investment time horizon, marital status, tax situation and other personal characteristics and needs. Not all benefits, programs, features and investment options described in this prospectus are available or approved for use in every state.

In order to comply with the USA Patriot Act and rules promulgated thereunder, Nationwide has implemented procedures designed to prevent contracts described in this prospectus from being used to facilitate money laundering or the financing of terrorist activities.

If this contract is purchased to replace another variable annuity, be aware that the mortality tables used to determine the amount of annuity payments may be less favorable than those in the contract being replaced.

These contracts are offered to customers of various financial institutions and brokerage firms. The individual financial institution or brokerage firm may limit the availability of certain features or optional benefits in accordance with their internal policies. No financial institution or brokerage firm is responsible for the guarantees under the contracts. Guarantees under the contracts are the sole responsibility of Nationwide.

In general, deferred variable annuities are long-term investments; they are not intended as short-term investments. Accordingly, Nationwide has designed the contract to offer features, pricing, and investment options that encourage long-term ownership. It is very important that contract owners and prospective contract owners understand all the costs associated with owning a contract, and if and how those costs change during the lifetime of the contract. Contract and optional charges may not be the same in later contract years as they are in early contract years. The various contract and optional benefit charges are assessed in order to compensate Nationwide for administrative services, distribution and operational expenses, and assumed actuarial risks associated with the contract.

Following is a discussion of some relevant factors that may be of particular interest to prospective investors.

Distribution, Promotional and Sales Expenses

Nationwide pays commissions to the firms that sell the contracts. The maximum gross commission that Nationwide will pay on the sale of the contracts is 7.00%. Note that the individual registered representatives typically receive only a portion of this amount; the remainder is retained by the firm. Nationwide may also, instead of a premium-based commission, pay an asset-based commission (sometimes referred to as "trails" or "residuals"), or a combination of the two.

In addition to or partially in lieu of commission, Nationwide may also pay the selling firms a marketing allowance, which is based on the firm’s ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities that may contribute to the promotion and marketing of Nationwide's products. For more information on the exact compensation arrangement associated with this contract, please consult your registered representative.

Underlying Mutual Fund Payments

Nationwide’s Relationship with the Underlying Mutual Funds

The underlying mutual funds incur expenses each time they sell, administer, or redeem their shares. The variable account aggregates contract owner purchase, redemption, and transfer requests and submits net or aggregated purchase/redemption requests to each underlying mutual fund daily. The variable account (not the contract owners) is the underlying mutual fund shareholder. When the variable account aggregates transactions, the underlying mutual fund does not incur the expense of processing individual transactions it would normally incur if it sold its shares directly to the public. Nationwide incurs these expenses instead.

Nationwide also incurs the distribution costs of selling the contract (as discussed above), which benefit the underlying mutual funds by providing contract owners with sub-account options that correspond to the underlying mutual funds.

An investment adviser or subadviser of an underlying mutual fund or its affiliates may provide Nationwide or its affiliates with wholesaling services that assist in the distribution of the contract and may pay Nationwide or its affiliates to participate in educational and/or marketing activities. These activities may provide the adviser or subadviser (or their affiliates) with increased exposure to persons involved in the distribution of the contract.

Types of Payments Nationwide Receives

In light of the above, the underlying mutual funds and their affiliates make certain payments to Nationwide or its affiliates (the “payments”). The amount of these payments is typically based on a percentage of assets invested in the underlying mutual funds attributable to the contracts and other variable contracts Nationwide and its affiliates issue, but in some cases may involve a flat fee. These payments may be used by us for any corporate purpose, which include reducing the prices of the contracts, paying expenses that Nationwide or its affiliates incur in promoting, marketing, and administering the contracts and the underlying mutual funds, and achieving a profit.

Nationwide or its affiliates receive the following types of payments:

Underlying mutual fund 12b-1 fees, which are deducted from underlying mutual fund assets;

Sub-transfer agent fees or fees pursuant to administrative service plans adopted by the underlying mutual fund, which may be deducted from underlying mutual fund assets; and

Payments by an underlying mutual fund’s adviser or subadviser (or its affiliates). Such payments may be derived, in whole or in part, from the advisory fee, which is deducted from underlying mutual fund assets and is reflected in mutual fund charges.

Furthermore, Nationwide benefits from assets invested in Nationwide’s affiliated underlying mutual funds (i.e., Nationwide Variable Insurance Trust) because its affiliates also receive compensation from the underlying mutual funds for investment advisory, administrative, transfer agency, distribution, and/or other services. Thus, Nationwide may receive more revenue with respect to affiliated underlying mutual funds than unaffiliated underlying mutual funds.

Nationwide took into consideration the anticipated payments from the underlying mutual funds when we determined the charges imposed under the contracts (apart from fees and expenses imposed by the underlying mutual funds). Without these payments, Nationwide would have imposed higher charges under the contract.

Amount of Payments Nationwide Receives

For the year ended December 31, 2006, the underlying mutual fund payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.65% (as a percentage of the average daily net assets invested in the underlying mutual funds) offered through this contract or other variable contracts that Nationwide and its affiliates issue. Payments from investment advisers or subadvisers to participate in educational and/or marketing activities have not been taken into account in this percentage.

Most underlying mutual funds or their affiliates have agreed to make payments to Nationwide or its affiliates, although the applicable percentages may vary from underlying mutual fund to underlying mutual fund and some may not make any payments at all. Because the amount of the actual payments Nationwide and its affiliates receive depends on the assets of the underlying mutual funds attributable to the contract, Nationwide and its affiliates may receive higher payments from underlying mutual funds with lower percentages (but greater assets) than from underlying mutual funds that have higher percentages (but fewer assets).

For additional information related to amount of payments Nationwide receives, go to www.nationwide.com.

Identification of Underlying Mutual Funds

Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following: investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency,

and fund expenses. Another factor Nationwide considers during the identification process is whether the underlying mutual fund’s adviser or subadviser is one of our affiliates or whether the underlying mutual fund, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates.

There may be underlying mutual funds with lower fees, as well as other variable contracts that offer underlying mutual funds with lower fees. You should consider all of the fees and charges of the contract in relation to its features and benefits when making your decision to invest. Please note that higher contract and underlying mutual fund fees and charges have a direct effect on your investment performance.

Profitability

Nationwide does consider profitability when determining the charges in the contract. In early contract years, Nationwide does not anticipate earning a profit, since that is a time when administrative and distribution expenses are typically higher. Nationwide does, however, anticipate earning a profit in later contract years. In general, Nationwide's profit will be greater the higher the investment return and the longer the contract is held.

Standard Charges and Deductions

Mortality and Expense Risk and Administrative Charges

Nationwide deducts a mortality and expense risk charge and an administrative charge from the variable account. The mortality and expense risk charge is computed on a daily basis and is equal to an annualized rate of 0.90% of the daily net assets of the variable account The administrative charge is computed on a daily basis and is equal to an annualized rate of 0.20% of the daily net assets of the variable account.

The mortality and expense risk charge is intended to compensate Nationwide for providing the insurance benefits under the contract, including the contract’s basic death benefit that provides guaranteed benefits to your beneficiaries even if the market declines and also the risk that persons we guarantee annuity payments to will live longer than our assumptions, The charge covers the risk that our assumptions about the mortality risks and expenses under this contract are incorrect and that we have agreed not to increase these charges over time despite our actual costs. The administrative charge covers administrative costs associated with providing contract benefits, including preparation of the contract and prospectus, confirmation statements, annual account statements and annual reports, legal and accounting fees as well as various related expenses. We may increase the administrative charge; however, any increase will only apply to contracts issued after the date of the increase. If there are any profits from the mortality and expense risk charge or the administrative charge, we may use such profits to finance the distribution of contracts.

Contract Maintenance Charge

Nationwide deducts a Contract Maintenance Charge of $30 on each contract anniversary that occurs before annuitization and upon full surrender of the contract. This charge reimburses Nationwide for administrative expenses involved in issuing and maintaining the contract.

If, on any contract anniversary (or on the date of a full surrender), the contract value is $50,000 or more, Nationwide will waive the Contract Maintenance Charge from that point forward.

The deduction of the Contract Maintenance Charge will be taken proportionately from each sub-account, the fixed account and the Guaranteed Term Options based on the value in each option as compared to the total contract value.

Nationwide will not increase the Contract Maintenance Charge. Nationwide will not reduce or eliminate the Contract Maintenance Charge where it would be discriminatory or unlawful.

Contingent Deferred Sales Charge

No sales charge deduction is made from purchase payments upon deposit into the contracts. However, if any part of the contract is surrendered, Nationwide may deduct a CDSC. The CDSC will not exceed 7% of purchase payments surrendered.

The CDSC is calculated by multiplying the applicable CDSC percentage (noted below) by the amount of purchase payments surrendered.

For purposes of calculating the CDSC, surrenders are considered to come first from the oldest purchase payment made to the contract, then the next oldest purchase payment, and so forth. Earnings are not subject to the CDSC, but may not be distributed prior to the distribution of all purchase payments. (For tax purposes, a surrender is usually treated as a withdrawal of earnings first.)

The CDSC applies as follows:

Number of Completed Years from Date of Purchase Payment	CDSC Percentage
0	7%
1	7%
2	6%
3	5%
4	4%
5	3%
6	2%
7	0%

Some state jurisdictions may require a lower CDSC schedule. Please refer to your contract for state specific information.

The CDSC is used to cover sales expenses, including commissions, production of sales material, and other promotional expenses. If expenses are greater than the CDSC, the shortfall will be made up from Nationwide's general assets, which may indirectly include portions of the variable account charges, since Nationwide may generate a profit from these charges.

All or a portion of any withdrawal may be subject to federal income taxes. Contract owners taking withdrawals before age 59½ may be subject to a 10% penalty tax.

Additional purchase payments made to the contract after receiving the benefit of a spousal protection option (if elected)

are subject to the CDSC provisions of the contract (see "Spousal Protection Annuity Options" on page 22).

Waiver of Contingent Deferred Sales Charge

Each contract year, the contract owner may withdraw without a CDSC the greater of:

(1)	10% of the net difference of purchase payments that are subject to CDSC minus purchase payments surrendered that were subject to CDSC; or

(2)	any amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code.

This CDSC-free withdrawal privilege is non-cumulative. Free amounts not taken during any given contract year cannot be taken as free amounts in a subsequent contract year.

Purchase payments surrendered under the CDSC-free withdrawal privilege are not, for purposes of other calculations under the contract, considered a surrender of purchase payments.

In addition, no CDSC will be deducted:

(1)	upon the annuitization of contracts which have been in force for at least 2 years;

(2)	upon payment of a death benefit. However, additional purchase payments made to the contract after receiving the benefit of a spousal protection option are subject to the CDSC provisions of the contract; or

(3)	from any values which have been held under a contract for at least 7 years.

No CDSC applies to transfers among sub-accounts or between or among the Guaranteed Term Options, the fixed account, or the variable account.

A contract held by a Charitable Remainder Trust (within the meaning of Internal Revenue Code Section 664) may withdraw CDSC-free the greater of the amount that would otherwise be available for withdrawal without a CDSC; and the difference between:

(a)	the contract value at the close of the day prior to the date of the withdrawal; and

(b)	the total purchase payments made to the contract (less an adjustment for amounts surrendered).

This contract is not designed for and does not support active trading strategies. In order to protect investors in this contract that do not utilize such strategies, Nationwide may initiate certain exchange offers intended to provide contract owners that meet certain criteria with an alternate variable annuity designed to accommodate active trading. If this contract is exchanged as part of an exchange offer, the exchange will be made on the basis of the relative net asset values of the exchanged contract. Furthermore, no CDSC will be assessed on the exchanged assets and Nationwide will "tack" the contract’s CDSC schedule onto the new contract. This means that the CDSC schedule will not start anew on the exchanged assets in the new contract; rather, the CDSC schedule from the exchanged contract will be applied to the exchanged assets both in terms of percentages and the number of completed contract years. This enables the contract owner to exchange into the new contract without having to start a new CDSC schedule on exchanged assets. However, if subsequent purchase payments are made to the new contract, they will be subject to any applicable CDSC schedule that is part of the new contract.

The CDSC will not be eliminated if to do so would be unfairly discriminatory or prohibited by state law.

The waiver of CDSC only applies to partial surrenders. If the contract owner elects to surrender the contract in full, where permitted by state law, Nationwide will assess a CDSC on the entire amount surrendered. For purposes of the CDSC free withdrawal privilege, a full surrender is:

·	multiple surrenders taken within a one-year period that deplete the entire contract value; or

·	any single surrender of 90% or more of the contract value.

Long-Term Care/Nursing Home and Terminal Illness Waiver

The contract includes a Long-Term Care/Nursing Home and Terminal Illness waiver at no additional charge.

Under this provision, no CDSC will be charged if:

(1)	the third contract anniversary has passed; and

(2)	the contract owner has been confined to a long-term care facility or hospital for a continuous 90-day period that began after the contract issue date; or

(3)	the contract owner has been diagnosed by a physician, at any time after contract issuance, to have a terminal illness; and

(4)	Nationwide receives and records such a letter from that physician indicating such diagnosis.

Written notice and proof of terminal illness or confinement for 90 days in a hospital or long term care facility must be received in a form satisfactory to Nationwide and recorded at Nationwide's home office prior to waiver of the CDSC.

In the case of joint ownership, the waivers will apply if either joint owner meets the qualifications listed above.

For those contracts that have a non-natural person as contract owner as an agent for a natural person, the annuitant may exercise the right of the contract owner for purposes described in this provision. If the non-natural contract owner does not own the contract as an agent for a natural person (e.g., the contract owner is a corporation or a trust for the benefit of an entity), the annuitant may not exercise the rights described in this provision.

Premium Taxes

Nationwide will charge against the contract value any premium taxes levied by a state or other government entity. Premium tax rates currently range from 0% to 5%. This range is subject to change. The method used to assess premium tax will be determined by Nationwide at its sole discretion in compliance with state law.

If applicable, Nationwide will deduct premium taxes from the contract either at:

(1)	the time the contract is surrendered;

(2)	annuitization; or

(3)	such earlier date as Nationwide becomes subject to premium taxes.

Premium taxes may be deducted from death benefit proceeds.

Short-Term Trading Fees

Some underlying mutual funds may assess (or reserve the right to assess) a short-term trading fee in connection with transfers from a sub-account that occur within 60 days after the date of allocation to the sub-account.

Short-term trading fees are intended to compensate the underlying mutual fund (and contract owners with interests allocated in the underlying mutual fund) for the negative impact on fund performance that may result from frequent, short-term trading strategies. Short-term trading fees are not intended to affect the large majority of contract owners not engaged in such strategies.

Any short-term trading fee assessed by any underlying mutual fund available in conjunction with the contracts described in this prospectus will equal 1% of the amount determined to be engaged in short-term trading. Short-term trading fees will only apply to those sub-accounts corresponding to underlying mutual funds that charge such fees (see the underlying mutual fund prospectus). Any short-term trading fees paid are retained by the underlying mutual fund, not by Nationwide, and are part of the underlying mutual fund’s assets. Contract owners are responsible for monitoring the length of time allocations are held in any particular underlying mutual fund. Nationwide will not provide advance notice of the assessment of any applicable short-term trading fee.

For a complete list of the underlying mutual funds offered under the contract that assess (or reserve the right to assess) a short-term trading fee, please see "Underlying Mutual Fund Annual Expenses" earlier in this prospectus.

If a short-term trading fee is assessed, the underlying mutual fund will charge the variable account 1% of the amount determined to be engaged in short-term trading. The variable account will then pass the short-term trading fee on to the specific contract owner that engaged in short-term trading by deducting an amount equal to the short-term trading fee from that contract owner’s sub-account value. All such fees will be remitted to the underlying mutual fund; none of the fee proceeds will be retained by Nationwide or the variable account.

When multiple purchase payments (or exchanges) are made to a sub-account that is subject to short-term trading fees, transfers will be considered to be made on a first in/first out (FIFO) basis for purposes of determining short-term trading fees. In other words, units held the longest time will be treated as being transferred first, and units held for the shortest time will be treated as being transferred last.

Some transactions are not subject to the short-term trading fees. Transactions that are not subject to short-term trading fees include:

·	scheduled and systematic transfers, such as Dollar Cost Averaging, Asset Rebalancing, and Systematic Withdrawals;

·	contract loans or surrenders, including CDSC-free withdrawals;

·	surrenders of annuity units to make annuity payments;

·	surrenders of accumulation units to pay the annual Contract Maintenance Charge;

·	surrenders of accumulation units to pay a death benefit; or

·	transfers made upon annuitization of the contract.

New share classes of certain currently available underlying mutual funds may be added as investment options under the contracts. These new share classes may require the assessment of short-term trading or redemption fees. When these new share classes are added, new purchase payment allocations and exchange reallocations to the underlying mutual funds in question may be limited to the new share class.

Optional Contract Benefits, Charges and Deductions

For an additional charge, the following optional benefits are available to contract owners. Not all optional benefits are available in every state. Unless otherwise indicated:

(1)	optional benefits must be elected at the time of application;

(2)	optional benefits, once elected, may not be terminated; and

(3)	the charges associated with the optional benefits will be assessed until annuitization.

Death Benefit Options

For an additional charge, the contract owner may elect a death benefit option. The charge associated with each option will be assessed until annuitization and are assessed on variable account allocations only.

One-Year Enhanced Death Benefit II Option

Beginning September 1, 2004 (or a later date if state law requires), applicants with annuitants age 80 or younger at the time of application can elect the One-Year Enhanced Death Benefit II Option for an additional charge at an annualized rate of 0.15% of the daily net assets of the variable account. Nationwide may realize a profit from the charge assessed for this option.

For contracts that have elected this option, if the total of all purchase payments made to the contract is $3,000,000 or less, the death benefit will be the greatest of:

(1)

(a)

if the contract was issued prior to February 1, 2005: the greater of the contract value as of the

date that Nationwide receives all the information necessary to pay the death benefit or the contract value as of the date of the annuitant's death;

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any contract anniversary prior to the annuitant's 86^th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary.

For contracts that have elected this option, if the total of all purchase payments made to the contract is greater than $3,000,000, the death benefit will be adjusted as described in the "Death Benefit Calculations" provision on page 58.

One-Year Enhanced Death Benefit Option

For contracts issued prior to September 1, 2004 (or prior to state approval of the One-Year Enhanced Death Benefit II Option), the applicant can elect the One-Year Enhanced Death Benefit Option. On the latter of September 1, 2004 or the date state approval is received for the One-Year Enhanced Death Benefit II Option, this option is no longer available. The One-Year Enhanced Death Benefit is the same as the One-Year Enhanced Death Benefit II Option, except that this option has a lower price (0.10% of the daily net assets of the variable account) and there is no restriction as to the annuitant's age. Nationwide may realize a profit from the charge assessed for this option.

One-Month Enhanced Death Benefit II Option

Beginning September 1, 2004 (or a later date if state law requires), applicants with annuitants age 80 or younger at the time of application can elect the One-Month Enhanced Death Benefit II Option for an additional charge at an annualized rate of 0.35% of the daily net assets of the variable account. Nationwide may realize a profit from the charge assessed for this option.

For contracts that have elected this option, if the total of all purchase payments made to the contract is $3,000,000 or less, the death benefit will be the greatest of:

(1)

(a)

if the contract was issued prior to February 1, 2005: the greater of the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit or the contract value as of the date of the annuitant's death;

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any monthly contract anniversary prior to the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that monthly contract anniversary.

One-Month Enhanced Death Benefit Option

For contracts issued prior to September 1, 2004 (or prior to state approval of the One-Month Enhanced Death Benefit II Option), the applicant can elect the One-Month Enhanced Death Benefit Option. On the latter of September 1, 2004 or the date state approval is received for the One-Month Enhanced Death Benefit II Option, this option is no longer available. The One-Month Enhanced Death Benefit is the same as the One-Month Enhanced Death Benefit II Option, except that this option has a lower price (0.30% of the daily net assets of the variable account), there is no restriction as to the annuitant's age, and for item (3) above, Nationwide considers the highest contract value on any monthly contract anniversary prior to the annuitant's 86^th birthday (subject to the same adjustments). Nationwide may realize a profit from the charge assessed for this option.

Combination Enhanced Death Benefit II Option

Beginning September 1, 2004 (or a later date if state law requires), applicants with annuitants age 75 or younger at the time of application can elect the Combination Enhanced Death Benefit II Option for an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account. Nationwide may realize a profit from the charge assessed for this option.

For contracts that have elected this option, if the total of all purchase payments made to the contract is $3,000,000 or less, the death benefit will be the greatest of:

(1)

(a)

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments , less an adjustment for amounts surrendered;

(3)	the highest contract value on any contract anniversary before the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary; or

(4)	the 5% interest anniversary value.

Combination Enhanced Death Benefit Option

For contracts issued prior to September 1, 2004 (or prior to state approval of the Combination Enhanced Death Benefit II Option), the applicant can elect the Combination Enhanced Death Benefit Option. On the latter of September 1, 2004 or the date state approval is received for the Combination Enhanced Death Benefit II Option, this option is no longer available. The Combination Enhanced Death Benefit is the same as the Combination Enhanced Death Benefit II Option, except that this option has a lower price (0.40% of the daily net assets of the variable account) and the option is available to applicants with annuitants age 80 or younger at the time of application. Nationwide may realize a profit from the charge assessed for this option.

Spousal Protection Annuity Options

Nationwide offers two spousal protection options (collectively, the "Spousal Options"), which are identical but for the price. Until September 1, 2004 (or a later date if state law requires), an applicant who elects spousal protection will receive the Spousal Protection Annuity Option, for which Nationwide assesses a charge equal to an annualized rate of 0.10% of the daily net assets of the variable account. Beginning September 1, 2004 (or a later date if state law requires), an applicant who elects spousal protection will elect the Spousal Protection Annuity II Option, for which Nationwide assesses a charge equal to an annualized rate of 0.20% of the daily net assets of the variable account. The charges associated with the Spousal Options are assessed on variable account allocations only. Nationwide may realize a profit from the charges assessed for these options.

The Spousal Options are not available for contracts issued as Charitable Remainder Trusts. The Spousal Options allow a surviving spouse to continue the contract while receiving the economic benefit of the death benefit upon the death of the other spouse, provided the conditions described below are satisfied:

(1)	One or both spouses (or revocable trust of which either or both of the spouses is/are grantor(s)) must be named as the contract owner. For contracts issued as IRAs and Roth IRAs, only the person for whom the IRA or Roth IRA was established may be named as the contract owner;

(2)	The spouses must be co-annuitants;

(3)	Both spouses must be age 85 or younger at the time the contract is issued (or such younger age as is required by an elected optional benefit);

(4)	Both spouses must be named as beneficiaries;

(5)	No person other than the spouse may be named as the contract owner, annuitant or primary beneficiary;

(6)	If both spouses are alive upon annuitization, the contract owner must specify which spouse is the annuitant upon whose continuation of life any annuity payments involving life contingencies depend (for IRA and Roth IRA contracts, this person must be the contract owner); and

(7)	If the contract owner requests to add a co-annuitant after contract issuance, the date of marriage must be after the contract issue date and Nationwide will require the contract owner to provide a copy of the marriage certificate.

If the co-annuitant dies before the annuitization date, the surviving spouse may continue the contract as its sole contract owner. Additionally, if the death benefit value is higher than the contract value at the time of the first co-annuitant's death, Nationwide will adjust the contract value to equal the death benefit value. The surviving co-annuitant may then name a new beneficiary but may not name another co-annuitant.

Beneficiary Protector II Option

For an additional charge at an annualized rate of 0.35% of the daily net assets of the variable account, the contract owner may purchase the Beneficiary Protector II Option. In addition, allocations to the fixed account and the Guaranteed Term Options will be assessed a fee of 0.35%. Nationwide may realize a profit from the charge assessed for this option. The Beneficiary Protector II Option is only available for contracts with annuitants age 75 or younger at the time of application.

The Beneficiary Protector II Option provides that upon the death of the annuitant (and potentially, the co-annuitant, if one is named), and in addition to any death benefit payable, Nationwide will credit an additional amount to the contract (the "benefit"). The amount of the benefit depends on the annuitant's age at the time of application and, if applicable, the co-annuitant's age at the time of the first annuitant's death.

After the death of the last surviving annuitant or after all applicable benefits have been credited to the contract, the charge associated with the Beneficiary Protector II Option will be removed and the beneficiary may:

(a)	terminate the contract; or

(b)	continue the contract, subject to any mandatory distribution rules.

Calculation of the First Benefit

The formula for determining the first benefit, which is paid upon the first annuitant's death, is as follows:

Earnings Percentage x Adjusted Earnings.

If the annuitant is age 70 or younger at the time of application, the Earnings Percentage will be 40%. If the annuitant is age 71 through age 75 at the time of application, the Earnings Percentage will be 25%.

Adjusted Earnings = (a) – (b); where:

a =	the contract value on the date the death benefit is calculated and prior to any death benefit calculation; and

b =	purchase payments, proportionally adjusted for surrenders.

The adjustment for amounts surrendered will reduce purchase payments in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

There is a limit on the amount of Adjusted Earnings used in the first benefit calculation.

Maximum Adjusted Earnings = 200% of the total of all purchase payments that were applied to the contract more than 12 months before the date of the annuitant's death, proportionally adjusted for surrenders.

The benefit will either be paid in addition to the death benefit, or will be credited to the contract if there is a co-annuitant named to the contract.

If there is no co-annuitant named to the contract, the charge associated with the Beneficiary Protector II Option will be removed after the benefit is paid.

Calculation of the Second Benefit

If a co-annuitant is named under the contract, a second benefit will be paid upon the death of the co-annuitant if the co-annuitant is age 75 or younger at the date of the first annuitant's death. If the co-annuitant is older than age 75 at the date of the first annuitant's death, no second benefit will be paid and the charge associated with the Beneficiary Protector II Option will be removed.

The calculation of the second benefit will be based on earnings to the contract after the first benefit was calculated. The formula for calculating the second benefit is as follows:

Earnings Percentage x Adjusted Earnings from the Date of the First Benefit.

If the co-annuitant is age 70 or younger at the time of the first annuitant's death, the Earnings Percentage will be 40%. If the co-annuitant is age 71 through age 75 at the time of the first annuitant's death, the Earnings Percentage will be 25%.

Adjusted Earnings from the Date of the First Benefit = (a) – (b) – (c), where:

a =	contract value on the date the second death benefit is calculated (before the second death benefit is calculated);

b =	the contract value on the date the first benefit and the first death benefit were calculated (after the first benefit and the first death benefit were applied), proportionately adjusted for surrenders; and

c =	purchase payments made after the first benefit was applied, proportionately adjusted for surrenders.

The adjustment for amounts surrendered will reduce the beginning contract value and purchase payments in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

There is a limit on the amount of Adjusted Earnings from the Date of the First Benefit used in the second benefit calculation.

Maximum Adjusted Earnings from the Date of the First Benefit = 200% of the total of all purchase payments that were applied to the contract more than 12 months before the date of the co-annuitant's death, proportionally adjusted for surrenders.

After the second benefit is applied, the charge associated with the Beneficiary Protector II Option will be removed.

How the Benefit is Allocated

Any amounts credited to the contract pursuant to the Beneficiary Protector II Option will be allocated among the sub-accounts, the fixed account and/or the Guaranteed Term Options in the same proportion as each purchase payment is allocated to the contract on the date the benefit is applied.

Extra Value Option

Applicants should be aware of the following prior to electing an extra value option:

(1)	Nationwide may make a profit from the extra value option charge.

(2)

Because the extra value option charge will be assessed against the entire contract value for the first 7 contract years, contract owners who anticipate making additional purchase payments after the first contract year (which will not receive the bonus credit but will be assessed the extra value charge) should carefully examine the extra value option and consult their financial adviser regarding its desirability.

(3)	Nationwide may take back or "recapture" all or part of the amount credited under the extra value option in the event of early surrenders, including revocation of the contract during the contractual free-look period.

(4)	If the market declines during the period that the bonus credits are subject to recapture, the amount subject to recapture could decrease the amount of contract available for surrender.

(5)	The cost of the extra value option and the recapture of the credits (in the event of a surrender) could exceed any benefit of receiving the extra value option credits.

(6)

Under certain circumstances, Nationwide may restrict the allocation of purchase payments to the fixed account when the contract owner elects or has elected an extra value option. These restrictions may be imposed at Nationwide's discretion when economic conditions are such that Nationwide is unable to recoup the cost of providing the up-front extra value option credits.

3% Extra Value Option

For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, an applicant can elect the 3% Extra Value Option. In addition, allocations made to the fixed account and the Guaranteed Term Options will be assessed a fee of 0.45%. After the end of the 7^th contract year, Nationwide will discontinue assessing the charges associated with the 3% Extra Value Option and the amount credited under this option will be fully vested.

In exchange, for the first 12 months the contract is in force, Nationwide will apply a credit to the contract equal to 3% of each purchase payment made to the contract. This credit, which is funded from Nationwide's general account, will be allocated among the sub-accounts, the fixed account, and/or the Guaranteed Term Options in the same proportion that the purchase payment is allocated to the contract. Credits applied under this option are considered earnings, not purchase payments.

Recapture of Extra Value Option Credits

Nationwide will recapture amounts credited to the contract in connection with the 3% Extra Value Option if:

(a)	the contract owner cancels the contract pursuant to the contractual free-look provisions;

(b)	the contract owner takes a full surrender before the end of the 7^th contract year; or

(c)	the contract owner takes a partial surrender that is subject to a CDSC before the end of the 7^th contract year.

Some state jurisdictions require a reduced recapture schedule. Please refer to your contract for state specific information.

Contract owners should carefully consider the consequences of taking a surrender that subjects part or all of the credit to recapture. If contract value decreases due to poor market performance, the recapture provisions could decrease the amount of contract value for surrender.

Nationwide will not recapture credits under the Extra Value Options under the following circumstances:

(1)	If the withdrawal is not, or would not be, subject to a CDSC under the B Schedule CDSC schedule;

(2)	If the distribution is taken as a result of a death, annuitization, or to meet minimum distribution requirements under the Internal Revenue Code; or

(3)	If the surrender occurs after the 7^th contract year.

Recapture Resulting from Exercising Free-Look Privilege

If the contract owner cancels the contract pursuant to the contractual free-look provision, Nationwide will recapture the entire amount credited to the contract under this option. In those states that require the return of purchase payments for IRAs that are surrendered pursuant to the contractual free-look, Nationwide will recapture the entire amount credited to the contract under this option, but under no circumstances will the amount returned be less than the purchase payments made to the contract. In those states that allow a return of contract value, the contract owner will retain any earnings attributable to the amount credited, but all losses attributable to the amount credited will be incurred by Nationwide.

Recapture Resulting from a Full Surrender

If the contract owner takes a full surrender of the contract before the end of the 7^th contract year, Nationwide will recapture the entire amount credited to the contract under this option.

Recapture Resulting from a Partial Surrender

If the contract owner takes a partial surrender before the end of the 7^th contract year that is subject to CDSC, Nationwide will recapture a proportional part of the amount credited to the contract under this option.

For example, Mr. X, who elected the 3% Extra Value Option, makes a $100,000 initial deposit to his contract and receives a 3% credit of $3,000. In contract year 2, Mr. X takes a $20,000 surrender. Under the contract Mr. X is entitled to take 10% of purchase payments free of CDSC. Thus, he can take ($100,000 x 10%) = $10,000 without incurring a CDSC. That leaves $10,000 of the surrender subject to a CDSC. For the recapture calculation, Nationwide will multiply that $10,000 by 3% to get the portion of the original credit that Nationwide will recapture. Thus, the amount of the original credit recaptured as a result of the $20,000 partial surrender is $300. The amount recaptured will be taken from the sub-accounts, the fixed account and/or the Guaranteed Term Options in the same proportion that purchase payments are allocated as of the surrender date.

Capital Preservation Plus Option

The Capital Preservation Plus ("CPP") Option provides a "return of principal" guarantee over an elected period of time (3, 5, 7, or 10 years -- the "program period"). Contract value at the end of the CPP program period will be no less than contract value at the beginning of the period, regardless of market performance. Note, however, that surrenders or contract maintenance charges that are deducted from the contract after this option is elected will reduce the value of the guarantee proportionally.

The guarantee is conditioned upon the allocation of contract value between two investment components:

(1)	A Guaranteed Term Option corresponding to the length of the elected program period; and

(2)	Non-Guaranteed Term Option allocations, which consist of the fixed account and certain underlying mutual funds that are available under the program. This investment component is allocated according to contract owner instructions.

If contract value is allocated to the fixed account and the contract owner subsequently elects the Capital Preservation Plus Option, the current fixed account interest rate guarantee period will terminate. If such contract owner allocates all or part of the Non-Guaranteed Term Option component of the Capital Preservation Plus Option to the fixed account, the allocation will be credited interest at the then current Renewal Rate and a new fixed account interest rate guarantee period will begin.

When the CPP Option is elected, Nationwide will specify the percentage of the contract value that must be allocated to each of the two general components described above. Generally, when interest rates are higher, a greater portion of the contract value will be made available for allocation among underlying mutual funds; when interest rates are lower, lesser portions may be made available for allocation among underlying mutual funds. Also, longer program periods will typically permit greater allocations to the underlying mutual funds. Other general economic factors and market conditions may affect these determinations as well.

Charges

The CPP Option is provided for an additional charge at an annualized rate not to exceed 0.50% of the daily net assets of the variable account. This charge will be assessed against the GTO through a reduction in credited interest rates (not to exceed 0.50%).

All charges associated with the CPP Option will remain the same for the duration of the program period. When the CPP program period ends or an elected CPP Option is terminated,

the charges associated with the option will no longer be assessed. Nationwide may realize a profit from this charge.

The Advantage of the Capital Preservation Plus Option

Without electing the option, contract owners may be able to approximate (without replicating) the benefits of the CPP Option. To do this, contract owners would have to determine how much of their contract value would need to be allocated to a GTO so that the amount at maturity (principal plus interest attributable to the GTO allocation) would approximate the original total investment. The balance of the contract value would be available to be allocated among underlying funds or the fixed account. This represents an investment allocation strategy aimed at capital preservation.

Election of the CPP Option, however, generally permits a higher percentage of the contract value to be allocated outside of the GTO among underlying mutual funds and/or the fixed account. This provides contract owners with a greater opportunity to benefit from market appreciation that is reflected in the underlying mutual fund performance, while preserving the return of principal guarantee.

Availability

The CPP Option is available for 150 days after the later of March 1, 2005 or the date state approval is received for the Capital Preservation Plus Lifetime Income Option. If available, the CPP Option may only be elected at the time of application. The CPP Option may not be elected if the Capital Preservation Plus Lifetime Income Option, the 5% Lifetime Income Option or the 7% Lifetime Income Option is elected.

Additionally, at the end of any CPP program period or after terminating a CPP Option, and if the CPP Option is still available in the applicable jurisdiction, the contract owner may elect to participate in a new CPP Option at the charges, rates and allocation percentages in effect at that point in time. If the contract owner elects to participate in a new CPP Option, such election and complete instructions must be received by Nationwide within 60 days before the end of the preceding CPP program period or within 60 days before the CPP Option termination, whichever is applicable.

Enhanced Capital Preservation Plus Option

From time to time, Nationwide may offer an enhanced version of the CPP Option. The Enhanced CPP Option costs the same as the standard CPP Option and operates similarly. The distinction between the two options is that the enhanced version provides contract owners with a larger Non-Guaranteed Term Option component than would be available under the standard CPP Option in exchange for stricter allocation restrictions on the Non-Guaranteed Term Option component. For the list of investment options available under this benefit please see "Income Benefit Investment Options" later in this prospectus. It is possible, under certain enhanced versions of the option, for a contract owner to have 100% of their investment allocated to the Non-Guaranteed Term Option component.

Conditions Associated with the Capital Preservation Plus Option

A contract owner with an outstanding loan may not elect the CPP Option.

During the CPP program period, the following conditions apply:

·	If surrenders or contract maintenance charges are deducted from the contract subsequent to electing this option, the value of the guarantee will be reduced proportionally.

·	Only one CPP Option program may be in effect at any given time.

·	No new purchase payments may be applied to the contract.

·	Enhanced Fixed Account Dollar Cost Averaging is not available as a contract owner service.

·	Nationwide will not permit loans to be taken from the contract.

·	No optional benefit that assesses a charge to the GTOs may be added to the contract.

·	If, while the CPP Option is elected, the annuitant dies and the annuitant's spouse elects to continue the contract, the option will remain in effect and will continue until the end of the original program period.

If the contract is annuitized, surrendered or liquidated for any reason prior to the end of the program period, all guarantees are terminated. A market value adjustment may apply to amounts transferred from a GTO due to annuitization. A market value adjustment may apply to amounts surrendered or liquidated from a GTO and the surrender will be subject to the CDSC provisions of the contract.

After the end of the program period, or after termination of the option, the above conditions will no longer apply.

Investments During the Program Period

When the CPP option is elected and after Nationwide receives all required information, Nationwide will declare the amount of the contract value that is available for allocation to the fixed account and/or the available underlying mutual funds. The remainder of the contract value must be allocated to a Guaranteed Term Option, the length of which corresponds to the length of the CPP program period elected by the contract owner.

Nationwide makes only certain underlying mutual funds available when a contract owner elects the Capital Preservation Plus Option. Nationwide selected the available underlying mutual funds on the basis of certain risk factors associated with the underlying mutual fund's investment objective. The underlying mutual funds not made available in conjunction with the Capital Preservation Plus Option were excluded on the basis of similar risk considerations.

During the CPP Program period, the following investment options are available for the Non-Guaranteed Term Option component:

the fixed account; and/or

a variable investment option, which could be one of the following:

if the Nationwide Allocation Architect service is available, one of the models available through that service (see, “Contract Owner Services”); or

if the Custom Portfolio Asset Rebalancing service is available, one of the models available through that service (see, “Contract Owner Services”); or

any combination of the underlying mutual funds listed in the “Income Benefit Investment Options” section.

Election of the CPP Option will not be effective unless and until Nationwide receives sub-account allocation instructions based on the preceding list of available underlying mutual funds. Allocations to underlying mutual funds other than those listed above are not permitted during the program period.

Nationwide reserves the right to modify the list of available underlying mutual funds upon written notice to contract owners. If an underlying mutual fund is deleted from the list of available underlying mutual funds, such deletion will not affect CPP Option programs already in effect.

Surrenders During the CPP Program Period

If, during the CPP program period, the contract owner takes a partial surrender from the contract, Nationwide will surrender accumulation units from the sub-accounts and an amount from the fixed account and GTO. The amount surrendered from each investment option will be in proportion to the value in each investment option at the time of the surrender request, unless Nationwide is instructed otherwise. Surrenders may not be taken exclusively from the GTO. In conjunction with the surrender, the value of the guarantee will be adjusted proportionally. A market value adjustment may apply to amounts surrendered from GTO and the surrender will be subject to the CDSC provisions of the contract.

Transfers During the CPP Program Period

Transfers to and from the Guaranteed Term Option are not permitted during the CPP program period.

Transfers between the fixed account and the variable account, and among sub-accounts are subject to the terms and conditions in the "Transfers Prior to Annuitization" provision. During the CPP program period, transfers to underlying mutual funds that are not included in the CPP Option program are not permitted.

If the Nationwide Allocation Architect and/or the Custom Portfolio Asset Rebalancing Service are available as a Non-Guaranteed Term Option, the contract owner may move the variable portion of the Non-Guaranteed Term Option component back and forth between the Nationwide Allocation Architect service, the Custom Portfolio Asset Rebalancing Service and the CPP investment options at any time during the CPP program period. Whenever the contract owner elects to move the variable portion of the Non-Guaranteed Term Option component from the Nationwide Allocation Architect service or Custom Portfolio Asset Rebalancing Service to the CPP investment options, all sub-account values allocated to underlying mutual funds that are not part of the CPP investment options must be reallocated to one or more CPP investment options. While the contract owner elects to participate in the Nationwide Allocation Architect service or the Custom Portfolio Asset Rebalancing Service, the terms and conditions associated with that service apply.

For those contracts that have elected an Enhanced CPP Option, transfers may be further limited during the program period.

Terminating the Capital Preservation Plus Option

Once elected, the CPP Option cannot be revoked, except as provided below.

If the contract owner elected a CPP program period matching a 7 year Guaranteed Term Option, upon reaching the 5^th anniversary of the program, the contract owner may terminate the CPP Option. Any termination instructions must be received at Nationwide's home office within 60 days after the option's 5^th anniversary.

If the contract owner elected a CPP program period matching a 10 year Guaranteed Term Option, upon reaching the 7^th anniversary of the program, the contract owner may terminate the CPP Option. Any termination instructions must be received at Nationwide's home office within 60 days after the option's 7^th anniversary.

If the contract owner terminates the CPP Option as described above, the charges associated with the CPP Option will no longer be assessed, all guarantees associated with the option will terminate, the contract's investment allocations will remain the same as when the program was in effect (unless Nationwide is instructed otherwise), and all conditions associated with the CPP Option are removed.

Fulfilling the Return of Principal Guarantee

At the end of the CPP program period, if the contract value is less than the guaranteed amount, Nationwide will credit an amount to the contract so that the contract value equals the guaranteed amount. Amounts credited under the CPP Option are considered, for the purposes of other benefits under this contract, earnings, not purchase payments. If the contract owner does not elect to begin a new CPP Option program, the amount previously allocated to the GTO and any amounts credited under the guarantee will be allocated to the money market sub-account.

Election of the Capital Preservation Plus Lifetime Income Option

Beginning March 1, 2005 (or a later date if state law requires), at the end of any CPP program period or after terminating a CPP Option, the contract owner may elect to replace the CPP Option with the Capital Preservation Plus Lifetime Income Option (or an enhanced version thereof, if available) at the rates, conditions, allocation percentages, and prices in effect at that point in time. Any such election must be received by Nationwide within 60 days before the end of the preceding CPP program period or within 60 days before the CPP Option termination, whichever is applicable.

Capital Preservation Plus Lifetime Income Option

The Capital Preservation Plus Lifetime Income Option is an

extension of the CPP Option. The Capital Preservation Plus Lifetime Income Option may not be elected if anyof the following benefits are elected: the Capital Preservation Plus Option, 5% Lifetime Income Option or the 7% Lifetime Income Option.

The CPP Lifetime Income Option is a two-phase option. The first phase (the "preservation phase") is substantially the same as the CPP Option (see "Capital Preservation Plus Option"). Part of the contract value is allocated to a GTO and the remainder is allocated to available non-GTO investment options. At the end of the CPP program period, if the contract value is less than the contract value at the time the CPP program period began, Nationwide will credit the contract with an amount sufficient to equal the guaranteed amount.

Immediate Withdrawals

Contract owners who are in the preservation phase of the option can elect the immediate withdrawal benefit and begin taking withdrawals of up to 6% of the guaranteed amount annually. Election of this benefit changes some of the terms of the CPP Lifetime Income Option. Refer to the "Immediate Withdrawal Benefit" subsection later in this provision.

The second phase of the CPP Lifetime Income Option (the "withdrawal phase") begins with establishing the lifetime withdrawal base. Thereafter, the contract owner may take surrenders from the contract equal to a certain percentage of that lifetime withdrawal base for the remainder of his/her life, regardless of the actual contract value. This essentially provides the contract owner with an available lifetime stream of income. Note, however, that this lifetime income stream is distinct from the annuitization phase of the contract.

In short, the preservation phase gives the contract owner the assurance of a principal guarantee and the withdrawal phase

gives the contract owner the opportunity for a consistent lifetime income stream. The preservation phase and withdrawal phase are discussed more thoroughly later in this provision.

Charges

The CPP Lifetime Income Option is provided for an additional charge at an annualized rate not to exceed 1.00% of the daily net assets of the variable account. Additionally, rates credited to the Guaranteed Term Option will be reduced by an amount not to exceed 1.00%. Currently, the charge associated with the CPP Lifetime Income Option is 0.60% of the daily net assets of the variable account and a 0.60% reduction in the Guaranteed Term Option crediting rate. Nationwide may realize a profit from the charge assessed for this option. All charges associated with the CPP Lifetime Income Option will be assessed until annuitization and the charge will remain the same (unless the contract owner elects a new CPP program or invokes the reset opportunity, discussed herein).

Availability

Effective May 1, 2007, the Capital Preservation Plus Lifetime Income Option may only be elected at the time of application. For contracts issued prior to May 1, 2007, the CPP Lifetime Income Option can be elected within 60 days after the contract issue date. The person's life upon which the benefit depends (the "determining life") must be age 35 or older at the time of election. For most contracts, the determining life is that of the primary contract owner. For those contracts where the contract owner is a non-natural person, for purposes of this option, the determining life is that of the primary annuitant, and all references in this option to "contract owner" shall mean primary annuitant. The CPP Lifetime Income Option is not available if any one of the following optional benefits is elected: the 7% Lifetime Income Option, the 5% Lifetime Income Option or the CPP Option. Additionally, the CPP Lifetime Income Option may not be revoked or terminated except as described herein.

The CPP Lifetime Income Option may also be elected by contract owners who previously elected the CPP Option. Thus, the contract owner would be switching from the CPP Option to the CPP Lifetime Income Option. Any such election to switch must occur at the end of a CPP program period or after terminating a CPP Option as described in the "Capital Preservation Plus Option" provision. The CPP Lifetime Income Option is not available if the CPP Option is elected. Any election to switch from the CPP Option to the CPP Lifetime Income Option and complete instructions must be received by Nationwide within 60 days before the end of the CPP program period or within 60 days before the CPP Option termination, whichever is applicable.

Enhanced Capital Preservation Plus Lifetime Income Option

From time to time, Nationwide may offer an enhanced version of the CPP Lifetime Income Option. The Enhanced CPP Lifetime Income Option costs the same as the standard CPP Lifetime Income Option and operates similarly. The distinction between the two options lies in the preservation phase of the option. During the preservation phase of the Enhanced CPP Lifetime Income Option, contract owners will have a larger Non-GTO component than would be available during the preservation phase of the standard CPP Lifetime Income Option. In exchange for this benefit, Nationwide will impose stricter allocation restrictions on the Non-GTO component. For the list of investment options available under this benefit please see "Income Benefit Investment Options" later in this prospectus. It is possible, under certain enhanced versions of the option, for a contract owner to have 100% of their investment allocated to the Non-GTO component during the preservation phase. Any Enhanced CPP Lifetime Income Option that Nationwide offers will be subject to the rates, conditions, and allocation percentages in effect at that point in time.

Preservation Phase of the CPP Lifetime Income Option

The first phase of the CPP Lifetime Income Option, the preservation phase, is similar to the CPP Option. It enables the contract owner to allocate part of his/her contract value to the fixed account and/or certain underlying mutual funds in order to benefit from possible market appreciation, while preserving a return of principal guarantee. The preservation phase of the CPP Lifetime Income Option generally operates the same as the CPP Option.

·	All of the terms and conditions associated with the CPP Option also apply to the preservation phase of the CPP Lifetime Income Option except that contract owners may not terminate the CPP Lifetime Income Option prior to

the end of the CPP program period (see "Terminating the Capital Preservation Plus Option").

·	Market conditions determine the availability and allocation percentages of the various CPP program periods.

·	Surrenders or contract maintenance charges that are deducted from the contract during the preservation phase will reduce the value of the guarantee proportionally.

·	If at the end of any CPP program period the contract value is less than the guaranteed amount, Nationwide will credit an amount to the contract so that the contract value equals the guaranteed amount.

·	Amounts credited to fulfill the principal guarantee are considered, for purposes of other benefits under this contract, earnings, not purchase payments.

During the preservation phase, for purposes of this option, Nationwide will consider a change in contract owner as a death of contract owner.

Options at the End of the Preservation Phase

Approximately 90 days before the end of a CPP program period, Nationwide will communicate the ensuing CPP program period end to the contract owner. The communication will inform the contract owner of his/her options relating to the CPP Lifetime Income Option and will instruct him/her to elect how the contract should continue. The contract owner must elect to: remain in the preservation phase of the option by electing a new CPP program; move into the withdrawal phase of the option; or terminate the option. The contract owner's election is irrevocable. Each of the options is discussed more thoroughly below.

Remaining in the preservation phase of the CPP Lifetime Income Option. After Nationwide applies any credit that may be due on the maturing CPP program, the contract owner may elect to remain in the preservation phase of the CPP Lifetime Income Option by beginning a new CPP program. If the contract owner elects this option, the new CPP program will be subject to the rates and conditions that are in effect at that point in time, and the guaranteed amount corresponding to the new CPP program will be the contract value as of the beginning of that CPP program period. The charge, from that point forward, will be the then current charge for the CPP Lifetime Income Option.

Moving into the withdrawal phase of the CPP Lifetime Income Option. After Nationwide applies any credit that may be due on the maturing CPP program, the contract owner may elect to begin the withdrawal phase of the CPP Lifetime Income Option (see "Withdrawal Phase of the CPP Lifetime Income Option" below). During the withdrawal phase, Nationwide will continue to assess the same charge that was assessed during the prior CPP program.

Terminating the CPP Lifetime Income Option. After Nationwide applies any credit that may be due on the maturing CPP program, the contract owner may elect to terminate the CPP Lifetime Income Option. Upon such an election, Nationwide will no longer assess the charge associated with the option, all benefits associated the option will terminate, and all conditions associated with the option are removed. The contract's variable investment allocations will remain the same as they were prior to the termination (unless Nationwide is instructed otherwise) and the contract value previously allocated to the GTO and any amounts credited under the principal guarantee will be allocated to the money market sub-account.

If Nationwide does not receive the contract owner's instructions as to how the option/contract should continue prior to the end of the CPP program period, upon such CPP program period end, Nationwide will assume that the contract owner intends to terminate the CPP Lifetime Income Option.

Withdrawal Phase of the CPP Lifetime Income Option

Upon electing to begin the withdrawal phase, the contract owner must instruct Nationwide how to allocate their contract value among a select group of investment options. A list of the investment options available during the withdrawal phase will be included in the election notice. The contract owner may reallocate only among the limited investment options for the remainder of the withdrawal phase.

During the withdrawal phase of the option, Nationwide will not permit any additional purchase payments to the contract and Nationwide will not permit a change in contract owner (unless the change would result in using the same determining life).

At the beginning of the withdrawal phase of the CPP Lifetime Income Option, Nationwide will determine the lifetime withdrawal base, which is equal to the contract value as of the end of the CPP program period (including any amounts credited under the principal guarantee).

At any point in the withdrawal phase, the contract owner may begin taking the lifetime income stream by requesting a surrender from the contract. All surrenders taken from the contract during the withdrawal phase will be taken from each investment option in proportion to the value in each investment option at the time of the surrender request.

At the time the first surrender is requested during the withdrawal phase, Nationwide will determine the benefit amount under this option, referred to as the "lifetime withdrawal amount." The lifetime withdrawal amount is determined by multiplying the lifetime withdrawal base by the corresponding lifetime withdrawal percentage in the chart that follows.

Age of determining life:	Lifetime withdrawal percentage:
age 35 up to age 59½	4%
age 59½ through 66	5%
age 67 through 71	6%
age 72 or older	7%

The lifetime withdrawal percentage is based on the age of the determining life as of the date of the first surrender during the withdrawal phase and will not change, except as described in the "Lifetime Withdrawal Base Reset Opportunity."

Thereafter, on each anniversary of the beginning of the withdrawal phase, the contract owner is entitled to surrender an amount equal to the lifetime withdrawal amount without reducing the lifetime withdrawal base. The contract owner

may continue to take annual surrenders that do not exceed the lifetime withdrawal amount until the earlier of the contract owner's death or annuitization regardless of the actual value of the contract. Thus, it is possible for the contract owner to take annual surrenders equal to the lifetime withdrawal amount after the contract value is zero. After the contract value falls to zero, the contract owner can continue to take annual surrenders of no more than the lifetime withdrawal amount. Surrender requests may be submitted systematically or directly by the contract owner.

Although surrenders of the lifetime income amount do not reduce the lifetime withdrawal base, they do reduce the contract value and death benefit, and are subject to the CDSC provisions of the contract. Lifetime withdrawal amounts not surrendered in a given year are forfeited and may not be claimed in subsequent years.

Contract owners are permitted to take surrenders in excess of the lifetime withdrawal amount (provided that the contract value is greater than zero). However, to the extent that a surrender exceeds that year's lifetime withdrawal amount, Nationwide will proportionally reduce the lifetime withdrawal base, which will result in lower lifetime withdrawal amounts in subsequent years. The proportionate reduction will be equal to the amount withdrawn in excess of the lifetime withdrawal amount, divided by the contract value (after it is reduced by the lifetime withdrawal amount). Once the contract value falls to zero, the contract owner is no longer permitted to take surrenders in excess of the lifetime withdrawal amount.

Surrenders taken before the contract owner is age 59½ may be subject to additional tax penalties.

Required Minimum Distribution Privilege

If you surrender an amount greater than your benefit amount for the sole purpose of satisfying Internal Revenue Code minimum distribution requirements for this contract, we will not reduce your income benefit base. Nationwide reserves the right to modify or eliminate this required minimum distribution privilege.

We will notify you if we discontinue or eliminate the required minimum distribution privilege. If Nationwide exercises its right to modify or eliminate this privilege then any distribution in excess of your lifetime withdrawal amount will reduce your remaining lifetime withdrawal base.

Lifetime Withdrawal Base Reset Opportunity

On each 5-year anniversary of the beginning of the withdrawal phase, if the contract value exceeds the lifetime withdrawal base, the contract owner will have the opportunity to instruct Nationwide to reset the lifetime withdrawal base to equal the current contract value.

Nationwide will provide the contract owner with advance notice of any reset opportunity and will provide the contract value information necessary for the contract owner to decide whether or not to invoke the reset opportunity. If Nationwide does not receive and record a contract owner's election to reset the lifetime withdrawal base by the date stipulated in the notice, Nationwide will assume that the contract owner does not wish to reset the lifetime withdrawal base.

If the contract owner chooses to reset the lifetime withdrawal base, the following terms and conditions will apply:

·	The contract owner will be assessed the charge for the CPP Lifetime Income Option that is in effect as of the date of the election to reset the lifetime withdrawal base.

·	The lifetime withdrawal percentages that are in effect as of the date of the election to reset the lifetime withdrawal base will apply.

·	The lifetime withdrawal percentage applicable to the contract will continue to be based on the age of the determining life as of the date of the first surrender during the withdrawal phase.

Nationwide reserves the right to limit the number of reset opportunities to one.

Annuitization and the CPP Lifetime Income Option

Election of the CPP Lifetime Income Option does not restrict the contract owner's right to annuitize the contract.

If the contract owner elects to annuitize during the preservation phase, the contract owner must transfer the entire GTO allocation to another investment option (GTOs are not available during annuitization), and the transfer may result in a market value adjustment. All guarantees associated with the preservation phase are terminated, the charge is removed, and the conditions associated with the CPP program are no longer applicable. The amount to be annuitized will be the contract value after any market value adjustment has been applied.

If the contract owner elects to annuitize during the withdrawal phase, the charge is removed and the investment restrictions associated with the withdrawal phase are no longer applicable. The amount to be annuitized will be the contract value. Since surrenders from the contract during the withdrawal phase of the option reduce the contract value, and consequently, the amount to be annuitized, the contract owner should carefully weigh the option of annuitization against continuing with the lifetime income stream associated with the CPP Lifetime Income Option.

Succession of Rights and Termination of the CPP Lifetime Income Option

The following events will trigger an automatic termination of the CPP Lifetime Income Option:

·	a full surrender of the contract;

·	a full surrender of the death benefit proceeds; or

·	an election to annuitize the contract.

If any of the events listed above occur, the CPP Lifetime Income Option will terminate and Nationwide will no longer be obligated to fulfill the principal guarantee or to provide the lifetime withdrawal benefit.

The death of the determining life has complex consequences that are unique to the CPP Lifetime Income Option. For specific information about rights of succession, please consult with your registered representative or call Nationwide’s service center.

Immediate Withdrawal Benefit

During the preservation phase of the CPP Lifetime Income Option, the contract owner can invoke the immediate withdrawal benefit. This benefit permits the contract owner to take immediate withdrawals of up to 6% annually of the guaranteed amount until the benefit is exhausted. The benefit may only be invoked during the preservation phase, specifically during the current CPP program period, but once it is invoked, withdrawals will be permitted both during the current CPP program period and after its maturity date, until the guaranteed amount is exhausted. After the benefit is invoked, the contract owner's current CPP program period will remain in effect until its regular maturity date. The CPP program period's ending does not automatically terminate the option. However, the contract owner will receive notice that the contract value must be reallocated in order to continue the option (see “Options at the end of the CPP Program Period” later in this subsection). As long as the contract owner reallocates the contract value upon the maturity of the current CPP program period, the contract owner will remain in the preservation phase of the option (subject to the limitations herein) and continue to receive immediate withdrawals for the duration of the option. The investment options available upon the maturity of the CPP program period will be limited and may not include GTO options.

Invoking the immediate withdrawal benefit changes some of the conditions associated with the CPP Lifetime Income option, as indicated below:

Invoking the immediate withdrawal benefit changes the nature of the guarantee associated with the preservation phase. Nationwide will not credit an amount to the contract so that the contract value equals the guaranteed amount at the end of the applicable CPP program period. Instead, the CPP guarantee amount (as determined on the day the benefit is invoked) becomes the basis for determining the amount of the withdrawals permitted under the immediate withdrawal benefit. This amount is referred to as the "immediate withdrawal base" and is guaranteed not to change as long as the option is not terminated or total annual withdrawals do not exceed the 6% limit (see "Determining the Immediate Withdrawal Base" and "Termination (of the CPP Lifetime Income Option) with Immediate Withdrawals" later in this subsection).

For purposes of the immediate withdrawal benefit, the CPP program period (during which the benefit is invoked) will remain in effect until its regular maturity date. At the CPP program period's end, the contract owner will not be permitted to begin a new CPP program period. Instead, the contract owner will be required to reallocate the contract value into certain limited investment options. The contract owner will lose the value of remaining withdrawals if the contract value is not reallocated (see "Options at the End of the CPP Program Period").

The contract owner will remain in the preservation phase for the duration of the CPP Lifetime Income option once the immediate withdrawal benefit is invoked. The contract owner will not be permitted to enter the lifetime withdrawal phase of the option.

The "Succession of Rights and Termination of the CPP Lifetime Income Option" provision no longer applies once the immediate withdrawal benefit is invoked (see instead, "Termination (of the CPP Lifetime Income Option) with Immediate Withdrawals" in this subsection).

Immediate withdrawals in excess of 6% annually will reduce the value of future immediate withdrawals (see "Impact of Withdrawals in Excess of 6%" later in this subsection).

No additional purchase payments are permitted once the immediate withdrawal benefit is invoked.

The immediate withdrawal benefit is non-cumulative. Withdrawals not taken in one contract year cannot be carried over to the following contract year.

Nationwide may discontinue offering the immediate withdrawal benefit. If the benefit is discontinued, contract owners who have elected the CPP Lifetime Income Option will be permitted to invoke the benefit (subject to the conditions herein).

Immediate withdrawals are subject to the applicable CDSC provisions of the contract. If taken prior to age 59½, the withdrawals could incur a penalty tax. Minimum required distributions could cause annual withdrawals to exceed 6% (see "Impact of an Immediate Withdrawal (within the 6% limit)" in this subsection).

Invoking the Immediate Withdrawal Benefit. A contract owner wishing to take an immediate withdrawal must affirmatively elect to invoke the benefit using a form approved by Nationwide. Upon receipt of this affirmative election, Nationwide will determine the immediate withdrawal base. Note: A surrender request alone will not initiate the immediate withdrawal benefit, but will, instead, be treated as an ordinary surrender under the contract.

In addition, since the contract owner may only invoke the benefit during the preservation phase of the option, the CPP program period that is in effect at the time of the election will continue in effect until the program period ends. In other words, invoking the immediate withdrawal benefit does not have any affect on the current CPP program period.

Options at the End of the CPP Program Period

For purposes of the immediate withdrawal benefit, the CPP program period (during which the benefit is invoked) will remain in effect until its regular maturity date. The CPP program period is chosen by the contract owner and generally corresponds to the duration of any GTO option chosen by the contract owner. Upon the CPP program period end, the contract owner will have two options:

·	reallocate the contract value among the limited available investment options; or

·	let the CPP Lifetime Income Option terminate.

Nationwide will communicate the ensuing CPP program period end to the contract owner approximately 90 days before

the end of the period. An additional notice will be sent (approximately 60 days before the periods end) that will include a list of the limited investment options available. The contract owner must reallocate the contract value, including amounts allocated to the GTO, among the limited investment options available in order to continue receiving immediate withdrawals under the benefit. If Nationwide does not receive the contract owner’s instructions prior to the end of the program period, Nationwide will assume that the contract owner intends to terminate the CPP Lifetime Income Option. Note: If the option is terminated, the contract owner will lose the value of the remaining immediate withdrawal base, i.e., lose any remaining payments (see "Termination (of the CPP Lifetime Income Option) with Immediate Withdrawals").

Determining the Immediate Withdrawal Base

The immediate withdrawal base is the dollar amount that Nationwide will use as the basis for determining how much the contract owner can withdraw under the benefit. The immediate withdrawal base will be equal to the CPP guarantee amount (as determined on the day the benefit is invoked). The immediate withdrawal base will not change unless the contract owner takes withdrawals in excess of 6% each year (i.e., the total amount of withdrawals in one year may not exceed 6% of the immediate withdrawal base).

For example, if the contract owner's initial investment at the beginning of the CPP program period was $100,000, assuming no surrenders are made during the CPP program period, the CPP guarantee amount at the end of the CPP program period will be $100,000. If the contract owner invokes the immediate withdrawal benefit, the immediate withdrawal base becomes the CPP guarantee amount (i.e., $100,000). The contract value will not be credited with any CPP guarantee amount at the end of the program period.

Taking an Immediate Withdrawal. After the affirmative election to invoke the benefit has been made and received in good order by Nationwide, in order to take an immediate withdrawal, the contract owner must submit a surrender request to Nationwide. Nationwide will process the request based upon the election of the withdrawal benefit. Nationwide will surrender accumulation units from the sub-accounts and an amount from the fixed account and GTO when an immediate withdrawal is requested. The amount surrendered from each investment option will be in proportion to the value in each investment option at the time of the surrender request. Immediate withdrawals cannot be taken exclusively from the GTO. Amounts surrendered from the GTO could incur a market value adjustment. Market value adjustments are applied to the contract value and not the amount of the withdrawal request. Contract owners can request that accumulation units not be surrendered from the GTO in order to avoid application of a market value adjustment. Please refer to the GTO prospectus for examples of how market value adjustments are calculated.

Impact of Immediate Withdrawals (within the 6% limit). The impact of an immediate withdrawal on the contract will depend on the immediate withdrawal base, the remaining immediate withdrawal base, and the amount of the gross surrender request. Annual gross surrenders include required minimum distributions pursuant to the Internal Revenue Code and any applicable CDSC.

Remaining Immediate Withdrawal Base

The amount available or remaining for withdrawal under the benefit is referred to as the "remaining immediate withdrawal base." This figure is used to track how much the contract owner has withdrawn and how much the contract owner has left to withdraw.

For example assume the following:

Immediate Withdrawal Base = $100,000

Contract Value = $31,000

Remaining Immediate Withdrawal Base = $56,000

Gross Surrender Request = $6,000

In the above example, the contract owner has already taken immediate withdrawals that have reduced the remaining immediate withdrawal base to $56,000. Contract value also includes any market value adjustments. The impact of the gross surrender request is:

Immediate Withdrawal Base = $100,000

Contract Value = $25,000

Remaining Immediate Withdrawal Base = $50,000

Impact of Withdrawals in Excess of 6%. Withdrawals in excess of 6% will reduce the immediate withdrawal base (based on the formula described below), thereby reducing the amount of future immediate withdrawals available under the benefit. This reduction could be significant. Therefore, requesting surrenders in excess of 6% should be carefully considered.

The reduction to the immediate withdrawal base will be the greater of (i) the dollar amount of the surrender in excess of the 6% withdrawal or (ii) a proportionate reduction based on the ratio of the dollar amount of the excess surrender to the contract value (already adjusted for any applicable market value adjustment and the amount of the surrender request up to 6%) multiplied by the immediate withdrawal base. The remaining immediate withdrawal base will also be reduced by this same amount.

For example:

Immediate Withdrawal Base = $100,000

Contract Value = $31,000

Remaining Immediate Withdrawal Base = $56,000

Gross Surrender Request = $11,000

The impact of the full surrender request will be calculated in two steps:

The impact of the request up to 6% would be (6% of $100,000 = $6,000):

Permissible 6% Withdrawal = $6,000

Immediate Withdrawal Base = $100,000

Contract Value = $25,000

Remaining Immediate Withdrawal Base = $50,000

and

Because the total request exceeded the allowable 6% by $5,000 ($11,000 - $6,000 = $5,000), the proportionate reduction (described above) is applied as follows:

5,000/25,000*100,000 = $20,000.

Therefore, the full impact of the request on the contract would be:

Immediate Withdrawal Base = $80,000

Contract Value = $20,000

Remaining Immediate Withdrawal Base = $30,000

The contract value is reduced by the dollar amount of the excess surrender request ($5,000).

Surrenders in excess of 6% will not be permitted if contract value is zero.

Contingent Deferred Sales Charges

A withdrawal under the benefit may cause a CDSC to apply (see "Contingent Deferred Sales Charges" earlier in this prospectus). Application of a CDSC could result in the gross surrender being greater than 6%. For example, the amount of the surrender request plus the applicable CDSC could exceed the 6% limit. If applicable, contract owners can request to receive a specific dollar amount of withdrawal (i.e., Nationwide will gross up the withdrawal to include the CDSC amount) or to receive the withdrawal net of the CDSC amount. In either case, the gross amount of the surrender (i.e., including the CDSC) is the amount used to determine whether the withdrawal exceeds the 6% limit. A reduction to the immediate withdrawal base will be applied as described in the "Impact of Withdrawals in Excess of 6%" provision if the gross surrender exceeds the 6% limit.

The contract permits a percentage of purchase payments to be withdrawn free of CDSC each year (see "Waiver of Contingent Deferred Sales Charge" earlier in this prospectus). The total free withdrawal amount permitted (a percentage of purchase payments), however, may result in annual surrenders greater than the 6% limit permitted by this benefit (i.e., 6% of the immediate withdrawal base). In such case, the reduction described in the "Impact of Withdrawals in Excess of 6%" provision will apply.

Minimum Required Distributions

Withdrawals taken pursuant to minimum required distribution rules under the Internal Revenue Code could also cause gross surrender requests to exceed 6% annually if the rules require a distribution greater than the 6% limit be distributed from the contract. The reduction to the immediate withdrawal base will be applied as described in the "Impact of Withdrawals in Excess of 6%" provision if distributions result in gross surrenders in excess of 6% annually.

How long will the immediate withdrawals last? A contract owner can continue to take immediate withdrawals as long as there is remaining immediate withdrawal base value. The number of years will depend on the amount and frequency of the withdrawals taken. For example, it would take approximately 16 and 2/3 years for a $100,000 remaining immediate withdrawal base to be exhausted if immediate withdrawals did not exceed 6% annually.

Immediate withdrawals that do not exceed 6% annually reduce the remaining immediate withdrawal base by the dollar amount of each immediate withdrawal until the base reaches zero. Once the remaining immediate withdrawal base reaches zero, the immediate withdrawal benefit is exhausted.

What happens if there is Contract Value but the Remaining Immediate Withdrawal Base is Zero? If there is contract value left after the remaining immediate withdrawal base is exhausted, the contract owner can no longer take withdrawals under the immediate withdrawal benefit. Surrenders can still be taken subject to the CDSC provisions of the contract. The charge associated with the CPP Lifetime Income option will continue to be assessed until the contract is terminated or annuitized.

What happens if the Contract Value is Zero, but there is Remaining Immediate Withdrawal Base Value? If contract value reaches zero before the remaining immediate withdrawal base is zero, Nationwide will continue to pay the contract owner 6% of the immediate withdrawal base each contract year until the remaining immediate withdrawal base is zero. Additionally, if the contract owner has invoked the benefit but has not requested regular or systematic withdrawals, Nationwide will automatically begin paying the contract owner the value of 6% of the current immediate withdrawal base until the remaining immediate withdrawal base is zero. Once the remaining immediate withdrawal base reaches zero, the contract will automatically terminate.

Termination (of the CPP Lifetime Income Option) with Immediate Withdrawals

The CPP Lifetime Income Option can be terminated at the end of a CPP program period. Note: Termination of the option will cause the contract owner to lose any remaining immediate withdrawal base value, i.e., lose any remaining payments.

The option will automatically terminate if, at the end of the CPP program period during which the immediate withdrawal benefit is invoked, the contract owner does not instruct Nationwide how to reallocate the contract value (see, "Options at the End of the CPP Program Period"). Such automatic termination of the option will result in the contract owner losing any remaining immediate withdrawal base value.

If terminated, the contract's variable investment allocations will remain the same as they were prior to the termination (unless Nationwide is instructed otherwise) and the contract value previously allocated to the GTO will be allocated to the money market sub-account. Nationwide will no longer assess the charge associated with the option, all benefits associated the option will terminate, and all conditions associated with the option will be removed.

Some contract events will trigger an automatic termination of the CPP Lifetime Income option, including:

A full surrender of the contract value;

A full surrender of the death benefit proceeds; or

An election to annuitize the contract (see, "Annuitization and the CPP Lifetime Income Option" in the "Capital Preservation Plus Lifetime Income Option" provision).

Automatic termination of the option will result in the contract owner losing any remaining immediate withdrawal base value.

Succession of Rights and the Immediate Withdrawal Benefit

Any remaining immediate withdrawal base value is guaranteed for as long as the CPP Lifetime Income Option is in force. If by the terms of the contract the death of the contract owner results in the contract being continued, i.e. does not result in a full surrender of the death benefit proceeds, the CPP Lifetime Income Option will continue in force with the immediate withdrawal benefit invoked. The values of the immediate withdrawal base and the remaining immediate withdrawal base remain the same as they were prior to the contract owner's death, i.e., the new owner will continue receiving withdrawals until the remaining immediate withdrawal base is zero. If death of the contract owner occurs during the CPP program period, the new contract owner will be required to reallocate the contract value no sooner than the expiration of the corresponding GTO, in order to continue to receive the withdrawals and retain the benefit.

If the death of the contract owner results in the CPP Lifetime Income Option being terminated, the termination will result in the loss of any remaining immediate withdrawal base value.

Taxation of Surrenders under the CPP Lifetime Income Option

Although the tax treatment is not clear, when the contract owner takes a surrender from the contract before the annuitization date, Nationwide will treat the following amount of the surrender as a taxable distribution: the excess of the greater of (a) the contract value immediately before the surrender; or (b) the guaranteed benefit amount immediately before the surrender; over the remaining investment in the contract. In certain circumstances, this treatment could result in the contract value being less than the investment in the contract after the surrender. A subsequent surrender under such circumstances could result in a loss that may be deductible. Please consult a qualified tax advisor.

7% Lifetime Income Option

The 7% Lifetime Income Option provides for lifetime withdrawals, up to a certain amount each year, even after the contract value is zero. The age of the person upon which the benefit depends (the “determining life”) must be between 45 and 85 years old at the time the Lifetime Income Option is elected. For most contracts, the determining life is that of the primary contract owner. For those contracts where the contract owner is a non-natural person, for purposes of this option, the determining life is that of the primary annuitant, and all references in this option to “contract owner” shall mean primary annuitant. The determining life may not be changed.

The 7% Lifetime Income Options may not be elected if a loan is outstanding on the contract or if any of the following optional benefits are elected: the 5% Lifetime Income Option, , Capital Preservation Plus Option, or the Capital Preservation Plus Lifetime Income Option. Once this option is elected, the contract owner may not participate in any of the dollar cost averaging programs otherwise available under the contract. For any contract owner participating in a dollar cost averaging program that elects this option after the contract issue date the dollar cost averaging program will be terminated.

In exchange for this lifetime withdrawal benefit, Nationwide will assess an annual charge not to exceed 1.00% of the Current Income Benefit Base. The current charge for the 7% Lifetime Income Option is 0.70% of the Current Income Benefit Base. (Once a 7% Lifetime Income Option is elected, the charge percentage will not change, except, possibly, upon the contract owner’s election to reset the benefit base, as discussed herein.) The charge will be assessed on each anniversary of the date the 7% Lifetime Income Option was added to the contract (the “7% L.Inc anniversary”) and will be deducted via redemption of accumulation units. A prorated charge will also be deducted upon full surrender of the contract. Accumulation units will be redeemed proportionally from each sub-account in which the contract owner is invested at the time the charge is taken. Amounts redeemed as the 7% Lifetime Income Option charge will not negatively impact calculations associated with other benefits elected or available under the contract, will not be subject to a CDSC, and will not reduce amounts available under the CDSC-free withdrawal privilege.

Election of the 7% Lifetime Income Option requires that the contract owner, from that point forward (until annuitization), allocate the entire contract value to a limited set of investment options currently available in the contract. For the list of investment options available under this benefit please see “Income Benefit Investment Options” later in this prospectus. Allocation to a GTO and/or the fixed account is not permitted. The contract owner may reallocate the contract value among the limited set of investment options in accordance with the “Transfers Prior to Annuitization” provision. Once this option is elected, contract loans are unavailable.

Currently, subsequent purchase payments are permitted under a 7% Lifetime Income Option as long as the contract value is greater than zero. There may be instances where a subsequent purchase payment creates a financial risk that Nationwide is unwilling to bear. If this occurs, Nationwide may exercise its right to refuse subsequent purchase payments over $50,000. If Nationwide exercises this right to refuse a purchase payment, the contract owner will be immediately notified via telephone and a letter will be sent with the returned purchase payment.

Determination of the Income Benefit Base Prior to the First Surrender

At the time the 7% Lifetime Income Option is added to the contract, the original Income Benefit Base is equal to the contract value. When the Income Benefit Base is first calculated and each time it is recalculated, as described below, this is known as your Current Income Benefit Base. For the first 10 years after the 7% Lifetime Income Option is elected

(provided no surrenders are taken from the contract), the Current Income Benefit Base will equal the greater of:

(1)	the highest contract value on any 7% L.Inc anniversary plus purchase payments submitted and credits applied after that L.Inc anniversary; or

(2)	the sum of the following (the “7% simple interest calculation”):

(a)

the original Income Benefit Base, 7% of the original Income Benefit Base for each attained 7% L.Inc anniversary; and

(b)

purchase payments submitted and credits applied after the 7% Lifetime Income Option is elected, plus 7% of such purchase payments or credits for each attained 7% L.Inc anniversary after the first plus a prorated amount based upon the number of days from the date of such purchase payment or credit to its first 7% L.Inc anniversary for contracts issued on or after September 4, 2007.

After the 10^th 7% L.Inc anniversary (provided no surrenders are taken from the contract), the Current Income Benefit Base will equal the greater of:

(1)	the highest contract value on any 7% L.Inc anniversary plus purchase payments submitted and credits applied after that 7% L.Inc anniversary; or

(2)	the simple interest calculation calculated on the 10^th 7% L.Inc anniversary plus any purchase payments submitted and credits applied after the 10^th 7% L.Inc anniversary.

However, if at any time prior to the first surrender the contract value equals zero, no further Income Benefit Base calculations will be made. The Current Income Benefit Base will be set equal to the Income Benefit Base calculated on the most recent 7% L.Inc anniversary, and the annual benefit amount will be based on that Current Income Benefit Base.

Lifetime Income Surrenders

At any time after the 7% Lifetime Income Option is elected, the contract owner may begin taking the lifetime income benefit by taking a surrender from the contract. Nationwide will surrender accumulation units proportionally from the sub-accounts as of the date of the surrender request. As with any surrender, lifetime income surrenders reduce the contract value and consequently, the amount available for annuitization.

At the time of the first surrender, the Current Income Benefit Base is locked in and will not change unless the contract owner takes excess surrenders, elects a reset opportunity (both discussed later in this provision), or submits additional purchase payments. Additional purchase payments submitted after the first surrender from the contract will increase the Current Income Benefit Base by the amount of the purchase payment.

Simultaneously, the lifetime income percentage is determined based on the age of the contract owner as indicated in the following table:

Contract Owner’s Age (at time of first surrender)	7% Lifetime Income Percentage
45 up to 59½	4%
59½ through 66	5%
67 through 71	5.5%
72 through 80	6%
81 and older	7%

At the time of the first surrender and on each 7% L.Inc anniversary thereafter, the lifetime income percentage is multiplied by the Current Income Benefit Base to determine the benefit amount for that year. The benefit amount is the maximum amount that can be surrendered from the contract before the next 7% L.Inc anniversary without reducing the Current Income Benefit Base. The ability to surrender the current benefit amount will continue until the earlier of the contract owner’s death or annuitization.

Although surrenders up to the benefit amount do not reduce the Current Lifetime Benefit Base, they do reduce the contract value and the death benefit, and are subject to the CDSC provisions of the contract.

Contingent Deferred Sales Charges

A withdrawal under the benefit may cause a CDSC to apply (see "Contingent Deferred Sales Charges" earlier in this prospectus). Application of a CDSC could result in the gross surrender being greater than the 7% Lifetime Income Percentage limit. For example, the amount of the surrender request plus the applicable CDSC could exceed the 7% Lifetime Income Percentage limit. If applicable, contract owners can request to receive a specific dollar amount of withdrawal (i.e., Nationwide will gross up the withdrawal to include the CDSC amount) or to receive the withdrawal net of the CDSC amount. In either case, the gross amount of the surrender (i.e., including the CDSC) is the amount used to determine whether the withdrawal exceeds the 7% Lifetime Income Percentage limit. A reduction to the Current Income Benefit Base will be applied as described in the "Impact of Withdrawals in Excess of the 7% Lifetime Income Percentage Limit" provision if the gross surrender exceeds the 7% Lifetime Income Percentage limit.

The contract permits a percentage of purchase payments to be withdrawn free of CDSC each year (see "Waiver of Contingent Deferred Sales Charge" earlier in this prospectus). The total free withdrawal amount permitted (a percentage of purchase payments), however, may result in annual surrenders greater than the 7% Lifetime Income Percentage limit permitted by this benefit. In such case, the reduction described in the "Impact of Withdrawals in Excess of the 7% Lifetime Income Percentage Limit" provision will apply.

Impact of Withdrawals in Excess of the7% Lifetime Income Percentage Limit

The contract owner is permitted to surrender contract value in excess of that year’s benefit amount provided that the contract value is greater than zero. Surrenders in excess of the benefit amount will reduce the Current Income Benefit Base, and consequently, the benefit amount calculated for subsequent years. In the event of excess surrenders, the Current Income Benefit Base will be reduced by the greater of:

(1)	the dollar amount of the surrender in excess of the benefit amount; or

(2)	the ratio of the dollar amount of the excess surrender to the contract value (which has been reduced by the amount of the benefit amount surrendered), multiplied by the Current Income Benefit Base.

In situations where the contract value exceeds the existing Current Income Benefit Base, excess surrenders will typically result in a dollar amount reduction to the new Current Income Benefit Base. In situations where the contract value is less than the existing Current Income Benefit Base, excess surrenders will typically result in a proportional reduction to the new Current Income Benefit Base.

Currently, Nationwide allows for an “RMD privilege” whereby Nationwide permits a contract owner to surrender contract value in excess of the benefit amount without reducing the Current Income Benefit Base if such excess surrender is for the sole purpose of meeting Internal Revenue Code required minimum distributions for this contract. This RMD privilege does not apply to IRA contract types owned by non-spousal beneficially owned contracts. In order to qualify for the RMD privilege, the contract owner must participate in Nationwide’s required minimum distribution program. Nationwide reserves the right to modify or eliminate the RMD privilege if there is any change to the Internal Revenue Code or IRS rules relating required minimum distributions, including the issuance of relevant IRS guidance. If Nationwide exercises its right to modify or eliminate this privilege then any distribution in excess of your benefit amount will reduce your remaining current Income Benefit Base.

Once the contract value falls to zero, the contract owner is no longer permitted to submit additional purchase payments or take surrenders in excess of the benefit amount.

Reset Opportunities

If the terms and conditions of the 7% Lifetime Income Option have not changed and the contract value exceeds the existing Current Income Benefit Base on a 7% L.Inc anniversary, Nationwide will automatically reset the Income Benefit Base to become your new Current Income Benefit Base. If the terms and conditions of 7% Lifetime Income Option have changed, Nationwide will provide the contract owner with the contract value and Current Income Benefit Base information and will provide instructions on how to communicate an election to reset the benefit base. If the contract owner elects to reset the Current Income Benefit Base, it will be at the then current terms and conditions of the option. If Nationwide does not receive a contract owner’s election to reset the Current Income Benefit Base within 60 days after the 7% L.Inc anniversary, Nationwide will assume that the contract owner does not wish to reset the Current Income Benefit Base.

The automatic reset privilege will cease anytime the terms and conditions of the 7% Lifetime Income Option changes. Nationwide will notify the contract owner anytime the terms and conditions of the 7% Lifetime Income Option changes and will provide the contract owner with an opportunity to confirm whether to reset the Current Income Benefit Base under the updated 7% Lifetime Income Option charge. If the contract owner does not elect to reset the Current Income Benefit Base within 60 days after the 7% L.Inc anniversary date, the Current Income Benefit Base and 7% Lifetime Income Option charges will not change. Contract owners may cancel the election to automatically reset the Current Income Benefit Base at any time. Nationwide reserves the right to modify or cancel the contract owners’ ability to automatically reset the Current Income Benefit Base.

Lump Sum Settlement Options for the Lifetime Income Option

If contract value is zero and the Current Income Benefit Base is greater than zero Nationwide will notify the contract owner of the following three options:

The contract owner can continue to take withdrawals equal to the Lifetime Income Percentage until the death of the contract owner;

The contract owner may elect the Age Based lump sum settlement option described below; or

The contract owner may elect the Underwritten lump sum settlement option as described below.

The settlement option you select will affect the amount you ultimately receive under the 7% Lifetime Income Benefit Option. Before you select a settlement option you should consult with your financial advisor to determine which option is best for you based on your individual financial situation and needs.

The contract owner will have 60 days from the date of Nationwide’s notification letter to make an election. Once the contract owner makes an election the election is irrevocable. If the contract owner does not make an election within the 60 days Nationwide will assume that the contract owner desires to continue to take withdrawals under the Lifetime Income Option.

Age Based Lump Sum Settlement Option for the Lifetime Income Option

Instead of continuing to take withdrawals under Lifetime Income Option after the contract value falls to zero and the Current Income Benefit Base is greater than zero, Nationwide permits a contract owner to take an Age Based lump sum settlement equal to the contract owner’s current benefit amount multiplied by the Annual Benefit Multiplier listed below:

Contract Owner’s Age	Annual Benefit Multiplier
Up to Age 70	5.5
71-75	4.5
76-80	3.5
81-85	2.5
86-90	2.0
91-95	1.5
96+	1.0

For contracts that have elected the Spousal Continuation Benefit and both spouses are alive on the date this option is elected Nationwide will use the age of the younger contract owner minus three years to determine the Annual Benefit Multiplier.

Underwritten Lump Sum Settlement Option for the Lifetime Income Option

Nationwide also makes an Underwritten lump sum settlement option available to contract owners after the contract value falls to zero and the Current Income Benefit Base is greater than zero. The Underwritten lump sum settlement amount shall be based upon the attained age, sex, and health information provided by the contract owner on a Nationwide form attested to by a certified physician chosen by the contract owner. The Underwritten lump sum settlement option will generally pay a larger amount than the Age Based lump sum settlement option when a contract owner is healthier than the normal population. Regardless of age or health, the Underwritten lump sum settlement amount will never be less than the Lump Sum Settlement Option amounts shown in the chart above.

Termination of Benefit

Upon annuitization of the contract, the charge associated with this option will no longer be assessed and all benefits associated with the Lifetime Income Option will terminate. Additionally, upon the contract owner’s death the benefits associated with the option terminate (unless the Spousal Continuation Benefit was also elected).

Spousal Continuation Benefit

For an additional charge of 0.15% of the Current Income Benefit Base, the contract owner can elect, at the time either Lifetime Income Option is elected, to add a Spousal Continuation Benefit (not available for contracts issued as Charitable Remainder Trusts). The Spousal Continuation Benefit allows a surviving spouse to continue to receive, for the duration of his/her lifetime, the benefit associated with the Lifetime Income Option, provided that the following conditions are satisfied:

(1)	The Spousal Continuation Benefit must be elected at the time the Lifetime Income Option is elected, and both spouses must be between 45 and 85 years old at that time.

(2)	Once the Spousal Continuation Benefit is elected, it may not be removed from the contract, except as provided below.

(3)	The lifetime income percentage will be based on the age of the younger spouse as of the date of the first surrender from the contract.

(4)	One or both spouses (or a revocable trust of which either or both of the spouses is/are grantor(s)) must be named as the contract owner. For contracts issued as IRAs and Roth IRAs, only the person for whom the IRA or Roth IRA was established may be named as the contract owner.

(5)	Both spouses must be named as primary beneficiaries. For contracts with non-natural owners, both spouses must be named as co-annuitants.

(6)	No person other than the spouse may be named as contract owner, annuitant or primary beneficiary.

(7)	If both spouses are alive upon annuitization, the contract owner must specify which spouse is the annuitant upon whose continuation of life any annuity payments involving life contingencies depend (for IRA and Roth IRA contracts, this person must be the contract owner).

If, prior to taking any surrenders from the contract, the marriage terminates due to divorce, dissolution, or annulment, the contract owner may remove the Spousal Continuation Benefit from the contract. Nationwide will remove the benefit and the associated charge upon the contract owner’s written request and evidence of the marriage termination satisfactory to Nationwide. Once the Spousal Continuation Benefit is removed from the contract, the benefit may not be re-elected or added to cover a subsequent spouse.

If, after taking any surrender from the contract, the marriage terminates due to divorce, dissolution, or annulment, the contract owner may not remove the Spousal Continuation Benefit from the contract.

Taxation of Surrenders under the 7% Lifetime Income Option

While the tax treatment for surrenders for benefits such as the Lifetime Income Options are not clear under federal tax law, Nationwide currently treats these surrenders as taxable to the extent that the cash value of the contract exceeds the contract owner’s investment at the time of the surrender. Please consult a qualified tax advisor.

5% Lifetime Income Options

The 5% Lifetime Income Option provides for lifetime withdrawals, up to a certain amount each year, even after the contract value is zero. The age of the person upon which the benefit depends (the “determining life”) must be between 45 and 85 years old at the time the 5% Lifetime Income Option is elected. For most contracts, the determining life is that of the primary contract owner. For those contracts where the contract owner is a non-natural person, for purposes of this option, the determining life is that of the primary annuitant, and all references in this option to “contract owner” shall mean primary annuitant. The determining life may not be changed.

Currently, the 5% Lifetime Income Option is only available in the state of New York.

The 5% Lifetime Income Options may not be elected if a loan is outstanding on the contract or if any of the following optional benefits are elected: the 7% Lifetime Income Option, , Capital Preservation Plus Option, or the Capital Preservation Plus Lifetime Income Option. Once this option is elected, the contract owner may not participate in any of the dollar cost averaging programs otherwise available under the contract. For any contract owner participating in a dollar cost averaging program that elects this option after the contract issue date the dollar cost averaging program will be terminated.

In exchange for this lifetime withdrawal benefit, Nationwide will assess an annual charge not to exceed 1.00% of the Current Income Benefit Base. The current charge for the 5% Lifetime Income Options is 0.60% of the Current Income Benefit Base. (Once the 5% Lifetime Income Option is

elected, the charge percentage will not change, except, possibly, upon the contract owner’s election to reset the benefit base, as discussed herein.) The charge will be assessed on each anniversary of the date the 5% Lifetime Income Option was added to the contract (the “5% L.Inc anniversary”) and will be deducted via redemption of accumulation units. A prorated charge will also be deducted upon full surrender of the contract. Accumulation units will be redeemed proportionally from each sub-account in which the contract owner is invested at the time the charge is taken. Amounts redeemed as the 5% Lifetime Income Option charge will not negatively impact calculations associated with other benefits elected or available under the contract, will not be subject to a CDSC, and will not reduce amounts available under the CDSC-free withdrawal privilege.

Election of the 5% Lifetime Income Option requires that the contract owner, from that point forward (until annuitization), allocate the entire contract value to a limited set of investment options currently available in the contract. For the list of investment options available under this benefit please see “Income Benefit Investment Options” later in this prospectus. Allocation to a GTO and/or the fixed account is not permitted. The contract owner may reallocate the contract value among the limited set of investment options in accordance with the “Transfers Prior to Annuitization” provision. Once this option is elected, contract loans are unavailable.

Currently, subsequent purchase payments are permitted under a 5% Lifetime Income Option as long as the contract value is greater than zero. There may be instances where a subsequent purchase payment creates a financial risk that Nationwide is unwilling to bear. If this occurs, Nationwide may exercise its right to refuse subsequent purchase payments over $50,000. If Nationwide exercises this right to refuse a purchase payment, the contract owner will be immediately notified via telephone and a letter will be sent with the returned purchase payment.

Determination of the Income Benefit Base Prior to the First Surrender

At the time the 5% Lifetime Income Option is added to the contract, the original Income Benefit Base is equal to the contract value. When the Income Benefit Base is first calculated and each time it is recalculated, as described below, this is known as your Current Income Benefit Base. For the first 10 years after the 5% Lifetime Income Option is elected (provided no surrenders are taken from the contract), the Current Income Benefit Base will equal the greater of:

(1)	the highest contract value on any 5% L.Inc anniversary plus purchase payments submitted and credits applied after that 5% L.Inc anniversary; or

(2)	the sum of the following (the “simple interest calculation”):

(a)

the original Income Benefit Base, or 5% of the original Income Benefit Base for each attained 5% L.Inc anniversary; and

(b)

purchase payments submitted and credits applied after the 5% Lifetime Income Option is elected, plus 5% of such purchase payments or credits for each attained 5% L.Inc anniversary after the first plus a prorated amount based upon the number of days from the date of such purchase payment or credit to its first 5% L.Inc anniversary.

After the 10^th 5% L.Inc anniversary (provided no surrenders are taken from the contract), the Current Income Benefit Base will equal the greater of:

(1)	the highest contract value on any 5% L.Inc anniversary plus purchase payments submitted and credits applied after that 5% L.Inc anniversary; or

(2)	the simple interest calculation calculated on the 10^th 5% L.Inc anniversary plus any purchase payments submitted and credits applied after the 10^th 5% L.Inc anniversary.

However, if at any time prior to the first surrender the contract value equals zero, no further Income Benefit Base calculations will be made. The Current Income Benefit Base will be set equal to the Current Income Benefit Base calculated on the most recent 5% L.Inc anniversary, and the annual benefit amount will be based on that Income Benefit Base.

Lifetime Income Surrenders

At any time after the 5% Lifetime Income Option is elected, the contract owner may begin taking the lifetime income benefit by taking a surrender from the contract. Nationwide will surrender accumulation units proportionally from the sub-accounts as of the date of the surrender request. As with any surrender, lifetime income surrenders reduce the contract value and consequently, the amount available for annuitization.

Simultaneously, the lifetime income percentage is determined based on the age of the contract owner as indicated in the following table:

Contract Owner’s Age (at time of first surrender)	5% Lifetime Income Percentage
45 up to 59½	4%
59½ through 66	5%
67 through 71	5.5%
72 through 80	6%
81 and older	7%

At the time of the first surrender and on each 5% L.Inc anniversary thereafter, the lifetime income percentage is multiplied by the Current Income Benefit Base to determine the benefit amount for that year. The benefit amount is the maximum amount that can be surrendered from the contract before the next 5% L.Inc anniversary without reducing the Current Income Benefit Base. The ability to surrender the current benefit amount will continue until the earlier of the contract owner’s death or annuitization.

Although surrenders up to the benefit amount do not reduce the lifetime benefit base, they do reduce the contract value and the death benefit, and are subject to the CDSC provisions of the contract.

Contingent Deferred Sales Charges

A withdrawal under the benefit may cause a CDSC to apply (see "Contingent Deferred Sales Charges" earlier in this prospectus). Application of a CDSC could result in the gross surrender being greater than the 5% Lifetime Income Percentage limit. For example, the amount of the surrender request plus the applicable CDSC could exceed the 5% Lifetime Income Percentage limit. If applicable, contract owners can request to receive a specific dollar amount of withdrawal (i.e., Nationwide will gross up the withdrawal to include the CDSC amount) or to receive the withdrawal net of the CDSC amount. In either case, the gross amount of the surrender (i.e., including the CDSC) is the amount used to determine whether the withdrawal exceeds the 5% Lifetime Income Percentage limit. A reduction to the Current Income Benefit Base will be applied as described in the "Impact of Withdrawals in Excess of the 5% Lifetime Income Percentage Limit" provision if the gross surrender exceeds the 5% Lifetime Income Percentage limit.

The contract permits a percentage of purchase payments to be withdrawn free of CDSC each year (see "Waiver of Contingent Deferred Sales Charge" earlier in this prospectus). The total free withdrawal amount permitted (a percentage of purchase payments), however, may result in annual surrenders greater than the 5% Lifetime Income Percentage limit permitted by this benefit. In such case, the reduction described in the "Impact of Withdrawals in Excess of the 5% Lifetime Income Percentage Limit" provision will apply.

Impact of Withdrawals in Excess of the 5% Lifetime Income Percentage Limit

(1)	the dollar amount of the surrender in excess of the benefit amount; or

(2)	the ratio of the dollar amount of the excess surrender to the contract value (which has been reduced by the amount of the benefit amount surrendered), multiplied by the Current Income Benefit Base.

Once the contract value falls to zero, the contract owner is no longer permitted to submit additional purchase payments or take surrenders in excess of the benefit amount.

Reset Opportunities

Nationwide permits contract owners to elect to automatically reset the Current Income Benefit Base on each 5% L.Inc anniversary after the first surrender from the contract. For those who do not elect to automatically reset their Current Income Benefit Base, if the contract value exceeds the Current Income Benefit Base, the contract owner will have the opportunity to instruct Nationwide to reset the Current Income Benefit Base to equal the current contract value. Nationwide will provide the contract owner with the contract value and Current Income Benefit Base information and will provide instructions on how to communicate an election to reset the Current Income Benefit Base. If the contract owner elects to reset the Current Income Benefit Base, it will be at the then current terms and conditions of the option. If Nationwide does not receive a contract owner’s election to reset the Current Income Benefit Base within 60 days after the 5% L.Inc anniversary, Nationwide will assume that the contract owner does not wish to reset the Current Income Benefit Base.

A contract owner’s election to automatically reset the Current Income Benefit Base or the automatic reset provisions included in contracts issued on or after May 1, 2007 will cease anytime the terms and conditions of the 5% Lifetime Income Option changes. Nationwide will notify the contract owner anytime the terms and conditions of the 5% Lifetime Income Option changes and will provide the contract owner with an opportunity to confirm whether to reset the Current Income Benefit Base under the updated 5% Lifetime Income Option charge. If the contract owner does not elect to reset the Current Income Benefit Base within 60 days after the 5% L.Inc anniversary date, the Current Income Benefit Base and 5% Lifetime Income Option charges will not change. Contract owners may cancel the election to automatically reset the Current Income Benefit Base at any time. Nationwide reserves the right to modify or cancel the contract owners’ ability to automatically reset the Current Income Benefit Base.

Lump Sum Settlement Options for the Lifetime Income Option

If contract value is zero and the Current Income Benefit Base is greater than zero Nationwide will notify the contract owner of the following three options:

The contract owner can continue to take withdrawals equal to the Lifetime Income Percentage until the death of the contract owner;

The contract owner may elect the Age Based lump sum settlement option described below; or

The contract owner may elect the Underwritten lump sum settlement option as described below.

Age Based Lump Sum Settlement Option for the Lifetime Income Option

Contract Owner’s Age	Annual Benefit Multiplier
Up to Age 70	5.5
71-75	4.5
76-80	3.5
81-85	2.5
86-90	2.0
91-95	1.5
96+	1.0

Underwritten Lump Sum Settlement Option for the Lifetime Income Option

Termination of Benefit

Spousal Continuation Benefit

(1)	The Spousal Continuation Benefit must be elected at the time the Lifetime Income Option is elected, and both spouses must be between 45 and 85 years old at that time.

(2)	Once the Spousal Continuation Benefit is elected, it may not be removed from the contract, except as provided below.

(3)	The lifetime income percentage will be based on the age of the younger spouse as of the date of the first surrender from the contract.

(4)	One or both spouses (or a revocable trust of which either or both of the spouses is/are grantor(s)) must be named as the contract owner. For contracts issued as IRAs and Roth IRAs, only the person for whom the IRA or Roth IRA was established may be named as the contract owner.

(5)	Both spouses must be named as primary beneficiaries. For contracts with non-natural owners, both spouses must be named as co-annuitants.

(6)	No person other than the spouse may be named as contract owner, annuitant or primary beneficiary.

(7)	If both spouses are alive upon annuitization, the contract owner must specify which spouse is the annuitant upon whose continuation of life any annuity payments involving life contingencies depend (for IRA and Roth IRA contracts, this person must be the contract owner).

Taxation of Surrenders under the 5% Lifetime Income Option

Income Benefit Investment Options
Investment Option	Available in:
	CPP¹	CPPLI²	Enhanced CPP and CPPLI ³	5% L.Inc and 7% L.Inc⁴
AIM Variable Insurance Funds
AIM V.I. Basic Value Fund: Series II Shares	X	X
AIM V.I. Capital Appreciation Fund: Series II Shares	X	X
AIM V.I. Capital Development Fund: Series II Shares	X	X
American Century Variable Portfolios, Inc.
American Century VP Mid Cap Value Fund: Class II	X	X
American Century VP Value Fund: Class II	X	X
American Century VP Vista Fund: Class II	X	X
American Century Variable Portfolios II, Inc.
American Century VP Inflation Protection Fund: Class II	X	X
Dreyfus
Dreyfus Stock Index Fund, Inc.: Service Shares	X	X
Dreyfus Variable Investment Fund- Appreciation Portfolio: Service Shares	X	X
Federated Insurance Series
Federated Quality Bond Fund II: Service Shares	X	X
Fidelity Variable Insurance Products Fund
VIP Equity-Income Portfolio: Service Class 2	X	X
VIP Growth Portfolio: Service Class 2	X	X
VIP Contrafund® Portfolio Service Class 2	X	X
VIP Investment Grade Bond Portfolio: Service Class 2	X	X
VIP Mid Cap Portfolio: Service Class 2	X	X
VIP Freedom Fund 2010 Portfolio: Service Class 2	X	X	X⁵	X
VIP Freedom Fund 2020 Portfolio: Service Class 2	X	X	X⁶	X
VIP Freedom Fund 2030 Portfolio: Service Class 2	X	X	X⁶
Franklin Templeton Variable Insurance Products Trust
Franklin Income Securities Fund: Class 2	X	X

¹ Capital Preservation Plus Option

² Capital Preservation Plus Lifetime Income Option

³ Enhanced Capital Preservation Plus and Enhanced Capital Preservation Plus Lifetime Income Option

⁴ 5% Lifetime Income Option and 7% Lifetime Income Option

⁵ The seven year program duration is not available with this investment option.

⁶The five and seven year program durations are not available with this investment option.

	CPP ¹	CPPLI²	Enhanced CPP and CPPLI ³	5% L.Inc and 7% L.Inc⁴
Janus Aspen Series
Forty Portfolio: Service Share	X	X
INTECH Risk-Managed Core Portfolio: Service Shares	X	X
Lehman Brothers Advisers Management Trust
AMT Short Duration Bond Portfolio: I Class	X	X
MFS® Variable Insurance Trust	X	X
MFS Value Series: Service Class	X	X
Nationwide Variable Insurance Trust (NVIT)
American Funds NVIT Asset Allocation Fund: Class II	X	X	X⁶	X
American Funds NVIT Bond Fund: Class II	X	X
American Funds NVIT Growth Fund: Class II	X	X
American Funds NVIT Growth-Income Fund: Class II	X	X
Nationwide NVIT Government Bond Fund: Class II	X	X
Nationwide NVIT Investor Destinations Funds
Nationwide NVIT Investor Destinations Conservative Fund: Class II	X	X	X	X
Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II	X	X	X	X
Nationwide NVIT Investor Destinations Moderate Fund: Class II	X	X	X⁵	X
Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II	X	X	X⁶	X
Nationwide NVIT Investor Destinations Aggressive Fund: Class II	X	X	X⁶
Nationwide NVIT Mid Cap Growth Fund: Class II	X	X
Nationwide NVIT Money Market Fund: Class I	X	X
Nationwide NVIT U.S. Growth Leaders Fund: Class II	X	X
NVIT Mid Cap Index Fund	X	X
NVIT Nationwide® Fund: Class II	X	X
Van Kampen NVIT Comstock Value Fund	X	X
Neuberger Berman Advisers Management Trust
AMT Regency Portfolio: S Class	X	X
AMT Socially Responsive Portfolio: I Class	X	X
Oppenheimer Variable Account Funds
Oppenheimer Capital Appreciation Fund/VA: Service Shares	X	X
Oppenheimer Main Street Fund® /VA: Service Shares	X	X

¹ Capital Preservation Plus Option

² Capital Preservation Plus Lifetime Income Option

³ Enhanced Capital Preservation Plus and Enhanced Capital Preservation Plus Lifetime Income Option

⁴ 5% Lifetime Income Option and 7% Lifetime Income Option

⁵ The seven year program duration is not available with this investment option.

⁶ The five and seven year program durations are not available with this investment option.

	CPP¹	CPPLI²	Enhanced CPP and CPPLI ³	5% L.Inc and 7% L.Inc⁴
T. Rowe Price Equity Series, Inc.
T. Rowe Price Blue Chip Growth Portfolio: Class II	X	X
T. Rowe Price Equity Income Portfolio: Class II	X	X
T. Rowe Price Limited Term Bond Portfolio: Class II	X	X
Van Kampen
The Universal Institutional Funds, Inc. Core Plus Fixed Income Portfolio	X	X
Static Asset Allocation Models
American Funds Option (33% American Funds NVIT Asset Allocation Fund, 33% American Funds NVIT Bond Fund and 34% American Funds NVIT Growth-Income Fund)		X	X	X
Balanced Option (50% Nationwide NVIT Investor Dest. Moderate Fund and 50% Nationwide NVIT Investor Dest. Moderately Conservative Fund)	X	X	X	X
Capital Appreciation Option (50% Nationwide NVIT Investor Dest. Moderate Fund and 50% Nationwide NVIT Investor Dest. Moderately Aggressive Fund)	X	X	X⁵	X
The following underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2007:
American Century Variable Products, Inc.
American Century VP Ultra Fund: Class II	X	X
The following underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006:
Fidelity Variable Products Fund
VIP Value Strategies Portfolio: Service Class 2	X	X
Franklin Templeton Variable Insurance Products Trust
Franklin Rising Dividends Securities Fund: Class 2	X	X
MFS Variable Insurance Trust
MFS Investors Growth Stock Fund: Service Class	X	X
The following underlying mutual funds are only available in contracts for which good order applications were received before May 1, 2005:
Putnam Variable Trust
Putnam VT Growth and Income Fund: Class IB	X	X
Putnam VT Voyager Fund: Class IB	X	X
The following underlying mutual funds are only available in contracts for which good order applications were received before May 1, 2004
AllianceBernstein Variable Products Series Fund, Inc.
AllianceBernstein Growth and Income Portfolio: Class B	X	X
American Century Variable Products, Inc.
American Century VP Income & Growth Fund: Class II	X	X

¹ Capital Preservation Plus Option

² Capital Preservation Plus Lifetime Income Option

³ Enhanced Capital Preservation Plus and Enhanced Capital Preservation Plus Lifetime Income Option

⁴ 5% Lifetime Income Option and 7% Lifetime Income Option

⁵ The seven year program duration is not available with this investment option.

⁶ The five and seven year program durations are not available with this investment option.

	CPP¹	CPPLI²	Enhanced CPP and CPPLI ³	5% L.Inc and 7% L.Inc ⁴
Federated Insurance Series
Federated American Leaders Fund II: Service Shares	X	X
Federated Capital Appreciation Fund II: Service Shares	X	X
Janus Aspen Series
Balanced Portfolio: Service Shares	X	X
Neuberger Berman Advisers Management Trust
AMT Mid Cap Growth Portfolio: S Class	X	X

¹ Capital Preservation Plus Option

² Capital Preservation Plus Lifetime Income Option

³ Enhanced Capital Preservation Plus and Enhanced Capital Preservation Plus Lifetime Income Option

⁴ 5% Lifetime Income Option and 7% Lifetime Income Option

Removal of Variable Account Charges

For certain optional benefits, a charge is assessed only for a specified period of time. To remove a variable account charge at the end of the specified charge period, Nationwide systematically re-rates the contract. This re-rating results in lower contract charges, but no change in contract value or any other contractual benefit.

Re-rating involves two steps: the adjustment of contract expenses and the adjustment of the number of units in the contract.

The first step, the adjustment of contract expenses, involves removing the charge from the unit value calculation. For example, on a contract where the only optional benefit elected is the 3% Extra Value Option, the variable account value will be calculated using unit values with variable account charges of 1.55% for the first 7 contract years. At the end of that period, the contract will be re-rated, and the 0.45% charge associated with the 3% Extra Value Option will be removed. From that point on, the variable account value will be calculated using the unit values with variable account charges at 1.10%. Thus, the 3% Extra Value Option charge is no longer included in the daily sub-account valuation for the contract.

The second step of the re-rating process, the adjustment of the number of units in the contract, is necessary in order to keep the re-rating process from altering the contract value. Generally, for any given sub-account, the higher the variable account charges, the lower the unit value, and vice versa. For example, sub-account X with charges of 1.55% will have a lower unit value than sub-account X with charges of 1.10% (higher expenses result in lower unit values). When, upon re-rating, the unit values used in calculating variable account value are dropped from the higher expense level to the lower expense level, the higher unit values will cause an incidental increase in the contract value. In order to avoid this incidental increase, Nationwide adjusts the number of units in the contract down so that the contract value after the re-rating is the same as the contract value before the re-rating.

Ownership and Interests in the Contract

Contract Owner

Prior to the annuitization date, the contract owner has all rights under the contract, unless a joint owner is named. If a joint owner is named, each joint owner has all rights under the contract. Purchasers who name someone other than themselves as the contract owner will have no rights under the contract.

On the annuitization date, the annuitant becomes the contract owner, unless the contract owner is a Charitable Remainder Trust. If the contract owner is a Charitable Remainder Trust, the Charitable Remainder Trust continues to be the contract owner after annuitization.

Contract owners of Non-Qualified Contracts may name a new contract owner at any time before the annuitization date. Any change of contract owner automatically revokes any prior contract owner designation. Changes in contract ownership may result in federal income taxation and may be subject to state and federal gift taxes.

Joint Owner

Joint owners each own an undivided interest in the contract.

Non-Qualified contract owners can name a joint owner at any time before annuitization. However, joint owners must be spouses at the time joint ownership is requested, unless state law requires Nationwide to allow non-spousal joint owners.

Generally, the exercise of any ownership rights under the contract must be in writing and signed by both joint owners. However, if a written election, signed by both contract owners, authorizing Nationwide to allow the exercise of ownership rights independently by either joint owner is submitted, Nationwide will permit joint owners to act independently. If such an authorization is submitted, Nationwide will not be liable for any loss, liability, cost, or expense for acting in accordance with the instructions of either joint owner.

If either joint owner dies before the annuitization date, the contract continues with the surviving joint owner as the remaining contract owner.

Contingent Owner

The contingent owner succeeds to the rights of a contract owner if a contract owner who is not the annuitant dies before the annuitization date, and there is no surviving joint owner.

If a contract owner who is the annuitant dies before the annuitization date, the contingent owner will not have any rights under the contract, unless such contingent owner is also the beneficiary.

The contract owner may name a contingent owner at any time before the annuitization date.

Annuitant

The annuitant is the person who will receive annuity payments and upon whose continuation of life any annuity payment involving life contingencies depends. This person must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for an annuitant of greater age.

Only Non-Qualified Contract owners may name someone other than himself/herself as the annuitant.

The contract owner may not name a new annuitant without Nationwide's consent.

Contingent Annuitant

If the annuitant dies before the annuitization date, the contingent annuitant becomes the annuitant. The contingent annuitant must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for a contingent annuitant of greater age.

If a contingent annuitant is named, all provisions of the contract that are based on the annuitant's death prior to the annuitization date will be based on the death of the last survivor of the annuitant and contingent annuitant.

Co-Annuitant

A co-annuitant, if named, must be the annuitant's spouse. The co-annuitant may be named at any time prior to annuitization and will receive the benefit of any spousal protection option elected.

If either co-annuitant dies before the annuitization date, the surviving co-annuitant may continue the contract and will receive the benefit of any spousal protection option elected.

Joint Annuitant

The joint annuitant is designated as a second person (in addition to the annuitant) upon whose continuation of life any annuity payment involving life contingencies depend. This person must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for a joint annuitant of greater age.

The contract owner may name a joint annuitant at any time before the annuitization date.

Beneficiary and Contingent Beneficiary

The beneficiary is the person who is entitled to the death benefit if the annuitant dies before the annuitization date and there is no joint owner. The contract owner can name more than one beneficiary. Multiple beneficiaries will share the death benefit equally, unless otherwise specified.

A contingent beneficiary will succeed to the rights of the beneficiary if no beneficiary is alive when a death benefit is paid. The contract owner can name more than one contingent beneficiary. Multiple contingent beneficiaries will share the death benefit equally, unless otherwise specified.

Changes to the Parties to the Contract

Prior to the annuitization date (and subject to any existing assignments), the contract owner may request to change the following:

·	contract owner (Non-Qualified Contracts only);

·	joint owner (must be the contract owner's spouse);

·	contingent owner;

·	annuitant (subject to Nationwide's underwriting and approval);

·	contingent annuitant (subject to Nationwide's underwriting and approval);

·	co-annuitant (must be the annuitant's spouse);

·	joint annuitant (subject to Nationwide's underwriting and approval);

·	beneficiary; or

·	contingent beneficiary.

The contract owner must submit the request to Nationwide in writing and Nationwide must receive the request at its home office before the annuitization date. Once Nationwide receives and records the change request, the change will be effective as of the date the written request was signed, whether or not the contract owner or annuitant is living at the time it was recorded. The change will not affect any action taken by Nationwide before the change was recorded.

In addition to the above requirements, any request to change the contract owner must be signed by the existing contract owner and the person designated as the new contract owner. Nationwide may require a signature guarantee.

If the contract owner is not a natural person and there is a change of the annuitant, distributions will be made as if the contract owner died at the time of the change, regardless of whether the contract owner named a contingent annuitant.

Nationwide reserves the right to reject any change request that would alter the nature of the risk that Nationwide assumed when it originally issued the contract (see "Purpose of the Contract" earlier in this prospectus).

Operation of the Contract

Minimum Initial and Subsequent Purchase Payments

Contract Type	Minimum Initial Purchase Payment*	Minimum Subsequent Payments**
Charitable Remainder Trust	$5,000	$500
IRA	$3,000	$500
Investment-Only	$3,000	$500
Non-Qualified	$5,000	$500
Roth IRA	$3,000	$500
SEP IRA	$3,000	$500
Simple IRA	$3,000	$500
Tax Sheltered Annuity	$3,000	$500

*A contract owner will meet the minimum initial purchase payment requirement by making purchase payments equal to the required minimum over the course of the first contract year.

**For subsequent purchase payments sent via electronic deposit, the minimum subsequent purchase payment is $50.

Subsequent purchase payments may not be permitted in all states.

The cumulative total of all purchase payments under contracts issued by Nationwide on the life of any one annuitant cannot exceed $1,000,000 without Nationwide's prior consent. Nationwide's consent is contingent on a risk analysis that may involve a medical evaluation.

Guaranteed Term Options

Guaranteed Term Options are separate investment options under the contract. The minimum amount that may be allocated to a Guaranteed Term Option is $1,000.

Purchase Payment Credits

Purchase Payment Credits ("PPCs") are additional credits that Nationwide will apply to a contract when cumulative purchase payments reach certain aggregate levels.

Each time a contract owner submits a purchase payment, Nationwide will perform a calculation to determine if and how many PPCs are payable as a result of that particular deposit. The formula used to determine the amount of the PPC is as follows:

	(Cumulative Purchase Payments x PPC%)
–	PPCs Paid to Date
=	PPCs Payable

Cumulative Purchase Payments = the total of all purchase payments applied to the contract, including the current deposit, minus any surrenders.

PPC% = either 0.0%, 0.5%, or 1.0%, depending on the level of Cumulative Purchase Payments as follows:

If Cumulative Purchase Payments are . . .	Then the PPC% is . . .
$0 - $499,999	0.0% (no PPC is payable)
$500,000 - $999,999	0.5%
$1,000,000 or more	1.0%

PPCs Paid to Date = the total PPCs that Nationwide has already applied to the contract.

PPCs Payable = the PPCs that Nationwide will apply to the contract as a result of the current deposit.

For example, on March 1, Ms. Z makes an initial deposit of $200,000 to her contract. She does not receive a PPC since her Cumulative Purchase Payments are less than $500,000.

On April 1, Ms. Z applies additional purchase payments of $350,000. Cumulative Purchase Payments now equal $550,000. Nationwide will apply PPCs to Ms. Z's contract equal to $2,750, which is (0.5% x $550,000) - $0.

On May 1, Ms. Z takes a surrender of $150,000. Cumulative Purchase Payments now equal $400,000.

On June 1, Ms. Z applies additional purchase payments of $500,000. Cumulative Purchase Payments now equal $900,000. Nationwide will apply PPCs to Ms. Z's contract equal to $1,750, which is ($900,000 x 0.5%) - $2,750. At this point in time, a total of $4,500 in PPCs have been applied to Ms. Z's contract.

On July 1, Ms. Z applies additional purchase payments of $300,000. Cumulative Purchase Payments now equal $1,200,000. Nationwide will apply PPCs to Ms. Z's contract equal to $7,500, which is ($1,200,000 x 1.0%) - $4,500. At this point in time, a total of $12,000 in PPCs have been applied to Ms. Z's contract.

PPCs are considered earnings, not purchase payments, and they will be allocated in the same proportion that purchase payments are allocated on the date the PPCs are applied.

All PPCs are fully vested after the end of the contractual free-look period.

When determining PPCs Nationwide will include the purchase payments in this contract, as well as the purchase payments of any other Nationwide annuity contract issued to an immediate family member made within the 12 months before the purchase of this contract. Immediate family members include spouses, children, or other family members living within the contract owner’s household. In order to be considered for PPCs, the contract owner must notify Nationwide in writing of all Nationwide annuity contracts owned by the contract owner or immediate family members.

Pricing

Initial purchase payments allocated to sub-accounts will be priced at the accumulation unit value determined no later than 2 business days after receipt of an order to purchase if the application and all necessary information are complete. If the application is not complete, Nationwide may retain a purchase payment for up to 5 business days while attempting to complete it. If the application is not completed within 5 business days, the prospective purchaser will be informed of the reason for the delay. The purchase payment will be returned unless the prospective purchaser specifically allows Nationwide to hold the purchase payment until the application is completed.

Subsequent purchase payments allocated to sub-accounts will be priced at the next available accumulation unit value after the payment is received.

Except on the days listed below and on weekends, purchase payments, transfers and surrenders are priced every day. Purchase payments will not be priced when the New York Stock Exchange is closed or on the following nationally recognized holidays:

·New Year's Day	·Independence Day
·Martin Luther King, Jr. Day	·Labor Day
·Presidents' Day	·Thanksgiving
·Good Friday	·Christmas
·Memorial Day

Nationwide also will not price purchase payments, surrenders or transfers if:

(1)	trading on the New York Stock Exchange is restricted;

(2)	an emergency exists making disposal or valuation of securities held in the variable account impracticable; or

(3)	the SEC, by order, permits a suspension or postponement for the protection of security holders.

Rules and regulations of the SEC will govern as to when the conditions described in (2) and (3) exist. If Nationwide is closed on days when the New York Stock Exchange is open, the contract owner will not have access to their account and contract value may be effected.

Allocation of Purchase Payments

Nationwide allocates purchase payments to sub-accounts, the fixed account and/or Guaranteed Term Options as instructed by the contract owner. Shares of the underlying mutual funds allocated to the sub-accounts are purchased at net asset value, then converted into accumulation units. Nationwide reserves the right to limit or refuse purchase payments allocated to the fixed account at its sole discretion.

Contract owners can change future allocations to the sub-accounts, fixed account or Guaranteed Term Options. However, no change may be made that would result in an amount less than 1% of the purchase payments being allocated to any sub-account. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

Determining the Contract Value

The contract value is the sum of:

(1)	the value of amounts allocated to the sub-accounts of the variable account; and

(2)	amounts allocated to the fixed account; and

(3)	amounts allocated to a Guaranteed Term Option.

If charges are assessed against the whole contract value, Nationwide will deduct a proportionate amount from each sub-account, the fixed account and any Guaranteed Term Option based on current cash values.

Determining Variable Account Value – Valuing an Accumulation Unit

Sub-account allocations are accounted for in accumulation units. Accumulation unit values (for each sub-account) are determined by calculating the net investment factor for the underlying mutual funds for the current valuation period and multiplying that result with the accumulation unit values determined on the previous valuation period.

Nationwide uses the net investment factor as a way to calculate the investment performance of a sub-account from valuation period to valuation period. For each sub-account, the net investment factor shows the investment performance of the underlying mutual fund in which a particular sub-account invests, including the charges assessed against that sub-account for a valuation period.

The net investment factor for any particular sub-account is determined by dividing (a) by (b), and then subtracting (c) from the result, where:

(a)	is the sum of:

(1)	the net asset value of the underlying mutual fund as of the end of the current valuation period; and

(2)	the per share amount of any dividend or income distributions made by the underlying mutual fund (if the date of the dividend or income distribution occurs during the current valuation period).

(b)	is the net asset value of the underlying mutual fund determined as of the end of the preceding valuation period.

(c)

is a factor representing the daily total variable account charges, which may include charges for optional benefits elected by the contract owner. The factor is equal to an annualized rate ranging from 1.10% to 3.55% of the daily net assets of the variable account, depending on which optional benefits the contract owner elects.

Based on the change in the net investment factor, the value of an accumulation unit may increase or decrease. Changes in the net investment factor may not be directly proportional to changes in the net asset value of the underlying mutual fund shares because of the deduction of variable account charges.

Though the number of accumulation units will not change as a result of investment experience, the value of an accumulation unit may increase or decrease from valuation period to valuation period.

Determining Fixed Account Value

Nationwide determines the value of the fixed account by:

(1)	adding all amounts allocated to the fixed account, minus amounts previously transferred or surrendered;

(2)	adding any interest earned on the amounts allocated to the fixed account; and

(3)	subtracting charges deducted in accordance with the contract.

Determining the Guaranteed Term Option Value

Nationwide determines the value of a Guaranteed Term Option by:

(1)	adding all amounts allocated to the Guaranteed Term Options, minus amounts previously transferred or surrendered (including any market value adjustment);

(2)	adding any interest earned on the amounts allocated to the Guaranteed Term Options; and

(3)	subtracting charges deducted in accordance with the contract.

Transfer Requests

Contract owners may submit transfer requests in writing, over the telephone, or via the internet. Nationwide will use reasonable procedures to confirm that instructions are genuine and will not be liable for following instructions that it reasonably determined to be genuine. Nationwide may restrict or withdraw the telephone and/or internet transfer privilege at any time.

Generally, sub-account transfers will receive the accumulation unit value next determined after the transfer request is received. However, if a contract that is limited to submitting transfer requests via U.S. mail submits a transfer request via the internet or telephone pursuant to Nationwide's one-day delay policy, the transfer will be executed on the next business day after the exchange request is received by Nationwide (see "Managers of Multiple Contracts").

Transfer Restrictions

Neither the contracts described in this prospectus nor the underlying mutual funds are designed to support active trading strategies that require frequent movement between or among sub-accounts (sometimes referred to as "market-timing" or "short-term trading"). A contract owner who intends to use an active trading strategy should consult his/her registered representative and request information on other Nationwide variable annuity contracts that offer underlying mutual funds that are designed specifically to support active trading strategies.

Nationwide discourages (and will take action to deter) short-term trading in this contract because the frequent movement between or among sub-accounts may negatively impact other investors in the contract. Short-term trading can result in:

·	the dilution of the value of the investors’ interests in the underlying mutual fund;

·	underlying mutual fund managers taking actions that negatively impact performance (keeping a larger portion of the underlying mutual fund assets in cash or liquidating investments prematurely in order to support redemption requests); and/or

·	increased administrative costs due to frequent purchases and redemptions.

To protect investors in this contract from the negative impact of these practices, Nationwide has implemented, or reserves the right to implement, several processes and/or restrictions aimed at eliminating the negative impact of active trading strategies. Nationwide makes no assurances that all risks associated with short-term trading will be completely eliminated by these processes and/or restrictions.

Nationwide cannot guarantee that its attempts to deter active trading strategies will be successful. If we are unable to deter active trading strategies, the performance of the sub-accounts that are actively traded may be adversely impacted.

Redemption Fees

Some underlying mutual funds assess a short-term trading fee in connection with transfers from a sub-account that occur within 60 days after the date of the allocation to the sub-account. The fee is assessed against the amount transferred and is paid to the underlying mutual fund. Redemption fees compensate the underlying mutual fund for any negative impact on fund performance resulting from short-term trading. For more information on short-term trading fees, please see the "Short-Term Trading Fees" provision.

U.S. Mail Restrictions

Nationwide monitors transfer activity in order to identify those who may be engaged in harmful trading practices. Transaction reports are produced and examined. Generally, a contract may appear on these reports if the contract owner (or a third party acting on their behalf) engages in a certain number of "transfer events" in a given period. A "transfer event" is any transfer, or combination of transfers, occurring on a given trading day (valuation period). For example, if a contract owner executes multiple transfers involving 10 underlying mutual funds in one day, this counts as one transfer event. A single transfer occurring on a given trading day and involving only 2 underlying mutual funds (or one underlying mutual fund if the transfer is made to or from the fixed account or a Guaranteed Term Option) will also count as one transfer event.

As a result of this monitoring process, Nationwide may restrict the method of communication by which transfer orders will be accepted.

In general, Nationwide will adhere to the following guidelines:

Trading Behavior	Nationwide's Response
6 or more transfer events in one calendar quarter	Nationwide will mail a letter to the contract owner notifying them that: (1)they have been identified as engaging in harmful trading practices; and (2)if their transfer events exceed 11 in 2 consecutive calendar quarters or 20 in one calendar year, the contract owner will be limited to submitting transfer requests via U.S. mail.
More than 11 transfer events in 2 consecutive calendar quarters OR More than 20 transfer events in one calendar year	Nationwide will automatically limit the contract owner to submitting transfer requests via U.S. mail.

Each January 1^st, Nationwide will start the monitoring anew, so that each contract starts with 0 transfer events each January 1. See, however, the "Other Restrictions" provision below.

Managers of Multiple Contracts

Some investment advisers/representatives manage the assets of multiple Nationwide contracts pursuant to trading authority granted or conveyed by multiple contract owners. These multi-contract advisers will generally be required by Nationwide to submit all transfer requests via U.S. mail.

Nationwide may, as an administrative practice, implement a "one-day delay" program for these multi-contract advisers, which they can use in addition to or in lieu of submitting transfer requests via U.S. mail. The one-day delay option permits multi-contract advisers to continue to submit transfer requests via the internet or telephone. However, transfer requests submitted by multi-contract advisers via the internet or telephone will not receive the next available accumulation unit value. Rather, they will receive the accumulation unit

value that is calculated on the following business day. Transfer requests submitted under the one-day delay program are irrevocable. Multi-contract advisers will receive advance notice of being subject to the one-day delay program.

Other Restrictions

Nationwide reserves the right to refuse or limit transfer requests, or take any other action it deems necessary, in order to protect contract owners, annuitants, and beneficiaries from the negative investment results that may result from short-term trading or other harmful investment practices employed by some contract owners (or third parties acting on their behalf). In particular, trading strategies designed to avoid or take advantage of Nationwide's monitoring procedures (and other measures aimed at curbing harmful trading practices) that are nevertheless determined by Nationwide to constitute harmful trading practices, may be restricted.

Any restrictions that Nationwide implements will be applied consistently and uniformly.

Underlying Mutual Fund Restrictions and Prohibitions

Pursuant to regulations adopted by the SEC, Nationwide is required to enter into written agreements with the underlying mutual funds which allow the underlying mutual funds to:

(1)	request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any Nationwide contract owner;

(2)	request the amounts and dates of any purchase, redemption, transfer or exchange request (“transaction information”); and

(3)	instruct Nationwide to restrict or prohibit further purchases or exchanges by contract owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide’s policies).

Nationwide is required to provide such transaction information to the underlying mutual funds upon their request. In addition, Nationwide is required to restrict or prohibit further purchases or exchange requests upon instruction from the underlying mutual fund. Nationwide and any affected contract owner may not have advance notice of such instructions from an underlying mutual fund to restrict or prohibit further purchases or exchange requests. If an underlying mutual fund refuses to accept a purchase or exchange request submitted by Nationwide, Nationwide will keep any affected contract owner in their current underlying mutual fund allocation.

Transfers Prior to Annuitization

Transfers from the Fixed Account

A contract owner may request to transfer allocations from the fixed account to the sub-accounts or a Guaranteed Term Option only upon reaching the end of a fixed account interest rate guarantee period. Fixed account transfers must be made within 45 days after the end of the interest rate guarantee period. The fixed account interest rate guarantee period is the period of time that the fixed account interest rate is guaranteed to remain the same.

Normally, Nationwide will permit 100% of the maturing fixed account allocations to be transferred. However, Nationwide may limit the amount that can be transferred from the fixed account. Nationwide will determine the amount that may be transferred and will declare this amount at the end of the fixed account interest rate guarantee period. The maximum transferable amount will never be less than 10% of the fixed account allocation reaching the end of a fixed account interest rate guarantee period.

Contract owners who use Dollar Cost Averaging may transfer from the fixed account under the terms of that program.

Nationwide reserves the right to limit the number of transfers from the fixed account to the Guaranteed Term Options to one per calendar year.

Nationwide is required by state law to reserve the right to postpone the transfer of assets from the fixed account for a period of up to 6 months from the date of the transfer request.

If there is contract value allocated to the fixed account at the time the Capital Preservation Plus Option or the Capital Preservation Plus Lifetime Income Option is elected, the fixed account interest rate guarantee period will end and that contract value may be transferred according to the terms of the option elected.

Transfers from a Guaranteed Term Option

A contract owner may request to transfer allocations from a Guaranteed Term Option to the sub-accounts and/or the fixed account at any time. Transfers from a Guaranteed Term Option prior to maturity are subject to a market value adjustment.

Nationwide reserves the right to limit or refuse transfers to the fixed account and to limit the number of transfers out of the Guaranteed Term Options to one per calendar year.

Nationwide is required by state law to reserve the right to postpone the transfer of assets from the Guaranteed Term Options for a period of up to 6 months from the date of the transfer request.

Transfers from the Sub-Accounts

A contract owner may request to transfer allocations from the sub-accounts to the fixed account or a Guaranteed Term Option at any time, subject to terms and conditions imposed by the contract and the underlying mutual funds.

Nationwide reserves the right to limit or refuse transfers to the fixed account and to limit the number of transfers from the sub-accounts to the Guaranteed Term Options to one per calendar year.

Transfers Among the Sub-Accounts

A contract owner may request to transfer allocations among the sub-accounts at any time, subject to terms and conditions imposed by the contract and the underlying mutual funds.

Transfers After Annuitization

After annuitization, the portion of the contract value allocated to fixed annuity payments and the portion of the contract value allocated to variable annuity payments may not be changed.

After annuitization, transfers among sub-accounts may only be made on the anniversary of the annuitization date. Guaranteed Term Options are not available after annuitization.

Right to Examine and Cancel

If after purchasing your contract you change your mind and decide that you do not want it, you may return it to us within a certain period of time known as a right to cancel period. This is often referred to as a “free look.” Depending on the state in which you purchased your contract, and, in some states, if you purchased the contract as a replacement for a prior contract, the right to cancel period may be ten (10) days, or longer, measured from the time that you received your contract. If you return your contract, during the applicable period, we will refund your current account value plus any tax charge deducted, less any applicable federal and state income tax withholding and depending on your state’s requirements, any applicable insurance charges deducted. The amount returned to you may be higher or lower than the purchase payment(s) applied during the right to cancel period. Where required by law, we will return your purchase payment(s), or the greater of your current account value and the amount of your purchase payment(s) applied during the right to cancel period, less any applicable federal and state income tax withholding.

In some states, we may require that an initial premium designated for a subaccount be allocated to a money market subaccount designated by Nationwide during the free look period. After the free look period, we will convert your contract value (your initial premium and credit plus any earnings less any expenses) into accumulation units of the subaccounts you previously selected. The accumulation units will be allocated based on the accumulation unit value next computed for each subaccount.

Liability of the variable account under this provision is limited to the contract value in each sub-account on the date of revocation. Any additional amounts refunded to the contract owner will be paid by Nationwide.

Surrender (Redemption) Prior to Annuitization

Prior to annuitization and before the annuitant's death, contract owners may generally surrender some or all of their contract value. Surrenders from the contract may be subject to federal income tax and/or a tax penalty. See "Federal Income Taxes" in Appendix C: Contract Types and Tax Information. Surrender requests must be in writing and Nationwide may require additional information. When taking a full surrender, the contract must accompany the written request. Nationwide may require a signature guarantee.

If the 3% Extra Value Option has been elected, and the amount withdrawn is subject to a CDSC, then for the first 7 contract years only, Nationwide will recapture a portion of the amount credited under the Extra Value Option. No recapture will take place after the 7^th contract year.

Nationwide will pay any amounts surrendered from the sub-accounts within 7 days. However, Nationwide may suspend or postpone payment when it is unable to price a purchase payment or transfer (see “Pricing”).

Nationwide is required by state law to reserve the right to postpone payment of assets in the fixed account and Guaranteed Term Options for a period of up to 6 months from the date of the surrender request.

Partial Surrenders (Partial Redemptions)

If a contract owner requests a partial surrender, Nationwide will surrender accumulation units from the sub-accounts and an amount from the fixed account and the Guaranteed Term Options. The amount withdrawn from each investment option will be in proportion to the value in each option at the time of the surrender request.

Partial surrenders are subject to the CDSC provisions of the contract. If a CDSC is assessed, the contract owner may elect to have the CDSC deducted from either:

(a)	the amount requested; or

(b)	the contract value remaining after the contract owner has received the amount requested.

If the contract owner does not make a specific election, any applicable CDSC will be deducted from the amount requested by the contract owner.

The CDSC deducted is a percentage of the amount requested by the contract owner. Amounts deducted for CDSC are not subject to subsequent CDSC.

Partial Surrenders to Pay Investment Advisory Fees

Some contract owners utilize an investment advisor(s) to manage their assets, for which the investment advisor assesses a fee. Investment advisors are not endorsed or affiliated with Nationwide and Nationwide makes no representation as to their qualifications. The fees for these investment advisory services are specified in the respective account agreements and are separate from and in addition to the contract fees and expenses described in this prospectus. Some contract owners authorize their investment advisor to take a partial surrender(s) from the contract in order to collect investment advisory fees. Surrenders taken from this contract to pay advisory or investment management fees are subject to the CDSC provisions of the contract and may be subject to income tax and/or tax penalties.

Full Surrenders (Full Redemptions)

Upon full surrender, the contract value may be more or less than the total of all purchase payments made to the contract. The contract value will reflect:

·	variable account charges;

·	underlying mutual fund charges;

·	a $30 Contract Maintenance Charge (this charge will be waived upon full surrender if the contract value is equal to or greater than $50,000 at the time of the full surrender or on any contract anniversary prior to the full surrender);

·	the investment performance of the underlying mutual funds;

·	any recapture of extra value credit;

·	amounts allocated to the fixed account and any interest credited; and

·	amounts allocated to the Guaranteed Term Options, plus or minus any market value adjustment.

Full surrenders are subject to the CDSC provisions of the contract, where permitted by state law. The CDSC-free withdrawal privilege does not apply to full surrenders of the contract. For purposes of the CDSC free withdrawal privilege, a full surrender is:

·	multiple surrenders taken within a contract year that deplete the entire contract value; or

·	any single net surrender of 90% or more of the contract value.

Surrender (Redemption) After Annuitization

After the annuitization date, surrenders other than regularly scheduled annuity payments are not permitted.

Surrenders Under Certain Plan Types

Surrenders Under a Tax Sheltered Annuity

Contract owners of a Tax Sheltered Annuity may surrender part or all of their contract value before annuitant's death, except as provided below:

(A)

Contract value attributable to contributions made under a qualified cash or deferred arrangement (within the meaning of Internal Revenue Code Section 402(g)(3)(A)), a salary reduction agreement (within the meaning of Internal Revenue Code Section 402(g)(3)(C)), or transfers from a Custodial Account (described in Section 403(b)(7) of the Internal Revenue Code), may be surrendered only:

(1)	when the contract owner reaches age 59½, separates from service, dies, or becomes disabled (within the meaning of Internal Revenue Code Section 72(m)(7)); or

(2)	in the case of hardship (as defined for purposes of Internal Revenue Code Section 401(k)), provided that any such hardship surrender may not include any income earned on salary reduction contributions.

(B)	The surrender limitations described in Section A also apply to:

(1)	salary reduction contributions to Tax Sheltered Annuities made for plan years beginning after December 31, 1988;

(2)	earnings credited to such contracts after the last plan year beginning before January 1, 1989, on amounts attributable to salary reduction contributions; and

(3)	all amounts transferred from 403(b)(7) Custodial Accounts (except that earnings and employer contributions as of December 31, 1988 in such Custodial Accounts may be withdrawn in the case of hardship).

(C)	Any distribution other than the above, including a ten day free-look cancellation of the contract (when available) may result in taxes, penalties, and/or retroactive disqualification of a Tax Sheltered Annuity.

In order to prevent disqualification of a Tax Sheltered Annuity after a ten day free-look cancellation, Nationwide will transfer the proceeds to another Tax Sheltered Annuity upon proper direction by the contract owner.

These provisions explain Nationwide's understanding of current withdrawal restrictions. These restrictions may change.

Distributions pursuant to Qualified Domestic Relations Orders will not violate the restrictions stated above.

Surrenders Under a Texas Optional Retirement Program or a Louisiana Optional Retirement Plan

Redemption restrictions apply to contracts issued under the Texas Optional Retirement Program or the Louisiana Optional Retirement Plan.

The Texas Attorney General has ruled that participants in contracts issued under the Texas Optional Retirement Program may only take withdrawals if:

·	the participant dies;

·	the participant retires;

·	the participant terminates employment due to total disability; or

·	the participant that works in a Texas public institution of higher education terminates employment.

A participant under a contract issued under the Louisiana Optional Retirement Plan may only take distributions from the contract upon retirement or termination of employment. All retirement benefits under this type of plan must be paid as lifetime income; lump sum cash payments are not permitted, except for death benefits.

Due to the restrictions described above, a participant under either of these plans will not be able to withdraw cash values from the contract unless one of the applicable conditions is met. However, contract value may be transferred to other carriers, subject to any sales charges.

Nationwide issues this contract to participants in the Texas Optional Retirement Program in reliance upon and in compliance with Rule 6c-7 of the Investment Company Act of 1940. Nationwide issues this contract to participants in the Louisiana Optional Retirement Plan in reliance upon and in compliance with an exemptive order that Nationwide received from the SEC on August 22, 1990.

Loan Privilege

The loan privilege is only available to contract owners of Tax Sheltered Annuities. Contract owners of Tax Sheltered Annuities may take loans from the contract value beginning 30 days after the contract is issued up to the annuitization date. Loans are subject to the terms of the contract, the plan, and the Internal Revenue Code. Nationwide may modify the terms of a loan to comply with changes in applicable law.

Minimum and Maximum Loan Amounts

Contract owners may borrow a minimum of $1,000, unless Nationwide is required by law to allow a lesser minimum amount. Each loan must individually satisfy the contract minimum amount.

Nationwide will calculate the maximum non-taxable loan amount based on information provided by the participant or the employer. Loans may be taxable if a participant has additional loans from other plans.

The total of all outstanding loans must not exceed the following limits:

Contract Values	Maximum Outstanding Loan Balance Allowed
Up to $20,000	up to 80% of contract value (not more than $10,000)
$20,000 and over	up to 50% of contract value (not more than $50,000*)

*The $50,000 limit will be reduced by the highest outstanding balance owed during the previous 12 months.

For salary reduction Tax Sheltered Annuities, loans may be secured only by the contract value.

Maximum Loan Processing Fee

Nationwide may charge a loan processing fee at the time each new loan is processed. The loan processing fee, if assessed, will not exceed $25 per loan processed. This fee compensates Nationwide for expenses related to administering and processing loans. Loans are not available in all states. In addition, some states may not allow Nationwide to assess a loan processing fee.

The fee is taken from the sub-accounts, fixed account, and Guaranteed Term Options in proportion to the contract value at the time the loan is processed.

How Loan Requests are Processed

All loans are made from the collateral fixed account. Nationwide transfers accumulation units in proportion to the assets in each sub-account to the collateral fixed account until the requested amount is reached.

If there are not enough accumulation units available in the contract to reach the requested loan amount, Nationwide next transfers contract value from the fixed account. Contract value transferred from the fixed account to meet the requested loan amount is not subject to the fixed account transfer limitations otherwise applicable under the contract.

Any remaining required collateral will be transferred from the Guaranteed Term Options. Transfers from the Guaranteed Term Options may be subject to a market value adjustment.

No CDSC will be deducted on transfers related to loan processing.

Loan Interest

The outstanding loan balance in the collateral fixed account is credited with interest until the loan is repaid in full. The credited interest rate will be 2.25% less than the loan interest rate fixed by Nationwide. The credited interest rate is guaranteed never to fall below the minimum interest rate required by applicable state law.

Specific loan terms are disclosed at the time of loan application or issuance.

Loan Repayment

Loans must be repaid in five years. However, if the loan is used to purchase the contract owner's principal residence, the contract owner has 15 years to repay the loan.

Contract owners must identify loan repayments as loan repayments or they will be treated as purchase payments and will not reduce the outstanding loan. Loan repayments must be substantially level and made at least quarterly.

Loan repayments will consist of principal and interest in amounts set forth in the loan agreement. Repayments are allocated to the sub-accounts in accordance with the contract, unless Nationwide and the contract owner have agreed to amend the contract at a later date on a case by case basis.

Loan repayments to the Guaranteed Term Options must be at least $1,000. If the proportional share of the repayment to the Guaranteed Term Options is less than $1,000, that portion of the repayment will be allocated to the money market sub-account unless the contract owner directs otherwise and will be subject to any variable account charges applicable under the contract.

Distributions and Annuity Payments

Distributions made from the contract while a loan is outstanding will be reduced by the amount of the outstanding loan plus accrued interest if:

·	the contract owner takes a full surrender of the contract;

·	the contract owner/annuitant dies;

·	the contract owner who is not the annuitant dies prior to annuitization; or

·	the contract owner annuitizes the contract.

Transferring the Contract

Nationwide reserves the right to restrict any transfer of the contract while the loan is outstanding.

Grace Period and Loan Default

If a loan payment is not made when due, interest will continue to accrue. A grace period may be available (please refer to the terms of the loan agreement). If a loan payment is not made by the end of the applicable grace period, the entire loan will be treated as a deemed distribution and will be taxable to the borrower. This deemed distribution may also be subject to an early withdrawal tax penalty by the Internal Revenue Service.

After default, interest will continue to accrue on the loan. Defaulted amounts, plus interest, are deducted from the contract value when the participant is eligible for a distribution of at least that amount. Additional loans are not available while a previous loan is in default.

Assignment

Contract rights are personal to the contract owner and may not be assigned without Nationwide's written consent. Nationwide reserves the right to refuse to recognize assignments that alter the nature of the risks that Nationwide assumed when it originally issued the contract.

A Non-Qualified Contract owner may assign some or all rights under the contract. An assignment must occur before annuitization while the annuitant is alive. Once proper notice of assignment is recorded by Nationwide's home office, the assignment will become effective.

Investment-Only Contracts, IRAs, Roth IRAs, SEP IRAs, Simple IRAs, and Tax Sheltered Annuities may not be assigned, pledged or otherwise transferred except where allowed by law.

Nationwide is not responsible for the validity or tax consequences of any assignment. Nationwide is not liable for any payment or settlement made before the assignment is recorded. Assignments will not be recorded until Nationwide receives sufficient direction from the contract owner and the assignee regarding the proper allocation of contract rights.

Amounts pledged or assigned will be treated as distributions and will be included in gross income to the extent that the cash value exceeds the investment in the contract for the taxable year in which it was pledged or assigned. Amounts assigned may be subject to a tax penalty equal to 10% of the amount included in gross income.

Assignment of the entire contract value may cause the portion of the contract value exceeding the total investment in the contract and previously taxed amounts to be included in gross income for federal income tax purposes each year that the assignment is in effect.

Contract Owner Services

Asset Rebalancing

Asset Rebalancing is the automatic reallocation of contract values to the sub-accounts on a predetermined percentage basis. Asset Rebalancing is not available for assets held in the fixed account or the Guaranteed Term Options. Requests for Asset Rebalancing must be on a Nationwide form. Once Asset Rebalancing is elected, it will only be terminated upon specific instruction from the contract owner; manual transfers will not automatically terminate the program.

Asset Rebalancing occurs every three months or on another frequency if permitted by Nationwide. If the last day of the three-month period falls on a Saturday, Sunday, recognized holiday, or any other day when the New York Stock Exchange is closed, Asset Rebalancing will occur on the next business day. Each Asset Rebalancing reallocation is considered a transfer event.

Asset Rebalancing may be subject to employer limitations or restrictions for contracts issued to a Tax Sheltered Annuity plan. Contract owners should consult a financial adviser to discuss the use of Asset Rebalancing.

Nationwide reserves the right to stop establishing new Asset Rebalancing programs.

Dollar Cost Averaging

Dollar Cost Averaging is a long-term transfer program that allows you to make regular, level investments over time. It involves the automatic transfer of a specified amount from the fixed account and/or certain sub-accounts into other sub-accounts. Nationwide does not guarantee that this program will result in profit or protect contract owners from loss.

Contract owners direct Nationwide to automatically transfer specified amounts from the fixed account and the Federated Insurance Series – Federated Quality Bond Fund II: Service Shares, Fidelity Variable Insurance Products Fund – VIP Investment Grade Bond Portfolio: Service Class 2, NVIT – Nationwide NVIT Government Bond Fund: Class I, NVIT – Nationwide NVIT Investor Destinations Conservative Fund: Class II, GVIT – Nationwide NVIT Money Market Fund: Class I, and Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class to any other underlying mutual fund(s). Dollar Cost Averaging transfers may not be directed to the fixed account or the Guaranteed Term Options.

Transfers occur monthly or on another frequency if permitted by Nationwide. Dollar Cost Averaging transfers are not considered transfer events. Nationwide will process transfers until either the value in the originating investment option is exhausted, or the contract owner instructs Nationwide in writing to stop the transfers.

Transfers from the fixed account must be equal to or less than 1/30^th of the fixed account value at the time the program is requested. Contract owners that wish to utilize Dollar Cost Averaging from the fixed account should first inquire whether any Enhanced Fixed Account Dollar Cost Averaging programs are available.

Nationwide reserves the right to stop establishing new Dollar Cost Averaging programs.

Nationwide is required by state law to reserve the right to postpone transfer of assets from the fixed account for a period of up to 6 months from the date of the transfer request.

Enhanced Fixed Account Dollar Cost Averaging

Nationwide may, periodically, offer Enhanced Fixed Account Dollar Cost Averaging programs. Only new purchase payments to the contract are eligible for Enhanced Fixed Account Dollar Cost Averaging.

Enhanced Fixed Account Dollar Cost Averaging involves the automatic transfer of a specific amount from the enhanced fixed account into other sub-accounts. Enhanced Fixed Account Dollar Cost Averaging transfers may not be directed to the fixed account or the Guaranteed Term Options. Amounts allocated to the enhanced fixed account earn a higher rate of interest than assets allocated in the standard fixed account. Each enhanced interest rate is guaranteed for as long as the corresponding program is in effect.

Transfers occur monthly or on another frequency if permitted by Nationwide. Enhanced Fixed Account Dollar Cost Averaging transfers are not considered transfer events.

Nationwide will process transfers until either amounts allocated to the enhanced fixed account are exhausted or the contract owner instructs Nationwide in writing to stop the transfers. For Enhanced Fixed Account Dollar Cost Averaging, when a contract owner instructs Nationwide to stop the transfers, Nationwide will automatically transfer any amount remaining in the enhanced fixed account to the money market sub-account.

Nationwide reserves the right to stop establishing new Enhanced Fixed Account Dollar Cost Averaging programs.

Nationwide is required by state law to reserve the right to postpone transfer of assets from the fixed account, including an enhanced fixed account, for a period of up to 6 months from the date of the transfer request.

Fixed Account Interest Out Dollar Cost Averaging

Nationwide may, periodically, offer Fixed Account Interest Out Dollar Cost Averaging programs. Fixed Account Interest Out Dollar Cost Averaging involves the automatic transfer of the interest earned on fixed account allocations into any other sub-accounts. Fixed Account Interest Out Dollar Cost Averaging transfers may not be directed to the fixed account or the Guaranteed Term Options.

Transfers occur monthly or on another frequency if permitted by Nationwide. Fixed Account Interest Out Dollar Cost Averaging transfers are not considered transfer events. Nationwide will continue to process transfers until the contract owner instructs Nationwide in writing to stop the transfers.

Nationwide reserves the right to stop establishing new Fixed Account Interest Out Dollar Cost Averaging programs.

Nationwide is required by state law to reserve the right to postpone transfer of assets from the fixed account for a period of up to 6 months from the date of the transfer request.

Systematic Withdrawals

Systematic Withdrawals allow contract owners to receive a specified amount (of at least $100) on a monthly, quarterly, semi-annual, or annual basis. Requests for Systematic Withdrawals and requests to discontinue Systematic Withdrawals must be in writing.

The withdrawals will be taken from the sub-accounts and the fixed account proportionately unless Nationwide is instructed otherwise. Systematic Withdrawals are not available from the Guaranteed Term Options.

Nationwide will withhold federal income taxes from Systematic Withdrawals unless otherwise instructed by the contract owner. The Internal Revenue Service may impose a 10% penalty tax if the contract owner is under age 59½ unless the contract owner has made an irrevocable election of distributions of substantially equal payments.

A CDSC may apply to amounts taken through systematic withdrawals. If the contract owner takes Systematic Withdrawals, the maximum amount that can be withdrawn annually without a CDSC is the greatest of:

(1)	10% of the net difference of purchase payments that are subject to CDSC minus purchase payments surrendered that were subject to CDSC;

(2)	an amount withdrawn to meet minimum distribution requirements under the Internal Revenue Code; or

(3)	a percentage of the contract value based on the contract owner's age, as shown in the table below:

Contract Owner's Age	Percentage of Contract Value
Under age 59½	5%
Age 59½ through age 61	7%
Age 62 through age 64	8%
Age 65 through age 74	10%
Age 75 and over	13%

The contract owner's age is determined as of the date the request for Systematic Withdrawals is recorded by Nationwide's home office. For joint owners, the older joint owner's age will be used.

If total amounts withdrawn in any contract year exceed the CDSC-free amount described above, those amounts will only be eligible for the CDSC-free withdrawal privilege described in the CDSC provision. The total amount of CDSC for that contract year will be determined in accordance with that provision.

For example, assume a scenario whereby the purchase payment equals 100,000 and the initial free withdrawal (“w/d”) equals 10,000

Withdrawal in year 1 15,000

Less free withdrawal 10,000

Premium w/d subject to CDSC 5,000

Withdrawal in year 2 15,000

Less free withdrawal

9,500

= 0.10* (100,000 – 5,000)

Premium w/d subject to CDSC 5,500

Since the withdrawal exceeded the free withdrawal amount, the free withdrawal amount available decreases.

The CDSC-free withdrawal privilege for Systematic Withdrawals is non-cumulative. Free amounts not taken during any contract year cannot be taken as free amounts in a subsequent contract year.

Nationwide reserves the right to stop establishing new Systematic Withdrawal programs. Systematic Withdrawals are not available before the end of the ten-day free-look period.

Nationwide Allocation Architect

Nationwide may make available for use by contract owners the Nationwide Allocation Architect, an asset allocation service that enables contract owners to have their variable account allocations invested according to an investment model. The models diversify among asset classes to achieve specific investment goals and are based on different profiles of an investor's willingness to accept investment risk.

Participants in the program may elect one of these available models:

Conservative

Moderately Conservative

Balanced

Moderate

Capital Appreciation

Moderately Aggressive; and

Aggressive.

Each model is comprised of sub-accounts of underlying funds that are currently available as investment options in this contract. The sub-accounts within each model and their weightings are selected according to each model's risk tolerance and investment goal. More information about the program and the models is available in the brochure for the program.

Nationwide Investment Advisors, LLC as Investment Adviser

For those contracts that elect to use the Nationwide Allocation Architect, Nationwide Investment Advisors, LLC ("NIA") will serve as investment adviser to each participating contract

owner for the sole purposes of developing and maintaining the models. In this capacity, NIA will act as a fiduciary. Contract owners will receive a copy of NIA's Form ADV at the time of application, which contains more information about NIA's role as investment adviser.

Evaluating and Updating the Models

At least twice each calendar year, NIA will evaluate the models to assess whether the combination and allocation percentages of the sub-accounts within each model optimizes the return potential for that model. If deemed necessary by NIA, NIA will update the models, with such updates taking effect on or about January 1 and July 1 of each year. NIA may evaluate and update the models more frequently at its sole discretion.

Updating the models could entail adding or removing one or more sub-accounts from a model, or changing the allocation percentages among existing sub-accounts. Currently, NIA updates the models based on information received from an independent third-party firm. NIA reserves the right to change the third-party firm (where permitted by law) upon 30 days' written notice to contract owners. NIA takes sole responsibility for monitoring and updating the models.

Nationwide will send contract owners written notice of model updates approximately 30 days before the model changes are to be implemented. Contract owners should review these notices carefully. If the contract owner is comfortable with the model changes, the contract owner need not take any action. If the contract owner is not comfortable with the model changes, the contract owner may switch to a different model or terminate their participation in the service.

On or about each January 1 and July 1 (or any other day that NIA updates the models), Nationwide will reallocate the variable account contract value of contracts participating in the service pursuant to the discretionary authority granted to Nationwide as a requirement to participate in the service. The reallocation will rebalance the variable account contract allocations to the updated model allocations. If the scheduled date for the reallocation is a Saturday, Sunday, recognized holiday, or any other day that the New York Stock Exchange is closed, the reallocation will occur on the next business day. Each reallocation is considered a transfer event. However, the automatic reallocation transfers within the Nationwide Allocation Architect are not subject to Short-Term Trading Fees.

Quarterly Rebalancing

In addition to reallocating the variable account contract value when the models change, Nationwide will also reallocate the variable account contract value at the end of each calendar quarter, referred to as quarterly rebalancing. If the end of a calendar quarter is a Saturday, Sunday, recognized holiday, or any other day that the New York Stock Exchange is closed, the quarterly rebalancing will occur on the next business day. Each quarterly rebalancing is considered a transfer event. However, quarterly rebalancing transfers within the Nationwide Allocation Architect are not subject to Short-Term Trading Fees.

Election of the Nationwide Allocation Architect

There is no additional charge for participating in the Nationwide Allocation Architect. If the service is available, a contract owner may elect to begin participating at any time by communicating the election to Nationwide in writing to Nationwide's service center. Once the election is received and processed, Nationwide will allocate the entire contract value that is allocated to the variable account in accordance with the elected model. Allocations to the fixed account or the GTO will remain so invested. Only one model may be elected at any given time.

While the Nationwide Allocation Architect is in effect, the contract owner will not be permitted to transfer contract value among the sub-accounts or out of the sub-accounts (to the fixed account or a GTO) without first terminating their participation in the service. Contract owners may transfer maturing fixed account contract value into the variable account (and thus, the elected model) only at the end of the guarantee term. Any subsequent payments submitted that are to be allocated to the sub-accounts will also be allocated according to the currently elected model. Any surrenders taken from the contract while the Nationwide Allocation Architect is in effect will be taken proportionally from all investments in the contract. Any charges assessed to the contract will be taken proportionally from all investments in the contract. A contract owner participating in the Nationwide Allocation Architect may not participate in Asset Rebalancing or Dollar Cost Averaging.

When electing a model, please consult a qualified financial adviser to determine the most appropriate model based on the contract owner's particular financial needs, time horizon, and willingness to accept investment risk. The investment adviser may use tools to make this determination that are either independently acquired or provided by Nationwide. However, Nationwide bears no responsibility for the investment decision.

Changing Models

Contract owners participating in the Nationwide Allocation Architect may elect to change models at any time. An election to change models must be communicated to Nationwide in writing or over the telephone to Nationwide's service center. An election to change models will be immediate and will not be subject to Short-Term Trading Fees.

Nationwide reserves the right to limit the number of times a contract owner can change models each year.

Terminating Participation in the Nationwide Allocation Architect

Once participation in the service has begun, it may only be terminated upon the specific written request of the contract owner. Once a contract owner's participation in the service is terminated, the contract value will remain invested as it was on the last day of participation in the program unless and until Nationwide is instructed otherwise. Additionally, please be aware that the terms of the "Transfer Restrictions" provision apply.

Nationwide reserves the right to terminate the availability of this service at any time.

Risks Associated with the Nationwide Allocation Architect

The models are designed to optimize returns based on different risk tolerances. However, neither Nationwide nor NIA guarantees that participation in the Nationwide Allocation Architect will result in a profit or protect against a loss.

NIA may be subject to competing interests that may affect its decisions as to the sub-accounts offered in the models. Specifically, some of the sub-accounts correspond to underlying mutual funds owned by a NIA affiliate, some underlying mutual funds may pay more revenue to NISC (NIA's affiliate) than others, and some underlying mutual funds may pay more revenue to Nationwide (NIA's parent company) than others. However, NIA believes that its fiduciary responsibilities to the contract owners that elect a model outweigh any conflict that may exist relating to the underlying mutual funds, enabling it to make substantially unbiased choices as to the sub-accounts within the models.

Custom Portfolio Asset Rebalancing Service

Nationwide may make the Custom Portfolio Asset Rebalancing Service available for use by contract owners who have elected the CPP Lifetime Income Option or the Lifetime Income Option. This service is an asset rebalancing program with pre-selected asset categories determined by a independent third party from which you can choose underlying funds.

Election of the Custom Portfolio Asset Rebalancing Program

There is no additional charge for participation in the Custom Portfolio Asset Rebalancing Service. You may elect this program by submitting the Nationwide Custom Portfolio Asset Rebalancing Program administrative form to the Nationwide home office. You cannot participate in Asset Rebalancing or Dollar Cost Averaging while enrolled in the Custom Portfolio Asset Rebalancing Service.

You should consult a qualified financial adviser to help you determine your allocation based on your financial needs, time horizon, and willingness to accept investment risk.

Prior to enrollment in the Custom Portfolio Asset Rebalancing Service, a complete list of the program rules will be given to you.

Changing Asset Categories

You may elect to change asset categories at any time. An election to change asset categories must be communicated to Nationwide in writing to the Nationwide home office by way of a Custom Portfolio Asset Rebalancing Service administrative form. Changes made in accordance with an election to change asset categories will be immediate, will be subject to Short-Term Trading Fees and will count as a “transfer event” as specified under the Transfer Restrictions section.

Nationwide reserves the right to limit the number of times you can change asset categories each year.

Quarterly Rebalancing

At the end of each quarter we will reallocate the variable account contract value according to your current Custom Portfolio allocation. If the end of a calendar quarter is a Saturday, Sunday, recognized holiday, or any other day that the New York Stock Exchange is closed, the quarterly rebalancing will occur on the next business day. Each quarterly rebalancing is considered a transfer event. However, quarterly rebalancing transfers within your Custom Portfolio is not subject to Short-Term Trading Fees.

Terminating Participation in the Nationwide Custom Portfolio

Participation in the Custom Portfolio service may be terminated upon your written request. You must reallocate your contract value to the investment options available under the CPP Lifetime Income Option or to the Lifetime Income Option.

Nationwide reserves the right to terminate or modify the Custom Portfolio Asset Rebalancing Service at any time.

Death Benefits

Death of Contract Owner

If a contract owner (including a joint owner) who is not the annuitant dies before the annuitization date, no death benefit is payable and the surviving joint owner becomes the contract owner.

If no joint owner is named, the contingent owner becomes the contract owner.

If no contingent owner is named, the beneficiary becomes the contract owner.

If no beneficiary survives the contract owner, the last surviving contract owner's estate becomes the contract owner.

Distributions will be made pursuant to the "Required Distributions for Non-Qualified Contracts" in Appendix C: Contract Types and Tax Information.

Death of Annuitant

If the annuitant who is not a contract owner dies before the annuitization date, the contingent annuitant becomes the annuitant and no death benefit is payable. If no contingent annuitant is named, a death benefit is payable to the beneficiary. Multiple beneficiaries will share the death benefit equally unless otherwise specified.

If no beneficiaries survive the annuitant, the contingent beneficiary receives the death benefit. Multiple contingent beneficiaries will share the death benefit equally unless otherwise specified.

If no beneficiaries or contingent beneficiaries survive the annuitant, the contract owner or the last surviving contract owner’s estate will receive the death benefit.

If the contract owner is a Charitable Remainder Trust and the annuitant dies before the annuitization date, the death benefit will accrue to the Charitable Remainder Trust. Any designation in conflict with the Charitable Remainder Trust's right to the death benefit will be void.

If the annuitant dies after the annuitization date, any benefit that may be payable will be paid according to the selected annuity payment option.

Death of Contract Owner/Annuitant

If a contract owner (including a joint owner) who is also the annuitant dies before the annuitization date, a death benefit is payable to the surviving joint owner.

If there is no surviving joint owner, the death benefit is payable to the beneficiary. Multiple beneficiaries will share the death benefit equally unless otherwise specified.

If no beneficiaries survive the contract owner/annuitant, the contingent beneficiary receives the death benefit. Multiple contingent beneficiaries will share the death benefit equally unless otherwise specified.

If no contingent beneficiaries survive the contract owner/annuitant, the last surviving contract owner's estate will receive the death benefit.

If the contract owner/annuitant dies after the annuitization date, any benefit that may be payable will be paid according to the selected annuity payment option.

Death Benefit Payment

The recipient of the death benefit may elect to receive the death benefit:

(1)	in a lump sum;

(2)	as an annuity (please see the “Annuity Payment Options” section for additional information); or

(3)	in any other manner permitted by law and approved by Nationwide.

Nationwide will pay (or will begin to pay) the death benefit upon receiving proof of death and the instructions as to the payment of the death benefit. If the recipient of the death benefit does not elect the form in which to receive the death benefit payment, Nationwide will pay the death benefit in a lump sum. Contract value will continue to be allocated according to the most recent allocation instructions until the death benefit is paid.

If the contract has multiple beneficiaries entitled to receive a portion of the death benefit, the contract value will continue to be allocated according to the most recent allocation instructions until the first beneficiary is paid. After the first beneficiary is paid, remaining contract value will be allocated to the available money market sub-account until instructions are received from the remaining beneficiary(ies).

Death Benefit Calculations

An applicant may elect either the standard death benefit or an available death benefit option under the contract for an additional charge. If no election is made at the time of application, the death benefit will be the standard death benefit.

The value of each component of the applicable death benefit calculation will be determined as of the date of the annuitant's death, except for the contract value component, which will be determined as of the date described in the applicable death benefit calculation.

Standard Death Benefit

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is less than or equal to $3,000,000, the standard death benefit will be the greatest of:

(1)

(a)

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any 5 year contract anniversary before the annuitant's 86^th birthday, less an adjustment for amounts surrendered, plus purchase payments received after that 5 year contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the death benefit will be the greater of (1) or (2) above.

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is greater than $3,000,000, the standard death benefit will be determined using the following formula:

(A x F) + B(1 - F), where

A = the greatest of:

(1)

(a)

(b)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any 5 year contract anniversary before the annuitant's 86^th birthday, less an adjustment for amounts surrendered, plus purchase payments received after that 5 year contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the calculation for A above will be the greater of (1) or (2) above.

B = (1)

(2)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit; and

F = the ratio of $3,000,000 to the total of all purchase payments made to the contract.

The practical effect of this formula is that the beneficiary recovers a lesser percentage of purchase payments in excess of $3,000,000 than for purchase payments up to $3,000,000. In no event will the beneficiary receive less than the contract value.

One-Year Enhanced Death Benefit II Option

For an additional charge at an annualized rate of 0.15% of the daily net assets of the variable account, an applicant can elect the One-Year Enhanced Death Benefit II Option at the time of application. This One-Year Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) for contracts with annuitants age 80 or younger at the time of application.

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is less than or equal to $3,000,000, the death benefit will be the greatest of:

(1)

(a)

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any contract anniversary prior to the annuitant's 86^th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the death benefit will be the greater of (1) or (2) above.

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is greater than $3,000,000, the death benefit will be determined using the following formula:

(A x F) + B(1 - F), where

A = the greatest of:

(1)

(a)

(b)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any contract anniversary prior to the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the calculation for A above will be the greater of (1) or (2) above.

B = (1)

if the contract was issued prior to February 1, 2005: the greater of the contract value as of the

date that Nationwide receives all the information necessary to pay the death benefit or the contract value as of the date of the annuitant's death;

(2)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit; and

F = the ratio of $3,000,000 to the total of all purchase payments made to the contract.

One-Year Enhanced Death Benefit Option

For an additional charge at an annualized rate of 0.10% of the daily net assets of the variable account, an applicant can elect the One-Year Enhanced Death Benefit Option at the time of application. The One-Year Enhanced Death Benefit Option is only available until state approval is received for the One-Year Enhanced Death Benefit II Option. This option is the same as the One-Year Enhanced Death Benefit II Option except that this option has a lower price and there is no restriction as to the annuitant's age.

One-Month Enhanced Death Benefit II Option

For an additional charge at an annualized rate of 0.35% of the daily net assets of the variable account, an applicant can elect the One-Month Enhanced Death Benefit II Option at the time of application. The One-Month Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) for contracts with annuitants age 80 or younger at the time of application.

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is less than or equal to $3,000,000, the death benefit will be the greatest of:

(1)

(a)

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any monthly contract anniversary prior to the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that monthly contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the death benefit will be the greater of (1) or (2) above.

(A x F) + B(1 - F), where

A = the greatest of:

(1)

(a)

(b)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered; or

(3)	the highest contract value on any monthly contract anniversary prior to the annuitant's 86^th birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that monthly contract anniversary.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the calculation for A above will be the greater of (1) or (2) above.

B = (1)

(2)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit; and

F = the ratio of $3,000,000 to the total of all purchase payments made to the contract.

The practical effect of this formula is that the beneficiary recovers a lesser percentage of purchase payments in excess of $3,000,000 than for purchase payments up to $3,000,000. In

no event will the beneficiary receive less than the contract value.

One-Month Enhanced Death Benefit Option

For an additional charge at an annualized rate of 0.30% of the daily net assets of the variable account, an applicant can elect the One-Month Enhanced Death Benefit Option at the time of application. The One-Month Enhanced Death Benefit Option is only available until state approval is received for the One-Month Enhanced Death Benefit II Option. This option is the same as the One-Month Enhanced Death Benefit II Option except that this option has a lower price, there is no restriction as to the annuitant's age, and for item (3) above, Nationwide considers the highest value on any monthly contract anniversary prior to the annuitant's 86^th birthday (subject to the same adjustments).

Combination Enhanced Death Benefit II Option

For an additional charge at an annualized rate of 0.45% of the daily net assets of the variable account, an applicant can elect the Combination Enhanced Death Benefit II Option at the time of application. The Combination Enhanced Death Benefit II Option is only available beginning September 1, 2004 (or a later date if state law requires) for contracts with annuitants age 75 or younger at the time of application.

If the annuitant dies prior to the annuitization date and the total of all purchase payments made to the contract is less than or equal to $3,000,000, the death benefit will be the greatest of:

(1)

(a)

(b)	if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments , less an adjustment for amounts surrendered;

(3)	the highest contract value on any contract anniversary before the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary; or

(4)	the 5% interest anniversary value.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the death benefit will be the greater of (1) or (2) above.

The 5% interest anniversary value is equal to purchase payments, accumulated at 5% annual compound interest until the last contract anniversary prior to the annuitant's 81^st birthday, proportionately adjusted for amounts surrendered. The adjustment for amounts surrendered will reduce the accumulated value as of the most recent contract anniversary prior to each partial surrender in the same proportion that the contract value was reduced on the date of the partial surrender. Such total accumulated amount, after the surrender adjustment, shall not exceed 200% of purchase payments adjusted for amounts surrendered.

If, after the first contract anniversary, the fixed account allocation becomes greater than 30% of the contract value due to the application of additional purchase payments, additional surrenders, or transfers among investment options, then for purposes of calculating the 5% interest anniversary value, 0% will accrue for that year. The 30% threshold will come into effect only as a result of an action or actions by the contract owner (e.g., additional purchase payment, surrender or transfers). If the 30% threshold is reached because of a combination of market performance and contract owner actions, and would not have been reached but for the market performance, interest will continue to accrue at 5%..

(A x F) + B(1 - F), where

A = the greatest of:

(1)

(a)

(b)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit;

(2)	the total of all purchase payments, less an adjustment for amounts surrendered;

(3)	the highest contract value on any contract anniversary before the annuitant's 81^st birthday, less an adjustment for amounts subsequently surrendered, plus purchase payments received after that contract anniversary; or

(4)	the 5% interest anniversary value.

The contract value in items (1) and (3) above may include a market value adjustment for any amounts allocated to a Guaranteed Term Option.

The adjustment for amounts surrendered will reduce items (2) and (3) above in the same proportion that the contract value was reduced on the date(s) of the partial surrender(s).

If Nationwide does not receive all information necessary to pay the death benefit within one year of the annuitant's death, the calculation for A above will be the greater of (1) or (2) above.

B = (1)

(2)

if the contract was issued on or after February 1, 2005: the contract value as of the date that Nationwide receives all the information necessary to pay the death benefit; and

F = the ratio of $3,000,000 to the total of all purchase payments made to the contract.

Combination Enhanced Death Benefit Option

For an additional charge at an annualized rate of 0.40% of the daily net assets of the variable account, an applicant can elect the Combination Enhanced Death Benefit Optionat the time of application. The Combination Enhanced Death Benefit Option is only available until state approval is received for the Combination Enhanced Death Benefit II Option. This option is the same as the Combination Enhanced Death Benefit II Option except that this option has a lower price and the option is available to applicants with annuitants age 80 or younger at the time of application.

Annuity Commencement Date

The annuity commencement date is the date on which annuity payments are scheduled to begin. Generally, the contract owner designates the annuity commencement date at the time of application. If no annuity commencement date is designated at the time of application, Nationwide will establish the annuity commencement date as the date the annuitant reaches age 90 for Non-Qualified Contracts and the date the contract owner reaches age 70 ½ for all other contract types.

The contract owner may change the annuity commencement date before annuitization. This change must be in writing and approved by Nationwide. The annuity commencement date may not be later than the first day of the first calendar month after the annuitant's 90^th birthday unless approved by Nationwide.

Annuitizing the Contract

Annuitization Date

The annuitization date is the date on which annuity payments begin. The annuitization date will be the first day of a calendar month unless otherwise agreed. The annuitization date must be at least 2 years after the contract is issued, but may not be later than either:

·	the age (or date) specified in your contract; or

·	the age (or date) specified by state law, where applicable.

If the contract is issued to fund a Tax Sheltered Annuity, annuitization may occur during the first 2 years subject to Nationwide's approval.

On the annuitization date, the annuitant becomes the contract owner unless the contract owner is a Charitable Remainder Trust.

The Internal Revenue Code may require that distributions be made prior to the annuitization dates specified above see "Required Distributions" in Appendix C: Contract Types and Tax Information.

Annuitization

Annuitization is the period during which annuity payments are received. It is irrevocable once payments have begun. Upon arrival of the annuitization date, the annuitant must choose:

(1)	an annuity payment option; and

(2)	either a fixed payment annuity, variable payment annuity, or an available combination.

Any allocations in the fixed account that are to be annuitized as a variable payment annuity must be moved to the variable account prior to the annuitization date. There are no restrictions on fixed account transfers made in anticipation of annuitization.

Nationwide guarantees that each payment under a fixed payment annuity will be the same throughout annuitization. Under a variable payment annuity, the amount of each payment will vary with the performance of the underlying mutual funds chosen by the contract owner.

Fixed Annuity Payments

Fixed annuity payments provide for level annuity payments. Premium taxes are deducted prior to determining fixed annuity payments. The fixed annuity payments will remain level unless the annuity payment option provides otherwise.

VariableAnnuity Payments

Variable annuity payments will vary depending on the performance of the underlying mutual funds selected.

First Variable Annuity Payment

The following factors determine the amount of the first variable annuity payment:

·	the portion of purchase payments allocated to provide variable annuity payments;

·	the variable account value on the annuitization date;

·	the adjusted age and sex of the annuitant (and joint annuitant, if any) in accordance with the contract;

·	the annuity payment option elected;

·	the frequency of annuity payments;

·	the annuitization date;

·	the assumed investment return (the net investment return required to maintain level variable annuity payments);

·	the deduction of applicable premium taxes; and

·	the date the contract was issued.

Subsequent Variable Annuity Payments

Variable annuity payments after the first will vary with the performance of the underlying mutual funds chosen by the contract owner after the investment performance is adjusted by the assumed investment return factor.

The dollar amount of each subsequent variable annuity payment is determined by taking the portion of the first annuity payment funded by a particular sub-account divided by the annuity unit value for that sub-account as of the annuitization date. This establishes the number of annuity units provided by each sub-account for each variable annuity payment after the first.

The number of annuity units for each sub-account will remain constant, unless the contract owner transfers value from one underlying mutual fund to another. After annuitization, transfers among sub-accounts may only be made on the anniversary of the annuitization date.

The number of annuity units for each sub-account is multiplied by the annuity unit value for that sub-account for the valuation period for which the payment is due. The sum of these results for all the sub-accounts in which the contract owner invests establishes the dollar amount of the variable annuity payment.

Subsequent variable annuity payments may be more or less than the previous variable annuity payment, depending on whether the net investment performance of the elected underlying mutual funds is greater or lesser than the assumed investment return.

Assumed Investment Return

An assumed investment return is the net investment return required to maintain level variable annuity payments. Nationwide uses a 3.5% assumed investment return factor. Therefore, if the net investment performance of each sub-account in which the contract owner invests exactly equals 3.5% for every payment period, then each payment will be the same amount. To the extent that investment performance is not equal to 3.5% for given payment periods, the amount of the payments in those periods will not be the same. Payments will increase from one payment date to the next if the annualized net rate of return is greater than 3.5% during that time. Conversely, payments will decrease from one payment to the next if the annualized net rate of return is less than 3.5% during that time.

Nationwide uses the assumed investment rate of return to determine the amount of the first variable annuity payment.

Value of an Annuity Unit

Annuity unit values for sub-accounts are determined by:

(1)

multiplying the annuity unit value for each sub-account for the immediately preceding valuation period by the net investment factor for the sub-account for the subsequent valuation period (see "Determining the Contract Value – Determining Variable Account Value – Valuing an Accumulation Unit"); and then

(2)	multiplying the result from (1) by a factor to neutralize the assumed investment return factor.

Frequency and Amount of Annuity Payments

Annuity payments are based on the annuity payment option elected.

If the net amount to be annuitized is less than $2,000, Nationwide reserves the right to pay this amount in a lump sum instead of periodic annuity payments.

Nationwide reserves the right to change the frequency of payments if the amount of any payment becomes less than $25. The payment frequency will be changed to an interval that will result in payments of at least $25.

Annuity payments will generally be received within 7 to 10 days after each annuity payment date.

Annuity Payment Options

The annuitant must elect an annuity payment option before the annuitization date. If the annuitant does not elect an annuity payment option, a variable payment for life annuity with a guarantee period of 240 months will be assumed as the automatic form of payment upon annuitization. Once elected or assumed, the annuity payment option may not be changed.

Not all of the annuity payment options may be available in all states. Additionally, the annuity payment options available may be limited based on the annuitant's age (and the joint annuitant's age, if applicable) or requirements under the Internal Revenue Code.

Annuity Payment Options for Contracts with Total Purchase Payments Less Than or Equal to $2,000,000

If, at the annuitization date, the total of all purchase payments made to the contract is less than or equal to $2,000,000, the annuity payment options available are:

·	Single Life;

·	Standard Joint and Survivor; and

·	Single Life with a 10 or 20 Year Term Certain.

Each of the annuity payment options is discussed more thoroughly below.

Single Life

The Single Life annuity payment option provides for annuity payments to be paid during the lifetime of the annuitant.

Payments will cease with the last payment before the annuitant's death. No death benefit will be paid.

No withdrawals other than the scheduled annuity payments are permitted.

Standard Joint and Survivor

The Standard Joint and Survivor annuity payment option provides for annuity payments to continue during the joint lifetimes of the annuitant and joint annuitant. After the death of either the annuitant or joint annuitant, payments will continue for the life of the survivor.

Payments will cease with the last payment due prior to the death of the last survivor of the annuitant and joint annuitant. No death benefit will be paid.

No withdrawals other than the scheduled annuity payments are permitted.

Single Life with a 10 or 20 Year Term Certain

The Single Life with a 10 or 20 Year Term Certain annuity payment option provides that monthly annuity payments will be paid during the annuitant's lifetime or for the term selected, whichever is longer. The term may be either 10 or 20 years.

If the annuitant dies before the end of the 10 or 20 year term, payments will be paid to the beneficiary for the remainder of the term.

No withdrawals other than the scheduled annuity payments are permitted.

Any Other Option

Annuity payment options not set forth in this provision may be available. Any annuity payment option not set forth in this provision must be approved by Nationwide.

Annuity Payment Options for Contracts with Total Purchase Payments Greater Than $2,000,000

If, at the annuitization date, the total of all purchase payments made to the contract is greater than $2,000,000, Nationwide may limit the annuity payment option to the longer of:

(1)	a Fixed Life Annuity with a 20 Year Term Certain; or

(2)	a Fixed Life Annuity with a Term Certain to Age 95.

Additionally, Nationwide will limit the amount that may be annuitized on a single life to $5,000,000. If the total amount to be annuitized is greater than $5,000,000, then, for the purpose of annuitization only, Nationwide will permit additional annuitants to be named.

Statements and Reports

Nationwide will mail contract owners statements and reports. Therefore, contract owners should promptly notify Nationwide of any address change.

These mailings will contain:

·	statements showing the contract's quarterly activity;

confirmation statements showing transactions that affect the contract's value. Confirmation statements will not be sent for recurring transactions (i.e., Dollar Cost Averaging or salary reduction programs). Instead, confirmation of recurring transactions will appear in the contract's quarterly statements; and

·	semi-annual and annual reports of allocated underlying mutual funds.

Contract owners can receive information from Nationwide faster and reduce the amount of mail they receive by signing up for Nationwide’s eDelivery program. Nationwide will notify contract owners by email when important documents (statements, prospectuses and other documents) are ready for a contract owner to view, print, or download from Nationwide’s secure server. To choose this option, go to www.nationwide.com/login.

Contract owners should review statements and confirmations carefully. All errors or corrections must be reported to Nationwide immediately to assure proper crediting to the contract. Unless Nationwide is notified within 30 days of receipt of the statement, Nationwide will assume statements and confirmation statements are correct.

IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS

When multiple copies of the same disclosure document(s), such as prospectuses, supplements, proxy statements and semi-annual and annual reports are required to be mailed to multiple contract owners in the same household, Nationwide will mail only one copy of each document, unless notified otherwise by the contract owner(s). Household delivery will continue for the life of the contracts. Please call 1-866-223-0303 to resume regular delivery. Please allow 30 days for regular delivery to resume.

Legal Proceedings

Nationwide is a party to litigation and arbitration proceedings in the ordinary course of its business. It is often not possible to determine the ultimate outcome of the pending investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and Nationwide does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. Nationwide does not believe, based on information currently known by management, that the outcomes of such pending investigations and legal proceedings are likely to have a material adverse effect on Nationwide’s consolidated financial position. However, given the large and/or indeterminate amounts sought in certain of these matters and inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could have a material adverse effect on Nationwide’s consolidated financial results in a particular quarterly or annual period.

In recent years, life insurance companies have been named as defendants in lawsuits, including class action lawsuits relating to life insurance and annuity pricing and sales practices. A number of these lawsuits have resulted in substantial jury awards or settlements against life insurers other than Nationwide.

contracts, and have commenced enforcement actions against some mutual fund and life insurance companies on those issues. Nationwide has been contacted by or received subpoenas from the SEC and the New York State Attorney General, who are investigating market timing in certain mutual funds offered in insurance products sponsored by Nationwide. Nationwide has cooperated with these investigations. Information requests from the New York State Attorney General and the SEC with respect to investigations into late trading and market timing were last responded to by Nationwide and its affiliates in December 2003 and June 2005, respectively, and no further information requests have been received with respect to these matters.

In addition, state and federal regulators have commenced investigations or other proceedings relating to compensation and bidding arrangements and possible anti-competitive activities between insurance producers and brokers and issuers of insurance products, and unsuitable sales and replacements by producers on behalf of the issuer. Also under investigation are compensation and revenue sharing arrangements between the issuers of variable insurance contracts and mutual funds or their affiliates, fee arrangements in retirement plans, the use of side agreements and finite reinsurance agreements, funding agreements issued to back MTN programs, recordkeeping and retention compliance by broker/dealers, and supervision of former registered representatives. Related investigations and proceedings may be commenced in the future. Nationwide and/or its affiliates have been contacted by or received subpoenas from state and federal regulatory agencies, state securities law regulators and state attorneys general for information relating to certain of these investigations, including those relating to compensation, revenue sharing and bidding arrangements, anti-competitive activities, unsuitable sales or replacement practices, the use of side agreements and finite reinsurance agreements, and funding agreements backing the Nationwide’s MTN program. Nationwide is cooperating with regulators in connection with these inquiries and will cooperate with Nationwide Mutual Insurance Company (NMIC) in responding to these inquiries to the extent that any inquiries encompass NMIC’s operations.

These proceedings are expected to continue in the future and could result in legal precedents and new industry-wide legislation, rules and regulations that could significantly affect the financial services industry, including life insurance and annuity companies. These proceedings also could affect the outcome of one or more of Nationwide’s litigation matters. There can be no assurance that any such litigation or regulatory actions will not have a material adverse effect on Nationwide in the future.

On July 11, 2007, Nationwide was named in a lawsuit filed in the United States District Court for the Western District of Washington at Tacoma entitled Jerre Daniels-Hall and David Hamblen, Individually and on behalf of All Others Similarly Situated v. National Education Association, NEA Member Benefits Corporation, Nationwide Life Insurance Company, Security Benefit Life Insurance Company, Security Benefit Group, Inc., Security Distributors, Inc., et. al. The plaintiff seeks to represent a class of all current or former National Education Association (NEA) members who participated in the NEA Valuebuilder 403(b) program at any time between January 1, 1991 and the present (and their heirs and/or beneficiaries). The plaintiffs allege that the defendants violated the Employee Retirement Income Security Act of 1974, as amended (ERISA) by failing to prudently and loyally manage plan assets, by failing to provide complete and accurate information, by engaging in prohibited transactions, and by breaching their fiduciary duties when they failed to prevent other fiduciaries from breaching their fiduciary duties. The complaint seeks to have the defendants restore all losses to the plan, restoration of plan assets and profits to participants, disgorgement of endorsement fees, disgorgement of service fee payments, disgorgement of excessive fees charged to plan participants, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys’ fees. Nationwide is currently evaluating this recently filed case but intends to defend this matter vigorously.

On November 15, 2006, Nationwide was named in a lawsuit filed in the United States District Court for the Southern District of Ohio entitled Kevin Beary, Sheriff of Orange County, Florida, In His Official Capacity, Individually and On Behalf of All Others Similarly Situated v. Nationwide Life Insurance Co., Nationwide Retirement Solutions, Inc. and Nationwide Financial Services, Inc. The plaintiff seeks to represent a class of all sponsors of 457(b) deferred compensation plans in the United States that had variable annuity contracts with the defendants at any time during the class period, or in the alternative, all sponsors of 457(b) deferred compensation plans in Florida that had variable annuity contracts with the defendants during the class period. The Class Period is from January 1, 1996 until the Class Notice is provided. The plaintiff alleges that the defendants breached their fiduciary duties by arranging for and retaining service payments from certain mutual funds. The complaint seeks an accounting, a declaratory judgment, a permanent injunction and disgorgement or restitution of the service fee payments allegedly received by the defendants, including interest. On January 25, 2007, Nationwide filed a motion to dismiss. On March 3, 2007, the plaintiffs filed their memorandum in opposition to the motion to dismiss that was filed by NFS, Nationwide and NRS. On March 23, 2007, Nationwide filed its response. Nationwide intends to defend this lawsuit vigorously.

On February 11, 2005, Nationwide was named in a class action lawsuit filed in Common Pleas Court, Franklin County, Ohio entitled Michael Carr v. Nationwide Life Insurance Company. The complaint seeks recovery for breach of contract, fraud by omission, violation of the Ohio Deceptive Trade Practices Act and unjust enrichment. The complaint also seeks unspecified compensatory damages, disgorgement of all amounts in excess of the guaranteed maximum premium and attorneys’ fees. On February 2, 2006, the Court granted the plaintiff’s motion for class certification on the breach of contract and unjust enrichment claims. The Court certified a class consisting of all residents of the United States and the Virgin Islands who, during the Class Period, paid premiums on a modal basis to Nationwide for term life insurance policies issued by Nationwide during the Class Period that provide for guaranteed maximum premiums, excluding certain specified products. Excluded from the class are Nationwide; any parent, subsidiary or affiliate of Nationwide; all employees, officers and directors of Nationwide; and any justice, judge or

magistrate judge of the State of Ohio who may hear the case. The Class Period is from February 10, 1990 through February 2, 2006, the date the class was certified. On January 26, 2007, the plaintiff filed a motion for summary judgment. On April 30, 2007, Nationwide filed a motion for summary judgment. Oral argument on the motion for summary judgment is scheduled for August 31, 2007. Nationwide continues to defend this lawsuit vigorously.

On April 13, 2004, Nationwide was named in a class action lawsuit filed in Circuit Court, Third Judicial Circuit, Madison County, Illinois, entitled Woodbury v. Nationwide Life Insurance Company. Nationwide removed this case to the United States District Court for the Southern District of Illinois on June 1, 2004. On December 27, 2004, the case was transferred to the United States District Court for the District of Maryland and included in the multi-district proceeding entitled In Re Mutual Funds Investment Litigation. In response, on May 13, 2005, the plaintiff filed a First Amended Complaint purporting to represent, with certain exceptions, a class of all persons who held (through their ownership of a Nationwide annuity or insurance product) units of any Nationwide sub-account invested in mutual funds that included foreign securities in their portfolios and that experienced market timing or stale price trading activity. The First Amended Complaint purports to disclaim, with respect to market timing or stale price trading in Nationwide’s annuities sub-accounts, any allegation based on Nationwide’s untrue statement, failure to disclose any material fact, or usage of any manipulative or deceptive device or contrivance in connection with any class member’s purchases or sales of Nationwide annuities or units in annuities sub-accounts. The plaintiff claims, in the alternative, that if Nationwide is found with respect to market timing or stale price trading in its annuities sub-accounts, to have made any untrue statement, to have failed to disclose any material fact or to have used or employed any manipulative or deceptive device or contrivance, then the plaintiff purports to represent a class, with certain exceptions, of all persons who, prior to Nationwide’s untrue statement, omission of material fact, use or employment of any manipulative or deceptive device or contrivance, held (through their ownership of an Nationwide annuity or insurance product) units of any Nationwide sub-account invested in mutual funds that included foreign securities in their portfolios and that experienced market timing activity. The First Amended Complaint alleges common law negligence and seeks to recover damages not to exceed $75,000 per plaintiff or class member, including all compensatory damages and costs. On June 1, 2006, the District Court granted Nationwide’s motion to dismiss the plaintiff’s complaint. The plaintiff appealed the District Court’s decision, and the issues have been fully briefed. Nationwide continues to defend this lawsuit vigorously.

On January 21, 2004, Nationwide was named in a lawsuit filed in the United States District Court for the Northern District of Mississippi entitled United Investors Life Insurance Company v. Nationwide Life Insurance Company and/or Nationwide Life Insurance Company of America and/or Nationwide Life and Annuity Insurance Company and/or Nationwide Life and Annuity Company of America and/or Nationwide Financial Services, Inc. and/or Nationwide Financial Corporation, and John Does A-Z. In its complaint, the plaintiff alleges that Nationwide and/or its affiliated life insurance companies caused the replacement of variable insurance policies and other financial products issued by United Investors with policies issued by the Companies. The plaintiff raises claims for (1) violations of the Federal Lanham Act, and common law unfair competition and defamation; (2) tortious interference with the plaintiff’s contractual relationship with Waddell & Reed, Inc. and/or its affiliates, Waddell & Reed Financial, Inc., Waddell & Reed Financial Services, Inc. and W&R Insurance Agency, Inc., or with the plaintiff’s contractual relationships with its variable policyholders; (3) civil conspiracy; and (4) breach of fiduciary duty. The complaint seeks compensatory damages, punitive damages, pre- and post-judgment interest, a full accounting, a constructive trust and costs and disbursements, including attorneys’ fees. On December 30, 2005, Nationwide filed a motion for summary judgment. On June 15, 2006, the District Court granted Nationwide’s motion for summary judgment on all grounds and dismissed the plaintiff’s entire case with prejudice. On May 30, 2007, the Fifth Circuit Court of Appeals affirmed the District Court’s dismissal of the entire case. The plaintiff may appeal this decision to the United States Supreme Court. In the event the plaintiff elects this course of action, Nationwide will continue to defend this lawsuit vigorously.

On August 15, 2001, Nationwide was named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. Currently, the plaintiffs’ fifth amended complaint, filed March 21, 2006, purports to represent a class of qualified retirement plans under ERISA that purchased variable annuities from Nationwide. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that Nationwide breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by Nationwide, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys’ fees. To date, the District Court has rejected the plaintiffs’ request for certification of the alleged class. Nationwide’s motion to dismiss the plaintiffs’ fifth amended complaint is currently pending before the court. Nationwide continues to defend this lawsuit vigorously.

The general distributor, NISC, is not engaged in any litigation of any material nature.

Table of Contents of Statement of Additional Information	Page
General Information and History	1
Services	1
Purchase of Securities Being Offered	2
Underwriters	2
Advertising Annuity Payments	2 2
Condensed Financial Information	3
Financial Statements	4

To learn more about this product, you should read the Statement of Additional Information (the "SAI") dated the same date as this prospectus. For a free copy of the SAI and to request other information about this product please call our Service Center at 1-800-848-6331 (TDD 1-800-238-3035) or write to us at Nationwide Life Insurance Company, 5100 Rings Road, RR1-04-F4, Dublin, Ohio 43017-1522.

The SAI has been filed with the SEC and is incorporated by reference into this prospectus. The SEC maintains an Internet website (http://www.sec.gov) that contains the SAI and other information about us and the product. Information about us and the product (including the SAI) may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, D.C. 20549-4644. Additional information on the operation of the Public Reference Room may be obtained by calling the SEC at (202) 551-8090.

Investment Company Act of 1940 Registration File No. 811- 3330

Securities Act of 1933 Registration File No. 333-104513

Appendix A: Underlying Mutual Funds

The underlying mutual funds listed below are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies. There is no guarantee that the investment objectives will be met.

Please refer to the prospectus for each underlying mutual fund for more detailed information.

AIM Variable Insurance Funds - AIM V.I. Basic Value Fund: Series II Shares

Investment Adviser:	AIM Advisors, Inc.
Investment Objective:	Long-term growth of capital.

AIM Variable Insurance Funds - AIM V.I. Capital Appreciation Fund: Series II Shares

Investment Adviser:	AIM Advisors, Inc.
Investment Objective:	Growth of capital.

AIM Variable Insurance Funds - AIM V.I. Capital Development Fund: Series II Shares

Investment Adviser:	AIM Advisors, Inc.
Investment Objective:	Long-term capital growth.

AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Growth and Income Portfolio: Class B

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	AllianceBernstein L.P.
Investment Objective:	Long-term growth of capital.

AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class B

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	AllianceBernstein L.P.
Investment Objective:	Long-term growth of capital.

American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Long-term total return using a strategy that seeks to protect against U.S. inflation.

American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class II

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Capital growth by investing in common stocks.

American Century Variable Portfolios, Inc. - American Century VP International Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	American Century Global Investment Management, Inc.
Investment Objective:	Capital growth.

American Century Variable Portfolios, Inc. - American Century VP International Fund: Class IV

Investment Adviser:	American Century Global Investment Management, Inc.
Investment Objective:	Capital growth.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class II

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Long-term capital growth.

American Century Variable Portfolios, Inc. - American Century VP Ultra Fund: Class II

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2007

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Long-term capital growth.

American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class II

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Long-term capital growth with income as a secondary objective.

American Century Variable Portfolios, Inc. - American Century VP Vista Fund: Class II

Investment Adviser:	American Century Investment Management, Inc.
Investment Objective:	Long-term capital growth.

Dreyfus Investment Portfolios - Small Cap Stock Index Portfolio: Service Shares

Investment Adviser:	The Dreyfus Corporation
Investment Objective:	To match performance of the S&P SmallCap 600 Index®.

Dreyfus Stock Index Fund, Inc.: Service Shares

Investment Adviser:	The Dreyfus Corporation
Investment Objective:	To match performance of the S&P 500.

Dreyfus Variable Investment Fund - Appreciation Portfolio: Service Shares

Investment Adviser:	The Dreyfus Corporation
Investment Objective:	Long-term capital growth consistent with the preservation of capital.

Dreyfus Variable Investment Fund - Developing Leaders Portfolio: Service Shares

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	The Dreyfus Corporation
Investment Objective:	Capital growth.

Federated Insurance Series - Federated American Leaders Fund II: Service Shares

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	Federated Equity Management Company of Pennsylvania
Investment Objective:	Long-term capital growth, and secondarily income.

Federated Insurance Series - Federated Capital Appreciation Fund II: Service Shares

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	Federated Equity Management Company of Pennsylvania
Investment Objective:	Capital appreciation.

Federated Insurance Series - Federated Market Opportunity Fund II: Service Shares

Investment Adviser:	Federated Equity Management Company of Pennsylvania
Sub-adviser:	Federated Investment Management Company
Investment Objective:	To provide moderate capital appreciation and high current income.

Federated Insurance Series - Federated Quality Bond Fund II: Service Shares

Investment Adviser:	Federated Investment Management Company
Investment Objective:	Current income.

Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2

Investment Adviser:	Fidelity Management & Research Company
Sub-adviser:	FMR Co., Inc.
Investment Objective:	Reasonable income.

Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2

Investment Adviser:	Fidelity Management & Research Company
Sub-adviser:	FMR Co., Inc.
Investment Objective:	Capital appreciation.

Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class 2

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	FMR
Sub-adviser:	Fidelity Research & Analysis Company
Investment Objective:	Long-term capital growth.

Fidelity Variable Insurance Products Fund - VIP Overseas Portfolio: Service Class 2R

Investment Adviser:	FMR
Sub-adviser:	Fidelity Research & Analysis Company
Investment Objective:	Long-term capital growth.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Fidelity Variable Insurance Products Fund - VIP Contrafund® Portfolio: Service Class 2

Investment Adviser:	FMR
Sub-adviser:	Fidelity Research & Analysis Company
Investment Objective:	Long-term capital appreciation.

Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class 2

Investment Adviser:	FMR
Sub-adviser:	Fidelity Investments Money Management, Inc.
Investment Objective:	High level of current income.

Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2

Investment Adviser:	FMR
Sub-adviser:	Fidelity Research & Analysis Company
Investment Objective:	Long-term growth of capital.

Fidelity Variable Insurance Products Fund - VIP Value Strategies Portfolio: Service Class 2

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006

Investment Adviser:	FMR
Sub-adviser:	Fidelity Research & Analysis Company
Investment Objective:	Capital appreciation.

Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2

Investment Adviser:	Fidelity Management & Research Company
Sub-adviser:	FMR Co., Inc.
Investment Objective:	Capital appreciation.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Fidelity Variable Insurance Products Fund - VIP Freedom Fund 2010 Portfolio: Service Class 2

Investment Adviser: Fidelity Management & Research Company

Investment Objective: High total return with a secondary objective of principal preservation as the

fund approaches its target date and beyond.

The assets of each VIP Freedom Fund are invested in a combination of other Fidelity VIP funds: domestic and

international equity funds, investment-grade and high yield fixed-income funds, and money market/short-term funds

(underlying Fidelity funds). Each VIP Freedom Fund, as a shareholder in an underlying Fidelity fund, will indirectly

bear its pro rata share of the fees and expenses incurred by the underlying Fidelity fund. Please refer to the prospectus for

the VIP Freedom Funds for more information.

Fidelity Variable Insurance Products Fund - VIP Freedom Fund 2020 Portfolio: Service Class 2

Investment Adviser: Fidelity Management & Research Company

Investment Objective: High total return with a secondary objective of principal preservation as the

fund approaches its target date and beyond.

The assets of each VIP Freedom Fund are invested in a combination of other Fidelity VIP funds: domestic and

international equity funds, investment-grade and high yield fixed-income funds, and money market/short-term funds

(underlying Fidelity funds). Each VIP Freedom Fund, as a shareholder in an underlying Fidelity fund, will indirectly

bear its pro rata share of the fees and expenses incurred by the underlying Fidelity fund. Please refer to the prospectus for

the VIP Freedom Funds for more information.

Fidelity Variable Insurance Products Fund - VIP Freedom Fund 2030 Portfolio: Service Class 2

Investment Adviser: Fidelity Management & Research Company

Investment Objective: High total return with a secondary objective of principal preservation as the

fund approaches its target date and beyond.

The assets of each VIP Freedom Fund are invested in a combination of other Fidelity VIP funds: domestic and

international equity funds, investment-grade and high yield fixed-income funds, and money market/short-term funds

(underlying Fidelity funds). Each VIP Freedom Fund, as a shareholder in an underlying Fidelity fund, will indirectly

bear its pro rata share of the fees and expenses incurred by the underlying Fidelity fund. Please refer to the prospectus for

the VIP Freedom Funds for more information.

Franklin Templeton Variable Insurance Products Trust - Franklin Income Securities Fund: Class 2

Investment Adviser:	Franklin Advisors, Inc.
Investment Objective:	Maximum income while maintaining prospects for capital appreciation.

Franklin Templeton Variable Insurance Products Trust - Franklin Rising Dividends Securities Fund: Class 2

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2006

Investment Adviser:	Franklin Advisory Services, LLC
Investment Objective:	Long-term capital appreciation.

Franklin Templeton Variable Insurance Products Trust - Franklin Small Cap Value Securities Fund: Class 2

Investment Adviser:	Franklin Advisory Services, LLC
Investment Objective:	Long-term total return.

Franklin Templeton Variable Insurance Products Trust - Templeton Developing Markets Securities Fund: Class 3

Investment Adviser:	Templeton Asset Management, Ltd.
Investment Objective:	Long-term capital appreciation.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Franklin Templeton Variable Insurance Products Trust - Templeton Foreign Securities Fund: Class 2

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Templeton Investment Counsel, LLC
Investment Objective:	Long-term capital growth.

Franklin Templeton Variable Insurance Products Trust - Templeton Foreign Securities Fund: Class 3

Investment Adviser:	Templeton Investment Counsel, LLC
Investment Objective:	Long-term capital growth.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Franklin Templeton Variable Insurance Products Trust - Templeton Global Income Securities Fund: Class 3

Investment Adviser: Franklin Advisors, Inc.

Investment Objective: High current income, with preservation of capital. Capital appreciation is a

secondary consideration.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Janus Aspen Series - Balanced Portfolio: Service Shares

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser: Janus Capital Management LLC

Investment Objective: Long-term growth of capital, consistent with preservation of capital and

balanced by current income.

Janus Aspen Series - Forty Portfolio: Service Shares

Investment Adviser:	Janus Capital Management LLC
Investment Objective:	Long-term growth of capital.

Janus Aspen Series - INTECH Risk-Managed Core Portfolio: Service Shares

Investment Adviser:	Janus Capital Management LLC
Sub-adviser:	Enhanced Investment Technologies, LLC
Investment Objective:	Long-term growth of capital.

Janus Aspen Series - International Growth Portfolio: Service II Shares

Investment Adviser:	Janus Capital Management LLC
Investment Objective:	Long-term capital growth.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Janus Aspen Series - International Growth Portfolio: Service Shares

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Janus Capital Management LLC
Investment Objective:	Long-term capital growth.

Lehman Brothers Advisers Management Trust - AMT Short Duration Bond Portfolio: I Class

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Highest available current income consistent with liquidity and low risk to principal and, secondarily, total return.

MFS® Variable Insurance Trust - MFS Investors Growth Stock Series: Service Class

This investment option is only available in contracts for which good order applications were received before May 1, 2006

Investment Adviser:	Massachusetts Financial Services Company
Investment Objective:	Long-term capital growth and future income.

MFS® Variable Insurance Trust - MFS Value Series: Service Class

Investment Adviser:	Massachusetts Financial Services Company
Investment Objective:	Capital appreciation and reasonable income.

Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II

Investment Adviser:	Capital Research and Management Company
Investment Objective:	Seeks to provide high total return (including income and capital gains) consistent with the preservation of capital.

Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II

Investment Adviser:	Capital Research and Management Company
Investment Objective:	Income and more price stability than stocks, and capital preservation over the long term. Seeks to maximize an investor’s level of current income and preserve the investor’s capital.

Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II

Investment Adviser:	Capital Research and Management Company
Investment Objective:	Capital appreciation through stocks.

Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II

Investment Adviser:	Capital Research and Management Company
Investment Objective:	Capital appreciation principally through investment in stocks.

Nationwide Variable Insurance Trust - American Funds NVIT Growth- Income Fund: Class II

Investment Adviser:	Capital Research and Management Company
Investment Objective:	The fund seeks to make shareholders' investments grow and provide income over time by investing primarily in common stock of companies or other securities that demonstrate the potential for appreciation and/or dividends.

Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class I

Effective May 1, 2005 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Federated Investment Management Company
Investment Objective:	High current income.

Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Federated Investment Management Company
Investment Objective:	High current income.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - Gartmore NVIT Emerging Markets Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Gartmore Global Partners
Investment Objective:	Long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.

Nationwide Variable Insurance Trust - Gartmore NVIT Emerging Markets Fund: Class VI

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Gartmore Global Partners
Investment Objective:	Long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - Gartmore NVIT Global Utilities Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Gartmore Global Partners
Investment Objective:	Long-term capital growth.

Nationwide Variable Insurance Trust - Nationwide Multi-Manager NVIT Small Cap Growth Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Oberweis Asset Management, Inc.; Waddell & Reed Investment Management Company
Investment Objective:	Capital growth.

Nationwide Variable Insurance Trust - Nationwide Multi-Manager NVIT Small Cap Value Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Epoch Investment Partners, Inc.; J.P. Morgan Investment Management Inc.
Investment Objective:	Capital appreciation.

Nationwide Variable Insurance Trust - Nationwide Multi-Manager NVIT Small Company Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	American Century Investment Management Inc.; Franklin Portfolio
	Associates LLC; Gartmore Global Partners; Morgan Stanley Investment
	Management Inc.; Neuberger Berman, LLC; Waddell & Reed Investment
	Management Company
Investment Objective:	Long-term growth of capital.

Nationwide Variable Insurance Trust - Nationwide NVIT Global Financial Services Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Gartmore Global Partners
Investment Objective:	Long-term capital growth.

Nationwide Variable Insurance Trust - Nationwide NVIT Global Health Sciences Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term capital appreciation.

Nationwide Variable Insurance Trust - Nationwide NVIT Global Health Sciences Fund: Class VI

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term capital appreciation.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - Nationwide NVIT Global Technology and Communications Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term capital appreciation.

Nationwide Variable Insurance Trust - Nationwide NVIT Global Technology and Communications Fund: Class VI

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term capital appreciation.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - Nationwide NVIT Government Bond Fund: Class I

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	To provide a high level of income as is consistent with the preservation of capital.

Nationwide Variable Insurance Trust - Nationwide NVIT Investor Destinations Aggressive Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	To maximize growth of capital consistent with a more aggressive level of risk as compared to the other Investor Destinations Funds.

The Nationwide NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several

types of investments and asset classes, primarily by investing in underlying funds. Therefore, a proportionate share of the

fees and expenses of the underlying funds are indirectly borne by investors. Please refer to the prospectus for Nationwide

NVIT Investor Destinations Funds for more information.

Nationwide Variable Insurance Trust - Nationwide NVIT Investor Destinations Conservative Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	High level of return consistent with a conservative level of risk compared to the other Investor Destinations Funds.

The Nationwide NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several

types of investments and asset classes, primarily by investing in underlying funds. Therefore, a proportionate share of the

fees and expenses of the underlying funds are indirectly borne by investors. Please refer to the prospectus for Nationwide

NVIT Investor Destinations Funds for more information.

Nationwide Variable Insurance Trust - Nationwide NVIT Investor Destinations Moderate Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	High level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.

The Nationwide NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several

types of investments and asset classes, primarily by investing in underlying funds. Therefore, a proportionate share of the

fees and expenses of the underlying funds are indirectly borne by investors. Please refer to the prospectus for Nationwide

NVIT Investor Destinations Funds for more information.

Nationwide Variable Insurance Trust - Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to the other Investor Destinations Funds.

The Nationwide NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several

types of investments and asset classes, primarily by investing in underlying funds. Therefore, a proportionate share of the

fees and expenses of the underlying funds are indirectly borne by investors. Please refer to the prospectus for Nationwide

NVIT Investor Destinations Funds for more information.

Nationwide Variable Insurance Trust - Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	High level of total return consistent with a moderately conservative level of risk.

The Nationwide NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several

types of investments and asset classes, primarily by investing in underlying funds. Therefore, a proportionate share of the

fees and expenses of the underlying funds are indirectly borne by investors. Please refer to the prospectus for Nationwide

NVIT Investor Destinations Funds for more information.

Nationwide Variable Insurance Trust - Nationwide NVIT Mid Cap Growth Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term capital appreciation.

Nationwide Variable Insurance Trust - Nationwide NVIT Money Market Fund: Class I

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	High level of current income as is consistent with the preservation of capital and maintenance of liquidity.

Nationwide Variable Insurance Trust - Nationwide NVIT U.S. Growth Leaders Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Long-term growth of capital.

Nationwide Variable Insurance Trust - NVIT International Index Fund: Class VIII

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Fund Asset Management, LP
Investment Objective:	To match the performance of the Morgan Stanley Capital International Europe, Australasia and Far East Index ("MSCI EAFE® Index") as closely as possible before the deduction of Fund expenses.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - NVIT International Value Fund: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	The Boston Company Asset Management LLC
Investment Objective:	Long-term capital appreciation.

Nationwide Variable Insurance Trust - NVIT International Value Fund: Class VI

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	The Boston Company Asset Management LLC
Investment Objective:	Long-term capital appreciation.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Fund Asset Management, LP
Investment Objective:	Capital appreciation.

Nationwide Variable Insurance Trust - NVIT Nationwide® Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Investment Objective:	Total return through a flexible combination of capital appreciation and current income.

Nationwide Variable Insurance Trust - Van Kampen NVIT Comstock Value Fund: Class II

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Van Kampen Asset Management
Investment Objective:	Seeks capital growth and income through investments in equity securities, including common stocks and securities convertibles into common stocks.

Nationwide Variable Insurance Trust - Van Kampen NVIT Multi Sector Bond Fund: Class I

Investment Adviser:	Gartmore Mutual Fund Capital Trust
Sub-adviser:	Van Kampen Asset Management
Investment Objective:	Above average total return over a market cycle of three to five years.

Neuberger Berman Advisers Management Trust - AMT Fasciano Portfolio: S Class

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Long-term capital growth.

Neuberger Berman Advisers Management Trust - AMT International Portfolio: S Class

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Long-term growth of capital by investing primarily in common stocks of foreign companies.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Neuberger Berman Advisers Management Trust - AMT Mid-Cap Growth Portfolio: S Class

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2004

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Capital growth.

Neuberger Berman Advisers Management Trust - AMT Regency Portfolio: S Class

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Growth of capital.

Neuberger Berman Advisers Management Trust - AMT Socially Responsive Portfolio: I Class

Investment Adviser:	Neuberger Berman Management Inc.
Sub-adviser:	Neuberger Berman, LLC
Investment Objective:	Long-term capital growth by investing primarily in securities of companies that meet certain financial criteria and social policy.

Oppenheimer Variable Account Funds - Oppenheimer Capital Appreciation Fund/VA: Service Shares

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	Capital appreciation by investing in securities of well-known established companies.

Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA: Class 4

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	Long-term capital appreciation by investing a substantial portion of its assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special situations that are considered to have appreciation

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA: Service Shares

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	Long-term capital appreciation by investing a substantial portion of its assets in securities of foreign issuers, "growth-type" companies, cyclical industries and special situations that are considered to have appreciation

Oppenheimer Variable Account Funds - Oppenheimer High Income Fund/VA: Class 4

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	High level of current income.

This underlying mutual fund assesses a short-term trading fee (please see "Short-Term Trading Fees" earlier in this

prospectus).

Oppenheimer Variable Account Funds - Oppenheimer High Income Fund/VA: Service Shares

This underlying mutual fund is no longer available to receive transfers or new purchase payments effective May 1, 2007

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	High level of current income.

Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Service Shares

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	High total return which includes growth in the value of its shares as well as current income from equity and debt securities.

Oppenheimer Variable Account Funds - Oppenheimer Main Street Small Cap Fund®/VA: Service Shares

Investment Adviser:	OppenheimerFunds, Inc.
Investment Objective:	Capital appreciation.

Putnam Variable Trust - Putnam VT Growth and Income Fund: Class IB

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2005

Investment Adviser:	Putnam Investment Management, LLC
Investment Objective:	Capital growth and current income.

Putnam Variable Trust - Putnam VT International Equity Fund: Class IB

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Putnam Investment Management, LLC
Investment Objective:	Capital appreciation.

Putnam Variable Trust - Putnam VT Voyager Fund: Class IB

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2005

Investment Adviser:	Putnam Investment Management, LLC
Investment Objective:	Capital appreciation.

T. Rowe Price Equity Series, Inc. - T. Rowe Price Blue Chip Growth Portfolio: Class II

Investment Adviser:	T. Rowe Price Investment Services
Investment Objective:	Long-term capital growth and, secondarily, income.

T. Rowe Price Equity Series, Inc. - T. Rowe Price Equity Income Portfolio: Class II

Investment Adviser:	T. Rowe Price Investment Services
Investment Objective:	Substantial dividend income as well as long-term growth of capital through investments in the common stocks of established companies.

T. Rowe Price Equity Series, Inc. - T. Rowe Price Limited Term Bond Portfolio: Class II

Investment Adviser:	T. Rowe Price Investment Services
Investment Objective:	High level of income consistent with moderate price fluctuation.

The Universal Institutional Funds, Inc. - Core Plus Fixed Income Portfolio: Class II

Investment Adviser:	Morgan Stanley Investment Management Inc.
Investment Objective:	Above-average total return over a market cycle of three to five years by investing primarily in a diversified portfolio of fixed income securities.

The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II

Effective May 1, 2004 this underlying mutual fund is no longer available to receive transfers or new purchase payments

Investment Adviser:	Morgan Stanley Investment Management Inc.
Investment Objective:	High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.

The Universal Institutional Funds, Inc. - U.S. Real Estate Portfolio: Class II

Investment Adviser:	Morgan Stanley Investment Management Inc.
Investment Objective:	Above average current income and long-term capital appreciation by investing primarily in equity securities of companies in the U.S. real estate industry, including real estate investment trusts.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Discovery Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Sub-adviser:	Wells Capital Management Incorporated
Investment Objective:	Long-term capital appreciation.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Large Company Growth Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Investment Objective:	Long-term capital appreciation.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Money Market Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Investment Objective:	Current income, while preserving capital and liquidity.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Investment Objective:	Long-term capital appreciation.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small/Mid Cap Value Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Investment Objective:	Long-term capital appreciation.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Total Return Bond Fund

Investment Adviser:	Wells Fargo Funds Management, LLC
Investment Objective:	Total return consisting of income and capital appreciation.

Appendix B: Condensed Financial Information

The following tables list the Condensed Financial Information (the accumulation unit value information for accumulation units outstanding) for contracts with no optional benefits (the minimum variable account charge of 1.10%) and contracts with all optional benefits available on December 31, 2006 (the maximum variable account charge of 3.70%). The term "Period" is defined as a complete calendar year, unless otherwise noted. Those Periods with an asterisk (*) reflect accumulation unit information for a partial year only. Should the variable account charges applicable to your contract fall between the maximum and minimum charges, AND you wish to see a copy of the Condensed Financial Information applicable to your contract, such information can be obtained in the Statement of Additional Information FREE OF CHARGE by:

calling: 1-800-848-6331, TDD 1-800-238-3035

writing: Nationwide Life Insurance Company

5100 Rings Road, RR1-04-F4

Dublin, Ohio 43017-1522

checking

on-line at: www.nationwide.com

The Nationwide Variable Insurance Trust – American Funds NVIT Growth-Income Fund: Class II, Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA Class 4, Wells Fargo Advantage Variable Trust – Wells Fargo Advantage VT Discovery Fund, Wells Fargo Advantage Variable Trust – Wells Fargo Advantage VT Large Company Growth Fund, Wells Fargo Advantage Variable Trust – Wells Fargo Advantage VT Money Market Fund, Wells Fargo Advantage Variable Trust – Wells Fargo Advantage VT Small Cap Growth Fund, Wells Fargo Advantage Variable Trust –Wells Fargo Advantage VT Small/Mid Cap Value Fund, and the Wells Fargo Advantage Variable Trust – Wells Fargo Advantage VT Total Return Bond Fund were added to the variable account on May 1, 2007. Therefore, no Condensed Financial Information is available.

No Additional Contract Options Elected (Total 1.10%)

(Variable account charges of 1.10% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	16.121654	18.008250	11.70%	21,554	2006
	15.461220	16.121654	4.27%	26,970	2005
	14.104409	15.461220	9.62%	20,050	2004
	10.000000	14.104409	41.04%	4,118	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	15.131831	15.872465	4.89%	3,126	2006
	14.090901	15.131831	7.39%	3,484	2005
	13.399083	14.090901	5.16%	1,111	2004
	10.000000	13.399083	33.99%	921	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.250867	19.835218	14.98%	526	2006
	15.963051	17.250867	8.07%	888	2005
	14.002502	15.963051	14.00%	293	2004
	10.000000	14.002502	40.03%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.616196	18.068051	15.70%	3,151	2006
	15.095601	15.616196	3.45%	3,227	2005
	13.723460	15.095601	10.00%	3,224	2004
	10.000000	13.723460	37.23%	3,260	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.421522	20.806891	12.95%	657	2006
	17.467525	18.421522	5.46%	1,606	2005
	14.832559	17.467525	17.76%	1,642	2004
	10.000000	14.832559	48.33%	1,783	2003*




American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.539655	17.953290	15.53%	501	2006
	15.032935	15.539655	3.37%	1,582	2005
	13.502299	15.032935	11.34%	1,611	2004
	10.000000	13.502299	35.02%	1,651	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.529711	20.393455	23.37%	920	2006
	14.776380	16.529711	11.87%	920	2005
	13.017408	14.776380	13.51%	920	2004
	10.000000	13.017408	30.17%	294	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.600633	15.561102	23.49%	7,002	2006
	11.277333	12.600633	11.73%	7,325	2005
	10.000000	11.277333	12.77%	7,446	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.224346	13.346510	18.91%	352	2006
	10.000000	11.224346	12.24%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.419326	13.777894	-4.45%	3,110	2006
	14.296943	14.419326	0.86%	3,625	2005
	13.071680	14.296943	9.37%	1,837	2004
	10.000000	13.071680	30.72%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.957012	18.695900	17.16%	19,894	2006
	15.387060	15.957012	3.70%	16,075	2005
	13.626702	15.387060	12.92%	4,332	2004
	10.000000	13.626702	36.27%	209	2003*



American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.372115	12.245589	7.68%	1,682	2006
	10.000000	11.372115	13.72%	2,253	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.979055	11.030976	0.47%	14,114	2006
	10.930030	10.979055	0.45%	16,169	2005
	10.444683	10.930030	4.65%	15,287	2004
	10.000000	10.444683	4.45%	832	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.672793	21.129368	13.16%	2,350	2006
	17.606381	18.672793	6.06%	2,239	2005
	14.605712	17.606381	20.54%	1,807	2004
	10.000000	14.605712	46.06%	185	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	15.039960	17.136860	13.94%	22,688	2006
	14.561180	15.039960	3.29%	26,773	2005
	13.341925	14.561180	9.14%	26,421	2004
	10.000000	13.341925	33.42%	4,947	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.565076	15.590731	14.93%	7,393	2006
	13.173109	13.565076	2.98%	3,819	2005
	12.710009	13.173109	3.64%	108	2004
	10.000000	12.710009	27.10%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.851757	16.229855	2.39%	213	2006
	15.183919	15.851757	4.40%	1,270	2005
	13.825682	15.183919	9.82%	1,265	2004
	10.000000	13.825682	38.26%	1,277	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.988096	17.267291	15.21%	0	2006
	14.463546	14.988096	3.63%	0	2005
	13.355494	14.463546	8.30%	0	2004
	10.000000	13.355494	33.55%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.853123	15.863461	14.51%	1,226	2006
	13.773279	13.853123	0.58%	1,226	2005
	13.002047	13.773279	5.93%	12,805	2004
	10.000000	13.002047	30.02%	12,805	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.288678	2.89%	22,682	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.493513	10.785198	2.78%	7,008	2006
	10.506201	10.493513	-0.12%	6,462	2005
	10.281720	10.506201	2.18%	3,270	2004
	10.000000	10.281720	2.82%	1,846	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.800778	18.741842	18.61%	33,162	2006
	15.133052	15.800778	4.41%	27,230	2005
	13.756075	15.133052	10.01%	23,737	2004
	10.000000	13.756075	37.56%	9,363	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.790877	15.590075	5.40%	17,192	2006
	14.174945	14.790877	4.35%	15,335	2005
	13.898624	14.174945	1.99%	8,407	2004
	10.000000	13.898624	38.99%	1,320	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.545720	22.766986	16.48%	5,601	2006
	16.637511	19.545720	17.48%	5,601	2005
	14.845971	16.637511	12.07%	5,601	2004
	10.000000	14.845971	48.46%	6,418	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.978724	15.122895	16.52%	14,012	2006
	11.051431	12.978724	17.44%	5,612	2005
	10.000000	11.051431	10.51%	1,463	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.624727	19.424104	10.21%	60,377	2006
	15.277018	17.624727	15.37%	38,945	2005
	13.413518	15.277018	13.89%	17,486	2004
	10.000000	13.413518	34.14%	4,983	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.737599	11.059086	2.99%	70,235	2006
	10.654803	10.737599	0.78%	17,679	2005
	10.340078	10.654803	3.04%	15,380	2004
	10.000000	10.340078	3.40%	3,143	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.703535	23.016109	11.17%	29,861	2006
	17.737527	20.703535	16.72%	28,655	2005
	14.387342	17.737527	23.29%	8,377	2004
	10.000000	14.387342	43.87%	3,189	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	19.044673	21.851015	14.74%	1,307	2006
	18.799692	19.044673	1.30%	1,708	2005
	16.697903	18.799692	12.59%	1,082	2004
	10.000000	16.697903	66.98%	257	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.415794	15.473302	15.34%	16,073	2006
	10.000000	13.415794	34.16%	4,052	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.717270	11.615174	8.38%	95	2006
	10.000000	10.717270	7.17%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.024609	12.179941	10.48%	1,540	2006
	10.000000	11.024609	10.25%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.233204	12.545895	11.69%	3,510	2006
	10.000000	11.233204	12.33%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.134394	11.34%	31,263	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.849802	17.201726	15.84%	40,009	2006
	14.517102	14.849802	2.29%	44,082	2005
	13.224078	14.517102	9.78%	52,017	2004
	10.000000	13.224078	32.24%	37,020	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	19.029112	22.016280	15.70%	13,859	2006
	17.689369	19.029112	7.57%	8,261	2005
	14.453810	17.689369	22.39%	3,686	2004
	10.000000	14.453810	44.54%	3,006	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.710877	16.112460	26.76%	8,476	2006
	10.000000	12.710877	27.11%	612	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.642320	21.190748	20.11%	2,438	2006
	16.191498	17.642320	8.96%	3,581	2005
	13.812306	16.191498	17.23%	3,583	2004
	10.000000	13.812306	38.12%	1,952	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.570228	15.100494	20.13%	53,819	2006
	11.540306	12.570228	8.92%	24,155	2005
	10.000000	11.540306	15.40%	11,082	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.808955	10.947294	11.61%	9,999	2006
	10.000000	9.808955	-1.91%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.196803	14.533502	10.13%	638	2006
	12.393718	13.196803	6.48%	638	2005
	11.571878	12.393718	7.10%	638	2004
	10.000000	11.571878	15.72%	306	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.247597	17.534277	7.92%	431	2006
	14.595144	16.247597	11.32%	0	2005
	12.509690	14.595144	16.67%	0	2004
	10.000000	12.509690	25.10%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	22.134977	32.177003	45.37%	243	2006
	16.962545	22.134977	30.49%	243	2005
	14.450810	16.962545	17.38%	243	2004
	10.000000	14.450810	44.51%	243	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.901554	21.681066	45.50%	14,931	2006
	11.412704	14.901554	30.57%	6,827	2005
	10.000000	11.412704	14.13%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.562268	17.073499	9.71%	0	2006
	14.186773	15.562268	9.70%	0	2005
	12.211795	14.186773	16.17%	0	2004
	10.000000	12.211795	22.12%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	10.098682	10.407571	3.06%	92,068	2006
	10.065425	10.098682	0.33%	31,790	2005
	10.098688	10.065425	-0.33%	63,215	2004
	10.000000	10.098688	0.99%	61,188	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	14.075133	14.937561	6.13%	8,628	2006
	13.654122	14.075133	3.08%	8,815	2005
	12.667783	13.654122	7.79%	8,882	2004
	10.000000	12.667783	26.68%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.736161	18.754956	19.18%	45,796	2006
	14.944258	15.736161	5.30%	45,464	2005
	13.159513	14.944258	13.56%	27,823	2004
	10.000000	13.159513	31.60%	23,829	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.321410	15.949196	4.10%	5,880	2006
	15.055133	15.321410	1.77%	4,282	2005
	13.606535	15.055133	10.65%	980	2004
	10.000000	13.606535	36.07%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.664494	14.118218	21.04%	56,213	2006
	10.000000	11.664494	16.64%	6,279	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.252914	18.400660	13.21%	852	2006
	14.488218	16.252914	12.18%	1,573	2005
	12.625031	14.488218	14.76%	1,431	2004
	10.000000	12.625031	26.25%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.576871	12.701932	9.72%	27,293	2006
	10.000000	11.576871	15.77%	23,484	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.544288	16.355839	12.46%	89,314	2006
	13.761919	14.544288	5.69%	32,051	2005
	12.283735	13.761919	12.03%	20,277	2004
	10.000000	12.283735	22.84%	666	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.479861	4.80%	384,029	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.461879	4.62%	9,104	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.762882	7.63%	803	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.288678	2.89%	22,682	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.201393	14.441001	9.39%	3,224	2006
	13.037478	13.201393	1.26%	3,999	2005
	11.973549	13.037478	8.89%	4,022	2004
	10.000000	11.973549	19.74%	2,714	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.463797	11.445881	9.39%	7,225	2006
	10.000000	10.463797	4.64%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	26.120428	35.215525	34.82%	693	2006
	19.957658	26.120428	30.88%	891	2005
	16.755328	19.957658	19.11%	891	2004
	10.000000	16.755328	67.55%	751	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.424087	20.831525	35.06%	5,106	2006
	11.770979	15.424087	31.03%	2,949	2005
	10.000000	11.770979	17.71%	453	2004*



NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.466543	16.772102	1.86%	5,183	2006
	15.453764	16.466543	6.55%	6,107	2005
	13.807417	15.453764	11.92%	233	2004
	10.000000	13.807417	38.07%	133	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.752129	22.875380	15.81%	2,164	2006
	19.430784	19.752129	1.65%	2,322	2005
	16.792703	19.430784	15.71%	1,254	2004
	10.000000	16.792703	67.93%	656	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	19.155829	21.172191	10.53%	16,698	2006
	17.292150	19.155829	10.78%	8,254	2005
	14.719529	17.292150	17.48%	2,750	2004
	10.000000	14.719529	47.20%	2,171	2003*

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.713478	22.225449	18.77%	0	2006
	17.078846	18.713478	9.57%	0	2005
	14.299711	17.078846	19.43%	0	2004
	10.000000	14.299711	43.00%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.821140	16.028418	1.31%	425	2006
	14.786001	15.821140	7.00%	430	2005
	13.898986	14.786001	6.38%	437	2004
	10.000000	13.898986	38.99%	129	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.567491	10.704223	1.29%	5,849	2006
	9.871783	10.567491	7.05%	2,049	2005
	10.000000	9.871783	-1.28%	920	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.499874	16.966606	9.46%	0	2006
	15.794218	15.499874	-1.86%	0	2005
	15.350846	15.794218	2.89%	0	2004
	10.000000	15.350846	53.51%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.680479	11.746181	9.98%	1,329	2006
	10.883303	10.680479	-1.86%	2,436	2005
	10.000000	10.883303	8.83%	0	2004*




NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.800555	22.818904	35.82%	0	2006
	15.997064	16.800555	5.02%	0	2005
	12.484794	15.997064	28.13%	0	2004
	10.000000	12.484794	24.85%	0	2003*

NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.536208	10.768811	2.21%	66,320	2006
	10.316390	10.536208	2.13%	11,953	2005
	10.101596	10.316390	2.13%	29,189	2004
	10.000000	10.101596	1.02%	29,652	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.405523	11.975721	5.00%	4,021	2006
	11.162893	11.405523	2.17%	713	2005
	10.785282	11.162893	3.50%	0	2004
	10.000000	10.785282	7.85%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.599352	13.510710	7.23%	26,299	2006
	12.192168	12.599352	3.34%	3,383	2005
	11.504189	12.192168	5.98%	2,771	2004
	10.000000	11.504189	15.04%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.853264	15.256798	10.13%	265,465	2006
	13.296334	13.853264	4.19%	114,589	2005
	12.273782	13.296334	8.33%	79,555	2004
	10.000000	12.273782	22.74%	20,804	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.395352	17.440498	13.28%	232,920	2006
	14.537959	15.395352	5.90%	40,692	2005
	13.113799	14.537959	10.86%	19,796	2004
	10.000000	13.113799	31.14%	2,550	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.597078	19.183932	15.59%	13,016	2006
	15.547974	16.597078	6.75%	11,350	2005
	13.787066	15.547974	12.77%	6,424	2004
	10.000000	13.787066	37.87%	564	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.574610	16.889451	8.44%	30,853	2006
	14.368057	15.574610	8.40%	3,565	2005
	12.609627	14.368057	13.95%	646	2004
	10.000000	12.609627	26.10%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	10.077171	10.418140	3.38%	46,584	2006
	9.924162	10.077171	1.54%	24,026	2005
	9.953779	9.924162	-0.30%	13,010	2004
	10.000000	9.953779	-0.46%	10,361	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	15.123212	16.961723	12.16%	47,799	2006
	14.285289	15.123212	5.87%	2,090	2005
	13.186947	14.285289	8.33%	205	2004
	10.000000	13.186947	31.87%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.364508	18.071301	-1.60%	1,040	2006
	16.623387	18.364508	10.47%	1,127	2005
	14.994126	16.623387	10.87%	1,158	2004
	10.000000	14.994126	49.94%	528	2003*


NVIT NVIT International Value Fund: Class II – Q/NQ	18.105903	21.918912	21.06%	0	2006
	16.376550	18.105903	10.56%	0	2005
	13.798956	16.376550	18.68%	0	2004
	10.000000	13.798956	37.99%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.719484	15.398652	21.06%	39,625	2006
	11.503101	12.719484	10.57%	12,974	2005
	10.000000	11.503101	15.03%	4,050	2004*



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.882719	8.83%	0	2006*




NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.247257	19.831814	8.68%	6,979	2006
	16.458347	18.247257	10.87%	4,083	2005
	14.379240	16.458347	14.46%	1,858	2004
	10.000000	14.379240	43.79%	842	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.286496	18.614172	14.29%	47,395	2006
	15.841193	16.286496	2.81%	10,308	2005
	13.680090	15.841193	15.80%	1,120	2004
	10.000000	13.680090	36.80%	703	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.671822	12.102286	3.69%	13,238	2006
	11.549482	11.671822	1.06%	1,402	2005
	10.961709	11.549482	5.36%	1,334	2004
	10.000000	10.961709	9.62%	546	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.984169	15.958182	6.50%	13,582	2006
	14.447854	14.984169	3.71%	14,348	2005
	13.702040	14.447854	5.44%	7,649	2004
	10.000000	13.702040	37.02%	3,174	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	13.036321	15.136640	16.11%	24,141	2006
	11.557400	13.036321	12.80%	17,122	2005
	10.000000	11.557400	15.57%	3,719	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	20.149605	23.388893	16.08%	2,351	2006
	17.861702	20.149605	12.81%	2,461	2005
	15.192273	17.861702	17.57%	2,462	2004
	10.000000	15.192273	51.92%	2,966	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.177474	14.235338	8.03%	4,624	2006
	13.061731	13.177474	0.89%	4,859	2005
	12.146399	13.061731	7.54%	4,201	2004
	10.000000	12.146399	21.46%	1,543	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.856255	16.861761	13.50%	61,433	2006
	14.205526	14.856255	4.58%	12,271	2005
	13.159987	14.205526	7.94%	4,658	2004
	10.000000	13.159987	31.60%	4,183	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.398617	21.998076	13.40%	17,254	2006
	17.877033	19.398617	8.51%	8,239	2005
	15.166871	17.877033	17.87%	612	2004
	10.000000	15.166871	51.67%	271	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	14.105782	16.170786	14.64%	3,599	2006
	13.553612	14.105782	4.07%	3,716	2005
	12.333845	13.553612	9.89%	3,922	2004
	10.000000	12.333845	23.34%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.200999	20.464841	26.32%	0	2006
	14.599835	16.200999	10.97%	0	2005
	12.704650	14.599835	14.92%	0	2004
	10.000000	12.704650	27.05%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.777055	13.323774	4.28%	0	2006
	12.222941	12.777055	4.53%	1,136	2005
	11.766703	12.222941	3.88%	1,136	2004
	10.000000	11.766703	17.67%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.232333	12.145470	8.13%	5,878	2006
	10.000000	11.232333	12.32%	2,306	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.559194	12.390825	17.35%	14,741	2006
	10.000000	10.559194	5.59%	3,876	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.053763	10.343754	2.88%	1,590	2006
	10.000000	10.053763	0.54%	1,516	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.729318	10.989490	2.42%	47,086	2006
	10.437713	10.729318	2.79%	6,577	2005
	10.140764	10.437713	2.93%	1,983	2004

	10.000000	10.140764	1.41%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.256568	16.719355	9.59%	1,845	2006
	13.756350	15.256568	10.91%	1,846	2005
	12.635778	13.756350	8.87%	1,846	2004
	10.000000	12.635778	26.36%	1,581	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	21.079545	28.701615	36.16%	18,095	2006
	18.255340	21.079545	15.47%	16,724	2005
	13.565135	18.255340	34.58%	12,229	2004
	10.000000	13.565135	35.65%	3,202	2003*

Maximum Additional Contract Options Elected (Total 3.70%)

(Variable account charges of 3.70% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	13.775771	14.984461	8.77%	0	2006*





AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	12.921355	13.198364	2.14%	0	2006*






AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	14.798367	16.569192	11.97%	0	2006*






AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	13.067842	14.723329	12.67%	0	2006*







AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	15.802172	17.380530	9.99%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	13.271696	14.931237	12.50%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	14.926488	14.498457	20.26%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.056121	14.498457	20.26%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.027989	12.769402	15.79%	0	2006*





American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	12.133589	11.289730	-6.95%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	13.586950	15.501880	14.09%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.173294	11.715904	4.86%	0	2006*





American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.032897	9.816056	-2.16%	0	2006*







Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	15.986873	17.615797	10.19%	0	2006*






Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	12.756049	14.153565	10.96%	0	2006*




Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	11.645106	13.033270	11.92%	0	2006*





Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	13.654700	13.613730	-0.30%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	13.047929	14.638127	12.19%	0	2006*





Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	11.874017	13.240769	11.51%	0	2006*





Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.138660	1.39%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	9.590334	9.598496	0.09%	0	2006*





Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	13.494965	15.587361	15.51%	0	2006*






Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	12.373447	12.699999	2.64%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	17.818247	20.210751	13.43%	0	2006*






Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.417995	14.090237	13.47%	0	2006*






Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	15.206780	16.319974	7.32%	0	2006*






Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	9.797160	9.825946	0.29%	0	2006*







Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	18.717646	20.262828	8.26%	0	2006*






Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	15.744094	17.590557	11.73%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.181415	14.804331	12.31%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.529729	11.112752	5.54%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.831726	11.653157	7.58%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.036685	12.003292	8.76%	0	2006*





Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	10.939536	9.40%	0	2006*




Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	12.755510	14.388478	12.80%	0	2006*

100

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	16.236347	18.292672	12.66%	0	2006*







Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.488677	15.415871	23.44%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	15.648032	18.302761	16.97%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.027113	18.302761	16.97%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.637161	10.473686	8.68%	0	2006*






Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	11.631235	12.473585	7.24%	0	2006*

101

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	14.135761	14.855180	5.09%	0	2006*





Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	19.393334	27.452969	41.56%	0	2006*





Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.257942	20.201153	41.68%	0	2006*





Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	14.496241	15.487065	6.84%	0	2006*





Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.338525	9.371867	0.36%	0	2006*






MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	11.897855	12.295783	3.34%	0	2006*

102

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	13.652496	15.845172	16.06%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	13.127195	13.306637	1.37%	0	2006*






Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.460481	13.507702	17.86%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	14.668241	16.171106	10.25%	0	2006*






Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.374423	12.152570	6.84%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	13.547830	14.835907	9.51%	0	2006*

103

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.296349	2.96%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.278754	2.79%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.574438	5.74%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.108463	1.08%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	11.335019	12.074424	6.52%	0	2006*





NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.280646	10.950809	6.52%	0	2006*





NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	23.152043	30.395557	31.29%	0	2006*

104

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	14.757940	19.409475	31.52%	0	2006*





NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	14.910590	19.721410	32.26%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	13.902646	13.789135	-0.82%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	16.243952	18.319287	12.78%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	16.285548	17.527807	7.63%	0	2006*




NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	16.230513	18.771255	15.65%	0	2006*





NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	13.227500	13.049309	-1.35%	0	2006*

105

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.110675	9.972872	-1.36%	0	2006*





NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	13.056832	13.917631	6.59%	0	2006*






NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.218877	10.943850	7.09%	0	2006*






NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	9.697764	9.651993	-0.47%	0	2006*





NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	10.375988	10.609117	2.25%	0	2006*





NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.272958	11.771480	4.42%	0	2006*

106

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	12.211813	13.096506	7.24%	0	2006*





NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	13.391759	14.773076	10.31%	0	2006*






NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	14.258880	16.049291	12.56%	0	2006*





NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	14.507589	15.319762	5.60%	0	2006*





NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.393781	9.457007	0.67%	0	2006*




NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	12.893635	14.082037	9.22%	0	2006*





NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	15.154530	14.521407	-4.18%	0	2006*

107

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.692149	6.92%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	16.865714	19.882465	17.89%	0	2006*





NVIT NVIT International Value Fund: Class VI – Q/NQ	12.169923	14.347201	17.89%	0	2006*





NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	15.486258	16.389720	5.83%	0	2006*




NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	13.933451	15.507421	11.30%	0	2006*





NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	10.466900	10.568422	0.97%	0	2006*





Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	12.568536	13.034527	3.71%	0	2006*

108

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.473142	14.103113	13.07%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	17.511906	19.794346	13.03%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	11.206410	11.788720	5.20%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	12.747495	14.089113	10.52%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	16.371794	18.078896	10.43%	0	2006*






Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.139366	14.668103	11.63%	0	2006*

109

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.091072	18.563277	23.01%	0	2006*





Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	11.901634	12.085441	1.54%	0	2006*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.035823	11.620122	5.29%	0	2006*





T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.374399	11.854942	14.27%	0	2006*





T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.877740	9.896208	0.19%	0	2006*





The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	9.993737	9.967709	-0.26%	0	2006*






The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	12.746512	13.602452	6.72%	0	2006*

110

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	18.530282	24.569933	32.59%	0	2006*

111

Appendix C: Contract Types and Tax Information

Types of Contracts

The contracts described in this prospectus are classified according to the tax treatment to which they are subject under the Internal Revenue Code. Following is a general description of the various contract types. Eligibility requirements, tax benefits (if any), limitations, and other features of the contracts will differ depending on contract type.

Charitable Remainder Trusts

Charitable Remainder Trusts are trusts that meet the requirements of Section 664 of the Internal Revenue Code. Non-Qualified Contracts that are issued to Charitable Remainder Trusts will differ from other Non-Qualified Contracts in three respects:

(1)	Waiver of CDSC. In addition to the CDSC-free withdrawal privilege available to all contracts, Charitable Remainder Trusts may also withdraw the difference between:

the contract value on the day before the withdrawal; and

the total amount of purchase payments made to the contract (less an adjustment for amounts surrendered).

(2)	Contract ownership at annuitization. On the annuitization date, if the contract owner is a Charitable Remainder Trust, the Charitable Remainder Trust will continue to be the contract owner and the annuitant will NOT become the contract owner.

(3)

Recipient of death benefit proceeds. With respect to the death benefit proceeds, if the contract owner is a Charitable Remainder Trust, the death benefit is payable to the Charitable Remainder Trust. Any designation in conflict with the Charitable Remainder Trust’s right to the death benefit will be void.

While these provisions are intended to facilitate a Charitable Remainder Trust's ownership of this contract, the rules governing Charitable Remainder Trusts are numerous and complex. A Charitable Remainder Trust that is considering purchasing this contract should seek the advice of a qualified tax and/or financial adviser prior to purchasing the contract. An annuity that has a Charitable Remainder Trust endorsement is not a charitable remainder trust; the endorsement is merely to facilitate ownership of the contract by a Charitable Remainder Trust.

Investment Only (Qualified Plans)

Contracts that are owned by Qualified Plans are not intended to confer tax benefits on the beneficiaries of the plan; they are used as investment vehicles for the plan. The income tax consequences to the beneficiary of a Qualified Plan are controlled by the operation of the plan, not by operation of the assets in which the plan invests.

Beneficiaries of Qualified Plans should contact their employer and/or trustee of the plan to obtain and review the plan, trust, summary plan description and other documents for the tax and other consequences of being a participant in a Qualified Plan.

Individual Retirement Annuities (IRAs)

IRAs are contracts that satisfy the provisions of Section 408(b) of the Internal Revenue Code, including the following requirements:

·	the contract is not transferable by the owner;

·	the premiums are not fixed;

·	if the contract owner is younger than age 50, the annual premium cannot exceed $4,000; if the contract owner is age 50 or older, the annual premium cannot exceed $5,000 (although rollovers of greater amounts from qualified plans, Tax Sheltered Annuities and other IRAs can be received);

·	certain minimum distribution requirements must be satisfied after the owner attains the age of 70½;

·	the entire interest of the owner in the contract is nonforfeitable; and

·	after the death of the owner, additional distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.

Depending on the circumstance of the owner, all or a portion of the contributions made to the account may be deducted for federal income tax purposes.

Failure to make the mandatory distributions can result in an additional penalty tax of 50% of the excess of the amount required to be distributed over the amount that was actually distributed.

IRAs may receive rollover contributions from other Individual Retirement Accounts, other Individual Retirement Annuities, Tax Sheltered Annuities, certain 457 governmental plans and qualified retirement plans (including 401(k) plans).

When the owner of an IRA attains the age of 70½, the Internal Revenue Code requires that certain minimum distributions be made. In addition, upon the death of the owner of an IRA, mandatory distribution requirements are imposed by the Internal Revenue Code to ensure distribution of the entire contract value within the required statutory period. Due to recent changes in Treasury Regulations, the amount used to compute the mandatory distributions may exceed the contract value.

For further details regarding IRAs, please refer to the disclosure statement provided when the IRA was established.

Non-Qualified Contracts

A Non-Qualified Contract is a contract that does not qualify for certain tax benefits under the Internal Revenue Code, and which is not an IRA, a Roth IRA, a SEP IRA, a Simple IRA, or a Tax Sheltered Annuity.

Upon the death of the owner of a Non-Qualified Contract, mandatory distribution requirements are imposed to ensure distribution of the entire balance in the contract within a required period.

112

Non-Qualified contracts that are owned by natural persons allow the deferral of taxation on the income earned in the contract until it is distributed or deemed to be distributed. Non-Qualified contracts that are owned by non-natural persons, such as trusts, corporations and partnerships are generally subject to current income tax on the gain earned inside the contract, unless the non-natural person owns the contract as an “agent” of a natural person.

Roth IRAs

Roth IRA contracts are contracts that satisfy the provisions of Section 408A of the Internal Revenue Code, including the following requirements:

·	the contract is not transferable by the owner;

·	the premiums are not fixed;

·	if the contract owner is younger than age 50, the annual premium cannot exceed $4,000; if the contract owner is age 50 or older, the annual premium cannot exceed $5,000 (although rollovers of greater amounts from other Roth IRAs and IRAs can be received);

·	the entire interest of the owner in the contract is nonforfeitable; and

·	after the death of the owner, certain distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.

A Roth IRA can receive a rollover from an IRA; however, the amount rolled over from the IRA to the Roth IRA is required to be included in the owner's federal gross income at the time of the rollover, and will be subject to federal income tax.

There are income limitations on eligibility to participate in a Roth IRA and additional income limitations for eligibility to rollover amounts from an IRA to a Roth IRA.

For further details regarding Roth IRAs, please refer to the disclosure statement provided when the Roth IRA was established.

Simplified Employee Pension IRAs (SEP IRA)

A SEP IRA is a written plan established by an employer for the benefit of employees which permits the employer to make contributions to an IRA established for the benefit of each employee.

An employee may make deductible contributions to a SEP IRA subject to the same restrictions and limitations as an IRA. In addition, the employer may make contributions to the SEP IRA, subject to dollar and percentage limitations imposed by both the Internal Revenue Code and the written plan.

A SEP IRA plan must satisfy:

·	minimum participation rules;

·	top-heavy contribution rules;

·	nondiscriminatory allocation rules; and

·	requirements regarding a written allocation formula.

In addition, the plan cannot restrict withdrawals of non-elective contributions, and must restrict withdrawals of elective contributions before March 15^thof the following year.

When the owner of SEP IRA attains the age of 70½, the Internal Revenue Code requires that certain minimum distributions be made. Due to recent changes in Treasury Regulations, the amount used to compute the minimum distributions may exceed the contract value. In addition, upon the death of the owner of a SEP IRA, mandatory distribution requirements are imposed by the Internal Revenue Code to ensure distribution of the entire contract value within the required statutory period.

Simple IRAs

A Simple IRA is an individual retirement annuity that is funded exclusively by a qualified salary reduction arrangement and satisfies:

·	vesting requirements;

·	participation requirements; and

·	administrative requirements.

The funds contributed to a Simple IRA cannot be commingled with funds in IRAs or SEP IRAs.

A Simple IRA cannot receive rollover distributions except from another Simple IRA.

When the owner of Simple IRA attains the age of 70½, the Internal Revenue Code requires that certain minimum distributions be made. Due to recent changes in Treasury Regulations, the amount used to compute the minimum distributions may exceed the contract value.

In addition, upon the death of the owner of a Simple IRA, mandatory distribution requirements are imposed by the Internal Revenue Code to ensure distribution of the entire contract value within the required statutory period.

Tax Sheltered Annuities

Certain tax-exempt organizations (described in section 501(c)(3) of the Internal Revenue Code) and public school systems may establish a plan under which annuity contracts can be purchased for their employees. These annuity contracts are often referred to as Tax Sheltered Annuities.

Purchase payments made to Tax Sheltered Annuities are excludable from the income of the employee, up to statutory maximum amounts. These amounts should be set forth in the plan adopted by the employer.

Tax Sheltered Annuities may receive rollover contributions from Individual Retirement Accounts, Individual Retirement Annuities, other Tax Sheltered Annuities, certain 457 governmental plans, and qualified retirement plans (including 401(k) plans).

The owner's interest in the contract is nonforfeitable (except for failure to pay premiums) and cannot be transferred.

When the owner of a Tax Sheltered Annuity attains the age of 70½, the Internal Revenue Code requires that certain minimum distributions be made. Due to recent changes in Treasury Regulations, the amount used to compute the minimum distributions may exceed the contract value. In

113

addition, upon the death of the owner of a Tax Sheltered Annuity, mandatory distribution requirements are imposed by the Internal Revenue Code to ensure distribution of the entire contract value within the required statutory period.

Federal Tax Considerations

Federal Income Taxes

The tax consequences of purchasing a contract described in this prospectus will depend on:

·	the type of contract purchased;

·	the purposes for which the contract is purchased; and

·	the personal circumstances of individual investors having interests in the contracts.

Existing tax rules are subject to change, and may affect individuals differently depending on their situation. Nationwide does not guarantee the tax status of any contracts or any transactions involving the contracts.

Representatives of the Internal Revenue Service have informally suggested, from time to time, that the number of underlying mutual funds available or the number of transfer opportunities available under a variable product may be relevant in determining whether the product qualifies for the desired tax treatment. In 2003, the Internal Revenue Service issued formal guidance, in Revenue Ruling 2003-91, that indicates that if the number of underlying mutual funds available in a variable insurance product does not exceed 20, the number of underlying mutual funds alone would not cause the contract to not qualify for the desired tax treatment. The Internal Revenue Service has also indicated that exceeding 20 investment options may be considered a factor, along with other factors including the number of transfer opportunities available under the contract, when determining whether the contract qualifies for the desired tax treatment. The revenue ruling did not indicate the actual number of underlying mutual funds that would cause the contract to not provide the desired tax treatment. Should the U.S. Secretary of the Treasury issue additional rules or regulations limiting the number of underlying mutual funds, transfers between underlying mutual funds, exchanges of underlying mutual funds or changes in investment objectives of underlying mutual funds such that the contract would no longer qualify for tax deferred treatment under Section 72 of the Internal Revenue Code, Nationwide will take whatever steps are available to remain in compliance.

If the contract is purchased as an investment of certain retirement plans (such as qualified retirement plans, Individual Retirement Accounts, and custodial accounts as described in Sections 401, 408(a), and 403(b)(7) of the Internal Revenue Code), tax advantages enjoyed by the contract owner and/or annuitant may relate to participation in the plan rather than ownership of the annuity contract. Such plans are permitted to purchase investments other than annuities and retain tax-deferred status.

The following is a brief summary of some of the federal income tax considerations related to the contracts. In addition to the federal income tax, distributions from annuity contracts may be subject to state and local income taxes. The tax rules across all states and localities are not uniform and therefore will not be discussed in this prospectus. Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed. Nothing in this prospectus should be considered to be tax advice. Contract owners and prospective contract owners should consult a financial consultant, tax adviser or legal counsel to discuss the taxation and use of the contracts.

IRAs, SEP IRAs and Simple IRAs

Distributions from IRAs, SEP IRAs and Simple IRAs are generally taxed as ordinary income when received. If any of the amount contributed to the Individual Retirement Annuity was nondeductible for federal income tax purposes, then a portion of each distribution is excludable from income.

If distributions of income from an IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10% is generally applicable. (For Simple IRAs, the 10% penalty is increased to 25% if the distribution is made during the 2-year period beginning on the date that the individual first participated in the Simple IRA.) The 10% penalty tax can be avoided if the distribution is:

·	made to a beneficiary on or after the death of the owner;

·	attributable to the owner becoming disabled (as defined in the Internal Revenue Code);

·	part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary;

·	used for qualified higher education expenses; or

·	used for expenses attributable to the purchase of a home for a qualified first-time buyer.

If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner’s gross estate for tax purposes.

Roth IRAs

Distributions of earnings from Roth IRAs are taxable or nontaxable depending upon whether they are "qualified distributions" or "non-qualified distributions." A "qualified distribution" is one that satisfies the five-year rule and meets one of the following requirements:

·	it is made on or after the date on which the contract owner attains age 59½;

·	it is made to a beneficiary (or the contract owner’s estate) on or after the death of the contract owner;

·	it is attributable to the contract owner’s disability; or

·	it is used for expenses attributable to the purchase of a home for a qualified first-time buyer.

The five-year rule generally is satisfied if the distribution is not made within the five year period beginning with the first taxable year in which a contribution is made to any Roth IRA established for the owner.

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A qualified distribution is not included in gross income for federal income tax purposes.

A non-qualified distribution is not includable in gross income to the extent that the distribution, when added to all previous distributions, does not exceed the total amount of contributions made to the Roth IRA. Any non-qualified distribution in excess of total contributions is includable in the contract owner’s gross income as ordinary income in the year that it is distributed to the contract owner.

Special rules apply for Roth IRAs that have proceeds received from an IRA prior to January 1, 1999 if the owner elected the special 4-year income averaging provisions that were in effect for 1998.

If non-qualified distributions of income from a Roth IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is:

·	made to a beneficiary on or after the death of the owner;

·	attributable to the owner becoming disabled (as defined in the Internal Revenue Code);

·	part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary;

·	for qualified higher education expenses; or

·	used for expenses attributable to the purchase of a home for a qualified first-time buyer.

If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner’s gross estate for tax purposes.

Tax Sheltered Annuities

Distributions from Tax Sheltered Annuities are generally taxed when received. A portion of each distribution after the annuitization date is excludable from income based on a formula established pursuant to the Internal Revenue Code. The formula excludes from income the amount invested in the contract divided by the number of anticipated payments until the full investment in the contract is recovered. Thereafter all distributions are fully taxable.

If a distribution of income is made from a Tax Sheltered Annuity prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10%. The penalty tax can be avoided if the distribution is:

·	made to a beneficiary on or after the death of the owner;

·	attributable to the owner becoming disabled (as defined in the Internal Revenue Code);

·	part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; or

·	made to the owner after separation from service with his or her employer after age 55.

A loan from a Tax Sheltered Annuity generally is not considered to be a distribution, and is therefore generally not taxable. However, if the loan is not repaid in accordance with the repayment schedule, the entire balance of the loan would be treated as being in default, and the defaulted amount would be treated as being distributed to the participant as a taxable distribution.

If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner’s gross estate for tax purposes.

Non-Qualified Contracts - Natural Persons as Contract Owners

Generally, the income earned inside a Non-Qualified Annuity Contract that is owned by a natural person is not taxable until it is distributed from the contract.

Distributions before the annuitization date are taxable to the contract owner to the extent that the cash value of the contract exceeds the contract owner’s investment in the contract at the time of the distribution. In general, the investment in the contract is equal to the purchase payment made with after-tax dollars. Distributions, for this purpose, include full and partial surrenders, any portion of the contract that is assigned or pledged, amounts borrowed from the contract, or any portion of the contract that is transferred by gift. For these purposes, a transfer by gift may occur upon annuitization if the contract owner and the annuitant are not the same individual.

With respect to annuity distributions on or after the annuitization date, a portion of each annuity payment is excludable from taxable income. The amount excludable is based on the ratio between the contract owner’s investment in the contract and the expected return on the contract. Once the entire investment in the contract is recovered, all distributions are fully includable in income. The maximum amount excludable from income is the investment in the contract. If the annuitant dies before the entire investment in the contract has been excluded from income, and as a result of the annuitant's death no more payments are due under the contract, then the unrecovered investment in the contract may be deducted on his or her final tax return.

In determining the taxable amount of a distribution, all annuity contracts issued after October 21, 1988 by the same company to the same contract owner during the same calendar year will be treated as one annuity contract.

A special rule applies to distributions from contracts that have investments that were made prior to August 14, 1982. For those contracts, distributions that are made prior to the annuitization date are treated first as a recovery of the investment in the contract as of that date. A distribution in excess of the amount of the investment in the contract as of August 14, 1982, will be treated as taxable income.

The Internal Revenue Code imposes a penalty tax if a distribution is made before the contract owner reaches age 59½. The amount of the penalty is 10% of the portion of any

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distribution that is includable in gross income. The penalty tax does not apply if the distribution is:

·	the result of a contract owner’s death;

·	the result of a contract owner’s disability, (as defined in the Internal Revenue Code);

one of a series of substantially equal periodic payments made over the life (or life expectancy) of the contract owner or the joint lives (or joint life expectancies) of the contract owner and the beneficiary selected by the contract owner to receive payment under the annuity payment option selected by the contract owner; or

·	is allocable to an investment in the contract before August 14, 1982.

If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner’s gross estate for tax purposes.

Non-Qualified Contracts - Non-Natural Persons as Contract Owners

The previous discussion related to the taxation of Non-Qualified Contracts owned by individuals. Different rules (the so-called "non-natural persons" rules) apply if the contract owner is not a natural person.

Generally, contracts owned by corporations, partnerships, trusts, and similar entities are not treated as annuity contracts under the Internal Revenue Code. Therefore, income earned under a Non-Qualified Contract that is owned by a non-natural person is taxed as ordinary income during the taxable year that it is earned. Taxation is not deferred, even if the income is not distributed out of the contract. The income is taxable as ordinary income, not capital gain.

The non-natural persons rules do not apply to all entity-owned contracts. For purposes of the rule that annuity contracts that are owned by non-natural persons are not treated as annuity contracts for tax purposes, a contract that is owned by a non-natural person as an agent of an individual is treated as owned by the individual. This would cause the contract to be treated as an annuity under the Internal Revenue Code, allowing tax deferral. However, this exception does not apply when the non-natural person is an employer that holds the contract under a non-qualified deferred compensation arrangement for one or more employees.

The non-natural persons rules also do not apply to contracts that are:

·	acquired by the estate of a decedent by reason of the death of the decedent;

·	issued in connection with certain qualified retirement plans and individual retirement plans;

·	purchased by an employer upon the termination of certain qualified retirement plans; or

·	immediate annuities within the meaning of Section 72(u) of the Internal Revenue Code.

If the annuitant dies before the contract is completely distributed, the balance may be included in the annuitant’s gross estate for tax purposes, depending on the obligations that the non-natural owner may have owed to the annuitant.

GMWB Rider. Although the tax treatment is not clear, if you purchase the GMWB rider and you take a withdrawal from your Contract before the annuitization date, we intend to treat the following amount of the withdrawal as a taxable distribution: the excess of the greater of (a) your account value immediately before the distribution or (b) your Guaranteed Lifetime Amount immediately before the distribution, over (c) the remaining investment in the Contract. In certain circumstances, this treatment with respect to the GMWB rider could result in your account value being less than your investment in the Contract after such a withdrawal. If you subsequently surrender your contract under such circumstances, you would have a loss that may be deductible. If you purchase the GMWB rider in an IRA or Tax Sheltered Annuity, additional distributions may be required to satisfy the minimum distribution requirements. Please consult your tax advisor.

Withholding

Pre-death distributions from the contracts are subject to federal income tax. Nationwide will withhold the tax from the distributions unless the contract owner requests otherwise. If the distribution is from a Tax Sheltered Annuity, it will be subject to mandatory 20% withholding that cannot be waived, unless:

·	the distribution is made directly to another Tax Sheltered Annuity, qualified pension or profit-sharing plan described in section 401(a), an eligible deferred compensation plan described in section 457(b) which is maintained by an eligible employer described in section 457(e)(1)(A) or IRA; or

·	the distribution satisfies the minimum distribution requirements imposed by the Internal Revenue Code.

In addition, under some circumstances, the Internal Revenue Code will not permit contract owners to waive withholding. Such circumstances include:

·	if the payee does not provide Nationwide with a taxpayer identification number; or

·	if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect.

If a contract owner is prohibited from waiving withholding, as described above, the distribution will be subject to mandatory back-up withholding. The mandatory back-up withholding rate is established by Section 3406 of the Internal Revenue Code and is applied against the amount of income that is distributed.

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Non-Resident Aliens

Generally, a pre-death distribution from a contract to a non-resident alien is subject to federal income tax at a rate of 30% of the amount of income that is distributed. Nationwide is required to withhold this amount and send it to the Internal Revenue Service. Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies. In order to obtain the benefits of such a treaty, the non-resident alien must:

(1)	Provide Nationwide with a properly completed withholding certificate claiming the treaty benefit of a lower tax rate or exemption from tax; and

(2)	provide Nationwide with an individual taxpayer identification number.

If the non-resident alien does not meet the above conditions, Nationwide will withhold 30% of income from the distribution.

Another exemption from the 30% withholding is for the non-resident alien to provide Nationwide with sufficient evidence that:

(1)	the distribution is connected to the non-resident alien’s conduct of business in the United States; and

(2)	the distribution is includable in the non-resident alien’s gross income for United States federal income tax purposes; and

(3)	provide Nationwide with a properly completed withholding certificate claiming the exemption.

Note that these distributions would be subject to the same withholding rules that are applicable to payments to United States persons, including back-up withholding, which is currently at a rate of 28%, if a correct taxpayer identification number is not provided.

Federal Estate, Gift and Generation Skipping Transfer Taxes

The following transfers may be considered a gift for federal gift tax purposes:

·	a transfer of the contract from one contract owner to another; or

·	a distribution to someone other than a contract owner.

Upon the contract owner’s death, the value of the contract may be subject to estate taxes, even if all or a portion of the value is also subject to federal income taxes.

Section 2612 of the Internal Revenue Code may require Nationwide to determine whether a death benefit or other distribution is a "direct skip" and the amount of the resulting generation skipping transfer tax, if any. A direct skip is when property is transferred to, or a death benefit or other distribution is made to:

a)	an individual who is two or more generations younger than the contract owner; or

b)	certain trusts, as described in Section 2613 of the Internal Revenue Code (generally, trusts that have no beneficiaries who are not 2 or more generations younger than the contract owner).

If the contract owner is not an individual, then for this purpose only, "contract owner" refers to any person:

·	who would be required to include the contract, death benefit, distribution, or other payment in his or her federal gross estate at his or her death; or

·	who is required to report the transfer of the contract, death benefit, distribution, or other payment for federal gift tax purposes.

If a transfer is a direct skip, Nationwide will deduct the amount of the transfer tax from the death benefit, distribution or other payment, and remit it directly to the Internal Revenue Service.

Charge for Tax

Nationwide is not required to maintain a capital gain reserve liability on Non-Qualified Contracts. If tax laws change requiring a reserve, Nationwide may implement and adjust a tax charge.

Diversification

Internal Revenue Code Section 817(h) contains rules on diversification requirements for variable annuity contracts. A variable annuity contract that does not meet these diversification requirements will not be treated as an annuity, unless:

·	the failure to diversify was accidental;

·	the failure is corrected; and

·	a fine is paid to the Internal Revenue Service.

The amount of the fine will be the amount of tax that would have been paid by the contract owner if the income, for the period the contract was not diversified, had been received by the contract owner.

If the violation is not corrected, the contract owner will be considered the owner of the underlying securities and will be taxed on the earnings of his or her contract. Nationwide believes that the investments underlying this contract meet these diversification requirements.

Tax Changes

The foregoing tax information is based on Nationwide’s understanding of federal tax laws. It is NOT intended as tax advice. All information is subject to change without notice. You should consult with your personal tax and/or financial adviser for more information.

In 2001, the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) was enacted. EGTRRA made numerous changes to the Internal Revenue Code, including the following:

· generally lowering federal income tax rates;

·	increasing the amounts that may be contributed to various retirement plans, such as IRAs, Tax Sheltered Annuities and Qualified Plans;

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·	increasing the portability of various retirement plans by permitting IRAs, Tax Sheltered Annuities, Qualified Plans and certain governmental 457 plans to "roll" money from one plan to another;

·	eliminating and/or reducing the highest federal estate tax rates;

increasing the estate tax credit; and

·	for persons dying after 2009, repealing the estate tax.

In 2006, the Pension Protection Act of 2006 made permanent the EGTRRA provisions noted above that increase the amounts that may be contributed to various retirement plans and that increase the portability of various retirement plans. However, all of the other changes resulting from EGTRRA are scheduled to "sunset," or become ineffective, after December 31, 2010 unless they are extended by additional legislation. If changes resulting from EGTRRA are not extended, beginning January 1, 2011, the Internal Revenue Code will be restored to its pre-EGTRRA form.

This creates uncertainty as to future tax requirements and implications. Please consult a qualified tax or financial adviser for further information relating to EGTRRA and other tax issues.

Required Distributions

Any distribution paid that is NOT due to payment of the death benefit may be subject to a CDSC.

The Internal Revenue Code requires that certain distributions be made from the contracts issued in conjunction with this prospectus. Following is an overview of the required distribution rules applicable to each type of contract. Please consult a qualified tax or financial adviser for more specific required distribution information.

Required Distributions – General Information

In general, a beneficiary is an individual or other entity that the contract owner designates to receive death proceeds upon the contract owner’s death. The distribution rules in the Internal Revenue Code make a distinction between "beneficiary" and "designated beneficiary" when determining the life expectancy that may be used for payments that are made from IRAs, SEP IRAs, Simple IRAs, Roth IRAs and Tax Sheltered Annuities after the death of the annuitant, or that are made from Non-Qualified Contracts after the death of the contract owner. A designated beneficiary is a natural person who is designated by the contract owner as the beneficiary under the contract. Non-natural beneficiaries (e.g. charities or certain trusts) are not designated beneficiaries for the purpose of required distributions and the life expectancy of such a beneficiary is zero.

Life expectancies and joint life expectancies will be determined in accordance with the relevant guidance provided by the Internal Revenue Service and the Treasury Department, including but not limited to Treasury Regulation 1.72-9 and Treasury Regulation 1.401(a)(9)-9.

Required distributions paid upon the death of the contract owner are paid to the beneficiary or beneficiaries stipulated by the contract owner. How quickly the distributions must be made may be determined with respect to the life expectancies of the beneficiaries. For Non-Qualified Contracts, the beneficiaries used in the determination of the distribution period are those in effect on the date of the contract owner’s death. For contracts other than Non-Qualified Contracts, the beneficiaries used in the determination of the distribution period do not have to be determined until December 31 of the year following the contract owner’s death. If there is more than one beneficiary, the life expectancy of the beneficiary with the shortest life expectancy is used to determine the distribution period. Any beneficiary that is not a designated beneficiary has a life expectancy of zero.

Required Distributions for Non-Qualified Contracts

Internal Revenue Code Section 72(s) requires Nationwide to make certain distributions when a contract owner dies. The following distributions will be made in accordance with the following requirements:

(1)	If any contract owner dies on or after the annuitization date and before the entire interest in the contract has been distributed, then the remaining interest must be distributed at least as rapidly as the distribution method in effect on the contract owner's death.

(2)

If any contract owner dies before the annuitization date, then the entire interest in the contract (consisting of either the death benefit or the contract value reduced by charges set forth elsewhere in the contract) will be distributed within 5 years of the contract owner’s death, provided however:

(a)

any interest payable to or for the benefit of a designated beneficiary may be distributed over the life of the designated beneficiary or over a period not longer than the life expectancy of the designated beneficiary. Payments must begin within one year of the contract owner's death unless otherwise permitted by federal income tax regulations; and

(b)	if the designated beneficiary is the surviving spouse of the deceased contract owner, the spouse can choose to become the contract owner instead of receiving a death benefit. Any distributions required under these distribution rules will be made upon that spouse’s death.

In the event that the contract owner is not a natural person (e.g., a trust or corporation), for purposes of these distribution provisions:

(a)	the death of the annuitant will be treated as the death of a contract owner;

(b)	any change of annuitant will be treated as the death of a contract owner; and

(c)	in either case, the appropriate distribution will be made upon the death or change, as the case may be.

These distribution provisions do not apply to any contract exempt from Section 72(s) of the Internal Revenue Code by reason of Section 72(s)(5) or any other law or rule.

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Required Distributions for Tax Sheltered Annuities, IRAs, SEP IRAs, Simple IRAs and Roth IRAs

Distributions from a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA must begin no later than April 1 of the calendar year following the calendar year in which the contract owner reaches age 70½. Distributions may be paid in a lump sum or in substantially equal payments over:

(a)	the life of the contract owner or the joint lives of the contract owner and the contract owner’s designated beneficiary; or

(b)

a period not longer than the period determined under the table in Treasury Regulation 1.401(a)(9)-9, which is the deemed joint life expectancy of the contract owner and a person 10 years younger than the contract owner. If the designated beneficiary is the spouse of the contract owner, the period may not exceed the longer of the period determined under such table or the joint life expectancy of the contract owner and the contract owner’s spouse, determined in accordance with Treasury Regulation 1.72-9, or such additional guidance as may be provided pursuant to Treasury Regulation 1.401(a)(9)-9.

For Tax Sheltered Annuities, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another Tax Sheltered Annuity of the contract owner.

For IRAs, SEP IRAs and Simple IRAs, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another IRA, SEP IRA or Simple IRA of the contract owner.

If the contract owner’s entire interest in a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA will be distributed in equal or substantially equal payments over a period described in (a) or (b) above, the payments must begin on or before the required beginning date. The required beginning date is April 1 of the calendar year following the calendar year in which the contract owner reaches age 70½. The rules for Roth IRAs do not require distributions to begin during the contract owner’s lifetime, therefore, the required beginning date is not applicable to Roth IRAs.

Due to recent changes in Treasury Regulations, the amount used to compute the minimum distribution requirement may exceed the contract value.

If the contract owner dies before the required beginning date (in the case of a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA) or before the entire contract value is distributed (in the case of Roth IRAs), any remaining interest in the contract must be distributed over a period not exceeding the applicable distribution period, which is determined as follows:

(a)

if the designated beneficiary is the contract owner’s spouse, the applicable distribution period is the surviving spouse’s remaining life expectancy using the surviving spouse’s birthday for each distribution calendar year after the calendar year of the contract owner’s death. For calendar years after the death of the contract owner’s surviving spouse, the applicable distribution period is the spouse’s remaining life expectancy using the spouse’s age in the calendar year of the spouse’s death, reduced by one for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse’s death;

(b)

if the designated beneficiary is not the contract owner’s surviving spouse, the applicable distribution period is the designated beneficiary’s remaining life expectancy using the designated beneficiary’s birthday in the calendar year immediately following the calendar year of the contract owner’s death, reduced by one for each calendar year that elapsed thereafter; and

(c)	if there is no designated beneficiary, the entire balance of the contract must be distributed by December 31 of the fifth year following the contract owner’s death.

If the contract owner dies on or after the required beginning date, the interest in the Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA must be distributed over a period not exceeding the applicable distribution period, which is determined as follows:

(a)

(b)

(c)	if there is no designated beneficiary, the applicable distribution period is the contract owner’s remaining life expectancy using the contract owner’s birthday in the calendar year of the contract owner’s death, reduced by one for each year thereafter.

If distribution requirements are not met, a penalty tax of 50% is levied on the difference between the amount that should have been distributed for that year and the amount that actually was distributed for that year.

For IRAs, SEP IRAs and Simple IRAs, all or a portion of each distribution will be included in the recipient’s gross income and taxed at ordinary income tax rates. The portion of a distribution that is taxable is based on the ratio between the amount by which non-deductible purchase payments exceed prior non-taxable distributions and total account balances at the time of the distribution. The owner of an IRA, SEP IRA or Simple IRA must annually report the amount of non-deductible purchase payments, the amount of any distribution, the amount by which non-deductible purchase payments for all years exceed non-taxable distributions for all years, and the total balance of all IRAs, SEP IRAs or Simple IRAs.

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Distributions from Roth IRAs may be either taxable or non-taxable, depending upon whether they are "qualified distributions" or "non-qualified distributions."

As noted above, if you purchase the GMWB, additional distributions may be required to satisfy the minimum distribution requirements. Please consult your tax advisor.

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STATEMENT OF ADDITIONAL INFORMATION

May 1, 2007, as amended September 4, 2007

Individual Flexible Premium Deferred Variable Annuity Contracts

Issued by Nationwide Life Insurance Company

through its Nationwide Variable Account-II

This Statement of Additional Information is not a prospectus. It contains information in addition to and more detailed than set forth in the prospectus and should be read in conjunction with the prospectus dated May 1, 2007, as amended September 4, 2007. The prospectus may be obtained from Nationwide Life Insurance Company by writing 5100 Rings Road, RR1-04-F4, Dublin, Ohio 43017-1522, or calling 1- 800-848-6331, TDD 1-800-238-3035.

Table of Contents of Statement of Additional Information	Page
General Information and History	1
Services	1
Purchase of Securities Being Offered	2
Underwriters	2
Advertising Annuity Payments	2 2
Condensed Financial Information	3
Financial Statements	4

General Information and History

The Nationwide Variable Account-II is a separate investment account of Nationwide Life Insurance Company ("Nationwide"). Nationwide is a member of the Nationwide group of companies. All of Nationwide's common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. NFS has two classes of common stock outstanding with different voting rights enabling Nationwide Corporation (the holder of all of the outstanding Class B Common Stock) to control NFS. Nationwide Corporation is a holding company, as well. All of its common stock is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), the ultimate controlling persons of the Nationwide group of companies. The Nationwide group of companies is one of America's largest insurance and financial services family of companies, with combined assets of over $160 billion as of December 31, 2006.

Services

Nationwide, which has responsibility for administration of the contracts and the variable account, maintains records of the name, address, taxpayer identification number, and other pertinent information for each contract owner and the number and type of contract issued to each contract owner and records with respect to the contract value.

The custodian of the assets of the variable account is Nationwide. Nationwide will maintain a record of all purchases and redemptions of shares of the underlying mutual funds. Nationwide, or its affiliates, may have entered into agreements with the underlying mutual funds and/or their affiliates. The agreements relate to services furnished by Nationwide or an affiliate of Nationwide. Some of the services provided include distribution of underlying fund prospectuses, semi-annual and annual fund reports, proxy materials and fund communications, as well as maintaining the websites and voice response systems necessary for contract owners to execute trades in the funds. Nationwide also acts as a limited agent for the fund for purposes of accepting the trades.

See “Underlying Mutual Fund Payments” located in the prospectus.

Distribution, Promotional, and Sales Expenses

In addition to or partially in lieu of commission, Nationwide may pay the selling firms a marketing allowance, which is based on the firm’s ability and demonstrated willingness to promote and market Nationwide's products. How any marketing allowance is spent is determined by the firm, but generally will be used to finance firm activities, such as training and education, that may contribute to the promotion and marketing of Nationwide's products. Nationwide makes certain assumptions about the amount of marketing allowance it will pay and takes these assumptions into consideration when it determines the charges that will be assessed under the contracts. For the contracts described in the prospectus, Nationwide assumed 0.50% (of the daily net assets of the variable account) for marketing allowance when determining the charges for the contracts. The actual amount of the marketing allowance may be higher or lower than this assumption. If the actual amount of marketing allowance paid is more than what was assumed, Nationwide will fund the difference. Nationwide generally does not profit from any excess marketing allowance if the amount assumed was higher than what is actually paid. Any excess would be spent on additional marketing for the contracts. For more information about marketing allowance or how a particular selling firm uses marketing allowances, please consult with your registered representative.

Independent Registered Public Accounting Firm

The financial statements of Nationwide Variable Account-II and the consolidated financial statements and schedules of Nationwide Life Insurance Company and subsidiaries for the periods indicated have been included herein in reliance upon the reports of KPMG LLP, independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing. The audit report of KPMG LLP covering the December 31, 2006 consolidated financial statements and schedules of Nationwide Life Insurance Company and subsidiaries contains an explanatory paragraph that states that Nationwide Life Insurance Company and subsidiaries adopted the American Institute of Certified Public Accountants' Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, in 2004. KPMG LLP is located at 191 West Nationwide Blvd., Columbus, Ohio 43215.

Purchase of Securities Being Offered

The contracts will be sold by licensed insurance agents in the states where the contracts may be lawfully sold. Such agents will be registered representatives of broker-dealers registered under the Securities Exchange Act of 1934 who are members of the National Association of Securities Dealers, Inc. ("NASD").

Underwriters

The contracts, which are offered continuously, are distributed by Nationwide Investment Services Corporation ("NISC"), One Nationwide Plaza, Columbus, Ohio 43215, a wholly owned subsidiary of Nationwide. For contracts issued in Michigan, all references to NISC will mean Nationwide Investment Svcs. Corporation. During the fiscal years ended December 31, 2006, 2005 and 2004, no underwriting commissions were paid by Nationwide to NISC.

Advertising

Money Market Yields

Nationwide may advertise the "yield" and "effective yield" for the money market sub-account. Yield and effective yield are annualized, which means that it is assumed that the underlying mutual fund generates the same level of net income throughout a year.

Yield is a measure of the net dividend and interest income earned over a specific seven-day period (which period will be stated in the advertisement) expressed as a percentage of the offering price of the underlying mutual fund’s units. The effective yield is calculated similarly, but reflects assumed compounding, calculated under rules prescribed by the SEC. Thus, effective yield will be slightly higher than yield, due to the compounding.

Historical Performance of the Sub-Accounts

Nationwide will advertise historical performance of the sub-accounts in accordance with SEC prescribed calculations. Performance information is annualized. However, if a sub-account has been available in the variable account for less than one year, the performance information for that sub-account is not annualized.

Performance information is based on historical earnings and is not intended to predict or project future results.

Standardized performance will reflect the maximum variable account charges possible under the contract, the Contract Maintenance Charge, and the standard CDSC schedule. Non-standardized performance, which will be accompanied by standardized performance, will reflect other expense structures contemplated under the contract. The expense assumptions will be stated in the advertisement.

Additional Materials

Nationwide may provide information on various topics to contract owners and prospective contract owners in advertising, sales literature or other materials.

Performance Comparisons

Each sub-account may, from time to time, include in advertisements the ranking of its performance figures compared with performance figures of other annuity contracts’ sub-accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services.

Annuity Payments

See "Frequency and Amount of Annuity Payments" located in the prospectus.

Condensed Financial Information

The following charts represent the accumulation unit value for all classes of accumulation units for all asset fees for contracts issued as of December 31, 2006. The term "Period" is defined as a complete calendar year, unless otherwise noted. Those Periods with an asterisk (*) reflect accumulation unit information for a partial year only. The value of an accumulation unit is determined on the basis of changes in the per share value of the underlying mutual funds and variable account charges which may vary from contract to contract (for more information on the calculation of accumulation unit values, see "Determining Variable Account Value – Valuing an Accumulation Unit" in the prospectus).

The Nationwide Varible Insurance Trust – American Funds NVIT Growth-Income Fund: Class II and the Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA Class 4 were added to the variable account on May 1, 2007. Therefore, no Condensed Financial Information is available.

No Additional Contract Options Elected (Total 1.10%)

(Variable account charges of 1.10% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	16.121654	18.008250	11.70%	21,554	2006
	15.461220	16.121654	4.27%	26,970	2005
	14.104409	15.461220	9.62%	20,050	2004
	10.000000	14.104409	41.04%	4,118	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	15.131831	15.872465	4.89%	3,126	2006
	14.090901	15.131831	7.39%	3,484	2005
	13.399083	14.090901	5.16%	1,111	2004
	10.000000	13.399083	33.99%	921	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.250867	19.835218	14.98%	526	2006
	15.963051	17.250867	8.07%	888	2005
	14.002502	15.963051	14.00%	293	2004
	10.000000	14.002502	40.03%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.616196	18.068051	15.70%	3,151	2006
	15.095601	15.616196	3.45%	3,227	2005
	13.723460	15.095601	10.00%	3,224	2004
	10.000000	13.723460	37.23%	3,260	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.421522	20.806891	12.95%	657	2006
	17.467525	18.421522	5.46%	1,606	2005
	14.832559	17.467525	17.76%	1,642	2004
	10.000000	14.832559	48.33%	1,783	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.539655	17.953290	15.53%	501	2006
	15.032935	15.539655	3.37%	1,582	2005
	13.502299	15.032935	11.34%	1,611	2004
	10.000000	13.502299	35.02%	1,651	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.529711	20.393455	23.37%	920	2006
	14.776380	16.529711	11.87%	920	2005
	13.017408	14.776380	13.51%	920	2004
	10.000000	13.017408	30.17%	294	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.600633	15.561102	23.49%	7,002	2006
	11.277333	12.600633	11.73%	7,325	2005
	10.000000	11.277333	12.77%	7,446	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.224346	13.346510	18.91%	352	2006
	10.000000	11.224346	12.24%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.419326	13.777894	-4.45%	3,110	2006
	14.296943	14.419326	0.86%	3,625	2005
	13.071680	14.296943	9.37%	1,837	2004
	10.000000	13.071680	30.72%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.957012	18.695900	17.16%	19,894	2006
	15.387060	15.957012	3.70%	16,075	2005
	13.626702	15.387060	12.92%	4,332	2004
	10.000000	13.626702	36.27%	209	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.372115	12.245589	7.68%	1,682	2006
	10.000000	11.372115	13.72%	2,253	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.979055	11.030976	0.47%	14,114	2006
	10.930030	10.979055	0.45%	16,169	2005
	10.444683	10.930030	4.65%	15,287	2004
	10.000000	10.444683	4.45%	832	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.672793	21.129368	13.16%	2,350	2006
	17.606381	18.672793	6.06%	2,239	2005
	14.605712	17.606381	20.54%	1,807	2004
	10.000000	14.605712	46.06%	185	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	15.039960	17.136860	13.94%	22,688	2006
	14.561180	15.039960	3.29%	26,773	2005
	13.341925	14.561180	9.14%	26,421	2004
	10.000000	13.341925	33.42%	4,947	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.565076	15.590731	14.93%	7,393	2006
	13.173109	13.565076	2.98%	3,819	2005
	12.710009	13.173109	3.64%	108	2004
	10.000000	12.710009	27.10%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.851757	16.229855	2.39%	213	2006
	15.183919	15.851757	4.40%	1,270	2005
	13.825682	15.183919	9.82%	1,265	2004
	10.000000	13.825682	38.26%	1,277	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.988096	17.267291	15.21%	0	2006
	14.463546	14.988096	3.63%	0	2005
	13.355494	14.463546	8.30%	0	2004
	10.000000	13.355494	33.55%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.853123	15.863461	14.51%	1,226	2006
	13.773279	13.853123	0.58%	1,226	2005
	13.002047	13.773279	5.93%	12,805	2004
	10.000000	13.002047	30.02%	12,805	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.288678	2.89%	22,682	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.493513	10.785198	2.78%	7,008	2006
	10.506201	10.493513	-0.12%	6,462	2005
	10.281720	10.506201	2.18%	3,270	2004
	10.000000	10.281720	2.82%	1,846	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.800778	18.741842	18.61%	33,162	2006
	15.133052	15.800778	4.41%	27,230	2005
	13.756075	15.133052	10.01%	23,737	2004
	10.000000	13.756075	37.56%	9,363	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.790877	15.590075	5.40%	17,192	2006
	14.174945	14.790877	4.35%	15,335	2005
	13.898624	14.174945	1.99%	8,407	2004
	10.000000	13.898624	38.99%	1,320	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.545720	22.766986	16.48%	5,601	2006
	16.637511	19.545720	17.48%	5,601	2005
	14.845971	16.637511	12.07%	5,601	2004
	10.000000	14.845971	48.46%	6,418	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.978724	15.122895	16.52%	14,012	2006
	11.051431	12.978724	17.44%	5,612	2005
	10.000000	11.051431	10.51%	1,463	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.624727	19.424104	10.21%	60,377	2006
	15.277018	17.624727	15.37%	38,945	2005
	13.413518	15.277018	13.89%	17,486	2004
	10.000000	13.413518	34.14%	4,983	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.737599	11.059086	2.99%	70,235	2006
	10.654803	10.737599	0.78%	17,679	2005
	10.340078	10.654803	3.04%	15,380	2004
	10.000000	10.340078	3.40%	3,143	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.703535	23.016109	11.17%	29,861	2006
	17.737527	20.703535	16.72%	28,655	2005
	14.387342	17.737527	23.29%	8,377	2004
	10.000000	14.387342	43.87%	3,189	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	19.044673	21.851015	14.74%	1,307	2006
	18.799692	19.044673	1.30%	1,708	2005
	16.697903	18.799692	12.59%	1,082	2004
	10.000000	16.697903	66.98%	257	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.415794	15.473302	15.34%	16,073	2006
	10.000000	13.415794	34.16%	4,052	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.717270	11.615174	8.38%	95	2006
	10.000000	10.717270	7.17%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.024609	12.179941	10.48%	1,540	2006
	10.000000	11.024609	10.25%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.233204	12.545895	11.69%	3,510	2006
	10.000000	11.233204	12.33%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.134394	11.34%	31,263	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.849802	17.201726	15.84%	40,009	2006
	14.517102	14.849802	2.29%	44,082	2005
	13.224078	14.517102	9.78%	52,017	2004
	10.000000	13.224078	32.24%	37,020	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	19.029112	22.016280	15.70%	13,859	2006
	17.689369	19.029112	7.57%	8,261	2005
	14.453810	17.689369	22.39%	3,686	2004
	10.000000	14.453810	44.54%	3,006	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.710877	16.112460	26.76%	8,476	2006
	10.000000	12.710877	27.11%	612	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.642320	21.190748	20.11%	2,438	2006
	16.191498	17.642320	8.96%	3,581	2005
	13.812306	16.191498	17.23%	3,583	2004
	10.000000	13.812306	38.12%	1,952	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.570228	15.100494	20.13%	53,819	2006
	11.540306	12.570228	8.92%	24,155	2005
	10.000000	11.540306	15.40%	11,082	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.808955	10.947294	11.61%	9,999	2006
	10.000000	9.808955	-1.91%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.196803	14.533502	10.13%	638	2006
	12.393718	13.196803	6.48%	638	2005
	11.571878	12.393718	7.10%	638	2004
	10.000000	11.571878	15.72%	306	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.247597	17.534277	7.92%	431	2006
	14.595144	16.247597	11.32%	0	2005
	12.509690	14.595144	16.67%	0	2004
	10.000000	12.509690	25.10%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	22.134977	32.177003	45.37%	243	2006
	16.962545	22.134977	30.49%	243	2005
	14.450810	16.962545	17.38%	243	2004
	10.000000	14.450810	44.51%	243	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.901554	21.681066	45.50%	14,931	2006
	11.412704	14.901554	30.57%	6,827	2005
	10.000000	11.412704	14.13%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.562268	17.073499	9.71%	0	2006
	14.186773	15.562268	9.70%	0	2005
	12.211795	14.186773	16.17%	0	2004
	10.000000	12.211795	22.12%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	10.098682	10.407571	3.06%	92,068	2006
	10.065425	10.098682	0.33%	31,790	2005
	10.098688	10.065425	-0.33%	63,215	2004
	10.000000	10.098688	0.99%	61,188	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	14.075133	14.937561	6.13%	8,628	2006
	13.654122	14.075133	3.08%	8,815	2005
	12.667783	13.654122	7.79%	8,882	2004
	10.000000	12.667783	26.68%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.736161	18.754956	19.18%	45,796	2006
	14.944258	15.736161	5.30%	45,464	2005
	13.159513	14.944258	13.56%	27,823	2004
	10.000000	13.159513	31.60%	23,829	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.321410	15.949196	4.10%	5,880	2006
	15.055133	15.321410	1.77%	4,282	2005
	13.606535	15.055133	10.65%	980	2004
	10.000000	13.606535	36.07%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.664494	14.118218	21.04%	56,213	2006
	10.000000	11.664494	16.64%	6,279	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.252914	18.400660	13.21%	852	2006
	14.488218	16.252914	12.18%	1,573	2005
	12.625031	14.488218	14.76%	1,431	2004
	10.000000	12.625031	26.25%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.576871	12.701932	9.72%	27,293	2006
	10.000000	11.576871	15.77%	23,484	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.544288	16.355839	12.46%	89,314	2006
	13.761919	14.544288	5.69%	32,051	2005
	12.283735	13.761919	12.03%	20,277	2004
	10.000000	12.283735	22.84%	666	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.479861	4.80%	384,029	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.461879	4.62%	9,104	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.762882	7.63%	803	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.288678	2.89%	22,682	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.201393	14.441001	9.39%	3,224	2006
	13.037478	13.201393	1.26%	3,999	2005
	11.973549	13.037478	8.89%	4,022	2004
	10.000000	11.973549	19.74%	2,714	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.463797	11.445881	9.39%	7,225	2006
	10.000000	10.463797	4.64%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	26.120428	35.215525	34.82%	693	2006
	19.957658	26.120428	30.88%	891	2005
	16.755328	19.957658	19.11%	891	2004
	10.000000	16.755328	67.55%	751	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.424087	20.831525	35.06%	5,106	2006
	11.770979	15.424087	31.03%	2,949	2005
	10.000000	11.770979	17.71%	453	2004*



NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.466543	16.772102	1.86%	5,183	2006
	15.453764	16.466543	6.55%	6,107	2005
	13.807417	15.453764	11.92%	233	2004
	10.000000	13.807417	38.07%	133	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.752129	22.875380	15.81%	2,164	2006
	19.430784	19.752129	1.65%	2,322	2005
	16.792703	19.430784	15.71%	1,254	2004
	10.000000	16.792703	67.93%	656	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	19.155829	21.172191	10.53%	16,698	2006
	17.292150	19.155829	10.78%	8,254	2005
	14.719529	17.292150	17.48%	2,750	2004
	10.000000	14.719529	47.20%	2,171	2003*

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.713478	22.225449	18.77%	0	2006
	17.078846	18.713478	9.57%	0	2005
	14.299711	17.078846	19.43%	0	2004
	10.000000	14.299711	43.00%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.821140	16.028418	1.31%	425	2006
	14.786001	15.821140	7.00%	430	2005
	13.898986	14.786001	6.38%	437	2004
	10.000000	13.898986	38.99%	129	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.567491	10.704223	1.29%	5,849	2006
	9.871783	10.567491	7.05%	2,049	2005
	10.000000	9.871783	-1.28%	920	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.499874	16.966606	9.46%	0	2006
	15.794218	15.499874	-1.86%	0	2005
	15.350846	15.794218	2.89%	0	2004
	10.000000	15.350846	53.51%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.680479	11.746181	9.98%	1,329	2006
	10.883303	10.680479	-1.86%	2,436	2005
	10.000000	10.883303	8.83%	0	2004*




NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.800555	22.818904	35.82%	0	2006
	15.997064	16.800555	5.02%	0	2005
	12.484794	15.997064	28.13%	0	2004
	10.000000	12.484794	24.85%	0	2003*

NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.536208	10.768811	2.21%	66,320	2006
	10.316390	10.536208	2.13%	11,953	2005
	10.101596	10.316390	2.13%	29,189	2004
	10.000000	10.101596	1.02%	29,652	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.405523	11.975721	5.00%	4,021	2006
	11.162893	11.405523	2.17%	713	2005
	10.785282	11.162893	3.50%	0	2004
	10.000000	10.785282	7.85%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.599352	13.510710	7.23%	26,299	2006
	12.192168	12.599352	3.34%	3,383	2005
	11.504189	12.192168	5.98%	2,771	2004
	10.000000	11.504189	15.04%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.853264	15.256798	10.13%	265,465	2006
	13.296334	13.853264	4.19%	114,589	2005
	12.273782	13.296334	8.33%	79,555	2004
	10.000000	12.273782	22.74%	20,804	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.395352	17.440498	13.28%	232,920	2006
	14.537959	15.395352	5.90%	40,692	2005
	13.113799	14.537959	10.86%	19,796	2004
	10.000000	13.113799	31.14%	2,550	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.597078	19.183932	15.59%	13,016	2006
	15.547974	16.597078	6.75%	11,350	2005
	13.787066	15.547974	12.77%	6,424	2004
	10.000000	13.787066	37.87%	564	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.574610	16.889451	8.44%	30,853	2006
	14.368057	15.574610	8.40%	3,565	2005
	12.609627	14.368057	13.95%	646	2004
	10.000000	12.609627	26.10%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	10.077171	10.418140	3.38%	46,584	2006
	9.924162	10.077171	1.54%	24,026	2005
	9.953779	9.924162	-0.30%	13,010	2004
	10.000000	9.953779	-0.46%	10,361	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	15.123212	16.961723	12.16%	47,799	2006
	14.285289	15.123212	5.87%	2,090	2005
	13.186947	14.285289	8.33%	205	2004
	10.000000	13.186947	31.87%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.364508	18.071301	-1.60%	1,040	2006
	16.623387	18.364508	10.47%	1,127	2005
	14.994126	16.623387	10.87%	1,158	2004
	10.000000	14.994126	49.94%	528	2003*


NVIT NVIT International Value Fund: Class II – Q/NQ	18.105903	21.918912	21.06%	0	2006
	16.376550	18.105903	10.56%	0	2005
	13.798956	16.376550	18.68%	0	2004
	10.000000	13.798956	37.99%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.719484	15.398652	21.06%	39,625	2006
	11.503101	12.719484	10.57%	12,974	2005
	10.000000	11.503101	15.03%	4,050	2004*



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.882719	8.83%	0	2006*




NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.247257	19.831814	8.68%	6,979	2006
	16.458347	18.247257	10.87%	4,083	2005
	14.379240	16.458347	14.46%	1,858	2004
	10.000000	14.379240	43.79%	842	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.286496	18.614172	14.29%	47,395	2006
	15.841193	16.286496	2.81%	10,308	2005
	13.680090	15.841193	15.80%	1,120	2004
	10.000000	13.680090	36.80%	703	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.671822	12.102286	3.69%	13,238	2006
	11.549482	11.671822	1.06%	1,402	2005
	10.961709	11.549482	5.36%	1,334	2004
	10.000000	10.961709	9.62%	546	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.984169	15.958182	6.50%	13,582	2006
	14.447854	14.984169	3.71%	14,348	2005
	13.702040	14.447854	5.44%	7,649	2004
	10.000000	13.702040	37.02%	3,174	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	13.036321	15.136640	16.11%	24,141	2006
	11.557400	13.036321	12.80%	17,122	2005
	10.000000	11.557400	15.57%	3,719	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	20.149605	23.388893	16.08%	2,351	2006
	17.861702	20.149605	12.81%	2,461	2005
	15.192273	17.861702	17.57%	2,462	2004
	10.000000	15.192273	51.92%	2,966	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.177474	14.235338	8.03%	4,624	2006
	13.061731	13.177474	0.89%	4,859	2005
	12.146399	13.061731	7.54%	4,201	2004
	10.000000	12.146399	21.46%	1,543	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.856255	16.861761	13.50%	61,433	2006
	14.205526	14.856255	4.58%	12,271	2005
	13.159987	14.205526	7.94%	4,658	2004
	10.000000	13.159987	31.60%	4,183	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.398617	21.998076	13.40%	17,254	2006
	17.877033	19.398617	8.51%	8,239	2005
	15.166871	17.877033	17.87%	612	2004
	10.000000	15.166871	51.67%	271	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	14.105782	16.170786	14.64%	3,599	2006
	13.553612	14.105782	4.07%	3,716	2005
	12.333845	13.553612	9.89%	3,922	2004
	10.000000	12.333845	23.34%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.200999	20.464841	26.32%	0	2006
	14.599835	16.200999	10.97%	0	2005
	12.704650	14.599835	14.92%	0	2004
	10.000000	12.704650	27.05%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.777055	13.323774	4.28%	0	2006
	12.222941	12.777055	4.53%	1,136	2005
	11.766703	12.222941	3.88%	1,136	2004
	10.000000	11.766703	17.67%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.232333	12.145470	8.13%	5,878	2006
	10.000000	11.232333	12.32%	2,306	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.559194	12.390825	17.35%	14,741	2006
	10.000000	10.559194	5.59%	3,876	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.053763	10.343754	2.88%	1,590	2006
	10.000000	10.053763	0.54%	1,516	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.729318	10.989490	2.42%	47,086	2006
	10.437713	10.729318	2.79%	6,577	2005
	10.140764	10.437713	2.93%	1,983	2004

	10.000000	10.140764	1.41%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.256568	16.719355	9.59%	1,845	2006
	13.756350	15.256568	10.91%	1,846	2005
	12.635778	13.756350	8.87%	1,846	2004
	10.000000	12.635778	26.36%	1,581	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	21.079545	28.701615	36.16%	18,095	2006
	18.255340	21.079545	15.47%	16,724	2005
	13.565135	18.255340	34.58%	12,229	2004
	10.000000	13.565135	35.65%	3,202	2003*

Additional Contract Options Elected (Total 1.20%)

(Variable account charges of 1.20% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	16.074868	17.937872	11.59%	8,773	2006
	15.431909	16.074868	4.17%	8,389	2005
	14.091927	15.431909	9.51%	8,760	2004
	10.000000	14.091927	40.92%	1,573	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	15.087933	15.810452	4.79%	233	2006
	14.064190	15.087933	7.28%	257	2005
	13.387221	14.064190	5.06%	283	2004
	10.000000	13.387221	33.87%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.200838	19.757753	14.87%	68	2006
	15.932803	17.200838	7.96%	68	2005
	13.990115	15.932803	13.89%	68	2004
	10.000000	13.990115	39.90%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.570906	17.997486	15.58%	5,357	2006
	15.067009	15.570906	3.34%	5,561	2005
	13.711325	15.067009	9.89%	5,623	2004
	10.000000	13.711325	37.11%	3,827	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.368095	20.725646	12.84%	626	2006
	17.434437	18.368095	5.36%	626	2005
	14.819444	17.434437	17.65%	626	2004
	10.000000	14.819444	48.19%	626	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.494591	17.883176	15.42%	1,849	2006
	15.004455	15.494591	3.27%	2,287	2005
	13.490350	15.004455	11.22%	2,424	2004
	10.000000	13.490350	34.90%	1,771	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.481776	20.313817	23.25%	1,244	2006
	14.748385	16.481776	11.75%	1,713	2005
	13.005889	14.748385	13.40%	1,954	2004
	10.000000	13.005889	30.06%	1,465	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.579521	15.519375	23.37%	821	2006
	11.269799	12.579521	11.62%	899	2005
	10.000000	11.269799	12.70%	971	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.216822	13.324130	18.79%	50	2006
	10.000000	11.216822	12.17%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.377501	13.724076	-4.54%	3,702	2006
	14.269853	14.377501	0.75%	3,830	2005
	13.060108	14.269853	9.26%	3,830	2004
	10.000000	13.060108	30.60%	1,007	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.910745	18.622925	17.05%	1,992	2006
	15.357920	15.910745	3.60%	2,446	2005
	13.614656	15.357920	12.80%	2,465	2004
	10.000000	13.614656	36.15%	996	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.364504	12.225053	7.57%	0	2006
	10.000000	11.364504	13.65%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.945819	10.986494	0.37%	15,764	2006
	10.907940	10.945819	0.35%	3,617	2005
	10.434125	10.907940	4.54%	4,148	2004
	10.000000	10.434125	4.34%	1,887	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.618656	21.046862	13.04%	3,871	2006
	17.573046	18.618656	5.95%	3,614	2005
	14.592805	17.573046	20.42%	3,984	2004
	10.000000	14.592805	45.93%	1,321	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.996310	17.069902	13.83%	18,002	2006
	14.533569	14.996310	3.18%	24,051	2005
	13.330105	14.533569	9.03%	31,480	2004
	10.000000	13.330105	33.30%	22,234	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.525726	15.529840	14.82%	0	2006
	13.148143	13.525726	2.87%	1,564	2005
	12.698757	13.148143	3.54%	1,564	2004
	10.000000	12.698757	26.99%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.805759	16.166439	2.28%	0	2006
	15.155134	15.805759	4.29%	0	2005
	13.813438	15.155134	9.71%	0	2004
	10.000000	13.813438	38.13%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.944597	17.199826	15.09%	0	2006
	14.436118	14.944597	3.52%	0	2005
	13.343664	14.436118	8.19%	0	2004
	10.000000	13.343664	33.44%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.812923	15.801489	14.40%	2,609	2006
	13.747175	13.812923	0.48%	2,610	2005
	12.990541	13.747175	5.82%	3,071	2004
	10.000000	12.990541	29.91%	2,467	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.281776	2.82%	2,308	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.463035	10.743033	2.68%	9,415	2006
	10.486264	10.463035	-0.22%	21,538	2005
	10.272600	10.486264	2.08%	22,256	2004
	10.000000	10.272600	2.73%	1,979	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.754926	18.668629	18.49%	22,022	2006
	15.104372	15.754926	4.31%	25,978	2005
	13.743899	15.104372	9.90%	26,699	2004
	10.000000	13.743899	37.44%	5,395	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.747947	15.529142	5.30%	1,330	2006
	14.148065	14.747947	4.24%	1,957	2005
	13.886317	14.148065	1.88%	2,224	2004
	10.000000	13.886317	38.86%	1,192	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.489011	22.678043	16.36%	0	2006
	16.605978	19.489011	17.36%	407	2005
	14.832831	16.605978	11.95%	806	2004
	10.000000	14.832831	48.33%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.956992	15.082348	16.40%	1,513	2006
	11.044053	12.956992	17.32%	1,309	2005
	10.000000	11.044053	10.44%	1,309	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.573612	19.348249	10.10%	23,656	2006
	15.248068	17.573612	15.25%	23,035	2005
	13.401652	15.248068	13.78%	30,343	2004
	10.000000	13.401652	34.02%	7,480	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.706419	11.015859	2.89%	12,627	2006
	10.634597	10.706419	0.68%	7,933	2005
	10.330906	10.634597	2.94%	9,276	2004
	10.000000	10.330906	3.31%	4,465	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.643486	22.926207	11.06%	9,305	2006
	17.703910	20.643486	16.60%	9,505	2005
	14.374599	17.703910	23.16%	7,747	2004
	10.000000	14.374599	43.75%	2,500	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.989456	21.765698	14.62%	0	2006
	18.764100	18.989456	1.20%	0	2005
	16.683150	18.764100	12.47%	416	2004
	10.000000	16.683150	66.83%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.710099	11.595694	8.27%	0	2006
	10.000000	10.710099	7.10%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.406812	15.447351	15.22%	15	2006
	10.000000	13.406812	34.07%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.017218	12.159504	10.37%	0	2006
	10.000000	11.017218	10.17%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.225674	12.524857	11.57%	0	2006
	10.000000	11.225674	12.26%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.126930	11.27%	4,245	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.806697	17.134516	15.72%	24,576	2006
	14.489579	14.806697	2.19%	26,751	2005
	13.212364	14.489579	9.67%	27,147	2004
	10.000000	13.212364	32.12%	9,985	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.973937	21.930319	15.58%	3,730	2006
	17.655876	18.973937	7.47%	3,740	2005
	14.441030	17.655876	22.26%	3,954	2004
	10.000000	14.441030	44.41%	1,300	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.702367	16.085441	26.63%	1,175	2006
	10.000000	12.702367	27.02%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.591141	21.107969	19.99%	2,799	2006
	16.160808	17.591141	8.85%	2,842	2005
	13.800080	16.160808	17.11%	4,519	2004
	10.000000	13.800080	38.00%	1,242	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.549148	15.059966	20.01%	9,080	2006
	11.532585	12.549148	8.81%	6,456	2005
	10.000000	11.532585	15.33%	6,002	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.802369	10.928918	11.49%	0	2006
	10.000000	9.802369	-1.98%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.158497	14.476717	10.02%	2,181	2006
	12.370213	13.158497	6.37%	2,438	2005
	11.561625	12.370213	6.99%	2,727	2004
	10.000000	11.561625	15.62%	2,654	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.200447	17.465771	7.81%	0	2006
	14.567470	16.200447	11.21%	1,124	2005
	12.498611	14.567470	16.55%	1,083	2004
	10.000000	12.498611	24.99%	622	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	22.070823	32.051420	45.22%	0	2006
	16.930425	22.070823	30.36%	0	2005
	14.438026	16.930425	17.26%	0	2004
	10.000000	14.438026	44.38%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.876594	21.622945	45.35%	482	2006
	11.405069	14.876594	30.44%	0	2005
	10.000000	11.405069	14.05%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.520392	17.010398	9.60%	0	2006
	14.162874	15.520392	9.59%	0	2005
	12.203564	14.162874	16.06%	0	2004
	10.000000	12.203564	22.04%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	10.069364	10.366905	2.95%	13,865	2006
	10.046330	10.069364	0.23%	10,172	2005
	10.089733	10.046330	-0.43%	9,975	2004
	10.000000	10.089733	0.90%	3,170	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	14.034299	14.879198	6.02%	7,145	2006
	13.628250	14.034299	2.98%	9,223	2005
	12.656577	13.628250	7.68%	9,297	2004
	10.000000	12.656577	26.57%	853	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.690487	18.681680	19.06%	2,519	2006
	14.915932	15.690487	5.19%	2,449	2005
	13.147859	14.915932	13.45%	2,449	2004
	10.000000	13.147859	31.48%	2,449	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.276960	15.886884	3.99%	305	2006
	15.026604	15.276960	1.67%	305	2005
	13.594498	15.026604	10.53%	170	2004
	10.000000	13.594498	35.94%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.656683	14.094548	20.91%	3,931	2006
	10.000000	11.656683	16.57%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.203737	18.326488	13.10%	0	2006
	14.458948	16.203737	12.07%	488	2005
	12.612281	14.458948	14.64%	508	2004
	10.000000	12.612281	26.12%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.569116	12.680621	9.61%	51	2006
	10.000000	11.569116	15.69%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.505135	16.295356	12.34%	3,864	2006
	13.738722	14.505135	5.58%	0	2005
	12.275440	13.738722	11.92%	0	2004
	10.000000	12.275440	22.75%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.472825	4.73%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.454871	4.55%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.755666	7.56%	528	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.281776	2.82%	2,308	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.163079	14.384580	9.28%	8,999	2006
	13.012765	13.163079	1.16%	8,999	2005
	11.962949	13.012765	8.78%	8,999	2004
	10.000000	11.962949	19.63%	2,141	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.456788	11.426670	9.28%	96	2006
	10.000000	10.456788	4.57%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	26.044730	35.078093	34.68%	0	2006
	19.919874	26.044730	30.75%	343	2005
	16.740520	19.919874	18.99%	357	2004
	10.000000	16.740520	67.41%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.398240	20.775660	34.92%	936	2006
	11.763108	15.398240	30.90%	1,022	2005
	10.000000	11.763108	17.63%	286	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.751800	22.729761	35.69%	0	2006
	15.966741	16.751800	4.92%	0	2005
	12.473733	15.966741	28.00%	1,809	2004
	10.000000	12.473733	24.74%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.418778	16.706566	1.75%	0	2006
	15.424477	16.418778	6.45%	0	2005
	13.795194	15.424477	11.81%	0	2004
	10.000000	13.795194	37.95%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.694843	22.786047	15.70%	1,033	2006
	19.393973	19.694843	1.55%	1,056	2005
	16.777850	19.393973	15.59%	832	2004
	10.000000	16.777850	67.78%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	19.100268	21.089496	10.41%	4,492	2006
	17.259386	19.100268	10.67%	3,871	2005
	14.706505	17.259386	17.36%	4,013	2004
	10.000000	14.706505	47.07%	1,954	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.659208	22.138659	18.65%	3,184	2006
	17.046502	18.659208	9.46%	3,184	2005
	14.287069	17.046502	19.31%	3,184	2004
	10.000000	14.287069	42.87%	2,066	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.775240	15.965798	1.21%	0	2006
	14.757971	15.775240	6.89%	0	2005
	13.886673	14.757971	6.27%	1,608	2004
	10.000000	13.886673	38.87%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.549776	10.675497	1.19%	82	2006
	9.865175	10.549776	6.94%	0	2005
	10.000000	9.865175	-1.35%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.454909	16.900330	9.35%	0	2006
	15.764292	15.454909	-1.96%	0	2005
	15.337264	15.764292	2.78%	1,446	2004
	10.000000	15.337264	53.37%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.662574	11.714670	9.87%	74	2006
	10.876027	10.662574	-1.96%	0	2005
	10.000000	10.876027	8.76%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.505601	10.726699	2.10%	12,868	2006
	10.296809	10.505601	2.03%	8,660	2005
	10.092638	10.296809	2.02%	8,739	2004
	10.000000	10.092638	0.93%	8,173	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.372421	11.928932	4.89%	22,898	2006
	11.141723	11.372421	2.07%	22,901	2005
	10.775717	11.141723	3.40%	786	2004
	10.000000	10.775717	7.76%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.562793	13.457921	7.13%	13,580	2006
	12.169053	12.562793	3.24%	13,580	2005
	11.494000	12.169053	5.87%	21,668	2004
	10.000000	11.494000	14.94%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.813063	15.197195	10.02%	111,396	2006
	13.271126	13.813063	4.08%	103,584	2005
	12.262915	13.271126	8.22%	105,918	2004
	10.000000	12.262915	22.63%	12,322	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.350677	17.372340	13.17%	253,388	2006
	14.510401	15.350677	5.79%	185,956	2005
	13.102185	14.510401	10.75%	178,869	2004
	10.000000	13.102185	31.02%	12,057	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.548918	19.108979	15.47%	19,278	2006
	15.518501	16.548918	6.64%	15,874	2005
	13.774861	15.518501	12.66%	15,876	2004
	10.000000	13.774861	37.75%	5,903	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.532691	16.826995	8.33%	6,128	2006
	14.343839	15.532691	8.29%	1,902	2005
	12.601114	14.343839	13.83%	1,961	2004
	10.000000	12.601114	26.01%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	10.047528	10.377018	3.28%	148	2006
	9.904956	10.047528	1.44%	0	2005
	9.944570	9.904956	-0.40%	603	2004
	10.000000	9.944570	-0.55%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	15.079335	16.895459	12.04%	4,045	2006
	14.258215	15.079335	5.76%	935	2005
	13.175277	14.258215	8.22%	969	2004
	10.000000	13.175277	31.75%	1,006	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.311227	18.000696	-1.70%	0	2006
	16.591891	18.311227	10.36%	0	2005
	14.980858	16.591891	10.75%	0	2004
	10.000000	14.980858	49.81%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.875421	8.75%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	18.057204	21.837936	20.94%	0	2006
	16.348977	18.057204	10.45%	0	2005
	13.789651	16.348977	18.56%	0	2004
	10.000000	13.789651	37.90%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.698168	15.357349	20.94%	5,342	2006
	11.495414	12.698168	10.46%	2,131	2005
	10.000000	11.495414	14.95%	982	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.194346	19.754376	8.57%	8,143	2006
	16.427171	18.194346	10.76%	6,930	2005
	14.366514	16.427171	14.34%	7,309	2004
	10.000000	14.366514	43.67%	2,017	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.239258	18.541471	14.18%	3,380	2006
	15.811184	16.239258	2.71%	1,015	2005
	13.667984	15.811184	15.68%	518	2004
	10.000000	13.667984	36.68%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.637929	12.054973	3.58%	0	2006
	11.527579	11.637929	0.96%	0	2005
	10.951999	11.527579	5.26%	0	2004
	10.000000	10.951999	9.52%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.940719	15.895861	6.39%	10,519	2006
	14.420488	14.940719	3.61%	9,268	2005
	13.689923	14.420488	5.34%	10,811	2004
	10.000000	13.689923	36.90%	3,155	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	13.014465	15.096033	15.99%	7,245	2006
	11.549668	13.014465	12.68%	6,336	2005
	10.000000	11.549668	15.50%	4,765	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	20.091157	23.297535	15.96%	4,550	2006
	17.827859	20.091157	12.70%	4,770	2005
	15.178824	17.827859	17.45%	4,821	2004
	10.000000	15.178824	51.79%	3,563	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.139239	14.179737	7.92%	6,806	2006
	13.036977	13.139239	0.78%	7,402	2005
	12.135648	13.036977	7.43%	7,873	2004
	10.000000	12.135648	21.36%	3,486	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.813153	16.795897	13.39%	10,719	2006
	14.178599	14.813153	4.48%	3,574	2005
	13.148341	14.178599	7.84%	3,813	2004
	10.000000	13.148341	31.48%	1,427	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.342382	21.912191	13.29%	1,155	2006
	17.843189	19.342382	8.40%	477	2005
	15.153463	17.843189	17.75%	478	2004
	10.000000	15.153463	51.53%	146	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	14.067815	16.111000	14.52%	0	2006
	13.530767	14.067815	3.97%	0	2005
	12.325519	13.530767	9.78%	0	2004
	10.000000	12.325519	23.26%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.157393	20.389196	26.19%	0	2006
	14.575235	16.157393	10.86%	0	2005
	12.696070	14.575235	14.80%	0	2004
	10.000000	12.696070	26.96%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.742679	13.274532	4.17%	0	2006
	12.202348	12.742679	4.43%	0	2005
	11.758764	12.202348	3.77%	1,151	2004
	10.000000	11.758764	17.59%	644	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.224814	12.125101	8.02%	0	2006
	10.000000	11.224814	12.25%	0	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.552113	12.370032	17.23%	0	2006
	10.000000	10.552113	5.52%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.047022	10.326397	2.78%	106	2006
	10.000000	10.047022	0.47%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.700418	10.948841	2.32%	6,753	2006
	10.420103	10.700418	2.69%	882	2005
	10.133903	10.420103	2.82%	688	2004

	10.000000	10.133903	1.34%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.210393	16.651946	9.48%	0	2006
	13.728556	15.210393	10.79%	0	2005
	12.623009	13.728556	8.76%	0	2004
	10.000000	12.623009	26.23%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	21.015804	28.586004	36.02%	2,133	2006
	18.218499	21.015804	15.35%	2,324	2005
	13.551445	18.218499	34.44%	2,572	2004
	10.000000	13.551445	35.51%	1,241	2003*

Additional Contract Options Elected (Total 1.25%)

(Variable account charges of 1.25% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	16.051510	17.902778	11.53%	12,480	2006
	15.417269	16.051510	4.11%	10,154	2005
	14.085680	15.417269	9.45%	9,114	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	15.066022	15.779518	4.74%	0	2006
	14.050854	15.066022	7.22%	0	2005
	13.381288	14.050854	5.00%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.175844	19.719076	14.81%	7,515	2006
	15.917685	17.175844	7.90%	488	2005
	13.983912	15.917685	13.83%	334	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.548302	17.962295	15.53%	0	2006
	15.052725	15.548302	3.29%	0	2005
	13.705252	15.052725	9.83%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.341435	20.685110	12.78%	0	2006
	17.417912	18.341435	5.30%	0	2005
	14.812882	17.417912	17.59%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.472068	17.848184	15.36%	0	2006
	14.990212	15.472068	3.21%	0	2005
	13.484369	14.990212	11.17%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.457830	20.274075	23.19%	0	2006
	14.734389	16.457830	11.70%	0	2005
	13.000128	14.734389	13.34%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.568969	15.498527	23.31%	2,709	2006
	11.266025	12.568969	11.57%	2,709	2005
	10.000000	11.266025	12.66%	2,330	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.213063	13.312954	18.73%	13,763	2006
	10.000000	11.213063	12.13%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.356634	13.697230	-4.59%	2,913	2006
	14.256328	14.356634	0.70%	2,898	2005
	13.054328	14.256328	9.21%	2,918	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.887628	18.586472	16.99%	16,140	2006
	15.343342	15.887628	3.55%	8,690	2005
	13.608621	15.343342	12.75%	528	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.360689	12.214779	7.52%	493	2006
	10.000000	11.360689	13.61%	493	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.929220	10.964296	0.32%	20,724	2006
	10.896901	10.929220	0.30%	6,411	2005
	10.428842	10.896901	4.49%	5,913	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.591598	21.005675	12.98%	541	2006
	17.556363	18.591598	5.90%	303	2005
	14.586335	17.556363	20.36%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.974545	17.036532	13.77%	9,922	2006
	14.519795	14.974545	3.13%	1,225	2005
	13.324207	14.519795	8.97%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.506071	15.499446	14.76%	5,150	2006
	13.135669	13.506071	2.82%	644	2005
	12.693121	13.135669	3.49%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.782822	16.134823	2.23%	0	2006
	15.140778	15.782822	4.24%	0	2005
	13.807334	15.140778	9.66%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.922889	17.166181	15.03%	0	2006
	14.422425	14.922889	3.47%	0	2005
	13.337753	14.422425	8.13%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.792857	15.770575	14.34%	0	2006
	13.734130	13.792857	0.43%	0	2005
	12.984783	13.734130	5.77%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.278312	2.78%	58,174	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.447837	10.722007	2.62%	8,905	2006
	10.476314	10.447837	-0.27%	3,263	2005
	10.268046	10.476314	2.03%	287	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.732068	18.632135	18.43%	13,202	2006
	15.090059	15.732068	4.25%	6,596	2005
	13.737819	15.090059	9.84%	4,118	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.726525	15.498745	5.24%	2,613	2006
	14.134644	14.726525	4.19%	2,690	2005
	13.880172	14.134644	1.83%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.460718	22.633693	16.30%	0	2006
	16.590238	19.460718	17.30%	0	2005
	14.826272	16.590238	11.90%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.946101	15.062075	16.34%	6,745	2006
	11.040339	12.946101	17.26%	5,095	2005
	10.000000	11.040339	10.40%	4,506	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.548084	19.310395	10.04%	64,005	2006
	15.233609	17.548084	15.19%	29,327	2005
	13.395716	15.233609	13.72%	14,202	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.690860	10.994286	2.84%	54,805	2006
	10.624499	10.690860	0.62%	10,072	2005
	10.326328	10.624499	2.89%	3,181	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.613534	22.881386	11.00%	13,121	2006
	17.687147	20.613534	16.55%	10,139	2005
	14.368243	17.687147	23.10%	4,423	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.961867	21.723116	14.56%	2,068	2006
	18.746295	18.961867	1.15%	2,131	2005
	16.675759	18.746295	12.42%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.402323	15.434380	15.16%	8,666	2006
	10.000000	13.402323	34.02%	2,181	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.706491	11.585934	8.21%	899	2006
	10.000000	10.706491	7.06%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.013523	12.149289	10.31%	1,977	2006
	10.000000	11.013523	10.14%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.221906	12.514327	11.52%	0	2006
	10.000000	11.221906	12.22%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.123200	11.23%	15,543	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.785234	17.101050	15.66%	5,298	2006
	14.475864	14.785234	2.14%	4,465	2005
	13.206529	14.475864	9.61%	976	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.946391	21.887430	15.52%	10,886	2006
	17.639138	18.946391	7.41%	2,295	2005
	14.434639	17.639138	22.20%	1,718	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.698125	16.071961	26.57%	5,318	2006
	10.000000	12.698125	26.98%	487	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.565594	21.066692	19.93%	0	2006
	16.145493	17.565594	8.80%	0	2005
	13.793976	16.145493	17.05%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.538624	15.039750	19.95%	42,575	2006
	11.528731	12.538624	8.76%	14,235	2005
	10.000000	11.528731	15.29%	12,858	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.799086	10.919750	11.44%	19,433	2006
	10.000000	9.799086	-2.01%	501	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.139386	14.448401	9.96%	0	2006
	12.358479	13.139386	6.32%	0	2005
	11.556502	12.358479	6.94%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.176919	17.431602	7.76%	0	2006
	14.553654	16.176919	11.15%	0	2005
	12.493074	14.553654	16.49%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	22.038767	31.988725	45.15%	0	2006
	16.914366	22.038767	30.30%	0	2005
	14.431628	16.914366	17.20%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.864113	21.593898	45.28%	5,376	2006
	11.401257	14.864113	30.37%	0	2005
	10.000000	11.401257	14.01%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.499490	16.978913	9.54%	0	2006
	14.150937	15.499490	9.53%	0	2005
	12.199437	14.150937	16.00%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	10.054736	10.346619	2.90%	48,858	2006
	10.036805	10.054736	0.18%	16,552	2005
	10.085267	10.036805	-0.48%	15,036	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	14.013917	14.850087	5.97%	1,162	2006
	13.615317	14.013917	2.93%	1,163	2005
	12.650967	13.615317	7.62%	956	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.667692	18.645132	19.00%	2,617	2006
	14.901771	15.667692	5.14%	0	2005
	13.142033	14.901771	13.39%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.254782	15.855812	3.94%	5,587	2006
	15.012368	15.254782	1.61%	1,113	2005
	13.588485	15.012368	10.48%	1,113	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.652777	14.082703	20.85%	35,110	2006
	10.000000	11.652777	16.53%	3,779	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.179205	18.289499	13.04%	0	2006
	14.444346	16.179205	12.01%	0	2005
	12.605911	14.444346	14.58%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.565237	12.669977	9.55%	11,793	2006
	10.000000	11.565237	15.65%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.485598	16.265200	12.29%	35,310	2006
	13.727148	14.485598	5.53%	2,268	2005
	12.271291	13.727148	11.86%	4,272	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.469308	4.69%	64,059	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.451366	4.51%	23,181	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.752059	7.52%	58,717	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.278312	2.78%	58,174	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.143946	14.356419	9.22%	8,096	2006
	13.000404	13.143946	1.10%	8,206	2005
	11.957633	13.000404	8.72%	6,301	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.453271	11.417078	9.22%	237	2006
	10.000000	10.453271	4.53%	31	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	26.006933	35.009514	34.62%	0	2006
	19.900995	26.006933	30.68%	0	2005
	16.733125	19.900995	18.93%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.385337	20.747777	34.85%	1,812	2006
	11.759167	15.385337	30.84%	1,747	2005
	10.000000	11.759167	17.59%	89	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.727465	22.685309	35.62%	0	2006
	15.951604	16.727465	4.86%	0	2005
	12.468206	15.951604	27.94%	0	2004


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.871766	8.72%	2,321	2006*




NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.394915	16.673865	1.70%	2,901	2006
	15.409829	16.394915	6.39%	771	2005
	13.789075	15.409829	11.75%	848	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.666249	22.741481	15.64%	1,622	2006
	19.375585	19.666249	1.50%	1,332	2005
	16.770427	19.375585	15.53%	253	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	19.072534	21.048246	10.36%	12,188	2006
	17.243018	19.072534	10.61%	3,004	2005
	14.699991	17.243018	17.30%	964	2004


NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.632103	22.095330	18.59%	0	2006
	17.030331	18.632103	9.41%	0	2005
	14.280735	17.030331	19.25%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.752304	15.934534	1.16%	0	2006
	14.743956	15.752304	6.84%	0	2005
	13.880513	14.743956	6.22%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.540929	10.661158	1.14%	2,077	2006
	9.861876	10.540929	6.89%	0	2005
	10.000000	9.861876	-1.38%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.432446	16.867247	9.30%	0	2006
	15.749339	15.432446	-2.01%	0	2005
	15.330481	15.749339	2.73%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.653637	11.698941	9.81%	2,153	2006
	10.872389	10.653637	-2.01%	2,153	2005
	10.000000	10.872389	8.72%	0	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.490339	10.705704	2.05%	38,807	2006
	10.287039	10.490339	1.98%	3,453	2005
	10.088161	10.287039	1.97%	3,282	2004



NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.355896	11.905582	4.84%	4,915	2006
	11.131149	11.355896	2.02%	0	2005
	10.770944	11.131149	3.34%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.544538	13.431593	7.07%	8,003	2006
	12.157509	12.544538	3.18%	6,466	2005
	11.488900	12.157509	5.82%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.792985	15.167450	9.96%	123,746	2006
	13.258532	13.792985	4.03%	93,071	2005
	12.257476	13.258532	8.17%	9,852	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.328374	17.338348	13.11%	90,342	2006
	14.496628	15.328374	5.74%	26,083	2005
	13.096373	14.496628	10.69%	0	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.524893	19.071621	15.41%	3,687	2006
	15.503787	16.524893	6.59%	2,873	2005
	13.768764	15.503787	12.60%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.511752	16.795833	8.28%	23,217	2006
	14.331734	15.511752	8.23%	2,733	2005
	12.596855	14.331734	13.77%	0	2004



NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	10.032727	10.356504	3.23%	11,658	2006
	9.895360	10.032727	1.39%	0	2005
	9.939966	9.895360	-0.45%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	15.057436	16.862404	11.99%	27,090	2006
	14.244700	15.057436	5.71%	77	2005
	13.169445	14.244700	8.16%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.284643	17.965491	-1.75%	109	2006
	16.576159	18.284643	10.31%	0	2005
	14.974233	16.576159	10.70%	0	2004



NVIT NVIT International Value Fund: Class II – Q/NQ	18.032864	21.797487	20.88%	0	2006
	16.335191	18.032864	10.39%	0	2005
	13.784997	16.335191	18.50%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.687509	15.336721	20.88%	18,727	2006
	11.491561	12.687509	10.41%	5,349	2005
	10.000000	11.491561	14.92%	2,262	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.167905	19.715712	8.52%	3,107	2006
	16.411579	18.167905	10.70%	152	2005
	14.360150	16.411579	14.29%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.215677	18.505212	14.12%	34,359	2006
	15.796192	16.215677	2.66%	5,782	2005
	13.661931	15.796192	15.62%	4,857	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.621015	12.031384	3.53%	23,104	2006
	11.516635	11.621015	0.91%	3,736	2005
	10.947135	11.516635	5.20%	3,379	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.918999	15.864737	6.34%	10,138	2006
	14.406804	14.918999	3.56%	10,138	2005
	13.683857	14.406804	5.28%	8,095	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	13.003547	15.075751	15.94%	36,077	2006
	11.545805	13.003547	12.63%	13,694	2005
	10.000000	11.545805	15.46%	2,209	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	20.061994	23.251982	15.90%	0	2006
	17.810972	20.061994	12.64%	0	2005
	15.172123	17.810972	17.39%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.120155	14.151995	7.86%	2,894	2006
	13.024605	13.120155	0.73%	328	2005
	12.130260	13.024605	7.37%	0	2004

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.791636	16.763040	13.33%	33,179	2006
	14.165148	14.791636	4.42%	1,516	2005
	13.142514	14.165148	7.78%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.314296	21.869330	13.23%	6,427	2006
	17.826274	19.314296	8.35%	825	2005
	15.146754	17.826274	17.69%	147	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	14.048844	16.081163	14.47%	0	2006
	13.519348	14.048844	3.92%	0	2005
	12.321351	13.519348	9.72%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.135628	20.351449	26.13%	0	2006
	14.562944	16.135628	10.80%	0	2005
	12.691782	14.562944	14.74%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.725497	13.249928	4.12%	0	2006
	12.192050	12.725497	4.38%	0	2005
	11.754791	12.192050	3.72%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.221044	12.114909	7.97%	7,392	2006
	10.000000	11.221044	12.21%	646	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.548574	12.359645	17.17%	41,653	2006
	10.000000	10.548574	5.49%	3,338	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.043651	10.317721	2.73%	8,280	2006
	10.000000	10.043651	0.44%	65	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.685986	10.928553	2.27%	40,949	2006
	10.411305	10.685986	2.64%	13,378	2005
	10.130478	10.411305	2.77%	1,845	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.187336	16.618318	9.42%	0	2006
	13.714668	15.187336	10.74%	0	2005
	12.616630	13.714668	8.70%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.983981	28.528336	35.95%	8,639	2006
	18.200086	20.983981	15.30%	5,538	2005
	13.544596	18.200086	34.37%	3,064	2004

Additional Contract Options Elected (Total 1.30%)

(Variable account charges of 1.30% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	14.748718	16.441425	11.48%	7,039	2006
	14.173103	14.748718	4.06%	7,039	2005
	12.955540	14.173103	9.40%	7,040	2004
	9.847563	12.955540	31.56%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	13.579757	14.215689	4.68%	0	2006
	12.671134	13.579757	7.17%	0	2005
	12.073432	12.671134	4.95%	0	2004
	9.468999	12.073432	27.50%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.138219	18.518460	14.75%	2,447	2006
	14.963618	16.138219	7.85%	2,494	2005
	13.152417	14.963618	13.77%	2,645	2004
	9.867552	13.152417	33.29%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	14.463663	16.700831	15.47%	9,653	2006
	14.009736	14.463663	3.24%	12,905	2005
	12.762087	14.009736	9.78%	12,845	2004
	9.781830	12.762087	30.47%	9,689	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.662779	19.909680	12.72%	4,219	2006
	16.781895	17.662779	5.25%	0	2005
	14.279214	16.781895	17.53%	0	2004
	10.268227	14.279214	39.06%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	14.341273	16.535366	15.30%	0	2006
	13.901651	14.341273	3.16%	0	2005
	12.511484	13.901651	11.11%	0	2004
	9.812040	12.511484	27.51%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	15.063742	18.547350	23.13%	406	2006
	13.493103	15.063742	11.64%	898	2005
	11.910971	13.493103	13.28%	899	2004
	9.703604	11.910971	22.75%	759	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.558427	15.477711	23.25%	1,628	2006
	11.262256	12.558427	11.51%	1,628	2005
	10.000000	11.262256	12.62%	1,628	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.209308	13.301764	18.67%	0	2006
	10.000000	11.209308	12.09%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	12.839681	12.243763	-4.64%	146	2006
	12.756421	12.839681	0.65%	146	2005
	11.686811	12.756421	9.15%	146	2004
	9.487958	11.686811	23.18%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	14.876558	17.394871	16.93%	8,757	2006
	14.374161	14.876558	3.50%	8,827	2005
	12.755471	14.374161	12.69%	4,020	2004
	10.032787	12.755471	27.14%	1,675	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.356881	12.204526	7.46%	0	2006
	10.000000	11.356881	13.57%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.912644	10.942140	0.27%	5,904	2006
	10.885870	10.912644	0.25%	5,471	2005
	10.423563	10.885870	4.44%	5,387	2004
	10.000000	10.423563	4.24%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	13.174239	14.877364	12.93%	3,546	2006
	12.446927	13.174239	5.84%	3,546	2005
	10.346504	12.446927	20.30%	3,893	2004
	7.608241	10.346504	35.99%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	13.720176	15.601559	13.71%	14,773	2006
	13.310244	13.720176	3.08%	15,561	2005
	12.220432	13.310244	8.92%	16,981	2004
	9.668759	12.220432	26.39%	4,293	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	12.272357	14.076541	14.70%	5,546	2006
	11.941818	12.272357	2.77%	9,610	2005
	11.545348	11.941818	3.43%	9,451	2004
	9.680995	11.545348	19.26%	2,061	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	14.614713	14.933118	2.18%	0	2006
	14.027267	14.614713	4.19%	0	2005
	12.798373	14.027267	9.60%	0	2004
	9.871733	12.798373	29.65%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.181128	16.304672	14.97%	0	2006
	13.712454	14.181128	3.42%	0	2005
	12.687593	13.712454	8.08%	0	2004
	10.096371	12.687593	25.66%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	12.723424	14.540458	14.28%	0	2006
	12.675650	12.723424	0.38%	0	2005
	11.990118	12.675650	5.72%	0	2004
	9.806426	11.990118	22.27%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.274872	2.75%	558	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.745289	11.021700	2.57%	0	2006
	10.780020	10.745289	-0.32%	0	2005
	10.571070	10.780020	1.98%	0	2004
	10.255017	10.571070	3.08%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	14.536795	17.207839	18.37%	18,738	2006
	13.950611	14.536795	4.20%	17,405	2005
	12.706921	13.950611	9.79%	15,818	2004
	9.901010	12.706921	28.34%	5,236	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	13.156847	13.839777	5.19%	2,937	2006
	12.634427	13.156847	4.13%	2,950	2005
	12.413245	12.634427	1.78%	2,963	2004
	9.488827	12.413245	30.82%	225	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	18.181518	21.135251	16.25%	0	2006
	15.507540	18.181518	17.24%	0	2005
	13.865700	15.507540	11.84%	0	2004
	9.821337	13.865700	41.18%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.935248	15.041844	16.29%	8,354	2006
	11.036651	12.935248	17.20%	8,798	2005
	10.000000	11.036651	10.37%	9,639	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	16.295177	17.922614	9.99%	34,987	2006
	14.153094	16.295177	15.14%	29,717	2005
	12.451863	14.153094	13.66%	27,127	2004
	9.840966	12.451863	26.53%	16,679	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.936801	11.241547	2.79%	8,593	2006
	10.874412	10.936801	0.57%	5,540	2005
	10.574572	10.874412	2.84%	4,638	2004
	10.209238	10.574572	3.58%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	19.798013	21.965041	10.95%	16,990	2006
	16.995970	19.798013	16.49%	17,496	2005
	13.813758	16.995970	23.04%	15,468	2004
	10.123242	13.813758	36.46%	7,665	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	17.077400	19.554352	14.50%	819	2006
	16.891777	17.077400	1.10%	928	2005
	15.033681	16.891777	12.36%	1,584	2004
	9.679145	15.033681	55.32%	1,290	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.397838	15.421426	15.10%	293	2006
	10.000000	13.397838	33.98%	293	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.702911	11.576214	8.16%	0	2006
	10.000000	10.702911	7.03%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.009831	12.139095	10.26%	0	2006
	10.000000	11.009831	10.10%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.218152	12.503823	11.46%	0	2006
	10.000000	11.218152	12.18%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.119465	11.19%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	13.771163	15.920098	15.60%	24,827	2006
	13.489822	13.771163	2.09%	30,854	2005
	12.313180	13.489822	9.56%	28,141	2004
	10.013325	12.313180	22.97%	14,459	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	17.602739	20.324935	15.46%	11,306	2006
	16.396455	17.602739	7.36%	10,626	2005
	13.424512	16.396455	22.14%	9,127	2004
	10.294188	13.424512	30.41%	5,257	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.693852	16.058441	26.51%	0	2006
	10.000000	12.693852	26.94%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	16.520861	19.803722	19.87%	895	2006
	15.192889	16.520861	8.74%	895	2005
	12.986690	15.192889	16.99%	1,015	2004
	9.951836	12.986690	30.50%	373	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.528108	15.019561	19.89%	4,210	2006
	11.524879	12.528108	8.70%	661	2005
	10.000000	11.524879	15.25%	681	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.795784	10.910552	11.38%	285	2006
	10.000000	9.795784	-2.04%	286	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.565239	13.810075	9.91%	0	2006
	11.824420	12.565239	6.27%	0	2005
	11.062699	11.824420	6.89%	0	2004
	9.855934	11.062699	12.24%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	7.728765	8.324005	7.70%	0	2006
	6.956739	7.728765	11.10%	0	2005
	5.974796	6.956739	16.43%	0	2004
	5.034738	5.974796	18.67%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	8.842730	12.828527	45.07%	0	2006
	6.790064	8.842730	30.23%	0	2005
	5.796339	6.790064	17.14%	0	2004
	4.365171	5.796339	32.79%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	15.693805	22.787733	45.20%	447	2006
	12.043732	15.693805	30.31%	381	2005
	10.279042	12.043732	17.17%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.478600	16.947469	9.49%	0	2006
	14.139002	15.478600	9.47%	0	2005
	12.195325	14.139002	15.94%	0	2004
	10.000000	12.195325	21.95%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	21.626126	22.242677	2.85%	1,307	2006
	21.598449	21.626126	0.13%	76	2005
	21.713731	21.598449	-0.53%	76	2004
	21.479034	21.713731	1.09%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	12.526928	13.267666	5.91%	1,758	2006
	12.176780	12.526928	2.88%	6,949	2005
	11.320043	12.176780	7.57%	6,861	2004
	9.354501	11.320043	21.01%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	14.467296	17.207931	18.94%	3,111	2006
	13.767014	14.467296	5.09%	0	2005
	12.147415	13.767014	13.33%	0	2004
	9.869025	12.147415	23.09%	0	2003*


Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.648871	14.070885	20.79%	3,193	2006
	10.000000	11.648871	16.49%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	13.933135	14.474772	3.89%	4,657	2006
	13.718625	13.933135	1.56%	4,657	2005
	12.423729	13.718625	10.42%	4,657	2004
	10.064686	12.423729	23.44%	0	2003*



Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.561364	12.659329	9.50%	0	2006
	10.000000	11.561364	15.61%	0	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.154667	18.252541	12.99%	696	2006
	14.429730	16.154667	11.95%	775	2005
	12.599532	14.429730	14.53%	789	2004
	10.000000	12.599532	26.00%	0	2003*



Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.466052	16.235057	12.23%	3,640	2006
	13.715555	14.466052	5.47%	0	2005
	12.267143	13.715555	11.81%	0	2004
	10.000000	12.267143	22.67%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.465796	4.66%	10,721	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.447849	4.48%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.748441	7.48%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.274872	2.75%	558	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.622705	14.871846	9.17%	196	2006
	13.480743	13.622705	1.05%	197	2005
	12.405721	13.480743	8.67%	197	2004
	10.279592	12.405721	20.68%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.449767	11.407487	9.16%	0	2006
	10.000000	10.449767	4.50%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	24.881631	33.477761	34.55%	0	2006
	19.049500	24.881631	30.62%	0	2005
	16.025282	19.049500	18.87%	0	2004
	9.860071	16.025282	62.53%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.372422	20.719891	34.79%	0	2006
	11.755232	15.372422	30.77%	0	2005
	10.000000	11.755232	17.55%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.703146	22.640888	35.55%	0	2006
	15.936458	16.703146	4.81%	0	2005
	12.462663	15.936458	27.87%	0	2004
	10.000000	12.462663	24.63%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	15.140488	15.390318	1.65%	0	2006
	14.237962	15.140488	6.34%	0	2005
	12.746909	14.237962	11.70%	0	2004
	9.633382	12.746909	32.32%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	18.258013	21.102377	15.58%	0	2006
	17.997246	18.258013	1.45%	0	2005
	15.585302	17.997246	15.48%	1,292	2004
	10.093088	15.585302	54.42%	1,224	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	17.912423	19.757971	10.30%	10,506	2006
	16.202371	17.912423	10.55%	10,566	2005
	13.819816	16.202371	17.24%	13,647	2004
	9.957641	13.819816	38.79%	9,434	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.605015	22.052089	18.53%	0	2006
	17.014163	18.605015	9.35%	0	2005
	14.274400	17.014163	19.19%	0	2004
	10.000000	14.274400	42.74%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.729413	15.903349	1.11%	0	2006
	14.729970	15.729413	6.79%	0	2005
	13.874377	14.729970	6.17%	339	2004
	10.000000	13.874377	38.74%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.532071	10.646808	1.09%	601	2006
	9.858571	10.532071	6.83%	540	2005
	10.000000	9.858571	-1.41%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.410021	16.834226	9.24%	0	2006
	15.734400	15.410021	-2.06%	0	2005
	15.323692	15.734400	2.68%	0	2004
	10.000000	15.323692	53.24%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.644696	11.683209	9.76%	0	2006
	10.868748	10.644696	-2.06%	0	2005
	10.000000	10.868748	8.69%	0	2004*




GVIT Gartmore GVIT Government Bond Fund: Class I – NQ	45.646904	46.560513	2.00%	604	2006
	44.784890	45.646904	1.92%	0	2005
	43.941314	44.784890	1.92%	0	2004
	43.647039	43.941314	0.67%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

GVIT Gartmore GVIT Government Bond Fund: Class I – Q	45.767774	46.683808	2.00%	63	2006
	44.903489	45.767774	1.92%	0	2005
	44.057681	44.903489	1.92%	0	2004
	43.762624	44.057681	0.67%	0	2003*


NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.137379	11.670602	4.79%	2,251	2006
	10.922479	11.137379	1.97%	3,788	2005
	10.574381	10.922479	3.29%	0	2004
	9.928642	10.574381	6.50%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.660102	12.478314	7.02%	5,327	2006
	11.306072	11.660102	3.13%	3,345	2005
	10.689699	11.306072	5.77%	2,520	2004
	9.525559	10.689699	12.22%	1,021	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	12.027221	13.219043	9.91%	51,394	2006
	11.567029	12.027221	3.98%	25,613	2005
	10.699107	11.567029	8.11%	23,534	2004
	9.029424	10.699107	18.49%	15,958	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	12.543415	14.181041	13.06%	24,545	2006
	11.868786	12.543415	5.68%	8,055	2005
	10.727781	11.868786	10.64%	6,115	2004
	8.582311	10.727781	25.00%	1,061	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	12.843911	14.815857	15.35%	12,274	2006
	12.056354	12.843911	6.53%	1,948	2005
	10.712555	12.056354	12.54%	0	2004
	8.230619	10.712555	30.15%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.490827	16.764699	8.22%	2,211	2006
	14.319629	15.490827	8.18%	626	2005
	12.592593	14.319629	13.71%	917	2004
	10.000000	12.592593	25.93%	0	2003*


NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	26.467505	27.307869	3.18%	139	2006
	26.118303	26.467505	1.34%	0	2005
	26.249330	26.118303	-0.50%	0	2004
	26.429711	26.249330	-0.68%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	13.815048	15.463284	11.93%	4,051	2006
	13.075974	13.815048	5.65%	734	2005
	12.095064	13.075974	8.11%	734	2004
	9.631161	12.095064	25.58%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.258085	17.930337	-1.80%	0	2006
	16.560441	18.258085	10.25%	0	2005
	14.967605	16.560441	10.64%	0	2004
	10.000000	14.967605	49.68%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.868126	8.68%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	18.008566	21.757132	20.82%	0	2006
	16.321407	18.008566	10.34%	0	2005
	13.780335	16.321407	18.44%	0	2004
	10.000000	13.780335	37.80%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.676866	15.316120	20.82%	7,013	2006
	11.487724	12.676866	10.35%	5,661	2005
	10.000000	11.487724	14.88%	6,326	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	14.260369	15.467452	8.46%	9,929	2006
	12.888304	14.260369	10.65%	10,618	2005
	11.282992	12.888304	14.23%	10,954	2004
	8.489668	11.282992	32.90%	4,916	2003*

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.192125	18.469006	14.06%	8,019	2006
	15.781205	16.192125	2.60%	5,854	2005
	13.655878	15.781205	15.56%	5,919	2004
	10.000000	13.655878	36.56%	1,071	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	13.282416	13.744499	3.48%	1,097	2006
	13.169765	13.282416	0.86%	1,136	2005
	12.524864	13.169765	5.15%	1,136	2004
	11.318419	12.524864	10.66%	927	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	13.270639	14.104762	6.29%	6,476	2006
	12.821504	13.270639	3.50%	6,955	2005
	12.184274	12.821504	5.23%	9,530	2004
	9.445866	12.184274	28.99%	727	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.992657	15.055531	15.88%	11,723	2006
	11.541948	12.992657	12.57%	11,723	2005
	10.000000	11.541948	15.42%	12,106	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	18.052172	20.912021	15.84%	12,520	2006
	16.034748	18.052172	12.58%	12,526	2005
	13.665977	16.034748	17.33%	12,530	2004
	9.691813	13.665977	41.01%	8,126	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.560670	14.619771	7.81%	0	2006
	13.468722	13.560670	0.68%	0	2005
	12.550232	13.468722	7.32%	387	2004
	10.271522	12.550232	22.18%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	13.624187	15.432190	13.27%	6,679	2006
	13.053733	13.624187	4.37%	3,249	2005
	12.117465	13.053733	7.73%	3,233	2004
	9.709898	12.117465	24.79%	1,966	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	17.687066	20.016715	13.17%	752	2006
	16.332647	17.687066	8.29%	123	2005
	13.884675	16.332647	17.63%	123	2004
	9.752555	13.884675	42.37%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	14.029907	16.051376	14.41%	0	2006
	13.507943	14.029907	3.86%	0	2005
	12.317191	13.507943	9.67%	0	2004
	10.000000	12.317191	23.17%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.113855	20.313744	26.06%	0	2006
	14.550645	16.113855	10.74%	0	2005
	12.687488	14.550645	14.68%	0	2004
	10.000000	12.687488	26.87%	0	2003*

Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.708328	13.225376	4.07%	0	2006
	12.181758	12.708328	4.32%	0	2005
	11.750819	12.181758	3.67%	0	2004
	10.000000	11.750819	17.51%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.217284	12.104732	7.91%	0	2006
	10.000000	11.217284	12.17%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.545036	12.349272	17.11%	814	2006
	10.000000	10.545036	5.45%	815	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.040276	10.309047	2.68%	0	2006
	10.000000	10.040276	0.40%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.671566	10.908291	2.22%	10,485	2006
	10.402509	10.671566	2.59%	0	2005
	10.127043	10.402509	2.72%	0	2004
	10.000000	10.127043	1.27%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.164315	16.584745	9.37%	0	2006
	13.700788	15.164315	10.68%	0	2005
	12.610241	13.700788	8.65%	0	2004
	10.000000	12.610241	26.10%	0	2003*


The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.952141	28.470679	35.88%	3,320	2006
	18.181654	20.952141	15.24%	515	2005
	13.537734	18.181654	34.30%	1,783	2004
	10.000000	13.537734	35.38%	0	2003*

Additional Contract Options Elected (Total 1.40%)

(Variable account charges of 1.40% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.981598	17.797806	11.36%	4,358	2006
	15.373394	15.981598	3.96%	6,573	2005
	14.066959	15.373394	9.29%	6,885	2004
	10.000000	14.066959	40.67%	3,236	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	15.000380	15.686972	4.58%	5,137	2006
	14.010856	15.000380	7.06%	5,137	2005
	13.363490	14.010856	4.84%	5,137	2004
	10.000000	13.363490	33.63%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.101020	19.603447	14.63%	0	2006
	15.872381	17.101020	7.74%	0	2005
	13.965326	15.872381	13.66%	0	2004
	10.000000	13.965326	39.65%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.480541	17.856937	15.35%	3,730	2006
	15.009864	15.480541	3.14%	3,835	2005
	13.687020	15.009864	9.66%	3,950	2004
	10.000000	13.687020	36.87%	4,074	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.261561	20.563843	12.61%	927	2006
	17.368350	18.261561	5.14%	927	2005
	14.793193	17.368350	17.41%	927	2004
	10.000000	14.793193	47.93%	257	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.404684	17.743553	15.18%	2,152	2006
	14.947564	15.404684	3.06%	2,152	2005
	13.466442	14.947564	11.00%	2,152	2004
	10.000000	13.466442	34.66%	2,152	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.386127	20.155172	23.00%	0	2006
	14.692453	16.386127	11.53%	0	2005
	12.982838	14.692453	13.17%	0	2004
	10.000000	12.982838	29.83%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.537328	15.436105	23.12%	2,104	2006
	11.254713	12.537328	11.40%	0	2005
	10.000000	11.254713	12.55%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.201786	13.279416	18.55%	0	2006
	10.000000	11.201786	12.02%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.294051	13.616854	-4.74%	4,983	2006
	14.215716	14.294051	0.55%	4,769	2005
	13.036956	14.215716	9.04%	6,605	2004
	10.000000	13.036956	30.37%	1,078	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.818406	18.477480	16.81%	5,055	2006
	15.299668	15.818406	3.39%	6,313	2005
	13.590519	15.299668	12.58%	11,689	2004
	10.000000	13.590519	35.91%	8,562	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.349262	12.184009	7.36%	0	2006
	10.000000	11.349262	13.49%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.879541	10.897925	0.17%	12,504	2006
	10.863822	10.879541	0.14%	13,947	2005
	10.413001	10.863822	4.33%	13,948	2004
	10.000000	10.413001	4.13%	1,950	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	13.125399	14.807242	12.81%	1,397	2006
	12.413331	13.125399	5.74%	2,594	2005
	10.329023	12.413331	20.18%	2,610	2004
	7.603070	10.329023	35.85%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.909312	16.936638	13.60%	8,425	2006
	14.478475	14.909312	2.98%	9,732	2005
	13.306493	14.478475	8.81%	7,443	2004
	10.000000	13.306493	33.06%	534	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.447233	15.408556	14.59%	0	2006
	13.098276	13.447233	2.66%	0	2005
	12.676249	13.098276	3.33%	0	2004
	10.000000	12.676249	26.76%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.714074	16.040210	2.08%	0	2006
	15.097688	15.714074	4.08%	0	2005
	13.788981	15.097688	9.49%	0	2004
	10.000000	13.788981	37.89%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.857889	17.065513	14.86%	1,896	2006
	14.381377	14.857889	3.31%	1,896	2005
	13.320016	14.381377	7.97%	1,896	2004
	10.000000	13.320016	33.20%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.732760	15.678084	14.17%	0	2006
	13.695033	13.732760	0.28%	0	2005
	12.967508	13.695033	5.61%	0	2004
	10.000000	12.967508	29.68%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.267965	2.68%	311	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.402291	10.659108	2.47%	2,849	2006
	10.446467	10.402291	-0.42%	2,977	2005
	10.254363	10.446467	1.87%	10,449	2004
	10.000000	10.254363	2.54%	12,926	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.663521	18.522872	18.25%	10,525	2006
	15.047094	15.663521	4.10%	10,706	2005
	13.719547	15.047094	9.68%	24,163	2004
	10.000000	13.719547	37.20%	23,598	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.662392	15.407887	5.08%	2,227	2006
	14.094424	14.662392	4.03%	2,227	2005
	13.861724	14.094424	1.68%	2,227	2004
	10.000000	13.861724	38.62%	2,156	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.375962	22.500984	16.13%	1,653	2006
	16.543030	19.375962	17.12%	1,653	2005
	14.806560	16.543030	11.73%	1,653	2004
	10.000000	14.806560	48.07%	1,160	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.913528	15.001417	16.17%	1,627	2006
	11.029257	12.913528	17.08%	0	2005
	10.000000	11.029257	10.29%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.471653	19.197170	9.88%	23,735	2006
	15.190243	17.471653	15.02%	26,879	2005
	13.377903	15.190243	13.55%	40,669	2004
	10.000000	13.377903	33.78%	29,239	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.644254	10.929789	2.68%	688	2006
	10.594241	10.644254	0.47%	657	2005
	10.312578	10.594241	2.73%	0	2004
	10.000000	10.312578	3.13%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.523782	22.747258	10.83%	10,790	2006
	17.636821	20.523782	16.37%	11,340	2005
	14.349148	17.636821	22.91%	10,508	2004
	10.000000	14.349148	43.49%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.879295	21.595759	14.39%	0	2006
	18.692960	18.879295	1.00%	0	2005
	16.653600	18.692960	12.25%	0	2004
	10.000000	16.653600	66.54%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.388857	15.395506	14.99%	0	2006
	10.000000	13.388857	33.89%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.695724	11.556756	8.05%	0	2006
	10.000000	10.695724	6.96%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	11.002430	12.118680	10.15%	0	2006
	10.000000	11.002430	10.02%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.210612	12.482803	11.35%	0	2006
	10.000000	11.210612	12.11%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.112000	11.12%	0	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.720795	17.000729	15.49%	21,069	2006
	14.434646	14.720795	1.98%	23,283	2005
	13.188961	14.434646	9.44%	22,882	2004
	10.000000	13.188961	31.89%	3,512	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.863905	21.759128	15.35%	6,522	2006
	17.588961	18.863905	7.25%	6,544	2005
	14.415457	17.588961	22.01%	6,460	2004
	10.000000	14.415457	44.15%	2,960	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.685336	16.031468	26.38%	0	2006
	10.000000	12.685336	26.85%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.489069	20.943158	19.75%	10,765	2006
	16.099536	17.489069	8.63%	10,916	2005
	13.775628	16.099536	16.87%	10,979	2004
	10.000000	13.775628	37.76%	8,469	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.507070	14.979195	19.77%	9,208	2006
	11.517158	12.507070	8.60%	7,800	2005
	10.000000	11.517158	15.17%	7,510	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.789202	10.892205	11.27%	0	2006
	10.000000	9.789202	-2.11%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.082126	14.363650	9.80%	0	2006
	12.323285	13.082126	6.16%	0	2005
	11.541117	12.323285	6.78%	0	2004
	10.000000	11.541117	15.41%	588	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	7.684530	8.268002	7.59%	0	2006
	6.923914	7.684530	10.99%	0	2005
	5.952624	6.923914	16.32%	0	2004
	5.021131	5.952624	18.55%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	8.792060	12.742145	44.93%	0	2006
	6.757977	8.792060	30.10%	0	2005
	5.774793	6.757977	17.03%	0	2004
	4.353358	5.774793	32.65%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	15.635606	22.680304	45.06%	154	2006
	12.011186	15.635606	30.18%	0	2005
	10.261664	12.011186	17.05%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.436859	16.884690	9.38%	0	2006
	14.115127	15.436859	9.36%	0	2005
	12.187076	14.115127	15.82%	0	2004
	10.000000	12.187076	21.87%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	14.156362	14.545241	2.75%	1,897	2006
	14.152545	14.156362	0.03%	1,587	2005
	14.242517	14.152545	-0.63%	1,587	2004
	14.102863	14.242517	0.99%	1,587	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.952853	14.762979	5.81%	3,029	2006
	13.576552	13.952853	2.77%	3,029	2005
	12.634137	13.576552	7.46%	3,029	2004
	10.000000	12.634137	26.34%	1,847	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.599446	18.535799	18.82%	14,032	2006
	14.859361	15.599446	4.98%	14,032	2005
	13.124558	14.859361	13.22%	14,032	2004
	10.000000	13.124558	31.25%	1,128	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.188342	15.762830	3.78%	733	2006
	14.969638	15.188342	1.46%	733	2005
	13.570410	14.969638	10.31%	733	2004
	10.000000	13.570410	35.70%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.641048	14.047229	20.67%	2,344	2006
	10.000000	11.641048	16.41%	1,378	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.105719	18.178848	12.87%	2,318	2006
	14.400532	16.105719	11.84%	2,404	2005
	12.586788	14.400532	14.41%	7,751	2004
	10.000000	12.586788	25.87%	10,649	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.553602	12.638066	9.39%	0	2006
	10.000000	11.553602	15.54%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.427067	16.174949	12.12%	1,286	2006
	13.692407	14.427067	5.37%	1,273	2005
	12.258858	13.692407	11.69%	0	2004
	10.000000	12.258858	22.59%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.458763	4.59%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.440837	4.41%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.741225	7.41%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.267965	2.68%	311	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.086687	14.272235	9.06%	7,579	2006
	12.963415	13.086687	0.95%	8,246	2005
	11.941737	12.963415	8.56%	8,249	2004
	10.000000	11.941737	19.42%	7,951	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.442736	11.388285	9.05%	0	2006
	10.000000	10.442736	4.43%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.893704	34.804302	34.41%	2,323	2006
	19.844365	25.893704	30.48%	2,375	2005
	16.710884	19.844365	18.75%	5,720	2004
	10.000000	16.710884	67.11%	5,693	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.346624	20.664232	34.65%	2,786	2006
	11.747354	15.346624	30.64%	3,363	2005
	10.000000	11.747354	17.47%	3,413	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.654605	22.552315	35.41%	0	2006
	15.906209	16.654605	4.71%	0	2005
	12.451615	15.906209	27.74%	0	2004
	10.000000	12.451615	24.52%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.323538	16.576105	1.55%	0	2006
	15.365994	16.323538	6.23%	0	2005
	13.770755	15.365994	11.58%	0	2004
	10.000000	13.770755	37.71%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.580621	22.608166	15.46%	0	2006
	19.320481	19.580621	1.35%	0	2005
	16.748157	19.320481	15.36%	0	2004
	10.000000	16.748157	67.48%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.989474	20.924832	10.19%	919	2006
	17.193948	18.989474	10.44%	913	2005
	14.680450	17.193948	17.12%	764	2004
	10.000000	14.680450	46.80%	340	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.550938	21.965765	18.41%	337	2006
	16.981872	18.550938	9.24%	337	2005
	14.261747	16.981872	19.07%	337	2004
	10.000000	14.261747	42.62%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.683700	15.841090	1.00%	360	2006
	14.702011	15.683700	6.68%	360	2005
	13.862071	14.702011	6.06%	360	2004
	10.000000	13.862071	38.62%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.514369	10.618183	0.99%	0	2006
	9.851960	10.514369	6.72%	0	2005
	10.000000	9.851960	-1.48%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.365243	16.768363	9.13%	326	2006
	15.704545	15.365243	-2.16%	326	2005
	15.310126	15.704545	2.58%	326	2004
	10.000000	15.310126	53.10%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.626803	11.651796	9.65%	0	2006
	10.861466	10.626803	-2.16%	0	2005
	10.000000	10.861466	8.61%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	17.099900	17.424520	1.90%	1,136	2006
	16.793946	17.099900	1.82%	1,076	2005
	16.494330	16.793946	1.82%	630	2004
	16.400486	16.494330	0.57%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.093142	11.612509	4.68%	23,066	2006
	10.890089	11.093142	1.86%	10,236	2005
	10.553714	10.890089	3.19%	10,317	2004
	9.919273	10.553714	6.40%	2,542	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.613758	12.416152	6.91%	20,581	2006
	11.272511	11.613758	3.03%	31,072	2005
	10.688780	11.272511	5.66%	20,582	2004
	9.516564	10.668780	12.11%	1,386	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	11.979453	13.153254	9.80%	213,783	2006
	11.532734	11.979453	3.87%	232,986	2005
	10.678199	11.532734	8.00%	232,618	2004
	9.020903	10.678199	18.37%	54,415	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	12.493570	14.110426	12.94%	189,533	2006
	11.833566	12.493570	5.58%	202,267	2005
	10.706793	11.833566	10.52%	207,601	2004
	8.574196	10.706793	24.87%	53,474	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	12.792856	14.742058	15.24%	75,909	2006
	12.020568	12.792856	6.42%	76,544	2005
	10.691584	12.020568	12.43%	71,172	2004
	8.222834	10.691584	30.02%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.449073	16.702617	8.11%	565	2006
	14.295467	15.449073	8.07%	722	2005
	12.584085	14.295467	13.60%	0	2004
	10.000000	12.584085	25.84%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	13.120467	13.523375	3.07%	9,082	2006
	12.960454	13.120467	1.23%	11,183	2005
	13.038682	12.960454	-0.60%	17,272	2004
	13.141597	13.038682	-0.78%	1,025	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.991843	16.763539	11.82%	1,047	2006
	14.204152	14.991843	5.55%	1,114	2005
	13.151931	14.204152	8.00%	0	2004
	10.000000	13.151931	31.52%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.205009	17.860137	-1.89%	0	2006
	16.528990	18.205009	10.14%	0	2005
	14.954334	16.528990	10.53%	0	2004
	10.000000	14.954334	49.54%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.860812	8.61%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.960019	21.676563	20.69%	0	2006
	16.293867	17.960019	10.23%	0	2005
	13.771025	16.293867	18.32%	0	2004
	10.000000	13.771025	37.71%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.655579	15.274950	20.70%	2,654	2006
	11.480025	12.655579	10.24%	2,180	2005
	10.000000	11.480025	14.80%	1,136	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	14.178717	15.363340	8.35%	2,629	2006
	12.827455	14.178717	10.53%	2,629	2005
	11.241109	12.827455	14.11%	2,410	2004
	8.466716	11.241109	32.77%	1,397	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.145038	18.396690	13.95%	774	2006
	15.751236	16.145038	2.50%	1,037	2005
	13.643766	15.751236	15.45%	1,861	2004
	10.000000	13.643766	36.44%	522	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	13.206364	13.652006	3.37%	4,603	2006
	13.107595	13.206364	0.75%	4,603	2005
	12.478382	13.107595	5.04%	4,452	2004
	11.287848	12.478382	10.55%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.230206	21.741129	13.06%	786	2006
	17.775573	19.230206	8.18%	1,708	2005
	15.126640	17.775573	17.51%	1,561	2004
	10.000000	15.126640	51.27%	1,561	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.992066	15.991919	14.29%	1,073	2006
	13.485135	13.992066	3.76%	1,073	2005
	12.308863	13.485135	9.56%	1,073	2004
	10.000000	12.308863	23.09%	586	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.070390	20.238481	25.94%	0	2006
	14.526080	16.070390	10.63%	0	2005
	12.678909	14.526080	14.57%	0	2004
	10.000000	12.678909	26.79%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.674067	13.176388	3.96%	0	2006
	12.161196	12.674067	4.22%	0	2005
	11.742875	12.161196	3.56%	0	2004
	10.000000	11.742875	17.43%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.209742	12.084362	7.80%	0	2006
	10.000000	11.209742	12.10%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.537954	12.328510	16.99%	0	2006
	10.000000	10.537954	5.38%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.033533	10.291711	2.57%	0	2006
	10.000000	10.033533	0.34%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.642778	10.867872	2.11%	553	2006
	10.384934	10.642778	2.48%	527	2005
	10.120184	10.384934	2.62%	0	2004
	10.000000	10.120184	1.20%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.118343	16.517771	9.26%	997	2006
	13.673068	15.118343	10.57%	1,034	2005
	12.597484	13.673068	8.54%	3,225	2004
	10.000000	12.597484	25.97%	4,411	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.888661	28.355777	35.75%	10,456	2006
	18.144891	20.888661	15.12%	10,473	2005
	13.524052	18.144891	34.17%	10,642	2004
	10.000000	13.524052	35.24%	311	2003*

Additional Contract Options Elected (Total 1.45%)

(Variable account charges of 1.45% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.958306	17.762884	11.31%	970	2006
	15.358766	15.958306	3.90%	1,070	2005
	14.060710	15.358766	9.23%	0	2004
	10.000000	14.060710	40.61%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.978539	15.656207	4.52%	0	2006
	13.997531	14.978539	7.01%	0	2005
	13.357568	13.997531	4.79%	0	2004
	10.000000	13.357568	33.58%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.076125	19.565008	14.58%	1,374	2006
	15.857282	17.076125	7.69%	1,375	2005
	13.959121	15.857282	13.60%	0	2004
	10.000000	13.959121	39.59%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.457992	17.821918	15.29%	17,324	2006
	14.995589	15.457992	3.08%	17,324	2005
	13.680938	14.995589	9.61%	17,324	2004
	10.000000	13.680938	36.81%	17,324	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.234958	20.523508	12.55%	0	2006
	17.351820	18.234958	5.09%	0	2005
	14.786619	17.351820	17.35%	0	2004
	10.000000	14.786619	47.87%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.382250	17.708752	15.12%	41	2006
	14.933343	15.382250	3.01%	51	2005
	13.460462	14.933343	10.94%	62	2004
	10.000000	13.460462	34.60%	71	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.362291	20.115677	22.94%	0	2006
	14.678498	16.362291	11.47%	0	2005
	12.977083	14.678498	13.11%	0	2004
	10.000000	12.977083	29.77%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.526789	15.415331	23.06%	0	2006
	11.250930	12.526789	11.34%	1,878	2005
	10.000000	11.250930	12.51%	1,878	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.198017	13.268243	18.49%	0	2006
	10.000000	11.198017	11.98%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.273272	13.590179	-4.79%	227	2006
	14.202224	14.273272	0.50%	227	2005
	13.031173	14.202224	8.99%	227	2004
	10.000000	13.031173	30.31%	252	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.795388	18.441267	16.75%	44	2006
	15.285127	15.795388	3.34%	54	2005
	13.584488	15.285127	12.52%	64	2004
	10.000000	13.584488	35.84%	71	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.345458	12.173767	7.30%	0	2006
	10.000000	11.345458	13.45%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.863014	10.875866	0.12%	3,993	2006
	10.852808	10.863014	0.09%	4,132	2005
	10.407723	10.852808	4.28%	0	2004
	10.000000	10.407723	4.08%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.483738	20.841632	12.76%	802	2006
	17.489811	18.483738	5.68%	1,244	2005
	14.560499	17.489811	20.12%	1,262	2004
	10.000000	14.560499	45.60%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.887634	16.903452	13.54%	3,556	2006
	14.464722	14.887634	2.92%	3,556	2005
	13.300594	14.464722	8.75%	0	2004
	10.000000	13.300594	33.01%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.427643	15.378321	14.53%	1,878	2006
	13.085819	13.427643	2.61%	1,878	2005
	12.670615	13.085819	3.28%	1,850	2004
	10.000000	12.670615	26.71%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.691217	16.008777	2.02%	0	2006
	15.083336	15.691217	4.03%	0	2005
	13.782864	15.083336	9.44%	0	2004
	10.000000	13.782864	37.83%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.836247	17.032044	14.80%	0	2006
	14.367706	14.836247	3.26%	0	2005
	13.314101	14.367706	7.91%	0	2004
	10.000000	13.314101	33.14%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.712783	15.647362	14.11%	0	2006
	13.682024	13.712783	0.22%	0	2005
	12.961759	13.682024	5.56%	0	2004
	10.000000	12.961759	29.62%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.264514	2.65%	2,929	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.387117	10.638170	2.42%	415	2006
	10.436517	10.387117	-0.47%	0	2005
	10.249802	10.436517	1.82%	0	2004
	10.000000	10.249802	2.50%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.640738	18.486577	18.20%	1,385	2006
	15.032805	15.640738	4.04%	1,587	2005
	13.713454	15.032805	9.62%	319	2004
	10.000000	13.713454	37.13%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.641028	15.377648	5.03%	16,353	2006
	14.081010	14.641028	3.98%	16,353	2005
	13.855566	14.081010	1.63%	16,353	2004
	10.000000	13.855566	38.56%	16,353	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.347779	22.456893	16.07%	0	2006
	16.527318	19.347779	17.07%	0	2005
	14.799998	16.527318	11.67%	0	2004
	10.000000	14.799998	48.00%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.902681	14.981232	16.11%	0	2006
	11.025556	12.902681	17.03%	1,149	2005
	10.000000	11.025556	10.26%	1,149	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.446211	19.159517	9.82%	10,401	2006
	15.175802	17.446211	14.96%	6,066	2005
	13.371956	15.175802	13.49%	3,393	2004
	10.000000	13.371956	33.72%	830	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.628749	10.908344	2.63%	21,266	2006
	10.584151	10.628749	0.42%	1,726	2005
	10.307985	10.584151	2.68%	1,568	2004
	10.000000	10.307985	3.08%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.493894	22.702642	10.78%	3,786	2006
	17.620039	20.493894	16.31%	3,615	2005
	14.342766	17.620039	22.85%	2,582	2004
	10.000000	14.342766	43.43%	74	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.851828	21.553444	14.33%	44	2006
	18.675210	18.851828	0.95%	51	2005
	16.646222	18.675210	12.19%	59	2004
	10.000000	16.646222	66.46%	65	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.384377	15.382582	14.93%	0	2006
	10.000000	13.384377	33.84%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.692124	11.547024	8.00%	0	2006
	10.000000	10.692124	6.92%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.998738	12.108491	10.09%	0	2006
	10.000000	10.998738	9.99%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.206846	12.472291	11.29%	0	2006
	10.000000	11.206846	12.07%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.108263	11.08%	524	2006*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.699382	16.967418	15.43%	12,534	2006
	14.420927	14.699382	1.93%	8,326	2005
	13.183104	14.420927	9.39%	942	2004
	10.000000	13.183104	31.83%	73	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.836445	21.716467	15.29%	1,734	2006
	17.572243	18.836445	7.19%	1,807	2005
	14.409060	17.572243	21.95%	625	2004
	10.000000	14.409060	44.09%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.681079	16.017982	26.31%	506	2006
	10.000000	12.681079	26.81%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.463638	20.902132	19.69%	0	2006
	16.084249	17.463638	8.58%	0	2005
	13.769523	16.084249	16.81%	0	2004
	10.000000	13.769523	37.70%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.496550	14.959026	19.71%	13,505	2006
	11.513291	12.496550	8.54%	4,407	2005
	10.000000	11.513291	15.13%	1,752	2004*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.785907	10.883058	11.21%	0	2006
	10.000000	9.785907	-2.14%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.063102	14.335510	9.74%	47	2006
	12.311583	13.063102	6.10%	57	2005
	11.536001	12.311583	6.72%	68	2004
	10.000000	11.536001	15.36%	77	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.082991	17.295382	7.54%	0	2006
	14.498416	16.082991	10.93%	0	2005
	12.470909	14.498416	16.26%	0	2004
	10.000000	12.470909	24.71%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.910860	31.738896	44.85%	0	2006
	16.850186	21.910860	30.03%	0	2005
	14.406047	16.850186	16.97%	0	2004
	10.000000	14.406470	44.06%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.814258	21.478037	44.98%	3,773	2006
	11.385981	14.814258	30.11%	0	2005
	10.000000	11.385981	13.86%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.416025	16.853376	9.32%	50	2006
	14.103200	15.416025	9.31%	60	2005
	12.182950	14.103200	15.76%	70	2004
	10.000000	12.182950	21.83%	78	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.996311	10.265712	2.70%	22,348	2006
	9.998672	9.996311	-0.02%	1,204	2005
	10.067340	9.998672	-0.68%	0	2004
	10.000000	10.067340	0.67%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.932529	14.734025	5.75%	44	2006
	13.563648	13.932529	2.72%	54	2005
	12.628530	13.563648	7.40%	64	2004
	10.000000	12.628530	26.29%	71	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.576752	18.499487	18.76%	491	2006
	14.845260	15.576752	4.93%	0	2005
	13.118740	14.845260	13.16%	0	2004
	10.000000	13.118740	31.19%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.166231	15.731913	3.73%	0	2006
	14.955415	15.166231	1.41%	123	2005
	13.564388	14.955415	10.25%	193	2004
	10.000000	13.564388	35.64%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.637140	14.035416	20.61%	16,454	2006
	10.000000	11.637140	16.37%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.081256	18.142063	12.81%	0	2006
	14.385932	16.081256	11.78%	0	2005
	12.580409	14.385932	14.35%	0	2004
	10.000000	12.580409	25.80%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.549723	12.627421	9.33%	0	2006
	10.000000	11.549723	15.50%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.407573	16.144926	12.06%	21,819	2006
	13.680826	14.407573	5.31%	0	2005
	12.254702	13.680826	11.64%	0	2004
	10.000000	12.254702	22.55%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.455243	4.55%	5,175	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.437325	4.37%	1,056	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.737612	7.38%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.264514	2.65%	2,929	2006*




NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.439233	11.378717	9.00%	0	2006
	10.000000	10.439233	4.39%	0	2005*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.856052	34.736132	34.34%	0	2006
	19.825524	25.856052	30.42%	0	2005
	16.703476	19.825524	18.69%	0	2004
	10.000000	16.703476	67.03%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.333741	20.636451	34.58%	0	2006
	11.743412	15.333741	30.57%	0	2005
	10.000000	11.743412	17.43%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.630360	22.508101	35.34%	0	2006
	15.891079	16.630360	4.65%	0	2005
	12.446076	15.891079	27.68%	0	2004
	10.000000	12.446076	24.46%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.299770	16.543600	1.50%	0	2006
	15.351382	16.299770	6.18%	0	2005
	13.764641	15.351382	11.53%	0	2004
	10.000000	13.764641	37.65%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.552135	22.563861	15.40%	0	2006
	19.302125	19.552135	1.30%	0	2005
	16.740734	19.302125	15.30%	0	2004
	10.000000	16.740734	67.41%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.961845	20.883817	10.14%	3,226	2006
	17.177624	18.961845	10.39%	0	2005
	14.673942	17.177624	17.06%	0	2004
	10.000000	14.673942	46.74%	0	2003*

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.523958	21.922745	18.35%	0	2006
	16.965739	18.523958	9.18%	0	2005
	14.255420	16.965739	19.01%	0	2004
	10.000000	14.255420	42.55%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.660846	15.810013	0.95%	0	2006
	14.688013	15.660846	6.62%	0	2005
	13.855914	14.688013	6.01%	0	2004
	10.000000	13.855914	38.56%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.505537	10.603887	0.94%	0	2006
	9.848659	10.505537	6.67%	0	2005
	10.000000	9.848659	-1.51%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.342876	16.735475	9.08%	0	2006
	15.689624	15.342876	-2.21%	0	2005
	15.303329	15.689624	2.52%	0	2004
	10.000000	15.303329	53.03%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.617860	11.636105	9.59%	0	2006
	10.857818	10.617860	-2.21%	0	2005
	10.000000	10.857818	8.58%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.429398	10.622012	1.85%	18,688	2006
	10.247972	10.429398	1.77%	0	2005
	10.070236	10.247972	1.76%	0	2004
	10.000000	10.070236	0.70%	0	2003*


NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.289903	11.812489	4.63%	266	2006
	11.088873	11.289903	1.81%	266	2005
	10.751819	11.088873	3.13%	106	2004
	10.000000	10.751819	7.52%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.471677	13.326598	6.85%	11,001	2006
	12.111358	12.471677	2.98%	7,827	2005
	11.468511	12.111358	5.61%	7,251	2004
	10.000000	11.468511	14.69%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.712890	15.048914	9.74%	103,926	2006
	13.208219	13.712890	3.82%	68,727	2005
	12.235735	13.208219	7.95%	32,199	2004
	10.000000	12.235735	22.36%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.239381	17.202882	12.88%	63,196	2006
	14.441630	15.239381	5.52%	50,082	2005
	13.073147	14.441630	10.47%	3,730	2004
	10.000000	13.073147	30.73%	819	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.428965	18.922615	15.18%	47,850	2006
	15.444974	16.428965	6.37%	47,439	2005
	13.744350	15.444974	12.37%	35,733	2004
	10.000000	13.744350	37.44%	34,829	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.428208	16.671625	8.06%	9,481	2006
	14.283377	15.428208	8.02%	0	2005
	12.579819	14.283377	13.54%	0	2004
	10.000000	12.579819	25.80%	0	2003*


NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.973663	10.274739	3.02%	4,278	2006
	9.857014	9.973663	1.18%	0	2005
	9.921541	9.857014	-0.65%	10,145	2004
	10.000000	9.921541	-0.78%	0	2003*

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.970013	16.730660	11.76%	19,828	2006
	14.190647	14.970013	5.49%	0	2005
	13.146093	14.190647	7.95%	0	2004
	10.000000	13.146093	31.46%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.178524	17.825135	-1.94%	0	2006
	16.513288	18.178524	10.08%	0	2005
	14.947701	16.513288	10.47%	0	2004
	10.000000	14.947701	49.48%	0	2003*


NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.067644	14.244264	9.00%	0	2006
	12.951087	13.067644	0.90%	0	2005
	11.936431	12.951087	8.50%	0	2004
	10.000000	11.936431	19.36%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.857171	8.57%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.935769	21.636358	20.63%	0	2006
	16.280107	17.935769	10.17%	0	2005
	13.766371	16.280107	18.26%	0	2004
	10.000000	13.766371	37.66%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.644950	15.254414	20.64%	10,529	2006
	11.476180	12.644950	10.18%	1,841	2005
	10.000000	11.476180	14.76%	1,841	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.062463	19.561682	8.30%	229	2006
	16.349330	18.062463	10.48%	1,025	2005
	14.334701	16.349330	14.05%	1,025	2004
	10.000000	14.334701	43.35%	0	2003*

100

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.121537	18.360628	13.89%	14,949	2006
	15.736262	16.121537	2.45%	0	2005
	13.637692	15.736262	15.39%	0	2004
	10.000000	13.637692	36.38%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.553509	11.937331	3.32%	1,453	2006
	11.472906	11.553509	0.70%	1,453	2005
	10.927700	11.472906	4.99%	0	2004
	10.000000	10.927700	9.28%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.832392	15.740770	6.12%	1,788	2006
	14.352146	14.832392	3.35%	347	2005
	13.659602	14.352146	5.07%	420	2004
	10.000000	13.659602	36.60%	244	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.959922	14.994840	15.70%	5,671	2006
	11.530336	12.959922	12.40%	4,732	2005
	10.000000	11.530336	15.30%	1,727	2004*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.945565	23.070354	15.67%	0	2006
	17.743416	19.945565	12.41%	0	2005
	15.145229	17.743416	17.16%	0	2004
	10.000000	15.145229	51.45%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.043934	14.041365	7.65%	1,450	2006
	12.975171	13.043934	0.53%	1,289	2005
	12.108744	12.975171	7.16%	0	2004
	10.000000	12.108744	21.09%	0	2003*

101

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.705781	16.632094	13.10%	19,611	2006
	14.111421	14.705781	4.21%	54	2005
	13.119209	14.111421	7.56%	65	2004
	10.000000	13.119209	31.19%	72	2003*


Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.202224	21.698510	13.00%	4,339	2006
	17.758675	19.202224	8.13%	70	2005
	15.119925	17.758675	17.45%	110	2004
	10.000000	15.119925	51.20%	0	2003*


Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.973162	15.962242	14.24%	0	2006
	13.473727	13.973162	3.71%	0	2005
	12.304689	13.473727	9.50%	0	2004
	10.000000	12.304689	23.05%	0	2003*

Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.048711	20.200971	25.87%	0	2006
	14.513815	16.048711	10.58%	0	2005
	12.674623	14.513815	14.51%	0	2004
	10.000000	12.674623	26.75%	0	2003*

Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.656952	13.151940	3.91%	0	2006
	12.150914	12.656952	4.16%	0	2005
	11.738902	12.150914	3.51%	0	2004
	10.000000	11.738902	17.39%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.205989	12.074198	7.75%	0	2006
	10.000000	11.205989	12.06%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.534414	12.318145	16.93%	724	2006
	10.000000	10.534414	5.34%	0	2005*

102

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.030158	10.283046	2.52%	0	2006
	10.000000	10.030158	0.30%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.628384	10.847690	2.06%	17,622	2006
	10.376142	10.628384	2.43%	3,344	2005
	10.116754	10.376142	2.56%	1,599	2004
	10.000000	10.116754	1.17%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.095375	16.484339	9.20%	0	2006
	13.659211	15.095375	10.51%	0	2005
	12.591098	13.659211	8.48%	0	2004
	10.000000	12.591098	25.91%	0	2003*


The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.856958	28.298435	35.68%	320	2006
	18.126507	20.856958	15.06%	0	2005
	13.517197	18.126507	34.10%	0	2004
	10.000000	13.517197	35.17%	0	2003*

103

Additional Contract Options Elected (Total 1.55%)

(Variable account charges of 1.55% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.911853	17.693248	11.20%	1,529	2006
	15.329555	15.911853	3.80%	1,485	2005
	14.048227	15.329555	9.12%	1,442	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.934929	15.594825	4.42%	0	2006
	13.970911	14.934929	6.90%	0	2005
	13.345701	13.970911	4.68%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.026419	19.488316	14.46%	0	2006
	15.827142	17.026419	7.58%	0	2005
	13.946733	15.827142	13.48%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.412996	17.752066	15.18%	0	2006
	14.967070	15.412996	2.98%	0	2005
	13.668790	14.967070	9.50%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.181920	20.443104	12.44%	0	2006
	17.318860	18.181920	4.98%	0	2005
	14.773508	17.318860	17.23%	0	2004

104

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.337483	17.639354	15.01%	0	2006
	14.904956	15.337483	2.90%	0	2005
	13.448505	14.904956	10.83%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.314652	20.036825	22.81%	0	2006
	14.650579	16.314652	11.36%	0	2005
	12.965554	14.650579	13.00%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.505729	15.373860	22.93%	0	2006
	11.243385	12.505729	11.23%	0	2005
	10.000000	11.243385	12.43%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.190493	13.245918	18.37%	582	2006
	10.000000	11.190493	11.90%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.231692	13.536867	-4.88%	0	2006
	14.175203	14.231692	0.40%	0	2005
	13.019603	14.175203	8.88%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.749395	18.368970	16.63%	4,670	2006
	15.256055	15.749395	3.23%	4,670	2005
	13.572423	15.256055	12.40%	2,856	2004

105

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.337825	12.153253	7.19%	0	2006
	10.000000	11.337825	13.38%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.830006	10.831848	0.02%	3,234	2006
	10.830792	10.830006	-0.01%	3,034	2005
	10.397160	10.830792	4.17%	2,729	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.429940	20.759940	12.64%	0	2006
	17.456555	18.429940	5.58%	0	2005
	14.547569	17.456555	20.00%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.844276	16.837179	13.43%	0	2006
	14.437205	14.844276	2.82%	0	2005
	13.288774	14.437205	8.64%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.388549	15.318047	14.41%	0	2006
	13.060934	13.388549	2.51%	0	2005
	12.659360	13.060934	3.17%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.645527	15.946000	1.92%	0	2006
	15.054647	15.645527	3.92%	0	2005
	13.770609	15.054647	9.32%	0	2004

106

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.793062	16.965291	14.68%	0	2006
	14.340380	14.793062	3.16%	0	2005
	13.302272	14.340380	7.80%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.672848	15.586008	13.99%	0	2006
	13.655998	13.672848	0.12%	0	2005
	12.950240	13.655998	5.45%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.257600	2.58%	2,376	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.356857	10.596449	2.31%	0	2006
	10.416653	10.356857	-0.57%	0	2005
	10.240682	10.416653	1.72%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.595190	18.414103	18.08%	0	2006
	15.004214	15.595190	3.94%	0	2005
	13.701281	15.004214	9.51%	0	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.598405	15.317352	4.92%	0	2006
	14.054233	14.598405	3.87%	0	2005
	13.843267	14.054233	1.52%	0	2004

107

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.291470	22.368891	15.95%	0	2006
	16.495894	19.291470	16.95%	0	2005
	14.786862	16.495894	11.56%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.880975	14.940911	15.99%	0	2006
	11.018158	12.880975	16.91%	0	2005
	10.000000	11.018158	10.18%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.395451	19.084463	9.71%	3,227	2006
	15.146949	17.395451	14.84%	3,038	2005
	13.360088	15.146949	13.37%	1,251	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.597769	10.865552	2.53%	6,405	2006
	10.563999	10.597769	0.32%	3,079	2005
	10.298811	10.563999	2.57%	2,783	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.434234	22.613645	10.67%	1,896	2006
	17.586538	20.434234	16.19%	1,769	2005
	14.330025	17.586538	22.73%	1,302	2004

108

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.796976	21.468976	14.22%	0	2006
	18.639733	18.796976	0.84%	0	2005
	16.631467	18.639733	12.08%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.375380	15.356683	14.81%	84	2006
	10.000000	13.375380	33.75%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.684933	11.527587	7.89%	0	2006
	10.000000	10.684933	6.85%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.991345	12.088109	9.98%	0	2006
	10.000000	10.991345	9.91%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.199314	12.451308	11.18%	0	2006
	10.000000	11.199314	11.99%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.100789	11.01%	1,331	2006*

109

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.656581	16.900889	15.31%	7,797	2006
	14.393506	14.656581	1.83%	7,865	2005
	13.171406	14.393506	9.28%	4,511	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.781634	21.631374	15.17%	1,273	2006
	17.538843	18.781634	7.09%	1,191	2005
	14.396268	17.538843	21.83%	916	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.672560	15.991030	26.19%	0	2006
	10.000000	12.672560	26.73%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.412784	20.820180	19.57%	0	2006
	16.053650	17.412784	8.47%	0	2005
	13.757275	16.053650	16.69%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.475534	14.918765	19.58%	3,088	2006
	11.505560	12.475534	8.43%	886	2005
	10.000000	11.505560	15.06%	0	2004*

110

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.779318	10.864726	11.10%	0	2006
	10.000000	9.779318	-2.21%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.025049	14.279280	9.63%	0	2006
	12.288153	13.025049	6.00%	0	2005
	11.525739	12.288153	6.61%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.036194	17.227590	7.43%	0	2006
	14.470859	16.036194	10.82%	0	2005
	12.459834	14.470859	16.14%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.847110	31.614532	44.71%	0	2006
	16.818162	21.847110	29.90%	0	2005
	14.393258	16.818162	16.85%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.789354	21.420255	44.84%	728	2006
	11.378339	14.789354	29.98%	0	2005
	10.000000	11.378339	13.78%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.374397	16.790870	9.21%	0	2006
	14.079355	15.374397	9.20%	0	2005
	12.174698	14.079355	15.64%	0	2004

111

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.967204	10.225466	2.59%	2,523	2006
	9.979655	9.967204	-0.12%	0	2005
	10.058406	9.979655	-0.78%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.891974	14.676279	5.65%	0	2006
	13.537857	13.891974	2.62%	0	2005
	12.617314	13.537857	7.30%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.531401	18.426967	18.64%	4,379	2006
	14.817018	15.531401	4.82%	4,379	2005
	13.107080	14.817018	13.05%	4,379	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.122090	15.670243	3.62%	0	2006
	14.926968	15.122090	1.31%	0	2005
	13.552337	14.926968	10.14%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.629323	14.011799	20.49%	4,461	2006
	10.000000	11.629323	16.29%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.032438	18.068670	12.70%	0	2006
	14.356783	16.032438	11.67%	0	2005
	12.567659	14.356783	14.24%	0	2004

112

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.541962	12.606171	9.22%	0	2006
	10.000000	11.541962	15.42%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.368666	16.085034	11.95%	6,119	2006
	13.657697	14.368666	5.21%	1,403	2005
	12.246405	13.657697	11.52%	1,393	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.448212	4.48%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.430304	4.30%	2,045	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.730389	7.30%	1,067	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.257600	2.58%	2,376	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.029576	14.188404	8.89%	0	2006
	12.926446	13.029576	0.80%	0	2005
	11.925811	12.926446	8.39%	0	2004

113

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.432214	11.359568	8.89%	0	2006
	10.000000	10.432214	4.32%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.780818	34.600030	34.21%	0	2006
	19.787836	25.780818	30.29%	0	2005
	16.688663	19.787836	18.57%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.307966	20.580914	34.45%	0	2006
	11.735542	15.307966	30.44%	0	2005
	10.000000	11.735542	17.36%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.581940	22.419870	35.21%	0	2006
	15.860867	16.581940	4.55%	0	2005
	12.435017	15.860867	27.55%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.252330	16.478755	1.39%	0	2006
	15.322194	16.252330	6.07%	0	2005
	13.752422	15.322194	11.41%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.495218	22.475409	15.29%	0	2006
	19.265423	19.495218	1.19%	0	2005
	16.725873	19.265423	15.18%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.906663	20.801965	10.02%	1,508	2006
	17.144967	18.906663	10.28%	903	2005
	14.660913	17.144967	16.94%	949	2004

114

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.470035	21.836804	18.23%	0	2006
	16.933487	18.470035	9.07%	0	2005
	14.242764	16.933487	18.89%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.615253	15.748021	0.85%	0	2006
	14.660096	15.615253	6.52%	0	2005
	13.843609	14.660096	5.90%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.487849	10.575321	0.83%	0	2006
	9.842041	10.487849	6.56%	0	2005
	10.000000	9.842041	-1.58%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.298222	16.669889	8.97%	0	2006
	15.659808	15.298222	-2.31%	0	2005
	15.289759	15.659808	2.42%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.599999	11.604772	9.48%	0	2006
	10.850535	10.599999	-2.31%	0	2005
	10.000000	10.850535	8.51%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.398996	10.580339	1.74%	3,183	2006
	10.228457	10.398996	1.67%	0	2005
	10.061282	10.228457	1.66%	0	2004

115

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.257041	11.766188	4.52%	0	2006
	11.067784	11.257041	1.71%	0	2005
	10.742263	11.067784	3.03%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.435360	13.274345	6.75%	0	2006
	12.088323	12.435360	2.87%	0	2005
	11.458318	12.088323	5.50%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.672978	14.989934	9.63%	5,102	2006
	13.183096	13.672978	3.72%	5,459	2005
	12.224868	13.183096	7.84%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.195027	17.135465	12.77%	7,475	2006
	14.414176	15.195027	5.42%	7,747	2005
	13.061546	14.414176	10.36%	0	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.381141	18.848451	15.06%	0	2006
	15.415605	16.381141	6.26%	0	2005
	13.732149	15.415605	12.26%	0	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.386532	16.609756	7.95%	2,632	2006
	14.259218	15.386532	7.91%	586	2005
	12.571305	14.259218	13.43%	0	2004

116

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.944219	10.234040	2.91%	239	2006
	9.837869	9.944219	1.08%	0	2005
	9.912328	9.837869	-0.75%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.926434	16.665074	11.65%	3,862	2006
	14.163661	14.926434	5.39%	0	2005
	13.134414	14.163661	7.84%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.125604	17.755249	-2.04%	0	2006
	16.481889	18.125604	9.97%	0	2005
	14.934431	16.481889	10.36%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.849859	8.50%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.887326	21.556091	20.51%	0	2006
	16.252579	17.887326	10.06%	0	2005
	13.757041	16.252579	18.14%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.623671	15.213340	20.51%	3,114	2006
	11.468479	12.623671	10.07%	891	2005
	10.000000	11.468479	14.68%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	18.009893	19.485008	8.19%	0	2006
	16.318252	18.009893	10.37%	0	2005
	14.321973	16.318252	13.94%	0	2004

117

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.074599	18.288651	13.77%	3,377	2006
	15.706338	16.074599	2.34%	522	2005
	13.625586	15.706338	15.27%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.519862	11.890527	3.22%	0	2006
	11.451083	11.519862	0.60%	0	2005
	10.917987	11.451083	4.88%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.789202	15.679062	6.02%	7,606	2006
	14.324845	14.789202	3.24%	7,527	2005
	13.647463	14.324845	4.96%	6,030	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.938136	14.954489	15.58%	5,946	2006
	11.522606	12.938136	12.28%	6,153	2005
	10.000000	11.522606	15.23%	5,705	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.887489	22.979914	15.55%	0	2006
	17.709664	19.887489	12.30%	0	2005
	15.131768	17.709664	17.04%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	13.005963	13.986332	7.54%	258	2006
	12.950484	13.005963	0.43%	0	2005
	12.097975	12.950484	7.05%	0	2004

118

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.662948	16.566871	12.98%	4,156	2006
	14.084571	14.662948	4.11%	0	2005
	13.107555	14.084571	7.45%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.146339	21.613466	12.89%	771	2006
	17.724915	19.146339	8.02%	0	2005
	15.106504	17.724915	17.33%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.935435	15.903032	14.12%	0	2006
	13.450952	13.935435	3.60%	0	2005
	12.296362	13.450952	9.39%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	16.005375	20.126048	25.75%	0	2006
	14.489276	16.005375	10.46%	0	2005
	12.666032	14.489276	14.39%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.622775	13.103151	3.81%	0	2006
	12.130370	12.622775	4.06%	0	2005
	11.730953	12.130370	3.40%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.198450	12.053883	7.64%	0	2006
	10.000000	11.198450	11.98%	0	2005*

119

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.527324	12.297399	16.81%	2,200	2006
	10.000000	10.527324	5.27%	2,202	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.023410	10.265733	2.42%	0	2006
	10.000000	10.023410	0.23%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.599662	10.807431	1.96%	4,129	2006
	10.358581	10.599662	2.33%	1,548	2005
	10.109894	10.358581	2.46%	1,421	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.049526	16.417647	9.09%	0	2006
	13.631514	15.049526	10.40%	0	2005
	12.578333	13.631514	8.37%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.793675	28.184071	35.54%	724	2006
	18.089801	20.793675	14.95%	823	2005
	13.503520	18.089801	33.96%	904	2004

120

Additional Contract Options Elected (Total 1.60%)

(Variable account charges of 1.60% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.888644	17.658499	11.14%	1,616	2006
	15.314957	15.888644	3.75%	5,158	2005
	14.041976	15.314957	9.07%	4,922	2004
	10.000000	14.041976	40.42%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.913148	15.564192	4.37%	0	2006
	13.957607	14.913148	6.85%	0	2005
	13.339769	13.957607	4.63%	0	2004
	10.000000	13.339769	33.40%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	17.001606	19.450049	14.40%	1,270	2006
	15.812072	17.001606	7.52%	1,365	2005
	13.940527	15.812072	13.43%	1,493	2004
	10.000000	13.940527	39.41%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.390535	17.717215	15.12%	2,942	2006
	14.952834	15.390535	2.93%	4,184	2005
	13.662722	14.952834	9.44%	4,184	2004
	10.000000	13.662722	36.63%	448	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.155414	20.402960	12.38%	166	2006
	17.302381	18.155414	4.93%	2,240	2005
	14.766948	17.302381	17.17%	2,240	2004
	10.000000	14.766948	47.67%	166	2003*

121

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.315119	17.604714	14.95%	0	2006
	14.890772	15.315119	2.85%	3,726	2005
	13.442526	14.890772	10.77%	3,726	2004
	10.000000	13.442526	34.43%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.290886	19.997509	22.75%	0	2006
	14.636650	16.290886	11.30%	0	2005
	12.959792	14.636650	12.94%	0	2004
	10.000000	12.959792	29.60%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.495190	15.353125	22.87%	5,621	2006
	11.239611	12.495190	11.17%	0	2005
	10.000000	11.239611	12.40%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.186722	13.234752	18.31%	3,197	2006
	10.000000	11.186722	11.87%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.210952	13.510297	-4.93%	0	2006
	14.161712	14.210952	0.35%	0	2005
	13.013813	14.161712	8.82%	316	2004
	10.000000	13.013813	30.14%	318	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.726464	18.332945	16.57%	3,633	2006
	15.241548	15.726464	3.18%	3,629	2005
	13.566392	15.241548	12.35%	3,631	2004
	10.000000	13.566392	35.66%	0	2003*

122

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.334020	12.143018	7.14%	0	2006
	10.000000	11.334020	13.34%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.813529	10.809888	-0.03%	244	2006
	10.819794	10.813529	-0.06%	245	2005
	10.391879	10.819794	4.12%	245	2004
	10.000000	10.391879	3.92%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.403088	20.719191	12.59%	1,294	2006
	17.439945	18.403088	5.52%	1,294	2005
	14.541108	17.439945	19.94%	1,294	2004
	10.000000	14.541108	45.41%	588	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.822632	16.804113	13.37%	2,922	2006
	14.423465	14.822632	2.77%	2,922	2005
	13.282860	14.423465	8.59%	3,179	2004
	10.000000	13.282860	32.83%	266	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.369024	15.287971	14.35%	1,236	2006
	13.048499	13.369024	2.46%	6,700	2005
	12.653727	13.048499	3.12%	6,700	2004
	10.000000	12.653727	26.54%	2,592	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.622711	15.914678	1.87%	0	2006
	15.040310	15.622711	3.87%	2,198	2005
	13.764492	15.040310	9.27%	2,198	2004
	10.000000	13.764492	37.64%	0	2003*

123

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.771489	16.931977	14.63%	2,416	2006
	14.326726	14.771489	3.10%	0	2005
	13.296363	14.326726	7.75%	0	2004
	10.000000	13.296363	32.96%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.652916	15.555400	13.93%	0	2006
	13.643002	13.652916	0.07%	0	2005
	12.944483	13.643002	5.40%	0	2004
	10.000000	12.944483	29.44%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.254148	2.54%	173	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.341756	10.575637	2.26%	274	2006
	10.406737	10.341756	-0.62%	1,979	2005
	10.236130	10.406737	1.67%	1,982	2004
	10.000000	10.236130	2.36%	1,882	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.572455	18.377949	18.02%	8,933	2006
	14.989922	15.572455	3.89%	10,483	2005
	13.695185	14.989922	9.45%	12,618	2004
	10.000000	13.695185	36.95%	975	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.577120	15.287281	4.87%	169	2006
	14.040855	14.577120	3.82%	170	2005
	13.837109	14.040855	1.47%	483	2004
	10.000000	13.837109	38.37%	471	2003*

124

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.263360	22.324984	15.89%	0	2006
	16.480203	19.263360	16.89%	0	2005
	14.780296	16.480203	11.50%	0	2004
	10.000000	14.780296	47.80%	582	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.870128	14.920770	15.93%	2,755	2006
	11.014450	12.870128	16.85%	3,582	2005
	10.000000	11.014450	10.14%	4,405	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.370082	19.046959	9.65%	4,798	2006
	15.132524	17.370082	14.79%	4,900	2005
	13.354150	15.132524	13.32%	5,620	2004
	10.000000	13.354150	33.54%	0	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.582306	10.844196	2.47%	15,088	2006
	10.553929	10.582306	0.27%	10,353	2005
	10.294225	10.553929	2.52%	9,981	2004
	10.000000	10.294225	2.94%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.404472	22.569273	10.61%	1,587	2006
	17.569807	20.404472	16.13%	4,908	2005
	14.323670	17.569807	22.66%	4,908	2004
	10.000000	14.323670	43.24%	0	2003*

125

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.769584	21.426839	14.16%	1,773	2006
	18.621989	18.769584	0.79%	3,516	2005
	16.624081	18.621989	12.02%	4,105	2004
	10.000000	16.624081	66.24%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.370886	15.343753	14.75%	0	2006
	10.000000	13.370886	33.71%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.681338	11.517879	7.83%	0	2006
	10.000000	10.681338	6.81%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.987647	12.077926	9.92%	0	2006
	10.000000	10.987647	9.88%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.195544	12.440804	11.12%	0	2006
	10.000000	11.195544	11.96%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.097057	10.97%	3,698	2006*

126

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.635223	16.867731	15.25%	10,154	2006
	14.379808	14.635223	1.78%	7,772	2005
	13.165549	14.379808	9.22%	7,855	2004
	10.000000	13.165549	31.66%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.754252	21.588889	15.11%	779	2006
	17.522146	18.754252	7.03%	4,783	2005
	14.389863	17.522146	21.77%	5,625	2004
	10.000000	14.389863	43.90%	199	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.668305	15.977560	26.12%	0	2006
	10.000000	12.668305	26.68%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.387393	20.779294	19.51%	198	2006
	16.038366	17.387393	8.41%	3,091	2005
	13.751167	16.038366	16.63%	3,377	2004
	10.000000	13.751167	37.51%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.465022	14.898644	19.52%	6,192	2006
	11.501699	12.465022	8.38%	4,944	2005
	10.000000	11.501699	15.02%	4,833	2004*

127

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.776034	10.855571	11.04%	0	2006
	10.000000	9.776034	-2.24%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	13.006046	14.251228	9.57%	0	2006
	12.276441	13.006046	5.94%	0	2005
	11.520606	12.276441	6.56%	0	2004
	10.000000	11.520606	15.21%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	16.012813	17.193769	7.38%	0	2006
	14.457079	16.012813	10.76%	0	2005
	12.454292	14.457079	16.08%	0	2004
	10.000000	12.454292	25.54%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.815277	31.552508	44.63%	0	2006
	16.802152	21.815277	29.84%	0	2005
	14.386862	16.802152	16.79%	0	2004
	10.000000	14.386862	43.87%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.776907	21.391393	44.76%	4,350	2006
	11.374522	14.776907	29.91%	0	2005
	10.000000	11.374522	13.75%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.353585	16.759641	9.16%	0	2006
	14.067422	15.353585	9.14%	0	2005
	12.170561	14.067422	15.59%	0	2004
	10.000000	12.170561	21.71%	0	2003*

128

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.952665	10.205378	2.54%	610	2006
	9.970148	9.952665	-0.18%	365	2005
	10.053922	9.970148	-0.83%	435	2004
	10.000000	10.053922	0.54%	5,739	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.871721	14.647444	5.59%	132	2006
	13.524972	13.871721	2.56%	132	2005
	12.611711	13.524972	7.24%	132	2004
	10.000000	12.611711	26.12%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.508758	18.390788	18.58%	4,721	2006
	14.802915	15.508758	4.77%	2,495	2005
	13.101256	14.802915	12.99%	2,495	2004
	10.000000	13.101256	31.01%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.100041	15.639468	3.57%	0	2006
	14.912765	15.100041	1.26%	0	2005
	13.546314	14.912765	10.09%	0	2004
	10.000000	13.546314	35.46%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.625396	13.999977	20.43%	725	2006
	10.000000	11.625396	16.25%	751	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	16.008068	18.032072	12.64%	822	2006
	14.342226	16.008068	11.61%	822	2005
	12.561301	14.342226	14.18%	980	2004
	10.000000	12.561301	25.61%	164	2003*

129

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.538079	12.595551	9.17%	0	2006
	10.000000	11.538079	15.38%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.349244	16.055160	11.89%	720	2006
	13.646139	14.349244	5.15%	713	2005
	12.242250	13.646139	11.47%	0	2004
	10.000000	12.242250	22.42%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.444700	4.45%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.426790	4.27%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.726774	7.27%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.254148	2.54%	173	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	13.010580	14.160558	8.84%	714	2006
	12.914147	13.010580	0.75%	729	2005
	11.920518	12.914147	8.34%	1,028	2004
	10.000000	11.920518	19.21%	1,043	2003*

130

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.428702	11.349994	8.83%	0	2006
	10.000000	10.428702	4.29%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.743289	34.532168	34.14%	0	2006
	19.769023	25.743289	30.22%	1,754	2005
	16.681255	19.769023	18.51%	1,754	2004
	10.000000	16.681255	66.81%	129	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.295088	20.553200	34.38%	2,311	2006
	11.731602	15.295088	30.38%	0	2005
	10.000000	11.731602	17.32%	194	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.557753	22.375845	35.14%	0	2006
	15.845755	16.557753	4.49%	0	2005
	12.429469	15.845755	27.49%	0	2004
	10.000000	12.429469	24.29%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.228647	16.446395	1.34%	284	2006
	15.307615	16.228647	6.02%	284	2005
	13.746313	15.307615	11.36%	384	2004
	10.000000	13.746313	37.46%	98	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.466836	22.431312	15.23%	222	2006
	19.247126	19.466836	1.14%	2,037	2005
	16.718464	19.247126	15.12%	2,156	2004
	10.000000	16.718464	67.18%	128	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.879084	20.761119	9.97%	166	2006
	17.128629	18.879084	10.22%	162	2005
	14.654395	17.128629	16.88%	79	2004
	10.000000	14.654395	46.54%	0	2003*

131

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.443115	21.793953	18.17%	0	2006
	16.917366	18.443115	9.02%	0	2005
	14.236433	16.917366	18.83%	0	2004
	10.000000	14.236433	42.36%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.592487	15.717105	0.80%	0	2006
	14.646138	15.592487	6.46%	0	2005
	13.837460	14.646138	5.84%	0	2004
	10.000000	13.837460	38.37%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.479012	10.561063	0.78%	748	2006
	9.838727	10.479012	6.51%	748	2005
	10.000000	9.838727	-1.61%	739	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.275946	16.637183	8.91%	0	2006
	15.644906	15.275946	-2.36%	0	2005
	15.282977	15.644906	2.37%	0	2004
	10.000000	15.282977	52.83%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.591089	11.589142	9.42%	0	2006
	10.846894	10.591089	-2.36%	0	2005
	10.000000	10.846894	8.47%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.383839	10.559563	1.69%	3,032	2006
	10.218714	10.383839	1.62%	3,018	2005
	10.056798	10.218714	1.61%	3,757	2004
	10.000000	10.056798	0.57%	1,856	2003*

132

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.240596	11.743052	4.47%	0	2006
	11.057226	11.240596	1.66%	0	2005
	10.737468	11.057226	2.98%	0	2004
	10.000000	10.737468	7.37%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.417219	13.248273	6.69%	6,963	2006
	12.076800	12.417219	2.82%	6,968	2005
	11.453215	12.076800	5.44%	22,554	2004
	10.000000	11.453215	14.53%	2,190	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.653042	14.960495	9.58%	46,075	2006
	13.170541	13.653042	3.66%	61,609	2005
	12.219426	13.170541	7.78%	47,090	2004
	10.000000	12.219426	22.19%	1,488	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.172866	17.101815	12.71%	63,297	2006
	14.400446	15.172866	5.36%	64,203	2005
	13.055735	14.400446	10.30%	37,161	2004
	10.000000	13.055735	30.56%	417	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.357271	18.811454	15.00%	37,983	2006
	15.400938	16.357271	6.21%	43,303	2005
	13.726044	15.400938	12.20%	38,443	2004
	10.000000	13.726044	37.26%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.365730	16.578910	7.90%	2,940	2006
	14.247149	15.365730	7.85%	2,988	2005
	12.567045	14.247149	13.37%	2,459	2004
	10.000000	12.567045	25.67%	0	2003*

133

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.929517	10.213733	2.86%	21,836	2006
	9.828303	9.929517	1.03%	2,324	2005
	9.907723	9.828303	-0.80%	1,281	2004
	10.000000	9.907723	-0.92%	994	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.904674	16.632365	11.59%	587	2006
	14.150175	14.904674	5.33%	631	2005
	13.128576	14.150175	7.78%	0	2004
	10.000000	13.128576	31.29%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.099172	17.720367	-2.09%	0	2006
	16.466194	18.099172	9.92%	3,445	2005
	14.927789	16.466194	10.31%	3,445	2004
	10.000000	14.927789	49.28%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.846210	8.46%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.863159	21.516083	20.45%	97	2006
	16.238833	17.863159	10.00%	2,315	2005
	13.752384	16.238833	18.08%	2,315	2004
	10.000000	13.752384	37.52%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.613064	15.192857	20.45%	5,842	2006
	11.464644	12.613064	10.02%	437	2005
	10.000000	11.464644	14.65%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.983657	19.446772	8.14%	0	2006
	16.302727	17.983657	10.31%	0	2005
	14.315619	16.302727	13.88%	0	2004
	10.000000	14.315619	43.16%	0	2003*

134

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.051165	18.252744	13.72%	519	2006
	15.691383	16.051165	2.29%	669	2005
	13.619525	15.691383	15.21%	419	2004
	10.000000	13.619525	36.20%	368	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.503052	11.867168	3.17%	1,774	2006
	11.440175	11.503052	0.55%	1,902	2005
	10.913127	11.440175	4.83%	2,058	2004
	10.000000	10.913127	9.13%	921	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.767643	15.648279	5.96%	3,055	2006
	14.311213	14.767643	3.19%	3,157	2005
	13.641397	14.311213	4.91%	3,024	2004
	10.000000	13.641397	36.41%	151	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.927265	14.934359	15.53%	1,711	2006
	11.518744	12.927265	12.23%	1,711	2005
	10.000000	11.518744	15.19%	1,695	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.858496	22.934794	15.49%	579	2006
	17.692814	19.858496	12.24%	1,328	2005
	15.125050	17.692814	16.98%	1,328	2004
	10.000000	15.125050	51.25%	1,328	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.986985	13.958843	7.48%	463	2006
	12.938142	12.986985	0.38%	1,055	2005
	12.092593	12.938142	6.99%	1,055	2004
	10.000000	12.092593	20.93%	697	2003*

135

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.641582	16.534344	12.93%	4,566	2006
	14.071167	14.641582	4.05%	7,853	2005
	13.101729	14.071167	7.40%	8,658	2004
	10.000000	13.101729	31.02%	1,650	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.118454	21.571062	12.83%	828	2006
	17.708055	19.118454	7.96%	842	2005
	15.099793	17.708055	17.27%	835	2004
	10.000000	15.099793	51.00%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.916589	15.873489	14.06%	0	2006
	13.439563	13.916589	3.55%	0	2005
	12.292191	13.439563	9.33%	0	2004
	10.000000	12.292191	22.92%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.983722	20.088657	25.68%	104	2006
	14.477008	15.983722	10.41%	104	2005
	12.661737	14.477008	14.34%	104	2004
	10.000000	12.661737	26.62%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.605700	13.078796	3.75%	70	2006
	12.120096	12.605700	4.01%	70	2005
	11.726971	12.120096	3.35%	71	2004
	10.000000	11.726971	17.27%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.194685	12.043722	7.58%	0	2006
	10.000000	11.194685	11.95%	0	2005*

136

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.523778	12.287032	16.75%	3,400	2006
	10.000000	10.523778	5.24%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.020034	10.257077	2.37%	0	2006
	10.000000	10.020034	0.20%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.585324	10.787340	1.91%	3,086	2006
	10.349803	10.585324	2.28%	3,256	2005
	10.106459	10.349803	2.41%	2,839	2004
	10.000000	10.106459	1.06%	969	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.026650	16.384383	9.04%	237	2006
	13.617677	15.026650	10.35%	251	2005
	12.571945	13.617677	8.32%	266	2004
	10.000000	12.571945	25.72%	280	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.762036	28.126967	35.47%	529	2006
	18.071423	20.762036	14.89%	529	2005
	13.496647	18.071423	33.90%	701	2004
	10.000000	13.496647	34.97%	462	2003*

137

Additional Contract Options Elected (Total 1.65%)

(Variable account charges of 1.65% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.865481	17.623816	11.08%	0	2006
	15.300376	15.865481	3.69%	0	2005
	14.035732	15.300376	9.01%	0	2004
	10.000000	14.035732	40.36%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.891411	15.533626	4.31%	0	2006
	13.944319	14.891411	6.79%	0	2005
	13.333845	13.944319	4.58%	0	2004
	10.000000	13.333845	33.34%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.976808	19.411851	14.34%	0	2006
	15.797013	16.976808	7.47%	0	2005
	13.934334	15.797013	13.37%	0	2004
	10.000000	13.934334	39.34%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.368090	17.682415	15.06%	371	2006
	14.938595	15.368090	2.88%	364	2005
	13.656648	14.938595	9.39%	363	2004
	10.000000	13.656648	36.57%	353	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.128936	20.362893	12.32%	0	2006
	17.285895	18.128936	4.88%	0	2005
	14.760375	17.285895	17.11%	0	2004
	10.000000	14.760375	47.60%	0	2003*

138

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.292793	17.570143	14.89%	0	2006
	14.876592	15.292793	2.80%	0	2005
	13.436555	14.876592	10.72%	0	2004
	10.000000	13.436555	34.37%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.267090	19.958174	22.69%	0	2006
	14.622677	16.267090	11.25%	0	2005
	12.954014	14.622677	12.88%	0	2004
	10.000000	12.954014	29.54%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.484669	15.332411	22.81%	0	2006
	11.235831	12.484669	11.11%	0	2005
	10.000000	11.235831	12.36%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.182961	13.223600	18.25%	0	2006
	10.000000	11.182961	11.83%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.190218	13.483747	-4.98%	0	2006
	14.148213	14.190218	0.30%	0	2005
	13.008019	14.148213	8.77%	0	2004
	10.000000	13.008019	30.08%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.703519	18.296920	16.51%	238	2006
	15.227029	15.703519	3.13%	236	2005
	13.560360	15.227029	12.29%	235	2004
	10.000000	13.560360	35.60%	245	2003*

139

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.330208	12.132766	7.08%	0	2006
	10.000000	11.330208	13.30%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.797069	10.787966	-0.08%	0	2006
	10.808802	10.797069	-0.11%	0	2005
	10.386599	10.808802	4.06%	0	2004
	10.000000	10.386599	3.87%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.376258	20.678506	12.53%	0	2006
	17.423346	18.376258	5.47%	0	2005
	14.534647	17.423346	19.87%	0	2004
	10.000000	14.534647	45.35%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.801006	16.771098	13.31%	0	2006
	14.409719	14.801006	2.72%	0	2005
	13.276956	14.409719	8.53%	0	2004
	10.000000	13.276956	32.77%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.349526	15.257937	14.30%	0	2006
	13.036073	13.349526	2.40%	0	2005
	12.648103	13.036073	3.07%	0	2004
	10.000000	12.648103	26.48%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.599935	15.883417	1.82%	0	2006
	15.025992	15.599935	3.82%	0	2005
	13.758382	15.025992	9.21%	0	2004
	10.000000	13.758382	37.58%	0	2003*

140

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.749944	16.898710	14.57%	0	2006
	14.313075	14.749944	3.05%	0	2005
	13.290443	14.313075	7.69%	0	2004
	10.000000	13.290443	32.90%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.632999	15.524848	13.88%	0	2006
	13.630001	13.632999	0.02%	0	2005
	12.938731	13.630001	5.34%	0	2004
	10.000000	12.938731	29.39%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.250695	2.51%	368	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.326635	10.554827	2.21%	0	2006
	10.396791	10.326635	-0.67%	0	2005
	10.231557	10.396791	1.61%	0	2004
	10.000000	10.231557	2.32%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.549744	18.341851	17.96%	0	2006
	14.975649	15.549744	3.83%	0	2005
	13.689096	14.975649	9.40%	0	2004
	10.000000	13.689096	36.89%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.555865	15.257253	4.82%	0	2006
	14.027481	14.555865	3.77%	0	2005
	13.830954	14.027481	1.42%	0	2004
	10.000000	13.830954	38.31%	0	2003*

141

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.235244	22.281112	15.83%	0	2006
	16.464488	19.235244	16.83%	0	2005
	14.773707	16.464488	11.44%	0	2004
	10.000000	14.773707	47.74%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.859292	14.900646	15.87%	0	2006
	11.010757	12.859292	16.79%	0	2005
	10.000000	11.010757	10.11%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.344751	19.009561	9.60%	4,832	2006
	15.118116	17.344751	14.73%	227	2005
	13.348206	15.118116	13.26%	245	2004
	10.000000	13.348206	33.48%	244	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.566867	10.822894	2.42%	835	2006
	10.543870	10.566867	0.22%	0	2005
	10.289636	10.543870	2.47%	0	2004
	10.000000	10.289636	2.90%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.374726	22.524947	10.55%	1,597	2006
	17.553083	20.374726	16.07%	0	2005
	14.317299	17.553083	22.60%	0	2004
	10.000000	14.317299	43.17%	0	2003*

142

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.742199	21.384742	14.10%	0	2006
	18.604251	18.742199	0.74%	0	2005
	16.616684	18.604251	11.96%	0	2004
	10.000000	16.616684	66.17%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.366391	15.330811	14.70%	0	2006
	10.000000	13.366391	33.66%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.677738	11.508159	7.78%	0	2006
	10.000000	10.677738	6.78%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.983946	12.067730	9.87%	0	2006
	10.000000	10.983946	9.84%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.191771	12.430320	11.07%	0	2006
	10.000000	11.191771	11.92%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.093323	10.93%	6,974	2006*

143

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.613875	16.834586	15.20%	381	2006
	14.366106	14.613875	1.72%	384	2005
	13.159690	14.366106	9.17%	368	2004
	10.000000	13.159690	31.60%	370	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.726904	21.546487	15.06%	1,658	2006
	17.505456	18.726904	6.98%	0	2005
	14.383471	17.505456	21.71%	0	2004
	10.000000	14.383471	43.83%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.664040	15.964102	26.06%	0	2006
	10.000000	12.664040	26.64%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.362045	20.738490	19.45%	0	2006
	16.023099	17.362045	8.36%	0	2005
	13.745055	16.023099	16.57%	0	2004
	10.000000	13.745055	37.45%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.454527	14.878566	19.46%	778	2006
	11.497838	12.454527	8.32%	0	2005
	10.000000	11.497838	14.98%	0	2004*

144

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.772731	10.846399	10.99%	0	2006
	10.000000	9.772731	-2.27%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.987069	14.223228	9.52%	0	2006
	12.264747	12.987069	5.89%	0	2005
	11.515483	12.264747	6.51%	0	2004
	10.000000	11.515483	15.15%	0	2003*

Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.989434	17.159960	7.32%	0	2006
	14.443288	15.989434	10.70%	0	2005
	12.448743	14.443288	16.02%	0	2004
	10.000000	12.448743	24.49%	0	2003*

Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.783453	31.490521	44.56%	0	2006
	16.786144	21.783453	29.77%	0	2005
	14.380462	16.786144	16.73%	0	2004
	10.000000	14.380462	43.80%	0	2003*

Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.764488	21.362595	44.69%	2,844	2006
	11.370699	14.764488	29.85%	0	2005
	10.000000	11.370699	13.71%	0	2004*


Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.332818	16.728502	9.10%	0	2006
	14.055507	15.332818	9.09%	0	2005
	12.166439	14.055507	15.53%	0	2004
	10.000000	12.166439	21.66%	0	2003*

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.938135	10.185319	2.49%	533	2006
	9.960634	9.938135	-0.23%	0	2005
	10.049442	9.960634	-0.88%	0	2004
	10.000000	10.049442	0.49%	0	2003*

145

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.851478	14.618661	5.54%	0	2006
	13.512077	13.851478	2.51%	0	2005
	12.606092	13.512077	7.19%	0	2004
	10.000000	12.606092	26.06%	0	2003*


MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.486129	18.354658	18.52%	4,241	2006
	14.788799	15.486129	4.72%	0	2005
	13.095420	14.788799	12.93%	0	2004
	10.000000	13.095420	30.95%	0	2003*

Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.078018	15.608741	3.52%	0	2006
	14.898556	15.078018	1.20%	0	2005
	13.540292	14.898556	10.03%	0	2004
	10.000000	13.540292	35.40%	0	2003*


Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.621495	13.988187	20.36%	4,282	2006
	10.000000	11.621495	16.21%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.983705	17.995503	12.59%	0	2006
	14.327655	15.983705	11.56%	0	2005
	12.554923	14.327655	14.12%	0	2004
	10.000000	12.554923	25.55%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.534192	12.584910	9.11%	0	2006
	10.000000	11.534192	15.34%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.329818	16.025299	11.83%	1,541	2006
	13.634572	14.329818	5.10%	0	2005
	12.238102	13.634572	11.41%	0	2004
	10.000000	12.238102	22.38%	0	2003*

146

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.441173	4.41%	13,835	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.423276	4.23%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.723164	7.23%	7,340	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.250695	2.51%	368	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.991591	14.132721	8.78%	0	2006
	12.901837	12.991591	0.70%	0	2005
	11.915207	12.901837	8.28%	0	2004
	10.000000	11.915207	19.15%	0	2003*


NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.425180	11.340421	8.78%	0	2006
	10.000000	10.425180	4.25%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.705754	34.464366	34.07%	0	2006
	19.750194	25.705754	30.15%	0	2005
	16.673844	19.750194	18.45%	0	2004
	10.000000	16.673844	66.74%	0	2003*

147

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.282194	20.525465	34.31%	0	2006
	11.727649	15.282194	30.31%	0	2005
	10.000000	11.727649	17.28%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.533604	22.331912	35.07%	0	2006
	15.830660	16.533604	4.44%	0	2005
	12.423943	15.830660	27.42%	0	2004
	10.000000	12.423943	24.24%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.204980	16.414091	1.29%	0	2006
	15.293035	16.204980	5.96%	0	2005
	13.740197	15.293035	11.30%	0	2004
	10.000000	13.740197	37.40%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ					2006
	19.228790	19.438441	1.09%	0	2005
	16.711034	19.228790	15.07%	0	2004
	10.000000	16.711034	67.11%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	19.438441	22.387257	15.17%	0	2006
	17.112344	18.851589	10.16%	0	2005
	14.647889	17.112344	16.82%	0	2004
	10.000000	14.647889	46.48%	0	2003*

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.416229	21.751141	18.11%	0	2006
	16.901261	18.416229	8.96%	0	2005
	14.230107	16.901261	18.77%	0	2004
	10.000000	14.230107	42.30%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.569751	15.686224	0.75%	0	2006
	14.632191	15.569751	6.41%	0	2005
	13.831311	14.632191	5.79%	0	2004
	10.000000	13.831311	38.31%	0	2003*

148

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.470190	10.546816	0.73%	0	2006
	9.835422	10.470190	6.45%	0	2005
	10.000000	9.835422	-1.65%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.253641	16.604458	8.86%	0	2006
	15.630001	15.253641	-2.41%	0	2005
	15.276176	15.630001	2.32%	0	2004
	10.000000	15.276176	52.76%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.582151	11.573495	9.37%	0	2006
	10.843249	10.582151	-2.41%	0	2005
	10.000000	10.843249	8.43%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.368679	10.538811	1.64%	857	2006
	10.208975	10.368679	1.56%	0	2005
	10.052319	10.208975	1.56%	0	2004
	10.000000	10.052319	0.52%	0	2003*


NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.224201	11.719973	4.42%	0	2006
	11.046699	11.224201	1.61%	0	2005
	10.732694	11.046699	2.93%	0	2004
	10.000000	10.732694	7.33%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.399089	13.222235	6.64%	765	2006
	12.065285	12.399089	2.77%	766	2005
	11.448112	12.065285	5.39%	767	2004
	10.000000	11.448112	14.48%	769	2003*

149

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.633120	14.931111	9.52%	3,109	2006
	13.157999	13.633120	3.61%	3,109	2005
	12.213989	13.157999	7.73%	0	2004
	10.000000	12.213989	22.14%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.150749	17.068231	12.66%	8,327	2006
	14.386732	15.150749	5.31%	22,184	2005
	13.049930	14.386732	10.24%	4,052	2004
	10.000000	13.049930	30.50%	0	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.333409	18.774488	14.95%	5,797	2006
	15.386263	16.333409	6.16%	3,975	2005
	13.719936	15.386263	12.15%	3,975	2004
	10.000000	13.719936	37.20%	0	2003*

NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.344932	16.548079	7.84%	1,391	2006
	14.235076	15.344932	7.80%	716	2005
	12.562778	14.235076	13.31%	717	2004
	10.000000	12.562778	25.63%	718	2003*

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.914831	10.193460	2.81%	0	2006
	9.818741	9.914831	0.98%	0	2005
	9.903114	9.818741	-0.85%	0	2004
	10.000000	9.903114	-0.97%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.882948	16.599700	11.54%	1,255	2006
	14.136709	14.882948	5.28%	0	2005
	13.122737	14.136709	7.73%	0	2004
	10.000000	13.122737	31.23%	0	2003*

NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.072787	17.685563	-2.14%	0	2006
	16.450514	18.072787	9.86%	0	2005
	14.921160	16.450514	10.25%	0	2004
	10.000000	14.921160	49.21%	0	2003*

150

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.842547	8.43%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.838983	21.476067	20.39%	0	2006
	16.225077	17.838983	9.95%	0	2005
	13.747723	16.225077	18.02%	0	2004
	10.000000	13.747723	37.48%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.602422	15.172347	20.39%	755	2006
	11.460775	12.602422	9.96%	0	2005
	10.000000	11.460775	14.61%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.957407	19.408542	8.08%	0	2006
	16.287185	17.957407	10.25%	0	2005
	14.309252	16.287185	13.82%	0	2004
	10.000000	14.309252	43.09%	0	2003*

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.027747	18.216874	13.66%	932	2006
	15.676431	16.027747	2.24%	0	2005
	13.613463	15.676431	15.15%	0	2004
	10.000000	13.613463	36.13%	0	2003*

NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.486246	11.843820	3.11%	0	2006
	11.429252	11.486246	0.50%	0	2005
	10.908261	11.429252	4.78%	0	2004
	10.000000	10.908261	9.08%	0	2003*

Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.746098	15.617527	5.91%	0	2006
	14.297573	14.746098	3.14%	0	2005
	13.635328	14.297573	4.86%	0	2004
	10.000000	13.635328	36.35%	0	2003*

151

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.916367	14.914215	15.47%	0	2006
	11.514872	12.916367	12.17%	0	2005
	10.000000	11.514872	15.15%	0	2004*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.829567	22.889771	15.43%	0	2006
	17.675988	19.829567	12.18%	0	2005
	15.118336	17.675988	16.92%	0	2004
	10.000000	15.118336	51.18%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.968040	13.931414	7.43%	0	2006
	12.925822	12.968040	0.33%	0	2005
	12.087210	12.925822	6.94%	0	2004
	10.000000	12.087210	20.87%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.620224	16.501877	12.87%	1,371	2006
	14.057759	14.620224	4.00%	0	2005
	13.095891	14.057759	7.34%	0	2004
	10.000000	13.095891	30.96%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.090561	21.528680	12.77%	1,922	2006
	17.691186	19.090561	7.91%	0	2005
	15.093088	17.691186	17.21%	0	2004
	10.000000	15.093088	50.93%	0	2003*


Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.897765	15.843988	14.00%	0	2006
	13.428187	13.897765	3.50%	0	2005
	12.288020	13.428187	9.28%	0	2004
	10.000000	12.288020	22.88%	0	2003*

Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.962094	20.051297	25.62%	0	2006
	14.464749	15.962094	10.35%	0	2005
	12.657435	14.464749	14.28%	0	2004
	10.000000	12.657435	26.57%	0	2003*

152

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.588642	13.054478	3.70%	0	2006
	12.109833	12.588642	3.95%	0	2005
	11.722996	12.109833	3.30%	0	2004
	10.000000	11.722996	17.23%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.190908	12.033564	7.53%	0	2006
	10.000000	11.190908	11.91%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.520229	12.276666	16.70%	0	2006
	10.000000	10.520229	5.20%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.016659	10.248424	2.31%	0	2006
	10.000000	10.016659	0.17%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.570988	10.767281	1.86%	672	2006
	10.341028	10.570988	2.22%	0	2005
	10.103021	10.341028	2.36%	0	2004
	10.000000	10.103021	1.03%	0	2003*


The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	15.003777	16.351154	8.98%	0	2006
	13.603850	15.003777	10.29%	0	2005
	12.565569	13.603850	8.26%	0	2004
	10.000000	12.565569	25.66%	0	2003*


The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.730481	28.069986	35.40%	0	2006
	18.053101	20.730481	14.83%	0	2005
	13.489811	18.053101	33.83%	0	2004
	10.000000	13.489811	34.90%	0	2003*

153

Additional Contract Options Elected (Total 1.70%)

(Variable account charges of 1.70% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.842324	17.589180	11.03%	636	2006
	15.285794	15.842324	3.64%	636	2005
	14.029489	15.285794	8.95%	636	2004
	10.000000	14.029489	40.29%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.869670	15.503092	4.26%	508	2006
	13.931024	14.869670	6.74%	0	2005
	13.327906	13.931024	4.53%	0	2004
	10.000000	13.327906	33.28%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.952019	19.373679	14.29%	0	2006
	15.781943	16.952019	7.41%	0	2005
	13.928124	15.781943	13.31%	0	2004
	10.000000	13.928124	39.28%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.345688	17.647693	15.00%	0	2006
	14.924373	15.345688	2.82%	0	2005
	13.650578	14.924373	9.33%	0	2004
	10.000000	13.650578	36.51%	0	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.102480	20.322877	12.27%	0	2006
	17.269419	18.102480	4.82%	0	2005
	14.753808	17.269419	17.05%	0	2004
	10.000000	14.753808	47.54%	0	2003*

154

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.270469	17.535595	14.83%	0	2006
	14.862410	15.270469	2.75%	0	2005
	13.430573	14.862410	10.66%	0	2004
	10.000000	13.430573	34.31%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.243360	19.918963	22.63%	0	2006
	14.608746	16.243360	11.19%	0	2005
	12.948252	14.608746	12.82%	0	2004
	10.000000	12.948252	29.48%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.474122	15.311694	22.75%	0	2006
	11.232049	12.474122	11.06%	0	2005
	10.000000	11.232049	12.32%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.179195	13.212452	18.19%	0	2006
	10.000000	11.179195	11.79%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.169510	13.457245	-5.03%	0	2006
	14.134733	14.169510	0.25%	0	2005
	13.002232	14.134733	8.71%	0	2004
	10.000000	13.002232	30.02%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.680601	18.260956	16.46%	3,966	2006
	15.212510	15.680601	3.08%	3,641	2005
	13.544322	15.212510	12.23%	3,760	2004
	10.000000	13.554322	35.54%	1,185	2003*

155

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.326390	12.122531	7.03%	0	2006
	10.000000	11.326390	13.26%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.780625	10.766075	-0.13%	1,402	2006
	10.797814	10.780625	-0.16%	1,402	2005
	10.381319	10.797814	4.01%	1,402	2004
	10.000000	10.381319	3.81%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.349446	20.637860	12.47%	0	2006
	17.406733	18.349446	5.42%	0	2005
	14.528180	17.406733	19.81%	0	2004
	10.000000	14.528180	45.28%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.779410	16.738134	13.25%	876	2006
	14.395982	14.779410	2.66%	922	2005
	13.271042	14.395982	8.48%	963	2004
	10.000000	13.271042	32.71%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.330040	15.227945	14.24%	0	2006
	13.023645	13.330040	2.35%	0	2005
	12.642473	13.023645	3.02%	0	2004
	10.000000	12.642473	26.42%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.577163	15.852187	1.77%	0	2006
	15.011664	15.577163	3.77%	0	2005
	13.752253	15.011664	9.16%	0	2004
	10.000000	13.752253	37.52%	0	2003*

156

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.728439	16.865527	14.51%	0	2006
	14.299453	14.728439	3.00%	0	2005
	13.284540	14.299453	7.64%	0	2004
	10.000000	12.284540	32.85%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.613103	15.494317	13.82%	0	2006
	13.617010	13.613103	-0.03%	0	2005
	12.932963	13.617010	5.29%	0	2004
	10.000000	12.932963	29.33%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.247234	2.47%	2,985	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.311577	10.534096	2.16%	0	2006
	10.386894	10.311577	-0.73%	0	2005
	10.227007	10.386894	1.56%	0	2004
	10.000000	10.227007	2.27%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.527052	18.305796	17.90%	1,918	2006
	14.961372	15.527052	3.78%	2,029	2005
	13.683001	14.961372	9.34%	1,870	2004
	10.000000	13.683001	36.83%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.534623	15.227262	4.77%	0	2006
	14.014115	14.534623	3.71%	0	2005
	13.824807	14.014115	1.37%	0	2004
	10.000000	13.824807	38.25%	0	2003*

157

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.207179	22.237317	15.78%	0	2006
	16.448793	19.207179	16.77%	0	2005
	14.767132	16.448793	11.39%	0	2004
	10.000000	14.767132	47.67%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.848462	14.880550	15.82%	0	2006
	11.007058	12.848462	16.73%	0	2005
	10.000000	11.007058	10.07%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.319436	18.972190	9.54%	3,255	2006
	15.103695	17.319436	14.67%	3,256	2005
	13.342259	15.103695	13.20%	2,988	2004
	10.000000	13.342259	33.42%	1,803	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.551419	10.801590	2.37%	11,456	2006
	10.533806	10.551419	0.17%	1,806	2005
	10.285049	10.533806	2.42%	1,209	2004
	10.000000	10.285049	2.85%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.344994	22.480669	10.50%	2,836	2006
	17.536354	20.344994	16.02%	2,749	2005
	14.310920	17.536354	22.54%	2,882	2004
	10.000000	14.310920	43.11%	0	2003*

158

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.714880	21.342734	14.04%	374	2006
	18.586546	18.714880	0.69%	374	2005
	16.609312	18.586546	11.90%	387	2004
	10.000000	16.609312	66.09%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.361898	15.317890	14.64%	0	2006
	10.000000	13.361898	33.62%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.674147	11.498450	7.72%	0	2006
	10.000000	10.674147	6.74%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.980252	12.057567	9.81%	0	2006
	10.000000	10.980252	9.80%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.188000	12.419828	11.01%	0	2006
	10.000000	11.188000	11.88%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.089575	10.90%	957	2006*

159

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.592554	16.801516	15.14%	6,000	2006
	14.352427	14.592554	1.67%	6,161	2005
	13.153838	14.352427	9.11%	5,449	2004
	10.000000	13.153838	31.54%	1,824	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.699566	21.504134	15.00%	0	2006
	17.488770	18.699566	6.92%	0	2005
	14.377069	17.488770	21.64%	0	2004
	10.000000	14.377069	43.77%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.659782	15.950638	25.99%	0	2006
	10.000000	12.659782	26.60%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.336712	20.697739	19.39%	0	2006
	16.007833	17.336712	8.30%	0	2005
	13.738938	16.007833	16.51%	0	2004
	10.000000	13.738938	37.39%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.444050	14.858498	19.40%	7,225	2006
	11.493980	12.444050	8.27%	402	2005
	10.000000	11.493980	14.94%	0	2004*

160

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.769439	10.837251	10.93%	0	2006
	10.000000	9.769439	-2.31%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.968104	14.195250	9.46%	0	2006
	12.253040	12.968104	5.84%	0	2005
	11.510347	12.253040	6.45%	0	2004
	10.000000	11.510347	15.10%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.966132	17.126273	7.27%	1,799	2006
	14.429549	15.966132	10.65%	1,920	2005
	12.443207	14.429549	15.96%	2,050	2004
	10.000000	12.443207	24.43%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.751682	31.428655	44.49%	0	2006
	16.770150	21.751682	29.70%	0	2005
	14.374069	16.770150	16.67%	0	2004
	10.000000	14.374069	43.74%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.752026	21.333757	44.62%	2,031	2006
	11.366872	14.752026	29.78%	0	2005
	10.000000	11.366872	13.67%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.312069	16.697390	9.05%	0	2006
	14.043607	15.312069	9.03%	0	2005
	12.162319	14.043607	15.47%	0	2004
	10.000000	12.162319	21.62%	0	2003*

161

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.923615	10.165281	2.44%	9,193	2006
	9.951131	9.923615	-0.28%	617	2005
	10.044958	9.951131	-0.93%	617	2004
	10.000000	10.044958	0.45%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.831269	14.589933	5.49%	0	2006
	13.499205	13.831269	2.46%	0	2005
	12.600490	13.499205	7.13%	0	2004
	10.000000	12.600490	26.00%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.463522	18.318570	18.46%	0	2006
	14.774696	15.463522	4.66%	0	2005
	13.089582	14.774696	12.87%	0	2004
	10.000000	13.089582	30.90%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.056025	15.578070	3.47%	0	2006
	14.884370	15.056025	1.15%	0	2005
	13.534262	14.884370	9.98%	0	2004
	10.000000	13.534262	35.34%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.617583	13.976396	20.30%	14,564	2006
	10.000000	11.617583	16.18%	621	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.959385	17.959004	12.53%	318	2006
	14.313092	15.959385	11.50%	318	2005
	12.548541	14.313092	14.06%	318	2004
	10.000000	12.548541	25.49%	318	2003*

162

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.530309	12.574304	9.05%	0	2006
	10.000000	11.530309	15.30%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.310433	15.995506	11.78%	15,636	2006
	13.623033	14.310433	5.05%	780	2005
	12.233952	13.623033	11.35%	0	2004
	10.000000	12.233952	22.34%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.437649	4.38%	13,971	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.419772	4.20%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.719544	7.20%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.247234	2.47%	2,985	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.972635	14.104945	8.73%	0	2006
	12.889538	12.972635	0.64%	0	2005
	11.909907	12.889538	8.23%	0	2004
	10.000000	11.909907	19.10%	0	2003*

163

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.421681	11.330863	8.72%	0	2006
	10.000000	10.421681	4.22%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.668285	34.396680	34.00%	0	2006
	19.731390	25.668285	30.09%	0	2005
	16.666436	19.731390	18.39%	0	2004
	10.000000	16.666436	66.66%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.269326	20.497800	34.24%	0	2006
	11.723703	15.269326	30.24%	0	2005
	10.000000	11.723703	17.24%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.509476	22.288014	35.00%	0	2006
	15.815578	16.509476	4.39%	0	2005
	12.418412	15.815578	27.36%	0	2004
	10.000000	12.418412	24.18%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.181325	16.381818	1.24%	0	2006
	15.278441	16.181325	5.91%	0	2005
	13.734078	15.278441	11.24%	0	2004
	10.000000	13.734078	37.34%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.410077	22.343246	15.11%	0	2006
	19.210467	19.410077	1.04%	0	2005
	16.703594	19.210467	15.01%	0	2004
	10.000000	16.703594	67.04%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.824087	20.679636	9.86%	1,960	2006
	17.096036	18.824087	10.11%	101	2005
	14.641372	17.096036	16.77%	0	2004
	10.000000	14.641372	46.41%	0	2003*

164

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.389335	21.708380	18.05%	0	2006
	16.885141	18.389335	8.91%	0	2005
	14.223768	16.885141	18.71%	0	2004
	10.000000	14.223768	42.24%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.547017	15.655374	0.70%	0	2006
	14.618242	15.547017	6.35%	0	2005
	13.825156	14.618242	5.74%	0	2004
	10.000000	13.825156	38.25%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.461370	10.532581	0.68%	0	2006
	9.832124	10.461370	6.40%	0	2005
	10.000000	9.832124	-1.68%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.231396	16.571843	8.80%	0	2006
	15.615119	15.231396	-2.46%	0	2005
	15.269390	15.615119	2.26%	0	2004
	10.000000	15.269390	52.69%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.573230	11.557869	9.31%	0	2006
	10.839607	10.573230	-2.46%	0	2005
	10.000000	10.839607	8.40%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.353547	10.518089	1.59%	12,596	2006
	10.199242	10.353547	1.51%	2,776	2005
	10.047839	10.199242	1.51%	2,256	2004
	10.000000	10.047839	0.48%	0	2003*

165

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.207819	11.696954	4.36%	0	2006
	11.036156	11.207819	1.56%	0	2005
	10.727911	11.036156	2.87%	0	2004
	10.000000	10.727911	7.28%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.380997	13.196251	6.58%	6,367	2006
	12.053788	12.380997	2.71%	6,367	2005
	11.443024	12.053788	5.34%	0	2004
	10.000000	11.443024	14.43%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.613200	14.901735	9.47%	152,270	2006
	13.145442	13.613200	3.56%	50,727	2005
	12.208544	13.145442	7.67%	32,727	2004
	10.000000	12.208544	22.09%	4,815	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.128634	17.034678	12.60%	345,329	2006
	14.373021	15.128634	5.26%	187,358	2005
	13.044111	14.373021	10.19%	101,081	2004
	10.000000	13.044111	30.44%	7,045	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.309572	18.737590	14.89%	194,969	2006
	15.371603	16.309572	6.10%	107,359	2005
	13.713835	15.371603	12.09%	51,825	2004
	10.000000	13.713835	37.14%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.324161	16.517290	7.79%	6,848	2006
	14.223018	15.324161	7.74%	422	2005
	12.558517	14.223018	13.25%	0	2004
	10.000000	12.558517	25.59%	0	2003*

166

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.900155	10.173209	2.76%	1,400	2006
	9.809182	9.900155	0.93%	1,034	2005
	9.898507	9.809182	-0.90%	538	2004
	10.000000	9.898507	-1.01%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.861207	16.567058	11.48%	12,930	2006
	14.123216	14.861207	5.23%	688	2005
	13.116888	14.123216	7.67%	0	2004
	10.000000	13.116888	31.17%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.046440	17.650835	-2.19%	0	2006
	16.434862	18.046440	9.81%	0	2005
	14.914523	16.434862	10.19%	0	2004
	10.000000	14.914523	49.15%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.838892	8.39%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.814837	21.436127	20.33%	0	2006
	16.211333	17.814837	9.89%	0	2005
	13.743055	16.211333	17.96%	0	2004
	10.000000	13.743055	37.43%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.591824	15.151912	20.33%	7,295	2006
	11.456941	12.591824	9.91%	443	2005
	10.000000	11.456941	14.57%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.931223	19.370427	8.03%	284	2006
	16.271674	17.931223	10.20%	284	2005
	14.302891	16.271674	13.76%	284	2004
	10.000000	14.302891	43.03%	284	2003*

167

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	16.004374	18.181092	13.60%	9,528	2006
	15.661506	16.004374	2.19%	679	2005
	13.607406	15.661506	15.10%	0	2004
	10.000000	13.607406	36.07%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.469514	11.820574	3.06%	0	2006
	11.418383	11.469514	0.45%	0	2005
	10.903410	11.418383	4.72%	0	2004
	10.000000	10.903410	9.03%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.724578	15.586821	5.86%	1,736	2006
	14.283954	14.724578	3.08%	1,827	2005
	13.629267	14.283954	4.80%	1,909	2004
	10.000000	13.629267	36.29%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.905485	14.894095	15.41%	0	2006
	11.511004	12.905485	12.11%	0	2005
	10.000000	11.511004	15.11%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.800617	22.844786	15.37%	0	2006
	17.659123	19.800617	12.13%	0	2005
	15.111597	17.659123	16.86%	0	2004
	10.000000	15.111597	51.12%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.949106	13.904025	7.37%	0	2006
	12.913506	12.949106	0.28%	0	2005
	12.081836	12.913506	6.88%	0	2004
	10.000000	12.081836	20.82%	0	2003*

168

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.598881	16.469437	12.81%	17,359	2006
	14.044359	14.598881	3.95%	4,279	2005
	13.090067	14.044359	7.29%	3,704	2004
	10.000000	13.090067	30.90%	1,222	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.062727	21.486399	12.71%	2,599	2006
	17.674345	19.062727	7.86%	100	2005
	15.086384	17.674345	17.15%	0	2004
	10.000000	15.086384	50.86%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.878937	15.814500	13.95%	2,828	2006
	13.416801	13.878937	3.44%	2,952	2005
	12.283848	13.416801	9.22%	3,172	2004
	10.000000	12.283848	22.84%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.940489	20.014021	25.55%	0	2006
	14.452492	15.940489	10.30%	0	2005
	12.653145	14.452492	14.22%	0	2004
	10.000000	12.653145	26.53%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.571599	13.030197	3.65%	0	2006
	12.099565	12.571599	3.90%	0	2005
	11.719017	12.099565	3.25%	0	2004
	10.000000	11.719017	17.19%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.187144	12.023416	7.48%	0	2006
	10.000000	11.187144	11.87%	0	2005*

169

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.516692	12.266314	16.64%	0	2006
	10.000000	10.516692	5.17%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.013281	10.239776	2.26%	0	2006
	10.000000	10.013281	0.13%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.556674	10.747251	1.81%	8,241	2006
	10.332268	10.556674	2.17%	508	2005
	10.099592	10.332268	2.30%	0	2004
	10.000000	10.099592	1.00%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.980954	16.318002	8.92%	0	2006
	13.590037	14.980954	10.23%	0	2005
	12.559190	13.590037	8.21%	0	2004
	10.000000	12.559190	25.59%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.698940	28.013099	35.34%	0	2006
	18.034774	20.698940	14.77%	0	2005
	13.482966	18.034774	33.76%	0	2004
	10.000000	13.482966	34.83%	0	2003*

170

Additional Contract Options Elected (Total 1.75%)

(Variable account charges of 1.75% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.819192	17.554583	10.97%	0	2006
	15.271213	15.819192	3.59%	0	2005
	14.023243	15.271213	8.90%	0	2004
	10.000000	14.023243	40.23%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.847962	15.472600	4.21%	0	2006
	13.917742	14.847962	6.68%	0	2005
	13.321974	13.917742	4.47%	0	2004
	10.000000	13.321974	33.22%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.927273	19.335577	14.23%	0	2006
	15.766901	16.927273	7.36%	0	2005
	13.921930	15.766901	13.25%	0	2004
	10.000000	13.921930	39.22%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.323276	17.612985	14.94%	165	2006
	14.910135	15.323276	2.77%	166	2005
	13.644490	14.910135	9.28%	167	2004
	10.000000	13.644490	36.44%	168	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.076044	20.282891	12.21%	0	2006
	17.252945	18.076044	4.77%	0	2005
	14.747238	17.252945	16.99%	0	2004
	10.000000	14.747238	47.47%	0	2003*

171

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.248165	17.501112	14.78%	0	2006
	14.848231	15.248165	2.69%	0	2005
	13.424590	14.848231	10.60%	0	2004
	10.000000	13.424590	34.25%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.219636	19.879788	22.57%	0	2006
	14.594814	16.219636	11.13%	0	2005
	12.942484	14.594814	12.77%	0	2004
	10.000000	12.942484	29.42%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.463621	15.291063	22.69%	0	2006
	11.228277	12.463621	11.00%	0	2005
	10.000000	11.228277	12.28%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.175422	13.201290	18.13%	0	2006
	10.000000	11.175422	11.75%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.148820	13.430767	-5.08%	0	2006
	14.121250	14.148820	0.20%	0	2005
	12.996439	14.121250	8.65%	0	2004
	10.000000	12.996439	29.96%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.657686	18.225035	16.40%	0	2006
	15.198000	15.657686	3.02%	0	2005
	13.548279	15.198000	12.18%	0	2004
	10.000000	13.548279	35.48%	0	2003*

172

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.322577	12.112298	6.97%	0	2006
	10.000000	11.322577	13.23%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.764197	10.744215	-0.19%	0	2006
	10.786832	10.764197	-0.21%	0	2005
	10.376039	10.786832	3.96%	0	2004
	10.000000	10.376039	3.76%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.322676	20.597299	12.41%	0	2006
	17.390155	18.322676	5.36%	0	2005
	14.521723	17.390155	19.75%	0	2004
	10.000000	14.521723	45.22%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.757838	16.705238	13.20%	0	2006
	14.382267	14.757838	2.61%	0	2005
	13.265137	14.382267	8.42%	0	2004
	10.000000	13.265137	32.65%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.310580	15.198002	14.18%	0	2006
	13.011223	13.310580	2.30%	0	2005
	12.636845	13.011223	2.96%	0	2004
	10.000000	12.636845	26.37%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.554423	15.821007	1.71%	966	2006
	14.997346	15.554423	3.71%	891	2005
	13.746125	14.997346	9.10%	859	2004
	10.000000	13.746125	37.46%	0	2003*

173

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.706920	16.832353	14.45%	0	2006
	14.285809	14.706920	2.95%	0	2005
	13.278623	14.285809	7.59%	0	2004
	10.000000	13.278623	32.79%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.593219	15.463850	13.76%	0	2006
	13.604024	13.593219	-0.08%	0	2005
	12.927207	13.604024	5.24%	0	2004
	10.000000	12.927207	29.27%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.243775	2.44%	582	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.296493	10.513347	2.11%	0	2006
	10.376971	10.296493	-0.78%	0	2005
	10.222441	10.376971	1.51%	0	2004
	10.000000	10.222441	2.22%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.504390	18.269816	17.84%	0	2006
	14.947116	15.504390	3.73%	0	2005
	13.676909	14.947116	9.29%	0	2004
	10.000000	13.676909	36.77%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.513399	15.197310	4.71%	1,979	2006
	14.000748	14.513399	3.66%	1,892	2005
	13.818654	14.000748	1.32%	1,838	2004
	10.000000	13.818654	38.19%	0	2003*

174

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.179150	22.193606	15.72%	0	2006
	16.433121	19.179150	16.71%	0	2005
	14.760564	16.433121	11.33%	0	2004
	10.000000	14.760564	47.61%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.837627	14.860462	15.76%	0	2006
	11.003353	12.837627	16.67%	0	2005
	10.000000	11.003353	10.03%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.294168	18.934891	9.49%	872	2006
	15.089314	17.294168	14.61%	874	2005
	13.336337	15.089314	13.14%	171	2004
	10.000000	13.336337	33.36%	171	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.536024	10.780356	2.32%	3,754	2006
	10.523767	10.536024	0.12%	310	2005
	10.280466	10.523767	2.37%	310	2004
	10.000000	10.280466	2.80%	310	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.315297	22.436487	10.44%	1,350	2006
	17.519636	20.315297	15.96%	1,371	2005
	14.304553	17.519636	22.48%	1,475	2004
	10.000000	14.304553	43.05%	0	2003*

175

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.687545	21.300753	13.98%	1,429	2006
	18.568815	18.687545	0.64%	1,490	2005
	16.601913	18.568815	11.85%	1,406	2004
	10.000000	16.601913	66.02%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.357393	15.304969	14.58%	0	2006
	10.000000	13.357393	33.57%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.670550	11.488747	7.67%	0	2006
	10.000000	10.670550	6.71%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.976545	12.047375	9.76%	0	2006
	10.000000	10.976545	9.77%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.184232	12.409354	10.95%	0	2006
	10.000000	11.184232	11.84%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.085844	10.86%	0	2006*

176

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.571240	16.768456	15.08%	429	2006
	14.338735	14.571240	1.62%	429	2005
	13.147979	14.338735	9.06%	429	2004
	10.000000	13.147979	31.48%	430	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.672305	21.461905	14.94%	0	2006
	17.472125	18.672305	6.87%	0	2005
	14.370679	17.472125	21.58%	0	2004
	10.000000	14.370679	43.71%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.655507	15.937169	25.93%	0	2006
	10.000000	12.655507	26.56%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.311415	20.657060	19.33%	0	2006
	15.992577	17.311415	8.25%	0	2005
	13.732826	15.992577	16.46%	0	2004
	10.000000	13.732826	37.33%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.433552	14.838451	19.34%	1,862	2006
	11.490111	12.433552	8.21%	0	2005
	10.000000	11.490111	14.90%	0	2004*

177

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.766142	10.828109	10.87%	0	2006
	10.000000	9.766142	-2.34%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.949158	14.167340	9.41%	0	2006
	12.241351	12.949158	5.78%	0	2005
	11.505218	12.241351	6.40%	0	2004
	10.000000	11.505218	15.05%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.942807	17.092574	7.21%	0	2006
	14.415779	15.942807	10.59%	0	2005
	12.437665	14.415779	15.90%	0	2004
	10.000000	12.437665	24.38%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.719936	31.366880	44.42%	0	2006
	16.754159	21.719936	29.64%	0	2005
	14.367666	16.754159	16.61%	0	2004
	10.000000	14.367666	43.68%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.739596	21.304980	44.54%	546	2006
	11.363048	14.739596	29.72%	0	2005
	10.000000	11.363048	13.63%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.291335	16.666323	8.99%	0	2006
	14.031702	15.291335	8.98%	0	2005
	12.158184	14.031702	15.41%	0	2004
	10.000000	12.158184	21.58%	0	2003*

178

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.909111	10.145287	2.38%	3,644	2006
	9.941633	9.909111	-0.33%	0	2005
	10.040481	9.941633	-0.98%	0	2004
	10.000000	10.040481	0.40%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.811057	14.561211	5.43%	0	2006
	13.486320	13.811057	2.41%	0	2005
	12.594868	13.486320	7.08%	0	2004
	10.000000	12.594868	25.95%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.440964	18.282573	18.40%	738	2006
	14.760636	15.440964	4.61%	738	2005
	13.083772	14.760636	12.82%	0	2004
	10.000000	13.083772	30.84%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.034039	15.547415	3.41%	0	2006
	14.870180	15.034039	1.10%	0	2005
	13.528240	14.870180	9.92%	0	2004
	10.000000	13.528240	35.28%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.613662	13.964598	20.24%	3,218	2006
	10.000000	11.613662	16.14%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.935082	17.922567	12.47%	0	2006
	14.298544	15.935082	11.45%	0	2005
	12.542169	14.298544	14.00%	0	2004
	10.000000	12.542169	25.42%	0	2003*

179

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.526436	12.563708	9.00%	0	2006
	10.000000	11.526436	15.26%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.291049	15.965747	11.72%	4,209	2006
	13.611475	14.291049	4.99%	0	2005
	12.229791	13.611475	11.30%	0	2004
	10.000000	12.229791	22.30%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.434128	4.34%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.416259	4.16%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.715931	7.16%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.243775	2.44%	582	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.953685	14.077197	8.67%	0	2006
	12.877246	12.953685	0.59%	0	2005
	11.904593	12.877246	8.17%	0	2004
	10.000000	11.904593	19.05%	0	2003*

180

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.418162	11.321282	8.67%	0	2006
	10.000000	10.418162	4.18%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.630840	34.329087	33.94%	0	2006
	19.712603	25.630840	30.02%	0	2005
	16.659025	19.712603	18.33%	0	2004
	10.000000	16.659025	66.59%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.256471	20.470158	34.17%	0	2006
	11.719770	15.256471	30.18%	0	2005
	10.000000	11.719770	17.20%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.485381	22.244207	34.93%	0	2006
	15.800508	16.485381	4.33%	0	2005
	12.412884	15.800508	27.29%	0	2004
	10.000000	12.412884	24.13%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.157720	16.349615	1.19%	0	2006
	15.263895	16.157720	5.86%	0	2005
	13.727977	15.263895	11.19%	0	2004
	10.000000	13.727977	37.28%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.381755	22.299337	15.05%	0	2006
	19.192160	19.381755	0.99%	0	2005
	16.696167	19.192160	14.95%	0	2004
	10.000000	16.696167	66.96%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.796627	20.638995	9.80%	650	2006
	17.079751	18.796627	10.05%	0	2005
	14.634859	17.079751	16.71%	0	2004
	10.000000	14.634859	46.35%	0	2003*

181

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.362497	21.665712	17.99%	0	2006
	16.869048	18.362497	8.85%	0	2005
	14.217426	16.869048	18.65%	0	2004
	10.000000	14.217426	42.17%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.524310	15.624588	0.65%	0	2006
	14.604297	15.524310	6.30%	0	2005
	13.818993	14.604297	5.68%	0	2004
	10.000000	13.818993	38.19%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.452532	10.518349	0.63%	0	2006
	9.828804	10.452532	6.35%	0	2005
	10.000000	9.828804	-1.71%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.209158	16.539267	8.75%	0	2006
	15.600234	15.209158	-2.51%	0	2005
	15.262596	15.600234	2.21%	0	2004
	10.000000	15.262596	52.63%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.564328	11.542288	9.26%	0	2006
	10.835965	10.564328	-2.51%	0	2005
	10.000000	10.835965	8.36%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.338406	10.497385	1.54%	3,163	2006
	10.189502	10.338406	1.46%	0	2005
	10.043359	10.189502	1.46%	0	2004
	10.000000	10.043359	0.43%	0	2003*

182

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.191464	11.673956	4.31%	0	2006
	11.025641	11.191464	1.50%	0	2005
	10.723133	11.025641	2.82%	0	2004
	10.000000	10.723133	7.23%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.362921	13.170301	6.53%	0	2006
	12.042290	12.362921	2.66%	0	2005
	11.437925	12.042290	5.28%	0	2004
	10.000000	11.437925	14.38%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.593344	14.872451	9.41%	1,522	2006
	13.132916	13.593344	3.51%	1,524	2005
	12.203108	13.132916	7.62%	0	2004
	10.000000	12.203108	22.03%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.106544	17.001173	12.54%	17,010	2006
	14.359307	15.106544	5.20%	17,626	2005
	13.038300	14.359307	10.13%	6,941	2004
	10.000000	13.038300	30.38%	0	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.285762	18.700744	14.83%	22,281	2006
	15.356948	16.285762	6.05%	22,289	2005
	13.707728	15.356948	12.03%	9,127	2004
	10.000000	13.707728	37.08%	509	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.303416	16.486567	7.73%	3,648	2006
	14.210960	15.303416	7.69%	1,800	2005
	12.554261	14.210960	13.20%	1,823	2004
	10.000000	12.554261	25.54%	0	2003*

183

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.885496	10.152993	2.71%	730	2006
	9.799630	9.885496	0.88%	0	2005
	9.893901	9.799630	-0.95%	0	2004
	10.000000	9.893901	-1.06%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.839520	16.534481	11.42%	3,954	2006
	14.109763	14.839520	5.17%	0	2005
	13.111059	14.109763	7.62%	0	2004
	10.000000	13.111059	31.11%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	18.020086	17.616106	-2.24%	0	2006
	16.419196	18.020086	9.75%	0	2005
	14.907895	16.419196	10.14%	0	2004
	10.000000	14.907895	49.08%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.835236	8.35%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.790715	21.396244	20.27%	0	2006
	16.197590	17.790715	9.84%	0	2005
	13.738380	16.197590	17.90%	0	2004
	10.000000	13.738380	37.38%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.581194	15.131435	20.27%	3,213	2006
	11.453079	12.581194	9.85%	1,100	2005
	10.000000	11.453079	14.53%	1,130	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.905052	19.332334	7.97%	0	2006
	16.256166	17.905052	10.14%	0	2005
	14.296525	16.256166	13.71%	0	2004
	10.000000	14.296525	42.97%	0	2003*

184

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.981000	18.145324	13.54%	2,889	2006
	15.646565	15.981000	2.14%	0	2005
	13.601345	15.646565	15.04%	0	2004
	10.000000	13.601345	36.01%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.452724	11.797281	3.01%	0	2006
	11.407467	11.452724	0.40%	0	2005
	10.898535	11.407467	4.67%	0	2004
	10.000000	10.898535	8.99%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.703095	15.556184	5.80%	166	2006
	14.270341	14.703095	3.03%	166	2005
	13.623204	14.270341	4.75%	167	2004
	10.000000	13.623204	36.23%	167	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.894589	14.873968	15.35%	0	2006
	11.507127	12.894589	12.06%	0	2005
	10.000000	11.507127	15.07%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.771731	22.799883	15.32%	0	2006
	17.642303	19.771731	12.07%	0	2005
	15.104878	17.642303	16.80%	0	2004
	10.000000	15.104878	51.05%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.930195	13.876681	7.32%	0	2006
	12.901188	12.930195	0.22%	0	2005
	12.076446	12.901188	6.83%	0	2004
	10.000000	12.076446	20.76%	0	2003*

185

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.577583	16.437065	12.76%	3,734	2006
	14.030984	14.577583	3.90%	0	2005
	13.084249	14.030984	7.24%	0	2004
	10.000000	13.084249	30.84%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.034924	21.444172	12.66%	902	2006
	17.657508	19.034924	7.80%	0	2005
	15.079668	17.657508	17.09%	0	2004
	10.000000	15.079668	50.80%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.860142	15.785091	13.89%	0	2006
	13.405421	13.860142	3.39%	0	2005
	12.279684	13.405421	9.17%	0	2004
	10.000000	12.279684	22.80%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.918898	19.976776	25.49%	0	2006
	14.440241	15.918898	10.24%	0	2005
	12.648853	14.440241	14.16%	0	2004
	10.000000	12.648853	26.49%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.554562	13.005932	3.60%	0	2006
	12.089308	12.554562	3.85%	0	2005
	11.715038	12.089308	3.19%	0	2004
	10.000000	11.715038	17.15%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.183366	12.013255	7.42%	0	2006
	10.000000	11.183366	11.83%	0	2005*

186

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.513147	12.255971	16.58%	0	2006
	10.000000	10.513147	5.13%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.009904	10.231131	2.21%	0	2006
	10.000000	10.009904	0.10%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.542363	10.727232	1.75%	2,411	2006
	10.323495	10.542363	2.12%	0	2005
	10.096155	10.323495	2.25%	0	2004
	10.000000	10.096155	0.96%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.958123	16.284877	8.87%	0	2006
	13.576214	14.958123	10.18%	0	2005
	12.552802	13.576214	8.15%	0	2004
	10.000000	12.552802	25.53%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.667393	27.956245	35.27%	0	2006
	18.016422	20.667393	14.71%	0	2005
	13.476102	18.016422	33.69%	0	2004
	10.000000	13.476102	34.76%	0	2003*

187

Additional Contract Options Elected (Total 1.80%)

(Variable account charges of 1.80% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.796069	17.520036	10.91%	0	2006
	15.256637	15.796069	3.54%	0	2005
	14.016990	15.256637	8.84%	0	2004
	10.000000	14.016990	40.17%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.826256	15.442142	4.15%	0	2006
	13.904454	14.826256	6.63%	0	2005
	13.316033	13.904454	4.42%	0	2004
	10.000000	13.316033	33.16%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.902567	19.297557	14.17%	0	2006
	15.751883	16.902567	7.31%	0	2005
	13.915742	15.751883	13.19%	0	2004
	10.000000	13.915742	39.16%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.300880	17.578329	14.88%	0	2006
	14.895904	15.300880	2.72%	0	2005
	13.638413	14.895904	9.22%	0	2004
	10.000000	13.638413	36.38%	0	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.049671	20.243032	12.15%	0	2006
	17.236512	18.049671	4.72%	0	2005
	14.740687	17.236512	16.93%	0	2004
	10.000000	14.740687	47.41%	0	2003*

188

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.225883	17.466671	14.72%	0	2006
	14.834062	15.225883	2.64%	0	2005
	13.418600	14.834062	10.55%	0	2004
	10.000000	13.418600	34.19%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.195948	19.840680	22.50%	0	2006
	14.580903	16.195948	11.08%	0	2005
	12.936733	14.580903	12.71%	0	2004
	10.000000	12.936733	29.37%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.453106	15.270392	22.62%	0	2006
	11.224493	12.453106	10.95%	0	2005
	10.000000	11.224493	12.24%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.171661	13.190159	18.07%	0	2006
	10.000000	11.171661	11.72%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.128155	13.404337	-5.12%	0	2006
	14.107788	14.128155	0.14%	0	2005
	12.990651	14.107788	8.60%	0	2004
	10.000000	12.990651	29.91%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.634840	18.189206	16.34%	0	2006
	15.183516	15.634840	2.97%	0	2005
	13.542256	15.183516	12.12%	0	2004
	10.000000	13.542256	35.42%	0	2003*

189

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.318754	12.102067	6.92%	0	2006
	10.000000	11.318754	13.19%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.747787	10.722391	-0.24%	0	2006
	10.775856	10.747787	-0.26%	0	2005
	10.370757	10.775856	3.91%	0	2004
	10.000000	10.370757	3.71%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.295913	20.556777	12.36%	0	2006
	17.373568	18.295913	5.31%	0	2005
	14.515251	17.373568	19.69%	0	2004
	10.000000	14.515251	45.15%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.736279	16.672368	13.14%	0	2006
	14.368549	14.736279	2.56%	0	2005
	13.259231	14.368549	8.37%	0	2004
	10.000000	13.259231	32.59%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.291141	15.168104	14.12%	0	2006
	12.998806	13.291141	2.25%	0	2005
	12.631214	12.998806	2.91%	0	2004
	10.000000	12.631214	26.31%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.531693	15.789885	1.66%	0	2006
	14.983039	15.531693	3.66%	0	2005
	13.740007	14.983039	9.05%	0	2004
	10.000000	13.740007	37.40%	0	2003*

190

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.685424	16.799220	14.39%	0	2006
	14.272175	14.685424	2.90%	0	2005
	13.272703	14.272175	7.53%	0	2004
	10.000000	13.272703	32.73%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.573366	15.433434	13.70%	0	2006
	13.591048	13.573366	-0.13%	0	2005
	12.921451	13.591048	5.18%	0	2004
	10.000000	12.921451	29.21%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.240314	2.40%	342	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.281448	10.492661	2.05%	0	2006
	10.367069	10.281448	-0.83%	0	2005
	10.217883	10.367069	1.46%	0	2004
	10.000000	10.217883	2.18%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.481737	18.233864	17.78%	299	2006
	14.932866	15.481737	3.68%	300	2005
	13.670820	14.932866	9.23%	0	2004
	10.000000	13.670820	36.71%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.492214	15.167421	4.66%	0	2006
	13.987398	14.492214	3.61%	0	2005
	13.812504	13.987398	1.27%	0	2004
	10.000000	13.812504	38.13%	0	2003*

191

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.151163	22.149968	15.66%	0	2006
	16.417462	19.151163	16.65%	0	2005
	14.753996	16.417462	11.27%	0	2004
	10.000000	14.753996	47.54%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.826808	14.840411	15.70%	0	2006
	10.999651	12.826808	16.61%	0	2005
	10.000000	10.999651	10.00%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.268897	18.897645	9.43%	0	2006
	15.074909	17.268897	14.55%	0	2005
	13.330385	15.074909	13.09%	0	2004
	10.000000	13.330385	33.30%	0	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.520620	10.759148	2.27%	2,451	2006
	10.513713	10.520620	0.07%	414	2005
	10.275874	10.513713	2.31%	0	2004
	10.000000	10.275874	2.76%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.285633	22.392345	10.39%	0	2006
	17.502931	20.285633	15.90%	0	2005
	14.298178	17.502931	22.41%	0	2004
	10.000000	14.298178	42.98%	0	2003*

192

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.660266	21.258879	13.93%	0	2006
	18.551112	18.660266	0.59%	0	2005
	16.594524	18.551112	11.79%	0	2004
	10.000000	16.594524	65.95%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.352901	15.292040	14.52%	0	2006
	10.000000	13.352901	33.53%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.666944	11.479030	7.61%	0	2006
	10.000000	10.666944	6.67%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.972836	12.037198	9.70%	0	2006
	10.000000	10.972836	9.73%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.180460	12.398869	10.90%	0	2006
	10.000000	11.180460	11.80%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.082100	10.82%	0	2006*

193

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.549945	16.735450	15.02%	310	2006
	14.325045	14.549945	1.57%	311	2005
	13.142118	14.325045	9.00%	0	2004
	10.000000	13.142118	31.42%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.645032	21.419668	14.88%	0	2006
	17.455454	18.645032	6.81%	0	2005
	14.364281	17.455454	21.52%	0	2004
	10.000000	14.364281	43.64%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.651246	15.923723	25.87%	0	2006
	10.000000	12.651246	26.51%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.286118	20.616415	19.27%	0	2006
	15.977318	17.286118	8.19%	0	2005
	13.726705	15.977318	16.40%	0	2004
	10.000000	13.726705	37.27%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.423072	14.818425	19.28%	1,053	2006
	11.486259	12.423072	8.16%	0	2005
	10.000000	11.486259	14.86%	0	2004*

194

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.762850	10.818969	10.82%	0	2006
	10.000000	9.762850	-2.37%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.930226	14.139436	9.35%	0	2006
	12.229660	12.930226	5.73%	0	2005
	11.500087	12.229660	6.34%	0	2004
	10.000000	11.500087	15.00%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.919551	17.058984	7.16%	0	2006
	14.402045	15.919551	10.54%	0	2005
	12.432126	14.402045	15.85%	0	2004
	10.000000	12.432126	24.32%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.688225	31.305192	44.34%	0	2006
	16.738188	21.688225	29.57%	0	2005
	14.361268	16.738188	16.55%	0	2004
	10.000000	14.361268	43.61%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.727162	21.276204	44.47%	346	2006
	11.359225	14.727162	29.65%	0	2005
	10.000000	11.359225	13.59%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.270609	16.635284	8.94%	0	2006
	14.019804	15.270609	8.92%	0	2005
	12.154059	14.019804	15.35%	0	2004
	10.000000	12.154059	21.54%	0	2003*

195

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.894639	10.125323	2.33%	1,986	2006
	9.932152	9.894639	-0.38%	0	2005
	10.036005	9.932152	-1.03%	0	2004
	10.000000	10.036005	0.36%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.790894	14.532572	5.38%	0	2006
	13.473465	13.790894	2.36%	0	2005
	12.589263	13.473465	7.02%	0	2004
	10.000000	12.589263	25.89%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.418416	18.246613	18.34%	0	2006
	14.746550	15.418416	4.56%	0	2005
	13.077936	14.746550	12.76%	0	2004
	10.000000	13.077936	30.78%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	15.012087	15.516839	3.36%	0	2006
	14.855998	15.012087	1.05%	0	2005
	13.522216	14.855998	9.86%	0	2004
	10.000000	13.522216	35.22%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.609751	13.952802	20.18%	2,158	2006
	10.000000	11.609751	16.10%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.910805	17.886174	12.42%	0	2006
	14.284018	15.910805	11.39%	0	2005
	12.535795	14.284018	13.95%	0	2004
	10.000000	12.535795	25.36%	0	2003*

196

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.522539	12.553083	8.94%	0	2006
	10.000000	11.522539	15.23%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.271672	15.936002	11.66%	2,550	2006
	13.599927	14.271672	4.94%	0	2005
	12.225637	13.599927	11.24%	0	2004
	10.000000	12.225637	22.26%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.430613	4.31%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.412741	4.13%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.712318	7.12%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.240314	2.40%	342	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.934751	14.049499	8.62%	0	2006
	12.864955	12.934751	0.54%	0	2005
	11.899285	12.864955	8.12%	0	2004
	10.000000	11.899285	18.99%	0	2003*

197

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.414642	11.311733	8.61%	0	2006
	10.000000	10.414642	4.15%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.593427	34.261585	33.87%	0	2006
	19.693802	25.593427	29.96%	0	2005
	16.651616	19.693802	18.27%	0	2004
	10.000000	16.651616	66.52%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.243606	20.442522	34.11%	0	2006
	11.715831	15.243606	30.11%	0	2005
	10.000000	11.715831	17.67%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.461313	22.200475	34.86%	0	2006
	15.785444	16.461313	4.28%	0	2005
	12.407351	15.785444	27.23%	0	2004
	10.000000	12.407351	24.07%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.134121	16.317444	1.14%	0	2006
	15.249341	16.134121	5.80%	0	2005
	13.721857	15.249341	11.13%	0	2004
	10.000000	13.721857	37.22%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.353450	22.255469	14.99%	0	2006
	19.173862	19.353450	0.94%	0	2005
	16.688734	19.173862	14.89%	0	2004
	10.000000	16.688734	66.89%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.769168	20.598389	9.75%	334	2006
	17.063461	18.769168	10.00%	0	2005
	14.628336	17.063461	16.65%	0	2004
	10.000000	14.628336	46.28%	0	2003*

198

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.335686	21.623093	17.93%	0	2006
	16.852973	18.335686	8.80%	0	2005
	14.211109	16.852973	18.59%	0	2004
	10.000000	14.211109	42.11%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.501628	15.593824	0.59%	0	2006
	14.590363	15.501628	6.25%	0	2005
	13.812834	14.590363	5.63%	0	2004
	10.000000	13.812834	38.13%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.443718	10.504151	0.58%	0	2006
	9.825503	10.443718	6.29%	0	2005
	10.000000	9.825503	-1.74%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.186972	16.506743	8.69%	0	2006
	15.585378	15.186972	-2.56%	0	2005
	15.255822	15.585378	2.16%	0	2004
	10.000000	15.255822	52.56%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.555400	11.526673	9.20%	0	2006
	10.832314	10.555400	-2.56%	0	2005
	10.000000	10.832314	8.32%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.323283	10.476712	1.49%	2,088	2006
	10.179763	10.323283	1.41%	0	2005
	10.038872	10.179763	1.40%	0	2004
	10.000000	10.038872	0.39%	0	2003*

199

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.175080	11.650951	4.26%	0	2006
	11.015097	11.175080	1.45%	0	2005
	10.718341	11.015097	2.77%	0	2004
	10.000000	10.718341	7.18%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.344849	13.144366	6.48%	6,073	2006
	12.030792	12.344849	2.61%	6,073	2005
	11.432830	12.030792	5.23%	6,073	2004
	10.000000	11.432830	14.33%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.573482	14.843178	9.35%	62,453	2006
	13.120388	13.573482	3.45%	51,845	2005
	12.197676	13.120388	7.56%	5,607	2004
	10.000000	12.197676	21.98%	1,200	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.084471	16.967720	12.48%	5,888	2006
	14.345619	15.084471	5.15%	12,824	2005
	13.032501	14.345619	10.08%	9,773	2004
	10.000000	13.032501	30.33%	0	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.261968	18.663939	14.77%	18,819	2006
	15.342293	16.261968	5.99%	18,822	2005
	13.701620	15.342293	11.97%	4,609	2004
	10.000000	13.701620	37.02%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.282670	16.455848	7.68%	1,113	2006
	14.198902	15.282670	7.63%	0	2005
	12.550000	14.198902	13.14%	0	2004
	10.000000	12.550000	25.50%	0	2003*

200

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.870853	10.132810	2.65%	300	2006
	9.790082	9.870853	0.83%	0	2005
	9.889293	9.790082	-1.00%	0	2004
	10.000000	9.889293	-1.11%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.817828	16.501933	11.37%	2,146	2006
	14.096285	14.817828	5.12%	0	2005
	13.105211	14.096285	7.56%	0	2004
	10.000000	13.105211	31.05%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.993773	17.581451	-2.29%	0	2006
	16.403535	17.993773	9.69%	0	2005
	14.901257	16.403535	10.08%	0	2004
	10.000000	14.901257	49.01%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.831580	8.32%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.766611	21.356427	20.21%	0	2006
	16.183856	17.766611	9.78%	0	2005
	13.733726	16.183856	17.84%	0	2004
	10.000000	13.733726	37.34%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.570579	15.111008	20.21%	1,125	2006
	11.449228	12.570579	9.79%	0	2005
	10.000000	11.449228	14.49%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.878889	19.294289	7.92%	0	2006
	16.240650	17.878889	10.09%	0	2005
	14.290151	16.240650	13.65%	0	2004
	10.000000	14.290151	42.90%	0	2003*

201

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.957644	18.109621	13.49%	1,570	2006
	15.631642	15.957644	2.09%	0	2005
	13.595292	15.631642	14.98%	0	2004
	10.000000	13.595292	35.95%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.436003	11.774087	2.96%	0	2006
	11.396583	11.436003	0.35%	0	2005
	10.893681	11.396583	4.62%	0	2004
	10.000000	10.893681	8.94%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.681601	15.525560	5.75%	310	2006
	14.256716	14.681601	2.98%	310	2005
	13.617132	14.256716	4.70%	0	2004
	10.000000	13.617132	36.17%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.883737	14.853903	15.29%	0	2006
	11.503272	12.883737	12.00%	0	2005
	10.000000	11.503272	15.03%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.742872	22.755050	15.26%	0	2006
	17.625493	19.742872	12.01%	0	2005
	15.098167	17.625493	16.74%	0	2004
	10.000000	15.098167	50.98%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.911286	13.849358	7.27%	0	2006
	12.888862	12.911286	0.17%	0	2005
	12.071064	12.888862	6.77%	0	2004
	10.000000	12.071064	20.71%	0	2003*

202

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.556268	16.404704	12.70%	2,254	2006
	14.017578	14.556268	3.84%	0	2005
	13.078404	14.017578	7.18%	0	2004
	10.000000	13.078404	30.78%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	19.007120	21.401986	12.60%	403	2006
	17.640670	19.007120	7.75%	0	2005
	15.072953	17.640670	17.04%	0	2004
	10.000000	15.072953	50.73%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.841360	15.755685	13.83%	0	2006
	13.394064	13.841360	3.34%	0	2005
	12.275514	13.394064	9.11%	0	2004
	10.000000	12.275514	22.76%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.897319	19.939586	25.43%	0	2006
	14.427990	15.897319	10.18%	0	2005
	12.644552	14.427990	14.10%	0	2004
	10.000000	12.644552	26.45%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.537566	12.981735	3.54%	0	2006
	12.079069	12.537566	3.80%	0	2005
	11.711064	12.079069	3.14%	0	2004
	10.000000	11.711064	17.11%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.179600	12.003120	7.37%	0	2006
	10.000000	11.179600	11.80%	0	2005*

203

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.509601	12.245614	16.52%	0	2006
	10.000000	10.509601	5.10%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.006526	10.222485	2.16%	0	2006
	10.000000	10.006526	0.07%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.528053	10.707238	1.70%	1,609	2006
	10.314724	10.528053	2.07%	0	2005
	10.092718	10.314724	2.20%	0	2004
	10.000000	10.092718	0.93%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.935322	16.251803	8.81%	0	2006
	13.562397	14.935322	10.12%	0	2005
	12.546417	13.562397	8.10%	0	2004
	10.000000	12.546417	25.46%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.635929	27.899532	35.20%	0	2006
	17.998124	20.635929	14.66%	0	2005
	13.469260	17.998124	33.62%	0	2004
	10.000000	13.469260	34.69%	0	2003*

204

Additional Contract Options Elected (Total 1.85%)

(Variable account charges of 1.85% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.772988	17.485559	10.86%	423	2006
	15.242090	15.772988	3.48%	475	2005
	14.010752	15.242090	8.79%	0	2004
	10.000000	14.010752	40.11%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.804611	15.411768	4.10%	0	2006
	13.891196	14.804611	6.58%	0	2005
	13.310109	13.891196	4.37%	0	2004
	10.000000	13.310109	33.10%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.877833	19.259541	14.11%	0	2006
	15.736819	16.877833	7.25%	0	2005
	13.909528	15.736819	13.14%	0	2004
	10.000000	13.909528	39.10%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.278513	17.543710	14.83%	0	2006
	14.881685	15.278513	2.67%	0	2005
	13.632334	14.881685	9.16%	0	2004
	10.000000	13.632334	36.32%	0	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	18.023283	20.203167	12.09%	0	2006
	17.220056	18.023283	4.66%	0	2005
	14.734107	17.220056	16.87%	0	2004
	10.000000	14.734107	47.34%	0	2003*

205

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.203635	17.432300	14.66%	0	2006
	14.819911	15.203635	2.59%	0	2005
	13.412628	14.819911	10.49%	0	2004
	10.000000	13.412628	34.13%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.172294	19.801659	22.44%	0	2006
	14.566989	16.172294	11.02%	0	2005
	12.930963	14.566989	12.65%	0	2004
	10.000000	12.930963	29.31%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.442586	15.249763	22.56%	0	2006
	11.220714	12.442586	10.89%	0	2005
	10.000000	11.220714	12.21%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.167887	13.179014	18.01%	0	2006
	10.000000	11.167887	11.68%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.107494	13.377940	-5.17%	0	2006
	14.094317	14.107494	0.09%	0	2005
	12.984862	14.094317	8.54%	0	2004
	10.000000	12.984862	29.85%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.611957	18.153365	16.28%	671	2006
	15.169005	15.611957	2.92%	646	2005
	13.536215	15.169005	12.06%	638	2004
	10.000000	13.536215	35.36%	646	2003*

206

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.314949	12.091851	6.87%	0	2006
	10.000000	11.314949	13.15%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.731395	10.700603	-0.29%	0	2006
	10.764887	10.731395	-0.31%	0	2005
	10.365477	10.764887	3.85%	0	2004
	10.000000	10.365477	3.65%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.269183	20.516323	12.30%	0	2006
	17.356994	18.269183	5.26%	0	2005
	14.508790	17.356994	19.63%	0	2004
	10.000000	14.508790	45.09%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.714741	16.639547	13.08%	0	2006
	14.354842	14.714741	2.51%	0	2005
	13.253320	14.354842	8.31%	0	2004
	10.000000	13.253320	32.53%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.271692	15.138224	14.06%	2,068	2006
	12.986389	13.271692	2.20%	2,000	2005
	12.625572	12.986389	2.86%	705	2004
	10.000000	12.625572	26.26%	669	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.509010	15.758805	1.61%	0	2006
	14.968748	15.509010	3.61%	0	2005
	13.733890	14.968748	8.99%	0	2004
	10.000000	13.733890	37.34%	0	2003*

207

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.663968	16.766149	14.34%	0	2006
	14.258559	14.663968	2.84%	0	2005
	13.266794	14.258559	7.48%	0	2004
	10.000000	13.266794	32.67%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.553519	15.403040	13.65%	0	2006
	13.578075	13.553519	-0.18%	0	2005
	12.915694	13.578075	5.13%	0	2004
	10.000000	12.915694	29.16%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.236847	2.37%	4,212	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.266398	10.471975	2.00%	0	2006
	10.357156	10.266398	-0.88%	0	2005
	10.213311	10.357156	1.41%	0	2004
	10.000000	10.213311	2.13%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.459110	18.197972	17.72%	671	2006
	14.918610	15.459110	3.62%	673	2005
	13.664733	14.918610	9.18%	651	2004
	10.000000	13.664733	36.65%	643	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.470999	15.137527	4.61%	0	2006
	13.974030	14.470999	3.56%	0	2005
	13.806339	13.974030	1.21%	0	2004
	10.000000	13.806339	38.06%	0	2003*

208

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.123170	22.106362	15.60%	0	2006
	16.401788	19.123170	16.59%	0	2005
	14.747430	16.401788	11.22%	0	2004
	10.000000	14.747430	47.47%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.815973	14.820340	15.64%	0	2006
	10.995945	12.815973	16.55%	0	2005
	10.000000	10.995945	9.96%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.243671	18.860451	9.38%	1,031	2006
	15.060528	17.243671	14.50%	1,031	2005
	13.324455	15.060528	13.03%	0	2004
	10.000000	13.324455	33.24%	0	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.505247	10.737961	2.22%	13,801	2006
	10.503682	10.505247	0.01%	3,294	2005
	10.271299	10.503682	2.26%	0	2004
	10.000000	10.271299	2.71%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.255999	22.348276	10.33%	1,382	2006
	17.486236	20.255999	15.84%	1,442	2005
	14.291814	17.486236	22.35%	615	2004
	10.000000	14.291814	42.92%	646	2003*

209

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.633000	21.217030	13.87%	0	2006
	18.533418	18.633000	0.54%	0	2005
	16.587140	18.533418	11.73%	0	2004
	10.000000	16.587140	65.87%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.348402	15.279127	14.46%	0	2006
	10.000000	13.348402	33.48%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.663346	11.469338	7.56%	0	2006
	10.000000	10.663346	6.63%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.969142	12.027039	9.64%	0	2006
	10.000000	10.969142	9.69%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.176694	12.388402	10.84%	0	2006
	10.000000	11.176694	11.77%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.078363	10.78%	0	2006*

210

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.528693	16.702536	14.96%	0	2006
	14.311386	14.528693	1.52%	0	2005
	13.136268	14.311386	8.95%	0	2004
	10.000000	13.136268	31.36%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.617786	21.377512	14.82%	0	2006
	17.438799	18.617786	6.76%	0	2005
	14.357875	17.438799	21.46%	0	2004
	10.000000	14.357875	43.58%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.646990	15.910289	25.80%	0	2006
	10.000000	12.646990	26.47%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.260846	20.575821	19.21%	0	2006
	15.962062	17.260846	8.14%	0	2005
	13.720588	15.962062	16.34%	0	2004
	10.000000	13.720588	37.21%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.412578	14.798397	19.22%	9,911	2006
	11.482386	12.412578	8.10%	3,108	2005
	10.000000	11.482386	14.82%	0	2004*

211

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.759551	10.809817	10.76%	0	2006
	10.000000	9.759551	-2.40%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.911316	14.111592	9.30%	0	2006
	12.217979	12.911316	5.67%	0	2005
	11.494958	12.217979	6.29%	0	2004
	10.000000	11.494958	14.95%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.896255	17.025367	7.10%	0	2006
	14.388282	15.896255	10.48%	0	2005
	12.426582	14.388282	15.79%	0	2004
	10.000000	12.426582	24.27%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.656559	31.243624	44.27%	0	2006
	16.722219	21.656559	29.51%	0	2005
	14.354875	16.722219	16.49%	0	2004
	10.000000	14.354875	43.55%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.714740	21.247466	44.40%	2,688	2006
	11.355399	14.714740	29.58%	0	2005
	10.000000	11.355399	13.55%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.249917	16.604316	8.88%	0	2006
	14.007907	15.249917	8.87%	0	2005
	12.149928	14.007907	15.29%	0	2004
	10.000000	12.149928	21.50%	0	2003*

212

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.880148	10.105358	2.28%	11,882	2006
	9.922647	9.880148	-0.43%	727	2005
	10.031522	9.922647	-1.09%	0	2004
	10.000000	10.031522	0.32%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.770714	14.503959	5.32%	0	2006
	13.460591	13.770714	2.30%	0	2005
	12.583644	13.460591	6.97%	0	2004
	10.000000	12.583644	25.84%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.395861	18.210675	18.28%	0	2006
	14.732461	15.395861	4.50%	0	2005
	13.072099	14.732461	12.70%	0	2004
	10.000000	13.072099	30.72%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.990135	15.486280	3.31%	0	2006
	14.841809	14.990135	1.00%	0	2005
	13.516188	14.841809	9.81%	0	2004
	10.000000	13.516188	35.16%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.605833	13.941023	20.12%	19,968	2006
	10.000000	11.605833	16.06%	5,364	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.886562	17.849852	12.36%	0	2006
	14.269491	15.886562	11.33%	0	2005
	12.529424	14.269491	13.89%	0	2004
	10.000000	12.529424	25.29%	0	2003*

213

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.518655	12.542479	8.89%	0	2006
	10.000000	11.518655	15.19%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.252324	15.906329	11.61%	21,237	2006
	13.588384	14.252324	4.89%	5,243	2005
	12.221487	13.588384	11.18%	0	2004
	10.000000	12.221487	22.21%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.427094	4.27%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.409221	4.09%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.708700	7.09%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.236847	2.37%	4,212	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.915841	14.021832	8.56%	0	2006
	12.852665	12.915841	0.49%	0	2005
	11.893980	12.852665	8.06%	0	2004
	10.000000	11.893980	18.94%	0	2003*

214

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.411135	11.302178	8.56%	0	2006
	10.000000	10.411135	4.11%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.556052	34.194184	33.80%	0	2006
	19.675015	25.556052	29.89%	0	2005
	16.644208	19.675015	18.21%	0	2004
	10.000000	16.644208	66.44%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.230741	20.414905	34.04%	0	2006
	11.711869	15.230741	30.05%	0	2005
	10.000000	11.711869	17.12%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.437242	22.156759	34.80%	0	2006
	15.770374	16.437242	4.23%	0	2005
	12.401814	15.770374	27.16%	0	2004
	10.000000	12.401814	24.02%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.110548	16.285328	1.08%	0	2006
	15.234783	16.110548	5.75%	0	2005
	13.715748	15.234783	11.08%	0	2004
	10.000000	13.715748	37.16%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.325182	22.211681	14.94%	0	2006
	19.155578	19.325182	0.89%	0	2005
	16.681315	19.155578	14.83%	0	2004
	10.000000	16.681315	66.81%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.741745	20.557852	9.69%	2,595	2006
	17.047183	18.741745	9.94%	569	2005
	14.621826	17.047183	16.59%	0	2004
	10.000000	14.621826	46.22%	0	2003*

215

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.308879	21.580520	17.87%	0	2006
	16.836874	18.308879	8.74%	0	2005
	14.204772	16.836874	18.53%	0	2004
	10.000000	14.204772	42.05%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.478969	15.563123	0.54%	0	2006
	14.576433	15.478969	6.19%	0	2005
	13.806681	14.576433	5.58%	0	2004
	10.000000	13.806681	38.07%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.434896	10.489937	0.53%	0	2006
	9.822186	10.434896	6.24%	0	2005
	10.000000	9.822186	-1.78%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.164758	16.474225	8.63%	0	2006
	15.570503	15.164758	-2.61%	0	2005
	15.249015	15.570503	2.11%	0	2004
	10.000000	15.249015	52.49%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.546499	11.511104	9.15%	0	2006
	10.828670	10.546499	-2.61%	0	2005
	10.000000	10.828670	8.29%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.308192	10.456077	1.43%	14,202	2006
	10.170039	10.308192	1.36%	3,417	2005
	10.034393	10.170039	1.35%	0	2004
	10.000000	10.034393	0.34%	0	2003*

216

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.158734	11.628004	4.21%	0	2006
	11.004575	11.158734	1.40%	0	2005
	10.713558	11.004575	2.72%	0	2004
	10.000000	10.713558	7.14%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.326824	13.118511	6.42%	8,231	2006
	12.019327	12.326824	2.56%	618	2005
	11.427726	12.019327	5.18%	618	2004
	10.000000	11.427726	14.28%	559	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.553620	14.813939	9.30%	33,511	2006
	13.107851	13.553620	3.40%	31,067	2005
	12.192229	13.107851	7.51%	473	2004
	10.000000	12.192229	21.92%	475	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.062418	16.934317	12.43%	16,821	2006
	14.331913	15.062418	5.10%	7,841	2005
	13.026688	14.331913	10.02%	1,596	2004
	10.000000	13.026688	30.27%	1,599	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.238229	18.627254	14.71%	10,289	2006
	15.327674	16.238229	5.94%	10,289	2005
	13.695527	15.327674	11.92%	0	2004
	10.000000	13.695527	36.96%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.261964	16.425215	7.62%	9,417	2006
	14.186862	15.261964	7.58%	3,084	2005
	12.545735	14.186862	13.08%	0	2004
	10.000000	12.545735	25.46%	0	2003*

217

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.856226	10.112656	2.60%	1,217	2006
	9.780540	9.856226	0.77%	1,213	2005
	9.884687	9.780540	-1.05%	0	2004
	10.000000	9.884687	-1.15%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.796175	16.469458	11.31%	17,363	2006
	14.082839	14.796175	5.07%	4,512	2005
	13.099371	14.082839	7.51%	0	2004
	10.000000	13.099371	30.99%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.967457	17.546819	-2.34%	0	2006
	16.387865	17.967457	9.64%	0	2005
	14.894613	16.387865	10.03%	0	2004
	10.000000	14.894613	48.95%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.827926	8.28%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.742531	21.316653	20.14%	0	2006
	16.170138	17.742531	9.72%	0	2005
	13.729071	16.170138	17.78%	0	2004
	10.000000	13.729071	37.29%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.559962	15.090586	20.15%	9,880	2006
	11.445372	12.559962	9.74%	3,120	2005
	10.000000	11.445372	14.45%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.852771	19.256325	7.86%	116	2006
	16.225157	17.852771	10.03%	148	2005
	14.283788	16.225157	13.59%	0	2004
	10.000000	14.283788	42.84%	0	2003*

218

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.934319	18.073967	13.43%	12,788	2006
	15.616715	15.934319	2.03%	4,220	2005
	13.589226	15.616715	14.92%	0	2004
	10.000000	13.589226	35.89%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.419269	11.750886	2.90%	0	2006
	11.385690	11.419269	0.29%	0	2005
	10.888817	11.385690	4.56%	0	2004
	10.000000	10.888817	8.89%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.660153	15.495013	5.69%	1,627	2006
	14.243117	14.660153	2.93%	1,683	2005
	13.611063	14.243117	4.64%	0	2004
	10.000000	13.611063	36.11%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.872847	14.833818	15.23%	0	2006
	11.499389	12.872847	11.94%	0	2005
	10.000000	11.499389	14.99%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.714004	22.710241	15.20%	0	2006
	17.608662	19.714004	11.96%	0	2005
	15.091431	17.608662	16.68%	0	2004
	10.000000	15.091431	50.91%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.892436	13.822109	7.21%	0	2006
	12.876571	12.892436	0.12%	0	2005
	12.065688	12.876571	6.72%	0	2004
	10.000000	12.065688	20.66%	0	2003*

219

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.535004	16.372426	12.64%	19,007	2006
	14.004211	14.535004	3.79%	4,953	2005
	13.072585	14.004211	7.13%	0	2004
	10.000000	13.072585	30.73%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.979349	21.359870	12.54%	3,513	2006
	17.623824	18.979349	7.69%	563	2005
	15.066242	17.623824	16.98%	0	2004
	10.000000	15.066242	50.66%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.822597	15.726340	13.77%	0	2006
	13.382696	13.822597	3.29%	0	2005
	12.271349	13.382696	9.06%	0	2004
	10.000000	12.271349	22.71%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.875772	19.902453	25.36%	0	2006
	14.415757	15.875772	10.13%	0	2005
	12.640252	14.415757	14.05%	0	2004
	10.000000	12.640252	26.40%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.520549	12.957523	3.49%	0	2006
	12.068798	12.520549	3.74%	0	2005
	11.707077	12.068798	3.09%	0	2004
	10.000000	11.707077	17.07%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.175837	11.992976	7.31%	0	2006
	10.000000	11.175837	11.76%	0	2005*

220

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.506054	12.235269	16.46%	1,595	2006
	10.000000	10.506054	5.06%	1,595	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	10.003149	10.213846	2.11%	0	2006
	10.000000	10.003149	0.03%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.513789	10.687295	1.65%	11,528	2006
	10.305973	10.513789	2.02%	3,238	2005
	10.089289	10.305973	2.15%	0	2004
	10.000000	10.089289	0.89%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.912555	16.218791	8.76%	0	2006
	13.548609	14.912555	10.07%	0	2005
	12.540033	13.548609	8.04%	0	2004
	10.000000	12.540033	25.40%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.604499	27.842906	35.13%	0	2006
	17.979835	20.604499	14.60%	0	2005
	13.462423	17.979835	33.56%	0	2004
	10.000000	13.462423	34.62%	0	2003*

221

Additional Contract Options Elected (Total 1.90%)

(Variable account charges of 1.90% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.749928	17.451124	10.80%	0	2006
	15.227522	15.749928	3.43%	0	2005
	14.004498	15.227522	8.73%	0	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.782959	15.381409	4.05%	0	2006
	13.877928	14.782959	6.52%	0	2005
	13.304174	13.877928	4.31%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.853145	19.221592	14.05%	0	2006
	15.721785	16.853145	7.20%	0	2005
	13.903325	15.721785	13.08%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.256160	17.509150	14.77%	0	2006
	14.867466	15.256160	2.61%	0	2005
	13.626250	14.867466	9.11%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.996918	20.163377	12.04%	0	2006
	17.203603	17.996918	4.61%	0	2005
	14.727543	17.203603	16.81%	0	2004

222

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.181408	17.397983	14.60%	0	2006
	14.805759	15.181408	2.54%	0	2005
	13.406642	14.805759	10.44%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.148640	19.762648	22.38%	0	2006
	14.553074	16.148640	10.96%	0	2005
	12.925188	14.553074	12.59%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.432094	15.229159	22.50%	0	2006
	11.216941	12.432094	10.83%	0	2005
	10.000000	11.216941	12.17%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.164123	13.167878	17.95%	0	2006
	10.000000	11.164123	11.64%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.086883	13.351608	-5.22%	0	2006
	14.080863	14.086883	0.04%	0	2005
	12.979076	14.080863	8.49%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.589146	18.117641	16.22%	0	2006
	15.154532	15.589146	2.87%	0	2005
	13.530178	15.154532	12.01%	0	2004

223

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.311135	12.081634	6.81%	0	2006
	10.000000	11.311135	13.11%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.715015	10.678841	-0.34%	0	2006
	10.753920	10.715015	-0.36%	0	2005
	10.360197	10.753920	3.80%	0	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.242482	20.475926	12.24%	0	2006
	17.340425	18.242482	5.20%	0	2005
	14.502323	17.340425	19.57%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.693228	16.606789	13.02%	0	2006
	14.341131	14.693228	2.46%	0	2005
	13.247418	14.341131	8.26%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.252291	15.108418	14.01%	0	2006
	12.973992	13.252291	2.15%	0	2005
	12.619952	12.973992	2.81%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.486336	15.727766	1.56%	0	2006
	14.954456	15.486336	3.56%	0	2005
	13.727773	14.954456	8.94%	0	2004

224

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.642519	16.733131	14.28%	0	2006
	14.244936	14.642519	2.79%	0	2005
	13.260877	14.244936	7.42%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.533690	15.372699	13.59%	0	2006
	13.565101	13.533690	-0.23%	0	2005
	12.909925	13.565101	5.07%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.233395	2.33%	1,132	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.251388	10.451360	1.95%	0	2006
	10.347262	10.251388	-0.93%	0	2005
	10.208760	10.347262	1.36%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.436486	18.162116	17.66%	397	2006
	14.904344	15.436486	3.57%	402	2005
	13.658630	14.904344	9.12%	182	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.449853	15.107734	4.55%	0	2006
	13.960697	14.449853	3.50%	0	2005
	13.800194	13.960697	1.16%	0	2004

225

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.095216	22.062847	15.54%	0	2006
	16.386129	19.095216	16.53%	0	2005
	14.740847	16.386129	11.16%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.805159	14.800306	15.58%	0	2006
	10.992242	12.805159	16.49%	0	2005
	10.000000	10.992242	9.92%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.218465	18.823323	9.32%	212	2006
	15.046148	17.218465	14.44%	212	2005
	13.318501	15.046148	12.97%	0	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.489860	10.716787	2.16%	3,839	2006
	10.493632	10.489860	-0.04%	1,532	2005
	10.266703	10.493632	2.21%	0	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.226375	22.304255	10.27%	0	2006
	17.469531	20.226375	15.78%	0	2005
	14.285435	17.469531	22.29%	0	2004

226

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.605749	21.175246	13.81%	153	2006
	18.515721	18.605749	0.49%	156	2005
	16.579749	18.515721	11.68%	154	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.343898	15.266216	14.41%	0	2006
	10.000000	13.343898	33.44%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.659740	11.459629	7.50%	0	2006
	10.000000	10.659740	6.60%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.965440	12.016865	9.59%	0	2006
	10.000000	10.965440	9.65%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.172924	12.377930	10.79%	0	2006
	10.000000	11.172924	11.73%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.074620	10.75%	0	2006*

227

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.507449	16.669638	14.90%	1,576	2006
	14.297719	14.507449	1.47%	1,775	2005
	13.130408	14.297719	8.89%	189	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.590572	21.335411	14.76%	0	2006
	17.422161	18.590572	6.71%	0	2005
	14.351480	17.422161	21.40%	0	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.642722	15.896831	25.74%	0	2006
	10.000000	12.642722	26.43%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.235606	20.535305	19.14%	0	2006
	15.946817	17.235606	8.08%	0	2005
	13.714467	15.946817	16.28%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.402111	14.778401	19.16%	2,399	2006
	11.478526	12.402111	8.05%	0	2005
	10.000000	11.478526	14.79%	0	2004*

228

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.756257	10.800672	10.71%	0	2006
	10.000000	9.756257	-2.44%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.892454	14.083811	9.24%	0	2006
	12.206327	12.892454	5.62%	0	2005
	11.489832	12.206327	6.24%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.873002	16.991824	7.05%	0	2006
	14.374535	15.873002	10.42%	0	2005
	12.421034	14.374535	15.73%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.624889	31.182106	44.20%	0	2006
	16.706250	21.624889	29.44%	0	2005
	14.348466	16.706250	16.43%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.702316	21.218752	44.32%	598	2006
	11.351574	14.702316	29.52%	0	2005
	10.000000	11.351574	13.52%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.229220	16.573355	8.83%	0	2006
	13.996013	15.229220	8.81%	0	2005
	12.145798	13.996013	15.23%	0	2004

229

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.865705	10.085460	2.23%	1,636	2006
	9.913174	9.865705	-0.48%	0	2005
	10.027045	9.913174	-1.14%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.750579	14.475374	5.27%	0	2006
	13.447732	13.750579	2.25%	0	2005
	12.578028	13.447732	6.91%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.373351	18.174822	18.22%	0	2006
	14.718395	15.373351	4.45%	0	2005
	13.066273	14.718395	12.64%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.968216	15.455776	3.26%	0	2006
	14.827644	14.968216	0.95%	0	2005
	13.510160	14.827644	9.75%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.601915	13.929230	20.06%	4,773	2006
	10.000000	11.601915	16.02%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.862330	17.813577	12.30%	0	2006
	14.254955	15.862330	11.28%	0	2005
	12.523040	14.254955	13.83%	0	2004

230

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.514769	12.531877	8.83%	0	2006
	10.000000	11.514769	15.15%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.232977	15.876667	11.55%	4,766	2006
	13.576843	14.232977	4.83%	0	2005
	12.217327	13.576843	11.13%	0	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.423562	4.24%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.405716	4.06%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.705080	7.05%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.233395	2.33%	1,132	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.896942	13.994206	8.51%	0	2006
	12.840387	12.896942	0.44%	0	2005
	11.888673	12.840387	8.01%	0	2004

231

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.407617	11.292619	8.50%	0	2006
	10.000000	10.407617	4.08%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.518716	34.126891	33.73%	0	2006
	19.656249	25.518716	29.82%	0	2005
	16.636793	19.656249	18.15%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.217878	20.387298	33.97%	528	2006
	11.707931	15.217878	29.98%	637	2005
	10.000000	11.707931	17.08%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.413193	22.113123	34.73%	0	2006
	15.755305	16.413193	4.18%	0	2005
	12.396272	15.755305	27.10%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.087013	16.253267	1.03%	0	2006
	15.220250	16.087013	5.69%	0	2005
	13.709636	15.220250	11.02%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.296940	22.167952	14.88%	0	2006
	19.137305	19.296940	0.83%	0	2005
	16.673885	19.137305	14.77%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.714350	20.517363	9.63%	576	2006
	17.030906	18.714350	9.88%	0	2005
	14.615310	17.030906	16.53%	0	2004

232

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.282129	21.538040	17.81%	0	2006
	16.820811	18.282129	8.69%	0	2005
	14.198438	16.820811	18.47%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.456337	15.532473	0.49%	0	2006
	14.562515	15.456337	6.14%	0	2005
	13.800526	14.562515	5.52%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.426077	10.475746	0.48%	0	2006
	9.818878	10.426077	6.18%	0	2005
	10.000000	9.818878	-1.81%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.142573	16.441771	8.58%	0	2006
	15.555628	15.142573	-2.66%	0	2005
	15.242217	15.555628	2.06%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.537586	11.495534	9.09%	0	2006
	10.825020	10.537586	-2.66%	0	2005
	10.000000	10.825020	8.25%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.293118	10.435493	1.38%	2,634	2006
	10.160331	10.293118	1.31%	0	2005
	10.029912	10.160331	1.30%	0	2004

233

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.142419	11.605099	4.15%	0	2006
	10.994065	11.142419	1.35%	0	2005
	10.708779	10.994065	2.66%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.308781	13.092663	6.37%	0	2006
	12.007837	12.308781	2.51%	0	2005
	11.422629	12.007837	5.12%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.533804	14.784773	9.24%	29,601	2006
	13.095335	13.533804	3.35%	29,601	2005
	12.186797	13.095335	7.46%	29,601	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.040415	16.900988	12.37%	5,966	2006
	14.318239	15.040415	5.04%	0	2005
	13.020880	14.318239	9.96%	0	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.214476	18.590551	14.65%	4,770	2006
	15.313030	16.214476	5.89%	3,517	2005
	13.689404	15.313030	11.86%	1,423	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.241249	16.394589	7.57%	2,095	2006
	14.174797	15.241249	7.52%	0	2005
	12.541472	14.174797	13.02%	0	2004

234

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.841607	10.092529	2.55%	0	2006
	9.770998	9.841607	0.72%	0	2005
	9.880078	9.770998	-1.10%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.774541	16.437022	11.25%	3,882	2006
	14.069386	14.774541	5.01%	0	2005
	13.093531	14.069386	7.45%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.941199	17.512263	-2.39%	0	2006
	16.372223	17.941199	9.58%	0	2005
	14.887980	16.372223	9.97%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.824272	8.24%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.718460	21.276929	20.08%	0	2006
	16.156405	17.718460	9.67%	0	2005
	13.724397	16.156405	17.72%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.549364	15.070189	20.09%	2,891	2006
	11.441520	12.549364	9.68%	688	2005
	10.000000	11.441520	14.42%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.826650	19.218377	7.81%	167	2006
	16.209651	17.826650	9.98%	159	2005
	14.277420	16.209651	13.53%	171	2004

235

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.911026	18.038387	13.37%	2,876	2006
	15.601811	15.911026	1.98%	0	2005
	13.583167	15.601811	14.86%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.402579	11.727753	2.85%	1,170	2006
	11.374821	11.402579	0.24%	1,412	2005
	10.883959	11.374821	4.51%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.638727	15.464505	5.64%	951	2006
	14.229519	14.638727	2.88%	1,148	2005
	13.605001	14.229519	4.59%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.861990	14.813778	15.17%	0	2006
	11.495518	12.861990	11.89%	0	2005
	10.000000	11.495518	14.96%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.685210	22.665556	15.14%	0	2006
	17.591871	19.685210	11.90%	0	2005
	15.084714	17.591871	16.62%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.873541	13.794853	7.16%	0	2006
	12.864250	12.873541	0.07%	0	2005
	12.060288	12.864250	6.67%	0	2004

236

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.513743	16.340170	12.58%	4,438	2006
	13.990832	14.513743	3.74%	194	2005
	13.066755	13.990832	7.07%	193	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.951604	21.317808	12.49%	828	2006
	17.607016	18.951604	7.64%	0	2005
	15.059532	17.607016	16.92%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.803856	15.697055	13.72%	0	2006
	13.371334	13.803856	3.23%	0	2005
	12.267172	13.371334	9.00%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.854247	19.865381	25.30%	0	2006
	14.403520	15.854247	10.07%	0	2005
	12.635959	14.403520	13.99%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.503574	12.933390	3.44%	0	2006
	12.058562	12.503574	3.69%	0	2005
	11.703107	12.058562	3.04%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.172057	11.982837	7.26%	0	2006
	10.000000	11.172057	11.72%	0	2005*

237

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.502507	12.224927	16.40%	0	2006
	10.000000	10.502507	5.03%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.999770	10.205210	2.05%	0	2006
	10.000000	9.999770	0.00%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.499491	10.667339	1.60%	2,064	2006
	10.297210	10.499491	1.96%	0	2005
	10.085843	10.297210	2.10%	0	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.889797	16.185813	8.70%	0	2006
	13.534807	14.889797	10.01%	0	2005
	12.533652	13.534807	7.99%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.573065	27.786328	35.06%	0	2006
	17.961520	20.573065	14.54%	0	2005
	13.455563	17.961520	33.49%	0	2004

238

Additional Contract Options Elected (Total 1.95%)

(Variable account charges of 1.95% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.726871	17.416706	10.74%	0	2006
	15.212974	15.726871	3.38%	0	2005
	13.998255	15.212974	8.68%	0	2004
	10.000000	13.998255	39.98%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.761321	15.351080	4.00%	0	2006
	13.864661	14.761321	6.47%	0	2005
	13.298233	13.864661	4.26%	0	2004
	10.000000	13.298233	32.98%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.828506	19.183735	14.00%	0	2006
	15.706782	16.828506	7.14%	0	2005
	13.897124	15.706782	13.02%	0	2004
	10.000000	13.897124	38.97%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.233868	17.474675	14.71%	0	2006
	14.853284	15.233868	2.56%	0	2005
	13.620181	14.853284	9.05%	0	2004
	10.000000	13.620181	36.20%	0	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.970616	20.123674	11.98%	0	2006
	17.187195	17.970616	4.56%	0	2005
	14.720983	17.187195	16.75%	0	2004
	10.000000	14.720983	47.21%	0	2003*

239

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.159191	17.363685	14.54%	0	2006
	14.791613	15.159191	2.49%	0	2005
	13.400667	14.791613	10.38%	0	2004
	10.000000	13.400667	34.01%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.125002	19.723696	22.32%	0	2006
	14.539160	16.125002	10.91%	0	2005
	12.919416	14.539160	12.54%	0	2004
	10.000000	12.919416	29.19%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.421583	15.208555	22.44%	0	2006
	11.213158	12.421583	10.78%	0	2005
	10.000000	11.213158	12.13%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.160354	13.156741	17.89%	0	2006
	10.000000	11.160354	11.60%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.066272	13.325293	-5.27%	0	2006
	14.067415	14.066272	-0.01%	0	2005
	12.973288	14.067415	8.43%	0	2004
	10.000000	12.973288	29.73%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.566348	18.081962	16.16%	0	2006
	15.140056	15.566348	2.82%	0	2005
	13.524142	15.140056	11.95%	0	2004
	10.000000	13.524142	35.24%	0	2003*

240

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.307314	12.071404	6.76%	125	2006
	10.000000	11.307314	13.07%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.698655	10.657116	-0.39%	0	2006
	10.742961	10.698655	-0.41%	0	2005
	10.354917	10.742961	3.75%	0	2004
	10.000000	10.354917	3.55%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.215806	20.435589	12.19%	0	2006
	17.323874	18.215806	5.15%	0	2005
	14.495863	17.323874	19.51%	0	2004
	10.000000	14.495863	44.96%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.671716	16.574042	12.97%	139	2006
	14.327417	14.671716	2.40%	140	2005
	13.241492	14.327417	8.20%	140	2004
	10.000000	13.241492	32.41%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.232899	15.078643	13.95%	0	2006
	12.961593	13.232899	2.09%	0	2005
	12.614318	12.961593	2.75%	0	2004
	10.000000	12.614318	26.14%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.463665	15.696762	1.51%	0	2006
	14.940160	15.463665	3.50%	0	2005
	13.721639	14.940160	8.88%	0	2004
	10.000000	13.721639	37.22%	0	2003*

241

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.621116	16.700184	14.22%	130	2006
	14.231345	14.621116	2.74%	152	2005
	13.254962	14.231345	7.37%	153	2004
	10.000000	13.254962	32.55%	133	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.513893	15.342410	13.53%	0	2006
	13.552134	13.513893	-0.28%	0	2005
	12.904162	13.552134	5.02%	0	2004
	10.000000	12.904162	29.04%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.229939	2.30%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.236368	10.430737	1.90%	0	2006
	10.337354	10.236368	-0.98%	0	2005
	10.204194	10.337354	1.30%	0	2004
	10.000000	10.204194	2.04%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.413918	18.126350	17.60%	118	2006
	14.890118	15.413918	3.52%	145	2005
	13.652543	14.890118	9.06%	146	2004
	10.000000	13.652543	36.53%	227	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.428718	15.077970	4.50%	0	2006
	13.947355	14.428718	3.45%	0	2005
	13.794032	13.947355	1.11%	0	2004
	10.000000	13.794032	37.94%	0	2003*

242

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.067291	22.019372	15.48%	0	2006
	16.370488	19.067291	16.47%	0	2005
	14.734289	16.370488	11.10%	0	2004
	10.000000	14.734289	47.34%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.794338	14.780294	15.52%	0	2006
	10.988531	12.794338	16.43%	0	2005
	10.000000	10.988531	9.89%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.193267	18.786228	9.27%	0	2006
	15.031767	17.193267	14.38%	0	2005
	13.312564	15.031767	12.91%	0	2004
	10.000000	13.312564	33.13%	0	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.474496	10.695648	2.11%	0	2006
	10.483602	10.474496	-0.09%	0	2005
	10.262112	10.483602	2.16%	0	2004
	10.000000	10.262112	2.62%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.196810	22.260345	10.22%	0	2006
	17.452852	20.196810	15.72%	0	2005
	14.279064	17.452852	22.23%	0	2004
	10.000000	14.279064	42.79%	0	2003*

243

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.578540	21.133526	13.75%	103	2006
	18.498039	18.578540	0.44%	103	2005
	16.572366	18.498039	11.62%	103	2004
	10.000000	16.572366	65.72%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.339408	15.253319	14.35%	128	2006
	10.000000	13.339408	33.39%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.656145	11.449951	7.45%	0	2006
	10.000000	10.656145	6.56%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.961738	12.006703	9.53%	0	2006
	10.000000	10.961738	9.62%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.169149	12.367469	10.73%	0	2006
	10.000000	11.169149	11.69%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.070887	10.71%	0	2006*

244

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.486224	16.636787	14.85%	270	2006
	14.284062	14.486224	1.42%	298	2005
	13.124559	14.284062	8.83%	296	2004
	10.000000	13.124559	31.25%	131	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.563394	21.293406	14.71%	0	2006
	17.405526	18.563394	6.65%	0	2005
	14.345083	17.405526	21.33%	0	2004
	10.000000	14.345083	43.45%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.638452	15.883394	25.68%	0	2006
	10.000000	12.638452	26.38%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.210388	20.494837	19.08%	0	2006
	15.931585	17.210388	8.03%	0	2005
	13.708346	15.931585	16.22%	0	2004
	10.000000	13.708346	37.08%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.391616	14.758392	19.10%	0	2006
	11.474649	12.391616	7.99%	0	2005
	10.000000	11.474649	14.75%	0	2004*

245

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.752951	10.791538	10.65%	0	2006
	10.000000	9.752951	-2.47%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.873580	14.056053	9.19%	0	2006
	12.194655	12.873580	5.57%	0	2005
	11.484704	12.194655	6.18%	0	2004
	10.000000	11.484704	14.85%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.849789	16.958344	6.99%	0	2006
	14.360798	15.849789	10.37%	0	2005
	12.415484	14.360798	15.67%	0	2004
	10.000000	12.415484	24.15%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.593269	31.120689	44.12%	0	2006
	16.690295	21.593269	29.38%	0	2005
	14.342071	16.690295	16.37%	0	2004
	10.000000	14.342071	43.42%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.689923	21.190105	44.25%	0	2006
	11.347757	14.689923	29.45%	0	2005
	10.000000	11.347757	13.48%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.208589	16.542495	8.77%	0	2006
	13.984139	15.208589	8.76%	0	2005
	12.141666	13.984139	15.17%	0	2004
	10.000000	12.141666	21.42%	0	2003*

246

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.851254	10.065578	2.18%	0	2006
	9.903697	9.851254	-0.53%	0	2005
	10.022565	9.903697	-1.19%	0	2004
	10.000000	10.022565	0.23%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.730460	14.446858	5.22%	0	2006
	13.434891	13.730460	2.20%	0	2005
	12.572420	13.434891	6.86%	0	2004
	10.000000	12.572420	25.72%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.350871	18.139026	18.16%	0	2006
	14.704343	15.350871	4.40%	0	2005
	13.060441	14.704343	12.59%	0	2004
	10.000000	13.060441	30.60%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.946321	15.425324	3.20%	0	2006
	14.813472	14.946321	0.90%	0	2005
	13.504135	14.813472	9.70%	0	2004
	10.000000	13.504135	35.04%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.598000	13.917451	20.00%	0	2006
	10.000000	11.598000	15.98%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.838131	17.777348	12.24%	0	2006
	14.240445	15.838131	11.22%	0	2005
	12.516675	14.240445	13.77%	0	2004
	10.000000	12.516675	25.17%	0	2003*

247

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.510881	12.521278	8.78%	0	2006
	10.000000	11.510881	15.11%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.213670	15.847072	11.49%	0	2006
	13.565311	14.213670	4.78%	0	2005
	12.213171	13.565311	11.07%	0	2004
	10.000000	12.213171	22.13%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.420045	4.20%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.402195	4.02%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.701461	7.01%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.229939	2.30%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.878087	13.966646	8.45%	0	2006
	12.828129	12.878087	0.39%	0	2005
	11.883363	12.828129	7.95%	0	2004
	10.000000	11.883363	18.83%	0	2003*

248

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.404099	11.283062	8.45%	0	2006
	10.000000	10.404099	4.04%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.481383	34.059656	33.66%	0	2006
	19.637463	25.481383	29.76%	0	2005
	16.629376	19.637463	18.09%	0	2004
	10.000000	16.629376	66.29%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.205039	20.359741	33.90%	0	2006
	11.703984	15.205039	29.91%	0	2005
	10.000000	11.703984	17.04%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.389189	22.069553	34.66%	0	2006
	15.740266	16.389189	4.12%	0	2005
	12.390753	15.740266	27.03%	0	2004
	10.000000	12.390753	23.91%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.063452	16.221203	0.98%	0	2006
	15.205697	16.063452	5.64%	0	2005
	13.703517	15.205697	10.96%	0	2004
	10.000000	13.703517	37.04%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.268704	22.124258	14.82%	106	2006
	19.119017	19.268704	0.78%	106	2005
	16.666453	19.119017	14.72%	106	2004
	10.000000	16.666453	66.66%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.686979	20.476947	9.58%	0	2006
	17.014645	18.686979	9.83%	0	2005
	14.608788	17.014645	16.47%	0	2004
	10.000000	14.608788	46.09%	0	2003*

249

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.255387	21.495625	17.75%	0	2006
	16.804750	18.255387	8.63%	0	2005
	14.192104	16.804750	18.41%	0	2004
	10.000000	14.192104	41.92%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.433728	15.501858	0.44%	0	2006
	14.548608	15.433728	6.08%	134	2005
	13.794368	14.548608	5.47%	134	2004
	10.000000	13.794368	37.94%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.417260	10.461567	0.43%	0	2006
	9.815556	10.417260	6.13%	0	2005
	10.000000	9.815556	-1.84%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.120449	16.409409	8.52%	0	2006
	15.540781	15.120449	-2.70%	107	2005
	15.235433	15.540781	2.00%	107	2004
	10.000000	15.235433	52.35%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.528683	11.479982	9.04%	0	2006
	10.821368	10.528683	-2.70%	0	2005
	10.000000	10.821368	8.21%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.278047	10.414910	1.33%	0	2006
	10.150616	10.278047	1.26%	0	2005
	10.025426	10.150616	1.25%	0	2004
	10.000000	10.025426	0.25%	0	2003*

250

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.126126	11.582248	4.10%	0	2006
	10.983569	11.126126	1.30%	0	2005
	10.704003	10.983569	2.61%	0	2004
	10.000000	10.704003	7.04%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.290759	13.066840	6.31%	0	2006
	11.996352	12.290759	2.45%	0	2005
	11.417528	11.996352	5.07%	0	2004
	10.000000	11.417528	14.18%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.513991	14.755622	9.19%	0	2006
	13.082811	13.513991	3.30%	0	2005
	12.181349	13.082811	7.40%	0	2004
	10.000000	12.181349	21.81%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	15.018394	16.867668	12.31%	1,284	2006
	14.304552	15.018394	4.99%	1,286	2005
	13.015066	14.304552	9.91%	0	2004
	10.000000	13.015066	30.15%	0	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.190743	18.553909	14.60%	0	2006
	15.298388	16.190743	5.83%	0	2005
	13.683298	15.298388	11.80%	0	2004
	10.000000	13.683298	36.83%	0	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.220574	16.364026	7.51%	0	2006
	14.162771	15.220574	7.47%	0	2005
	12.537202	14.162771	12.97%	0	2004
	10.000000	12.537202	25.37%	0	2003*

251

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.827008	10.072432	2.50%	0	2006
	9.761463	9.827008	0.67%	0	2005
	9.875470	9.761463	-1.15%	0	2004
	10.000000	9.875470	-1.25%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.752925	16.404635	11.20%	0	2006
	14.055950	14.752925	4.96%	0	2005
	13.087692	14.055950	7.40%	0	2004
	10.000000	13.087692	30.88%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.914949	17.477758	-2.44%	122	2006
	16.356587	17.914949	9.53%	122	2005
	14.881339	16.356587	9.91%	122	2004
	10.000000	14.881339	48.81%	0	2003*


NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.820602	8.21%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.694429	21.237273	20.02%	0	2006
	16.142684	17.694429	9.61%	0	2005
	13.719727	16.142684	17.66%	0	2004
	10.000000	13.719727	37.20%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.538773	15.049828	20.03%	0	2006
	11.437668	12.538773	9.63%	0	2005
	10.000000	11.437668	14.38%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.800600	19.180528	7.75%	103	2006
	16.194190	17.800600	9.92%	0	2005
	14.271063	16.194190	13.48%	0	2004
	10.000000	14.271063	42.71%	0	2003*

252

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.887753	18.002842	13.31%	0	2006
	15.586906	15.887753	1.93%	0	2005
	13.577106	15.586906	14.80%	0	2004
	10.000000	13.577106	35.77%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.385869	11.704613	2.80%	0	2006
	11.363940	11.385869	0.19%	0	2005
	10.879096	11.363940	4.46%	0	2004
	10.000000	10.879096	8.79%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.617296	15.434015	5.59%	0	2006
	14.215918	14.617296	2.82%	0	2005
	13.598930	14.215918	4.54%	0	2004
	10.000000	13.598930	35.99%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.851121	14.793739	15.12%	0	2006
	11.491649	12.851121	11.83%	0	2005
	10.000000	11.491649	14.92%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.656415	22.620904	15.08%	119	2006
	17.575066	19.656415	11.84%	120	2005
	15.077980	17.575066	16.56%	120	2004
	10.000000	15.077980	50.78%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.854710	13.767676	7.10%	0	2006
	12.851964	12.854710	0.02%	0	2005
	12.054908	12.851964	6.61%	0	2004
	10.000000	12.054908	20.55%	0	2003*

253

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.492509	16.307973	12.53%	131	2006
	13.977468	14.492509	3.68%	294	2005
	13.060920	13.977468	7.02%	296	2004
	10.000000	13.060920	30.61%	167	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.923917	21.275840	12.43%	0	2006
	17.590220	18.923917	7.58%	0	2005
	15.052827	17.590220	16.86%	0	2004
	10.000000	15.052827	50.53%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.785121	15.667777	13.66%	0	2006
	13.359972	13.785121	3.18%	0	2005
	12.262996	13.359972	8.95%	0	2004
	10.000000	12.262996	22.63%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.832728	19.828334	25.24%	0	2006
	14.391285	15.832728	10.02%	0	2005
	12.631654	14.391285	13.93%	0	2004
	10.000000	12.631654	26.32%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.486580	12.909247	3.38%	0	2006
	12.048297	12.486580	3.64%	0	2005
	11.699112	12.048297	2.98%	0	2004
	10.000000	11.699112	16.99%	0	2003*

T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.168283	11.972698	7.20%	0	2006
	10.000000	11.168283	11.68%	0	2005*

254

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.498960	12.214584	16.34%	0	2006
	10.000000	10.498960	4.99%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.996390	10.196576	2.00%	0	2006
	10.000000	9.996390	-0.04%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.485262	10.647467	1.55%	0	2006
	10.288472	10.485262	1.91%	0	2005
	10.082409	10.288472	2.04%	0	2004
	10.000000	10.082409	0.82%	0	2003*



The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.867089	16.152914	8.65%	0	2006
	13.521031	14.867089	9.96%	0	2005
	12.527281	13.521031	7.93%	0	2004
	10.000000	12.527281	25.27%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.541698	27.729884	34.99%	140	2006
	17.943250	20.541698	14.48%	141	2005
	13.488721	17.943250	33.42%	141	2004
	10.000000	13.448721	34.49%	0	2003*

255

Additional Contract Options Elected (Total 2.00%)

(Variable account charges of 2.00% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.703835	17.382365	10.69%	0	2006
	15.198423	15.703835	3.33%	0	2005
	13.992000	15.198423	8.62%	0	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.739705	15.320803	3.94%	0	2006
	13.851398	14.739705	6.41%	0	2005
	13.292300	13.851398	4.21%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.803873	19.145913	13.94%	0	2006
	15.691767	16.803873	7.09%	0	2005
	13.890922	15.691767	12.96%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.211551	17.440215	14.65%	0	2006
	14.839080	15.211551	2.51%	0	2005
	13.614096	14.839080	9.00%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.944309	20.083994	11.92%	0	2006
	17.170760	17.944309	4.51%	0	2005
	14.714406	17.170760	16.69%	0	2004

256

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.137022	17.329481	14.48%	0	2006
	14.777488	15.137022	2.43%	0	2005
	13.394694	14.777488	10.32%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.101391	19.684809	22.26%	0	2006
	14.525256	16.101391	10.85%	0	2005
	12.913650	14.525256	12.48%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.411076	15.187963	22.37%	0	2006
	11.209371	12.411076	10.72%	0	2005
	10.000000	11.209371	12.09%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.156580	13.145612	17.83%	0	2006
	10.000000	11.156580	11.57%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.045660	13.298995	-5.32%	0	2006
	14.053952	14.045660	-0.06%	0	2005
	12.967491	14.053952	8.38%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.543549	18.046287	16.10%	1,426	2006
	15.125572	15.543549	2.76%	0	2005
	13.518096	15.125572	11.89%	0	2004

257

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.303491	12.061190	6.70%	0	2006
	10.000000	11.303491	13.03%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.682311	10.635425	-0.44%	0	2006
	10.732007	10.682311	-0.46%	0	2005
	10.349636	10.732007	3.69%	0	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.189148	20.395311	12.13%	0	2006
	17.307319	18.189148	5.10%	0	2005
	14.489397	17.307319	19.45%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.650249	16.541374	12.91%	0	2006
	14.313731	14.650249	2.35%	0	2005
	13.235593	14.313731	8.15%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.213518	15.048908	13.89%	0	2006
	12.949201	13.213518	2.04%	0	2005
	12.608682	12.949201	2.70%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.441047	15.665831	1.46%	0	2006
	14.925899	15.441047	3.45%	0	2005
	13.715524	14.925899	8.82%	0	2004

258

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.599699	16.667239	14.16%	0	2006
	14.217726	14.599699	2.69%	0	2005
	13.249039	14.217726	7.31%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.494105	15.312158	13.47%	0	2006
	13.539186	13.494105	-0.33%	0	2005
	12.898411	13.539186	4.97%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.226475	2.26%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.221367	10.410154	1.85%	0	2006
	10.327466	10.221367	-1.03%	0	2005
	10.199626	10.327466	1.25%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.391340	18.090595	17.54%	0	2006
	14.875872	15.391340	3.47%	0	2005
	13.646439	14.875872	9.01%	0	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.407585	15.048226	4.45%	0	2006
	13.934014	14.407585	3.40%	0	2005
	13.787874	13.934014	1.06%	0	2004

259

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.039399	21.975993	15.42%	0	2006
	16.354848	19.039399	16.41%	0	2005
	14.727704	16.354848	11.05%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.783502	14.760267	15.46%	0	2006
	10.984823	12.783502	16.37%	0	2005
	10.000000	10.984823	9.85%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.168092	18.749174	9.21%	0	2006
	15.017388	17.168092	14.32%	0	2005
	13.306622	15.017388	12.86%	0	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.459156	10.674560	2.06%	0	2006
	10.473565	10.459156	-0.14%	0	2005
	10.257524	10.473565	2.11%	0	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.167250	22.216447	10.16%	0	2006
	17.436169	20.167250	15.66%	0	2005
	14.272687	17.436169	22.16%	0	2004

260

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.551354	21.091888	13.69%	0	2006
	18.480368	18.551354	0.38%	0	2005
	16.564974	18.480368	11.56%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.334901	15.240404	14.29%	0	2006
	10.000000	13.334901	33.35%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.652543	11.440257	7.39%	0	2006
	10.000000	10.652543	6.53%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.958037	11.996552	9.48%	0	2006
	10.000000	10.958037	9.58%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.165376	12.356992	10.67%	0	2006
	10.000000	11.165376	11.65%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.067139	10.67%	0	2006*

261

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.465009	16.603985	14.79%	0	2006
	14.270396	14.465009	1.36%	0	2005
	13.118697	14.270396	8.78%	0	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.536218	21.251414	14.65%	0	2006
	17.388881	18.536218	6.60%	0	2005
	14.338680	17.388881	21.27%	0	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.634183	15.869953	25.61%	0	2006
	10.000000	12.634183	26.34%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.185226	20.454471	19.02%	0	2006
	15.916376	17.185226	7.97%	0	2005
	13.702237	15.916376	16.16%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.381147	14.738430	19.04%	0	2006
	11.470781	12.381147	7.94%	0	2005
	10.000000	11.470781	14.71%	0	2004*

262

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.749654	10.782410	10.59%	0	2006
	10.000000	9.749654	-2.50%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.854723	14.028334	9.13%	0	2006
	12.182985	12.854723	5.51%	0	2005
	11.479571	12.182985	6.13%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.826592	16.924911	6.94%	0	2006
	14.347068	15.826592	10.31%	0	2005
	12.409946	14.347068	15.61%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.561672	31.059367	44.05%	0	2006
	16.674337	21.561672	29.31%	0	2005
	14.335673	16.674337	16.31%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.677503	21.161428	44.18%	0	2006
	11.343922	14.677503	29.39%	0	2005
	10.000000	11.343922	13.44%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.187919	16.511603	8.72%	0	2006
	13.972243	15.187919	8.70%	0	2005
	12.137534	13.972243	15.12%	0	2004

263

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.836823	10.045719	2.12%	0	2006
	9.894218	9.836823	-0.58%	0	2005
	10.018073	9.894218	-1.24%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.710361	14.418372	5.16%	0	2006
	13.422048	13.710361	2.15%	0	2005
	12.566816	13.422048	6.81%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.328391	18.103254	18.10%	0	2006
	14.690284	15.328391	4.34%	0	2005
	13.054616	14.690284	12.53%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.924447	15.394913	3.15%	0	2006
	14.799321	14.924447	0.85%	0	2005
	13.498105	14.799321	9.64%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.594091	13.905693	19.94%	0	2006
	10.000000	11.594091	15.94%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.813964	17.741203	12.19%	0	2006
	14.225949	15.813964	11.16%	0	2005
	12.510308	14.225949	13.71%	0	2004

264

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.506997	12.510678	8.72%	0	2006
	10.000000	11.506997	15.07%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.194362	15.817494	11.44%	0	2006
	13.553780	14.194362	4.73%	0	2005
	12.209006	13.553780	11.01%	0	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.416519	4.17%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.398680	3.99%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.697846	6.98%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.226475	2.26%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.859225	13.939108	8.40%	0	2006
	12.815853	12.859225	0.34%	0	2005
	11.878062	12.815853	7.90%	0	2004

265

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.400579	11.273516	8.39%	0	2006
	10.000000	10.400579	4.01%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.444107	33.992546	33.60%	0	2006
	19.618701	25.444107	29.69%	0	2005
	16.621951	19.618701	18.03%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.192178	20.332185	33.83%	0	2006
	11.700031	15.192178	29.85%	0	2005
	10.000000	11.700031	17.00%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.365182	22.026038	34.59%	0	2006
	15.725198	16.365182	4.07%	0	2005
	12.385201	15.725198	26.97%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.039936	16.189221	0.93%	0	2006
	15.191147	16.039936	5.59%	0	2005
	13.697399	15.191147	10.91%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.240517	22.080654	14.76%	0	2006
	19.100756	19.240517	0.73%	0	2005
	16.659014	19.100756	14.66%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.659637	20.436580	9.52%	0	2006
	16.998385	18.659637	9.77%	0	2005
	14.602274	16.998385	16.41%	0	2004

266

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.228665	21.453246	17.69%	0	2006
	16.788685	18.228665	8.58%	0	2005
	14.185775	16.788685	18.35%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.411122	15.471278	0.39%	0	2006
	14.534694	15.411122	6.03%	0	2005
	13.788206	14.534694	5.41%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.408458	10.447409	0.37%	0	2006
	9.812247	10.408458	6.08%	0	2005
	10.000000	9.812247	-1.88%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.098311	16.377045	8.47%	0	2006
	15.525923	15.098311	-2.75%	0	2005
	15.228629	15.525923	1.95%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.519779	11.464440	8.98%	0	2006
	10.817727	10.519779	-2.75%	0	2005
	10.000000	10.817727	8.18%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.262991	10.394371	1.28%	0	2006
	10.140898	10.262991	1.20%	0	2005
	10.020956	10.140898	1.20%	0	2004

267

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.109804	11.559372	4.05%	0	2006
	10.973047	11.109804	1.25%	0	2005
	10.699211	10.973047	2.56%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.272756	13.041070	6.26%	0	2006
	11.984874	12.272756	2.40%	0	2005
	11.412415	11.984874	5.02%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.494221	14.726538	9.13%	0	2006
	13.070314	13.494221	3.24%	0	2005
	12.175914	13.070314	7.35%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	14.996405	16.834397	12.26%	6,068	2006
	14.290884	14.996405	4.94%	7,594	2005
	13.009258	14.290884	9.85%	7,600	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.167042	18.517327	14.54%	0	2006
	15.283768	16.167042	5.78%	0	2005
	13.677198	15.283768	11.75%	0	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.199896	16.333481	7.46%	0	2006
	14.150723	15.199896	7.41%	0	2005
	12.532938	14.150723	12.91%	0	2004

268

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.812418	10.052363	2.45%	0	2006
	9.751932	9.812418	0.62%	0	2005
	9.870861	9.751932	-1.20%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.731332	16.372298	11.14%	0	2006
	14.042516	14.731332	4.91%	0	2005
	13.081852	14.042516	7.34%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.888733	17.443298	-2.49%	0	2006
	16.340956	17.888733	9.47%	0	2005
	14.874700	16.340956	9.86%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.816951	8.17%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.670393	21.197648	19.96%	0	2006
	16.128964	17.670393	9.56%	0	2005
	13.715059	16.128964	17.60%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.528177	15.029456	19.97%	0	2006
	11.433814	12.528177	9.57%	0	2005
	10.000000	11.433814	14.34%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.774527	19.142699	7.70%	0	2006
	16.178697	17.774527	9.86%	0	2005
	14.264686	16.178697	13.42%	0	2004

269

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.864498	17.967360	13.26%	0	2006
	15.572011	15.864498	1.88%	0	2005
	13.571043	15.572011	14.74%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.369198	11.681535	2.75%	0	2006
	11.353070	11.369198	0.14%	0	2005
	10.874234	11.353070	4.40%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.595903	15.403590	5.53%	0	2006
	14.202325	14.595903	2.77%	0	2005
	13.592855	14.202325	4.48%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.840264	14.773726	15.06%	0	2006
	11.487770	12.840264	11.77%	0	2005
	10.000000	11.487770	14.88%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.627656	22.576320	15.02%	0	2006
	17.558275	19.627656	11.79%	0	2005
	15.071262	17.558275	16.50%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.835886	13.740526	7.05%	0	2006
	12.839669	12.835886	-0.03%	0	2005
	12.049521	12.839669	6.56%	0	2004

270

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.471295	16.275822	12.47%	0	2006
	13.964102	14.471295	3.63%	0	2005
	13.055094	13.964102	6.96%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.896219	21.233889	12.37%	0	2006
	17.573405	18.896219	7.53%	0	2005
	15.046104	17.573405	16.80%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.766406	15.638555	13.60%	0	2006
	13.348624	13.766406	3.13%	0	2005
	12.258826	13.348624	8.89%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.811219	19.791330	25.17%	0	2006
	14.379043	15.811219	9.96%	0	2005
	12.627350	14.379043	13.87%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.469622	12.885158	3.33%	0	2006
	12.038057	12.469622	3.59%	0	2005
	11.695132	12.038057	2.93%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.164508	11.962577	7.15%	0	2006
	10.000000	11.164508	11.65%	0	2005*

271

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.495418	12.204263	16.28%	0	2006
	10.000000	10.495418	4.95%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.993010	10.187943	1.95%	0	2006
	10.000000	9.993010	-0.07%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.471001	10.627583	1.50%	0	2006
	10.279707	10.471001	1.86%	0	2005
	10.078970	10.279707	1.99%	0	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.844367	16.120023	8.59%	0	2006
	13.507234	14.844367	9.90%	0	2005
	12.520883	13.507234	7.88%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.510331	27.673479	34.92%	0	2006
	17.924956	20.510331	14.42%	0	2005
	13.441870	17.924956	33.35%	0	2004

272

Additional Contract Options Elected (Total 2.05%)

(Variable account charges of 2.05% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.680851	17.348097	10.63%	0	2006
	15.183899	15.680851	3.27%	0	2005
	13.985760	15.183899	8.57%	0	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.718123	15.290591	3.89%	0	2006
	13.838157	14.718123	6.36%	0	2005
	13.286364	13.838157	4.15%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.779275	19.108161	13.88%	0	2006
	15.676768	16.779275	7.03%	0	2005
	13.884724	15.676768	12.91%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.189296	17.405833	14.59%	0	2006
	14.824901	15.189296	2.46%	0	2005
	13.608022	14.824901	8.94%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.918036	20.044400	11.87%	0	2006
	17.154343	17.918036	4.45%	0	2005
	14.707841	17.154343	16.63%	0	2004

273

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.114823	17.295269	14.43%	0	2006
	14.763325	15.114823	2.38%	0	2005
	13.388693	14.763325	10.27%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.077820	19.645991	22.19%	0	2006
	14.511378	16.077820	10.79%	0	2005
	12.907885	14.511378	12.42%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.400583	15.167411	22.31%	0	2006
	11.205590	12.400583	10.66%	0	2005
	10.000000	11.205590	12.06%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.152811	13.134493	17.77%	0	2006
	10.000000	11.152811	11.53%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.025081	13.272747	-5.36%	0	2006
	14.040497	14.025081	-0.11%	0	2005
	12.961691	14.040497	8.32%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.520786	18.010698	16.04%	0	2006
	15.111116	15.520786	2.71%	0	2005
	13.512065	15.111116	11.83%	0	2004

274

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.299669	12.050982	6.65%	0	2006
	10.000000	11.299669	13.00%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.665985	10.613767	-0.49%	0	2006
	10.721060	10.665985	-0.51%	0	2005
	10.344356	10.721060	3.64%	0	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.162532	20.355099	12.07%	0	2006
	17.290778	18.162532	5.04%	0	2005
	14.482926	17.290778	19.39%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.628794	16.508747	12.85%	0	2006
	14.300041	14.628794	2.30%	0	2005
	13.229679	14.300041	8.09%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.194185	15.019248	13.83%	266	2006
	12.936823	13.194185	1.99%	0	2005
	12.603055	12.936823	2.65%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.418441	15.634927	1.40%	0	2006
	14.911623	15.418441	3.40%	0	2005
	13.709405	14.911623	8.77%	0	2004

275

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.578305	16.634357	14.10%	0	2006
	14.204124	14.578305	2.63%	0	2005
	13.243124	14.204124	7.26%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.474333	15.281941	13.42%	0	2006
	13.526220	13.474333	-0.38%	0	2005
	12.892635	13.526220	4.91%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.223017	2.23%	11,609	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.206382	10.389604	1.80%	0	2006
	10.317582	10.206382	-1.08%	0	2005
	10.195062	10.317582	1.20%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.368821	18.054937	17.48%	0	2006
	14.861653	15.368821	3.41%	0	2005
	13.640353	14.861653	8.95%	0	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.386490	15.018540	4.39%	0	2006
	13.920691	14.386490	3.35%	0	2005
	13.781718	13.920691	1.01%	0	2004

276

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	19.011494	21.932626	15.37%	0	2006
	16.339193	19.011494	16.36%	0	2005
	14.721125	16.339193	10.99%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.772696	14.740282	15.40%	0	2006
	10.981123	12.772696	16.32%	0	2005
	10.000000	10.981123	9.81%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.142949	18.712188	9.15%	206	2006
	15.003027	17.142949	14.26%	0	2005
	13.300678	15.003027	12.80%	0	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.443820	10.653482	2.01%	20,107	2006
	10.463537	10.443820	-0.19%	4,370	2005
	10.252933	10.463537	2.05%	0	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.137717	22.172632	10.10%	173	2006
	17.419498	20.137717	15.60%	0	2005
	14.266319	17.419498	22.10%	0	2004

277

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.524206	21.050300	13.64%	0	2006
	18.462717	18.524206	0.33%	0	2005
	16.557596	18.462717	11.51%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.330408	15.227511	14.23%	0	2006
	10.000000	13.330408	33.30%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.648948	11.430576	7.34%	0	2006
	10.000000	10.648948	6.49%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.954327	11.986381	9.42%	13,334	2006
	10.000000	10.954327	9.54%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.161593	12.346527	10.62%	0	2006
	10.000000	11.161593	11.62%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.063397	10.63%	0	2006*

278

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.443825	16.571233	14.73%	0	2006
	14.256750	14.443825	1.31%	0	2005
	13.112843	14.256750	8.72%	0	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.509091	21.209528	14.59%	0	2006
	17.372271	18.509091	6.54%	0	2005
	14.332287	17.372271	21.21%	0	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.629924	15.856537	25.55%	0	2006
	10.000000	12.629924	26.30%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.160035	20.414100	18.96%	0	2006
	15.901138	17.160035	7.92%	0	2005
	13.696109	15.901138	16.10%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.370668	14.718460	18.98%	17,067	2006
	11.466910	12.370668	7.88%	5,144	2005
	10.000000	11.466910	14.67%	0	2004*

279

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.746350	10.773268	10.54%	0	2006
	10.000000	9.746350	-2.54%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.835888	14.000649	9.07%	0	2006
	12.171323	12.835888	5.46%	0	2005
	11.474432	12.171323	6.07%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.803415	16.891524	6.89%	0	2006
	14.333356	15.803415	10.26%	0	2005
	12.404395	14.333356	15.55%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.530106	30.998135	43.98%	0	2006
	16.658394	21.530106	29.24%	0	2005
	14.329271	16.658394	16.25%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.665093	21.132782	44.10%	4,306	2006
	11.340105	14.665093	29.32%	0	2005
	10.000000	11.340105	13.40%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.167281	16.480789	8.66%	0	2006
	13.960361	15.167281	8.65%	0	2005
	12.133402	13.960361	15.06%	0	2004

280

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.822401	10.025895	2.07%	13,971	2006
	9.884739	9.822401	-0.63%	0	2005
	10.013601	9.884739	-1.29%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.690268	14.389907	5.11%	0	2006
	13.409185	13.690268	2.10%	0	2005
	12.561188	13.409185	6.75%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.305948	18.067550	18.04%	0	2006
	14.676237	15.305948	4.29%	0	2005
	13.048782	14.676237	12.47%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.902574	15.364529	3.10%	0	2006
	14.785157	14.902574	0.79%	0	2005
	13.492076	14.785157	9.58%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.590165	13.893915	19.88%	33,736	2006
	10.000000	11.590165	15.90%	8,703	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.789820	17.705101	12.13%	0	2006
	14.211453	15.789820	11.11%	0	2005
	12.503945	14.211453	13.66%	0	2004

281

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.503106	12.500086	8.67%	0	2006
	10.000000	11.503106	15.03%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.175083	15.787973	11.38%	34,753	2006
	13.542257	14.175083	4.67%	8,295	2005
	12.204855	13.542257	10.96%	0	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.412999	4.13%	8,298	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.395160	3.95%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.694225	6.94%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.223017	2.23%	11,609	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.840388	13.911607	8.34%	0	2006
	12.803603	12.840388	0.29%	0	2005
	11.872754	12.803603	7.84%	0	2004

282

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.397061	11.263973	8.34%	0	2006
	10.000000	10.397061	3.97%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.406901	33.925580	33.53%	0	2006
	19.599967	25.406901	29.63%	0	2005
	16.614545	19.599967	17.97%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.179352	20.304691	33.77%	0	2006
	11.696090	15.179352	29.78%	0	2005
	10.000000	11.696090	16.96%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.341213	21.982607	34.52%	0	2006
	15.710171	16.341213	4.02%	0	2005
	12.379670	15.710171	26.90%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	16.016489	16.157321	0.88%	0	2006
	15.176647	16.016489	5.53%	0	2005
	13.691297	15.176647	10.85%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.212316	22.037087	14.70%	0	2006
	19.082471	19.212316	0.68%	0	2005
	16.651575	19.082471	14.60%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.632321	20.396289	9.47%	4,235	2006
	16.982135	18.632321	9.72%	967	2005
	14.595763	16.982135	16.35%	0	2004

283

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.201963	21.410903	17.63%	0	2006
	16.772628	18.201963	8.52%	0	2005
	14.179440	16.772628	18.29%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.388553	15.440764	0.34%	0	2006
	14.520792	15.388553	5.98%	0	2005
	13.782051	14.520792	5.36%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.399656	10.433256	0.32%	0	2006
	9.808944	10.399656	6.02%	0	2005
	10.000000	9.808944	-1.91%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.076196	16.344742	8.41%	0	2006
	15.511083	15.076196	-2.80%	0	2005
	15.221842	15.511083	1.90%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.510879	11.448908	8.92%	0	2006
	10.814081	10.510879	-2.80%	0	2005
	10.000000	10.814081	8.14%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.247946	10.373859	1.23%	20,630	2006
	10.131190	10.247946	1.15%	4,452	2005
	10.016466	10.131190	1.15%	0	2004

284

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.093530	11.536569	3.99%	0	2006
	10.962542	11.093530	1.19%	0	2005
	10.694430	10.962542	2.51%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.254779	13.015336	6.21%	0	2006
	11.973403	12.254779	2.35%	0	2005
	11.407324	11.973403	4.96%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.474435	14.697465	9.08%	7,663	2006
	13.057801	13.474435	3.19%	7,665	2005
	12.170466	13.057801	7.29%	5,046	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	14.974431	16.801179	12.20%	50,833	2006
	14.277204	14.974431	4.88%	44,324	2005
	13.003440	14.277204	9.80%	0	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.143361	18.480800	14.48%	12,748	2006
	15.269138	16.143361	5.73%	10,709	2005
	13.671080	15.269138	11.69%	0	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.179239	16.302970	7.40%	15,275	2006
	14.138683	15.179239	7.36%	4,740	2005
	12.528665	14.138683	12.85%	0	2004

285

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.797849	10.032335	2.39%	2,602	2006
	9.742408	9.797849	0.57%	16,387	2005
	9.866252	9.742408	-1.26%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.709754	16.339996	11.08%	28,472	2006
	14.029076	14.709754	4.85%	7,342	2005
	13.076000	14.029076	7.29%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.862538	17.408887	-2.54%	0	2006
	16.325331	17.862538	9.42%	0	2005
	14.868058	16.325331	9.80%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.813290	8.13%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.646394	21.158085	19.90%	0	2006
	16.115262	17.646394	9.50%	0	2005
	13.710396	16.115262	17.54%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.517575	15.009110	19.90%	16,740	2006
	11.429957	12.517575	9.52%	5,077	2005
	10.000000	11.429957	14.30%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.748516	19.104962	7.64%	0	2006
	16.163229	17.748516	9.81%	0	2005
	14.258318	16.163229	13.36%	0	2004

286

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.841252	17.931895	13.20%	21,127	2006
	15.557110	15.841252	1.83%	6,827	2005
	13.564975	15.557110	14.69%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.352549	11.658490	2.69%	0	2006
	11.342216	11.352549	0.09%	0	2005
	10.869371	11.342216	4.35%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.574517	15.373179	5.48%	249	2006
	14.188733	14.574517	2.72%	0	2005
	13.586785	14.188733	4.43%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.829390	14.753720	15.00%	0	2006
	11.483888	12.829390	11.72%	0	2005
	10.000000	11.483888	14.84%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.598892	22.531760	14.96%	0	2006
	17.541465	19.598892	11.73%	0	2005
	15.064518	17.541465	16.44%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.817079	13.713423	6.99%	0	2006
	12.827384	12.817079	-0.08%	0	2005
	12.044132	12.827384	6.50%	0	2004

287

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.450104	16.243720	12.41%	36,254	2006
	13.950757	14.450104	3.58%	7,460	2005
	13.049268	13.950757	6.91%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.868546	21.192011	12.31%	5,969	2006
	17.556599	18.868546	7.47%	953	2005
	15.039396	17.556599	16.74%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.747700	15.609361	13.54%	0	2006
	13.337274	13.747700	3.08%	0	2005
	12.254650	13.337274	8.83%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.789756	19.754407	25.11%	0	2006
	14.366828	15.789756	9.90%	0	2005
	12.623059	14.366828	13.81%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.452706	12.861125	3.28%	0	2006
	12.027836	12.452706	3.53%	0	2005
	11.691158	12.027836	2.88%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.160740	11.952445	7.09%	3,530	2006
	10.000000	11.160740	11.61%	0	2005*

288

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.491870	12.193930	16.22%	2,609	2006
	10.000000	10.491870	4.92%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.989630	10.179315	1.90%	0	2006
	10.000000	9.989630	-0.10%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.456755	10.607728	1.44%	16,115	2006
	10.270946	10.456755	1.81%	3,492	2005
	10.075530	10.270946	1.94%	0	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.821686	16.087202	8.54%	0	2006
	13.493469	14.821686	9.84%	0	2005
	12.514501	13.493469	7.82%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.479033	27.617212	34.86%	0	2006
	17.906714	20.479033	14.37%	0	2005
	13.435027	17.906714	33.28%	0	2004

289

Additional Contract Options Elected (Total 2.10%)

(Variable account charges of 2.10% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.657871	17.313857	10.58%	3,264	2006
	15.169376	15.657871	3.22%	3,848	2005
	13.979518	15.169376	8.51%	3,541	2004
	10.000000	13.979518	39.80%	0	2003*


AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.696550	15.260405	3.84%	2,023	2006
	13.824911	14.696550	6.30%	2,023	2005
	13.280420	13.824911	4.10%	2,023	2004
	10.000000	13.280420	32.80%	0	2003*



AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.754692	19.070446	13.82%	273	2006
	15.661763	16.754692	6.98%	273	2005
	13.878517	15.661763	12.85%	0	2004
	10.000000	13.878517	38.79%	0	2003*



AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.167034	17.371482	14.53%	0	2006
	14.810710	15.167034	2.41%	0	2005
	13.601946	14.810710	8.89%	0	2004
	10.000000	13.601946	36.02%	0	2003*




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.891791	20.004835	11.81%	0	2006
	17.137935	17.891791	4.40%	0	2005
	14.701271	17.137935	16.57%	0	2004
	10.000000	14.701271	47.01%	0	2003*

290

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.092690	17.261152	14.37%	0	2006
	14.749211	15.092690	2.33%	0	2005
	13.382710	14.749211	10.21%	0	2004
	10.000000	13.382710	33.83%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.054265	19.607227	22.13%	0	2006
	14.497488	16.054265	10.74%	0	2005
	12.902120	14.497488	12.37%	0	2004
	10.000000	12.902120	29.02%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.390106	15.146877	22.25%	0	2006
	11.201820	12.390106	10.61%	0	2005
	10.000000	11.201820	12.02%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.149040	13.123367	17.71%	0	2006
	10.000000	11.149040	11.49%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	14.004540	13.246557	-5.41%	0	2006
	14.027081	14.004540	-0.16%	0	2005
	12.955910	14.027081	8.27%	0	2004
	10.000000	12.955910	29.56%	0	2003*



American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.498037	17.975152	15.98%	384	2006
	15.096644	15.498037	2.66%	384	2005
	13.506024	15.096644	11.78%	0	2004
	10.000000	13.506024	35.06%	0	2003*

291

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.295864	12.040781	6.59%	0	2006
	10.000000	11.295864	12.96%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.649676	10.592145	-0.54%	138	2006
	10.710117	10.649676	-0.56%	138	2005
	10.339077	10.710117	3.59%	0	2004
	10.000000	10.339077	3.39%	0	2003*




Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.135933	20.314945	12.01%	0	2006
	17.274245	18.135933	4.99%	0	2005
	14.476466	17.274245	19.33%	0	2004
	10.000000	14.476466	44.76%	0	2003*



Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.607347	16.476163	12.79%	0	2006
	14.286350	14.607347	2.25%	0	2005
	13.223766	14.286350	8.04%	0	2004
	10.000000	13.223766	32.24%	0	2003*

Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.174846	14.989587	13.77%	4,145	2006
	12.924440	13.174846	1.94%	4,122	2005
	12.597418	12.924440	2.60%	3,652	2004
	10.000000	12.597418	25.97%	0	2003*


Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.395830	15.604053	1.35%	0	2006
	14.897335	15.395830	3.35%	0	2005
	13.703275	14.897335	8.71%	0	2004
	10.000000	13.703275	37.03%	0	2003*

292

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.556952	16.601546	14.05%	0	2006
	14.190535	14.556952	2.58%	0	2005
	13.237204	14.190535	7.20%	0	2004
	10.000000	13.237204	32.37%	0	2003*


Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.454576	15.251778	13.36%	0	2006
	13.513275	13.454576	-0.43%	0	2005
	12.886877	13.513275	4.86%	0	2004
	10.000000	12.886877	28.87%	0	2003*


Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.219554	2.20%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.191431	10.369103	1.74%	0	2006
	10.307707	10.191431	-1.13%	0	2005
	10.190502	10.307707	1.15%	0	2004
	10.000000	10.190502	1.91%	0	2003*


Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.346286	18.019294	17.42%	1,584	2006
	14.847432	15.346286	3.36%	1,879	2005
	13.634249	14.847432	8.90%	1,879	2004
	10.000000	13.634249	36.34%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.365402	14.988895	4.34%	1,173	2006
	13.907364	14.365402	3.29%	1,173	2005
	13.775565	13.907364	0.96%	1,173	2004
	10.000000	13.775565	37.76%	0	2003*

293

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	18.983665	21.889365	15.31%	0	2006
	16.323571	18.983665	16.30%	0	2005
	14.714552	16.323571	10.93%	0	2004
	10.000000	14.714552	47.15%	0	2003*



Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.761915	14.720344	15.35%	313	2006
	10.977423	12.761915	16.26%	313	2005
	10.000000	10.977423	9.77%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.117834	18.675265	9.10%	3,893	2006
	14.988674	17.117834	14.21%	3,795	2005
	13.294731	14.988674	12.74%	3,795	2004
	10.000000	13.294731	32.95%	0	2003*



Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.428513	10.632447	1.96%	336	2006
	10.453517	10.428513	-0.24%	336	2005
	10.248354	10.453517	2.00%	0	2004
	10.000000	10.248354	2.48%	0	2003*




Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.108230	22.128891	10.05%	1,037	2006
	17.402840	20.108230	15.55%	1,037	2005
	14.259951	17.402840	22.04%	1,037	2004
	10.000000	14.259951	42.60%	0	2003*

294

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.497060	21.008749	13.58%	0	2006
	18.445047	18.497060	0.28%	0	2005
	16.550196	18.445047	11.45%	0	2004
	10.000000	16.550196	65.50%	0	2003*



Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.325902	15.214616	14.17%	0	2006
	10.000000	13.325902	33.26%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.645340	11.420894	7.29%	0	2006
	10.000000	10.645340	6.45%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.950625	11.976237	9.37%	0	2006
	10.000000	10.950625	9.51%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.157822	12.336072	10.56%	0	2006
	10.000000	11.157822	11.58%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.059653	10.60%	0	2006*

295

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.422662	16.538532	14.67%	4,209	2006
	14.243111	14.422662	1.26%	4,814	2005
	13.106978	14.243111	8.67%	4,814	2004
	10.000000	13.106978	31.07%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.481973	21.167670	14.53%	0	2006
	17.355641	18.481973	6.49%	0	2005
	14.325876	17.355641	21.15%	0	2004
	10.000000	14.325876	43.26%	0	2003*




Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.625657	15.843098	25.48%	0	2006
	10.000000	12.625657	26.26%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.134893	20.373817	18.90%	0	2006
	15.885923	17.134893	7.86%	0	2005
	13.689987	15.885923	16.04%	0	2004
	10.000000	13.689987	36.90%	0	2003*



Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.360206	14.698535	18.92%	0	2006
	11.463043	12.360206	7.83%	0	2005
	10.000000	11.463043	14.63%	0	2004*

296

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.743053	10.764143	10.48%	0	2006
	10.000000	9.743053	-2.57%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.817080	13.973015	9.02%	0	2006
	12.159675	12.817080	5.41%	0	2005
	11.469301	12.159675	6.02%	0	2004
	10.000000	11.469301	14.69%	0	2003*


Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.780255	16.858184	6.83%	0	2006
	14.319641	15.780255	10.20%	0	2005
	12.398860	14.319641	15.49%	0	2004
	10.000000	12.398860	23.99%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.498566	30.936981	43.90%	0	2006
	16.642455	21.498566	29.18%	0	2005
	14.322870	16.642455	16.19%	0	2004
	10.000000	14.322870	43.23%	0	2003*


Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.652679	21.104157	44.03%	0	2006
	11.336265	14.652679	29.25%	0	2005
	10.000000	11.336265	13.36%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.146668	16.450008	8.60%	0	2006
	13.948481	15.146668	8.59%	0	2005
	12.129267	13.948481	15.00%	0	2004
	10.000000	12.129267	21.29%	0	2003*

297

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.808011	10.006105	2.02%	448	2006
	9.875283	9.808011	-0.68%	448	2005
	10.009117	9.875283	-1.34%	0	2004
	10.000000	10.009117	0.09%	0	2003*



MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.670234	14.361547	5.06%	0	2006
	13.396381	13.670234	2.04%	0	2005
	12.555586	13.396381	6.70%	0	2004
	10.000000	12.555586	25.56%	0	2003*



MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.283513	18.031896	17.98%	2,305	2006
	14.662186	15.283513	4.24%	2,305	2005
	13.042944	14.662186	12.41%	2,305	2004
	10.000000	13.042944	30.43%	0	2003*


Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.880759	15.334216	3.05%	0	2006
	14.771022	14.880759	0.74%	0	2005
	13.486046	14.771022	9.53%	0	2004
	10.000000	13.486046	34.86%	0	2003*



Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.586254	13.882161	19.82%	325	2006
	10.000000	11.586254	15.86%	325	2005*



Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.765674	17.669024	12.07%	0	2006
	14.196939	15.765674	11.05%	0	2005
	12.497552	14.196939	13.60%	0	2004
	10.000000	12.497552	24.98%	0	2003*

298

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.499217	12.489503	8.61%	0	2006
	10.000000	11.499217	14.99%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.155819	15.758503	11.32%	0	2006
	13.530734	14.155819	4.62%	0	2005
	12.200696	13.530734	10.90%	0	2004
	10.000000	12.200696	22.01%	0	2003*



NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.409468	4.09%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.391646	3.92%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.690610	6.91%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.219554	2.20%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.821551	13.884132	8.29%	0	2006
	12.791328	12.821551	0.24%	0	2005
	11.867438	12.791328	7.79%	0	2004
	10.000000	11.867438	18.67%	0	2003*

299

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.393547	11.254436	8.28%	0	2006
	10.000000	10.393547	3.94%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.369691	33.858651	33.46%	0	2006
	19.581218	25.369691	29.56%	0	2005
	16.607127	19.581218	17.91%	0	2004
	10.000000	16.607127	66.07%	0	2003*


NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.166512	20.277193	33.70%	0	2006
	11.692144	15.166512	29.72%	0	2005
	10.000000	11.692144	16.92%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.317267	21.939225	34.45%	0	2006
	15.695131	16.317267	3.96%	0	2005
	12.374127	15.695131	26.84%	0	2004
	10.000000	12.374127	23.74%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	15.993016	16.125427	0.83%	0	2006
	15.162120	15.993016	5.48%	0	2005
	13.685172	15.162120	10.79%	0	2004
	10.000000	13.685172	36.85%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.184190	21.993626	14.64%	0	2006
	19.064233	19.184190	0.63%	0	2005
	16.644152	19.064233	14.54%	0	2004
	10.000000	16.644152	66.44%	0	2003*

NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.605026	20.356045	9.41%	148	2006
	16.965887	18.605026	9.66%	148	2005
	14.589240	16.965887	16.29%	0	2004
	10.000000	14.589240	45.89%	0	2003*

300

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.175308	21.368679	17.57%	0	2006
	16.756592	18.175308	8.47%	0	2005
	14.173106	16.756592	18.23%	0	2004
	10.000000	14.173106	41.73%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.365995	15.410269	0.29%	0	2006
	14.506896	15.365995	5.92%	0	2005
	13.775899	14.506896	5.31%	0	2004
	10.000000	13.775899	37.76%	0	2003*


NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.390835	10.419102	0.27%	0	2006
	9.805625	10.390835	5.97%	0	2005
	10.000000	9.805625	-1.94%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.054117	16.312488	8.36%	0	2006
	15.496259	15.054117	-2.85%	0	2005
	15.215054	15.496259	1.85%	0	2004
	10.000000	15.215054	52.15%	0	2003*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.501984	11.433403	8.87%	0	2006
	10.810426	10.501984	-2.85%	0	2005
	10.000000	10.810426	8.10%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.232910	10.353356	1.18%	0	2006
	10.121481	10.232910	1.10%	0	2005
	10.011977	10.121481	1.09%	0	2004
	10.000000	10.011977	0.12%	0	2003*

301

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.077275	11.513806	3.94%	0	2006
	10.952061	11.077275	1.14%	0	2005
	10.689651	10.952061	2.45%	0	2004
	10.000000	10.689651	6.90%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.236824	12.989664	6.15%	566	2006
	11.961955	12.236824	2.30%	566	2005
	11.402220	11.961955	4.91%	566	2004
	10.000000	11.402220	14.02%	0	2003*



NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.454683	14.668446	9.02%	9,409	2006
	13.045291	13.454683	3.14%	9,410	2005
	12.165025	13.045291	7.24%	9,410	2004
	10.000000	12.165025	21.65%	0	2003*


NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	14.952516	16.768061	12.14%	13,775	2006
	14.263556	14.952516	4.83%	13,944	2005
	12.997638	14.263556	9.74%	13,944	2004
	10.000000	12.997638	29.98%	0	2003*



NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.119705	18.444319	14.42%	7,826	2006
	15.254530	16.119705	5.67%	6,839	2005
	13.664970	15.254530	11.63%	6,841	2004
	10.000000	13.664970	36.65%	1,593	2003*


NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.158623	16.272540	7.35%	322	2006
	14.126658	15.158623	7.31%	322	2005
	12.524401	14.126658	12.79%	322	2004
	10.000000	12.524401	25.24%	0	2003*

302

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.783288	10.012324	2.34%	0	2006
	9.732884	9.783288	0.52%	0	2005
	9.861643	9.732884	-1.31%	0	2004
	10.000000	9.861643	-1.38%	0	2003*

NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.688209	16.307763	11.03%	0	2006
	14.015661	14.688209	4.80%	0	2005
	13.070163	14.015661	7.23%	0	2004
	10.000000	13.070163	30.70%	0	2003*


NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.836384	17.374539	-2.59%	0	2006
	16.309718	17.836384	9.36%	0	2005
	14.861422	16.309718	9.75%	0	2004
	10.000000	14.861422	48.61%	0	2003*

NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.809622	8.10%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.622408	21.118567	19.84%	0	2006
	16.101549	17.622408	9.45%	0	2005
	13.705719	16.101549	17.48%	0	2004
	10.000000	13.705719	37.06%	0	2003*


NVIT NVIT International Value Fund: Class VI – Q/NQ	12.506971	14.988756	19.84%	586	2006
	11.426098	12.506971	9.46%	586	2005
	10.000000	11.426098	14.26%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.722533	19.067285	7.59%	0	2006
	16.147774	17.722533	9.75%	0	2005
	14.251954	16.147774	13.30%	0	2004
	10.000000	14.251954	42.52%	0	2003*

303

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.818035	17.896513	13.14%	305	2006
	15.542219	15.818035	1.77%	305	2005
	13.558912	15.542219	14.63%	0	2004
	10.000000	13.558912	35.59%	0	2003*


NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.335904	11.635476	2.64%	0	2006
	11.331349	11.335904	0.04%	0	2005
	10.864513	11.331349	4.30%	0	2004
	10.000000	10.864513	8.65%	0	2003*


Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.553156	15.342846	5.43%	0	2006
	14.175158	14.553156	2.67%	0	2005
	13.580709	14.175158	4.38%	0	2004
	10.000000	13.580709	35.81%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.818539	14.733733	14.94%	0	2006
	11.480022	12.818539	11.66%	0	2005
	10.000000	11.480022	14.80%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.570190	22.487327	14.91%	0	2006
	17.524692	19.570190	11.67%	0	2005
	15.057803	17.524692	16.38%	0	2004
	10.000000	15.057803	50.58%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.798301	13.686348	6.94%	0	2006
	12.815119	12.798301	-0.13%	0	2005
	12.038753	12.815119	6.45%	0	2004
	10.000000	12.038753	20.39%	0	2003*

304

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.428937	16.211670	12.36%	1,410	2006
	13.937408	14.428937	3.53%	935	2005
	13.043437	13.937408	6.85%	935	2004
	10.000000	13.043437	30.43%	0	2003*



Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.840893	21.150187	12.26%	0	2006
	17.539795	18.840893	7.42%	0	2005
	15.032668	17.539795	16.68%	0	2004
	10.000000	15.032668	50.33%	0	2003*



Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.729004	15.580207	13.48%	0	2006
	13.325915	13.729004	3.02%	0	2005
	12.250469	13.325915	8.78%	0	2004
	10.000000	12.250469	22.50%	0	2003*


Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.768278	19.717499	25.05%	0	2006
	14.354586	15.768278	9.85%	0	2005
	12.618741	14.354586	13.76%	0	2004
	10.000000	12.618741	26.19%	0	2003*


Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.435784	12.837112	3.23%	0	2006
	12.017602	12.435784	3.48%	0	2005
	11.687170	12.017602	2.83%	0	2004
	10.000000	11.687170	16.87%	0	2003*


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.156957	11.942312	7.04%	650	2006
	10.000000	11.156957	11.57%	650	2005*

305

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.488312	12.183594	16.16%	0	2006
	10.000000	10.488312	4.88%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.986248	10.170690	1.85%	0	2006
	10.000000	9.986248	-0.14%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.442533	10.587907	1.39%	0	2006
	10.262197	10.442533	1.76%	0
	10.072087	10.262197	1.89%	0	2004
	10.000000	10.072087	0.72%	0	2003*




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.799035	16.054452	8.48%	0	2006
	13.479698	14.799035	9.79%	0	2005
	12.508112	13.479698	7.77%	0	2004
	10.000000	12.508112	25.08%	0	2003*



The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.447719	27.560951	34.79%	0	2006
	17.888439	20.447719	14.31%	0	2005
	13.428167	17.888439	33.22%	0	2004
	10.000000	13.428167	34.28%	0	2003*

306

No Additional Contract Options Elected (Total 2.15%)

(Variable account charges of 1.10% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.634921	17.279672	10.52%	0	2006
	15.154843	15.634921	3.17%	0	2005




AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.675018	15.230281	3.78%	0	2006
	13.811672	14.675018	6.25%	0	2005





AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.730117	19.032778	13.76%	0	2006
	15.646757	16.730117	6.92%	0	2005





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.144788	17.337183	14.48%	0	2006
	14.796522	15.144788	2.35%	0	2005






AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.865579	19.965371	11.75%	0	2006
	17.121537	17.865579	4.35%	0	2005

307

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.070569	17.227078	14.31%	0	2006
	14.735099	15.070569	2.28%	0	2005





American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	16.030720	19.568510	22.07%	0	2006
	14.483602	16.030720	10.68%	0	2005





American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.379603	15.126347	22.19%	0	2006
	11.198030	12.379603	10.55%	0	2005





American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.145263	13.112239	17.65%	0	2006
	10.000000	11.145263	11.45%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	13.984018	13.220417	-5.46%	0	2006
	14.013659	13.984018	-0.21%	0	2005





American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.475336	17.939684	15.92%	0	2006
	15.082206	15.475336	2.61%	0	2005

308

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.292036	12.030559	6.54%	0	2006
	10.000000	11.292036	12.92%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.633379	10.570546	-0.59%	0	2006
	10.699178	10.633379	-0.61%	0	2005






Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.109345	20.274828	11.96%	0	2006
	17.257706	18.109345	4.93%	0	2005





Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.585941	16.443643	12.74%	0	2006
	14.272677	14.585941	2.19%	0	2005



Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.155529	14.959996	13.72%	0	2006
	12.912068	13.155529	1.89%	0	2005




Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.373292	15.573272	1.30%	0	2006
	14.883101	15.373292	3.29%	0	2005

309

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.535598	16.568752	13.99%	0	2006
	14.176948	14.535598	2.53%	0	2005




Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.434856	15.221663	13.30%	0	2006
	13.500348	13.434856	-0.49%	0	2005




Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.216091	2.16%	66	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.176471	10.348611	1.69%	0	2006
	10.297824	10.176471	-1.18%	0	2005




Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.323812	17.983758	17.36%	287	2006
	14.833235	15.323812	3.31%	0	2005





Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.344339	14.959285	4.29%	0	2006
	13.894056	14.344339	3.24%	0	2005

310

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	18.955829	21.846147	15.25%	0	2006
	16.307938	18.955829	16.24%	0	2005





Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.751104	14.700399	15.29%	0	2006
	10.973711	12.751104	16.20%	0	2005





Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.092751	18.638403	9.04%	266	2006
	14.974331	17.092751	14.15%	0	2005





Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.413201	10.611436	1.90%	2,948	2006
	10.443492	10.413201	-0.29%	0	2005






Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.078761	22.085204	9.99%	0	2006
	17.386188	20.078761	15.49%	0	2005

311

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.469952	20.967279	13.52%	0	2006
	18.427397	18.469952	0.23%	0	2005





Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.321401	15.201743	14.12%	0	2006
	10.000000	13.321401	33.21%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.641737	11.411221	7.23%	0	2006
	10.000000	10.641737	6.42%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.946916	11.966082	9.31%	580	2006
	10.000000	10.946916	9.47%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.154054	12.325627	10.50%	0	2006
	10.000000	11.154054	11.54%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.055909	10.56%	0	2006*

312

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.401495	16.505853	14.61%	0	2006
	14.229461	14.401495	1.21%	0	2005






Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.454862	21.125864	14.47%	0	2006
	17.339029	18.454862	6.44%	0	2005






Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.621376	15.829675	25.42%	0	2006
	10.000000	12.621376	26.21%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.109780	20.333594	18.84%	0	2006
	15.870724	17.109780	7.81%	0	2005





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.349740	14.678609	18.86%	868	2006
	11.459180	12.349740	7.77%	0	2005

313

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.739759	10.755033	10.42%	0	2006
	10.000000	9.739759	-2.60%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.798270	13.945405	8.96%	0	2006
	12.148022	12.798270	5.35%	0	2005




Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.757146	16.824912	6.78%	0	2006
	14.305940	15.757146	10.14%	0	2005




Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.467056	30.875906	43.83%	0	2006
	16.626520	21.467056	29.11%	0	2005




Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.640276	21.075564	43.96%	399	2006
	11.332440	14.640276	29.19%	0	2005




Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.126077	16.419292	8.55%	0	2006
	13.936622	15.126077	8.53%	0	2005

314

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.793625	9.986333	1.97%	3,395	2006
	9.865822	9.793625	-0.73%	0	2005





MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.650173	14.333162	5.00%	0	2006
	13.383547	13.650173	1.99%	0	2005





MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.261111	17.996291	17.92%	0	2006
	14.648152	15.261111	4.18%	0	2005




Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.858935	15.303930	2.99%	0	2006
	14.756874	14.858935	0.69%	0	2005





Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.582327	13.870380	19.75%	1,853	2006
	10.000000	11.582327	15.82%	0	2005




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.741576	17.633034	12.02%	0	2006
	14.182461	15.741576	10.99%	0	2005

315

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.495327	12.478925	8.56%	0	2006
	10.000000	11.495327	14.95%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.136584	15.729072	11.27%	2,735	2006
	13.519222	14.136584	4.57%	0	2005





NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.405944	4.06%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.388122	3.88%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.686985	6.87%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.216091	2.16%	66	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.802753	13.856713	8.23%	0	2006
	12.779081	12.802753	0.19%	0	2005

316

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.390020	11.244887	8.23%	0	2006
	10.000000	10.390020	3.90%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.332516	33.791817	33.39%	0	2006
	19.562478	25.332516	29.50%	0	2005




NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.153663	20.249698	33.63%	0	2006
	11.688190	15.153663	29.65%	0	2005




NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.293354	21.895923	34.39%	0	2006
	15.680111	16.293354	3.91%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	15.969547	16.093557	0.78%	0	2006
	15.147588	15.969547	5.43%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.156088	21.950219	14.59%	0	2006
	19.046007	19.156088	0.58%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.577749	20.315831	9.36%	386	2006
	16.949645	18.577749	9.61%	0	2005

317

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.148670	21.326502	17.51%	0	2006
	16.740547	18.148670	8.41%	0	2005




NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.343475	15.379844	0.24%	0	2006
	14.493011	15.343475	5.87%	0	2005




NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.382040	10.404979	0.22%	0	2006
	9.802313	10.382040	5.91%	0	2005




NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	15.032040	16.280274	8.30%	0	2006
	15.481415	15.032040	-2.90%	0	2005





NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.493088	11.417896	8.81%	0	2006
	10.806780	10.493088	-2.90%	0	2005





NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.217896	10.332904	1.13%	3,021	2006
	10.111774	10.217896	1.05%	0	2005

318

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.061038	11.491072	3.89%	0	2006
	10.941575	11.061038	1.09%	0	2005




NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.218869	12.963992	6.10%	0	2006
	11.950488	12.218869	2.25%	0	2005





NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.434960	14.639493	8.97%	12,968	2006
	13.032810	13.434960	3.09%	7,806	2005




NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	14.930572	16.734925	12.08%	0	2006
	14.249883	14.930572	4.78%	0	2005





NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.096090	18.407926	14.36%	11,657	2006
	15.239947	16.096090	5.62%	11,386	2005




NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.137999	16.242139	7.29%	1,186	2006
	14.114632	15.137999	7.25%	0	2005

319

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.768744	9.992347	2.29%	661	2006
	9.723367	9.768744	0.47%	0	2005



NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.666668	16.275551	10.97%	2,380	2006
	14.002235	14.666668	4.75%	0	2005




NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.810240	17.340243	-2.64%	0	2006
	16.294110	17.810240	9.30%	0	2005




NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.805966	8.06%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.598462	21.079128	19.78%	0	2006
	16.087846	17.598462	9.39%	0	2005




NVIT NVIT International Value Fund: Class VI – Q/NQ	12.496392	14.968461	19.78%	1,073	2006
	11.422247	12.496392	9.40%	0	2005




NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.696534	19.029607	7.53%	0	2006
	16.132305	17.696534	9.70%	0	2005

320

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.794855	17.861184	13.08%	1,724	2006
	15.527344	15.794855	1.72%	0	2005




NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.319271	11.612491	2.59%	0	2006
	11.320492	11.319271	-0.01%	0	2005




Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.531833	15.312557	5.37%	0	2006
	14.161597	14.531833	2.61%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.807689	14.713762	14.88%	0	2006
	11.476139	12.807689	11.60%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.541505	22.442928	14.85%	0	2006
	17.507912	19.541505	11.62%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.779535	13.659323	6.88%	0	2006
	12.802848	12.779535	-0.18%	0	2005

321

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.407783	16.179663	12.30%	2,403	2006
	13.924063	14.407783	3.47%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.813314	21.108468	12.20%	386	2006
	17.523041	18.813314	7.36%	0	2005





Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.710342	15.551102	13.43%	0	2006
	13.314578	13.710342	2.97%	0	2005




Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.746846	19.680679	24.98%	0	2006
	14.342384	15.746846	9.79%	0	2005




Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.418857	12.813104	3.17%	0	2006
	12.007364	12.418857	3.43%	0	2005



T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.153183	11.932198	6.98%	0	2006
	10.000000	11.153183	11.53%	0	2005*

322

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.484765	12.173269	16.10%	0	2006
	10.000000	10.484765	4.85%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.982867	10.162067	1.80%	0	2006
	10.000000	9.982867	-0.17%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.428329	10.568123	1.34%	2,304	2006
	10.253466	10.428329	1.71%	0	2005





The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.776404	16.021737	8.43%	0	2006
	13.465936	14.776404	9.73%	0	2005





The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.416470	27.504842	34.72%	0	2006
	17.870195	20.416470	14.25%	0	2005

323

No Additional Contract Options Elected (Total 2.25%)

(Variable account charges of 2.25% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	15.589066	17.211437	10.41%	0	2006
	15.125803	15.589066	3.06%	0	2005
	13.960755	15.125803	8.35%	0	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	14.631974	15.170132	3.68%	0	2006
	13.785215	14.631974	6.14%	0	2005
	13.262608	13.785215	3.94%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	16.681086	18.957656	13.65%	0	2006
	15.616805	16.681086	6.81%	0	2005
	13.859914	15.616805	12.68%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	15.100376	17.268719	14.36%	0	2006
	14.768184	15.100376	2.25%	0	2005
	13.583697	14.768184	8.72%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	17.813215	19.886557	11.64%	0	2006
	17.088763	17.813215	4.24%	0	2005
	14.681572	17.088763	16.40%	0	2004

324

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	15.026376	17.159051	14.19%	0	2006
	14.706867	15.026376	2.17%	0	2005
	13.364767	14.706867	10.04%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	15.983698	19.491226	21.94%	0	2006
	14.455842	15.983698	10.57%	0	2005
	12.884802	14.455842	12.19%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.358625	15.085329	22.06%	0	2006
	11.190461	12.358625	10.44%	0	2005
	10.000000	11.190461	11.90%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.137716	13.090018	17.53%	0	2006
	10.000000	11.137716	11.38%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	13.943008	13.168196	-5.56%	0	2006
	13.986805	13.943008	-0.31%	0	2005
	12.938529	13.986805	8.10%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	15.429951	17.868853	15.81%	0	2006
	15.053310	15.429951	2.50%	0	2005
	13.487906	15.053310	11.61%	0	2004

325

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.284397	12.010166	6.43%	0	2006
	10.000000	11.284397	12.84%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.600839	10.527461	-0.69%	0	2006
	10.677319	10.600839	-0.72%	0	2005
	10.323232	10.677319	3.43%	0	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	18.056269	20.194818	11.84%	0	2006
	17.224664	18.056269	4.83%	0	2005
	14.457054	17.224664	19.14%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	14.543176	16.378714	12.62%	0	2006
	14.245346	14.543176	2.09%	0	2005
	13.206031	14.245346	7.87%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	13.116943	14.900926	13.60%	0	2006
	12.887330	13.116943	1.78%	0	2005
	12.580524	12.887330	2.44%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	15.328203	15.511765	1.20%	0	2006
	14.854584	15.328203	3.19%	0	2005
	13.684904	14.854584	8.55%	0	2004

326

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	14.492978	16.503341	13.87%	0	2006
	14.149785	14.492978	2.43%	0	2005
	13.219446	14.149785	7.04%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	13.395459	15.161558	13.18%	0	2006
	13.474483	13.395459	-0.59%	0	2005
	12.869591	13.474483	4.70%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.209164	2.09%	388	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	10.146617	10.307744	1.59%	0	2006
	10.278083	10.146617	-1.28%	0	2005
	10.176817	10.278083	1.00%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	15.278856	17.912718	17.24%	0	2006
	14.804807	15.278856	3.20%	0	2005
	13.615971	14.804807	8.73%	0	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	14.302283	14.900231	4.18%	0	2006
	13.867441	14.302283	3.14%	0	2005
	13.757097	13.867441	0.80%	0	2004

327

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	18.900290	21.759941	15.13%	0	2006
	16.276733	18.900290	16.12%	0	2005
	14.694842	16.276733	10.76%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.729500	14.660525	15.17%	0	2006
	10.966288	12.729500	16.08%	0	2005
	10.000000	10.966288	9.66%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	17.042648	18.564834	8.93%	0	2006
	14.945652	17.042648	14.03%	0	2005
	13.276904	14.945652	12.57%	0	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	10.382638	10.569510	1.80%	884	2006
	10.423463	10.382638	-0.39%	0	2005
	10.234577	10.423463	1.85%	0	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	20.019919	21.998042	9.88%	0	2006
	17.352899	20.019919	15.37%	0	2005
	14.240827	17.352899	21.85%	0	2004

328

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	18.415809	20.884511	13.41%	0	2006
	18.392126	18.415809	0.13%	0	2005
	16.528025	18.392126	11.28%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.312384	15.175959	14.00%	0	2006
	10.000000	13.312384	33.12%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.634532	11.391876	7.12%	0	2006
	10.000000	10.634532	6.35%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.939506	11.945798	9.20%	0	2006
	10.000000	10.939506	9.40%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.146499	12.304728	10.39%	0	2006
	10.000000	11.146499	11.46%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	11.048415	10.48%	0	2006*

329

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	14.359300	16.440717	14.50%	0	2006
	14.202226	14.359300	1.11%	0	2005
	13.089401	14.202226	8.50%	0	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	18.400805	21.042514	14.36%	0	2006
	17.305842	18.400805	6.33%	0	2005
	14.306677	17.305842	20.96%	0	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.612849	15.802849	25.29%	0	2006
	10.000000	12.612849	26.13%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	17.059617	20.253335	18.72%	0	2006
	15.840330	17.059617	7.70%	0	2005
	13.671628	15.840330	15.86%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.328820	14.638823	18.74%	826	2006
	11.451436	12.328820	7.66%	0	2005
	10.000000	11.451436	14.51%	0	2004*

330

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.733150	10.736780	10.31%	0	2006
	10.000000	9.733150	-2.67%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	12.760732	13.890340	8.85%	0	2006
	12.124747	12.760732	5.25%	0	2005
	11.453904	12.124747	5.86%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	15.710899	16.758438	6.67%	0	2006
	14.278499	15.710899	10.03%	0	2005
	12.382203	14.278499	15.31%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	21.404153	30.754088	43.68%	0	2006
	16.594691	21.404153	28.98%	0	2005
	14.303663	16.594691	16.02%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.615497	21.018464	43.81%	206	2006
	11.324784	14.615497	29.06%	0	2005
	10.000000	11.324784	13.25%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	15.084946	16.357948	8.44%	0	2006
	13.912886	15.084946	8.42%	0	2005
	12.116869	13.912886	14.82%	0	2004

331

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.764882	9.946883	1.86%	563	2006
	9.846906	9.764882	-0.83%	0	2005
	9.995678	9.846906	-1.49%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	13.610137	14.276544	4.90%	0	2006
	13.357900	13.610137	1.89%	0	2005
	12.538735	13.357900	6.53%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	15.216368	17.925254	17.80%	0	2006
	14.620099	15.216368	4.08%	0	2005
	13.025451	14.620099	12.24%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	14.815381	15.243514	2.89%	0	2006
	14.728616	14.815381	0.59%	0	2005
	13.467966	14.728616	9.36%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.574497	13.846886	19.63%	1,637	2006
	10.000000	11.574497	15.74%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.693430	17.561171	11.90%	0	2006
	14.153500	15.693430	10.88%	0	2005
	12.478426	14.153500	13.42%	0	2004

332

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.487543	12.457761	8.45%	0	2006
	10.000000	11.487543	14.88%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	14.098104	15.670271	11.15%	1,649	2006
	13.496185	14.098104	4.46%	0	2005
	12.188212	13.496185	10.73%	0	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.398894	3.99%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.381087	3.81%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.679747	6.80%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.209164	2.09%	388	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	12.765207	13.802009	8.12%	0	2006
	12.754602	12.765207	0.08%	0	2005
	11.851518	12.754602	7.62%	0	2004

333

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.382986	11.225838	8.12%	0	2006
	10.000000	10.382986	3.83%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	25.258281	33.658481	33.26%	0	2006
	19.525024	25.258281	29.36%	0	2005
	16.584878	19.525024	17.73%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	15.128016	20.194833	33.49%	0	2006
	11.680295	15.128016	29.52%	0	2005
	10.000000	11.680295	16.80%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	16.245578	21.809493	34.25%	0	2006
	15.650079	16.245578	3.81%	0	2005
	12.357521	15.650079	26.64%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	15.922746	16.030021	0.67%	0	2006
	15.118582	15.922746	5.32%	0	2005
	13.666814	15.118582	10.62%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	19.099944	21.863580	14.47%	0	2006
	19.009541	19.099944	0.48%	0	2005
	16.621856	19.009541	14.36%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	18.523315	20.235659	9.24%	200	2006
	16.917200	18.523315	9.49%	0	2005
	14.569685	16.917200	16.11%	0	2004

334

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	18.095448	21.242294	17.39%	0	2006
	16.708483	18.095448	8.30%	0	2005
	14.154096	16.708483	18.05%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	15.298461	15.319101	0.13%	0	2006
	14.465240	15.298461	5.76%	0	2005
	13.757420	14.465240	5.15%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.364450	10.376759	0.12%	0	2006
	9.795682	10.364450	5.81%	0	2005
	10.000000	9.795682	-2.04%	0	2004*



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	14.987967	16.215990	8.19%	0	2006
	15.451782	14.987967	-3.00%	0	2005
	15.194664	15.451782	1.69%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.475317	11.386935	8.70%	0	2006
	10.799472	10.475317	-3.00%	0	2005
	10.000000	10.799472	7.99%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	10.187930	10.292093	1.02%	905	2006
	10.092398	10.187930	0.95%	0	2005
	9.998525	10.092398	0.94%	0	2004

335

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	11.028581	11.445670	3.78%	0	2006
	10.920596	11.028581	0.99%	0	2005
	10.675292	10.920596	2.30%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	12.183035	12.912800	5.99%	0	2006
	11.927596	12.183035	2.14%	0	2005
	11.386917	11.927596	4.75%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	13.395569	14.581696	8.85%	0	2006
	13.007846	13.395569	2.98%	0	2005
	12.148707	13.007846	7.07%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	14.886787	16.668854	11.97%	11,456	2006
	14.222590	14.886787	4.67%	11,907	2005
	12.980195	14.222590	9.57%	12,376	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	16.048897	18.335248	14.25%	2,138	2006
	15.210756	16.048897	5.51%	2,140	2005
	13.646654	15.210756	11.46%	0	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	15.096810	16.181415	7.18%	725	2006
	14.090577	15.096810	7.14%	0	2005
	12.511587	14.090577	12.62%	0	2004

336

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.739697	9.952481	2.18%	0	2006
	9.704345	9.739697	0.36%	0	2005
	9.847816	9.704345	-1.46%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	14.623648	16.211278	10.86%	1,345	2006
	13.975414	14.623648	4.64%	0	2005
	13.052629	13.975414	7.07%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	17.758041	17.271789	-2.74%	0	2006
	16.262915	17.758041	9.19%	0	2005
	14.841506	16.262915	9.58%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.798640	7.99%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.550599	21.000395	19.66%	0	2006
	16.060464	17.550599	9.28%	0	2005
	13.691710	16.060464	17.30%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.475221	14.927872	19.66%	798	2006
	11.414522	12.475221	9.29%	0	2005
	10.000000	11.414522	14.15%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	17.644672	18.954496	7.42%	0	2006
	16.101426	17.644672	9.58%	0	2005
	14.232843	16.101426	13.13%	0	2004

337

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	15.748527	17.790645	12.97%	994	2006
	15.497598	15.748527	1.62%	0	2005
	13.540723	15.497598	14.45%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	11.286066	11.566627	2.49%	0	2006
	11.298800	11.286066	-0.11%	0	2005
	10.849921	11.298800	4.14%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	14.489237	15.252099	5.27%	0	2006
	14.134491	14.489237	2.51%	0	2005
	13.562508	14.134491	4.22%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.786011	14.673899	14.77%	0	2006
	11.468391	12.786011	11.49%	0	2005
	10.000000	11.468391	14.68%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	19.484250	22.354371	14.73%	0	2006
	17.474413	19.484250	11.50%	0	2005
	15.037620	17.474413	16.20%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	12.742044	13.605388	6.78%	0	2006
	12.778313	12.742044	-0.28%	0	2005
	12.022598	12.778313	6.29%	0	2004

338

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	14.365531	16.115779	12.18%	1,469	2006
	13.897389	14.365531	3.37%	0	2005
	13.025936	13.897389	6.69%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	18.758181	21.025158	12.09%	288	2006
	17.489490	18.758181	7.25%	0	2005
	15.012537	17.489490	16.50%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.673036	15.492983	13.31%	0	2006
	13.291895	13.673036	2.87%	0	2005
	12.237939	13.291895	8.61%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.704009	19.607144	24.85%	0	2006
	14.317960	15.704009	9.68%	0	2005
	12.605837	14.317960	13.58%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.385068	12.765218	3.07%	0	2006
	11.986914	12.385068	3.32%	0	2005
	11.675220	11.986914	2.67%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.145643	11.911970	6.88%	0	2006
	10.000000	11.145643	11.46%	0	2005*

339

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.477665	12.152637	15.99%	0	2006
	10.000000	10.477665	4.78%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.976101	10.144831	1.69%	0	2006
	10.000000	9.976101	-0.24%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.399944	10.528615	1.24%	709	2006
	10.235988	10.399944	1.60%	0	2005
	10.061769	10.235988	1.73%	0	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.731199	15.956447	8.32%	0	2006
	13.438445	14.731199	9.62%	0	2005
	12.488971	13.438445	7.60%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	20.354072	27.392875	34.58%	0	2006
	17.833735	20.354072	14.13%	0	2005
	13.407628	17.833735	33.01%	0	2004

340

No Additional Contract Options Elected(Total 3.05%)

(Variable account charges of 3.05% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	14.024896	15.358119	9.51%	0	2006
	13.720077	14.024896	2.22%	0	2005
	12.767792	13.720077	7.46%	0	2004



AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	13.155023	13.527515	2.83%	0	2006
	12.495677	13.155023	5.28%	0	2005
	12.121157	12.495677	3.09%	0	2004




AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	15.065938	16.982332	12.72%	0	2006
	14.220731	15.065938	5.94%	0	2005
	12.725026	14.220731	11.75%	0	2004




AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	13.304149	15.090430	13.43%	0	2006
	13.118507	13.304149	1.42%	0	2005
	12.165876	13.118507	7.83%	0	2004





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	16.087833	17.813803	10.73%	0	2006
	15.560477	16.087833	3.39%	0	2005
	13.478842	15.560477	15.44%	0	2004

341

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	13.511680	15.303510	13.26%	0	2006
	13.333169	13.511680	1.34%	0	2005
	12.216352	13.333169	9.14%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	15.196390	18.379946	20.95%	0	2006
	13.856840	15.196390	9.67%	0	2005
	12.452772	13.856840	11.28%	0	2004




American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.191358	14.759736	21.07%	0	2006
	11.129815	12.191358	9.54%	0	2005
	10.000000	11.129815	11.30%	0	2004*




American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.077248	12.912730	16.57%	0	2006
	10.000000	11.077248	10.77%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	12.353008	11.571290	-6.33%	0	2006
	12.493754	12.353008	-1.13%	0	2005
	11.652721	12.493754	7.22%	0	2004




American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	13.832637	15.888380	14.86%	0	2006
	13.605989	13.832637	1.67%	0	2005
	12.291656	13.605989	10.69%	0	2004

342

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.223169	11.847465	5.56%	0	2006
	10.000000	11.223169	12.23%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.342924	10.187497	-1.50%	0	2006
	10.503268	10.342924	-1.53%	0	2005
	10.238746	10.503268	2.58%	0	2004





Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	16.275820	18.054903	10.93%	0	2006
	15.653891	16.275820	3.97%	0	2005
	13.247024	15.653891	18.17%	0	2004




Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	12.986721	14.506479	11.70%	0	2006
	12.825416	12.986721	1.26%	0	2005
	11.987766	12.825416	6.99%	0	2004


Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	11.855702	13.358262	12.67%	0	2006
	11.743997	11.855702	0.95%	0	2005
	11.559000	11.743997	1.60%	0	2004



Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	13.901582	13.953202	0.37%	0	2006
	13.582835	13.901582	2.35%	0	2005
	12.616538	13.582835	7.66%	0	2004

343

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	13.283879	15.003107	12.94%	0	2006
	13.076013	13.283879	1.59%	0	2005
	12.317038	13.076013	6.16%	0	2004



Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	12.088782	13.570975	12.26%	0	2006
	12.260146	12.088782	-1.40%	0	2005
	11.806372	12.260146	3.84%	0	2004



Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.153665	1.54%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	9.763885	9.837975	0.76%	0	2006
	9.971792	9.763885	-2.08%	0	2005
	9.955022	9.971792	0.17%	0	2004



Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	13.738980	15.975986	16.28%	0	2006
	13.422219	13.738980	2.36%	0	2005
	12.446224	13.422219	7.84%	0	2004




Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	12.597190	13.016709	3.33%	0	2006
	12.314666	12.597190	2.29%	0	2005
	12.317496	12.314666	-0.02%	0	2004

344

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	18.140323	20.714557	14.19%	0	2006
	15.750728	18.140323	15.17%	0	2005
	14.337246	15.750728	9.86%	0	2004




Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.557266	14.344150	14.23%	0	2006
	10.906865	12.557266	15.13%	0	2005
	10.000000	10.906865	9.07%	0	2004*




Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	15.481705	16.726857	8.04%	0	2006
	13.688404	15.481705	13.10%	0	2005
	12.260341	13.688404	11.65%	0	2004




Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	9.974452	10.071106	0.97%	0	2006
	10.096081	9.974452	-1.20%	0	2005
	9.994912	10.096081	1.01%	0	2004





Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	19.055946	20.767909	8.98%	0	2006
	16.653163	19.055946	14.43%	0	2005
	13.779268	16.653163	20.86%	0	2004

345

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	16.028731	18.029113	12.48%	0	2006
	16.139789	16.028731	-0.69%	0	2005
	14.623622	16.139789	10.37%	0	2004




Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.240214	14.970489	13.07%	0	2006
	10.000000	13.240214	32.40%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.576779	11.237539	6.25%	0	2006
	10.000000	10.576779	5.77%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.880107	11.783983	8.31%	0	2006
	10.000000	10.880107	8.80%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.085983	12.138037	9.49%	0	2006
	10.000000	11.085983	10.86%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	10.988416	9.88%	0	2006*

346

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	12.986180	14.747256	13.56%	0	2006
	12.949799	12.986180	0.28%	0	2005
	12.033581	12.949799	7.61%	0	2004





Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	16.529818	18.748659	13.42%	0	2006
	15.674053	16.529818	5.46%	0	2005
	13.064526	15.674053	19.97%	0	2004





Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.544417	15.588874	24.27%	0	2006
	10.000000	12.544417	25.44%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	15.930952	18.759067	17.75%	0	2006
	14.914014	15.930952	6.82%	0	2005
	12.978307	14.914014	14.91%	0	2004




Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.161980	14.322911	17.77%	0	2006
	11.389395	12.161980	6.78%	0	2005
	10.000000	11.389395	13.89%	0	2004*

347

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.680244	10.591300	9.41%	0	2006
	10.000000	9.680244	-3.20%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	11.841643	12.784697	7.96%	0	2006
	11.344015	11.841643	4.39%	0	2005
	10.804782	11.344015	4.99%	0	2004



Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	14.391319	15.225548	5.80%	0	2006
	13.186795	14.391319	9.13%	0	2005
	11.529795	13.186795	14.37%	0	2004



Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	19.743894	28.137209	42.51%	0	2006
	15.433291	19.743894	27.93%	0	2005
	13.412316	15.433291	15.07%	0	2004



Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.417797	20.565041	42.64%	0	2006
	11.263410	14.417797	28.01%	0	2005
	10.000000	11.263410	12.63%	0	2004*



Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	14.758334	15.873189	7.55%	0	2006
	13.723602	14.758334	7.54%	0	2005
	12.050602	13.723602	13.88%	0	2004

348

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.507505	9.605668	1.03%	0	2006
	9.666257	9.507505	-1.64%	0	2005
	9.893271	9.666257	-2.29%	0	2004




MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	12.113033	12.602420	4.04%	0	2006
	11.986346	12.113033	1.06%	0	2005
	11.344122	11.986346	5.66%	0	2004




MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	13.899376	16.240234	16.84%	0	2006
	13.464569	13.899376	3.23%	0	2005
	12.094889	13.464569	11.32%	0	2004



Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	13.364553	13.638474	2.05%	0	2006
	13.395567	13.364553	-0.23%	0	2005
	12.350047	13.395567	8.47%	0	2004




Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.511655	13.659335	18.66%	0	2006
	10.000000	11.511655	15.12%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	15.311903	16.994375	10.99%	0	2006
	13.922966	15.311903	9.98%	0	2005
	12.376454	13.922966	12.50%	0	2004

349

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.425204	12.289015	7.56%	0	2006
	10.000000	11.425204	14.25%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	13.792806	15.205838	10.24%	0	2006
	13.312530	13.792806	3.61%	0	2005
	12.121546	13.312530	9.83%	0	2004




NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.342374	3.42%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.324698	3.25%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.621720	6.22%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.153665	1.54%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	11.540060	12.375547	7.24%	0	2006
	11.625358	11.540060	-0.73%	0	2005
	10.891325	11.625358	6.74%	0	2004

350

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.326583	11.073758	7.24%	0	2006
	10.000000	10.326583	3.27%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	23.570360	31.152959	32.17%	0	2006
	18.369962	23.570360	28.31%	0	2005
	15.732447	18.369962	16.76%	0	2004



NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	14.923387	19.759136	32.40%	0	2006
	11.616994	14.923387	28.46%	0	2005
	10.000000	11.616994	16.17%	0	2004*



NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	15.180196	20.213049	33.15%	0	2006
	14.744073	15.180196	2.96%	0	2005
	11.738073	14.744073	25.61%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	14.153989	14.132992	-0.15%	0	2006
	13.549656	14.153989	4.46%	0	2005
	12.349577	13.549656	9.72%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	16.537581	18.775958	13.54%	0	2006
	16.594702	16.537581	-0.34%	0	2005
	14.630015	16.594702	13.43%	0	2004


NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	16.579922	17.964765	8.35%	0	2006
	15.266837	16.579922	8.60%	0	2005
	13.256768	15.266837	15.16%	0	2004

351

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	16.523940	19.239230	16.43%	0	2006
	15.382919	16.523940	7.42%	0	2005
	13.138646	15.382919	17.08%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	13.466713	13.374762	-0.68%	0	2006
	12.838026	13.466713	4.90%	0	2005
	12.310572	12.838026	4.28%	0	2004



NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.224123	10.152683	-0.70%	0	2006
	9.742565	10.224123	4.94%	0	2005
	10.000000	9.742565	-2.57%	0	2004



NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	13.292904	14.264644	7.31%	0	2006
	13.817029	13.292904	-3.79%	0	2005
	13.699197	13.817029	0.86%	0	2004




NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.333516	11.141111	7.82%	0	2006
	10.740957	10.333516	-3.79%	0	2005
	10.000000	10.740957	7.41%	0	2004*




NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	9.873261	9.892799	0.20%	0	2006
	9.861171	9.873261	0.12%	0	2005
	9.850060	9.861171	0.11%	0	2004

352

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	10.563712	10.873756	2.93%	0	2006
	10.546352	10.563712	0.16%	0	2005
	10.394519	10.546352	1.46%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.476876	12.065080	5.13%	0	2006
	11.328687	11.476876	1.31%	0	2005
	10.904394	11.328687	3.89%	0	2004




NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	12.432684	13.423110	7.97%	0	2006
	12.172148	12.432684	2.14%	0	2005
	11.461976	12.172148	6.20%	0	2004



NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	13.633921	15.141442	11.06%	0	2006
	13.132773	13.633921	3.82%	0	2005
	12.084441	13.132773	8.68%	0	2004




NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	14.516696	16.449446	13.31%	0	2006
	13.871742	14.516696	4.65%	0	2005
	12.547976	13.871742	10.55%	0	2004



NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	14.769913	15.701801	6.31%	0	2006
	13.898852	14.769913	6.27%	0	2005
	12.443169	13.898852	11.70%	0	2004

353

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.509364	9.637806	1.35%	0	2006
	9.552817	9.509364	-0.45%	0	2005
	9.774039	9.552817	-2.26%	0	2004


NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	13.126787	14.433162	9.95%	0	2006
	12.648095	13.126787	3.78%	0	2005
	11.910405	12.648095	6.19%	0	2004



NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	15.428523	14.883522	-3.53%	0	2006
	14.245745	15.428523	8.30%	0	2005
	13.107899	14.245745	8.68%	0	2004



NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.739954	7.40%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	17.170621	20.378104	18.68%	0	2006
	15.842009	17.170621	8.39%	0	2005
	13.616852	15.842009	16.34%	0	2004



NVIT NVIT International Value Fund: Class VI – Q/NQ	12.306414	14.605732	18.68%	0	2006
	11.352698	12.306414	8.40%	0	2005
	10.000000	11.352698	13.53%	0	2004*



NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	15.766228	16.798370	6.55%	0	2006
	14.505585	15.766228	8.69%	0	2005
	12.927991	14.505585	12.20%	0	2004

354

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	14.185389	15.894059	12.05%	0	2006
	14.074206	14.185389	0.79%	0	2005
	12.398474	14.074206	13.52%	0	2004



NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	10.656287	10.832059	1.65%	0	2006
	10.756090	10.656287	-0.93%	0	2005
	10.413997	10.756090	3.28%	0	2004



Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	12.795820	13.359581	4.41%	0	2006
	12.585214	12.795820	1.67%	0	2005
	12.175556	12.585214	3.36%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.612994	14.357210	13.83%	0	2006
	11.406251	12.612994	10.58%	0	2005
	10.000000	11.406251	14.06%	0	2004*




Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	17.828423	20.287724	13.79%	0	2006
	16.120891	17.828423	10.59%	0	2005
	13.987258	16.120891	15.25%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	11.409132	12.082741	5.90%	0	2006
	11.535765	11.409132	-1.10%	0	2005
	10.943074	11.535765	5.42%	0	2004

355

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	12.977969	14.440366	11.27%	0	2006
	12.658320	12.977969	2.53%	0	2005
	11.962434	12.658320	5.82%	0	2004




Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	16.667678	18.529530	11.17%	0	2006
	15.668160	16.667678	6.38%	0	2005
	13.560064	15.668160	15.55%	0	2004




Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.376958	15.033833	12.39%	0	2006
	13.111050	13.376958	2.03%	0	2005
	12.171013	13.111050	7.72%	0	2004



Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.363941	19.026074	23.84%	0	2006
	14.123153	15.363941	8.79%	0	2005
	12.536867	14.123153	12.65%	0	2004



Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	12.116873	12.386836	2.23%	0	2006
	11.823804	12.116873	2.48%	0	2005
	11.611367	11.823804	1.83%	0	2004


T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.085119	11.750589	6.00%	0	2006
	10.000000	11.085119	10.85%	0	2005*

356

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.420765	11.988033	15.04%	0	2006
	10.000000	10.420765	4.21%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.921892	10.007353	0.86%	0	2006
	10.000000	9.921892	-0.78%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.174578	10.216391	0.41%	0	2006
	10.096572	10.174578	0.77%	0	2005
	10.006635	10.096572	0.90%	0	2004




The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	14.372918	15.441312	7.43%	0	2006
	13.219470	14.372918	8.73%	0	2005
	12.386826	13.219470	6.72%	0	2004




The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	19.859297	26.509145	33.48%	0	2006
	17.543336	19.859297	13.20%	0	2005
	13.298053	17.543336	31.92%	0	2004

357

No Additional Contract Options Elected (Total 3.55%)

(Variable account charges of 3.55% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	13.833003	15.070086	8.94%	0	2006
	13.602310	13.833003	1.70%	0	2005




AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	12.975049	13.273807	2.30%	0	2006
	12.388414	12.975049	4.74%	0	2005





AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	14.859845	16.663868	12.14%	0	2006
	14.098688	14.859845	5.40%	0	2005





AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	13.122148	14.807470	12.84%	0	2006
	13.005926	13.122148	0.89%	0	2005






AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	15.867790	17.479797	10.16%	0	2006
	15.426961	15.867790	2.86%	0	2005

358

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	13.326841	15.016549	12.68%	0	2006
	13.218740	13.326841	0.82%	0	2005





American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	14.988500	18.035305	20.33%	0	2006
	13.737901	14.988500	9.10%	0	2005





American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.087278	14.558503	20.44%	0	2006
	11.091814	12.087278	8.97%	0	2005





American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.039364	12.802424	15.97%	0	2006
	10.000000	11.039364	10.39%	0	2005*




American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	12.183986	11.354239	-6.81%	0	2006
	12.386507	12.183986	-1.64%	0	2005





American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	13.643404	15.590462	14.27%	0	2006
	13.489215	13.643404	1.14%	0	2005

359

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.184817	11.746222	5.02%	0	2006
	10.000000	11.184817	11.85%	0	2005*




American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.074655	9.872221	-2.01%	0	2006
	10.283732	10.074655	-2.03%	0	2005






Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	16.053277	17.716445	10.36%	0	2006
	15.519618	16.053277	3.44%	0	2005





Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	12.809056	14.234451	11.13%	0	2006
	12.715335	12.809056	0.74%	0	2005



Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	11.693509	13.107769	12.09%	0	2006
	11.643194	11.693509	0.43%	0	2005




Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	13.711431	13.691523	-0.15%	0	2006
	13.466271	13.711431	1.82%	0	2005

360

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	13.102157	14.721789	12.36%	0	2006
	12.963793	13.102157	1.07%	0	2005




Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	11.923353	13.316428	11.68%	0	2006
	12.154896	11.923353	-1.90%	0	2005




Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.118894	1.19%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	9.630199	9.653370	0.24%	0	2006
	9.886116	9.630199	-2.59%	0	2005




Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	13.551012	15.676402	15.68%	0	2006
	13.307011	13.551012	1.83%	0	2005





Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	12.424851	12.772589	2.80%	0	2006
	12.208962	12.424851	1.77%	0	2005

361

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	17.892250	20.326210	13.60%	0	2006
	15.615583	17.892250	14.58%	0	2005





Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.450070	14.148574	13.64%	0	2006
	10.869627	12.450070	14.54%	0	2005





Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	15.269930	16.413203	7.49%	0	2006
	13.570909	15.269930	12.52%	0	2005





Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	9.837899	9.882134	0.45%	0	2006
	10.009350	9.837899	-1.71%	0	2005






Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	18.795391	20.378597	8.42%	0	2006
	16.510300	18.795391	13.84%	0	2005

362

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	15.809504	17.691089	11.90%	0	2006
	16.001314	15.809504	-1.20%	0	2005





Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.195002	14.842609	12.49%	0	2006
	10.000000	13.195002	31.95%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.540602	11.141517	5.70%	0	2006
	10.000000	10.540602	5.41%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.842894	11.683299	7.75%	0	2006
	10.000000	10.842894	8.43%	0	2005*




Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.048071	12.034330	8.93%	0	2006
	10.000000	11.048071	10.48%	0	2005*




Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	10.950822	9.51%	0	2006*

363

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	12.808506	14.470690	12.98%	0	2006
	12.838640	12.808506	-0.23%	0	2005






Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	16.303776	18.397175	12.84%	0	2006
	15.539591	16.303776	4.92%	0	2005






Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.501548	15.455727	23.63%	0	2006
	10.000000	12.501548	25.02%	0	2005*





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	15.713027	18.407335	17.15%	0	2006
	14.786023	15.713027	6.27%	0	2005





Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.058177	14.127654	17.16%	0	2006
	11.350538	12.058177	6.23%	0	2005

364

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.647103	10.500773	8.85%	0	2006
	10.000000	9.647103	-3.53%	0	2005*





Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	11.679585	12.544879	7.41%	0	2006
	11.246596	11.679585	3.85%	0	2005




Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	14.194492	14.940078	5.25%	0	2006
	13.073634	14.194492	8.57%	0	2005




Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	19.473874	27.609764	41.78%	0	2006
	15.300830	19.473874	27.27%	0	2005




Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.294759	20.284762	41.90%	0	2006
	11.224956	14.294759	27.35%	0	2005




Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	14.556467	15.575549	7.00%	0	2006
	13.605844	14.556467	6.99%	0	2005

365

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.377357	9.425448	0.51%	0	2006
	9.583234	9.377357	-2.15%	0	2005





MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	11.947289	12.366035	3.50%	0	2006
	11.883453	11.947289	0.54%	0	2005





MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	13.709222	15.935710	16.24%	0	2006
	13.349004	13.709222	2.70%	0	2005




Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	13.181720	13.382671	1.52%	0	2006
	13.280598	13.181720	-0.74%	0	2005





Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.472307	13.542643	18.05%	0	2006
	10.000000	11.472307	14.72%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	14.729190	16.263538	10.42%	0	2006
	13.462310	14.729190	9.41%	0	2005

366

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.386149	12.184001	7.01%	0	2006
	10.000000	11.386149	13.86%	0	2005*




Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	13.604137	14.920715	9.68%	0	2006
	13.198284	13.604137	3.08%	0	2005





NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.306972	3.07%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.289362	2.89%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.585363	5.85%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.118894	1.19%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	11.382148	12.143458	6.69%	0	2006
	11.525549	11.382148	-1.24%	0	2005

367

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.291255	10.979135	6.68%	0	2006
	10.000000	10.291255	2.91%	0	2005*




NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	23.248150	30.569115	31.49%	0	2006
	18.212395	23.248150	27.65%	0	2005




NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	14.796061	19.489826	31.72%	0	2006
	11.577338	14.796061	27.80%	0	2005




NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	14.972548	19.834099	32.47%	0	2006
	14.617558	14.972548	2.43%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	13.960386	13.867921	-0.66%	0	2006
	13.433351	13.960386	3.92%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	16.311412	18.423943	12.95%	0	2006
	16.452335	16.311412	-0.86%	0	2005



NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	16.353197	17.627961	7.80%	0	2006
	15.135856	16.353197	8.04%	0	2005

368

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	16.297935	18.878513	15.83%	0	2006
	15.250936	16.297935	6.87%	0	2005




NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	13.282465	13.123900	-1.19%	0	2006
	12.727836	13.282465	4.36%	0	2005




NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.136813	10.014183	-1.21%	0	2006
	9.709292	10.136813	4.40%	0	2005




NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	13.111062	13.997150	6.76%	0	2006
	13.698484	13.111062	-4.29%	0	2005





NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.245298	10.989177	7.26%	0	2006
	10.704307	10.245298	-4.29%	0	2005





NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	9.738090	9.707184	-0.32%	0	2006
	9.776446	9.738090	-0.39%	0	2005

369

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	10.419128	10.669776	2.41%	0	2006
	10.455771	10.419128	-0.35%	0	2005




NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.319823	11.838775	4.58%	0	2006
	11.231419	11.319823	0.79%	0	2005





NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	12.262562	13.171348	7.41%	0	2006
	12.067656	12.262562	1.62%	0	2005




NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	13.447405	14.857505	10.49%	0	2006
	13.020049	13.447405	3.28%	0	2005





NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	14.318134	16.141010	12.73%	0	2006
	13.752706	14.318134	4.11%	0	2005




NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	14.567887	15.407345	5.76%	0	2006
	13.779562	14.567887	5.72%	0	2005

370

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.432879	9.511118	0.83%	0	2006
	9.524970	9.432879	-0.97%	0	2005



NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	12.947210	14.162512	9.39%	0	2006
	12.539540	12.947210	3.25%	0	2005




NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	15.217472	14.604385	-4.03%	0	2006
	14.123495	15.217472	7.75%	0	2005




NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.703197	7.03%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	16.935777	19.996061	18.07%	0	2006
	15.706099	16.935777	7.83%	0	2005




NVIT NVIT International Value Fund: Class VI – Q/NQ	12.201362	14.406604	18.07%	0	2006
	11.313973	12.201362	7.84%	0	2005




NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	15.550591	16.483372	6.00%	0	2006
	14.381103	15.550591	8.13%	0	2005

371

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	13.991342	15.596030	11.47%	0	2006
	13.953428	13.991342	0.27%	0	2005




NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	10.510421	10.628845	1.13%	0	2006
	10.663718	10.510421	-1.44%	0	2005




Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	12.620724	13.108975	3.87%	0	2006
	12.477168	12.620724	1.15%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	17.584632	19.907415	13.21%	0	2006
	15.982599	17.584632	10.02%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	12.505359	14.161499	13.24%	0	2006
	11.367344	12.505359	10.01%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	11.252975	11.856083	5.36%	0	2006
	11.436709	11.252975	-1.61%	0	2005

372

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	12.800444	14.169597	10.70%	0	2006
	12.549691	12.800444	2.00%	0	2005





Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	16.439781	18.182172	10.60%	0	2006
	15.533767	16.439781	5.83%	0	2005





Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.193950	14.751908	11.81%	0	2006
	12.998518	13.193950	1.50%	0	2005




Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.153764	18.669347	23.20%	0	2006
	14.001943	15.153764	8.23%	0	2005




Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	11.951083	12.154501	1.70%	0	2006
	11.722298	11.951083	1.95%	0	2005



T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.047204	11.650173	5.46%	0	2006
	10.000000	11.047204	10.47%	0	2005*

373

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.385110	11.885601	14.45%	0	2006
	10.000000	10.385110	3.85%	0	2005*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.887938	9.921813	0.34%	0	2006
	10.000000	9.887938	-1.12%	0	2005*




The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	10.035282	10.024695	-0.11%	0	2006
	10.009833	10.035282	0.25%	0	2005





The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	12.799497	13.680211	6.88%	0	2006
	11.833166	12.799497	8.17%	0	2005





The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	18.607261	24.710273	32.80%	0	2006
	16.522242	18.607261	12.62%	0	2005

374

Maximum Additional Contract Options Elected (Total 3.70%)

(Variable account charges of 3.70% of the daily net assets of the variable account)

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund: Series II Shares – Q/NQ	13.775771	14.984461	8.77%	0	2006*





AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund: Series II Shares – Q/NQ	12.921355	13.198364	2.14%	0	2006*






AIM Variable Insurance Funds – AIM V.I. Capital Development Fund: Series II Shares – Q/NQ	14.798367	16.569192	11.97%	0	2006*






AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Growth and Income Portfolio: Class B – Q/NQ	13.067842	14.723329	12.67%	0	2006*







AllianceBernstein Variable Products Series Fund, Inc. – AllianceBernstein Small/Mid Cap Value Portfolio: Class B – Q/NQ	15.802172	17.380530	9.99%	0	2006*

375

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Income & Growth Fund: Class II – Q/NQ	13.271696	14.931237	12.50%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP International Fund: Class II – Q/NQ	14.926488	14.498457	20.26%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP International Fund: Class IV – Q/NQ	12.056121	14.498457	20.26%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP Mid Cap Value Fund: Class II – Q/NQ	11.027989	12.769402	15.79%	0	2006*





American Century Variable Portfolios, Inc. – American Century VP Ultra Fund: Class II – Q/NQ	12.133589	11.289730	-6.95%	0	2006*






American Century Variable Portfolios, Inc. – American Century VP Value Fund: Class II – Q/NQ	13.586950	15.501880	14.09%	0	2006*

376

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

American Century Variable Portfolios, Inc. – American Century VP Vista Fund: Class II – Q/NQ	11.173294	11.715904	4.86%	0	2006*





American Century Variable Portfolios II, Inc. – American Century VP Inflation Protection Fund: Class II – Q/NQ	10.032897	9.816056	-2.16%	0	2006*







Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio: Service Shares – Q/NQ	15.986873	17.615797	10.19%	0	2006*






Dreyfus Stock Index Fund, Inc.: Service Shares – Q/NQ	12.756049	14.153565	10.96%	0	2006*




Dreyfus Variable Investment Fund – Appreciation Portfolio: Service Shares – Q/NQ	11.645106	13.033270	11.92%	0	2006*





Dreyfus Variable Investment Fund – Developing Leaders Portfolio: Service Shares – Q/NQ	13.654700	13.613730	-0.30%	0	2006*

377

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Federated Insurance Series – Federated American Leaders Fund II: Service Shares – Q/NQ	13.047929	14.638127	12.19%	0	2006*





Federated Insurance Series – Federated Capital Appreciation Fund II: Service Shares – Q/NQ	11.874017	13.240769	11.51%	0	2006*





Federated Insurance Series – Federated Market Opportunity Fund II: Service Shares– Q/NQ	10.000000	10.138660	1.39%	0	2006*




Federated Insurance Series – Federated Quality Bond Fund II: Service Shares – Q/NQ	9.590334	9.598496	0.09%	0	2006*





Fidelity Variable Insurance Products Fund – VIP Equity-Income Portfolio: Service Class 2 – Q/NQ	13.494965	15.587361	15.51%	0	2006*






Fidelity Variable Insurance Products Fund – VIP Growth Portfolio: Service Class 2 – Q/NQ	12.373447	12.699999	2.64%	0	2006*

378

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2 – Q/NQ	17.818247	20.210751	13.43%	0	2006*






Fidelity Variable Insurance Products Fund – VIP Overseas Portfolio: Service Class 2R – Q/NQ	12.417995	14.090237	13.47%	0	2006*






Fidelity Variable Insurance Products Fund II – VIP Contrafund® Portfolio: Service Class 2 – Q/NQ	15.206780	16.319974	7.32%	0	2006*






Fidelity Variable Insurance Products Fund II – VIP Investment Grade Bond Portfolio: Service Class 2 – Q/NQ	9.797160	9.825946	0.29%	0	2006*







Fidelity Variable Insurance Products Fund III – VIP Mid Cap Portfolio: Service Class 2 – Q/NQ	18.717646	20.262828	8.26%	0	2006*






Fidelity Variable Insurance Products Fund III – VIP Value Strategies Portfolio: Service Class 2 – Q/NQ	15.744094	17.590557	11.73%	0	2006*

379

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Fidelity Variable Insurance Products Fund IV – VIP Energy Portfolio: Service Class 2 – Q/NQ	13.181415	14.804331	12.31%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2010 Portfolio: Service Class 2 – Q/NQ	10.529729	11.112752	5.54%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2020 Portfolio: Service Class 2 – Q/NQ	10.831726	11.653157	7.58%	0	2006*





Fidelity Variable Insurance Products Fund IV – VIP Freedom Fund 2030 Portfolio: Service Class 2 – Q/NQ	11.036685	12.003292	8.76%	0	2006*





Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Funds: Class 2 – Q/NQ	10.000000	10.939536	9.40%	0	2006*




Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund: Class 2 – Q/NQ	12.755510	14.388478	12.80%	0	2006*

380

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund: Class 2 – Q/NQ	16.236347	18.292672	12.66%	0	2006*







Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund: Class 3 – Q/NQ	12.488677	15.415871	23.44%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 2 – Q/NQ	15.648032	18.302761	16.97%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund: Class 3 – Q/NQ	12.027113	18.302761	16.97%	0	2006*






Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund: Class 3 – Q/NQ	9.637161	10.473686	8.68%	0	2006*






Janus Aspen Series – Balanced Portfolio: Service Shares – Q/NQ	11.631235	12.473585	7.24%	0	2006*

381

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Janus Aspen Series – Forty Portfolio: Service Shares – Q/NQ	14.135761	14.855180	5.09%	0	2006*





Janus Aspen Series – International Growth Portfolio: Service Shares – Q/NQ	19.393334	27.452969	41.56%	0	2006*





Janus Aspen Series – International Growth Portfolio: Service II Shares – Q/NQ	14.257942	20.201153	41.68%	0	2006*





Janus Aspen Series – Risk-Managed Core Portfolio: Service Shares – Q/NQ	14.496241	15.487065	6.84%	0	2006*





Lehman Brothers Advisers Management Trust – AMT Short Duration Bond Portfolio: I Class – Q/NQ	9.338525	9.371867	0.36%	0	2006*






MFS® Variable Insurance Trust – MFS Investors Growth Stock Series: Service Class – Q/NQ	11.897855	12.295783	3.34%	0	2006*

382

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

MFS® Variable Insurance Trust – MFS Value Series: Service Class – Q/NQ	13.652496	15.845172	16.06%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Fasciano Portfolio: S Class – Q/NQ	13.127195	13.306637	1.37%	0	2006*






Neuberger Berman Advisers Management Trust – AMT International Portfolio: S Class – Q/NQ	11.460481	13.507702	17.86%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Mid-Cap Growth Portfolio: S Class – Q/NQ	14.668241	16.171106	10.25%	0	2006*






Neuberger Berman Advisers Management Trust – AMT Regency Portfolio: S Class – Q/NQ	11.374423	12.152570	6.84%	0	2006*





Neuberger Berman Advisers Management Trust – AMT Socially Responsive Portfolio: I Class – Q/NQ	13.547830	14.835907	9.51%	0	2006*

383

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT American Funds NVIT Asset Allocation Fund: Class II – Q/NQ	10.000000	10.296349	2.96%	0	2006*




NVIT American Funds NVIT Bond Fund: Class II – Q/NQ	10.000000	10.278754	2.79%	0	2006*




NVIT American Funds NVIT Global Growth Fund: Class II– Q/NQ	10.000000	10.574438	5.74%	0	2006*




NVIT American Funds NVIT Growth Fund: Class II – Q/NQ	10.000000	10.108463	1.08%	0	2006*




NVIT Federated NVIT High Income Bond Fund: Class I – Q/NQ	11.335019	12.074424	6.52%	0	2006*





NVIT Federated NVIT High Income Bond Fund: Class III – Q/NQ	10.280646	10.950809	6.52%	0	2006*





NVIT Gartmore NVIT Emerging Markets Fund: Class II – Q/NQ	23.152043	30.395557	31.29%	0	2006*

384

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Gartmore NVIT Emerging Markets Fund: Class VI – Q/NQ	14.757940	19.409475	31.52%	0	2006*





NVIT Gartmore NVIT Global Utilities Fund: Class II – Q/NQ	14.910590	19.721410	32.26%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Cap Growth Fund: Class II – Q/NQ	13.902646	13.789135	-0.82%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Cap Value Fund: Class II – Q/NQ	16.243952	18.319287	12.78%	0	2006*




NVIT Nationwide Multi – Manager NVIT Small Company Fund: Class II – Q/NQ	16.285548	17.527807	7.63%	0	2006*




NVIT Nationwide NVIT Global Financial Services Fund: Class II – Q/NQ	16.230513	18.771255	15.65%	0	2006*





NVIT Nationwide NVIT Global Health Sciences Fund: Class II – Q/NQ	13.227500	13.049309	-1.35%	0	2006*

385

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Global Health Sciences Fund: Class VI – Q/NQ	10.110675	9.972872	-1.36%	0	2006*





NVIT Nationwide NVIT Global Technology and Communications Fund: Class II – Q/NQ	13.056832	13.917631	6.59%	0	2006*






NVIT Nationwide NVIT Global Technology and Communications Fund: Class VI – Q/NQ	10.218877	10.943850	7.09%	0	2006*






NVIT Nationwide NVIT Government Bond Fund: Class I – Q/NQ	9.697764	9.651993	-0.47%	0	2006*





NVIT Nationwide NVIT Investor Destinations Conservative Fund: Class II – Q/NQ	10.375988	10.609117	2.25%	0	2006*





NVIT Nationwide NVIT Investor Destinations Moderately Conservative Fund: Class II – Q/NQ	11.272958	11.771480	4.42%	0	2006*

386

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT Nationwide NVIT Investor Destinations Moderate Fund: Class II – Q/NQ	12.211813	13.096506	7.24%	0	2006*





NVIT Nationwide NVIT Investor Destinations Moderately Aggressive Fund: Class II – Q/NQ	13.391759	14.773076	10.31%	0	2006*






NVIT Nationwide NVIT Investor Destinations Aggressive Fund: Class II – Q/NQ	14.258880	16.049291	12.56%	0	2006*





NVIT Nationwide NVIT Mid Cap Growth Fund: Class II – Q/NQ	14.507589	15.319762	5.60%	0	2006*





NVIT Nationwide NVIT Money Market Fund: Class I – Q/NQ	9.393781	9.457007	0.67%	0	2006*




NVIT Nationwide NVIT Nationwide® Fund: Class II – Q/NQ	12.893635	14.082037	9.22%	0	2006*





NVIT Nationwide NVIT U.S. Growth Leaders Fund: Class II – Q/NQ	15.154530	14.521407	-4.18%	0	2006*

387

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

NVIT NVIT International Index Fund: Class VIII – Q/NQ	10.000000	10.692149	6.92%	0	2006*




NVIT NVIT International Value Fund: Class II – Q/NQ	16.865714	19.882465	17.89%	0	2006*





NVIT NVIT International Value Fund: Class VI – Q/NQ	12.169923	14.347201	17.89%	0	2006*





NVIT NVIT Mid Cap Index Fund: Class I – Q/NQ	15.486258	16.389720	5.83%	0	2006*




NVIT Van Kampen NVIT Comstock Value Fund: Class II – Q/NQ	13.933451	15.507421	11.30%	0	2006*





NVIT Van Kampen NVIT Multi Sector Bond Fund: Class I – Q/NQ	10.466900	10.568422	0.97%	0	2006*





Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA: Service Shares – Q/NQ	12.568536	13.034527	3.71%	0	2006*

388

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Class 4 – Q/NQ	12.473142	14.103113	13.07%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA: Service Shares – Q/NQ	17.511906	19.794346	13.03%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA: Service Shares – Q/NQ	11.206410	11.788720	5.20%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Main Street Fund®/VA: Service Shares – Q/NQ	12.747495	14.089113	10.52%	0	2006*






Oppenheimer Variable Account Funds – Oppenheimer Main Street Small Cap Fund®/VA: Service Shares – Q/NQ	16.371794	18.078896	10.43%	0	2006*






Putnam Variable Trust – Putnam VT Growth and Income Fund: Class IB – Q/NQ	13.139366	14.668103	11.63%	0	2006*

389

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

Putnam Variable Trust – Putnam VT International Equity Fund: Class IB – Q/NQ	15.091072	18.563277	23.01%	0	2006*





Putnam Variable Trust – Putnam VT Voyager Fund: Class IB – Q/NQ	11.901634	12.085441	1.54%	0	2006*




T. Rowe Price Equity Series, Inc. – T. Rowe Price Blue Chip Growth Portfolio: Class II – Q/NQ	11.035823	11.620122	5.29%	0	2006*





T. Rowe Price Equity Series, Inc. – T. Rowe Price Equity Income Portfolio: Class II – Q/NQ	10.374399	11.854942	14.27%	0	2006*





T. Rowe Price Equity Series, Inc. – T. Rowe Price Limited Term Bond Portfolio: Class II – Q/NQ	9.877740	9.896208	0.19%	0	2006*





The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio: Class II – Q/NQ	9.993737	9.967709	-0.26%	0	2006*






The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio: Class II – Q/NQ	12.746512	13.602452	6.72%	0	2006*

390

Sub-Account	Accumulation Unit Value at Beginning of Period	Accumulation Unit Value at End of Period	Percent Change in Accumulation Unit Value	Number of Accumulation Units at End of Period	Period

The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio: Class II – Q/NQ	18.530282	24.569933	32.59%	0	2006*

391

Report of Independent Registered Public Accounting Firm

The Board of Directors of Nationwide Life Insurance Company and

Contract Owners of Nationwide Variable Account-II:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account-II (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

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2006


Assets:

Investments at fair value:

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series II (AIMBValue2) 3,985,820 shares (cost $46,045,134)	$	52,772,256
AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series II (AIMCapAp2) 556,003 shares (cost $12,939,757)		14,406,047
AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series II (AIMCapDev2) 1,154,151 shares (cost $17,297,728)		20,994,000
Alger American Balanced Portfolio – Class S Shares (AlgerBal) 16,472 shares (cost $228,684)		235,556
Alger American Mid Cap Growth Portfolio – Class S Shares (AlgMidCapGr) 29,691 shares (cost $637,060)		608,081
AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class B (AlGrIncB) 855,657 shares (cost $18,948,238)		23,042,846
AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class B (AlSmMdCpB) 486,051 shares (cost $7,631,398)		8,748,911
American Century Variable Portfolios, Inc. – Balanced Fund – Class I (ACVPBal) 10,813,880 shares (cost $72,257,112)		81,428,520
American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I (ACVPCapAp) 11,390,899 shares (cost $97,855,713)		124,844,255
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I (ACVPIncGr) 4,629,426 shares (cost $29,713,413)		39,951,943
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class II (ACVPIncGr2) 1,715,163 shares (cost $11,876,639)		14,784,708
American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II (ACVPInflPro2) 7,397,710 shares (cost $76,754,613)		74,568,915
American Century Variable Portfolios, Inc. – International Fund – Class I (ACVPInt) 6,473,838 shares (cost $41,415,555)		65,515,246
American Century Variable Portfolios, Inc. – International Fund – Class II (ACVPInt2) 332,843 shares (cost $2,231,114)		3,361,717
American Century Variable Portfolios, Inc. – International Fund – Class III (ACVPInt3) 3,240,766 shares (cost $20,402,912)		32,796,555
American Century Variable Portfolios, Inc. – International Fund – Class IV (ACVPInt4) 1,129,791 shares (cost $8,383,379)		11,422,187
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I (ACVPMdCpV1) 245,416 shares (cost $3,200,635)		3,310,668
American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class II (ACVPMdCpV2) 1,230,100 shares (cost $15,372,098)		16,594,051
American Century Variable Portfolios, Inc. – Ultra^® Fund – Class I (ACVPUltra) 435,255 shares (cost $4,407,629)		4,369,963
American Century Variable Portfolios, Inc. – Ultra^® Fund – Class II (ACVPUltra2) 1,510,080 shares (cost $14,533,424)		15,070,594
American Century Variable Portfolios, Inc. – Value Fund – Class I (ACVPVal) 17,568,721 shares (cost $126,124,858)		153,550,624
American Century Variable Portfolios, Inc. – Value Fund – Class II (ACVPVal2) 11,920,240 shares (cost $95,462,477)		104,063,696
American Century Variable Portfolios, Inc. – Vista^SMFund – Class I (ACVPVista1) 9,556 shares (cost $143,270)		150,414
American Century Variable Portfolios, Inc. – Vista^SMFund – Class II (ACVPVista2) 186,969 shares (cost $2,891,639)		2,937,290

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


American Funds Insurance Series^®– Growth Fund – Class 1 (AmerGro) 292,020 shares (cost $15,613,593)	$	18,838,204
American Funds Insurance Series^®– High-Income Bond Fund – Class 1 (AmerHiInc) 112,915 shares (cost $1,399,212)		1,456,603
American Funds Insurance Series^®– U.S. Government/AAA-Rated Securities Fund – Class 1 (AmerUSGvt) 148,491 shares (cost $1,801,807)		1,762,594
Charles Schwab Money Market Portfolio (ChScMM) 17,479,049 shares (cost $17,479,049)		17,479,049
Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp) 298,430 shares (cost $2,767,817)		4,374,991
Credit Suisse Trust – International Focus Portfolio (CSTIntFoc) 3,005,560 shares (cost $26,015,878)		41,296,393
Credit Suisse Trust – Small Cap Growth Portfolio (CSTSmCapGr) 5,183,019 shares (cost $57,356,530)		80,855,104
Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares (DrySmCapIxS) 2,859,153 shares (cost $44,800,945)		53,151,648
Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares, The (DrySRGro) 2,898,943 shares (cost $85,683,438)		82,474,935
Dreyfus Stock Index Fund, Inc. – Initial Shares (DryStkIx) 15,178,110 shares (cost $403,345,471)		548,688,673
Dreyfus Stock Index Fund, Inc. – Service Shares (DryStklxS) 3,251,953 shares (cost $98,300,691)		117,590,617
Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares (DryVIFApp) 1,155,852 shares (cost $37,309,207)		49,181,512
Dreyfus Variable Investment Fund – Appreciation Portfolio – Service Shares (DryVIFAppS) 590,114 shares (cost $21,192,583)		24,973,630
Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Service Shares (DryVIFDevLdS) 105,314 shares (cost $4,206,383)		4,376,848
Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares (DryVIFGrInc) 1,382,570 shares (cost $25,647,185)		34,273,921
Federated Insurance Series – Federated American Leaders Fund II – Service Shares (FedAmLeadS) 112,536 shares (cost $2,169,181)		2,411,655
Federated Insurance Series – Federated Capital Appreciation Fund II – Service Shares (FedCapApS) 477,259 shares (cost $2,626,738)		3,226,269
Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares (FedMrkOp) 319,253 shares (cost $3,284,497)		3,358,545
Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares (FedQualBd) 1,396,882 shares (cost $15,955,027)		15,770,800
Federated Insurance Series – Federated Quality Bond Fund II – Service Shares (FedQualBdS) 4,602,310 shares (cost $51,969,228)		51,729,967
Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class (FidVIPEI) 35,978,039 shares (cost $832,999,956)		942,624,625
Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class 2 (FidVIPEIS2) 6,573,158 shares (cost $156,208,794)		170,047,594
Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Initial Class (FidVIPGr) 20,198,373 shares (cost $799,741,752)		724,515,654
Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Service Class 2 (FidVIPGrS2) 1,446,438 shares (cost $45,193,838)		51,232,823
Fidelity^® Variable Insurance Products Fund – High Income Portfolio – Initial Class (FidVIPHI) 24,194,435 shares (cost $156,863,983)		153,634,665
Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class (FidVIPOv) 6,599,320 shares (cost $91,108,971)		158,185,709
Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class R (FidVIPOvR) 3,032,968 shares (cost $47,969,107)		72,548,596
Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 (FidVIPOvS2) 367,324 shares (cost $5,927,577)		8,723,951

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 R (FidVIPOvS2R) 2,075,276 shares (cost $37,810,100)	$	48,997,270
Fidelity^® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class (FidVIPAM) 18,272,318 shares (cost $277,995,973)		287,058,112
Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Initial Class (FidVIPCon) 22,947,074 shares (cost $542,041,619)		722,144,429
Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Service Class 2 (FidVIPConS2) 10,276,410 shares (cost $287,536,962)		319,699,121
Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class (FidVIPIGBdS) 1,418,577 shares (cost $17,856,624)		17,987,552
Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class 2 (FidVIPIGBdS2) 14,901,216 shares (cost $185,151,261)		187,159,273
Fidelity^® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class (FidVIPGrOp) 1,666,814 shares (cost $21,724,932)		30,269,340
Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class (FidVIPMCapS) 296,640 shares (cost $9,715,718)		10,260,788
Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class 2 (FidVIPMCapS2) 5,395,077 shares (cost $164,866,723)		184,781,377
Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class (FidVIPVaIS) 1,082,734 shares (cost $13,864,856)		14,530,289
Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class 2 (FidVIPVaIS2) 1,857,125 shares (cost $23,660,829)		25,034,047
Fidelity^® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2) 2,360,147 shares (cost $49,535,462)		44,795,587
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class (FidVIPFree10S) 147,800 shares (cost $1,657,364)		1,711,525
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class 2 (FidVIPFree10S2) 2,715,015 shares (cost $29,868,348)		31,385,572
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class (FidVIPFree20S) 120,663 shares (cost $1,425,218)		1,458,814
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class 2 (FidVIPFree20S2) 3,195,486 shares (cost $35,833,322)		38,601,471
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class (FidVIPFree30S) 72,476 shares (cost $879,808)		901,598
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class 2 (FidVIPFree30S2) 1,090,727 shares (cost $12,557,909)		13,546,835
Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2 (FrVIPIncSec2) 3,038,708 shares (cost $49,943,260)		52,751,979
Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 2 (FrVIPRisDiv2) 6,933,705 shares (cost $117,388,408)		142,487,634
Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 2 (FrVIPSmCapV2) 3,626,903 shares (cost $59,027,428)		68,149,511
Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3 (FrVIPDevMrk3) 1,975,565 shares (cost $23,180,727)		27,223,290

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2 (FrVIPForSec2) 589,452 shares (cost $7,547,619)	$	11,034,540
Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3) 6,931,752 shares (cost $110,660,870)		129,485,134
Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3 (FrVIPGlInc3) 1,338,032 shares (cost $19,830,359)		20,726,121
Gartmore GVIT – American Funds GGVIT Asset Allocation Fund – Class II (GVITAstAll2) 7,293,818 shares (cost $131,830,964)		135,519,145
Gartmore GVIT – American Funds GGVIT Bond Fund – Class II (GVITBnd2) 1,557,558 shares (cost $17,838,881)		18,254,574
Gartmore GVIT – American Funds GGVIT Global Growth Fund – Class II (GVITGlobGr2) 992,503 shares (cost $21,522,992)		23,174,948
Gartmore GVIT – American Funds GGVIT Growth Fund – Class II (GVITGrowth2) 739,981 shares (cost $45,784,488)		47,965,577
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class II (GVITIntVal2) 160,372 shares (cost $2,260,441)		2,966,884
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III (GVITIntVal3) 1,673,408 shares (cost $26,119,419)		31,008,258
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class VI (GVITIntVal6) 7,062,318 shares (cost $119,309,822)		130,582,253
Gartmore GVIT – Emerging Markets Fund – Class I (GVITEmMrkts) 70,364 shares (cost $638,345)		1,232,781
Gartmore GVIT – Emerging Markets Fund – Class II (GVITEmMrkts2) 338,401 shares (cost $3,752,737)		5,894,940
Gartmore GVIT – Emerging Markets Fund – Class III (GVITEmMrkts3) 3,437,831 shares (cost $45,003,947)		60,196,414
Gartmore GVIT – Emerging Markets Fund – Class VI (GVITEmMrkts6) 3,336,691 shares (cost $47,205,020)		58,392,093
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I (GVITFHiInc) 2,439,918 shares (cost $19,839,131)		19,470,546
Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III (GVITFHiInc3) 3,850,153 shares (cost $30,313,718)		30,685,719
Gartmore GVIT – Gartmore GGVIT International Index Fund – Class VIII (GVITIntIdx8) 345,889 shares (cost $3,453,608)		3,735,600
Gartmore GVIT – Global Financial Services Fund – Class II (GVITGlFin2) 140,993 shares (cost $1,726,492)		1,862,518
Gartmore GVIT – Global Financial Services Fund – Class III (GVITGlFin3) 323,882 shares (cost $4,375,199)		4,294,681
Gartmore GVIT – Global Health Sciences Fund – Class II (GVITGlHlth2) 218,254 shares (cost $2,282,833)		2,296,034
Gartmore GVIT – Global Health Sciences Fund – Class III (GVITGlHlth3) 653,652 shares (cost $6,945,657)		6,954,860
Gartmore GVIT – Global Health Sciences Fund – Class VI (GVITGlHlth6) 1,150,026 shares (cost $12,359,703)		12,178,772
Gartmore GVIT – Global Technology and Communications Fund – Class I (GVITGlTech) 102,129 shares (cost $348,690)		437,113
Gartmore GVIT – Global Technology and Communications Fund – Class II (GVITGlTech2) 339,270 shares (cost $1,341,383)		1,441,898
Gartmore GVIT – Global Technology and Communications Fund – Class III (GVITGlTech3) 1,417,211 shares (cost $5,468,851)		6,108,181
Gartmore GVIT – Global Technology and Communications Fund – Class VI (GVITGlTech6) 1,644,154 shares (cost $6,581,421)		7,020,536

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Gartmore GVIT – Global Utilities Fund – Class II (GVITGlUtl2) 81,785 shares (cost $807,275)	$	1,053,397
Gartmore GVIT – Global Utilities Fund – Class III (GVITGlUtl3) 1,054,620 shares (cost $12,281,129)		13,572,963
Gartmore GVIT – Government Bond Fund – Class I (GVITGvtBd) 32,099,525 shares (cost $382,293,759)		364,329,612
Gartmore GVIT – Growth Fund – Class I (GVITGrowth) 5,062,616 shares (cost $46,706,809)		61,510,781
Gartmore GVIT – International Growth Fund – Class I (GVITIntGro) 11,024 shares (cost $66,963)		133,057
Gartmore GVIT – International Growth Fund – Class III (GVITIntGro3) 2,280,109 shares (cost $21,455,539)		27,543,711
Gartmore GVIT – Investor Destinations Aggressive Fund – Class II (GVITIDAgg2) 42,536,219 shares (cost $481,437,349)		574,664,320
Gartmore GVIT – Investor Destinations Conservative Fund – Class II (GVITIDCon2) 12,985,173 shares (cost $134,527,152)		135,954,757
Gartmore GVIT – Investor Destinations Moderate Fund – Class II (GVITIDMod2) 142,432,117 shares (cost $1,603,965,730)		1,749,066,396
Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II (GVITIDModAg2) 107,765,237 shares (cost $1,247,112,948)		1,411,724,609
Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II (GVITIDModCon2) 30,560,419 shares (cost $328,936,720)		346,860,758
Gartmore GVIT – J.P. Morgan GVIT Balanced Fund – Class I (GVITJPBal) 311,482 shares (cost $3,161,951)		3,426,307
Gartmore GVIT – Mid Cap Growth Fund – Class I (GVITMdCpGr) 536,103 shares (cost $14,181,998)		15,997,321
Gartmore GVIT – Mid Cap Growth Fund – Class II (GVITMdCpGr2) 4,210,533 shares (cost $117,276,696)		124,926,521
Gartmore GVIT – Mid Cap Index Fund – Class I (GVITMidCap) 7,129,407 shares (cost $113,420,884)		132,535,682
Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt) 454,484,334 shares (cost $454,484,334)		454,484,334
Gartmore GVIT – Nationwide Fund – Class I (GVITNWFund) 24,841,931 shares (cost $275,356,158)		330,894,525
Gartmore GVIT – Nationwide Fund – Class II (GVITNWFund2) 13,961,884 shares (cost $171,283,843)		185,413,818
Gartmore GVIT – Nationwide Leaders Fund – Class III (GVITNWLead3) 458,384 shares (cost $6,313,318)		6,311,945
Gartmore GVIT – Small Cap Growth Fund – Class I (GVITSmCapGr) 725,588 shares (cost $11,014,744)		11,906,907
Gartmore GVIT – Small Cap Growth Fund – Class II (GVITSmCapGr2) 885,182 shares (cost $13,454,178)		14,348,798
Gartmore GVIT – Small Cap Value Fund – Class I (GVITSmCapVal) 8,490,709 shares (cost $95,460,368)		105,709,329
Gartmore GVIT – Small Cap Value Fund – Class II (GVITSmCapVal2) 3,493,303 shares (cost $42,687,572)		43,107,365
Gartmore GVIT – Small Company Fund – Class I (GVITSmComp) 7,577,128 shares (cost $148,179,997)		189,352,417
Gartmore GVIT – Small Company Fund – Class II (GVITSmComp2) 3,833,982 shares (cost $89,234,174)		94,545,992
Gartmore GVIT – U.S. Growth Leaders Fund – Class II (GVITUSGro2) 1,885,477 shares (cost $20,547,672)		19,778,658
Gartmore GVIT – U.S. Growth Leaders Fund – Class III (GVITUSGro3) 635,338 shares (cost $7,004,361)		6,740,933
Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund – Class II (GVITVKVal2) 16,262,354 shares (cost $191,863,816)		203,279,424

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Gartmore GVIT – Van Kampen GVIT Multi Sector Bond Fund – Class I (GVITMltSec) 5,753,617 shares (cost $56,624,851)	$	56,442,986
Gartmore GVIT – Worldwide Leaders Fund – Class III (GVITWLead3) 409,189 shares (cost $5,554,759)		6,502,012
Janus Aspen Series – Balanced Portfolio – Service Shares (JanBal) 461,306 shares (cost $11,502,864)		13,299,463
Janus Aspen Series – Forty Portfolio – Service Shares (JanForty) 1,204,710 shares (cost $26,441,184)		36,032,879
Janus Aspen Series – Global Technology Portfolio – Service II Shares (JanGlTechS2) 1,134,646 shares (cost $4,166,149)		4,935,711
Janus Aspen Series – Global Technology Portfolio – Service Shares (JanGlTech) 913,632 shares (cost $3,302,520)		3,901,210
Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JanRMgCore) 306,187 shares (cost $3,979,147)		3,888,578
Janus Aspen Series – International Growth Portfolio – Service II Shares (JanIntGroS2) 2,592,725 shares (cost $104,377,120)		131,710,410
Janus Aspen Series – International Growth Portfolio – Service Shares (JanIntGro) 320,122 shares (cost $7,971,266)		16,201,353
JPMorgan Series Trust II – JPMorgan Mid Cap Value Portfolio (JPMSTMidCap) 595,337 shares (cost $16,069,134)		18,788,844
MFS Variable Insurance Trust – Investors Growth Stock Series – Service Class (MFSInvGrStS) 2,285,254 shares (cost $20,382,281)		23,835,202
MFS Variable Insurance Trust – Value Series – Service Class (MFSValS) 4,376,640 shares (cost $56,476,736)		63,111,145
MTB Large Cap Growth Fund II (MTBLgCapGr2) 96,621 shares (cost $950,353)		1,057,998
MTB Large Cap Value Fund II (MTBLgCapV2) 121,408 shares (cost $1,310,868)		1,450,828
MTB Managed Allocation Fund – Aggressive Growth II (MTBAggGr2) 28,004 shares (cost $310,510)		329,322
MTB Managed Allocation Fund – Conservative Growth II (MTBConGr2) 8,474 shares (cost $87,050)		88,044
MTB Managed Allocation Fund – Moderate Growth II (MTBModGr2) 804,874 shares (cost $8,528,056)		8,579,961
Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S (NBAMTFasc) 428,021 shares (cost $5,728,812)		6,219,139
Neuberger Berman Advisers Management Trust – Growth Portfolio – Class I (NBAMTGro) 8,996,236 shares (cost $87,149,997)		141,510,799
Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares (NBAMTGuard) 934,860 shares (cost $13,152,376)		18,426,097
Neuberger Berman Advisers Management Trust – International Portfolio – Class S (NBAMTInt) 10,770,476 shares (cost $137,594,744)		153,910,099
Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I (NBAMTLMat) 17,661,963 shares (cost $230,254,623)		225,366,653
Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio – S Class Shares (NBAMTMCGrS) 391,860 shares (cost $6,898,154)		9,020,609
Neuberger Berman Advisers Management Trust – Partners Portfolio – Class I (NBAMTPart) 9,702,165 shares (cost $146,471,313)		205,297,811
Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S (NBAMTRegS) 1,045,263 shares (cost $17,968,740)		18,135,315
Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio Class I (NBAMSocRes) 13,887,327 shares (cost $212,290,112)		232,057,238
Oppenheimer Global Securities Fund/VA – Class 3 (OppGlSec3) 3,278,396 shares (cost $85,172,854)		121,267,861

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Oppenheimer Global Securities Fund/VA – Class 4 (OppGlSec4) 2,589,026 shares (cost $78,802,739)	$	94,473,550
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares (OppBal) 7,792,842 shares (cost $121,903,559)		137,855,370
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares (OppCapAp) 2,404,984 shares (cost $79,844,255)		99,638,493
Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Service Class (OppCapApS) 1,559,566 shares (cost $55,637,863)		64,082,573
Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares (OppBdFd) 10,395,999 shares (cost $112,626,704)		116,019,351
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares (OppGlSec) 8,001,082 shares (cost $151,961,037)		294,359,797
Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Service Class (OppGlSecS) 606,338 shares (cost $15,955,126)		22,125,284
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares (OppHighInc) 108,182 shares (cost $885,457)		924,958
Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Service Class (OppHighIncS) 5,230,918 shares (cost $42,921,848)		44,462,801
Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Fund/VA – Non-Service Shares (OppMSt) 1,173,796 shares (cost $21,909,520)		29,086,673
Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Fund/VA – Service Class (OppMStS) 9,601,820 shares (cost $211,560,232)		236,012,737
Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Small Cap Fund/VA – Non-Service Shares (OppMStSCap) 118,955 shares (cost $2,140,782)		2,277,980
Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Small Cap Fund/VA – Service Class (OppMStSCapS) 3,733,146 shares (cost $63,985,598)		70,855,113
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares (OppMidCap) 382,817 shares (cost $16,972,294)		19,466,240
Pioneer Small Cap Value VCT Portfolio – Class I (PioSmCapV) 74,874 shares (cost $1,272,881)		1,341,736
Putnam Variable Trust – Putnam VT Growth & Income Fund – IB Shares (PVTGroInc) 297,996 shares (cost $7,279,266)		8,749,164
Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares (PVTIntEq) 85,337 shares (cost $1,119,252)		1,761,355
Putnam Variable Trust – Putnam VT Voyager Fund – IB Shares (PVTVoyII) 92,004 shares (cost $2,423,218)		2,766,559
T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2) 2,152,666 shares (cost $20,644,758)		22,409,249
T. Rowe Price Equity Income Portfolio – II (TRowEqInc2) 2,187,129 shares (cost $50,697,066)		54,240,811
T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2) 1,879,265 shares (cost $9,171,963)		9,208,398
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Class R1 (VEWrldBdR1) 660,140 shares (cost $7,856,506)		7,763,248
Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class (VEWrldBd) 1,866,325 shares (cost $22,962,913)		21,985,311

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

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


Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Class R1 (VEWrldEMktR1) 1,002,647 shares (cost $19,047,920)	$	25,026,071
Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class (VEWrldEMkt) 1,697,390 shares (cost $22,349,807)		42,400,803
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Class R1 (VEWrldHAsR1) 1,031,208 shares (cost $28,139,304)		33,730,812
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class (VEWrldHAs) 1,489,452 shares (cost $22,343,368)		48,719,967
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I (VKCorPlus) 124,250 shares (cost $1,396,420)		1,416,448
Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class II (VKCorPlus2) 9,995,540 shares (cost $112,784,785)		113,149,509
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I (VKEmMkt) 1,055,326 shares (cost $8,995,454)		9,413,509
Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class II (VKEmMkt2) 269,602 shares (cost $2,336,084)		2,396,762
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I (VKUSRealEst) 7,436,576 shares (cost $121,039,566)		218,337,869
Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class II (VKUSRealEst2) 4,011,317 shares (cost $85,272,729)		116,729,325
Victory Variable Insurance Funds – Diversified Stock Fund Class A Shares (VicDivrStk) 74,087 shares (cost $818,164)		969,793
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Discovery Fund^SM(WFDisc) 4,181,097 shares (cost $46,046,042)		68,737,235
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Large Company Growth Fund (WFLrgCoGro) 14,309 shares (cost $124,345)		137,225
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Money Market Fund (WFMnMrkt) 16,725 shares (cost $16,725)		16,725
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Opportunity Fund^SM(WFOpp) 13,957,699 shares (cost $263,928,100)		335,263,923
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Total Return Bond Fund (WFTotRetBd) 2,243 shares (cost $21,976)		21,983

Total investments		17,881,047,066
Accounts receivable		–

Total assets		17,881,047,066

Accounts payable		329,630


Contract owners’ equity (note 4)	$	17,880,717,436

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS

Year Ended December 31, 2006


Investment activity:	Total			AIMBValue2		AIMCapAp2		AIMCapDev2		AlgerBal		AlgMidCapGr		AlGrIncB		AlSmMdCpB
Reinvested dividends	$	288,390,942		63,538		–		–		2,716		–		257,900		19,917
Mortality and expense risk charges (note 2)		(234,226,115	)	(810,023	)	(215,687	)	(311,518	)	(3,211	)	(5,470	)	(346,391	)	(136,110	)

Net investment income (loss)		54,164,827		(746,485	)	(215,687	)	(311,518	)	(495	)	(5,470	)	(88,491	)	(116,193	)


Proceeds from mutual fund shares sold		2,556,465,713		8,511,032		2,305,688		4,005,203		259,989		277,657		3,869,668		1,967,032
Cost of mutual fund shares sold		(2,309,692,003	)	(7,111,899	)	(2,095,745	)	(2,987,762	)	(239,136	)	(280,780	)	(3,130,325	)	(1,570,404	)

Realized gain (loss) on investments		246,773,710		1,399,133		209,943		1,017,441		20,853		(3,123	)	739,343		396,628
Change in unrealized gain (loss) on investments		953,363,338		2,478,940		556,447		1,347,726		(26,228	)	(39,360	)	1,302,616		113,486

Net gain (loss) on investments		1,200,137,048		3,878,073		766,390		2,365,167		(5,375	)	(42,483	)	2,041,959		510,114

Reinvested capital gains		491,388,560		2,207,948		–		363,534		11,605		75,353		1,157,952		588,034

Net increase (decrease) in contract owners’ equity resulting from operations	$	1,745,690,435		5,339,536		550,703		2,417,183		5,735		27,400		3,111,420		981,955


Investment activity:	ACVPBal			ACVPCapAp		ACVPIncGr		ACVPIncGr2		ACVPInflPro2		ACVPInt		ACVPInt2		ACVPInt3
Reinvested dividends	$	1,754,401		–		769,094		230,137		2,624,499		1,109,419		46,472		498,679
Mortality and expense risk charges (note 2)		(1,157,353	)	(1,710,155	)	(536,351	)	(216,490	)	(1,200,701	)	(881,763	)	(46,021	)	(407,806	)

Net investment income (loss)		597,048		(1,710,155	)	232,743		13,647		1,423,798		227,656		451		90,873


Proceeds from mutual fund shares sold		21,306,577		27,528,813		10,500,549		3,249,263		16,650,950		16,119,055		398,939		4,987,450
Cost of mutual fund shares sold		(21,282,795	)	(24,581,716	)	(7,333,967	)	(2,657,572	)	(17,224,149	)	(10,982,852	)	(293,423	)	(2,660,193	)

Realized gain (loss) on investments		23,782		2,947,097		3,166,582		591,691		(573,199	)	5,136,203		105,516		2,327,257
Change in unrealized gain (loss) on investments		111,956		17,019,309		2,361,536		1,397,687		(841,927	)	8,412,645		549,318		4,009,260

Net gain (loss) on investments		135,738		19,966,406		5,528,118		1,989,378		(1,415,126	)	13,548,848		654,834		6,336,517

Reinvested capital gains		5,880,493		–		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	6,613,279		18,256,251		5,760,861		2,003,025		8,672		13,776,504		655,285		6,427,390

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	ACVPInt4			ACVPMdCpV1		ACVPMdCpV2		ACVPUltra		ACVPUltra2		ACVPVal		ACVPVal2		ACVPVista1
Reinvested dividends	$	152,434		19,800		74,027		–		–		2,071,190		933,013		–
Mortality and expense risk charges (note 2)		(157,489	)	(11,255	)	(146,098	)	(73,258	)	(257,769	)	(1,954,371	)	(1,293,000	)	(688	)

Net investment income (loss)		(5,055	)	8,545		(72,071	)	(73,258	)	(257,769	)	116,819		(359,987	)	(688	)

Proceeds from mutual fund shares sold		2,271,723		651,127		1,496,452		4,237,099		2,306,950		30,575,350		7,594,388		37,069
Cost of mutual fund shares sold		(1,637,347	)	(648,184	)	(1,378,985	)	(3,997,245	)	(2,237,396	)	(26,863,030	)	(7,153,468	)	(40,549	)

Realized gain (loss) on investments		634,376		2,943		117,467		239,854		69,554		3,712,320		440,920		(3,480	)
Change in unrealized gain (loss) on investments		1,506,142		110,033		1,200,817		(474,553	)	(616,341	)	6,275,683		6,575,521		7,144

Net gain (loss) on investments		2,140,518		112,976		1,318,284		(234,699	)	(546,787	)	9,988,003		7,016,441		3,664

Reinvested capital gains		–		82,755		474,403		–		–		13,065,386		6,618,448		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	2,135,463		204,276		1,720,616		(307,957	)	(804,556	)	23,170,208		13,274,902		2,976


Investment activity:	ACVPVista2			AmerGro		AmerHiInc		AmerUSGvt		ChScMM		CSTGlSmCp		CSTIntFoc		CSTSmCapGr
Reinvested dividends	$	–		185,364		79,104		77,240		597,574		–		421,034		–
Mortality and expense risk charges (note 2)		(43,427	)	(260,120	)	(20,296	)	(26,507	)	(132,841	)	(63,791	)	(575,648	)	(1,219,347	)

Net investment income (loss)		(43,427	)	(74,756	)	58,808		50,733		464,733		(63,791	)	(154,614	)	(1,219,347	)

Proceeds from mutual fund shares sold		1,238,886		4,973,066		1,611,855		747,828		14,061,032		1,385,183		9,815,852		23,179,616
Cost of mutual fund shares sold		(1,183,896	)	(5,183,395	)	(1,594,312	)	(773,164	)	(14,061,032	)	(967,804	)	(6,606,303	)	(20,546,613	)

Realized gain (loss) on investments		54,990		(210,329	)	17,543		(25,336	)	–		417,379		3,209,549		2,633,003
Change in unrealized gain (loss) on investments		4,637		1,806,605		65,471		17,159		–		161,847		3,651,076		1,806,461

Net gain (loss) on investments		59,627		1,596,276		83,014		(8,177	)	–		579,226		6,860,625		4,439,464

Reinvested capital gains		6,260		115,257		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	22,460		1,636,777		141,822		42,556		464,733		515,435		6,706,011		3,220,117

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	DrySmCapIxS			DrySRGro		DryStkIx		DryStklxS		DryVIFApp		DryVIFAppS		DryVIFDevLdS		DryVIFGrInc
Reinvested dividends	$	225,022		96,942		9,091,947		1,484,869		808,137		332,686		8,247		266,062
Mortality and expense risk charges (note 2)		(774,216	)	(1,155,371	)	(7,485,117	)	(1,558,996	)	(672,044	)	(374,547	)	(71,769	)	(455,358	)

Net investment income (loss)		(549,194	)	(1,058,429	)	1,606,830		(74,127	)	136,093		(41,861	)	(63,522	)	(189,296	)

Proceeds from mutual fund shares sold		18,783,175		20,121,073		123,044,118		9,062,856		14,702,578		7,521,576		1,404,019		7,752,421
Cost of mutual fund shares sold		(14,955,929	)	(28,800,917	)	(102,951,183	)	(7,611,515	)	(11,765,668	)	(6,652,550	)	(1,310,786	)	(7,307,573	)

Realized gain (loss) on investments		3,827,246		(8,679,844	)	20,092,935		1,451,341		2,936,910		869,026		93,233		444,848
Change in unrealized gain (loss) on investments		1,685,485		15,984,293		50,562,262		11,911,645		3,854,109		2,442,930		(374,221	)	3,860,938

Net gain (loss) on investments		5,512,731		7,304,449		70,655,197		13,362,986		6,791,019		3,311,956		(280,988	)	4,305,786

Reinvested capital gains		1,276,198		–		–		–		–		–		426,364		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	6,239,735		6,246,020		72,262,027		13,288,859		6,927,112		3,270,095		81,854		4,116,490


Investment activity:	FedAmLeadS			FedCapApS		FedMrkOp		FedQualBd		FedQualBdS		FidVIPEI		FidVIPEIS2		FidVIPGr
Reinvested dividends	$	30,247		16,812		–		798,746		1,900,849		30,850,858		4,319,947		3,220,814
Mortality and expense risk charges (note 2)		(37,401	)	(48,408	)	(21,749	)	(247,044	)	(794,844	)	(12,446,652	)	(2,246,981	)	(10,374,449	)

Net investment income (loss)		(7,154	)	(31,596	)	(21,749	)	551,702		1,106,005		18,404,206		2,072,966		(7,153,635	)

Proceeds from mutual fund shares sold		772,881		464,647		312,703		7,716,952		10,944,455		180,970,242		7,606,327		179,522,315
Cost of mutual fund shares sold		(711,139	)	(389,271	)	(306,792	)	(8,218,034	)	(11,651,474	)	(171,918,232	)	(6,075,141	)	(261,407,099	)

Realized gain (loss) on investments		61,742		75,376		5,911		(501,082	)	(707,019	)	9,052,010		1,531,186		(81,884,784	)
Change in unrealized gain (loss) on investments		(34,090	)	364,848		74,048		400,959		825,348		20,075,536		2,639,359		129,552,902

Net gain (loss) on investments		27,652		440,224		79,959		(100,123	)	118,329		29,127,546		4,170,545		47,668,118

Reinvested capital gains		296,530		–		–		–		–		110,981,405		18,091,877		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	317,028		408,628		58,210		451,579		1,224,334		158,513,157		24,335,388		40,514,483

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	FidVIPGrS2			FidVIPHI		FidVIPOv		FidVIPOvR		FidVIPOvS2		FidVIPOvS2R		FidVIPAM		FidVIPCon
Reinvested dividends	$	80,994		11,578,170		1,457,953		601,943		61,128		285,363		8,683,890		9,388,226
Mortality and expense risk charges (note 2)		(808,121	)	(2,112,443	)	(2,106,057	)	(911,444	)	(121,667	)	(654,937	)	(4,059,549	)	(9,869,627	)

Net investment income (loss)		(727,127	)	9,465,727		(648,104	)	(309,501	)	(60,539	)	(369,574	)	4,624,341		(481,401	)

Proceeds from mutual fund shares sold		8,628,170		60,355,383		32,690,400		9,261,232		1,139,417		6,831,010		63,794,223		113,230,994
Cost of mutual fund shares sold		(7,994,829	)	(60,798,453	)	(19,618,370	)	(4,620,785	)	(857,719	)	(4,816,103	)	(71,400,393	)	(91,967,224	)

Realized gain (loss) on investments		633,341		(443,070	)	13,072,030		4,640,447		281,698		2,014,907		(7,606,170	)	21,263,770
Change in unrealized gain (loss) on investments		2,502,135		5,569,841		10,741,269		5,518,302		989,822		4,519,821		20,092,233		(7,707,936	)

Net gain (loss) on investments		3,135,476		5,126,771		23,813,299		10,158,749		1,271,520		6,534,728		12,486,063		13,555,834

Reinvested capital gains		–		–		1,013,550		414,035		52,977		237,802		–		58,269,912

Net increase (decrease) in contract owners’ equity resulting from operations	$	2,408,349		14,592,498		24,178,745		10,263,283		1,263,958		6,402,956		17,110,404		71,344,345


Investment activity:	FidVIPConS2			FidVIPIGBdS		FidVIPIGBdS2		FidVIPGrOp		FidVIPMCapS		FidVIPMCapS2		FidVIPVaIS		FidVIPVaIS2
Reinvested dividends	$	2,851,295		641,913		2,670,607		248,128		–		283,855		85,833		83,632
Mortality and expense risk charges (note 2)		(4,500,920	)	(225,606	)	(1,946,575	)	(431,249	)	(44,302	)	(2,850,020	)	(201,602	)	(389,453	)

Net investment income (loss)		(1,649,625	)	416,307		724,032		(183,121	)	(44,302	)	(2,566,165	)	(115,769	)	(305,821	)

Proceeds from mutual fund shares sold		28,132,030		3,809,281		388,497		10,393,992		466,254		32,736,665		7,952,565		3,236,136
Cost of mutual fund shares sold		(19,690,373	)	(3,951,307	)	(414,906	)	(8,265,743	)	(482,876	)	(24,192,935	)	(8,216,023	)	(3,396,988	)

Realized gain (loss) on investments		8,441,657		(142,026	)	(26,409	)	2,128,249		(16,622	)	8,543,730		(263,458	)	(160,852	)
Change in unrealized gain (loss) on investments		(5,489,005	)	190,063		2,980,561		(922,416	)	545,070		(8,102,421	)	(371,115	)	(395,437	)

Net gain (loss) on investments		2,952,652		48,037		2,954,152		1,205,833		528,448		441,309		(634,573	)	(556,289	)

Reinvested capital gains		25,398,970		39,141		167,611		–		–		18,926,578		2,868,943		4,001,218

Net increase (decrease) in contract owners’ equity resulting from operations	$	26,701,997		503,485		3,845,795		1,022,712		484,146		16,801,722		2,118,601		3,139,108

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	FidVIPEnergyS2			FidVIPFree10S		FidVIPFree10S2		FidVIPFree20S		FidVIPFree20S2		FidVIPFree30S		FidVIPFree30S2		FICoreEq
Reinvested dividends	$	265,662		28,044		480,402		20,896		514,526		9,458		176,825		382
Mortality and expense risk charges (note 2)		(539,152	)	(9,123	)	(426,437	)	(4,754	)	(526,806	)	(2,320	)	(190,970	)	(1,788	)

Net investment income (loss)		(273,490	)	18,921		53,965		16,142		(12,280	)	7,138		(14,145	)	(1,406	)

Proceeds from mutual fund shares sold		11,723,144		66,699		1,761,893		802		1,416,001		11,495		2,521,000		608,159
Cost of mutual fund shares sold		(10,330,320	)	(65,641	)	(1,655,914	)	(818	)	(1,253,252	)	(10,566	)	(2,255,591	)	(657,433	)

Realized gain (loss) on investments		1,392,824		1,058		105,979		(16	)	162,749		929		265,409		(49,274	)
Change in unrealized gain (loss) on investments		(5,147,619	)	54,161		1,364,634		33,597		2,332,455		21,790		718,333		8,918

Net gain (loss) on investments		(3,754,795	)	55,219		1,470,613		33,581		2,495,204		22,719		983,742		(40,356	)

Reinvested capital gains		5,748,744		7,228		132,708		12,913		343,017		6,719		138,477		44,085

Net increase (decrease) in contract owners’ equity resulting from operations	$	1,720,459		81,368		1,657,286		62,636		2,825,941		36,576		1,108,074		2,323


Investment activity:	FHCapAp			FrVIPIncSec2		FrVIPRisDiv2		FrVIPSmCapV2		FrVIPDevMrk3		FrVIPForSec2		FrVIPForSec3		FrVIPGlInc3
Reinvested dividends	$	–		122,446		1,454,108		327,249		210,433		131,257		901,940		323,944
Mortality and expense risk charges (note 2)		(136	)	(229,492	)	(2,210,972	)	(860,810	)	(282,483	)	(161,418	)	(1,244,462	)	(189,053	)

Net investment income (loss)		(136	)	(107,046	)	(756,864	)	(533,561	)	(72,050	)	(30,161	)	(342,522	)	134,891

Proceeds from mutual fund shares sold		59,979		1,283,753		11,583,274		11,509,200		3,522,225		2,064,943		1,500,993		4,599,798
Cost of mutual fund shares sold		(62,786	)	(1,195,574	)	(9,287,234	)	(8,212,297	)	(2,776,676	)	(1,560,498	)	(1,115,442	)	(4,287,613	)

Realized gain (loss) on investments		(2,807	)	88,179		2,296,040		3,296,903		745,549		504,445		385,551		312,185
Change in unrealized gain (loss) on investments		(1,311	)	2,808,718		16,597,747		3,272,356		3,369,698		1,435,417		14,668,916		886,867

Net gain (loss) on investments		(4,118	)	2,896,897		18,893,787		6,569,259		4,115,247		1,939,862		15,054,467		1,199,052

Reinvested capital gains		8,971		16,379		688,343		1,831,202		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	4,717		2,806,230		18,825,266		7,866,900		4,043,197		1,909,701		14,711,945		1,333,943

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	GVITAstAll2			GVITBnd2		GVITGlobGr2		GVITGrowth2		GVITIntVal2		GVITIntVal3		GVITIntVal6		GVITEmMrkts
Reinvested dividends	$	2,229,974		40,267		11,766		278,450		51,872		560,768		1,412,660		8,186
Mortality and expense risk charges (note 2)		(538,631	)	(72,730	)	(94,701	)	(224,283	)	(42,285	)	(363,178	)	(1,261,028	)	(15,563	)

Net investment income (loss)		1,691,343		(32,463	)	(82,935	)	54,167		9,587		197,590		151,632		(7,377	)

Proceeds from mutual fund shares sold		33,319		545,522		28,899		172,731		451,970		4,629,223		3,530,832		358,420
Cost of mutual fund shares sold		(35,013	)	(544,931	)	(30,051	)	(185,404	)	(364,339	)	(3,651,685	)	(3,021,106	)	(205,726	)

Realized gain (loss) on investments		(1,694	)	591		(1,152	)	(12,673	)	87,631		977,538		509,726		152,694
Change in unrealized gain (loss) on investments		3,688,181		415,693		1,651,955		2,181,090		248,426		2,219,669		8,847,378		178,349

Net gain (loss) on investments		3,686,487		416,284		1,650,803		2,168,417		336,057		3,197,207		9,357,104		331,043

Reinvested capital gains		–		–		–		–		183,065		1,743,452		4,643,844		12,193

Net increase (decrease) in contract owners’ equity resulting from operations	$	5,377,830		383,821		1,567,868		2,222,584		528,709		5,138,249		14,152,580		335,859


Investment activity:	GVITEmMrkts2			GVITEmMrkts3		GVITEmMrkts6		GVITFHiInc		GVITFHiInc3		GVITIntIdx8		GVITGlFin2		GVITGlFin3
Reinvested dividends	$	30,578		413,747		264,090		1,498,495		1,767,090		26,803		28,911		90,825
Mortality and expense risk charges (note 2)		(86,765	)	(755,195	)	(658,535	)	(314,857	)	(338,377	)	(15,464	)	(26,035	)	(59,612	)

Net investment income (loss)		(56,187	)	(341,448	)	(394,445	)	1,183,638		1,428,713		11,339		2,876		31,213

Proceeds from mutual fund shares sold		1,718,901		18,501,952		12,932,247		6,478,472		4,131,399		137,857		143,766		3,971,535
Cost of mutual fund shares sold		(1,276,655	)	(13,794,303	)	(9,827,268	)	(6,647,316	)	(4,163,544	)	(140,479	)	(131,439	)	(3,625,016	)

Realized gain (loss) on investments		442,246		4,707,649		3,104,979		(168,844	)	(32,145	)	(2,622	)	12,327		346,519
Change in unrealized gain (loss) on investments		1,193,912		9,966,222		8,069,967		746,831		696,626		281,992		68,123		(133,123	)

Net gain (loss) on investments		1,636,158		14,673,871		11,174,946		577,987		664,481		279,370		80,450		213,396

Reinvested capital gains		65,952		682,812		478,848		–		–		–		213,065		490,190

Net increase (decrease) in contract owners’ equity resulting from operations	$	1,645,923		15,015,235		11,259,349		1,761,625		2,093,194		290,709		296,391		734,799

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	GVITGlHlth2			GVITGlHlth3		GVITGlHlth6		GVITGlTech		GVITGlTech2		GVITGlTech3		GVITGlTech6		GVITGlUtl2
Reinvested dividends	$	–		–		–		–		–		–		–		21,607
Mortality and expense risk charges (note 2)		(35,788	)	(107,695	)	(170,948	)	(6,258	)	(21,535	)	(59,990	)	(71,534	)	(14,492	)

Net investment income (loss)		(35,788	)	(107,695	)	(170,948	)	(6,258	)	(21,535	)	(59,990	)	(71,534	)	7,115


Proceeds from mutual fund shares sold		325,739		3,599,923		3,213,819		228,383		279,498		2,005,234		2,775,180		155,358
Cost of mutual fund shares sold		(322,787	)	(3,573,978	)	(3,143,614	)	(198,920	)	(291,133	)	(1,839,642	)	(2,415,480	)	(117,385	)

Realized gain (loss) on investments		2,952		25,945		70,205		29,463		(11,635	)	165,592		359,700		37,973
Change in unrealized gain (loss) on investments		52,114		168,338		160,341		22,766		151,730		365,081		194,784		186,942

Net gain (loss) on investments		55,066		194,283		230,546		52,229		140,095		530,673		554,484		224,915

Reinvested capital gains		–		–		–		–		–		–		–		59,551

Net increase (decrease) in contract owners’ equity resulting from operations	$	19,278		86,588		59,598		45,971		118,560		470,683		482,950		291,581


Investment activity:	GVITGlUtl3			GVITGvtBd		GVITGrowth		GVITIntGro		GVITIntGro3		GVITIDAgg2		GVITIDCon2		GVITIDMod2
Reinvested dividends	$	242,842		13,168,813		31,764		1,402		255,848		10,542,544		3,906,042		34,520,108
Mortality and expense risk charges (note 2)		(108,718	)	(4,469,687	)	(862,462	)	(1,645	)	(300,052	)	(10,160,711	)	(2,045,422	)	(23,594,312	)

Net investment income (loss)		134,124		8,699,126		(830,698	)	(243	)	(44,204	)	381,833		1,860,620		10,925,796


Proceeds from mutual fund shares sold		2,511,041		13,371,041		15,011,588		51,992		5,198,218		17,209,685		14,374,346		1,379,708
Cost of mutual fund shares sold		(2,458,140	)	(14,044,983	)	(14,070,298	)	(29,853	)	(3,341,424	)	(13,364,444	)	(14,305,112	)	(1,061,815	)

Realized gain (loss) on investments		52,901		(673,942	)	941,290		22,139		1,856,794		3,845,241		69,234		317,893
Change in unrealized gain (loss) on investments		1,883,876		(3,973,773	)	2,781,955		15,066		3,966,647		58,943,272		2,473,142		101,238,121

Net gain (loss) on investments		1,936,777		(4,647,715	)	3,723,245		37,205		5,823,441		62,788,513		2,542,376		101,556,014

Reinvested capital gains		715,316		2,306,840		–		274		54,145		7,436,693		1,213,194		11,652,856

Net increase (decrease) in contract owners’ equity resulting from operations	$	2,786,217		6,358,251		2,892,547		37,236		5,833,382		70,607,039		5,616,190		124,134,666

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	GVITIDModAg2			GVITIDModCon2		GVITJPBal		GVITMdCpGr		GVITMdCpGr2		GVITMidCap		GVITMyMkt		GVITNWFund
Reinvested dividends	$	25,697,833		8,520,962		72,852		–		–		1,558,998		20,826,879		3,607,180
Mortality and expense risk charges (note 2)		(19,394,608	)	(4,918,931	)	(40,844	)	(224,180	)	(1,140,485	)	(1,961,806	)	(6,746,403	)	(4,507,450	)

Net investment income (loss)		6,303,225		3,602,031		32,008		(224,180	)	(1,140,485	)	(402,808	)	14,080,476		(900,270	)


Proceeds from mutual fund shares sold		–		10,510,625		950,581		7,451,168		4,681,671		31,459,748		262,482,171		72,016,994
Cost of mutual fund shares sold		–		(9,430,937	)	(895,570	)	(5,607,880	)	(3,623,505	)	(22,926,415	)	(262,482,171	)	(68,239,792	)

Realized gain (loss) on investments		–		1,079,688		55,011		1,843,288		1,058,166		8,533,333		–		3,777,202
Change in unrealized gain (loss) on investments		112,420,043		11,181,551		232,402		(520,547	)	4,818,675		990,681		–		35,463,167

Net gain (loss) on investments		112,420,043		12,261,239		287,413		1,322,741		5,876,841		9,524,014		–		39,240,369

Reinvested capital gains		13,219,199		4,003,100		–		–		–		1,920,558		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	131,942,467		19,866,370		319,421		1,098,561		4,736,356		11,041,764		14,080,476		38,340,099


Investment activity:	GVITNWFund2			GVITNWLead3		GVITSmCapGr		GVITSmCapGr2		GVITSmCapVal		GVITSmCapVal2		GVITSmComp		GVITSmComp2
Reinvested dividends	$	995,895		39,574		–		–		483,121		85,727		205,364		50,111
Mortality and expense risk charges (note 2)		(1,557,533	)	(64,005	)	(181,940	)	(218,402	)	(1,495,160	)	(537,881	)	(2,688,873	)	(1,230,454	)

Net investment income (loss)		(561,638	)	(24,431	)	(181,940	)	(218,402	)	(1,012,039	)	(452,154	)	(2,483,509	)	(1,180,343	)


Proceeds from mutual fund shares sold		1,819,407		1,047,838		6,467,973		4,593,236		34,144,155		8,257,344		42,659,233		23,541,273
Cost of mutual fund shares sold		(1,458,625	)	(1,036,900	)	(5,280,948	)	(3,589,274	)	(22,763,579	)	(8,205,607	)	(33,446,999	)	(22,464,410	)

Realized gain (loss) on investments		360,782		10,938		1,187,025		1,003,962		11,380,576		51,737		9,212,234		1,076,863
Change in unrealized gain (loss) on investments		12,774,959		253,006		(854,143	)	(702,491	)	(2,306,247	)	2,138,486		9,058,885		6,709,173

Net gain (loss) on investments		13,135,741		263,944		332,882		301,471		9,074,329		2,190,223		18,271,119		7,786,036

Reinvested capital gains		–		464,598		–		–		8,136,289		3,221,609		3,872,440		1,403,336

Net increase (decrease) in contract owners’ equity resulting from operations	$	12,574,103		704,111		150,942		83,069		16,198,579		4,959,678		19,660,050		8,009,029

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	GVITUSGro2			GVITUSGro3		GVITVKVal2		GVITMltSec		GVITWLead3		JanBal		JanForty		JanGlTechS2
Reinvested dividends	$	32,739		20,477		1,993,862		2,294,451		38,710		252,088		49,315		–
Mortality and expense risk charges (note 2)		(341,596	)	(115,866	)	(2,086,194	)	(807,384	)	(55,935	)	(192,921	)	(481,794	)	(66,294	)

Net investment income (loss)		(308,857	)	(95,389	)	(92,332	)	1,487,067		(17,225	)	59,167		(432,479	)	(66,294	)


Proceeds from mutual fund shares sold		4,812,555		4,182,058		18,791,514		9,798,965		1,375,975		2,447,542		10,343,108		1,545,579
Cost of mutual fund shares sold		(5,044,343	)	(4,370,780	)	(16,455,229	)	(9,570,775	)	(1,166,146	)	(2,075,402	)	(6,434,972	)	(1,265,893	)

Realized gain (loss) on investments		(231,788	)	(188,722	)	2,336,285		228,190		209,829		372,140		3,908,136		279,686
Change in unrealized gain (loss) on investments		(445,004	)	(61,412	)	8,530,868		26,694		748,485		653,537		(839,430	)	84,356

Net gain (loss) on investments		(676,792	)	(250,134	)	10,867,153		254,884		958,314		1,025,677		3,068,706		364,042

Reinvested capital gains		373,442		145,945		6,927,464		128,444		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	(612,207	)	(199,578	)	17,702,285		1,870,395		941,089		1,084,844		2,636,227		297,748


Investment activity:	JanGlTech			JanRMgCore		JanIntGroS2		JanIntGro		JPMSTMidCap		MFSInvGrStS		MFSValS		MTBLgCapGr2
Reinvested dividends	$	–		5,045		1,539,299		274,904		140,692		–		315,704		5,334
Mortality and expense risk charges (note 2)		(59,567	)	(68,568	)	(903,163	)	(205,474	)	(306,370	)	(397,889	)	(631,842	)	(13,668	)

Net investment income (loss)		(59,567	)	(63,523	)	636,136		69,430		(165,678	)	(397,889	)	(316,138	)	(8,334	)


Proceeds from mutual fund shares sold		1,514,680		5,000,448		5,582,637		3,579,804		14,611,944		4,925,096		6,930,665		77,869
Cost of mutual fund shares sold		(1,440,070	)	(5,222,326	)	(2,649,748	)	(2,085,550	)	(12,992,540	)	(4,101,622	)	(5,777,337	)	(75,827	)

Realized gain (loss) on investments		74,610		(221,878	)	2,932,889		1,494,254		1,619,404		823,474		1,153,328		2,042
Change in unrealized gain (loss) on investments		246,774		74,125		21,141,732		3,977,242		1,219,446		874,376		5,180,019		80,899

Net gain (loss) on investments		321,384		(147,753	)	24,074,621		5,471,496		2,838,850		1,697,850		6,333,347		82,941

Reinvested capital gains		–		307,433		–		–		568,468		–		1,062,420		10,927

Net increase (decrease) in contract owners’ equity resulting from operations	$	261,817		96,157		24,710,757		5,540,926		3,241,640		1,299,961		7,079,629		85,534

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	MTBLgCapV2			MTBAggGr2		MTBConGr2		MTBModGr2		NBAMTFasc		NBAMTGro		NBAMTGuard		NBAMTInt
Reinvested dividends	$	12,551		7,468		2,412		208,286		–		–		120,854		281,334
Mortality and expense risk charges (note 2)		(16,847	)	(3,332	)	(998	)	(114,574	)	(92,270	)	(1,967,492	)	(252,210	)	(1,143,822	)

Net investment income (loss)		(4,296	)	4,136		1,414		93,712		(92,270	)	(1,967,492	)	(131,356	)	(862,488	)


Proceeds from mutual fund shares sold		96,667		8,775		15,930		810,255		520,351		39,607,251		5,767,809		43,531
Cost of mutual fund shares sold		(83,772	)	(7,943	)	(15,898	)	(791,537	)	(453,318	)	(29,477,934	)	(3,456,959	)	(36,065	)

Realized gain (loss) on investments		12,895		832		32		18,718		67,033		10,129,317		2,310,850		7,466
Change in unrealized gain (loss) on investments		76,080		17,228		1,046		161,103		83,801		9,405,193		(85,731	)	14,735,128

Net gain (loss) on investments		88,975		18,060		1,078		179,821		150,834		19,534,510		2,225,119		14,742,594

Reinvested capital gains		96,192		8,607		1,188		412,969		155,936		–		–		1,031,768

Net increase (decrease) in contract owners’ equity resulting from operations	$	180,871		30,803		3,680		686,502		214,500		17,567,018		2,093,763		14,911,874


Investment activity:	NBAMTLMat			NBAMTMCGrS		NBAMTPart		NBAMTRegS		NBAMSocRes		OppGlSec3		OppGlSec4		OppBal
Reinvested dividends	$	6,002,928		–		1,473,068		36,571		124,539		1,087,010		714,667		3,172,547
Mortality and expense risk charges (note 2)		(2,343,818	)	(133,144	)	(2,856,732	)	(137,332	)	(1,971,303	)	(1,463,105	)	(1,232,751	)	(1,921,717	)

Net investment income (loss)		3,659,110		(133,144	)	(1,383,664	)	(100,761	)	(1,846,764	)	(376,095	)	(518,084	)	1,250,830


Proceeds from mutual fund shares sold		9,949,188		2,116,024		47,339,091		2,135,351		338,436		6,784,040		15,683,808		32,572,436
Cost of mutual fund shares sold		(10,223,564	)	(1,506,512	)	(34,569,140	)	(2,034,914	)	(267,265	)	(3,982,555	)	(11,680,198	)	(31,973,634	)

Realized gain (loss) on investments		(274,376	)	609,512		12,769,951		100,437		71,171		2,801,485		4,003,610		598,802
Change in unrealized gain (loss) on investments		992,362		489,777		(13,120,113	)	38,281		17,863,233		8,444,284		4,355,053		3,992,333

Net gain (loss) on investments		717,986		1,099,289		(350,162	)	138,718		17,934,404		11,245,769		8,358,663		4,591,135

Reinvested capital gains		–		–		22,688,477		506,998		884,270		5,690,652		4,426,282		6,974,232

Net increase (decrease) in contract owners’ equity resulting from operations	$	4,377,096		966,145		20,954,651		544,955		16,971,910		16,560,326		12,266,861		12,816,197

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	OppCapAp			OppCapApS		OppBdFd		OppGlSec		OppGlSecS		OppHighInc		OppHighIncS		OppMSt
Reinvested dividends	$	432,933		118,051		6,794,865		3,206,419		194,310		–		3,008,029		328,506
Mortality and expense risk charges (note 2)		(1,455,172	)	(987,425	)	(1,662,905	)	(4,026,978	)	(318,451	)	(3,991	)	(616,938	)	(375,776	)

Net investment income (loss)		(1,022,239	)	(869,374	)	5,131,960		(820,559	)	(124,141	)	(3,991	)	2,391,091		(47,270	)


Proceeds from mutual fund shares sold		30,702,444		7,739,154		26,672,045		70,655,170		3,453,038		56,763		18,083,584		5,916,897
Cost of mutual fund shares sold		(19,991,119	)	(6,847,797	)	(27,043,734	)	(37,766,597	)	(2,709,441	)	(54,331	)	(18,180,668	)	(4,143,343	)

Realized gain (loss) on investments		10,711,325		891,357		(371,689	)	32,888,573		743,597		2,432		(97,084	)	1,773,554
Change in unrealized gain (loss) on investments		(3,008,832	)	3,574,841		(297,292	)	(4,020,288	)	1,316,446		39,501		724,880		1,860,960

Net gain (loss) on investments		7,702,493		4,466,198		(668,981	)	28,868,285		2,060,043		41,933		627,796		3,634,514

Reinvested capital gains		–		–		–		16,748,798		1,203,577		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	6,680,254		3,596,824		4,462,979		44,796,524		3,139,479		37,942		3,018,887		3,587,244


Investment activity:	OppMStS			OppMStSCap		OppMStSCapS		OppMidCap		PioSmCapV2		PioSmCapV		PVTGroInc		PVTIntEq
Reinvested dividends	$	697,400		–		6,821		–		9,431		1,739		134,182		9,857
Mortality and expense risk charges (note 2)		(2,225,876	)	(8,504	)	(711,891	)	(305,748	)	(5,406	)	(8,020	)	(139,094	)	(24,383	)

Net investment income (loss)		(1,528,476	)	(8,504	)	(705,070	)	(305,748	)	4,025		(6,281	)	(4,912	)	(14,526	)


Proceeds from mutual fund shares sold		–		102,956		3,093,064		12,144,221		1,791,958		191,955		1,786,095		117,476
Cost of mutual fund shares sold		–		(104,668	)	(2,256,713	)	(8,979,662	)	(1,947,580	)	(196,005	)	(1,526,721	)	(86,409	)

Realized gain (loss) on investments		–		(1,712	)	836,351		3,164,559		(155,622	)	(4,050	)	259,374		31,067
Change in unrealized gain (loss) on investments		19,680,869		137,198		3,887,706		(2,431,174	)	(151,881	)	68,855		675,415		351,798

Net gain (loss) on investments		19,680,869		135,486		4,724,057		733,385		(307,503	)	64,805		934,789		382,865

Reinvested capital gains		–		–		861,082		–		333,283		42,374		209,015		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	18,152,393		126,982		4,880,069		427,637		29,805		100,898		1,138,892		368,339

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	PVTVoyII			TRoeBlChip2		TRowEqInc2		TRowLtdTBd2		VEWrldBdR1		VEWrldBd		VEWrldEMktR1		VEWrldEMkt
Reinvested dividends	$	3,097		42,616		446,182		226,975		580,883		2,153,713		105,178		257,827
Mortality and expense risk charges (note 2)		(46,102	)	(216,821	)	(454,566	)	(96,817	)	(105,368	)	(324,490	)	(264,375	)	(537,961	)

Net investment income (loss)		(43,005	)	(174,205	)	(8,384	)	130,158		475,515		1,829,223		(159,197	)	(280,134	)


Proceeds from mutual fund shares sold		1,226,954		1,816,222		1,069,617		1,209,819		2,440,546		6,523,394		5,534,864		10,530,601
Cost of mutual fund shares sold		(1,131,445	)	(1,686,173	)	(1,024,639	)	(1,216,510	)	(2,673,850	)	(7,101,357	)	(4,011,308	)	(5,510,121	)

Realized gain (loss) on investments		95,509		130,049		44,978		(6,691	)	(233,304	)	(577,963	)	1,523,556		5,020,480
Change in unrealized gain (loss) on investments		35,601		1,536,062		3,857,050		47,408		138,245		(88,888	)	3,126,469		4,165,084

Net gain (loss) on investments		131,110		1,666,111		3,902,028		40,717		(95,059	)	(666,851	)	4,650,025		9,185,564

Reinvested capital gains		–		–		1,294,029		–		–		–		1,655,963		4,059,314

Net increase (decrease) in contract owners’ equity resulting from operations	$	88,105		1,491,906		5,187,673		170,875		380,456		1,162,372		6,146,791		12,964,744


Investment activity:	VEWrldHAsR1			VEWrldHAs		VKCorPlus		VKCorPlus2		VKEmMkt		VKEmMkt2		VKUSRealEst		VKUSRealEst2
Reinvested dividends	$	22,703		35,251		8,271		2,251,420		911,678		207,593		2,148,423		872,174
Mortality and expense risk charges (note 2)		(468,069	)	(672,358	)	(5,216	)	(1,057,853	)	(140,576	)	(35,736	)	(2,640,766	)	(1,388,149	)

Net investment income (loss)		(445,366	)	(637,107	)	3,055		1,193,567		771,102		171,857		(492,343	)	(515,975	)


Proceeds from mutual fund shares sold		15,000,542		12,467,802		269,229		56,923		4,132,269		423,686		39,401,840		11,300,888
Cost of mutual fund shares sold		(9,502,017	)	(5,177,442	)	(275,110	)	(57,323	)	(3,964,049	)	(438,706	)	(19,848,332	)	(6,289,609	)

Realized gain (loss) on investments		5,498,525		7,290,360		(5,881	)	(400	)	168,220		(15,020	)	19,553,508		5,011,279
Change in unrealized gain (loss) on investments		(1,083,256	)	817,332		20,028		328,513		(267,286	)	4,511		29,064,115		17,752,662

Net gain (loss) on investments		4,415,269		8,107,692		14,147		328,113		(99,066	)	(10,509	)	48,617,623		22,763,941

Reinvested capital gains		1,932,012		2,999,882		1,099		306,481		198,048		45,299		12,898,400		5,982,846

Net increase (decrease) in contract owners’ equity resulting from operations	$	5,901,915		10,470,467		18,301		1,828,161		870,084		206,647		61,023,680		28,230,812

(Continued)

NATIONWIDE VARIABLE ACCOUNT– II

STATEMENTS OF OPERATIONS, Continued

Year Ended December 31, 2006


Investment activity:	VicDivrStk			WFDisc		WFLrgCoGro		WFMnMrkt		WFOpp		WFTotRetBd
Reinvested dividends	$	2,708		–		–		3,728		–		937
Mortality and expense risk charges (note 2)		(12,624	)	(933,893	)	(2,756	)	(1,369	)	(4,650,382	)	(246	)

Net investment income (loss)		(9,916	)	(933,893	)	(2,756	)	2,359		(4,650,382	)	691


Proceeds from mutual fund shares sold		134,738		12,676,185		5,099		2,449,443		78,334,103		246
Cost of mutual fund shares sold		(109,596	)	(9,080,670	)	(4,905	)	(2,449,443	)	(74,587,273	)	(248	)

Realized gain (loss) on investments		25,142		3,595,515		194		–		3,746,830		(2	)
Change in unrealized gain (loss) on investments		70,173		5,897,547		2,873		–		(1,783,769	)	(124	)

Net gain (loss) on investments		95,315		9,493,062		3,067		–		1,963,061		(126	)

Reinvested capital gains		24,629		–		–		–		37,907,571		–

Net increase (decrease) in contract owners’ equity resulting from operations	$	110,028		8,559,169		311		2,359		35,220,250		565

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2006 and 2005


	Total					AIMBValue2				AIMCapAp2				AIMCapDev2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	54,164,827		24,170,939		(746,485	)	(708,763	)	(215,687	)	(190,108	)	(311,518	)	(216,893	)
Realized gain (loss) on investments		246,773,710		1,295,389		1,399,133		1,263,081		209,943		403,183		1,017,441		126,185
Change in unrealized gain (loss) on investments		953,363,338		600,232,308		2,478,940		883,898		556,447		299,434		1,347,726		1,204,267
Reinvested capital gains		491,388,560		214,630,863		2,207,948		606,132		–		–		363,534		–

Net increase (decrease) in contract owners’ equity resulting from operations		1,745,690,435		840,329,499		5,339,536		2,044,348		550,703		512,509		2,417,183		1,113,559


Equity transactions:
Purchase payments received from contract owners (note 3)		4,413,387,374		2,681,386,765		6,289,141		11,781,123		2,473,729		3,391,139		3,496,551		4,637,798
Transfers between funds		–		–		(4,893,399	)	1,615,067		555,533		(5,405,458	)	498,823		200,194
Redemptions (note 3)		(2,209,952,262	)	(2,302,379,721	)	(3,079,310	)	(2,092,611	)	(745,118	)	(674,391	)	(1,288,377	)	(811,261	)
Annuity benefits		(1,824,897	)	(2,123,973	)	–		–		(212	)	(213	)	–		–
Annual contract maintenance charges (note 2)		(4,915,442	)	(5,270,684	)	(6,764	)	(4,890	)	(2,005	)	(1,517	)	(2,569	)	(1,462	)
Contingent deferred sales charges (note 2)		(11,554,857	)	(10,642,202	)	(51,190	)	(31,732	)	(9,627	)	(21,245	)	(24,805	)	(9,007	)
Adjustments to maintain reserves		(274,883	)	(380,451	)	(3,443	)	(2,591	)	(1,218	)	(1,516	)	1,419		(1,094	)

Net equity transactions		2,184,865,033		360,589,734		(1,744,965	)	11,264,366		2,271,082		(2,713,201	)	2,681,042		4,015,168


Net change in contract owners’ equity		3,930,555,468		1,200,919,233		3,594,571		13,308,714		2,821,785		(2,200,692	)	5,098,225		5,128,727
Contract owners’ equity beginning of period		13,950,161,968		12,749,242,735		49,174,442		35,865,728		11,583,079		13,783,771		15,894,114		10,765,387

Contract owners’ equity end of period	$	17,880,717,436		13,950,161,968		52,769,013		49,174,442		14,404,864		11,583,079		20,992,339		15,894,114


CHANGES IN UNITS:
Beginning units		717,359,381		637,054,754		3,126,816		2,372,812		783,186		995,122		938,234		681,736

Units purchased		657,395,428		400,792,606		701,873		1,484,610		381,805		487,308		557,111		434,636
Units redeemed		(442,736,650	)	(320,487,979	)	(807,225	)	(730,606	)	(227,999	)	(699,244	)	(407,304	)	(178,138	)

Ending units		932,018,159		717,359,381		3,021,464		3,126,816		936,992		783,186		1,088,041		938,234

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	AlgerBal					AlgMidCapGr				AlGrIncB				AlSmMdCpB
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(495	)	1,603		(5,470	)	(3,417	)	(88,491	)	(70,328	)	(116,193	)	(84,614	)
Realized gain (loss) on investments		20,853		63		(3,123	)	19,099		739,343		578,515		396,628		376,727
Change in unrealized gain (loss) on investments		(26,228	)	29,888		(39,360	)	(12,097	)	1,302,616		112,602		113,486		(256,267	)
Reinvested capital gains		11,605		–		75,353		10,437		1,157,952		–		588,034		363,533

Net increase (decrease) in contract owners’ equity resulting from operations		5,735		31,554		27,400		14,022		3,111,420		620,789		981,955		399,379


Equity transactions:
Purchase payments received from contract owners (note 3)		24,272		–		37,967		37,546		195,594		348,728		151,561		245,768
Transfers between funds		(233,241	)	277,995		161,711		155,998		(1,087,624	)	(1,544,445	)	(368,477	)	(366,646	)
Redemptions (note 3)		(368	)	(383	)	(32,028	)	(9,590	)	(1,346,415	)	(1,253,808	)	(423,626	)	(362,777	)
Annuity benefits		–		–		–		–		–		–		(1,354	)	–
Annual contract maintenance charges (note 2)		–		–		–		–		(1,916	)	(2,187	)	(527	)	(582	)
Contingent deferred sales charges (note 2)		–		–		–		–		(24,716	)	(30,546	)	(7,613	)	(9,316	)
Adjustments to maintain reserves		(24	)	3		(2	)	(11	)	(1,171	)	(1,085	)	(224	)	(701	)

Net equity transactions		(209,361	)	277,615		167,648		183,943		(2,266,248	)	(2,483,343	)	(650,260	)	(494,254	)


Net change in contract owners’ equity		(203,626	)	309,169		195,048		197,965		845,172		(1,862,554	)	331,695		(94,875	)
Contract owners’ equity beginning of period		439,160		129,991		413,029		215,064		22,196,589		24,059,143		8,416,951		8,511,826

Contract owners’ equity end of period	$	235,534		439,160		608,077		413,029		23,041,761		22,196,589		8,748,646		8,416,951


CHANGES IN UNITS:
Beginning units		37,454		11,877		31,739		17,910		1,458,592		1,632,039		472,597		497,373

Units purchased		4,020		25,611		32,400		34,704		106,981		82,656		64,831		81,138
Units redeemed		(22,029	)	(34	)	(21,170	)	(20,875	)	(247,485	)	(256,103	)	(100,626	)	(105,914	)

Ending units		19,445		37,454		42,969		31,739		1,318,088		1,458,592		436,802		472,597

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ACVPBal					ACVPCapAp				ACVPIncGr				ACVPIncGr2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	597,048		572,312		(1,710,155	)	(1,625,651	)	232,743		362,416		13,647		33,678
Realized gain (loss) on investments		23,782		588,775		2,947,097		(4,824,617	)	3,166,582		3,917,195		591,691		440,215
Change in unrealized gain (loss) on investments		111,956		2,206,146		17,019,309		29,279,148		2,361,536		(2,904,435	)	1,397,687		(44,154	)
Reinvested capital gains		5,880,493		41,324		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		6,613,279		3,408,557		18,256,251		22,828,880		5,760,861		1,375,176		2,003,025		429,739


Equity transactions:
Purchase payments received from contract owners (note 3)		2,522,058		3,157,761		3,248,814		3,262,972		2,199,780		2,677,229		326,194		462,162
Transfers between funds		(3,000,910	)	(924,025	)	(4,603,628	)	(27,910	)	(2,375,957	)	(3,216,613	)	(833,369	)	547,977
Redemptions (note 3)		(19,096,414	)	(22,544,847	)	(21,227,180	)	(21,119,532	)	(8,605,238	)	(10,687,057	)	(1,286,325	)	(907,230	)
Annuity benefits		(7,328	)	(21,907	)	(25,367	)	(22,287	)	(9,600	)	(7,832	)	–		–
Annual contract maintenance charges (note 2)		(42,906	)	(51,745	)	(85,270	)	(92,331	)	(22,498	)	(26,418	)	(1,605	)	(2,049	)
Contingent deferred sales charges (note 2)		(39,214	)	(60,186	)	(47,747	)	(60,177	)	(30,863	)	(53,193	)	(19,683	)	(27,407	)
Adjustments to maintain reserves		(439	)	285		(4,498	)	3,254		(8,800	)	(1,436	)	(768	)	(622	)

Net equity transactions		(19,665,153	)	(20,444,664	)	(22,744,876	)	(18,056,011	)	(8,853,176	)	(11,315,320	)	(1,815,556	)	72,831


Net change in contract owners’ equity		(13,051,874	)	(17,036,107	)	(4,488,625	)	4,772,869		(3,092,315	)	(9,940,144	)	187,469		502,570
Contract owners’ equity beginning of period		94,479,773		111,515,880		129,326,941		124,554,072		43,035,378		52,975,522		14,596,589		14,094,019

Contract owners’ equity end of period	$	81,427,899		94,479,773		124,838,316		129,326,941		39,943,063		43,035,378		14,784,058		14,596,589


CHANGES IN UNITS:
Beginning units		4,467,709		5,476,571		4,837,975		5,652,516		3,657,933		4,654,910		974,803		964,870

Units purchased		213,446		331,577		494,523		479,874		433,404		917,258		107,353		212,305
Units redeemed		(1,136,799	)	(1,340,439	)	(1,349,746	)	(1,294,415	)	(1,153,391	)	(1,914,235	)	(220,550	)	(202,372	)

Ending units		3,544,356		4,467,709		3,982,752		4,837,975		2,937,946		3,657,933		861,606		974,803

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ACVPInflPro2					ACVPInt				ACVPInt2				ACVPInt3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,423,798		2,098,347		227,656		(74,340	)	451		(11,682	)	90,873		(42,444	)
Realized gain (loss) on investments		(573,199	)	158,566		5,136,203		3,091,083		105,516		56,030		2,327,257		1,310,376
Change in unrealized gain (loss) on investments		(841,927	)	(2,307,629	)	8,412,645		4,189,377		549,318		276,496		4,009,260		1,756,958
Reinvested capital gains		–		35,728		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		8,672		(14,988	)	13,776,504		7,206,120		655,285		320,844		6,427,390		3,024,890


Equity transactions:
Purchase payments received from contract owners (note 3)		10,189,052		24,340,853		8,853		5,315		–		–		3,046,342		3,496,740
Transfers between funds		(7,261,227	)	5,933,880		(3,141,047	)	(3,382,794	)	(144,615	)	(277,766	)	16,826		(146,655	)
Redemptions (note 3)		(7,599,225	)	(8,390,234	)	(12,029,665	)	(12,885,485	)	(203,184	)	(173,260	)	(5,560,399	)	(5,139,725	)
Annuity benefits		(2,944	)	(2,528	)	(17,676	)	(24,171	)	–		–		(3,926	)	(3,318	)
Annual contract maintenance charges (note 2)		(9,686	)	(9,098	)	(28,749	)	(33,406	)	(489	)	(577	)	(12,020	)	(11,754	)
Contingent deferred sales charges (note 2)		(76,630	)	(55,510	)	(16,433	)	(37,776	)	(4,475	)	(5,856	)	(25,360	)	(32,613	)
Adjustments to maintain reserves		7,433		(56	)	971		(12,452	)	(304	)	(134	)	(24	)	49

Net equity transactions		(4,753,227	)	21,817,307		(15,223,746	)	(16,370,769	)	(353,067	)	(457,593	)	(2,538,561	)	(1,837,276	)


Net change in contract owners’ equity		(4,744,555	)	21,802,319		(1,447,242	)	(9,164,649	)	302,218		(136,749	)	3,888,829		1,187,614
Contract owners’ equity beginning of period		79,311,092		57,508,773		66,963,941		76,128,590		3,059,229		3,195,978		28,907,591		27,719,977

Contract owners’ equity end of period	$	74,566,537		79,311,092		65,516,699		66,963,941		3,361,447		3,059,229		32,796,420		28,907,591


CHANGES IN UNITS:
Beginning units		7,317,685		5,306,858		3,664,642		4,655,031		187,627		218,350		2,307,236		2,469,324

Units purchased		2,292,295		4,432,742		183		33		–		–		501,282		630,178
Units redeemed		(2,731,574	)	(2,421,915	)	(759,248	)	(990,422	)	(19,882	)	(30,723	)	(686,932	)	(792,266	)

Ending units		6,878,406		7,317,685		2,905,577		3,664,642		167,745		187,627		2,121,586		2,307,236

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ACVPInt4					ACVPMdCpV1			ACVPMdCpV2				ACVPUltra
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(5,055	)	(53,348	)	8,545		–	(72,071	)	6,886		(73,258	)	(97,202	)
Realized gain (loss) on investments		634,376		162,980		2,943		–	117,467		3,065		239,854		480,094
Change in unrealized gain (loss) on investments		1,506,142		919,283		110,033		–	1,200,817		21,137		(474,553	)	(329,244	)
Reinvested capital gains		–		–		82,755		–	474,403		117,241		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		2,135,463		1,028,915		204,276		–	1,720,616		148,329		(307,957	)	53,648


Equity transactions:
Purchase payments received from contract owners (note 3)		227,401		2,814,189		157,220		–	5,168,009		3,195,866		388,617		570,959
Transfers between funds		(6,932	)	565,731		3,069,196		–	4,746,349		2,242,602		(2,056,448	)	1,382,471
Redemptions (note 3)		(576,656	)	(299,079	)	(119,273	)	–	(436,420	)	(182,256	)	(1,258,550	)	(1,589,951	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(1,289	)	(893	)	(247	)	–	(606	)	(7	)	(2,721	)	(3,007	)
Contingent deferred sales charges (note 2)		(10,055	)	(5,206	)	(504	)	–	(7,963	)	(255	)	(3,391	)	(5,274	)
Adjustments to maintain reserves		(431	)	(365	)	(7	)	–	(781	)	(153	)	(102	)	(64	)

Net equity transactions		(367,962	)	3,074,377		3,106,385		–	9,468,588		5,255,797		(2,932,595	)	355,134


Net change in contract owners’ equity		1,767,501		4,103,292		3,310,661		–	11,189,204		5,404,126		(3,240,552	)	408,782
Contract owners’ equity beginning of period		9,654,221		5,550,929		–		–	5,404,126		–		7,610,398		7,201,616

Contract owners’ equity end of period	$	11,421,722		9,654,221		3,310,661		–	16,593,330		5,404,126		4,369,846		7,610,398


CHANGES IN UNITS:
Beginning units		771,337		493,520		–		–	483,218		–		704,273		671,844

Units purchased		151,973		406,636		403,874		–	1,011,427		515,404		181,986		543,408
Units redeemed		(181,416	)	(128,819	)	(104,426	)	–	(241,206	)	(32,186	)	(462,737	)	(510,979	)

Ending units		741,894		771,337		299,448		–	1,253,439		483,218		423,522		704,273

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ACVPUltra2					ACVPVal				ACVPVal2				ACVPVista1
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(257,769	)	(224,691	)	116,819		(692,330	)	(359,987	)	(576,486	)	(688	)	–
Realized gain (loss) on investments		69,554		89,007		3,712,320		2,928,046		440,920		720,457		(3,480	)	–
Change in unrealized gain (loss) on investments		(616,341	)	315,814		6,275,683		(14,682,796	)	6,575,521		(2,565,260	)	7,144		–
Reinvested capital gains		–		–		13,065,386		18,109,229		6,618,448		4,761,593		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		(804,556	)	180,130		23,170,208		5,662,149		13,274,902		2,340,304		2,976		–


Equity transactions:
Purchase payments received from contract owners (note 3)		1,880,321		4,269,813		6,535,511		7,630,954		15,603,993		24,572,361		2,630		–
Transfers between funds		(759,604	)	446,568		(444,700	)	(3,550,135	)	6,033,429		8,480,556		145,053		–
Redemptions (note 3)		(812,729	)	(907,375	)	(29,918,655	)	(36,270,143	)	(3,773,312	)	(3,860,822	)	(219	)	–
Annuity benefits		–		–		(43,045	)	(68,181	)	(393	)	(352	)	–		–
Annual contract maintenance charges (note 2)		(2,376	)	(1,724	)	(58,031	)	(68,645	)	(11,347	)	(7,599	)	(26	)	–
Contingent deferred sales charges (note 2)		(15,586	)	(13,702	)	(87,376	)	(110,508	)	(82,100	)	(73,897	)	–		–
Adjustments to maintain reserves		(1,612	)	(1,234	)	(2,151	)	(16,050	)	(4,508	)	(3,368	)	(11	)	–

Net equity transactions		288,414		3,792,346		(24,018,447	)	(32,452,708	)	17,765,762		29,106,879		147,427		–


Net change in contract owners’ equity		(516,142	)	3,972,476		(848,239	)	(26,790,559	)	31,040,664		31,447,183		150,403		–
Contract owners’ equity beginning of period		15,585,166		11,612,690		154,396,815		181,187,374		73,018,856		41,571,673		–		–

Contract owners’ equity end of period	$	15,069,024		15,585,166		153,548,576		154,396,815		104,059,520		73,018,856		150,403		–


CHANGES IN UNITS:
Beginning units		1,111,532		833,172		7,260,905		8,834,706		4,664,738		2,735,693		–		–

Units purchased		269,885		520,061		1,090,565		1,593,966		2,241,828		3,029,494		19,799		–
Units redeemed		(248,835	)	(241,701	)	(2,186,310	)	(3,167,767	)	(1,207,529	)	(1,100,449	)	(4,037	)	–

Ending units		1,132,582		1,111,532		6,165,160		7,260,905		5,699,037		4,664,738		15,762		–

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ACVPVista2					AmerGro				AmerHiInc				AmerUSGvt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(43,427	)	(6,065	)	(74,756	)	(81,352	)	58,808		92,259		50,733		64,530
Realized gain (loss) on investments		54,990		9,469		(210,329	)	85,905		17,543		14,371		(25,336	)	(3,395	)
Change in unrealized gain (loss) on investments		4,637		41,014		1,806,605		2,849,534		65,471		(79,590	)	17,159		(28,059	)
Reinvested capital gains		6,260		–		115,257		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		22,460		44,418		1,636,777		2,854,087		141,822		27,040		42,556		33,076


Equity transactions:
Purchase payments received from contract owners (note 3)		1,235,762		503,121		490,672		268,142		13,027		65,787		15,196		22,511
Transfers between funds		554,056		693,741		(703,803	)	(58,076	)	(218,208	)	(106,696	)	(84,848	)	67,180
Redemptions (note 3)		(78,736	)	(34,942	)	(4,205,848	)	(1,672,803	)	(394,355	)	(152,310	)	(636,902	)	(175,505	)
Annuity benefits		–		–		(717	)	(13,907	)	(7,885	)	(7,814	)	(5,147	)	(5,286	)
Annual contract maintenance charges (note 2)		(131	)	(5	)	(6,602	)	(7,116	)	(829	)	(923	)	(1,329	)	(1,490	)
Contingent deferred sales charges (note 2)		(1,839	)	(546	)	(691	)	(3,174	)	(128	)	(360	)	(279	)	(375	)
Adjustments to maintain reserves		(424	)	(23	)	578		625		572		624		159		123

Net equity transactions		1,708,688		1,161,346		(4,426,411	)	(1,486,309	)	(607,806	)	(201,692	)	(713,150	)	(92,842	)


Net change in contract owners’ equity		1,731,148		1,205,764		(2,789,634	)	1,367,778		(465,984	)	(174,652	)	(670,594	)	(59,766	)
Contract owners’ equity beginning of period		1,205,764		–		21,628,150		20,260,372		1,923,130		2,097,782		2,433,351		2,493,117

Contract owners’ equity end of period	$	2,936,912		1,205,764		18,838,516		21,628,150		1,457,146		1,923,130		1,762,757		2,433,351


CHANGES IN UNITS:
Beginning units		106,490		–		304,890		328,214		51,290		56,446		88,729		91,982

Units purchased		279,170		149,981		9,630		9,003		26,006		50,577		611		3,672
Units redeemed		(143,272	)	(43,491	)	(70,989	)	(32,327	)	(41,790	)	(55,733	)	(26,641	)	(6,925	)

Ending units		242,388		106,490		243,531		304,890		35,506		51,290		62,699		88,729

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	ChScMM					CSTGlSmCp				CSTIntFoc				CSTSmCapGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	464,733		150,483		(63,791	)	(73,413	)	(154,614	)	(214,231	)	(1,219,347	)	(1,491,380	)
Realized gain (loss) on investments		–		–		417,379		318,553		3,209,549		2,605,509		2,633,003		4,911,485
Change in unrealized gain (loss) on investments		–		–		161,847		487,571		3,651,076		4,008,349		1,806,461		(8,473,336	)
Reinvested capital gains		–		–		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		464,733		150,483		515,435		732,711		6,706,011		6,399,627		3,220,117		(5,053,231	)


Equity transactions:
Purchase payments received from contract owners (note 3)		21,665,779		22,653,500		42		4,337		6,316		1,303		3,044,696		3,635,938
Transfers between funds		(12,799,203	)	(13,771,486	)	(314,543	)	(483,998	)	(1,655,063	)	(1,311,321	)	(5,318,207	)	(8,358,382	)
Redemptions (note 3)		(3,158,562	)	(2,104,655	)	(991,334	)	(1,159,692	)	(7,549,991	)	(9,441,859	)	(18,430,628	)	(21,438,588	)
Annuity benefits		(10,451	)	–		(4,650	)	(4,154	)	(11,221	)	(12,324	)	(8,930	)	(18,788	)
Annual contract maintenance charges (note 2)		(951	)	(905	)	(3,114	)	(3,564	)	(17,472	)	(19,669	)	(46,960	)	(60,143	)
Contingent deferred sales charges (note 2)		–		–		(1,508	)	(3,816	)	(9,691	)	(15,149	)	(49,641	)	(67,393	)
Adjustments to maintain reserves		16,408		447		(329	)	(219	)	464		1,336		(1,346	)	138

Net equity transactions		5,713,020		6,776,901		(1,315,436	)	(1,651,106	)	(9,236,658	)	(10,797,683	)	(20,811,016	)	(26,307,218	)


Net change in contract owners’ equity		6,177,753		6,927,384		(800,001	)	(918,395	)	(2,530,647	)	(4,398,056	)	(17,590,899	)	(31,360,449	)
Contract owners’ equity beginning of period		11,301,111		4,373,727		5,174,747		6,093,142		43,827,694		48,225,750		98,444,130		129,804,579

Contract owners’ equity end of period	$	17,478,864		11,301,111		4,374,746		5,174,747		41,297,047		43,827,694		80,853,231		98,444,130


CHANGES IN UNITS:
Beginning units		1,114,003		438,727		377,164		509,005		3,268,498		4,168,927		5,728,799		7,254,068

Units purchased		2,558,854		2,491,042		–		–		423		–		458,167		687,851
Units redeemed		(2,022,834	)	(1,815,766	)	(91,556	)	(131,841	)	(639,146	)	(900,429	)	(1,636,648	)	(2,213,120	)

Ending units		1,650,023		1,114,003		285,608		377,164		2,629,775		3,268,498		4,550,318		5,728,799

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	DrySmCapIxS					DrySRGro				DryStkIx				DryStklxS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(549,194	)	(705,491	)	(1,058,429	)	(1,361,604	)	1,606,830		1,460,098		(74,127	)	(56,107	)
Realized gain (loss) on investments		3,827,246		2,641,402		(8,679,844	)	(13,141,350	)	20,092,935		(8,536,126	)	1,451,341		946,681
Change in unrealized gain (loss) on investments		1,685,485		506,102		15,984,293		16,355,150		50,562,262		25,428,895		11,911,645		1,835,282
Reinvested capital gains		1,276,198		129,852		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		6,239,735		2,571,865		6,246,020		1,852,196		72,262,027		18,352,867		13,288,859		2,725,856


Equity transactions:
Purchase payments received from contract owners (note 3)		8,272,138		9,596,594		3,942,461		4,888,070		19,372,702		23,077,857		16,755,473		25,909,118
Transfers between funds		(6,199,085	)	(3,126,782	)	(5,868,536	)	(9,156,655	)	(23,877,325	)	(35,043,262	)	2,287,580		(1,818,250	)
Redemptions (note 3)		(7,890,338	)	(7,028,690	)	(16,766,355	)	(18,198,451	)	(109,927,277	)	(134,474,508	)	(7,797,438	)	(5,596,561	)
Annuity benefits		(3,560	)	(62	)	(6,022	)	(11,583	)	(174,537	)	(202,062	)	(4,397	)	–
Annual contract maintenance charges (note 2)		(14,363	)	(14,145	)	(73,590	)	(89,604	)	(300,249	)	(358,356	)	(16,191	)	(12,250	)
Contingent deferred sales charges (note 2)		(52,443	)	(52,219	)	(67,954	)	(97,860	)	(292,232	)	(489,253	)	(133,553	)	(122,048	)
Adjustments to maintain reserves		(2,113	)	5,761		(830	)	192		10,551		(1,633	)	(4,949	)	(3,232	)

Net equity transactions		(5,889,764	)	(619,543	)	(18,840,826	)	(22,665,891	)	(115,188,367	)	(147,491,217	)	11,086,525		18,356,777


Net change in contract owners’ equity		349,971		1,952,322		(12,594,806	)	(20,813,695	)	(42,926,340	)	(129,138,350	)	24,375,384		21,082,633
Contract owners’ equity beginning of period		52,799,473		50,847,151		95,068,683		115,882,378		591,622,495		720,760,845		93,210,382		72,127,749

Contract owners’ equity end of period	$	53,149,444		52,799,473		82,473,877		95,068,683		548,696,155		591,622,495		117,585,766		93,210,382


CHANGES IN UNITS:
Beginning units		3,454,461		3,662,793		4,359,987		5,445,879		21,479,216		27,047,637		6,341,787		5,049,202

Units purchased		1,539,527		2,045,815		220,179		354,215		1,287,052		1,677,383		2,041,599		2,570,164
Units redeemed		(1,990,335	)	(2,254,147	)	(1,075,897	)	(1,440,107	)	(5,295,241	)	(7,245,804	)	(1,348,969	)	(1,277,579	)

Ending units		3,003,653		3,454,461		3,504,269		4,359,987		17,471,027		21,479,216		7,034,417		6,341,787

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	DryVIFApp					DryVIFAppS				DryVIFDevLdS				DryVIFGrInc
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	136,093		(778,048	)	(41,861	)	(338,817	)	(63,522	)	(75,258	)	(189,296	)	(10,712	)
Realized gain (loss) on investments		2,936,910		1,255,483		869,026		248,173		93,233		69,456		444,848		(757,856	)
Change in unrealized gain (loss) on investments		3,854,109		1,215,610		2,442,930		648,853		(374,221	)	213,351		3,860,938		1,384,352
Reinvested capital gains		–		–		–		–		426,364		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		6,927,112		1,693,045		3,270,095		558,209		81,854		207,549		4,116,490		615,784


Equity transactions:
Purchase payments received from contract owners (note 3)		2,360,452		2,628,622		1,768,997		6,541,453		95,792		340,937		1,474,060		1,824,314
Transfers between funds		(2,804,650	)	(2,805,052	)	(2,814,042	)	333,561		(620,905	)	(12,352	)	(383,763	)	(1,705,305	)
Redemptions (note 3)		(10,657,509	)	(12,232,791	)	(1,349,934	)	(925,799	)	(419,188	)	(194,613	)	(7,083,559	)	(8,829,239	)
Annuity benefits		(4,875	)	(9,819	)	(11,248	)	–		(169	)	(173	)	(230	)	(224	)
Annual contract maintenance charges (note 2)		(26,913	)	(32,997	)	(2,538	)	(1,999	)	(658	)	(725	)	(21,477	)	(26,347	)
Contingent deferred sales charges (note 2)		(23,100	)	(50,258	)	(24,467	)	(15,578	)	(3,995	)	(3,598	)	(26,474	)	(40,977	)
Adjustments to maintain reserves		939		5,405		(1,472	)	(1,323	)	(249	)	(549	)	(789	)	84

Net equity transactions		(11,155,656	)	(12,496,890	)	(2,434,704	)	5,930,315		(949,372	)	128,927		(6,042,232	)	(8,777,694	)


Net change in contract owners’ equity		(4,228,544	)	(10,803,845	)	835,391		6,488,524		(867,518	)	336,476		(1,925,742	)	(8,161,910	)
Contract owners’ equity beginning of period		53,409,719		64,213,564		24,136,811		17,648,287		5,244,152		4,907,676		36,198,827		44,360,737

Contract owners’ equity end of period	$	49,181,175		53,409,719		24,972,202		24,136,811		4,376,634		5,244,152		34,273,085		36,198,827


CHANGES IN UNITS:
Beginning units		4,029,605		4,990,800		1,814,647		1,357,385		339,465		327,297		2,832,165		3,540,729

Units purchased		618,394		707,935		512,105		795,798		30,981		48,071		279,404		241,061
Units redeemed		(1,420,432	)	(1,669,130	)	(685,659	)	(338,536	)	(92,371	)	(35,903	)	(739,561	)	(949,625	)

Ending units		3,227,567		4,029,605		1,641,093		1,814,647		278,075		339,465		2,372,008		2,832,165

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FedAmLeadS					FedCapApS				FedMrkOp			FedQualBd
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	(7,154	)	(8,208	)	(31,596	)	(24,756	)	(21,749	)	–	551,702		572,028
Realized gain (loss) on investments		61,742		55,258		75,376		96,605		5,911		–	(501,082	)	(242,685	)
Change in unrealized gain (loss) on investments		(34,090	)	31,542		364,848		(68,802	)	74,048		–	400,959		(498,307	)
Reinvested capital gains		296,530		–		–		–		–		–	–		149,710

Net increase (decrease) in contract owners’ equity resulting from operations		317,028		78,592		408,628		3,047		58,210		–	451,579		(19,254	)


Equity transactions:
Purchase payments received from contract owners (note 3)		53,333		40,499		22,614		56,921		1,005,955		–	1,022,586		1,119,889
Transfers between funds		(328,521	)	(129,083	)	(137,729	)	(249,632	)	2,326,425		–	(1,988,008	)	1,038,754
Redemptions (note 3)		(162,074	)	(114,416	)	(233,796	)	(148,236	)	(31,433	)	–	(4,729,517	)	(5,981,629	)
Annuity benefits		–		–		–		–		–		–	(647	)	(442	)
Annual contract maintenance charges (note 2)		(444	)	(477	)	(357	)	(443	)	(54	)	–	(7,661	)	(9,017	)
Contingent deferred sales charges (note 2)		(4,226	)	(3,491	)	(3,209	)	(4,253	)	(557	)	–	(11,725	)	(20,134	)
Adjustments to maintain reserves		(228	)	(184	)	(321	)	(244	)	(103	)	–	(106	)	(286	)

Net equity transactions		(442,160	)	(207,152	)	(352,798	)	(345,887	)	3,300,233		–	(5,715,078	)	(3,852,865	)


Net change in contract owners’ equity		(125,132	)	(128,560	)	55,830		(342,840	)	3,358,443		–	(5,263,499	)	(3,872,119	)
Contract owners’ equity beginning of period		2,536,537		2,665,097		3,170,136		3,512,976		–		–	21,034,213		24,906,332

Contract owners’ equity end of period	$	2,411,405		2,536,537		3,225,966		3,170,136		3,358,443		–	15,770,714		21,034,213


CHANGES IN UNITS:
Beginning units		177,529		191,712		236,710		262,174		–		–	1,866,157		2,208,926

Units purchased		20,776		6,938		6,787		23,332		366,224		–	362,765		495,518
Units redeemed		(51,035	)	(21,121	)	(31,403	)	(48,796	)	(39,369	)	–	(867,885	)	(838,287	)

Ending units		147,270		177,529		212,094		236,710		326,855		–	1,361,037		1,866,157

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FedQualBdS					FidVIPEI				FidVIPEIS2				FidVIPGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	1,106,005		737,170		18,404,206		3,815,760		2,072,966		(310,910	)	(7,153,635	)	(7,205,541	)
Realized gain (loss) on investments		(707,019	)	(78,025	)	9,052,010		2,700,452		1,531,186		411,186		(81,884,784	)	(134,396,094	)
Change in unrealized gain (loss) on investments		825,348		(1,147,073	)	20,075,536		(4,278,330	)	2,639,359		1,526,065		129,552,902		175,274,380
Reinvested capital gains		–		255,075		110,981,405		37,979,470		18,091,877		3,420,101		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		1,224,334		(232,853	)	158,513,157		40,217,352		24,335,388		5,046,442		40,514,483		33,672,745


Equity transactions:
Purchase payments received from contract owners (note 3)		9,431,142		14,684,892		21,879,732		25,730,584		25,521,020		35,560,540		24,963,949		31,458,045
Transfers between funds		(3,233,391	)	(757,240	)	(17,305,162	)	(23,757,087	)	3,053,950		155,860		(47,763,057	)	(62,893,848	)
Redemptions (note 3)		(3,854,058	)	(2,466,626	)	(172,040,803	)	(193,003,898	)	(8,325,807	)	(6,269,559	)	(145,018,682	)	(170,666,868	)
Annuity benefits		–		–		(227,831	)	(246,545	)	–		–		(259,966	)	(299,575	)
Annual contract maintenance charges (note 2)		(4,852	)	(4,322	)	(416,758	)	(478,027	)	(15,866	)	(11,801	)	(498,433	)	(604,417	)
Contingent deferred sales charges (note 2)		(78,061	)	(48,434	)	(317,394	)	(448,276	)	(164,807	)	(118,016	)	(401,089	)	(582,021	)
Adjustments to maintain reserves		(3,119	)	(2,596	)	7,779		4,618		(7,073	)	(5,050	)	543		(147,987	)

Net equity transactions		2,257,661		11,405,674		(168,420,437	)	(192,198,631	)	20,061,417		29,311,974		(168,976,735	)	(203,736,671	)


Net change in contract owners’ equity		3,481,995		11,172,821		(9,907,280	)	(151,981,279	)	44,396,805		34,358,416		(128,462,252	)	(170,063,926	)
Contract owners’ equity beginning of period		48,245,065		37,072,244		952,536,691		1,104,517,970		125,643,989		91,285,573		852,981,710		1,023,045,636

Contract owners’ equity end of period	$	51,727,060		48,245,065		942,629,411		952,536,691		170,040,794		125,643,989		724,519,458		852,981,710


CHANGES IN UNITS:
Beginning units		4,648,453		3,548,586		24,111,620		29,628,395		8,101,371		6,134,314		19,493,494		24,907,685

Units purchased		1,865,087		1,824,415		1,027,386		1,273,402		2,741,071		3,230,424		678,237		1,030,707
Units redeemed		(1,637,597	)	(724,548	)	(5,301,140	)	(6,790,177	)	(1,556,754	)	(1,263,367	)	(4,791,949	)	(6,444,898	)

Ending units		4,875,943		4,648,453		19,837,866		24,111,620		9,285,688		8,101,371		15,379,782		19,493,494

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPGrS2					FidVIPHI				FidVIPOv				FidVIPOvR
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(727,127	)	(598,729	)	9,465,727		26,440,016		(648,104	)	(999,858	)	(309,501	)	(350,927	)
Realized gain (loss) on investments		633,341		442,720		(443,070	)	2,701,744		13,072,030		8,228,128		4,640,447		2,586,032
Change in unrealized gain (loss) on investments		2,502,135		2,019,947		5,569,841		(26,706,292	)	10,741,269		16,991,166		5,518,302		6,610,885
Reinvested capital gains		–		–		–		–		1,013,550		864,342		414,035		282,927

Net increase (decrease) in contract owners’ equity resulting from operations		2,408,349		1,863,938		14,592,498		2,435,468		24,178,745		25,083,778		10,263,283		9,128,917


Equity transactions:
Purchase payments received from contract owners (note 3)		7,260,623		8,683,463		4,521,592		5,028,165		7		37,336		6,395,841		6,574,925
Transfers between funds		(4,567,042	)	(706,159	)	(118,617	)	(24,692,330	)	(4,701,773	)	(5,592,729	)	5,879,972		2,128,862
Redemptions (note 3)		(2,917,588	)	(2,276,480	)	(36,456,243	)	(39,628,101	)	(25,746,301	)	(26,927,568	)	(12,042,160	)	(10,607,658	)
Annuity benefits		–		–		(19,315	)	(38,056	)	(28,147	)	(34,062	)	(738	)	(559	)
Annual contract maintenance charges (note 2)		(6,323	)	(5,713	)	(67,256	)	(81,492	)	(85,695	)	(94,109	)	(23,373	)	(20,206	)
Contingent deferred sales charges (note 2)		(72,275	)	(51,421	)	(51,269	)	(88,509	)	(33,662	)	(58,100	)	(45,140	)	(49,200	)
Adjustments to maintain reserves		(3,268	)	(2,610	)	1,331		4,199		664		10,558		(6	)	207

Net equity transactions		(305,873	)	5,641,080		(32,189,777	)	(59,496,124	)	(30,594,907	)	(32,658,674	)	164,396		(1,973,629	)


Net change in contract owners’ equity		2,102,476		7,505,018		(17,597,279	)	(57,060,656	)	(6,416,162	)	(7,574,896	)	10,427,679		7,155,288
Contract owners’ equity beginning of period		49,127,180		41,622,162		171,232,891		228,293,547		164,601,456		172,176,352		62,120,725		54,965,437

Contract owners’ equity end of period	$	51,229,656		49,127,180		153,635,612		171,232,891		158,185,294		164,601,456		72,548,404		62,120,725


CHANGES IN UNITS:
Beginning units		3,421,593		3,015,154		8,818,397		12,101,014		6,764,235		8,332,810		4,309,892		4,483,379

Units purchased		862,974		1,218,317		2,339,615		5,254,343		44		25		1,433,704		1,258,572
Units redeemed		(887,786	)	(811,878	)	(4,081,149	)	(8,536,960	)	(1,207,407	)	(1,568,600	)	(1,422,347	)	(1,432,059	)

Ending units		3,396,781		3,421,593		7,076,863		8,818,397		5,556,872		6,764,235		4,321,249		4,309,892

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPOvS2					FidVIPOvS2R				FidVIPAM				FidVIPCon
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(60,539	)	(75,511	)	(369,574	)	(263,385	)	4,624,341		5,294,302		(481,401	)	(7,498,947	)
Realized gain (loss) on investments		281,698		208,968		2,014,907		114,139		(7,606,170	)	(8,187,531	)	21,263,770		7,558,635
Change in unrealized gain (loss) on investments		989,822		1,081,051		4,519,821		4,845,812		20,092,233		10,935,053		(7,707,936	)	102,741,772
Reinvested capital gains		52,977		47,840		237,802		93,573		–		127,871		58,269,912		134,237

Net increase (decrease) in contract owners’ equity resulting from operations		1,263,958		1,262,348		6,402,956		4,790,139		17,110,404		8,169,695		71,344,345		102,935,697


Equity transactions:
Purchase payments received from contract owners (note 3)		–		421		13,822,947		12,219,757		7,814,961		9,493,183		25,013,934		23,058,541
Transfers between funds		(559,372	)	(1,646,934	)	(3,355,356	)	2,515,169		(11,377,686	)	(11,146,131	)	5,473,624		38,737,156
Redemptions (note 3)		(449,762	)	(565,644	)	(2,421,383	)	(1,025,620	)	(55,833,580	)	(64,620,693	)	(131,623,210	)	(137,637,254	)
Annuity benefits		–		–		(7,100	)	–		(51,995	)	(78,208	)	(115,077	)	(119,773	)
Annual contract maintenance charges (note 2)		(925	)	(1,064	)	(3,524	)	(1,901	)	(173,740	)	(207,933	)	(312,837	)	(331,156	)
Contingent deferred sales charges (note 2)		(4,078	)	(14,223	)	(34,031	)	(17,227	)	(113,316	)	(146,487	)	(309,135	)	(408,028	)
Adjustments to maintain reserves		(52	)	(179	)	(1,980	)	(901	)	1,879		(1,427	)	1,128		45,696

Net equity transactions		(1,014,189	)	(2,227,623	)	7,999,573		13,689,277		(59,733,477	)	(66,707,696	)	(101,871,573	)	(76,654,818	)


Net change in contract owners’ equity		249,769		(965,275	)	14,402,529		18,479,416		(42,623,073	)	(58,538,001	)	(30,527,228	)	26,280,879
Contract owners’ equity beginning of period		8,474,142		9,439,417		34,592,870		16,113,454		329,682,519		388,220,520		752,666,049		726,385,170

Contract owners’ equity end of period	$	8,723,911		8,474,142		48,995,399		34,592,870		287,059,446		329,682,519		722,138,821		752,666,049


CHANGES IN UNITS:
Beginning units		445,790		579,313		2,671,311		1,455,683		12,409,816		15,144,673		24,802,463		27,634,632

Units purchased		1,165		24		1,660,433		1,560,057		324,058		461,071		2,589,922		3,778,671
Units redeemed		(51,144	)	(133,547	)	(1,068,797	)	(344,429	)	(2,614,974	)	(3,195,928	)	(5,814,122	)	(6,610,840	)

Ending units		395,811		445,790		3,262,947		2,671,311		10,118,900		12,409,816		21,578,263		24,802,463

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPConS2					FidVIPIGBdS				FidVIPIGBdS2				FidVIPGrOp
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,649,625	)	(2,400,544	)	416,307		240,709		724,032		716,568		(183,121	)	(140,350	)
Realized gain (loss) on investments		8,441,657		1,845,527		(142,026	)	(190,489	)	(26,409	)	(115,543	)	2,128,249		467,982
Change in unrealized gain (loss) on investments		(5,489,005	)	25,202,978		190,063		(224,674	)	2,980,561		(1,312,352	)	(922,416	)	2,220,410
Reinvested capital gains		25,398,970		22,995		39,141		265,718		167,611		927,732		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		26,701,997		24,670,956		503,485		91,264		3,845,795		216,405		1,022,712		2,548,042


Equity transactions:
Purchase payments received from contract owners (note 3)		77,350,482		78,629,986		1,476,592		1,469,156		66,292,013		22,108,870		1,266,452		1,560,528
Transfers between funds		809,590		20,492,004		3,486,616		8,046,820		58,308,557		6,285,707		(3,198,145	)	(89,815	)
Redemptions (note 3)		(14,498,839	)	(7,891,852	)	(3,663,807	)	(4,641,892	)	(5,699,981	)	(3,185,926	)	(7,135,890	)	(8,764,536	)
Annuity benefits		(420	)	(398	)	(3,083	)	(1,057	)	(7,331	)	–		(1,226	)	(9,189	)
Annual contract maintenance charges (note 2)		(26,848	)	(15,077	)	(4,912	)	(4,126	)	(7,055	)	(4,364	)	(20,566	)	(25,587	)
Contingent deferred sales charges (note 2)		(285,981	)	(138,688	)	(9,811	)	(10,901	)	(103,116	)	(45,047	)	(17,720	)	(38,283	)
Adjustments to maintain reserves		(14,569	)	(6,670	)	18,969		(976	)	(8,322	)	(2,796	)	(339	)	(9,578	)

Net equity transactions		63,333,415		91,069,305		1,300,564		4,857,024		118,774,765		25,156,444		(9,107,434	)	(7,376,460	)


Net change in contract owners’ equity		90,035,412		115,740,261		1,804,049		4,948,288		122,620,560		25,372,849		(8,084,722	)	(4,828,418	)
Contract owners’ equity beginning of period		229,648,955		113,908,694		16,202,476		11,254,188		64,530,741		39,157,892		38,353,867		43,182,285

Contract owners’ equity end of period	$	319,684,367		229,648,955		18,006,525		16,202,476		187,151,301		64,530,741		30,269,145		38,353,867


CHANGES IN UNITS:
Beginning units		13,262,039		7,550,491		1,541,808		1,079,916		6,089,737		3,702,374		3,577,040		4,326,389

Units purchased		8,264,099		7,967,332		808,985		1,229,890		13,047,730		3,421,090		301,373		469,537
Units redeemed		(4,699,646	)	(2,255,784	)	(687,426	)	(767,998	)	(1,787,267	)	(1,033,727	)	(1,165,914	)	(1,218,886	)

Ending units		16,826,492		13,262,039		1,663,367		1,541,808		17,350,200		6,089,737		2,712,499		3,577,040

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPMCapS				FidVIPMCapS2				FidVIPVaIS				FidVIPVaIS2
Investment activity:	2006			2005	2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(44,302	)	–	(2,566,165	)	(1,703,007	)	(115,769	)	(265,708	)	(305,821	)	(343,579	)
Realized gain (loss) on investments		(16,622	)	–	8,543,730		1,144,981		(263,458	)	359,474		(160,852	)	120,126
Change in unrealized gain (loss) on investments		545,070		–	(8,102,421	)	16,761,654		(371,115	)	(1,114,326	)	(395,437	)	(171,856	)
Reinvested capital gains		–		–	18,926,578		1,286,463		2,868,943		783,331		4,001,218		653,076

Net increase (decrease) in contract owners’ equity resulting from operations		484,146		–	16,801,722		17,490,091		2,118,601		(237,229	)	3,139,108		257,767


Equity transactions:
Purchase payments received from contract owners (note 3)		320,202		–	42,288,802		45,045,687		1,137,916		1,222,693		1,825,056		5,453,593
Transfers between funds		9,687,445		–	(10,815,359	)	18,800,913		(3,202,406	)	(4,617,422	)	(1,220,359	)	(2,856,363	)
Redemptions (note 3)		(229,600	)	–	(9,351,373	)	(4,954,696	)	(2,834,432	)	(4,724,043	)	(1,721,017	)	(1,113,002	)
Annuity benefits		–		–	(2,722	)	(559	)	(1,914	)	(153	)	–		–
Annual contract maintenance charges (note 2)		(966	)	–	(15,093	)	(8,728	)	(6,742	)	(8,364	)	(3,004	)	(2,616	)
Contingent deferred sales charges (note 2)		(439	)	–	(218,044	)	(103,123	)	(11,836	)	(15,763	)	(36,465	)	(31,610	)
Adjustments to maintain reserves		(15	)	–	(11,275	)	(4,315	)	(5,168	)	(96	)	(1,617	)	(1,359	)

Net equity transactions		9,776,627		–	21,874,936		58,775,179		(4,924,582	)	(8,143,148	)	(1,157,406	)	1,448,643

Net change in contract owners’ equity		10,260,773		–	38,676,658		76,265,270		(2,805,981	)	(8,380,377	)	1,981,702		1,706,410
Contract owners’ equity beginning of period		–		–	146,093,277		69,828,007		17,336,157		25,716,534		23,050,709		21,344,299

Contract owners’ equity end of period	$	10,260,773		–	184,769,935		146,093,277		14,530,176		17,336,157		25,032,411		23,050,709


CHANGES IN UNITS:
Beginning units		–		–	7,193,078		3,994,345		1,313,761		1,973,235		1,244,308		1,160,567

Units purchased		1,173,976		–	4,253,259		4,433,881		444,222		726,725		191,017		528,223
Units redeemed		(132,797	)	–	(3,227,321	)	(1,235,148	)	(798,203	)	(1,386,199	)	(250,794	)	(444,482	)

Ending units		1,041,179		–	8,219,016		7,193,078		959,780		1,313,761		1,184,531		1,244,308

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPEnergyS2					FidVIPFree10S			FidVIPFree10S2				FidVIPFree20S
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(273,490	)	(23,749	)	18,921		–	53,965		551		16,142		–
Realized gain (loss) on investments		1,392,824		184,207		1,058		–	105,979		5,892		(16	)	–
Change in unrealized gain (loss) on investments		(5,147,619	)	407,743		54,161		–	1,364,634		152,590		33,597		–
Reinvested capital gains		5,748,744		668,549		7,228		–	132,708		–		12,913		–

Net increase (decrease) in contract owners’ equity resulting from operations		1,720,459		1,236,750		81,368		–	1,657,286		159,033		62,636		–


Equity transactions:
Purchase payments received from contract owners (note 3)		19,333,249		5,050,836		53,889		–	3,508,899		3,116,444		117,432		–
Transfers between funds		12,151,848		8,414,484		1,631,481		–	17,564,881		5,983,805		1,281,628		–
Redemptions (note 3)		(2,795,907	)	(257,832	)	(55,061	)	–	(411,608	)	(186,756	)	(2,756	)	–
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(3,389	)	(337	)	(152	)	–	(879	)	(8	)	(127	)	–
Contingent deferred sales charges (note 2)		(50,584	)	(3,817	)	–		–	(4,455	)	(771	)	–		–
Adjustments to maintain reserves		75,073		(366	)	(10	)	–	(2,474	)	(202	)	(3	)	–

Net equity transactions		28,710,290		13,202,968		1,630,147		–	20,654,364		8,912,512		1,396,174		–


Net change in contract owners’ equity		30,430,749		14,439,718		1,711,515		–	22,311,650		9,071,545		1,458,810		–
Contract owners’ equity beginning of period		14,439,718		–		–		–	9,071,545		–		–		–

Contract owners’ equity end of period	$	44,870,467		14,439,718		1,711,515		–	31,383,195		9,071,545		1,458,810		–


CHANGES IN UNITS:
Beginning units		1,080,443		–		–		–	851,649		–		–		–

Units purchased		3,534,762		1,250,909		170,279		–	1,987,701		871,837		138,818		–
Units redeemed		(1,691,681	)	(170,466	)	(7,413	)	–	(94,968	)	(20,188	)	(296	)	–

Ending units		2,923,524		1,080,443		162,866		–	2,744,382		851,649		138,522		–

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FidVIPFree20S2					FidVIPFree30S			FidVIPFree30S2				FICoreEq
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(12,280	)	7,017		7,138		–	(14,145	)	(4,888	)	(1,406	)	(5,664	)
Realized gain (loss) on investments		162,749		21,517		929		–	265,409		18,906		(49,274	)	(5,219	)
Change in unrealized gain (loss) on investments		2,332,455		435,693		21,790		–	718,333		270,593		8,918		(40,167	)
Reinvested capital gains		343,017		–		6,719		–	138,477		–		44,085		14,212

Net increase (decrease) in contract owners’ equity resulting from operations		2,825,941		464,227		36,576		–	1,108,074		284,611		2,323		(36,838	)


Equity transactions:
Purchase payments received from contract owners (note 3)		6,414,404		4,952,748		78,845		–	1,823,891		3,374,797		–		–
Transfers between funds		14,498,351		10,655,185		789,142		–	5,194,369		3,366,232		(605,749	)	(65,261	)
Redemptions (note 3)		(1,012,327	)	(162,141	)	(2,887	)	–	(1,565,643	)	(25,643	)	(642	)	(14,714	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(2,068	)	(63	)	(77	)	–	(1,322	)	(32	)	–		–
Contingent deferred sales charges (note 2)		(31,028	)	(1,313	)	–		–	(11,599	)	(656	)	–		(171	)
Adjustments to maintain reserves		(2,674	)	(366	)	4		–	(957	)	(239	)	1		838

Net equity transactions		19,864,658		15,444,050		865,027		–	5,438,739		6,714,459		(606,390	)	(79,308	)


Net change in contract owners’ equity		22,690,599		15,908,277		901,603		–	6,546,813		6,999,070		(604,067	)	(116,146	)
Contract owners’ equity beginning of period		15,908,277		–		–		–	6,999,070		–		604,067		720,213

Contract owners’ equity end of period	$	38,598,876		15,908,277		901,603		–	13,545,883		6,999,070		–		604,067


CHANGES IN UNITS:
Beginning units		1,450,199		–		–		–	626,404		–		56,260		63,802

Units purchased		1,991,797		1,481,761		86,321		–	625,668		631,313		–		617
Units redeemed		(232,643	)	(31,562	)	(871	)	–	(157,951	)	(4,909	)	(56,260	)	(8,159	)

Ending units		3,209,353		1,450,199		85,450		–	1,094,121		626,404		–		56,260

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FHCapAp					FrVIPIncSec2			FrVIPRisDiv2				FrVIPSmCapV2
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(136	)	(986	)	(107,046	)	–	(756,864	)	(771,011	)	(533,561	)	(288,917	)
Realized gain (loss) on investments		(2,807	)	37		88,179		–	2,296,040		1,136,116		3,296,903		1,153,999
Change in unrealized gain (loss) on investments		(1,311	)	(1,723	)	2,808,718		–	16,597,747		1,885,963		3,272,356		1,771,708
Reinvested capital gains		8,971		3,525		16,379		–	688,343		637,282		1,831,202		235,179

Net increase (decrease) in contract owners’ equity resulting from operations		4,717		853		2,806,230		–	18,825,266		2,888,350		7,866,900		2,871,969


Equity transactions:
Purchase payments received from contract owners (note 3)		–		2,865		20,167,249		–	12,095,976		44,446,038		13,841,840		17,346,766
Transfers between funds		(59,802	)	(2,070	)	30,795,623		–	(3,208,068	)	(1,469,209	)	4,449,362		446,351
Redemptions (note 3)		(27	)	(809	)	(999,597	)	–	(7,486,005	)	(5,493,806	)	(3,312,817	)	(2,002,381	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(810	)	–	(12,553	)	(8,537	)	(5,132	)	(3,237	)
Contingent deferred sales charges (note 2)		–		(19	)	(16,717	)	–	(151,824	)	(139,676	)	(46,894	)	(59,277	)
Adjustments to maintain reserves		2		(10	)	(682	)	–	(7,745	)	(6,159	)	1,035		(597	)

Net equity transactions		(59,827	)	(43	)	49,945,066		–	1,229,781		37,328,651		14,927,394		15,727,625


Net change in contract owners’ equity		(55,110	)	810		52,751,296		–	20,055,047		40,217,001		22,794,294		18,599,594
Contract owners’ equity beginning of period		55,110		54,300		–		–	122,425,253		82,208,252		45,353,134		26,753,540

Contract owners’ equity end of period	$	–		55,110		52,751,296		–	142,480,300		122,425,253		68,147,428		45,353,134


CHANGES IN UNITS:
Beginning units		4,666		4,651		–		–	8,398,809		5,740,207		2,432,175		1,537,632

Units purchased		–		269		5,160,531		–	1,572,082		4,492,929		1,804,349		1,493,448
Units redeemed		(4,666	)	(254	)	(407,104	)	–	(1,484,955	)	(1,834,327	)	(1,051,719	)	(598,905	)

Ending units		–		4,666		4,753,427		–	8,485,936		8,398,809		3,184,805		2,432,175

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	FrVIPDevMrk3					FrVIPForSec2				FrVIPForSec3				FrVIPGlInc3
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(72,050	)	(25,070	)	(30,161	)	(39,210	)	(342,522	)	(80,568	)	134,891		(867	)
Realized gain (loss) on investments		745,549		24,393		504,445		284,548		385,551		121,340		312,185		(14,553	)
Change in unrealized gain (loss) on investments		3,369,698		672,865		1,435,417		629,424		14,668,916		2,613,664		886,867		8,895
Reinvested capital gains		–		–		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		4,043,197		672,188		1,909,701		874,762		14,711,945		2,654,436		1,333,943		(6,525	)


Equity transactions:
Purchase payments received from contract owners (note 3)		11,395,876		3,581,287		–		6,940		46,897,487		18,402,720		7,405,549		3,390,932
Transfers between funds		5,212,910		3,349,632		(1,108,840	)	(1,427,534	)	32,203,191		5,245,264		7,734,992		1,632,776
Redemptions (note 3)		(868,339	)	(147,946	)	(787,906	)	(552,871	)	(3,466,788	)	(1,159,962	)	(639,499	)	(109,611	)
Annuity benefits		–		–		(432	)	(377	)	–		–		–		–
Annual contract maintenance charges (note 2)		(994	)	(57	)	(755	)	(986	)	(3,915	)	(1,664	)	(609	)	(8	)
Contingent deferred sales charges (note 2)		(14,087	)	(212	)	(4,751	)	(13,830	)	(54,749	)	(18,337	)	(10,598	)	(5,384	)
Adjustments to maintain reserves		(2,367	)	(139	)	(505	)	(862	)	(5,012	)	(1,387	)	(787	)	227

Net equity transactions		15,722,999		6,782,565		(1,903,189	)	(1,989,520	)	75,570,214		22,466,634		14,489,048		4,908,932


Net change in contract owners’ equity		19,766,196		7,454,753		6,512		(1,114,758	)	90,282,159		25,121,070		15,822,991		4,902,407
Contract owners’ equity beginning of period		7,454,753		–		11,027,535		12,142,293		39,198,071		14,077,001		4,902,407		–

Contract owners’ equity end of period	$	27,220,949		7,454,753		11,034,047		11,027,535		129,480,230		39,198,071		20,725,398		4,902,407


CHANGES IN UNITS:
Beginning units		588,613		–		634,836		759,444		3,144,611		1,223,594		501,187		–

Units purchased		1,622,894		651,651		–		35		6,535,090		2,256,842		2,001,149		545,461
Units redeemed		(507,690	)	(63,038	)	(103,657	)	(124,643	)	(962,780	)	(335,825	)	(596,758	)	(44,274	)

Ending units		1,703,817		588,613		531,179		634,836		8,716,921		3,144,611		1,905,578		501,187

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITAstAll2				GVITBnd2			GVITGlobGr2			GVITGrowth2
Investment activity:	2006			2005	2006		2005	2006		2005	2006		2005
Net investment income (loss)	$	1,691,343		–	(32,463	)	–	(82,935	)	–	54,167		–
Realized gain (loss) on investments		(1,694	)	–	591		–	(1,152	)	–	(12,673	)	–
Change in unrealized gain (loss) on investments		3,688,181		–	415,693		–	1,651,955		–	2,181,090		–
Reinvested capital gains		–		–	–		–	–		–	–		–

Net increase (decrease) in contract owners’ equity resulting from operations		5,377,830		–	383,821		–	1,567,868		–	2,222,584		–


Equity transactions:
Purchase payments received from contract owners (note 3)		105,066,314		–	9,199,848		–	8,473,009		–	23,406,611		–
Transfers between funds		26,329,790		–	8,917,875		–	13,429,068		–	22,947,660		–
Redemptions (note 3)		(1,251,823	)	–	(244,938	)	–	(300,586	)	–	(607,446	)	–
Annuity benefits		–		–	–		–	–		–	–		–
Annual contract maintenance charges (note 2)		(585	)	–	(359	)	–	(448	)	–	(715	)	–
Contingent deferred sales charges (note 2)		(2,381	)	–	(1,674	)	–	(1,057	)	–	(7,845	)	–
Adjustments to maintain reserves		9,743		–	4,074		–	(238	)	–	(360	)	–

Net equity transactions		130,151,058		–	17,874,826		–	21,599,748		–	45,737,905		–


Net change in contract owners’ equity		135,528,888		–	18,258,647		–	23,167,616		–	47,960,489		–
Contract owners’ equity beginning of period		–		–	–		–	–		–	–		–

Contract owners’ equity end of period	$	135,528,888		–	18,258,647		–	23,167,616		–	47,960,489		–


CHANGES IN UNITS:
Beginning units		–		–	–		–	–		–	–		–

Units purchased		13,311,771		–	1,890,664		–	2,260,574		–	4,829,017		–
Units redeemed		(336,107	)	–	(140,895	)	–	(101,093	)	–	(151,901	)	–

Ending units		12,975,664		–	1,749,769		–	2,159,481		–	4,677,116		–

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITIntVal2					GVITIntVal3				GVITIntVal6				GVITEmMrkts
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	9,587		(10,621	)	197,590		14,918		151,632		(61,280	)	(7,377	)	(8,536	)
Realized gain (loss) on investments		87,631		145,726		977,538		870,752		509,726		786,687		152,694		101,716
Change in unrealized gain (loss) on investments		248,426		63,675		2,219,669		573,535		8,847,378		1,314,194		178,349		122,707
Reinvested capital gains		183,065		101,555		1,743,452		890,529		4,643,844		1,103,219		12,193		103,842

Net increase (decrease) in contract owners’ equity resulting from operations		528,709		300,335		5,138,249		2,349,734		14,152,580		3,142,820		335,859		319,729


Equity transactions:
Purchase payments received from contract owners (note 3)		76		1,088		1,460,368		1,266,686		44,435,379		12,629,103		–		–
Transfers between funds		(304,280	)	(740,934	)	5,395,963		6,961,123		37,378,079		12,032,167		(238,422	)	(47,460	)
Redemptions (note 3)		(76,994	)	(68,819	)	(4,801,370	)	(4,657,986	)	(2,980,787	)	(1,330,437	)	(102,932	)	(241,617	)
Annuity benefits		–		–		(1,374	)	(888	)	–		–		–		–
Annual contract maintenance charges (note 2)		(282	)	(297	)	(8,633	)	(7,603	)	(4,235	)	(1,786	)	(614	)	(648	)
Contingent deferred sales charges (note 2)		(1,701	)	(519	)	(17,121	)	(10,395	)	(42,262	)	(19,098	)	(765	)	(308	)
Adjustments to maintain reserves		(1,199	)	(24,690	)	(867	)	(25,402	)	(5,105	)	(2,504	)	(73	)	(15	)

Net equity transactions		(384,380	)	(834,171	)	2,026,966		3,525,535		78,781,069		23,307,445		(342,806	)	(290,048	)


Net change in contract owners’ equity		144,329		(533,836	)	7,165,215		5,875,269		92,933,649		26,450,265		(6,947	)	29,681
Contract owners’ equity beginning of period		2,822,637		3,356,473		23,843,412		17,968,143		37,643,603		11,193,338		1,239,682		1,210,001

Contract owners’ equity end of period	$	2,966,966		2,822,637		31,008,627		23,843,412		130,577,252		37,643,603		1,232,735		1,239,682


CHANGES IN UNITS:
Beginning units		159,058		207,842		1,317,124		1,098,371		2,983,147		975,961		71,734		91,659

Units purchased		4		840		597,060		956,263		7,038,258		3,012,868		–		–
Units redeemed		(20,479	)	(49,624	)	(499,777	)	(737,510	)	(1,398,305	)	(1,005,682	)	(18,838	)	(19,925	)

Ending units		138,583		159,058		1,414,407		1,317,124		8,623,100		2,983,147		52,896		71,734

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITEmMrkts2					GVITEmMrkts3				GVITEmMrkts6				GVITFHiInc
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(56,187	)	(63,913	)	(341,448	)	(217,368	)	(394,445	)	(170,703	)	1,183,638		1,707,340
Realized gain (loss) on investments		442,246		177,295		4,707,649		694,520		3,104,979		313,623		(168,844	)	201,185
Change in unrealized gain (loss) on investments		1,193,912		896,157		9,966,222		4,489,060		8,069,967		2,678,577		746,831		(1,844,800	)
Reinvested capital gains		65,952		500,081		682,812		3,544,526		478,848		2,164,613		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		1,645,923		1,509,620		15,015,235		8,510,738		11,259,349		4,986,110		1,761,625		63,725


Equity transactions:
Purchase payments received from contract owners (note 3)		–		350		3,329,525		1,891,773		14,774,794		8,801,497		–		6,015,345
Transfers between funds		(1,113,159	)	(1,335,279	)	4,941,760		19,706,774		7,926,217		6,714,360		(4,277,122	)	(16,730,480	)
Redemptions (note 3)		(506,360	)	(369,359	)	(8,303,770	)	(5,112,847	)	(2,967,609	)	(1,094,694	)	(1,854,597	)	(1,527,318	)
Annuity benefits		–		–		(1,496	)	(1,232	)	(6,611	)	–		(281	)	(887	)
Annual contract maintenance charges (note 2)		(915	)	(1,027	)	(22,802	)	(12,657	)	(3,866	)	(1,787	)	(2,185	)	(2,844	)
Contingent deferred sales charges (note 2)		(11,482	)	(6,289	)	(24,895	)	(18,405	)	(59,567	)	(31,408	)	(22,367	)	(26,899	)
Adjustments to maintain reserves		(297	)	(251	)	(82	)	(4,692	)	(2,407	)	(1,215	)	(1,005	)	(1,284	)

Net equity transactions		(1,632,213	)	(1,711,855	)	(81,760	)	16,448,714		19,660,951		14,386,753		(6,157,557	)	(12,274,367	)


Net change in contract owners’ equity		13,710		(202,235	)	14,933,475		24,959,452		30,920,300		19,372,863		(4,395,932	)	(12,210,642	)
Contract owners’ equity beginning of period		5,880,895		6,083,130		45,262,482		20,303,030		27,469,297		8,096,434		23,865,598		36,076,240

Contract owners’ equity end of period	$	5,894,605		5,880,895		60,195,957		45,262,482		58,389,597		27,469,297		19,469,666		23,865,598


CHANGES IN UNITS:
Beginning units		229,328		308,910		2,370,880		1,392,714		1,795,459		690,336		1,835,081		2,793,276

Units purchased		–		670		1,494,399		1,692,588		2,503,331		1,505,826		180		1,094,480
Units redeemed		(58,223	)	(80,252	)	(1,527,477	)	(714,422	)	(1,459,278	)	(400,703	)	(464,828	)	(2,052,675	)

Ending units		171,105		229,328		2,337,802		2,370,880		2,839,512		1,795,459		1,370,433		1,835,081

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITFHiInc3					GVITIntIdx8			GVITGlFin2				GVITGlFin3
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	1,428,713		617,486		11,339		–	2,876		4,558		31,213		14,459
Realized gain (loss) on investments		(32,145	)	69,009		(2,622	)	–	12,327		7,008		346,519		33,330
Change in unrealized gain (loss) on investments		696,626		(324,625	)	281,992		–	68,123		(32,580	)	(133,123	)	(215,818	)
Reinvested capital gains		–		–		–		–	213,065		161,050		490,190		332,913

Net increase (decrease) in contract owners’ equity resulting from operations		2,093,194		361,870		290,709		–	296,391		140,036		734,799		164,884


Equity transactions:
Purchase payments received from contract owners (note 3)		7,997,819		6,850,137		1,270,219		–	–		–		95,604		86,735
Transfers between funds		4,985,035		10,532,098		2,247,638		–	(55,075	)	(260,666	)	637,802		(1,645,979	)
Redemptions (note 3)		(1,599,639	)	(510,450	)	(44,157	)	–	(61,287	)	(70,671	)	(873,043	)	(648,781	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(1,502	)	(290	)	(92	)	–	(218	)	(259	)	(1,214	)	(1,294	)
Contingent deferred sales charges (note 2)		(15,599	)	(6,443	)	(122	)	–	(1,015	)	(2,588	)	(1,292	)	(1,477	)
Adjustments to maintain reserves		(1,099	)	(392	)	(28,680	)	–	(189	)	(129	)	(41	)	(81	)

Net equity transactions		11,365,015		16,864,660		3,444,806		–	(117,784	)	(334,313	)	(142,184	)	(2,210,877	)


Net change in contract owners’ equity		13,458,209		17,226,530		3,735,515		–	178,607		(194,277	)	592,615		(2,045,993	)
Contract owners’ equity beginning of period		17,226,530		–		–		–	1,683,814		1,878,091		3,701,998		5,747,991

Contract owners’ equity end of period	$	30,684,739		17,226,530		3,735,515		–	1,862,421		1,683,814		4,294,613		3,701,998


CHANGES IN UNITS:
Beginning units		1,650,804		–		–		–	91,491		111,302		235,707		401,465

Units purchased		1,916,708		2,286,471		369,007		–	–		–		242,330		130,161
Units redeemed		(869,729	)	(635,667	)	(24,284	)	–	(6,043	)	(19,811	)	(247,855	)	(295,919	)

Ending units		2,697,783		1,650,804		344,723		–	85,448		91,491		230,182		235,707

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITGlHlth2					GVITGlHlth3				GVITGlHlth6				GVITGlTech
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(35,788	)	(42,450	)	(107,695	)	(121,437	)	(170,948	)	(122,451	)	(6,258	)	(8,206	)
Realized gain (loss) on investments		2,952		45,412		25,945		117,185		70,205		121,941		29,463		(327	)
Change in unrealized gain (loss) on investments		52,114		(117,330	)	168,338		(324,678	)	160,341		(562,532	)	22,766		(25,053	)
Reinvested capital gains		–		290,661		–		990,398		–		1,070,723		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		19,278		176,293		86,588		661,468		59,598		507,681		45,971		(33,586	)


Equity transactions:
Purchase payments received from contract owners (note 3)		–		2,118		620,627		601,310		3,283,412		3,447,159		–		–
Transfers between funds		(181,867	)	(603,797	)	(529,186	)	758,209		(745,580	)	1,813,584		(29,613	)	(74,817	)
Redemptions (note 3)		(105,254	)	(200,933	)	(1,880,684	)	(2,292,797	)	(693,762	)	(457,155	)	(190,860	)	(110,761	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(350	)	(495	)	(3,320	)	(3,834	)	(952	)	(789	)	(578	)	(628	)
Contingent deferred sales charges (note 2)		(2,278	)	(11,535	)	(5,412	)	(8,844	)	(14,240	)	(9,881	)	(1,035	)	(277	)
Adjustments to maintain reserves		(259	)	(219	)	(121	)	(48	)	(804	)	(701	)	(60	)	(2	)

Net equity transactions		(290,008	)	(814,861	)	(1,798,096	)	(946,004	)	1,828,074		4,792,217		(222,146	)	(186,485	)


Net change in contract owners’ equity		(270,730	)	(638,568	)	(1,711,508	)	(284,536	)	1,887,672		5,299,898		(176,175	)	(220,071	)
Contract owners’ equity beginning of period		2,566,533		3,205,101		8,666,245		8,950,781		10,290,290		4,990,392		613,233		833,304

Contract owners’ equity end of period	$	2,295,803		2,566,533		6,954,737		8,666,245		12,177,962		10,290,290		437,058		613,233


CHANGES IN UNITS:
Beginning units		164,699		219,080		681,589		753,248		981,490		506,914		206,846		275,982

Units purchased		–		373		262,329		416,372		665,901		765,468		–		6
Units redeemed		(18,675	)	(54,754	)	(404,259	)	(488,031	)	(496,821	)	(290,892	)	(72,497	)	(69,142	)

Ending units		146,024		164,699		539,659		681,589		1,150,570		981,490		134,349		206,846

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITGlTech2					GVITGlTech3				GVITGlTech6				GVITGlUtl2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(21,535	)	(25,651	)	(59,990	)	(64,464	)	(71,534	)	(42,899	)	7,115		2,265
Realized gain (loss) on investments		(11,635	)	(153,994	)	165,592		(462,329	)	359,700		19,038		37,973		62,194
Change in unrealized gain (loss) on investments		151,730		49,654		365,081		273,599		194,784		1,513		186,942		(146,713	)
Reinvested capital gains		–		–		–		–		–		–		59,551		127,171

Net increase (decrease) in contract owners’ equity resulting from operations		118,560		(129,991	)	470,683		(253,194	)	482,950		(22,348	)	291,581		44,917


Equity transactions:
Purchase payments received from contract owners (note 3)		–		634		349,434		360,487		1,857,190		1,190,478		–		–
Transfers between funds		(137,180	)	(633,094	)	1,570,813		(1,213,508	)	1,331,951		(190,482	)	(97,382	)	(153,616	)
Redemptions (note 3)		(111,033	)	(67,185	)	(705,994	)	(913,030	)	(202,330	)	(132,683	)	(43,118	)	(53,046	)
Annuity benefits		–		–		(1,381	)	(957	)	–		–		–		–
Annual contract maintenance charges (note 2)		(398	)	(493	)	(2,261	)	(2,827	)	(583	)	(358	)	(121	)	(139	)
Contingent deferred sales charges (note 2)		(4,473	)	(1,424	)	(3,717	)	(7,557	)	(4,692	)	(1,174	)	(163	)	(1,919	)
Adjustments to maintain reserves		(172	)	(369	)	94		1,374		(561	)	(958	)	(127	)	(98	)

Net equity transactions		(253,256	)	(701,931	)	1,206,988		(1,776,018	)	2,980,975		864,823		(140,911	)	(208,818	)


Net change in contract owners’ equity		(134,696	)	(831,922	)	1,677,671		(2,029,212	)	3,463,925		842,475		150,670		(163,901	)
Contract owners’ equity beginning of period		1,576,432		2,408,354		4,430,603		6,459,815		3,556,148		2,713,673		902,655		1,066,556

Contract owners’ equity end of period	$	1,441,736		1,576,432		6,108,274		4,430,603		7,020,073		3,556,148		1,053,325		902,655


CHANGES IN UNITS:
Beginning units		103,102		153,937		399,751		575,407		335,200		250,218		54,377		67,201

Units purchased		–		70		335,297		293,468		601,389		259,368		–		–
Units redeemed		(16,622	)	(50,905	)	(231,616	)	(469,124	)	(330,144	)	(174,386	)	(7,419	)	(12,824	)

Ending units		86,480		103,102		503,432		399,751		606,445		335,200		46,958		54,377

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITGlUtl3					GVITGvtBd				GVITGrowth				GVITIntGro
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	134,124		52,084		8,699,126		6,426,449		(830,698	)	(953,153	)	(243	)	(390	)
Realized gain (loss) on investments		52,901		752,229		(673,942	)	(1,038,940	)	941,290		(1,376,619	)	22,139		1,253
Change in unrealized gain (loss) on investments		1,883,876		(1,321,867	)	(3,973,773	)	(751,941	)	2,781,955		5,877,457		15,066		31,569
Reinvested capital gains		715,316		943,328		2,306,840		490,924		–		–		274		326

Net increase (decrease) in contract owners’ equity resulting from operations		2,786,217		425,774		6,358,251		5,126,492		2,892,547		3,547,685		37,236		32,758


Equity transactions:
Purchase payments received from contract owners (note 3)		357,288		273,357		73,097,809		28,859,103		2,971,715		3,295,591		–		–
Transfers between funds		5,322,638		(7,928	)	54,195,192		12,171,476		(3,799,816	)	(4,551,367	)	(20,218	)	(622	)
Redemptions (note 3)		(1,172,715	)	(2,225,073	)	(47,080,601	)	(55,657,285	)	(12,585,566	)	(15,406,386	)	(29,716	)	(1,913	)
Annuity benefits		–		–		(21,307	)	(68,304	)	(17,445	)	(22,988	)	–		–
Annual contract maintenance charges (note 2)		(2,449	)	(2,522	)	(99,415	)	(118,276	)	(62,487	)	(75,762	)	(106	)	(91	)
Contingent deferred sales charges (note 2)		(3,016	)	(4,174	)	(209,810	)	(249,818	)	(43,615	)	(68,243	)	(312	)	(44	)
Adjustments to maintain reserves		67		(81	)	(10,305	)	670		(216	)	396		19		68

Net equity transactions		4,501,813		(1,966,421	)	79,871,563		(15,062,434	)	(13,537,430	)	(16,828,759	)	(50,333	)	(2,602	)


Net change in contract owners’ equity		7,288,030		(1,540,647	)	86,229,814		(9,935,942	)	(10,644,883	)	(13,281,074	)	(13,097	)	30,156
Contract owners’ equity beginning of period		6,284,975		7,825,622		278,089,416		288,025,358		72,155,294		85,436,368		146,183		116,027

Contract owners’ equity end of period	$	13,573,005		6,284,975		364,319,230		278,089,416		61,510,411		72,155,294		133,086		146,183


CHANGES IN UNITS:
Beginning units		442,364		578,802		14,001,716		13,067,914		4,490,233		5,607,355		15,486		15,800

Units purchased		502,358		390,356		14,999,105		5,524,040		285,539		330,122		–		–
Units redeemed		(241,286	)	(526,794	)	(4,958,040	)	(4,590,238	)	(1,138,541	)	(1,447,244	)	(4,751	)	(314	)

Ending units		703,436		442,364		24,042,781		14,001,716		3,637,231		4,490,233		10,735		15,486

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITIntGro3					GVITIDAgg2				GVITIDCon2				GVITIDMod2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(44,204	)	(18,110	)	381,833		405,279		1,860,620		1,383,292		10,925,796		5,496,477
Realized gain (loss) on investments		1,856,794		326,177		3,845,241		341,025		69,234		448,982		317,893		1,918,501
Change in unrealized gain (loss) on investments		3,966,647		1,661,605		58,943,272		17,114,788		2,473,142		(2,415,789	)	101,238,121		8,746,714
Reinvested capital gains		54,145		28,253		7,436,693		7,759,032		1,213,194		2,550,231		11,652,856		12,933,987

Net increase (decrease) in contract owners’ equity resulting from operations		5,833,382		1,997,925		70,607,039		25,620,124		5,616,190		1,966,716		124,134,666		29,095,679


Equity transactions:
Purchase payments received from contract owners (note 3)		1,476,108		527,101		27,501,521		140,003,314		21,065,403		33,911,585		268,499,614		258,377,964
Transfers between funds		11,583,355		7,324,401		49,366,825		83,352,646		2,424,274		781,660		516,352,050		181,997,336
Redemptions (note 3)		(4,081,080	)	(1,177,450	)	(28,392,596	)	(21,795,812	)	(12,039,404	)	(15,158,240	)	(70,491,786	)	(59,999,962	)
Annuity benefits		(4,768	)	(3,577	)	–		–		(1,129	)	(755	)	(3,604	)	(3,447	)
Annual contract maintenance charges (note 2)		(7,094	)	(1,713	)	(68,737	)	(41,324	)	(19,674	)	(16,854	)	(143,729	)	(96,466	)
Contingent deferred sales charges (note 2)		(7,627	)	(1,761	)	(630,525	)	(361,117	)	(140,969	)	(224,195	)	(1,310,904	)	(980,473	)
Adjustments to maintain reserves		(82	)	29		(49,664	)	(29,295	)	(15,611	)	(5,440	)	(80,337	)	(43,193	)

Net equity transactions		8,958,812		6,667,030		47,726,824		201,128,412		11,272,890		19,287,761		712,821,304		379,251,759


Net change in contract owners’ equity		14,792,194		8,664,955		118,333,863		226,748,536		16,889,080		21,254,477		836,955,970		408,347,438
Contract owners’ equity beginning of period		12,751,388		4,086,433		456,283,327		229,534,791		119,050,569		97,796,092		912,014,965		503,667,527

Contract owners’ equity end of period	$	27,543,582		12,751,388		574,617,190		456,283,327		135,939,649		119,050,569		1,748,970,935		912,014,965


CHANGES IN UNITS:
Beginning units		847,716		348,335		28,651,809		15,370,206		10,630,963		8,879,736		68,034,438		39,171,967

Units purchased		1,226,515		736,675		5,539,116		16,852,360		3,383,088		4,846,234		61,702,900		38,670,877
Units redeemed		(678,161	)	(237,294	)	(2,714,100	)	(3,570,757	)	(2,386,799	)	(3,095,007	)	(10,652,798	)	(9,808,406	)

Ending units		1,396,070		847,716		31,476,825		28,651,809		11,627,252		10,630,963		119,084,540		68,034,438

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITIDModAg2					GVITIDModCon2				GVITJPBal				GVITMdCpGr
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	6,303,225		2,956,996		3,602,031		2,446,272		32,008		15,683		(224,180	)	(195,360	)
Realized gain (loss) on investments		–		683,390		1,079,688		1,428,287		55,011		35,075		1,843,288		1,333,238
Change in unrealized gain (loss) on investments		112,420,043		20,443,897		11,181,551		(1,190,726	)	232,402		(9,376	)	(520,547	)	(76,143	)
Reinvested capital gains		13,219,199		14,253,753		4,003,100		4,297,554		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		131,942,467		38,338,036		19,866,370		6,981,387		319,421		41,382		1,098,561		1,061,735


Equity transactions:
Purchase payments received from contract owners (note 3)		274,037,698		252,670,900		70,807,465		86,010,910		535,576		472,485		1,064,638		1,011,377
Transfers between funds		261,272,788		146,985,637		18,720,329		16,080,177		674,303		1,638,873		1,563,658		2,001,803
Redemptions (note 3)		(57,602,549	)	(38,251,668	)	(24,422,263	)	(18,091,468	)	(597,857	)	(529,804	)	(3,677,358	)	(3,071,893	)
Annuity benefits		(11,398	)	–		(3,921	)	(3,853	)	–		–		(3,549	)	(2,926	)
Annual contract maintenance charges (note 2)		(146,753	)	(91,862	)	(40,304	)	(30,457	)	(2,281	)	(1,021	)	(7,556	)	(7,022	)
Contingent deferred sales charges (note 2)		(1,182,162	)	(714,710	)	(370,854	)	(255,627	)	(2,373	)	(1,033	)	(16,364	)	(16,473	)
Adjustments to maintain reserves		(78,392	)	(38,322	)	(15,894	)	(9,891	)	(54	)	(16	)	(11	)	1,352

Net equity transactions		476,289,232		360,559,975		64,674,558		83,699,791		607,314		1,579,484		(1,076,542	)	(83,782	)


Net change in contract owners’ equity		608,231,699		398,898,011		84,540,928		90,681,178		926,735		1,620,866		22,019		977,953
Contract owners’ equity beginning of period		803,417,643		404,519,632		262,304,769		171,623,591		2,499,509		878,643		15,975,241		14,997,288

Contract owners’ equity end of period	$	1,411,649,342		803,417,643		346,845,697		262,304,769		3,426,244		2,499,509		15,997,260		15,975,241


CHANGES IN UNITS:
Beginning units		54,186,761		28,932,284		21,337,805		14,377,462		230,571		82,004		2,707,801		2,756,609

Units purchased		36,571,329		31,664,782		9,117,637		10,813,205		161,993		228,081		1,613,539		1,697,977
Units redeemed		(6,423,172	)	(6,410,305	)	(4,045,390	)	(3,852,862	)	(107,265	)	(79,514	)	(1,821,150	)	(1,746,785	)

Ending units		84,334,918		54,186,761		26,410,052		21,337,805		285,299		230,571		2,500,190		2,707,801

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITMdCpGr2					GVITMidCap				GVITMyMkt				GVITNWFund
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,140,485	)	(275,263	)	(402,808	)	(452,789	)	14,080,476		5,344,029		(900,270	)	(1,659,469	)
Realized gain (loss) on investments		1,058,166		402,055		8,533,333		6,249,012		–		–		3,777,202		(23,817,799	)
Change in unrealized gain (loss) on investments		4,818,675		1,281,014		990,681		(1,219,258	)	–		–		35,463,167		46,732,128
Reinvested capital gains		–		–		1,920,558		8,011,102		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		4,736,356		1,407,806		11,041,764		12,588,067		14,080,476		5,344,029		38,340,099		21,254,860


Equity transactions:
Purchase payments received from contract owners (note 3)		49,468,275		7,486,173		13,564,664		15,561,233		1,946,960,948		818,744,795		8,184,451		8,964,524
Transfers between funds		46,467,990		4,394,160		(13,242,891	)	8,097,404		(1,602,166,828	)	(479,523,487	)	(10,983,201	)	(10,189,911	)
Redemptions (note 3)		(2,520,189	)	(766,749	)	(19,412,357	)	(19,834,199	)	(307,048,324	)	(342,824,957	)	(64,185,616	)	(69,995,898	)
Annuity benefits		–		–		(6,495	)	(6,136	)	(87,586	)	(31,611	)	(137,383	)	(150,880	)
Annual contract maintenance charges (note 2)		(3,673	)	(1,935	)	(38,888	)	(39,673	)	(175,928	)	(198,222	)	(224,424	)	(261,690	)
Contingent deferred sales charges (note 2)		(47,060	)	(23,857	)	(91,578	)	(93,109	)	(777,723	)	(730,597	)	(129,698	)	(185,420	)
Adjustments to maintain reserves		(5,986	)	(1,223	)	(4,034	)	524		(28,746	)	(60,834	)	50,388		29,852

Net equity transactions		93,359,357		11,086,569		(19,231,579	)	3,686,044		36,675,813		(4,624,913	)	(67,425,483	)	(71,789,423	)


Net change in contract owners’ equity		98,095,713		12,494,375		(8,189,815	)	16,274,111		50,756,289		719,116		(29,085,384	)	(50,534,563	)
Contract owners’ equity beginning of period		26,824,934		14,330,559		140,721,564		124,447,453		403,697,145		402,978,029		360,020,179		410,554,742

Contract owners’ equity end of period	$	124,920,647		26,824,934		132,531,749		140,721,564		454,453,434		403,697,145		330,934,795		360,020,179


CHANGES IN UNITS:
Beginning units		1,755,225		1,007,022		9,202,373		9,133,807		25,994,392		24,692,825		7,471,589		9,363,974

Units purchased		6,860,825		1,245,022		2,298,238		3,785,092		252,444,112		126,208,674		151,642		191,470
Units redeemed		(1,024,589	)	(496,819	)	(3,578,487	)	(3,716,526	)	(247,855,744	)	(124,907,107	)	(1,742,153	)	(2,083,855	)

Ending units		7,591,461		1,755,225		7,922,124		9,202,373		30,582,760		25,994,392		5,881,078		7,471,589

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITNWFund2					GVITNWLead3				GVITSmCapGr				GVITSmCapGr2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(561,638	)	(69,993	)	(24,431	)	3,945		(181,940	)	(196,905	)	(218,402	)	(160,432	)
Realized gain (loss) on investments		360,782		155,719		10,938		140,640		1,187,025		1,191,550		1,003,962		440,802
Change in unrealized gain (loss) on investments		12,774,959		578,604		253,006		(382,158	)	(854,143	)	(238,235	)	(702,491	)	432,050
Reinvested capital gains		–		–		464,598		630,685		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		12,574,103		664,330		704,111		393,112		150,942		756,410		83,069		712,420


Equity transactions:
Purchase payments received from contract owners (note 3)		76,697,905		5,557,642		271,660		238,461		949,530		1,109,590		3,066,569		3,473,412
Transfers between funds		76,994,621		7,832,203		1,394,714		2,966,131		(594,869	)	(1,455,010	)	(1,324,397	)	349,809
Redemptions (note 3)		(3,100,402	)	(474,730	)	(493,389	)	(485,004	)	(3,379,273	)	(2,829,464	)	(910,847	)	(725,319	)
Annuity benefits		–		–		–		–		(2,606	)	(2,484	)	–		–
Annual contract maintenance charges (note 2)		(4,295	)	(2,303	)	(1,629	)	(1,116	)	(6,722	)	(7,376	)	(1,636	)	(1,285	)
Contingent deferred sales charges (note 2)		(65,155	)	(9,190	)	(1,917	)	(843	)	(15,915	)	(12,286	)	(14,212	)	(20,992	)
Adjustments to maintain reserves		(6,936	)	(789	)	(51	)	(16	)	(234	)	318		(1,117	)	(604	)

Net equity transactions		150,515,738		12,902,833		1,169,388		2,717,613		(3,050,089	)	(3,196,712	)	814,360		3,075,021


Net change in contract owners’ equity		163,089,841		13,567,163		1,873,499		3,110,725		(2,899,147	)	(2,440,302	)	897,429		3,787,441
Contract owners’ equity beginning of period		22,317,067		8,749,904		4,438,380		1,327,655		14,805,764		17,246,066		13,450,257		9,662,816

Contract owners’ equity end of period	$	185,406,908		22,317,067		6,311,879		4,438,380		11,906,617		14,805,764		14,347,686		13,450,257


CHANGES IN UNITS:
Beginning units		1,503,114		618,825		335,241		109,158		2,005,492		2,492,775		833,849		638,942

Units purchased		10,450,470		1,026,556		186,007		343,220		841,889		1,643,831		417,854		571,089
Units redeemed		(696,129	)	(142,267	)	(105,140	)	(117,137	)	(1,264,695	)	(2,131,114	)	(377,006	)	(376,182	)

Ending units		11,257,455		1,503,114		416,108		335,241		1,582,686		2,005,492		874,697		833,849

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITSmCapVal					GVITSmCapVal2				GVITSmComp				GVITSmComp2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,012,039	)	(1,650,057	)	(452,154	)	(478,342	)	(2,483,509	)	(2,795,321	)	(1,180,343	)	(692,603	)
Realized gain (loss) on investments		11,380,576		15,382,979		51,737		953,417		9,212,234		10,785,427		1,076,863		119,432
Change in unrealized gain (loss) on investments		(2,306,247	)	(26,658,379	)	2,138,486		(3,760,659	)	9,058,885		(11,597,826	)	6,709,173		(1,598,665	)
Reinvested capital gains		8,136,289		13,846,743		3,221,609		3,862,455		3,872,440		24,605,496		1,403,336		7,090,732

Net increase (decrease) in contract owners’ equity resulting from operations		16,198,579		921,286		4,959,678		576,871		19,660,050		20,997,776		8,009,029		4,918,896


Equity transactions:
Purchase payments received from contract owners (note 3)		4,432,293		5,429,470		5,893,578		8,159,143		6,730,047		6,666,580		28,665,604		16,140,864
Transfers between funds		(11,004,070	)	(14,979,259	)	1,761,986		(3,779,362	)	(6,084,503	)	(1,868,361	)	(368,655	)	7,183,180
Redemptions (note 3)		(21,213,260	)	(24,624,827	)	(2,600,441	)	(1,850,069	)	(37,978,294	)	(40,224,005	)	(3,371,781	)	(1,980,034	)
Annuity benefits		(14,091	)	(27,755	)	(312	)	(904	)	(31,136	)	(50,912	)	–		–
Annual contract maintenance charges (note 2)		(47,718	)	(59,805	)	(4,977	)	(4,784	)	(88,203	)	(97,684	)	(6,191	)	(4,388	)
Contingent deferred sales charges (note 2)		(65,014	)	(92,191	)	(36,213	)	(43,095	)	(92,058	)	(114,668	)	(71,738	)	(31,906	)
Adjustments to maintain reserves		(145	)	(15,036	)	(1,914	)	(1,215	)	(998	)	(3,365	)	(5,252	)	(1,893	)

Net equity transactions		(27,912,005	)	(34,369,403	)	5,011,707		2,479,714		(37,545,145	)	(35,692,415	)	24,841,987		21,305,823


Net change in contract owners’ equity		(11,713,426	)	(33,448,117	)	9,971,385		3,056,585		(17,885,095	)	(14,694,639	)	32,851,016		26,224,719
Contract owners’ equity beginning of period		117,422,322		150,870,439		33,134,155		30,077,570		207,232,706		221,927,345		61,689,901		35,465,182

Contract owners’ equity end of period	$	105,708,896		117,422,322		43,105,540		33,134,155		189,347,611		207,232,706		94,540,917		61,689,901


CHANGES IN UNITS:
Beginning units		5,997,704		7,841,197		1,711,970		1,569,325		6,249,268		7,419,392		3,282,029		2,079,601

Units purchased		905,209		1,162,647		873,513		976,893		648,552		782,644		3,618,874		1,957,050
Units redeemed		(2,240,501	)	(3,006,140	)	(654,032	)	(834,248	)	(1,735,125	)	(1,952,768	)	(2,317,328	)	(754,622	)

Ending units		4,662,412		5,997,704		1,931,451		1,711,970		5,162,695		6,249,268		4,583,575		3,282,029

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITUSGro2					GVITUSGro3				GVITVKVal2				GVITMltSec
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(308,857	)	(228,670	)	(95,389	)	(114,688	)	(92,332	)	(72,035	)	1,487,067		1,246,190
Realized gain (loss) on investments		(231,788	)	16,172		(188,722	)	304,537		2,336,285		715,628		228,190		191,325
Change in unrealized gain (loss) on investments		(445,004	)	(1,104,517	)	(61,412	)	(930,020	)	8,530,868		(750,276	)	26,694		(1,359,007	)
Reinvested capital gains		373,442		2,858,981		145,945		1,572,012		6,927,464		1,505,629		128,444		294,042

Net increase (decrease) in contract owners’ equity resulting from operations		(612,207	)	1,541,966		(199,578	)	831,841		17,702,285		1,398,946		1,870,395		372,550


Equity transactions:
Purchase payments received from contract owners (note 3)		4,476,889		5,319,272		373,455		297,266		76,090,384		17,776,826		7,742,440		12,509,139
Transfers between funds		(1,728,763	)	2,252,617		(1,249,850	)	1,335,483		55,080,591		10,970,489		147,429		8,063,088
Redemptions (note 3)		(1,376,050	)	(638,951	)	(1,994,452	)	(1,527,151	)	(5,880,826	)	(3,925,331	)	(7,455,515	)	(7,386,272	)
Annuity benefits		–		–		(665	)	(317	)	(311	)	(733	)	(5,159	)	(5,809	)
Annual contract maintenance charges (note 2)		(1,790	)	(1,467	)	(2,958	)	(2,991	)	(7,560	)	(4,728	)	(9,424	)	(9,236	)
Contingent deferred sales charges (note 2)		(36,174	)	(13,167	)	(6,618	)	(3,461	)	(72,327	)	(39,020	)	(37,390	)	(31,283	)
Adjustments to maintain reserves		(1,960	)	(1,095	)	(102	)	316		(8,942	)	(2,293	)	(1,809	)	(1,347	)

Net equity transactions		1,332,152		6,917,209		(2,881,190	)	99,145		125,201,009		24,775,210		380,572		13,138,280


Net change in contract owners’ equity		719,945		8,459,175		(3,080,768	)	930,986		142,903,294		26,174,156		2,250,967		13,510,830
Contract owners’ equity beginning of period		19,056,867		10,597,692		9,821,567		8,890,581		60,367,741		34,193,585		54,190,306		40,679,476

Contract owners’ equity end of period	$	19,776,812		19,056,867		6,740,799		9,821,567		203,271,035		60,367,741		56,441,273		54,190,306


CHANGES IN UNITS:
Beginning units		1,053,974		643,867		651,383		652,165		3,772,570		2,181,509		4,431,813		3,294,635

Units purchased		489,605		608,915		144,668		267,442		9,773,517		2,437,010		1,682,882		2,333,284
Units redeemed		(425,907	)	(198,808	)	(341,876	)	(268,224	)	(2,330,966	)	(845,949	)	(1,623,567	)	(1,196,106	)

Ending units		1,117,672		1,053,974		454,175		651,383		11,215,121		3,772,570		4,491,128		4,431,813

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	GVITWLead3					JanBal				JanForty				JanGlTechS2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(17,225	)	(9,850	)	59,167		55,794		(432,479	)	(526,406	)	(66,294	)	(67,651	)
Realized gain (loss) on investments		209,829		106,201		372,140		121,705		3,908,136		3,406,748		279,686		386,181
Change in unrealized gain (loss) on investments		748,485		179,533		653,537		430,531		(839,430	)	1,174,558		84,356		104,753
Reinvested capital gains		–		–		–		–		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		941,089		275,884		1,084,844		608,030		2,636,227		4,054,900		297,748		423,283


Equity transactions:
Purchase payments received from contract owners (note 3)		306,128		184,205		1,166,854		452,377		2,738,972		1,802,796		704,322		691,744
Transfers between funds		2,964,778		2,547,903		892,114		(861,360	)	(2,597,043	)	616,724		(371,140	)	(1,189,235	)
Redemptions (note 3)		(700,983	)	(241,770	)	(1,375,174	)	(482,476	)	(5,948,217	)	(6,060,308	)	(925,926	)	(901,578	)
Annuity benefits		–		–		–		–		(939	)	(1,317	)	–		–
Annual contract maintenance charges (note 2)		(1,195	)	(309	)	(1,177	)	(1,281	)	(17,134	)	(20,795	)	(3,300	)	(3,749	)
Contingent deferred sales charges (note 2)		(600	)	(520	)	(11,060	)	(10,348	)	(29,737	)	(37,577	)	(8,423	)	(12,840	)
Adjustments to maintain reserves		–		(24	)	(705	)	(662	)	(744	)	(681	)	(99	)	(192	)

Net equity transactions		2,568,128		2,489,485		670,852		(903,750	)	(5,854,842	)	(3,701,158	)	(604,566	)	(1,415,850	)


Net change in contract owners’ equity		3,509,217		2,765,369		1,755,696		(295,720	)	(3,218,615	)	353,742		(306,818	)	(992,567	)
Contract owners’ equity beginning of period		2,992,804		227,435		11,543,065		11,838,785		39,250,610		38,896,868		5,242,415		6,234,982

Contract owners’ equity end of period	$	6,502,021		2,992,804		13,298,761		11,543,065		36,031,995		39,250,610		4,935,597		5,242,415


CHANGES IN UNITS:
Beginning units		219,580		19,645		889,457		965,605		4,486,139		5,056,803		465,574		608,518

Units purchased		294,687		293,837		249,466		101,912		766,280		1,297,272		138,033		140,302
Units redeemed		(130,001	)	(93,902	)	(191,962	)	(178,060	)	(1,536,503	)	(1,867,936	)	(192,248	)	(283,246	)

Ending units		384,266		219,580		946,961		889,457		3,715,916		4,486,139		411,359		465,574

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	JanGlTech					JanRMgCore				JanIntGroS2				JanIntGro
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(59,567	)	(73,974	)	(63,523	)	(4,541	)	636,136		(11,133	)	69,430		(43,018	)
Realized gain (loss) on investments		74,610		(210,774	)	(221,878	)	23,950		2,932,889		1,312,563		1,494,254		577,650
Change in unrealized gain (loss) on investments		246,774		717,231		74,125		(241,261	)	21,141,732		3,512,493		3,977,242		2,912,546
Reinvested capital gains		–		–		307,433		441,302		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		261,817		432,483		96,157		219,450		24,710,757		4,813,923		5,540,926		3,447,178


Equity transactions:
Purchase payments received from contract owners (note 3)		98		5,563		95,827		90,055		19,674,122		1,683,968		13		1,255
Transfers between funds		(635,708	)	(979,767	)	1,207,980		572,484		69,068,624		10,047,332		(1,320,715	)	(1,339,668	)
Redemptions (note 3)		(813,006	)	(1,090,369	)	(205,058	)	(152,928	)	(7,517,205	)	(2,583,771	)	(2,036,913	)	(2,083,396	)
Annuity benefits		(409	)	(276	)	–		–		(160	)	(113	)	–		(3,049	)
Annual contract maintenance charges (note 2)		(3,499	)	(4,596	)	(295	)	(348	)	(13,185	)	(7,002	)	(7,038	)	(7,375	)
Contingent deferred sales charges (note 2)		(2,857	)	(6,465	)	(3,869	)	(3,636	)	(36,506	)	(18,799	)	(9,708	)	(12,778	)
Adjustments to maintain reserves		(75	)	345		(491	)	(148	)	(1,395	)	(307	)	(44	)	160

Net equity transactions		(1,455,456	)	(2,075,565	)	1,094,094		505,479		81,174,295		9,121,308		(3,374,405	)	(3,444,851	)


Net change in contract owners’ equity		(1,193,639	)	(1,643,082	)	1,190,251		724,929		105,885,052		13,935,231		2,166,521		2,327
Contract owners’ equity beginning of period		5,094,760		6,737,842		2,697,907		1,972,978		25,823,909		11,888,678		14,034,749		14,032,422

Contract owners’ equity end of period	$	3,901,121		5,094,760		3,888,158		2,697,907		131,708,961		25,823,909		16,201,270		14,034,749


CHANGES IN UNITS:
Beginning units		1,331,430		1,940,791		177,552		141,265		1,666,749		995,810		1,379,274		1,822,897

Units purchased		8		–		389,538		57,192		5,684,594		1,202,870		7		109
Units redeemed		(373,583	)	(609,361	)	(329,429	)	(20,905	)	(1,340,488	)	(531,931	)	(288,609	)	(443,732	)

Ending units		957,855		1,331,430		237,661		177,552		6,010,855		1,666,749		1,090,672		1,379,274

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	JPMSTMidCap					MFSInvGrStS				MFSValS				MTBLgCapGr2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(165,678	)	(287,370	)	(397,889	)	(331,679	)	(316,138	)	(213,467	)	(8,334	)	(8,062	)
Realized gain (loss) on investments		1,619,404		905,442		823,474		99,913		1,153,328		842,183		2,042		(1,247	)
Change in unrealized gain (loss) on investments		1,219,446		872,512		874,376		1,042,120		5,180,019		(51,873	)	80,899		1,220
Reinvested capital gains		568,468		306,583		–		–		1,062,420		539,475		10,927		21,505

Net increase (decrease) in contract owners’ equity resulting from operations		3,241,640		1,797,167		1,299,961		810,354		7,079,629		1,116,318		85,534		13,416


Equity transactions:
Purchase payments received from contract owners (note 3)		554,312		1,842,920		1,711,149		7,263,404		9,182,536		10,359,466		57,489		320,810
Transfers between funds		(9,239,451	)	19,917,909		(3,614,902	)	656,486		22,713,479		3,788,380		9,274		674
Redemptions (note 3)		(4,284,738	)	(4,535,042	)	(1,199,193	)	(856,335	)	(2,389,512	)	(1,395,721	)	(21,986	)	(16,951	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(9,021	)	(9,157	)	(1,935	)	(1,453	)	(2,607	)	(1,066	)	(178	)	(159	)
Contingent deferred sales charges (note 2)		(9,400	)	(14,610	)	(19,424	)	(15,280	)	(35,987	)	(32,869	)	(1,034	)	(975	)
Adjustments to maintain reserves		6,412		140		(2,064	)	(1,579	)	(1,892	)	(1,272	)	130		273

Net equity transactions		(12,981,886	)	17,202,160		(3,126,369	)	7,045,243		29,466,017		12,716,918		43,695		303,672


Net change in contract owners’ equity		(9,740,246	)	18,999,327		(1,826,408	)	7,855,597		36,545,646		13,833,236		129,229		317,088
Contract owners’ equity beginning of period		28,535,450		9,536,123		25,659,631		17,804,034		26,565,220		12,731,984		928,731		611,643

Contract owners’ equity end of period	$	18,795,204		28,535,450		23,833,223		25,659,631		63,110,866		26,565,220		1,057,960		928,731


CHANGES IN UNITS:
Beginning units		2,326,240		837,806		1,866,912		1,330,865		1,732,243		871,754		87,319		58,138

Units purchased		318,837		2,818,398		208,199		755,718		2,577,829		1,439,621		7,864		32,213
Units redeemed		(1,316,200	)	(1,329,964	)	(432,323	)	(219,671	)	(843,695	)	(579,132	)	(3,802	)	(3,032	)

Ending units		1,328,877		2,326,240		1,642,788		1,866,912		3,466,377		1,732,243		91,381		87,319

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	MTBLgCapV2					MTBAggGr2				MTBModGr2				MTBConGr2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(4,296	)	(4,457	)	4,136		186		1,414		380		93,712		11,992
Realized gain (loss) on investments		12,895		906		832		(581	)	32		6		18,718		(16,373	)
Change in unrealized gain (loss) on investments		76,080		31,924		17,228		1,585		1,046		(52	)	161,103		(283,276	)
Reinvested capital gains		96,192		60,470		8,607		–		1,188		–		412,969		496,030

Net increase (decrease) in contract owners’ equity resulting from operations		180,871		88,843		30,803		1,190		3,680		334		686,502		208,373


Equity transactions:
Purchase payments received from contract owners (note 3)		209,977		382,467		162,987		84,596		52,704		29,229		1,050,979		3,107,719
Transfers between funds		78,850		(598	)	20,515		35,442		8,742		8,140		(7,108	)	85,728
Redemptions (note 3)		(54,910	)	(11,304	)	(5,538	)	(670	)	(14,378	)	(341	)	(530,503	)	(339,490	)
Annuity benefits		–		–		–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(258	)	(131	)	–		–		(24	)	–		(2,264	)	(1,296	)
Contingent deferred sales charges (note 2)		(2,305	)	(209	)	–		–		(40	)	–		(10,505	)	(10,934	)
Adjustments to maintain reserves		103		(11	)	(24	)	1		–		(8	)	438		321

Net equity transactions		231,457		370,214		177,940		119,369		47,004		37,020		501,037		2,842,048


Net change in contract owners’ equity		412,328		459,057		208,743		120,559		50,684		37,354		1,187,539		3,050,421
Contract owners’ equity beginning of period		1,038,567		579,510		120,559		–		37,354		–		7,392,704		4,342,283

Contract owners’ equity end of period	$	1,450,895		1,038,567		329,302		120,559		88,038		37,354		8,580,243		7,392,704


CHANGES IN UNITS:
Beginning units		82,930		50,546		11,254		–		3,652		–		659,109		396,790

Units purchased		24,416		34,520		16,368		11,316		5,901		3,686		111,469		337,664
Units redeemed		(7,300	)	(2,136	)	(475	)	(62	)	(1,411	)	(34	)	(66,986	)	(75,345	)

Ending units		100,046		82,930		27,147		11,254		8,142		3,652		703,592		659,109

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	NBAMTFasc					NBAMTGro				NBAMTGuard				NBAMTInt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(92,270	)	(74,629	)	(1,967,492	)	(2,063,131	)	(131,356	)	(268,922	)	(862,488	)	(11,822	)
Realized gain (loss) on investments		67,033		47,594		10,129,317		(1,115,304	)	2,310,850		2,370,518		7,466		757
Change in unrealized gain (loss) on investments		83,801		108,893		9,405,193		20,393,604		(85,731	)	(739,926	)	14,735,128		285,005
Reinvested capital gains		155,936		24,817		–		–		–		–		1,031,768		39,739

Net increase (decrease) in contract owners’ equity resulting from operations		214,500		106,675		17,567,018		17,215,169		2,093,763		1,361,670		14,911,874		313,679


Equity transactions:
Purchase payments received from contract owners (note 3)		817,650		1,860,557		3,789,418		4,208,960		885,414		934,879		65,627,061		2,688,893
Transfers between funds		(26,948	)	(115,683	)	(8,108,009	)	(6,342,369	)	(1,468,153	)	(1,605,444	)	65,966,637		6,515,722
Redemptions (note 3)		(215,351	)	(235,068	)	(26,982,360	)	(26,922,854	)	(3,977,874	)	(5,510,725	)	(2,043,015	)	(39,089	)
Annuity benefits		–		–		(31,010	)	(31,972	)	(453	)	(984	)	–		–
Annual contract maintenance charges (note 2)		(525	)	(362	)	(91,783	)	(104,683	)	(9,911	)	(11,748	)	(1,629	)	(23	)
Contingent deferred sales charges (note 2)		(1,562	)	(3,794	)	(53,128	)	(95,190	)	(10,393	)	(19,047	)	(38,652	)	(273	)
Adjustments to maintain reserves		(575	)	(415	)	(1,406	)	4,324		(73	)	(113	)	49,416		(100	)

Net equity transactions		572,689		1,505,235		(31,478,278	)	(29,283,784	)	(4,581,443	)	(6,213,182	)	129,559,818		9,165,130


Net change in contract owners’ equity		787,189		1,611,910		(13,911,260	)	(12,068,615	)	(2,487,680	)	(4,851,512	)	144,471,692		9,478,809
Contract owners’ equity beginning of period		5,431,443		3,819,533		155,418,795		167,487,410		20,913,652		25,765,164		9,478,809		–

Contract owners’ equity end of period	$	6,218,632		5,431,443		141,507,535		155,418,795		18,425,972		20,913,652		153,950,501		9,478,809


CHANGES IN UNITS:
Beginning units		361,496		257,470		4,407,773		5,418,656		1,777,747		2,342,770		816,611		–

Units purchased		87,673		154,642		397,865		400,081		204,625		434,701		10,735,147		843,911
Units redeemed		(49,838	)	(50,616	)	(1,297,798	)	(1,410,964	)	(582,758	)	(999,724	)	(614,959	)	(27,300	)

Ending units		399,331		361,496		3,507,840		4,407,773		1,399,614		1,777,747		10,936,799		816,611

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	NBAMTLMat					NBAMTMCGrS				NBAMTPart				NBAMTRegS
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	3,659,110		1,655,697		(133,144	)	(124,071	)	(1,383,664	)	(836,393	)	(100,761	)	(15,112	)
Realized gain (loss) on investments		(274,376	)	(245,933	)	609,512		534,603		12,769,951		5,518,247		100,437		4,891
Change in unrealized gain (loss) on investments		992,362		(1,394,290	)	489,777		482,690		(13,120,113	)	27,897,515		38,281		128,294
Reinvested capital gains		–		–		–		–		22,688,477		47,846		506,998		–

Net increase (decrease) in contract owners’ equity resulting from operations		4,377,096		15,474		966,145		893,222		20,954,651		32,627,215		544,955		118,073


Equity transactions:
Purchase payments received from contract owners (note 3)		46,803,422		17,959,329		98,692		180,974		6,310,032		6,120,068		4,181,193		1,766,189
Transfers between funds		76,084,501		(4,563,103	)	357,248		(239,839	)	(8,858,499	)	21,493,047		9,716,525		2,131,504
Redemptions (note 3)		(18,523,875	)	(22,193,556	)	(359,652	)	(644,838	)	(38,223,914	)	(42,163,310	)	(295,940	)	(23,961	)
Annuity benefits		(66,877	)	(11,700	)	–		–		(34,171	)	(61,536	)	–		–
Annual contract maintenance charges (note 2)		(29,152	)	(32,581	)	(1,134	)	(1,145	)	(90,305	)	(97,829	)	(444	)	(25	)
Contingent deferred sales charges (note 2)		(115,073	)	(63,677	)	(7,596	)	(18,381	)	(79,166	)	(103,475	)	(1,731	)	(913	)
Adjustments to maintain reserves		(3,634	)	1,254		(383	)	(385	)	(1,282	)	(11,232	)	(814	)	(106	)

Net equity transactions		104,149,312		(8,904,034	)	87,175		(723,614	)	(40,977,305	)	(14,824,267	)	13,598,789		3,872,688


Net change in contract owners’ equity		108,526,408		(8,888,560	)	1,053,320		169,608		(20,022,654	)	17,802,948		14,143,744		3,990,761
Contract owners’ equity beginning of period		116,836,319		125,724,879		7,966,901		7,797,293		225,318,218		207,515,270		3,990,761		–

Contract owners’ equity end of period	$	225,362,727		116,836,319		9,020,221		7,966,901		205,295,564		225,318,218		18,134,505		3,990,761


CHANGES IN UNITS:
Beginning units		8,471,408		8,511,968		497,419		543,076		7,134,701		7,656,207		345,932		–

Units purchased		13,657,777		2,937,791		116,401		126,588		782,410		1,607,568		1,419,257		368,224
Units redeemed		(2,728,306	)	(2,978,351	)	(111,010	)	(172,245	)	(2,050,023	)	(2,129,074	)	(324,828	)	(22,292	)

Ending units		19,400,879		8,471,408		502,810		497,419		5,867,088		7,134,701		1,440,361		345,932

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	NBAMSocRes					OppGlSec3				OppGlSec4				OppBal
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,846,764	)	(277,427	)	(376,095	)	(302,622	)	(518,084	)	(409,727	)	1,250,830		757,006
Realized gain (loss) on investments		71,171		393,090		2,801,485		2,014,628		4,003,610		522,952		598,802		1,571,881
Change in unrealized gain (loss) on investments		17,863,233		1,002,264		8,444,284		9,820,004		4,355,053		7,460,487		3,992,333		(4,454,590	)
Reinvested capital gains		884,270		52,372		5,690,652		–		4,426,282		–		6,974,232		6,068,433

Net increase (decrease) in contract owners’ equity resulting from operations		16,971,910		1,170,299		16,560,326		11,532,010		12,266,861		7,573,712		12,816,197		3,942,730


Equity transactions:
Purchase payments received from contract owners (note 3)		92,995,135		9,720,405		13,087,967		13,706,619		24,720,041		26,099,813		4,019,104		4,960,047
Transfers between funds		92,986,867		11,466,212		8,819,694		11,503,678		(12,088,852	)	13,585,381		(6,688,744	)	1,250,086
Redemptions (note 3)		(3,912,510	)	(806,716	)	(17,366,251	)	(16,696,300	)	(3,810,335	)	(2,619,209	)	(27,377,382	)	(30,264,215	)
Annuity benefits		–		–		(14,436	)	(7,118	)	–		–		(18,390	)	(28,479	)
Annual contract maintenance charges (note 2)		(6,097	)	(2,456	)	(41,627	)	(36,339	)	(8,403	)	(4,509	)	(64,436	)	(77,477	)
Contingent deferred sales charges (note 2)		(73,800	)	(12,009	)	(71,652	)	(78,583	)	(75,695	)	(43,490	)	(51,060	)	(63,850	)
Adjustments to maintain reserves		(7,806	)	(1,436	)	(1,134	)	3,646		(3,614	)	(1,636	)	115		(1,825	)

Net equity transactions		181,981,789		20,364,000		4,412,561		8,395,603		8,733,142		37,016,350		(30,180,793	)	(24,225,713	)


Net change in contract owners’ equity		198,953,699		21,534,299		20,972,887		19,927,613		21,000,003		44,590,062		(17,364,596	)	(20,282,983	)
Contract owners’ equity beginning of period		33,095,968		11,561,669		100,293,179		80,365,566		73,470,008		28,879,946		155,219,888		175,502,871

Contract owners’ equity end of period	$	232,049,667		33,095,968		121,266,066		100,293,179		94,470,011		73,470,008		137,855,292		155,219,888


CHANGES IN UNITS:
Beginning units		2,318,131		851,027		5,308,749		4,802,654		5,674,152		2,505,064		5,647,775		6,601,220

Units purchased		13,198,217		1,989,434		1,580,530		2,038,186		2,760,014		4,081,037		247,586		469,127
Units redeemed		(948,746	)	(522,330	)	(1,364,633	)	(1,532,091	)	(2,129,774	)	(911,949	)	(1,371,481	)	(1,422,572	)

Ending units		14,567,602		2,318,131		5,524,646		5,308,749		6,304,392		5,674,152		4,523,880		5,647,775

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	OppCapAp					OppCapApS				OppBdFd				OppGlSec
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(1,022,239	)	(452,581	)	(869,374	)	(479,669	)	5,131,960		6,128,568		(820,559	)	(809,964	)
Realized gain (loss) on investments		10,711,325		11,795,293		891,357		697,608		(371,689	)	(418,700	)	32,888,573		28,460,950
Change in unrealized gain (loss) on investments		(3,008,832	)	(7,528,707	)	3,574,841		1,912,673		(297,292	)	(3,868,180	)	(4,020,288	)	9,143,589
Reinvested capital gains		–		–		–		–		–		–		16,748,798		–

Net increase (decrease) in contract owners’ equity resulting from operations		6,680,254		3,814,005		3,596,824		2,130,612		4,462,979		1,841,688		44,796,524		36,794,575


Equity transactions:
Purchase payments received from contract owners (note 3)		5,320,567		6,458,722		8,052,827		16,888,633		3,570,240		4,789,070		–		5,487
Transfers between funds		(10,663,821	)	(14,127,381	)	(4,793,449	)	630,576		(2,568,922	)	(2,811,009	)	(13,070,042	)	(12,940,443	)
Redemptions (note 3)		(23,301,131	)	(26,315,862	)	(3,747,086	)	(3,314,566	)	(24,748,251	)	(33,511,357	)	(53,302,671	)	(63,462,987	)
Annuity benefits		(27,271	)	(32,722	)	–		–		(12,493	)	(45,049	)	(43,850	)	(75,205	)
Annual contract maintenance charges (note 2)		(64,375	)	(79,349	)	(7,430	)	(6,733	)	(53,118	)	(66,040	)	(117,849	)	(135,881	)
Contingent deferred sales charges (note 2)		(79,686	)	(125,939	)	(74,432	)	(73,763	)	(46,595	)	(77,101	)	(85,997	)	(149,846	)
Adjustments to maintain reserves		(266	)	2,543		(3,984	)	(2,779	)	3,309		(22,007	)	4,272		(7,603	)

Net equity transactions		(28,815,983	)	(34,219,988	)	(573,554	)	14,121,368		(23,855,830	)	(31,743,493	)	(66,616,137	)	(76,766,478	)


Net change in contract owners’ equity		(22,135,729	)	(30,405,983	)	3,023,270		16,251,980		(19,392,851	)	(29,901,805	)	(21,819,613	)	(39,971,903	)
Contract owners’ equity beginning of period		121,773,420		152,179,403		61,055,416		44,803,436		135,415,205		165,317,010		316,182,727		356,154,630

Contract owners’ equity end of period	$	99,637,691		121,773,420		64,078,686		61,055,416		116,022,354		135,415,205		294,363,114		316,182,727


CHANGES IN UNITS:
Beginning units		7,865,933		10,200,109		4,173,108		3,161,586		6,433,177		8,037,160		8,956,758		11,400,256

Units purchased		619,129		1,757,681		866,201		2,015,916		412,354		514,781		–		–
Units redeemed		(2,447,904	)	(4,091,857	)	(909,446	)	(1,004,394	)	(1,579,780	)	(2,118,764	)	(1,791,093	)	(2,443,498	)

Ending units		6,037,158		7,865,933		4,129,863		4,173,108		5,265,751		6,433,177		7,165,665		8,956,758

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	OppGlSecS					OppHighInc			OppHighIncS				OppMSt
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(124,141	)	(121,505	)	(3,991	)	–	2,391,091		1,631,723		(47,270	)	23,206
Realized gain (loss) on investments		743,597		599,114		2,432		–	(97,084	)	(782,015	)	1,773,554		1,814,860
Change in unrealized gain (loss) on investments		1,316,446		1,966,157		39,501		–	724,880		(601,406	)	1,860,960		(564,315	)
Reinvested capital gains		1,203,577		–		–		–	–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		3,139,479		2,443,766		37,942		–	3,018,887		248,302		3,587,244		1,273,751


Equity transactions:
Purchase payments received from contract owners (note 3)		–		441		15,468		–	6,678,184		10,262,631		2,073,565		2,150,268
Transfers between funds		(2,025,595	)	(2,521,853	)	901,175		–	(337,721	)	(1,887,208	)	64,235		(1,040,113	)
Redemptions (note 3)		(1,060,555	)	(907,799	)	(29,532	)	–	(4,320,931	)	(2,768,049	)	(5,722,488	)	(6,202,146	)
Annuity benefits		–		–		–		–	(2,988	)	–		(5,239	)	(4,940	)
Annual contract maintenance charges (note 2)		(2,218	)	(2,631	)	(94	)	–	(3,253	)	(2,613	)	(15,876	)	(17,515	)
Contingent deferred sales charges (note 2)		(20,626	)	(16,560	)	(1	)	–	(71,581	)	(42,767	)	(27,417	)	(35,693	)
Adjustments to maintain reserves		(807	)	(561	)	(4	)	–	(2,090	)	(1,805	)	(152	)	442

Net equity transactions		(3,109,801	)	(3,448,963	)	887,012		–	1,939,620		5,560,189		(3,633,372	)	(5,149,697	)


Net change in contract owners’ equity		29,678		(1,005,197	)	924,954		–	4,958,507		5,808,491		(46,128	)	(3,875,946	)
Contract owners’ equity beginning of period		22,094,897		23,100,094		–		–	39,502,363		33,693,872		29,132,598		33,008,544

Contract owners’ equity end of period	$	22,124,575		22,094,897		924,954		–	44,460,870		39,502,363		29,086,470		29,132,598


CHANGES IN UNITS:
Beginning units		1,118,144		1,316,404		–		–	3,038,153		2,601,130		3,231,392		3,830,214

Units purchased		239		19		94,439		–	2,027,069		3,887,970		594,621		567,018
Units redeemed		(150,395	)	(198,279	)	(6,472	)	–	(1,884,813	)	(3,450,947	)	(984,167	)	(1,165,840	)

Ending units		967,988		1,118,144		87,967		–	3,180,409		3,038,153		2,841,846		3,231,392

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	OppMStS					OppMStSCap			OppMStSCapS				OppMidCap
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	(1,528,476	)	(212,761	)	(8,504	)	–	(705,070	)	(241,714	)	(305,748	)	(345,309	)
Realized gain (loss) on investments		–		167,095		(1,712	)	–	836,351		162,767		3,164,559		1,976,026
Change in unrealized gain (loss) on investments		19,680,869		1,877,496		137,198		–	3,887,706		1,149,880		(2,431,174	)	782,075
Reinvested capital gains		–		–		–		–	861,082		360,742		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		18,152,393		1,831,830		126,982		–	4,880,069		1,431,675		427,637		2,412,792


Equity transactions:
Purchase payments received from contract owners (note 3)		86,721,062		14,522,054		75,812		–	27,013,830		6,234,311		1,990,210		1,997,607
Transfers between funds		81,234,646		8,234,673		2,122,494		–	19,741,710		1,298,105		(6,645,482	)	2,409,538
Redemptions (note 3)		(5,705,191	)	(1,976,344	)	(47,095	)	–	(1,837,853	)	(758,174	)	(5,246,648	)	(5,782,714	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(7,209	)	(4,441	)	(155	)	–	(3,373	)	(2,085	)	(16,944	)	(19,828	)
Contingent deferred sales charges (note 2)		(112,644	)	(49,302	)	(57	)	–	(43,621	)	(12,942	)	(28,047	)	(40,755	)
Adjustments to maintain reserves		(9,185	)	(2,462	)	(16	)	–	(2,851	)	(670	)	(217	)	172

Net equity transactions		162,121,479		20,724,178		2,150,983		–	44,867,842		6,758,545		(9,947,128	)	(1,435,980	)


Net change in contract owners’ equity		180,273,872		22,556,008		2,277,965		–	49,747,911		8,190,220		(9,519,491	)	976,812
Contract owners’ equity beginning of period		55,729,762		33,173,754		–		–	21,104,247		12,914,027		28,985,432		28,008,620

Contract owners’ equity end of period	$	236,003,634		55,729,762		2,277,965		–	70,852,158		21,104,247		19,465,941		28,985,432


CHANGES IN UNITS:
Beginning units		3,831,295		2,371,195		–		–	1,105,896		731,026		4,765,383		5,103,889

Units purchased		11,493,472		1,854,727		257,275		–	2,703,482		536,160		1,008,584		2,237,981
Units redeemed		(915,262	)	(394,627	)	(29,610	)	–	(504,378	)	(161,290	)	(2,626,603	)	(2,576,487	)

Ending units		14,409,505		3,831,295		227,665		–	3,305,000		1,105,896		3,147,364		4,765,383

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	PioSmCapV2					PioSmCapV			PVTGroInc				PVTIntEq
Investment activity:	2006			2005		2006		2005	2006		2005		2006		2005
Net investment income (loss)	$	4,025		(3,795	)	(6,281	)	–	(4,912	)	(7,549	)	(14,526	)	1,281
Realized gain (loss) on investments		(155,622	)	15,698		(4,050	)	–	259,374		141,833		31,067		58,829
Change in unrealized gain (loss) on investments		(151,881	)	97,910		68,855		–	675,415		213,822		351,798		84,494
Reinvested capital gains		333,283		575		42,374		–	209,015		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		29,805		110,388		100,898		–	1,138,892		348,106		368,339		144,604


Equity transactions:
Purchase payments received from contract owners (note 3)		175,187		102,228		11,604		–	121,759		2,194,635		–		–
Transfers between funds		(1,439,840	)	534,863		1,383,266		–	(706,154	)	332,482		(29,481	)	(368,821	)
Redemptions (note 3)		(2,723	)	(28,729	)	(153,979	)	–	(728,783	)	(525,240	)	(62,235	)	(122,206	)
Annuity benefits		–		–		–		–	–		–		–		–
Annual contract maintenance charges (note 2)		(56	)	(64	)	(62	)	–	(1,246	)	(1,114	)	(150	)	(175	)
Contingent deferred sales charges (note 2)		–		–		–		–	(12,362	)	(13,324	)	(1,073	)	(3,962	)
Adjustments to maintain reserves		(17	)	(68	)	(19	)	–	(715	)	(535	)	(234	)	(161	)

Net equity transactions		(1,267,449	)	608,230		1,240,810		–	(1,327,501	)	1,986,904		(93,173	)	(495,325	)


Net change in contract owners’ equity		(1,237,644	)	718,618		1,341,708		–	(188,609	)	2,335,010		275,166		(350,721	)
Contract owners’ equity beginning of period		1,237,644		519,026		–		–	8,937,063		6,602,053		1,485,977		1,836,698

Contract owners’ equity end of period	$	–		1,237,644		1,341,708		–	8,748,454		8,937,063		1,761,143		1,485,977


CHANGES IN UNITS:
Beginning units		80,124		38,238		–		–	644,011		491,760		92,906		126,817
Units purchased		30,999		55,835		142,795		–	46,906		244,705		–		–
Units redeemed		(111,123	)	(13,949	)	(18,647	)	–	(139,314	)	(92,454	)	(5,368	)	(33,911	)

Ending units		–		80,124		124,148		–	551,603		644,011		87,538		92,906

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	PVTVoyII					TRoeBlChip2				TRowEqInc2				TRowLtdTBd2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(43,005	)	(32,709	)	(174,205	)	(25,952	)	(8,384	)	22,910		130,158		18,954
Realized gain (loss) on investments		95,509		56,471		130,049		12,982		44,978		1,577		(6,691	)	(1,629	)
Change in unrealized gain (loss) on investments		35,601		135,681		1,536,062		228,429		3,857,050		(313,305	)	47,408		(10,973	)
Reinvested capital gains		–		–		–		–		1,294,029		510,443		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		88,105		159,443		1,491,906		215,459		5,187,673		221,625		170,875		6,352


Equity transactions:
Purchase payments received from contract owners (note 3)		37,816		641,460		8,736,935		4,691,958		21,170,874		9,225,205		5,001,933		3,547,765
Transfers between funds		(519,877	)	(217,446	)	6,123,422		1,889,664		15,340,205		4,319,107		1,364,625		(510,548	)
Redemptions (note 3)		(289,662	)	(266,841	)	(613,356	)	(120,726	)	(1,014,358	)	(193,713	)	(305,605	)	(62,732	)
Annuity benefits		–		–		–		–		(670	)	–		–		–
Annual contract maintenance charges (note 2)		(498	)	(467	)	(718	)	(12	)	(1,554	)	(69	)	(207	)	–
Contingent deferred sales charges (note 2)		(5,915	)	(3,673	)	(5,020	)	(19	)	(9,775	)	(3,366	)	(935	)	(3,356	)
Adjustments to maintain reserves		(366	)	(459	)	(1,057	)	(202	)	(1,739	)	(305	)	(1,064	)	(303	)

Net equity transactions		(778,502	)	152,574		14,240,206		6,460,663		35,482,983		13,346,859		6,058,747		2,970,826


Net change in contract owners’ equity		(690,397	)	312,017		15,732,112		6,676,122		40,670,656		13,568,484		6,229,622		2,977,178
Contract owners’ equity beginning of period		3,456,648		3,144,631		6,676,122		–		13,568,484		–		2,977,178		–

Contract owners’ equity end of period	$	2,766,251		3,456,648		22,408,234		6,676,122		54,239,140		13,568,484		9,206,800		2,977,178


CHANGES IN UNITS:
Beginning units		276,236		261,001		596,546		–		1,288,795		–		297,273		–

Units purchased		47,677		92,357		1,577,178		642,389		3,549,455		1,368,433		800,442		425,058
Units redeemed		(110,697	)	(77,122	)	(313,156	)	(45,843	)	(425,933	)	(79,638	)	(200,380	)	(127,785	)

Ending units		213,216		276,236		1,860,568		596,546		4,412,317		1,288,795		897,335		297,273

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	VEWrldBdR1					VEWrldBd				VEWrldEMktR1				VEWrldEMkt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	475,515		320,862		1,829,223		1,984,463		(159,197	)	(76,208	)	(280,134	)	(175,050	)
Realized gain (loss) on investments		(233,304	)	31,427		(577,963	)	363,585		1,523,556		1,018,667		5,020,480		4,113,344
Change in unrealized gain (loss) on investments		138,245		(647,553	)	(88,888	)	(3,779,609	)	3,126,469		1,904,001		4,165,084		6,093,153
Reinvested capital gains		–		–		–		–		1,655,963		–		4,059,314		–

Net increase (decrease) in contract owners’ equity resulting from operations		380,456		(295,264	)	1,162,372		(1,431,561	)	6,146,791		2,846,460		12,964,744		10,031,447


Equity transactions:
Purchase payments received from contract owners (note 3)		598,469		831,072		1,016		2,166		1,385,845		1,259,829		10,392		24,936
Transfers between funds		762,085		2,517,663		(1,510,207	)	(1,877,467	)	5,733,378		5,767,907		(3,827,441	)	(2,959,728	)
Redemptions (note 3)		(971,018	)	(1,585,830	)	(4,655,526	)	(5,487,243	)	(2,646,848	)	(1,915,875	)	(6,129,821	)	(7,279,534	)
Annuity benefits		–		–		(2,378	)	(15,028	)	(1,583	)	(1,222	)	(8,187	)	(7,965	)
Annual contract maintenance charges (note 2)		(1,882	)	(1,707	)	(11,864	)	(16,194	)	(6,277	)	(4,010	)	(18,601	)	(19,920	)
Contingent deferred sales charges (note 2)		(3,254	)	(3,469	)	(7,972	)	(14,200	)	(8,113	)	(4,809	)	(18,699	)	(21,853	)
Adjustments to maintain reserves		(49	)	(103	)	648		(11,711	)	76		97		1,461		702

Net equity transactions		384,351		1,757,626		(6,186,283	)	(7,419,677	)	4,456,478		5,101,917		(9,990,896	)	(10,263,362	)


Net change in contract owners’ equity		764,807		1,462,362		(5,023,911	)	(8,851,238	)	10,603,269		7,948,377		2,973,848		(231,915	)
Contract owners’ equity beginning of period		6,998,382		5,536,020		27,009,875		35,861,113		14,422,738		6,474,361		39,427,440		39,659,355

Contract owners’ equity end of period	$	7,763,189		6,998,382		21,985,964		27,009,875		25,026,007		14,422,738		42,401,288		39,427,440


CHANGES IN UNITS:
Beginning units		653,908		494,491		1,440,459		1,831,299		877,819		513,201		2,663,102		3,491,296

Units purchased		335,216		419,148		54		–		807,066		918,165		28		–
Units redeemed		(298,190	)	(259,731	)	(333,340	)	(390,840	)	(578,451	)	(553,547	)	(583,413	)	(828,194	)

Ending units		690,934		653,908		1,107,173		1,440,459		1,106,434		877,819		2,079,717		2,663,102

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	VEWrldHAsR1					VEWrldHAs				VKCorPlus			VKCorPlus2
Investment activity:	2006			2005		2006		2005		2006		2005	2006		2005
Net investment income (loss)	$	(445,366	)	(197,893	)	(637,107	)	(434,388	)	3,055		–	1,193,567		206,177
Realized gain (loss) on investments		5,498,525		1,464,932		7,290,360		5,151,095		(5,881	)	–	(400	)	3,563
Change in unrealized gain (loss) on investments		(1,083,256	)	5,623,795		817,332		13,522,689		20,028		–	328,513		2,763
Reinvested capital gains		1,932,012		–		2,999,882		–		1,099		–	306,481		85,092

Net increase (decrease) in contract owners’ equity resulting from operations		5,901,915		6,890,834		10,470,467		18,239,396		18,301		–	1,828,161		297,595


Equity transactions:
Purchase payments received from contract owners (note 3)		2,065,709		1,531,360		17,406		7,378		45,355		–	46,844,551		7,031,021
Transfers between funds		2,321,399		14,497,498		(4,549,961	)	(3,301,557	)	1,369,635		–	46,098,453		5,758,142
Redemptions (note 3)		(5,508,611	)	(3,238,875	)	(7,213,857	)	(7,102,853	)	(16,757	)	–	(2,264,744	)	(647,607	)
Annuity benefits		(1,644	)	(1,295	)	(8,175	)	(6,897	)	–		–	–		–
Annual contract maintenance charges (note 2)		(10,616	)	(5,637	)	(21,176	)	(21,674	)	(86	)	–	(1,882	)	(700	)
Contingent deferred sales charges (note 2)		(9,717	)	(7,128	)	(14,404	)	(11,498	)	–		–	(35,165	)	(8,692	)
Adjustments to maintain reserves		(226	)	332		2,845		3,160		(24	)	–	(5,007	)	(975	)

Net equity transactions		(1,143,706	)	12,776,255		(11,787,322	)	(10,433,941	)	1,398,123		–	90,636,206		12,131,189


Net change in contract owners’ equity		4,758,209		19,667,089		(1,316,855	)	7,805,455		1,416,424		–	92,464,367		12,428,784
Contract owners’ equity beginning of period		28,971,878		9,304,789		50,038,192		42,232,737		–		–	20,680,370		8,251,586

Contract owners’ equity end of period	$	33,730,087		28,971,878		48,721,337		50,038,192		1,416,424		–	113,144,737		20,680,370


CHANGES IN UNITS:
Beginning units		1,551,985		746,021		1,699,058		2,157,026		–		–	1,959,026		797,097

Units purchased		1,192,380		1,653,937		1,196		–		171,065		–	9,356,263		1,335,234
Units redeemed		(1,274,146	)	(847,973	)	(359,270	)	(457,968	)	(34,971	)	–	(742,688	)	(173,305	)

Ending units		1,470,219		1,551,985		1,340,984		1,699,058		136,094		–	10,572,601		1,959,026

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	VKEmMkt					VKEmMkt2				VKUSRealEst				VKUSRealEst2
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	771,102		873,890		171,857		169,669		(492,343	)	(224,950	)	(515,975	)	(213,936	)
Realized gain (loss) on investments		168,220		211,783		(15,020	)	(15,386	)	19,553,508		18,249,203		5,011,279		1,910,125
Change in unrealized gain (loss) on investments		(267,286	)	58,642		4,511		70,779		29,064,115		2,788,992		17,752,662		5,239,548
Reinvested capital gains		198,048		224,689		45,299		45,227		12,898,400		4,922,427		5,982,846		1,532,785

Net increase (decrease) in contract owners’ equity resulting from operations		870,084		1,369,004		206,647		270,289		61,023,680		25,735,672		28,230,812		8,468,522


Equity transactions:
Purchase payments received from contract owners (note 3)		89		–		–		–		7,009,648		6,437,876		24,243,217		22,439,002
Transfers between funds		(1,271,160	)	(1,342,236	)	(212,492	)	(866,086	)	(12,693	)	(589,719	)	931,702		(3,177,939	)
Redemptions (note 3)		(2,709,903	)	(2,947,737	)	(172,118	)	(162,837	)	(33,197,542	)	(35,486,597	)	(5,359,922	)	(3,636,463	)
Annuity benefits		–		(9,826	)	–		–		(9,881	)	(30,115	)	(5,605	)	(845	)
Annual contract maintenance charges (note 2)		(5,696	)	(7,531	)	(342	)	(437	)	(75,427	)	(75,127	)	(10,423	)	(6,826	)
Contingent deferred sales charges (note 2)		(4,951	)	(11,048	)	(2,809	)	(4,405	)	(84,899	)	(107,279	)	(102,988	)	(88,753	)
Adjustments to maintain reserves		16		2,118		(366	)	(109	)	6,282		72,132		(2,189	)	(1,159	)

Net equity transactions		(3,991,605	)	(4,316,260	)	(388,127	)	(1,033,874	)	(26,364,512	)	(29,778,829	)	19,693,792		15,527,017


Net change in contract owners’ equity		(3,121,521	)	(2,947,256	)	(181,480	)	(763,585	)	34,659,168		(4,043,157	)	47,924,604		23,995,539
Contract owners’ equity beginning of period		12,534,982		15,482,238		2,577,975		3,341,560		183,682,293		187,725,450		68,802,572		44,807,033

Contract owners’ equity end of period	$	9,413,461		12,534,982		2,396,495		2,577,975		218,341,461		183,682,293		116,727,176		68,802,572


CHANGES IN UNITS:
Beginning units		725,492		992,232		171,015		246,266		4,368,496		5,160,818		3,310,194		2,479,086

Units purchased		5		–		878		813		829,233		1,104,200		2,036,989		1,900,386
Units redeemed		(227,339	)	(266,740	)	(26,357	)	(76,064	)	(1,387,028	)	(1,896,522	)	(1,201,722	)	(1,069,278	)

Ending units		498,158		725,492		145,536		171,015		3,810,701		4,368,496		4,145,461		3,310,194

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	VicDivrStk					WFDisc				WFLrgCoGro				WFMnMrkt
Investment activity:	2006			2005		2006		2005		2006		2005		2006		2005
Net investment income (loss)	$	(9,916	)	(9,056	)	(933,893	)	(961,411	)	(2,756	)	(1,469	)	2,359		723
Realized gain (loss) on investments		25,142		3,561		3,595,515		1,565,298		194		(85	)	–		–
Change in unrealized gain (loss) on investments		70,173		57,946		5,897,547		(3,114,203	)	2,873		10,014		–		–
Reinvested capital gains		24,629		–		–		6,905,488		–		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		110,028		52,451		8,559,169		4,395,172		311		8,460		2,359		723


Equity transactions:
Purchase payments received from contract owners (note 3)		123,893		294,765		1,176,127		1,199,076		1,400		73,423		15,051,627		10,328,758
Transfers between funds		(40,527	)	61,584		(940,787	)	(2,420,398	)	–		33,583		(13,968,889	)	(8,472,986	)
Redemptions (note 3)		(81,832	)	(48,144	)	(10,351,662	)	(12,056,562	)	(2,248	)	(714	)	(1,079,077	)	(1,845,926	)
Annuity benefits		–		–		(14,023	)	(14,389	)	–		–		–		–
Annual contract maintenance charges (note 2)		(199	)	(151	)	(35,066	)	(39,572	)	(42	)	(4	)	–		–
Contingent deferred sales charges (note 2)		(1,263	)	(3,444	)	(17,066	)	(29,605	)	(45	)	–		–		–
Adjustments to maintain reserves		(98	)	(13	)	(392,909	)	6,689		(26	)	(2	)	337		129

Net equity transactions		(26	)	304,597		(10,575,386	)	(13,354,761	)	(961	)	106,286		3,998		9,975


Net change in contract owners’ equity		110,002		357,048		(2,016,217	)	(8,959,589	)	(650	)	114,746		6,357		10,698
Contract owners’ equity beginning of period		859,735		502,687		70,754,053		79,713,642		137,863		23,117		10,698		–

Contract owners’ equity end of period	$	969,737		859,735		68,737,836		70,754,053		137,213		137,863		17,055		10,698


CHANGES IN UNITS:
Beginning units		64,852		40,476		2,486,339		3,008,430		13,234		2,297		1,058		–

Units purchased		9,226		28,988		148,193		172,979		135		11,009		1,683,830		1,081,962
Units redeemed		(8,757	)	(4,612	)	(495,902	)	(695,070	)	(226	)	(72	)	(1,683,253	)	(1,080,904	)

Ending units		65,321		64,852		2,138,630		2,486,339		13,143		13,234		1,635		1,058

(Continued)

NATIONWIDE VARIABLE ACCOUNT–II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2006 and 2005


	WFOpp					WFTotRetBd
Investment activity:	2006			2005		2006		2005
Net investment income (loss)	$	(4,650,382	)	(5,234,477	)	691		37
Realized gain (loss) on investments		3,746,830		(9,259,002	)	(2	)	–
Change in unrealized gain (loss) on investments		(1,783,769	)	37,584,286		(124	)	130
Reinvested capital gains		37,907,571		–		–		–

Net increase (decrease) in contract owners’ equity resulting from operations		35,220,250		23,090,807		565		167


Equity transactions:
Purchase payments received from contract owners (note 3)		7,927,891		9,940,417		–		–
Transfers between funds		(20,188,624	)	(21,710,516	)	–		21,250
Redemptions (note 3)		(61,448,279	)	(71,270,473	)	–		–
Annuity benefits		(56,229	)	(78,638	)	–		–
Annual contract maintenance charges (note 2)		(164,013	)	(196,177	)	–		–
Contingent deferred sales charges (note 2)		(132,291	)	(213,228	)	–		–
Adjustments to maintain reserves		377,238		3,613		(3	)	2

Net equity transactions		(73,684,307	)	(83,525,002	)	(3	)	21,252


Net change in contract owners’ equity		(38,464,057	)	(60,434,195	)	562		21,419
Contract owners’ equity beginning of period		373,720,329		434,154,524		21,419		–

Contract owners’ equity end of period	$	335,256,272		373,720,329		21,981		21,419


CHANGES IN UNITS:
Beginning units		8,710,393		10,844,850		2,116		–

Units purchased		239,865		328,146		–		2,116
Units redeemed		(1,944,589	)	(2,462,603	)	–		–

Ending units		7,005,669		8,710,393		2,116		2,116

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II

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-II (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on October 7, 1981. The Account is registered as a unit investment trust under the Investment Company Act of 1940.

The Company offers tax qualified and non-tax qualified Individual Deferred Variable Annuity Contracts, and Individual Modified Single Premium Deferred Variable Annuity Contracts through the Account. The primary distribution for the contracts is through the brokerage community; however, other distributors are 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 expenses.

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

Portfolios of the AIM Variable Insurance Funds;

AIM Variable Insurance Funds – AIM V.I. Basic Value Fund – Series II (AIMBValue2)

AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series II (AIMCapAp2)

AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series II (AIMCapDev2)

Alger American Balanced Portfolio – Class S Shares (AlgerBal)

Alger American Mid Cap Growth Portfolio – Class S Shares (AlgMidCapGr)

Portfolios of the AllianceBernstein Variable Products Series Fund Inc.;

AllianceBernstein Variable Products Series Fund Inc. – Growth and Income Portfolio –

Class B (AlGrIncB)

AllianceBernstein Variable Products Series Fund Inc. – Small-Mid Cap Value Portfolio –

Class B (AlSmMdCpB)

Portfolios of the American Century Variable Portfolios Inc.;

American Century Variable Portfolios Inc. – Balanced Fund – Class I (ACVPBal)

American Century Variable Portfolios Inc. – Capital Appreciation Fund – Class I (ACVPCapAp)

American Century Variable Portfolios Inc. – Income & Growth Fund – Class I (ACVPIncGr)

American Century Variable Portfolios Inc. – Income & Growth Fund – Class II (ACVPIncGr2)

American Century Variable Portfolios Inc. – Inflation Protection Fund – Class II (ACVPInflPro2)

American Century Variable Portfolios Inc. – International Fund – Class I (ACVPInt)

American Century Variable Portfolios Inc. – International Fund – Class II (ACVPInt2)

American Century Variable Portfolios Inc. – International Fund – Class III (ACVPInt3)

American Century Variable Portfolios Inc. – International Fund – Class IV (ACVPInt4)

American Century Variable Portfolios Inc. – Mid Cap Value Fund – Class I (ACVPMdCpV1)

American Century Variable Portfolios Inc. – Mid Cap Value Fund – Class II (ACVPMdCpV2)

American Century Variable Portfolios Inc. – Ultra^® Fund – Class I (ACVPUltra)

American Century Variable Portfolios Inc. – Ultra^® Fund – Class II (ACVPUltra2)

American Century Variable Portfolios Inc. – Value Fund – Class I (ACVPVal)

American Century Variable Portfolios Inc. – Value Fund – Class II (ACVPVal2)

American Century Variable Portfolios Inc. – Vista^SM Fund – Class I (ACVPVista1)

American Century Variable Portfolios Inc. – Vista^SM Fund – Class II (ACVPVista2)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the American Funds Insurance Series^®;

American Funds Insurance Series^®– Growth Fund – Class 1 (AmerGro)

American Funds Insurance Series^®– High-Income Bond Fund – Class 1 (AmerHiInc)

American Funds Insurance Series^®– U.S. Government/AAA-Rated Securities Fund –

Class 1 (AmerUSGvt)

Portfolios of the BB&T Variable Insurance Funds;

BB&T Variable Insurance Funds – BB&T VIF Capital Manager Equity Fund (BBTCapMgr)*

BB&T Variable Insurance Funds – BB&T VIF Large Cap (BBTLgCapV)

(formerly BB&T Variable Insurance Funds – BB&T VIF Large Cap Value Fund)*

BB&T Variable Insurance Funds – BB&T VIF Large Cap Growth (BBTLgCapGr)

(formerly BB&T Variable Insurance Funds – BB&T VIF Large Company Growth Fund)*

BB&T Variable Insurance Funds – BB&T VIF Mid Cap Growth Fund (BBTMdCapGr)*

Charles Schwab Money Market Portfolio (ChScMM)

Portfolios of the Credit Suisse Trust;

Credit Suisse Trust – Global Small Cap Portfolio (CSTGlSmCp)

Credit Suisse Trust – International Focus Portfolio (CSTIntFoc)

Credit Suisse Trust – Small Cap Growth Portfolio (CSTSmCapGr)

Portfolios of the Dreyfus Investment Portfolios;

Dreyfus Investment Portfolios – European Equity Portfolio (DryEuroEq)*

Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares (DrySmCapIxS)

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

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

Dreyfus Stock Index Fund Inc. – Service Shares (DryStklxS)

Portfolios of the Dreyfus Variable Investment Fund;

Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares (DryVIFApp)

Dreyfus Variable Investment Fund – Appreciation Portfolio – Service Shares (DryVIFAppS)

Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Service Shares (DryVIFDevLdS)

Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares (DryVIFGrInc)

Portfolios of the Federated Insurance Series;

Federated Insurance Series – Federated American Leaders Fund II – Service Shares (FedAmLeadS)

Federated Insurance Series – Federated Capital Appreciation Fund II – Service Shares (FedCapApS)

Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares (FedMrkOp)

Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares (FedQualBd)

Federated Insurance Series – Federated Quality Bond Fund II – Service Shares (FedQualBdS)

Portfolios of the Fidelity^® Variable Insurance Products Fund;

Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class (FidVIPEI)

Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class 2 (FidVIPEIS2)

Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Initial Class (FidVIPGr)

Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Service Class 2 (FidVIPGrS2)

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

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class (FidVIPOv)

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class R (FidVIPOvR)

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 (FidVIPOvS2)

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

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

Fidelity^® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class (FidVIPAM)

Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Initial Class (FidVIPCon)

Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Service Class 2 (FidVIPConS2)

Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio –

Service Class (FidVIPIGBdS)

Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio –

Service Class 2 (FidVIPIGBdS2)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

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

Fidelity^® Variable Insurance Products Fund III – Growth Opportunities Portfolio –

Initial Class (FidVIPGrOp)

Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class (FidVIPMCapS)

Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class 2 (FidVIPMCapS2)

Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class (FidVIPVaIS)

Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class 2 (FidVIPVaIS2)

Portfolios of the Fidelity^® Variable Insurance Products Fund IV;

Fidelity^® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2 (FidVIPEnergyS2)

(formerly Fidelity^® Variable Insurance Products Fund IV – Natural Resources Portfolio –

Service Class 2)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio –

Service Class (FidVIPFree10S)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio –

Service Class 2 (FidVIPFree10S2)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio –

Service Class (FidVIPFree20S)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio –

Service Class 2 (FidVIPFree20S2)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio –

Service Class (FidVIPFree30S)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio –

Service Class 2 (FidVIPFree30S2)

Portfolio of the Financial Investors Variable Insurance Trust;

Financial Investors Variable Insurance Trust – First Horizon Core Equity Portfolio (FICoreEq)*

First Horizon Capital Appreciation Portfolio (FHCapAp)*

Portfolios of the Franklin Templeton Variable Insurance Products Trust;

Franklin Templeton Variable Insurance Products Trust –

Franklin Income Securities Fund – Class 2 (FrVIPIncSec2)

Franklin Templeton Variable Insurance Products Trust –

Franklin Rising Dividends Securities Fund – Class 2 (FrVIPRisDiv2)

Franklin Templeton Variable Insurance Products Trust –

Franklin Small Cap Value Securities Fund – Class 2 (FrVIPSmCapV2)

Franklin Templeton Variable Insurance Products Trust –

Templeton Developing Markets Securities Fund – Class 3 (FrVIPDevMrk3)

Franklin Templeton Variable Insurance Products Trust –

Templeton Foreign Securities Fund – Class 2 (FrVIPForSec2)

Franklin Templeton Variable Insurance Products Trust –

Templeton Foreign Securities Fund – Class 3 (FrVIPForSec3)

Franklin Templeton Variable Insurance Products Trust –

Templeton Global Income Securities Fund – Class 3 (FrVIPGlInc3)

Portfolios of the Gartmore Variable Insurance Trust (GVIT);

Gartmore GVIT – American Funds GGVIT Asset Allocation Fund – Class II (GVITAstAll2)

Gartmore GVIT – American Funds GGVIT Bond Fund – Class II (GVITBnd2)

Gartmore GVIT – American Funds GGVIT Global Growth Fund – Class II (GVITGlobGr2)

Gartmore GVIT – American Funds GGVIT Growth Fund – Class II (GVITGrowth2)

Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class II (GVITIntVal2)

Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III (GVITIntVal3)

Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class VI (GVITIntVal6)

Gartmore GVIT – Emerging Markets Fund – Class I (GVITEmMrkts)

Gartmore GVIT – Emerging Markets Fund – Class II (GVITEmMrkts2)

Gartmore GVIT – Emerging Markets Fund – Class III (GVITEmMrkts3)

Gartmore GVIT – Emerging Markets Fund – Class VI (GVITEmMrkts6)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I (GVITFHiInc)

Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III (GVITFHiInc3)

Gartmore GVIT – Gartmore GGVIT International Index Fund – Class VIII (GVITIntIdx8)

Gartmore GVIT – Global Financial Services Fund – Class II (GVITGlFin2)

Gartmore GVIT – Global Financial Services Fund – Class III (GVITGlFin3)

Gartmore GVIT – Global Health Sciences Fund – Class II (GVITGlHlth2)

Gartmore GVIT – Global Health Sciences Fund – Class III (GVITGlHlth3)

Gartmore GVIT – Global Health Sciences Fund – Class VI (GVITGlHlth6)

Gartmore GVIT – Global Technology and Communications Fund – Class I (GVITGlTech)

Gartmore GVIT – Global Technology and Communications Fund – Class II (GVITGlTech2)

Gartmore GVIT – Global Technology and Communications Fund – Class III (GVITGlTech3)

Gartmore GVIT – Global Technology and Communications Fund – Class VI (GVITGlTech6)

Gartmore GVIT – Global Utilities Fund – Class II (GVITGlUtl2)

Gartmore GVIT – Global Utilities Fund – Class III (GVITGlUtl3)

Gartmore GVIT – Government Bond Fund – Class I (GVITGvtBd)

Gartmore GVIT – Growth Fund – Class I (GVITGrowth)

Gartmore GVIT – International Growth Fund – Class I (GVITIntGro)

Gartmore GVIT – International Growth Fund – Class III (GVITIntGro3)

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 GVIT – Mid Cap Growth Fund – Class I (GVITMdCpGr)

Gartmore GVIT – Mid Cap Growth Fund – Class II (GVITMdCpGr2)

Gartmore GVIT – Mid Cap Index Fund – Class I (GVITMidCap)

Gartmore GVIT – Money Market Fund – Class I (GVITMyMkt)

Gartmore GVIT – Nationwide Fund – Class I (GVITNWFund)

Gartmore GVIT – Nationwide Fund – Class II (GVITNWFund2)

Gartmore GVIT – Nationwide Leaders Fund – Class III (GVITNWLead3)

Gartmore GVIT – Small Cap Growth Fund – Class I (GVITSmCapGr)

Gartmore GVIT – Small Cap Growth Fund – Class II (GVITSmCapGr2)

Gartmore GVIT – Small Cap Value Fund – Class I (GVITSmCapVal)

Gartmore GVIT – Small Cap Value Fund – Class II (GVITSmCapVal2)

Gartmore GVIT – Small Company Fund – Class I (GVITSmComp)

Gartmore GVIT – Small Company Fund – Class II (GVITSmComp2)

Gartmore GVIT – Turner GVIT Growth Focus Fund – Class I (GVITTGroFoc)*

Gartmore GVIT – Turner GVIT Growth Focus Fund – Class III (GVITTGroFoc3)*

Gartmore GVIT – U.S. Growth Leaders Fund – Class II (GVITUSGro2)

Gartmore GVIT – U.S. Growth Leaders Fund – Class III (GVITUSGro3)

Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund – Class II (GVITVKVal2)

Gartmore GVIT – Van Kampen GVIT Multi Sector Bond Fund – Class I (GVITMltSec)

Gartmore GVIT – Worldwide Leaders Fund – Class III (GVITWLead3)

Portfolios of the Janus Aspen Series;

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

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

Janus Aspen Series – Global Technology Portfolio – Service II Shares (JanGlTechS2)

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

Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares (JanRMgCore)

(formerly Janus Aspen Series – Risk-Managed Core Portfolio – Service Shares)

Janus Aspen Series – International Growth Portfolio – Service II Shares (JanIntGroS2)

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

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Portfolios of the JPMorgan Insurance Trust;

JPMorgan Insurance Trust – JPMorgan Insurance Trust Balanced Portfolio 1 (JPMBal)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Core Bond Portfolio 1 (JPMCBond)

(formerly JPMorgan Investment Trust – JPMorgan Investment Trust Bond Portfolio 1)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Diversified Equity Portfolio 1 (JPMDivEq)*

JPMorgan Insurance Trust –

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

(formerly JPMorgan Investment Trust – JPMorgan Investment Trust Mid Cap Growth Portfolio 1)*

JPMorgan Insurance Trust –

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

(formerly JPMorgan Investment Trust – JPMorgan Investment Trust Mid Cap Value Portfolio 1)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Equity Index Portfolio 1 (JPMEqIndx)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Government Bond Portfolio 1 (JPMGvtBd)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Intrepid Mid Cap Portfolio 1 (JPMMidCap)

(formerly JPMorgan Investment Trust – JPMorgan Investment Trust Diversified Mid Cap Portfolio 1)*

JPMorgan Insurance Trust – JPMorgan Insurance Trust Large Cap Growth Portfolio 1 (JPMLgCapGr)*

Portfolio of the JPMorgan Series Trust II;

JPMorgan Series Trust II – JPMorgan Mid Cap Value Portfolio (JPMSTMidCap)

Portfolios of the MFS Variable Insurance Trust;

MFS Variable Insurance Trust – Investors Growth Stock Series – Service Class (MFSInvGrStS)

MFS Variable Insurance Trust – Value Series – Service Class (MFSValS)

Portfolios of the MTB Group of Funds;

MTB Large Cap Growth Fund II (MTBLgCapGr2)

MTB Large Cap Value Fund II (MTBLgCapV2)

MTB Managed Allocation Fund – Aggressive Growth II (MTBAggGr2)

MTB Managed Allocation Fund – Conservative Growth II (MTBConGr2)

MTB Managed Allocation Fund – Moderate Growth II (MTBModGr2)

Portfolios of the Neuberger Berman Advisers Management Trust;

Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S (NBAMTFasc)

Neuberger Berman Advisers Management Trust – Growth Portfolio – Class I (NBAMTGro)

Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares (NBAMTGuard)

Neuberger Berman Advisers Management Trust – International Portfolio – Class S (NBAMTInt)

Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio –

Class I (NBAMTLMat)

Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio –

S Class Shares (NBAMTMCGrS)

Neuberger Berman Advisers Management Trust – Partners Portfolio – Class I (NBAMTPart)

Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S (NBAMTRegS)

Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio Class I (NBAMSocRes)

Oppenheimer Global Securities Fund/VA – Class 3 (OppGlSec3)

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

Portfolios of the Oppenheimer Variable Account Funds;

Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA –

Non-Service Shares (OppBal)

(formerly Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA –

Non-Service Shares (OppCapAp) (formerly Oppenheimer Variable Account Funds –

Oppenheimer Capital Appreciation Fund/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA –

Service Class (OppCapApS)

Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA –

Non-Service Shares (OppBdFd)

(formerly Oppenheimer Variable Account Funds – Oppenheimer Bond Fund/VA – Initial Class)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA –

Non-Service Shares (OppGlSec) (formerly Oppenheimer Variable Account Funds –

Oppenheimer Global Securities Fund/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA –

Service Class (OppGlSecS)

Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA –

Non-Service Shares (OppHighInc) (formerly Oppenheimer Variable Account Funds –

Oppenheimer High Income Fund/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA –

Service Class (OppHighIncS)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^{^®}Fund/VA –

Non-Service Shares (OppMSt) (formerly Oppenheimer Variable Account Funds –

Oppenheimer Main Street Fund^{^®}/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^{^®}Fund/VA –

Service Class (OppMStS)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^{^®}Small Cap Fund/VA –

Non-Service Shares (OppMStSCap) (formerly Oppenheimer Variable Account Funds –

Oppenheimer Main Street Small Cap Fund^{^®}/VA – Initial Class)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^{^®}Small Cap Fund/VA –

Service Class (OppMStSCapS)

Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA –

Non-Service Shares (OppMidCap) (formerly Oppenheimer Variable Account Funds –

Oppenheimer Aggressive Growth Fund/VA – Initial Class)

Pioneer Small Cap Value II VCT Portfolio – Class I (PioSmCapV2)*

Pioneer Small Cap Value VCT Portfolio – Class I (PioSmCapV)

Portfolios of the Putnam Variable Trust;

Putnam Variable Trust – Putnam VT Growth & Income Fund – IB Shares (PVTGroInc)

Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares (PVTIntEq)

Putnam Variable Trust – Putnam VT Voyager Fund – IB Shares (PVTVoyII)

Portfolio of the Strong Variable Insurance Funds Inc.;

Strong Variable Insurance Funds Inc. – Strong International Stock Fund II (StIntStk2)*

T. Rowe Price Blue Chip Growth Portfolio – II (TRoeBlChip2)

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

T. Rowe Price Limited Term Bond Portfolio – Class II (TRowLtdTBd2)

Portfolios of the Van Eck Worldwide Insurance Trust;

Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Class R1 (VEWrldBdR1)

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

Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Class R1 (VEWrldEMktR1)

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

Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Class R1 (VEWrldHAsR1)

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

Portfolios of the Van Kampen – The Universal Institutional Funds Inc.;

Van Kampen – The Universal Institutional Funds Inc. – Core Plus Fixed Income Portfolio –

Class I (VKCorPlus)

Van Kampen – The Universal Institutional Funds Inc. – Core Plus Fixed Income Portfolio –

Class II (VKCorPlus2)

Van Kampen – The Universal Institutional Funds Inc. – Emerging Markets Debt Portfolio –

Class I (VKEmMkt)

Van Kampen – The Universal Institutional Funds Inc. – Emerging Markets Debt Portfolio –

Class II (VKEmMkt2)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Van Kampen – The Universal Institutional Funds Inc. – U.S. Real Estate Portfolio –

Class I (VKUSRealEst)

Van Kampen – The Universal Institutional Funds Inc. – U.S. Real Estate Portfolio –

Class II (VKUSRealEst2)

Portfolio of the Van Kampen Life Investment Trust;

Van Kampen Life Investment Trust – Morgan Stanley Real Estate Securities Fund (VKRealEstSec)*

Portfolios of the Victory Variable Insurance Funds;

Victory Variable Insurance Funds – Diversified Stock Fund Class A Shares (VicDivrStk)

Victory Variable Insurance Funds – Investment Quality Bond Fund Class A Shares (VicInvQBd)*

Victory Variable Insurance Funds – Small Company Opportunity Fund Class A Shares (VicSmCoOpp)*

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

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Asset Allocation Fund (WFAsAlloc)*

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Discovery Fund^SM (WFDisc)

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Large Company Growth Fund (WFLrgCoGro)

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Money Market Fund (WFMnMrkt)

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Opportunity Fund^SM (WFOpp)

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Small Cap Growth Fund (WFSmCapGr)*

Wells Fargo Advantage Variable Trust Funds^SM–

Wells Fargo Advantage VT Total Return Bond Fund (WFTotRetBd)

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

Effective May 2002, due to the Dreyfus Investment Portfolio – European Equity Portfolio no longer being available within the Account, assets of contract owners invested in this sub-account were liquidated and exchanged into the Gartmore Variable Insurance Trust – Money Market Fund – Class I.

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

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

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

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (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)

NATIONWIDE VARIABLE ACCOUNT-II (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 BOA IV contracts issued prior to December 15, 1988, the contingent deferred sales charge will be equal to 5% of the lesser of purchase payments or the amount surrendered. For America’s Vision, America’s Future II, All American Gold, Future Venue, Choice Venue II and for BOA IV contracts issued on or after December 15, 1988, the contingent deferred sales charge will not exceed 7% of purchase payments surrendered, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 7 years this charge is 0%. For Achiever contracts, this charge will not exceed 8% of purchase payments surrendered, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 8 years this charge is 0%. For Elite Venue contracts, the contingent deferred sales charge will not exceed 7% of purchase payments surrendered, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 4 years this charge is 0%. No contingent deferred sales charge is deducted on NEBA, Exclusive Venue or Schwab contracts. No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the company.

The Company may deduct an annual contract maintenance charge of up to $30, dependent upon contract type and issue date, which is satisfied by surrendering units.

The Company deducts a mortality and expense risk charge assessed through the daily unit value calculation. The Option table on the following page 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)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Nationwide Variable Account –II Options

BOA
IV

America’s
Vision

NEBA

America’s
Future II

All
American
Gold

Achiever

Future
Venue

Exclusive
Venue

Elite
Venue

Choice
Venue II

Schwab

Variable Account Charges – Recurring

1.30%

1.40%

0.80%

1.15%

1.55%

1.10%

1.60%

1.75%

1.50%

0.95%

CDSC Options:

Four Year CDSC

–

0.25%

0.20%

–

No CDSC

–

0.30%

0.25%

–

Death Benefit Options:

Allows enhanced provisions in
place of the standard death benefit.

One-Year Enhanced II

–

0.20%⁽²⁾

0.20%⁽²⁾

–

0.15%⁽³⁾

–

One-Year Enhanced

–

0.10%⁽⁴⁾

–

0.10%⁽⁴⁾

–

0.10%

One-Month Enhanced II

–

0.35%⁽³⁾

0.20%⁽²⁾

–

One-Month Enhanced

–

0.35%⁽²⁾

0.20%⁽²⁾

0.30%⁽⁶⁾

0.20%⁽⁶⁾

–

Combination Enhanced II

–

0.45%⁽³⁾

0.35%⁽²⁾

–

Combination Enhanced

–

0.40%⁽⁵⁾

0.30%⁽⁵⁾

0.40%⁽⁷⁾

0.30%⁽⁷⁾

0.40%

Spousal Protection Annuity Option:

Allows a surviving spouse to
continue the contract while
receiving the economic benefit
of the death benefit upon the
death of the other spouse.

Spousal Protection Annuity Option II

–

0.20%⁽³⁾

–

Spousal Protection Annuity Option

–

0.10%⁽⁸⁾

0.20%

–

Beneficiary Protector II Option

–

0.35%

Upon death of the annuitant, in
addition to any death benefit
payable, the contract will be
credited an additional amount.

Capital Preservation and Income Options:

Capital Preservation Plus
Lifetime Income Option

–

1.00%

–

1.00%

–

Capital Preservation Plus Option

–

0.50%

0.50%

0.50%

0.50%

Lifetime Income Option

–

1.00%

–

1.00%

–

Spousal Continuation Benefit Option

–

0.15%

–

0.15%

–

Extra Value Option (EV):

Fee assessed to assets of the
variable account and to
allocations made to the fixed
account or guaranteed term
options in exchange for application
of Extra Value Credit of purchase
payments made during the first
12 months contract is in force.

3% Extra Value Credit Option

–

0.30%

0.45%⁽⁹⁾

0.10%

0.45%

–

4% Extra Value Credit Option

–

0.40%

–

0.25%

–

5% Extra Value Credit Option

–

0.70%⁽²⁾

0.45%⁽¹⁰⁾

–

5% Extra Value Credit Option

–

0.55%⁽¹¹⁾

–

Maximum Variable Account Charges⁽¹⁾:

1.30%

1.40%

0.80%

3.20%

4.00%

4.15%

3.70%

3.00%

3.80%

3.55%

2.20%

⁽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.

⁽²⁾	Available beginning May 1, 2004 or a later date if state law requires.

⁽³	Available beginning September 1, 2004 or a later date if state law requires.

⁽⁴⁾	Available until state approval is received for the One-Year Enhanced Death Benefit II Option.

⁽⁵⁾	Available until state approval is received for the One-Month Enhanced Death Benefit Option.

⁽⁶⁾	Available until state approval is received for the One-Month Enhanced Death Benefit II Option.

⁽⁷⁾	Available until state approval is received for the Combination Enhanced Death Benefit II Option.

⁽⁸⁾	Available until state approval is received for the Spousal Protection Annuity II Option.

⁽⁹⁾	Available until state approval is received for the 5% Extra Value Option.

⁽¹⁰⁾	Non-NY residents.

⁽¹¹⁾	NY residents.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (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		AIMBValue2	AIMCapAp2	AIMCapDev2	AlgerBal	AlgMidCapGr	AlGrIncB	AlSmMdCpB
0.80%	$	265,429	–	14	5	–	–	–	–
0.95%		325,973	1,303	1,375	1,142	1,891	1,451	1,695	994
1.05%		240,962	944	2,025	594	1,101	2,842	2,449	1,500
1.10%		211,712	4,302	555	142	–	–	580	235
1.15%		10,601,021	80,387	21,269	38,766	–	–	30,903	9,992
1.20%		125,117	1,738	44	14	–	–	1,082	145
1.25%		3,029,760	32,546	5,708	12,547	–	–	25,616	4,900
1.30%		75,976,687	1,967	565	3,048	–	–	2,290	408
1.35%		2,781,158	18,607	1,109	5,866	–	223	17	–
1.40%		39,745,339	12,024	5,174	4,143	–	120	10,167	748
1.45%		3,859,010	26,152	7,040	16,097	219	791	25,983	4,182
1.50%		2,950,076	45,484	10,773	12,098	–	–	23,513	5,872
1.55%		10,939,185	111,659	31,219	44,333	–	–	54,933	28,493
1.60%		1,148,244	12,798	2,195	2,625	–	–	7,475	4,254
1.65%		8,168,210	53,858	7,715	21,891	–	–	20,122	3,218
1.70%		1,582,598	31,548	8,515	6,067	–	–	17,524	11,695
1.75%		14,352,742	65,470	22,556	23,370	–	–	18,498	2,901
1.80%		5,743,448	79,555	13,684	17,201	–	43	39,138	29,592
1.85%		3,037,862	28,830	11,231	10,611	–	–	11,273	5,743
1.90%		2,129,922	10,926	6,339	1,648	–	–	9,704	1,088
1.95%		3,779,221	12,894	3,953	7,928	–	–	5,426	6,708
2.00%		7,425,595	27,209	10,555	7,578	–	–	3,779	1,549
2.05%		4,099,916	58,289	8,580	15,252	–	–	14,126	9,376
2.10%		2,720,220	14,701	3,789	3,772	–	–	4,662	826
2.15%		5,357,106	19,791	5,234	13,384	–	–	3,052	775
2.20%		1,986,606	4,323	654	3,417	–	–	1,551	104
2.25%		3,877,396	19,648	8,376	2,734	–	–	2,317	537
2.30%		1,333,304	10,657	2,285	4,731	–	–	4,249	–
2.35%		9,953,539	7,829	4,441	5,013	–	–	78	–
2.40%		907,292	2,763	1,676	1,496	–	–	1,024	275
2.45%		1,075,982	1,933	989	5,304	–	–	–	–
2.50%		582,409	3,335	2,546	1,954	–	–	183	–
2.55%		1,650,329	1,621	635	3,666	–	–	1,590	–
2.60%		786,917	2,913	1,611	299	–	–	801	–
2.65%		200,585	658	–	80	–	–	–	–
2.70%		601,991	450	161	3,877	–	–	–	–
2.75%		150,220	71	83	8,190	–	–	–	–
2.80%		153,912	522	575	130	–	–	199	–
2.85%		24,503	–	118	–	–	–	–	–
2.90%		166,792	–	–	–	–	–	392	–
2.95%		27,094	318	321	344	–	–	–	–
3.00%		59,687	–	–	161	–	–	–	–
3.05%		21,455	–	–	–	–	–	–	–
3.10%		44,947	–	–	–	–	–	–	–
3.15%		12,427	–	–	–	–	–	–	–
3.25%		12,215	–	–	–	–	–	–	–

Totals	$	234,226,115	810,023	215,687	311,518	3,211	5,470	346,391	136,110


	ACVPBal		ACVPCapAp	ACVPIncGr	ACVPIncGr2	ACVPInflPro2	ACVPInt	ACVPInt2	ACVPInt3
0.80%	$	2,868	1,854	711	–	274	2,164	–	800
0.95%		–	–	–	8,051	11,290	–	122	–
1.05%		–	–	–	5,732	6,428	–	–	–
1.10%		–	–	–	178	1,691	–	182	–
1.15%		–	–	–	26,608	106,013	–	8,803	–
1.20%		–	–	–	387	1,351	–	307	–
1.25%		–	–	–	15,985	47,746	–	4,975	–
1.30%		715,965	1,353,633	366,874	–	123,159	490,244	115	304,063
1.35%		–	–	–	418	27,778	–	–	–
1.40%		438,520	354,668	168,766	3,591	101,979	389,355	591	102,943
1.45%		–	–	–	10,722	69,878	–	4,799	–
1.50%		–	–	–	6,217	34,830	–	5,407	–
1.55%		–	–	–	44,118	180,066	–	4,051	–
1.60%		–	–	–	1,957	12,291	–	2,647	–
1.65%		–	–	–	12,467	63,703	–	1,953	–
1.70%		–	–	–	3,820	13,772	–	1,626	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	ACVPBal		ACVPCapAp	ACVPIncGr	ACVPIncGr2	ACVPInflPro2	ACVPInt	ACVPInt2	ACVPInt3
1.75%		–	–	–	8,421	92,889	–	735	–
1.80%		–	–	–	22,070	79,710	–	3,391	–
1.85%		–	–	–	8,854	27,892	–	1,688	–
1.90%		–	–	–	4,049	4,688	–	432	–
1.95%		–	–	–	8,190	21,987	–	454	–
2.00%		–	–	–	4,854	35,391	–	–	–
2.05%		–	–	–	2,294	27,793	–	2,511	–
2.10%		–	–	–	11,231	32,494	–	708	–
2.15%		–	–	–	993	16,893	–	524	–
2.20%		–	–	–	1,979	14,697	–	–	–
2.25%		–	–	–	477	11,858	–	–	–
2.30%		–	–	–	375	12,183	–	–	–
2.35%		–	–	–	522	6,476	–	–	–
2.40%		–	–	–	194	661	–	–	–
2.45%		–	–	–	–	2,934	–	–	–
2.50%		–	–	–	219	3,646	–	–	–
2.55%		–	–	–	276	2,356	–	–	–
2.60%		–	–	–	810	545	–	–	–
2.65%		–	–	–	301	165	–	–	–
2.70%		–	–	–	–	2,478	–	–	–
2.75%		–	–	–	–	–	–	–	–
2.80%		–	–	–	35	110	–	–	–
2.85%		–	–	–	95	69	–	–	–
2.90%		–	–	–	–	351	–	–	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	186	–	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	1,157,353	1,710,155	536,351	216,490	1,200,701	881,763	46,021	407,806


	ACVPInt4		ACVPMdCpV1	ACVPMdCpV2	ACVPUltra	ACVPUltra2	ACVPVal	ACVPVal2	ACVPVista1
0.80%	$	–	164	–	126	–	5,024	–	–
0.95%		1,443	–	–	–	815	–	3,560	–
1.05%		2,524	–	–	–	2,836	–	6,519	–
1.10%		1,087	–	15	–	506	–	3,346	–
1.15%		25,133	–	18,879	–	17,860	–	172,409	–
1.20%		141	–	–	–	622	–	436	–
1.25%		7,414	–	2,478	–	9,217	–	59,623	–
1.30%		291	7,223	–	48,763	22	1,272,291	1,803	577
1.35%		7,822	–	5,359	–	4,336	–	60,004	–
1.40%		2,444	3,868	3,787	24,369	2,411	677,056	29,781	111
1.45%		9,810	–	7,527	–	10,782	–	82,676	–
1.50%		3,196	–	6,277	–	10,226	–	42,069	–
1.55%		29,254	–	27,887	–	28,535	–	169,826	–
1.60%		3,405	–	1,065	–	6,411	–	13,641	–
1.65%		7,870	–	6,701	–	17,990	–	110,677	–
1.70%		2,164	–	1,020	–	15,089	–	22,048	–
1.75%		9,493	–	18,416	–	17,985	–	91,582	–
1.80%		17,974	–	7,513	–	18,935	–	110,333	–
1.85%		6,523	–	3,343	–	7,732	–	40,753	–
1.90%		2,245	–	709	–	5,039	–	16,517	–
1.95%		6,180	–	2,990	–	8,398	–	22,597	–
2.00%		4,921	–	4,098	–	6,009	–	42,144	–
2.05%		3,769	–	1,574	–	13,743	–	41,434	–
2.10%		768	–	5,374	–	6,023	–	18,518	–
2.15%		496	–	9,303	–	16,545	–	34,863	–
2.20%		155	–	462	–	2,438	–	8,055	–
2.25%		1	–	1,294	–	9,840	–	18,547	–
2.30%		170	–	858	–	2,520	–	10,429	–
2.35%		66	–	3,713	–	4,895	–	22,632	–
2.40%		–	–	1,683	–	908	–	12,070	–
2.45%		102	–	14	–	510	–	9,664	–
2.50%		–	–	135	–	4,947	–	6,655	–
2.55%		–	–	82	–	1,841	–	1,147	–
2.60%		–	–	1,880	–	201	–	1,314	–
2.65%		540	–	–	–	273	–	691	–
2.70%		88	–	1,570	–	394	–	3,398	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued

ACVPInt4

ACVPMdCpV1

ACVPMdCpV2

ACVPUltra

ACVPUltra2

ACVPVal

ACVPVal2

ACVPVista1

2.75%

–

155

–

232

–

2.80%

–

524

–

921

–

2.85%

–

184

–

2.90%

–

2.95%

–

3.00%

–

3.05%

–

3.10%

–

3.15%

–

3.25%

–

Totals

157,489

11,255

146,098

73,258

257,769

1,954,371

1,293,000

688

ACVPVista2

AmerGro

AmerHiInc

AmerUSGvt

ChScMM

CSTGlSmCp

CSTIntFoc

CSTSmCapGr

0.80%

–

253

579

3,513

0.95%

–

72,070

–

1.05%

–

51,868

–

1.10%

237

–

1.15%

3,731

–

1.20%

–

1.25%

198

–

1.30%

–

260,120

20,296

26,507

–

40,708

282,285

762,695

1.35%

1,849

–

2,289

–

1.40%

495

–

911

22,830

292,784

453,139

1.45%

1,416

–

3,536

–

1.50%

1,439

–

1.55%

3,918

–

1,956

–

1.60%

494

–

1.65%

3,492

–

1.70%

191

–

1.75%

4,514

–

1.80%

546

–

1.85%

2,052

–

113

–

1.90%

–

1.95%

1,081

–

2.00%

2,293

–

2.05%

3,532

–

2.10%

509

–

2.15%

6,861

–

2.20%

378

–

2.25%

351

–

2.30%

581

–

2.35%

503

–

2.40%

1,168

–

2.45%

–

2.50%

215

–

2.55%

105

–

2.60%

102

–

2.65%

–

2.70%

324

–

2.75%

–

2.80%

137

–

2.85%

–

2.90%

659

–

2.95%

–

3.00%

–

3.05%

–

3.10%

–

3.15%

–

3.25%

–

Totals

43,427

260,120

20,296

26,507

132,841

63,791

575,648

1,219,347

DrySmCapIxS

DrySRGro

DryStkIx

DryStklxS

DryVIFApp

DryVIFAppS

DryVIFDevLdS

DryVIFGrInc

0.80%

763

3,294

14,087

–

2,081

–

1,543

0.95%

6,432

–

28,905

–

3,302

1,582

–

1.05%

4,058

–

13,983

–

2,637

361

–

1.10%

510

–

4,282

–

982

126

–

1.15%

77,665

–

274,022

–

51,179

13,193

–

1.20%

963

–

3,693

–

125

–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	DrySmCapIxS		DrySRGro	DryStkIx	DryStklxS	DryVIFApp	DryVIFAppS	DryVIFDevLdS	DryVIFGrInc
1.25%		24,503	–	–	77,752	–	16,192	2,724	–
1.30%		218,938	848,004	4,533,532	2,807	438,720	1,395	–	277,552
1.35%		19,925	–	–	46,215	–	5,835	104	–
1.40%		114,241	304,073	2,937,498	21,153	231,243	6,074	2,394	176,263
1.45%		30,552	–	–	86,946	–	22,179	4,540	–
1.50%		12,106	–	–	77,583	–	21,598	2,479	–
1.55%		76,994	–	–	220,106	–	62,529	16,735	–
1.60%		6,919	–	–	32,571	–	2,734	1,344	–
1.65%		26,593	–	–	124,421	–	33,574	2,182	–
1.70%		7,778	–	–	19,334	–	6,475	2,578	–
1.75%		27,223	–	–	110,898	–	24,960	3,471	–
1.80%		53,669	–	–	81,188	–	25,495	5,548	–
1.85%		13,705	–	–	50,657	–	13,743	1,531	–
1.90%		2,897	–	–	15,917	–	5,188	532	–
1.95%		9,416	–	–	30,232	–	9,946	2,560	–
2.00%		10,921	–	–	51,279	–	10,887	115	–
2.05%		5,955	–	–	62,016	–	9,335	2,323	–
2.10%		8,529	–	–	18,157	–	6,192	202	–
2.15%		3,139	–	–	23,266	–	6,852	–	–
2.20%		3,136	–	–	9,943	–	4,060	–	–
2.25%		520	–	–	24,238	–	5,728	4,874	–
2.30%		3,221	–	–	6,400	–	4,024	–	–
2.35%		1,107	–	–	14,965	–	2,206	–	–
2.40%		1,592	–	–	6,431	–	1,594	271	–
2.45%		55	–	–	1,790	–	611	–	–
2.50%		189	–	–	8,503	–	1,360	–	–
2.55%		–	–	–	1,632	–	–	–	–
2.60%		–	–	–	4,571	–	453	–	–
2.65%		–	–	–	480	–	146	–	–
2.70%		–	–	–	1,901	–	3,651	–	–
2.75%		–	–	–	130	–	–	–	–
2.80%		2	–	–	155	–	1,054	–	–
2.85%		–	–	–	–	–	111	–	–
2.90%		–	–	–	383	–	–	–	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	91	–	141	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	774,216	1,155,371	7,485,117	1,558,996	672,044	374,547	71,769	455,358


	FedAmLeadS		FedCapApS	FedMrkOp	FedQualBd	FedQualBdS	FidVIPEI	FidVIPEIS2	FidVIPGr
0.80%	$	–	–	–	86	–	12,320	–	11,036
0.95%		61	317	–	–	3,539	–	–	–
1.05%		–	96	–	–	919	–	–	–
1.10%		–	195	–	–	741	–	5,578	–
1.15%		2,790	8,683	640	–	108,424	–	324,935	–
1.20%		–	452	–	–	1,927	–	4,688	–
1.25%		2,318	2,913	20	–	44,701	–	108,251	–
1.30%		–	–	670	141,657	–	7,999,943	3,610	7,793,462
1.35%		–	–	192	–	30,519	–	73,196	–
1.40%		873	657	185	105,301	7,704	4,434,389	30,965	2,569,951
1.45%		2,422	1,611	513	–	44,196	–	137,396	–
1.50%		1,916	2,383	10	–	31,551	–	79,257	–
1.55%		8,816	5,317	1,071	–	114,213	–	314,232	–
1.60%		2,313	1,210	37	–	12,891	–	38,124	–
1.65%		2,459	5,636	258	–	57,655	–	197,293	–
1.70%		2,321	1,154	11	–	22,608	–	32,314	–
1.75%		261	946	846	–	54,628	–	156,973	–
1.80%		1,804	2,369	16,191	–	84,532	–	167,417	–
1.85%		456	1,707	169	–	23,594	–	85,301	–
1.90%		1,467	1,493	–	–	10,746	–	21,697	–
1.95%		2,360	1,216	–	–	19,702	–	41,623	–
2.00%		189	667	790	–	26,928	–	79,238	–
2.05%		1,083	3,960	–	–	21,993	–	90,845	–
2.10%		184	607	70	–	10,820	–	43,925	–
2.15%		1,817	167	–	–	20,762	–	53,945	–
2.20%		66	1,566	8	–	8,804	–	36,221	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued

FedAmLeadS

FedCapApS

FedMrkOp

FedQualBd

FedQualBdS

FidVIPEI

FidVIPEIS2

FidVIPGr

2.25%

1,027

1,856

–

9,787

–

30,397

–

2.30%

–

6,763

–

15,416

–

2.35%

234

–

5,992

–

39,969

–

2.40%

–

1,262

–

7,758

–

2.45%

–

325

–

10,527

–

2.50%

–

2,947

–

6,911

–

2.55%

206

449

–

250

–

4,580

–

2.60%

–

1,150

–

1,594

–

2.65%

–

176

–

2.70%

–

1,683

–

710

–

2.75%

–

108

–

2.80%

–

374

–

560

–

2.85%

–

124

–

183

–

2.90%

–

763

–

2.95%

–

305

–

3.00%

–

3.05%

–

3.10%

–

3.15%

–

347

–

3.25%

–

Totals

37,401

48,408

21,749

247,044

794,844

12,446,652

2,246,981

10,374,449

FidVIPGrS2

FidVIPHI

FidVIPOv

FidVIPOvR

FidVIPOvS2

FidVIPOvS2R

FidVIPAM

FidVIPCon

0.80%

–

2,817

585

1,359

–

1,933

14,468

0.95%

–

1.05%

–

1.10%

2,540

–

1,281

1,367

–

1.15%

102,616

–

30,944

111,682

–

1.20%

283

–

243

–

1.25%

32,345

–

11,947

23,097

–

1.30%

512

1,177,010

1,610,129

688,279

–

1,502

3,118,143

6,197,622

1.35%

11,962

–

21,357

–

1.40%

14,951

932,616

495,343

221,806

1,618

15,788

939,473

3,657,537

1.45%

53,549

–

5,299

51,673

–

1.50%

25,225

–

8,199

41,939

–

1.55%

106,340

–

12,154

89,003

–

1.60%

7,691

–

4,992

12,132

–

1.65%

71,901

–

9,869

40,275

–

1.70%

16,899

–

6,443

31,946

–

1.75%

50,897

–

3,503

44,818

–

1.80%

56,037

–

11,620

58,265

–

1.85%

30,725

–

6,040

22,906

–

1.90%

11,997

–

2,430

10,137

–

1.95%

13,366

–

1,289

18,731

–

2.00%

20,236

–

974

17,481

–

2.05%

81,935

–

1,198

6,082

–

2.10%

15,747

–

635

9,764

–

2.15%

18,681

–

952

11,119

–

2.20%

3,048

–

2,419

–

2.25%

10,665

–

1,778

–

2.30%

5,193

–

203

6,057

–

2.35%

12,838

–

818

–

2.40%

6,825

–

2.45%

1,496

–

364

–

2.50%

3,075

–

851

–

2.55%

15,782

–

2.60%

919

–

2.65%

–

750

–

2.70%

298

–

454

–

2.75%

144

–

2.80%

170

–

2.85%

301

–

2.90%

571

–

2.95%

–

3.00%

320

–

3.05%

–

3.10%

–

3.15%

–

3.25%

–

Totals

808,121

2,112,443

2,106,057

911,444

121,667

654,937

4,059,549

9,869,627

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	FidVIPConS2		FidVIPIGBdS	FidVIPIGBdS2	FidVIPGrOp	FidVIPMCapS	FidVIPMCapS2	FidVIPVaIS	FidVIPVaIS2
0.80%	$	–	311	–	689	322	–	1,782	–
0.95%		–	–	–	–	–	–	–	–
1.05%		–	–	–	–	–	–	–	–
1.10%		9,140	–	4,112	–	–	7,061	–	329
1.15%		549,667	–	227,722	–	–	303,678	–	48,526
1.20%		5,272	–	1,498	–	–	2,495	–	–
1.25%		188,834	–	60,092	–	–	95,912	–	14,897
1.30%		7,117	143,640	885	253,708	29,897	4,825	139,876	199
1.35%		221,047	–	66,917	–	–	100,440	–	12,917
1.40%		74,198	81,655	34,080	176,852	14,083	44,724	59,944	3,647
1.45%		250,426	–	73,318	–	–	112,926	–	11,049
1.50%		164,913	–	45,358	–	–	131,234	–	15,908
1.55%		555,786	–	204,465	–	–	328,925	–	63,476
1.60%		58,336	–	22,012	–	–	41,112	–	6,274
1.65%		274,655	–	74,120	–	–	161,286	–	41,222
1.70%		87,138	–	14,771	–	–	55,685	–	5,570
1.75%		374,178	–	253,605	–	–	243,349	–	21,438
1.80%		337,053	–	82,829	–	–	225,977	–	21,149
1.85%		160,567	–	27,605	–	–	95,318	–	17,831
1.90%		54,042	–	9,822	–	–	41,573	–	6,005
1.95%		109,825	–	43,018	–	–	73,162	–	13,861
2.00%		149,010	–	146,264	–	–	102,698	–	8,858
2.05%		173,773	–	26,313	–	–	192,349	–	15,804
2.10%		159,730	–	41,347	–	–	113,692	–	7,945
2.15%		116,887	–	90,490	–	–	78,544	–	14,784
2.20%		95,670	–	27,810	–	–	64,811	–	3,071
2.25%		71,614	–	9,894	–	–	53,557	–	10,821
2.30%		62,306	–	13,549	–	–	33,356	–	872
2.35%		79,183	–	255,273	–	–	52,637	–	9,846
2.40%		26,405	–	20,942	–	–	19,324	–	1,266
2.45%		15,577	–	6,615	–	–	20,068	–	1,822
2.50%		21,407	–	5,336	–	–	13,123	–	1,769
2.55%		14,716	–	25,391	–	–	13,926	–	1,777
2.60%		5,756	–	15,974	–	–	2,043	–	4,838
2.65%		1,913	–	1,428	–	–	1,456	–	797
2.70%		14,092	–	6,426	–	–	4,201	–	117
2.75%		6,268	–	3,004	–	–	12,347	–	–
2.80%		2,538	–	1,198	–	–	1,570	–	451
2.85%		110	–	336	–	–	–	–	–
2.90%		866	–	2,173	–	–	214	–	–
2.95%		368	–	–	–	–	276	–	203
3.00%		484	–	–	–	–	85	–	53
3.05%		–	–	108	–	–	–	–	–
3.10%		53	–	425	–	–	61	–	61
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	50	–	–	–	–	–

Totals	$	4,500,920	225,606	1,946,575	431,249	44,302	2,850,020	201,602	389,453


	FidVIPEnergyS2		FidVIPFree10S	FidVIPFree10S2	FidVIPFree20S	FidVIPFree20S2	FidVIPFree30S	FidVIPFree30S2	FICoreEq
0.80%	$	88	–	–	–	–	47	–	–
0.95%		–	–	–	–	–	–	–	–
1.05%		–	–	–	–	–	–	–	–
1.10%		1,499	–	1	–	1	–	95	–
1.15%		62,052	–	5,861	–	12,240	–	14,487	–
1.20%		1	–	–	–	–	–	–	–
1.25%		10,495	–	143	–	4,339	–	16	–
1.30%		35,418	3,663	–	3,689	–	2,215	–	–
1.35%		19,753	–	1,711	–	6,120	–	3,300	–
1.40%		23,610	5,460	1,307	1,065	2,285	58	219	–
1.45%		24,345	–	5,884	–	8,800	–	1,739	–
1.50%		8,356	–	6,728	–	391	–	228	–
1.55%		96,805	–	17,148	–	33,212	–	9,670	36
1.60%		4,250	–	5,103	–	580	–	–	–
1.65%		23,057	–	3,309	–	8,958	–	2,566	–
1.70%		3,917	–	734	–	360	–	2,369	–
1.75%		31,183	–	50,561	–	177,989	–	47,609	–
1.80%		38,513	–	7,807	–	733	–	350	–
1.85%		10,721	–	1,791	–	5,842	–	597	93
1.90%		7,451	–	465	–	713	–	–	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	FidVIPEnergyS2		FidVIPFree10S	FidVIPFree10S2	FidVIPFree20S	FidVIPFree20S2	FidVIPFree30S	FidVIPFree30S2	FICoreEq
1.95%		20,829	–	9,586	–	42,580	–	4,135	–
2.00%		21,778	–	32,942	–	36,153	–	2,298	–
2.05%		6,229	–	682	–	5,195	–	2,716	465
2.10%		33,393	–	1,906	–	6,415	–	7,427	–
2.15%		8,800	–	109,151	–	85,267	–	29,421	775
2.20%		8,970	–	8,745	–	4,381	–	–	–
2.25%		374	–	5,515	–	647	–	11,965	45
2.30%		3,456	–	165	–	2,899	–	13,814	11
2.35%		1,358	–	130,254	–	56,697	–	20,595	363
2.40%		1,664	–	562	–	11,783	–	1,176	–
2.45%		5,938	–	9,184	–	147	–	5,217	–
2.50%		705	–	62	–	625	–	747	–
2.55%		2,442	–	4,960	–	5,842	–	6,809	–
2.60%		–	–	2,107	–	1,260	–	38	–
2.65%		2,925	–	–	–	359	–	–	–
2.70%		11,787	–	2,063	–	–	–	738	–
2.75%		5,070	–	–	–	–	–	–	–
2.80%		1,920	–	–	–	–	–	–	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	–	–	3,993	–	629	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	539,152	9,123	426,437	4,754	526,806	2,320	190,970	1,788


	FHCapAp		FrVIPIncSec2	FrVIPRisDiv2	FrVIPSmCapV2	FrVIPDevMrk3	FrVIPForSec2	FrVIPForSec3	FrVIPGlInc3
0.80%	$	–	3	–	120	4	–	107	–
0.95%		–	–	3,199	4,014	–	352	2,556	–
1.05%		–	–	2,428	4,760	–	37	2,167	–
1.10%		–	693	7,288	2,282	456	519	5,155	435
1.15%		–	11,748	233,334	109,244	34,253	23,134	120,756	24,562
1.20%		–	137	4,841	952	131	645	1,460	–
1.25%		–	3,440	79,770	33,927	3,753	14,490	26,169	4,127
1.30%		–	20,968	5,439	23,060	5,401	207	6,374	8,353
1.35%		–	7,464	69,595	32,824	15,563	–	38,524	10,891
1.40%		–	28,872	25,881	34,094	5,443	4,971	24,386	11,209
1.45%		–	5,587	86,836	47,294	11,638	8,829	51,480	23,811
1.50%		–	5,499	106,955	40,780	11,230	8,371	57,438	4,342
1.55%		16	22,869	272,980	138,932	43,401	25,355	130,497	21,294
1.60%		–	3,937	31,342	18,423	2,810	13,649	23,244	909
1.65%		8	9,315	154,703	61,726	10,387	9,241	49,620	8,573
1.70%		–	599	36,452	21,777	3,297	7,393	18,049	1,165
1.75%		9	12,974	184,802	74,257	25,733	5,698	173,125	16,187
1.80%		–	44,845	138,122	64,338	20,935	15,870	63,985	8,725
1.85%		87	3,285	75,974	26,655	6,293	4,033	24,491	9,138
1.90%		–	141	29,637	8,116	1,311	4,826	8,272	290
1.95%		–	2,675	51,789	14,201	23,252	3,048	41,135	2,564
2.00%		–	8,995	81,424	29,098	10,026	1,926	79,275	7,958
2.05%		–	790	147,608	16,719	3,576	3,862	22,312	1,574
2.10%		–	13,063	67,259	11,802	16,552	3,001	29,082	11,456
2.15%		–	1,995	57,625	5,453	7,702	1,121	55,586	650
2.20%		–	13,176	50,964	17,462	6,238	217	17,834	7,533
2.25%		–	67	45,001	637	893	623	10,288	94
2.30%		16	3,072	31,532	5,772	3,835	–	15,174	2,279
2.35%		–	1,167	51,980	142	268	–	105,629	206
2.40%		–	195	9,611	464	332	–	11,334	–
2.45%		–	218	12,376	3,862	990	–	3,865	185
2.50%		–	–	17,728	51	1,349	–	977	–
2.55%		–	606	7,975	940	444	–	10,340	–
2.60%		–	133	12,561	–	–	–	6,098	–
2.65%		–	98	2,322	1,682	519	–	1,065	543
2.70%		–	61	3,993	2,629	2,384	–	3,196	–
2.75%		–	798	6,308	1,046	1,276	–	1,293	–
2.80%		–	7	1,298	1,275	808	–	161	–
2.85%		–	–	1,160	–	–	–	–	–
2.90%		–	–	182	–	–	–	1,302	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	FHCapAp		FrVIPIncSec2	FrVIPRisDiv2	FrVIPSmCapV2	FrVIPDevMrk3	FrVIPForSec2	FrVIPForSec3	FrVIPGlInc3
2.95%		–	–	555	–	–	–	–	–
3.00%		–	–	143	–	–	–	–	–
3.05%		–	–	–	–	–	–	130	–
3.10%		–	–	–	–	–	–	514	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	17	–

Totals	$	136	229,492	2,210,972	860,810	282,483	161,418	1,244,462	189,053


	GVITAstAll2		GVITBnd2	GVITGlobGr2	GVITGrowth2	GVITIntVal2	GVITIntVal3	GVITIntVal6	GVITEmMrkts
0.80%	$	1	–	25	225	–	1,312	–	48
0.95%		13	–	143	55	1,354	–	7,247	–
1.05%		424	33	63	138	95	–	4,322	–
1.10%		7,404	165	18	616	–	–	3,300	–
1.15%		93,333	9,532	9,667	18,836	7,018	–	133,025	–
1.20%		–	–	19	87	–	–	670	–
1.25%		3,698	3,613	2,833	4,279	2,190	–	19,280	–
1.30%		13,219	7,249	11,151	18,521	–	232,173	1,043	10,284
1.35%		13,663	1,976	4,306	10,092	–	–	26,619	–
1.40%		22,771	9,586	7,868	15,790	787	129,693	24,225	5,231
1.45%		3,522	1,675	2,066	4,467	1,198	–	71,837	–
1.50%		21,383	1,457	2,006	5,112	1,797	–	39,858	–
1.55%		76,426	10,968	6,230	19,489	11,631	–	146,589	–
1.60%		5,037	912	2,738	1,698	411	–	11,719	–
1.65%		6,866	7,681	2,605	6,379	1,675	–	35,174	–
1.70%		1,395	195	3,698	1,832	1,143	–	14,107	–
1.75%		114,153	8,523	10,417	47,094	409	–	170,962	–
1.80%		10,318	3,183	3,692	6,573	4,402	–	52,136	–
1.85%		2,874	278	710	1,931	2,035	–	37,928	–
1.90%		875	–	156	507	1,754	–	11,107	–
1.95%		24,059	562	5,376	7,029	644	–	41,602	–
2.00%		47,313	2,728	3,090	15,558	–	–	83,380	–
2.05%		858	354	2,266	1,242	2,457	–	21,545	–
2.10%		11,554	431	1,350	5,275	1,004	–	23,502	–
2.15%		14,606	917	1,094	11,445	154	–	60,335	–
2.20%		4,401	–	–	2,520	59	–	14,160	–
2.25%		853	–	63	1,427	–	–	3,684	–
2.30%		2,008	–	2,918	1,968	68	–	9,329	–
2.35%		17,028	52	4,034	8,833	–	–	127,333	–
2.40%		12,858	240	–	2,270	–	–	11,720	–
2.45%		580	346	3,631	633	–	–	5,878	–
2.50%		758	–	468	98	–	–	998	–
2.55%		3,199	39	–	750	–	–	30,264	–
2.60%		778	–	–	442	–	–	7,495	–
2.65%		–	–	–	12	–	–	1,016	–
2.70%		403	35	–	324	–	–	3,683	–
2.75%		–	–	–	200	–	–	1,598	–
2.80%		–	–	–	218	–	–	227	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	–	179	–	–	1,469	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	30	–	–	130	–
3.10%		–	–	–	109	–	–	512	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	20	–

Totals	$	538,631	72,730	94,701	224,283	42,285	363,178	1,261,028	15,563


	GVITEmMrkts2		GVITEmMrkts3	GVITEmMrkts6	GVITFHiInc	GVITFHiInc3	GVITIntIdx8	GVITGlFin2	GVITGlFin3
0.80%	$	–	5,417	–	–	–	–	–	363
0.95%		–	–	–	4,121	5,497	–	332	–
1.05%		–	–	–	620	3,827	219	99	–
1.10%		237	–	810	548	144	–	–	–
1.15%		19,002	–	107,440	44,032	58,427	650	4,485	–
1.20%		46	–	231	1,476	1	–	776	–
1.25%		3,654	–	14,483	22,096	15,772	342	3,149	–
1.30%		–	554,493	–	35	3,002	1,227	–	37,433
1.35%		–	–	24,621	11,917	15,372	381	128	–
1.40%		3,042	195,285	13,092	4,594	9,423	259	377	21,816

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	GVITEmMrkts2		GVITEmMrkts3	GVITEmMrkts6	GVITFHiInc	GVITFHiInc3	GVITIntIdx8	GVITGlFin2	GVITGlFin3
1.45%		3,112	–	32,098	12,973	22,002	179	998	–
1.50%		1,990	–	21,402	14,712	15,862	657	317	–
1.55%		18,336	–	122,584	65,008	50,409	553	3,643	–
1.60%		3,320	–	9,487	5,741	4,421	103	619	–
1.65%		4,056	–	33,640	31,762	27,917	51	1,313	–
1.70%		1,750	–	5,383	9,835	4,160	153	773	–
1.75%		1,821	–	44,267	16,375	18,257	450	360	–
1.80%		9,086	–	72,709	28,567	19,377	479	7,676	–
1.85%		3,883	–	19,876	15,281	12,286	226	157	–
1.90%		2,699	–	6,218	4,670	4,540	–	–	–
1.95%		1,356	–	32,053	3,303	8,735	4,801	151	–
2.00%		967	–	23,168	3,743	11,825	7	37	–
2.05%		1,884	–	11,210	2,793	9,711	384	–	–
2.10%		1,717	–	10,818	4,922	5,508	1,859	137	–
2.15%		1,728	–	10,418	2,589	3,603	1,319	12	–
2.20%		171	–	6,277	1,590	1,721	74	–	–
2.25%		2,137	–	5,953	154	3,761	346	–	–
2.30%		–	–	3,297	80	2,047	257	496	–
2.35%		–	–	604	1,320	695	–	–	–
2.40%		–	–	863	–	–	–	–	–
2.45%		771	–	4,825	–	75	19	–	–
2.50%		–	–	1,382	–	–	469	–	–
2.55%		–	–	5,291	–	–	–	–	–
2.60%		–	–	–	–	–	–	–	–
2.65%		–	–	1,329	–	–	–	–	–
2.70%		–	–	9,051	–	–	–	–	–
2.75%		–	–	2,577	–	–	–	–	–
2.80%		–	–	1,078	–	–	–	–	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	–	–	–	–	–	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	86,765	755,195	658,535	314,857	338,377	15,464	26,035	59,612


	GVITGlHlth2		GVITGlHlth3	GVITGlHlth6	GVITGlTech	GVITGlTech2	GVITGlTech3	GVITGlTech6	GVITGlUtl2
0.80%	$	–	346	–	16	–	188	–	–
0.95%		341	–	1,181	–	73	–	182	57
1.05%		–	–	1,784	–	–	–	315	–
1.10%		72	–	492	–	–	–	226	–
1.15%		4,085	–	26,132	–	3,849	–	12,278	2,166
1.20%		–	–	–	–	–	–	–	–
1.25%		7,434	–	8,256	–	3,908	–	2,612	2,355
1.30%		–	73,401	78	5,586	–	44,529	–	–
1.35%		–	–	8,987	–	–	–	1,498	–
1.40%		263	33,948	1,697	656	356	15,273	758	235
1.45%		1,136	–	13,693	–	823	–	3,752	245
1.50%		1,612	–	6,944	–	979	–	900	62
1.55%		5,478	–	29,063	–	2,083	–	13,605	2,967
1.60%		244	–	3,112	–	645	–	256	–
1.65%		2,409	–	9,009	–	1,390	–	2,497	279
1.70%		2,457	–	1,827	–	792	–	1,292	857
1.75%		798	–	12,195	–	546	–	3,589	92
1.80%		5,435	–	12,712	–	1,162	–	5,622	1,552
1.85%		2,194	–	4,160	–	1,108	–	1,129	1,365
1.90%		485	–	1,650	–	1,371	–	788	1,600
1.95%		320	–	6,252	–	1,049	–	4,781	42
2.00%		–	–	8,438	–	99	–	2,033	–
2.05%		522	–	1,576	–	75	–	1,002	–
2.10%		255	–	6,135	–	165	–	2,677	618
2.15%		8	–	791	–	623	–	1,764	–
2.20%		191	–	2,030	–	–	–	1,416	–
2.25%		–	–	177	–	–	–	–	–
2.30%		–	–	1,090	–	–	–	–	–
2.35%		–	–	141	–	–	–	319	–
2.40%		49	–	480	–	–	–	281	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	GVITGlHlth2		GVITGlHlth3	GVITGlHlth6	GVITGlTech	GVITGlTech2	GVITGlTech3	GVITGlTech6	GVITGlUtl2
2.45%		–	–	153	–	439	–	67	–
2.50%		–	–	42	–	–	–	662	–
2.55%		–	–	50	–	–	–	5,096	–
2.60%		–	–	–	–	–	–	–	–
2.65%		–	–	64	–	–	–	13	–
2.70%		–	–	452	–	–	–	90	–
2.75%		–	–	102	–	–	–	34	–
2.80%		–	–	3	–	–	–	–	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	–	–	–	–	–	–
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	35,788	107,695	170,948	6,258	21,535	59,990	71,534	14,492


	GVITGlUtl3		GVITGvtBd	GVITGrowth	GVITIntGro	GVITIntGro3	GVITIDAgg2	GVITIDCon2	GVITIDMod2
0.80%	$	155	4,159	8,868	132	2,194	4,114	217	5,499
0.95%		–	8,947	–	–	–	329	40	6,560
1.05%		–	5,367	–	–	–	390	75	9,821
1.10%		–	3,409	–	–	–	2,358	376	26,369
1.15%		–	252,374	–	–	–	205,596	188,985	1,404,705
1.20%		–	1,487	–	–	–	3,431	3,372	18,723
1.25%		–	56,018	–	–	–	60,268	42,894	363,819
1.30%		66,848	1,577,605	604,246	–	200,397	162,336	88,057	530,813
1.35%		–	56,436	–	–	–	63,577	33,582	357,152
1.40%		41,715	914,991	249,348	1,513	97,461	112,292	126,990	630,794
1.45%		–	107,024	–	–	–	52,265	94,487	338,771
1.50%		–	58,182	–	–	–	79,884	35,759	324,049
1.55%		–	213,004	–	–	–	185,594	263,682	1,327,167
1.60%		–	12,390	–	–	–	39,731	17,185	154,107
1.65%		–	75,229	–	–	–	818,081	181,235	1,815,963
1.70%		–	20,973	–	–	–	66,167	18,646	233,596
1.75%		–	234,580	–	–	–	990,735	154,528	2,784,590
1.80%		–	79,497	–	–	–	101,764	170,873	657,692
1.85%		–	33,077	–	–	–	236,547	44,089	434,684
1.90%		–	17,232	–	–	–	417,838	62,678	411,916
1.95%		–	45,237	–	–	–	421,934	33,727	673,922
2.00%		–	148,728	–	–	–	678,082	126,808	2,410,365
2.05%		–	33,187	–	–	–	568,862	55,192	752,034
2.10%		–	33,701	–	–	–	271,215	32,436	332,504
2.15%		–	86,635	–	–	–	464,741	40,934	1,143,249
2.20%		–	31,347	–	–	–	127,305	35,796	514,703
2.25%		–	7,387	–	–	–	1,315,667	30,410	781,904
2.30%		–	7,798	–	–	–	282,945	20,212	178,548
2.35%		–	255,016	–	–	–	1,147,945	83,168	3,410,219
2.40%		–	23,571	–	–	–	52,914	3,677	179,198
2.45%		–	6,031	–	–	–	351,371	21,181	203,538
2.50%		–	1,813	–	–	–	53,374	8,163	180,056
2.55%		–	25,825	–	–	–	285,051	8,186	507,521
2.60%		–	16,196	–	–	–	201,104	5,125	193,211
2.65%		–	1,529	–	–	–	68,151	5,084	29,984
2.70%		–	7,027	–	–	–	112,679	3,748	145,325
2.75%		–	3,102	–	–	–	9,162	–	20,021
2.80%		–	850	–	–	–	56,248	–	12,509
2.85%		–	–	–	–	–	4,916	–	10,899
2.90%		–	2,129	–	–	–	31,507	3,825	39,580
2.95%		–	51	–	–	–	10,052	–	6,993
3.00%		–	–	–	–	–	21,000	–	1,974
3.05%		–	102	–	–	–	4,224	–	2,743
3.10%		–	393	–	–	–	9,855	–	13,291
3.15%		–	–	–	–	–	7,110	–	2,791
3.25%		–	51	–	–	–	–	–	10,440

Totals	$	108,718	4,469,687	862,462	1,645	300,052	10,160,711	2,045,422	23,594,312

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	GVITIDModAg2		GVITIDModCon2	GVITJPBal	GVITMdCpGr	GVITMdCpGr2	GVITMidCap	GVITMyMkt	GVITNWFund
0.80%	$	5,367	1,414	41	405	–	4,362	14,469	38,345
0.95%		4,327	715	–	–	3,619	2,620	–	–
1.05%		17,503	1,675	–	–	2,020	375	–	–
1.10%		18,549	1,125	–	–	2,215	1,047	4,020	–
1.15%		1,012,144	525,543	–	–	104,771	117,570	319,189	–
1.20%		37,875	2,107	–	–	965	1,870	24	–
1.25%		250,340	140,493	–	–	18,018	46,065	71,124	–
1.30%		412,616	148,522	27,575	150,280	180	810,685	2,517,667	3,035,876
1.35%		311,857	114,877	–	–	25,190	28,059	68,092	–
1.40%		394,965	201,208	13,228	73,495	14,588	378,850	1,599,890	1,433,229
1.45%		181,325	184,105	–	–	26,727	49,104	176,293	–
1.50%		203,261	125,581	–	–	22,077	21,887	52,736	–
1.55%		879,429	479,816	–	–	95,975	117,611	396,466	–
1.60%		83,333	44,451	–	–	6,097	14,705	32,776	–
1.65%		1,740,830	320,797	–	–	38,344	66,757	110,455	–
1.70%		161,584	45,007	–	–	8,924	16,448	20,474	–
1.75%		3,359,675	523,580	–	–	185,738	39,669	255,793	–
1.80%		447,596	393,005	–	–	29,582	61,632	312,333	–
1.85%		480,965	168,057	–	–	19,933	21,313	71,750	–
1.90%		480,421	133,219	–	–	7,776	4,937	14,143	–
1.95%		906,840	118,843	–	–	39,326	21,401	45,315	–
2.00%		939,455	265,201	–	–	89,864	23,517	141,730	–
2.05%		815,532	135,897	–	–	20,707	46,462	58,101	–
2.10%		550,044	94,981	–	–	22,932	8,899	69,738	–
2.15%		1,269,665	158,039	–	–	84,757	11,358	63,503	–
2.20%		312,062	62,929	–	–	17,278	8,676	51,708	–
2.25%		1,018,173	112,450	–	–	17,118	6,891	15,912	–
2.30%		321,495	29,647	–	–	7,381	6,023	25,958	–
2.35%		1,453,471	183,280	–	–	160,451	6,696	127,389	–
2.40%		184,841	30,461	–	–	17,417	3,666	23,746	–
2.45%		217,744	6,461	–	–	8,946	2,907	13,447	–
2.50%		153,727	17,609	–	–	5,123	690	2,507	–
2.55%		288,456	63,421	–	–	16,172	3,319	34,034	–
2.60%		129,397	16,065	–	–	10,270	6	7,487	–
2.65%		55,606	–	–	–	791	219	2,490	–
2.70%		105,003	53,318	–	–	4,421	3,960	14,704	–
2.75%		25,209	1,919	–	–	2,032	86	5,717	–
2.80%		46,976	6,654	–	–	326	412	3,667	–
2.85%		3,912	277	–	–	–	–	450	–
2.90%		45,860	4,774	–	–	1,705	704	1,017	–
2.95%		5,393	239	–	–	–	271	–	–
3.00%		33,337	1,169	–	–	–	77	–	–
3.05%		12,329	–	–	–	139	–	13	–
3.10%		13,106	–	–	–	563	–	63	–
3.15%		1,809	–	–	–	–	–	–	–
3.25%		1,204	–	–	–	27	–	13	–

Totals	$	19,394,608	4,918,931	40,844	224,180	1,140,485	1,961,806	6,746,403	4,507,450


	GVITNWFund2		GVITNWLead3	GVITSmCapGr	GVITSmCapGr2	GVITSmCapVal	GVITSmCapVal2	GVITSmComp	GVITSmComp2
0.80%	$	–	430	354	–	6,999	–	16,774	–
0.95%		–	–	–	–	–	1,778	–	6,361
1.05%		–	–	–	–	–	481	–	2,736
1.10%		2,810	–	–	1,007	–	587	–	2,283
1.15%		131,216	–	–	42,720	–	91,114	–	163,661
1.20%		487	–	–	–	–	272	–	1,030
1.25%		16,351	–	–	9,551	–	41,726	–	63,193
1.30%		230	49,118	127,520	–	1,015,966	–	1,673,197	2,566
1.35%		24,895	–	–	6,271	–	23,632	–	55,804
1.40%		19,410	14,457	54,066	3,802	472,195	6,914	998,902	14,981
1.45%		22,885	–	–	13,953	–	41,277	–	72,645
1.50%		33,089	–	–	5,619	–	14,375	–	43,711
1.55%		110,735	–	–	32,947	–	100,092	–	156,119
1.60%		11,092	–	–	1,663	–	9,273	–	12,678
1.65%		40,333	–	–	13,697	–	26,795	–	52,115
1.70%		10,988	–	–	8,079	–	8,365	–	30,845
1.75%		271,247	–	–	18,500	–	38,957	–	101,837
1.80%		33,051	–	–	13,475	–	35,690	–	90,227
1.85%		20,849	–	–	4,786	–	15,328	–	32,145
1.90%		9,896	–	–	4,234	–	9,493	–	20,198

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	GVITNWFund2		GVITNWLead3	GVITSmCapGr	GVITSmCapGr2	GVITSmCapVal	GVITSmCapVal2	GVITSmComp	GVITSmComp2
1.95%		51,658	–	–	14,955	–	16,941	–	20,737
2.00%		134,179	–	–	4,042	–	14,405	–	59,660
2.05%		16,562	–	–	7,375	–	11,565	–	20,008
2.10%		29,794	–	–	2,594	–	7,372	–	49,652
2.15%		122,531	–	–	2,945	–	5,134	–	29,267
2.20%		24,613	–	–	1,677	–	1,004	–	31,749
2.25%		9,005	–	–	2,572	–	5,108	–	1,405
2.30%		7,768	–	–	1,026	–	4,631	–	13,172
2.35%		299,401	–	–	553	–	429	–	57,413
2.40%		25,490	–	–	–	–	134	–	4,844
2.45%		8,800	–	–	22	–	4,928	–	3,154
2.50%		2,085	–	–	337	–	12	–	404
2.55%		30,285	–	–	–	–	36	–	6,571
2.60%		17,885	–	–	–	–	–	–	3,340
2.65%		1,171	–	–	–	–	21	–	924
2.70%		8,323	–	–	–	–	12	–	1,530
2.75%		3,179	–	–	–	–	–	–	565
2.80%		535	–	–	–	–	–	–	105
2.85%		–	–	–	–	–	–	–	–
2.90%		3,182	–	–	–	–	–	–	598
2.95%		255	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		244	–	–	–	–	–	–	42
3.10%		967	–	–	–	–	–	–	168
3.15%		–	–	–	–	–	–	–	–
3.25%		57	–	–	–	–	–	–	11

Totals	$	1,557,533	64,005	181,940	218,402	1,495,160	537,881	2,688,873	1,230,454


	GVITUSGro2		GVITUSGro3	GVITVKVal2	GVITMltSec	GVITWLead3	JanBal	JanForty	JanGlTechS2
0.80%	$	–	311	287	635	103	–	1,280	388
0.95%		–	–	889	5,805	–	8,213	7,257	–
1.05%		–	–	340	4,470	–	4,984	7,078	–
1.10%		213	–	4,329	664	–	95	9	–
1.15%		36,436	–	141,997	70,610	–	23,350	15,098	–
1.20%		–	–	486	–	–	375	153	–
1.25%		9,925	–	30,309	26,645	–	9,895	10,505	–
1.30%		–	66,285	80,693	181,832	34,398	–	246,828	56,782
1.35%		12,401	–	30,933	24,142	–	16	177	–
1.40%		2,233	49,270	53,816	127,792	21,434	2,647	105,047	9,124
1.45%		14,873	–	34,616	56,170	–	8,441	12,102	–
1.50%		15,582	–	106,777	16,261	–	9,244	2,261	–
1.55%		62,969	–	143,799	72,465	–	44,842	25,100	–
1.60%		4,319	–	18,939	8,113	–	3,217	3,294	–
1.65%		18,830	–	63,301	38,159	–	15,306	7,953	–
1.70%		4,732	–	51,211	15,186	–	4,782	10,525	–
1.75%		38,134	–	305,949	51,958	–	19,009	4,568	–
1.80%		26,453	–	65,090	32,515	–	12,385	5,953	–
1.85%		10,700	–	37,135	15,254	–	1,343	1,937	–
1.90%		6,976	–	23,582	5,699	–	336	477	–
1.95%		5,956	–	74,447	7,736	–	4,162	1,663	–
2.00%		5,810	–	145,034	15,668	–	3,067	1,843	–
2.05%		10,627	–	32,584	8,092	–	8,407	5,282	–
2.10%		9,595	–	46,894	7,319	–	600	265	–
2.15%		7,973	–	120,054	4,321	–	1,638	617	–
2.20%		7,953	–	40,028	1,174	–	51	1,840	–
2.25%		4,125	–	18,090	7,986	–	1,424	88	–
2.30%		1,447	–	20,806	97	–	1,261	1,806	–
2.35%		3,914	–	275,112	534	–	489	20	–
2.40%		2,051	–	25,476	–	–	–	55	–
2.45%		6,000	–	12,609	–	–	3,136	219	–
2.50%		6,529	–	6,970	–	–	19	118	–
2.55%		3,985	–	30,725	–	–	187	67	–
2.60%		108	–	15,653	–	–	–	155	–
2.65%		–	–	3,471	–	–	–	–	–
2.70%		145	–	7,280	82	–	–	–	–
2.75%		103	–	8,960	–	–	–	–	–
2.80%		243	–	1,891	–	–	–	154	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	3,850	–	–	–	–	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	GVITUSGro2		GVITUSGro3	GVITVKVal2	GVITMltSec	GVITWLead3	JanBal	JanForty	JanGlTechS2
2.95%		256	–	248	–	–	–	–	–
3.00%		–	–	406	–	–	–	–	–
3.05%		–	–	216	–	–	–	–	–
3.10%		–	–	865	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	47	–	–	–	–	–

Totals	$	341,596	115,866	2,086,194	807,384	55,935	192,921	481,794	66,294


	JanGlTech		JanRMgCore	JanIntGroS2	JanIntGro	JPMSTMidCap	MFSInvGrStS	MFSValS	MTBLgCapGr2
0.80%	$	60	–	2,405	589	845	–	18	–
0.95%		–	5,761	23,063	841	–	588	–	–
1.05%		–	3,457	11,865	349	–	–	–	–
1.10%		–	–	1,860	70	–	1,369	8,529	–
1.15%		–	3,289	45,761	9,124	–	34,408	52,865	3,109
1.20%		–	–	43	–	–	1,393	499	–
1.25%		–	2,045	12,059	4,536	–	15,147	21,708	3,418
1.30%		35,954	–	348,816	99,977	73,878	848	15,847	–
1.35%		–	552	7,788	–	–	4,849	13,636	79
1.40%		23,553	438	119,773	53,477	231,647	3,987	30,813	122
1.45%		–	798	15,999	1,076	–	9,319	30,559	612
1.50%		–	9,531	6,562	1,935	–	42,619	33,903	1,092
1.55%		–	8,060	57,727	8,157	–	50,552	73,874	2
1.60%		–	1,197	3,328	5,493	–	9,204	8,002	2,128
1.65%		–	2,859	12,370	1,477	–	25,096	29,573	1,185
1.70%		–	1,411	7,165	3,623	–	10,870	8,907	589
1.75%		–	2,711	45,878	1,406	–	31,622	61,651	195
1.80%		–	15,709	16,766	5,903	–	31,067	46,234	–
1.85%		–	4,044	6,186	2,358	–	21,789	26,478	–
1.90%		–	83	5,839	–	–	5,701	8,643	777
1.95%		–	374	9,172	979	–	8,344	14,151	119
2.00%		–	383	22,228	843	–	17,494	22,998	–
2.05%		–	635	18,555	1,908	–	23,072	28,393	–
2.10%		–	423	7,997	792	–	12,861	17,824	–
2.15%		–	2,041	19,018	271	–	7,815	15,550	–
2.20%		–	749	5,444	–	–	4,635	9,757	–
2.25%		–	1,367	1,216	–	–	7,014	8,181	–
2.30%		–	217	1,447	–	–	5,779	6,172	–
2.35%		–	163	42,905	–	–	3,864	16,066	241
2.40%		–	249	3,569	–	–	1,576	4,295	–
2.45%		–	–	2,781	290	–	2,210	2,681	–
2.50%		–	22	254	–	–	1,175	1,603	–
2.55%		–	–	12,358	–	–	456	3,231	–
2.60%		–	–	2,639	–	–	174	4,402	–
2.65%		–	–	210	–	–	153	118	–
2.70%		–	–	1,058	–	–	252	3,562	–
2.75%		–	–	441	–	–	164	194	–
2.80%		–	–	68	–	–	52	623	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	397	–	–	–	–	–
2.95%		–	–	–	–	–	197	106	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	31	–	–	–	–	–
3.10%		–	–	110	–	–	–	–	–
3.15%		–	–	–	–	–	174	196	–
3.25%		–	–	12	–	–	–	–	–

Totals	$	59,567	68,568	903,163	205,474	306,370	397,889	631,842	13,668


	MTBLgCapV2		MTBAggGr2	MTBConGr2	MTBModGr2	NBAMTFasc	NBAMTGro	NBAMTGuard	NBAMTInt
0.80%	$	–	–	–	–	1	3,237	768	16
0.95%		–	–	–	–	692	–	–	–
1.05%		–	–	–	–	47	–	–	–
1.10%		–	–	–	–	1,012	–	–	3,346
1.15%		2,242	80	564	19,110	8,868	–	–	83,405
1.20%		–	–	–	–	56	–	–	308
1.25%		4,618	–	81	24,952	3,783	–	–	7,944
1.30%		–	–	–	–	1,015	1,591,156	156,550	4,912
1.35%		774	2,390	221	5,510	4,150	–	–	17,010
1.40%		98	–	–	2,019	1,379	373,099	94,892	21,100

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	MTBLgCapV2		MTBAggGr2	MTBConGr2	MTBModGr2	NBAMTFasc	NBAMTGro	NBAMTGuard	NBAMTInt
1.45%		611	–	–	129	4,383	–	–	18,341
1.50%		618	–	–	1,199	3,338	–	–	18,708
1.55%		2	–	–	3,445	15,146	–	–	78,926
1.60%		2,343	–	–	19,889	2,205	–	–	7,037
1.65%		843	–	–	5,562	8,061	–	–	20,084
1.70%		1,486	–	–	11,303	1,503	–	–	7,903
1.75%		2,277	787	132	12,797	9,603	–	–	224,770
1.80%		–	–	–	–	3,453	–	–	18,449
1.85%		172	75	–	822	2,243	–	–	13,766
1.90%		140	–	–	783	2,374	–	–	3,773
1.95%		266	–	–	5,509	3,603	–	–	53,160
2.00%		–	–	–	229	4,504	–	–	97,590
2.05%		–	–	–	–	4,978	–	–	13,377
2.10%		–	–	–	–	1,717	–	–	27,765
2.15%		–	–	–	–	1,333	–	–	101,538
2.20%		95	–	–	674	1,780	–	–	17,516
2.25%		–	–	–	–	–	–	–	6,596
2.30%		–	–	–	–	402	–	–	6,458
2.35%		262	–	–	271	–	–	–	197,303
2.40%		–	–	–	–	455	–	–	19,727
2.45%		–	–	–	–	–	–	–	6,785
2.50%		–	–	–	–	186	–	–	1,924
2.55%		–	–	–	–	–	–	–	19,531
2.60%		–	–	–	371	–	–	–	11,631
2.65%		–	–	–	–	–	–	–	721
2.70%		–	–	–	–	–	–	–	5,927
2.75%		–	–	–	–	–	–	–	2,555
2.80%		–	–	–	–	–	–	–	302
2.85%		–	–	–	–	–	–	–	–
2.90%		–	–	–	–	–	–	–	2,406
2.95%		–	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	–	–	–	–	237
3.10%		–	–	–	–	–	–	–	941
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	34

Totals	$	16,847	3,332	998	114,574	92,270	1,967,492	252,210	1,143,822


	NBAMTLMat		NBAMTMCGrS	NBAMTPart	NBAMTRegS	NBAMSocRes	OppGlSec3	OppGlSec4	OppBal
0.80%	$	251	–	5,837	1	176	2,238	–	2,637
0.95%		10,554	990	–	–	8,490	–	10,363	–
1.05%		5,131	1,423	–	–	4,285	–	9,146	–
1.10%		5,539	164	–	3,292	8,317	–	3,313	–
1.15%		141,985	21,262	–	15,165	145,555	–	221,912	–
1.20%		1,626	38	–	–	367	–	1,201	–
1.25%		28,547	10,660	–	2,806	15,077	–	62,790	–
1.30%		540,826	161	1,653,634	2,443	46,657	1,110,417	2,104	1,189,431
1.35%		21,527	–	–	8,404	34,914	–	92,864	–
1.40%		362,226	2,146	1,197,261	3,158	35,810	350,450	20,800	729,649
1.45%		92,818	7,455	–	7,731	38,142	–	97,092	–
1.50%		43,592	3,341	–	2,496	39,143	–	41,540	–
1.55%		142,060	20,498	–	19,852	122,944	–	170,325	–
1.60%		11,447	2,942	–	2,036	10,099	–	15,673	–
1.65%		60,959	11,325	–	6,055	58,970	–	84,169	–
1.70%		22,833	5,944	–	1,478	12,814	–	18,467	–
1.75%		192,138	4,797	–	17,801	355,886	–	101,405	–
1.80%		59,534	12,081	–	8,153	37,386	–	82,061	–
1.85%		43,843	5,726	–	2,459	20,661	–	38,184	–
1.90%		14,257	2,430	–	1,137	7,128	–	9,304	–
1.95%		28,346	3,224	–	9,252	61,770	–	26,208	–
2.00%		114,805	1,451	–	4,468	160,194	–	39,274	–
2.05%		17,845	7,686	–	2,053	27,457	–	13,824	–
2.10%		25,751	915	–	1,476	39,417	–	27,822	–
2.15%		57,777	1,429	–	8,911	144,350	–	11,565	–
2.20%		19,424	2,534	–	626	38,073	–	18,806	–
2.25%		13,634	854	–	579	10,962	–	2,053	–
2.30%		5,156	1,030	–	237	13,442	–	4,924	–
2.35%		196,065	74	–	1,671	343,668	–	2,240	–
2.40%		14,905	116	–	914	37,483	–	1,917	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued

NBAMTLMat

NBAMTMCGrS

NBAMTPart

NBAMTRegS

NBAMSocRes

OppGlSec3

OppGlSec4

OppBal

2.45%

3,897

173

–

1,513

10,116

–

2.50%

1,069

212

–

5,464

–

1,311

–

2.55%

20,438

–

836

34,146

–

2.60%

12,580

–

20,899

–

2.65%

1,551

–

299

1,668

–

2.70%

4,621

–

9,662

–

2.75%

2,381

–

3,730

–

2.80%

330

–

808

–

2.85%

–

2.90%

1,288

–

3,593

–

2.95%

–

3.00%

–

3.05%

–

283

–

3.10%

160

–

1,116

–

3.15%

–

3.25%

–

Totals

2,343,818

133,144

2,856,732

137,332

1,971,303

1,463,105

1,232,751

1,921,717

OppCapAp

OppCapApS

OppBdFd

OppGlSec

OppGlSecS

OppHighInc

OppHighIncS

OppMSt

0.80%

3,932

–

1,295

2,874

–

597

0.95%

–

1,519

–

371

–

3,810

–

1.05%

–

1,201

–

240

–

2,696

–

1.10%

–

2,325

–

558

–

659

–

1.15%

–

136,013

–

50,564

–

69,397

–

1.20%

–

1,865

–

1,208

–

1,147

–

1.25%

–

62,874

–

50,886

–

29,841

–

1.30%

997,935

1,162

950,163

2,459,134

3,123

3,377

–

265,399

1.35%

–

33,231

–

22,153

–

1.40%

453,305

12,043

711,447

1,564,970

10,585

614

21,843

109,780

1.45%

–

61,414

–

21,064

–

95,979

–

1.50%

–

33,944

–

11,628

–

13,529

–

1.55%

–

147,927

–

52,500

–

108,505

–

1.60%

–

13,017

–

3,573

–

6,709

–

1.65%

–

74,831

–

24,987

–

31,813

–

1.70%

–

17,819

–

6,741

–

10,204

–

1.75%

–

72,536

–

13,307

–

39,053

–

1.80%

–

65,669

–

31,837

–

65,213

–

1.85%

–

31,336

–

10,826

–

14,693

–

1.90%

–

13,622

–

6,177

–

6,898

–

1.95%

–

26,436

–

2,144

–

3,295

–

2.00%

–

29,064

–

1,753

–

23,781

–

2.05%

–

47,769

–

5,823

–

11,645

–

2.10%

–

12,645

–

6,344

–

12,222

–

2.15%

–

21,224

–

1,764

–

2,314

–

2.20%

–

12,962

–

11,524

–

2.25%

–

16,678

–

165

–

1,748

–

2.30%

–

4,943

–

283

–

511

–

2.35%

–

16,670

–

779

–

2.40%

–

2,976

–

215

–

2.45%

–

3,836

–

592

–

2.50%

–

3,913

–

2.55%

–

1,166

–

422

–

2.60%

–

2,167

–

2.65%

–

103

–

373

–

2.70%

–

184

–

1,791

–

2.75%

–

1,079

–

2.80%

–

505

–

2.85%

–

2.90%

–

249

–

2.95%

–

3.00%

–

3.05%

–

3.10%

–

3.15%

–

3.25%

–

Totals

1,455,172

987,425

1,662,905

4,026,978

318,451

3,991

616,938

375,776

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	OppMStS		OppMStSCap	OppMStSCapS	OppMidCap	PioSmCapV2	PioSmCapV	PVTGroInc	PVTIntEq
0.80%	$	–	8	–	1,210	–	–	–	–
0.95%		2,001	–	1,017	–	2,967	4,321	713	–
1.05%		670	–	1,003	–	2,439	3,690	265	–
1.10%		4,836	–	2,482	–	–	–	592	–
1.15%		183,151	–	77,166	–	–	–	17,893	2,793
1.20%		1,701	–	202	–	–	–	–	–
1.25%		43,875	–	19,169	–	–	–	5,073	1,535
1.30%		703	6,229	90	227,058	–	–	–	–
1.35%		46,189	–	25,549	–	–	–	2,417	–
1.40%		30,990	2,267	7,947	77,480	–	9	436	1,373
1.45%		53,964	–	27,840	–	–	–	4,118	1,509
1.50%		61,492	–	24,655	–	–	–	4,209	2,366
1.55%		201,859	–	93,594	–	–	–	24,219	5,593
1.60%		20,233	–	8,529	–	–	–	1,864	116
1.65%		87,267	–	25,939	–	–	–	19,834	2,057
1.70%		36,598	–	10,075	–	–	–	2,052	1,510
1.75%		333,036	–	87,576	–	–	–	9,068	1,018
1.80%		91,376	–	53,513	–	–	–	9,256	2,319
1.85%		34,641	–	12,160	–	–	–	2,934	651
1.90%		16,013	–	4,152	–	–	–	1,198	125
1.95%		66,254	–	22,516	–	–	–	1,745	–
2.00%		165,138	–	39,535	–	–	–	6,225	183
2.05%		40,231	–	7,373	–	–	–	5,746	670
2.10%		44,803	–	19,464	–	–	–	4,629	93
2.15%		153,184	–	32,207	–	–	–	5,605	–
2.20%		33,383	–	7,318	–	–	–	616	–
2.25%		19,833	–	3,116	–	–	–	4,188	–
2.30%		13,687	–	4,243	–	–	–	613	–
2.35%		314,654	–	68,307	–	–	–	1,210	–
2.40%		29,682	–	6,355	–	–	–	646	440
2.45%		11,472	–	2,454	–	–	–	341	–
2.50%		5,144	–	835	–	–	–	725	–
2.55%		32,271	–	6,987	–	–	–	2	–
2.60%		20,116	–	3,895	–	–	–	486	–
2.65%		1,812	–	567	–	–	–	–	32
2.70%		11,293	–	1,953	–	–	–	9	–
2.75%		5,366	–	736	–	–	–	47	–
2.80%		1,109	–	250	–	–	–	120	–
2.85%		1,173	–	–	–	–	–	–	–
2.90%		3,277	–	796	–	–	–	–	–
2.95%		56	–	–	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		260	–	63	–	–	–	–	–
3.10%		1,023	–	252	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		60	–	11	–	–	–	–	–

Totals	$	2,225,876	8,504	711,891	305,748	5,406	8,020	139,094	24,383


	PVTVoyII		TRoeBlChip2	TRowEqInc2	TRowLtdTBd2	VEWrldBdR1	VEWrldBd	VEWrldEMktR1	VEWrldEMkt
0.80%	$	–	49	337	–	49	71	1,304	1,455
0.95%		40	–	–	–	–	–	–	–
1.05%		380	–	–	–	–	–	–	–
1.10%		4	483	621	170	–	–	–	–
1.15%		4,903	26,643	48,230	11,798	–	–	–	–
1.20%		–	–	–	1	–	–	–	–
1.25%		3,943	2,414	6,170	976	–	–	–	–
1.30%		–	4,726	14,529	1,558	62,353	220,364	199,347	349,298
1.35%		380	6,469	30,576	3,633	–	–	–	–
1.40%		74	8,942	14,956	2,203	42,966	104,055	63,724	187,208
1.45%		1,383	8,243	37,555	4,597	–	–	–	–
1.50%		2,317	12,146	11,032	2,006	–	–	–	–
1.55%		7,123	40,357	61,733	11,618	–	–	–	–
1.60%		281	1,861	7,073	1,088	–	–	–	–
1.65%		5,159	4,934	20,760	8,895	–	–	–	–
1.70%		705	1,891	6,160	980	–	–	–	–
1.75%		1,705	19,948	56,742	19,829	–	–	–	–
1.80%		1,714	9,787	25,171	4,370	–	–	–	–
1.85%		1,458	6,414	16,544	338	–	–	–	–
1.90%		499	978	880	294	–	–	–	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


Continued	PVTVoyII		TRoeBlChip2	TRowEqInc2	TRowLtdTBd2	VEWrldBdR1	VEWrldBd	VEWrldEMktR1	VEWrldEMkt
1.95%		334	2,535	16,005	1,395	–	–	–	–
2.00%		1,967	17,728	12,628	5,558	–	–	–	–
2.05%		3,880	2,673	3,041	684	–	–	–	–
2.10%		261	7,630	9,233	3,814	–	–	–	–
2.15%		751	11,293	15,004	5,278	–	–	–	–
2.20%		751	5,827	11,604	2,016	–	–	–	–
2.25%		1,521	1,513	2,165	–	–	–	–	–
2.30%		906	1,772	5,477	147	–	–	–	–
2.35%		892	5,230	16,103	1,986	–	–	–	–
2.40%		964	1,488	1,154	987	–	–	–	–
2.45%		325	1,171	1,188	58	–	–	–	–
2.50%		570	80	465	46	–	–	–	–
2.55%		51	179	294	282	–	–	–	–
2.60%		459	107	22	–	–	–	–	–
2.65%		6	170	94	42	–	–	–	–
2.70%		227	1,059	831	163	–	–	–	–
2.75%		42	–	–	–	–	–	–	–
2.80%		127	12	141	7	–	–	–	–
2.85%		–	–	–	–	–	–	–	–
2.90%		–	69	–	–	–	–	–	–
2.95%		–	–	48	–	–	–	–	–
3.00%		–	–	–	–	–	–	–	–
3.05%		–	–	–	–	–	–	–	–
3.10%		–	–	–	–	–	–	–	–
3.15%		–	–	–	–	–	–	–	–
3.25%		–	–	–	–	–	–	–	–

Totals	$	46,102	216,821	454,566	96,817	105,368	324,490	264,375	537,961



	VEWrldHAsR1		VEWrldHAs	VKCorPlus	VKCorPlus2	VKEmMkt	VKEmMkt2	VKUSRealEst	VKUSRealEst2
0.80%	$	1,162	2,950	1	–	236	–	9,046	–
0.95%		–	–	–	1,443	–	–	–	6,912
1.05%		–	–	–	1,096	–	–	–	3,517
1.10%		–	–	–	2,278	–	316	–	4,356
1.15%		–	–	–	69,602	–	5,527	–	237,490
1.20%		–	–	–	748	–	–	–	640
1.25%		–	–	–	13,383	–	4,477	–	56,902
1.30%		328,167	477,854	3,636	570	94,793	–	1,684,876	1,000
1.35%		–	–	–	19,662	–	–	–	66,610
1.40%		138,740	191,554	1,579	14,153	45,547	256	946,844	23,429
1.45%		–	–	–	28,479	–	3,362	–	75,151
1.50%		–	–	–	39,207	–	4,601	–	49,358
1.55%		–	–	–	64,757	–	5,944	–	296,335
1.60%		–	–	–	6,469	–	588	–	19,215
1.65%		–	–	–	31,776	–	903	–	84,711
1.70%		–	–	–	16,402	–	917	–	21,573
1.75%		–	–	–	170,564	–	697	–	82,802
1.80%		–	–	–	27,652	–	1,903	–	127,555
1.85%		–	–	–	18,069	–	1,774	–	52,028
1.90%		–	–	–	8,455	–	776	–	16,994
1.95%		–	–	–	30,438	–	310	–	18,862
2.00%		–	–	–	99,872	–	22	–	36,807
2.05%		–	–	–	12,157	–	888	–	24,233
2.10%		–	–	–	15,260	–	1,778	–	24,933
2.15%		–	–	–	67,135	–	688	–	6,629
2.20%		–	–	–	20,962	–	–	–	17,318
2.25%		–	–	–	8,016	–	–	–	2,750
2.30%		–	–	–	8,527	–	–	–	2,808
2.35%		–	–	–	196,458	–	–	–	662
2.40%		–	–	–	15,053	–	–	–	982
2.45%		–	–	–	5,202	–	9	–	8,222
2.50%		–	–	–	1,323	–	–	–	98
2.55%		–	–	–	19,859	–	–	–	16,893
2.60%		–	–	–	12,200	–	–	–	–
2.65%		–	–	–	1,120	–	–	–	183
2.70%		–	–	–	4,638	–	–	–	21
2.75%		–	–	–	2,245	–	–	–	–
2.80%		–	–	–	373	–	–	–	170
2.85%		–	–	–	85	–	–	–	–
2.90%		–	–	–	1,700	–	–	–	–

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)

Continued

VEWrldHAsR1

VEWrldHAs

VKCorPlus

VKCorPlus2

VKEmMkt

VKEmMkt2

VKUSRealEst

VKUSRealEst2

2.95%

–

3.00%

–

3.05%

–

3.10%

–

339

–

3.15%

–

3.25%

–

Totals

468,069

672,358

5,216

1,057,853

140,576

35,736

2,640,766

1,388,149

VicDivrStk

WFDisc

WFLrgCoGro

WFMnMrkt

WFOpp

WFTotRetBd

0.80%

–

671

–

5,666

–

0.95%

–

1.05%

–

1.10%

–

1.15%

1,006

–

246

1.20%

–

1.25%

4,858

–

1.30%

–

656,535

–

3,371,207

–

1.35%

920

–

1.40%

–

276,687

1,300

1,273,509

–

1.45%

–

1.50%

1,206

–

1.55%

–

1.60%

582

–

1.65%

354

–

1.70%

278

–

1.75%

627

–

1.80%

772

–

1.85%

384

–

1.90%

–

359

–

1.95%

673

–

2.00%

–

229

–

2.05%

–

2.10%

900

–

712

–

2.15%

–

2.20%

–

1,343

–

2.25%

–

2.30%

–

2.35%

–

2.40%

–

2.45%

–

2.50%

–

2.55%

–

2.60%

–

2.65%

–

2.70%

–

2.75%

–

2.80%

–

2.85%

–

2.90%

–

2.95%

–

3.00%

–

3.05%

–

3.10%

–

3.15%

–

3.25%

–

Totals $

12,624

933,893

2,756

1,369

4,650,382

246

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (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 $258,453,443 and $281,754,798, respectively, and total transfers from the Account to the fixed account were $98,329,606 and $86,585,725, 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 contracts with the Extra Value option, the Company contributed $19,726,148 and $11,235,861 to the Account in the form of bonus credits to the 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 the time the related purchase payment from the contract owner is received.

For guaranteed minimum death benefits, the Company contributed $1,024,406 and $1,705,112 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.

For Purchase Payment Credits, the Company contributed $4,208,817 and $2,000,683 to the Account in the form of additional credit to the 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, as applicable, are applied to a contract when cumulative purchase payments reach certain aggregate levels.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (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, and 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 Variable Insurance Funds – AIM V.I. Basic Value Fund – Series II
2006	0.95% to 2.95%	3,021,464	$ 14.14 to 15.42	$52,769,013	0.12%	11.87% to 9.62%
2005	0.95% to 2.95%	3,126,816	12.64 to 14.06	49,174,442	0.00%	4.43%to 2.33%
2004	0.95% to 2.80%	2,372,812	12.11 to 13.78	35,865,728	0.00%	9.79% to 7.74%
2003	0.95% to 2.80%	725,730	11.03 to 12.79	9,990,108	0.00%	10.28% to 27.90%	(a) (b)

AIM Variable Insurance Funds – AIM V.I. Capital Appreciation Fund – Series II
2006	0.80% to 2.95%	936,992	9.91 to 13.58	14,402,186	0.00%	-0.88% to 2.94%	(a)
2005	0.95% to 2.95%	783,186	12.18 to 13.19	11,580,313	0.00%	7.55% to 5.38%
2004	0.95% to 2.85%	995,122	11.33 to 12.54	13,783,771	0.00%	5.32% to 3.30%
2003	0.95% to 2.80%	208,483	10.76 to 12.14	2,749,979	0.00%	7.56% to 21.42%	(a) (b)

AIM Variable Insurance Funds – AIM V.I. Capital Development Fund – Series II
2006	0.80% to 3.00%	1,088,041	10.12 to 17.01	20,992,339	0.00%	1.15% to 12.78%	(a)
2005	0.95% to 3.00%	938,234	13.62 to 15.09	15,894,114	0.00%	8.23% to 6.00%
2004	0.95% to 2.70%	681,736	12.59 to 15.48	10,765,387	0.00%	14.17% to 12.16%
2003	1.15% to 2.65%	156,782	14.00 to 13.81	2,180,408	0.00%	39.96% to 38.10%	(a) (b)

Alger American Balanced Portfolio – Class S Shares
2006	0.95% to 1.45%	19,445	12.14 to 11.94	235,534	0.81%	3.47% to 2.95%
2005	0.95% to 1.45%	37,454	11.73 to 11.60	439,160	1.78%	7.13% to 6.59%
2004	0.95% to 1.45%	11,877	10.95 to 10.88	129,991	1.97%	3.28% to 2.76%

Alger American Mid Cap Growth Portfolio – Class S Shares
2006	0.95% to 1.80%	42,969	14.21 to 13.81	608,077	0.00%	8.84% to 7.91%
2005	0.95% to 1.80%	31,739	13.06 to 12.80	413,029	0.00%	8.50% to 7.57%
2004	0.95% to 1.45%	17,910	12.03 to 11.95	215,064	0.00%	11.69% to 11.13%
2003	0.95%	2,204	10.77	23,746	0.00%	7.74%	(a) (b)

AllianceBernstein Variable Products Series Fund, Inc. – Growth and Income Portfolio – Class B
2006	0.95% to 2.90%	1,318,088	14.62 to 15.18	23,041,761	1.14%	15.88% to 13.60%
2005	0.95% to 2.90%	1,458,592	12.61 to 13.36	22,196,589	1.24%	3.60% to 1.57%
2004	0.95% to 2.90%	1,632,039	12.17 to 13.15	24,059,143	0.88%	10.17% to 8.00%
2003	0.95% to 2.90%	1,055,483	11.05 to 12.18	14,215,858	0.14%	10.51% to 21.78%	(a) (b)

AllianceBernstein Variable Products Series Fund, Inc. – Small-Mid Cap Value Portfolio – Class B
2006	0.95% to 2.40%	436,802	16.22 to 19.77	8,743,128	0.23%	13.12% to 11.47%
2005	0.95% to 2.40%	472,597	14.34 to 17.73	8,416,951	0.55%	5.62% to 4.08%
2004	0.95% to 2.70%	497,373	13.58 to 16.94	8,511,826	0.09%	17.94% to 15.86%
2003	1.10% to 2.70%	282,978	14.83 to 14.62	4,130,159	0.05%	48.33% to 46.22%	(a) (b)

American Century Variable Portfolios, Inc. – Balanced Fund – Class I
2006	0.80% to 1.40%	3,544,356	19.84 to 21.64	81,354,666	1.99%	8.74% to 8.09%
2005	0.80% to 1.40%	4,467,709	18.24 to 20.02	94,404,446	1.89%	4.10% to 3.47%
2004	0.80% to 1.40%	5,476,571	17.53 to 19.35	111,421,119	1.68%	8.90% to 8.24%
2003	0.80% to 1.40%	6,309,606	16.09 to 17.88	118,238,558	2.53%	18.50% to 17.79%
2002	0.80% to 1.40%	6,701,595	13.58 to 16.57	106,481,584	2.84%	-10.82% to-10.28%

American Century Variable Portfolios, Inc. – Capital Appreciation Fund – Class I
2006	0.80% to 1.40%	3,982,752	15.45 to 18.71	124,686,439	0.00%	16.28% to 15.58%
2005	0.80% to 1.40%	4,837,975	13.28 to 16.19	129,211,185	0.00%	21.09% to 20.36%
2004	0.80% to 1.40%	5,652,516	10.97 to 13.45	124,449,595	0.00%	6.72% to 6.08%
2003	0.80% to 1.40%	6,916,987	10.28 to 12.68	141,677,225	0.00%	19.51% to 18.79%
2002	0.80% to 1.40%	8,313,614	8.60 to 21.07	140,824,556	0.00%	-22.31% to -21.83%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century Variable Portfolios, Inc. – Income & Growth Fund – Class I
2006	0.80% to 1.40%	2,937,946	$	14.22 to 13.49	$	39,889,470	1.85%	16.15% to 15.45%
2005	0.80% to 1.40%	3,657,933		12.24 to 11.69		42,972,046	2.07%	3.80% to 3.17%
2004	0.80% to 1.40%	4,654,910		11.79 to 11.33		52,942,168	1.40%	12.09% to 11.41%
2003	0.80% to 1.40%	5,714,030		10.52 to 10.17		58,274,174	1.11%	28.32% to 27.54%
2002	0.80% to 1.40%	5,125,581		7.97 to 8.20		40,961,204	1.15%	-20.50% to -20.02%

American Century Variable Portfolios, Inc. – Income & Growth Fund – Class II
2006	0.95% to 2.85%	861,606		15.01 to 12.86		14,784,058	1.57%	15.71% to 13.54%
2005	0.95% to 2.85%	974,803		12.97 to 11.33		14,596,589	1.77%	3.53% to 1.59%
2004	0.95% to 2.85%	964,870		12.53 to 11.15		14,094,019	1.13%	11.50% to 9.46%
2003	0.95% to 2.80%	513,470		11.24 to 12.24		6,815,250	0.00%	12.35% to 22.37%	(a) (b)

American Century Variable Portfolios, Inc. – Inflation Protection Fund – Class II
2006	0.80% to 3.00%	6,878,406		10.94 to 10.21		74,548,587	3.41%	0.78% to -1.45%
2005	0.80% to 3.00%	7,317,685		10.86 to 10.36		79,291,554	4.66%	0.75% to -1.48%
2004	0.80% to 3.00%	5,306,858		10.78 to 10.51		57,508,773	3.39%	4.96% to 2.64%
2003	0.80% to 2.55%	1,303,256		10.27 to 10.29		13,554,997	1.08%	2.69% to 2.92%	(a)

American Century Variable Portfolios, Inc. – International Fund – Class I
2006	0.80% to 1.40%	2,905,577		23.82 to 22.36		65,448,602	1.67%	24.03% to 23.28%
2005	0.80% to 1.40%	3,664,642		19.21 to 18.13		66,905,080	1.18%	12.35% to 11.67%
2004	0.80% to 1.40%	4,655,031		17.10 to 16.24		76,046,364	0.57%	14.00% to 13.32%
2003	0.80% to 1.40%	6,008,220		15.00 to 14.33		86,550,127	0.75%	23.51% to 22.77%
2002	0.80% to 1.40%	7,997,923		11.67 to 12.14		93,782,519	0.88%	-21.49% to -21.01%

American Century Variable Portfolios, Inc. – International Fund – Class II
2006	0.95% to 2.15%	167,745		17.86 to 19.57		3,361,447	1.45%	23.56% to 22.07%
2005	0.95% to 2.15%	187,627		14.45 to 16.03		3,059,229	1.01%	12.03% to 10.68%
2004	0.95% to 2.15%	218,350		12.90 to 14.48		3,195,978	0.49%	13.68% to 12.31%
2003	0.95% to 2.70%	238,887		11.35 to 12.83		3,091,431	0.00%	13.46% to 28.33%	(a) (b)

American Century Variable Portfolios, Inc. – International Fund – Class III
2006	0.80% to 1.40%	2,121,586		15.84 to 15.40		32,787,298	1.62%	24.03% to 23.28%
2005	0.80% to 1.40%	2,307,236		12.77 to 12.49		28,896,626	1.13%	12.20% to 11.52%
2004	0.80% to 1.40%	2,469,324		11.38 to 11.20		27,706,844	0.54%	14.16% to 13.47%
2003	0.80% to 1.40%	2,431,962		9.97 to 9.87		24,027,699	0.68%	23.51% to 22.77%
2002	0.80% to 1.40%	1,893,970		8.04 to 8.07		15,231,488	0.00%	-19.61% to -19.28%	(a) (b)

American Century Variable Portfolios, Inc. – International Fund – Class IV
2006	0.95% to 2.65%	741,894		15.62 to 14.92		11,421,722	1.45%	23.68% to 21.57%
2005	0.95% to 2.65%	771,337		12.63 to 12.27		9,654,221	0.89%	11.90% to 9.99%
2004	0.95% to 2.30%	493,520		11.29 to 11.19		5,550,929	0.00%	12.89% to 11.87%	(a) (b)

American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class I
2006	0.80% to 1.40%	299,448		11.09 to 11.05		3,310,661	1.20%	10.94% to 10.50%	(a) (b)

American Century Variable Portfolios, Inc. – Mid Cap Value Fund – Class II
2006	1.10% to 2.90%	1,253,439		13.35 to 12.95		16,593,330	0.67%	18.91% to 16.75%
2005	1.15% to 2.90%	483,218		11.22 to 11.09		5,404,126	1.28%	12.21% to 10.89%	(a) (b)

American Century Variable Portfolios, Inc. – Ultra^® Fund – Class I
2006	0.80% to 1.40%	423,522		10.58 to 10.28		4,369,846	0.00%	-4.05% to -4.63%
2005	0.80% to 1.40%	704,273		11.02 to 10.78		7,610,398	0.00%	1.35% to 0.74%
2004	0.80% to 1.40%	671,844		10.88 to 10.70		7,201,616	0.00%	9.79% to 9.13%
2003	0.80% to 1.40%	596,069		9.91 to 9.81		5,850,738	0.00%	23.90% to 23.15%
2002	0.80% to 1.40%	144,545		7.96 to 8.00		1,151,365	0.33%	-20.37% to -20.05%	(a) (b)

American Century Variable Portfolios, Inc. – Ultra^® Fund – Class II
2006	0.95% to 2.90%	1,132,582		11.31 to 11.64		15,069,024	0.00%	-4.30% to -6.18%
2005	0.95% to 2.90%	1,111,532		11.82 to 12.40		15,585,166	0.00%	1.01% to -0.97%
2004	0.95% to 2.85%	833,172		11.70 to 12.54		11,612,690	0.00%	9.54% to 7.44%
2003	1.15% to 2.75%	251,964		13.07 to 11.68		3,176,173	0.00%	30.66% to 16.77%	(a) (b)

American Century Variable Portfolios, Inc. – Value Fund – Class I
2006	0.80% to 1.40%	6,165,160		26.25 to 24.70		153,403,265	1.35%	17.71% to 17.00%
2005	0.80% to 1.40%	7,260,905		22.30 to 21.11		154,247,554	0.93%	4.20% to 3.57%
2004	0.80% to 1.40%	8,834,706		21.40 to 20.39		181,034,811	1.06%	13.42% to 12.73%
2003	0.80% to 1.40%	9,070,068		18.87 to 18.08		164,712,767	1.01%	27.93% to 27.15%
2002	0.80% to 1.40%	10,608,306		14.22 to 14.75		151,374,824	0.98%	-13.84% to -13.32%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century Variable Portfolios, Inc. – Value Fund – Class II
2006	0.95% to 2.95%	5,699,037	$	15.45 to 15.95	$	104,054,486	1.05%	17.34% to 14.98%
2005	0.95% to 2.95%	4,664,738		13.16 to 13.87		73,014,202	0.59%	3.86% to 1.77%
2004	0.95% to 2.80%	2,735,693		12.67 to 13.66		41,571,673	0.53%	13.09% to 10.98%
2003	1.10% to 2.80%	875,072		13.63 to 12.31		11,835,842	0.00%	36.27% to 23.13%	(a) (b)

American Century Variable Portfolios, Inc. – Vista ^SMFund – Class I
2006	1.30% to 1.40%	15,762		9.54 to 9.54		150,403	0.00%	-4.56% to -4.63%	(a) (b)

American Century Variable Portfolios, Inc. – Vista ^SMFund – Class II
2006	1.10% to 2.90%	242,388		2.25 to 11.88		2,936,912	0.00%	7.68% to 5.73%
2005	1.10% to 2.90%	106,490		11.37 to 11.23		1,205,764	0.00%	13.72% to 12.35%	(a) (b)

American Funds Insurance Series^®– Growth Fund – Class 1
2006	1.30%	243,531		77.34		18,835,011	0.92%	9.05%
2005	1.30%	304,890		70.93		21,624,645	0.86%	14.99%
2004	1.30%	328,214		61.68		20,244,087	0.35%	11.28%
2003	1.30%	365,065		55.43		20,233,757	0.37%	35.36%
2002	1.30%	395,501		40.94		16,193,780	0.18%	-25.26%

American Funds Insurance Series^®– High-Income Bond Fund – Class 1
2006	1.30%	35,506		40.54		1,439,550	4.68%	9.45%
2005	1.30%	51,290		37.04		1,899,949	5.71%	1.13%
2004	1.30%	56,446		36.63		2,067,573	5.70%	8.40%
2003	1.30%	79,839		33.79		2,697,763	10.29%	28.10%
2002	1.30%	52,094		26.38		1,374,108	8.77%	-2.79%

American Funds Insurance Series^®– U.S. Government/AAA-Rated Securities Fund – Class 1
2006	1.30%	62,699		28.00		1,755,517	3.68%	2.60%
2005	1.30%	88,729		27.29		2,421,277	3.90%	1.37%
2004	1.30%	91,982		26.92		2,476,082	4.87%	2.24%
2003	1.30%	110,931		26.33		2,920,820	3.56%	1.18%
2002	1.30%	125,824		26.02		3,274,314	4.55%	8.03%

Charles Schwab Money Market Portfolio
2006	0.95% to 1.85%	1,650,023		10.53 to 10.21		17,343,382	4.15%	3.61% to 2.67%
2005	0.95% to 1.90%	1,114,003		10.16 to 9.94		11,301,111	3.00%	1.77% to 0.80%
2004	0.95% to 1.85%	438,727		9.98 to 9.86		4,373,727	0.96%	-0.06% to -0.96%
2003	0.95% to 1.45%	245,954		9.99 to 9.97		2,456,759	0.09%	-0.11% to -0.27%	(a) (b)

Credit Suisse Trust – Global Small Cap Portfolio
2006	0.80% to 1.40%	285,608		16.15 to 15.20		4,372,655	0.00%	12.30% to 11.62%
2005	0.80% to 1.40%	377,164		14.38 to 13.62		5,168,448	0.00%	15.22% to 14.52%
2004	0.80% to 1.40%	509,005		12.48 to 11.89		6,084,949	0.00%	17.05% to 16.34%
2003	0.80% to 1.40%	665,511		10.67 to 10.22		6,834,165	0.00%	46.48% to 45.59%
2002	0.80% to 1.40%	871,300		7.02 to 7.28		6,140,841	0.00%	-35.08% to -34.68%

Credit Suisse Trust – International Focus Portfolio
2006	0.80% to 1.40%	2,629,775		16.18 to 15.57		41,181,190	0.99%	17.71% to 17.00%
2005	0.80% to 1.40%	3,268,498		13.75 to 13.30		43,719,660	0.84%	16.50% to 15.80%
2004	0.80% to 1.40%	4,168,927		11.80 to 11.49		48,123,003	0.93%	13.82% to 13.14%
2003	0.80% to 1.40%	5,366,505		10.37 to 10.15		54,715,107	0.43%	32.03% to 31.23%
2002	0.80% to 1.40%	6,977,626		7.74 to 7.85		54,182,847	0.00%	-21.03% to -20.55%

Credit Suisse Trust – Small Cap Growth Portfolio
2006	0.80% to 1.40%	4,550,318		16.92 to 17.63		80,816,137	0.00%	3.93% to 3.30%
2005	0.80% to 1.40%	5,728,799		16.28 to 17.07		98,399,267	0.00%	-3.46% to -4.04%
2004	0.80% to 1.40%	7,254,068		16.86 to 17.78		129,733,218	0.00%	9.98% to 9.32%
2003	0.80% to 1.40%	8,999,069		15.33 to 16.27		147,102,444	0.00%	47.36% to 46.47%
2002	0.80% to 1.40%	10,206,558		10.41 to 11.19		113,825,374	0.00%	-34.62% to -34.22%

Dreyfus Investment Portfolios – Small Cap Stock Index Portfolio – Service Shares
2006	0.80% to 2.50%	3,003,653		15.23 to 20.00		53,124,303	0.42%	13.50% to 11.56%
2005	0.80% to 2.50%	3,454,461		13.42 to 17.92		52,798,571	0.00%	6.38% to 4.56%
2004	0.80% to 2.70%	3,662,793		12.62 to 17.08		50,846,240	0.46%	20.91% to 18.60%
2003	0.80% to 2.35%	2,490,303		10.43 to 10.15		27,176,568	0.28%	36.68% to 44.44%	(b)
2002	0.80% to 1.40%	466,308		7.60 to 7.63		3,546,444	0.31%	-23.97% to -23.66%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Dreyfus Socially Responsible Growth Fund, Inc. – Initial Shares, The
2006	0.80% to 1.40%	3,504,269	$	18.37 to 22.39	$	82,432,140	0.11%	8.33% to 7.68%
2005	0.80% to 1.40%	4,359,987		16.95 to 20.79		95,023,542	0.00%	2.79% to 2.17%
2004	0.80% to 1.40%	5,445,879		16.49 to 20.35		115,826,541	0.36%	5.36% to 4.72%
2003	0.80% to 1.40%	6,701,628		15.66 to 19.43		135,576,829	0.11%	25.00% to 24.24%
2002	0.80% to 1.40%	7,243,408		12.52 to 16.66		117,819,427	0.19%	-29.94% to -29.51%

Dreyfus Stock Index Fund, Inc. – Initial Shares
2006	0.80% to 1.40%	17,471,027		25.91 to 31.05		547,761,774	1.59%	14.58% to 13.89%
2005	0.80% to 1.40%	21,479,216		22.61 to 27.26		590,648,682	1.54%	3.86% to 3.23%
2004	0.80% to 1.40%	27,047,637		21.77 to 26.41		719,718,796	1.71%	9.76% to 9.09%
2003	0.80% to 1.40%	32,699,415		19.84 to 24.21		796,781,905	1.40%	27.34% to 26.57%
2002	0.80% to 1.40%	38,520,995		15.58 to 19.36		740,960,376	1.27%	-23.45% to -22.98%

Dreyfus Stock Index Fund, Inc. – Service Shares
2006	0.95% to 2.90%	7,034,417		14.25 to 14.59		117,546,992	1.41%	14.11% to 11.87%
2005	0.95% to 3.00%	6,341,787		12.49 to 13.00		93,210,382	1.41%	3.44% to 1.31%
2004	0.95% to 3.00%	5,049,202		12.07 to 12.84		72,127,749	1.74%	9.30% to 7.04%
2003	0.95% to 2.90%	1,563,084		11.04 to 12.00		20,724,193	0.73%	10.44% to 20.00%	(a) (b)

Dreyfus Variable Investment Fund – Appreciation Portfolio – Initial Shares
2006	0.80% to 1.40%	3,227,567		16.02 to 15.12		49,149,665	1.58%	15.55% to 14.85%
2005	0.80% to 1.40%	4,029,605		13.86 to 13.17		53,378,443	0.02%	3.55% to 2.92%
2004	0.80% to 1.40%	4,990,800		13.39 to 12.79		64,177,831	1.53%	4.21% to 3.58%
2003	0.80% to 1.40%	6,013,001		12.85 to 12.35		74,581,255	1.29%	20.20% to 19.47%
2002	0.80% to 1.40%	7,086,046		10.34 to 10.69		73,506,332	1.03%	-17.88% to -17.38%

Dreyfus Variable Investment Fund – Appreciation Portfolio – Service Shares
2006	0.95% to 3.00%	1,641,093		13.55 to 13.38		24,926,948	1.35%	15.11% to 12.73%
2005	0.95% to 3.00%	1,814,647		11.77 to 11.87		24,136,811	0.00%	3.13% to 1.00%
2004	0.95% to 2.85%	1,357,385		11.42 to 11.78		17,648,287	2.09%	3.80% to 1.81%
2003	1.15% to 2.65%	396,749		12.70 to 12.54		4,997,749	1.99%	27.04% to 25.35%	(a) (b)

Dreyfus Variable Investment Fund – Developing Leaders Portfolio – Service Shares
2006	0.95% to 2.40%	278,075		12.65 to 15.42		4,374,516	0.17%	2.54% to 1.04%
2005	0.95% to 2.40%	339,465		12.34 to 15.26		5,241,910	0.00%	4.56% to 3.03%
2004	0.95% to 2.40%	327,297		11.80 to 14.81		4,907,676	0.00%	9.99% to 8.38%
2003	1.10% to 2.40%	131,238		13.83 to 13.67		1,800,570	0.00%	38.26% to 36.67%	(a) (b)

Dreyfus Variable Investment Fund – Growth and Income Portfolio – Initial Shares
2006	0.80% to 1.40%	2,372,008		15.25 to 14.35		34,268,064	0.76%	13.60% to 12.91%
2005	0.80% to 1.40%	2,832,165		13.42 to 12.71		36,194,164	1.29%	2.53% to 1.91%
2004	0.80% to 1.40%	3,540,729		13.09 to 12.47		44,355,941	1.18%	6.61% to 5.96%
2003	0.80% to 1.40%	4,245,970		12.28 to 11.77		50,156,353	0.77%	25.56% to 24.80%
2002	0.80% to 1.40%	4,941,819		9.43 to 9.78		46,735,460	0.59%	-26.38% to -25.93%

Federated Insurance Series – Federated American Leaders Fund II – Service Shares
2006	0.95% to 2.75%	147,270		14.63 to 15.17		2,411,405	1.22%	15.38% to 13.29%
2005	0.95% to 2.75%	177,529		12.68 to 13.39		2,536,537	1.27%	3.78% to 1.90%
2004	1.15% to 2.75%	191,712		14.45 to 13.14		2,665,097	1.22%	8.24% to 6.49%
2003	1.15% to 2.55%	77,357		13.35 to 13.18		1,001,093	0.00%	33.50% to 31.84%	(a) (b)

Federated Insurance Series – Federated Capital Appreciation Fund II – Service Shares
2006	0.95% to 3.15%	212,094		13.42 to 13.52		3,225,966	0.53%	14.69% to 12.15%
2005	1.05% to 3.15%	236,710		11.67 to 12.06		3,170,136	0.84%	0.63% to -1.50%
2004	1.05% to 3.15%	262,174		11.60 to 12.24		3,512,976	0.53%	5.99% to 3.74%
2003	1.10% to 2.80%	177,660		13.00 to 11.83		2,254,950	0.00%	30.02% to 18.27%	(a) (b)

Federated Insurance Series – Federated Market Opportunity Fund II – Service Shares
2006	1.15% to 2.30%	326,855		10.32 to 10.24		3,358,443	0.00%	3.16% to 2.37%	(a) (b)

Federated Insurance Series – Federated Quality Bond Fund II – Primary Shares
2006	0.80% to 1.40%	1,361,037		11.88 to 11.55		15,768,662	4.34%	3.32% to 2.70%
2005	0.80% to 1.40%	1,866,157		11.50 to 11.25		21,031,569	3.80%	0.49% to -0.12%
2004	0.80% to 1.40%	2,208,926		11.44 to 11.26		24,906,332	4.23%	2.79% to 2.17%
2003	0.80% to 1.40%	3,097,044		11.13 to 11.02		34,160,926	4.10%	3.81% to 3.18%
2002	0.80% to 1.40%	2,559,029		10.68 to 10.72		27,343,161	0.00%	6.82% to 7.25%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Federated Insurance Series – Federated Quality Bond Fund II – Service Shares
2006	0.95% to 2.95%	4,875,943	$	10.81 to 9.88	$	51,727,060	3.80%	2.94% to 0.86%
2005	0.95% to 2.95%	4,648,453		10.51 to 9.79		48,245,065	3.29%	0.03% to -1.98%
2004	0.95% to 2.85%	3,548,586		10.50 to 10.78		37,072,244	3.23%	2.34% to 0.39%
2003	0.95% to 2.60%	1,665,638		10.26 to 10.78		17,093,448	0.01%	2.63% to 1.48%	(a) (b)

Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Initial Class
2006	0.80% to 1.40%	19,837,866		27.02 to 33.76		941,295,561	3.26%	19.23% to 18.52%
2005	0.80% to 1.40%	24,111,620		22.66 to 28.49		951,276,572	1.68%	5.02% to 4.39%
2004	0.80% to 1.40%	29,628,395		21.58 to 27.29		1,103,365,925	1.58%	10.64% to 9.97%
2003	0.80% to 1.40%	35,119,867		19.50 to 24.82		1,172,481,617	1.79%	29.29% to 28.51%
2002	0.80% to 1.40%	41,305,904		15.08 to 33.74		1,060,581,302	1.87%	-18.11% to -17.61%

Fidelity^® Variable Insurance Products Fund – Equity-Income Portfolio – Service Class 2
2006	1.10% to 2.95%	9,285,688		18.74 to 16.04		170,040,794	2.92%	18.61% to 16.40%
2005	1.10% to 2.95%	8,101,371		15.80 to 13.78		125,643,989	1.28%	4.41% to 2.47%
2004	1.10% to 2.95%	6,134,314		15.13 to 13.45		91,285,573	0.82%	10.01% to 7.95%
2003	1.10% to 2.80%	1,963,742		13.76 to 12.47		26,626,620	0.00%	37.56% to 24.68%	(a) (b)

Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Initial Class
2006	0.80% to 1.40%	15,379,782		19.07 to 24.89		723,221,795	0.41%	6.00% to 5.36%
2005	0.80% to 1.40%	19,493,494		17.99 to 23.63		851,535,193	0.51%	4.95% to 4.32%
2004	0.80% to 1.40%	24,907,685		17.14 to 22.65		1,021,303,176	0.28%	2.55% to 1.93%
2003	0.80% to 1.40%	30,857,133		16.71 to 22.22		1,206,381,873	0.27%	31.79% to 30.99%
2002	0.80% to 1.40%	36,598,859		12.68 to 43.17		1,070,077,897	0.27%	-31.09% to -30.67%

Fidelity^® Variable Insurance Products Fund – Growth Portfolio – Service Class 2
2006	1.10% to 3.00%	3,396,781		15.59 to 13.04		51,229,656	0.16%	5.40% to 3.38%
2005	1.10% to 3.00%	3,421,593		14.79 to 12.61		49,127,180	0.25%	4.35% to 2.35%
2004	1.10% to 2.85%	3,015,154		14.17 to 12.36		41,622,162	0.09%	1.99% to 0.18%
2003	1.10% to 2.80%	1,072,088		13.90 to 12.34		14,579,923	0.00%	38.99% to 23.39%	(a) (b)

Fidelity^® Variable Insurance Products Fund – High Income Portfolio – Initial Class
2006	0.80% to 1.40%	7,076,863		14.56 to 15.70		153,544,649	7.13%	10.35% to 9.68%
2005	0.80% to 1.40%	8,818,397		13.19 to 14.31		171,137,153	14.50%	1.88% to 1.27%
2004	0.80% to 1.40%	12,101,014		12.95 to 14.13		228,193,033	8.17%	8.72% to 8.06%
2003	0.80% to 1.40%	16,497,401		11.91 to 13.08		283,236,571	6.82%	26.25% to 25.48%
2002	0.80% to 1.40%	17,053,114		9.43 to 19.56		231,945,065	10.24%	2.00% to 2.62%

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class
2006	0.80% to 1.40%	5,556,872		22.70 to 23.07		158,028,879	0.90%	17.14% to 16.43%
2005	0.80% to 1.40%	6,764,235		19.38 to 19.82		164,441,055	0.66%	18.10% to 17.38%
2004	0.80% to 1.40%	8,332,810		16.41 to 16.88		172,049,779	1.18%	12.73% to 12.05%
2003	0.80% to 1.40%	10,235,114		14.55 to 15.07		187,955,327	0.83%	42.22% to 41.36%
2002	0.80% to 1.40%	12,965,489		10.23 to 13.97		167,732,039	0.89%	-21.40% to -20.92%

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Initial Class R
2006	0.80% to 1.40%	4,321,249		17.20 to 16.72		72,538,615	0.89%	17.08% to 16.37%
2005	0.80% to 1.40%	4,309,892		14.69 to 14.37		62,111,628	0.64%	18.16% to 17.45%
2004	0.80% to 1.40%	4,483,379		12.44 to 12.24		54,961,518	1.04%	12.68% to 12.00%
2003	0.80% to 1.40%	3,556,585		11.04 to 10.92		38,898,685	0.58%	42.18% to 41.32%
2002	0.80% to 1.40%	1,991,220		7.73 to 7.76		15,399,653	0.00%	-22.70% to -22.38%	(a) (b)

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2
2006	1.10% to 2.30%	395,811		22.77 to 21.72		8,723,911	0.71%	16.48% to 15.07%
2005	1.10% to 2.30%	445,790		19.55 to 18.87		8,474,142	0.53%	17.48% to 16.06%
2004	1.10% to 2.35%	579,313		16.64 to 16.25		9,439,417	1.00%	12.07% to 10.65%
2003	1.10% to 2.70%	759,076		14.85 to 14.64		11,143,294	0.00%	48.46% to 46.36%	(a) (b)

Fidelity^® Variable Insurance Products Fund – Overseas Portfolio – Service Class 2 R
2006	1.10% to 2.65%	3,262,947		15.12 to 14.50		48,966,115	0.68%	16.52% to 14.70%
2005	1.10% to 2.75%	2,671,311		12.98 to 12.62		34,592,870	0.39%	17.44% to 15.49%
2004	1.10% to 2.75%	1,455,683		11.05 to 10.93		16,113,454	0.00%	10.51% to 9.29%	(a) (b)

Fidelity^® Variable Insurance Products Fund II – Asset Manager Portfolio – Initial Class
2006	0.80% to 1.40%	10,118,900		19.91 to 19.52		286,791,929	2.82%	6.46% to 5.82%
2005	0.80% to 1.40%	12,409,816		18.70 to 18.45		329,413,384	2.78%	3.21% to 2.59%
2004	0.80% to 1.40%	15,144,673		18.12 to 17.98		387,934,534	2.80%	4.63% to 3.99%
2003	0.80% to 1.40%	18,528,814		17.32 to 17.29		450,130,622	3.64%	17.03% to 16.32%
2002	0.80% to 1.40%	21,172,985		14.80 to 24.49		440,820,954	4.16%	-10.01% to -9.46%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Initial Class
2006	0.80% to 1.40%	21,578,263	$	32.72 to 33.18	$	721,451,899	1.27%	10.83% to 10.16%
2005	0.80% to 1.40%	24,802,463		29.52 to 30.12		752,002,828	0.29%	16.00% to 15.31%
2004	0.80% to 1.40%	27,634,632		25.45 to 26.12		725,941,419	0.34%	14.55% to 13.86%
2003	0.80% to 1.40%	31,289,245		22.22 to 22.94		721,253,344	0.46%	27.44% to 26.67%
2002	0.80% to 1.40%	35,826,301		17.43 to 18.25		651,487,682	0.90%	-10.62% to -10.07%

Fidelity^® Variable Insurance Products Fund II – Contrafund^® Portfolio – Service Class 2
2006	1.10% to 3.10%	16,826,492		19.42 to 16.70		319,679,085	1.04%	10.21% to 7.99%
2005	1.10% to 3.10%	13,262,039		17.62 to 15.46		229,643,763	0.09%	15.37% to 13.04%
2004	1.10% to 3.10%	7,550,491		15.28 to 13.68		113,908,694	0.10%	13.89% to 11.59%
2003	1.10% to 2.80%	1,746,863		13.41 to 12.28		23,242,672	0.00%	34.14% to 22.81%	(a) (b)

Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class
2006	0.80% to 1.40%	1,663,367		11.02 to 10.78		17,973,250	3.75%	3.47% to 2.84%
2005	0.80% to 1.40%	1,541,808		10.65 to 10.48		16,185,460	3.17%	1.27% to 0.65%
2004	0.80% to 1.40%	1,079,916		10.52 to 10.41		11,254,188	2.96%	3.48% to 2.86%
2003	0.80% to 1.40%	441,619		10.16 to 10.12		4,471,457	0.00%	1.63% to 1.22%	(a) (b)

Fidelity^® Variable Insurance Products Fund II – Investment Grade Bond Portfolio – Service Class 2
2006	1.10% to 3.25%	17,350,200		11.06 to 10.00		187,123,591	2.12%	2.99% to 0.76%
2005	1.10% to 2.90%	6,089,737		10.74 to 10.02		64,530,741	2.84%	0.78% to -1.05%
2004	1.10% to 2.85%	3,702,374		10.65 to 10.52		39,157,892	2.31%	3.04% to 1.24%
2003	1.10% to 2.60%	1,078,745		10.34 to 10.42		11,114,242	0.00%	3.40% to 2.05%	(a) (b)

Fidelity^® Variable Insurance Products Fund III – Growth Opportunities Portfolio – Initial Class
2006	0.80% to 1.40%	2,712,499		11.75 to 11.09		30,268,618	0.72%	4.61% to 3.98%
2005	0.80% to 1.40%	3,577,040		11.23 to 10.67		38,352,113	0.93%	8.02% to 7.37%
2004	0.80% to 1.40%	4,326,389		10.39 to 9.93		43,162,018	0.56%	6.33% to 5.69%
2003	0.80% to 1.40%	5,119,061		9.77 to 9.40		48,280,130	0.78%	28.83% to 28.06%
2002	0.80% to 1.40%	6,029,031		7.34 to 7.59		44,374,253	1.11%	-22.94% to -22.47%

Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class
2006	0.80% to 1.40%	1,041,179		9.89 to 9.85		10,260,773	0.00%	-1.10% to -1.50%	(a) (b)

Fidelity^® Variable Insurance Products Fund III – Mid Cap Portfolio – Service Class 2
2006	1.10% to 3.10%	8,219,016		23.02 to 20.73		184,744,089	0.17%	11.17% to 8.93%
2005	1.10% to 3.10%	7,193,078		20.70 to 19.03		146,085,937	0.00%	16.72% to 14.37%
2004	1.10% to 3.10%	3,994,345		17.74 to 16.64		69,828,007	0.00%	23.29% to 20.79%
2003	1.10% to 2.65%	952,250		14.39 to 14.19		13,510,593	0.00%	43.87% to 41.90%	(a) (b)

Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class
2006	0.80% to 1.40%	959,780		15.50 to 15.07		14,522,707	0.54%	15.27% to 14.58%
2005	0.80% to 1.40%	1,313,761		13.45 to 13.15		17,327,837	0.00%	1.74% to 1.12%
2004	0.80% to 1.40%	1,973,235		13.22 to 13.01		25,716,534	0.00%	13.08% to 12.39%
2003	0.80% to 1.40%	2,066,461		11.69 to 11.57		23,941,728	0.00%	56.53% to 55.58%
2002	0.80% to 1.40%	204,843		7.44 to 7.47		1,524,353	0.00%	-25.61% to -25.31%	(a) (b)

Fidelity^® Variable Insurance Products Fund III – Value Strategies Portfolio – Service Class 2
2006	1.10% to 3.10%	1,184,531		21.85 to 18.00		25,032,411	0.35%	14.74% to 12.42%
2005	1.10% to 3.10%	1,244,308		19.04 to 16.01		23,050,709	0.00%	1.30% to -0.74%
2004	1.10% to 3.10%	1,160,567		18.80 to 16.13		21,344,299	0.00%	12.59% to 10.31%
2003	1.10% to 2.65%	612,598		16.70 to 16.47		10,142,879	0.00%	66.98% to 64.69%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Energy Portfolio – Service Class 2
2006	0.80% to 2.80%	2,923,524		9.41 to 15.03		44,870,467	0.90%	-5.92% to 13.36%	(a)
2005	1.10% to 2.75%	1,080,443		13.42 to 13.27		14,439,718	0.70%	34.16% to 32.67%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class
2006	1.30% to 1.40%	162,866		10.51 to 10.51		1,711,515	3.28%	5.13% to 5.05%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2010 Portfolio – Service Class 2
2006	1.10% to 2.70%	2,744,382		11.62 to 11.30		31,383,195	2.38%	8.38% to 6.63%
2005	1.15% to 2.70%	851,649		10.71 to 10.60		9,071,545	0.85%	7.14% to 6.02%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class
2006	1.30% to 1.40%	138,522		10.53 to 10.53		1,458,810	2.86%	5.33% to 5.25%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2020 Portfolio – Service Class 2
2006	1.10% to 2.90%	3,209,353		12.18 to 11.81		38,598,876	1.89%	10.48% to 8.47%
2005	1.15% to 2.90%	1,450,199		11.02 to 10.89		15,908,277	1.01%	10.21% to 8.91%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class
2006	0.80% to 1.40%	85,450	$	10.59 to 10.55	$	901,603	2.10%	5.88% to 5.46%	(a) (b)

Fidelity^® Variable Insurance Products Fund IV – Freedom Fund 2030 Portfolio – Service Class 2
2006	1.10% to 2.90%	1,094,121		12.55 to 12.17		13,545,883	1.72%	11.69% to 9.66%
2005	1.15% to 2.90%	626,404		11.23 to 11.10		6,999,070	0.99%	12.29% to 10.97%	(a) (b)

Financial Investors Variable Insurance Trust – First Horizon Core Equity Portfolio
2005	1.55% to 2.35%	56,260		10.89 to 10.68		604,067	1.26%	-4.24% to -5.02%
2004	1.55% to 2.35%	63,802		11.37 to 11.25		720,213	1.40%	3.84% to 3.00%
2003	1.55%	56		10.95		613	0.00%	9.47%	(a) (b)

First Horizon Capital Appreciation Portfolio
2005	1.55% to 2.30%	4,666		11.89 to 11.69		55,110	0.00%	1.46% to 0.69%
2004	1.55% to 2.30%	4,651		11.72 to 11.60		54,300	0.00%	9.52% to 8.69%

Franklin Templeton Variable Insurance Products Trust – Franklin Income Securities Fund – Class 2
2006	0.80% to 2.80%	4,753,427		11.16 to 11.01		52,751,296	0.46%	11.57% to 10.07%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Franklin Rising Dividends Securities Fund – Class 2
2006	0.95% to 3.00%	8,485,936		14.33 to 14.78		142,480,300	1.10%	16.01% to 13.62%
2005	0.95% to 3.00%	8,398,809		12.36 to 13.00		122,425,253	0.91%	2.45% to 0.33%
2004	0.95% to 2.95%	5,740,207		12.06 to 12.97		82,208,252	0.58%	9.94% to 7.72%
2003	1.10% to 2.70%	1,384,163		13.22 to 13.04		18,147,130	0.13%	32.24% to 30.37%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Franklin Small Cap Value Securities Fund – Class 2
2006	0.80% to 2.80%	3,184,805		10.19 to 18.93		68,147,428	0.58%	1.91% to 13.71%	(a)
2005	0.95% to 2.65%	2,432,175		15.07 to 18.19		45,353,134	0.81%	7.74% to 5.89%
2004	0.95% to 2.75%	1,537,632		13.98 to 15.75		26,753,540	0.14%	22.57% to 20.35%
2003	1.10% to 2.70%	401,638		14.45 to 14.25		5,756,365	0.04%	44.54% to 42.49%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Templeton Developing Markets Securities Fund – Class 3
2006	0.80% to 2.80%	1,703,817		10.71 to 15.66		27,220,949	1.21%	7.06% to 24.59%	(a)
2005	1.10% to 2.75%	588,613		12.71 to 12.57		7,454,753	0.17%	27.11% to 25.70%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 2
2006	0.95% to 2.25%	531,179		17.54 to 20.25		11,028,499	1.19%	20.29% to 18.72%
2005	0.95% to 2.25%	634,836		14.58 to 17.06		11,022,531	1.12%	9.13% to 7.70%
2004	0.95% to 2.25%	759,444		13.36 to 15.84		12,142,293	1.42%	17.40% to 15.86%
2003	0.95% to 2.70%	604,314		11.38 to 13.62		8,285,031	0.17%	13.81% to 36.17%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Templeton Foreign Securities Fund – Class 3
2006	0.80% to 3.25%	8,716,921		10.89 to 14.24		129,480,230	1.07%	8.94% to 17.53%	(a)
2005	0.95% to 2.90%	3,144,611		12.60 to 12.19		39,198,071	1.15%	9.09% to 6.95%
2004	0.95% to 2.70%	1,223,594		11.55 to 11.42		14,077,001	0.45%	15.52% to 14.17%	(a) (b)

Franklin Templeton Variable Insurance Products Trust – Templeton Global Income Securities Fund – Class 3
2006	1.10% to 2.65%	1,905,578		10.95 to 10.66		20,725,398	2.53%	11.61% to 9.86%
2005	1.15% to 2.65%	501,187		9.81 to 9.71		4,902,407	0.88%	-1.94% to -2.93%	(a) (b)

Gartmore GVIT – American Funds GGVIT Asset Allocation Fund – Class II
2006	0.80% to 2.70%	12,975,664		10.50 to 10.37		135,528,888	3.29%	5.01% to 3.67%	(a) (b)

Gartmore GVIT – American Funds GGVIT Bond Fund – Class II
2006	1.05% to 2.70%	1,749,769		10.47 to 10.35		18,258,647	0.44%	4.65% to 3.49%	(a) (b)

Gartmore GVIT – American Funds GGVIT Global Growth Fund – Class II
2006	0.80% to 2.50%	2,159,481		10.78 to 10.66		23,167,616	0.10%	7.85% to 6.62%	(a) (b)

Gartmore GVIT – American Funds GGVIT Growth Fund – Class II
2006	0.80% to 3.10%	4,677,116		10.31 to 10.15		47,960,489	1.16%	3.09% to 1.50%	(a) (b)

Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class II
2006	0.95% to 2.30%	138,583		18.71 to 20.96		2,966,966	1.79%	21.24% to 19.60%
2005	0.95% to 2.30%	159,058		15.43 to 17.53		2,822,637	1.12%	10.73% to 9.22%
2004	0.95% to 2.70%	207,842		13.93 to 15.94		3,356,473	3.40%	18.86% to 16.76%
2003	0.95% to 2.70%	77,090		11.75 to 13.56		1,047,743	0.00%	17.48% to 35.57%	(a) (b)

Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class III
2006	0.80% to 1.40%	1,414,407		22.34 to 21.85		30,988,347	2.04%	21.77% to 21.03%
2005	0.80% to 1.40%	1,317,124		18.35 to 18.06		23,825,534	1.54%	11.16% to 10.49%
2004	0.80% to 1.40%	1,098,371		16.51 to 16.34		17,968,143	2.34%	19.30% to 18.58%
2003	0.80% to 1.40%	237,590		13.74 to 13.69		3,253,297	0.00%	37.43% to 36.88%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Gartmore GVIT – Dreyfus GGVIT International Value Fund – Class VI
2006	0.95% to 3.25%	8,623,100	$	15.46 to 14.53	$	130,577,252	1.68%	21.25% to 18.44%
2005	0.95% to 2.90%	2,983,147		12.75 to 12.34		37,643,603	1.41%	10.74% to 8.57%
2004	0.95% to 2.65%	975,961		11.51 to 11.38		11,193,338	0.88%	15.15% to 13.84%	(a) (b)

Gartmore GVIT – Emerging Markets Fund – Class I
2006	0.80% to 1.40%	52,896		24.10 to 23.21		1,232,735	0.66%	35.63% to 34.81%
2005	0.80% to 1.40%	71,734		17.77 to 17.21		1,239,682	0.59%	31.58% to 30.79%
2004	0.80% to 1.40%	91,659		13.51 to 13.16		1,210,001	0.79%	19.78% to 19.05%
2003	0.80% to 1.40%	157,661		11.28 to 11.05		1,746,289	0.50%	63.94% to 62.95%
2002	0.80% to 1.40%	263,209		6.78 to 6.88		1,788,282	0.17%	-16.42% to -15.91%

Gartmore GVIT – Emerging Markets Fund – Class II
2006	1.10% to 2.45%	171,105		35.22 to 33.39		5,894,605	0.52%	34.82% to 32.99%
2005	1.10% to 2.45%	229,328		26.12 to 25.11		5,880,895	0.39%	30.88% to 29.10%
2004	1.10% to 2.45%	308,910		19.96 to 19.45		6,083,130	0.89%	19.11% to 17.49%
2003	1.10% to 2.70%	289,997		16.76 to 16.52		4,798,777	0.13%	67.55% to 65.18%	(a) (b)

Gartmore GVIT – Emerging Markets Fund – Class III
2006	0.80% to 1.40%	2,337,802		26.38 to 25.64		60,183,472	0.78%	35.55% to 34.74%
2005	0.80% to 1.40%	2,370,880		19.46 to 19.03		45,251,879	0.50%	31.60% to 30.80%
2004	0.80% to 1.40%	1,392,714		14.79 to 14.55		20,303,030	1.15%	19.79% to 19.07%
2003	0.80% to 1.40%	991,282		12.34 to 12.22		12,125,928	0.38%	63.90% to 62.91%
2002	0.80% to 1.40%	203,046		7.50 to 7.53		1,523,661	0.51%	-24.99% to -24.69%	(a) (b)

Gartmore GVIT – Emerging Markets Fund – Class VI
2006	1.10% to 2.80%	2,839,512		20.83 to 19.89		58,358,811	0.62%	35.06% to 32.74%
2005	1.10% to 2.75%	1,795,459		15.42 to 15.00		27,469,297	0.51%	31.03% to 28.86%
2004	1.10% to 2.75%	690,336		11.77 to 11.64		8,096,434	1.65%	17.71% to 16.41%	(a) (b)

Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class I
2006	0.95% to 2.35%	1,370,433		12.98 to 13.75		19,466,090	6.92%	9.56% to 8.01%
2005	0.95% to 2.35%	1,835,081		11.84 to 12.73		23,862,058	7.21%	1.41% to -0.02%
2004	0.95% to 2.75%	2,793,276		11.68 to 11.69		36,076,240	7.36%	9.05% to 7.07%
2003	1.10% to 2.70%	1,610,041		11.97 to 11.80		19,212,252	6.18%	19.74% to 18.04%	(a) (b)

Gartmore GVIT – Federated GGVIT High Income Bond Fund – Class III
2006	0.80% to 2.45%	2,697,783		10.65 to 11.19		30,684,739	7.38%	6.54% to 7.90%	(a)
2005	0.95% to 2.35%	1,650,804		10.47 to 10.38		17,226,530	8.47%	4.74% to 3.76%	(a) (b)

Gartmore GVIT – Gartmore GGVIT International Index Fund – Class VIII
2006	0.80% to 2.50%	344,723		10.90 to 10.78		3,735,515	1.44%	9.05% to 7.80%	(a) (b)

Gartmore GVIT – Global Financial Services Fund – Class II
2006	0.95% to 2.30%	85,448		18.29 to 21.20		1,862,421	1.63%	18.95% to 17.33%
2005	0.95% to 2.30%	91,491		15.38 to 18.07		1,683,814	1.68%	9.74% to 8.25%
2004	0.95% to 2.30%	111,302		14.02 to 16.69		1,878,091	1.63%	19.62% to 17.99%
2003	0.95% to 2.70%	67,705		11.72 to 14.01		958,244	0.62%	17.17% to 40.97%	(a) (b)

Gartmore GVIT – Global Financial Services Fund – Class III
2006	0.80% to 1.40%	230,182		19.13 to 18.59		4,294,613	2.27%	19.38% to 18.66%
2005	0.80% to 1.40%	235,707		16.02 to 15.67		3,701,998	1.28%	10.28% to 9.62%
2004	0.80% to 1.40%	401,465		14.53 to 14.29		5,747,991	2.12%	20.16% to 19.43%
2003	0.80% to 1.40%	184,883		12.09 to 11.97		2,215,524	0.56%	40.33% to 39.48%
2002	0.80% to 1.40%	107,155		8.58 to 8.62		919,991	0.02%	-14.19% to -13.84%	(a) (b)

Gartmore GVIT – Global Health Sciences Fund – Class II
2006	0.95% to 2.40%	146,024		12.50 to 15.23		2,295,803	0.00%	1.46% to -0.02%
2005	0.95% to 2.40%	164,699		12.32 to 15.23		2,566,533	0.00%	7.16% to 5.60%
2004	0.95% to 2.40%	219,080		11.50 to 14.42		3,205,101	0.00%	6.54% to 4.98%
2003	0.95% to 2.70%	161,686		10.79 to 13.70		2,231,226	0.00%	7.93% to 37.02%	(a) (b)

Gartmore GVIT – Global Health Sciences Fund – Class III
2006	0.80% to 1.40%	539,659		13.21 to 12.84		6,954,737	0.00%	1.88% to 1.27%
2005	0.80% to 1.40%	681,589		12.97 to 12.68		8,666,245	0.00%	7.56% to 6.91%
2004	0.80% to 1.40%	753,248		12.06 to 11.86		8,950,781	0.00%	6.98% to 6.33%
2003	0.80% to 1.40%	628,781		11.27 to 11.16		7,021,780	0.00%	35.68% to 34.86%
2002	0.80% to 1.40%	171,383		8.27 to 8.31		1,418,210	0.00%	-17.28% to -16.95%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Gartmore GVIT – Global Health Sciences Fund – Class VI
2006	0.95% to 2.50%	1,150,570	$	10.75 to 10.31	$	12,177,962	0.00%	1.45% to -0.14%
2005	0.95% to 2.75%	981,490		10.59 to 10.28		10,290,290	0.00%	7.21% to 5.27%
2004	0.95% to 2.65%	506,914		9.88 to 9.77		4,990,392	0.00%	-1.18% to -2.31%	(a) (b)

Gartmore GVIT – Global Technology and Communications Fund – Class I
2006	0.80% to 1.40%	134,349		3.36 to 3.23		437,058	0.00%	10.28% to 9.62%
2005	0.80% to 1.40%	206,846		3.05 to 2.95		613,233	0.00%	-1.31% to -1.91%
2004	0.80% to 1.40%	275,982		3.09 to 3.01		833,304	0.00%	3.48% to 2.85%
2003	0.80% to 1.40%	403,612		2.98 to 2.92		1,183,737	0.00%	53.99% to 53.06%
2002	0.80% to 1.40%	892,288		1.91 to 1.94		1,708,163	0.86%	-43.58% to -43.24%

Gartmore GVIT – Global Technology and Communications Fund – Class II
2006	0.95% to 2.45%	86,480		11.56 to 16.09		1,441,736	0.00%	9.63% to 7.97%
2005	0.95% to 2.45%	103,102		10.55 to 14.90		1,576,432	0.00%	-1.72% to -3.20%
2004	0.95% to 2.45%	153,937		10.73 to 15.39		2,408,354	0.00%	3.04% to 1.48%
2003	1.15% to 2.65%	231,676		15.34 to 15.14		3,537,844	0.00%	53.44% to 51.40%	(a) (b)

Gartmore GVIT – Global Technology and Communications Fund – Class III
2006	0.80% to 1.40%	503,432		12.38 to 12.04		6,083,287	0.00%	10.20% to 9.53%
2005	0.80% to 1.40%	399,751		11.24 to 10.99		4,406,502	0.00%	-1.31% to -1.90%
2004	0.80% to 1.40%	575,407		11.39 to 11.20		6,459,815	0.00%	3.44% to 2.82%
2003	0.80% to 1.40%	865,791		11.01 to 10.90		9,446,336	0.00%	53.95% to 53.02%
2002	0.80% to 1.40%	298,373		7.12 to 7.15		2,125,940	0.11%	-28.78% to -28.49%	(a) (b)

Gartmore GVIT – Global Technology and Communications Fund – Class VI
2006	0.95% to 2.45%	606,445		11.79 to 11.33		7,020,073	0.00%	10.14% to 8.48%
2005	0.95% to 2.50%	335,200		10.71 to 10.43		3,556,148	0.00%	-1.72% to -3.25%
2004	0.95% to 2.40%	250,218		10.89 to 10.79		2,713,673	0.00%	8.94% to 7.89%	(a) (b)

Gartmore GVIT – Global Utilities Fund – Class II
2006	0.95% to 2.10%	46,958		21.23 to 21.94		1,053,325	2.21%	36.03% to 34.45%
2005	0.95% to 2.10%	54,377		15.61 to 16.32		902,655	1.71%	5.18% to 3.96%
2004	0.95% to 2.10%	67,201		14.84 to 15.70		1,066,556	1.00%	28.33% to 26.84%
2003	1.15% to 2.70%	87,903		12.48 to 12.31		1,092,226	0.43%	24.79% to 23.08%	(a) (b)

Gartmore GVIT – Global Utilities Fund – Class III
2006	0.80% to 1.40%	703,436		19.78 to 19.23		13,573,005	2.45%	36.49% to 35.67%
2005	0.80% to 1.40%	442,364		14.49 to 14.18		6,284,975	2.27%	5.63% to 4.99%
2004	0.80% to 1.40%	578,802		13.72 to 13.50		7,825,622	1.25%	28.91% to 28.13%
2003	0.80% to 1.40%	116,517		10.64 to 10.54		1,228,994	0.62%	23.18% to 22.43%
2002	0.80% to 1.40%	62,563		8.61 to 8.64		538,730	0.73%	-13.93% to -13.58%	(a) (b)

Gartmore GVIT – Government Bond Fund – Class I
2006	0.80% to 3.25%	21,636,655		17.07 to 9.82		251,897,848	4.10%	2.52% to -0.01%
2005	0.80% to 2.95%	11,094,727		16.65 to 9.90		145,003,624	3.61%	2.44% to 0.23%
2004	0.80% to 2.80%	9,699,069		16.26 to 9.90		136,685,517	5.37%	2.44% to 0.37%
2003	0.80% to 2.60%	10,401,281		15.87 to 10.61		160,274,272	3.27%	1.18% to -0.30%	(b)
2002	0.80% to 1.40%	15,387,215		15.69 to 16.40		252,312,055	4.37%	9.43% to 10.10%

Tax qualified
2006	1.30%	1,626,743		46.68		75,942,558	4.10%	2.00%
2005	1.30%	1,939,292		45.77		88,757,078	3.61%	1.92%
2004	1.30%	2,272,676		44.90		102,051,082	5.37%	1.92%
2003	1.30%	2,859,598		44.06		125,987,256	3.27%	0.67%
2002	1.30%	3,796,805		43.76		166,158,150	4.37%	9.54%

Non-tax qualified
2006	1.30%	779,383		46.56		36,288,472	4.10%	2.00%
2005	1.30%	967,697		45.65		44,172,372	3.61%	1.92%
2004	1.30%	1,096,169		44.78		49,091,808	5.37%	1.92%
2003	1.30%	1,460,899		43.94		64,193,822	3.27%	0.67%
2002	1.30%	2,262,829		43.65		98,765,786	4.37%	9.54%

Gartmore GVIT – Growth Fund – Class I
2006	0.80% to 1.40%	3,637,231		13.84 to 15.41		61,410,149	0.05%	5.32% to 4.69%
2005	0.80% to 1.40%	4,490,233		13.14 to 14.72		72,042,518	0.08%	5.65% to 5.01%
2004	0.80% to 1.40%	5,607,355		12.44 to 14.02		85,306,314	0.30%	7.29% to 6.64%
2003	0.80% to 1.40%	6,721,760		11.59 to 13.14		95,565,258	0.02%	31.68% to 30.88%
2002	0.80% to 1.40%	7,527,420		8.80 to 11.40		81,445,432	0.00%	-29.72% to -29.29%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Gartmore GVIT – International Growth Fund – Class I
2006	0.80% to 1.40%	10,735	$ 12.77 to 12.30	$	133,086	1.00%	31.90% to 31.11%
2005	0.80% to 1.40%	15,486	9.68 to 9.38		146,183	0.96%	29.17% to 28.39%
2004	0.80% to 1.40%	15,800	7.50 to 7.31		116,027	0.73%	13.28% to 12.60%
2003	0.80% to 1.40%	20,616	6.62 to 6.49		134,284	0.00%	34.54% to 33.73%
2002	0.80% to 1.40%	29,445	4.85 to 4.92		143,224	0.00%	-25.15% to -24.71%

Gartmore GVIT – International Growth Fund – Class III
2006	0.80% to 1.40%	1,396,070	20.21 to 19.65		27,532,803	1.27%	31.89% to 31.10%
2005	0.80% to 1.40%	847,716	15.33 to 14.99		12,738,956	0.74%	29.14% to 28.36%
2004	0.80% to 1.40%	348,335	11.87 to 11.68		4,073,360	1.00%	13.44% to 12.75%
2003	0.80% to 1.40%	222,505	10.46 to 10.36		2,306,595	0.00%	34.25% to 33.44%
2002	0.80% to 1.40%	89,607	7.76 to 7.79		695,629	0.00%	-22.38% to -22.06%	(a) (b)

Gartmore GVIT – Investor Destinations Aggressive Fund – Class II
2006	0.80% to 3.15%	31,476,825	15.19 to 16.39		574,617,190	2.05%	15.94% to 13.20%
2005	0.80% to 3.15%	28,651,809	13.10 to 14.48		456,283,327	2.09%	7.07% to 4.54%
2004	0.80% to 3.15%	15,370,206	12.24 to 13.85		229,534,791	2.08%	13.11% to 10.44%
2003	0.80% to 3.15%	2,319,152	10.82 to 12.54		29,121,998	0.96%	30.81% to 25.39%	(b)
2002	0.80% to 1.40%	222,189	8.22 to 8.27		1,828,268	1.09%	-17.77% to -17.30%	(a) (b)

Gartmore GVIT – Investor Destinations Conservative Fund – Class II
2006	0.80% to 2.90%	11,627,252	11.96 to 10.94		135,903,498	3.06%	5.32% to 3.09%
2005	0.80% to 2.90%	10,630,963	11.36 to 10.61		119,046,011	2.93%	2.48% to 0.32%
2004	0.80% to 2.85%	8,879,736	11.09 to 10.58		97,796,092	2.75%	3.82% to 1.67%
2003	0.80% to 2.65%	3,354,319	10.68 to 10.64		35,767,690	2.15%	7.04% to 6.37%	(b)
2002	0.80% to 1.40%	1,455,743	9.92 to 9.98		14,443,651	2.79%	-0.81% to -0.24%	(a) (b)

Gartmore GVIT – Investor Destinations Moderate Fund – Class II
2006	0.80% to 3.25%	119,084,540	13.55 to 13.32		1,748,946,215	2.59%	10.46% to 7.74%
2005	0.80% to 3.25%	68,034,438	12.27 to 12.36		912,007,522	2.38%	4.50% to 1.93%
2004	0.80% to 3.10%	39,171,967	11.74 to 12.16		503,658,002	2.41%	8.66% to 6.14%
2003	0.80% to 3.00%	10,453,015	10.80 to 11.47		121,349,850	1.41%	19.09% to 14.66%	(b)
2002	0.80% to 1.40%	2,118,040	9.02 to 9.07		19,115,308	1.76%	-9.79% to -9.28%	(a) (b)

Gartmore GVIT – Investor Destinations Moderately Aggressive Fund – Class II
2006	0.80% to 3.25%	84,334,918	14.54 to 15.03		1,411,443,294	2.32%	13.63% to 10.83%
2005	0.80% to 3.25%	54,186,761	12.79 to 13.56		803,417,643	2.25%	6.22% to 3.60%
2004	0.80% to 3.25%	28,932,284	12.05 to 13.09		404,519,632	2.13%	11.20% to 8.45%
2003	0.80% to 2.85%	6,494,549	10.83 to 10.53		78,820,084	1.04%	25.63% to 29.11%	(b)
2002	0.80% to 1.40%	1,018,177	8.57 to 8.62		8,735,441	1.70%	-14.26% to -13.77%	(a) (b)

Gartmore GVIT – Investor Destinations Moderately Conservative Fund – Class II
2006	0.80% to 3.00%	26,410,052	12.79 to 12.09		346,803,038	2.80%	7.56% to 5.18%
2005	0.80% to 3.00%	21,337,805	11.89 to 11.49		262,262,110	2.75%	3.65% to 1.36%
2004	0.80% to 3.00%	14,377,462	11.47 to 11.34		171,579,370	2.61%	6.30% to 3.94%
2003	0.80% to 2.85%	4,202,278	10.79 to 10.41		46,736,320	1.81%	12.79% to 13.27%	(b)
2002	0.80% to 1.40%	830,335	9.52 to 9.57		7,906,829	2.34%	-4.83% to -4.29%	(a) (b)

Gartmore GVIT – J.P. Morgan GVIT Balanced Fund – Class I
2006	0.80% to 1.40%	285,299	12.18 to 11.99		3,426,244	2.46%	11.35% to 10.68%
2005	0.80% to 1.40%	230,571	10.94 to 10.83		2,499,509	2.31%	1.72% to 1.11%
2004	1.30% to 1.40%	82,004	10.72 to 10.71		878,643	1.67%	7.17% to 7.10%	(a) (b)

Gartmore GVIT – Mid Cap Growth Fund – Class I
2006	0.80% to 1.40%	2,500,190	6.61 to 6.35		15,951,881	0.00%	9.03% to 8.37%
2005	0.80% to 1.40%	2,707,801	6.06 to 5.86		15,930,090	0.00%	8.87% to 8.21%
2004	0.80% to 1.40%	2,756,609	5.57 to 5.41		14,976,290	0.00%	14.42% to 13.72%
2003	0.80% to 1.40%	3,739,814	4.87 to 4.76		17,845,308	0.00%	39.02% to 38.18%
2002	0.80% to 1.40%	2,660,898	3.45 to 3.50		9,184,293	0.00%	-37.90% to -37.52%

Gartmore GVIT – Mid Cap Growth Fund – Class II
2006	0.95% to 3.25%	7,591,461	14.41 to 15.58		124,920,647	0.00%	8.61% to 6.09%
2005	0.95% to 2.90%	1,755,225	13.27 to 14.83		26,824,934	0.00%	8.56% to 6.43%
2004	0.95% to 2.80%	1,007,022	12.22 to 13.96		14,330,559	0.00%	14.12% to 11.99%
2003	1.15% to 2.80%	299,970	12.61 to 12.46		3,768,515	0.00%	26.05% to 24.65%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity	Investment Income Ratio**	Total Return***
Gartmore GVIT – Mid Cap Index Fund – Class I
2006	0.80% to 2.95%	7,922,124	$ 16.00 to 16.86	$ 132,450,412	1.14%	9.01% to 6.66%
2005	0.80% to 3.00%	9,202,373	14.67 to 15.79	140,639,610	1.01%	11.20% to 8.75%
2004	0.80% to 3.00%	9,133,807	13.20 to 14.52	124,396,672	0.54%	14.81% to 12.26%
2003	0.80% to 2.80%	8,099,016	11.49 to 12.95	93,067,272	0.43%	33.57% to 29.50%	(b)
2002	0.80% to 1.40%	6,856,576	8.47 to 8.60	58,143,111	0.43%	-16.49% to -15.98%

Gartmore GVIT – Money Market Fund – Class I
2006	0.80% to 3.25%	30,582,760	13.64 to 9.56	454,065,260	4.85%	3.70% to 1.14%
2005	0.80% to 2.90%	25,994,392	13.15 to 9.55	403,550,772	2.81%	1.85% to -0.30%
2004	0.80% to 2.85%	24,692,825	12.91 to 9.59	402,897,044	0.83%	0.00% to -2.06%
2003	0.80% to 2.45%	31,545,544	12.91 to 9.83	530,145,947	0.67%	-0.18% to -1.71%	(b)
2002	0.80% to 1.40%	41,511,317	12.93 to 26.43	755,818,167	1.22%	-0.21% to 0.40%

Gartmore GVIT – Nationwide Fund – Class I
2006	0.80% to 1.40%	3,758,145	23.33 to 26.61	99,304,252	1.04%	12.72% to 12.04%
2005	0.80% to 1.40%	4,977,888	20.70 to 23.75	117,501,938	0.87%	6.58% to 5.94%
2004	0.80% to 1.40%	6,455,251	19.42 to 22.41	143,936,000	1.22%	8.87% to 8.22%
2003	0.80% to 1.40%	8,257,174	17.84 to 20.71	170,241,418	0.54%	26.49% to 25.73%
2002	0.80% to 1.40%	10,146,387	14.10 to 16.47	166,485,649	0.83%	-18.51% to -18.02%

Tax qualified
2006	1.30%	1,402,652	109.59	153,719,563	1.04%	12.15%
2005	1.30%	1,654,420	97.71	161,661,582	0.87%	6.05%
2004	1.30%	1,922,412	92.14	177,133,737	1.22%	8.32%
2003	1.30%	2,184,289	85.06	185,796,420	0.54%	25.86%
2002	1.30%	2,441,029	67.59	164,977,267	0.83%	-18.43%

Non-tax qualified
2006	1.30%	720,281	106.77	76,904,383	1.04%	12.15%
2005	1.30%	839,281	95.20	79,898,458	0.87%	6.05%
2004	1.30%	986,311	89.77	88,539,823	1.22%	8.32%
2003	1.30%	1,167,236	82.87	96,728,819	0.54%	25.86%
2002	1.30%	1,364,710	65.84	89,858,992	0.83%	-18.43%

Gartmore GVIT – Nationwide Fund – Class II
2006	1.10% to 3.25%	11,257,455	16.96 to 14.32	185,406,908	0.96%	12.16% to 9.73%
2005	1.10% to 2.95%	1,503,114	15.12 to 13.16	22,317,067	0.68%	5.87% to 3.89%
2004	1.10% to 2.95%	618,825	14.29 to 12.67	8,749,904	1.25%	8.33% to 6.30%
2003	1.15% to 2.60%	241,206	13.18 to 13.01	3,168,470	0.12%	31.81% to 30.12%	(a) (b)

Gartmore GVIT – Nationwide Leaders Fund – Class III
2006	0.80% to 1.40%	416,108	15.55 to 15.11	6,311,879	0.74%	15.20% to 14.50%
2005	0.80% to 1.40%	335,241	13.49 to 13.20	4,438,380	1.75%	9.42% to 8.76%
2004	0.80% to 1.40%	109,158	12.33 to 12.13	1,327,655	0.41%	17.82% to 17.11%
2003	0.80% to 1.40%	112,472	10.47 to 10.36	1,167,054	0.19%	24.59% to 23.84%
2002	0.80% to 1.40%	140,893	8.37 to 8.40	1,179,449	1.10%	-16.33% to -15.99%	(a) (b)

Gartmore GVIT – Small Cap Growth Fund – Class I
2006	0.80% to 1.40%	1,582,686	7.78 to 7.47	11,881,738	0.00%	2.38% to 1.77%
2005	0.80% to 1.40%	2,005,492	7.60 to 7.34	14,778,743	0.00%	7.23% to 6.58%
2004	0.80% to 1.40%	2,492,775	7.08 to 6.89	17,218,219	0.00%	12.51% to 11.83%
2003	0.80% to 1.40%	2,968,907	6.30 to 6.16	18,323,132	0.00%	33.19% to 32.39%
2002	0.80% to 1.40%	2,398,287	4.65 to 4.73	11,172,305	0.00%	-34.22% to -33.82%

Gartmore GVIT – Small Cap Growth Fund – Class II
2006	1.10% to 2.50%	874,697	16.77 to 15.87	14,347,686	0.00%	1.86% to 0.42%
2005	1.10% to 2.50%	833,849	16.47 to 15.81	13,450,257	0.00%	6.55% to 5.05%
2004	1.10% to 2.50%	638,942	15.45 to 15.05	9,662,816	0.00%	11.92% to 10.34%
2003	1.10% to 2.45%	253,671	13.81 to 13.64	3,438,415	0.00%	38.07% to 36.42%	(a) (b)

Gartmore GVIT – Small Cap Value Fund – Class I
2006	0.80% to 1.40%	4,662,412	23.71 to 22.50	105,594,388	0.43%	16.36% to 15.66%
2005	0.80% to 1.40%	5,997,704	20.38 to 19.45	117,326,190	0.06%	2.25% to 1.63%
2004	0.80% to 1.40%	7,841,197	19.93 to 19.14	150,777,246	0.00%	16.36% to 15.66%
2003	0.80% to 1.40%	9,693,103	17.13 to 16.55	160,991,883	0.00%	55.60% to 54.66%
2002	0.80% to 1.40%	10,426,144	10.70 to 11.01	111,874,546	0.01%	-28.18% to -27.75%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Gartmore GVIT – Small Cap Value Fund – Class II
2006	0.95% to 2.70%	1,931,451	$ 15.89 to 21.48	$	43,101,602	0.22%	15.99% to 13.94%
2005	0.95% to 2.50%	1,711,970	13.70 to 18.96		33,130,471	0.00%	1.81% to 0.22%
2004	0.95% to 2.70%	1,569,325	13.45 to 18.85		30,077,570	0.00%	15.89% to 13.84%
2003	0.95% to 2.70%	573,102	11.61 to 16.55		9,519,702	0.00%	16.09% to 65.55%	(a) (b)

Gartmore GVIT – Small Company Fund – Class I
2006	0.80% to 1.40%	5,162,695	38.86 to 36.34		189,121,006	0.10%	11.14% to 10.47%
2005	0.80% to 1.40%	6,249,268	34.96 to 32.89		206,998,058	0.00%	11.42% to 10.75%
2004	0.80% to 1.40%	7,419,392	31.38 to 29.70		221,665,394	0.00%	18.07% to 17.36%
2003	0.80% to 1.40%	8,866,029	26.57 to 25.31		225,469,321	0.00%	39.89% to 39.04%
2002	0.80% to 1.40%	10,259,753	18.20 to 19.00		187,503,638	0.00%	-18.49% to -17.99%

Gartmore GVIT – Small Company Fund – Class II
2006	0.95% to 3.25%	4,583,575	16.02 to 17.83		94,540,917	0.06%	10.69% to 8.13%
2005	0.95% to 2.90%	3,282,029	14.47 to 16.65		61,689,901	0.00%	10.95% to 8.77%
2004	0.95% to 2.65%	2,079,601	13.04 to 16.79		35,465,182	0.00%	17.66% to 15.64%
2003	0.95% to 2.70%	652,337	11.08 to 14.51		9,493,737	0.00%	10.84% to 45.11%	(a) (b)

Gartmore GVIT – Turner GVIT Growth Focus Fund – Class I
2003	0.80% to 1.40%	366,483	3.25 to 3.19		1,171,318	0.00%	49.76% to 48.85%
2002	0.80% to 1.40%	471,889	2.14 to 2.17		1,012,335	0.00%	-43.66% to -43.32%

Gartmore GVIT – Turner GVIT Growth Focus Fund – Class III
2003	0.80% to 1.40%	222,768	11.22 to 11.10		2,475,993	0.00%	49.27% to 48.37%
2002	0.80% to 1.40%	131,428	7.48 to 7.51		983,837	0.00%	-25.17% to -24.87%	(a) (b)

Gartmore GVIT – U.S. Growth Leaders Fund – Class II
2006	1.10% to 2.95%	1,117,672	18.07 to 14.94		19,776,812	0.17%	-1.60% to -3.43%
2005	1.10% to 2.95%	1,053,974	18.36 to 15.47		19,056,867	0.00%	10.47% to 8.41%
2004	1.10% to 2.95%	643,867	16.62 to 14.27		10,597,692	0.00%	10.87% to 8.79%
2003	1.10% to 2.50%	275,354	14.99 to 14.81		4,108,083	0.00%	49.94% to 48.08%	(a) (b)

Gartmore GVIT – U.S. Growth Leaders Fund – Class III
2006	0.80% to 1.40%	454,175	15.20 to 14.78		6,733,083	0.25%	-1.08% to -1.68%
2005	0.80% to 1.40%	651,383	15.37 to 15.03		9,813,069	0.00%	11.10% to 10.43%
2004	0.80% to 1.40%	652,165	13.83 to 13.61		8,890,581	0.00%	11.55% to 10.87%
2003	0.80% to 1.40%	994,663	12.40 to 12.28		12,223,231	0.00%	51.18% to 50.26%
2002	0.80% to 1.40%	38,325	8.17 to 8.20		313,433	0.00%	-18.29% to -17.96%	(a) (b)

Gartmore GVIT – Van Kampen GGVIT Comstock Value Fund – Class II
2006	0.80% to 3.25%	11,215,121	13.38 to 15.77		203,267,045	1.51%	14.64% to 11.81%
2005	0.80% to 3.00%	3,772,570	11.67 to 14.20		60,363,959	1.31%	3.12% to 0.84%
2004	0.80% to 3.00%	2,181,509	11.32 to 14.09		34,193,585	1.18%	13.17% to 13.57%	(a)
2003	1.10% to 2.50%	447,441	13.68 to 13.51		6,093,942	0.77%	36.80% to 35.10%	(a) (b)

Gartmore GVIT – Van Kampen GVIT Multi Sector Bond Fund – Class I
2006	0.80% to 2.70%	4,491,128	14.21 to 11.36		56,418,087	4.15%	4.00% to 2.02%
2005	0.80% to 2.35%	4,431,813	13.67 to 11.25		54,176,221	4.11%	1.36% to -0.21%
2004	0.80% to 2.35%	3,294,635	13.48 to 11.28		40,671,999	5.14%	5.68% to 4.03%
2003	0.80% to 2.25%	2,474,699	12.76 to 10.85		29,929,422	5.67%	11.22% to 8.50%	(b)
2002	0.80% to 1.40%	1,720,805	11.29 to 11.47		19,448,829	6.23%	5.71% to 6.35%

Gartmore GVIT – Worldwide Leaders Fund – Class III
2006	0.80% to 1.40%	384,266	17.17 to 16.89		6,502,021	0.82%	24.81% to 24.06%
2005	0.80% to 1.40%	219,580	13.75 to 13.62		2,992,804	0.44%	18.39% to 17.67%
2004	1.30% to 1.40%	19,645	11.58 to 11.57		227,435	0.00%	15.79% to 15.71%	(a) (b)

Janus Aspen Series – Balanced Portfolio – Service Shares
2006	0.95% to 2.55%	946,961	13.30 to 13.61		13,298,761	2.03%	9.37% to 7.61%
2005	0.95% to 2.55%	889,457	12.16 to 12.65		11,543,065	1.93%	6.64% to 4.92%
2004	0.95% to 2.55%	965,605	11.40 to 12.06		11,838,785	2.75%	7.26% to 5.53%
2003	1.10% to 2.55%	546,262	11.57 to 11.42		6,279,309	1.86%	15.72% to 14.23%	(a) (b)

Janus Aspen Series – Forty Portfolio – Service Shares
2006	0.80% to 2.80%	3,715,916	8.61 to 15.37		36,031,995	0.13%	8.25% to 6.07%
2005	0.80% to 2.80%	4,486,139	7.95 to 14.49		39,249,662	0.01%	11.66% to 9.41%
2004	0.80% to 2.80%	5,056,803	7.12 to 13.24		38,894,723	0.02%	17.02% to 14.67%
2003	0.80% to 2.80%	5,884,690	6.09 to 11.55		37,329,405	0.23%	19.27% to 15.50%	(b)
2002	0.80% to 1.40%	6,806,637	5.02 to 5.10		34,232,639	0.28%	-17.11% to -16.60%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Janus Aspen Series – Global Technology Portfolio – Service II Shares
2006	0.80% to 1.40%	411,359	$12.29 to 11.94	$	4,935,597	0.00%	7.08% to 6.43%
2005	0.80% to 1.40%	465,574	11.48 to 11.22		5,242,415	0.00%	10.44% to 9.77%
2004	0.80% to 1.40%	608,518	10.39 to 10.22		6,234,982	0.00%	0.03% to -0.58%
2003	0.80% to 1.40%	646,612	10.39 to 10.28		6,657,474	0.00%	45.96% to 45.08%
2002	0.80% to 1.40%	330,773	7.09 to 7.12		2,345,727	0.00%	-29.12% to -28.83%	(a) (b)

Janus Aspen Series – Global Technology Portfolio – Service Shares
2006	0.80% to 1.40%	957,855	4.22 to 4.05		3,893,993	0.00%	6.97% to 6.32%
2005	0.80% to 1.40%	1,331,430	3.94 to 3.81		5,087,677	0.00%	10.66% to 9.99%
2004	0.80% to 1.40%	1,940,791	3.56 to 3.46		6,737,842	0.00%	-0.24% to -0.84%
2003	0.80% to 1.40%	2,607,410	3.57 to 3.49		9,122,989	0.00%	45.30% to 44.43%
2002	0.80% to 1.40%	3,550,055	2.42 to 2.46		8,594,761	0.00%	-41.76% to -41.41%

Janus Aspen Series – INTECH Risk-Managed Core Portfolio – Service Shares
2006	0.95% to 2.50%	237,661	15.64 to 16.18		3,888,158	0.15%	9.72% to 8.01%
2005	0.95% to 2.50%	177,552	14.26 to 14.98		2,697,907	1.32%	9.86% to 8.15%
2004	0.95% to 2.70%	141,265	12.98 to 13.81		1,972,978	2.26%	16.35% to 14.29%
2003	1.15% to 2.70%	40,586	12.21 to 12.08		493,558	0.14%	22.08% to 20.80%	(a) (b)

Janus Aspen Series – International Growth Portfolio – Service II Shares
2006	0.80% to 3.25%	6,010,855	23.27 to 20.40		131,707,793	1.95%	45.53% to 41.94%
2005	0.80% to 2.20%	1,666,749	15.99 to 14.63		25,822,972	1.10%	30.96% to 29.12%
2004	0.80% to 2.20%	995,810	12.21 to 11.33		11,887,853	0.91%	17.76% to 13.29%	(b)
2003	0.80% to 1.40%	739,921	10.37 to 10.26		7,601,917	1.03%	33.47% to 32.66%
2002	0.80% to 1.40%	646,682	7.74 to 7.77		5,004,178	0.39%	-22.65% to-22.33%	(a) (b)

Janus Aspen Series – International Growth Portfolio – Service Shares
2006	0.80% to 2.15%	1,090,672	13.24 to 30.80		16,201,270	1.82%	45.46% to 43.49%
2005	0.80% to 2.45%	1,379,274	9.10 to 21.28		14,034,749	0.98%	30.89% to 28.72%
2004	0.80% to 2.45%	1,822,897	6.95 to 16.53		14,029,437	0.77%	17.74% to 15.78%
2003	0.80% to 2.15%	2,390,414	5.90 to 14.32		15,852,117	0.84%	33.46% to 43.16%	(b)
2002	0.80% to 1.40%	3,173,860	4.35 to 4.42		13,840,520	0.54%	-26.80% to -26.35%

JPMorgan Series Trust II – JPMorgan Mid Cap Value Portfolio
2006	0.80% to 1.40%	1,328,877	14.35 to 14.12		18,795,204	0.59%	15.91% to 15.21%
2005	0.80% to 1.40%	2,326,240	12.38 to 12.25		28,535,450	0.22%	8.34% to 7.69%
2004	0.80% to 1.40%	837,806	11.42 to 11.38		9,536,123	0.00%	14.23% to 13.78%	(a) (b)

MFS Variable Insurance Trust – Investors Growth Stock Series – Service Class
2006	0.95% to 3.15%	1,642,788	12.34 to 12.55		23,833,223	0.00%	6.29% to 3.93%
2005	0.95% to 3.15%	1,866,912	11.61 to 12.08		25,659,631	0.14%	3.24% to 0.95%
2004	1.10% to 3.15%	1,330,865	13.65 to 11.97		17,804,034	0.00%	7.79% to 5.55%
2003	1.15% to 2.80%	430,072	12.66 to 11.36		5,365,390	0.00%	26.62% to 13.64%	(a) (b)

MFS Variable Insurance Trust – Value Series – Service Class
2006	0.80% to 3.15%	3,466,377	11.10 to 16.18		63,110,866	0.70%	11.02% to 16.72%	(a)
2005	1.10% to 3.15%	1,732,243	15.74 to 13.86		26,565,220	0.77%	5.30% to 3.12%
2004	1.10% to 3.15%	871,754	14.94 to 13.44		12,731,984	0.38%	13.56% to 11.21%
2003	1.10% to 2.75%	318,844	13.16 to 12.12		4,095,704	0.01%	31.60% to 21.20%	(a) (b)

MTB Large Cap Growth Fund II
2006	1.15% to 2.35%	91,381	11.48 to 11.12		1,057,960	0.54%	9.08% to 7.76%
2005	1.15% to 2.35%	87,319	10.53 to 10.32		928,731	0.45%	0.85% to -0.37%
2004	1.15% to 2.35%	58,138	10.44 to 10.36		611,643	0.75%	4.37% to 3.58%	(a) (b)

MTB Large Cap Value Fund II
2006	1.15% to 2.35%	100,046	14.34 to 13.89		1,450,895	1.01%	16.26% to 14.85%
2005	1.15% to 2.35%	82,930	12.33 to 12.09		1,038,567	0.97%	9.02% to 7.70%
2004	1.15% to 2.35%	50,546	11.31 to 11.23		579,510	1.08%	13.12% to 12.26%	(a) (b)

MTB Managed Allocation Fund – Aggressive Growth II
2006	1.15% to 1.85%	27,147	12.19 to 12.04		329,302	3.32%	13.51% to 12.71%
2005	1.35% to 1.75%	11,254	10.72 to 10.69		120,559	1.08%	7.21% to 6.92%	(a) (b)

MTB Managed Allocation Fund – Conservative Growth II
2006	1.15% to 1.75%	8,142	10.83 to 10.72		88,038	3.85%	5.73% to 5.09%
2005	1.25% to 1.75%	3,652	10.24 to 10.20		37,354	3.18%	2.39% to 2.04%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
MTB Managed Allocation Fund – Moderate Growth II
2006	1.15% to 2.60%	703,592	$ 12.08 to 11.62	$	8,580,243	2.61%	9.15% to 7.56%
2005	1.15% to 2.60%	659,109	11.07 to 10.81		7,392,704	1.78%	2.80% to 1.30%
2004	1.15% to 2.35%	396,790	10.77 to 10.68		4,342,283	1.60%	7.65% to 6.84%	(a) (b)

Neuberger Berman Advisers Management Trust – Fasciano Portfolio – Class S
2006	0.80% to 2.50%	399,331	9.77 to 15.09		6,218,632	0.00%	-2.34% to 2.63%	(a)
2005	0.95% to 2.50%	361,496	12.43 to 14.71		5,431,443	0.00%	1.92% to 0.33%
2004	1.05% to 2.50%	257,470	12.18 to 14.66		3,819,533	0.00%	10.70% to 9.08%
2003	1.15% to 2.70%	102,949	13.60 to 13.41		1,391,900	0.00%	36.01% to 34.14%	(a) (b)

Neuberger Berman Advisers Management Trust – Growth Portfolio – Class I
2006	0.80% to 1.40%	3,507,840	18.76 to 21.62		141,328,488	0.00%	13.16% to 12.48%
2005	0.80% to 1.40%	4,407,773	16.58 to 19.22		155,259,354	0.00%	12.59% to 11.91%
2004	0.80% to 1.40%	5,418,656	14.72 to 17.18		167,323,055	0.00%	15.67% to 14.97%
2003	0.80% to 1.40%	6,552,886	12.73 to 14.94		172,620,548	0.00%	30.35% to 29.56%
2002	0.80% to 1.40%	7,698,064	9.76 to 26.11		153,833,660	0.00%	-32.13% to -31.72%

Neuberger Berman Advisers Management Trust – Guardian Portfolio – I Class Shares
2006	0.80% to 1.40%	1,399,614	13.79 to 13.09		18,425,578	0.61%	12.47% to 11.79%
2005	0.80% to 1.40%	1,777,747	12.26 to 11.71		20,912,861	0.14%	7.53% to 6.88%
2004	0.80% to 1.40%	2,342,770	11.40 to 10.95		25,763,450	0.11%	14.89% to 14.19%
2003	0.80% to 1.40%	2,668,163	9.93 to 9.59		25,677,371	0.81%	30.71% to 29.92%
2002	0.80% to 1.40%	3,171,959	7.38 to 7.59		23,476,909	0.85%	-27.48% to -27.04%

Neuberger Berman Advisers Management Trust – International Portfolio – Class S
2006	0.80% to 3.25%	10,936,799	10.39 to 13.73		153,950,501	0.34%	3.93% to 19.45%	(a)
2005	1.10% to 2.90%	816,611	11.66 to 11.52		9,478,809	0.19%	16.64% to 15.23%	(a) (b)

Neuberger Berman Advisers Management Trust – Limited Maturity Bond Portfolio – Class I
2006	0.80% to 3.25%	19,400,879	14.68 to 9.53		224,892,310	3.51%	3.37% to 0.82%
2005	0.80% to 2.75%	8,471,408	14.20 to 9.59		116,762,312	2.78%	0.63% to -1.34%
2004	0.80% to 2.75%	8,511,968	14.11 to 9.72		125,688,679	3.65%	-0.03% to -1.99%
2003	0.80% to 2.60%	7,936,054	14.11 to 10.21		129,353,531	4.54%	1.60% to -0.34%	(b)
2002	0.80% to 1.40%	8,258,426	13.89 to 21.48		142,681,972	4.63%	3.86% to 4.50%

Neuberger Berman Advisers Management Trust – Mid Cap Growth Portfolio – S Class Shares
2006	0.95% to 2.80%	502,810	15.56 to 17.17		9,020,221	0.00%	13.39% to 11.27%
2005	0.95% to 2.80%	497,419	13.72 to 15.43		7,966,901	0.00%	12.35% to 10.26%
2004	0.95% to 2.80%	543,076	12.22 to 13.99		7,797,293	0.00%	14.93% to 12.79%
2003	1.15% to 2.80%	425,358	12.62 to 12.41		5,345,674	0.00%	26.19% to 24.08%

Neuberger Berman Advisers Management Trust – Partners Portfolio – Class I
2006	0.80% to 1.40%	5,867,088	29.10 to 34.71		205,069,108	0.68%	11.35% to 10.67%
2005	0.80% to 1.40%	7,134,701	26.14 to 31.36		225,087,003	0.95%	17.10% to 16.40%
2004	0.80% to 1.40%	7,656,207	22.32 to 26.94		207,292,280	0.01%	18.02% to 17.31%
2003	0.80% to 1.40%	9,238,599	18.91 to 22.97		213,058,281	0.00%	34.01% to 33.20%
2002	0.80% to 1.40%	10,763,542	14.11 to 17.39		186,221,915	0.57%	-25.21% to -24.75%

Neuberger Berman Advisers Management Trust – Regency Portfolio – Class S
2006	0.80% to 2.55%	1,440,361	10.21 to 12.39		18,134,505	0.33%	2.14% to 8.11%	(a)
2005	1.10% to 2.70%	345,932	11.58 to 11.45		3,990,761	0.00%	15.77% to 14.53%	(a) (b)

Neuberger Berman Advisers Management Trust – Socially Responsive Portfolio Class I
2006	0.80% to 3.25%	14,567,602	13.54 to 15.09		232,049,667	0.09%	12.80% to 10.02%
2005	0.80% to 3.00%	2,318,131	12.00 to 13.81		33,095,968	0.00%	6.00% to 3.66%
2004	0.95% to 3.00%	851,027	12.45 to 13.32		11,561,669	0.00%	12.20% to 9.88%
2003	1.10% to 2.15%	87,804	12.28 to 12.20		1,075,366	0.00%	22.84% to 21.97%	(a) (b)

Oppenheimer Global Securities Fund/VA – Class 3
2006	0.80% to 1.40%	5,524,646	22.35 to 21.86		121,147,673	0.98%	16.75% to 16.05%
2005	0.80% to 1.40%	5,308,749	19.15 to 18.84		100,226,186	0.96%	13.43% to 12.74%
2004	0.80% to 1.40%	4,802,654	16.88 to 16.71		80,353,321	1.07%	18.24% to 17.53%
2003	0.80% to 1.40%	3,077,238	14.28 to 14.22		43,773,740	0.00%	42.77% to 42.19%	(a) (b)

Oppenheimer Global Securities Fund/VA – Class 4
2006	0.95% to 2.70%	6,304,392	15.20 to 14.50		94,470,011	0.85%	16.29% to 14.24%
2005	0.95% to 2.50%	5,674,152	13.07 to 12.73		73,470,008	0.64%	12.97% to 11.20%
2004	0.95% to 2.70%	2,505,064	11.57 to 11.43		28,879,946	0.00%	15.69% to 14.33%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Oppenheimer Variable Account Funds – Oppenheimer Balanced Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	4,523,880	$	23.58 to 25.18	$	137,769,586	2.17%	10.26% to 9.59%
2005	0.80% to 1.40%	5,647,775		21.38 to 22.98		155,150,510	1.80%	3.06% to 2.44%
2004	0.80% to 1.40%	6,601,220		20.75 to 22.43		175,416,139	1.04%	9.22% to 8.56%
2003	0.80% to 1.40%	7,605,940		19.00 to 20.66		184,623,097	2.85%	23.96% to 23.21%
2002	0.80% to 1.40%	8,670,954		15.33 to 22.73		169,953,878	3.70%	-11.66% to -11.12%

Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	6,037,158		17.31 to 16.34		99,391,010	0.39%	7.09% to 6.44%
2005	0.80% to 1.40%	7,865,933		16.16 to 15.36		121,515,526	0.95%	4.26% to 3.63%
2004	0.80% to 1.40%	10,200,109		15.50 to 14.82		151,901,981	0.31%	6.08% to 5.44%
2003	0.80% to 1.40%	11,344,613		14.62 to 14.05		160,093,105	0.40%	29.90% to 29.11%
2002	0.80% to 1.40%	12,583,296		10.88 to 11.25		137,424,259	0.64%	-27.88% to -27.44%

Oppenheimer Variable Account Funds – Oppenheimer Capital Appreciation Fund/VA – Service Class
2006	0.95% to 2.95%	4,129,863		12.79 to 13.41		64,078,686	0.19%	6.66% to 4.51%
2005	0.95% to 2.90%	4,173,108		11.99 to 12.85		61,055,416	0.66%	3.87% to 1.83%
2004	0.95% to 2.75%	3,161,586		11.54 to 12.65		44,803,436	0.18%	5.60% to 3.68%
2003	1.10% to 2.70%	1,061,170		13.70 to 13.51		14,365,108	0.00%	37.02% to 35.08%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer Core Bond Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	5,265,751		17.21 to 17.57		115,936,276	5.40%	4.44% to 3.81%
2005	0.80% to 1.40%	6,433,177		16.48 to 16.93		135,323,164	5.43%	1.77% to 1.15%
2004	0.80% to 1.40%	8,037,160		16.19 to 16.74		165,175,386	4.84%	4.65% to 4.02%
2003	0.80% to 1.40%	10,449,202		15.47 to 16.09		203,238,653	6.01%	5.93% to 5.28%
2002	0.80% to 1.40%	13,606,303		14.61 to 23.00		247,141,316	7.33%	7.55% to 8.21%

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	7,165,665		39.75 to 38.62		294,029,956	1.05%	16.75% to 16.05%
2005	0.80% to 1.40%	8,956,758		34.04 to 33.28		315,862,240	1.04%	13.40% to 12.71%
2004	0.80% to 1.40%	11,400,256		30.02 to 29.53		355,783,572	1.28%	18.21% to 17.50%
2003	0.80% to 1.40%	14,615,943		25.40 to 25.13		387,057,516	0.78%	41.88% to 41.02%
2002	0.80% to 1.40%	19,239,592		17.82 to 19.54		360,616,517	0.58%	-23.23% to -22.76%

Oppenheimer Variable Account Funds – Oppenheimer Global Securities Fund/VA – Service Class
2006	0.95% to 2.30%	967,988		18.27 to 22.31		22,124,575	0.88%	16.25% to 14.67%
2005	0.95% to 2.30%	1,118,144		15.72 to 19.46		22,094,897	0.85%	12.98% to 11.44%
2004	0.95% to 2.30%	1,316,404		13.91 to 17.46		23,100,094	1.49%	17.75% to 16.15%
2003	1.10% to 2.30%	1,143,121		15.19 to 15.03		17,208,692	0.00%	51.92% to 50.31%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Non-Service Shares
2006	1.30% to 1.40%	87,967		10.52 to 10.51		924,954	0.00%	5.16% to 5.09%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer High Income Fund/VA – Service Class
2006	0.95% to 2.75%	3,180,409		12.62 to 12.22		44,449,263	7.17%	8.19% to 6.23%
2005	0.95% to 2.45%	3,038,153		11.66 to 12.67		39,502,363	5.82%	1.04% to -0.49%
2004	0.95% to 2.35%	2,601,130		11.54 to 13.18		33,693,872	4.57%	7.70% to 6.24%
2003	0.95% to 2.70%	1,175,216		10.72 to 11.97		14,186,550	0.00%	7.17% to 19.74%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	2,841,846		10.59 to 10.17		29,040,677	1.13%	14.11% to 13.42%
2005	0.80% to 1.40%	3,231,392		9.28 to 8.96		29,087,134	1.38%	5.13% to 4.50%
2004	0.80% to 1.40%	3,830,214		8.83 to 8.58		32,960,291	0.87%	8.58% to 7.93%
2003	0.80% to 1.40%	4,118,904		8.13 to 7.95		32,811,064	0.85%	25.71% to 24.95%
2002	0.80% to 1.40%	3,496,934		6.36 to 6.47		22,280,163	0.75%	-19.94% to -19.45%

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Fund/VA – Service Class
2006	0.95% to 3.25%	14,409,505		14.27 to 14.33		236,003,634	0.48%	13.67% to 11.04%
2005	0.95% to 2.95%	3,831,295		12.56 to 13.01		55,729,762	0.95%	4.74% to 2.63%
2004	0.95% to 2.85%	2,371,195		11.99 to 12.70		33,173,754	0.49%	8.11% to 6.04%
2003	1.10% to 2.80%	783,827		13.16 to 11.98		10,229,287	0.00%	31.60% to 19.83%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Small Cap Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	227,665		10.04 to 10.00		2,277,965	0.00%	0.41% to 0.01%	(a) (b)

Oppenheimer Variable Account Funds – Oppenheimer Main Street^® Small Cap Fund/VA – Service Class
2006	0.95% to 3.25%	3,305,000		16.41 to 18.39		70,852,158	0.01%	13.57% to 10.94%
2005	0.95% to 2.90%	1,105,896		14.45 to 16.74		21,104,247	0.00%	8.68% to 6.54%
2004	0.95% to 2.70%	731,026		13.29 to 17.34		12,914,027	0.00%	18.05% to 15.96%
2003	0.95% to 2.65%	272,097		11.26 to 14.96		4,089,001	0.00%	12.62% to 49.59%	(a) (b)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity	Investment Income Ratio**	Total Return***
Oppenheimer Variable Account Funds – Oppenheimer Mid Cap Fund/VA – Non-Service Shares
2006	0.80% to 1.40%	3,147,364	$ 6.40 to 6.15	$19,465,941	0.00%	2.13% to 1.52%
2005	0.80% to 1.40%	4,765,383	6.27 to 6.06	28,985,432	0.00%	11.43% to 10.76%
2004	0.80% to 1.40%	5,103,889	5.63 to 5.47	28,008,620	0.00%	18.82% to 18.10%
2003	0.80% to 1.40%	4,845,750	4.74 to 4.63	22,499,732	0.00%	24.59% to 23.83%
2002	0.80% to 1.40%	4,980,792	3.74 to 3.80	18,660,610	0.67%	-28.80% to -28.37%

Pioneer Small Cap Value II VCT Portfolio – Class I
2005	0.95% to 1.05%	80,124	15.46 to 15.43	1,237,644	0.48%	13.86% to 13.74%
2004	0.95% to 1.05%	38,238	13.58 to 13.56	519,026	0.00%	21.15% to 21.02%
2003	0.95%	2,627	11.21	29,448	0.60%	12.10%	(a) (b)

Pioneer Small Cap Value VCT Portfolio – Class I
2006	0.95% to 1.05%	124,148	10.81 to 10.80	1,341,708	0.26%	8.10% to 8.04%	(a) (b)

Putnam Variable Trust – Putnam VT Growth & Income Fund – IB Shares
2006	1.05% to 2.80%	551,603	14.73 to 15.18	8,748,454	1.52%	14.70% to 12.67%
2005	0.95% to 2.80%	644,011	12.87 to 13.47	8,937,063	1.64%	4.23% to 2.29%
2004	1.05% to 2.80%	491,760	12.33 to 13.17	6,602,053	0.90%	9.94% to 8.00%
2003	1.15% to 2.50%	131,535	12.33 to 12.22	1,615,235	0.00%	23.30% to 22.17%	(a) (b)

Putnam Variable Trust – Putnam VT International Equity Fund – IB Shares
2006	1.15% to 2.40%	87,538	20.43 to 19.50	1,761,143	0.61%	26.25% to 24.66%
2005	1.15% to 2.65%	92,906	16.18 to 15.53	1,485,977	1.49%	10.91% to 9.23%
2004	1.15% to 2.65%	126,817	14.59 to 14.22	1,836,698	2.11%	14.86% to 13.12%
2003	0.95% to 2.40%	186,001	11.65 to 12.59	2,324,072	0.00%	16.55% to 25.93%	(a) (b)

Putnam Variable Trust – Putnam VT Voyager Fund – IB Shares
2006	0.95% to 2.80%	213,216	12.21 to 12.50	2,766,251	0.10%	4.44% to 2.49%
2005	0.95% to 2.80%	276,236	11.69 to 12.20	3,456,648	0.71%	4.69% to 2.74%
2004	1.10% to 2.80%	261,001	12.22 to 11.87	3,144,631	0.17%	3.88% to 2.09%
2003	1.15% to 2.80%	101,667	11.76 to 11.63	1,179,509	0.00%	17.63% to 16.31%	(a) (b)

Strong Variable Insurance Funds, Inc. – Strong International Stock Fund II
2003	1.30%	2	1.04	2	2.56%	-81.09%
2002	0.80% to 1.40%	2,668,379	5.45 to 5.66	14,603,968	3.33%	-27.57% to -27.13%

T. Rowe Price Blue Chip Growth Portfolio – II
2006	0.80% to 2.90%	1,860,568	10.59 to 11.78	22,408,234	0.29%	5.86% to 6.17%	(a)
2005	1.10% to 2.90%	596,546	11.23 to 11.10	6,676,122	0.19%	12.32% to 10.96%	(a) (b)

T. Rowe Price Equity Income Portfolio – II
2006	0.80% to 2.95%	4,412,317	11.04 to 12.01	54,220,730	1.32%	10.35% to 15.16%	(a)
2005	1.10% to 2.80%	1,288,795	10.56 to 10.44	13,568,484	1.31%	5.59% to 4.39%	(a) (b)

T. Rowe Price Limited Term Bond Portfolio – Class II
2006	1.10% to 2.80%	897,335	10.34 to 10.05	9,206,800	3.73%	2.88% to 1.12%
2005	1.10% to 2.70%	297,273	10.05 to 9.95	2,977,178	2.51%	0.54% to 0.54%	(a) (b)

Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Class R1
2006	0.80% to 1.40%	690,934	11.40 to 11.22	7,763,189	7.87%	5.55% to 4.91%
2005	0.80% to 1.40%	653,908	10.80 to 10.69	6,998,382	6.56%	-3.89% to -4.47%
2004	0.80% to 1.40%	494,491	11.24 to 11.19	5,536,020	0.00%	12.37% to 11.92%	(a) (b)

Van Eck Worldwide Insurance Trust – Worldwide Bond Fund – Initial Class
2006	0.80% to 1.40%	1,107,173	15.82 to 16.79	21,961,040	8.79%	5.63% to 4.99%
2005	0.80% to 1.40%	1,440,459	14.98 to 15.99	26,984,368	7.64%	-3.81% to -4.39%
2004	0.80% to 1.40%	1,831,299	15.57 to 16.72	35,793,497	9.55%	8.28% to 7.62%
2003	0.80% to 1.40%	2,862,991	14.38 to 15.54	51,489,785	2.03%	17.22% to 16.51%
2002	0.80% to 1.40%	4,136,893	12.27 to 16.90	62,492,689	0.00%	19.95% to 20.68%

Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Class R1
2006	0.80% to 1.40%	1,106,434	22.92 to 22.56	25,013,200	0.53%	38.42% to 37.59%
2005	0.80% to 1.40%	877,819	16.56 to 16.40	14,412,087	0.59%	30.81% to 30.02%
2004	0.80% to 1.40%	513,201	12.66 to 12.61	6,474,361	0.00%	26.61% to 26.10%	(a) (b)

Van Eck Worldwide Insurance Trust – Worldwide Emerging Markets Fund – Initial Class
2006	0.80% to 1.40%	2,079,717	21.49 to 20.22	42,350,828	0.63%	38.38% to 37.55%
2005	0.80% to 1.40%	2,663,102	15.53 to 14.70	39,392,769	0.84%	30.94% to 30.15%
2004	0.80% to 1.40%	3,491,296	11.86 to 11.29	39,648,217	0.64%	24.88% to 24.13%
2003	0.80% to 1.40%	5,585,517	9.50 to 9.01	51,038,448	0.10%	52.96% to 52.03%
2002	0.80% to 1.40%	5,964,059	5.98 to 6.21	35,821,395	0.25%	-4.26% to -3.68%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity	Investment Income Ratio**	Total Return***
Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Class R1
2006	0.80% to 1.40%	1,470,219		$ 23.26 to 22.89	$ 33,718,368	0.07%	23.54% to 22.80%
2005	0.80% to 1.40%	1,551,985		18.83 to 18.64	28,960,958	0.19%	50.41% to 49.50%
2004	0.80% to 1.40%	746,021		12.52 to 12.47	9,304,789	0.00%	25.17% to 24.67%	(a) (b)

Van Eck Worldwide Insurance Trust – Worldwide Hard Assets Fund – Initial Class
2006	0.80% to 1.40%	1,340,984		32.32 to 31.31	48,678,714	0.07%	23.50% to 22.75%
2005	0.80% to 1.40%	1,699,058		26.17 to 25.51	49,998,755	0.35%	50.46% to 49.56%
2004	0.80% to 1.40%	2,157,026		17.39 to 17.05	42,204,825	0.43%	23.24% to 22.49%
2003	0.80% to 1.40%	3,205,129		14.14 to 13.95	50,839,940	0.41%	43.92% to 43.05%
2002	0.80% to 1.40%	3,463,167		9.75 to 11.96	38,122,503	0.82%	-4.19% to -3.61%

Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class I
2006	0.80% to 1.40%	136,094		10.44 to 10.40	1,416,424	1.17%	4.45% to 4.03%	(a) (b)

Van Kampen – The Universal Institutional Funds, Inc. – Core Plus Fixed Income Portfolio – Class II
2006	0.95% to 3.25%	10,572,601		11.13 to 10.14	113,144,737	3.36%	2.58% to 0.20%
2005	0.95% to 2.90%	1,959,026		10.85 to 10.22	20,680,370	2.78%	2.95% to 0.93%
2004	1.10% to 2.85%	797,097		10.44 to 10.13	8,251,586	3.48%	2.93% to 1.12%
2003	1.15% to 2.60%	147,979		10.14 to 10.04	1,495,211	0.01%	1.37% to 0.38%	(a) (b)

Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class I
2006	0.80% to 1.40%	498,158		19.88 to 18.77	9,413,461	8.31%	9.92% to 9.26%
2005	0.80% to 1.40%	725,492		18.08 to 17.18	12,534,982	7.55%	11.36% to 10.68%
2004	0.80% to 1.40%	992,232		16.24 to 15.52	15,474,285	6.82%	9.18% to 8.52%
2003	0.80% to 1.40%	1,706,650		14.87 to 14.30	24,503,530	0.00%	26.84% to 26.08%
2002	0.80% to 1.40%	1,362,649		11.34 to 11.72	15,504,147	8.08%	7.69% to 8.35%

Van Kampen – The Universal Institutional Funds, Inc. – Emerging Markets Debt Portfolio – Class II
2006	1.10% to 2.15%	145,536		16.72 to 16.02	2,396,495	8.35%	9.59% to 8.43%
2005	1.10% to 2.45%	171,015		15.26 to 14.64	2,577,975	7.16%	10.91% to 9.40%
2004	0.95% to 2.45%	246,266		11.80 to 13.38	3,341,560	8.89%	9.03% to 7.38%
2003	1.10% to 2.65%	217,082		12.64 to 12.44	2,731,124	0.00%	26.36% to 24.38%

Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class I
2006	0.80% to 1.40%	3,810,701		59.82 to 56.82	218,265,572	1.07%	36.94% to 36.12%
2005	0.80% to 1.40%	4,368,496		43.68 to 41.74	183,618,271	1.20%	16.12% to 15.42%
2004	0.80% to 1.40%	5,160,818		37.62 to 36.16	187,725,450	1.47%	35.30% to 34.49%
2003	0.80% to 1.40%	5,597,622		27.80 to 26.89	151,232,148	0.00%	36.41% to 35.59%
2002	0.80% to 1.40%	6,388,968		19.83 to 20.38	127,217,556	3.13%	-2.18% to -1.58%

Van Kampen – The Universal Institutional Funds, Inc. – U.S. Real Estate Portfolio – Class II
2006	0.95% to 2.80%	4,145,461		23.69 to 26.78	116,700,717	0.94%	36.36% to 33.83%
2005	0.95% to 2.70%	3,310,194		17.37 to 20.07	68,799,980	1.14%	15.65% to 13.61%
2004	0.95% to 2.75%	2,479,086		15.02 to 17.65	44,807,033	1.33%	34.78% to 32.33%
2003	0.95% to 2.70%	801,715		11.14 to 13.35	10,824,041	0.00%	11.44% to 33.46%	(a)

Victory Variable Insurance Funds – Diversified Stock Fund Class A Shares
2006	1.15% to 2.10%	65,321		14.95 to 14.47	969,737	0.30%	12.38% to 11.30%
2005	1.15% to 2.10%	64,852		13.30 to 13.00	859,735	0.07%	7.50% to 6.47%
2004	1.15% to 2.00%	40,476		12.37 to 12.23	502,687	0.97%	8.40% to 7.47%
2003	1.25% to 1.70%	1,741		11.41 to 12.90	21,716	0.27%	14.11% to 13.95%	(a) (b)

Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Discovery Fund^SM
2006	0.80% to 1.40%	2,138,630		23.22 to 27.88	68,607,503	0.00%	13.73% to 13.04%
2005	0.80% to 1.40%	2,486,339		20.42 to 24.66	70,294,123	0.00%	7.41% to 6.76%
2004	0.80% to 1.40%	3,008,430		19.01 to 23.10	79,265,637	0.00%	14.79% to 14.10%
2003	0.80% to 1.40%	3,528,905		16.56 to 20.24	81,166,340	0.00%	38.31% to 37.48%
2002	0.80% to 1.40%	4,412,647		11.97 to 17.90	73,328,599	0.00%	-13.25% to -12.72%

Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Large Company Growth Fund
2006	1.40% to 2.20%	13,143		10.60 to 10.41	137,213	0.00%	0.92% to 0.10%
2005	1.40% to 2.20%	13,234		10.50 to 10.40	137,863	0.18%	4.22% to 3.38%
2004	2.10%	2,297		10.06	23,117	0.00%	0.64%	(a) (b)

Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Money Market Fund
2006	1.15% to 1.40%	1,635		10.47 to 10.41	17,055	26.87%	3.22% to 2.96%
2005	1.40%	1,058		10.11	10,698	34.36%	1.11%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II (NOTES TO FINANCIAL STATEMENTS, Continued)


	Contract Expense Rate*	Units	Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Opportunity Fund^SM
2006	0.80% to 1.40%	7,005,669	$ 32.42 to 38.06		$334,888,686	0.00%	11.32% to 10.65%
2005	0.80% to 1.40%	8,710,393	29.12 to 34.39		373,720,329	0.00%	7.02% to 6.38%
2004	0.80% to 1.40%	10,844,850	27.21 to 32.33		434,154,524	0.00%	17.27% to 16.57%
2003	0.80% to 1.40%	13,018,344	23.20 to 27.74		444,110,406	0.07%	35.91% to 35.09%
2002	0.80% to 1.40%	16,110,284	17.07 to 28.12		403,963,377	0.34%	-27.84% to -27.40%

Wells Fargo Advantage Variable Trust Funds^SM– Wells Fargo Advantage VT Total Return Bond Fund
2006	1.15%	2,116	10.39		21,981	4.32%	2.63%
2005	1.15%	2,116	10.12		21,419	0.49%	0.73%


2006 Reserves for annuity contracts in payout phase:					11,157,956

2006 Contract owners’ equity				$	17,880,717,436


2005 Reserves for annuity contracts in payout phase:					9,694,221

2005 Contract owners’ equity				$	13,950,161,968


2004 Reserves for annuity contracts in payout phase:					9,554,595

2004 Contract owners’ equity				$	12,749,242,735


2003 Reserves for annuity contracts in payout phase:					10,819,827

2003 Contract owners’ equity				$	11,391,384,498


2002 Reserves for annuity contracts in payout phase:					10,470,739

2002 Contract owners’ equity				$	9,986,015,760

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 which 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.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholder

Nationwide Life Insurance Company:

We have audited the consolidated financial statements of Nationwide Life Insurance Company and subsidiaries (the Company) as listed in the accompanying index. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying index. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Nationwide Life Insurance Company and subsidiaries as of December 31, 2006 and 2005, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2006, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.

As discussed in Note 3 to the consolidated financial statements, the Company adopted the American Institute of Certified Public Accountants’ Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts, in 2004.

/s/ KPMG LLP

Columbus, Ohio

March 1, 2007

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Income

(in millions)


	Years ended December 31,
	2006		2005		2004
Revenues:
Policy charges	$	1,132.6	$	1,055.1	$	1,025.2
Traditional life insurance and immediate annuity premiums		308.3		260.0		270.4
Net investment income		2,058.5		2,105.2		2,000.5
Net realized gains (losses) on investments, hedging instruments and hedged items		7.1		10.6		(36.4	)
Other income		0.2		2.2		9.8

Total revenues		3,506.7		3,433.1		3,269.5

Benefits and expenses:
Interest credited to policyholder account values		1,330.1		1,331.0		1,277.2
Life insurance and annuity benefits		450.3		377.5		369.2
Policyholder dividends on participating policies		25.6		33.1		36.2
Amortization of deferred policy acquisition costs		450.3		466.3		410.1
Interest expense on debt, primarily with Nationwide Financial Services, Inc. (NFS)		65.5		66.3		59.8
Other operating expenses		531.8		538.8		582.0

Total benefits and expenses		2,853.6		2,813.0		2,734.5

Income from continuing operations before federal income tax expense		653.1		620.1		535.0
Federal income tax expense		30.6		95.6		120.0

Income from continuing operations		622.5		524.5		415.0
Cumulative effect of adoption of accounting principle, net of taxes		—		—		(3.3	)

Net income	$	622.5	$	524.5	$	411.7

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

(in millions, except per share amounts)


	December 31,
	2006		2005
Assets
Investments:
Securities available-for-sale, at fair value:
Fixed maturity securities (cost $25,197.2 in 2006; $26,658.9 in 2005)	$	25,275.4	$	27,198.1
Equity securities (cost $28.5 in 2006; $35.1 in 2005)		34.4		42.1
Mortgage loans on real estate, net		8,202.2		8,458.9
Real estate, net		54.8		84.9
Policy loans		639.2		604.7
Other long-term investments		598.9		641.5
Short-term investments, including amounts managed by a related party		1,722.0		1,596.6

Total investments		36,526.9		38,626.8

Cash		0.5		0.9
Accrued investment income		323.6		344.0
Deferred policy acquisition costs		3,758.0		3,597.9
Other assets		2,001.5		1,699.1
Assets held in separate accounts		67,351.9		62,689.8

Total assets	$	109,962.4	$	106,958.5

Liabilities and Shareholder’s Equity
Liabilities:
Future policy benefits and claims	$	34,409.4	$	35,941.1
Short-term debt		75.2		242.3
Long-term debt, payable to NFS		700.0		700.0
Other liabilities		2,988.1		3,130.1
Liabilities related to separate accounts		67,351.9		62,689.8

Total liabilities		105,524.6		102,703.3

Shareholder’s equity:
Common stock, $1 par value; authorized - 5.0 shares; issued and outstanding - 3.8 shares		3.8		3.8
Additional paid-in capital		274.4		274.4
Retained earnings		4,130.9		3,883.4
Accumulated other comprehensive income		28.7		93.6

Total shareholder’s equity		4,437.8		4,255.2

Total liabilities and shareholder’s equity	$	109,962.4	$	106,958.5

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Shareholder’s Equity

(in millions)


	Capital shares		Additional paid-in capital		Retained earnings			Accumlated other comprehensive income			Total shareholder’s equity
Balance as of December 31, 2003	$	3.8	$	271.3	$	3,257.2		$	467.3		$	3,999.6

Comprehensive income:
Net income		—		—		411.7			—			411.7
Other comprehensive loss, net of taxes		—		—		—			(73.5	)		(73.5	)

Total comprehensive income												338.2

Capital contributed by NFS		—		3.1		—			—			3.1
Dividends to NFS		—		—		(125.0	)		—			(125.0	)

Balance as of December 31, 2004		3.8		274.4		3,543.9			393.8			4,215.9

Comprehensive income:
Net income		—		—		524.5			—			524.5
Other comprehensive loss, net of taxes		—		—		—			(300.2	)		(300.2	)

Total comprehensive income												224.3

Dividends to NFS		—		—		(185.0	)		—			(185.0	)

Balance as of December 31, 2005		3.8		274.4		3,883.4			93.6			4,255.2

Comprehensive income:
Net income		—		—		622.5			—			622.5
Other comprehensive loss, net of taxes		—		—		—			(64.9	)		(64.9	)

Total comprehensive income												557.6

Dividends to NFS		—		—		(375.0	)		—			(375.0	)

Balance as of December 31, 2006	$	3.8	$	274.4	$	4,130.9		$	28.7		$	4,437.8

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Cash Flows

(in millions)


	Years ended December 31,
	2006			2005			2004
Cash flows from operating activities:
Net income	$	622.5		$	524.5		$	411.7
Adjustments to reconcile net income to net cash provided by operating activities:
Net realized (gains) losses on investments, hedging instruments and hedged items		(7.1	)		(10.6	)		36.4
Interest credited to policyholder account values		1,330.1			1,331.0			1,277.2
Capitalization of deferred policy acquisition costs		(569.6	)		(460.5	)		(496.4	)
Amortization of deferred policy acquisition costs		450.3			466.3			410.1
Amortization and depreciation		46.6			65.6			73.0
(Increase) decrease in other assets		(298.0	)		591.0			(303.5	)
Increase (decrease) in policy and other liabilities		225.7			(511.1	)		324.4
Other, net		0.1			(114.9	)		1.5

Net cash provided by operating activities		1,800.6			1,881.3			1,734.4

Cash flows from investing activities:
Proceeds from maturity of securities available-for-sale		5,128.6			4,198.5			3,099.4
Proceeds from sale of securities available-for-sale		2,267.3			2,619.7			2,485.5
Proceeds from repayments or sales of mortgage loans on real estate		2,430.8			2,854.6			1,920.9
Cost of securities available-for-sale acquired		(5,658.9	)		(6,924.1	)		(6,291.4	)
Cost of mortgage loans on real estate originated or acquired		(2,180.4	)		(2,524.9	)		(2,169.9	)
Net (increase) decrease in short-term investments		(125.4	)		56.9			205.9
Collateral (paid) received - securities lending, net		(332.6	)		36.6			89.4
Other, net		52.1			121.6			(357.2	)

Net cash provided by (used in) investing activities		1,581.5			438.9			(1,017.4	)

Cash flows from financing activities:
Net (decrease) increase in short-term debt		(167.1	)		27.3			15.2
Capital contributed by NFS		—			—			3.1
Cash dividends paid to NFS		(375.0	)		(185.0	)		(125.0	)
Investment and universal life insurance product deposits		3,400.8			2,845.4			3,561.6
Investment and universal life insurance product withdrawals		(6,241.2	)		(5,022.5	)		(4,156.5	)

Net cash used in financing activities		(3,382.5	)		(2,334.8	)		(701.6	)

Net (decrease) increase in cash		(0.4	)		(14.6	)		15.4
Cash, beginning of period		0.9			15.5			0.1

Cash, end of period	$	0.5		$	0.9		$	15.5

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements

December 31, 2006, 2005 and 2004

(1)

Nature of Operations

Nationwide Life Insurance Company (NLIC, or collectively with its subsidiaries, the Company) was incorporated in 1929 and is an Ohio stock legal reserve life insurance company. The Company is a member of the Nationwide group of companies (Nationwide), which is comprised of Nationwide Mutual Insurance Company (NMIC) and all of its subsidiaries and affiliates.

All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (NFS), a holding company formed by Nationwide Corporation (Nationwide Corp.), a majority-owned subsidiary of NMIC.

Wholly-owned subsidiaries of NLIC as of December 31, 2006 include Nationwide Life and Annuity Insurance Company (NLAIC) and Nationwide Investment Services Corporation (NISC). NLAIC offers universal life insurance, variable universal life insurance, corporate-owned life insurance (COLI) and individual annuity contracts on a non-participating basis. NISC is a registered broker/dealer.

The Company is a leading provider of long-term savings and retirement products in the United States of America (U.S.). The Company develops and sells a diverse range of products including individual annuities, private and public sector group retirement plans, other investment products sold to institutions, life insurance and advisory services. The Company sells its products through a diverse distribution network. Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker/dealers, financial institutions, wirehouse and regional firms, pension plan administrators, and life insurance specialists. Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. (NRS), Nationwide Financial Network (NFN) producers and TBG Insurance Services Corporation d/b/a TBG Financial (TBG Financial) through its joint venture with MC Insurance Agency Services, LLC d/b/a Mullin Consulting. The Company also distributes products through the NMIC agency distribution force.

As of December 31, 2006 and 2005, the Company did not have a significant concentration of financial instruments in a single investee, industry or geographic region of the U.S. Also, the Company did not have a concentration of business transactions with a particular customer, lender, distribution source, market or geographic region of the U.S. in which business is conducted that makes it overly vulnerable to a single event which could cause a severe impact to the Company’s financial position.

(2)

Summary of Significant Accounting Policies

The significant accounting policies followed by the Company that materially affect financial reporting are summarized below. The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (GAAP).

The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ significantly from those estimates.

The Company’s most significant estimates include those used to determine the following: the balance, recoverability and amortization of deferred policy acquisition (DAC) for investment and universal life insurance products; impairment losses on investments; valuation allowances for mortgage loans on real estate; the liability for future policy benefits and claims; and federal income tax provision. Although some variability is inherent in these estimates, the recorded amounts reflect management’s best estimates based on facts and circumstances as of the balance sheet date. Management believes the amounts provided are appropriate.

(a) Consolidation Policy

The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. Minority interest expense is included in other operating expenses in the consolidated statements of income, and minority interest is included in other liabilities on the consolidated balance sheets. All significant intercompany balances and transactions have been eliminated.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(b) Valuation of Investments, Investment Income and Related Gains and Losses

The Company is required to classify its fixed maturity securities and marketable equity securities as held-to-maturity, available-for-sale or trading. All fixed maturity and marketable equity securities are classified as available-for-sale. Available-for-sale securities are stated at fair value, with the unrealized gains and losses, net of adjustments to DAC, future policy benefits and claims, and deferred federal income taxes reported as a separate component of accumulated other comprehensive income (AOCI) in shareholder’s equity. The adjustment to DAC represents the changes in amortization of DAC that would have been required as a charge or credit to operations had such unrealized amounts been realized and allocated to the product lines. The adjustment to future policy benefits and claims represents the increase in policy reserves from using a discount rate that would have been required had such unrealized amounts been realized and the proceeds reinvested at then current market interest rates, which were lower than the then current effective portfolio rate.

The fair value of fixed maturity and marketable equity securities is generally obtained from independent pricing services based on market quotations. For fixed maturity securities not priced by independent services (generally private placement securities and securities that do not trade regularly), an internally developed pricing model or “corporate pricing matrix” is most often used. The corporate pricing matrix is developed by obtaining spreads versus the U.S. Treasury yield for corporate securities with varying weighted average lives and bond ratings. The weighted average life and bond rating of a particular fixed maturity security to be priced using the corporate matrix are important inputs into the model and are used to determine a corresponding spread that is added to the U.S. Treasury yield to create an estimated market yield for that bond. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular fixed maturity security. Additionally, for valuing certain fixed maturity securities with complex cash flows such as certain mortgage-backed and asset-backed securities, a “structured product model” is used. The structured product model uses third party pricing tools. For securities for which quoted market prices are not available and for which the Company’s structured product model is not suitable for estimating fair values, fair values are determined using other modeling techniques, primarily a commercial software application utilized in valuing complex securitized investments with variable cash flows. As of December 31, 2006, 71% of the fair values of fixed maturity securities were obtained from independent pricing services, 20% from the Company’s pricing matrices and 9% from other sources compared to 72%, 20% and 8%, respectively, in 2005.

Management regularly reviews each investment in its fixed maturity and equity securities portfolios to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments.

Under the Company’s accounting policy for equity securities and debt securities that can be contractually prepaid or otherwise settled in a way that may limit the Company’s ability to fully recover cost, an impairment is deemed to be other-than-temporary unless the Company has both the ability and intent to hold the investment until the security’s forecasted recovery and evidence exists indicating that recovery will occur in a reasonable period of time. Also, for such debt securities management estimates cash flows over the life of purchased beneficial interests in securitized financial assets. If management estimates that the fair value of its beneficial interest is not greater than or equal to its carrying value based on current information and events, and if there has been an adverse change in estimated cash flows since the last revised estimate (considering both timing and amount), then the Company recognizes an other-than-temporary impairment and writes down the purchased beneficial interest to fair value.

For other debt securities, an other-than-temporary impairment charge is taken when the Company does not have the ability and intent to hold the security until the forecasted recovery or if it is no longer probable that the Company will recover all amounts due under the contractual terms of the security. Many criteria are considered during this process including, but not limited to, the current fair value as compared to cost or amortized cost, as appropriate, of the security; the amount and length of time a security’s fair value has been below cost or amortized cost; specific credit issues and financial prospects related to the issuer; management’s intent to hold or dispose of the security; and current economic conditions.

Other-than-temporary impairment losses result in a permanent reduction to the cost basis of the underlying investment.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

For mortgage-backed securities, the Company recognizes income using a constant effective yield method based on prepayment assumptions and the estimated economic life of the securities. When estimated prepayments differ significantly from anticipated prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income. All other investment income is recorded using the interest-method without anticipating the impact of prepayments.

The Company provides valuation allowances for impairments of mortgage loans on real estate based on a review by portfolio managers. Mortgage loans on real estate are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. When management determines that a loan is impaired, a provision for loss is established equal to the difference between the carrying value and the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent. In addition to the valuation allowance on specific loans, the Company maintains an unallocated allowance for probable losses inherent in the loan portfolio as of the balance sheet date, but not yet specifically identified by loan. Changes in the valuation allowance are recorded in net realized gains and losses on investments, hedging instruments and hedged items. Loans in foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans on real estate is included in net investment income in the period received.

The valuation allowance account for mortgage loans on real estate is maintained at a level believed adequate by management and reflects management’s best estimate of probable credit losses, including losses incurred at the balance sheet date but not yet identified by specific loan. Management’s periodic evaluation of the adequacy of the allowance for losses is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors.

The Company grants mainly commercial mortgage loans on real estate to customers throughout the U.S. As of December 31, 2006, the Company had a diversified portfolio with no more than 25.5% of the mortgage loan portfolio in any geographic region of the U.S. and no more than 2.6% with any one borrower, compared to 23.8% and 1.6%, respectively, as of December 31, 2005. As of December 31, 2006 and 2005, 33.4% and 32.0% of the carrying value of the Company’s commercial mortgage loan portfolio financed retail properties, respectively.

Real estate to be held and used is carried at cost less accumulated depreciation. Real estate designated as held for disposal is not depreciated and is carried at the lower of the carrying value at the time of such designation or fair value less cost to sell. Other long-term investments are carried on the equity method of accounting.

Impairment losses are recorded on investments in long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts.

Realized gains and losses on the sale of investments are determined on the basis of specific security identification. Changes in the Company’s mortgage loan valuation allowance and recognition of impairment losses for other-than-temporary declines in the fair values of applicable investments are included in realized gains and losses on investments, hedging instruments and hedged items.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(c) Derivative Instruments

Derivatives are carried at fair value. On the date the derivative contract is entered into, the Company designates the derivative as a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (fair value hedge); a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); a foreign currency fair value or cash flow hedge (foreign currency hedge); or a non-hedge transaction. The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for entering into various hedge transactions. This process includes linking all derivatives that are designated as fair value, cash flow or foreign currency hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used for hedging transactions are expected to be and, for ongoing hedging relationships, have been highly effective in offsetting changes in fair values or cash flows of hedged items. When it is determined that a derivative is not, or is not expected to be, highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively.

The Company enters into interest rate swaps, cross-currency swaps or Euro futures to hedge the fair value of existing fixed rate assets and liabilities. In addition, the Company uses short U.S. Treasury future positions to hedge the fair value of bond and mortgage loan commitments. Typically, the Company is hedging the risk of changes in fair value attributable to changes in benchmark interest rates. Derivative instruments classified as fair value hedges are carried at fair value, with changes in fair value recorded in realized gains and losses on investments, hedging instruments and hedged items. Changes in the fair value of the hedged item that are attributable to the risk being hedged are also recorded in realized gains and losses on investments, hedging instruments and hedged items.

The Company may enter into “receive fixed/pay variable” interest rate swaps to hedge existing variable rate assets or to hedge cash flows from the anticipated purchase of investments. These derivative instruments are identified as cash flow hedges and are carried at fair value with the offset recorded in AOCI to the extent the hedging relationship is effective. The ineffective portion of the hedging relationship is recorded in realized gains and losses on investments, hedging instruments and hedged items. Gains and losses on derivative instruments that are initially recorded in AOCI are reclassified out of AOCI and recognized in earnings over the same period(s) that the hedged item affects earnings.

Accrued interest receivable or payable under interest rate and foreign currency swaps are recognized as an adjustment to net investment income or interest credited to policyholder account values consistent with the nature of the hedged item, except for interest rate swaps hedging the anticipated sale of investments where amounts receivable or payable under the swaps are recorded as realized gains and losses on investments, hedging instruments and hedged items, and except for interest rate swaps hedging the anticipated purchase of investments where amounts receivable or payable under the swaps are initially recorded in AOCI to the extent the hedging relationship is effective.

The Company periodically may enter into a derivative transaction that will not qualify for hedge accounting. The Company does not enter into speculative positions. Although these transactions do not qualify for hedge accounting, or have not been designated in hedging relationships by the Company, they are part of its overall risk management strategy. For example, the Company may sell credit default protection through a credit default swap. Although the credit default swap may not be effective in hedging specific investments, the income stream allows the Company to manage overall investment yields while exposing the Company to acceptable credit risk. The Company may enter into a cross-currency basis swap (pay a variable U.S. rate and receive a variable foreign-denominated rate) to eliminate the foreign currency exposure of a variable rate foreign-denominated liability. Although basis swaps may qualify for hedge accounting, the Company has chosen not to designate these derivatives as hedging instruments due to the difficulty in assessing and monitoring effectiveness for both sides of the basis swap. Derivative instruments that do not qualify for hedge accounting or are not designated as hedging instruments are carried at fair value, with changes in fair value recorded in realized gains and losses on investments, hedging instruments and hedged items.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(d) Revenues and Benefits

Investment and Universal Life Insurance Products: Investment products consist primarily of individual and group variable and fixed deferred annuities. Universal life insurance products include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (BOLI) and other interest-sensitive life insurance policies. Revenues for investment products and universal life insurance products consist of net investment income, asset fees, cost of insurance charges, administrative fees and surrender charges that have been earned and assessed against policy account balances during the period. The timing of revenue recognition as it relates to fees assessed on investment contracts and universal life contracts is determined based on the nature of such fees. Asset fees, cost of insurance charges and administrative fees are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract in accordance with contractual terms. Policy benefits and claims that are charged to expense include interest credited to policy account values and benefits and claims incurred in the period in excess of related policy account values.

Traditional Life Insurance Products: Traditional life insurance products include those products with fixed and guaranteed premiums and benefits and primarily consist of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Premiums for traditional life insurance products are recognized as revenue when due. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract. This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

(e) Deferred Policy Acquisition Costs for Investment and Universal Life Insurance Products

The Company has deferred certain costs of acquiring investment and universal life insurance products business, principally commissions, certain expenses of the policy issue and underwriting department, and certain variable sales expenses that relate to and vary with the production of new and renewal business. Investment products primarily consist of individual and group variable and fixed deferred annuities. Universal life insurance products include universal life insurance, variable universal life insurance, COLI and other interest-sensitive life insurance policies. DAC is subject to recoverability testing in the year of policy issuance and loss recognition testing at the end of each reporting period.

For investment and universal life insurance products, DAC is being amortized with interest over the lives of the policies in relation to the present value of estimated gross profits from projected interest margins, asset fees, cost of insurance charges, administration fees, surrender charges, and net realized gains and losses less policy benefits and policy maintenance expenses. The DAC asset related to investment products and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on fixed maturity securities available-for-sale, as described in Note 2(b).

The most significant assumptions that are involved in the estimation of future gross profits include future net separate account performance, surrender/lapse rates, interest margins and mortality. The Company’s long-term assumption for net separate account performance is currently 8% growth per year. If actual net separate account performance varies from the 8% assumption, the Company assumes different performance levels over the next three years such that the mean return equals the long-term assumption. This process is referred to as a reversion to the mean. The assumed net separate account return assumptions used in the DAC models are intended to reflect what is anticipated. However, based on historical returns of the Standard & Poor’s (S&P) 500 Index, and as part of its pre-set parameters, the Company’s reversion to the mean process generally limits returns to 0-15% during the three-year reversion period.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Changes in assumptions can have a significant impact on the amount of DAC reported for investment products and universal life insurance products and their related amortization patterns. In the event actual experience differs from assumptions or future assumptions are revised, the Company is required to record an increase or decrease in DAC amortization expense, which could be significant. In general, increases in the estimated general and separate account returns result in increased expected future profitability and may lower the rate of DAC amortization, while increases in lapse/surrender and mortality assumptions reduce the expected future profitability of the underlying business and may increase the rate of DAC amortization.

Management evaluates the appropriateness of the individual variable annuity DAC balance within pre-set parameters. These parameters are designed to appropriately reflect the Company’s long-term expectations with respect to individual variable annuity contracts while also evaluating the potential impact of short-term experience on the Company’s recorded individual variable annuity DAC balance. If the recorded balance of individual variable annuity DAC falls outside of these parameters for a prescribed period of time, or if the recorded balance falls outside of these parameters and management determines it is not reasonably possible to get back within the parameters during this period of time, assumptions are required to be unlocked and DAC is recalculated using revised best estimate assumptions. If DAC assumptions were unlocked and revised, the Company would continue to use the reversion to the mean process.

For other investment and universal life insurance products, DAC is adjusted each quarter to reflect revised best estimate assumptions, including the use of a reversion to the mean methodology over the next three years as it relates to net separate account performance. Any resulting DAC true-up and unlocking adjustments are reflected currently in the consolidated statements of income.

(f) Separate Accounts

Separate account assets and liabilities represent contractholders’ funds, which have been segregated into accounts with specific investment objectives. Separate account assets are recorded at fair value based primarily on market quotations of the underlying securities. The investment income and gains or losses of these accounts accrue directly to the contractholders. The activity of the separate accounts is not reflected in the consolidated statements of income except for (1) the fees the Company receives, which are assessed on a daily or monthly basis and recognized as revenue when assessed and earned, and (2) the activity related to guaranteed contracts, which are riders to existing variable annuity contracts.

(g) Future Policy Benefits and Claims

The process of calculating reserve amounts for a life insurance organization involves the use of a number of assumptions, including those related to persistency (how long a contract stays with a company), mortality (the relative incidence of death in a given time), morbidity (the relative incidence of disability resulting from disease or physical impairment) and interest rates (the rates expected to be paid or received on financial instruments, including insurance or investment contracts).

The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and universal life and variable universal life insurance policies as the policy account balance, which represents participants’ net premiums and deposits plus investment performance and interest credited less applicable contract charges.

The Company’s liability for funding agreements to an unrelated third party trust equals the balance that accrues to the benefit of the contractholder, including interest credited. The funding agreements constitute insurance obligations and are considered annuity contracts under Ohio insurance laws.

The liability for future policy benefits and claims for traditional life insurance policies was calculated by the net level premium method using interest rates varying from 2.0% to 10.5% and estimates of mortality, morbidity, investment yields and withdrawals that were used or being experienced at the time the policies were issued.

The liability for future policy benefits for payout annuities was calculated using the present value of future benefits and maintenance costs discounted using interest rates varying generally from 3.0% to 13.0%.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(h) Participating Business

Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 8% in 2006 (10% in 2005 and 11% in 2004) of the Company’s life insurance in force, 50% of the number of life insurance policies in force in 2006 (52% in 2005 and 55% in 2004) and 5% of life insurance statutory premiums in 2006 (5% in 2005 and 7% in 2004). The provision for policyholder dividends was based on then current dividend scales and has been included in future policy benefits and claims in the consolidated balance sheets.

(i) Federal Income Taxes

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to significantly change the provision for federal income taxes recorded in the consolidated financial statements. Any such change could significantly affect the amounts reported in the consolidated statements of income. Management has used best estimates to establish reserves based on current facts and circumstances regarding tax exposure items where the ultimate deductibility is open to interpretation. Management evaluates the appropriateness of such reserves quarterly based on any new developments specific to their fact patterns. Information considered includes results of completed tax examinations, Technical Advice Memorandums and other rulings issued by the Internal Revenue Service (IRS) or the tax courts.

The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are established when it is determined that it is more likely than not that the deferred tax asset will not be fully realized.

(j) Reinsurance Ceded

Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts. Assets and liabilities related to reinsurance ceded are reported in the consolidated balance sheets on a gross basis, separately from the related balances of the Company.

(k) Reclassification

Certain items in the 2005 and 2004 consolidated financial statements and related notes have been reclassified to conform to the current presentation.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(3)

Recently Issued Accounting Standards

In February 2007, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, Including an amendment of FASB Statements No. 115 (SFAS 159). SFAS 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS 159 is expected to expand the use of fair value measurement, which is consistent with the FASB’s long-term measurement objectives for accounting for financial instruments. SFAS 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. SFAS 159 does not affect any existing accounting literature that requires certain assets and liabilities to be carried at fair value. In addition, SFAS 159 does not establish requirements for recognizing and measuring dividend income, interest income or interest expense, nor does it eliminate disclosure requirements included in other accounting standards, including requirements for disclosures about fair value measurements included in SFAS No. 157, Fair Value Measurements (SFAS 157), and SFAS No. 107, Disclosures about Fair Value of Financial Instruments. SFAS 159 is effective as of the beginning of an entity’s first fiscal year beginning after November 15, 2007. The Company currently is evaluating the impact of adopting SFAS 159.

In September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R) (SFAS 158). SFAS 158 requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability on its balance sheet and to recognize changes in that funded status in the year in which the changes occur through comprehensive income. SFAS 158 also requires an employer to measure the funded status of a plan as of the date of its year-end balance sheet, with limited exceptions. An employer with publicly traded equity securities is required to initially recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after December 15, 2006. The requirement to measure plan assets and benefit obligations as of the date of the employer’s fiscal year-end balance sheet is effective for fiscal years ending after December 15, 2008. If in the last quarter of the preceding fiscal year an employer enters into a transaction that results in a settlement or experiences an event that causes a curtailment of the plan, the related gain or loss pursuant to Statement 88 or 106 is required to be recognized in earnings that quarter. The adoption of SFAS 158 did not have a material impact on the Company’s financial position or results of operations.

In September 2006, the FASB issued SFAS 157. SFAS 157 provides enhanced guidance for using fair value to measure assets and liabilities. 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, and interim periods within those fiscal years, with early adoption permitted. SFAS 157 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

In September 2006, the United States Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 108 (SAB 108). SAB 108 addresses how the effects of prior year uncorrected misstatements should be considered when quantifying misstatements in current-year financial statements. SAB 108 requires registrants to quantify misstatements using both the balance sheet and income-statement approaches and to evaluate whether either approach results in quantifying an error that is material in light of relevant quantitative and qualitative factors. SAB 108 does not change the SEC’s previous guidance in SAB No. 99 on evaluating the materiality of misstatements. A registrant applying the new guidance for the first time that identifies material errors in existence at the beginning of the first fiscal year ending after November 15, 2006, may correct those errors through a one-time cumulative effect adjustment to beginning-of-year retained earnings. The cumulative effect alternative is available only if the application of the new guidance results in a conclusion that a material error exists as of the beginning of the first fiscal year ending after November 15, 2006, and those misstatements were determined to be immaterial based on a proper application of the registrant’s previous method for quantifying misstatements. Because of the beginning-of-year recognition of the cumulative effect adjustment, misstatements occurring in the year of adoption cannot be included in that adjustment. SAB 108 requires the following disclosures if a cumulative effect adjustment is recorded: the nature and amount of each individual error included in the cumulative effect adjustment; when and how each error arose; and the fact that the errors had previously been considered immaterial. The cumulative effect adjustment is available only for prior-year uncorrected misstatements. The adjustment should not include amounts related to changes in accounting estimates. SAB 108 did not have a material impact on the Company’s financial position or results of operations upon adoption.

In June 2006, the FASB issued FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109, Accounting for Income Taxes (FIN 48). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB Statement No. 109, Accounting for Income Taxes. FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FIN 48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The Company plans to adopt FIN 48 effective January 1, 2007. FIN 48 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of Financial Assets (SFAS 156).SFAS 156 amends SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (SFAS 140). SFAS 156 requires that all separately recognized servicing assets and servicing liabilities be initially measured at fair value, if practicable. SFAS 156 permits, but does not require, the subsequent measurement of separately recognized servicing assets and servicing liabilities at fair value. An entity that uses derivative instruments to mitigate the risks inherent in servicing assets and servicing liabilities is required to account for those derivative instruments at fair value. Under SFAS 156, an entity can elect subsequent fair value measurement to account for its separately recognized servicing assets and servicing liabilities. By electing that option, an entity may simplify its accounting because SFAS 156 permits income statement recognition of the potential offsetting changes in fair value of those servicing assets and servicing liabilities and derivative instruments in the same accounting period. SFAS 156 is effective for fiscal years beginning after September 15, 2006, with early adoption permitted. The Company plans to adopt SFAS 156 effective January 1, 2007. SFAS 156 is not expected to have a material impact on the Company’s financial position or results of operations upon adoption.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments (SFAS 155). SFAS 155 amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities (SFAS 133), and SFAS 140. SFAS 155 also resolves issues addressed in SFAS 133 Implementation Issue No. D1, Application of Statement 133 to Beneficial Interests in Securitized Financial Assets. In summary, SFAS 155: (1) permits an entity to make an irrevocable election to measure any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation at fair value in its entirety, with changes in fair value recognized in earnings; (2) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (3) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (4) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (5) amends SFAS 140 to eliminate the prohibition on a qualifying special purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS 155 is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006. Earlier adoption is permitted as of the beginning of an entity’s fiscal year, provided the entity has not yet issued financial statements, including financial statements for any interim period for that fiscal year. Provisions of SFAS 155 may be applied to instruments that an entity holds at the date of adoption on an instrument-by-instrument basis. The Company elected to early adopt SFAS 155 as of January 1, 2006. On the date of adoption, there was no impact to the Company’s financial position or results of operations.

In September 2005, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants (AICPA) issued Statement of Position (SOP) 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts (SOP 05-1). SOP 05-1 provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements of insurance and investment contracts other than those specifically described in SFAS No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments, issued by the FASB. SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights or coverages that occurs as a result of the exchange of a contract for a new contract, or by amendment, endorsement or rider to a contract, or by the election of a new feature or coverage within a contract. SOP 05-1 is effective for internal replacements occurring in fiscal years beginning after December 15, 2006, with earlier adoption encouraged. Retrospective application of SOP 05-1 to previously issued financial statements is not permitted. Initial application of SOP 05-1 is required as of the beginning of an entity’s fiscal year. The Company will adopt SOP 05-1 effective January 1, 2007. Although the Company is currently unable to quantify the impact of adoption, SOP 05-1 is not expected to have a material impact on the Company’s financial position and/or results of operations.

In May 2005, the FASB issued SFAS No. 154, Accounting Changes and Error Corrections (SFAS 154), which replaces Accounting Principles Board Opinion No. 20, Accounting Changes, and SFAS No. 3, Reporting Accounting Changes in Interim Financial Statements. SFAS 154 applies to all voluntary changes in accounting principle as well as to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005, with earlier adoption permitted. The Company adopted SFAS 154 effective January 1, 2006. SFAS 154 has not had any impact on the Company’s financial position or results of operations since adoption.

In July 2003, the AICPA issued Statement of Position (SOP) 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts (SOP 03-1) to address many topics. The most significant topic affecting the Company was the accounting for contracts with guaranteed minimum death benefits (GMDB). SOP 03-1 requires companies to evaluate the significance of a GMDB to determine whether a contract should be accounted for as an investment or insurance contract. For contracts determined to be insurance contracts, companies are required to establish a reserve to recognize a portion of the assessment (revenue) that compensates the insurance company for benefits to be provided in future periods. The Company adopted SOP 03-1 effective January 1, 2004, which resulted in a $3.3 million charge, net of taxes, as the cumulative effect of adoption of this accounting principle.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes the components of cumulative effect adjustments recorded in the Company’s 2004 consolidated statements of income:


(in millions)	January 1, 2004
Increase in future policy benefits:
Ratchet interest crediting	$	(12.3	)
Secondary guarantees - life insurance		(2.4	)
GMDB claim reserves		(1.8	)
GMIB claim reserves		(1.0	)

Subtotal		(17.5	)
Adjustment to amortization of deferred policy acquisition costs related to above		12.4
Deferred federal income taxes		1.8

Cumulative effect of adoption of accounting principle, net of taxes	$	(3.3	)

(4)

Fair Value of Financial Instruments

The following disclosures summarize the carrying amount and estimated fair value of the Company’s financial instruments. Certain assets and liabilities are specifically excluded from the disclosure requirements for financial instruments.

The fair value of a financial instrument is defined as the amount at which the financial instrument could be bought or sold, or in the case of liabilities incurred or settled, in a current transaction between willing parties. In cases where quoted market prices are not available, fair value is based on the best information available in the circumstances. Such estimates of fair value should consider prices for similar assets or similar liabilities and the results of valuation techniques to the extent available in the circumstances. Examples of valuation techniques include the present value of estimated expected future cash flows using discount rates commensurate with the risks involved, option-pricing models, matrix pricing, option-adjusted spread models and fundamental analysis. Valuation techniques for measuring assets and liabilities must be consistent with the objective of measuring fair value and should incorporate assumptions that market participants would use in their estimates of values, future revenues and future expenses, including assumptions about interest rates, default, prepayment and volatility.

Many of the Company’s assets and liabilities subject to these disclosure requirements are not actively traded, requiring fair values to be estimated by management using matrix pricing, present value or other suitable valuation techniques. These techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Although fair value estimates are calculated using assumptions that management believes are appropriate, changes in assumptions could cause these estimates to vary materially. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in the immediate settlement of the instruments.

Although insurance contracts are specifically exempted from the disclosure requirements (other than those that are classified as investment contracts), the Company’s estimate of the fair values of policy reserves on life insurance contracts is provided to make the fair value disclosures more meaningful.

The tax ramifications of the related unrealized gains and losses can have a significant effect on the estimates of fair value and have not been considered in arriving at such estimates.

In estimating its fair value disclosures, the Company used the following methods and assumptions:

Fixed maturity and equity securities available-for-sale: See Note 2(b).

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Mortgage loans on real estate, net: The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings. Loans with similar characteristics are aggregated for purposes of the calculations. Estimated fair value is based on the present value of expected future cash flows discounted at the loan’s effective interest rate.

Policy loans, short-term investments and cash: The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair values.

Separate account assets and liabilities: The fair values of assets held in separate accounts are based on quoted market prices of the underlying securities. The fair values of liabilities related to separate accounts are the amounts payable on demand, net of certain surrender charges.

Investment contracts: The fair values of the Company’s liabilities under investment type contracts are based on one of two methods. For investment contracts without defined maturities, fair value is the amount payable on demand, net of certain surrender charges. For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis. Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued.

Policy reserves on life insurance contracts: Included are disclosures for individual life insurance, COLI, BOLI, universal life insurance and supplementary contracts with life contingencies for which the estimated fair value is the amount payable on demand. Also included are disclosures for the Company’s limited payment policies for which the Company has used discounted cash flow analyses to estimate fair value, similar to those used for investment contracts with known maturities.

Short-term debt, collateral received – securities lending and collateral received – derivatives: The carrying amounts reported in the consolidated balance sheets for these instruments approximate their fair values.

Long-term debt, payable to NFS: The fair values for long-term debt are based on estimated market prices.

Commitments to extend credit: Commitments to extend credit have nominal fair values because of the short-term nature of such commitments.

Interest rate and cross-currency interest rate swaps:The fair values for interest rate and cross-currency interest rate swaps are calculated with pricing models using current rate assumptions.

Interest rate futures contracts: The fair values for futures contracts are based on quoted market prices.

Other derivatives: The fair values for other derivatives are based on credit event probabilities, equity option index levels and broker valuations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes the carrying values and estimated fair values of financial instruments subject to disclosure requirements and policy reserves on life insurance contracts as of December 31:


	2006						2005
(in millions)	Carrying value			Estimated fair value			Carrying value			Estimated fair value
Assets
Investments:
Securities available-for-sale:
Fixed maturity securities	$	25,275.4		$	25,275.4		$	27,198.1		$	27,198.1
Equity securities		34.4			34.4			42.1			42.1
Mortgage loans on real estate, net		8,202.2			8,060.7			8,458.9			8,503.0
Policy loans		639.2			639.2			604.7			604.7
Short-term investments		1,722.0			1,722.0			1,596.6			1,596.6
Cash		0.5			0.5			0.9			0.9
Assets held in separate accounts		67,351.9			67,351.9			62,689.8			62,689.8

Liabilities
Investment contracts		(27,124.7	)		(25,455.2	)		(28,698.1	)		(26,607.2	)
Policy reserves on life insurance contracts		(7,284.7	)		(7,120.4	)		(7,243.0	)		(7,173.1	)
Short-term debt		(75.2	)		(75.2	)		(242.3	)		(242.3	)
Long-term debt, payable to NFS		(700.0	)		(809.3	)		(700.0	)		(822.8	)
Collateral received – securities lending and derivatives		(986.1	)		(986.1	)		(1,359.1	)		(1,359.1	)
Liabilities related to separate accounts		(67,351.9	)		(66,149.8	)		(62,689.8	)		(61,483.5	)

Derivative financial instruments
Interest rate swaps hedging assets		4.2			4.2			3.3			3.3
Cross-currency interest rate swaps		66.1			66.1			178.5			178.5
Interest rate futures contracts		(2.4	)		(2.4	)		1.6			1.6
Other derivatives		128.2			128.2			41.1			41.1

(5)

Derivative Financial Instruments

Qualitative Disclosure

Interest Rate Risk Management

The Company periodically purchases fixed rate investments to back variable rate liabilities. As a result, the Company can be exposed to interest rate risk due to the mismatch between variable rate liabilities and fixed rate assets. In an effort to mitigate this risk, the Company enters into various types of derivative instruments to minimize this mismatch, with fluctuations in the fair values of the derivatives offsetting changes in the fair values of the investments resulting from changes in interest rates. The Company principally uses pay fixed/receive variable interest rate swaps to manage this risk.

Under these interest rate swaps, the Company receives variable interest rate payments and makes fixed rate payments. The fixed interest paid on the swap offsets the fixed interest received on the investment, resulting in the Company receiving the variable interest payments on the swap, generally 3-month U.S. London Interbank Offered Rate (LIBOR), and the credit spread on the investment. The net receipt of a variable rate will then match the variable rate paid on the liability.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

As a result of entering into commercial mortgage loan and private placement commitments, the Company is exposed to changes in the fair value of such commitments due to changes in interest rates during the commitment period prior to the loans being funded. In an effort to manage this risk, the Company enters into short U.S. Treasury futures during the commitment period. With short U.S. Treasury futures, if interest rates rise/fall, the gains/losses on the futures will offset the change in fair value of the commitment attributable to the change in interest rates.

The Company periodically purchases variable rate investments (i.e., commercial mortgage loans and corporate bonds). As a result, the Company can be exposed to variability in cash flows and investment income due to changes in interest rates. Such variability poses risks to the Company when the assets are funded with fixed rate liabilities. In an effort to manage this risk, the Company may enter into receive fixed/pay variable interest rate swaps.

In using these interest rate swaps, the Company receives fixed interest rate payments and makes variable rate payments. The variable interest paid on the swap offsets the variable interest received on the investment, resulting in the Company receiving the fixed interest payments on the swap and the credit spread on the investment. The net receipt of a fixed rate will then match the fixed rate paid on the liability.

The Company manages interest rate risk at the segment level. Different segments may simultaneously hedge interest rate risks associated with owning fixed and variable rate investments considering the risk relevant to a particular segment.

Foreign Currency Risk Management

In conjunction with the Company’s medium-term note (MTN) program, the Company periodically issues both fixed and variable rate liabilities denominated in foreign currencies. As a result, the Company is exposed to changes in fair value of the liabilities due to changes in foreign currency exchange rates and related interest rates. In an effort to manage these risks, the Company enters into cross-currency interest rate swaps to convert these liabilities to a U.S. dollar rate.

The Company is exposed to changes in fair value of fixed rate investments denominated in a foreign currency due to changes in foreign currency exchange rates and related interest rates. In an effort to manage this risk, the Company uses cross-currency interest rate hedges to swap these asset characteristics to variable U.S. dollar rate instruments. Cross-currency interest rate swaps on assets are structured to pay a fixed rate, in the foreign currency, and receive a variable U.S. dollar rate, generally 3-month U.S. LIBOR. These derivative instruments are designated as a fair value hedge of the fixed rate foreign denominated asset.

For a variable rate foreign liability, the cross-currency interest rate swap is structured to receive a variable rate, in the foreign currency, and pay a variable U.S. dollar rate, generally 3-month U.S. LIBOR. As both sides of the cross-currency interest rate swap are variable, the derivative instrument is a basis swap. While the receive-side terms of the cross-currency interest rate swap will line up with the terms of the liability, the Company is not able to match the pay-side terms of the derivative to a specific asset. Therefore, these derivative instruments do not receive hedge accounting treatment.

Cross-currency interest rate swaps on variable rate investments are structured to pay a variable rate, in the foreign currency, and receive a fixed U.S. dollar rate. The terms of the foreign currency paid on the swap will exactly match the terms of the foreign currency received on the asset, thus eliminating currency risk. These derivative instruments are designated as a cash flow hedge.

Equity Market Risk Management

Asset fees calculated as a percentage of the separate account assets are a significant source of revenue to the Company. As of December 31, 2006, approximately 82% of separate account assets were invested in equity mutual funds (approximately 83% as of December 31, 2005). Gains and losses in the equity markets result in corresponding increases and decreases in the Company’s separate account assets and asset fee revenue. In addition, a decrease in separate account assets may decrease the Company’s expectations of future profit margins due to a decrease in asset fee revenue and/or an increase in guaranteed contract claims, which also may require the Company to accelerate the amortization of DAC.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The Company’s long-term assumption for net separate account returns is 8% annual growth. If equity markets were unchanged throughout a given year, the Company estimates that its net earnings per diluted share, calculated using current weighted average diluted shares outstanding, would be approximately $0.05 to $0.10 less than had the Company’s long-term assumption for net separate account returns been realized. This analysis assumes no other factors change and that an unlocking of DAC assumptions would not be required. However, as it does each quarter, the Company would evaluate its DAC balance and underlying assumptions to determine whether unlocking is appropriate. The Company can provide no assurance that the experience of flat equity market returns would not result in changes to other factors affecting profitability, including the possibility of unlocking of DAC assumptions.

Many of the Company’s individual variable annuity contracts offer GMDB features. A GMDB generally provides a benefit if the annuitant dies and the contract value is less than a specified amount, which may be based on the premiums paid less amounts withdrawn or contract value on a specified anniversary date. A decline in the stock market causing the contract value to fall below this specified amount, which varies from contract to contract based on the date the contract was entered into as well as the GMDB feature elected, will increase the net amount at risk, which is the GMDB in excess of the contract value. This could result in additional GMDB claims.

In an effort to mitigate this risk, the Company has implemented a GMDB economic hedging program for certain new and existing business. Prior to implementation of the GMDB hedging program in 2000, the Company managed this risk primarily by entering into reinsurance arrangements. The GMDB economic hedging program is designed to offset changes in the economic value of the GMDB obligation up to a return of the contractholder’s premium payments. However, the first 10% of GMDB claims are not hedged. Currently the program shorts S&P 500 Index futures, which provides an offset to changes in the value of the designated obligation. The futures are not designated as hedges and, therefore, hedge accounting is not applied. The Company’s economic evaluation of the GMDB obligation is not consistent with current accounting treatment of the GMDB obligation. Therefore, the hedging activity is likely to lead to earnings volatility. This volatility was negligible in 2006. As of December 31, 2006 and 2005, the net amount at risk was $562.4 million and $1.08 billion before reinsurance, respectively, and $119.0 million and $178.4 million net of reinsurance, respectively. As of December 31, 2006 and 2005, the Company’s reserve for GMDB claims was $29.3 million and $26.9 million, respectively. See Note 3 to the audited consolidated financial statements included in the F pages of this report for discussion of the impact of adopting a new accounting principle regarding GMDB reserves in 2004.

The Company also offers certain variable annuity products with a guaranteed minimum accumulation benefit (GMAB) rider. A GMAB provides the contractholder with a guaranteed return of premium, adjusted proportionately for withdrawals, after a specified period of time (5, 7 or 10 years) selected by the contractholder at the time of issuance of the variable annuity contract. In some cases, the contractholder also has the option, after a specified period of time, to drop the rider and continue the variable annuity contract without the GMAB. The design of the GMAB rider limits the risk to the Company in a variety of ways including asset allocation requirements, which serve to reduce the Company’s potential exposure to underlying fund performance risks. Specifically, the GMAB terms limit asset allocation by (1) requiring partial allocation of assets to a guaranteed term option (a fixed rate investment option) and excluding certain funds that are highly volatile or difficult to hedge or (2) requiring all assets be allocated to one of the approved asset allocation funds or models defined by the Company. A GMAB represents an embedded derivative in the variable annuity contract that is required to be separated from, and valued apart from, the host variable annuity contract. The embedded derivative is carried at fair value and reported in other future policy benefits and claims. The Company initially records an offset to the fair value of the embedded derivative on the balance sheet, which is amortized through the income statement over the term of the GMAB period of the contract. Subsequent changes in the fair value of the embedded derivative are recognized in earnings. The fair value of the GMAB embedded derivative is calculated based on actuarial assumptions related to the projected benefit cash flows incorporating numerous assumptions including, but not limited to, expectations of contractholder persistency, market returns, correlations of market returns and market return volatility.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The Company began selling contracts with the GMAB feature on May 1, 2003. Beginning October 1, 2003, the Company launched an enhanced version of the rider that offered increased equity exposure to the contractholder in return for a higher charge. The Company simultaneously began economically hedging the GMAB exposure for those risks that exceed a level it considered acceptable. The GMAB economic hedge consists of shorting interest rate futures and S&P 500 Index futures contracts and does not qualify for hedge accounting under current guidance. Quarterly, the Company purchases S&P 500 Index put options and over-the-counter basket put options, which are constructed in order to minimize the tracking error of the hedge and the GMAB liability. See Note 2(c) to the audited consolidated financial statements included in the F pages of this report for discussion of economic hedges. The objective of the GMAB economic hedge strategy is to manage the exposures with risk beyond a level considered acceptable to the Company. The Company is exposed to equity market risk related to the GMAB feature should the growth in the underlying investments, including any GTO investment, fail to reach the guaranteed return level. The GMAB embedded derivative is likely to create volatility in earnings; however, the economic hedging program provides substantial mitigation of this exposure. This volatility was negligible in 2006 and 2005. As of December 31, 2006 and 2005, the balance of the GMAB embedded derivative was $116.3 million and $67.9 million, respectively. The increase in the balance of the GMAB embedded derivative was driven by the value of new business sold during 2006.

Beginning in March 2005, the Company began offering a hybrid GMAB/guaranteed lifetime withdrawal benefit (GLWB) through its Capital Preservation Plus Lifetime Income (CPPLI) contract rider. This living benefit combines a GMAB feature in its first 5-10 years with a lifetime withdrawal benefit which begins upon the maturity of the GMAB and extends for the duration of the insured’s life. In the event that the insured’s contract value is exhausted through such withdrawals, the Company will continue to fund future withdrawals at a pre-defined level until the insured’s death. In some cases, the contract owner has the right to drop the GLWB portion of this rider or periodically reset the guaranteed withdrawal basis to a higher level. This benefit requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy as previously described above.

In March 2006, the Company added Lifetime Income (L.INC), a stand-alone GLWB, to compliment CPPLI in its product offerings. This rider is very similar to the hybrid benefit discussed above. L.INC provides for enhanced retirement income security via guaranteed accumulation rates and withdrawal rates that increase with age without the liquidity loss associated with annuitization. The lifetime withdrawal feature also is being economically hedged. Currently, the Company is using S&P 500 Index and U.S. Treasury futures to hedge exposure to declining equity and interest rate markets, respectively. Similar to GMDBs, the Company’s economic valuation of the lifetime income obligation is not consistent with the accounting treatment of the obligation. Therefore, hedging activity is likely to create volatility in earnings; however, the economic hedging program provides substantial mitigation of this exposure. This volatility was negligible in 2006.

Other Non-Hedging Derivatives

The Company periodically enters into basis swaps (receive one variable rate, pay another variable rate) to better match the cash flows received from the specific variable-rate investments with the variable rate paid on a group of liabilities. While the pay-side terms of the basis swap will line up with the terms of the asset, the Company is not able to match the receive-side terms of the derivative to a specific liability. Therefore, basis swaps do not receive hedge accounting treatment.

The Company sells credit default protection on selected debt instruments and combines the credit default swap with selected assets the Company owns to replicate a higher yielding bond. These selected assets may have sufficient duration for the related liability, but do not earn a sufficient credit spread. The combined credit default swap and investments provide cash flows with the duration and credit spread targeted by the Company. The credit default swaps do not qualify for hedge accounting treatment.

The Company also has purchased credit default protection on selected debt instruments exposed to short-term credit concerns, or because the combination of the corporate bond and purchased default protection provides sufficient spread and duration targeted by the Company. The purchased credit default protection does not qualify for hedge accounting treatment.

Quantitative Disclosure

Fair Value Hedges

During the years ended December 31, 2006, 2005 and 2004, a net gain of $2.9 million, a net gain of $4.1 million and a net loss of $11.3 million, respectively, were recognized in net realized gains and losses on investments, hedging instruments and hedged items. This represents the ineffective portion of the fair value hedging relationships. There were no gains or losses attributable to the portion of the derivative instruments’ changes in fair value excluded from the assessment of hedge effectiveness. There were also no gains or losses recognized in earnings as a result of hedged firm commitments no longer qualifying as fair value hedges.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Cash Flow Hedges

For the years ended December 31, 2006, 2005 and 2004, the ineffective portion of cash flow hedges was a net loss of $1.5 million, a net gain of $3.1 million and a net gain of $1.0 million, respectively. There were no net gains or losses attributable to the portion of the derivative instruments’ changes in fair value excluded from the assessment of hedge effectiveness.

The Company anticipates reclassifying less than $0.8 million in net losses out of AOCI over the next 12-month period.

In general, the maximum length of time over which the Company is hedging its exposure to the variability in future cash flows associated with forecasted transactions, other than those relating to variable interest on existing financial instruments, is twelve months or less.

During 2006, the Company did not discontinue any cash flow hedges because the original forecasted transaction was no longer probable. Additionally, no amounts were reclassified from AOCI into earnings due to the probability that a forecasted transaction would not occur.

Other Derivative Instruments, Including Embedded Derivatives

Net realized gains and losses on investments, hedging instruments and hedged items for the years ended December 31, 2006, 2005 and 2004 included a net loss of $0.5 million, a net loss of $9.1 million and a net gain of $8.1 million, respectively, related to other derivative instruments, including embedded derivatives, not designated in hedging relationships. In addition, the Individual Investments segment included a loss of $11.4 million and a gain of $5.1 million for the years ended December 31, 2006 and 2005, respectively, related to other derivative instruments, including embedded derivatives, not designated in hedging relationships. For the years ended December 31, 2006, 2005 and 2004, net losses of $10.6 million, $80.7 million and $5.9 million, respectively, were recorded in net realized gains and losses on investments, hedging instruments and hedged items reflecting the change in fair value of cross-currency interest rate swaps hedging variable rate MTNs denominated in foreign currencies. Additional net gains of $14.1 million, $78.3 million and $5.9 million were recorded in net realized gains and losses on investments, hedging instruments and hedged items to reflect the change in spot rates of these foreign currency denominated obligations during the years ended December 31, 2006, 2005 and 2004, respectively.

The following table summarizes the notional amount of derivative financial instruments outstanding as of December 31:


(in millions)	2006		2005
Interest rate swaps:
Pay fixed/receive variable rate swaps hedging investments	$	1,930.5	$	2,040.1
Pay variable/receive fixed rate swaps hedging investments		60.4		79.2
Pay variable/receive fixed rate swaps hedging liabilities		—		550.0
Pay variable/receive variable rate swaps hedging liabilities		—		30.0
Pay fixed/receive variable rate swaps hedging liabilities		1,048.8		170.0
Other contracts hedging investments		—		10.0
Cross-currency interest rate swaps:
Hedging foreign currency denominated investments		452.9		439.8
Hedging foreign currency denominated liabilities		1,137.1		1,312.4
Credit default swaps and other non-hedging instruments		478.6		555.3
Equity option contracts		1,640.7		774.4
Interest rate futures contracts		214.2		120.5

Total	$	6,963.2	$	6,081.7

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(6)

Investments

The following table summarizes the amortized cost, gross unrealized gains and losses, and estimated fair values of securities available-for-sale as of the dates indicated:


(in millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
December 31, 2006:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S. Government corporations	$	123.7	$	11.4	$	1.4	$	133.7
Agencies not backed by the full faith and credit of the U. S. Government		559.4		46.2		2.2		603.4
Obligations of states and political subdivisions		266.0		0.7		7.2		259.5
Debt securities issued by foreign governments		34.9		1.7		0.1		36.5
Corporate securities
Public		8,602.0		168.8		109.9		8,660.9
Private		6,015.4		128.8		71.4		6,072.8
Mortgage-backed securities – U.S. Government-backed		6,089.1		21.3		112.8		5,997.6
Asset-backed securities		3,506.7		43.3		39.0		3,511.0

Total fixed maturity securities		25,197.2		422.2		344.0		25,275.4
Equity securities		28.5		6.2		0.3		34.4

Total securities available-for-sale	$	25,225.7	$	428.4	$	344.3	$	25,309.8

December 31, 2005:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S. Government corporations	$	163.8	$	14.3	$	0.6	$	177.5
Agencies not backed by the full faith and credit of the U. S. Government		849.7		61.2		6.2		904.7
Obligations of states and political subdivisions		300.3		2.4		3.8		298.9
Debt securities issued by foreign governments		41.4		2.7		0.1		44.0
Corporate securities
Public		9,520.0		233.7		106.2		9,647.5
Private		6,572.2		195.3		65.3		6,702.2
Mortgage-backed securities – U.S. Government-backed		6,048.3		18.1		107.6		5,958.8
Asset-backed securities		3,463.2		42.6		41.3		3,464.5

Total fixed maturity securities		26,958.9		570.3		331.1		27,198.1
Equity securities		35.1		7.0		—		42.1

Total securities available-for-sale	$	26,994.0	$	577.3	$	331.1	$	27,240.2

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The table below summarizes the amortized cost and estimated fair value of fixed maturity securities available-for-sale, by maturity, as of December 31, 2006. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


(in millions)	Amortized cost		Estimated fair value
Fixed maturity securities available-for-sale:
Due in one year or less	$	1,476.3	$	1,488.2
Due after one year through five years		6,350.0		6,406.7
Due after five years through ten years		4,697.0		4,722.5
Due after ten years		3,078.1		3,149.4

Subtotal		15,601.4		15,766.8
Mortgage-backed securities – U.S. Government-backed		6,089.1		5,997.6
Asset-backed securities		3,506.7		3,511.0

Total	$	25,197.2	$	25,275.4

The following table presents the components of net unrealized gains on securities available-for-sale as of December 31:


(in millions)	2006			2005
Net unrealized gains, before adjustments and taxes	$	84.1		$	246.2
Adjustment to DAC		83.3			42.4
Adjustment to future policy benefits and claims		(83.1	)		(104.6	)
Deferred federal income taxes		(29.5	)		(64.4	)

Net unrealized gains	$	54.8		$	119.6

The following table presents an analysis of the net decrease in net unrealized gains on securities available-for-sale before adjustments and taxes for the years ended December 31:


(in millions)	2006			2005			2004
Fixed maturity securities	$	(161.0	)	$	(704.1	)	$	(153.3	)
Equity securities		(1.1	)		(3.4	)		(1.2	)

Net change	$	(162.1	)	$	(707.5	)	$	(154.5	)

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes by time the gross unrealized losses on securities available-for-sale in an unrealized loss position as of the dates indicated:


	Less than or equal to one year				More than one year				Total
(in millions)	Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses
December 31, 2006:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S. Government corporations	$	49.8	$	0.8	$	17.7	$	0.6	$	67.5	$	1.4
Agencies not backed by the full faith and credit of the U.S. Government		31.7		0.1		120.3		2.1		152.0		2.2
Obligations of states and political subdivisions		82.4		1.0		156.3		6.2		238.7		7.2
Debt securities issued by foreign governments		12.8		0.1		—		—		12.8		0.1
Corporate securities
Public		2,445.0		24.3		2,964.6		85.6		5,409.6		109.9
Private		1,162.7		13.5		1,872.3		57.9		3,035.0		71.4
Mortgage-backed securities – U.S. Government-backed		767.8		6.4		3,809.5		106.4		4,577.3		112.8
Asset-backed securities		539.2		4.2		1,336.6		34.8		1,875.8		39.0

Total fixed maturity securities		5,091.4		50.4		10,277.3		293.6		15,368.7		344.0
Equity securities		0.1		—		3.4		0.3		3.5		0.3

Total	$	5,091.5	$	50.4	$	10,280.7	$	293.9	$	15,372.2	$	344.3

% of gross unrealized losses				15%				85%

December 31, 2005:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S. Government corporations	$	25.1	$	0.5	$	3.7	$	0.1	$	28.8	$	0.6
Agencies not backed by the full faith and credit of the U.S. Government		297.0		4.9		42.2		1.3		339.2		6.2
Obligations of states and political subdivisions		150.7		3.0		29.7		0.8		180.4		3.8
Debt securities issued by foreign governments		7.4		0.1		—		—		7.4		0.1
Corporate securities
Public		3,210.4		63.2		1,088.2		43.0		4,298.6		106.2
Private		1,690.3		39.1		672.6		26.2		2,362.9		65.3
Mortgage-backed securities – U.S. Government-backed		4,062.8		88.6		632.6		19.0		4,695.4		107.6
Asset-backed securities		1,420.7		26.1		432.5		15.2		1,853.2		41.3

Total fixed maturity securities		10,864.4		225.5		2,901.5		105.6		13,765.9		331.1
Equity securities		3.9		—		—		—		3.9		—

Total	$	10,868.3	$	225.5	$	2,901.5	$	105.6	$	13,769.8	$	331.1

% of gross unrealized losses				68%				32%

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Increases in unrealized losses more than one year are primarily due to changes in the interest rate environment. Those securities are not considered other-than-temporarily impaired because the decline in market value is attributed to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold those investments until recovery.

Proceeds from the sale of securities available-for-sale during 2006, 2005 and 2004 were $2.27 billion, $2.62 billion and $2.49 billion, respectively. During 2006, gross gains of $61.6 million ($71.9 million and $61.5 million in 2005 and 2004, respectively) and gross losses of $64.1 million ($22.6 million and $8.7 million in 2005 and 2004, respectively) were realized on those sales.

The Company had $5.1 million and $22.2 million of real estate investments as of December 31, 2006 and 2005, respectively, that were non-income producing during the preceding twelve months.

Real estate held for use is presented at cost less accumulated depreciation of $16.7 million as of December 31, 2006 ($21.5 million as of December 31, 2005). The carrying value of real estate held for sale totaled $42.1 million and $2.5 million as of December 31, 2006 and 2005, respectively.

The recorded investment of mortgage loans on real estate considered to be impaired was $17.5 million as of December 31, 2006 ($29.7 million as of December 31, 2005), for which the related valuation allowance was $12.3 million ($7.1 million as of December 31, 2005). Impaired mortgage loans with no valuation allowance are a result of collateral dependent loans where the fair value of the collateral is estimated to be greater than the recorded investment of the loan. During 2006, the average recorded investment in impaired mortgage loans on real estate was $3.5 million ($7.4 million in 2005). Interest income on those loans, which is recognized on a cash basis, totaled $1.9 million in 2006 ($2.1 million in 2005).

The following table summarizes activity in the valuation allowance account for mortgage loans on real estate for the years ended December 31:


(in millions)	2006		2005			2004
Allowance, beginning of period	$	31.1	$	33.3		$	29.1
Net additions (reductions) to allowance		3.2		(2.2	)		4.2

Allowance, end of period	$	34.3	$	31.1		$	33.3

The following table summarizes net realized gains (losses) on investments, hedging instruments and hedged items from continuing operations by source for the years ended December 31:


(in millions)	2006			2005			2004
Total realized gains on sales, net of hedging losses	$	88.8		$	75.6		$	65.0
Total realized losses on sales, net of hedging gains		(64.8	)		(22.9	)		(12.7	)
Total other-than-temporary and other investment impairments		(17.1	)		(36.8	)		(90.6	)
Credit default swaps		(1.1	)		(7.5	)		0.3
Periodic net coupon settlements on non-qualifying derivatives		1.9			1.1			6.6
Other derivatives		(0.6	)		1.1			(5.0	)

Net realized gains (losses) on investments, hedging instruments and hedged items	$	7.1		$	10.6		$	(36.4	)

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes net investment income from continuing operations by investment type for the years ended December 31:


(in millions)	2006			2005			2004
Securities available-for-sale:
Fixed maturity securities	$	1,419.2		$	1,466.2		$	1,461.9
Equity securities		2.6			2.4			1.2
Mortgage loans on real estate		535.4			577.3			577.4
Real estate		17.0			16.6			17.9
Short-term investments		47.3			18.8			8.9
Derivatives		(1.9	)		(31.0	)		(94.3	)
Other		105.8			112.2			78.4

Gross investment income		2,125.4			2,162.5			2,051.4
Less investment expenses		66.9			57.3			50.9

Net investment income	$	2,058.5		$	2,105.2		$	2,000.5

Fixed maturity securities with an amortized cost of $8.1 million and $16.4 million as of December 31, 2006 and 2005, respectively, were on deposit with various regulatory agencies as required by law.

As of December 31, 2006, the Company had not pledged any fixed maturity securities as collateral to various derivative counterparties compared to $8.5 million as of December 31, 2005.

As of December 31, 2006 and 2005, the Company had received $802.3 million and $1.10 billion, respectively, of cash collateral on securities lending and $171.0 million and $203.3 million, respectively, of cash for derivative collateral. As of December 31, 2006 and 2005, the Company had not received any non-cash collateral on securities. Both the cash and non-cash collateral amounts are included in short-term investments with a corresponding liability recorded in other liabilities. As of December 31, 2006 and 2005, the Company had loaned securities with a fair value of $778.6 million and $1.07 billion, respectively. The Company also held $12.8 million and $53.2 million of securities as off-balance sheet collateral on derivative transactions as of December 31, 2006 and 2005, respectively.

(7)

Variable Annuity Contracts

The Company issues traditional variable annuity contracts through its separate accounts, for which investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder. The Company also issues non-traditional variable annuity contracts in which the Company provides various forms of guarantees to benefit the related contractholders. The Company provides four primary guarantee types under non-traditional variable annuity contracts: (1) GMDB; (2) GMAB; (3) guaranteed minimum income benefits (GMIB); and (4) a hybrid guarantee with GMAB and GLWB.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The GMDB provides a specified minimum return upon death. Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse. The survivor has the option to terminate the contract or continue it and have the death benefit paid into the contract and a second death benefit paid upon the survivor’s death. The Company has offered six primary GMDB types:

•

Return of premium– provides the greater of account value or total deposits made to the contract less any partial withdrawals and assessments, which is referred to as “net premiums.” There are two variations of this benefit. In general, there is no lock in age for this benefit. However, for some contracts the GMDB reverts to the account value at a specified age, typically age 75.

•

Reset– provides the greater of a return of premium death benefit or the most recent five-year anniversary (prior to lock-in age) account value adjusted for withdrawals. For most contracts, this GMDB locks in at age 86 or 90, and for others the GMDB reverts to the account value at age 75, 85, 86 or 90.

•

Ratchet– provides the greater of a return of premium death benefit or the highest specified “anniversary” account value (prior to age 86) adjusted for withdrawals. Currently, there are three versions of ratchet, with the difference based on the definition of anniversary: monthaversary – evaluated monthly; annual – evaluated annually; and five-year – evaluated every fifth year.

•

Rollup– provides the greater of a return of premium death benefit or premiums adjusted for withdrawals accumulated at generally 5% simple interest up to the earlier of age 86 or 200% of adjusted premiums. There are two variations of this benefit. For certain contracts, this GMDB locks in at age 86, and for others the GMDB reverts to the account value at age 75.

•

Combo– provides the greater of annual ratchet death benefit or rollup death benefit. This benefit locks in at either age 81 or 86.

•

Earnings enhancement– provides an enhancement to the death benefit that is a specified percentage of the adjusted earnings accumulated on the contract at the date of death. There are two versions of this benefit: (1) the benefit expires at age 86, and a credit of 4% of account value is deposited into the contract; and (2) the benefit does not have an end age, but has a cap on the payout and is paid upon the first death in a spousal situation. Both benefits have age limitations. This benefit is paid in addition to any other death benefits paid under the contract.

The GMAB, offered in the Company’s Capital Preservation Plus (CPP) contract rider, is a living benefit that provides the contractholder with a guaranteed return of premium, adjusted proportionately for withdrawals, after a specified period of time (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract. In some cases, the contractholder also has the option, after a specified period of time, to drop the rider and continue the variable annuity contract without the GMAB. In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy.

The GMIB is a living benefit that provides the contractholder with a guaranteed annuitization value. The GMIB types are:

•

Ratchet– provides an annuitization value equal to the greater of account value, net premiums or the highest one-year anniversary account value (prior to age 86) adjusted for withdrawals.

•

Rollup– provides an annuitization value equal to the greater of account value and premiums adjusted for withdrawals accumulated at 5% compound interest up to the earlier of age 86 or 200% of adjusted premiums.

•

Combo– provides an annuitization value equal to the greater of account value, ratchet GMIB benefit or rollup GMIB benefit.

See Note 5 for a complete description of the Company’s hybrid GMAB/GLWB offered through its CPPLI contract rider. All GMAB contracts with the hybrid GMAB/GLWB rider are included with GMAB contracts in the following tables.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes the account values and net amount at risk, net of reinsurance, for variable annuity contracts with guarantees invested in both general and separate accounts as of December 31:


	2006					2005
(in millions)	Account value		Net amount at risk¹		Wtd. avg. attained age	Account value		Net amount at risk¹		Wtd. avg. attained age
GMDB:
Return of premium	$	9,231.4	$	17.1	60	$	9,260.6	$	32.5	60
Reset		17,587.0		24.2	63		16,932.1		58.7	63
Ratchet		13,481.0		16.0	66		11,020.6		28.9	65
Rollup		538.4		5.7	70		592.1		8.4	69
Combo		2,588.7		14.9	68		2,530.6		22.3	68

Subtotal		43,426.5		77.9	65		40,336.0		150.8	64
Earnings enhancement		477.8		41.1	61		418.5		27.6	61

Total - GMDB	$	43,904.3	$	119.0	65	$	40,754.5	$	178.4	63

GMAB²:
5 Year	$	2,131.1	$	0.1	N/A	$	1,041.8	$	0.5	N/A
7 Year		1,865.7		0.1	N/A		1,103.5		0.2	N/A
10 Year		784.0		—	N/A		595.5		0.1	N/A

Total - GMAB	$	4,780.8	$	0.2	N/A	$	2,740.8	$	0.8	N/A

GMIB³:
Ratchet	$	450.6	$	—	N/A	$	444.7	$	—	N/A
Rollup		1,187.1		—	N/A		1,189.3		—	N/A
Combo		0.5		—	N/A		0.5		—	N/A

Total - GMIB	$	1,638.2	$	—	N/A	$	1,634.5	$	—	N/A

GLWB:
Lifetime Income (L.INC)	$	993.8	$	—	N/A	$	—	$	—	N/A

Total - GLWB	$	993.8	$	—	N/A	$	—	$	—	N/A

Net amount at risk is calculated on a seriatum basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit). As it relates to GMIB, net amount at risk is calculated as if all policies were eligible to annuitize immediately, although all GMIB options have a waiting period of at least 7 years from issuance, with the earliest annuitizations beginning in 2006.

GMAB contracts with the hybrid GMAB/GLWB rider had account values of $2.95 billion and $939.1 million as of December 31, 2006 and 2005, respectively.

The weighted average period remaining until expected annuitization is not meaningful and has not been presented because there is currently no material GMIB exposure.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table is a rollforward of the liabilities for guarantees on variable annuity contracts reflected in the Company’s general account for the years indicated:


(in millions)	GMDB			GMAB			GMIB		GLWB		Total
Balance as of December 31, 2004	$	23.6		$	20.6		$	0.8	$	—	$	45.0
Expense provision		32.8			—			0.4		—		33.2
Net claims paid		(29.5	)		—			—		—		(29.5	)
Value of new business sold		—			53.4			—		—		53.4
Change in fair value		—			(6.1	)		—		—		(6.1	)

Balance as of December 31, 2005		26.9			67.9			1.2		—		96.0
Expense provision		32.5			—			—		0.3		32.8
Net claims paid		(30.1	)		—			—		—		(30.1	)
Value of new business sold		—			95.2			—		—		95.2
Change in fair value		—			(46.8	)		—		—		(46.8	)

Balance as of December 31, 2006	$	29.3		$	116.3		$	1.2	$	0.3	$	147.1

The following table summarizes account balances of contracts with guarantees that were invested in separate accounts as of December 31:


(in millions)	2006		2005
Mutual funds:
Bond	$	4,467.3	$	3,857.3
Domestic equity		29,808.4		28,011.3
International equity		3,420.5		2,161.4

Total mutual funds		37,696.2		34,030.0
Money market funds		1,414.4		1,350.4

Total	$	39,110.6	$	35,380.4

The Company’s GMDB claim reserves are determined by estimating the expected value of death benefits on contracts that trigger a policy benefit and recognizing the excess ratably over the accumulation period based on total expected assessments. GMIB claim reserves are determined each period by estimating the expected value of annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total assessments. The Company regularly evaluates its GMDB and GMIB claim reserve estimates and adjusts the additional liability balances as appropriate, with a related charge or credit to other benefits and claims in the period of evaluation if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in calculating GMIB claim reserves are consistent with those used for calculating GMDB claim reserves. In addition, the calculation of GMIB claim reserves assumes benefit utilization ranges from a low of 3% when the contractholder’s annuitization value is at least 10% in the money to 100% utilization when the contractholder is 90% or more in the money.

In accordance with SOP 03-01, GLWB claim reserves for the L.INC rider are determined each period by estimating the expected value of withdrawal benefits in excess of the projected account balance and recognizing such potential additional liabilities of the Company as a benefit reserve expense ratably over the accumulation period. The Company periodically evaluates estimates used and adjusts the additional liability balance as appropriate, with a related charge or credit to life insurance and annuity benefits in the period of evaluation if actual experience or other evidence suggests that earlier assumptions should be revised.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following assumptions and methodology were used to determine the GMDB claim reserves as of December 31, 2006 and 2005:

•

Data used was based on a combination of historical numbers and future projections involving 50 probabilistically generated economic scenarios

•

Mean gross equity performance – 8.1%

•

Equity volatility – 18.7%

•

Mortality – 100% of Annuity 2000 table

•

Asset fees – equivalent to mutual fund and product loads

•

Discount rate – 8.0%

Lapse rate assumptions vary by duration as shown below:


Duration (years)	1	2	3	4	5	6	7	8	9	10+
Minimum	4.00%	5.00%	6.00%	7.00%	8.00%	9.50%	10.00%	11.00%	14.00%	14.00%
Maximum	4.00%	5.00%	6.00%	7.00%	35.00%	35.00%	23.00%	35.00%	35.00%	23.00%

GMABs and hybrid GMABs/GLWBs are considered embedded derivatives under current accounting guidance, resulting in the related liabilities being separated from the host insurance product and recognized at fair value, with changes in fair value reported in earnings, and therefore, excluded from the SOP 03-1 policy benefits.

(8)

Short-Term Debt

The following table summarizes short-term debt as of December 31:


(in millions)	2006		2005
$800.0 million commercial paper program	$	—	$	134.7
$350.0 million securities lending program facility		75.2		75.0
$250.0 million securities lending program facility		—		32.6

Total short-term debt	$	75.2	$	242.3

The Company has available as a source of funds a $1.00 billion revolving variable rate credit facility entered into by NFS, NLIC and NMIC with a group of national financial institutions. The facility provides for several and not joint liability with respect to any amount drawn by any party. The facility provides covenants, including, but not limited to, requirements that the Company maintain consolidated tangible net worth, as defined, in excess of $2.60 billion and that NLIC maintain statutory surplus, as defined, in excess of $1.67 billion. As of December 31, 2006, the Company and NLIC were in compliance with all covenants. The Company had no amounts outstanding under this agreement as of December 31, 2006 and 2005. NLIC also has an $800.0 million commercial paper program and is required to maintain an available credit facility equal to 50% of any amounts outstanding under the commercial paper program. Therefore, borrowing capacity under the aggregate $1.00 billion revolving credit facility is reduced by 50% of any amounts outstanding under the commercial paper program. NLIC had no commercial paper outstanding at December 31, 2006 and $134.7 million outstanding at December 31, 2005 at a weighted average effective interest rate of 4.22%.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

NLIC has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program. This is an uncommitted facility contingent on the liquidity of the securities lending program. The borrowing facility was established to fund commercial mortgage loans that were originated with the intent of sale through securitization. The maximum amount available under the agreement is $350.0 million. The borrowing rate on this program is equal to one-month U.S. LIBOR. NLIC had $75.2 million and $75.0 million outstanding under this agreement as of December 31, 2006 and 2005, respectively. As of December 31, 2006, the Company had not provided any guarantees on such borrowings, either directly or indirectly.

The Company paid interest on short-term debt totaling $11.7 million, $11.5 million and $3.6 million in 2006, 2005 and 2004, respectively.

(9)

Long-Term Debt

The following table summarizes surplus notes payable to NFS as of December 31:


(in millions)	2006		2005
8.15% surplus note, due June 27, 2032	$	300.0	$	300.0
7.50% surplus note, due December 17, 2031		300.0		300.0
6.75% surplus note, due December 23, 2033		100.0		100.0

Total long-term debt	$	700.0	$	700.0

The Company made interest payments to NFS on surplus notes totaling $53.7 million, $53.7 million and $50.7 million in 2006, 2005 and 2004, respectively. Payments of interest and principal under the notes require the prior approval of the Ohio Department of Insurance (ODI).

(10)

Federal Income Taxes

Through September 30, 2002, the Company filed a consolidated federal income tax return with NMIC, the ultimate majority shareholder of NFS. Effective October 1, 2002, Nationwide Corporation’s ownership in NFS decreased from 79.8% to 63.0%. Therefore, NFS and its subsidiaries, including the Company, no longer qualify to be included in the NMIC consolidated federal income tax return. The members of the NMIC consolidated federal income tax return group participated in a tax sharing arrangement, which provided, in effect, for each member to bear essentially the same federal income tax liability as if separate tax returns were filed.

Under Internal Revenue Code (IRC) regulations, NFS and its subsidiaries cannot file a life/non-life consolidated federal income tax return until five full years following NFS’ departure from the NMIC consolidated federal income tax return group. Therefore, NFS and its direct non-life insurance company subsidiaries will file a consolidated federal income tax return; NLIC and NLAIC will file a consolidated federal income tax return; and the direct non-life insurance companies under NLIC will file separate federal income tax returns, until 2008, when NFS will become eligible to file a single life/non-life consolidated federal income tax return with all of its subsidiaries.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes the tax effects of temporary differences that give rise to significant components of the net deferred tax liability as of December 31:


(in millions)	2006			2005
Deferred tax assets:
Future policy benefits	$	607.8		$	630.5
Other		138.6			185.9

Gross deferred tax assets		746.4			816.4
Less valuation allowance		(7.0	)		(7.0	)

Deferred tax assets, net of valuation allowance		739.4			809.4

Deferred tax liabilities:
Deferred policy acquisition costs		1,022.2			970.5
Other		173.9			237.1

Gross deferred tax liabilities		1,196.1			1,207.6

Net deferred tax liability	$	456.7		$	398.2

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion of the total gross deferred tax assets will not be realized. Future taxable amounts or recovery of federal income taxes paid within the statutory carryback period can offset nearly all future deductible amounts. The valuation allowance was unchanged during 2006, 2005 and 2004.

The Company’s current federal income tax (asset) liability was $(12.6) million and $53.8 million as of December 31, 2006 and 2005, respectively.

Through June 2006, the Company’s federal income tax returns for tax years 2000-2002 were under IRS examination pursuant to a routine audit. In accordance with its regular practice, management established tax reserves representing its best estimate of additional amounts the Company could be required to pay if certain positions it had taken were challenged and ultimately denied by the IRS with respect to these tax years. These reserves are reviewed regularly and are adjusted as events occur that management believes impacts the Company’s liability for additional taxes, such as lapsing of applicable statutes of limitations; conclusion of tax audits or substantial agreement on the deductibility/non-deductibility of uncertain items; additional exposure based on current calculations; identification of new issues; release of administrative guidance; or rendering of a court decision affecting a particular tax issue. A significant component of the Company’s tax reserve as of December 31, 2005 was related to the separate account dividends received deduction (DRD).

In July 2006, the Company reached substantial agreement with the IRS on all open issues for tax years 2000-2002, including issues related to the DRD. Accordingly, the Company revised its estimate of amounts that may be due in connection with certain tax positions, including the DRD, for all open tax years. As a result of the revised estimate, $110.9 million of tax reserves were released into earnings during the quarter ended June 30, 2006.

During the third quarter of 2006, the Company recorded $7.8 million of net federal income tax expense adjustments primarily related to differences between the 2005 estimated tax liability and the amounts reported on the Company’s 2005 tax returns.

During the third quarter of 2005, the Company refined its separate account DRD estimation process. As a result, the Company identified and recorded additional federal income tax benefits and recoverables in the amount of $42.6 million related to all tax years (2000 – 2005) that were open at that time. In addition, the Company recorded $5.6 million of net benefit adjustments primarily related to differences between the 2004 estimated tax liability and the amounts reported on the Company’s 2004 tax returns.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes federal income tax expense attributable to income from continuing operations for the years ended December 31:


(in millions)	2006			2005		2004
Current	$	(61.8	)	$	90.6	$	181.5
Deferred		92.4			5.0		(61.5	)

Federal income tax expense	$	30.6		$	95.6	$	120.0

Total federal income tax expense differs from the amount computed by applying the U.S. federal income tax rate to income from continuing operations before federal income taxes as follows for the years ended December 31:


	2006					2005					2004
(dollars in millions)	Amount			%		Amount			%		Amount			%
Computed (expected) tax expense	$	228.6		35.0		$	217.0		35.0		$	187.2		35.0
Tax exempt interest and DRD		(67.5	)	(10.3	)		(107.5	)	(17.3	)		(47.2	)	(8.8	)
Reserve release		(110.9	)	(17.0	)		—		—			—		—
Other, net		(19.6	)	(3.0	)		(13.9	)	(2.3	)		(20.0	)	(3.8	)

Total	$	30.6		4.7		$	95.6		15.4		$	120.0		22.4

The Jobs Creation Act of 2004 suspends policyholder surplus accounts (PSA) during 2005 and 2006 and provides that direct and indirect distributions from the PSA during any taxable year beginning after 2004 and before 2007 be treated as zero. Because NLIC had the ability and intent to distribute this PSA balance to its shareholder during the noted period, the potential tax liability was eliminated as of December 31, 2004. The Jobs Creation Act of 2004 had no other significant impact on the Company’s tax position.

Total federal income taxes (refunded) paid were $(4.3) million, $182.2 million and $142.3 million during the years ended December 31, 2006, 2005 and 2004, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(11)

Shareholders’ Equity, Regulatory Risk-Based Capital and Dividend Restrictions

Regulatory Risk-Based Capital

The State of Ohio, where NLIC and NLAIC are domiciled, imposes minimum risk-based capital requirements that were developed by the NAIC. The formulas for determining the amount of risk-based capital specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. NLIC and NLAIC each exceeded the minimum risk-based capital requirements for all periods presented herein.

Dividend Restrictions

State insurance laws generally restrict the ability of insurance companies to pay cash dividends and make other payments in excess of certain prescribed limitations without prior approval. The Company is limited in the amount of shareholder dividends it may pay without prior approval by the ODI. The statutory capital and surplus of NLIC as of December 31, 2006 and 2005 was $2.68 billion and $2.60 billion, respectively. The statutory net income of NLIC for the years ended December 31, 2006, 2005 and 2004 was $537.5 million, $462.5 million and $317.7 million, respectively. As of January 1, 2007, based on statutory financial results as of and for the year ended December 31, 2006, NLIC could pay dividends totaling $162.5 million without obtaining prior approval. As of March 1, 2007, NLIC will be able to pay dividends to NFS totaling $232.5 million upon providing prior notice to the ODI. On February 21, 2007, NLIC declared an ordinary dividend of $232.5 million and an extraordinary dividend of $242.5 million, both payable to NFS in March 2007. NLIC will provide notice to the ODI of the ordinary dividend and seek prior approval from the ODI of the extraordinary dividend before paying these dividends to NFS.

In addition, the payment of dividends by NLIC may also be subject to restrictions set forth in the insurance laws of the State of New York that limit the amount of statutory profits on NLIC’s participating policies (measured before dividends to policyholders) that can inure to the benefit of the Company and its shareholder.

The Company currently does not expect such regulatory requirements to impair its ability to pay future operating expenses, interest and shareholder dividends.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Comprehensive Income

The Company’s comprehensive income includes net income and certain items that are reported directly within separate components of shareholder’s equity that are not recorded in net income (other comprehensive income or loss).

The following table summarizes the Company’s other comprehensive loss, before and after federal income tax benefit (expense), for the years ended December 31:


(in millions)	2006			2005			2004
Net unrealized losses on securities available-for-sale arising during the period:
Net unrealized losses before adjustments	$	(171.3	)	$	(687.2	)	$	(182.0	)
Net adjustment to deferred policy acquisition costs		40.9			187.0			99.1
Net adjustment to future policy benefits and claims		21.5			17.0			(11.0	)
Related federal income tax benefit		38.1			169.1			33.3

Net unrealized losses		(70.8	)		(314.1	)		(60.6	)

Reclassification adjustment for net realized losses (gains) on securities available-for-sale realized during the period:
Net unrealized losses (gains)		9.2			(20.3	)		27.5
Related federal income tax (benefit) expense		(3.2	)		7.1			(9.6	)

Net reclassification adjustment		6.0			(13.2	)		17.9

Other comprehensive loss on securities available-for-sale		(64.8	)		(327.3	)		(42.7	)

Accumulated net holding (losses) gains on cash flow hedges:
Unrealized holding (losses) gains		(0.2	)		41.7			(47.4	)
Related federal income tax benefit (expense)		0.1			(14.6	)		16.6

Other comprehensive (loss) income on cash flow hedges		(0.1	)		27.1			(30.8	)

Total other comprehensive loss	$	(64.9	)	$	(300.2	)	$	(73.5	)

Adjustments for net realized gains and losses on the ineffective portion of cash flow hedges were immaterial during the years ended December 31, 2006, 2005 and 2004.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(12)

Employee Benefit Plans

Defined Benefit Plans

The Company and certain affiliated companies participate in a qualified defined benefit pension plan sponsored by NMIC. This plan covers all employees of participating companies who have completed at least one year of service. Plan contributions are invested in a group annuity contract issued by NLIC. All participants are eligible for benefits based on an account balance feature. Participants last hired before 2002 are eligible for benefits based on the highest average annual salary of a specified number of consecutive years of the last ten years of service, if such benefits are of greater value than the account balance feature. The Company funds pension costs accrued for direct employees plus an allocation of pension costs accrued for employees of affiliates whose work benefits the Company. A separate non-qualified defined benefit pension plan sponsored by NMIC covers certain executives with at least one year of service. The Company’s portion of expense relating to these plans was $19.9 million, $16.6 million and $13.7 million for the years ended December 31, 2006, 2005 and 2004, respectively.

In addition to the NMIC pension plan, the Company and certain affiliated companies participate in life and health care defined benefit plans sponsored by NMIC for qualifying retirees. Postretirement life and health care benefits are contributory. The level of contribution required by a qualified retiree depends on the retiree’s years of service and date of hire. In general, postretirement benefits are available to full-time employees who are credited with 120 months of retiree life and health service. Postretirement health care benefit contributions are adjusted annually and contain cost-sharing features such as deductibles and coinsurance. In addition, there are caps on the Company’s portion of the per-participant cost of the postretirement health care benefits. The Company’s policy is to fund the cost of health care benefits in amounts determined at the discretion of management. Plan assets are invested primarily in group annuity contracts issued by NLIC. The Company’s portion of expense relating to these plans was immaterial for the years ended December 31, 2006, 2005 and 2004.

Defined Contribution Plans

NMIC sponsors a defined contribution retirement savings plan covering substantially all employees of the Company. Employees may make salary deferral contributions of up to 80%. Salary deferrals of up to 6% are subject to a 50% Company match. The Company’s expense for contributions to these plans was $6.6 million, $6.2 million and $5.8 million for the years ended December 31, 2006, 2005 and 2004, respectively.

(13)

Related Party Transactions

The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations. These include annuity and life insurance contracts, office space leases, and agreements related to reinsurance, cost sharing, administrative services, marketing, intercompany loans, intercompany repurchases, cash management services and software licensing. Measures used to allocate expenses among companies include individual employee estimates of time spent, special cost studies, the number of full-time employees, commission expense and other methods agreed to by the participating companies and that are within industry guidelines and practices.

In addition, Nationwide Services Company, LLC (NSC), a subsidiary of NMIC, provides computer, telephone, mail, employee benefits administration and other services to NMIC and certain of its direct and indirect subsidiaries, including the Company, based on specified rates for units of service consumed. For the years ended December 31, 2006, 2005 and 2004, the Company made payments to NMIC and NSC totaling $261.7 million, $274.1 million and $194.6 million, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates. Total account values of these contracts were $5.48 billion and $6.39 billion as of December 31, 2006 and 2005, respectively. Total revenues from these contracts were $133.4 million, $136.2 million and $136.5 million for the years ended December 31, 2006, 2005 and 2004, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees. Total interest credited to the account balances was $110.7 million, $107.3 million and $107.9 million for the years ended December 31, 2006, 2005 and 2004, respectively. The terms of these contracts are consistent in all material respects with what the Company offers to unaffiliated parties who are similarly situated.

The Company leases office space from NMIC. For the years ended December 31, 2006, 2005 and 2004, the Company made lease payments to NMIC of $19.3 million, $18.7 million and $18.4 million, respectively.

NLIC has a reinsurance agreement with NMIC whereby all of NLIC’s accident and health business not ceded to unaffiliated reinsurers is ceded to NMIC on a modified coinsurance basis. Either party may terminate the agreement on January 1 of any year with prior notice. Under a modified coinsurance agreement, the ceding company retains invested assets, and investment earnings are paid to the reinsurer. Under the terms of NLIC’s agreements, the investment risk associated with changes in interest rates is borne by the reinsurer. The ceding of risk does not discharge the original insurer from its primary obligation to the policyholder. The Company believes that the terms of the modified coinsurance agreements are consistent in all material respects with what the Company could have obtained with unaffiliated parties. Revenues ceded to NMIC for the years ended December 31, 2006, 2005 and 2004 were $430.8 million, $429.5 million and $335.6 million, respectively, while benefits, claims and expenses ceded during these years were $470.4 million, $398.8 million and $336.0 million, respectively.

Funds of NWD Investment Management, Inc. (NWD), an affiliate, are offered to the Company’s customers as investment options in certain of the Company’s products. As of December 31, 2006 and 2005, customer allocations to NWD funds totaled $18.26 billion and $15.70 billion, respectively. For the years ended December 31, 2006, 2005 and 2004, NWD paid the Company $64.4 million, $51.6 million and $44.5 million, respectively, for the distribution and servicing of these funds.

Under a marketing agreement with NMIC, NLIC makes payments to cover a portion of the agent marketing allowance that is paid to Nationwide agents. These costs cover product development and promotion, sales literature, rent and similar items. Payments under this agreement totaled $28.3 million, $26.5 million and $23.2 million for the years ended December 31, 2006, 2005 and 2004, respectively.

The Company also participates in intercompany repurchase agreements with affiliates whereby the seller transfers securities to the buyer at a stated value. Upon demand or after a stated period, the seller repurchases the securities at the original sales price plus interest. As of December 31, 2006 and 2005, the Company had no outstanding borrowings from affiliated entities under such agreements. During 2006, 2005 and 2004, the most the Company had outstanding at any given time was $191.5 million, $55.3 million and $227.7 million, respectively, and the amounts the Company incurred for interest expense on intercompany repurchase agreements during these years were immaterial.

The Company and various affiliates entered into agreements with Nationwide Cash Management Company (NCMC), an affiliate, under which NCMC acts as a common agent in handling the purchase and sale of short-term securities for the respective accounts of the participants. Amounts on deposit with NCMC for the benefit of the Company were $601.3 million and $390.9 million as of December 31, 2006 and 2005, respectively, and are included in short-term investments on the consolidated balance sheets.

Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS. Total commissions and fees paid to these affiliates for the years ended December 31, 2006, 2005 and 2004 were $58.1 million, $59.0 million and $63.1 million, respectively.

During the years ended December 31, 2006 and 2005, the Company did not purchase any fixed maturity securities available-for-sale from NFN compared to $829.9 million during 2004. NFN recorded gross realized gains of $23.4 million on such transactions during 2004.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

An affiliate of the Company is currently developing a browser-based policy administration and online brokerage software application for defined benefit plans. In connection with the development of this application, the Company made net payments, which were expensed, to that affiliate related to development totaling $6.9 million, $2.9 million and $2.6 million for the years ended December 31, 2006, 2005 and 2004, respectively.

Historically, the Company has retained funds for certain claim and benefit payments to customers in the form of interest-bearing accounts. During the year ended December 31, 2006, this practice was discontinued. Eligible participant balances totaling $224.7 million were transferred from the Company to interest-bearing deposit accounts of Nationwide Bank, a wholly-owned subsidiary of NFS, in exchange for cash plus a premium of $0.7 million payable to NFS for the value of the relationships acquired by Nationwide Bank.

Through September 30, 2002, the Company filed a consolidated federal income tax return with NMIC, as discussed in more detail in Note 10. Effective October 1, 2002, NLIC began filing a consolidated federal income tax return with NLAIC. Total payments (from) to NMIC were $(15.3) million, $45.0 million and $37.4 million in the years ended December 31, 2006, 2005 and 2004, respectively. These payments related to tax years prior to deconsolidation.

In 2006, 2005 and 2004, NLIC paid dividends to NFS totaling $375.0 million, $185.0 million and $125.0 million, respectively.

(14)

Contingencies

Legal Matters

The Company is a party to litigation and arbitration proceedings in the ordinary course of its business. It is often not possible to determine the ultimate outcome of the pending investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty. Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages. In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period. In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available. The Company does not believe, based on information currently known by management, that the outcomes of such pending investigations and legal proceedings are likely to have a material adverse effect on the Company’s consolidated financial position. However, given the large and/or indeterminate amounts sought in certain of these matters and inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could have a material adverse effect on the Company’s consolidated financial results in a particular quarterly or annual period.

The financial services industry, including mutual fund, variable annuity, life insurance and distribution companies, has also been the subject of increasing scrutiny by regulators, legislators and the media over the past few years. Numerous regulatory agencies, including the SEC, the National Association of Securities Dealers and the New York State Attorney General, have commenced industry-wide investigations regarding late trading and market timing in connection with mutual funds and variable insurance contracts, and have commenced enforcement actions against some mutual fund and life insurance companies on those issues. The Company has been contacted by or received subpoenas from the SEC and the New York State Attorney General, who are investigating market timing in certain mutual funds offered in insurance products sponsored by the Company. The Company has cooperated with these investigations. Information requests from the New York State Attorney General and the SEC with respect to investigations into late trading and market timing were last responded to by the Company and its affiliates in December 2003 and June 2005, respectively, and no further information requests have been received with respect to these matters.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

In addition, state and federal regulators have commenced investigations or other proceedings relating to compensation and bidding arrangements and possible anti-competitive activities between insurance producers and brokers and issuers of insurance products, and unsuitable sales and replacements by producers on behalf of the issuer. Also under investigation are compensation and revenue sharing arrangements between the issuers of variable insurance contracts and mutual funds or their affiliates, the use of side agreements and finite reinsurance agreements, funding agreements issued to back MTN programs, recordkeeping and retention compliance by broker/dealers, and supervision of former registered representatives. Related investigations and proceedings may be commenced in the future. The Company and/or its affiliates have been contacted by or received subpoenas from state and federal regulatory agencies, state securities law regulators and state attorneys general for information relating to certain of these investigations, including those relating to compensation, revenue sharing and bidding arrangements, anti-competitive activities, unsuitable sales or replacement practices, the use of side agreements and finite reinsurance agreements, and funding agreements backing the NLIC MTN program. The Company is cooperating with regulators in connection with these inquiries and will cooperate with NMIC in responding to these inquiries to the extent that any inquiries encompass NMIC’s operations.

These proceedings are expected to continue in the future and could result in legal precedents and new industry-wide legislation, rules and regulations that could significantly affect the financial services industry, including life insurance and annuity companies. These proceedings also could affect the outcome of one or more of the Company’s litigation matters. There can be no assurance that any such litigation or regulatory actions will not have a material adverse effect on the Company in the future.

On November 15, 2006, NFS, NLIC and NRS were named in a lawsuit filed in the Untied States District Court for the Southern District of Ohio entitled Kevin Beary, Sheriff of Orange County, Florida, In His Official Capacity, Individually and On Behalf of All Others Similarly Situated v. Nationwide Life Insurance Co., Nationwide Retirement Solutions, Inc. and Nationwide Financial Services, Inc. The plaintiff seeks to represent a class of all sponsors of 457(b) deferred compensation plans in the United States that had variable annuity contracts with the defendants at any time during the class period, or in the alternative, all sponsors of 457(b) deferred compensation plans in Florida that had variable annuity contracts with the defendants during the class period. The Class Period is from January 1, 1996 until the Class Notice is provided. The plaintiff alleges that the defendants breached their fiduciary duties by arranging for and retaining service payments from certain mutual funds. The complaint seeks an accounting, a declaratory judgment, a permanent injunction and disgorgement or restitution of the service fee payments allegedly received by the defendants, including interest. On January 25, 2007, NFS, NLIC and NRS filed a motion to dismiss. NFS, NLIC and NRS intend to defend this lawsuit vigorously.

On February 11, 2005, NLIC was named in a class action lawsuit filed in Common Pleas Court, Franklin County, Ohio entitled Michael Carr v. Nationwide Life Insurance Company. The complaint seeks recovery for breach of contract, fraud by omission, violation of the Ohio Deceptive Trade Practices Act and unjust enrichment. The complaint also seeks unspecified compensatory damages, disgorgement of all amounts in excess of the guaranteed maximum premium and attorneys’ fees. On February 2, 2006, the Court granted the plaintiff’s motion for class certification on the breach of contract and unjust enrichment claims. The Court certified a class consisting of all residents of the United States and the Virgin Islands who, during the Class Period, paid premiums on a modal basis to NLIC for term life insurance policies issued by NLIC during the Class Period that provide for guaranteed maximum premiums, excluding certain specified products. Excluded from the class are NLIC; any parent, subsidiary or affiliate of NLIC; all employees, officers and directors of NLIC; and any justice, judge or magistrate judge of the State of Ohio who may hear the case. The Class Period is from February 10, 1990 through February 2, 2006, the date the class was certified. On January 26, 2007, the plaintiff filed a motion for summary judgment. NLIC continues to defend this lawsuit vigorously.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

On April 13, 2004, NLIC was named in a class action lawsuit filed in Circuit Court, Third Judicial Circuit, Madison County, Illinois, entitled Woodbury v. Nationwide Life Insurance Company. NLIC removed this case to the United States District Court for the Southern District of Illinois on June 1, 2004. On December 27, 2004, the case was transferred to the United States District Court for the District of Maryland and included in the multi-district proceeding entitled In Re Mutual Funds Investment Litigation. In response, on May 13, 2005, the plaintiff filed a First Amended Complaint purporting to represent, with certain exceptions, a class of all persons who held (through their ownership of an NLIC annuity or insurance product) units of any NLIC sub-account invested in mutual funds that included foreign securities in their portfolios and that experienced market timing or stale price trading activity. The First Amended Complaint purports to disclaim, with respect to market timing or stale price trading in NLIC’s annuities sub-accounts, any allegation based on NLIC’s untrue statement, failure to disclose any material fact, or usage of any manipulative or deceptive device or contrivance in connection with any class member’s purchases or sales of NLIC annuities or units in annuities sub-accounts. The plaintiff claims, in the alternative, that if NLIC is found with respect to market timing or stale price trading in its annuities sub-accounts, to have made any untrue statement, to have failed to disclose any material fact or to have used or employed any manipulative or deceptive device or contrivance, then the plaintiff purports to represent a class, with certain exceptions, of all persons who, prior to NLIC’s untrue statement, omission of material fact, use or employment of any manipulative or deceptive device or contrivance, held (through their ownership of an NLIC annuity or insurance product) units of any NLIC sub-account invested in mutual funds that included foreign securities in their portfolios and that experienced market timing activity. The First Amended Complaint alleges common law negligence and seeks to recover damages not to exceed $75,000 per plaintiff or class member, including all compensatory damages and costs. On June 1, 2006, the District Court granted NLIC’s motion to dismiss the plaintiff’s complaint. On November 29, 2006, the plaintiff filed its appellate brief with the Fourth Circuit Court of Appeals contesting the District Court’s dismissal. NLIC continues to defend this lawsuit vigorously.

On January 21, 2004, NLIC, Nationwide Life Insurance Company of America, NLAIC, NFS and Nationwide Financial Corporation (collectively referred to as the Companies) were named in a lawsuit filed in the United States District Court for the Northern District of Mississippi entitled United Investors Life Insurance Company v. Nationwide Life Insurance Company and/or Nationwide Life Insurance Company of America and/or Nationwide Life and Annuity Insurance Company and/or Nationwide Life and Annuity Company of America and/or Nationwide Financial Services, Inc. and/or Nationwide Financial Corporation, and John Does A-Z. In its complaint, the plaintiff alleges that the Companies and/or their affiliated life insurance companies caused the replacement of variable insurance policies and other financial products issued by United Investors with policies issued by the Companies. The plaintiff raises claims for (1) violations of the Federal Lanham Act, and common law unfair competition and defamation; (2) tortious interference with the plaintiff’s contractual relationship with Waddell & Reed, Inc. and/or its affiliates, Waddell & Reed Financial, Inc., Waddell & Reed Financial Services, Inc. and W&R Insurance Agency, Inc., or with the plaintiff’s contractual relationships with its variable policyholders; (3) civil conspiracy; and (4) breach of fiduciary duty. The complaint seeks compensatory damages, punitive damages, pre- and post-judgment interest, a full accounting, a constructive trust and costs and disbursements, including attorneys’ fees. On December 30, 2005, the Companies filed a motion for summary judgment. On June 15, 2006, the District Court granted the Companies’ motion for summary judgment on all grounds and dismissed the plaintiff’s entire case with prejudice. The plaintiff appealed the District Court’s decision to the Fifth Circuit Court of Appeals. The appeal has been fully briefed, and the Companies are awaiting a decision. The Companies continue to defend this lawsuit vigorously.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. Currently, the plaintiffs’ fifth amended complaint, filed March 21, 2006, purports to represent a class of qualified retirement plans under ERISA that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by NLIC and NFS, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys’ fees. To date, the District Court has rejected the plaintiffs’ request for certification of the alleged class. NFS’ and NLIC’s motion to dismiss the plaintiffs’ fifth amended complaint is currently pending before the court. NFS and NLIC continue to defend this lawsuit vigorously.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

Tax Matters

The Company’s federal income tax returns are routinely audited by the IRS. Management has established tax reserves representing its best estimate of additional amounts it may be required to pay if certain tax positions it has taken are challenged and ultimately denied by the IRS. These reserves are reviewed regularly and are adjusted as events occur that management believes impact its liability for additional taxes, such as lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement on the deductibility/non-deductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue. Management believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

(15)

Guarantees

Since 2001, the Company has sold $626.1 million of credit enhanced equity interests in Low-Income-Housing Tax Credit Funds (Tax Credit Funds) to unrelated third parties. The Company has guaranteed cumulative after-tax yields to the third party investors ranging from 3.75% to 5.25% over periods ending between 2002 and 2022. As of December 31, 2006, the Company held guarantee reserves totaling $6.3 million on these transactions. These guarantees are in effect for periods of approximately 15 years each. The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital. If the tax benefits are not sufficient to provide these cumulative after-tax yields, then the Company must fund any shortfall, which is mitigated by stabilization collateral set aside by the Company at the inception of the transactions. The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $1.36 billion. The Company does not anticipate making any payments related to these guarantees.

At the time of the sales, $5.9 million of net sale proceeds were set aside as collateral for certain properties owned by the Tax Credit Funds that had not met all of the criteria necessary to generate tax credits. Such criteria include completion of construction and the leasing of each unit to a qualified tenant, among others. Properties meeting the necessary criteria are considered to have “stabilized.” The properties are evaluated regularly, and the collateral is released when stabilized. During 2006 and 2005, no stabilization collateral amounts were released into income. As of December 31, 2006 and 2005, $2.2 million of stabilization collateral was unrecognized and recorded as a reserve, respectively.

To the extent there are cash deficits in any specific property owned by the Tax Credit Funds, property reserves, property operating guarantees and reserves held by the Tax Credit Funds are exhausted before the Company is required to perform under its guarantees. To the extent the Company is ever required to perform under its guarantees, it may recover any such funding out of the cash flow distributed from the sale of the underlying properties of the Tax Credit Funds. This cash flow distribution would be paid to the Company prior to any cash flow distributions to unrelated third party investors.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(16)

Variable Interest Entities

As of December 31, 2006 and 2005, the Company had relationships with 18 and 19 variable interest entities (VIEs), respectively, each of which the Company was the primary beneficiary. As of December 31, 2006, each VIE was a conduit that assists the Company in structured products transactions involving the sale of Tax Credit Funds to third party investors for which the Company provides guaranteed returns (see Note 15). The results of operations and financial position of these VIEs are included along with corresponding minority interest liabilities in the accompanying consolidated financial statements.

VIE net assets were $445.5 million and $440.6 million as of December 31, 2006 and December 31, 2005, respectively. The following table summarizes the components of net assets as of December 31:


(in millions)	2006			2005
Mortgage loans on real estate	$	—		$	31.5
Other long-term investments		432.5			478.6
Short-term investments		33.7			42.3
Other assets		37.8			41.3
Short-term debt		—			(32.6	)
Other liabilities		(58.5	)		(120.5	)

The Company’s total loss exposure from VIEs of which the Company is the primary beneficiary was immaterial as of December 31, 2006 and 2005 (except for the impact of guarantees disclosed in Note 15).

In addition to the VIEs described above, the Company holds variable interests, in the form of limited partnerships or similar investments, in Tax Credit Funds of which the Company is not the primary beneficiary. These investments have been held by the Company for periods of 1 to 10 years and allow the Company to utilize certain tax credits and realize other tax benefits from affordable housing projects. The Company also has certain investments in other securitization transactions that qualify as VIEs, but of which the Company is not the primary beneficiary. The total exposure to loss on these VIEs was $68.9 million and $53.9 million as of December 31, 2006 and 2005, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

(17)

Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments: Individual Investments, Retirement Plans, Individual Protection, and Corporate and Other.

The primary segment profitability measure that management uses is pre-tax operating earnings, which is calculated by adjusting income from continuing operations before federal income taxes to exclude (1) net realized gains and losses on investments, hedging instruments and hedged items, except for periodic net coupon settlements on non-qualifying derivatives and net realized gains and losses related to securitizations and (2) the adjustment to amortization of DAC related to net realized gains and losses.

Individual Investments

The Individual Investments segment consists of individual The BEST of AMERICA^® and private label deferred variable annuity products, deferred fixed annuity products, income products and advisory services. Individual deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including lump sum, systematic withdrawal or a stream of payments for life. In addition, individual variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while individual fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods.

Retirement Plans

The Retirement Plans segment is comprised of the Company’s private and public sector retirement plans business. The private sector primarily includes IRC Section 401(k) business, and the public sector primarily includes IRC Section 457 and Section 401(a) business, both in the form of full-service arrangements that provide plan administration and fixed and variable group annuities as well as administration-only business.

Individual Protection

The Individual Protection segment consists of investment life insurance products, including individual variable, COLI and BOLI products; traditional life insurance products; and universal life insurance products. Life insurance products provide a death benefit and generally allow the customer to build cash value on a tax-advantaged basis.

Corporate and Other

The Corporate and Other segment includes certain structured products business; the MTN program; net investment income and certain expenses not allocated to other segments; periodic net coupon settlements on non-qualifying derivatives; interest expense on debt; revenue and expenses of the Company’s non-insurance subsidiaries not reported in other segments; and net realized gains and losses related to securitizations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004

The following table summarizes the Company’s business segment operating results for the years ended December 31:

(in millions)

Individual
Investments

Retirement
Plans

Individual
Protection

Corporate
and Other

Total

2006

Revenues:

Policy charges

581.7

160.2

390.7

—

1,132.6

Traditional life insurance and immediate annuity premiums

142.5

—

165.8

—

308.3

Net investment income

739.5

636.0

328.2

354.8

2,058.5

Net realized gains on investments, hedging instruments and hedged items¹

—

1.0

Other income

2.6

—

0.3

3.4

6.3

Total revenues

1,466.3

796.2

885.0

359.2

3,506.7

Benefits and expenses:

Interest credited to policyholder account values

501.7

440.5

179.2

208.7

1,330.1

Life insurance and annuity benefits

202.8

—

247.5

—

450.3

Policyholder dividends on participating policies

—

25.6

—

25.6

Amortization of DAC

352.7

37.9

69.6

(9.9

)

450.3

Interest expense on debt

—

65.5

Other operating expenses

206.3

179.1

142.4

4.0

531.8

Total benefits and expenses

1,263.5

657.5

664.3

268.3

2,853.6

Income from continuing operations before federal income tax expense

202.8

138.7

220.7

90.9

653.1

Net realized gains on investments, hedging instruments and hedged items¹

—

(1.0

)

Adjustment to amortization related to net realized gains and losses

—

(9.9

)

Pre-tax operating earnings

202.8

138.7

220.7

80.0

Assets as of period end

55,404.6

28,817.2

16,948.8

8,791.8

109,962.4

Excluding periodic net coupon settlements on non-qualifying derivatives and net realized gains and losses related to securitizations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004


(in millions)	Individual Investments		Retirement Plans		Individual Protection		Corporate and Other			Total
2005
Revenues:
Policy charges	$	532.4	$	145.0	$	377.7	$	—		$	1,055.1
Traditional life insurance and immediate annuity premiums		96.7		—		163.3		—			260.0
Net investment income		822.4		642.9		332.8		307.1			2,105.2
Net realized gains on investments, hedging instruments and hedged items¹		—		—		—		9.5			9.5
Other income		1.3		0.2		—		1.8			3.3

Total revenues		1,452.8		788.1		873.8		318.4			3,433.1

Benefits and expenses:
Interest credited to policyholder account values		557.7		444.8		182.4		146.1			1,331.0
Life insurance and annuity benefits		149.1		—		228.4		—			377.5
Policyholder dividends on participating policies		—		—		33.1		—			33.1
Amortization of DAC		329.1		47.2		89.0		1.0			466.3
Interest expense on debt		—		—		—		66.3			66.3
Other operating expenses		193.1		181.8		148.1		15.8			538.8

Total benefits and expenses		1,229.0		673.8		681.0		229.2			2,813.0

Income from continuing operations before federal income tax expense		223.8		114.3		192.8		89.2		$	620.1

Net realized gains on investments, hedging instruments and hedged items¹		—		—		—		(9.5	)
Adjustment to amortization of DAC related to net realized gains and losses		—		—		—		1.0

Pre-tax operating earnings	$	223.8	$	114.3	$	192.8	$	80.7

Assets as of period end	$	52,929.2	$	29,987.2	$	14,728.7	$	9,313.4		$	106,958.5

Excluding periodic net coupon settlements on non-qualifying derivatives and net realized gains and losses related to securitizations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2006, 2005 and 2004


(in millions)	Individual Investments		Retirement Plans		Individual Protection		Corporate and Other			Total
2004
Revenues:
Policy charges	$	503.6	$	157.0	$	364.6	$	—		$	1,025.2
Traditional life insurance and immediate annuity premiums		87.5		—		182.9		—			270.4
Net investment income		824.8		627.9		327.2		220.6			2,000.5
Net realized losses on investments, hedging instruments and hedged items¹		—		—		—		(43.0	)		(43.0	)
Other income		0.6		—		—		15.8			16.4

Total revenues		1,416.5		784.9		874.7		193.4			3,269.5

Benefits and expenses:
Interest credited to policyholder account values		573.5		435.5		181.5		86.7			1,277.2
Life insurance and annuity benefits		136.9		—		232.3		—			369.2
Policyholder dividends on participating policies		—		—		36.2		—			36.2
Amortization of DAC		276.1		39.6		94.4		—			410.1
Interest expense on debt		—		—		—		59.8			59.8
Other operating expenses		210.0		184.5		159.7		27.8			582.0

Total benefits and expenses		1,196.5		659.6		704.1		174.3			2,734.5

Income from continuing operations before federal income tax expense		220.0		125.3		170.6		19.1		$	535.0

Net realized losses on investments, hedging instruments and hedged items¹		—		—		—		43.0

Pre-tax operating earnings	$	220.0	$	125.3	$	170.6	$	62.1

Assets as of period end	$	52,642.5	$	29,668.7	$	12,932.4	$	10,714.3		$	105,957.9

Excluding periodic net coupon settlements on non-qualifying derivatives and net realized gains and losses related to securitizations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule I Consolidated Summary of Investments – Other Than Investments in Related Parties

As of December 31, 2006 (in millions)


Column A	Column B		Column C		Column D
Type of investment	Cost		Market value		Amount at which shown in the consolidated balance sheet
Fixed maturity securities available-for-sale:
Bonds:
U.S. Treasury securities and obligations of U.S. Government corporations	$	123.7	$	133.7	$	133.7
Agencies not backed by the full faith and credit of the U.S. Government		559.4		603.4		603.4
Obligations of states and political subdivisions		266.0		259.5		259.5
Foreign governments		34.9		36.5		36.5
Public utilities		1,541.9		1,543.5		1,543.5
All other corporate		22,671.3		22,698.8		22,698.8

Total fixed maturity securities available-for-sale		25,197.2		25,275.4		25,275.4

Equity securities available-for-sale:
Common stocks:
Banks, trusts and insurance companies		13.3		17.8		17.8
Industrial, miscellaneous and all other		7.8		9.1		9.1
Nonredeemable preferred stocks		7.4		7.5		7.5

Total equity securities available-for-sale		28.5		34.4		34.4

Mortgage loans on real estate, net		8,222.9				8,202.2	¹
Real estate, net:
Investment properties		66.3				49.7	²
Acquired in satisfaction of debt		5.2				5.1	²

Total real estate, net		71.5				54.8

Policy loans		639.2				639.2
Other long-term investments		677.4				574.9	^{3, 4}
Short-term investments, including amounts managed by a related party		1,722.0				1,722.0

Total investments	$	36,558.7			$	36,502.9

¹	Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans on real estate (see Note 6 to the audited consolidated financial statements), hedges and commitment hedges on mortgage loans on real estate.

²	Difference from Column B primarily results from adjustments for accumulated depreciation.

³	Difference from Column B primarily is due to operating gains and/or losses of investments in limited partnerships.

⁴	Amount shown does not agree to the audited consolidated balance sheet due to $24.1 million in unconsolidated related party investments.

See accompanying report of independent registered public accounting firm.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule III Supplementary Insurance Information

As of December 31, 2006, 2005 and 2004 and for each of the years then ended (in millions)


Column A	Column B			Column C		Column D			Column E		Column F
Year: Segment	Deferred policy acquisition costs			Future policy benefits, losses, claims and loss expenses		Unearned premiums¹			Other policy claims and benefits payable¹		Premium revenue
2006
Individual Investments	$	1,945.0		$	13,004.4						$	142.5
Retirement Plans		288.6			10,839.0							—
Individual Protection		1,441.0			5,574.1							165.8
Corporate and Other		83.4			4,991.9							—

Total	$	3,758.0		$	34,409.4						$	308.3

2005
Individual Investments	$	1,936.4		$	14,970.9						$	96.7
Retirement Plans		290.3			10,847.3							—
Individual Protection		1,328.7			5,531.9							163.3
Corporate and Other		42.5			4,591.0							—

Total	$	3,597.9		$	35,941.1						$	260.0

2004
Individual Investments	$	2,015.5		$	15,500.6						$	87.5
Retirement Plans		301.7			10,139.8							—
Individual Protection		1,244.1			5,430.5							182.9
Corporate and Other		(144.7	)		5,312.2							—

Total	$	3,416.6		$	36,383.1						$	270.4


Column A	Column G			Column H		Column I			Column J		Column K
Year: Segment	Net investment income²			Benefits, claims, losses and settlement expenses		Amortization of deferred policy acquisition costs			Other operating expenses²		Premiums written
2006
Individual Investments	$	739.5		$	704.5	$	352.7			206.3
Retirement Plans		636.0			440.5		37.9			179.1
Individual Protection		328.2			452.3		69.6			142.4
Corporate and Other		354.8			208.7		(9.9	)		4.0

Total	$	2,058.5		$	1,806.0	$	450.3		$	531.8

2005
Individual Investments	$	822.4		$	706.8	$	329.1		$	193.1
Retirement Plans		642.9			444.8		47.2			181.8
Individual Protection		332.8			443.9		89.0			148.1
Corporate and Other		307.1			146.1		1.0			15.8

Total	$	2,105.2		$	1,741.6	$	466.3		$	538.8

2004
Individual Investments	$	824.8		$	710.4	$	276.1		$	210.0
Retirement Plans		627.9			435.5		39.6			184.5
Individual Protection		327.2			450.0		94.4			159.7
Corporate and Other		220.6			86.7		—			27.8

Total	$	2,000.5		$	1,682.6	$	410.1		$	582.0

¹	Unearned premiums and other policy claims and benefits payable are included in Column C amounts.

²	Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule IV Reinsurance

As of December 31, 2006, 2005 and 2004 and for each of the years then ended (dollars in millions)


Column A	Column B		Column C		Column D		Column E		Column F
	Gross amount		Ceded to other companies		Assumed from other companies		Net amount		Percentage of amount assumed to net
2006
Life insurance in force	$	151,109.9	$	58,189.8	$	7.9	$	92,928.0	0.0%

Premiums:
Life insurance ¹	$	336.4	$	28.4	$	0.3	$	308.3	0.1%
Accident and health insurance		388.9		417.4		28.5		—	N/A

Total	$	725.3	$	445.8	$	28.8	$	308.3	9.3%

2005
Life insurance in force	$	142,308.1	$	52,339.1	$	10.6	$	89,979.6	0.0%

Premiums:
Life insurance ¹	$	311.5	$	51.8	$	0.3	$	260.0	0.1%
Accident and health insurance		415.2		445.1		29.9		—	N/A

Total	$	726.7	$	496.9	$	30.2	$	260.0	11.6%

2004
Life insurance in force	$	123,756.6	$	46,866.2	$	10.2	$	76,900.6	0.0%

Premiums:
Life insurance ¹	$	300.7	$	30.6	$	0.3	$	270.4	0.1%
Accident and health insurance		312.7		345.1		32.4		—	N/A

Total	$	613.4	$	375.7	$	32.7	$	270.4	12.1%

¹	Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment products and universal life insurance products.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule V Valuation and Qualifying Accounts

Years ended December 31, 2006, 2005 and 2004 (in millions)


Column A	Column B		Column C				Column D		Column E
Description	Balance at beginning of period		Charged (credited) to costs and expenses		Charged to other accounts		Deductions¹		Balance at end of period
2006
Valuation allowances - mortgage loans on real estate	$	31.1	$	6.0	$	—	$	2.8	$	34.3

2005
Valuation allowances - mortgage loans on real estate	$	33.3	$	1.6	$	—	$	3.8	$	31.1

2004
Valuation allowances - mortgage loans on real estate	$	29.1	$	7.5	$	—	$	3.3	$	33.3

¹	Amounts represent transfers to real estate owned and recoveries.

PART C. OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a)	Financial Statements:

Nationwide Variable Account-II:

Report of Independent Registered Public Accounting Firm.

Statement of Assets, Liabilities and Contract

Owners' Equity as of December 31, 2006.

Statements of Operations for the year

ended December 31, 2006.

Statements of Changes in Contract

Owners' Equity for the years

ended December 31, 2006 and 2005.

Notes to Financial Statements.

Nationwide Life Insurance Company and subsidiaries:

Report of Independent Registered Public Accounting Firm.

Consolidated Balance Sheets as of December

31, 2006 and 2005.

Consolidated Statements of Income for the

years ended December 31, 2006, 2005 and

2004.

Consolidated Statements of Shareholder's

Equity for the years ended December 31,

2006, 2005 and 2004.

Consolidated Statements of Cash Flows for

the years ended December 31, 2006, 2005

and 2004.

Notes to Consolidated Financial Statements.

Financial Statement Schedules

Item 24. (b) Exhibits

(1)

Resolution of the Depositor's Board of Directors authorizing the establishment of the Registrant – Filed previously with Registration Statement (SEC File no. 2-75059) and hereby incorporated by reference.

(2)

Not Applicable

(3)

Underwriting or Distribution of Contracts between the Depositor and NISC as Principal Underwriter – Filed previously with Registration Statement (SEC File No. 2-75059) and hereby incorporated by reference.

(4)

The form of the variable annuity contract – Filed previously with Registration Statement (SEC File No. 333-104513) and hereby incorporated by reference.

(5)

Variable Annuity Application – Filed previously with Registration Statement (SEC File No. 333-104513) and hereby incorporated by reference.

(6)

Articles of Incorporation of Depositor – Filed previously with Registration Statement (SEC File No. 2-75059) and hereby incorporated by reference.

(7)

Not Applicable.

(8)

Fund Participation Agreements. The following fund participation agreements were filed previously on July 17, 2007, with Pre-Effective Amendment No. 1 (File No. 333-140608) as exhibit 26(h) and hereby incorporated by reference:

Fund Participation Agreement with AIM Variable Insurance Funds, AIM Advisors, Inc., and AIM Distributors dated January 6, 2003.

Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended.

Restated and Amended Fund Participation Agreement with The Dreyfus Corporation dated January 27, 2000, as amended.

Fund Participation Agreement with Federated Insurance Series and Federated Securities Corp. dated April 1, 2006, as amended.

Fund Participation Agreement with Fidelity Variable Insurance Products Fund dated May 1, 1988, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V.

Fund Participation Agreement with Fidelity Variable Insurance Products Fund II dated July 15, 1989, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V.

Fund Participation Agreement with Fidelity Variable Insurance Products Fund III dated November 22, 1994, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V.

Amended and Restated Fund Participation Agreement with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc. dated May 1, 2003; as amended.

9)(a)

Fund Participation Agreement, Service and Institutional Shares, with Janus Aspen Series, dated December 31, 1999.

9)(b)

Fund Participation Agreement, Service II Shares, with Janus Aspen Series, dated May 5, 2002.

10)

Amended and Restated Fund Participation Agreement with MFSÒ Variable Insurance Trust and Massachusetts Financial Services Company dated February 1, 2003 as amended.

11)(a)

Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated May 2, 2005, as amended.

11)(b)

Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust), American Funds Insurance Series, and Capital Research and Management Company dated May 1, 2006.

12)

Fund Participation Agreement with Neuberger Berman Advisers Management Trust / Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust) dated January 1, 2006.

13)

Fund Participation Agreement with Oppenheimer Variable Account Funds and Oppenheimer Funds, Inc. dated April 13, 2007.

14)

Fund Participation Agreement with T. Rowe Price Equity Series, Inc., T. Rowe Price International Series, Inc., T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price Investment Services, Inc. dated October 1, 2002, as amended.

15)

Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley Distribution, Inc., and Morgan Stanley Investment Management, Inc. dated February 1, 2002, as amended.

(9)

Opinion of Counsel – Filed previously with Registration statement (SEC File No. 333-104513) and hereby incorporated by reference.

(10)

Consent of Independent Registered Public Accounting Firm – Attached hereto.

(11)

Not Applicable

(12)

Not Applicable

(99)

Power of Attorney – Attached hereto.

Item 25.

Directors and Officers of the Depositor

Chairman of the Board and Director	Arden L. Shisler
Chief Executive Officer and Director	W. G. Jurgensen
President and Chief Operating Officer	Mark R. Thresher
Executive Vice President and Chief Legal and Governance Officer	Patricia R. Hatler
Executive Vice President-Chief Administrative Officer	Terri L. Hill
Executive Vice President-Chief Information Officer	Michael C. Keller
Executive Vice President-Chief Marketing Officer	James R. Lyski
Executive Vice President-Financial, Investments and Strategy	Robert A. Rosholt
Senior Vice President and Treasurer	Harry H. Hallowell
Senior Vice President-Chief Compliance Officer	Carol Baldwin Moody
Senior Vice President-Chief Financial Officer	Timothy G. Frommeyer
Senior Vice President-Chief Investment Officer	Gail G. Snyder
Senior Vice President-CIO Strategic Investments	Gary I. Siroko
Senior Vice President-Corporate Relations	Gregory S. Lashutka
Senior Vice President-Corporate Strategy	J. Stephen Baine
Senior Vice President-Division General Counsel	Thomas W. Dietrich
Senior Vice President-Enterprise Chief Risk Officer	Brian W. Nocco
Senior Vice President-Health and Productivity	Holly R. Snyder
Senior Vice President-In Retirement Business Head	Keith I. Millner
Senior Vice President-Individual Protection Business Head	Peter A. Golato
Senior Vice President-Information Technology	Srinivas Koushik
Senior Vice President-Internal Audits	Kelly A. Hamilton
Senior Vice President-NF Marketing	Gordon E. Hecker
Senior Vice President-NF Systems	R. Dennis Noice
Senior Vice President-Non-Affiliated Sales	John Laughlin Carter
Senior Vice President-NW Retirement Plans	William S. Jackson
Senior Vice President-President - Nationwide Bank	Anne L. Arvia
Senior Vice President-Property and Casualty Claims	David R. Jahn
Senior Vice President-Property and Casualty Commercial/Farm Product Pricing	W. Kim Austen
Senior Vice President-Property and Casualty Commercial/Farm Product Pricing	James R. Burke
Senior Vice President-Property and Casualty Human Resources	Gale V. King
Senior Vice President-Property and Casualty Personal Lines Product Pricing	J. Lynn Greenstein
Vice President-Assistant to the CEO and Secretary	Thomas E. Barnes
Director	Joseph A. Alutto
Director	James G. Brocksmith, Jr.
Director	Keith W. Eckel
Director	Lydia M. Marshall
Director	Donald L. McWhorter
Director	David O. Miller
Director	Martha Miller de Lombera
Director	James F. Patterson
Director	Gerald D. Prothro
Director	Alex Shumate

The business address of the Directors and Officers of the Depositor is:

One Nationwide Plaza, Columbus, Ohio 43215

Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant.

	*	Subsidiaries for which separate financial statements are filed
	**	Subsidiaries included in the respective consolidated financial statements
	*******	Subsidiaries included in the respective group financial statements filed for unconsolidated subsidiaries
	********	Other subsidiaries

COMPANY			STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
1717 Advisory Services, Inc.			Pennsylvania		The company was formerly registered as an investment advisor and is currently inactive.
1717 Brokerage Services, Inc.			Pennsylvania		The company is a multi-state licensed insurance agency.
1717 Capital Management Company*			Pennsylvania		The company is registered as a broker-dealer and investment advisor.
1717 Insurance Agency of Massachusetts, Inc.			Massachusetts		The company is established to grant proper licensing to the Nationwide Life Insurance Company of America affiliates in Massachusetts.
1717 Insurance Agency of Texas, Inc.			Texas		The company is established to grant proper licensing to the Nationwide Life Insurance Company of America affiliates in Texas.
AGMC Reinsurance, Ltd.			Turks & Caicos Islands		The company is in the business of reinsurance of mortgage guaranty risks.
AID Finance Services, Inc.			Iowa		The company operates as a holding company.
ALLIED General Agency Company			Iowa		The company acts as a general agent and surplus lines broker for property and casualty insurance products.
ALLIED Group, Inc.			Iowa		The company is a property and casualty insurance holding company.
ALLIED Property and Casualty Insurance Company			Iowa		The company underwrites general property and casualty insurance.
ALLIED Texas Agency, Inc.			Texas		The company acts as a managing general agent to place personal and commercial automobile insurance with Colonial County Mutual Insurance Company for the independent agency companies.
Allnations, Inc.			Ohio		The company engages in promoting, extending, and strengthening cooperative insurance organizations throughout the world.
AMCO Insurance Company			Iowa		The company underwrites general property and casualty insurance.
American Marine Underwriters, Inc.			Florida		The company is an underwriting manager for ocean cargo and hull insurance.
Atlantic Floridian Insurance Company (f.k.a Nationwide Atlantic Insurance Company)			Ohio		The company writes personal lines residential property insurance in the State of Florida.
Audenstar Limited			England and Wales		The company is an investment holding company.
BlueSpark, LLC			Ohio		The company is currently inactive.
Cal-Ag Insurance Services, Inc.			California		The company is an insurance agency.
CalFarm Insurance Agency			California		The company is an insurance agency.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Colonial County Mutual Insurance Company*	Texas		The company underwrites non-standard automobile and motorcycle insurance and other various commercial liability coverages in Texas.
Corviant Corporation	Delaware		The purpose of the company is to create a captive distribution network through which affiliates can sell multi-manager investment products, insurance products and sophisticated estate planning services.
Crestbrook Insurance Company* (f.k.a. CalFarm Insurance Company)	Ohio		The company is an Ohio-based multi-line insurance corporation that is authorized to write personal, automobile, homeowners and commercial insurance.
Depositors Insurance Company	Iowa		The company underwrites general property and casualty insurance.
DVM Insurance Agency, Inc.	California		This company places pet insurance business not written by Veterinary Pet Insurance Company outside of California with National Casualty Company.
F&B, Inc.	Iowa		The company is an insurance agency that places business with carriers other than Farmland Mutual Insurance Company and its affiliates.
Farmland Mutual Insurance Company	Iowa		The company provides property and casualty insurance primarily to agricultural businesses.
Financial Settlement Services Agency, Inc.	Ohio		The company is an insurance agency in the business of selling structured settlement products.
FutureHealth Corporation	Maryland		The company is a wholly-owned subsidiary of FutureHealth Holding Company, which provides population health management.
FutureHealth Holding Company	Maryland		The company provides population health management.
FutureHealth Technologies Corporation	Maryland		The company is a wholly-owned subsidiary of FutureHealth Holding Company, which provides population health management.
Gartmore Distribution Services, Inc.*	Delaware		The company is a limited purpose broker-dealer.
Gartmore Investor Services, Inc.	Ohio		The company provides transfer and dividend disbursing agent services to various mutual fund entities.
Gartmore Morley Capital Management, Inc.	Oregon		The company is an investment advisor and stable value money manager.
Gartmore Mutual Fund Capital Trust	Delaware		The trust acts as a registered investment advisor.
Gartmore S.A. Capital Trust	Delaware		The trust acts as a registered investment advisor.
Gates, McDonald & Company	Ohio		The company provides services to employers for managing workers' compensation matters and employee benefits costs.
Gates, McDonald & Company of New York, Inc.	New York		The company provides workers' compensation and self-insured claims administration services to employers with exposure in New York.
GatesMcDonald DTAO, LLC	Ohio		The company provides disability tax reporting services.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
GatesMcDonald DTNHP, LLC	Ohio		The company provides disability tax reporting services.
GatesMcDonald DTC, LLC	Ohio		The company provides disability tax reporting services.
GatesMcDonald Health Plus Inc.*	Ohio		The company provides medical management and cost containment services to employers.
GVH Participacoes e Empreedimientos Ltda.	Brazil		The company acts as a holding company.
Insurance Intermediaries, Inc.	Ohio		The company is an insurance agency and provides commercial property and casualty brokerage services.
Life REO Holdings, LLC	Ohio		The company serves as a holding company for foreclosure entities.
Lone Star General Agency, Inc.	Texas		The company acts as general agent to market automobile and motorcycle insurance for Colonial County Mutual Insurance Company.
Morely & Associates, Inc. (f.k.a. Gartmore Morley & Associates, Inc.)	Oregon		The company brokers or places book-value maintenance agreements (wrap contracts) and guarantee investment contracts for collective investment trusts and accounts.
Morley Financial Services, Inc. (f.k.a. Gartmore Morley Financial Services, Inc.)	Oregon		The company is a holding company.
Mullen TBG Insurance Agency Services, LLC	Delaware		The company is a joint venture between TBG Insurance Services Corporation and MC Insurance Agency Services LLC. The Company provides financial products and services to executive plan participants.
National Casualty Company	Wisconsin		The company underwrites various property and casualty coverage, as well as individual and group accident and health insurance.
National Casualty Company of America, Ltd.	England		This is a limited liability company organized for profit under the Companies Act of 1948 of England for the purpose of carrying on the business of insurance, reinsurance, indemnity, and guarantee of various kinds. This company is currently inactive.
Nationwide Advantage Mortgage Company*	Iowa		The company makes residential mortgage loans.
Nationwide Affinity Insurance Company of America*	Ohio		The company provides property and casualty insurance products.
Nationwide Agribusiness Insurance Company	Iowa		The company provides property and casualty insurance primarily to agricultural businesses.
Nationwide Arena, LLC*	Ohio		The purpose of the company is to develop Nationwide Arena and to engage in related development activity.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Nationwide Asset Management Holdings	England and Wales		The company operates as a holding company.
Nationwide Global Asset Management, Inc. (f.k.a. Gartmore Global Asset Management , Inc.)	Delaware		The company operates as a holding company.
Nationwide Assurance Company	Wisconsin		The company underwrites non-standard automobile and motorcycle insurance.
Nationwide Bank			This is a federal savings bank charted by the Office of Thrift Supervision in the United States Department of Treasury to exercise deposit, lending agency custody and fiduciary powers and to engage in activities permissible for federal savings banks under the Home Owners’ Loan act of 1933.
Nationwide Better Health, Inc.	Ohio		The company is a holding company for the health and productivity operations of Nationwide.
Nationwide Cash Management Company*	Ohio		The company buys and sells investment securities of a short-term nature as the agent for other Nationwide corporations, foundations, and insurance company separate accounts.
Nationwide Community Development Corporation, LLC	Ohio		The company holds investments in low-income housing funds.
Nationwide Corporation	Ohio		The company acts primarily as a holding company for entities affiliated with Nationwide Mutual Insurance Company and Nationwide Mutual Fire Insurance Company.
Nationwide Document Solutions, Inc. (f.k.a. ALLIED Document Solutions, Inc.)	Iowa		The company provides general printing services to its affiliated companies as well as to certain unaffiliated companies.
Nationwide Emerging Managers, LLC (f.k.a. Gartmore Emerging Managers, LLC)	Delaware		The company acquires and holds interests in registered investment advisors and provides investment management services.
Nationwide Exclusive Agent Risk Purchasing Group, LLC	Ohio		The company's purpose is to provide a mechanism for the purchase of group liability insurance for insurance agents operating nationwide.
Nationwide Financial Assignment Company	Ohio		The company is an administrator of structured settlements.
Nationwide Financial Institution Distributors Agency, Inc.	Delaware		The company is an insurance agency.
Nationwide Financial Institution Distributors Insurance Agency, Inc. of Massachusetts	Massachusetts		The company is an insurance agency.
Nationwide Financial Institution Distributors Insurance Agency, Inc. of New Mexico	New Mexico		The company is an insurance agency.
Nationwide Financial Services Capital Trust	Delaware		The trust's sole purpose is to issue and sell certain securities representing individual beneficial interests in the assets of the trust.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Nationwide Financial Services, Inc.*	Delaware		The company acts primarily as a holding company for companies within the Nationwide organization that offer or distribute long-term savings and retirement products.
Nationwide Financial Sp. Zo.o	Poland		The company is currently inactive.
Nationwide Financial Structured Products, LLC	Ohio		The company captures and reports the results of the structured products business unit.
Nationwide Foundation*	Ohio		The company contributes to non-profit activities and projects.
Nationwide General Insurance Company	Ohio		The company transacts a general insurance business, except life insurance, and primarily provides automobile and fire insurance to select customers.
Nationwide Global Finance, LLC	Ohio		The company acts as a support company for Nationwide Global Holdings, Inc. in its international capitalization efforts.
Nationwide Global Funds	Luxembourg		This company issues shares of mutual funds.
Nationwide Global Holdings, Inc.	Ohio		The company is a holding company for the international operations of Nationwide.
Nationwide Global Ventures, Inc. (f.k.a. Gartmore Global Ventures, Inc.)	Delaware		The company acts as a holding company.
Nationwide Indemnity Company*	Ohio		The company is involved in the reinsurance business by assuming business from Nationwide Mutual Insurance Company and other insurers within the Nationwide Insurance organization.
Nationwide Insurance Company of America	Wisconsin		The company underwrites general property and casualty insurance.
Nationwide Insurance Company of Florida*	Ohio		The company transacts general insurance business except life insurance.
Nationwide International Underwriters	California		The company is a special risk, excess and surplus lines underwriting manager.
Nationwide Investment Advisors, LLC	Ohio		The company provides investment advisory services.
Nationwide Investment Services Corporation**	Oklahoma		This is a limited purpose broker-dealer and acts as an investment advisor.
Nationwide Life and Annuity Company of America**	Delaware		The company provides individual life insurance products.
Nationwide Life and Annuity Insurance Company**	Ohio		The company engages in underwriting life insurance and granting, purchasing, and disposing of annuities.
Nationwide Life Insurance Company*	Ohio		The company provides individual life insurance, group life and health insurance, fixed and variable annuity products, and other life insurance products.
Nationwide Life Insurance Company of America*	Pennsylvania		The company provides individual life insurance and group annuity products.
Nationwide Life Insurance Company of Delaware*	Delaware		The company insures against personal injury, disability or death resulting from traveling, sickness or other general accidents, and every type of insurance appertaining thereto.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Nationwide Lloyds	Texas		The company markets commercial and residential property insurance in Texas.
Nationwide Management Systems, Inc.	Ohio		The company offers a preferred provider organization and other related products and services.
Nationwide Mutual Capital, LLC	Ohio		The company acts as a private equity fund investing in companies for investment purposes and to create strategic opportunities for Nationwide.
Nationwide Mutual Capital I, LLC*	Delaware		The business of the company is to achieve long term capital appreciation through a portfolio of primarily domestic equity investments in financial service and related companies.
Nationwide Mutual Fire Insurance Company	Ohio		The company engages in a general insurance and reinsurance business, except life insurance.
Nationwide Mutual Insurance Company*	Ohio		The company engages in a general insurance and reinsurance business, except life insurance.
Nationwide Private Equity Fund, LLC	Ohio		The company invests in private equity funds.
Nationwide Properties, Ltd.	Ohio		The company is engaged in the business of developing, owning and operating real estate and real estate investments.
Nationwide Property and Casualty Insurance Company	Ohio		The company engages in a general insurance business, except life insurance.
Nationwide Property Protection Services, LLC	Ohio		The company provides alarm systems and security guard services.
Nationwide Provident Holding Company*	Pennsylvania		The company is a holding company for non-insurance subsidiaries.
Nationwide Realty Investors, Ltd.*	Ohio		The company is engaged in the business of developing, owning and operating real estate and real estate investment.
Nationwide Retirement Solutions, Inc.*	Delaware		The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions, Inc. of Arizona	Arizona		The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions, Inc. of Ohio	Ohio		The company provides retirement products, marketing and education and administration to public employees.
Nationwide Retirement Solutions, Inc. of Texas	Texas		The company markets and administers deferred compensation plans for public employees.
Nationwide Retirement Solutions, Insurance Agency, Inc.	Massachusetts		The company markets and administers deferred compensation plans for public employees.
Nationwide Sales Solutions, Inc.	Iowa		The company engages in direct marketing of property and casualty insurance products.
Nationwide Securities, Inc.*	Ohio		The company is a registered broker-dealer and provides investment management and administrative services.
Nationwide Separate Accounts, LLC (f.k.a. Gartmore Separate Accounts, LLC)	Delaware		The company acts as a registered investment advisor.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Nationwide Services Company, LLC	Ohio		The company performs shared services functions for the Nationwide organization.
Nationwide Services For You, LLC	Ohio		The company provides consumer services that are related to the business of insurance, including services that help consumers prevent losses and mitigate risks.
Nationwide Services Sp. Zo.o.	Poland		The company is currently inactive.
Newhouse Capital Partners, LLC	Delaware		The company invests in financial services companies that specialize in e-commerce and promote distribution of financial services.
Newhouse Capital Partners II, LLC	Delaware		The company invests in financial services companies that specialize in e-commerce and promote distribution of financial services.
Newhouse Special Situations Fund I, LLC	Delaware		The company owns and manages contributed securities in order to achieve long-term capital appreciation from the contributed securities and through investments in a portfolio of other equity investments in financial service and other related companies.
NF Reinsurance Ltd.*	Bermuda		The company serves as a captive reinsurer for Nationwide Life Insurance Company’s universal life, term life and annuity business.
NFS Distributors, Inc.	Delaware		The company acts primarily as a holding company for Nationwide Financial Services, Inc.'s distribution companies.
NGH UK, Ltd.*	United Kingdom		The company is currently inactive.
NMC CPC WT Investment, LLC	Delaware		The business of the company is to hold and exercise rights in a specific private equity investment.
NorthPointe Capital LLC	Delaware		The company acts as a registered investment advisor.
NWD Investment Management, Inc. (f.k.a. Gartmore Global Investments, Inc.)	Delaware		The company acts as a holding company and provides other business services for the NWD Investments group of companies.
NWD Management & Research Trust (f.k.a. Gartmore Global Asset Management Trust)	Delaware		The company acts as a holding company for the NWD Investments group of companies and as a registered investment advisor.
NWD MGT, LLC (f.k.a. GGI MGT LLC)	Delaware		The company is a passive investment holder in Newhouse Special Situations Fund I, LLC for the purpose of allocation of earnings to the NWD Investments management team as it relates to the ownership and management of Newhouse Special Situations Fund I, LLC.
Pension Associates, Inc.	Wisconsin		The company provides pension plan administration and record keeping services, and pension plan and compensation consulting.
Premier Agency, Inc.	Iowa		This company is an insurance agency.
Provestco, Inc.	Delaware		The company serves as a general partner in certain real estate limited partnerships invested in by Nationwide Life Insurance Company of America.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
Quick Sure Auto Agency, Inc.	Texas		The company is an insurance agency and operates as an employee agent "storefront" for Titan Insurance Services.
RCMD Financial Services, Inc.	Delaware		The company is a holding company.
Registered Investment Advisors Services, Inc.	Texas		The company facilitates third-party money management services for plan providers.
Retention Alternatives, Ltd.*	Bermuda		The company is a captive insurer and writes first dollar insurance policies in workers’ compensation, general liability and automobile liability for its affiliates in the United States.
Riverview Alternative Investment Advisors, LLC (f.k.a. Gartmore Riverview, LLC)	Delaware		The company provides investment management services to a limited number of institutional investors.
Riverview Alternative Investment Advisors II LLC (f.k.a. Gartmore riverview II, LLC)	Delaware		The company is a holding company.
Riverview International Group, Inc.	Delaware		The company is a holding company.
RP&C International, Inc.	Ohio		The company is an investment-banking firm that provides specialist advisory services and innovative financial solutions to public and private companies internationally.
Scottsdale Indemnity Company	Ohio		The company is engaged in a general insurance business, except life insurance.
Scottsdale Insurance Company	Ohio		The company primarily provides excess and surplus lines of property and casualty insurance.
Scottsdale Surplus Lines Insurance Company	Arizona		The company provides excess and surplus lines coverage on a non-admitted basis.
TBG Advisory Services Corporation (d.b.a. TBG Advisors)	California		The company is an investment advisor.
TBG Aviation, LLC	California		The company holds an investment in a leased airplane and maintains an operating agreement with Flight Options.
TBG Danco Insurance Services Corporation	California		The corporation provides life insurance and individual executive estate planning.
TBG Financial & Insurance Services Corporation*	California		The company consults with corporate clients and financial institutions on the development and implementation of proprietary and/or private placement insurance products for the financing of executive benefit programs and individual executive's estate planning requirements. As a broker dealer, TBG Financial & Insurance Services Corporation provides access to institutional insurance investment products.
TBG Financial & Insurance Services Corporation of Hawaii	Hawaii		The corporation consults with corporate clients and financial institutions on the development and implementation of proprietary, private placement and institutional insurance products.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
TBG Insurance Services Corporation*	Delaware		The company markets and administers executive benefit plans.
THI Holdings (Delaware), Inc.*	Delaware		The company acts as a holding company for subsidiaries of the Nationwide group of companies.
Titan Auto Agency, Inc. (d.b.a. Arlans Agency)	Michigan		The company is an insurance agency that primarily sells non-standard automobile insurance for Titan Insurance Company in Michigan.
Titan Auto Insurance of New Mexico, Inc.	New Mexico		The company is an insurance agency that operates employee agent storefronts.
Titan Holdings Service Corporation	Texas		The company is currently inactive.
Titan Indemnity Company	Texas		The company is a multi-line insurance company and is operating primarily as a property and casualty insurance company.
Titan Insurance Company	Michigan		This is a property and casualty insurance company.
Titan Insurance Services, Inc.	Texas		The company is a Texas grandfathered managing general agency.
Titan National Auto Call Center, Inc.	Texas		The company is licensed as an insurance agency that operates as an employee agent "call center" for Titan Indemnity Company.
Union Bond & Trust Company (f.k.a. Gartmore Trust Company)	Oregon		The company is an Oregon state bank with trust powers.
Veterinary Pet Insurance Company*	California		The company provides pet insurance.
Victoria Automobile Insurance Company	Indiana		The company is a property and casualty insurance company.
Victoria Financial Corporation	Delaware		The company acts as a holding company specifically for holding insurance companies of Victoria group of companies.
Victoria Fire & Casualty Company	Ohio		The company is a property and casualty insurance company.
Victoria Insurance Agency, Inc.	Ohio		The company is an insurance agency that acts as a broker for independent agents appointed with the Victoria companies in the State of Ohio.
Victoria National Insurance Company	Ohio		The company is a property and casualty insurance company.
Victoria Select Insurance Company	Ohio		The company is a property and casualty insurance company.
Victoria Specialty Insurance Company	Ohio		The company is a property and casualty insurance company.
Vida Seguradora SA	Brazil		The company operates as a licensed insurance company in the categories of life and unrestricted private pension plan in Brazil.

COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
VPI Services, Inc.	California		The company operates as a nationwide pet registry service for holders of Veterinary Pet Insurance Company policies, including pet indemnification and a lost pet recovery program.
Washington Square Administrative Services, Inc.	Pennsylvania		The company provides administrative services to Nationwide Life and Annuity Company of America.
Western Heritage Insurance Company	Arizona		The company underwrites excess and surplus lines of property and casualty insurance.
Whitehall Holdings, Inc.	Texas		The company acts as a holding company for the Titan group of agencies.
W.I. of Florida (d.b.a. Titan Auto Insurance)	Florida		The company is an insurance agency and operates as an employee agent storefront for Titan Indemnity Company in Florida.

	COMPANY	STATE/COUNTRY OF ORGANIZATION	NO. VOTING SECURITIES (see attached chart unless otherwise indicated)	PRINCIPAL BUSINESS
*	MFS Variable Account	Ohio		Issuer of Annuity Contracts
*	Nationwide Multi-Flex Variable Account	Ohio		Issuer of Annuity Contracts
*	Nationwide VA Separate Account-A	Ohio		Issuer of Annuity Contracts
*	Nationwide VA Separate Account-B	Ohio		Issuer of Annuity Contracts
*	Nationwide VA Separate Account-C	Ohio		Issuer of Annuity Contracts
*	Nationwide VA Separate Account-D	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-II	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-3	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-4	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-5	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-6	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-7	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-8	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-9	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-10	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-11	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-12	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-13	Ohio		Issuer of Annuity Contracts
*	Nationwide Variable Account-14	Ohio		Issuer of Annuity Contracts
	Nationwide Variable Account-15	Ohio		Issuer of Annuity Contracts
	Nationwide Variable Account-16	Ohio		Issuer of Annuity Contracts
	Nationwide Variable Account-17	Ohio		Issuer of Annuity Contracts
*	Nationwide Provident VA Separate Account 1	Pennsylvania		Issuer of Annuity Contracts
*	Nationwide Provident VA Separate Account A	Delaware		Issuer of Annuity Contracts
	Nationwide VL Separate Account-A	Ohio		Issuer of Life Insurance Policies
	Nationwide VL Separate Account-B	Ohio		Issuer of Life Insurance Policies
*	Nationwide VL Separate Account-C	Ohio		Issuer of Life Insurance Policies
*	Nationwide VL Separate Account-D	Ohio		Issuer of Life Insurance Policies
*	Nationwide VL Separate Account-G	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-2	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-3	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-4	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-5	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-6	Ohio		Issuer of Life Insurance Policies
*	Nationwide VLI Separate Account-7	Ohio		Issuer of Life Insurance Policies
*	Nationwide Provident VLI Separate Account 1	Pennsylvania		Issuer of Life Insurance Policies
*	Nationwide Provident VLI Separate Account A	Delaware		Issuer of Life Insurance Policies

Item 27. Number of Contract Owners

The number of Contract Owners of Qualified and Non-Qualified Contracts as of January 31, 2007 was 606 and 972 respectively.

Item 28. Indemnification

Provision is made in Nationwide's Amended and Restated Code of Regulations and expressly authorized by the General Corporation Law of the State of Ohio, for indemnification by Nationwide of any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative by reason of the fact that such person is or was a director, officer or employee of Nationwide, against expenses, including attorneys fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, to the extent and under the circumstances permitted by the General Corporation Law of the State of Ohio.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers or persons controlling Nationwide pursuant to the foregoing provisions, Nationwide has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 29. Principal Underwriter

(a)	Nationwide Investment Services Corporation ("NISC") serves as principal underwriter and general distributor for the following separate investment accounts of Nationwide or its affiliates:

Multi-Flex Variable Account	Nationwide VL Separate Account-C
Nationwide Variable Account	Nationwide VL Separate Account-D
Nationwide Variable Account-II	Nationwide VL Separate Account-G
Nationwide Variable Account-4	Nationwide VLI Separate Account-2
Nationwide Variable Account-5	Nationwide VLI Separate Account-3
Nationwide Variable Account-6	Nationwide VLI Separate Account-4
Nationwide Variable Account-7	Nationwide VLI Separate Account-6
Nationwide Variable Account-8	Nationwide VLI Separate Account-7
Nationwide Variable Account-9
Nationwide Variable Account-10
Nationwide Variable Account-11
Nationwide Variable Account-13
Nationwide Variable Account-14
Nationwide VA Separate Account-A
Nationwide VA Separate Account-B
Nationwide VA Separate Account-C

(b)	Directors and Officers of NISC:

President	Keith J. Kelly
Senior Vice President, Treasurer and Director	James D. Benson.
Vice President	Karen R. Colvin
Vice President	Scott A. Englehart
Vice President	Charles E. Riley
Vice President	Trey Rouse
Vice President and Assistant Secretary	Thomas E. Barnes
Vice President-Chief Compliance Officer	James J. Rabenstine
Associate Vice President and Secretary	Glenn W. Soden
Assistant Treasurer	Terry C. Smetzer
Director	John Laughlin Carter
Director	Keith I. Millner

The business address of the Directors and Officers of Nationwide Investment Services Corporation is:

One Nationwide Plaza, Columbus, Ohio 43215

(c)

Name of Principal Underwriter	Net Underwriting Discounts and Commissions	Compensation on Redemption or Annuitization	Brokerage Commissions	Compensation
Nationwide Investment Services Corporation	N/A	N/A	N/A	N/A

Item 30. Location of Accounts and Records

Timothy G. Frommeyer

Nationwide Life Insurance Company

One Nationwide Plaza

Columbus, OH 43215

Item 31. Management Services

Not Applicable

Item 32. Undertakings

The Registrant hereby undertakes to:

(a)

file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as payments under the variable annuity contracts may be accepted;

(b)

include either (1) as part of any application to purchase a contract offered by the prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a post card or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and

(c)

deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.

The Registrant represents that any of the contracts which are issued pursuant to Section 403(b) of the Internal Revenue Code, are issued by Nationwide through the Registrant in reliance upon, and in compliance with, a no-action letter issued by the Staff of the Securities and Exchange Commission to the American Council of Life Insurance (publicly available November 28, 1988) permitting withdrawal restrictions to the extent necessary to comply with Section 403(b)(11) of the Internal Revenue Code.

Nationwide represents that the fees and charges deducted under the contract in the aggregate are reasonable in relation to the services rendered, the expenses expected to be incurred and risks assumed by Nationwide.

SIGNATURES

As required by the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, NATIONWIDE VARIABLE ACCOUNT-II, certifies that it meets the requirements of the Securities Act Rule 485(b) for effectiveness of the Registration Statement and has caused this Registration Statement to be signed on its behalf in the City of Columbus, and State of Ohio, on this 31st day of August, 2007.

NATIONWIDE VARIABLE ACCOUNT-II

(Registrant)

NATIONWIDE LIFE INSURANCE COMPANY

(Depositor)

By /s/ W. MICHAEL STOBART

W. Michael Stobart

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the 31st day of August, 2007.


W. G. JURGENSEN
W. G. Jurgensen, Director and Chief Executive Officer
ARDEN L. SHISLER
Arden L. Shisler, Chairman of the Board
JOSEPH A. ALUTTO
Joseph A. Alutto, Director
JAMES G. BROCKSMITH, JR.
James G. Brocksmith, Jr., Director
KEITH W. ECKEL
Keith W. Eckel, Director
LYDIA M. MARSHALL
Lydia M. Marshall, Director
DONALD L. MCWHORTER
Donald L. McWhorter, Director
MARTHA MILLER DE LOMBERA
Martha Miller de Lombera, Director
DAVID O. MILLER
David O. Miller, Director
JAMES F. PATTERSON
James F. Patterson, Director
GERALD D. PROTHRO
Gerald D. Prothro, Director
ALEX SHUMATE
Alex Shumate, Director
	By /s/ W. MICHAEL STOBART
	W. Michael Stobart
	Attorney-in-Fact