UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 File No. 333-182494

Pre-Effective Amendment No. 2 þ

Post-Effective Amendment No. o

and

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 File No. 811-03330

Amendment No. 454 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

Robert W. Horner, III, Vice President, Corporate Governance and Secretary, One Nationwide Plaza, Columbus, Ohio 43215

(Name and Address of Agent for Service)

Approximate Date of Proposed Public Offering As soon as possible after effective date

Title of Securities Being Registered Individual Flexible Premium Deferred Variable Annuity Contract

The Registrant hereby agrees to amend this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall therefore become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

Nationwide DestinationSM Architect (2.0)

Nationwide Life Insurance Company

Individual Flexible Premium Deferred Variable Annuity Contracts

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

The date of this prospectus is ________________, 2013.

This prospectus contains basic information you should understand about the contracts before investing.  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 advisors, investors are encouraged to compare and contrast the costs and benefits of the variable annuity described in this prospectus against those of other investment products, especially other variable annuity and variable life insurance products offered by Nationwide and its affiliates.  Nationwide offers a wide array of such products, many with different charges, benefit features and underlying investment options.  This process of comparison and analysis should aid in determining whether the purchase of the contract described in this prospectus is consistent with your investment objectives, risk tolerance, investment time horizon, marital status, tax situation and other personal characteristics and needs.

The Statement of Additional Information (dated ____________, 2013), which contains additional information about the contracts and the Variable Account, has been filed with the Securities and Exchange Commission ("SEC") and is incorporated herein by reference.  The table of contents for the Statement of Additional Information is on page 36 .

To obtain free copies of the Statement of Additional Information or to make any other service requests, please contact Nationwide by one of the methods described in the "Contacting the Service Center" provision on page 11.

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

These securities have not been approved or disapproved by the SEC, nor has the SEC passed upon the accuracy or adequacy of the prospectus.  Any representation to the contrary is a criminal offense.

The Sub-Accounts available under this contract invest in underlying mutual funds of the portfolio companies listed below.

·   AllianceBernstein Variable Products Series Fund, Inc.

·   American Century Variable Portfolios II, Inc.

·   American Century Variable Portfolios, Inc.

·   American Funds Insurance Series ®

·   BlackRock Variable Series Funds, Inc.

·   Delaware Variable Insurance Product Trust

·   Dreyfus Variable Investment Fund

·   Eaton Vance Variable Trust

·   Fidelity Variable Insurance Products Fund

·   Franklin Templeton Variable Insurance Products Trust

·   Goldman Sachs Variable Insurance Trust

·   Guggenheim Variable Fund

·   Huntington VA Funds

·   Invesco

·   Ivy Funds Variable Insurance Portfolios

·   Janus Aspen Series

·   Lazard Retirement Series, Inc.

·   MFS® Variable Insurance Trust

·   MFS® Variable Insurance Trust II

·   Nationwide Variable Insurance Trust

·   Oppenheimer Variable Account Funds

·   PIMCO Variable Insurance Trust

·   Royce Capital Funds

·   T. Rowe Price Equity Series, Inc.

·   The Universal Institutional Funds, Inc.

·   Van Eck VIP Trust

·   Wells Fargo Advantage Variable Trust

For a complete list of the available Sub-Accounts, refer to "Appendix A: Underlying Mutual Funds."  For more information on the underlying mutual funds, refer to the prospectus for the mutual fund.

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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.

Annuitant- The person(s) whose length of life determines how long annuity payments are paid.

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.

Co-Annuitant- The person designated by the Contract Owner to receive any benefit available under the Spousal Protection Feature.

Contract Anniversary- Each recurring one-year anniversary of the date the contract was issued.

Contract Owner(s)- The person(s) who owns all rights under the contract.  All references in this prospectus to "you" shall mean the Contract Owner.

Contract Value- The value of all Accumulation Units in a contract.

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

Current Income Benefit Base- For purposes of the Nationwide Lifetime Income Track option, it is equal to the Original Income Benefit Base adjusted throughout the life of the contract to account for subsequent purchase payments, early withdrawals, excess withdrawals, a Non-Lifetime Withdrawal if elected , and reset opportunities.  This amount is multiplied by the Lifetime Withdrawal Percentage to arrive at the Lifetime Withdrawal Amount for any given year.

Daily Net Assets- A figure that is calculated at the end of each Valuation Date and represents the sum of all the Contract Owners' interests in the variable Sub-Accounts after the deduction of contract and underlying mutual fund expenses.

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.

Lifetime Withdrawal- For purposes of the Nationwide Lifetime Income Track option, it is a withdrawal of all or a portion of the Lifetime Withdrawal Amount.

Lifetime Withdrawal Amount- The maximum amount that can be withdrawn between Nationwide Lifetime Income Track Anniversaries after the Withdrawal Start Date without reducing the Current Income Benefit Base.  It is calculated on each Nationwide Lifetime Income Track Anniversary (and adjusted between Nationwide Lifetime Income Track Anniversaries for subsequent purchase payments, excess withdrawals, and if elected, the Non-Lifetime Withdrawal) by multiplying the Current Income Benefit Base by the Lifetime Withdrawal Percentage.

Lifetime Withdrawal Percentage- A percentage used to determine the Lifetime Withdrawal Amount under the Nationwide Lifetime Income Track option.  The applicable percentage is multiplied by the Current Income Benefit Base to arrive at the Lifetime Withdrawal Amount for any given year.

Nationwide- Nationwide Life Insurance Company.  All references in this prospectus to "we" or "us" shall mean Nationwide.

Nationwide Lifetime Income Track Anniversary- Each recurring one-year anniversary of the date the Nationwide Lifetime Income Track option was elected.

Net Asset Value-The value of one share of an underlying mutual fund at the close of the New York Stock Exchange.

Non-Lifetime Withdrawal- For purposes of the Nationwide Lifetime Income Track option, a one-time only election to take a surrender from the contract that does not initiate the benefit under the option.

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.

Original Income Benefit Base- For purposes of the Nationwide Lifetime Income Track option, the initial benefit base calculated on the date the option is elected, which is equal to the Contract Value.

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 that 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.

Service Center- The department of Nationwide responsible for receiving service requests.  For service requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility.  For service requests communicated by telephone, the Service Center is Nationwide's operations processing facility.  

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Information on how to contact the Service Center is in the "Contacting the Service Center" provision.

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, each of which invests in a single underlying mutual fund.

Tax Sheltered Annuity- An annuity that qualifies for favorable tax treatment under Section 403(b) of the Internal Revenue Code.  Contracts issued pursuant to this prospectus cannot be issued as Tax Sheltered Annuities.

Valuation Date- Each day the New York Stock Exchange is open for business, or any other day during which there is a sufficient degree of trading of underlying mutual fund shares such that 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 pm EST.

Valuation Period- The period of time commencing at the close of a Valuation Date and ending at the close of the New York Stock Exchange for the next succeeding Valuation Date.

Variable Account- Nationwide Variable Account-II, a separate account that Nationwide established to hold Contract Owner assets allocated to variable investment options.  The Variable Account is divided into Sub-Accounts, each of which invests in shares of a separate underlying mutual fund.

Withdrawal Start Date- The date the Contract Owner reaches age 59½, or if the Joint Option is elected, the date the younger spouse reaches age 59½.

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Table of Contents	Page
Glossary of Special Terms	2
Contract Expenses	6
Underlying Mutual Fund Annual Expenses	6
Example	7
Synopsis of the Contracts	7
Surrenders/Withdrawals
Minimum Initial and Subsequent Purchase Payments
Dollar Limit Restrictions
Charges and Expenses
Annuity Payments
Taxation
Death Benefit
Right to Examine and Cancel
Condensed Financial Information	9
Financial Statements	10
Nationwide Life Insurance Company	10
Nationwide Investment Services Corporation	10
Investing in the Contract	10
The Variable Account and Underlying Mutual Funds
Contacting the Service Center	11
The Contract in General	11
Distribution, Promotional, and Sales Expenses
Underlying Mutual Fund Payments
Profitability
Contract Modification
Standard Charges and Deductions	13
Mortality and Expense Risk Charge
Administrative Charge
Premium Taxes
Short-Term Trading Fees
Optional Contract Benefits, Charges, and Deductions	14
One-Year Enhanced Death Benefit Option
Nationwide Lifetime Income Track
Joint Option for the Nationwide Lifetime Income Track
Income Benefit Investment Options
Ownership and Interests in the Contract	21
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	22
Pricing
Application and Allocation of Purchase Payments
Determining the Contract Value
Transfer Requests

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Table of Contents (continued)	Page
Transfer Restrictions
Transfers Prior to Annuitization
Transfers After Annuitization
Right to Examine and Cancel	25
Surrender/Withdrawal Prior to Annuitization	25
Partial Withdrawals
Full Surrenders
Surrender/Withdrawal After Annuitization	26
Assignment	26
Contract Owner Services	26
Asset Rebalancing
Dollar Cost Averaging
Systematic Withdrawals
Custom Portfolio Asset Rebalancing Service Static Asset Allocation Model
Death Benefits	28
Death of Contract Owner
Death of Annuitant
Death of Contract Owner/Annuitant
Death Benefit Payment
Impact of Ownership Changes and Assignment on the Death Benefits
Death Benefit Calculations
Spousal Protection Feature
Annuity Commencement Date	31
Annuitizing the Contract	31
Annuitization Date
Annuitization
Fixed Annuity Payments
Variable Annuity Payments
Frequency and Amount of Annuity Payments
Annuity Payment Options	32
Annuity Payment Options for Contracts with Total Purchase Payments and Contract Value Annuitized Less Than or Equal to $2,000,000
Annuity Payment Options for Contracts with Total Purchase Payments and/or Contract Value Annuitized Greater Than $2,000,000
Annuitization of Amounts Greater than $5,000,000
Statements and Reports	33
Legal Proceedings	34
Table of Contents of Statement of Additional Information	36
Appendix A: Underlying Mutual Funds	37
Appendix B: Condensed Financial Information	46
Appendix C: Contract Types and Tax Information	47

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Contract Expenses

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

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

Contract Owner Transaction Expenses
Maximum Premium Tax Charge (as a percentage of purchase payments)	5%1
Maximum Short-Term Trading Fee (as a percentage of transaction amount2)	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
Variable Account Annual Expenses (assessed as an annualized percentage of Daily Net Assets)
Mortality and Expense Risk Charge                                                                                                                                              Administrative Charge	0.20% 0.20%
One-Year Enhanced Death Benefit Option Charge                                                                                                                                              Total Variable Account Charges (including this option only)	0.20% 0.60%
Additional Optional Riders (assessed annually as a percentage of the Current Income Benefit Base3)
Maximum Nationwide Lifetime Income Track Charge	1.50%4
Maximum Joint Option for the Nationwide Lifetime Income Track Charge	0.40%5

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 (annualized rate, as a percentage of the Daily Net Assets)
Mortality and Expense Risk Charge (applicable to all contracts)	0.20%
Administrative Charge (applicable to all contracts)	0.20%
One-Year Enhanced Death Benefit Option Charge	0.20%
Maximum Nationwide Lifetime Income Track Charge	1.50%6
Maximum Joint Option for the Nationwide Lifetime Income Track Charge	0.40%6
Maximum Possible Total Variable Account Charges	2.50%7

Underlying Mutual Fund Annual Expenses

The next table provides the minimum and maximum total operating expenses, as of December 31, 201 2 , charged by the underlying mutual funds that you may pay periodically during the life of the contract.  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. 42 %	2.65%

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.

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1 Nationwide will charge between 0% and 5% of purchase payments for premium taxes levied by state or other government entities.  The amount assessed to the contract will equal the amount assessed by the state or government entity.

2 The transaction amount is the amount of the transfer determined to be engaged in short-term trading (see "Short-Term Trading Fees").

3 For information about how the Current Income Benefit Base is calculated, see "Determination of the Income Benefit Base Prior to the First Lifetime Withdrawal."

4 Currently, the charge associated with the Nationwide Lifetime Income Track option is equal to 0.80% of the Current Income Benefit Base.

5 The Joint Option for the Nationwide Lifetime Income Track option may only be elected if and when the Nationwide Lifetime Income Track option is elected.  Currently, the charge associated with the Joint Option for the Nationwide Lifetime Income Track option is equal to 0.15% of the Current Income Benefit Base.

6 This charge is a percentage of the Current Income Benefit Base. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

7The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets.  For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

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 following 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; and

·   the total Variable Account charges associated with the most expensive allowable combination of optional benefits (2.50%).1

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 annuitize your contract at the end of the applicable time period				If you do not surrender your contract
	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 (2.65%)	$541	$1,616	$2,682	$5,309	*	$1,616	$2,682	$5,309	$541		$1,616	$2,682	$5,309
Minimum Total Underlying Mutual Fund Operating Expenses (0. 42 %)	$307	$938	$1,593	$3,347	*	$938	$1,593	$3,347	$307		$938	$1,593	$3,347

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

1The total Variable Account charges associated with the most expensive allowable combination of optional benefits may be higher or lower depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets.  For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

Synopsis of the Contracts

The annuity described in this prospectus is intended to provide benefits to a single or joint owner and his/her beneficiaries.  The contracts described in this prospectus are individual 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"); and

·   Simple IRAs.

For more detailed information with regard to the differences in contract types, see "Appendix C: Contract Types and Tax Information."  Prospective purchasers may apply to purchase a contract through broker dealers that have entered into a selling agreement with Nationwide Investment Services Corporation.

Surrenders/Withdrawals

Contract Owners may generally withdraw some or all of their Contract Value at any time prior to annuitization by notifying the Service Center in writing (see "Surrender/Withdrawal Prior to Annuitization").  After the Annuitization Date, withdrawals are not permitted (see "Surrender/Withdrawal After Annuitization").

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Minimum Initial and Subsequent Purchase Payments

For all contract types the minimum initial purchase payment is $25,000.  A Contract Owner will meet the minimum initial purchase payment requirement by making purchase payments equal to $25,000 over the course of the first Contract Year.

The minimum subsequent purchase payment is $1,000.  However, for subsequent purchase payments sent via electronic deposit, the minimum subsequent purchase payment is $150.  Some states have different minimum initial and subsequent purchase payment amounts, and subsequent purchase payments may not be permitted in all states.  Contact the Service Center for information on purchase payments in a particular state.  In addition, the Nationwide Lifetime Income Track option may restrict the Contract Owner's ability to make subsequent purchase payments (see "Dollar Limit Restrictions").

Nationwide reserves the right to refuse any purchase payment that would result in the cumulative total for all contracts issued by Nationwide on the life of any one Annuitant or owned by any one Contract Owner to exceed $1,000,000.   Its decision as to whether or not to accept a purchase payment in excess of that amount will be based on one or more factors, including, but not limited to: age, spouse age (if applicable), Annuitant age, state of issue, total purchase payments, optional benefits elected, current market conditions, and current hedging costs.  All such decisions will be based on internally established actuarial guidelines and will be applied in a non-discriminatory manner.  In the event that we do not accept a purchase payment under these guidelines, we will immediately return the purchase payment in its entirety in the same manner as it was received.  If we accept the purchase payment, it will be applied to the contract immediately and will receive the next calculated Accumulation Unit value (see "Pricing").  Any references in this prospectus to purchase payment amounts in excess of $1,000,000 are assumed to have been approved by Nationwide.

Nationwide prohibits subsequent purchase payments made after death of the Contract Owner(s), the Annuitant, or Co-Annuitant. If upon notification of death of the Contract Owner(s), the Annuitant, or Co-Annuitant, it is determined that death occurred prior to a subsequent purchase payment being made, Nationwide reserves the right to return the purchase payment.

Dollar Limit Restrictions

In addition to the potential purchase payment restriction listed above, certain features of the contract have additional purchase payment and/or Contract Value limitations associated with them:

Annuitization.  Annuity payment options will be limited if the Contract Owner submits total purchase payments in excess of $2,000,000.  Furthermore, if the amount to be annuitized is greater than $5,000,000, we may limit both the amount that can be annuitized on a single life and the annuity payment options (see "Annuity Payment Options").

Death benefit calculations.  Purchase payments up to $3,000,000 will result in a higher death benefit payment than purchase payments in excess of $3,000,000 (see "Death Benefit Calculations").

Optional rider.  If the Contract Owner elects the Nationwide Lifetime Income Track option, subsequent purchase payments may be limited to an aggregate total of $50,000 per calendar year.

Charges and Expenses

Mortality and Expense Risk Charge

Nationwide deducts a Mortality and Expense Risk Charge equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  The Mortality and Expense Risk Charge compensates Nationwide for providing the insurance benefits under the contract, including the contract's standard death benefit that provides a guaranteed death benefit to the beneficiary(ies) even if the market declines.  It also compensates Nationwide for assuming the risk that Annuitants will live longer than assumed.  Finally, the Mortality and Expense Risk Charge compensates Nationwide for guaranteeing that charges will not increase regardless of actual expenses.  Nationwide may realize a profit from this charge.

Administrative Charge

Nationwide deducts an Administrative Charge equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  The Administrative Charge reimburses Nationwide for administrative costs it incurs resulting from 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.  Nationwide may realize a profit from this charge.

Death Benefit Option

The contract contains a standard death benefit (the greater of (i) the Contract Value or (ii) the total purchase payments less amounts withdrawn by the Contract Owner) at no additional charge.  In lieu of the standard death benefit, an applicant may elect the One-Year Enhanced Death Benefit Option at the time of application for an additional charge at the annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  The One-Year Enhanced Death Benefit Option is only available for contracts with Annuitants age 80 or younger at the time of application.  The optional death benefit may provide a greater death benefit than the standard death benefit (see "Death Benefit Calculations").

Nationwide Lifetime Income Track Option

After the Contract Owner reaches age 59½ (or if the Joint Option for the Nationwide Lifetime Income Track option is elected, both spouses reach age 59½) the Nationwide Lifetime Income Track option provides for lifetime withdrawals, up to a certain amount each year, even after the Contract Value is $0, provided that the Contract Owner does not deplete the Current Income Benefit Base by taking early or excess withdrawals and does not make certain assignments or Contract Owner changes.  Investment Restrictions apply.  The Nationwide Lifetime Income Track option is only available under the contract at the time of application.  The Contract Owner (or the Annuitant in the case of a non-natural Contract Owner) must be age 85 or younger at the time of application.

If the applicant elects the Nationwide Lifetime Income Track option, Nationwide will deduct an additional charge not to

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exceed 1.50% of the Current Income Benefit Base, which is the amount upon which the Lifetime Withdrawal Amount is based.  Currently, the charge for the Nationwide Lifetime Income Track option is 0.80% of the Current Income Benefit Base.  The charge is deducted on each Nationwide Lifetime Income Track Anniversary and is taken from the Sub-Accounts proportionally based on contract allocations at the time the charge is deducted.

Election of the Nationwide Lifetime Income Track option requires that the Contract Owner, until annuitization, allocate the entire Contract Value to a limited set of investment options. If the Contract Value is greater than $0, then Lifetime Withdrawals are paid from the Contract Owner's Contract Value. If the Contract Value is equal to or less than $0, then Lifetime Withdrawals are paid from Nationwide's General Account.  Lifetime Withdrawals paid from the General Account are subject to Nationwide's creditors and ultimately, its overall claims paying ability.  Certain actions by the Contract Owner will terminate this optional benefit.  The cost of the Nationwide Lifetime Income Track option may exceed the benefit.

Early withdrawals and excess withdrawals that reduce the Current Income Benefit Base to $0 will automatically terminate the Nationwide Lifetime Income Track option.

Joint Option for the Nationwide Lifetime Income Track Option

The Joint Option for the Nationwide Lifetime Income Track option ("Joint Option") allows a surviving spouse to continue to receive, for the duration of his/her lifetime, the benefit associated with the Nationwide Lifetime Income Track option, provided that certain conditions are satisfied. The Joint Option is only available for election if and when the Nationwide Lifetime Income Track option is elected.

If the applicant elects the Joint Option, Nationwide will deduct an additional charge not to exceed 0.40% of the Current Income Benefit Base.  Currently, the charge for the Joint Option is 0.15% of the Current Income Benefit Base.  In addition, if the Joint Option is elected, the Lifetime Withdrawal Percentages will be reduced.  The Contract Owner’s spouse (or the Annuitant’s spouse in the case of a non-natural Contract Owner) must be age 85 or younger at the time of application.  The charge is deducted at the same time and in the same manner as the Nationwide Lifetime Income Track option charge.The cost of the Joint Option (including the reduction in the Lifetime Withdrawal Percentages) may exceed the benefit.

Charges for Optional Benefits

The charges associated with optional benefits are only assessed prior to annuitization.

Underlying Mutual Fund Annual Expenses

The underlying mutual funds charge fees and expenses that are deducted from underlying mutual fund assets.  These fees and expenses are in addition to the fees and expenses assessed by the contract.  The prospectus for each underlying mutual fund provides information regarding the fees and expenses applicable to the fund (see "The Variable Account and Underlying Mutual Funds").

Short-Term Trading Fees

Some underlying mutual funds may assess (or reserve the right to assess) a short-term trading fee in connection with transfers from a Sub-Account that occur within 60 days after the date of allocation to the Sub-Account.  Any short-term trading fee assessed by any underlying mutual fund available in conjunction with the contracts described in this prospectus will equal 1% of the amount determined to be engaged in short-term trading.

Annuity Payments

On the Annuitization Date, annuity payments begin (see "Annuity Commencement Date" and "Annuitizing the Contract").  Annuity payments will be based on the annuity payment option chosen prior to annuitization.  Nationwide will send annuity payments no later than seven days after each annuity payment date.

Taxation

How distributions from an annuity contract are taxed depends on the type of contract issued and the purpose for which the contract is purchased.  Generally, distributions from an annuity contract, including the payment of death benefits, are taxable to the extent they exceed investment in the contract.  Nationwide will charge against the contract any premium taxes levied by any governmental authority.  Premium tax rates currently range from 0% to 5% (see "Premium Taxes" and "Appendix C: Contract Types and Tax Information").

Death Benefit

An applicant may elect the standard death benefit (at no additional cost) or may elect the One-Year Enhanced Death Benefit Option for an additional charge (see "Death Benefits").  If no election is made at the time of application, the death benefit will be the standard death benefit.

Right to Examine and Cancel

Under state insurance laws, Contract Owners have the right, during a limited period of time, to examine their contract and decide if they want to keep it or cancel it.  This right is referred to as a "free look" right.  The length of this time period depends on state law and may vary depending on whether your purchase is replacing another annuity contract you own.

If the Contract Owner elects to cancel the contract pursuant to the free look provision, where required by law, Nationwide will return the greater of the Contract Value or the amount of purchase payment(s) applied during the free look period, less any withdrawals from the contract and applicable federal and state income tax withholding.  Otherwise, Nationwide will return the Contract Value, less any withdrawals from the contract and applicable federal and state income tax withholding (see "Right to Examine and Cancel").

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 (see "Determining the Contract Value").  Since this annuity contract was not

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available as of December 31, 201 2 , there are no Accumulation Unit values available.

Financial Statements

Financial statements for the Variable Account and consolidated financial statements for Nationwide are located in the Statement of Additional Information.  A current Statement of Additional Information may be obtained, without charge, by contacting the Service Center.

Nationwide Life Insurance Company

Nationwide, the depositor, is a stock life insurance company organized under Ohio law in March 1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215.  Nationwide is a provider of life insurance, annuities and retirement products.  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: Underlying Mutual Funds."  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 of which invests in shares of a single underlying mutual fund.  Nationwide uses the assets of each Sub-Account to buy shares of the underlying mutual funds based on Contract Owner instructions.

Contract Owners receive underlying mutual fund prospectuses when they make their initial Sub-Account allocations and any time they change those allocations. Contract Owners can obtain prospectuses for underlying funds free of charge at any other time by contacting the Service Center.  Contract Owners should read these prospectuses carefully before investing.

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

The investment advisors 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, the Nationwide Lifetime Income Track option limits the list of the Sub-Accounts available in connection with that option.

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 on, and may control, the outcome.

The number of shares which a Contract Owner may vote is determined by dividing the cash value of the amount they have

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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 shares of another underlying mutual fund for shares already purchased or to be purchased in the future if either of the following occurs:

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

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

No substitution of shares may take place without the prior approval of the SEC.  All affected Contract Owners will be notified in the event there is a substitution of shares.

Deregistration of the Variable Account

Nationwide may deregister the Variable Account under the 1940 Act in the event the Variable Account meets an exemption from registration under the 1940 Act, if there are no shareholders in the separate account, or for any other purpose approved by the SEC.

No deregistration may take place without the prior approval of the SEC.  All affected Contract Owners will be notified in the event Nationwide deregisters the Variable Account.

Contacting the Service Center

All inquiries, paperwork, information requests, service requests, and transaction requests should be made to the Service Center:

·   by telephone at 1-800-848-6331 (TDD 1-800-238-3035)

·   by mail to P.O. Box 182021, Columbus, Ohio 43218-2021

·   by fax at 1-888-634-4472

·   by Internet at www.nationwide.com.

Nationwide reserves the right to restrict or remove the ability to submit service requests via Internet, phone, or fax upon written notice.

Not all methods of communication are available for all types of requests.  To determine which methods are permitted for a particular request, refer to the specific transaction provision in this prospectus, or call the Service Center.  Requests submitted by means other than described in this prospectus could be returned or delayed.

Service and transaction requests will generally be processed on the Valuation Date they are received at the Service Center as long as the request is in good order.  Good order generally means that all necessary information to process the request is complete and in a form acceptable to Nationwide.  If a request is not in good order, Nationwide will take reasonable actions to obtain the information necessary to process the request.  Requests that are not in good order may be delayed or returned.  Nationwide reserves the right to process any purchase payment or withdrawal request sent to a location other than the Service Center on the Valuation Date it is received at the Service Center.

Nationwide may be required to provide information about your contract to government regulators.  If mandated under applicable law, Nationwide may be required to reject a purchase payment and to refuse to process transaction requests for transfers, withdrawals, loans, and/or death benefits until instructed otherwise by the appropriate regulator.

Nationwide will use reasonable procedures to confirm that instructions are genuine and will not be liable for following instructions that it reasonably determined to be genuine.  Nationwide may record telephone requests.  Telephone and computer systems may not always be available.  Any telephone system or computer, whether yours or Nationwide's, can experience outages or slowdowns for a variety of reasons.  The outages or slowdowns could prevent or delay processing.  Although Nationwide has taken precautions to support heavy use, it is still possible to incur an outage or delay.  To avoid technical difficulties, submit transaction requests by mail.

The Contract in General

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

Due to state law variations, the options and benefits described in this prospectus may vary or may not be available depending on the state in which the contract is issued.  Possible state law variations include, but are not limited to, minimum initial and subsequent purchase payment amounts, age issuance limitations, availability of certain investment options, optional benefits, free look rights, annuity payment options, ownership and interests in the contract, assignment, and death benefit calculations.  This prospectus describes all the material features of the contract. To review a copy of the contract and any endorsements, contact the Service Center.

If the contract described in this prospectus 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.

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Except in certain circumstances involving fraud and where permitted by state law, Nationwide will not contest the contract after it has been in force during the lifetime of the Annuitant for two years after the date of contract issuance or effective date of certain contract changes, as defined in the contract.

The annuity described in this prospectus is intended to provide benefits to a single individual and his/her beneficiaries.  It is not intended to be used by institutional investors, in connection with other Nationwide contracts that have the same Annuitant, or in connection with other Nationwide contracts that have different Annuitants, but the same Contract Owner.  If Nationwide determines that the risks it intended to assume in issuing the contract have been altered by misusing the contract as described above, Nationwide reserves the right to take any action it deems necessary to reduce or eliminate the altered risk.  Nationwide also reserves the right to take any action it deems necessary to reduce or eliminate altered risk resulting from materially false, misleading, incomplete or otherwise deficient information provided by the Contract Owner.

These contracts are offered to customers of various financial institutions and brokerage firms.  No financial institution or brokerage firm is responsible for any of the contractual insurance benefits and features guaranteed under the contracts.  Certain features under this contract provide guarantees.  These guarantees are the sole responsibility of Nationwide.  Any guaranteed amount that exceeds the Contract Value is: (i) paid from Nationwide’s General Account; and (ii) subject to the rights of Nationwide’s creditors and ultimately, its overall claims paying ability.

In general, deferred variable annuities are long-term investments; they are not intended as short-term investments.  Deferred variable annuities are not intended to be sold to a terminally ill Contract Owner or Annuitant.  Accordingly, Nationwide has designed the contract to offer features, pricing, and investment options that encourage long-term ownership.  It is very important that Contract Owners and prospective 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

No commissions are payable on the sale of a contract described in this prospectus.  However, 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 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 advisor or subadvisor 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 advisor or subadvisor (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 advisor or subadvisor (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

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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

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

Identification of Underlying Mutual Funds

Nationwide may consider several criteria when identifying the underlying mutual funds, including some or all of the following:  investment objectives, investment process, investment performance, risk characteristics, investment capabilities, experience and resources, investment consistency, and fund expenses.  Another factor Nationwide considers during the identification process is whether the underlying mutual fund's advisor or subadvisor is one of our affiliates or whether the underlying mutual fund, its advisor, its subadvisor(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 and will lower 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.

Contract Modification

Nationwide may modify the contract, but no modification will affect the amount or term of any contract unless a modification is required to conform the contract to applicable federal or state law.  No modification will affect the method by which Contract Value is determined.

Standard Charges and Deductions

Mortality and Expense Risk Charge

Nationwide deducts a Mortality and Expense Risk Charge that is reflected in the daily unit value calculations. The charge is equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  This fee compensates Nationwide for providing the insurance benefits under the contract, including the contract's standard death benefit.  It also compensates Nationwide for assuming the risk that Annuitants will live longer than assumed.  Finally, the Mortality and Expense Risk Charge compensates Nationwide for guaranteeing that charges will not increase regardless of actual expenses.  Nationwide may realize a profit from this charge.

Administrative Charge

Nationwide deducts an Administrative Charge that is reflected in the daily unit value calculations. The charge is equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  This fee reimburses Nationwide for administrative costs it incurs resulting from 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.  Nationwide may realize a profit from this charge.

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.  Nationwide will assess premium taxes to the contract at the time Nationwide is assessed the premium taxes by the state.  Premium tax requirements vary from state to state.  Premium taxes may be deducted from death benefit proceeds.

Short-Term Trading Fees

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

Short-term trading fees are intended to compensate the underlying mutual fund (and Contract Owners with interests 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).  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.

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To determine whether a particular underlying mutual fund assesses (or reserves the right to assess) a short-term trading fee, see "Appendix A: Underlying Mutual Funds."

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

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;

·   withdrawals;

·   withdrawals of Annuity Units to make annuity payments;

·   withdrawals 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 applicants.  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.

One-Year Enhanced Death Benefit Option

In lieu of the standard death benefit, applicants with Annuitants age 80 or younger at the time of application can elect the One-Year Enhanced Death Benefit Option for an additional charge equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.  Nationwide may realize a profit from the charge assessed for this option.

If the Annuitant dies before the Annuitization Date, the death benefit will be the greatest of:

(1)   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 withdrawn; or

(3)   the highest Contract Value on any Contract Anniversary prior to the Annuitant's 86th birthday, less an adjustment for amounts subsequently withdrawn, plus purchase payments received after that Contract Anniversary.

The adjustment for amounts withdrawn will reduce items (2) and (3) above in the same proportion that the Contract Value was reduced on the date(s) of the partial withdrawals.

Note: For Contract Owners who 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 "Death Benefit Calculations."  The practical effect of the adjustment 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, but in no event will the beneficiary receive less than the Contract Value.

The One-Year Enhanced Death Benefit Option also includes the Spousal Protection Feature, which allows a surviving spouse to continue the contract while receiving the economic benefit of the death benefit upon the death of the other spouse (see "Spousal Protection Feature").

Nationwide Lifetime Income Track

After the Contract Owner reaches age 59½ (or if the Joint Option is elected, both spouses reach age 59½) (the "Withdrawal Start Date"), the Nationwide Lifetime Income Track option provides for Lifetime Withdrawals, up to a certain amount each year, even after the Contract Value is $0, provided that the Contract Owner does not deplete the Current Income Benefit Base by taking early or excess withdrawals and does not make certain assignments or Contract Owner changes.  Investment restrictions apply.  The age of the person upon which the benefit depends (the "determining life") must be 85 or younger at the time of application.  For most contracts, the determining life is that of the 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 Annuitant, and all references in this option to "Contract Owner" shall mean Annuitant.  If, in addition to the Annuitant, a Co-Annuitant or joint annuitant has been elected, the determining life will be that of the younger Annuitant.  The determining life may not be changed.

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Availability

The Nationwide Lifetime Income Track option is available under the contract at the time of application. The Nationwide Lifetime Income Track option is not available on beneficially owned contracts – those contracts that are inherited by a beneficiary and the beneficiary continues to hold the contract as a beneficiary (as opposed to treating the contract as his/her own) for tax purposes.  However, if such contract becomes beneficially owned by the spouse of the Contract Owner, and the Joint Option for the Nationwide Lifetime Income Track option is elected, then the spouse may keep the Nationwide Lifetime Income Track option.  However, once a contract becomes beneficially owned, the contract will not receive the benefit of the required minimum distribution privilege (see " RMD P rivilege ") .

Nationwide Lifetime Income Track Charge

In exchange for this lifetime withdrawal benefit, Nationwide will assess an annual charge not to exceed 1.50% of the Current Income Benefit Base.  The current charge for the Nationwide Lifetime Income Track option is 0.80% of the Current Income Benefit Base.  The current charge associated with the Nationwide Lifetime Income Track option will not change, except, possibly, upon the Contract Owner's election to reset the benefit base, as discussed herein.  If the current charge does change, it will not exceed the maximum charge of 1.50% of the Current Income Benefit Base.

The charge will be assessed on each Nationwide Lifetime Income Track Anniversary and will be deducted via redemption of Accumulation Units.   The charge will be assessed until annuitization.   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 Nationwide Lifetime Income Track option charge will not negatively impact calculations associated with other benefits elected or available under the contract.

Lifetime Income Option Investment Requirements

Election of the Nationwide Lifetime Income Track option requires that the Contract Owner, 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 the Nationwide Lifetime Income Track option, see "Income Benefit Investment Options."  Allocation requests to investment options other than those listed in the "Income Benefit Investment Options" section will not be honored; they will be treated as though no allocation request was submitted.

Dollar Cost Averaging programs for the Nationwide Lifetime Income Track option are not available.

Transfers Among Permitted Investment Options

The Contract Owner may reallocate the Contract Value among the limited set of investment options in accordance with the "Transfers Prior to Annuitization" provision.  The Contract Owner may reallocate the Contract Value within the Custom Portfolio Asset Rebalancing Service in accordance with that provision.  Additionally, Contract Owners may change from the Custom Portfolio Asset Rebalancing Service to the permitted investment options, and vice versa.

Subsequent Purchase Payments

Subsequent purchase payments are permitted under the Nationwide Lifetime Income Track option as long as the Contract Value is greater than $0.  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 which total in aggregate $50,000 or more in any calendar year.  The $50,000 threshold will take into consideration all contracts issued by Nationwide to a particular Contract Owner or using the same determining life.  If Nationwide exercises this right to refuse a purchase payment, the entire purchase payment that causes the aggregate amount to exceed $50,000 will be immediately returned to the Contract Owner in the same form in which it was received.  Generally, Nationwide may invoke this right in times of economic instability.  Contract Owners may contact the Service Center to find out if Nationwide will accept a particular subsequent purchase payment.

Determination of the Income Benefit Base Prior to the First Lifetime Withdrawal

Upon election of the Nationwide Lifetime Income Track option, the Original Income Benefit Base is equal to the Contract Value.  Thereafter, Nationwide tracks, on a continuous basis, the Current Income Benefit Base which is used to calculate the Lifetime Withdrawal Amount.

The Current Income Benefit Base for the Nationwide Lifetime Income Track option will equal the highest Contract Value on any Nationwide Lifetime Income Track Anniversary (unless the Contract Owner cancels this automatic reset feature as described in "Reset Opportunities") adjusted by the following:

(1)   Additional purchase payments submitted after the Nationwide Lifetime Income Track option is elected. Additional purchase payments will result in an immediate increase to the Current Income Benefit Base equal to the dollar amount of the additional purchase payment(s).

(2)   Early withdrawals, which are withdrawals taken from the contract prior to the Withdrawal Start Date. Early withdrawals will result in a decrease to the Current Income Benefit Base. The amount of that decrease will be the greater of (a) or (b), where:

(a)   = the dollar amount of the early withdrawal; and

(b)   = a figure representing the proportional amount of the early withdrawal.  This amount is determined by the following formula:

Gross dollar amount of the early withdrawal	X	Current Income Benefit Base prior to the withdrawal
Contract Value

(1)  

(2)  

In situations where the Contract Value exceeds the existing Current Income Benefit Base, early withdrawals 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

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Income Benefit Base, early withdrawals will typically result in a proportional reduction to the new Current Income Benefit Base.

(3)   If requested, a one-time Non-Lifetime Withdrawal.  A Non-Lifetime Withdrawal will result in a decrease to the Current Income Benefit Base.  The amount of that decrease will be a figure representing the proportional amount of the Non-Lifetime Withdrawal.  This amount is determined by the following formula:

Gross dollar amount of the Non-Lifetime Withdrawal	X	Current Income Benefit Base prior to the Non-Lifetime Withdrawal
Contract Value

If at any time prior to the first Lifetime Withdrawal the Contract Value equals $0, no additional purchase payments will be accepted and no further benefit base calculations will be made.

Non-Lifetime Withdrawal

After the later of the first Nationwide Lifetime Income Track Anniversary or the Withdrawal Start Date, the Contract Owner may request a one-time withdrawal ("Non-Lifetime Withdrawal") without initiating the lifetime income benefit under the Nationwide Lifetime Income Track option.  The Non-Lifetime Withdrawal will not lock in the Lifetime Withdrawal Percentage.  However, the Non-Lifetime Withdrawal will reduce the Current Income Benefit Base by the proportional amount of the withdrawal.  The proportional amount of the withdrawal is determined by the following formula:

Gross dollar amount of the Non-Lifetime Withdrawal	X	Current Income Benefit Base prior to the Non-Lifetime Withdrawal
Contract Value

All Non-Lifetime Withdrawal requests must be made on a Nationwide form which is available by contacting the Service Center.  If the Contract Owner requests a withdrawal without using the Nationwide form, the withdrawal request will be treated as a Lifetime Withdrawal request and will not be treated as a request for a Non-Lifetime Withdrawal.

A Non-Lifetime Withdrawal cannot be taken after the Contract Owner initiates the Lifetime Withdrawals.

Lifetime Withdrawals

At any time after the Withdrawal Start Date, the Contract Owner may begin taking the lifetime income benefit by taking a withdrawal from the contract.  Unless the Contract Owner requests a one-time Non-Lifetime Withdrawal, the first withdrawal after the Withdrawal Start Date constitutes the first Lifetime Withdrawal, even if such withdrawal is taken to meet minimum distribution requirements under the Internal Revenue Code or is taken to pay advisory or investment management fees.  Nationwide will surrender Accumulation Units proportionally from the Sub-Accounts as of the date of the withdrawal request.  As with any withdrawal, Lifetime Withdrawals reduce the Contract Value and consequently, the amount available for annuitization.

At the time of the first Lifetime Withdrawal, the Current Income Benefit Base is locked in and will not change unless the Contract Owner takes excess withdrawals, elects a reset opportunity (both discussed later in this provision), or submits additional purchase payments.  As long as the Nationwide Lifetime Income Track option is in effect, additional purchase payments submitted after the first Lifetime Withdrawal will increase the Current Income Benefit Base by the amount of the purchase payment.

Simultaneously, the Lifetime Withdrawal Percentage is determined as indicated in the following tables:

If the first Lifetime Withdrawal is taken prior to fifth Nationwide Lifetime Income Track Anniversary:

Contract Owner’s Age (at time of first Lifetime Withdrawal)	Lifetime Withdrawal Percentage
59½ through 64	4.00%
65 through 74	4.50%
75 through 80	5.00%
81 and older	5.50%

If the first Lifetime Withdrawal is taken on or after the fifth Nationwide Lifetime Income Track Anniversary:

Contract Owner’s Age (at time of first Lifetime Withdrawal)	Lifetime Withdrawal Percentage
59½ through 64	4.50%
65 through 74	5.00%
75 through 80	5.50%
81 and older	6.00%

For contracts that elect the Joint Option for the Nationwide Lifetime Income Track option, the Lifetime Withdrawal Percentages will be less than the Lifetime Withdrawal Percentages above (see "Joint Option for the Nationwide Lifetime Income Track").

A Contract Owner will receive the greatest Lifetime Withdrawal Percentage only if he or she does not take a Lifetime Withdrawal from the contract prior to the fifth Nationwide Lifetime Income Track Anniversary and prior to age 81.  Note: The Internal Revenue Code requires that IRAs, SEP IRAs, Simple IRAs, and Investment-Only Contracts begin distributions no later than April 1 of the calendar year following the calendar year in which the Contract Owner reaches age 70½.  Contract Owners subject to minimum required distribution rules may not be able to take advantage of the Lifetime Withdrawal Percentages available at higher age bands if distributions are taken from the contract to meet these Internal Revenue Code requirements.  Contract Owners who elect not to take minimum required distributions from this contract, i.e., they take minimum required distributions from other sources, may be able to take advantage of Lifetime Withdrawal Percentages at the higher age bands.  Consult a qualified tax advisor for more information.

At the time of the first Lifetime Withdrawal and on each Nationwide Lifetime Income Track Anniversary thereafter, the Lifetime Withdrawal Percentage (which remains the same) is multiplied by the Current Income Benefit Base to determine

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the Lifetime Withdrawal Amount for that year.  The Lifetime Withdrawal Amount is the maximum amount that can be withdrawn from the contract before the next Nationwide Lifetime Income Track Anniversary without reducing the Current Income Benefit Base.  The ability to withdraw the Lifetime Withdrawal Amount will continue until the earlier of the Contract Owner's death or annuitization (assuming the Current Income Benefit Base is not depleted and the option remains in force).

The Contract Owner can elect to set up Systematic Withdrawals or can request each withdrawal separately.  All Lifetime Withdrawal requests must be made on a Nationwide form available by contacting the Service Center.

Each year's Lifetime Withdrawal Amount is non-cumulative.  A Contract Owner cannot take a previous year's Lifetime Withdrawal Amount in a subsequent year without causing an excess withdrawal (see below) that will reduce the Current Income Benefit Base.  Although withdrawals up to the Lifetime Withdrawal Amount do not reduce the Current Income Benefit Base, they do reduce the Contract Value and the death benefit.

Impact of Withdrawals in Excess of the Lifetime Withdrawal Amount

After the Withdrawal Start Date, the Contract Owner is permitted to withdraw Contract Value in excess of the Lifetime Withdrawal Amount provided that the Contract Value is greater than $0.  Withdrawals in excess of the Lifetime Withdrawal Amount will reduce the Current Income Benefit Base, and consequently, the Lifetime Withdrawal Amount calculated for subsequent years.  In the event of excess withdrawals, the Current Income Benefit Base will be reduced by the greater of:

(1)   the gross dollar amount of the withdrawal in excess of the Lifetime Withdrawal Amount; or

(2)   a figure representing the proportional amount of the withdrawal.  This amount is determined by the following formula:

Gross dollar amount of the excess withdrawal	X	Current Income Benefit Base prior to the withdrawal
Contract Value (reduced by the amount of the Lifetime Withdrawal Amount withdrawn)

In situations where the Contract Value exceeds the existing Current Income Benefit Base, excess withdrawals 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 withdrawals will typically result in a proportional reduction to the new Current Income Benefit Base.

The extent to which excess withdrawals negatively impact the overall benefit received under the Nationwide Lifetime Income Track option depends on market conditions and other factors that are specific to each contract.  Consult with an advisor to determine what is best for you based on your individual financial situation and needs.

Once the Contract Value falls to $0 (which could result from Contract Owner withdrawals, market performance, charges, or any combination thereof), the Contract Owner is no longer permitted to submit additional purchase payments or take withdrawals in excess of the Lifetime Withdrawal Amount.  Additionally, there is no Contract Value to annuitize, making the payment of the benefit associated with this option the only income stream producing benefit remaining in the contract.

Note : If the Contract Value falls to $0 as a result of an excess withdrawal, the Current Income Benefit Base will be reduced to $0 and the contract will terminate.

RMD Privilege

Currently, Nationwide allows for an "RMD privilege" whereby Nationwide permits a Contract Owner to withdraw Contract Value in excess of the Lifetime Withdrawal Amount without reducing the Current Income Benefit Base if such excess withdrawal is for the sole purpose of meeting Internal Revenue Code required minimum distributions for this contract.  This RMD privilege does not apply to beneficially owned contracts.  In order to qualify for the RMD privilege, the Contract Owner must:

(1) be at least 70½ years old as of the date of the request;

(2) own the contract as an IRA, SEP IRA, Simple IRA, or Investment-Only Contract; and

(3) submit a completed administrative form in advance of the withdrawal to the Service Center.

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 to required minimum distributions, including the issuance of relevant IRS guidance.  If Nationwide exercises this right, Nationwide will provide notice to Contract Owners and any withdrawal in excess of the Lifetime Withdrawal Amount will reduce the remaining Current Income Benefit Base.

Difference between Early Withdrawals and Excess Withdrawals

Early withdrawals and excess withdrawals vary in their impact on the Current Income Benefit Base.

Early withdrawals are taken before the Withdrawal Start Date and the entire amount of the early withdrawal is considered when calculating the reduction to the Current Income Benefit Base.

Excess withdrawals are taken after the Withdrawal Start Date, when the Contract Owner takes withdrawals in excess of the Lifetime Withdrawal Amount, and only the amount in excess of the Lifetime Withdrawal Amount is considered when calculating the reduction to the Current Income Benefit Base.

This means that early withdrawals will have a greater overall negative impact on the Current Income Benefit Base than excess withdrawals, because early withdrawals will impact the Current Income Benefit Base in their entirety, where excess withdrawals will only impact the Current Income Benefit Base by the amount of the withdrawal that was in excess of the Lifetime Withdrawal Amount.

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Reset Opportunities

Nationwide offers an automatic reset of the Current I ncome B enefit B ase.  If, on any Nationwide Lifetime Income Track Anniversary, the Contract Value exceeds the Current Income Benefit Base, Nationwide will automatically reset the Current Income Benefit Base to equal that Contract Value.  This higher amount will be the new Current Income Benefit Base.  This automatic reset will continue until the first Lifetime Withdrawal.  After the first Lifetime Withdrawal, the automatic reset will continue until either the current price or the list of permitted investment options associated with the Nationwide Lifetime Income Track option changes.

In the event the current price or the list of permitted investment options of the Nationwide Lifetime Income Track option changes after the first Lifetime Withdrawal, the reset opportunities still exist, but are no longer automatic.  An election to reset the Current Income Benefit Base must be made by the Contract Owner to Nationwide.  On or about each Nationwide Lifetime Income Track Anniversary, Nationwide will provide the Contract Owner with information necessary to make this determination.  Specifically, Nationwide will provide: the Contract Value; the Current Income Benefit Base; the current terms and conditions associated with the Nationwide Lifetime Income Track option; and 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 as described in the most current prospectus.  If Nationwide does not receive a Contract Owner's election to reset the Current Income Benefit Base within 60 days after the Nationwide Lifetime Income Track Anniversary, Nationwide will assume that the Contract Owner does not wish to reset the Current Income Benefit Base.  If the Current Income Benefit Base is not reset, it will remain the same and the terms and conditions of the Nationwide Lifetime Income Track option will not change (as applicable to that particular contract).

Contract Owners may cancel the automatic reset feature of the Nationwide Lifetime Income Track option by notifying Nationwide as to such election.

Settlement Options

If, after beginning the Lifetime Withdrawals, a Contract Owner's Contract Value falls to $0 and there is still a positive Current Income Benefit Base, Nationwide will provide the Contract Owner with settlement options.  Specifically, Nationwide will provide a notification to the Contract Owner describing the following three options, along with instructions on how to submit the election to Nationwide:

(1)   The Contract Owner can continue to take annual withdrawals of no more than the Lifetime Withdrawal Amount until the death of the Contract Owner (or, if the Joint Option is elected, until the death of the spouse);

(2)   The Contract Owner can elect the Age Based Lump Sum Settlement Option, as described below; or

(3)   If the Contract Owner qualifies after a medical examination, the Contract Owner can elect the Underwritten Lump Sum Settlement Option, as described below.

The options above each result in a different amount ultimately received under the Nationwide Lifetime Income Track option.  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 Option amount will never be less than the Age Based Lump Sum Settlement Option amount.  Election of the Age Based Lump Sum Settlement Option enables the Contract Owner to receive payment without a medical exam, which could potentially delay payment.  Before selecting a settlement option, consult with a qualified 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 ("Notification Period").   Once the Contract Owner makes an election, the election is irrevocable.  If the Contract Owner has started taking Lifetime Withdrawals and does not make an election within the Notification Period, Nationwide will assume that the Contract Owner intends to continue to take withdrawals of the Lifetime Withdrawal Amount.  If the Contract Owner had requested Systematic Withdrawals of the Lifetime Withdrawal Amount prior to the notice, those Systematic Withdrawals will continue.  If the Contract Owner had not requested Systematic Withdrawals prior to the notice, the Contract Owner may request Systematic Withdrawals at any time by contacting the Service Center.  

If the Contract Owner has not started taking Lifetime Withdrawals and does not make an election within the Notification Period, Nationwide will initiate the Lifetime Withdrawals on behalf of the Contract Owner and will begin mailing to the Contract Owner on an annual basis an amount equal to the Lifetime Withdrawal Amount .  If Nationwide initiates Lifetime Withdrawals on behalf of the Contract Owner, the first payment of the Lifetime Withdrawal Amount will be sent on the next business day following the Notification Period ("Settlement Payment Date").  Nationwide will then send the Contract Owner the Lifetime Withdrawal Amount annually on the anniversary of the Settlement Payment Date (or the next business day if the anniversary of the Settlement Payment Date does not fall on a business day).  Nationwide will mail a check to the Contract Owner's address on record.  The Contract Owner may contact the Service Center at any time to request Systematic Withdrawals of the Lifetime Withdrawal Amount.

Age Based Lump Sum Settlement Option.  Under the Age Based Lump Sum Settlement Option, in lieu of taking withdrawals of the annual Lifetime Withdrawal Amount, Nationwide will pay the Contract Owner a lump sum equal to the Contract Owner's most recently calculated Lifetime Withdrawal Amount multiplied by the Annual Benefit Multiplier listed below:

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Contract Owner's Age (as of the date the Age Based Lump Sum Option is elected)	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 Joint Option for the Nationwide Lifetime Income Track option, if both spouses are living on the date the Age Based Lump Sum Settlement Option is elected, Nationwide will use the age of the younger spouse minus three years to determine the Annual Benefit Multiplier (which may result in a higher Annual Benefit Multiplier and a larger benefit under this option) .  If only one spouse is living on the date the Age Based Lump Sum Settlement Option is elected, Nationwide will use the age of the living spouse to determine the Annual Benefit Multiplier.

Underwritten Lump Sum Settlement Option.  Under the Underwritten Lump Sum Settlement Option, in lieu of taking withdrawals of the Lifetime Withdrawal Amount, for those who qualify based on a medical exam, Nationwide will pay the Contract Owner a lump sum based upon the attained age, sex, and health of the Contract Owner (and spouse if the Joint Option for the Nationwide Lifetime Income Track option is elected).  Once Nationwide receives the Contract Owner's election to take the Underwritten Lump Sum Settlement Option, Nationwide will provide the Contract Owner with a medical examination form, which must be completed by a certified physician chosen by the Contract Owner and returned to the Service Center within 30 days.  Upon completion of underwriting by Nationwide, the lump sum settlement amount (determined as of the date that Nationwide received all of the necessary information) is issued to the Contract Owner. If Nationwide does not receive the completed form within the 30-day period, Nationwide will pay the Contract Owner the amount that would be payable under the Age Based Lump Sum Settlement Option.

Annuitization

If the Contract Owner elects to annuitize the contract, this option will terminate.  Specifically, the charge associated with the option will no longer be assessed and all benefits associated with the Nationwide Lifetime Income Track option will terminate.

Death of Determining Life

For contracts with no Joint Option, upon the death of the determining life, the benefits associated with the option terminate.  If the Contract Owner is also the Annuitant, the death benefit will be paid in accordance with the "Death Benefits" provision.  If the Contract Owner is not the Annuitant, the Contract Value will be distributed in accordance with the "Required Distributions" section of "Appendix C: Contract Types and Tax Information."

For contracts with the Joint Option, upon the death of the determining life, the surviving spouse continues to receive the same benefit associated with the Nationwide Lifetime Income Track option which had been received by the deceased spouse, for the remainder of the survivor's lifetime.  The Contract Value will reflect the death benefit and Spousal Protection Feature.

Tax Treatment

Although the tax treatment for withdrawals under withdrawal benefits such as the Nationwide Lifetime Income Track option is not clear, Nationwide will treat a portion of each Lifetime Withdrawal as a taxable distribution, as follows:

First, we determine which is greater: (1) the Contract Value immediately before the withdrawal; or (2) the Lifetime Withdrawal Amountimmediately before the withdrawal.  That amount (the greater of (1) or (2)) minus any remaining investment in the contract at the time of the withdrawal will be reported as a taxable distribution.

For any withdrawal taken when the Contract Value is less than or equal to the total investment in the contract, Nationwide treats the withdrawal as a tax-free return of investment until the entire investment in the contract has been received tax-free.  Once the entire investment in the contract has been received tax-free, withdrawals will be reported as taxable distributions.  Consult a qualified tax adviser.

Automatic Termination of Nationwide Lifetime Income Track

Early or excess withdrawals that reduce the Current Income Benefit Base to $0 will automatically terminate the Nationwide Lifetime Income Track option.  If this option terminates, then Nationwide will no longer assess the fee associated with this option.

In addition, where permitted under state law, the Nationwide Lifetime Income Track option will automatically terminate if the Contract Owner is changed or if the contract is assigned (including a collateral assignment), except as follows:

(1)   The new Contract Owner or assignee assumes full ownership of the contract and is essentially the same person (e.g., individual ownership is changed to ownership by a personal revocable trust, a change to the Contract Owner's spouse during the Contract Owner's lifetime, a change to a court appointed guardian representing the Contract Owner during the Contract Owner's lifetime, etc.);

(2)   Ownership of a contract issued as an IRA or Roth IRA is being changed from one custodian to another, from the determining life to a custodian, or from a custodian to the determining life;

(3)   The assignment is for the purpose of effectuating an exchange pursuant to Section 1035 under the Internal Revenue Code; or

(4)   The change is merely the removal of a Contract Owner where the contract is jointly owned.

Contract Owners contemplating changes to the ownership of their contract, including assignments, should contact their registered representative to determine how the changes impact the benefit associated with the Nationwide Lifetime Income Track option.

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Joint Option for the Nationwide Lifetime Income Track

At the time the Nationwide Lifetime Income Track option is elected (at time of application), the Contract Owner may elect the Joint Option for the Nationwide Lifetime Income Track option ("Joint Option").  The Joint Option is not available for contracts issued as Charitable Remainder Trusts.  The Joint Option allows a surviving spouse to continue to receive, for the duration of his/her lifetime, the benefit associated with the Nationwide Lifetime Income Track option, provided certain conditions are met.  Once the Joint Option is elected, it may not be removed from the contract, except as provided in the "Marriage Termination" section.

The charge for the Joint Option will not exceed 0.40% of the Current Income Benefit Base.  Currently, the charge for the Joint Option is 0.15% of the Current Income Benefit Base.

If the Contract Owner elects the Joint Option, Nationwide will reduce the Lifetime Withdrawal Percentages associated with the Nationwide Lifetime Income Track option as follows:

If the first Lifetime Withdrawal is taken prior to the fifth Nationwide Lifetime Income Track Anniversary:

Contract Owner’s Age (at time of first Lifetime Withdrawal)	Lifetime Withdrawal Percentage
59½ through 64	3.75%
65 through 74	4.25%
75 through 80	4.75%
81 and older	5.25%

If the first Lifetime Withdrawal is taken on or after the fifth Nationwide Lifetime Income Track Anniversary:

Contract Owner’s Age (at time of first Lifetime Withdrawal)	Lifetime Withdrawal Percentage
59½ through 64	4.25%
65 through 74	4.75%
75 through 80	5.25%
81 and older	5.75%

If the Contract Owner elects the Joint Option, the Lifetime Withdrawal Percentage will be based on the age of the younger spouse as of the date of the first Lifetime Withdrawal from the contract.

To be eligible for the Joint Option, the following conditions must be met:

(1)   Both spouses must be age 85 or younger at the time of application;

(2)   Both spouses must be at least age 59½ before either spouse is eligible to begin Lifetime Withdrawals.

(3)   If the Contract Owner is a non-natural person, both spouses must be named as Co-Annuitants;

(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;

(6)   No person other than the spouse may be named as Contract Owner, Annuitant, or primary beneficiary; and

(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).

Note: The Joint Option is distinct from the Spousal Protection Feature associated with the death benefits.  The Joint Option allows a surviving spouse to continue receiving the Lifetime Withdrawals associated with the Nationwide Lifetime Income Track option.  In contrast, the Spousal Protection Feature is a death benefit bump-up feature associated with the death benefits.

Marriage Termination

If, prior to taking the first Lifetime Withdrawal, the marriage terminates due to divorce, dissolution, or annulment, the Contract Owner may remove the Joint Option from the contract.  Nationwide will remove the benefit and the associated charge after the Contract Owner submits to the Service Center a written request and evidence of the marriage termination satisfactory to Nationwide.  In addition, the reduction to the Lifetime Withdrawal Percentages will no longer apply and the Lifetime Withdrawal Percentages will be those that would have applied if the Joint Option had never been elected.  Once the Joint Option is removed from the contract, the benefit may not be re-elected or added to cover a subsequent spouse.

If, after taking the first Lifetime Withdrawal, the marriage terminates due to divorce, dissolution, or annulment, the Contract Owner may not remove the Joint Option from the contract.

Risks Associated with Electing the Joint Option

There are situations where a Contract Owner who elects the Joint Option will not receive the benefits associated with the option.  This will occur if:

(1)   the Contract Owner's spouse (Co-Annuitant) dies before him/her;

(2)   the contract is annuitized; or

(3)   after the first Lifetime Withdrawal, the marriage terminates due to divorce, dissolution, or annulment.

Additionally, in the situations described in (1) and (3) above, not only will the Contract Owner not receive the benefit associated with the Joint Option, but he/she must continue to pay any applicable charge until annuitization.

Income Benefit Investment Options

Only certain investment options are available to contracts that elect the Nationwide Lifetime Income Track option.  The investment options available under Nationwide Lifetime Income Track option are chosen by Nationwide based on each investment option's risk characteristics.  The permitted investment options are more conservative than those that are not permitted.  This helps Nationwide manage its obligation to provide Contract Owners with Lifetime Withdrawals

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by reducing the likelihood that it will have to make unanticipated payments.  By electing the Nationwide Lifetime Income Track option and accepting the limited menu of investment options, Contract Owners may be foregoing investment gains that could otherwise be realized by investing in riskier investment options that are not available under the option.

The following investment options are the only investment options available for contracts that have elected the Nationwide Lifetime Income Track option:

Asset Allocation Programs:

Custom Portfolio Asset Rebalancing Service (see "Contract Owner Services")

·   Balanced

·   Capital Appreciation

·   Moderate

·   Moderately Conservative

Static Asset Allocation Model (see "Static Asset Allocation Model")

·   American Funds Option (33% NVIT - American Funds NVIT Asset Allocation Fund, 33% NVIT - American Funds NVIT Bond Fund and 34% NVIT - American Funds NVIT Growth-Income Fund)

Funds of Funds:

American Funds Insurance Series

·   Protected Asset Allocation Fund

Ivy Funds Variable Insurance Portfolios, Inc.

·   Pathfinder Conservative

·   Pathfinder Moderate

·   Pathfinder Moderately Conservative

Nationwide Variable Insurance Trust

·   American Funds NVIT Asset Allocation Fund: Class II

·   Loring Ward NVIT Moderate Fund: Class II

·   NVIT CardinalSM Balanced Fund: Class II

·   NVIT CardinalSM Capital Appreciation Fund: Class II

·   NVIT CardinalSM Moderate Fund: Class II

·   NVIT CardinalSM Moderately Conservative Fund: Class II

·   NVIT Investor Destinations Balanced Fund: Class II

·   NVIT Investor Destinations Capital Appreciation Fund: Class II

·   NVIT Investor Destinations Moderate Fund: Class II

·   NVIT Investor Destinations Moderately Conservative Fund: Class II

Refer to "Appendix A: Underlying Mutual Funds" for more information.

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.  Ownership changes could have a negative impact on certain benefits under the contract (see "Nationwide Lifetime Income Track" and "Death Benefits").  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.

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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 must be named at the time of application and will receive the benefit of the Spousal Protection Feature, provided all of the requirements set forth in the "Spousal Protection Feature" section are met.

If either Co-Annuitant dies before the Annuitization Date, the surviving Co-Annuitant may continue the contract and will receive the benefit of the Spousal Protection Feature.

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 depends.  The joint annuitant is named at the time of annuitization.

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);

·   beneficiary; or

·   contingent beneficiary.

The Contract Owner must submit the request to Nationwide in writing and Nationwide must receive the request at the Service Center 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 (unless otherwise specified by the Contract Owner), 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.

Operation of the Contract

Pricing

Generally, Nationwide prices Accumulation Units of the Sub-Accounts on each day that the New York Stock Exchange is open.  (Pricing is the calculation of a new Accumulation Unit value that reflects that day's investment experience.)

Accumulation Units are not priced when the New York Stock Exchange is closed or on the following nationally recognized holidays:

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

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

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

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

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

Rules and regulations of the SEC will govern as to when the conditions described in (2) and (3) exist.  If Nationwide is closed on days when the New York Stock Exchange is open, Contract Value may change and Contract Owners will not have access to their accounts.

Application and Allocation of Purchase Payments

Initial Purchase Payments

Initial purchase payments will be priced at the Accumulation Unit value next determined no later than two business days after receipt of an order to purchase if the application and all necessary information are complete and are received at the Service Center before the close of the New York Stock Exchange, which generally occurs at 4:00 pm EST.  If the order is received after the close of the New York Stock Exchange, the initial purchase payment will be priced within

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two business days after the next Valuation Date.

If an incomplete application is not completed within five business days after receipt at the Service Center, the prospective purchaser will be informed of the reason for the delay.  The purchase payment will be returned unless the prospective purchaser specifically consents to allow Nationwide to hold the purchase payment until the application is completed.

Generally, initial purchase payments are allocated according to Contract Owner instructions on the application.  However,

in some states, Nationwide will allocate initial purchase payments to the money market Sub-Account during the free look period.  After the free look period, Nationwide will reallocate the Contract Value among the investment options based on the instructions contained on the application.  In other states, Nationwide will immediately allocate initial purchase payments to the investment options based on the instructions contained on the application.

Subsequent Purchase Payments

Any subsequent purchase payment received at the Service Center (along with all necessary information) before the close of the New York Stock Exchange on any Valuation Date will be priced at the Accumulation Unit value next determined after receipt of the purchase payment.  If a subsequent purchase payment is received at the Service Center (along with all necessary information) after the close of the New York Stock Exchange, it will be priced at the Accumulation Unit value determined on the following Valuation Date.

Allocation of Purchase Payments

Nationwide allocates purchase payments to Sub-Accounts 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.

Contract Owners can change allocations or make exchanges among the Sub-Accounts after the time of application by submitting a written request to the Service Center.  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.  In the event that Nationwide receives such a request, Nationwide will inform the Contract Owner that the allocation instructions are invalid and that the contract's allocations among the Sub-Accounts prior to the request will remain in effect.  Certain transactions may be subject to conditions imposed by the underlying mutual funds.

Determining the Contract Value

The Contract Value is the sum of the value of amounts allocated to the Sub-Accounts of the Variable Account.

If charges are assessed against the whole Contract Value, Nationwide will deduct a proportionate amount from each Sub-Account 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.  For each Sub-Account, the Net Investment Factor is 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.

Nationwide uses the Net Investment Factor as a way to calculate the investment performance of a Sub-Account from Valuation Period to Valuation Period.

The Net Investment Factor for any particular Sub-Account before the Annuitization Date 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 0.40% to 0.60% of the Daily Net Assets of the Variable Account, depending on which optional benefits the Contract Owner elects.

Note: The range shown above reflects only those Variable Account charges that are assessed daily as part of the daily Accumulation Unit calculation.  It does not reflect the cost of other optional benefits that assess charges via the redemption of Accumulation Units (e.g.,the Nationwide Lifetime Income Track option and the Joint Option for the Nationwide Lifetime Income Track option).

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.

Transfer Requests

Contract Owners may submit transfer requests in writing, over the telephone, or via the internet to the Service Center.  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 computed after the transfer request is received at the Service Center.  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

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will be executed on the next Valuation Date after the exchange request is received at the Service Center (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 (see "Short-Term Trading Fees").

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 two underlying mutual funds 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
Six or more transfer events in one calendar quarter	Nationwide will mail a letter to the Contract Owner notifying them that: (1)they have been identified as engaging in harmful trading practices; and (2)if their transfer events exceed 11 in two consecutive calendar quarters or 20 in one calendar year, the Contract Owner will be limited to submitting transfer requests via U.S. mail on a Nationwide issued form.
More than 11 transfer events in two consecutive calendar quarters OR More than 20 transfer events in one calendar year	Nationwide will automatically limit the Contract Owner to submitting transfer requests via U.S. mail on a Nationwide issued form.

For purposes of Nationwide's transfer policy, U.S. mail includes standard U.S. mail, overnight U.S. mail, and overnight delivery via private carrier.

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

Managers of Multiple Contracts

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

Nationwide may, as an administrative practice, implement a "one-day delay" program for these multi-contract advisors, which they can use in addition to or in lieu of submitting transfer requests via U.S. mail.  The one-day delay option permits multi-contract advisorsto continue to submit transfer requests via the internet or telephone.  However, transfer requests submitted by multi-contract advisors via the internet or telephone will not receive the next available Accumulation Unit value.  Rather, they will receive the Accumulation Unit value that is calculated on the following Valuation Date.

Transfer requests submitted under the one-day delay program are irrevocable.  Multi-contract advisors will receive advance notice of being subject to the one-day delay program.  Contract Owners should consult their advisor to determine if he/she is a multi-contract advisor and subject to U.S. mail

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restrictions.

Other Restrictions

Contract Owners that are required to submit transfer requests via U.S. mail will be required to use a Nationwide issued form for their transfer request.  Nationwide will refuse transfer

requests that either do not use the Nationwide issued form for their transfer request or fail to provide accurate and complete information on their transfer request form.  In the event that a Contract Owner's transfer request is refused by Nationwide, they will receive notice in writing by U.S. mail and will be required to resubmit their transfer request on a Nationwide issued form.

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

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

Underlying Mutual Fund Restrictions and Prohibitions

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

(1) request the taxpayer identification number, international taxpayer identification number, or other government issued identifier of any 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 requests to exchange into an underlying mutual fund 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 requests to exchange into an underlying mutual fund.  If an underlying mutual fund refuses to accept a purchase or request to exchange into the underlying mutual fund submitted by Nationwide, Nationwide will keep any affected Contract Owner in their current underlying mutual fund allocation.

Transfers Prior to Annuitization

A Contract Owner may request to transfer allocations among the Sub-Accounts at any time, subject to terms and conditions imposed by this prospectus and the underlying mutual funds.

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 once per calendar year.

Right to Examine and Cancel

If the Contract Owner elects to cancel the contract, he/she may return it to the Service Center within a certain period of time known as the "free look" period.  Depending on the state in which the contract was purchased (and, in some states, if the contract is purchased as a replacement for another annuity contract), the free look period may be 10 days or longer.  For ease of administration, Nationwide will honor any free look cancellation that is received at the Service Center or postmarked within 30 days after the contract issue date.  The contract issue date is the date the initial purchase payment is applied to the contract.

Where state law requires the return of purchase payments for free look cancellations, Nationwide will return all purchase payments applied to the contract, less any withdrawals from the contract and any applicable federal and state income tax withholding.

Where state law requires the return of Contract Value for free look cancellations, Nationwide will return the Contract Value as of the date of the cancellation, less any withdrawals from the contract and any applicable federal and state income tax withholding.

Liability of the Variable Account under this provision is limited to the Contract Value in each Sub-Account on the date of revocation.  Any additional amounts refunded to the Contract Owner will be paid by Nationwide, subject to its claims paying ability.

Allocation of Purchase Payments during Free Look Period

Where state law requires the return of purchase payments for free look cancellations, Nationwide reserves the right to allocate initial purchase payments allocated to Sub-Accounts to the money market Sub-Account during the free look period.

Where state law requires the return of Contract Value for free look cancellations, Nationwide will immediately allocate initial purchase payments to the investment options based on the instructions contained on the application.

Surrender/Withdrawal Prior to Annuitization

Prior to annuitization and before the Annuitant's death, Contract Owners may generally withdraw some or all of their Contract Value.  Withdrawals from the contract may be subject to federal income tax and/or a tax penalty (see "Appendix C: Contract Types and Tax Information").  

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Withdrawal requests must be submitted in writing to the Service Center and Nationwide may require additional information.  When taking a full surrender, the contract must accompany the written request.  Nationwide may require a signature guarantee.

Nationwide will pay any amounts withdrawn from the Sub-Accounts within seven days after the request is received at the Service Center (see "Pricing").  However, Nationwide may suspend or postpone payment when it is unable to price a purchase payment or transfer.

Partial Withdrawals

If a Contract Owner requests a partial withdrawal, Nationwide will redeem Accumulation Units from the Sub-Accounts.  The amount withdrawn from each investment option will be in proportion to the value in each option at the time of the withdrawal request.

Partial Withdrawals 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 withdrawal(s) from the contract in order to collect investment advisory fees.  Withdrawals taken from this contract to pay advisory or investment management fees may be subject to income tax and/or tax penalties.  In addition, withdrawals taken from the contract to pay advisory or investment management fees may negatively impact the benefit associated with the Nationwide Lifetime Income Track option (see "Nationwide Lifetime Income Track").

Full Surrenders

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; and

·   the investment performance of the underlying mutual funds;

Surrender/Withdrawal After Annuitization

After the Annuitization Date, withdrawals other than regularly scheduled annuity payments are not permitted.

Assignment

Investment-Only Contracts, IRAs, Roth IRAs, SEP IRAs, and Simple IRAs may not be assigned, pledged or otherwise transferred except where allowed by law.

A Non-Qualified Contract Owner may assign some or all rights under the contract subject to Nationwide’s consent.  Additionally, Nationwide reserves the right to refuse to recognize assignments on a non-discriminatory basis.  Nationwide is not responsible for the validity or tax consequences of any assignment and 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.

Where permitted under state law, an assignment or collateral assignment may terminate certain benefits under this contract (see "Nationwide Lifetime Income Track" and "Death Benefits").

Contract Owner Services

Asset Rebalancing

Asset Rebalancing is the automatic reallocation of Contract Values to the Sub-Accounts on a predetermined percentage basis.  Requests for Asset Rebalancing must be on a Nationwide form and submitted to the Service Center.  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 is available monthly, quarterly, semi-annually, or annually.  If the last day of the elected 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.

Contract Owners should consult a financial advisor 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 the Contract Owner to make regular, level investments over time.  Dollar Cost Averaging involves the automatic transfer of a specific amount from certain Sub-Accounts into other Sub-Accounts.  With this service, the Contract Owner benefits from the ability to invest in the Sub-Accounts over a period of time, thereby smoothing out the effects of market volatility.  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 following Sub-Accounts:

Nationwide Variable Insurance Trust

·   NVIT Government Bond Fund: Class I

·   NVIT Money Market Fund: Class I

·   NVIT Short Term Bond Fund: Class II

PIMCO Variable Insurance Trust

·   Low Duration Portfolio: Advisor Class

to any other Sub-Account(s).

Transfers occur monthly or on another frequency if permitted by Nationwide.  Nationwide will process transfers until either the value in the originating investment option is exhausted, or the Contract Owner instructs Nationwide to stop the transfers.  When a Contract Owner instructs Nationwide to stop the transfers, all amounts remaining in the originating Sub-

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Account will remain allocated to the Sub-Account, unless Nationwide is instructed otherwise.  Dollar Cost Averaging transfers are not considered transfer events.

Nationwide reserves the right to stop establishing new Dollar Cost Averaging programs.

Dollar Cost Averaging is not available if the Nationwide Lifetime Income Track option is elected.

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 submitted in writing to the Service Center.

The withdrawals will be taken from the Sub-Accounts proportionally unless Nationwide is instructed otherwise.

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.

Nationwide reserves the right to stop establishing new Systematic Withdrawal programs.  Systematic Withdrawals are not available before the end of the free look period.

Custom Portfolio Asset Rebalancing Service

For Contract Owners that have elected the Nationwide Lifetime Income Track option, Nationwide makes available the Custom Portfolio Asset Rebalancing Service ("Custom Portfolio") at no extra charge.  Custom Portfolio is an asset allocation program that Contract Owners can use to build their own customized portfolio of investments, subject to certain limitations.  Asset allocation is the process of investing in different asset classes (such as equity funds, fixed income funds, and money market funds) and may reduce the risk and volatility of investing. There are no guarantees that Custom Portfolio will result in a profit or protect against loss in a declining market.

Each model is comprised of different percentages of standardized asset categories designed to meet different investment goals, risk tolerances, and investment time horizons. The Contract Owner selects their model, then selects the specific underlying mutual funds (also classified according to standardized asset categories) and investment percentages within the model's parameters, enabling the Contract Owner to create their own unique "Custom Portfolio."  Only one "Custom Portfolio" may be created and in effect at a time and the entire Variable Account Contract Value must participate in the model.

Note: Contract Owners should consult with a qualified investment adviser regarding the use of Custom Portfolio and to determine which model is appropriate for them.

Once the Contract Owner creates their "Custom Portfolio," that Contract Owner's model is static.  This means that the percentage allocated to each underlying mutual fund will not change over time, except for quarterly rebalancing, as described below.  Note: allocation percentages within a particular model may subsequently change, but any such changes will not apply to existing model participants; the changes will only apply to participants that elect the model after the change implementation date.

To participate in Custom Portfolio, eligible Contract Owners must submit the proper administrative form to the Service Center.  While Custom Portfolio is elected, Contract Owners cannot participate in Asset Rebalancing.

Asset Allocation Models available with Custom Portfolio

The following models are available with Custom Portfolio:

Moderately Conservative:	Designed for Contract Owners that are willing to accept some market volatility in exchange for greater potential income and growth.
Balanced:	Designed for Contract Owners that are willing to accept some market volatility in exchange for potential long-term returns.
Moderate:	Designed for Contract Owners that are willing to accept some short-term price fluctuations in exchange for potential long-term returns.
Capital Appreciation:	Designed for Contract Owners that are willing to accept more short-term price fluctuations in exchange for potential long-term returns.

The specific underlying mutual funds available to comprise the equity and fixed income components of the models are contained in the election form, which is provided to Contract Owners at the time Custom Portfolio is elected.  At that time, Contract Owners elect their model and the specific underlying mutual funds and percentages that will comprise their "Custom Portfolio."

Quarterly Rebalancing

At the end of each calendar quarter, Nationwide will reallocate the Variable Account Contract Value so that the percentages allocated to each underlying mutual fund match the most recently provided percentages provided by the Contract Owner.  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.  Rebalancing will be priced using the unit value determined on the last Valuation Date of the calendar quarter.  Each quarterly rebalancing is considered a transfer event.  However, quarterly rebalancing transfers within your Custom Portfolio are not subject to short-term trading fees.

Changing Models or Underlying Mutual Fund Allocations

Contract Owners who have elected the Nationwide Lifetime Income Track option may change the underlying mutual fund allocations within their elected model, percentages within their elected model and/or may change models and create a new "Custom Portfolio" within that new model.  To implement one of these changes, Contract Owners must submit new allocation instructions to the Service Center in writing on Nationwide's administrative form.  Any model and percentage changes will be subject to short-term trading fees and will count as a transfer event, as described in the "Transfer Restrictions" provision.

Nationwide reserves the right to limit the number of model changes a Contract Owner can make each year.

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Terminating Participation in Custom Portfolio

Contract Owners can terminate participation in Custom Portfolio by submitting a written request to the Service Center.  In order for the termination to be effective, the termination request must contain valid reallocation instructions that are in accordance with the terms and conditions of the Nationwide Lifetime Income Track option.  Termination is effective on the date the termination request is received at the Service Center in good order.

Static Asset Allocation Model

For contracts that have elected the Nationwide Lifetime Income Track option, Nationwide makes available as a permitted investment option the American Funds Option, which is a static asset allocation model comprised as follows: 33% NVIT - American Funds NVIT Asset Allocation Fund, 33% NVIT - American Funds NVIT Bond Fund, and 34% NVIT - American Funds NVIT Growth-Income Fund.

A Static Asset Allocation Model is an allocation strategy comprised of two or more underlying mutual funds that together provide a unique allocation mix not available as a single underlying mutual fund.  Contract Owners that elect a Static Asset Allocation Model directly own Sub-Account units of the underlying mutual funds that comprise the particular model.  In other words, a Static Asset Allocation Model is not a portfolio of underlying mutual funds with one Accumulation Unit value, but rather, direct investment in a certain allocation of Sub-Accounts.  There is no additional charge associated with investing in a Static Asset Allocation Model.

The Static Asset Allocation Model is just that: static.  The allocations or "split" between one or more Sub-Accounts is not monitored and adjusted to reflect changing market conditions.  However, a Contract Owner's investment in a Static Asset Allocation Model is rebalanced quarterly to ensure that the assets are allocated to the percentages in the same proportion that they were allocated at the time of election.  The entire Contract Value must be allocated to the elected model.

With respect to transferring into and out of a Static Asset Allocation Model, the model is treated like an underlying mutual fund and is subject to the "Transfers Prior to Annuitization" provision.  You may request to transfer from a model to a permitted underlying mutual fund.  Each transfer into or out of a Static Asset Allocation Model is considered one transfer event.

For additional information about the underlying mutual funds that comprise the Static Asset Allocation Model, see "Appendix A: Underlying Mutual Funds."

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 "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 (see "Annuity Payment Options"); or

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(3)   in any other manner permitted by law and approved by Nationwide.

Premium taxes may be deducted from death benefit proceeds.    Nationwide will pay (or will begin to pay) the death benefit after it receives proof of death and the instructions as to the payment of the death benefit.  Death benefit claims must be submitted to the Service Center.  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 provides Nationwide with all the information necessary to pay that beneficiary's portion of the death benefit proceeds.  At the time the first beneficiary’s proceeds are paid, the remaining portion(s) of the death benefit proceeds that are allocated to Sub-Accounts will be allocated to the available money market Sub-Account until instructions are received from the remaining beneficiary(ies).

Impact of Ownership Changes and Assignment on the Death Benefits

Where permitted under state law, if the Contract Owner is changed or if the contract is assigned (including a collateral assignment), the death benefit will be Contract Value on the date Nationwide receives proper proof of the Annuitant's death, an election specifying the distribution method, and any state required forms, except as follows:

(1)   The new Contract Owner or assignee assumes full ownership of the contract and is essentially the same person (e.g., individual ownership is changed to ownership by a personal revocable trust, a change to the Contract Owner's spouse during the Contract Owner's lifetime, a change to a court appointed guardian representing the Contract Owner during the Contract Owner's lifetime, etc.);

(2)   Ownership of a contract issued as an IRA or Roth IRA is being changed from one custodian to another, from the determining life to a custodian, or from a custodian to the determining life;

(3)   The assignment is for the purpose of effectuating an exchange pursuant to Section 1035 under the Internal Revenue Code; or

(4)   The change is merely the removal of a Contract Owner where the contract is jointly owned.

Contract Owners contemplating changes to the ownership of their contract, including assignments, should contact their registered representative to determine how the changes impact the death benefit.

Death Benefit Calculations

An applicant may elect either the standard death benefit or the available death benefit option that is offered 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 Nationwide receives:

(1)   proper proof of the Annuitant's death;

(2)   an election specifying the distribution method; and

(3)   any state required form(s).

Nationwide reserves the right to refuse purchase payments in excess of $1,000,000. If you do not submit purchase payments in excess of $1,000,000, or if Nationwide has refused to accept purchase payments in excess of $1,000,000, the references in this provision to purchase payments in excess of $1,000,000 will not apply to your contract.

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 greater of:

(1)   the Contract Value as of the date that Nationwide receives all the information necessary to pay the death benefit; or

(2)   the total of all purchase payments, less an adjustment for amounts withdrawn.

The adjustment for amounts withdrawn will reduce item (2) above in the same proportion that the Contract Value was reduced on the date(s) of the partial withdrawal(s).

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 greater of:

(1)   the Contract Value as of the date that Nationwide receives all the information necessary to pay the death benefit; or

(2)   the total of all purchase payments, less an adjustment for amounts withdrawn.

The adjustment for amounts withdrawn will reduce item (2) above in the same proportion that the Contract Value was reduced on the date(s) of the partial withdrawal(s).

B = 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.

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The standard death benefit also includes the Spousal Protection Feature, which allows a surviving spouse to continue the contract while receiving the economic benefit of the death benefit upon the death of the other spouse.

One-Year Enhanced Death Benefit Option

For an additional charge at an annualized rate of 0.20% 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 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)   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 withdrawn; or

(3)   the highest Contract Value on any Contract Anniversary prior to the Annuitant's 86th birthday, less an adjustment for amounts subsequently withdrawn, plus purchase payments received after that Contract Anniversary.

The adjustment for amounts withdrawn will reduce items (2) and (3) above in the same proportion that the Contract Value was reduced on the date(s) of the partial withdrawal(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, which would equal the standard death benefit.

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)   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 withdrawn; or

(3)   the highest Contract Value on any Contract Anniversary prior to the Annuitant's 86th birthday, less an adjustment for amounts subsequently withdrawn, plus purchase payments received after that Contract Anniversary.

The adjustment for amounts withdrawn will reduce items (2) and (3) above in the same proportion that the Contract Value was reduced on the date(s) of the partial withdrawal(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, which would equal the standard death benefit.

B = 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.

The One-Year Enhanced Death Benefit Option also includes the Spousal Protection Feature, which 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 Feature

The standard death benefit and the One-Year Enhanced Death Benefit Option include a Spousal Protection Feature at no additional charge.  The Spousal Protection Feature is not available for contracts issued as Charitable Remainder Trusts.  The Spousal Protection Feature allows 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 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;

 (2)   The spouses must be Co-Annuitants;

 (3)   (a)  Both spouses must be age 85 or younger at the time the contract is issued for the standard death benefit; and

(b)  Both spouses must be age 80 or younger at the time the contract is issued for the One-Year Enhanced Death Benefit Option;

 (4)   Both spouses must be named as beneficiaries;

 (5)   No person other than the spouse may be named as 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.  The new Co-Annuitant must meet the age requirement of the respective death benefit option on the date the Co-Annuitant is added.

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If a 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.

If the marriage of the Co-Annuitants terminates due to the death of a spouse, divorce, dissolution, or annulment, the Spousal Protection Feature terminates and the Contract Owner is not permitted to cover a subsequent spouse.

The Spousal Protection Feature may not apply if certain Contract Owner changes or assignments are made to the contract.  Contract Owners contemplating changes to the ownership of their contract, including assignments, should contact their registered representative to determine how the changes impact the Spousal Protection Feature.

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 70½ for all other contract types.

The Contract Owner may change the Annuity Commencement Date before annuitization.  This change must be submitted in writing to the Service Center 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 90th birthday (or the 90th birthday of the oldest Annuitant if there are joint annuitants) unless approved by Nationwide.

Annuity Commencement Date and the Nationwide Lifetime Income Track Option

If the Contract Owner elected the Nationwide Lifetime Income Track option, Nationwide will, approximately three months before the Annuity Commencement Date, notify the Contract Owner of the impending Annuity Commencement Date and give the Contract Owner the opportunity to defer the Annuity Commencement Date in order to preserve the benefit associated with the Nationwide Lifetime Income Track option.  Deferring the Annuity Commencement Date may have negative tax consequences (see "Nationwide Lifetime Income Track" and "Appendix C: Contract Types and Tax Information").  Consult a qualified tax advisor.

Annuitizing the Contract

Annuitization Date

The Annuitization Date is the date that annuity payments begin.  Annuity payments will not begin until the Contract Owner affirmatively elects to begin annuity payments by contacting the Service Center.  If the Contract Owner has elected the Nationwide Lifetime Income Track option, an election to begin annuity payments will terminate all benefits, conditions, guarantees, and charges associated with the Nationwide Lifetime Income Track option.

The Annuitization Date will be the first day of a calendar month unless otherwise agreed.  The Annuitization Date must be at least two 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.

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 Date (see "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.

Actual purchase rates used to determine annuity payments will be those in effect on the Annuitization Date.

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.

Variable Annuity Payments

Variable annuity payments will vary depending on the performance of the underlying mutual funds selected.  The underlying mutual funds available during annuitization are those underlying mutual funds shown in "Appendix A: Underlying Mutual Funds."  The Static Asset Allocation Model and Custom Portfolio Asset Rebalancing Service are not available after annuitization.

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;

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·   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 comprising each variable annuity payment, on a Sub-Account basis, 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 once per calendar year.

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; and then

(2)   multiplying the result from (1) by a factor to neutralize the assumed investment return factor.

The Net Investment Factor for any particular Sub-Account on or after the Annuitization Date 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 equal to an annualized rate of 0.40% of the Daily Net Assets of the Variable Account.

Based on the change in the Net Investment Factor, the value of an Annuity 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 Annuity Units will not change as a result of investment experience, the value of an Annuity Unit may increase or decrease from Valuation Period to Valuation Period.

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 $100.  The payment frequency will be changed to an interval that will result in payments of at least $100.

Nationwide will send annuity payments no later than seven days after each annuity payment date.

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 by that date, a variable payment 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.

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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.

Nationwide reserves the right to refuse purchase payments in excess of $1,000,000. If you do not submit purchase payments in excess of $1,000,000, or if Nationwide has refused to accept purchase payments in excess of $1,000,000, the references in this provision to purchase payments in excess of $1,000,000 will not apply to your contract.  If you are permitted to submit purchase payments in excess of $1,000,000, additional restrictions apply, as follows.

Annuity Payment Options for Contracts with Total Purchase Payments and Contract Value Annuitized Less Than or Equal to $2,000,000

If, at the Annuitization Date, the total of all purchase payments made to the contract and the Contract Value annuitized 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.  This option is not available if the Annuitant is 86 or older on the Annuitization Date.

Payments will cease with the last payment before the Annuitant's death.  For example, if the Annuitant dies before the second annuity payment date, the Annuitant will receive only one payment.  The Annuitant will only receive two annuity payments if he or she dies before the third payment date, and so on.  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.  This option is not available if the Annuitant or joint Annuitant is 86 or older on the Annuitization Date.

Payments will cease with the last payment due prior to the death of the last survivor of the Annuitant and joint annuitant.  As is the case of the Single Life annuity payment option, there is no guaranteed number of payments.  Therefore, it is possible that if the Annuitant dies before the second annuity payment date, the Annuitant will receive only one annuity payment.  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 and/or Contract Value Annuitized Greater Than $2,000,000

If, at the Annuitization Date, the total of all purchase payments made to the contract and/or the Contract Value to be annuitized 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.

Annuitization of Amounts Greater than $5,000,000

Additionally, we may 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 under this contract and/or for all Nationwide issued annuity contracts with the same Annuitant, the Contract Owner must:

(1) reduce the amount to be annuitized to $5,000,000 or less by taking a partial withdrawal from the contract;

(2) reduce the amount to be annuitized to $5,000,000 or less by exchanging the portion of the Contract Value in excess of $5,000,000 to another annuity contract; or

(3) annuitize the portion of the Contract Value in excess of $5,000,000 under an annuity payment option with a term certain, if available.

Statements and Reports

Nationwide will mail Contract Owners statements and reports.  Therefore, Contract Owners should promptly notify the Service Center of any address change.

These mailings will contain:

·   statements showing the contract's quarterly activity;

·   confirmation statements showing transactions that affect the contract's value.  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

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·   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 OWNER DOCUMENTS

When multiple copies of the same disclosure document(s), such as prospectuses, supplements, proxy statements and semi-annual and annual reports are required to be mailed to multiple Contract Owners in the same household, Nationwide will mail only one copy of each document, unless notified otherwise by the Contract Owner(s).  Household delivery will continue for the life of the contracts.

A Contract Owner can revoke their consent to household delivery and reinstitute individual delivery by contacting the Service Center.  Nationwide will reinstitute individual delivery within 30 days after receiving such notification.

Legal Proceedings

Nationwide Financial Services, Inc. (NFS, or collectively with its subsidiaries, "the Company") was formed in November 1996.  NFS is the holding company for Nationwide Life Insurance Company (NLIC), Nationwide Life and Annuity Insurance Company (NLAIC) and other companies that comprise the life insurance and retirement savings operations of the Nationwide group of companies (Nationwide). This group includes Nationwide Financial Network (NFN), an affiliated distribution network that markets directly to its customer base.  NFS is incorporated in Delaware and maintains its principal executive offices in Columbus, Ohio.

The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company’s legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates.  These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted.  Regulatory proceedings could also affect the outcome of one or more of the Company’s litigation matters.   Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty.  Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages.  In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period.  In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available.  The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company’s condensed consolidated financial position.  Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company’s condensed consolidated financial position or results of operations in a particular quarter or annual period.

The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the Internal Revenue Service ("IRS"), and state insurance authorities.  Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates.  The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with Nationwide Mutual Insurance Company (NMIC) insofar as any inquiry, examination or investigation encompasses NMIC's operations.

In October 2012, NLIC and NLAIC entered into a Regulatory Settlement Agreement with the Florida Office of Insurance Regulation and 21 other state Departments of Insurance to resolve a multi-state market conduct exam regarding claim settlement practices.  The Regulatory Settlement Agreement applies prospectively and requires NLIC and NLAIC to adopt and implement additional procedures relating to the use of to the Social Security Death Master File and identifying and locating beneficiaries once deaths are identified.  In October 2012, NLIC and NLAIC also entered into a Global Resolution Agreement to resolve the related unclaimed property audit.

Other jurisdictions may pursue similar investigations, examinations or inquires. The results of these investigations, examinations or inquiries could result in the payment or escheatment of unclaimed death benefits, and/or changes in the Company’s practices and procedures to its claims handling and escheat processes, all of which could impact claim payments and reserves and/or result in payment of investigation costs, fines or penalties.

On November 20, 2007, Nationwide Retirement Solutions, Inc. ("NRS") and NLIC were named in a lawsuit filed in the Circuit Court of Jefferson County, Alabama entitled Ruth A. Gwin and Sandra H. Turner, and a class of similarly situated individuals v Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc., Alabama State Employees Association, PEBCO, Inc. and Fictitious

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Defendants A to Z. On March 12, 2010, NRS and NLIC were named in a Second Amended Class Action Complaint filed in the Circuit Court of Jefferson County, Alabama entitled Steven E. Coker, Sandra H. Turner, David N. Lichtenstein and a class of similarly situated individuals v. Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc, Alabama State Employees Association, Inc., PEBCO, Inc. and Fictitious Defendants A to Z claiming to represent a class of all participants in the Alabama State Employees Association, Inc. ("ASEA") Plan, excluding members of the Deferred Compensation Committee, ASEA's directors, officers and board members, and PEBCO's directors, officers and board members. On October 22, 2010, the parties to this action executed a court approved stipulation of settlement that agreed to certify a class for settlement purposes only, that provided for payments to the settlement class, and that provided for releases, certain bar orders, and dismissal of the case. The settlement fund has been paid out. On December 6, 2011 the Court entered an Order that NRS owes indemnification to ASEA and PEBCO for only the Coker (Gwin) class action, and dismissed NLIC. The Company has resolved the indemnification claims of ASEA.   On February 15, 2013, the Court issued its Order determining the amount of fees due to PEBCO on its indemnification claim. The Company has until March 29, 2013, to file a notice of appeal. NRS continues to defend this case vigorously.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the U.S. 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. In the plaintiffs' sixth amended complaint, filed November 18, 2009, they amended the list of named plaintiffs and claim to represent a class of qualified retirement plan trustees under Employee Retirement Income Security Act of 1974 ("ERISA") that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys' fees. On November 6, 2009, the Court granted the plaintiff's motion for class certification and certified a class of "All trustees of all employee pension benefit plans covered by ERISA which had variable annuity contracts with NFS and NLIC or whose participants had individual variable annuity contracts with NFS and NLIC at any time from January 1, 1996, or the first date NFS and NLIC began receiving payments from mutual funds based on a percentage of assets invested in the funds by NFS and NLIC, whichever came first, to the date of November 6, 2009". On October 21, 2010, the District Court dismissed NFS from the lawsuit. On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. The plaintiffs have renewed their motion for class certification.  On December 18, 2012, the District Court heard oral argument on the motion for class certification.  NLIC continues to defend this lawsuit vigorously.

On June 8, 2011, NMIC and NLIC were named in a lawsuit filed in Court of Common Pleas, Cuyahoga County, Ohio entitled Stanley Andrews and Donald Clark, on their behalf and on behalf of the class defined herein v. Nationwide Mutual Insurance Company and Nationwide Life Insurance Company.  Lower court granted Nationwide’s motion to dismiss. Plaintiffs appealed. The Court of Appeals affirmed the dismissal on October 24, 2012. Plaintiffs filed a petition for rehearing en banc on November 5, 2012. The Court of Appeals denied the petition for rehearing en banc on December 14 , 2012.   Plaintiff filed a notice of appeal to the Ohio Supreme Court on January 24, 2013.  Nationwide filed its memorandum in opposition to plaintiffs' petition for jurisdiction to the Ohio Supreme Court on February 27, 2013.  NMIC and NLIC continue to defend their lawsuit vigorously.

In 2012, NMIC and NLIC were named in a class action filed in the United States Bankruptcy Court for the Southern District of New York entitled Lehman Brothers Holdings, Inc. (Debtors) and James Giddens v. NLIC and NMIC, et al. The plaintiff, Debtor in Possession Lehman Brothers Special Financing, Inc., seeks to recover nearly $3 billion in assets from all the named defendants including NLIC and NMIC.  This litigation arises from two credit default transactions, 801 Grand and Alta, which resulted in payments to NLIC and NMIC. In 2008 the plaintiff and its parent company, Lehman Brothers Holding, Inc., filed for bankruptcy which triggered an early termination of the above transactions.  The plaintiff seeks to have sums returned to the bankruptcy estate in addition to prejudgment interest and costs. The case is currently stayed and answers of defendants are due on September 5, 2013.  Lehman recently sent correspondence to all defendants inviting settlement discussions which is under review.

The general distributor, NISC, is not engaged in any litigation of any material nature.

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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	2
Annuity Payments	2
Condensed Financial Information	2
Financial Statements	3

Investment Company Act of 1940 Registration File No. 811-03330

Securities Act of 1933 Registration File No. 333-182494

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Appendix A: Underlying Mutual Funds

Below is a list of the available Sub-Accounts and information about the corresponding underlying mutual funds in which they invest.  The underlying mutual funds in which the Sub-Accounts invest are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies.  There is no guarantee that the investment objectives will be met.  Please refer to the prospectus for each underlying mutual fund for more detailed information.

Designations Key:

STTF: The underlying mutual fund corresponding to this Sub-Account assesses (or reserves the right to assess) a short-term trading fee (see "Short-Term Trading Fees").

FF: The underlying mutual fund corresponding to this Sub-Account primarily invests in other mutual funds.  Therefore, a proportionate share of the fees and expenses of any acquired funds are indirectly borne by investors.  As a result, investors in this Sub-Account may incur higher charges than if the assets were invested in an underlying mutual fund that does not invest in other mutual funds.  Please refer to the prospectus for this underlying mutual fund for more information.

AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein Small/Mid Cap Value Portfolio: Class A

Investment Advisor:	AllianceBernstein L.P.
Investment Objective:	Long-term growth of capital.

AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Dynamic Asset Allocation Portfolio: Class A

Investment Advisor:	AllianceBernstein L.P.
Investment Objective:	To maximize total return consistent with the Adviser’s determination of reasonable risk.

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

Investment Advisor:	American Century Investment Management, Inc.
Investment Objective:	The fund pursues long-term total return using a strategy that seeks to protect against U.S. inflation.

American Century Variable Portfolios, Inc. - American Century VP Mid Cap Value Fund: Class I

Investment Advisor:	American Century Investment Management, Inc.
Investment Objective:	Long-term capital growth with income as a secondary objective.

American Funds Insurance Series® - Protected Asset Allocation Fund: Class P2

Investment Advisor:	Capital Research and Management Company
Sub-advisor:	Milliman Financial Risk Management LLC
Investment Objective:	To provide high total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility.

BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III

Investment Advisor:	BlackRock Advisors, LLC
Sub-advisor:	BlackRock Investment Management, LLC; BlackRock International Limited
Investment Objective:	Seeks high total investment return.

Delaware Variable Insurance Product Trust - Delaware VIP Small Cap Value Series: Service Class

Investment Advisor:	Delaware Management Company, Inc.
Investment Objective:	Seeks long-term capital appreciation.

Dreyfus Variable Investment Fund - Appreciation Portfolio: Service Shares

Investment Advisor:	The Dreyfus Corporation
Sub-advisor:	Fayez Sarofim & Co.
Investment Objective:	Long-term capital growth consistent with the preservation of capital.

Eaton Vance Variable Trust - Eaton Vance VT Floating-Rate Income Fund

Investment Advisor:	Eaton Vance Management
Investment Objective:	The fund seeks to provide a high level of current income.

Fidelity Variable Insurance Products Fund - VIP Energy Portfolio: Service Class 2

Investment Advisor:	Fidelity Management & Research Company
Sub-advisor:	FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective:	Capital appreciation.

Designation: STTF

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Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2

Investment Advisor:	Fidelity Management & Research Company
Sub-advisor:	FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited, Fidelity Investments Japan Limited
Investment Objective:	Capital appreciation.

Fidelity Variable Insurance Products Fund - VIP Investment Grade Bond Portfolio: Service Class 2

Investment Advisor:	Fidelity Management & Research Company
Sub-advisor:	Fidelity Investments Money Management, Inc., Fidelity Research & Analysis Company, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective:	High level of current income.

Fidelity Variable Insurance Products Fund - VIP Mid Cap Portfolio: Service Class 2

Investment Advisor:	Fidelity Management & Research Company
Sub-advisor:	FMR Co., Inc., Fidelity Management & Research (U.K.) Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective:	Long-term growth of capital.

Fidelity Variable Insurance Products Fund - VIP Real Estate Portfolio: Service Class 2

Investment Advisor:                                                  Fidelity Management & Research Company

Sub-advisor:	FMR Co., Inc., Fidelity Research & Analysis Company
Investment Objective:	The fund seeks above-average income and long-term capital growth, consistent with reasonable investment risk.

Franklin Templeton Variable Insurance Products Trust - Franklin High Income Securities Fund: Class 2

Investment Advisor:	Franklin Advisers, Inc.
Investment Objective:	To earn a high level of current income.

Franklin Templeton Variable Insurance Products Trust - Franklin Income Securities Fund: Class 2

Investment Advisor:	Franklin Advisers, Inc.
Investment Objective:	Maximum income while maintaining prospects for capital appreciation.

Franklin Templeton Variable Insurance Products Trust - Franklin Strategic Income Securities Fund: Class 2

Investment Advisor:	Franklin Advisers, Inc.
Investment Objective:	High level of current income.

Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2

Investment Advisor:	Franklin Templeton Services, LLC
Investment Objective:	Capital appreciation with income as a secondary goal.

Designation: FF

Franklin Templeton Variable Insurance Products Trust - Mutual Global Discovery Securities Fund: Class 2

Investment Advisor:	Franklin Mutual Advisers, LLC
Investment Objective:	Capital appreciation.

Franklin Templeton Variable Insurance Products Trust - Templeton Global Bond Securities Fund: Class 2

Investment Advisor:	Franklin Advisers, Inc.
Investment Objective:	High current income, consistent with preservation of capital, with capital appreciation as a secondary consideration.

Goldman Sachs Variable Insurance Trust - Goldman Sachs Global Markets Navigator Fund: Service Shares

Investment Advisor:	Goldman Sachs Asset Management, L.P.
Investment Objective:	Seeks to achieve investment results that approximate the performance of the GS Global Markets Navigator Index (the “Index”).

Goldman Sachs Variable Insurance Trust - Goldman Sachs Structured Small Cap Equity Fund: Service Shares

Investment Advisor:	Goldman Sachs Asset Management, L.P.
Investment Objective:	Long-term growth of capital.

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Guggenheim Variable Fund - Multi-Hedge Strategies

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation consistent with the return and risk characteristics of the hedge fund universe and, secondarily, to achieve these returns with low correlation to and less volatility than equity indices.

Huntington VA Funds - Huntington VA International Equity Fund

Investment Advisor:	Huntington Asset Advisors, Inc.
Investment Objective:	Seeks total return on its assets.

Huntington VA Funds - Huntington VA Situs Fund

Investment Advisor:	Huntington Asset Advisors, Inc.
Investment Objective:	Seeks long-term capital appreciation.

Invesco - Invesco V.I. Balanced-Risk Allocation Fund: Series I Shares

Investment Advisor:	Invesco Advisers, Inc.
Investment Objective:	Total return.

Ivy Funds Variable Insurance Portfolios - Asset Strategy

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	Seeks high total return over the long term.

Ivy Funds Variable Insurance Portfolios - High Income

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	Seeks a high level of current income and capital when consistent with its primary objective as a secondary objective.

Ivy Funds Variable Insurance Portfolios - Mid Cap Growth

Investment Advisor:	Waddell & Reed Investment Management Company
Sub-advisor:	Wall Street Associates LLC
Investment Objective:	Seeks long-term capital appreciation.

Ivy Funds Variable Insurance Portfolios - Pathfinder Aggressive

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	Seeks maximum growth of capital consistent with a more aggressive level of risk.

Designation: FF

Ivy Funds Variable Insurance Portfolios - Pathfinder Conservative

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	Seeks a high level of total return consistent with a conservative level of risk.

Designation: FF

Ivy Funds Variable Insurance Portfolios - Pathfinder Moderate

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	The fund seeks a high level of total return consistent with a moderate level of risk.

Designation: FF

Ivy Funds Variable Insurance Portfolios - Pathfinder Moderately Aggressive

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	The fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk.

Designation: FF

Ivy Funds Variable Insurance Portfolios - Pathfinder Moderately Conservative

Investment Advisor:	Waddell & Reed Investment Management Company
Investment Objective:	The fund seeks a high level of total return consistent with a moderately conservative level of risk.

Designation: FF

Janus Aspen Series - Enterprise Portfolio: Service Shares

Investment Advisor:	Janus Capital Management LLC
Investment Objective:	Long-term growth of capital.

Janus Aspen Series - Forty Portfolio: Service Shares

Investment Advisor:	Janus Capital Management LLC
Investment Objective:	Long-term growth of capital.

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Janus Aspen Series - Global Technology Portfolio: Service Shares

Investment Advisor:	Janus Capital Management LLC
Investment Objective:	Long-term growth of capital.

Lazard Retirement Series, Inc. - Lazard Retirement Emerging Markets Equity Portfolio: Service Shares

Investment Advisor:	Lazard Asset Management LLC
Investment Objective:	Long-term capital appreciation.

MFS® Variable Insurance Trust - MFS New Discovery Series: Service Class

Investment Advisor:	Massachusetts Financial Services Company
Investment Objective:	To seek capital appreciation.

MFS® Variable Insurance Trust - MFS Utilities Series: Service Class

Investment Advisor:	Massachusetts Financial Services Company
Investment Objective:	To seek total return

MFS® Variable Insurance Trust - MFS Value Series: Service Class

Investment Advisor:	Massachusetts Financial Services Company
Investment Objective:	To seek capital appreciation.

MFS® Variable Insurance Trust II - MFS International Value Portfolio: Service Class

Investment Advisor:	Massachusetts Financial Services Company
Investment Objective:	The fund’s investment objective is to seek capital appreciation.  MFS normally invests the fund’s assets primarily in foreign equity securities, including emergingmarket equity securities.

Nationwide Variable Insurance Trust - American Century NVIT Growth Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	American Century Investment Management, Inc.
Investment Objective:	The Fund seeks long-term capital appreciation.

Nationwide Variable Insurance Trust - American Century NVIT Multi Cap Value Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	American Century Investment Management, Inc.
Investment Objective:	The Fund seeks capital appreciation, and secondarily current income.

Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II

Investment Advisor:	Capital Research and Management Company
Investment Objective:	The fund seeks to provide high total return (including income and capital gains) consistent with the preservation of capital over the long term.

Nationwide Variable Insurance Trust - American Funds NVIT Bond Fund: Class II

Investment Advisor:	Capital Research and Management Company
Investment Objective:	The Fund seeks to maximize an investors level of current income and preserve the investor's capital.

Nationwide Variable Insurance Trust - American Funds NVIT Global Growth Fund: Class II

Investment Advisor:	Capital Research and Management Company
Investment Objective:	The Fund is designed for investors seeking capital appreciation through stocks.

Nationwide Variable Insurance Trust - American Funds NVIT Growth Fund: Class II

Investment Advisor:	Capital Research and Management Company
Investment Objective:	The Fund is designed for investors seeking capital appreciation principally through investment in stocks.

Nationwide Variable Insurance Trust - American Funds NVIT Growth-Income Fund: Class II

Investment Advisor:	Capital Research and Management Company
Investment Objective:	The fund seeks returns from both capital gains as well as income generated by dividends paid by stock issuers.

Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Federated Investment Management Company
Investment Objective:	The Fund seeks to provide high current income.

Designation: STTF

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Nationwide Variable Insurance Trust - Loring Ward NVIT Capital Appreciation Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	LWI Financial Inc.
Investment Objective:	Seeks primarily to provide growth of capital, and secondarily current income.

Designation: FF

Nationwide Variable Insurance Trust - Loring Ward NVIT Moderate Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	LWI Financial Inc.
Investment Objective:	Seeks a high level of total return consistent with a moderate level of risk.

Designation: FF

Nationwide Variable Insurance Trust - Neuberger Berman NVIT Socially Responsible Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Neuberger Berman Management LLC
Investment Objective:	The Fund seeks long-term total return by investing primarily in securities of companies that meet the fund's financial criteria and social policy.

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Cardinal Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Fund seeks a high level of total return through investment in both equity and fixed income securities.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other Cardinal Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Cardinal Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Cardinal Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Cardinal Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The fund seeks a high level of total return consistent with a moderately conservative level of risk.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Neuberger Berman Fixed Income LLC
Investment Objective:	The Fund seeks long-term total return consistent with reasonable risk.

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Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	The Boston Company Asset Management, LLC
Investment Objective:	The Fund seeks long-term capital growth by investing primarily in equity securities of companies located in emerging market countries.

Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Nationwide Asset Management, LLC
Investment Objective:	The fund seeks as high level of income as is consistent with the preserving of capital.

Nationwide Variable Insurance Trust - NVIT International Equity Fund: Class I

Investment Advisor:                                                       Nationwide Fund Advisors

Sub-advisor:	Invesco Advisers, Inc.
Investment Objective:	The Fund seeks long-term capital growth by investing primarily in equity securities of companies in Europe, Australasia, the Far East and other regions, including developing countries.

Nationwide Variable Insurance Trust - NVIT International Index Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	BlackRock Investment Management, LLC
Investment Objective:	The Fund seeks 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.

Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Aggressive Fund seeks maximum growth of capital consistent with a more aggressive level of risk as compared to other Investor Destinations Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Balanced Fund seeks a high level of total return through investment in both equity and fixed-income securities.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Capital Appreciation Fund seeks growth of capital, but also seeks income consistent with a less aggressive level of risk as compared to other NVIT Investor Destinations Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Conservative Fund seeks a high level of total return consistent with a conservative level of risk as compared to other Investor Destinations Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Moderate Fund seeks a high level of total return consistent with a moderate level of risk as compared to other Investor Destinations Funds.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Moderately Aggressive Fund seeks growth of capital, but also seeks income consistent with a moderately aggressive level of risk as compared to other Investor Destinations Funds.

Designation: FF

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Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Investment Objective:	The NVIT Investor Destinations Moderately Conservative Fund seeks a high level of total return consistent with a moderately conservative level of risk.

Designation: FF

Nationwide Variable Insurance Trust - NVIT Mid Cap Index Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	BlackRock Investment Management, LLC
Investment Objective:	The Fund seeks capital appreciation.

Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Federated Investment Management Company
Investment Objective:	The Fund seeks as high a level of current income as is consistent with preserving capital and maintaining liquidity.

Nationwide Variable Insurance Trust - NVIT Multi Sector Bond Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Logan Circle Partners, L.P.
Investment Objective:	The Fund seeks to provide above average total return over a market cycle of three to five years.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Winslow Capital Management, Inc.; Neuberger Berman Management Inc. and Wells Capital Management, Inc.;
Investment Objective:	The fund seeks long-term capital growth.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Goldman Sachs Asset Management, L.P.; Wellington Management Company, LLP; The Boston Company Asset Management, LLC
Investment Objective:	The fund seeks long-term capital growth.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Neuberger Berman Management LLC; Wells Capital Management, Inc.
Investment Objective:	The fund seeks long-term capital growth.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	American Century Investment Management, Inc.; Columbia Management Investment Advisers, LLC; Thompson, Siegel & Walmsley LLC
Investment Objective:	The fund seeks long-term capital appreciation.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Aberdeen Asset Management, Inc.; Epoch Investment Partners, Inc.; J.P. Morgan Investment Management Inc.
Investment Objective:	The Fund seeks capital appreciation.

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Aberdeen Asset Management, Inc.; Morgan Stanley Investment Management; Neuberger Berman Management, Inc.; Putnam Investment Management, LLC; and Waddell & Reed Investment Management Company
Investment Objective:	The Fund seeks capital appreciation.

Nationwide Variable Insurance Trust - NVIT Real Estate Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Morgan Stanley Investment Management, Inc.
Investment Objective:	The Fund seeks current income and long-term capital appreciation.

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Nationwide Variable Insurance Trust - NVIT S&P 500 Index Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	BlackRock Investment Management, LLC
Investment Objective:	Long-term capital appreciation.

Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Nationwide Asset Management, LLC
Investment Objective:	The Fund seeks to provide a high level of current income while preserving capitaland minimizing fluctuations in share value.

Nationwide Variable Insurance Trust - NVIT Small Cap Index Fund: Class II

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	BlackRock Investment Management, LLC
Investment Objective:	The Fund seeks to match the performance of the Russell 2000® Index.

Nationwide Variable Insurance Trust - Templeton NVIT International Value Fund: Class III

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Templeton Investment Counsel, LLC
Investment Objective:	The Fund seeks to maximize total return consisting of capital appreciation and/orcurrent income.

Designation: STTF

Nationwide Variable Insurance Trust - Van Kampen NVIT Comstock Value Fund: Class I

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Invesco Advisers, Inc.
Investment Objective:	The Fund’s investment objective is to seek capital growth and income through investments in equity securities, including common stocks, preferred stocks, and convertible securities.

Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA: Non-Service Shares

Investment Advisor:	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 possibilities.

Oppenheimer Variable Account Funds - Oppenheimer International Growth Fund/VA: Non-Service Shares

Investment Advisor:	OppenheimerFunds, Inc.
Investment Objective:	The Fund seeks long-term capital appreciation.

Oppenheimer Variable Account Funds - Oppenheimer Main Street Fund®/VA: Non-Service Shares

Investment Advisor:	OppenheimerFunds, Inc.
Investment Objective:	High total return which includes growth in the value of its shares as well as current income from equity and debt securities.

PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Sub-advisor:	Research Affiliates
Investment Objective:	The fund seeks maximum real return, consistent with preservation of real capital and prudent investment management.

Designation: FF

PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	The fund seeks maximum real return.

PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	Seeks maximum total return consistent with preservation of capital and prudent investment management.

PIMCO Variable Insurance Trust - Foreign Bond Portfolio (U.S. Dollar-Hedged): Administrative Class

Investment Advisor:	PIMCO
Investment Objective:	The Portfolio seeks maximum total return, consistent with preservation of capital and prudent investment management.

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PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	Seeks maximum total return consistent with preservation of capital and prudent investment management.

PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	Seeks maximum total return consistent with preservation of capital and prudent investment management.

PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	Seeks maximum total return, consistent with preservation of capital and prudent investment management.

PIMCO Variable Insurance Trust - Real Return Portfolio: Advisor Class

Investment Advisor:	PIMCO
Investment Objective:	The Portfolio seeks maximum real return, consistent with preservation of real capital and prudent investment management.

PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class

Investment Advisor:	Pacific Investment Management Company LLC
Investment Objective:	The fund seeks maximum total return, consistent with preservation of capital and prudent investment management.

Royce Capital Fund - Royce Small-Cap Portfolio: Investment Class

Investment Advisor:	Royce & Associates, LLC
Investment Objective:	Long-term capital growth.

T. Rowe Price Equity Series, Inc. - T. Rowe Price Health Sciences Portfolio: II

Investment Advisor:	T. Rowe Price Investment Services
Investment Objective:	Long-term capital appreciation.

The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II

Investment Advisor:	Morgan Stanley Investment Management Inc.
Investment Objective:	High total return by investing primarily in fixed income securities of government and government-related issuers and, to a lesser extent, of corporate issuers in emerging market countries.

The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II

Investment Advisor:	Morgan Stanley Investment Management Inc.
Investment Objective:	The Portfolio seeks to provide current income and capital appreciation.

Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Service Class

Investment Advisor:	Van Eck Associates Corporation
Investment Objective:	Long-term capital appreciation by investing primarily in hard asset securities.  Income is a secondary consideration.

Wells Fargo Advantage Variable Trust - Wells Fargo Advantage VT Small Cap Growth Fund: Class 2

Investment Advisor:	Wells Fargo Funds Management, LLC
Sub-advisor:	Wells Capital Management Inc.
Investment Objective:	Long-term capital appreciation.

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Appendix B: Condensed Financial Information

Because the contracts described in this prospectus have not been previously made available for sale, there are no Accumulation Unit values for the year ending December 31, 2012 .  The Statement of Additional Information is available FREE OF CHARGE by contacting the Service Center.

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Appendix C: Contract Types and Tax Information

The contracts described in this prospectus are classified according to the tax treatment to which they are subject under the Internal Revenue Code (the "Code").  Following is a general description of the various contract types.  Eligibility requirements, tax benefits (if any), limitations, and other features of the contracts will differ depending on contract type.

Non-Qualified Contracts

A non-qualified contract is a contract that does not qualify for certain tax benefits under the Code, and which is not an IRA, a Roth IRA, a SEP IRA, or a Simple IRA.

Upon the death of the owner of a non-qualified contract, mandatory distribution requirements are imposed to ensure distribution of the entire balance in the contract within a required period.

Non-qualified contracts that are owned by natural persons allow the deferral of taxation on the income earned in the contract until it is distributed or deemed to be distributed.  Non-qualified contracts that are owned by non-natural persons, such as trusts, corporations and partnerships are generally subject to current income tax on the income earned inside the contract, unless the non-natural person owns the contract as an "agent" of a natural person.

Charitable Remainder Trusts

Charitable remainder trusts are trusts that meet the requirements of Section 664 of the Code.  Non-qualified contracts that are issued to charitable remainder trusts will differ from other non-qualified contracts in two respects:

(1)   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.

(2)   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.

Individual Retirement Annuities (IRAs)

IRAs are contracts that satisfy the provisions of Section 408(b) of the Code, including the following requirements:

·   the contract is not transferable by the owner;

·   the premiums are not fixed;

·   if the contract owner is younger than age 50, the annual premium cannot exceed $5,000; if the contract owner is age 50 or older, the annual premium cannot exceed $6,000 (although rollovers of greater amounts from qualified plans and other IRAs can be received);

·   certain minimum distribution requirements must be satisfied after the owner attains the age of 70½;

·   the entire interest of the owner in the contract is nonforfeitable; and

·   after the death of the owner, additional distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.

Depending on the circumstance of the owner, all or a portion of the contributions made to the account may be deducted for federal income tax purposes.

IRAs may receive rollover contributions from other Individual Retirement Accounts, other Individual Retirement Annuities, certain 457 governmental plans and qualified retirement plans (including 401(k) plans).

When the owner of an IRA attains the age of 70½, the Code requires that certain minimum distributions be made.  In addition, upon the death of the owner of an IRA, mandatory distribution requirements are imposed by the Code to ensure distribution of the entire contract value within the required statutory period.  Due to recent changes in Treasury Regulations, the amount used to compute the mandatory distributions may exceed the contract value.

Failure to make the mandatory distributions can result in an additional penalty tax of 50% of the excess of the amount required to be distributed over the amount that was actually distributed.

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For further details regarding IRAs, please refer to the disclosure statement provided when the IRA was established and the annuity contract's IRA endorsement.

As used herein, the term "individual retirement plans" shall refer to both individual retirement annuities and individual retirement accounts that are described in Section 408 of the Code.

Roth IRAs

Roth IRA contracts are contracts that satisfy the provisions of Section 408A of the Code, including the following requirements:

·   the contract is not transferable by the owner;

·   the premiums are not fixed;

·   if the contract owner is younger than age 50, the annual premium cannot exceed $5,000; if the contract owner is age 50 or older, the annual premium cannot exceed $6,000 (although rollovers of greater amounts from other Roth IRAs and other individual retirement plans can be received);

·   the entire interest of the owner in the contract is nonforfeitable; and

·   after the death of the owner, certain distribution requirements may be imposed to ensure distribution of the entire balance in the contract within the statutory period of time.

A Roth IRA can receive a rollover from an individual retirement plan or another eligible retirement plan; however, the amount rolled over from the individual retirement plan or other eligible retirement plan to the Roth IRA is required to be included in the owner's federal gross income at the time of the rollover, and will be subject to federal income tax.

There are income limitations on eligibility to participate in a Roth IRA and additional income limitations for eligibility to roll over amounts from an individual retirement plan or other eligible retirement plan to a Roth IRA.

For further details regarding Roth IRAs, please refer to the disclosure statement provided when the Roth IRA was established and the annuity contract's IRA endorsement.

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 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 15th of the following year.

When the owner of a SEP IRA attains the age of 70½, the Code requires that certain minimum distributions be made.  Due to recent changes in Treasury Regulations, the amount used to compute the minimum distributions may exceed the contract value.  In addition, upon the death of the owner of a SEP IRA, mandatory distribution requirements are imposed by the Code to ensure distribution of the entire contract value within the required statutory period.

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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 other individual retirement plans 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 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 Code to ensure distribution of the entire contract value within the required statutory period.

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.

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 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 and 408(a), of the Code), tax advantages enjoyed by the contract owner and/or annuitant may relate to participation in the plan rather than ownership of the annuity contract.  Such plans are permitted to purchase investments other than annuities and retain tax-deferred status.

The following is a brief summary of some of the federal income tax considerations related to the types of contracts sold in connection with this prospectus.  In addition to the federal income tax, distributions from annuity contracts may be subject to state and local income taxes.  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.  Purchasers and prospective purchases of the contract should consult a financial consultant, tax adviser or legal counsel to discuss the taxation and use of the contracts.

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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 amounts contributed to the individual retirement annuity were non-deductible for federal income tax purposes, then a portion of each distribution is excludable from income.

If distributions of income from an IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to the regular income tax, and an additional penalty tax of 10% is generally applicable.  (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 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 non-taxable depending upon whether they are "qualified distributions" or "non-qualified distributions."  A "qualified distribution" satisfies the 5-year rule and meets 1 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 5-year rule generally is satisfied if the distribution is not made within the 5-year period beginning with the first taxable year in which a contribution is made to any Roth IRA established for the owner.

A qualified distribution is not included in gross income for federal income tax purposes.

A non-qualified distribution is not includable in gross income to the extent that the distribution, when added to all previous distributions, does not exceed the total amount of contributions made to the Roth IRA.  Any non-qualified distribution in excess of total contributions is includable in the contract owner’s gross income as ordinary income in the year that it is distributed to the contract owner.

Special rules apply for Roth IRAs that have proceeds received from an individual retirement plan prior to January 1, 1999 if the owner elected the special 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 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.

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Non-Qualified Contracts - Natural Persons as Contract Owners

Generally, the income earned inside a non-qualified annuity contract that is owned by a natural person is not taxable until it is distributed from the contract.

Distributions before the annuitization date are taxable to the contract owner to the extent that the cash value of the contract exceeds the contract owner’s investment in the contract at the time of the distribution.  In general, the investment in the contract is equal to the purchase payments made with after-tax dollars.  Distributions, for this purpose, include full and partial withdrawals, any portion of the contract that is assigned or pledged, amounts borrowed from the contract, or any portion of the contract that is transferred by gift.  For these purposes, a transfer by gift may occur upon annuitization if the contract owner and the annuitant are not the same individual.

With respect to annuity distributions on or after the annuitization date, a portion of each annuity payment is excludable from taxable income.  The amount excludable from each annuity payment is determined by multiplying the annuity payment by a fraction which is equal to the contract owner’s investment in the contract, divided by the expected return on the contract.  Once the entire investment in the contract is recovered, all distributions are fully includable in income.  The maximum amount excludable from income is the investment in the contract.  If the annuitant dies before the entire investment in the contract has been excluded from income, and as a result of the annuitant's death no more payments are due under the contract, then the unrecovered investment in the contract may be deducted on his or her final tax return.

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 1 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 Code imposes a penalty tax if a distribution is made before the contract ownerreaches age 59½.  The amount of the penalty is 10% of the portion of any distribution that is includable in gross income.  The penalty tax does not apply if the distribution is:

·   the result of a contract owner’s death;

·   the result of a contract owner’s disability (as defined in the Code);

·   one of a series of substantially equal periodic payments made over the life (or life expectancy) of the contract owner or the joint lives (or joint life expectancies) of the contract owner and the beneficiary selected by the contract owner to receive payment under the annuity payment option selected by the contract owner; or

·   is allocable to an investment in the contract before August 14, 1982.

If the contract owner dies before the contract is completely distributed, the balance will be included in the contract owner’s gross estate for tax purposes.

Non-Qualified Contracts - Non-Natural Persons as Contract Owners

The previous discussion related to the taxation of non-qualified contracts owned by individuals.  Different rules (the so-called "non-natural persons" rules) apply if the contract owner is not a natural person.

Generally, contracts owned by corporations, partnerships, trusts, and similar entities are not treated as annuity contracts under the Code.  Therefore, income earned under a non-qualified contract that is owned by a non-natural person is taxed as ordinary income during the taxable year 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 non-natural persons rule, a contract that is owned by a non-natural person as an agent of an individual is treated as owned by the individual.  This would cause the contract to be treated as an annuity under the Code, allowing tax deferral.  However, this exception does not apply when the non-natural person is an employer that holds the contract under a non-qualified deferred compensation arrangement for one or more employees.

The non-natural persons rules also do not apply to contracts that are:

·   acquired by the estate of a decedent by reason of the death of the decedent;

·   issued in connection with certain qualified retirement plans and individual retirement plans;

·   purchased by an employer upon the termination of certain qualified retirement plans; or

·   immediate annuities within the meaning of Section 72(u) of the Code.

If the annuitant dies before the contract is completely distributed, the balance may be included in the annuitant's gross estate for tax purposes, depending on the obligations that the non-natural owner may have owed to the annuitant.

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Exchanges

As a general rule, federal income tax law treats exchanges of property in the same manner as a sale of the property.  However, pursuant to Section 1035 of the Code, an annuity contract may be exchanged tax-free for another annuity, provided that the obligee (the person to whom the annuity obligation is owed) is the same for both contracts.  If the exchange includes the receipt of property in addition to another annuity contract, such as cash, special rules may cause a portion of the transaction to be taxable.

Tax Treatment of a Partial 1035 Exchange With Subsequent Withdrawal

In March 2008, the IRS issued Rev. Proc. 2008-24, which addresses the income tax consequences of the direct transfer of a portion of the cash value of an annuity contract in exchange for the issuance of a second annuity contract.  A direct transfer that satisfies the revenue procedure will be treated as a tax-free exchange under Section 1035 of the Code if, for a period of at least 12 months from the date of the direct transfer, there are no distributions or withdrawals from either annuity contract involved in the exchange.  In addition, the tax-free status of the exchange may still be preserved despite a distribution or withdrawal from either contract if the contract owner can show that between the date of the direct transfer and the distribution or withdrawal, one of the conditions described under Section 72(q)(2) of the Code that would exempt the distribution from the 10% early distribution penalty (such as turning age 59½, or becoming disabled; but not a series of substantially equal periodic payments or an immediate annuity) or "other similar life event" such as divorce or loss of employment occurred.  Absent a showing of such an occurrence, Rev. Proc. 2008-24 concludes that the direct transfer would fail to qualify as a tax-free 1035 exchange, and the full amount transferred from the original contract would be treated as a taxable distribution, followed by the purchase of a new annuity contract.  Rev. Proc. 2008-24 applies to direct transfers completed on or after June 30, 2008.  Please discuss any tax consequences concerning any contemplated or completed transactions with a professional tax adviser.

Taxation of Lifetime Withdrawals Under the Nationwide Lifetime Income Track Option

While the tax treatment for withdrawals for benefits such as the Nationwide Lifetime Income Track option is not clear under federal tax law, Nationwide intends to treat withdrawals under these options as taxable to the extent that the cash value of the contract exceeds the contract owner's investment at the time of the withdrawal.  Specifically, we intend to treat the following amount of each withdrawal as a taxable distribution:

The greater of:

(1)   A – C; or

(2)   B – C,

Where

A = the contract value immediately before the withdrawal;

B = the guaranteed Lifetime Withdrawal Amount immediately before the withdrawal; and

C = 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 such a withdrawal.  If you subsequently withdrawal your contract under such circumstances, you would have a loss that may be deductible.  If you purchase one of these options in an IRA, withdrawals in excess of the Lifetime Withdrawal Amount may be required to satisfy the minimum distribution requirements under the Code.  Please consult a qualified tax adviser.

Same-Sex Marriages, Domestic Partnership, and Other Similar Relationships

Pursuant to Section 3 of the federal Defense of Marriage Act ("DOMA"), same-sex marriages currently are not recognized for purposes of federal law.  Therefore, the favorable income-deferral options afforded by federal tax law to an opposite-sex spouse under Code Sections 72(s) and 401(a)(9) are currently NOT available to a same-sex spouse.  Same-sex spouses who own or are considering the purchase of annuity products that provide benefits based upon status as a spouse should consult a tax advisor.  To the extent that an annuity contract or certificate accords to spouses other rights or benefits that are not affected by DOMA, same-sex spouses remain entitled to such rights or benefits to the same extent as any annuity holder's spouse.

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.

In addition, under some circumstances, the Code will not permit contract owners to waive withholding.  Such circumstances include:

·   if the payee does not provide Nationwide with a taxpayer identification number; or

·   if Nationwide receives notice from the Internal Revenue Service that the taxpayer identification number furnished by the payee is incorrect.

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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 Code and is applied against the amount of income that is distributed.

Non-Resident Aliens

Generally, a pre-death distribution from a contract to a non-resident alien is subject to federal income tax at a rate of 30% of the amount of income that is distributed.

Nationwide is required to withhold this amount and send it to the Internal Revenue Service.  Some distributions to non-resident aliens may be subject to a lower (or no) tax if a treaty applies.  In order to obtain the benefits of such a treaty, the non-resident alien must:

(1)   provide Nationwide with a properly completed withholding certificate claiming the treaty benefit of a lower tax rate or exemption from tax; and

(2)   provide Nationwide with an individual taxpayer identification number.

If the non-resident alien does not meet the above conditions, Nationwide will withhold 30% of income from the distribution.

Another exemption from the 30% withholding rate is for the non-resident alien to provide Nationwide with sufficient evidence that:

(1)   the distribution is connected to the non-resident alien's conduct of business in the United States;

(2)   the distribution is  includable in the non-resident alien's gross income for United States federal income tax purposes; and

(3)   provide Nationwide with a properly completed withholding certificate claiming the exemption.

Note that for the preceding exemption, the distributions would be subject to the same withholding rules that are applicable to payments to United States persons, including back-up withholding, which is currently at a rate of 28%, if a correct taxpayer identification number is not provided.

This prospectus does not address any tax matters that may arise by reason of application of the laws of a non-resident alien’s country of citizenship and/or country of residence. Purchasers and prospective purchasers should consult a financial consultant, tax advisor or legal counsel to discuss the applicability of laws of those jurisdictions to the purchase or ownership of a contract.

Federal Estate, Gift and Generation Skipping Transfer Taxes

The following transfers may be considered a gift for federal gift tax purposes:

·   a transfer of the contract from one contract owner to another; or

·   a distribution to someone other than a contract owner.

Upon the contract owner's death, the value of the contract may be subject to estate taxes, even if all or a portion of the value is also subject to federal income taxes.

Section 2612 of the Code may require Nationwide to determine whether a death benefit or other distribution is a "direct skip" and the amount of the resulting generation skipping transfer tax, if any.  A direct skip is when property is transferred to, or a death benefit or other distribution is made to:

a)   an individual who is 2 or more generations younger than the contract owner; or

b)   certain trusts, as described in Section 2613 of the Code (generally, trusts that have no beneficiaries who are not 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 may be required to deduct the amount of the transfer tax from the death benefit, distribution or other payment, and remit it directly to the Internal Revenue Service.

Charge for Tax

Nationwide is not required to maintain a capital gain reserve liability on non-qualified contracts.  If tax laws change requiring a reserve, Nationwide may implement and adjust a tax charge.

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Diversification

Code Section 817(h) contains rules on diversification requirements for variable annuity contracts.  A variable annuity contract that does not meet these diversification requirements will not be treated as an annuity, unless:

·   the failure to diversify was accidental;

·   the failure is corrected; and

·   a fine is paid to the Internal Revenue Service.

The amount of the fine will be the amount of tax that would have been paid by the contract owner if the income, for the period the contract was not diversified, had been received by the contract owner.

If the violation is not corrected, the contract owner will be considered the owner of the underlying securities and will be taxed on the earnings of his or her contract.  Nationwide believes that the investments underlying this contract meet these diversification requirements.

Required Distributions

The Code requires that certain distributions be made from the contracts issued in conjunction with this prospectus.  Following is an overview of the required distribution rules applicable to each type of contract.  Please consult a qualified tax or financial adviser for more specific required distribution information.

If you purchase the Nationwide Lifetime Income Track option, withdrawals in excess of the Lifetime Withdrawal Amount may be required to satisfy the minimum distribution requirements under the Code.  Please consult a qualified tax adviser.

Required Distributions – General Information

In general, a beneficiary is an individual or other entity that the contract owner designates to receive death proceeds upon the contract owner's death.  The distribution rules in the Code make a distinction between "beneficiary" and "designated beneficiary" when determining the life expectancy that may be used for payments that are made from IRAs, SEP IRAs, Simple IRAs, and Roth IRAs 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 0.  Life expectancies and joint life expectancies will be determined in accordance with the relevant guidance provided by the Internal Revenue Service and the Treasury Department, including but not limited to Treasury Regulation 1.72-9 and Treasury Regulation 1.401(a)(9)-9.

Required distributions paid upon the death of the contract owner are paid to the beneficiary or beneficiaries stipulated by the contract owner.  How quickly the distributions must be made may be determined with respect to the life expectancies of the beneficiaries.  For non-qualified contracts, the beneficiaries used in the determination of the distribution period are those in effect on the date of the contract owner's death.  For contracts other than non-qualified contracts, the beneficiaries used in the determination of the distribution period do not have to be determined until September 30 of the year following the contract owner's death.  If there is more than one beneficiary, the life expectancy of the beneficiary with the shortest life expectancy is used to determine the distribution period.  Any beneficiary that is not a designated beneficiary has a life expectancy of 0.

Required Distributions for Non-Qualified Contracts

Code Section 72(s) requires Nationwide to make certain distributions when a contract owner dies.  The following distributions will be made in accordance with the following requirements:

(1)   If any contract owner dies on or after the annuitization date and before the entire interest in the contract has been distributed, then the remaining interest must be distributed at least as rapidly as the distribution method in effect on the contract owner's death.

(2)   If any contract owner dies before the annuitization date, then the entire interest in the contract (consisting of either the death benefit or the contract value reduced by charges set forth elsewhere in the contract) 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 1 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.

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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 Code by reason of Section 72(s)(5) or any other law or rule.

Required Distributions for IRAs, SEP IRAs, Simple IRAs, and Roth IRAs

Distributions from 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 Co 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 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 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 IRA, SEP IRA or Simple IRA) or before the entire contract value is distributed (in the case of a Roth IRA), 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 1 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 1 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 5th year following the contract owner's death.

If the contract owner dies on or after the required beginning date, the interest in the IRA, SEP IRA, or Simple IRA must be distributed over a period not exceeding the applicable distribution period, which is determined as follows:

(a)   if the designated beneficiary is the contract owner's spouse, the applicable distribution period is the surviving spouse's remaining life expectancy using the surviving spouse's birthday for each distribution calendar year after the calendar year of the contract owner's death.  For calendar years after the death of the contract owner's surviving spouse, the applicable distribution period is the greater of (a) the contract owner's remaining life expectancy using the contract owner's birthday in the calendar year of the contract owner's death, reduced by one for each year thereafter; or (b) the spouse's remaining life expectancy using the spouse's age in the calendar year of the spouse's death, reduced by 1 for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse's death;

(b)   if the designated beneficiary is not the contract owner's surviving spouse, the applicable distribution period is the greater of (a) the contract owner's remaining life expectancy using the contract owner's birthday in the calendar  year of the contract owner's death, reduced by 1 for each year thereafter; or (b) the designated beneficiary's remaining life expectancy using the designated beneficiary's birthday in the calendar year immediately following the calendar year of the contract owner's death, reduced by 1 for each calendar year that elapsed thereafter; and

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(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 1 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.

Distributions from Roth IRAs may be either taxable or nontaxable, depending upon whether they are "qualified distributions" or "non-qualified distributions."

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 Code, including the following:

·   generally lowering federal income tax rates;

·   increasing the amounts that may be contributed to various retirement plans, such as individual retirement plans and qualified plans;

·   increasing the portability of various retirement plans by permitting individual retirement plans, qualified plans and certain governmental 457 plans to "roll" money from one plan to another;

·   eliminating and/or reducing the highest federal estate tax rates;

·   increasing the estate tax credit; and

·   for persons dying after 2009, repealing the estate tax.

In 2006, the Pension Protection Act of 2006 made permanent the EGTRRA provisions noted above that increase the amounts that may be contributed to various retirement plans and that increase the portability of various retirement plans.  However, all of the other changes resulting from EGTRRA were scheduled to "sunset," or become ineffective, after December 31, 2010 unless they are extended by additional legislation.  The sunset date for many of these provisions was extended to December 31, 2012 by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.  However, if these changes are not further extended (or modified) by new legislation, the Code will be restored to its pre-EGTRRA form after December 31, 2012.

This creates uncertainty as to future tax requirements and implications.  Please consult a qualified tax or financial adviser for further information relating to these and other tax issues.

State Taxation

The tax rules across the various states and localities are not uniform and therefore are not discussed in this prospectus.  Tax rules that may apply to contracts issued in U.S. territories such as Puerto Rico and Guam are also not discussed.  Purchasers and prospective purchasers should consult a financial consultant, tax advisor or legal counsel to discuss the taxation and use of the contract.

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STATEMENT OF ADDITIONAL INFORMATION

_________

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 _________.  The prospectus may be obtained from Nationwide Life Insurance Company by writing P.O. Box 182021, Columbus, Ohio 43218-2021, or calling 1-800-848-6331, TDD 1-800-238-3035.

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	2
Annuity Payments	2
Condensed Financial Information	2
Financial Statements	3

General Information and History

The Nationwide Variable Account-II is a separate investment account of Nationwide Life Insurance Company ("Nationwide").  Nationwide is a stock life insurance company organized under the laws of the State of Ohio in March 1929 with its Home Office at One Nationwide Plaza, Columbus, Ohio 43215.  Nationwide provides life insurance, annuities and retirement products.  Nationwide is admitted to do business in all states, the District of Columbia and Puerto Rico.  Nationwide is a member of the Nationwide group of companies and all of its common stock is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company.  Nationwide Corporation owns all of NFS's common stock and is a holding company, as well.  All of Nationwide Corporation's common stock is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), the ultimate controlling persons of the Nationwide group of companies.The Nationwide group of companies is one of America’s largest insurance and financial services family of companies, with combined assets of over $154.7 billion as of December 31, 2011.

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.

1

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.  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 Financial Industry Regulatory Authority ("FINRA").

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.  During the fiscal years ended December 31, 2011, 2010 and 2009, no direct or indirect 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.  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 contracts were not available for sale as of December 31, 2012 .  Therefore, no Condensed Financial Information is available.

2

NATIONWIDE VARIABLE ACCOUNT-II

Interim Report

to

Contract Owners

September 30, 2012

(Unaudited)

[LOGO]

NATIONWIDE LIFE INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Assets:
Investments at fair value:
MidCap Growth Portfolio - Class S Shares (ALMCS)
	38,001 shares (cost $483,913)	$	488,697
AllBerVPS DynmcAsstAlloc B (ALVDAB)
	105,00 shares (cost $1,058,705)		1,078,447
Growth Fund - Class 1 (AFGF)
	179,545 shares (cost $9,218,771)		10,799,603
High-Income Bond Fund - Class 1 (AFHY)
	80,537 shares (cost $883,714)		926,986
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)
	86,625 shares (cost $1,035,254)		1,117,459
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)
	10,200,864 shares (cost $142,807,524)		146,892,440
Money Market Portfolio(TM) (CHSMM)
	12,825,448 shares (cost $12,825,448)		12,825,448
Stock Index Fund, Inc. - Initial Shares (DSIF)
	6,788,571 shares (cost $185,966,747)		218,659,870
Stock Index Fund, Inc. - Service Shares (DSIFS)
	4,041,364 shares (cost $116,947,107)		130,293,587
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
	1,191,774 shares (cost $26,281,726)		40,246,209
GdmnScsVIT GlblMkt Nav Svc (GVGMNS)
	12,027 shares (cost $120,106)		121,228
VA International Equity Fund (HVIE)
	664,086 shares (cost $8,985,434)		9,104,619
VA Situs Fund (HVSIT)
	1,155,631 shares (cost $17,586,803)		19,888,404
Invsco VI MdCapCorEqSer II (IVMCC2)
	75,584 shares (cost $906,474)		922,884
Invsco VK VI MdCapGrSer II (IVKMG2)
	5,662,508 shares (cost $22,494,543)		21,970,529
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)
	1,269,377 shares (cost $7,698,185)		10,091,547
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
	418,748 shares (cost $11,591,448)		11,938,495
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
	3,513,906 shares (cost $115,635,008)		141,680,693
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
	2,864,713 shares (cost $17,498,996)		17,302,869
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
	2,270,985 shares (cost $92,712,027)		76,713,866

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Investors Growth Stock Series - Service Class (MIGSC)
	753,916 shares (cost $7,377,270)	8,926,368
New Discovery Series - Service Class (MNDSC)
	81,348 shares (cost $1,216,590)	1,217,775
Value Series - Service Class (MVFSC)
	22,975,689 shares (cost $238,443,778)	324,416,733
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)
	4,582,758 shares (cost $70,766,335)	76,623,711
Core Plus Fixed Income Portfolio - Class I (MSVFI)
	138,355 shares (cost $1,396,628)	1,459,649
Core Plus Fixed Income Portfolio - Class II (MSVF2)
	1,826,197 shares (cost $17,444,358)	19,248,117
Emerging Markets Debt Portfolio - Class I (MSEM)
	377,446 shares (cost $2,943,050)	3,476,279
Emerging Markets Debt Portfolio - Class II (MSEMB)
	112,275 shares (cost $870,780)	1,028,442
Global Real Estate Portfolio - Class II (VKVGR2)
	3,068 shares (cost $25,141)	27,182
U.S. Real Estate Portfolio - Class I (MSVRE)
	2,452 shares (cost $32,974)	37,463

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

U.S. Real Estate Portfolio - Class II (MSVREB)
	329 shares (cost $5,091)	5,002
American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)
	3,339,344 shares (cost $46,784,023)	50,858,216
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)
	9,736,206 shares (cost $135,909,080)	147,600,888
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
	192,821,411 shares (cost $3,218,061,923)	3,723,381,441
American Funds NVIT Bond Fund - Class II (GVABD2)
	102,199,694 shares (cost $1,111,216,040)	1,195,736,423
American Funds NVIT Global Growth Fund - Class II (GVAGG2)
	6,024,572 shares (cost $123,395,453)	135,793,843
American Funds NVIT Growth Fund - Class II (GVAGR2)
	3,816,153 shares (cost $202,854,422)	226,603,172
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)
	30,619,254 shares (cost $1,028,209,377)	1,244,366,493
Federated NVIT High Income Bond Fund - Class I (HIBF)
	862,109 shares (cost $5,912,246)	6,267,535
Federated NVIT High Income Bond Fund - Class III (HIBF3)
	14,207,850 shares (cost $96,359,496)	103,148,991
NVIT Emerging Markets Fund - Class I (GEM)
	17,921 shares (cost $189,934)	199,994
NVIT Emerging Markets Fund - Class II (GEM2)
	99,084 shares (cost $1,160,362)	1,090,919
NVIT Emerging Markets Fund - Class III (GEM3)
	1,996,544 shares (cost $21,106,778)	22,241,501
NVIT Emerging Markets Fund - Class VI (GEM6)
	4,601,277 shares (cost $48,605,422)	51,028,163
NVIT International Equity Fund - Class I (GIG)
	4,423 shares (cost $38,536)	39,413
NVIT International Equity Fund - Class III (GIG3)
	2,784,673 shares (cost $20,592,137)	24,839,279
Gartmore NVIT International Equity Fund - Class VI (NVIE6)
	2,831,644 shares (cost $22,925,898)	25,116,686
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)
	8,734,674 shares (cost $68,274,290)	71,187,597
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)
	2,933,055 shares (cost $25,034,371)	23,699,081
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)
	214,437 shares (cost $2,341,428)	2,333,078
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)
	14,640,947 shares (cost $118,453,995)	159,147,096
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
	2,976,046 shares (cost $26,168,315)	25,980,885

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

NVIT Cardinal Balanced Fund - Class II (NVCRB2)
	140,482,691 shares (cost $1,363,146,414)	1,508,784,097
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
	230,635,150 shares (cost $2,167,098,680)	2,398,605,565
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
	64,524,045 shares (cost $667,246,415)	694,278,720
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
	207,971,049 shares (cost $1,988,470,432)	2,194,094,567
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
	37,236,238 shares (cost $312,861,267)	370,872,932
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
	64,215,526 shares (cost $639,954,599)	692,243,368
NVIT Core Bond Fund - Class I (NVCBD1)
	281,050 shares (cost $3,098,172)	3,232,077
NVIT Core Bond Fund - Class II (NVCBD2)
	10,616,667 shares (cost $111,036,119)	121,560,832
NVIT Core Plus Bond Fund - Class II (NVLCP2)
	3,937,859 shares (cost $44,824,164)	47,096,788
NVIT Fund - Class I (TRF)
	12,132,835 shares (cost $119,579,881)	123,512,259

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

NVIT Fund - Class II (TRF2)
	15,477,234 shares (cost $116,856,991)	156,474,839
NVIT Government Bond Fund - Class I (GBF)
	32,295,558 shares (cost $382,327,776)	383,994,182
American Century NVIT Growth Fund - Class I (CAF)
	2,111,932 shares (cost $19,748,379)	33,748,671
American Century NVIT Growth Fund - Class II (CAF2)
	2,109,464 shares (cost $20,079,973)	22,212,658
NVIT International Index Fund - Class VIII (GVIX8)
	2,346,496 shares (cost $19,007,846)	18,678,108
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
	24,012,375 shares (cost $248,815,687)	237,242,267
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)
	48,417,544 shares (cost $618,031,758)	664,288,710
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)
	77,133,096 shares (cost $1,072,077,383)	1,162,395,759
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
	59,088,724 shares (cost $591,212,962)	622,204,265
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
	219,345,331 shares (cost $2,426,965,021)	2,474,215,336
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
	110,420,908 shares (cost $1,266,145,055)	1,225,672,076
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
	71,436,961 shares (cost $751,148,207)	791,521,523
NVIT Mid Cap Index Fund - Class I (MCIF)
	5,517,788 shares (cost $95,288,108)	102,465,314
NVIT Money Market Fund - Class I (SAM)
	659,235,274 shares (cost $659,235,274)	659,235,274
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)
	3,452,141 shares (cost $26,485,806)	33,589,337
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
	17,019,883 shares (cost $135,949,451)	165,092,865
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)
	54,889 shares (cost $746,017)	494,554
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)
	542,984 shares (cost $5,496,172)	4,897,719
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
	6,394,671 shares (cost $57,655,227)	57,232,305
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
	927,022 shares (cost $8,634,041)	9,956,219
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
	10,614,950 shares (cost $90,781,154)	113,155,369
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
	342,130 shares (cost $3,022,599)	3,154,436

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
	5,340,380 shares (cost $43,443,516)	48,971,284
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
	16,974,421 shares (cost $131,232,509)	180,947,324
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
	11,834,290 shares (cost $95,299,994)	124,615,072
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
	25,661,104 shares (cost $222,839,432)	258,150,709
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
	341,544 shares (cost $5,622,217)	6,110,231
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)
	1,160,916 shares (cost $18,717,102)	20,246,381
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
	2,824,654 shares (cost $30,491,281)	32,455,273
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)
	1,955,673 shares (cost $15,590,052)	22,099,108
NVIT Multi-Manager Small Company Fund - Class I (SCF)
	3,772,677 shares (cost $72,768,047)	72,774,942
NVIT Multi-Manager Small Company Fund - Class II (SCF2)
	2,285,555 shares (cost $33,236,218)	42,922,718

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

NVIT Multi-Sector Bond Fund - Class I (MSBF)
	17,320,968 shares (cost $147,819,202)	164,202,780
NVIT Short Term Bond Fund - Class II (NVSTB2)
	7,130,312 shares (cost $73,825,119)	75,795,213
NVIT Large Cap Growth Fund - Class I (NVOLG1)
	19,738,737 shares (cost $298,821,135)	345,033,128
NVIT Large Cap Growth Fund - Class II (NVOLG2)
	13,692,224 shares (cost $206,811,761)	238,244,693
Templeton NVIT International Value Fund - Class III (NVTIV3)
	20,691,688 shares (cost $240,013,948)	239,195,913
Van Kampen NVIT Comstock Value Fund - Class II (EIF2)
	11,981,676 shares (cost $101,240,748)	134,074,954
NVIT Real Estate Fund - Class I (NVRE1)
	7,178,114 shares (cost $52,369,789)	67,258,928
NVIT Real Estate Fund - Class II (NVRE2)
	7,914,251 shares (cost $63,770,913)	73,681,680
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
	8,962 shares (cost $100,450)	105,309
VPS Growth and Income Portfolio - Class B (ALVGIB)
	311,526 shares (cost $6,394,235)	6,376,946
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)
	3,455,117 shares (cost $52,724,852)	57,562,241
VP Balanced Fund - Class I (ACVB)
	4,956,012 shares (cost $32,322,609)	35,485,045
VP Capital Appreciation Fund - Class I (ACVCA)
	5,221 shares (cost $57,433)	76,906
VP Income & Growth Fund - Class I (ACVIG)
	2,138,121 shares (cost $14,083,014)	14,945,467
VP Income & Growth Fund - Class II (ACVIG2)
	623,913 shares (cost $4,099,852)	4,361,155
VP Inflation Protection Fund - Class II (ACVIP2)
	22,991,926 shares (cost $253,245,051)	276,362,952
VP International Fund - Class I (ACVI)
	1,465 shares (cost $12,909)	12,217
VP International Fund - Class III (ACVI3)
	13 shares (cost $106)	110
VP Mid Cap Value Fund - Class I (ACVMV1)
	512,207 shares (cost $6,874,444)	7,252,848
VP Mid Cap Value Fund - Class II (ACVMV2)
	5,494,119 shares (cost $68,245,789)	77,851,670
VP Value Fund - Class II (ACVV2)
	132 shares (cost $838)	856
VP Vista(SM) Fund - Class I (ACVVS1)
	293 shares (cost $3,364)	5,117

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Small Cap Stock Index Portfolio - Service Shares (DVSCS)
	6,317,852 shares (cost $65,589,658)	83,901,070
Appreciation Portfolio - Initial Shares (DCAP)
	925,962 shares (cost $32,641,175)	38,668,193
Appreciation Portfolio - Service Shares (DCAPS)
	2,654,042 shares (cost $93,418,566)	110,248,904
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)
	43,369 shares (cost $1,090,003)	1,303,227
Growth and Income Portfolio - Initial Shares (DGI)
	610,693 shares (cost $12,569,461)	13,392,490
Capital Appreciation Fund II - Service Shares (FCA2S)
	226,276 shares (cost $1,301,442)	1,427,803
Quality Bond Fund II - Primary Shares (FQB)
	961,964 shares (cost $10,337,979)	11,206,881
Quality Bond Fund II - Service Shares (FQBS)
	3,367,413 shares (cost $36,498,529)	39,095,668
Contrafund Portfolio - Service Class 2 (FC2)
	21 shares (cost $538)	554
Equity-Income Portfolio - Initial Class (FEIP)
	16,046,084 shares (cost $367,590,843)	340,337,441

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)
	849,171 shares (cost $6,840,483)	9,018,193
High Income Portfolio - Initial Class (FHIP)
	8,688,052 shares (cost $48,287,659)	52,041,429
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
	9,280,732 shares (cost $128,254,901)	141,902,397
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)
	3,957,331 shares (cost $76,453,348)	79,225,764
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)
	8,572,774 shares (cost $177,691,672)	178,742,328
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)
	486,947 shares (cost $4,770,722)	5,507,376
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)
	11,929,995 shares (cost $124,947,559)	134,331,742
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)
	891,195 shares (cost $8,517,991)	10,115,065
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)
	37,372,348 shares (cost $388,789,605)	422,307,532
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)
	744,158 shares (cost $6,811,108)	8,163,416
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)
	2,573,024 shares (cost $25,138,174)	28,123,154
VIP Fund - Growth Portfolio - Initial Class (FGP)
	7,897,720 shares (cost $236,207,984)	343,708,788
VIP Fund - Growth Portfolio - Service Class 2 (FG2)
	2,375,891 shares (cost $84,601,483)	102,210,828
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)
	4,283,252 shares (cost $24,356,598)	25,571,016
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
	2,001,373 shares (cost $25,248,048)	26,938,477
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)
	30,358,492 shares (cost $373,734,844)	403,464,365
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
	723,911 shares (cost $20,469,928)	23,505,396
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)
	7,697,443 shares (cost $220,630,324)	246,626,064
VIP Fund - Overseas Portfolio - Initial Class (FOP)
	3,235,042 shares (cost $56,150,601)	50,240,201
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)
	1,521,843 shares (cost $30,395,173)	23,573,343
VIP Fund - Overseas Portfolio - Service Class 2 (FO2)
	151,585 shares (cost $2,823,129)	2,329,865
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)
	4,001,898 shares (cost $59,054,329)	60,948,900

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
	600,951 shares (cost $5,017,202)	6,334,021
Franklin Income Securities Fund - Class 2 (FTVIS2)
	10,001,722 shares (cost $151,092,983)	147,825,450
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)
	2,651,534 shares (cost $48,117,514)	56,053,420
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
	8,121,244 shares (cost $92,553,691)	136,193,263
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)
	2,737,091 shares (cost $24,330,443)	27,069,826
Templeton Foreign Securities Fund - Class 2 (TIF2)
	244,455 shares (cost $3,438,195)	3,263,472
Templeton Foreign Securities Fund - Class 3 (TIF3)
	5,324,386 shares (cost $53,852,067)	70,814,333
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)
	6,241,225 shares (cost $111,402,988)	116,960,556
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
	3,277,809 shares (cost $24,636,609)	26,976,365
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)
	14,559,707 shares (cost $167,172,563)	163,796,707

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Growth Portfolio - I Class Shares (AMTG)
	631 shares (cost $12,732)	13,222
International Portfolio - S Class Shares (AMINS)
	429 shares (cost $4,109)	4,117
Partners Portfolio - I Class Shares (AMTP)
	1,535 shares (cost $15,795)	17,233
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
	272,591 shares (cost $3,510,974)	3,764,484
Socially Responsive Portfolio - I Class Shares (AMSRS)
	1,632,175 shares (cost $22,878,774)	25,543,546
Balanced Fund/VA - Non-Service Shares (OVMS)
	3,144,566 shares (cost $47,869,368)	38,772,501
Core Bond Fund/VA - Non-Service Shares (OVB)
	4,209,711 shares (cost $41,881,477)	34,393,342
Global Securities Fund/VA - Class 3 (OVGS3)
	1,637,717 shares (cost $49,564,159)	49,999,507
Global Securities Fund/VA - Class 4 (OVGS4)
	2,037,773 shares (cost $62,329,852)	61,398,087
Global Securities Fund/VA - Non-Service Shares (OVGS)
	3,364,913 shares (cost $86,935,475)	102,024,150
Global Securities Fund/VA - Service Class (OVGSS)
	238,710 shares (cost $6,665,779)	7,177,999
High Income Fund/VA - Class 3 (OVHI3)
	318,604 shares (cost $639,835)	618,092
High Income Fund/VA - Class 4 (OVHI4)
	3,328,980 shares (cost $6,746,975)	6,558,091
High Income Fund/VA - Non-Service Shares (OVHI)
	10,115 shares (cost $45,629)	19,421
High Income Fund/VA - Service Class (OVHIS)
	1,237,213 shares (cost $7,294,293)	2,400,194
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
	498,373 shares (cost $10,563,015)	11,995,834
Main Street Fund(R)/VA - Service Class (OVGIS)
	9,112,355 shares (cost $160,814,452)	217,694,160
Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)
	224,965 shares (cost $3,941,343)	4,373,311
Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)
	2,845,058 shares (cost $36,484,999)	54,824,277
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
	187,946 shares (cost $8,972,339)	10,523,095
All Asset Portfolio - Advisor Class (PMVAAD)
	679,285 shares (cost $7,592,901)	7,777,812
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
	1,902,364 shares (cost $22,298,541)	23,627,355

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

Low Duration Portfolio - Advisor Class (PMVLAD)
	29,254,677 shares (cost $304,449,971)	315,365,422
Total Return Portfolio - Advisor Class (PMVTRD)
	13,355,214 shares (cost $150,806,805)	156,790,217
Putnam VT Growth and Income Fund - IB Shares (PVGIB)
	154,489 shares (cost $2,567,797)	2,680,391
Putnam VT International Equity Fund - IB Shares (PVTIGB)
	34,084 shares (cost $527,392)	360,952
Putnam VT Voyager Fund - IB Shares (PVTVB)
	61,284 shares (cost $2,265,191)	2,204,984
Capital Growth Portfolio - Class II (ACEG2)
	155,323 shares (cost $5,672,440)	5,590,091
Diversified Stock Fund Class A Shares (VYDS)
	37,525 shares (cost $283,786)	388,389
Blue Chip Growth Portfolio - II (TRBCG2)
	121 shares (cost $1,597)	1,609
Health Sciences Portfolio - II (TRHS2)
	2,651,897 shares (cost $46,628,280)	57,254,455
VanEckVIPGlbHrdAsstSvc (VWHAS)
	370,312 shares (cost $10,114,228)	10,527,980

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

September 30, 2012

(Unaudited)

VIP Trust - Global Bond Fund: Initial Class (VWBF)
	1,329,365 shares (cost $15,166,416)		15,699,803
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
	2,304,225 shares (cost $28,761,858)		28,180,673
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
	2,398,053 shares (cost $72,894,386)		69,927,229
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)
	10,708,613 shares (cost $102,831,103)		109,425,967
Ivy Fund Variable Insurance Portfolios, Inc. - High Income (WRHIP)
	3,888,308 shares (cost $13,959,377)		14,239,373
Ivy Fund Variable Insurance Portfolios, Inc. - Mid Cap Growth (WRMCG)
	439,328 shares (cost $3,500,490)		3,639,346
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)
	272,191 shares (cost $1,420,130)		1,446,394
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)
	2,227,458 shares (cost $11,515,115)		11,770,331
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)
	4,019,476 shares (cost $21,482,406)		21,641,663
Ivy Fund Variable Insurance Portfolios, Inc. -Pathfinder Moderately Conservative  (WRPMCP)
	761,793 shares (cost $4,018,705)		4,095,704
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
	1,523 shares (cost $26,796)		38,024
Advantage VT Opportunity Fund - Class 2 (SVOF)
	13,616 shares (cost $193,387)		262,797
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)
	4,364,088 shares (cost $33,362,710)		36,047,369
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)
	925 shares (cost $7,214)		8,883
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)
	28,438 shares (cost $295,169)		307,129
Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)
	2,036 shares (cost $39,252)		51,222
Total Investments		$	33,578,504,966
Accounts Payable			(1,547,646	)
		$	33,576,957,320
Contract Owners’ Equity:
Accumulation units			33,568,489,676
Contracts in payout (annuitization) period (note 1f)			8,467,644
Total Contract Owners’ Equity (note 5)		$	33,576,957,320

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	Total			ALMCS			ALVDAB			AFGF			AFHY			AFGC			MLVGA3			CHSMM
Investment Activity:
Reinvested dividends	$	178,884,625			—			874			31,818			9,732			3,016			—			1,020
Mortality and expense risk charges (note 2)		(372,772,775	)		(3,513	)		(3,109	)		(102,428	)		(15,673	)		(11,424	)		(1,628,599	)		(93,779	)
Net investment income (loss)		(193,888,150	)		(3,513	)		(2,235	)		(70,610	)		(5,941	)		(8,408	)		(1,628,599	)		(92,759	)
Realized gain (loss) on investments		93,622,820			(35,303	)		151			80,847			26,863			14,014			730,213			—
Change in unrealized gain (loss) on investments		2,612,129,270			94,067			19,742			1,413,825			137,247			(21,695	)		10,048,690			—
Net gain (loss) on investments		2,705,752,090			58,764			19,893			1,494,672			164,110			(7,681	)		10,778,903			—
Reinvested capital gains		330,402,964			—			404			—			—			32,139			10,669			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,842,266,904			55,251			18,062			1,424,062			158,169			16,050			9,160,973			(92,759	)
	DSIF			DSIFS			DSRG			GVGMNS			HVIE			HVSIT			IVMCC2			IVKMG2
Investment Activity:
Reinvested dividends	$	3,039,805			1,505,821			328,901			—			—			—			—			—
Mortality and expense risk charges (note 2)		(2,173,332	)		(1,359,184	)		(404,118	)		(203	)		(86,223	)		(198,547	)		(2,760	)		(147,300	)
Net investment income (loss)		866,473			146,637			(75,217	)		(203	)		(86,223	)		(198,547	)		(2,760	)		(147,300	)
Realized gain (loss) on investments		6,883,537			(473,006	)		1,771,751			20			(47,960	)		160,409			(189	)		(124,524	)
Change in unrealized gain (loss) on investments		12,065,372			11,306,800			3,144,859			1,123			644,907			2,368,638			16,410			(524,013	)
Net gain (loss) on investments		18,948,909			10,833,794			4,916,610			1,143			596,947			2,529,047			16,221			(648,537	)
Reinvested capital gains		10,738,166			5,772,701			—			—			—			—			7,869			6,819
Net increase (decrease) in contract owners’ equity resulting from operations	$	30,553,548			16,753,132			4,841,393			940			510,724			2,330,500			21,330			(789,018	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	JPMMV1			JABS			JACAS			JAGTS2			JAGTS			JAIGS2			JAIGS			MIGSC
Investment Activity:
Reinvested dividends	$	85,535			155,422			283,400			—			—			—			351,209			19,832
Mortality and expense risk charges (note 2)		(82,399	)		(121,899	)		(1,477,739	)		(64,891	)		(113,969	)		(442,260	)		(502,097	)		(107,354	)
Net investment income (loss)		3,136			33,523			(1,194,339	)		(64,891	)		(113,969	)		(442,260	)		(150,888	)		(87,522	)
Realized gain (loss) on investments		233,139			(102,500	)		98,887			814,110			757,767			2,355,718			(1,691,621	)		501,839
Change in unrealized gain (loss) on investments		940,465			441,792			25,831,807			1,264,910			(756,513	)		8,375,770			(16,352,063	)		423,044
Net gain (loss) on investments		1,173,604			339,292			25,930,694			2,079,020			1,254			10,731,488			(18,043,684	)		924,883
Reinvested capital gains		—			817,709			—			—			—			—			9,366,961			437,026
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,176,740			1,190,524			24,736,355			2,014,129			(112,715	)		10,289,228			(8,827,611	)		1,274,387
	MNDSC			MVFSC			MVIVSC			MSVFI			MSVF2			MSEM			MSEMB			VKVGR2
Investment Activity:
Reinvested dividends	$	—			4,492,965			978,394			66,723			865,246			100,094			28,079			143
Mortality and expense risk charges (note 2)		(3,377	)		(3,937,533	)		(729,989	)		(14,503	)		(240,071	)		(35,352	)		(10,871	)		(194	)
Net investment income (loss)		(3,377	)		555,432			248,405			52,220			625,175			64,742			17,208			(51	)
Realized gain (loss) on investments		(681	)		14,965,535			342,687			39,730			216,312			54,343			5,389			4
Change in unrealized gain (loss) on investments		1,185			23,323,870			6,624,827			12,818			529,414			315,328			100,083			2,041
Net gain (loss) on investments		504			38,289,405			6,967,514			52,548			745,726			369,671			105,472			2,045
Reinvested capital gains		72,688			2,388,656			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	69,815			41,233,493			7,215,919			104,768			1,370,901			434,413			122,680			1,994

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	MSVRE			MSVREB			VFMG2			NVAMV1			NVAMV2			GVAAA2			GVABD2			GVAGG2
Investment Activity:
Reinvested dividends	$	322			28			12,916			78,604			229,207			46,078,626			26,451,882			1,144,475
Mortality and expense risk charges (note 2)		(386	)		(52	)		(29,437	)		(513,344	)		(1,705,452	)		(39,611,705	)		(13,860,272	)		(1,464,891	)
Net investment income (loss)		(64	)		(24	)		(16,521	)		(434,740	)		(1,476,245	)		6,466,921			12,591,610			(320,416	)
Realized gain (loss) on investments		799			1,400			(289,770	)		524,468			1,150,672			1,084,931			998,061			(1,751,184	)
Change in unrealized gain (loss) on investments		4,061			(932	)		349,749			3,919,489			11,066,231			373,391,149			24,459,019			19,370,230
Net gain (loss) on investments		4,860			468			59,979			4,443,957			12,216,903			374,476,080			25,457,080			17,619,046
Reinvested capital gains		—			—			—			2,037,600			5,941,559			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	4,796			444			43,458			6,046,817			16,682,217			380,943,001			38,048,690			17,298,630
	GVAGR2			GVAGI2			HIBF			HIBF3			GEM			GEM2			GEM3			GEM6
Investment Activity:
Reinvested dividends	$	482,636			12,459,218			34,493			561,642			—			—			—			—
Mortality and expense risk charges (note 2)		(2,492,869	)		(13,942,877	)		(70,607	)		(1,076,320	)		(2,259	)		(13,161	)		(238,751	)		(587,970	)
Net investment income (loss)		(2,010,233	)		(1,483,659	)		(36,114	)		(514,678	)		(2,259	)		(13,161	)		(238,751	)		(587,970	)
Realized gain (loss) on investments		(4,685,877	)		(1,185,939	)		(163,977	)		434,134			(55,723	)		(199,596	)		(1,547,307	)		(125,215	)
Change in unrealized gain (loss) on investments		34,996,485			144,621,515			865,111			9,219,287			88,852			323,365			3,796,486			4,003,033
Net gain (loss) on investments		30,310,608			143,435,576			701,134			9,653,421			33,129			123,769			2,249,179			3,877,818
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	28,300,375			141,951,917			665,020			9,138,743			30,870			110,608			2,010,428			3,289,848

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	GIG			GIG3			NVIE6			NVNMO1			NVNMO2			NVNSR1			NVNSR2			NVCRA2
Investment Activity:
Reinvested dividends	$	—			—			—			17,168			5,738			—			—			107,281
Mortality and expense risk charges (note 2)		(355	)		(252,352	)		(292,530	)		(719,252	)		(265,872	)		(20,944	)		(2,126,556	)		(300,908	)
Net investment income (loss)		(355	)		(252,352	)		(292,530	)		(702,084	)		(260,134	)		(20,944	)		(2,126,556	)		(193,627	)
Realized gain (loss) on investments		115			544,057			491,347			831,659			(499,305	)		8,321			2,257,314			186,369
Change in unrealized gain (loss) on investments		3,933			2,192,168			2,116,244			2,706,406			1,589,688			184,093			13,137,319			1,631,361
Net gain (loss) on investments		4,048			2,736,225			2,607,591			3,538,065			1,090,383			192,414			15,394,633			1,817,730
Reinvested capital gains		—			—			—			5,060,113			1,691,067			—			—			1,042,883
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,693			2,483,873			2,315,061			7,896,094			2,521,316			171,470			13,268,077			2,666,986
	NVCRB2			NVCCA2			NVCCN2			NVCMD2			NVCMA2			NVCMC2			NVCBD1			NVCBD2
Investment Activity:
Reinvested dividends	$	3,907,460			7,652,139			935,547			6,506,486			1,407,553			1,586,822			5,948			225,484
Mortality and expense risk charges (note 2)		(16,957,245	)		(26,033,685	)		(7,372,927	)		(23,430,222	)		(4,437,805	)		(7,232,711	)		(29,767	)		(1,686,544	)
Net investment income (loss)		(13,049,785	)		(18,381,546	)		(6,437,380	)		(16,923,736	)		(3,030,252	)		(5,645,889	)		(23,819	)		(1,461,060	)
Realized gain (loss) on investments		283,354			83,819			6,835,270			314,448			705,205			527,359			37,742			2,485,710
Change in unrealized gain (loss) on investments		99,938,608			192,171,546			21,931,681			156,611,602			28,628,580			35,524,423			125,484			4,471,371
Net gain (loss) on investments		100,221,962			192,255,365			28,766,951			156,926,050			29,333,785			36,051,782			163,226			6,957,081
Reinvested capital gains		18,208,571			33,278,540			9,671,320			33,776,138			9,486,110			12,080,603			20,878			791,448
Net increase (decrease) in contract owners’ equity resulting from operations	$	105,380,748			207,152,359			32,000,891			173,778,452			35,789,643			42,486,496			160,285			6,287,469

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVLCP2			TRF			TRF2			GBF			CAF			CAF2			GVIX8			GVIDA
Investment Activity:
Reinvested dividends	$	74,302			82,342			105,662			729,977			—			—			11,734			—
Mortality and expense risk charges (note 2)		(536,318	)		(1,233,581	)		(2,054,376	)		(4,761,473	)		(335,446	)		(195,468	)		(202,629	)		(3,473,037	)
Net investment income (loss)		(462,016	)		(1,151,239	)		(1,948,714	)		(4,031,496	)		(335,446	)		(195,468	)		(190,895	)		(3,473,037	)
Realized gain (loss) on investments		497,748			(124,962	)		1,105,122			3,015,898			1,953,652			161,768			671,086			(16,374,336	)
Change in unrealized gain (loss) on investments		1,448,925			14,856,039			17,576,667			(3,491,318	)		3,044,330			1,993,321			1,172,658			47,722,255
Net gain (loss) on investments		1,946,673			14,731,077			18,681,789			(475,420	)		4,997,982			2,155,089			1,843,744			31,347,919
Reinvested capital gains		883,698			—			—			12,510,903			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,368,355			13,579,838			16,733,075			8,003,987			4,662,536			1,959,621			1,652,849			27,874,882
	NVDBL2			NVDCA2			GVIDC			GVIDM			GVDMA			GVDMC			MCIF			SAM
Investment Activity:
Reinvested dividends	$	—			—			5,820			—			—			—			65,189			—
Mortality and expense risk charges (note 2)		(6,500,742	)		(11,939,620	)		(6,584,427	)		(29,268,073	)		(15,652,547	)		(9,654,553	)		(1,125,698	)		(7,167,117	)
Net investment income (loss)		(6,500,742	)		(11,939,620	)		(6,578,607	)		(29,268,073	)		(15,652,547	)		(9,654,553	)		(1,060,509	)		(7,167,117	)
Realized gain (loss) on investments		707,001			5,148,837			(5,358	)		(353,228	)		(18,155,882	)		142,896			530,413			—
Change in unrealized gain (loss) on investments		36,475,170			82,071,208			17,739,756			215,420,590			153,339,593			50,049,479			5,316,057			—
Net gain (loss) on investments		37,182,171			87,220,045			17,734,398			215,067,362			135,183,711			50,192,375			5,846,470			—
Reinvested capital gains		6,606,231			13,157,136			8,323,406			—			—			3,269,186			6,960,670			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	37,287,660			88,437,561			19,479,197			185,799,289			119,531,164			43,807,008			11,746,631			(7,167,117	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVMIG3			NVMIG6			GVDIV2			GVDIV3			GVDIV6			NVMLG1			NVMLG2			NVMLV1
Investment Activity:
Reinvested dividends	$	3,837			18,996			—			—			—			—			—			—
Mortality and expense risk charges (note 2)		(339,358	)		(2,122,110	)		(6,028	)		(53,297	)		(663,180	)		(101,701	)		(1,439,131	)		(32,460	)
Net investment income (loss)		(335,521	)		(2,103,114	)		(6,028	)		(53,297	)		(663,180	)		(101,701	)		(1,439,131	)		(32,460	)
Realized gain (loss) on investments		717,293			(824,679	)		(75,423	)		(1,592,660	)		(1,468,340	)		343,314			8,367,260			(6,017	)
Change in unrealized gain (loss) on investments		2,935,225			18,817,294			121,467			1,996,014			5,403,091			1,100,492			8,273,020			456,301
Net gain (loss) on investments		3,652,518			17,992,615			46,044			403,354			3,934,751			1,443,806			16,640,280			450,284
Reinvested capital gains		—			—			—			—			—			241,936			2,775,096			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	3,316,997			15,889,501			40,016			350,057			3,271,571			1,584,041			17,976,245			417,824
	NVMLV2			NVMMG1			NVMMG2			NVMMV2			SCGF			SCGF2			SCVF			SCVF2
Investment Activity:
Reinvested dividends	$	—			—			—			283,777			—			—			18,172			—
Mortality and expense risk charges (note 2)		(530,459	)		(1,824,909	)		(1,617,443	)		(2,946,161	)		(60,522	)		(243,551	)		(324,234	)		(251,877	)
Net investment income (loss)		(530,459	)		(1,824,909	)		(1,617,443	)		(2,662,384	)		(60,522	)		(243,551	)		(306,062	)		(251,877	)
Realized gain (loss) on investments		600,274			7,110,401			10,811,510			8,476,597			583,593			849,796			(462,664	)		1,680,310
Change in unrealized gain (loss) on investments		5,184,910			2,055,548			(3,902,739	)		(3,390,341	)		409,131			2,343,083			5,374,566			1,639,064
Net gain (loss) on investments		5,785,184			9,165,949			6,908,771			5,086,256			992,724			3,192,879			4,911,902			3,319,374
Reinvested capital gains		—			16,720,810			11,722,621			25,062,241			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,254,725			24,061,850			17,013,949			27,486,113			932,202			2,949,328			4,605,840			3,067,497

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	SCF			SCF2			MSBF			NVSTB2			NVOLG1			NVOLG2			NVTIV3			EIF2
Investment Activity:
Reinvested dividends	$	—			—			1,091,541			73,754			98,239			68,122			133,732			44,491
Mortality and expense risk charges (note 2)		(732,411	)		(462,142	)		(1,817,239	)		(913,151	)		(3,442,713	)		(2,770,757	)		(2,837,715	)		(1,566,668	)
Net investment income (loss)		(732,411	)		(462,142	)		(725,698	)		(839,397	)		(3,344,474	)		(2,702,635	)		(2,703,983	)		(1,522,177	)
Realized gain (loss) on investments		(2,143,734	)		(678,290	)		(599,347	)		203,617			3,665,509			2,903,643			(221,933	)		3,942,941
Change in unrealized gain (loss) on investments		11,575,862			6,082,246			14,252,727			2,083,569			56,265,428			38,266,929			19,803,412			14,634,409
Net gain (loss) on investments		9,432,128			5,403,956			13,653,380			2,287,186			59,930,937			41,170,572			19,581,479			18,577,350
Reinvested capital gains		—			—			—			—			—			—			3,970,267			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	8,699,717			4,941,814			12,927,682			1,447,789			56,586,463			38,467,937			20,847,763			17,055,173
	NVRE1			NVRE2			ALVBWB			ALVGIB			ALVSVB			ACVB			ACVCA			ACVIG
Investment Activity:
Reinvested dividends	$	88,285			97,579			1,979			86,711			163,507			489,861			—			198,118
Mortality and expense risk charges (note 2)		(673,800	)		(780,223	)		(205	)		(72,029	)		(658,001	)		(347,983	)		(910	)		(147,201	)
Net investment income (loss)		(585,515	)		(682,644	)		1,774			14,682			(494,494	)		141,878			(910	)		50,917
Realized gain (loss) on investments		3,155,090			3,766,608			27			(238,606	)		3,176,394			61,452			10,224			(148,216	)
Change in unrealized gain (loss) on investments		(829,559	)		(2,071,567	)		6,863			1,139,652			1,124,854			3,238,566			(991	)		2,057,549
Net gain (loss) on investments		2,325,531			1,695,041			6,890			901,046			4,301,248			3,300,018			9,233			1,909,333
Reinvested capital gains		6,061,151			6,699,271			—			—			1,808,592			—			5,294			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	7,801,167			7,711,668			8,664			915,728			5,615,346			3,441,896			13,617			1,960,250

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	ACVIG2			ACVIP2			ACVI			ACVI3			ACVMV1			ACVMV2			ACVU2			ACVV2
Investment Activity:
Reinvested dividends	$	50,971			4,660,459			126			1			110,266			1,013,297			—			16
Mortality and expense risk charges (note 2)		(46,503	)		(3,095,031	)		(144	)		(1	)		(71,894	)		(856,505	)		(29	)		—
Net investment income (loss)		4,468			1,565,428			(18	)		—			38,372			156,792			(29	)		16
Realized gain (loss) on investments		(109,756	)		1,970,928			(692	)		11			261,599			1,782,284			1,983			980
Change in unrealized gain (loss) on investments		703,726			4,363,280			2,337			5			76,238			1,702,119			(1,235	)		(4	)
Net gain (loss) on investments		593,970			6,334,208			1,645			16			337,837			3,484,403			748			976
Reinvested capital gains		—			6,029,123			—			—			387,583			3,920,363			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	598,438			13,928,759			1,627			16			763,792			7,561,558			719			992
	ACVVS1			DVSCS			DCAP			DCAPS			DVDLS			DGI			FCA2S			FQB
Investment Activity:
Reinvested dividends	$	—			376,034			1,146,946			2,628,512			—			120,007			3,999			453,689
Mortality and expense risk charges (note 2)		(52	)		(954,791	)		(366,387	)		(1,128,336	)		(16,698	)		(131,755	)		(17,303	)		(111,166	)
Net investment income (loss)		(52	)		(578,757	)		780,559			1,500,176			(16,698	)		(11,748	)		(13,304	)		342,523
Realized gain (loss) on investments		379			6,076,315			530,880			292,942			131,506			207,991			(30,606	)		68,100
Change in unrealized gain (loss) on investments		471			875,790			2,860,668			8,973,541			118,176			1,710,973			100,929			371,116
Net gain (loss) on investments		850			6,952,105			3,391,548			9,266,483			249,682			1,918,964			70,323			439,216
Reinvested capital gains		—			2,917,328			—			—			—			—			90,844			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	798			9,290,676			4,172,107			10,766,659			232,984			1,907,216			147,863			781,739

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	FQBS			FC2			FEIP			FVSS2			FHIP			FAMP			FCP			FNRS2
Investment Activity:
Reinvested dividends	$	1,591,086			—			—			—			29,251			—			—			—
Mortality and expense risk charges (note 2)		(472,557	)		—			(3,332,501	)		(103,790	)		(533,010	)		(1,428,707	)		—			(932,867	)
Net investment income (loss)		1,118,529			—			(3,332,501	)		(103,790	)		(503,759	)		(1,428,707	)		—			(932,867	)
Realized gain (loss) on investments		177,107			560			4,912,747			(433,200	)		(809,779	)		1,517,265			50			(4,362,956	)
Change in unrealized gain (loss) on investments		1,420,354			16			37,311,216			2,148,710			6,435,606			13,330,237			—			9,398,677
Net gain (loss) on investments		1,597,461			576			42,223,963			1,715,510			5,625,827			14,847,502			50			5,035,721
Reinvested capital gains		—			—			8,445,694			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,715,990			576			47,337,156			1,611,720			5,122,068			13,418,795			50			4,102,854
	FEI2			FF10S			FF10S2			FF20S			FF20S2			FF30S			FF30S2			FGP
Investment Activity:
Reinvested dividends	$	—			—			—			—			—			—			—			—
Mortality and expense risk charges (note 2)		(1,935,506	)		(54,011	)		(1,385,556	)		(96,913	)		(4,380,419	)		(75,687	)		(333,866	)		(3,407,991	)
Net investment income (loss)		(1,935,506	)		(54,011	)		(1,385,556	)		(96,913	)		(4,380,419	)		(75,687	)		(333,866	)		(3,407,991	)
Realized gain (loss) on investments		(3,469,783	)		123,227			(331,960	)		140,692			(262,340	)		(71,033	)		(798,513	)		4,076,464
Change in unrealized gain (loss) on investments		24,389,835			383,716			11,518,407			919,335			40,567,703			1,003,350			3,993,615			52,657,889
Net gain (loss) on investments		20,920,052			506,943			11,186,447			1,060,027			40,305,363			932,317			3,195,102			56,734,353
Reinvested capital gains		4,126,627			28,425			603,207			37,945			1,417,914			20,418			68,601			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	23,111,173			481,357			10,404,098			1,001,059			37,342,858			877,048			2,929,837			53,326,362

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	FG2			FHIPR			FIGBS			FIGBP2			FMCS			FMC2			FOP			FOPR
Investment Activity:
Reinvested dividends	$	—			12,606			—			—			—			—			—			—
Mortality and expense risk charges (note 2)		(1,153,865	)		(235,754	)		(269,780	)		(5,115,781	)		(243,076	)		(2,869,897	)		(506,874	)		(235,079	)
Net investment income (loss)		(1,153,865	)		(223,148	)		(269,780	)		(5,115,781	)		(243,076	)		(2,869,897	)		(506,874	)		(235,079	)
Realized gain (loss) on investments		(90,546	)		(33,021	)		533,608			2,249,783			1,523,482			(516,829	)		406,041			(1,182,333	)
Change in unrealized gain (loss) on investments		15,985,593			2,466,448			697,452			16,107,054			1,314,068			28,514,270			6,268,501			4,273,957
Net gain (loss) on investments		15,895,047			2,433,427			1,231,060			18,356,837			2,837,550			27,997,441			6,674,542			3,091,624
Reinvested capital gains		—			—			198,417			3,004,681			4,903			48,504			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	14,741,182			2,210,279			1,159,697			16,245,737			2,599,377			25,176,048			6,167,668			2,856,545
	FO2			FO2R			FVSS			FTVIS2			FTVRD2			FTVSV2			FTVDM3			TIF2
Investment Activity:
Reinvested dividends	$	—			—			—			8,978,151			932,892			1,058,904			394,282			98,990
Mortality and expense risk charges (note 2)		(24,892	)		(673,466	)		(61,678	)		(1,572,425	)		(683,009	)		(1,676,104	)		(321,626	)		(36,677	)
Net investment income (loss)		(24,892	)		(673,466	)		(61,678	)		7,405,726			249,883			(617,200	)		72,656			62,313
Realized gain (loss) on investments		(37,993	)		(3,637,238	)		475,539			(2,154,652	)		1,649,986			12,774,812			(476,777	)		14,483
Change in unrealized gain (loss) on investments		354,395			11,004,863			649,198			6,981,027			2,683,195			(1,261,381	)		1,935,338			203,577
Net gain (loss) on investments		316,402			7,367,625			1,124,737			4,826,375			4,333,181			11,513,431			1,458,561			218,060
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	291,510			6,694,159			1,063,059			12,232,101			4,583,064			10,896,231			1,531,217			280,373

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	TIF3			FTVGI3			FTVFA2			AMTB			AMTG			AMINS			AMTP			AMRS
Investment Activity:
Reinvested dividends	$	2,104,898			7,232,019			651,082			—			—			—			—			—
Mortality and expense risk charges (note 2)		(850,873	)		(1,236,560	)		(278,850	)		(2,122,567	)		(138	)		(1	)		(157	)		(1	)
Net investment income (loss)		1,254,025			5,995,459			372,232			(2,122,567	)		(138	)		(1	)		(157	)		(1	)
Realized gain (loss) on investments		1,229,877			460,074			272,425			(4,879,953	)		169			(352	)		455			—
Change in unrealized gain (loss) on investments		3,393,416			3,456,503			1,668,150			12,148,779			1,399			9			1,669			—
Net gain (loss) on investments		4,623,293			3,916,577			1,940,575			7,268,826			1,568			(343	)		2,124			—
Reinvested capital gains		—			182,992			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	5,877,318			10,095,028			2,312,807			5,146,259			1,430			(344	)		1,967			(1	)
	AMFAS			AMSRS			OVMS			OVB			OVGS3			OVGS4			OVGS			OVGSS
Investment Activity:
Reinvested dividends	$	—			—			530,976			1,701,235			1,071,665			1,198,500			2,228,927			139,285
Mortality and expense risk charges (note 2)		(44,717	)		(294,558	)		(397,702	)		(351,223	)		(494,832	)		(677,752	)		(1,036,805	)		(77,117	)
Net investment income (loss)		(44,717	)		(294,558	)		133,274			1,350,012			576,833			520,748			1,192,122			62,168
Realized gain (loss) on investments		34,152			(459,409	)		(1,711,759	)		(2,225,463	)		235,737			(1,571,698	)		5,580,498			109,424
Change in unrealized gain (loss) on investments		513,464			2,834,099			5,225,742			3,567,350			4,875,745			7,614,777			4,803,118			634,745
Net gain (loss) on investments		547,616			2,374,690			3,513,983			1,341,887			5,111,482			6,043,079			10,383,616			744,169
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	502,899			2,080,132			3,647,257			2,691,899			5,688,315			6,563,827			11,575,738			806,337

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	OVHI3			OVHI4			OVHI			OVHIS			OVGI			OVGIS			OVSC			OVSCS
Investment Activity:
Reinvested dividends	$	54,444			554,166			1,835			233,148			123,584			1,389,435			25,251			173,492
Mortality and expense risk charges (note 2)		(5,316	)		(72,674	)		(179	)		(26,752	)		(123,625	)		(2,727,596	)		(44,160	)		(627,049	)
Net investment income (loss)		49,128			481,492			1,656			206,396			(41	)		(1,338,161	)		(18,909	)		(453,557	)
Realized gain (loss) on investments		(10,119	)		6,601			(19,762	)		(1,216,696	)		193,416			(2,085,698	)		288,169			3,003,299
Change in unrealized gain (loss) on investments		18,246			175,172			20,347			1,272,144			1,605,393			35,521,507			221,878			3,442,207
Net gain (loss) on investments		8,127			181,773			585			55,448			1,798,809			33,435,809			510,047			6,445,506
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	57,255			663,265			2,241			261,844			1,798,768			32,097,648			491,138			5,991,949
	OVAG			PMVAAD			PMVFAD			PMVLAD			PMVTRD			PVGIB			PVTIGB			PVTVB
Investment Activity:
Reinvested dividends	$	—			89,195			1,052,567			3,960,139			2,036,945			48,232			8,144			9,711
Mortality and expense risk charges (note 2)		(106,481	)		(18,752	)		(246,547	)		(3,539,450	)		(1,270,753	)		(30,819	)		(4,090	)		(29,566	)
Net investment income (loss)		(106,481	)		70,443			806,020			420,689			766,192			17,413			4,054			(19,855	)
Realized gain (loss) on investments		77,073			158			388,797			810,228			33,571			(272,381	)		(18,934	)		76,197
Change in unrealized gain (loss) on investments		1,775,823			184,910			223,068			10,510,740			6,953,655			586,459			59,921			257,964
Net gain (loss) on investments		1,852,896			185,068			611,865			11,320,968			6,987,226			314,078			40,987			334,161
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,746,415			255,511			1,417,885			11,741,657			7,753,418			331,491			45,041			314,306

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	ACEG2			AVBV2			AVCA2			AVCD2			VYDS			TRBCG2			TRHS2			VWHAS
Investment Activity:
Reinvested dividends	$	—			—			—			—			2,031			—			—			65,867
Mortality and expense risk charges (note 2)		(36,560	)		(23	)		(32,047	)		(126,084	)		(3,547	)		—			(466,990	)		(29,337	)
Net investment income (loss)		(36,560	)		(23	)		(32,047	)		(126,084	)		(1,516	)		—			(466,990	)		36,530
Realized gain (loss) on investments		(26,459	)		652			(342,665	)		5,254,486			(696	)		(105	)		619,525			(19,605	)
Change in unrealized gain (loss) on investments		(82,349	)		(133	)		1,202,582			(2,195,190	)		50,371			12			11,131,466			413,752
Net gain (loss) on investments		(108,808	)		519			859,917			3,059,296			49,675			(93	)		11,750,991			394,147
Reinvested capital gains		—			—			—			—			—			—			—			109,899
Net increase (decrease) in contract owners’ equity resulting from operations	$	(145,368	)		496			827,870			2,933,212			48,159			(93	)		11,284,001			540,576
	VWBFR			VWBF			VWEMR			VWEM			VWHAR			VWHA			WRASP			WRHIP
Investment Activity:
Reinvested dividends	$	124,972			251,712			—			—			—			427,502			1,212,200			5,974
Mortality and expense risk charges (note 2)		(24,809	)		(139,428	)		(59,389	)		(225,862	)		(289,294	)		(537,783	)		(1,229,781	)		(30,982	)
Net investment income (loss)		100,163			112,284			(59,389	)		(225,862	)		(289,294	)		(110,281	)		(17,581	)		(25,008	)
Realized gain (loss) on investments		79,263			(110,378	)		2,130,804			(1,381,716	)		(5,416,237	)		1,977,268			714,328			15,995
Change in unrealized gain (loss) on investments		(149,144	)		295,238			90,670			3,634,684			4,221,023			(5,883,010	)		10,793,757			279,996
Net gain (loss) on investments		(69,881	)		184,860			2,221,474			2,252,968			(1,195,214	)		(3,905,742	)		11,508,085			295,991
Reinvested capital gains		78,829			158,772			—			—			4,042,343			2,563,706			—			—
Net increase (decrease) in contract owners’ equity resulting from operations	$	109,111			455,916			2,162,085			2,027,106			2,557,835			(1,452,317	)		11,490,504			270,983

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Nine Month Period Ended September 30, 2012 (Unaudited)

	WRMCG			WRPCP			WRPMP			WRPMAP			WRPMCP			SVDF			SVOF			WFVSCG
Investment Activity:
Reinvested dividends	$	—			11,326			68,462			134,476			21,505			—			248			—
Mortality and expense risk charges (note 2)		(9,408	)		(3,573	)		(22,041	)		(50,854	)		(7,414	)		(394	)		(2,579	)		(404,075	)
Net investment income (loss)		(9,408	)		7,753			46,421			83,622			14,091			(394	)		(2,331	)		(404,075	)
Realized gain (loss) on investments		(5,959	)		(438	)		(2,940	)		(15,152	)		(4,187	)		977			3,606			983,488
Change in unrealized gain (loss) on investments		138,855			29,529			315,979			915,177			89,008			4,848			23,355			1,300,220
Net gain (loss) on investments		132,896			29,091			313,039			900,025			84,821			5,825			26,961			2,283,708
Reinvested capital gains		12,611			35,666			196,645			441,576			66,185			—			91			1,636,874
Net increase (decrease) in contract owners’ equity resulting from operations	$	136,099			72,510			556,105			1,425,223			165,097			5,431			24,721			3,516,507
	WFVSMV			WFVTRB			WFVOG2
Investment Activity:
Reinvested dividends	$	71			3,488			—
Mortality and expense risk charges (note 2)		(68	)		(2,785	)		(655	)
Net investment income (loss)		3			703			(655	)
Realized gain (loss) on investments		(323	)		230			2,484
Change in unrealized gain (loss) on investments		1,545			7,073			4,014
Net gain (loss) on investments		1,222			7,303			6,498
Reinvested capital gains		—			5,572			3,480
Net increase (decrease) in contract owners’ equity resulting from operations	$	1,225			13,578			9,323

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	Total			ALMCS			ALVDAB			AFGF			AFHY			AFGC			MLVGA3			CHSMM
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(193,888,150	)		(3,513	)		(2,235	)		(70,610	)		(5,941	)		(8,408	)		(1,628,599	)		(92,759	)
Realized gain (loss) on investments		93,622,820			(35,303	)		151			80,847			26,863			14,014			730,213			—
Change in unrealized gain (loss) on investments		2,612,129,270			94,067			19,742			1,413,825			137,247			(21,695	)		10,048,690			—
Reinvested capital gains		330,402,964			—			404			—			—			32,139			10,669			—
Net increase (decrease) in contract owners’ equity resulting from operations		2,842,266,904			55,251			18,062			1,424,062			158,169			16,050			9,160,973			(92,759	)
Equity transactions:
Purchase payments received from contract owners (note 3)		3,360,559,858			—			1,004,759			18,429			2,057			196			22,574,170			3,815,823
Transfers between funds		33,542			67,405			56,433			(51,594	)		(1,016,820	)		(67,812	)		(992,489	)		(2,302,951	)
Redemptions (note 3)		(2,268,163,063	)		(27,091	)		(807	)		(352,255	)		(27,077	)		(53,927	)		(7,482,444	)		(3,038,006	)
Annuity benefits		(1,230,267	)		—			—			(477	)		(1,042	)		(182	)		—			—
Contract maintenance charges (note 2)		(134,342,295	)		(5	)		—			(2,682	)		(417	)		(463	)		(7,987	)		(376	)
Contingent deferred sales charges (note 2)		(15,255,618	)		—			—			—			—			—			(29,446	)		—
Adjustments to maintain reserves		(815,173	)		(3	)		2			401			635			104			(513	)		39
Net equity transactions		940,786,984			40,306			1,060,387			(388,178	)		(1,042,664	)		(122,084	)		14,061,291			(1,525,471	)
Net change in contract owners’ equity		3,783,053,888			95,557			1,078,449			1,035,884			(884,495	)		(106,034	)		23,222,264			(1,618,230	)
Contract owners’ equity beginning of period		29,793,903,432			393,138			—			9,763,807			1,811,691			1,223,501			123,669,985			14,443,732
Contract owners’ equity end of period	$	33,576,957,320			488,695			1,078,449			10,799,691			927,196			1,117,467			146,892,249			12,825,502
CHANGES IN UNITS:
Beginning units		2,517,758,479			32,647			—			133,488			37,304			34,457			10,016,317			1,391,226
Units purchased		541,200,719			7,017			108,902			227			64,569			6			2,764,359			792,260
Units redeemed		(425,514,008	)		(3,930	)		(465	)		(5,043	)		(84,531	)		(3,427	)		(1,676,815	)		(939,556	)
Ending units		2,633,445,190			35,734			108,437			128,672			17,342			31,036			11,103,861			1,243,930

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	DSIF			DSIFS			DSRG			GVGMNS			HVIE			HVSIT			IVMCC2			IVKMG2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	866,473			146,637			(75,217	)		(203	)		(86,223	)		(198,547	)		(2,760	)		(147,300	)
Realized gain (loss) on investments		6,883,537			(473,006	)		1,771,751			20			(47,960	)		160,409			(189	)		(124,524	)
Change in unrealized gain (loss) on investments		12,065,372			11,306,800			3,144,859			1,123			644,907			2,368,638			16,410			(524,013	)
Reinvested capital gains		10,738,166			5,772,701			—			—			—			—			7,869			6,819
Net increase (decrease) in contract owners’ equity resulting from operations		30,553,548			16,753,132			4,841,393			940			510,724			2,330,500			21,330			(789,018	)
Equity transactions:
Purchase payments received from contract owners (note 3)		2,237,053			12,267,792			541,760			95,185			2,305,287			4,873,822			516,434			166,305
Transfers between funds		(1,292,757	)		(2,399,593	)		(31,021	)		25,104			769,254			(621,082	)		386,427			23,478,797
Redemptions (note 3)		(23,663,116	)		(10,017,956	)		(4,184,308	)		—			(483,815	)		(490,779	)		(1,083	)		(1,081,958	)
Annuity benefits		(39,365	)		(27,103	)		(2,024	)		—			—			—			—			—
Contract maintenance charges (note 2)		(98,589	)		(237,739	)		(26,336	)		—			(31,415	)		(72,530	)		(220	)		(42,251	)
Contingent deferred sales charges (note 2)		(16,865	)		(59,815	)		(7,502	)		—			(8,253	)		(8,027	)		—			(7,376	)
Adjustments to maintain reserves		1,202			(1,824	)		27			(10	)		(134	)		(220	)		(46	)		164,336
Net equity transactions		(22,872,437	)		(476,238	)		(3,709,404	)		120,279			2,550,924			3,681,184			901,512			22,677,853
Net change in contract owners’ equity		7,681,111			16,276,894			1,131,989			121,219			3,061,648			6,011,684			922,842			21,888,835
Contract owners’ equity beginning of period		210,978,801			114,015,519			39,114,157			—			6,042,943			13,876,653			—			—
Contract owners’ equity end of period	$	218,659,912			130,292,413			40,246,146			121,219			9,104,591			19,888,337			922,842			21,888,835
CHANGES IN UNITS:
Beginning units		7,343,204			7,723,730			1,619,263			—			672,762			1,261,261			—			—
Units purchased		270,630			1,895,447			44,364			13,101			379,510			756,129			95,434			2,518,443
Units redeemed		(1,003,072	)		(1,889,322	)		(184,858	)		(925	)		(108,510	)		(440,132	)		(143	)		(258,503	)
Ending units		6,610,762			7,729,855			1,478,769			12,176			943,762			1,577,258			95,291			2,259,940

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	JPMMV1			JABS			JACAS			JAGTS2			JAGTS			JAIGS2			JAIGS			MIGSC
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	3,136			33,523			(1,194,339	)		(64,891	)		(113,969	)		(442,260	)		(150,888	)		(87,522	)
Realized gain (loss) on investments		233,139			(102,500	)		98,887			814,110			757,767			2,355,718			(1,691,621	)		501,839
Change in unrealized gain (loss) on investments		940,465			441,792			25,831,807			1,264,910			(756,513	)		8,375,770			(16,352,063	)		423,044
Reinvested capital gains		—			817,709			—			—			—			—			9,366,961			437,026
Net increase (decrease) in contract owners’ equity resulting from operations		1,176,740			1,190,524			24,736,355			2,014,129			(112,715	)		10,289,228			(8,827,611	)		1,274,387
Equity transactions:
Purchase payments received from contract owners (note 3)		162,697			18,298			11,362,442			734,093			784,127			1,519,553			1,048,378			114,097
Transfers between funds		3,370,303			822,565			3,193,694			(12,984,772	)		15,500,706			(90,830,149	)		83,862,569			(237,636	)
Redemptions (note 3)		(469,788	)		(932,822	)		(8,398,072	)		(694,552	)		(796,277	)		(4,009,788	)		(4,596,809	)		(1,684,622	)
Annuity benefits		—			—			—			—			(336	)		(7,132	)		(6,788	)		—
Contract maintenance charges (note 2)		(2,200	)		(697	)		(380,679	)		(968	)		(2,312	)		(6,911	)		(9,079	)		(782	)
Contingent deferred sales charges (note 2)		(511	)		(793	)		(70,185	)		(706	)		(1,052	)		(22,974	)		(21,130	)		(3,147	)
Adjustments to maintain reserves		(70	)		(95	)		(9,601	)		(118	)		2,529			(112,088	)		121,165			(3,807	)
Net equity transactions		3,060,431			(93,544	)		5,697,599			(12,947,023	)		15,487,385			(93,469,489	)		80,398,306			(1,815,897	)
Net change in contract owners’ equity		4,237,171			1,096,980			30,433,954			(10,932,894	)		15,374,670			(83,180,261	)		71,570,695			(541,510	)
Contract owners’ equity beginning of period		5,854,364			10,841,461			111,237,782			10,932,894			1,755,826			83,180,261			5,139,442			9,464,140
Contract owners’ equity end of period	$	10,091,535			11,938,441			141,671,736			—			17,130,496			—			76,710,137			8,922,630
CHANGES IN UNITS:
Beginning units		404,489			655,718			8,157,179			921,943			378,492			4,453,401			391,151			638,301
Units purchased		262,669			92,092			2,184,661			489,186			2,502,937			327,193			4,886,156			78,658
Units redeemed		(66,194	)		(97,576	)		(1,828,234	)		(1,411,129	)		(456,543	)		(4,780,594	)		(844,838	)		(192,762	)
Ending units		600,964			650,234			8,513,606			—			2,424,886			—			4,432,469			524,197

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	MNDSC			MVFSC			MVIVSC			MSVFI			MSVF2			MSEM			MSEMB			VKVGR2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(3,377	)		555,432			248,405			52,220			625,175			64,742			17,208			(51	)
Realized gain (loss) on investments		(681	)		14,965,535			342,687			39,730			216,312			54,343			5,389			4
Change in unrealized gain (loss) on investments		1,185			23,323,870			6,624,827			12,818			529,414			315,328			100,083			2,041
Reinvested capital gains		72,688			2,388,656			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		69,815			41,233,493			7,215,919			104,768			1,370,901			434,413			122,680			1,994
Equity transactions:
Purchase payments received from contract owners (note 3)		413,090			16,148,891			14,384,677			11,138			104,062			—			—			—
Transfers between funds		739,492			(19,769,844	)		7,302,243			64,201			(38,924	)		(44,080	)		(36,747	)		25,187
Redemptions (note 3)		(3,454	)		(29,213,624	)		(1,943,280	)		(312,344	)		(2,047,320	)		(491,860	)		(72,899	)		—
Annuity benefits		—			(3,741	)		—			—			(5,468	)		—			—			—
Contract maintenance charges (note 2)		(1,130	)		(1,018,771	)		(320,731	)		(392	)		(18,346	)		(1,608	)		(131	)		—
Contingent deferred sales charges (note 2)		(33	)		(163,240	)		(25,865	)		(61	)		(9,128	)		(190	)		(69	)		—
Adjustments to maintain reserves		(38	)		(574	)		(507	)		(5	)		(234	)		(104	)		(52	)		(1	)
Net equity transactions		1,147,927			(34,020,903	)		19,396,537			(237,463	)		(2,015,358	)		(537,842	)		(109,898	)		25,186
Net change in contract owners’ equity		1,217,742			7,212,590			26,612,456			(132,695	)		(644,457	)		(103,429	)		12,782			27,180
Contract owners’ equity beginning of period		—			317,203,619			50,011,075			1,592,352			19,892,492			3,579,650			1,015,627			—
Contract owners’ equity end of period	$	1,217,742			324,416,209			76,623,531			1,459,657			19,248,035			3,476,221			1,028,409			27,180
CHANGES IN UNITS:
Beginning units		—			19,464,081			4,818,705			139,216			1,719,934			146,190			47,925			—
Units purchased		124,722			2,613,487			2,643,879			21,743			122,549			(1	)		652			2,953
Units redeemed		(5,541	)		(4,583,522	)		(860,169	)		(42,206	)		(291,386	)		(20,496	)		(5,575	)		—
Ending units		119,181			17,494,046			6,602,415			118,753			1,551,097			125,693			43,002			2,953

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	MSVRE			MSVREB			VFMG2			NVAMV1			NVAMV2			GVAAA2			GVABD2			GVAGG2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(64	)		(24	)		(16,521	)		(434,740	)		(1,476,245	)		6,466,921			12,591,610			(320,416	)
Realized gain (loss) on investments		799			1,400			(289,770	)		524,468			1,150,672			1,084,931			998,061			(1,751,184	)
Change in unrealized gain (loss) on investments		4,061			(932	)		349,749			3,919,489			11,066,231			373,391,149			24,459,019			19,370,230
Reinvested capital gains		—			—			—			2,037,600			5,941,559			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		4,796			444			43,458			6,046,817			16,682,217			380,943,001			38,048,690			17,298,630
Equity transactions:
Purchase payments received from contract owners (note 3)		(285	)		(39,125	)		6,578			580,574			6,075,409			462,986,353			164,944,916			12,250,720
Transfers between funds		113			39,208			(2,952,809	)		(1,883,077	)		(10,727,926	)		5,005,754			29,035,260			(2,017,782	)
Redemptions (note 3)		—			—			(407,306	)		(5,997,306	)		(11,295,000	)		(106,237,525	)		(54,568,824	)		(7,759,512	)
Annuity benefits		(2,227	)		(511	)		—			(2,233	)		(13,260	)		(2,153	)		(25,525	)		(5,347	)
Contract maintenance charges (note 2)		172			(2	)		(1,246	)		(18,278	)		(380,794	)		(21,251,201	)		(5,842,782	)		(430,195	)
Contingent deferred sales charges (note 2)		—			—			(3	)		(9,367	)		(81,301	)		(1,439,214	)		(491,447	)		(74,274	)
Adjustments to maintain reserves		(3,245	)		42			(26	)		197			(1,011	)		(1,288	)		(620	)		(559	)
Net equity transactions		(5,472	)		(388	)		(3,354,812	)		(7,329,490	)		(16,423,883	)		339,060,726			133,050,978			1,963,051
Net change in contract owners’ equity		(676	)		56			(3,311,354	)		(1,282,673	)		258,334			720,003,727			171,099,668			19,261,681
Contract owners’ equity beginning of period		35,079			4,945			3,311,354			52,140,929			147,342,084			3,003,377,639			1,024,636,255			116,531,942
Contract owners’ equity end of period	$	34,403			5,001			—			50,858,256			147,600,418			3,723,381,366			1,195,735,923			135,793,623
CHANGES IN UNITS:
Beginning units		—			27			293,739			3,763,621			10,757,342			298,878,335			91,572,178			11,697,772
Units purchased		(8	)		(3,308	)		59,437			70,768			871,395			52,527,286			20,994,654			2,042,558
Units redeemed		8			3,308			(353,176	)		(567,614	)		(2,014,129	)		(21,187,370	)		(9,468,698	)		(1,839,048	)
Ending units		—			27			—			3,266,775			9,614,608			330,218,251			103,098,134			11,901,282

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	GVAGR2			GVAGI2			HIBF			HIBF3			GEM			GEM2			GEM3			GEM6
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(2,010,233	)		(1,483,659	)		(36,114	)		(514,678	)		(2,259	)		(13,161	)		(238,751	)		(587,970	)
Realized gain (loss) on investments		(4,685,877	)		(1,185,939	)		(163,977	)		434,134			(55,723	)		(199,596	)		(1,547,307	)		(125,215	)
Change in unrealized gain (loss) on investments		34,996,485			144,621,515			865,111			9,219,287			88,852			323,365			3,796,486			4,003,033
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		28,300,375			141,951,917			665,020			9,138,743			30,870			110,608			2,010,428			3,289,848
Equity transactions:
Purchase payments received from contract owners (note 3)		18,086,795			171,454,616			29			7,523,351			—			(49	)		415,705			5,596,712
Transfers between funds		(10,704,437	)		(15,573,443	)		(239,650	)		(2,702,422	)		(20,766	)		(19,309	)		(901,822	)		2,489,070
Redemptions (note 3)		(11,408,058	)		(52,359,484	)		(995,680	)		(7,951,700	)		(106,844	)		(272,345	)		(2,740,213	)		(4,192,539	)
Annuity benefits		(2,023	)		(1,078	)		—			(7,659	)		(414	)		—			(1,992	)		(1,361	)
Contract maintenance charges (note 2)		(633,744	)		(5,916,845	)		(741	)		(5,359	)		(96	)		(226	)		(8,980	)		(4,887	)
Contingent deferred sales charges (note 2)		(101,045	)		(488,956	)		(370	)		(47,845	)		(1	)		(163	)		(4,187	)		(36,381	)
Adjustments to maintain reserves		(683	)		(1,437	)		(153	)		(516	)		(209	)		(15	)		(1,756	)		(1,194	)
Net equity transactions		(4,763,195	)		97,113,373			(1,236,565	)		(3,192,150	)		(128,330	)		(292,107	)		(3,243,245	)		3,849,420
Net change in contract owners’ equity		23,537,180			239,065,290			(571,545	)		5,946,593			(97,460	)		(181,499	)		(1,232,817	)		7,139,268
Contract owners’ equity beginning of period		203,065,667			1,005,300,580			6,839,009			97,202,206			297,368			1,272,348			23,472,677			43,888,708
Contract owners’ equity end of period	$	226,602,847			1,244,365,870			6,267,464			103,148,799			199,908			1,090,849			22,239,860			51,027,976
CHANGES IN UNITS:
Beginning units		21,925,386			125,082,554			405,899			7,233,930			14,503			44,117			1,075,051			2,598,477
Units purchased		3,055,423			23,446,014			24,268			3,439,591			—			284			112,304			847,312
Units redeemed		(3,521,495	)		(12,492,800	)		(94,308	)		(3,717,840	)		(5,767	)		(9,570	)		(250,950	)		(657,959	)
Ending units		21,459,314			136,035,768			335,859			6,955,681			8,736			34,831			936,405			2,787,830

(Continued)

33

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	GIG			GIG3			NVIE6			NVNMO1			NVNMO2			NVNSR1			NVNSR2			NVCRA2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(355	)		(252,352	)		(292,530	)		(702,084	)		(260,134	)		(20,944	)		(2,126,556	)		(193,627	)
Realized gain (loss) on investments		115			544,057			491,347			831,659			(499,305	)		8,321			2,257,314			186,369
Change in unrealized gain (loss) on investments		3,933			2,192,168			2,116,244			2,706,406			1,589,688			184,093			13,137,319			1,631,361
Reinvested capital gains		—			—			—			5,060,113			1,691,067			—			—			1,042,883
Net increase (decrease) in contract owners’ equity resulting from operations		3,693			2,483,873			2,315,061			7,896,094			2,521,316			171,470			13,268,077			2,666,986
Equity transactions:
Purchase payments received from contract owners (note 3)		—			267,089			1,632,587			670,303			3,029,482			194,510			3,742,015			2,028,372
Transfers between funds		—			(527,060	)		(1,262,262	)		(2,377,342	)		(4,526,127	)		158,929			(14,874,097	)		(78,406	)
Redemptions (note 3)		—			(2,743,395	)		(1,592,942	)		(7,638,174	)		(854,592	)		(298,239	)		(17,312,986	)		(1,131,657	)
Annuity benefits		—			(5,368	)		—			(24,736	)		—			—			(2,142	)		—
Contract maintenance charges (note 2)		(19	)		(8,892	)		(82,063	)		(29,185	)		(117,345	)		(862	)		(530,894	)		(2,870	)
Contingent deferred sales charges (note 2)		—			(2,141	)		(24,064	)		(6,337	)		(9,706	)		(1,393	)		(99,632	)		(9,477	)
Adjustments to maintain reserves		(2	)		158			(322	)		(151	)		(288	)		(44	)		(394	)		(194	)
Net equity transactions		(21	)		(3,019,609	)		(1,329,066	)		(9,405,622	)		(2,478,576	)		52,901			(29,078,130	)		805,768
Net change in contract owners’ equity		3,672			(535,736	)		985,995			(1,509,528	)		42,740			224,371			(15,810,053	)		3,472,754
Contract owners’ equity beginning of period		35,746			25,375,025			24,130,603			72,695,987			23,656,246			2,108,691			174,956,881			22,508,074
Contract owners’ equity end of period	$	39,418			24,839,289			25,116,598			71,186,459			23,698,986			2,333,062			159,146,828			25,980,828
CHANGES IN UNITS:
Beginning units		3,386			1,510,544			3,528,777			9,418,341			3,122,319			227,602			19,248,367			2,675,730
Units purchased		—			30,410			497,044			137,673			557,124			57,135			2,119,335			347,282
Units redeemed		(2	)		(199,877	)		(684,917	)		(1,285,276	)		(868,527	)		(52,419	)		(5,184,696	)		(257,792	)
Ending units		3,384			1,341,077			3,340,904			8,270,738			2,810,916			232,318			16,183,006			2,765,220

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVCRB2			NVCCA2			NVCCN2			NVCMD2			NVCMA2			NVCMC2			NVCBD1			NVCBD2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(13,049,785	)		(18,381,546	)		(6,437,380	)		(16,923,736	)		(3,030,252	)		(5,645,889	)		(23,819	)		(1,461,060	)
Realized gain (loss) on investments		283,354			83,819			6,835,270			314,448			705,205			527,359			37,742			2,485,710
Change in unrealized gain (loss) on investments		99,938,608			192,171,546			21,931,681			156,611,602			28,628,580			35,524,423			125,484			4,471,371
Reinvested capital gains		18,208,571			33,278,540			9,671,320			33,776,138			9,486,110			12,080,603			20,878			791,448
Net increase (decrease) in contract owners’ equity resulting from operations		105,380,748			207,152,359			32,000,891			173,778,452			35,789,643			42,486,496			160,285			6,287,469
Equity transactions:
Purchase payments received from contract owners (note 3)		219,645,679			255,972,371			101,071,486			241,747,737			8,126,372			108,770,057			119,469			4,124,382
Transfers between funds		(5,767,201	)		(2,856,817	)		9,781,227			(10,846,853	)		(1,421,396	)		9,905,150			699,974			1,797,037
Redemptions (note 3)		(61,842,524	)		(38,777,273	)		(25,454,879	)		(59,261,650	)		(13,090,368	)		(21,426,877	)		(509,626	)		(17,766,329	)
Annuity benefits		—			—			—			—			—			—			—			(1,662	)
Contract maintenance charges (note 2)		(7,867,827	)		(15,882,782	)		(4,032,868	)		(13,663,034	)		(1,493,284	)		(3,787,808	)		(787	)		(367,637	)
Contingent deferred sales charges (note 2)		(700,307	)		(784,735	)		(521,490	)		(1,112,616	)		(122,678	)		(386,142	)		(553	)		(74,048	)
Adjustments to maintain reserves		(845	)		62			(498	)		(870	)		(328	)		(484	)		(42	)		(384	)
Net equity transactions		143,466,975			197,670,826			80,842,978			156,862,714			(8,001,682	)		93,073,896			308,435			(12,288,641	)
Net change in contract owners’ equity		248,847,723			404,823,185			112,843,869			330,641,166			27,787,961			135,560,392			468,720			(6,001,172	)
Contract owners’ equity beginning of period		1,259,936,055			1,993,782,374			581,434,652			1,863,452,955			343,084,881			556,682,830			2,763,344			127,561,730
Contract owners’ equity end of period	$	1,508,783,778			2,398,605,559			694,278,521			2,194,094,121			370,872,842			692,243,222			3,232,064			121,560,558
CHANGES IN UNITS:
Beginning units		128,328,881			215,720,584			54,984,947			194,824,445			38,634,829			54,955,819			235,110			11,130,478
Units purchased		27,820,970			32,355,811			18,960,032			29,686,785			1,717,928			13,729,474			130,634			2,910,701
Units redeemed		(14,133,168	)		(12,181,300	)		(11,556,001	)		(14,066,630	)		(2,556,754	)		(4,899,612	)		(104,897	)		(3,967,653	)
Ending units		142,016,683			235,895,095			62,388,978			210,444,600			37,796,003			63,785,681			260,847			10,073,526

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVLCP2			TRF			TRF2			GBF			CAF			CAF2			GVIX8			GVIDA
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(462,016	)		(1,151,239	)		(1,948,714	)		(4,031,496	)		(335,446	)		(195,468	)		(190,895	)		(3,473,037	)
Realized gain (loss) on investments		497,748			(124,962	)		1,105,122			3,015,898			1,953,652			161,768			671,086			(16,374,336	)
Change in unrealized gain (loss) on investments		1,448,925			14,856,039			17,576,667			(3,491,318	)		3,044,330			1,993,321			1,172,658			47,722,255
Reinvested capital gains		883,698			—			—			12,510,903			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		2,368,355			13,579,838			16,733,075			8,003,987			4,662,536			1,959,621			1,652,849			27,874,882
Equity transactions:
Purchase payments received from contract owners (note 3)		5,086,586			916,716			2,524,027			10,982,925			605,993			6,676,903			1,281,461			3,643,339
Transfers between funds		1,718,222			(1,987,230	)		(12,084,103	)		3,842,189			172,376			3,651,286			(2,573,847	)		(10,879,827	)
Redemptions (note 3)		(2,644,383	)		(12,797,514	)		(17,672,905	)		(45,021,140	)		(3,462,621	)		(283,328	)		(676,975	)		(47,500,958	)
Annuity benefits		—			(42,262	)		(1,484	)		(15,743	)		(20,895	)		—			—			(15,349	)
Contract maintenance charges (note 2)		(179,468	)		(71,274	)		(436,389	)		(779,585	)		(22,994	)		(55,137	)		(52,149	)		(38,418	)
Contingent deferred sales charges (note 2)		(27,135	)		(8,308	)		(104,253	)		(199,503	)		(2,364	)		(3,481	)		(3,566	)		(134,524	)
Adjustments to maintain reserves		(292	)		(40,219	)		(353	)		997			1,583			(213	)		(293	)		(91,994	)
Net equity transactions		3,953,530			(14,030,091	)		(27,775,460	)		(31,189,860	)		(2,728,922	)		9,986,030			(2,025,369	)		(55,017,731	)
Net change in contract owners’ equity		6,321,885			(450,253	)		(11,042,385	)		(23,185,873	)		1,933,614			11,945,651			(372,520	)		(27,142,849	)
Contract owners’ equity beginning of period		40,774,802			123,961,912			167,516,909			407,181,059			31,815,129			10,266,928			19,050,533			264,292,741
Contract owners’ equity end of period	$	47,096,687			123,511,659			156,474,524			383,995,186			33,748,743			22,212,579			18,678,013			237,149,892
CHANGES IN UNITS:
Beginning units		3,256,827			2,459,013			12,416,055			25,298,375			1,730,666			1,133,015			2,533,356			16,836,607
Units purchased		1,158,821			17,785			1,075,058			6,237,617			96,862			1,323,090			454,275			2,174,410
Units redeemed		(841,429	)		(296,133	)		(3,057,614	)		(8,132,466	)		(230,732	)		(317,370	)		(704,607	)		(5,479,074	)
Ending units		3,574,219			2,180,665			10,433,499			23,403,526			1,596,796			2,138,735			2,283,024			13,531,943

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVDBL2			NVDCA2			GVIDC			GVIDM			GVDMA			GVDMC			MCIF			SAM
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(6,500,742	)		(11,939,620	)		(6,578,607	)		(29,268,073	)		(15,652,547	)		(9,654,553	)		(1,060,509	)		(7,167,117	)
Realized gain (loss) on investments		707,001			5,148,837			(5,358	)		(353,228	)		(18,155,882	)		142,896			530,413			—
Change in unrealized gain (loss) on investments		36,475,170			82,071,208			17,739,756			215,420,590			153,339,593			50,049,479			5,316,057			—
Reinvested capital gains		6,606,231			13,157,136			8,323,406			—			—			3,269,186			6,960,670			—
Net increase (decrease) in contract owners’ equity resulting from operations		37,287,660			88,437,561			19,479,197			185,799,289			119,531,164			43,807,008			11,746,631			(7,167,117	)
Equity transactions:
Purchase payments received from contract owners (note 3)		150,262,418			186,483,061			104,348,384			173,531,769			11,371,985			81,567,265			6,249,287			191,851,107
Transfers between funds		14,094,772			5,493,649			23,040,166			(12,939,165	)		(25,729,600	)		799,767			(4,866,873	)		85,057,367
Redemptions (note 3)		(22,737,157	)		(16,226,421	)		(39,527,887	)		(224,003,889	)		(128,829,716	)		(87,547,787	)		(8,833,892	)		(263,478,451	)
Annuity benefits		—			—			(8,721	)		(84,517	)		—			(95,302	)		(8,233	)		(64,238	)
Contract maintenance charges (note 2)		(3,361,038	)		(7,658,773	)		(3,169,838	)		(9,643,403	)		(3,229,735	)		(2,919,861	)		(195,227	)		(916,249	)
Contingent deferred sales charges (note 2)		(347,482	)		(431,847	)		(532,145	)		(1,237,985	)		(635,711	)		(424,883	)		(41,011	)		(613,343	)
Adjustments to maintain reserves		(583	)		(538	)		(30,641	)		(38,203	)		(87,212	)		(34,254	)		(1,131	)		10,334
Net equity transactions		137,910,930			167,659,131			84,119,318			(74,415,393	)		(147,139,989	)		(8,655,055	)		(7,697,080	)		11,846,527
Net change in contract owners’ equity		175,198,590			256,096,692			103,598,515			111,383,896			(27,608,825	)		35,151,953			4,049,551			4,679,410
Contract owners’ equity beginning of period		489,089,921			906,298,809			518,575,478			2,362,793,548			1,253,194,315			756,335,353			98,415,415			654,554,435
Contract owners’ equity end of period	$	664,288,511			1,162,395,501			622,173,993			2,474,177,444			1,225,585,490			791,487,306			102,464,966			659,233,845
CHANGES IN UNITS:
Beginning units		39,506,703			69,667,022			40,657,415			163,597,374			80,738,644			55,287,171			5,247,331			52,755,926
Units purchased		15,561,498			17,407,167			14,726,784			23,244,609			4,596,332			12,735,573			704,305			64,398,999
Units redeemed		(4,909,299	)		(5,162,303	)		(8,215,780	)		(27,765,641	)		(13,664,010	)		(13,439,655	)		(1,074,450	)		(62,733,294	)
Ending units		50,158,902			81,911,886			47,168,419			159,076,342			71,670,966			54,583,089			4,877,186			54,421,631

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVMIG3			NVMIG6			GVDIV2			GVDIV3			GVDIV6			NVMLG1			NVMLG2			NVMLV1
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(335,521	)		(2,103,114	)		(6,028	)		(53,297	)		(663,180	)		(101,701	)		(1,439,131	)		(32,460	)
Realized gain (loss) on investments		717,293			(824,679	)		(75,423	)		(1,592,660	)		(1,468,340	)		343,314			8,367,260			(6,017	)
Change in unrealized gain (loss) on investments		2,935,225			18,817,294			121,467			1,996,014			5,403,091			1,100,492			8,273,020			456,301
Reinvested capital gains		—			—			—			—			—			241,936			2,775,096			—
Net increase (decrease) in contract owners’ equity resulting from operations		3,316,997			15,889,501			40,016			350,057			3,271,571			1,584,041			17,976,245			417,824
Equity transactions:
Purchase payments received from contract owners (note 3)		331,193			3,053,491			—			74,758			3,315,295			175,137			4,607,844			133,723
Transfers between funds		(414,570	)		(4,010,190	)		(9,598	)		(326,945	)		1,273,982			148,235			(10,689,760	)		(162,201	)
Redemptions (note 3)		(3,448,369	)		(16,150,315	)		(95,552	)		(638,545	)		(2,742,851	)		(1,708,592	)		(11,931,502	)		(539,002	)
Annuity benefits		(1,078	)		(397	)		—						(533	)		(1,259	)		(7,223	)		—
Contract maintenance charges (note 2)		(12,967	)		(514,842	)		(57	)		(1,722	)		(247,793	)		(4,363	)		(265,730	)		(1,247	)
Contingent deferred sales charges (note 2)		(6,907	)		(105,958	)		(53	)		(1,172	)		(34,099	)		(4,123	)		(74,806	)		(2,101	)
Adjustments to maintain reserves		(90	)		(485	)		(56	)		(73	)		(469	)		100			(12,797	)		(60	)
Net equity transactions		(3,552,788	)		(17,728,696	)		(105,316	)		(893,699	)		1,563,532			(1,394,865	)		(18,373,974	)		(570,888	)
Net change in contract owners’ equity		(235,791	)		(1,839,195	)		(65,300	)		(543,642	)		4,835,103			189,176			(397,729	)		(153,064	)
Contract owners’ equity beginning of period		33,825,091			166,931,769			559,837			5,441,335			52,397,141			9,767,057			113,541,164			3,307,487
Contract owners’ equity end of period	$	33,589,300			165,092,574			494,537			4,897,693			57,232,244			9,956,233			113,143,435			3,154,423
CHANGES IN UNITS:
Beginning units		4,100,818			20,747,296			44,925			415,870			5,935,093			1,104,279			13,148,749			341,497
Units purchased		72,833			1,929,503			425			47,243			1,238,623			173,004			1,729,364			24,005
Units redeemed		(479,451	)		(4,023,768	)		(8,273	)		(113,547	)		(1,093,857	)		(313,914	)		(3,636,057	)		(77,981	)
Ending units		3,694,200			18,653,031			37,077			349,566			6,079,859			963,369			11,242,056			287,521

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	NVMLV2			NVMMG1			NVMMG2			NVMMV2			SCGF			SCGF2			SCVF			SCVF2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(530,459	)		(1,824,909	)		(1,617,443	)		(2,662,384	)		(60,522	)		(243,551	)		(306,062	)		(251,877	)
Realized gain (loss) on investments		600,274			7,110,401			10,811,510			8,476,597			583,593			849,796			(462,664	)		1,680,310
Change in unrealized gain (loss) on investments		5,184,910			2,055,548			(3,902,739	)		(3,390,341	)		409,131			2,343,083			5,374,566			1,639,064
Reinvested capital gains		—			16,720,810			11,722,621			25,062,241			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		5,254,725			24,061,850			17,013,949			27,486,113			932,202			2,949,328			4,605,840			3,067,497
Equity transactions:
Purchase payments received from contract owners (note 3)		4,278,273			1,234,631			3,490,935			3,061,402			129,929			1,413,713			422,405			1,273,206
Transfers between funds		1,733,688			(2,307,225	)		(10,975,375	)		(12,417,857	)		(604,724	)		(3,383,300	)		(168,403	)		(2,387,222	)
Redemptions (note 3)		(3,738,497	)		(17,549,610	)		(12,486,988	)		(24,677,137	)		(626,427	)		(1,863,686	)		(3,523,079	)		(1,818,618	)
Annuity benefits		—			(14,167	)		(1,415	)		(376	)		(1,557	)		(773	)		(6,149	)		—
Contract maintenance charges (note 2)		(129,730	)		(88,514	)		(362,306	)		(388,749	)		(2,064	)		(31,510	)		(11,479	)		(34,610	)
Contingent deferred sales charges (note 2)		(23,796	)		(9,934	)		(82,820	)		(78,704	)		(1,884	)		(37,724	)		(2,781	)		(9,661	)
Adjustments to maintain reserves		(4,780	)		1,988			(594	)		(645	)		(112	)		(807	)		748			(34,471	)
Net equity transactions		2,115,158			(18,732,831	)		(20,418,563	)		(34,502,066	)		(1,106,839	)		(3,904,087	)		(3,288,738	)		(3,011,376	)
Net change in contract owners’ equity		7,369,883			5,329,019			(3,404,614	)		(7,015,953	)		(174,637	)		(954,759	)		1,317,102			56,121
Contract owners’ equity beginning of period		41,597,008			175,618,967			128,019,368			265,166,289			6,284,822			21,201,023			31,138,365			22,008,886
Contract owners’ equity end of period	$	48,966,891			180,947,986			124,614,754			258,150,336			6,110,185			20,246,264			32,455,467			22,065,007
CHANGES IN UNITS:
Beginning units		5,145,247			18,999,885			14,187,931			27,202,766			954,853			1,534,116			1,530,375			1,135,796
Units purchased		1,279,086			215,580			1,586,017			1,076,194			155,607			402,510			111,994			166,630
Units redeemed		(1,045,625	)		(2,042,229	)		(3,626,603	)		(4,426,889	)		(306,932	)		(663,212	)		(258,025	)		(307,281	)
Ending units		5,378,708			17,173,236			12,147,345			23,852,071			803,528			1,273,414			1,384,344			995,145

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	SCF			SCF2			MSBF			NVSTB2			NVOLG1			NVOLG2			NVTIV3			EIF2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(732,411	)		(462,142	)		(725,698	)		(839,397	)		(3,344,474	)		(2,702,635	)		(2,703,983	)		(1,522,177	)
Realized gain (loss) on investments		(2,143,734	)		(678,290	)		(599,347	)		203,617			3,665,509			2,903,643			(221,933	)		3,942,941
Change in unrealized gain (loss) on investments		11,575,862			6,082,246			14,252,727			2,083,569			56,265,428			38,266,929			19,803,412			14,634,409
Reinvested capital gains		—			—			—			—			—			—			3,970,267			—
Net increase (decrease) in contract owners’ equity resulting from operations		8,699,717			4,941,814			12,927,682			1,447,789			56,586,463			38,467,937			20,847,763			17,055,173
Equity transactions:
Purchase payments received from contract owners (note 3)		714,225			1,330,423			13,432,983			8,391,077			3,342,528			4,481,009			12,125,847			7,205,559
Transfers between funds		(1,412,639	)		(1,379,739	)		8,892,856			2,478,763			(8,732,812	)		(9,075,943	)		1,901,646			(9,215,132	)
Redemptions (note 3)		(6,832,755	)		(3,409,000	)		(8,688,535	)		(5,774,447	)		(35,756,825	)		(25,027,305	)		(17,007,588	)		(8,703,431	)
Annuity benefits		(8,364	)		(6,346	)		(815	)		(13,291	)		(71,064	)		(39,618	)		(1,544	)		(6,430	)
Contract maintenance charges (note 2)		(28,461	)		(58,340	)		(644,132	)		(244,289	)		(136,355	)		(166,987	)		(1,000,853	)		(488,088	)
Contingent deferred sales charges (note 2)		(7,158	)		(14,867	)		(79,195	)		(35,531	)		(40,446	)		(126,335	)		(127,801	)		(65,374	)
Adjustments to maintain reserves		(7,605	)		(18,381	)		(646	)		(655	)		3,045			(2,254	)		(354	)		(803	)
Net equity transactions		(7,582,757	)		(3,556,250	)		12,912,516			4,801,627			(41,391,929	)		(29,957,433	)		(4,110,647	)		(11,273,699	)
Net change in contract owners’ equity		1,116,960			1,385,564			25,840,198			6,249,416			15,194,534			8,510,504			16,737,116			5,781,474
Contract owners’ equity beginning of period		71,658,581			41,518,940			138,362,303			69,545,479			329,836,348			229,733,564			222,458,599			128,293,126
Contract owners’ equity end of period	$	72,775,541			42,904,504			164,202,501			75,794,895			345,030,882			238,244,068			239,195,715			134,074,600
CHANGES IN UNITS:
Beginning units		2,073,053			2,180,295			9,793,974			6,676,235			24,571,339			17,340,176			19,166,748			8,681,768
Units purchased		28,390			191,923			3,068,264			2,332,340			465,286			1,352,429			2,868,488			852,853
Units redeemed		(230,789	)		(364,407	)		(2,226,719	)		(1,876,728	)		(3,226,281	)		(3,389,899	)		(3,195,087	)		(1,578,248	)
Ending units		1,870,654			2,007,811			10,635,519			7,131,847			21,810,344			15,302,706			18,840,149			7,956,373

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	DGI			FCA2S			FQB			FQBS			FC2			FEIP			FVSS2			FHIP
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(11,748	)		(13,304	)		342,523			1,118,529			—			(3,332,501	)		(103,790	)		(503,759	)
Realized gain (loss) on investments		207,991			(30,606	)		68,100			177,107			560			4,912,747			(433,200	)		(809,779	)
Change in unrealized gain (loss) on investments		1,710,973			100,929			371,116			1,420,354			16			37,311,216			2,148,710			6,435,606
Reinvested capital gains		—			90,844			—			—			—			8,445,694			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		1,907,216			147,863			781,739			2,715,990			576			47,337,156			1,611,720			5,122,068
Equity transactions:
Purchase payments received from contract owners (note 3)		120,028			5,441			144,531			305,785			(53,982	)		3,176,690			98,597			(342	)
Transfers between funds		(121,340	)		(28,962	)		409,177			(89,045	)		53,119			(3,206,275	)		(128,049	)		(710,694	)
Redemptions (note 3)		(1,247,471	)		(311,926	)		(1,175,294	)		(5,500,387	)		802			(34,254,849	)		(1,627,169	)		(5,520,944	)
Annuity benefits		(823	)		—			—			—			—			(126,596	)		(1,692	)		(5,865	)
Contract maintenance charges (note 2)		(6,495	)		(204	)		(3,142	)		(9,677	)		51			(134,465	)		(1,297	)		(21,624	)
Contingent deferred sales charges (note 2)		(1,016	)		(34	)		(843	)		(12,944	)		10			(18,430	)		(3,416	)		(1,084	)
Adjustments to maintain reserves		(40	)		(60	)		(91	)		(328	)		(576	)		6,472			(1,092	)		(4,883	)
Net equity transactions		(1,257,157	)		(335,745	)		(625,662	)		(5,306,596	)		(576	)		(34,557,453	)		(1,664,118	)		(6,265,436	)
Net change in contract owners’ equity		650,059			(187,882	)		156,077			(2,590,606	)		—			12,779,703			(52,398	)		(1,143,368	)
Contract owners’ equity beginning of period		12,742,413			1,615,658			11,050,770			41,686,179			—			327,558,733			9,070,473			53,185,035
Contract owners’ equity end of period	$	13,392,472			1,427,776			11,206,847			39,095,573			—			340,338,436			9,018,075			52,041,667
CHANGES IN UNITS:
Beginning units		981,613			119,610			780,758			3,296,763			—			8,145,845			490,823			1,920,320
Units purchased		32,804			1,193			76,366			317,164			(1,894	)		139,085			61,247			(31	)
Units redeemed		(121,796	)		(24,254	)		(118,768	)		(726,073	)		1,894			(955,618	)		(144,335	)		(212,476	)
Ending units		892,621			96,549			738,356			2,887,854			—			7,329,312			407,735			1,707,813

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	FAMP			FCP			FNRS2			FEI2			FF10S			FF10S2			FF20S			FF20S2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(1,428,707	)		—			(932,867	)		(1,935,506	)		(54,011	)		(1,385,556	)		(96,913	)		(4,380,419	)
Realized gain (loss) on investments		1,517,265			50			(4,362,956	)		(3,469,783	)		123,227			(331,960	)		140,692			(262,340	)
Change in unrealized gain (loss) on investments		13,330,237			—			9,398,677			24,389,835			383,716			11,518,407			919,335			40,567,703
Reinvested capital gains		—			—			—			4,126,627			28,425			603,207			37,945			1,417,914
Net increase (decrease) in contract owners’ equity resulting from operations		13,418,795			50			4,102,854			23,111,173			481,357			10,404,098			1,001,059			37,342,858
Equity transactions:
Purchase payments received from contract owners (note 3)		1,161,961			688			5,994,742			16,467,009			41,298			18,326,802			209,323			51,956,496
Transfers between funds		(1,465,036	)		(1,305	)		(5,901,836	)		(7,826,802	)		268,778			4,257,951			271,934			3,808,825
Redemptions (note 3)		(13,980,812	)		—			(7,084,276	)		(12,889,141	)		(589,951	)		(6,996,999	)		(977,048	)		(13,140,016	)
Annuity benefits		(13,679	)		—			(4,520	)		(1,589	)		(6,845	)		—			—			—
Contract maintenance charges (note 2)		(66,441	)		618			(11,023	)		(465,877	)		(1,612	)		(617,120	)		(3,288	)		(2,395,596	)
Contingent deferred sales charges (note 2)		(4,141	)		—			(80,224	)		(85,779	)		(917	)		(81,805	)		(2,613	)		(158,344	)
Adjustments to maintain reserves		3,426			(51	)		(682	)		(6,479	)		1,307			(331	)		(64	)		(436	)
Net equity transactions		(14,364,722	)		(50	)		(7,087,819	)		(4,808,658	)		(287,942	)		14,888,498			(501,756	)		40,070,929
Net change in contract owners’ equity		(945,927	)		—			(2,984,965	)		18,302,515			193,415			25,292,596			499,303			77,413,787
Contract owners’ equity beginning of period		142,849,462			—			82,210,476			160,434,147			5,314,349			109,039,045			9,615,738			344,893,609
Contract owners’ equity end of period	$	141,903,535			—			79,225,511			178,736,662			5,507,764			134,331,641			10,115,041			422,307,396
CHANGES IN UNITS:
Beginning units		4,443,665			—			5,296,112			10,951,320			470,396			9,073,579			901,996			28,669,879
Units purchased		47,104			13			1,091,465			1,909,050			68,172			2,221,905			83,349			5,212,603
Units redeemed		(475,923	)		(13	)		(1,528,010	)		(2,218,639	)		(92,330	)		(1,063,438	)		(127,514	)		(2,079,296	)
Ending units		4,014,846			—			4,859,567			10,641,731			446,238			10,232,046			857,831			31,803,186

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	FF30S			FF30S2			FGOP			FGP			FG2			FHIPR			FIGBS			FIGBP2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(75,687	)		(333,866	)		—			(3,407,991	)		(1,153,865	)		(223,148	)		(269,780	)		(5,115,781	)
Realized gain (loss) on investments		(71,033	)		(798,513	)		—			4,076,464			(90,546	)		(33,021	)		533,608			2,249,783
Change in unrealized gain (loss) on investments		1,003,350			3,993,615			—			52,657,889			15,985,593			2,466,448			697,452			16,107,054
Reinvested capital gains		20,418			68,601			—			—			—			—			198,417			3,004,681
Net increase (decrease) in contract owners’ equity resulting from operations		877,048			2,929,837			—			53,326,362			14,741,182			2,210,279			1,159,697			16,245,737
Equity transactions:
Purchase payments received from contract owners (note 3)		434,796			2,961,303			(9	)		3,851,595			14,046,424			923,192			437,284			21,006,383
Transfers between funds		447,200			(268,466	)		(123	)		(5,519,032	)		(7,307,391	)		2,838,641			393,481			15,007,010
Redemptions (note 3)		(540,831	)		(1,398,225	)		—			(36,089,321	)		(8,044,828	)		(2,433,940	)		(2,831,940	)		(42,011,769	)
Annuity benefits		—			—			—			(56,650	)		(1,611	)		—			(3,598	)		(8,168	)
Contract maintenance charges (note 2)		(3,771	)		(4,056	)		132			(177,244	)		(285,768	)		(4,757	)		(5,700	)		(1,329,983	)
Contingent deferred sales charges (note 2)		(4,348	)		(16,565	)		—			(27,333	)		(105,821	)		(2,944	)		(2,371	)		(228,248	)
Adjustments to maintain reserves		(70	)		(295	)		—			4,072			(477	)		(93	)		(67	)		(434	)
Net equity transactions		332,976			1,273,696			—			(38,013,913	)		(1,699,472	)		1,320,099			(2,012,911	)		(7,565,209	)
Net change in contract owners’ equity		1,210,024			4,203,533			—			15,312,449			13,041,710			3,530,378			(853,214	)		8,680,528
Contract owners’ equity beginning of period		6,953,362			23,919,498			—			328,397,293			89,168,898			22,040,608			27,791,661			394,783,413
Contract owners’ equity end of period	$	8,163,386			28,123,031			—			343,709,742			102,210,608			25,570,986			26,938,447			403,463,941
CHANGES IN UNITS:
Beginning units		688,670			2,066,391			—			6,680,291			6,092,294			1,853,305			2,042,324			29,688,055
Units purchased		112,876			444,101			5			116,105			1,893,964			788,811			259,249			7,253,324
Units redeemed		(82,233	)		(343,624	)		(5	)		(823,566	)		(1,945,259	)		(690,002	)		(404,714	)		(7,873,151	)
Ending units		719,313			2,166,868			—			5,972,830			6,040,999			1,952,114			1,896,859			29,068,228

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	FMCS			FMC2			FOP			FOPR			FO2			FO2R			FVSS			FTVIS2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(243,076	)		(2,869,897	)		(506,874	)		(235,079	)		(24,892	)		(673,466	)		(61,678	)		7,405,726
Realized gain (loss) on investments		1,523,482			(516,829	)		406,041			(1,182,333	)		(37,993	)		(3,637,238	)		475,539			(2,154,652	)
Change in unrealized gain (loss) on investments		1,314,068			28,514,270			6,268,501			4,273,957			354,395			11,004,863			649,198			6,981,027
Reinvested capital gains		4,903			48,504			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		2,599,377			25,176,048			6,167,668			2,856,545			291,510			6,694,159			1,063,059			12,232,101
Equity transactions:
Purchase payments received from contract owners (note 3)		591,772			17,846,459			(27	)		947,300			—			5,084,642			100,267			12,917,294
Transfers between funds		(1,768,130	)		(10,537,981	)		(867,041	)		(554,565	)		(7,067	)		(233,840	)		108,918			4,394,307
Redemptions (note 3)		(2,826,738	)		(18,250,884	)		(4,680,405	)		(2,617,379	)		(378,186	)		(3,445,237	)		(657,098	)		(12,725,600	)
Annuity benefits		(4,015	)		(11,703	)		(4,645	)		(1,164	)		—			(479	)		—			(24,838	)
Contract maintenance charges (note 2)		(7,212	)		(683,108	)		(25,025	)		(7,064	)		(232	)		(178,515	)		(2,027	)		(11,265	)
Contingent deferred sales charges (note 2)		(4,575	)		(147,476	)		(577	)		(3,177	)		(50	)		(27,001	)		(420	)		(79,311	)
Adjustments to maintain reserves		(576	)		(10,737	)		424			55			10			(644	)		(67	)		(511	)
Net equity transactions		(4,019,474	)		(11,795,430	)		(5,577,296	)		(2,235,994	)		(385,525	)		1,198,926			(450,427	)		4,470,076
Net change in contract owners’ equity		(1,420,097	)		13,380,618			590,372			620,551			(94,015	)		7,893,085			612,632			16,702,177
Contract owners’ equity beginning of period		24,925,334			233,235,701			49,649,942			22,952,788			2,423,876			53,055,648			5,721,382			131,123,063
Contract owners’ equity end of period	$	23,505,237			246,616,319			50,240,314			23,573,339			2,329,861			60,948,733			6,334,014			147,825,240
CHANGES IN UNITS:
Beginning units		2,401,588			10,141,828			2,365,334			1,866,140			149,602			4,998,098			432,099			11,167,150
Units purchased		192,143			1,563,576			3			93,689			966			1,070,851			57,145			2,217,450
Units redeemed		(556,968	)		(2,014,948	)		(244,210	)		(260,492	)		(23,061	)		(958,166	)		(87,718	)		(1,853,996	)
Ending units		2,036,763			9,690,456			2,121,127			1,699,337			127,507			5,110,783			401,526			11,530,604

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	FTVRD2			FTVSV2			FTVDM3			TIF2			TIF3			FTVGI3			FTVFA2			AMTB
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	249,883			(617,200	)		72,656			62,313			1,254,025			5,995,459			372,232			(2,122,567	)
Realized gain (loss) on investments		1,649,986			12,774,812			(476,777	)		14,483			1,229,877			460,074			272,425			(4,879,953	)
Change in unrealized gain (loss) on investments		2,683,195			(1,261,381	)		1,935,338			203,577			3,393,416			3,456,503			1,668,150			12,148,779
Reinvested capital gains		—			—			—			—			—			182,992			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		4,583,064			10,896,231			1,531,217			280,373			5,877,318			10,095,028			2,312,807			5,146,259
Equity transactions:
Purchase payments received from contract owners (note 3)		246,043			5,817,801			181,094			15			636,764			8,376,254			3,347,776			5,671,959
Transfers between funds		(1,147,315	)		(16,529,510	)		1,393,289			(71,026	)		(171,052	)		2,062,248			683,319			4,402,366
Redemptions (note 3)		(7,939,711	)		(13,493,072	)		(2,369,250	)		(420,280	)		(5,797,415	)		(10,221,904	)		(1,016,404	)		(22,274,240	)
Annuity benefits		(9,544	)		(1,986	)		—			—			(1,032	)		(24,222	)		—			(14,943	)
Contract maintenance charges (note 2)		(5,218	)		(341,691	)		(2,994	)		(165	)		(146,369	)		(9,117	)		(1,468	)		(450,187	)
Contingent deferred sales charges (note 2)		(18,092	)		(92,628	)		(9,289	)		(155	)		(31,947	)		(54,735	)		(11,793	)		(79,601	)
Adjustments to maintain reserves		(639	)		(1,106	)		(323	)		(49	)		(627	)		(1,240	)		(226	)		(1,340	)
Net equity transactions		(8,874,476	)		(24,642,192	)		(807,473	)		(491,660	)		(5,511,678	)		127,284			3,001,204			(12,745,986	)
Net change in contract owners’ equity		(4,291,412	)		(13,745,961	)		723,744			(211,287	)		365,640			10,222,312			5,314,011			(7,599,727	)
Contract owners’ equity beginning of period		60,344,570			149,938,988			26,345,988			3,474,765			70,448,463			106,737,652			21,662,279			171,395,888
Contract owners’ equity end of period	$	56,053,158			136,193,027			27,069,732			3,263,478			70,814,103			116,959,964			26,976,290			163,796,161
CHANGES IN UNITS:
Beginning units		3,637,623			7,354,175			1,718,984			196,259			5,613,198			6,648,136			2,438,014			15,352,684
Units purchased		408,967			914,575			263,004			408			441,431			1,168,671			552,756			3,284,379
Units redeemed		(931,025	)		(2,078,114	)		(318,532	)		(26,905	)		(861,520	)		(1,153,711	)		(234,948	)		(4,493,072	)
Ending units		3,115,565			6,190,636			1,663,456			169,762			5,193,109			6,663,096			2,755,822			14,143,991

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	AMTG			AMGP			AMINS			AMTP			AMRS			AMFAS			AMSRS			OVMS
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(138	)		—			(1	)		(157	)		(1	)		(44,717	)		(294,558	)		133,274
Realized gain (loss) on investments		169			—			(352	)		455			—			34,152			(459,409	)		(1,711,759	)
Change in unrealized gain (loss) on investments		1,399			—			9			1,669			—			513,464			2,834,099			5,225,742
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		1,430			—			(344	)		1,967			(1	)		502,899			2,080,132			3,647,257
Equity transactions:
Purchase payments received from contract owners (note 3)		(94	)		—			1,331			(113	)		1			15,375			242,943			395,119
Transfers between funds		(45	)		—			3,190			(233	)		—			(549,098	)		(2,255,822	)		(765,100	)
Redemptions (note 3)		1			—			4			1			—			(424,426	)		(2,081,283	)		(5,356,617	)
Annuity benefits		(1,891	)		—			—			(1,733	)		—			—			(11,763	)		(4,452	)
Contract maintenance charges (note 2)		137			—			(63	)		234			—			(1,016	)		(7,255	)		(17,740	)
Contingent deferred sales charges (note 2)		—			—			—			—			—			(1,602	)		(11,064	)		(3,413	)
Adjustments to maintain reserves		1,100			—			4			(5,394	)		—			(97	)		(175	)		(361	)
Net equity transactions		(792	)		—			4,466			(7,238	)		1			(960,864	)		(4,124,419	)		(5,752,564	)
Net change in contract owners’ equity		638			—			4,122			(5,271	)		—			(457,965	)		(2,044,287	)		(2,105,307	)
Contract owners’ equity beginning of period		12,930			—			—			17,206			—			4,222,440			27,587,567			40,877,855
Contract owners’ equity end of period	$	13,568			—			4,122			11,935			—			3,764,475			25,543,280			38,772,548
CHANGES IN UNITS:
Beginning units		5			—			—			—			—			335,319			1,804,517			1,737,854
Units purchased		(17	)		3			(1,482	)		3			—			69,748			87,243			27,773
Units redeemed		17			(3	)		1,835			(3	)		—			(139,014	)		(345,573	)		(263,569	)
Ending units		5			—			353			—			—			266,053			1,546,187			1,502,058

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	OVCAFS			OVGR			OVB			OVGS3			OVGS4			OVGS			OVGSS			OVHI3
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	—			—			1,350,012			576,833			520,748			1,192,122			62,168			49,128
Realized gain (loss) on investments		—			—			(2,225,463	)		235,737			(1,571,698	)		5,580,498			109,424			(10,119	)
Change in unrealized gain (loss) on investments		—			—			3,567,350			4,875,745			7,614,777			4,803,118			634,745			18,246
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		—			—			2,691,899			5,688,315			6,563,827			11,575,738			806,337			57,255
Equity transactions:
Purchase payments received from contract owners (note 3)		(192	)		374			451,262			1,412,613			3,047,329			649			(9,656	)		57,076
Transfers between funds		6,695			(620	)		(385,176	)		(1,181,221	)		(2,351,059	)		(2,396,645	)		(129,581	)		138,957
Redemptions (note 3)		(6,503	)		29			(4,472,408	)		(5,834,926	)		(6,459,013	)		(9,492,156	)		(848,786	)		(117,105	)
Annuity benefits		—			—			(5,257	)		(7,151	)		(9,959	)		(13,462	)		—			—
Contract maintenance charges (note 2)		—			217			(13,201	)		(15,479	)		(5,813	)		(36,402	)		(561	)		(210	)
Contingent deferred sales charges (note 2)		—			1			(3,875	)		(14,612	)		(58,946	)		(1,650	)		(779	)		(83	)
Adjustments to maintain reserves		—			(1	)		2,547			(126	)		(787	)		3,314			(112	)		(28	)
Net equity transactions		—			—			(4,426,108	)		(5,640,902	)		(5,838,248	)		(11,936,352	)		(989,475	)		78,607
Net change in contract owners’ equity		—			—			(1,734,209	)		47,413			725,579			(360,614	)		(183,138	)		135,862
Contract owners’ equity beginning of period		—			—			36,128,352			49,952,032			60,672,239			102,385,540			7,361,088			482,217
Contract owners’ equity end of period	$	—			—			34,394,143			49,999,445			61,397,818			102,024,926			7,177,950			618,079
CHANGES IN UNITS:
Beginning units		—			—			2,055,734			2,572,768			4,665,467			2,816,110			368,092			175,763
Units purchased		1			27			77,437			129,064			587,763			21			4,511			112,074
Units redeemed		(1	)		(27	)		(318,525	)		(398,838	)		(1,022,299	)		(307,163	)		(51,199	)		(84,685	)
Ending units		—			—			1,814,646			2,302,994			4,230,931			2,508,968			321,404			203,152

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	OVHI4			OVHI			OVHIS			OVGI			OVGIS			OVSC			OVSCS			OVAG
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	481,492			1,656			206,396			(41	)		(1,338,161	)		(18,909	)		(453,557	)		(106,481	)
Realized gain (loss) on investments		6,601			(19,762	)		(1,216,696	)		193,416			(2,085,698	)		288,169			3,003,299			77,073
Change in unrealized gain (loss) on investments		175,172			20,347			1,272,144			1,605,393			35,521,507			221,878			3,442,207			1,775,823
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		663,265			2,241			261,844			1,798,768			32,097,648			491,138			5,991,949			1,746,415
Equity transactions:
Purchase payments received from contract owners (note 3)		132,804			—			2			390,339			7,509,634			103,381			4,871,531			304,993
Transfers between funds		(462,332	)		(2,632	)		(115,065	)		449,022			(16,265,043	)		156,184			(2,748,855	)		(401,031	)
Redemptions (note 3)		(931,306	)		(3,472	)		(241,889	)		(1,853,778	)		(21,235,450	)		(382,935	)		(3,168,067	)		(1,303,473	)
Annuity benefits		—			—			(96	)		(2,960	)		(1,299	)		(357	)		(5,083	)		—
Contract maintenance charges (note 2)		(460	)		(6	)		(342	)		(5,561	)		(619,627	)		(1,115	)		(121,278	)		(5,321	)
Contingent deferred sales charges (note 2)		(594	)		—			(645	)		(3,602	)		(134,332	)		(961	)		(41,096	)		(2,432	)
Adjustments to maintain reserves		(187	)		(6	)		(170	)		(622	)		(501	)		(43	)		(16,693	)		(45	)
Net equity transactions		(1,262,075	)		(6,116	)		(358,205	)		(1,027,162	)		(30,746,618	)		(125,846	)		(1,229,541	)		(1,407,309	)
Net change in contract owners’ equity		(598,810	)		(3,875	)		(96,361	)		771,606			1,351,030			365,292			4,762,408			339,106
Contract owners’ equity beginning of period		7,156,844			23,296			2,496,497			11,224,428			216,342,816			4,008,007			50,045,477			10,183,980
Contract owners’ equity end of period	$	6,558,034			19,421			2,400,136			11,996,034			217,693,846			4,373,299			54,807,885			10,523,086
CHANGES IN UNITS:
Beginning units		2,632,631			7,881			642,234			1,223,602			15,287,929			420,119			2,533,954			1,900,617
Units purchased		754,827			—			20,641			225,275			1,876,325			126,618			553,417			200,252
Units redeemed		(1,213,008	)		(1,975	)		(108,650	)		(323,501	)		(3,901,787	)		(140,277	)		(609,009	)		(434,096	)
Ending units		2,174,450			5,906			554,225			1,125,376			13,262,467			406,460			2,478,362			1,666,773

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	PMVAAD			PMVFAD			PMVLAD			PMVTRD			PVGIB			PVTIGB			PVTVB			ACEG2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	70,443			806,020			420,689			766,192			17,413			4,054			(19,855	)		(36,560	)
Realized gain (loss) on investments		158			388,797			810,228			33,571			(272,381	)		(18,934	)		76,197			(26,459	)
Change in unrealized gain (loss) on investments		184,910			223,068			10,510,740			6,953,655			586,459			59,921			257,964			(82,349	)
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		255,511			1,417,885			11,741,657			7,753,418			331,491			45,041			314,306			(145,368	)
Equity transactions:
Purchase payments received from contract owners (note 3)		3,184,280			1,950,267			41,016,625			52,493,076			8,562			—			12,137			2,730
Transfers between funds		4,390,044			(1,218,419	)		24,808,024			36,583,291			218,302			—			(311,843	)		6,054,488
Redemptions (note 3)		(51,999	)		(1,480,660	)		(21,428,611	)		(5,034,820	)		(436,863	)		(50,732	)		(723,263	)		(321,264	)
Annuity benefits		—			—			(478	)		—			—			—			—			—
Contract maintenance charges (note 2)		(18	)		(1,316	)		(1,183,695	)		(317,538	)		(419	)		(49	)		(337	)		(898	)
Contingent deferred sales charges (note 2)		—			(11,436	)		(197,642	)		(23,808	)		(427	)		—			(369	)		(1,832	)
Adjustments to maintain reserves		—			1,710			21,939			8,234			(107	)		(8	)		(64	)		4,884
Net equity transactions		7,522,307			(759,854	)		43,036,162			83,708,435			(210,952	)		(50,789	)		(1,023,739	)		5,738,108
Net change in contract owners’ equity		7,777,818			658,031			54,777,819			91,461,853			120,539			(5,748	)		(709,433	)		5,592,740
Contract owners’ equity beginning of period		—			22,970,486			260,585,570			65,327,248			2,559,811			366,694			2,914,393			—
Contract owners’ equity end of period	$	7,777,818			23,628,517			315,363,389			156,789,101			2,680,350			360,946			2,204,960			5,592,740
CHANGES IN UNITS:
Beginning units		—			1,837,753			23,171,669			6,540,321			212,998			28,337			221,728			—
Units purchased		776,828			387,420			9,413,802			9,969,476			46,386			—			38,359			632,490
Units redeemed		(28,183	)		(450,775	)		(5,646,682	)		(1,879,751	)		(63,552	)		(3,597	)		(110,704	)		(61,070	)
Ending units		748,645			1,774,398			26,938,789			14,630,046			195,832			24,740			149,383			571,420

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	AVBV2			AVCA2			AVCD2			VYDS			TRBCG2			TREI2			TRHS2			TRLT2
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(23	)		(32,047	)		(126,084	)		(1,516	)		—			—			(466,990	)		—
Realized gain (loss) on investments		652			(342,665	)		5,254,486			(696	)		(105	)		—			619,525			—
Change in unrealized gain (loss) on investments		(133	)		1,202,582			(2,195,190	)		50,371			12			—			11,131,466			—
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		496			827,870			2,933,212			48,159			(93	)		—			11,284,001			—
Equity transactions:
Purchase payments received from contract owners (note 3)		2,163			18,577			855,455			—			6,060			(9	)		4,410,457			—
Transfers between funds		(13,427	)		(6,144,354	)		(25,619,835	)		—			(4,740	)		9			17,937,671			25
Redemptions (note 3)		11,264			(408,004	)		(923,202	)		(7,553	)		153			—			(3,456,595	)		—
Annuity benefits		(4,620	)		(841	)		—			—			—			—			—			—
Contract maintenance charges (note 2)		—			(729	)		(30,995	)		(88	)		111			—			(4,425	)		(25	)
Contingent deferred sales charges (note 2)		—			(289	)		(5,566	)		(110	)		14			—			(32,447	)		—
Adjustments to maintain reserves		19			(1,718	)		(178	)		(21	)		(1,505	)		—			(373	)		—
Net equity transactions		(4,601	)		(6,537,358	)		(25,724,321	)		(7,772	)		93			—			18,854,288			—
Net change in contract owners’ equity		(4,105	)		(5,709,488	)		(22,791,109	)		40,387			—			—			30,138,289			—
Contract owners’ equity beginning of period		4,108			5,709,488			22,791,109			348,002			—			—			27,116,053			—
Contract owners’ equity end of period	$	3			—			—			388,389			—			—			57,254,342			—
CHANGES IN UNITS:
Beginning units		—			490,830			1,414,528			27,442			—			—			2,368,928			—
Units purchased		2			49,715			97,446			504			(1,673	)		—			2,629,182			(42	)
Units redeemed		(2	)		(540,545	)		(1,511,974	)		(1,083	)		1,673			—			(1,238,367	)		42
Ending units		—			—			—			26,863			—			—			3,759,743			—

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	VWHAS			VWBFR			VWBF			VWEMR			VWEM			VWHAR			VWHA			WRASP
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	36,530			100,163			112,284			(59,389	)		(225,862	)		(289,294	)		(110,281	)		(17,581	)
Realized gain (loss) on investments		(19,605	)		79,263			(110,378	)		2,130,804			(1,381,716	)		(5,416,237	)		1,977,268			714,328
Change in unrealized gain (loss) on investments		413,752			(149,144	)		295,238			90,670			3,634,684			4,221,023			(5,883,010	)		10,793,757
Reinvested capital gains		109,899			78,829			158,772			—			—			4,042,343			2,563,706			—
Net increase (decrease) in contract owners’ equity resulting from operations		540,576			109,111			455,916			2,162,085			2,027,106			2,557,835			(1,452,317	)		11,490,504
Equity transactions:
Purchase payments received from contract owners (note 3)		2,440,935			51,821			153,939			82,719			152,957			4,337,570			2,987			18,383,863
Transfers between funds		7,695,596			(5,709,517	)		5,248,210			(13,159,426	)		12,936,882			(58,664,744	)		50,739,191			(6,485,770	)
Redemptions (note 3)		(148,017	)		(268,456	)		(1,583,797	)		(445,832	)		(1,785,778	)		(2,687,857	)		(4,745,400	)		(7,607,962	)
Annuity benefits		—			—			(3,330	)		(726	)		(4,303	)		(941	)		(1,977	)		(391	)
Contract maintenance charges (note 2)		(174	)		(549	)		(4,966	)		(1,688	)		(7,608	)		(4,761	)		(12,613	)		(6,942	)
Contingent deferred sales charges (note 2)		(908	)		(225	)		(376	)		(867	)		(509	)		(15,779	)		(12,005	)		(75,411	)
Adjustments to maintain reserves		(462,375	)		(12,514	)		647			(29,523	)		20,933			(22,610	)		(9,619	)		(758	)
Net equity transactions		9,525,057			(5,939,440	)		3,810,327			(13,555,343	)		11,312,574			(57,059,122	)		45,960,564			4,206,629
Net change in contract owners’ equity		10,065,633			(5,830,329	)		4,266,243			(11,393,258	)		13,339,680			(54,501,287	)		44,508,247			15,697,133
Contract owners’ equity beginning of period		—			5,830,329			11,420,517			11,393,258			14,809,682			54,501,287			25,097,845			93,728,667
Contract owners’ equity end of period	$	10,065,633			—			15,686,760			—			28,149,362			—			69,606,092			109,425,800
CHANGES IN UNITS:
Beginning units		—			399,375			445,923			551,256			797,445			3,469,671			552,304			8,101,468
Units purchased		1,182,494			15,760			220,044			51,001			655,396			613,285			3,351,497			2,309,195
Units redeemed		(142,990	)		(415,135	)		(69,314	)		(602,257	)		(151,871	)		(4,082,956	)		(704,562	)		(1,978,156	)
Ending units		1,039,504			—			596,653			—			1,300,970			—			3,199,239			8,432,507

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	WRHIP			WRMCG			WRPCP			WRPMP			WRPMAP			WRPMCP			SVDF			SVOF
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(25,008	)		(9,408	)		7,753			46,421			83,622			14,091			(394	)		(2,331	)
Realized gain (loss) on investments		15,995			(5,959	)		(438	)		(2,940	)		(15,152	)		(4,187	)		977			3,606
Change in unrealized gain (loss) on investments		279,996			138,855			29,529			315,979			915,177			89,008			4,848			23,355
Reinvested capital gains		—			12,611			35,666			196,645			441,576			66,185			—			91
Net increase (decrease) in contract owners’ equity resulting from operations		270,983			136,099			72,510			556,105			1,425,223			165,097			5,431			24,721
Equity transactions:
Purchase payments received from contract owners (note 3)		3,677,061			1,749,229			384,664			6,431,664			6,981,302			2,404,746			(33	)		(163	)
Transfers between funds		10,537,951			1,760,202			—			238,266			(88,401	)		(25,940	)		(23	)		(232	)
Redemptions (note 3)		(246,440	)		(3,923	)		(12,193	)		(111,273	)		(196,236	)		(70,853	)		—			(25	)
Annuity benefits		—			—			—			—			—			—			(3,072	)		(8,343	)
Contract maintenance charges (note 2)		(113	)		(2,256	)		(5,273	)		(20,817	)		(86,842	)		(8,628	)		52			419
Contingent deferred sales charges (note 2)		(65	)		—			—			—			—			—			—			1
Adjustments to maintain reserves		(72	)		(75	)		(11	)		(29,724	)		(19	)		(24	)		37			(698	)
Net equity transactions		13,968,322			3,503,177			367,187			6,508,116			6,609,804			2,299,301			(3,039	)		(9,041	)
Net change in contract owners’ equity		14,239,305			3,639,276			439,697			7,064,221			8,035,027			2,464,398			2,392			15,680
Contract owners’ equity beginning of period		—			—			1,006,692			4,676,395			13,606,615			1,631,286			35,590			246,624
Contract owners’ equity end of period	$	14,239,305			3,639,276			1,446,389			11,740,616			21,641,642			4,095,684			37,982			262,304
CHANGES IN UNITS:
Beginning units		—			—			92,333			424,157			1,230,558			148,360			74			—
Units purchased		1,482,569			381,174			33,993			571,040			593,501			207,555			1			(9	)
Units redeemed		(120,548	)		(9,476	)		(1,552	)		(11,307	)		(31,469	)		(9,111	)		(1	)		9
Ending units		1,362,021			371,698			124,774			983,890			1,792,590			346,804			74			—

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	WFVSCG			WFVSMV			WFVTRB			WFVOG2			GVGU			GEF3			NVGWL6			WIEP
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	(404,075	)		3			703			(655	)		—			—			—			—
Realized gain (loss) on investments		983,488			(323	)		230			2,484			—			—			—			—
Change in unrealized gain (loss) on investments		1,300,220			1,545			7,073			4,014			—			—			—			—
Reinvested capital gains		1,636,874			—			5,572			3,480			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		3,516,507			1,225			13,578			9,323			—			—			—			—
Equity transactions:
Purchase payments received from contract owners (note 3)		4,545,279			—			—			—			—			(1	)		(1	)		2
Transfers between funds		(604,738	)		(644	)		—			—			—			3			5			(10	)
Redemptions (note 3)		(2,109,514	)		—			—			(9,121	)		—			(2	)		(3	)		(1	)
Annuity benefits		—			—			—			—			—			—			—			—
Contract maintenance charges (note 2)		(106,490	)		—			—			(4	)		—			—			—			9
Contingent deferred sales charges (note 2)		(37,571	)		—			—			—			—			—			—			—
Adjustments to maintain reserves		(391	)		7			(3	)		(5	)		—			—			(1	)		—
Net equity transactions		1,686,575			(637	)		(3	)		(9,130	)		—			—			—			—
Net change in contract owners’ equity		5,203,082			588			13,575			193			—			—			—			—
Contract owners’ equity beginning of period		30,844,147			8,299			293,570			51,038			—			—			—			—
Contract owners’ equity end of period	$	36,047,229			8,887			307,145			51,231			—			—			—			—
CHANGES IN UNITS:
Beginning units		2,029,850			951			21,348			4,361			—			—			—			—
Units purchased		868,595			57			—			323			1			—			—			—
Units redeemed		(769,731	)		(126	)		—			(1,010	)		(1	)		—			—			—
Ending units		2,128,714			882			21,348			3,674			—			—			—			—

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	BF			GVGFS			GVGHS			GVGH6			GVUSL			SGRF			SGRF2			GGTC3
	2012			2012			2012			2012			2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	—			—			—			—			—			—			—			—
Realized gain (loss) on investments		—			—			—			—			—			—			—			—
Change in unrealized gain (loss) on investments		—			—			—			—			—			—			—			—
Reinvested capital gains		—			—			—			—			—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		—			—			—			—			—			—			—			—
Equity transactions:
Purchase payments received from contract owners (note 3)		142			(4	)		13			488			—			(78	)		(21,918	)		(10	)
Transfers between funds		(161	)		(1	)		(55	)		(486	)		2			(50	)		24,505			—
Redemptions (note 3)		—			—			—			(2	)		(2	)		—			(6	)		(1	)
Annuity benefits		—			—			—			—			—			—			—			—
Contract maintenance charges (note 2)		19			5			43			—			—			128			(16	)		11
Contingent deferred sales charges (note 2)		—			—			—			—			—			—			—			—
Adjustments to maintain reserves		—			—			(1	)		—			—			—			(2,565	)		—
Net equity transactions		—			—			—			—			—			—			—			—
Net change in contract owners’ equity		—			—			—			—			—			—			—			—
Contract owners’ equity beginning of period		—			—			—			—			—			—			—			—
Contract owners’ equity end of period	$	—			—			—			—			—			—			—			—
CHANGES IN UNITS:
Beginning units		—			—			—			—			—			—			—			—
Units purchased		16			2			2			(2,508	)		—			3			(3,651	)		3
Units redeemed		(16	)		(2	)		(2	)		2,508			—			(3	)		3,651			(3	)
Ending units		—			—			—			—			—			—			—			—

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Nine Month Period Ended September 30, 2012 (Unaudited)

	GGTC6			JPMCVP			SVIF			WSCP
	2012			2012			2012			2012
Investment activity:
Net investment income (loss)	$	—			—			—			—
Realized gain (loss) on investments		—			—			—			—
Change in unrealized gain (loss) on investments		—			—			—			—
Reinvested capital gains		—			—			—			—
Net increase (decrease) in contract owners’ equity resulting from operations		—			—			—			—
Equity transactions:
Purchase payments received from contract owners (note 3)		2,263			11			1			(55	)
Transfers between funds		(2,263	)		(17	)		(4	)		1,198
Redemptions (note 3)		—			—			—			(1,193	)
Annuity benefits		—			—			—			—
Contract maintenance charges (note 2)		—			6			3			49
Contingent deferred sales charges (note 2)		—			—			—			—
Adjustments to maintain reserves		—			—			—			1
Net equity transactions		—			—			—			—
Net change in contract owners’ equity		—			—			—			—
Contract owners’ equity beginning of period		—			—			—			—
Contract owners’ equity end of period	$	—			—			—			—
CHANGES IN UNITS:
Beginning units		—			—			—			—
Units purchased		(2,250	)		5			1			18
Units redeemed		2,250			(5	)		(1	)		(18	)
Ending units		—			—			—			—

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

(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:

ALGER AMERICAN FUNDS

MidCap Growth Portfolio - Class S Shares (ALMCS)

ALLIANCE BERNSTEIN FUNDS

AllBerVPS DynmcAsstAlloc B (ALVDAB)

AMERICAN FUNDS GROUP (THE)

Growth Fund - Class 1 (AFGF)

High-Income Bond Fund - Class 1 (AFHY)

U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)

BB&T FUNDS

Sterling Capital Strategic Allocation Equity VIF (BBCMAG)*

Sterling Capital Select Equity VIF (BBGI)*

BLACKROCK FUNDS

Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)

CHARLES SCHWAB FUNDS

Money Market Portfolio(TM) (CHSMM)

DREYFUS CORPORATION FUNDS

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

Stock Index Fund, Inc. - Service Shares (DSIFS)

The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)

GOLDMAN SACHS ASSET MANAGEMENT GROUP

GdmnScsVIT GlblMkt Nav Svc (GVGMNS)

HUNTINGTON TRUST COMPANY

VA International Equity Fund (HVIE)

VA Situs Fund (HVSIT)

INVESCO AIM INVESTMENTS

Invsco VI MdCapCorEqSer II (IVMCC2)

Invsco VK VI MdCapGrSer II (IVKMG2)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)*

Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)

JPMorgan Insurance Trust Core Bond Portfolio 1 (OGBDP)*

JPMorgan Insurance Trust Equity Index Portfolio 1 (OGEI)*

JPMorgan Insurance Trust Intrepid Growth Portfolio - Class 1 (OGLG)*

JPMorgan Insurance Trust Intrepid Mid Cap Portfolio 1 (OGDMP)*

JPMorgan Insurance Trust U.S. Equity Portfolio 1 (OGDEP)*

JANUS FUNDS

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

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

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

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

MASSACHUSETTS FINANCIAL SERVICES CO.

Investors Growth Stock Series - Service Class (MIGSC)

New Discovery Series - Service Class (MNDSC)

Value Series - Service Class (MVFSC)

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

MORGAN STANLEY

Core Plus Fixed Income Portfolio - Class I (MSVFI)

Core Plus Fixed Income Portfolio - Class II (MSVF2)

Emerging Markets Debt Portfolio - Class I (MSEM)

Emerging Markets Debt Portfolio - Class II (MSEMB)

Global Real Estate Portfolio - Class II (VKVGR2)

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

U.S. Real Estate Portfolio - Class II (MSVREB)

MTB GROUP OF FUNDS

Managed Allocation Fund - Moderate Growth II (VFMG2)*

NATIONWIDE FUNDS GROUP

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

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

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

American Funds NVIT Bond Fund - Class II (GVABD2)

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

American Funds NVIT Growth Fund - Class II (GVAGR2)

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

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

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

NVIT Emerging Markets Fund - Class I (GEM)

NVIT Emerging Markets Fund - Class II (GEM2)

NVIT Emerging Markets Fund - Class III (GEM3)

NVIT Emerging Markets Fund - Class VI (GEM6)

NVIT International Equity Fund - Class I (GIG)

NVIT International Equity Fund - Class III (GIG3)

Gartmore NVIT International Equity Fund - Class VI (NVIE6)

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

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)

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

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

NVIT Core Bond Fund - Class I (NVCBD1)

NVIT Core Bond Fund - Class II (NVCBD2)

NVIT Core Plus Bond Fund - Class II (NVLCP2)

NVIT Fund - Class I (TRF)

NVIT Fund - Class II (TRF2)

NVIT Government Bond Fund - Class I (GBF)

American Century NVIT Growth Fund - Class I (CAF)

American Century NVIT Growth Fund - Class II (CAF2)

NVIT International Index Fund - Class VIII (GVIX8)

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

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

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

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

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

NVIT Mid Cap Index Fund - Class I (MCIF)

NVIT Money Market Fund - Class I (SAM)

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

NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)

NVIT Multi-Manager International Value Fund - Class II (GVDIV2)

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

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

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

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

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

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

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

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

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

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

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

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

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

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

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

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

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

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Large Cap Growth Fund - Class I (NVOLG1)

NVIT Large Cap Growth Fund - Class II (NVOLG2)

Templeton NVIT International Value Fund - Class III (NVTIV3)

Van Kampen NVIT Comstock Value Fund - Class II (EIF2)

NVIT Real Estate Fund - Class I (NVRE1)

NVIT Real Estate Fund - Class II (NVRE2)

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)

VPS Growth and Income Portfolio - Class B (ALVGIB)

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

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Balanced Fund - Class I (ACVB)

VP Capital Appreciation Fund - Class I (ACVCA)*

VP Income & Growth Fund - Class I (ACVIG)

VP Income & Growth Fund - Class II (ACVIG2)

VP Inflation Protection Fund - Class II (ACVIP2)

VP International Fund - Class I (ACVI)*

VP International Fund - Class II (ACVI2)*

VP International Fund - Class III (ACVI3)*

VP International Fund - Class IV (ACVI4)*

VP Mid Cap Value Fund - Class I (ACVMV1)

VP Mid Cap Value Fund - Class II (ACVMV2)

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

VP Ultra(R) Fund - Class II (ACVU2)*

VP Vista(SM) Fund - Class I (ACVVS1)*

VP Vista(SM) Fund - Class II (ACVVS2)*

PORTFOLIOS OF THE DREYFUS INVESTMENT PORTFOLIOS

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

PORTFOLIOS OF THE DREYFUS VARIABLE INVESTMENT FUND

Appreciation Portfolio - Initial Shares (DCAP)

Appreciation Portfolio - Service Shares (DCAPS)

Opportunistic Small Cap Portfolio: Service Shares (DVDLS)

Growth and Income Portfolio - Initial Shares (DGI)

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Capital Appreciation Fund II - Service Shares (FCA2S)

Quality Bond Fund II - Primary Shares (FQB)

Quality Bond Fund II - Service Shares (FQBS)

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

Equity-Income Portfolio - Initial Class (FEIP)

Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)

High Income Portfolio - Initial Class (FHIP)

VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)

VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)

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

VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)

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

VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)

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

VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)

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

VIP Fund - Growth Portfolio - Initial Class (FGP)

VIP Fund - Growth Portfolio - Service Class 2 (FG2)

VIP Fund - High Income Portfolio - Initial Class R (FHIPR)

VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)

VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)

VIP Fund - Mid Cap Portfolio - Service Class (FMCS)

VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)

VIP Fund - Overseas Portfolio - Initial Class (FOP)

VIP Fund - Overseas Portfolio - Initial Class R (FOPR)

VIP Fund - Overseas Portfolio - Service Class 2 (FO2)

VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)

VIP Fund - Value Strategies Portfolio - Service Class (FVSS)

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Franklin Income Securities Fund - Class 2 (FTVIS2)

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

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

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

Templeton Foreign Securities Fund - Class 2 (TIF2)

Templeton Foreign Securities Fund - Class 3 (TIF3)

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

PORTFOLIOS OF THE NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST

Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)

Growth Portfolio - I Class Shares (AMTG)

Guardian Portfolio - I Class Shares (AMGP)*

International Portfolio - S Class Shares (AMINS)

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)*

Partners Portfolio - I Class Shares (AMTP)*

Regency Portfolio - S Class Shares (AMRS)*

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

Socially Responsive Portfolio - I Class Shares (AMSRS)

PORTFOLIOS OF THE OPPENHEIMER VARIABLE ACCOUNT FUNDS

Balanced Fund/VA - Non-Service Shares (OVMS)

Core Bond Fund/VA - Non-Service Shares (OVB)

Global Securities Fund/VA - Class 3 (OVGS3)

Global Securities Fund/VA - Class 4 (OVGS4)

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

Global Securities Fund/VA - Service Class (OVGSS)

High Income Fund/VA - Class 3 (OVHI3)

High Income Fund/VA - Class 4 (OVHI4)

High Income Fund/VA - Non-Service Shares (OVHI)

High Income Fund/VA - Service Class (OVHIS)

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

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

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

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

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

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

All Asset Portfolio - Advisor Class (PMVAAD)

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

Low Duration Portfolio - Advisor Class (PMVLAD)

Total Return Portfolio - Advisor Class (PMVTRD)

PORTFOLIOS OF THE PUTNAM VARIABLE TRUST

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

Putnam VT International Equity Fund - IB Shares (PVTIGB)

Putnam VT Voyager Fund - IB Shares (PVTVB)

PORTFOLIOS OF THE VAN KAMPEN LIFE INVESTMENT TRUST

Capital Growth Portfolio - Class II (ACEG2)

V.I. Basic Value Fund - Series II (AVBV2)*

PORTFOLIOS OF THE VICTORY VARIABLE INSURANCE FUNDS

Diversified Stock Fund Class A Shares (VYDS)

T. ROWE PRICE

Health Sciences Portfolio - II (TRHS2)

Limited-Term Bond Portfolio - II (TRLT2)*

VAN ECK ASSOCIATES CORPORATION

VanEckVIPGlbHrdAsstSvc (VWHAS)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

VIP Trust - Global Bond Fund: Initial Class (VWBF)

VIP Trust - Emerging Markets Fund: Initial Class (VWEM)

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

WADDELL & REED, INC.

Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)

Ivy Fund Variable Insurance Portfolios, Inc. - High Income (WRHIP)

Ivy Fund Variable Insurance Portfolios, Inc. - Mid Cap Growth (WRMCG)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Conservative  (WRPMCP)

WELLS FARGO FUNDS

Advantage VT Index Asset Allocation Fund - Class 2 (WFVAA)*

Advantage Funds Variable Trust - VT Discovery Fund (SVDF)

Advantage VT Opportunity Fund - Class 2 (SVOF)*

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

Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)

Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)

Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)

* At September 30, 2012, contract owners were not invested in the fund.

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

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

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

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

The Company allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value, then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying registered mutual funds, only offered through insurance products, are valued at the closing net asset value per share at September 30, 2012 of such funds, as a practical expedient to estimate 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 and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company which is taxed as a life insurance company under the Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are generally the responsibility of the contract owner upon termination or withdrawal.

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

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

(f) Calculation of Annuity Reserves

At each financial reporting date, the separate account financial statement includes an aggregate amount of net assets allocated to future contract benefits for the contracts in the payout (annuitization) period. The payout (annuitization) period begins when amounts accumulated under the contract (the contract value) are applied according to payment method selected by the contract holder.

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) Recently Issued Accounting Standards

There are no recently issued accounting standards applicable to the Account.

(h) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the SEC.

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is redeemed, the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge. 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 redeemed. For America’s Vision, America’s Future II, Destination All American Gold, Destination All American Gold 2.0, Destination All American Gold NY 2.0, Future Venue, Choice Venue II, Destination B, Destination B 2.0, Destination B NY 2.0, Destination Navigator, Destination Navigator 2.0, Destination Navigator NY, Destination Navigator NY 2.0 and for BOA IV contracts issued on or after December 15, 1988, the contingent deferred sales charge will not exceed 7% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 7 years this charge is 0%. For Achiever, Destination EV, Destination EV 2.0, and Destination EV NY 2.0 contracts, this charge will not exceed 8% of purchase payments redeemed, 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, Destination L, Destination L 2.0 and Destination L NY 2.0 contracts, the contingent deferred sales charge will not exceed 7% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 4 years this charge is 0%. No contingent deferred sales charge is deducted on NEBA, Nationwide Destination C (formerly Exclusive Venue), Income Architect 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 a contract maintenance charge of up to $30, dependent upon contract type and issue date, which is satisfied by redeeming units. 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. The Company deducts a mortality and expense risk charge assessed through a reduction of the unit value. The Option tables on the following two pages illustrate the annual rate for all contract level charges by product, as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract holders. The options and related charges are described in more detail in the applicable product prospectus.

Nationwide Variable Account - II Options	BOA IV			BOA Vision			Schwab Income Choice
Variable Account Charges - Recurring		1.30	%		1.40	%		0.65	%
Death Benefit Options - Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced		—			—			0.20	%
Combination Enhanced		—			—			—
Return of Premium								0.10	%
Beneficiary Protector II Option		—			—			—
Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount.
Spousal Continuation Benefit Option		—			—			0.30	%(2)
Capital Preservation and Income Options:
Capital Preservation Plus Option		—			—			—
Lifetime Income Option
5% Lifetime Income Option (New York)		—			—			—
7% Lifetime Income Option		—			—			1.00	%(1)
Maximum Variable Account Charges*		1.30	%		1.40	%		2.15	%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

Nationwide Variable Account - II Options	BOA Future II		All American Gold		All American Gold 2.0		All American Gold NY 2.0		BOA Achiever		Income Architect
Variable Account Charges - Recurring		1.15%		1.15%		1.15%		1.15%		1.55%		0.40%
CDSC Options:
Four Year CDSC		0.30%(3)		0.50%(3)						0.20%(3)		—
No CDSC		0.35%(7)		0.55%(7)						0.25%(7)		—
Death Benefit Options - Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced II		0.20%		0.20%(8)		—		—		—		—
One-Year Enhanced		0.10%		0.10%		0.20%(47)		0.20%(47)		—		—
One-Month Enhanced		—		0.35%(9)		0.35%(9)		—		0.20%		—
Combination Enhanced II		—		—		—		—		0.45%		—
Combination Enhanced		—		0.40%(10)		0.45%(59)		—		0.30%		—
Beneficiary Protector II Option		—		0.35%(11)		0.35%(48)				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%(17)		1.00%(17)		—		—		1.00%(17)		—
Capital Preservation Plus Option		0.50%		0.50%		—		—		0.50%		—
Lifetime Income Option
5% Lifetime Income Option (New York)		1.00%(18)		1.00%(18)(19)		—		—		1.00%(18)		—
7% Lifetime Income Option (New York)		—		1.00%		—		1.50%(49)(51)(53)		—		—
7% Lifetime Income Option (Non-New York)		1.00%(1)		—		1.50%(49)(51)(53)		—		1.00%(1)		—
10% Lifetime Income Option		1.20%(20)		1.20%		—		—		1.20%(20)		—
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)		0.15%		0.15%(19)		—		—		0.15%		—
7% Spousal Continuation Benefit (New York)		—		0.30%(32)		—		0.40%(50)(51)(53)		—		—
7% Spousal Continuation Benefit (Non-New York)		0.15%		—		0.40%(50)(51)(53)		—		0.15%		—
10% Spousal Continuation Benefit (Non-New York)		0.30%(21)		0.30%(33)		—		—		0.30%(21)		—
Guaranteed Lifetime Withdrawal Fee		—		—		—		—		—		0.60%
Spousal Continuation Benefit Option		—		—		—		—		—		0.10%
Extra Value Options (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%(5)		0.45%(5)		—		—		0.10%(13)		—
4% Extra Value Credit Option		0.40%(6)		—		—		—		0.25%(14)		—
5% Extra Value Credit Option (New York)		—		0.70%(12)		—		—		0.55%(16)		—
5% Extra Value Credit Option (Non-New York)		—		—		—		—		0.45%(15)		—
Maximum Variable Account Charges*		3.55%(58)		4.60%(46)		3.85%(52)		3.25%(52)		4.50%(22)		1.10%

Nationwide Variable Account - II Options	BOA Future Venue	Destination C	Destination L	Destination L 2.0	Destination L NY 2.0	BOA Elite Venue	BOA Choice Venue II
Variable Account Charges - Recurring	1.10%	1.60%	1.75%	1.75%	1.75%	1.75%	1.50%
Death Benefit Options - Allows enhanced provisions in placeof the standard death benefit.
One-Year Enhanced II	0.15%(8)	—	—	—	—	—	-
One-Year Enhanced	0.10%	—	0.20%	0.20%	0.20%	—	-
One-Month Enhanced II	0.35%(24)	0.20%(24)	—	—	—	0.20%(24)	0.20%(24)
One-Month Enhanced	0.30%	0.20%	0.35%	0.35%	—	0.20%	0.20%
Combination Enhanced II	0.45%(25)	0.35%(25)	—	—	—	0.35%(25)	0.35%(25)
Combination Enhanced	0.40%(10)	0.30%(10)	0.45%	0.45%	—	0.30%(10)	0.30%(10)
Return of Premium
Spousal Protection Annuity Option - Allows a survivingspouse 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%	—	—	—	—	—	—
Spousal Protection Annuity Option	0.10%	0.20%(29)	—	—	—	0.20%(34)	0.20%(34)
Beneficiary Protector II Option	0.35%(11)	0.35%(11)	0.35%(31)	0.35%(31)	—	0.35%(11)	0.35%(11)
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%(17)	—	—	—	—	1.00%(17)	1.00%(17)
Capital Preservation Plus Option	0.50%	0.50%(30)	—	—	—	0.50%	0.50%(19)
Lifetime Income Option
5% Lifetime Income Option (New York)	1.00%(18)	—	1.00%(18)(42)	—	—	1.00%(18)	1.00%(18)
7% Lifetime Income Option (New York)			1.00%	—	1.50%(49)(51)(53)
7% Lifetime Income Option (Non-New York)	1.00%(1)	—	—	1.50%(49)(51)(53)	—	1.00%(1)	1.00%(1)
10% Lifetime Income Option	1.20%(20)	—	1.20%	—	—	1.20%(20)	1.20%(20)
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	0.15%	—	0.15%(42)	—	—	0.15%	0.15%
7% Spousal Continuation Benefit (New York)	—	—	0.30%(32)	—	0.40%(50)(51)(53)
7% Spousal Continuation Benefit (Non-New York)	0.15%	—	—	0.40%(50)(51)(53)	—	0.15%	0.15%
10% Spousal Continuation Benefit (Non-New York)	0.30%(21)	—	0.30%(33)	—	—	0.30%(21)	0.30%(21)
Extra Value Options (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	0.45%(26)	—	—	—	—	—	—
Maximum Variable Account Charges*	4.05%(28)	3.00%	4.05%(28)	4.45%(52)	3.85%(52)	4.15%(23)	3.90%(27)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

Nationwide Variable Account – II Options	Destination B	Destination B 2.0	Destination B NY 2.0	Destinnation EV	Destinnation EV 2.0	Destinnation EV NY 2.0
Variable Account Charges – Recurring	1.30%	1.30%	1.30%	1.85%(39)	1.85%(39)	1.85%(39)
Death Benefit Options – Allows enhanced provisions in placeof the standard death benefit.
One-Year Enhanced II	—	—	—	—	—	—
One-Year Enhanced	0.20%	0.20%	0.20%	0.20%	0.20%	0.20%
One-Month Enhanced II	—	—	—	—	—	—
One-Month Enhanced	0.35%	0.35%	—	0.35%	0.35%	—
Combination Enhanced II	—	—	—	—	—	—
Combination Enhanced	0.45%	0.45%	—	0.45%	0.45%	—
Return of Premium	—	—	—	—	—	—
Beneficiary Protector II Option	0.35%(35)	0.35%(35)	—	0.35%(35)	0.35%(35)	—
Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount.
Lifetime Income Option
5% Lifetime Income Option (New York)	—	—	—	—	—	—
5% Lifetime Income Option (Non-New York)	1.00%(18)(42)	—	—	—	—	—
7% Lifetime Income Option (New York)	—	—	1.50%(49)(51)(53)	1.00%	—	1.50%(49)(51)(53)
7% Lifetime Income Option (Non-New York)	1.00%	1.50%(49)(51)(53)	—	—	1.50%(49)(51)(53)	—
10% Lifetime Income Option (New York)	—	—	—	—	—	—
10% Lifetime Income Option (Non-New York)	1.20%	—	—	1.20%	—	—
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	0.15%(42)	—	—	—	—	—
5% Spousal Continuation Benefit (Non-New York)	—	—	—	—	—	—
7% Spousal Continuation Benefit (New York)	0.30%(36)	—	0.40%(50)(51)(53)	0.30%(36)	—	0.40%(50)(51)(53)
7% Spousal Continuation Benefit (Non-New York)	—	0.40%(50)(51)(53)	—	—	0.40%(50)(51)(53)	—
10% Spousal Continuation Benefit (New York)	—	—	—	—	—	—
10% Spousal Continuation Benefit (Non-New York)	0.30%(37)	—	—	0.30%(37)	—	—
Reduced CDSC Option (“Liquidity Option”)
Maximum Variable Account Charges*	3.60%(38)	4.00%(52)	3.40%(52)	4.15%(23)	4.55%(52)	3.95%(52)

Nationwide Variable Account – II Options	Destination Navigator	Destination Navigator 2.0	Destination Navigator-NY	Destination Navigator-NY 2.0
Variable Account Charges – Recurring	1.30%	1.30%	1.30%	1.30%
Death Benefit Options – Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced II	—	—	—	—
One-Year Enhanced	0.20%	0.20%	0.20%	0.20%
One-Month Enhanced II	—	—	—	—
One-Month Enhanced	0.35%	0.35%	—	—
Combination Enhanced II	—	—	—	—
Combination Enhanced	0.45%	0.45%	—	—
Return of Premium	—	—	—	—
Beneficiary Protector II Option	0.35%(35)	0.35%(35)	—	—
Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount.
Lifetime Income Option
5% Lifetime Income Option (New York)	—	—	1.00%(40)	1.00%(51)(53)(55)
5% Lifetime Income Option (Non-New York)	1.00%(40)	1.00%(51)(53)(55)	—	—
7% Lifetime Income Option (New York)	—	—	1.00%	1.50%(51)(53)(49)
7% Lifetime Income Option (Non-New York)	—	1.50%(49)(51)(53)	—	—
10% Lifetime Income Option (New York)	—	—	1.20%	—
10% Lifetime Income Option (Non-New York)	1.20%	—	—	—
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	—	—	0.15%(45)	0.15%(51)(53)(57)
5% Spousal Continuation Benefit (Non-New York)	0.15%(41)	0.15%(51)(53)(56)	—	—
7% Spousal Continuation Benefit (New York)	—	—	0.30%(36)	0.40%(50)(51)(53)
7% Spousal Continuation Benefit (Non-New York)	—	0.40%(50)(51)(53)	—	—
10% Spousal Continuation Benefit (New York)	—	—	—	—
10% Spousal Continuation Benefit (Non-New York)	0.30%(33)	—		—
Reduced CDSC Option (“Liquidity Option”)	0.50%(54)	0.50%(54)	0.50%(54)	0.50%(54)
Maximum Variable Account Charges*	4.10%(44)	4.00%(52)	3.30%(43)	3.40%(52)

(1) Currently, the charge associated with the 7% Lifetime Income Option is equal to 0.95% of the Current Income Benefit Base.

(2) Currently, the charge associated with the Spousal Continuation Benefit is equal to 0.15% of the Current Income Benefit Base.

(3) Range of L Schedule Option CDSC over time:

Number of Completed Years from Date of Purchase Payment	0		1		2		3		4
CDSC Percentage	7	%	6	%	5	%	4	%	0	%
The charge associated with this option will be assessed for the life of the contract

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

(6) Nationwide will discontinue deducting the charge associated with the 4% Extra Value Option 7 years from the date the contract was issued.

(7) Election of the C Schedule Option eliminates the B Schedule CDSC schedule; no CDSC will be assessed upon surrenders from the contract.

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

(9) The One-Month Enhanced Death Benefit 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 5% Extra Value Option 7 years from the date the contract was issued.

(13) Nationwide will discontinue deducting the charge associated with the 3% Extra Value Option 8 years from the date the contract was issued.

(14) Nationwide will discontinue deducting the charge associated with the 4% Extra Value Option 8 years from the date the contract was issued.

(15) Nationwide will discontinue deducting the charge associated with the 5% Extra Value Option 8 years from the date the contract was issued.

(16) Nationwide will discontinue deducting the charge associated with the 5% Extra Value Option (New York) 7 years from the date the contract was issued.

(17) For contracts issued on or after September 15, 2008 or the date of state approval (whichever is later): the current Variable Account charge associated with the Capital Preservation Plus Lifetime Income Option is equal to an annualized rate of 0.75% of the Daily Net Assets of the Variable Account, and the Guaranteed Term Option/Target Term Option charge is equal to a reduction in crediting rates of 0.75%. For contracts issued before September 15, 2008 or the date of state approval (whichever is later): the current 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. Additionally, the Guaranteed Term Option/Target Term Option charge is equal to a reduction in crediting rates of 0.60%.

(18) Currently, the charge associated with the 5% Lifetime Income Option is equal to 0.85% of the Current Income Benefit Base.

(19) No longer available for purchase.

(20) Currently, the charge associated with the 10% Lifetime Income Option is equal to 1.00% of the Current Income Benefit Base.

(21) Currently, the charge associated with the 10% Spousal Continuation Benefit is 0.20% of the Current Income Benefit Base.

(22) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 4.50% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(23) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 4.15% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

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

(25) The Combination Enhanced Death Benefit II Option is only available for contracts with Annuitants age 75 or younger at the time of application.

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

(27) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 3.90% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(28) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 4.05% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(29) For contracts that elected the Spousal Protection Annuity Option before state approval of the price increase, the charge for the option is 0.10% of the Daily Net Assets of the Variable Account for the duration of the contract.

(30) Nationwide will discontinue deducting the charges associated with the Capital Preservation Plus Option at the end of the Guaranteed Term Option/Target Term Option that corresponds to the end of the program period elected by the Contract Owner.

(31) In addition to the 0.35% charge assessed to Variable Account allocations, allocations made to the Fixed Account will be assessed a fee of 0.35% by decreasing the interest we credit to amounts allocated to the Fixed Account.

(32) The 7% Spousal Continuation Benefit is only available for election if the 7% Lifetime Income Option is elected. For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there currently is no charge associated with the 7% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge for the 7% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(33) The 10% Spousal Continuation Benefit is only available for election if the 10% Lifetime Income Option is elected. For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there currently is no charge associated with the 10% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge for the 10% Spousal Continuation Benefit is 0.20% of the Current Income Benefit Base.

(34) For contracts issued before state approval of the price increase, the charge for the Spousal Protection Annuity Option is 0.10% of the Daily Net Assets of the Variable Account.

(35) In addition to the 0.35% charge assessed to Variable Account allocations, allocations made to the Fixed Account will be assessed a fee of 0.35% by decreasing the interest credited to amounts allocated to the Fixed Account.

(36) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 7% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 7% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(37) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 10% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 10% Spousal Continuation Benefit is 0.20% of the Current Income Benefit Base.

(38) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 3.60% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(39) Beginning in the 9th Contract Year, the Mortality and Expense Charge will be equal to an annualized rate of 1.30% of the Daily Net Assets of the Variable Account.

(40) Currently, the charge associated with the 5% Lifetime Income Option is equal to 0.75% of the Current Income Benefit Base.

(41) The 5% Spousal Continuation Benefit is only available for election if the 5% Lifetime Income Option is elected. For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there currently is no charge associated with the 5% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge for the 5% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(42) No longer available.

(43) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 3.30% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(44) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 4.10% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(45) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 5% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 5% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(45) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 5% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 5% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

(46) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 4.60% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(47) The One-Year Enhanced Death Benefit Option is only available for contracts with Annuitants age 80 or younger at the time of application.

(48) The Beneficiary Protector II Option is only available for contracts with Annuitants age 75 or younger at the time of application. In addition to the 0.35% charge assessed to Variable Account allocations, allocations made to the Fixed Account will be assessed a fee of 0.35% by decreasing the interest credited to amounts allocated to the Fixed Account.

(49) Currently, the charge for the 7% Lifetime Income Option is 1.20% of the Current Income Benefit Base.

(50) The 7% Spousal Continuation Benefit may only be elected if and when the 7% Lifetime Income Option is elected. Currently, there is no charge associated with the 7% Spousal Continuation Benefit.

(51) This charge is a percentage of the Current Income Benefit Base. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(52) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.

(53) For information about how the Current Income Benefit Base is calculated, see “Determination of the Income Benefit Base Prior to the First Withdrawal.”

(54) Election of the Liquidity Option replaces the standard 7 year CDSC schedule with the following reduced CDSC schedule:

Range of Liquidity Option CDSC over time:	Number of Completed Years from Date of Contract Issuance	0		1		2		3		4
	CDSC Percentage	7	%	7	%	6	%	5	%	0	%
	Nationwide will discontinue deducting the charge associated with the Liquidity Option 4 years from the date the contract was issued.

(55) Currently, the charge for the 5% Lifetime Income Option is 0.75% of the Current Income Benefit Base.

(56) The 5% Spousal Continuation Benefit may only be elected if and when the 5% Lifetime Income Option is elected.

(57) The 5% Spousal Continuation Benefit may only be elected if and when the 5% Lifetime Income Option is elected. Currently, there is no charge associated with the 5% Spousal Continuation Benefit.

(58) The Maximum Possible Total Variable Account Charges associated with a particular contract may be higher or lower than 3.55% depending on whether the Current Income Benefit Base is higher or lower than the Daily Net Assets. For purposes of this table, Nationwide assumes the Current Income Benefit Base is equal to the Daily Net Assets.”

(59) The One-Month Enhanced Death Benefit Option and the Combination Enhanced Death Benefit Option are only available for contracts with Annuitants age 75 or younger at the time of application.

The following table provides mortality and expense risk charges by asset fee rates for the period ended September 30, 2012.

	Total		ALMCS		ALVDAB		AFGF		AFHY		AFGC		MLVGA3		CHSMM
0.4%	$	100,524	$	—	$	—	$	—	$	—	$	—	$	—	$	—
0.65%		92,100		—		—		—		—		—		53		105
0.75%		390,683		—		—		—		—		—		2,257		17,210
0.8%		138,705		—		—		—		—		—		237		—
0.85%		484,230		—		—		—		—		—		1,628		15,588
0.95%		230,304		1,024		—		—		—		—		846		30,248
1.05%		209,120		2,172		—		—		—		—		1,198		27,918
1.1%		7,682,039		—		—		—		—		—		15,777		—
1.15%		35,799,657		—		27		—		—		—		72,722		—
1.2%		252,354		—		—		—		—		—		904		—
1.25%		3,602,363		—		—		—		—		—		30,088		—
1.3%		74,789,499		—		—		102,428		15,673		11,424		177,217		—
1.35%		8,784,289		—		44		—		—		—		59,557		2,624
1.4%		12,567,712		—		—		—		—		—		50,876		—
1.45%		4,193,906		317		—		—		—		—		26,057		14
1.5%		15,198,816		—		575		—		—		—		197,080		—
1.55%		26,748,217		—		13		—		—		—		137,962		72
1.6%		2,745,359		—		37		—		—		—		95,572		—
1.65%		7,316,234		—		—		—		—		—		41,800		—
1.7%		2,446,342		—		—		—		—		—		10,932		—
1.75%		74,769,889		—		858		—		—		—		304,537		—
1.8%		6,144,140		—		1,174		—		—		—		77,050		—
1.85%		8,012,307		—		—		—		—		—		31,450		—
1.9%		2,283,095		—		—		—		—		—		9,221		—
1.95%		13,993,660		—		76		—		—		—		125,540		—
2%		9,327,153		—		91		—		—		—		44,165		—
2.05%		3,451,643		—		—		—		—		—		11,056		—
2.1%		5,091,758		—		41		—		—		—		31,233		—
2.15%		7,226,256		—		—		—		—		—		8,903		—
2.2%		5,425,705		—		115		—		—		—		31,581		—
2.25%		3,960,507		—		—		—		—		—		5,465		—
2.3%		2,998,101		—		—		—		—		—		7,919		—
2.35%		12,575,824		—		—		—		—		—		12,411		—
2.4%		2,314,105		—		—		—		—		—		579		—
2.45%		1,363,219		—		—		—		—		—		1,869		—
2.5%		6,523,827		—		—		—		—		—		680		—
2.55%		1,270,973		—		58		—		—		—		1,007		—
2.6%		572,654		—		—		—		—		—		284		—
2.65%		212,839		—		—		—		—		—		886		—
2.7%		650,250		—		—		—		—		—		—		—
2.75%		156,938		—		—		—		—		—		—		—
2.8%		201,755		—		—		—		—		—		—		—
2.85%		149,664		—		—		—		—		—		—		—
2.9%		87,247		—		—		—		—		—		—		—
2.95%		125,276		—		—		—		—		—		—		—
3%		54,289		—		—		—		—		—		—		—
3.05%		46,197		—		—		—		—		—		—		—
3.1%		2,368		—		—		—		—		—		—		—
3.15%		661		—		—		—		—		—		—		—
3.2%		637		—		—		—		—		—		—		—
3.25%		2,899		—		—		—		—		—		—		—
3.3%		3,378		—		—		—		—		—		—		—
3.4%		1,108		—		—		—		—		—		—		—
Totals	$	372,772,775	$	3,513	$	3,109	$	102,428	$	15,673	$	11,424	$	1,628,599	$	93,779
	DSIF		DSIFS		DSRG		GVGMNS		HVIE		HVSIT		IVMCC2		IVKMG1
0.4%	$	—	$	222	$	—	$	—	$	39	$	16	$	6	$	—
0.65%		—		111		—		—		17		9		11		—
0.75%		—		2,842		—		—		796		263		—		—
0.8%		6,633		—		1,640		—		—		—		—		—
0.85%		—		8,112		—		—		172		231		—		—
0.95%		—		13,897		—		—		—		—		—		—
1.05%		—		11,326		—		—		—		—		—		—
1.1%		—		23,956		—		—		19		1,647		—		—
1.15%		—		229,357		—		—		4,510		10,298		124		—
1.2%		—		5,720		—		—		—		—		—		—
1.25%		—		27,498		—		—		332		401		—		—
1.3%		1,448,259		117,981		313,498		17		29,529		52,109		574		—
1.35%		—		52,113		—		—		1,382		3,011		212		—
1.4%		718,440		12,971		88,980		—		6		6		20		—
1.45%		—		46,534		—		—		133		512		—		—
1.5%		—		91,960		—		73		7,786		17,401		59		—
1.55%		—		144,795		—		43		9,369		10,650		12		—
1.6%		—		33,884		—		12		1,380		3,073		8		—
1.65%		—		39,294		—		—		1,572		5,907		208		—
1.7%		—		11,787		—		—		120		131		—		—
1.75%		—		169,818		—		58		10,061		26,912		431		—
1.8%		—		47,518		—		—		5,761		2,223		251		—
1.85%		—		52,126		—		—		3,437		15,150		79		—
1.9%		—		9,436		—		—		12		12,818		—		—
1.95%		—		38,339		—		—		2,668		4,880		106		—
2%		—		44,022		—		—		370		12,372		—		—
2.05%		—		17,584		—		—		1,091		3,667		—		—
2.1%		—		23,469		—		—		691		3,041		242		—
2.15%		—		12,778		—		—		188		168		113		—
2.2%		—		22,310		—		—		3,850		2,093		92		—
2.25%		—		6,157		—		—		82		28		—		—
2.3%		—		14,090		—		—		410		1,476		98		—
2.35%		—		12,430		—		—		401		2,640		—		—
2.4%		—		4,108		—		—		—		199		—		—
2.45%		—		2,738		—		—		—		—		—		—
2.5%		—		4,547		—		—		39		434		100		—
2.55%		—		545		—		—		—		4,458		—		—
2.6%		—		750		—		—		—		200		—		—
2.65%		—		522		—		—		—		—		14		—
2.7%		—		730		—		—		—		123		—		—
2.75%		—		303		—		—		—		—		—		—
2.8%		—		—		—		—		—		—		—		—
2.85%		—		504		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		—		—		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	2,173,332	$	1,359,184	$	404,118	$	203	$	86,223	$	198,547	$	2,760	$	—

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	IVKMG2		JPMMV1		JABS		JACAS		JAGTS2		JAGTS		JAIGS2		JAIGS
0.4%	$	—	$	—	$	—	$	245	$	—	$	—	$	—	$	—
0.65%		—		—		—		195		—		—		141		—
0.75%		221		—		—		877		45		53		822		638
0.8%		41		189		—		2,322		80		173		1,533		1,414
0.85%		205		—		—		2,982		70		202		1,380		1,411
0.95%		279		—		10,195		6,911		—		7		6,260		5,639
1.05%		—		—		15,242		6,727		50		51		5,128		4,744
1.1%		1,440		—		98		15,598		239		339		3,286		3,330
1.15%		13,960		—		12,559		159,376		3,337		4,110		54,599		59,004
1.2%		167		—		69		146		—		—		10		10
1.25%		3,319		—		9,123		14,157		404		531		7,787		9,719
1.3%		16,792		65,951		56		287,214		23,244		42,166		129,809		157,742
1.35%		5,385		—		94		53,684		1,704		3,834		18,193		18,267
1.4%		1,645		16,259		763		46,676		4,957		11,404		27,243		38,953
1.45%		2,667		—		4,382		22,016		1,375		1,239		7,412		8,032
1.5%		6,286		—		6,748		52,870		4,948		6,972		10,594		12,096
1.55%		13,253		—		24,981		124,327		2,694		4,814		50,830		54,465
1.6%		2,230		—		1,381		21,940		1,494		2,258		8,985		10,161
1.65%		2,981		—		322		29,999		6,525		15,635		13,300		11,525
1.7%		1,226		—		4,870		12,855		516		405		2,938		5,137
1.75%		24,609		—		10,467		258,520		3,308		5,060		37,881		42,210
1.8%		3,376		—		4,829		23,015		915		974		12,174		12,488
1.85%		2,892		—		1,633		36,197		818		1,181		4,713		5,327
1.9%		816		—		101		6,932		190		98		3,193		2,871
1.95%		8,033		—		2,640		48,953		1,285		2,118		8,058		9,318
2%		3,571		—		150		49,092		861		1,073		10,199		9,996
2.05%		1,335		—		5,960		11,430		488		1,002		1,911		2,843
2.1%		9,394		—		629		22,981		1,392		2,503		5,566		5,376
2.15%		4,486		—		935		21,040		717		1,088		2,621		3,106
2.2%		2,360		—		3,247		28,926		2,680		3,910		2,880		2,814
2.25%		769		—		401		6,093		—		—		158		171
2.3%		4,177		—		24		20,995		70		69		629		1,189
2.35%		3,917		—		—		33,826		—		—		520		603
2.4%		815		—		—		9,447		—		—		101		115
2.45%		941		—		—		9,193		201		337		589		607
2.5%		2,568		—		—		20,147		—		—		46		39
2.55%		513		—		—		2,296		284		363		320		304
2.6%		83		—		—		3,719		—		—		—		—
2.65%		—		—		—		2,417		—		—		253		275
2.7%		18		—		—		891		—		—		—		—
2.75%		238		—		—		313		—		—		—		—
2.8%		—		—		—		77		—		—		198		158
2.85%		235		—		—		67		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		57		—		—		55		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	147,300	$	82,399	$	121,899	$	1,477,739	$	64,891	$	113,969	$	442,260	$	502,097
	MIGSC		MNDSC		MVFSC		MVIVSC		MSVFI		MSVF2		MSEM		MSEMB
0.4%	$	—	$	—	$	607	$	361	$	—	$	—	$	—	$	—
0.65%		—		—		1,330		84		—		—		—		—
0.75%		—		—		5,673		3,178		—		—		—		—
0.8%		—		—		256		—		—		—		17		—
0.85%		—		—		9,046		1,208		—		—		—		—
0.95%		278		—		1,195		302		—		3,346		—		—
1.05%		—		—		456		589		—		1,022		—		—
1.1%		592		24		51,274		2,255		—		2,613		—		196
1.15%		14,168		178		388,991		55,183		—		25,319		—		1,793
1.2%		868		—		3,848		—		—		46		—		—
1.25%		9,033		29		33,700		3,206		—		6,080		—		1,137
1.3%		254		652		288,781		180,953		10,254		—		24,582		—
1.35%		2,521		81		95,122		15,917		—		7,776		—		—
1.4%		1,434		177		68,413		12,709		4,249		2,445		10,753		480
1.45%		2,511		143		54,449		5,267		—		8,585		—		540
1.5%		10,508		118		107,413		42,829		—		16,698		—		3,632
1.55%		14,753		27		346,171		31,329		—		39,276		—		1,291
1.6%		3,337		66		33,111		12,747		—		3,212		—		—
1.65%		3,708		183		95,527		11,845		—		5,916		—		42
1.7%		3,958		20		51,961		1,471		—		10,324		—		325
1.75%		11,493		491		976,541		162,438		—		41,727		—		455
1.8%		4,283		—		92,840		7,836		—		7,022		—		248
1.85%		5,937		58		62,346		38,936		—		4,601		—		139
1.9%		2,090		4		22,754		5,094		—		1,467		—		—
1.95%		1,396		218		135,604		34,614		—		8,895		—		131
2%		992		4		159,110		21,542		—		7,841		—		—
2.05%		3,404		160		34,321		12,646		—		2,231		—		462
2.1%		2,243		579		66,526		9,927		—		3,291		—		—
2.15%		1,577		26		153,318		3,913		—		2,993		—		—
2.2%		1,921		9		44,805		17,985		—		2,109		—		—
2.25%		723		—		74,294		1,095		—		1,769		—		—
2.3%		2,402		—		25,867		11,852		—		1,354		—		—
2.35%		563		1		303,808		6,240		—		10,766		—		—
2.4%		—		—		48,217		1,870		—		1,306		—		—
2.45%		194		89		23,660		5,361		—		103		—		—
2.5%		190		—		27,501		2,067		—		8,040		—		—
2.55%		—		40		24,348		2,739		—		493		—		—
2.6%		—		—		11,489		508		—		721		—		—
2.65%		—		—		871		1,415		—		64		—		—
2.7%		—		—		6,135		72		—		104		—		—
2.75%		—		—		1,550		—		—		—		—		—
2.8%		23		—		1,159		406		—		—		—		—
2.85%		—		—		368		—		—		—		—		—
2.9%		—		—		1,673		—		—		—		—		—
2.95%		—		—		470		—		—		33		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		602		—		—		483		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		32		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	107,354	$	3,377	$	3,937,533	$	729,989	$	14,503	$	240,071	$	35,352	$	10,871

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	VKVGR2		MSVRE		MSVREB		VFMG2		NVAMV1		NVAMV2		GVAAA2		GVABD2
0.4%	$	—	$	—	$	—	$	—	$	—	$	80	$	605	$	22
0.65%		—		—		—		—		—		417		5,988		1,459
0.75%		—		—		—		—		—		1,607		10,295		3,695
0.8%		—		—		—		—		1,080		—		459		328
0.85%		—		—		—		—		—		1,574		10,106		2,520
0.95%		—		—		—		—		—		4,860		317		3,594
1.05%		—		—		—		—		—		4,824		1,610		2,012
1.1%		—		—		—		—		—		28,714		1,210,022		283,967
1.15%		—		—		24		11,497		—		246,539		4,235,902		1,352,942
1.2%		—		—		—		—		—		1,675		7,153		4,515
1.25%		—		—		—		10,919		—		38,655		347,922		79,007
1.3%		—		147		—		—		376,263		83,071		7,870,999		2,278,588
1.35%		—		—		6		1,862		—		92,516		975,723		304,083
1.4%		—		239		—		213		136,001		18,249		202,475		55,998
1.45%		—		—		—		95		—		50,809		342,392		124,274
1.5%		—		—		22		—		—		57,723		2,057,165		592,188
1.55%		—		—		—		29		—		224,933		2,879,490		1,026,222
1.6%		—		—		—		263		—		11,386		124,598		31,849
1.65%		—		—		—		351		—		53,761		667,919		167,097
1.7%		—		—		—		—		—		28,434		212,775		99,742
1.75%		126		—		—		2,968		—		321,937		9,230,689		2,416,897
1.8%		—		—		—		—		—		49,902		438,885		148,281
1.85%		—		—		—		436		—		41,998		1,063,662		343,657
1.9%		—		—		—		223		—		18,156		157,042		125,405
1.95%		68		—		—		336		—		44,953		1,733,288		489,204
2%		—		—		—		—		—		35,913		858,067		268,781
2.05%		—		—		—		—		—		17,980		319,995		199,225
2.1%		—		—		—		—		—		29,444		514,802		146,513
2.15%		—		—		—		—		—		36,404		267,127		188,266
2.2%		—		—		—		245		—		24,748		614,052		202,615
2.25%		—		—		—		—		—		17,545		436,318		388,568
2.3%		—		—		—		—		—		19,974		252,198		150,158
2.35%		—		—		—		—		—		43,421		981,397		928,011
2.4%		—		—		—		—		—		10,127		213,653		190,295
2.45%		—		—		—		—		—		6,522		126,027		78,129
2.5%		—		—		—		—		—		24,993		897,853		891,083
2.55%		—		—		—		—		—		2,215		117,260		89,046
2.6%		—		—		—		—		—		3,593		32,883		36,194
2.65%		—		—		—		—		—		512		25,494		21,494
2.7%		—		—		—		—		—		1,560		70,626		65,761
2.75%		—		—		—		—		—		41		13,764		12,837
2.8%		—		—		—		—		—		1,324		29,798		13,285
2.85%		—		—		—		—		—		1,060		19,379		19,974
2.9%		—		—		—		—		—		862		6,130		5,372
2.95%		—		—		—		—		—		352		20,657		20,407
3%		—		—		—		—		—		—		1,565		1,543
3.05%		—		—		—		—		—		—		3,731		3,678
3.1%		—		—		—		—		—		—		537		529
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		911		898
3.3%		—		—		—		—		—		89		—		64
3.4%		—		—		—		—		—		—		—		—
	$	194	$	386	$	52	$	29,437	$	513,344	$	1,705,452	$	39,611,705	$	13,860,272
	GVAGG2		GVAGR2		GVAGI2		HIBF		HIBF3		GEM		GEM2		GEM3
0.4%	$	166	$	98	$	120	$	—	$	—	$	—	$	—	$	—
0.65%		153		102		1,526		—		—		—		—		—
0.75%		1,267		1,186		5,595		—		151		—		—		—
0.8%		507		1,127		205		—		84		38		—		830
0.85%		983		2,725		3,371		—		668		—		—		—
0.95%		1,090		1,691		1,348		529		5,254		—		—		—
1.05%		1,164		1,843		431		75		1,977		—		—		—
1.1%		20,348		42,923		272,489		317		3,920		—		75		—
1.15%		158,392		277,687		1,333,467		13,700		156,632		—		2,957		—
1.2%		921		1,352		3,342		711		105		—		324		—
1.25%		19,881		25,155		69,252		7,009		15,138		—		1,474		—
1.3%		228,369		355,291		2,329,659		28		131,781		917		—		197,919
1.35%		65,806		96,284		317,411		3,271		35,036		—		—		—
1.4%		25,450		45,364		21,417		928		42,472		1,304		866		40,002
1.45%		23,960		42,572		110,411		3,341		40,560		—		259		—
1.5%		84,222		138,868		622,587		2,313		69,717		—		408		—
1.55%		142,486		268,127		1,013,287		20,705		146,465		—		2,945		—
1.6%		23,213		54,930		43,425		1,638		49,940		—		—		—
1.65%		36,307		62,387		149,754		698		38,873		—		—		—
1.7%		18,446		25,480		88,017		3,476		8,558		—		520		—
1.75%		303,029		512,020		2,410,832		4,150		109,083		—		231		—
1.8%		29,561		63,045		127,438		2,516		59,665		—		421		—
1.85%		29,887		52,677		352,610		2,866		30,689		—		1,088		—
1.9%		7,444		14,285		128,224		464		13,422		—		595		—
1.95%		60,477		95,440		503,072		147		11,907		—		411		—
2%		33,976		66,968		282,719		715		36,861		—		—		—
2.05%		13,830		21,513		200,875		215		4,419		—		59		—
2.1%		34,286		38,795		136,692		339		8,077		—		26		—
2.15%		10,434		23,698		195,223		456		5,054		—		185		—
2.2%		19,359		36,726		213,771		—		20,859		—		304		—
2.25%		5,516		14,946		400,599		—		4,066		—		13		—
2.3%		13,071		16,015		164,772		—		5,631		—		—		—
2.35%		18,724		43,312		953,741		—		4,596		—		—		—
2.4%		4,114		3,665		193,850		—		206		—		—		—
2.45%		4,690		6,298		77,755		—		2,492		—		—		—
2.5%		16,398		24,822		917,315		—		13		—		—		—
2.55%		1,106		2,580		90,888		—		9,939		—		—		—
2.6%		2,659		2,358		34,303		—		—		—		—		—
2.65%		1,758		4,165		23,366		—		54		—		—		—
2.7%		539		2,252		67,108		—		—		—		—		—
2.75%		117		194		12,138		—		83		—		—		—
2.8%		237		368		14,335		—		1,873		—		—		—
2.85%		—		526		20,100		—		—		—		—		—
2.9%		255		602		5,576		—		—		—		—		—
2.95%		153		98		21,421		—		—		—		—		—
3%		—		—		1,624		—		—		—		—		—
3.05%		96		265		3,870		—		—		—		—		—
3.1%		—		—		556		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		945		—		—		—		—		—
3.3%		44		44		45		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	1,464,891	$	2,492,869	$	13,942,877	$	70,607	$	1,076,320	$	2,259	$	13,161	$	238,751

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	GEM6		GIG		GIG3		NVIE6		NVNMO1		NVNMO2		NVNSR1		NVNSR2
0.4%	$	—	$	—	$	—	$	66	$	—	$	109	$	—	$	38
0.65%		—		—		—		15		—		128		—		901
0.75%		519		—		—		94		—		548		—		3,190
0.8%		—		31		809		—		1,744		—		58		—
0.85%		1,057		—		—		450		—		80		—		6,707
0.95%		620		—		—		147		—		98		—		155
1.05%		1,438		—		—		334		—		22		—		229
1.1%		3,954		—		—		5,764		—		5,453		—		23,470
1.15%		97,052		—		—		31,712		—		20,660		—		192,276
1.2%		170		—		—		—		—		89		—		2,642
1.25%		9,486		—		—		3,031		—		5,650		—		13,504
1.3%		24,478		76		157,861		22,750		457,002		42,532		18,096		44,208
1.35%		28,537		—		—		9,417		—		7,444		—		39,822
1.4%		3,038		248		93,682		1,232		260,506		2,204		2,790		24,738
1.45%		21,185		—		—		13,816		—		854		—		22,450
1.5%		34,786		—		—		17,931		—		13,127		—		39,513
1.55%		76,755		—		—		29,503		—		22,430		—		191,195
1.6%		25,436		—		—		7,417		—		2,076		—		11,346
1.65%		34,036		—		—		7,687		—		10,662		—		55,145
1.7%		4,317		—		—		2,194		—		244		—		30,462
1.75%		68,757		—		—		59,386		—		55,688		—		559,964
1.8%		16,015		—		—		5,387		—		4,249		—		49,252
1.85%		13,466		—		—		7,558		—		4,727		—		30,292
1.9%		2,875		—		—		6,568		—		953		—		11,327
1.95%		29,165		—		—		8,955		—		20,998		—		72,412
2%		18,396		—		—		14,497		—		8,059		—		112,132
2.05%		4,939		—		—		2,803		—		3,447		—		21,276
2.1%		27,337		—		—		6,658		—		5,097		—		40,594
2.15%		5,451		—		—		1,432		—		2,680		—		120,344
2.2%		16,624		—		—		3,555		—		9,396		—		24,723
2.25%		2,156		—		—		1,328		—		331		—		53,214
2.3%		4,486		—		—		6,017		—		5,522		—		10,950
2.35%		3,404		—		—		7,589		—		2,795		—		224,025
2.4%		290		—		—		1,140		—		1,934		—		36,326
2.45%		3,929		—		—		73		—		1,429		—		15,498
2.5%		347		—		—		1,951		—		986		—		4,175
2.55%		2,377		—		—		3,348		—		1,588		—		21,266
2.6%		—		—		—		327		—		—		—		6,539
2.65%		312		—		—		70		—		1,126		—		428
2.7%		—		—		—		—		—		—		—		5,109
2.75%		—		—		—		328		—		22		—		1,283
2.8%		780		—		—		—		—		435		—		1,019
2.85%		—		—		—		—		—		—		—		258
2.9%		—		—		—		—		—		—		—		1,494
2.95%		—		—		—		—		—		—		—		449
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		184
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		32
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	587,970	$	355	$	252,352	$	292,530	$	719,252	$	265,872	$	20,944	$	2,126,556
	NVCRA2		NVCRB2		NVCCA2		NVCCN2		NVCMD2		NVCMA2		NVCMC2		NVCBD1
0.4%	$	—	$	67	$	968	$	—	$	1,927	$	—	$	205	$	—
0.65%		—		4,112		9,901		2,355		5,124		—		2,254		—
0.75%		419		12,583		17,182		10,585		38,409		11,027		9,156		—
0.8%		80		27		80		—		7		83		—		76
0.85%		574		28,515		53,200		7,212		29,485		1,841		20,087		—
0.95%		—		—		—		—		—		—		—		—
1.05%		—		—		—		—		—		—		—		—
1.1%		1,308		726,221		715,251		284,994		988,650		79,667		315,156		—
1.15%		47,851		1,222,518		2,569,040		617,834		2,457,772		595,672		742,285		—
1.2%		—		14,899		7,327		10,760		18,052		—		1,958		—
1.25%		4,831		157,398		203,640		83,218		199,802		27,750		72,031		—
1.3%		21,343		3,518,234		5,081,461		1,319,141		4,841,899		80,193		1,405,962		19,378
1.35%		8,055		226,977		667,262		118,899		641,458		145,098		169,992		—
1.4%		1,767		37,467		11,055		46,857		77,973		22,378		28,395		10,313
1.45%		2,763		113,628		159,706		106,418		197,539		60,318		78,335		—
1.5%		13,122		898,236		1,441,059		336,168		1,313,489		92,171		359,943		—
1.55%		24,811		789,238		1,345,746		610,507		1,456,276		515,400		603,446		—
1.6%		10,516		70,354		30,871		37,429		68,975		23,870		37,809		—
1.65%		7,582		206,321		314,179		171,604		411,830		148,714		139,970		—
1.7%		2,075		46,884		117,372		8,683		83,985		27,828		27,786		—
1.75%		34,595		2,836,512		7,498,428		1,771,887		6,170,298		1,146,804		1,508,079		—
1.8%		8,792		130,743		201,428		186,368		292,736		104,006		192,890		—
1.85%		711		414,058		699,549		239,585		571,548		57,863		250,922		—
1.9%		53		129,293		263,108		24,387		117,640		27,984		60,650		—
1.95%		16,629		603,608		1,642,996		305,160		1,087,952		182,789		266,495		—
2%		13,142		321,054		411,903		320,632		568,251		239,595		186,617		—
2.05%		961		113,878		234,818		39,333		155,047		77,464		35,002		—
2.1%		28,259		139,661		410,258		215,372		305,324		71,254		91,065		—
2.15%		519		200,596		315,411		47,757		198,747		244,308		61,911		—
2.2%		10,091		295,910		439,552		143,422		464,390		66,084		119,876		—
2.25%		48		276,561		43,450		19,913		38,566		30,884		45,325		—
2.3%		392		148,932		268,692		77,721		205,783		77,587		89,344		—
2.35%		1,416		1,101,671		353,815		69,927		126,488		176,805		54,847		—
2.4%		—		119,934		85,654		14,030		42,231		39,436		25,094		—
2.45%		149		135,277		102,773		23,961		41,994		14,321		24,190		—
2.5%		—		1,578,522		170,890		52,390		96,643		27,413		110,291		—
2.55%		2,313		70,443		114,505		13,304		40,317		1,579		3,630		—
2.6%		35,600		70,589		542		8,949		8,503		4,562		17,931		—
2.65%		141		2,671		8,550		3,386		9,677		6,030		8,949		—
2.7%		—		148,039		10,823		3,876		22,553		3,213		29,547		—
2.75%		—		10,129		—		7,415		14,761		—		4,721		—
2.8%		—		—		173		5,287		—		1,331		791		—
2.85%		—		24,145		7,200		3,779		9,491		—		7,335		—
2.9%		—		—		—		—		—		2,058		3,534		—
2.95%		—		3,600		2,933		—		4,010		—		18,905		—
3%		—		422		934		—		—		—		—		—
3.05%		—		6,495		—		2,422		3,512		2,357		—		—
3.1%		—		746		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		77		—		—		—		68		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		1,108		—		—		—
	$	300,908	$	16,957,245	$	26,033,685	$	7,372,927	$	23,430,222	$	4,437,805	$	7,232,711	$	29,767

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	NVCBD2		NVLCP2		TRF		TRF2		GBF		CAF		CAF2		GVIX8
0.4%	$	88	$	17	$	—	$	—	$	99	$	—	$	32	$	—
0.65%		1,099		—		—		865		1,625		—		270		21
0.75%		3,793		632		—		1,614		6,723		—		428		205
0.8%		—		620		17,570		—		2,681		3,813		—		147
0.85%		6,405		355		—		5,372		9,312		—		30		1,338
0.95%		1,273		186		—		1,486		10,160		—		—		392
1.05%		1,963		309		—		2,313		9,102		—		—		909
1.1%		27,270		8,558		—		22,276		38,747		—		622		20,024
1.15%		138,731		38,712		—		200,125		474,616		—		12,438		28,687
1.2%		2,221		—		—		2,723		3,980		—		18		77
1.25%		16,010		7,023		—		14,180		47,751		—		781		1,273
1.3%		32,741		93,149		898,120		13,592		803,654		248,721		43,847		29,807
1.35%		26,234		10,914		—		44,973		119,173		—		2,279		4,977
1.4%		21,957		13,696		317,891		24,771		364,934		82,912		6,482		4,310
1.45%		24,525		12,652		—		21,303		73,548		—		1,287		5,410
1.5%		31,395		34,327		—		28,983		81,386		—		9,617		7,140
1.55%		132,685		50,376		—		214,553		400,794		—		10,293		19,030
1.6%		16,640		9,948		—		5,572		48,624		—		2,130		1,391
1.65%		41,014		19,653		—		55,902		106,022		—		2,677		6,097
1.7%		28,423		2,835		—		33,466		50,994		—		721		994
1.75%		402,794		115,470		—		559,667		808,058		—		56,135		27,796
1.8%		44,756		11,721		—		50,204		100,380		—		874		4,309
1.85%		20,908		22,675		—		19,690		49,487		—		10,867		4,821
1.9%		2,765		1,623		—		5,969		13,550		—		1,067		728
1.95%		48,819		26,101		—		62,238		129,161		—		8,500		6,408
2%		86,431		9,535		—		100,134		163,420		—		3,326		9,211
2.05%		17,290		3,828		—		19,710		28,388		—		2,014		1,807
2.1%		25,410		5,190		—		32,721		44,499		—		3,142		1,275
2.15%		78,191		4,185		—		123,536		142,283		—		1,805		694
2.2%		16,400		11,147		—		20,858		52,425		—		1,760		3,637
2.25%		67,634		1,461		—		50,382		81,009		—		961		975
2.3%		4,331		8,534		—		6,674		18,725		—		3,897		1,470
2.35%		240,579		5,972		—		218,491		335,135		—		2,848		5,268
2.4%		23,797		358		—		37,382		46,444		—		—		66
2.45%		17,650		167		—		14,722		21,194		—		12		953
2.5%		3,920		2,415		—		3,631		18,158		—		203		751
2.55%		14,679		74		—		15,323		22,075		—		3,807		54
2.6%		6,645		398		—		7,423		11,608		—		—		68
2.65%		301		142		—		432		4,334		—		8		—
2.7%		4,256		1,360		—		6,100		7,680		—		—		—
2.75%		1,526		—		—		1,578		5,134		—		—		109
2.8%		1,120		—		—		1,014		1,503		—		290		—
2.85%		210		—		—		284		304		—		—		—
2.9%		1,180		—		—		1,476		1,746		—		—		—
2.95%		272		—		—		456		579		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		213		—		—		180		237		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		32		32		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	1,686,544	$	536,318	$	1,233,581	$	2,054,376	$	4,761,473	$	335,446	$	195,468	$	202,629
	GVIDA		NVDBL2		NVDCA2		GVIDC		GVIDM		GVDMA		GVDMC		MCIF
0.4%	$	—	$	702	$	451	$	—	$	1,713	$	—	$	2,055	$	175
0.65%		—		2,024		10,960		2,874		13,778		1,946		6,512		73
0.75%		877		8,041		26,256		15,405		30,420		5,203		7,309		1,091
0.8%		3,357		54		106		186		3,716		6,880		1,897		1,672
0.85%		1,131		21,172		37,450		8,901		26,931		4,235		15,166		2,794
0.95%		694		—		—		620		5,331		5,530		2,928		1,023
1.05%		1,367		570		—		1,257		4,898		8,241		648		1,557
1.1%		7,945		182,272		227,564		152,948		633,975		148,423		170,327		4,611
1.15%		192,575		495,413		1,101,133		683,395		3,510,017		1,942,025		1,013,305		113,264
1.2%		6,450		254		1,179		7,961		18,275		33,870		3,615		1,138
1.25%		34,957		51,434		41,639		51,768		304,694		164,368		106,749		17,383
1.3%		81,352		2,174,314		3,325,335		1,300,717		3,402,789		233,068		1,174,207		310,326
1.35%		55,432		94,422		228,701		119,344		696,990		411,959		225,765		34,174
1.4%		59,345		14,578		5,929		113,842		636,320		258,861		150,194		83,545
1.45%		28,324		12,477		100,814		86,428		282,368		182,686		145,639		35,174
1.5%		112,148		492,414		711,443		340,060		955,004		244,073		289,432		30,563
1.55%		155,065		226,428		512,194		505,499		2,250,911		1,591,161		647,136		93,536
1.6%		37,930		22,078		16,246		54,546		232,599		79,209		73,809		20,217
1.65%		168,089		74,871		184,988		135,785		746,541		571,662		225,811		19,024
1.7%		44,941		7,887		22,856		16,951		215,758		169,329		50,267		9,864
1.75%		693,985		1,112,308		3,401,789		1,452,975		6,935,976		4,266,228		1,722,336		135,555
1.8%		52,342		51,346		67,350		213,151		508,706		283,623		178,989		25,860
1.85%		59,851		122,235		386,188		205,584		491,649		199,724		151,551		23,442
1.9%		46,857		57,667		8,323		34,377		261,717		206,929		113,744		4,406
1.95%		195,261		236,238		726,896		152,026		1,032,014		737,734		250,450		32,790
2%		134,610		104,610		128,410		309,338		843,720		496,491		330,226		18,832
2.05%		144,044		57,072		54,417		34,916		337,019		287,818		76,450		11,902
2.1%		127,259		56,675		167,277		78,933		386,675		307,481		88,514		18,742
2.15%		297,228		90,784		80,033		68,457		1,083,578		1,125,346		236,931		9,821
2.2%		29,285		133,321		180,197		166,601		271,017		139,012		129,882		19,391
2.25%		136,684		62,634		9,701		18,578		426,502		149,720		358,120		6,373
2.3%		85,353		60,381		59,870		64,630		210,892		182,020		72,377		6,953
2.35%		269,266		239,653		48,358		63,528		1,416,108		683,751		949,854		12,872
2.4%		41,443		9,453		8,945		14,148		248,345		173,767		160,551		3,634
2.45%		23,251		11,526		19,724		10,785		82,133		47,640		46,565		2,587
2.5%		36,266		132,634		15,840		41,851		516,422		102,133		334,132		5,040
2.55%		54,818		9,211		18,096		21,304		100,316		71,939		63,380		3,737
2.6%		11,521		22,370		—		11,932		42,153		28,259		12,516		82
2.65%		4,672		4,909		285		6,436		7,925		10,222		3,118		644
2.7%		7,270		15,737		—		2,298		48,169		27,182		23,738		41
2.75%		460		1,804		—		7,764		10,808		5,525		2,959		281
2.8%		12,947		1,873		—		6,328		4,905		7,795		3,345		1,244
2.85%		2,221		3,999		—		—		9,680		5,490		4,782		—
2.9%		2,649		9,706		—		—		9,012		12,657		5,698		—
2.95%		38		4,398		—		—		5,954		1,951		8,481		23
3%		6,614		—		2,677		—		2,294		24,370		12,246		—
3.05%		4,863		6,554		—		—		695		2,265		847		242
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		661		—		—		—
3.2%		—		239		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		2,746		—		—
3.4%		—		—		—		—		—		—		—		—
	$	3,473,037	$	6,500,742	$	11,939,620	$	6,584,427	$	29,268,073	$	15,652,547	$	9,654,553	$	1,125,698
	SAM		NVMIG3		NVMIG6		GVDIV2		GVDIV3		GVDIV6		NVMLG1		NVMLG2
0.4%	$	651	$	—	$	7	$	—	$	—	$	66	$	—	$	49
0.65%		950		—		895		—		—		129		—		545
0.75%		16,171		—		2,399		—		—		1,725		—		2,968
0.8%		8,968		994		—		—		108		—		912		—
0.85%		7,560		—		4,839		—		—		401		—		2,319
0.95%		5,302		—		444		144		—		1,724		—		2,053
1.05%		2,628		—		1,258		—		—		934		—		1,673
1.1%		48,007		—		23,222		—		—		15,441		—		12,849
1.15%		778,185		—		199,601		994		—		92,169		—		150,149
1.2%		6,739		—		2,863		—		—		870		—		2,597
1.25%		88,058		—		15,134		259		—		5,861		—		23,130
1.3%		1,551,231		230,406		38,778		—		36,194		53,267		80,076		32,982
1.35%		178,060		—		48,122		—		—		18,095		—		37,462
1.4%		690,429		107,958		23,649		134		16,995		3,986		20,713		14,493
1.45%		105,312		—		29,239		105		—		9,270		—		23,496
1.5%		245,244		—		38,042		579		—		25,168		—		47,431
1.55%		665,113		—		211,074		1,397		—		70,099		—		175,780
1.6%		126,569		—		6,684		149		—		4,869		—		15,726
1.65%		150,733		—		55,449		—		—		14,852		—		42,818
1.7%		44,957		—		31,893		49		—		9,725		—		24,245
1.75%		1,010,995		—		582,762		60		—		156,713		—		305,034
1.8%		199,584		—		49,544		374		—		12,103		—		43,509
1.85%		158,852		—		28,299		317		—		14,710		—		25,483
1.9%		27,665		—		4,973		—		—		7,462		—		6,653
1.95%		177,365		—		72,564		134		—		34,749		—		47,293
2%		187,677		—		103,528		—		—		18,029		—		71,939
2.05%		66,710		—		19,471		1,134		—		9,077		—		16,894
2.1%		78,961		—		35,268		199		—		11,105		—		26,893
2.15%		68,534		—		128,477		—		—		6,950		—		65,615
2.2%		121,174		—		23,617		—		—		11,033		—		26,543
2.25%		49,321		—		43,409		—		—		4,043		—		26,552
2.3%		46,075		—		7,458		—		—		11,371		—		9,628
2.35%		131,401		—		198,202		—		—		16,378		—		101,158
2.4%		21,477		—		38,897		—		—		1,950		—		21,755
2.45%		29,116		—		15,305		—		—		3,541		—		8,973
2.5%		39,359		—		3,645		—		—		9,719		—		4,138
2.55%		13,400		—		16,124		—		—		1,068		—		7,406
2.6%		7,942		—		5,214		—		—		1,192		—		2,965
2.65%		2,114		—		782		—		—		1,212		—		289
2.7%		2,816		—		5,967		—		—		347		—		2,408
2.75%		3,226		—		1,442		—		—		395		—		662
2.8%		705		—		1,124		—		—		982		—		3,496
2.85%		692		—		266		—		—		—		—		97
2.9%		622		—		1,497		—		—		369		—		677
2.95%		198		—		476		—		—		—		—		215
3%		—		—		—		—		—		—		—		—
3.05%		251		—		163		—		—		—		—		75
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		44		—		—		—		—		16
3.25%		—		—		—		—		—		—		—		—
3.3%		18		—		—		—		—		31		—		—
3.4%		—		—		—		—		—		—		—		—
	$	7,167,117	$	339,358	$	2,122,110	$	6,028	$	53,297	$	663,180	$	101,701	$	1,439,131

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	NVMLV1		NVMLV2		NVMMG1		NVMMG2		NVMMV2		SCGF		SCGF2		SCVF
0.4%	$	—	$	13	$	—	$	12	$	12	$	—	$	2	$	—
0.65%		—		163		—		454		740		—		12		—
0.75%		—		2,582		—		1,255		2,603		—		62		—
0.8%		241		23		4,650		—		1,010		590		—		1,431
0.85%		—		227		—		2,823		3,195		—		69		—
0.95%		—		671		—		3,075		31		—		142		—
1.05%		—		21		—		1,052		16		—		—		—
1.1%		—		7,040		—		19,920		20,063		—		1,347		—
1.15%		—		55,339		—		169,457		131,928		—		26,299		—
1.2%		—		1,052		—		2,028		1,678		—		—		—
1.25%		—		13,545		—		20,070		11,087		—		5,109		—
1.3%		23,571		48,846		1,510,447		43,226		1,177,707		47,568		12,057		233,432
1.35%		—		13,403		—		45,952		33,724		—		5,256		—
1.4%		8,648		5,517		309,812		16,140		362,829		12,364		2,012		89,371
1.45%		—		7,947		—		24,932		16,562		—		7,383		—
1.5%		—		36,766		—		38,846		24,748		—		10,312		—
1.55%		—		67,641		—		172,251		143,968		—		29,618		—
1.6%		—		9,506		—		10,100		7,113		—		6,799		—
1.65%		—		10,622		—		52,705		38,572		—		6,261		—
1.7%		—		12,401		—		26,849		20,969		—		4,376		—
1.75%		—		77,018		—		379,199		382,448		—		32,411		—
1.8%		—		24,152		—		40,497		33,228		—		6,760		—
1.85%		—		13,843		—		25,712		14,140		—		11,623		—
1.9%		—		1,281		—		8,788		3,554		—		1,741		—
1.95%		—		20,958		—		55,582		48,319		—		9,384		—
2%		—		18,123		—		69,225		70,110		—		13,527		—
2.05%		—		12,036		—		19,734		14,112		—		6,578		—
2.1%		—		11,686		—		26,518		25,624		—		9,427		—
2.15%		—		5,876		—		78,747		87,250		—		3,117		—
2.2%		—		5,618		—		18,955		16,926		—		14,012		—
2.25%		—		2,773		—		27,916		33,449		—		1,105		—
2.3%		—		14,409		—		13,857		6,058		—		1,613		—
2.35%		—		4,066		—		126,963		147,121		—		4,275		—
2.4%		—		2,414		—		25,409		25,893		—		513		—
2.45%		—		10,621		—		17,902		10,029		—		700		—
2.5%		—		7,936		—		6,605		5,857		—		1,957		—
2.55%		—		330		—		8,521		11,756		—		220		—
2.6%		—		477		—		6,893		4,119		—		163		—
2.65%		—		3,309		—		2,448		236		—		215		—
2.7%		—		150		—		3,346		4,172		—		—		—
2.75%		—		21		—		1,323		882		—		—		—
2.8%		—		17		—		849		606		—		7,094		—
2.85%		—		—		—		130		171		—		—		—
2.9%		—		—		—		815		1,050		—		—		—
2.95%		—		20		—		257		348		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		85		120		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		20		28		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	32,460	$	530,459	$	1,824,909	$	1,617,443	$	2,946,161	$	60,522	$	243,551	$	324,234
	SCVF2		SCF		SCF2		MSBF		NVSTB2		NVOLG1		NVOLG2		NVTIV3
0.4%	$	31	$	—	$	4	$	235	$	113	$	—	$	—	$	174
0.65%		52		—		2		249		106		—		226		1,036
0.75%		1,194		—		356		4,204		2,864		—		693		3,193
0.8%		—		4,100		—		208		101		7,789		—		—
0.85%		317		—		857		1,876		915		—		597		5,662
0.95%		1,036		—		3,197		4,015		911		—		2,553		—
1.05%		155		—		1,833		2,579		485		—		3,437		7
1.1%		1,349		—		5,719		19,281		19,923		—		21,903		39,676
1.15%		41,028		—		90,027		164,270		102,005		—		434,147		267,174
1.2%		136		—		372		545		637		—		5,030		2,731
1.25%		14,027		—		21,538		22,339		4,412		—		110,360		16,353
1.3%		13,086		496,572		19,483		299,092		70,492		2,414,540		45,786		216,208
1.35%		12,172		—		42,378		49,851		18,517		—		186,060		57,844
1.4%		2,747		231,739		5,557		46,091		16,969		1,020,384		35,359		26,519
1.45%		16,571		—		19,893		39,472		16,587		—		92,470		25,987
1.5%		12,031		—		24,627		91,478		42,355		—		109,503		82,096
1.55%		34,098		—		60,137		156,716		81,842		—		429,748		246,851
1.6%		8,295		—		7,240		18,700		19,076		—		42,596		9,055
1.65%		8,766		—		14,517		36,270		14,498		—		105,169		69,399
1.7%		3,846		—		14,396		9,425		12,142		—		48,592		32,274
1.75%		29,223		—		57,197		334,726		188,358		—		361,228		763,759
1.8%		8,888		—		10,874		37,694		21,025		—		131,573		57,722
1.85%		7,028		—		6,988		58,288		20,960		—		87,486		49,041
1.9%		1,348		—		6,639		14,906		9,622		—		18,030		5,827
1.95%		7,508		—		9,777		82,256		29,075		—		74,161		125,448
2%		7,502		—		10,126		48,146		23,256		—		83,085		118,088
2.05%		2,220		—		1,694		27,884		9,597		—		33,344		23,976
2.1%		4,748		—		4,735		27,310		20,705		—		51,840		52,041
2.15%		1,916		—		4,962		13,541		14,310		—		80,390		134,159
2.2%		2,752		—		4,296		30,020		14,098		—		39,792		42,115
2.25%		875		—		1,248		16,149		14,433		—		18,891		44,645
2.3%		2,362		—		5,330		26,413		9,367		—		24,281		14,584
2.35%		2,172		—		2,663		61,330		35,595		—		41,919		206,769
2.4%		375		—		557		4,372		8,833		—		22,707		40,167
2.45%		582		—		141		16,770		7,368		—		5,962		18,855
2.5%		941		—		852		34,304		41,524		—		10,976		4,712
2.55%		81		—		964		5,621		4,486		—		2,889		16,235
2.6%		156		—		124		4,322		7,418		—		4,661		5,317
2.65%		—		—		19		2,027		2,508		—		1,353		880
2.7%		244		—		77		627		1,924		—		733		6,317
2.75%		—		—		—		435		1,974		—		110		1,377
2.8%		—		—		179		1,656		453		—		821		933
2.85%		—		—		262		1,320		522		—		137		273
2.9%		19		—		168		—		555		—		—		1,526
2.95%		—		—		137		226		191		—		159		504
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		162
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		44
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		44		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	251,877	$	732,411	$	462,142	$	1,817,239	$	913,151	$	3,442,713	$	2,770,757	$	2,837,715

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	EIF2		NVRE1		NVRE2		ALVBWB		ALVGIB		ALVSVB		ACVB		ACVCA
0.4%	$	—	$	—	$	—	$	205	$	—	$	49	$	—	$	—
0.65%		222		—		49		—		—		309		—		—
0.75%		1,940		—		1,015		—		—		976		—		—
0.8%		48		4,094		—		—		—		164		1,046		—
0.85%		1,556		—		2,815		—		—		368		—		—
0.95%		31		—		4,763		—		1,759		936		—		—
1.05%		294		—		1,383		—		1,404		1,006		—		—
1.1%		21,647		—		4,809		—		422		9,793		—		—
1.15%		146,850		—		165,110		—		8,881		50,311		—		—
1.2%		1,364		—		386		—		503		480		—		—
1.25%		20,782		—		23,667		—		9,667		9,952		—		—
1.3%		158,573		462,493		21,064		—		1,407		112,693		245,571		848
1.35%		32,185		—		37,594		—		69		16,998		—		—
1.4%		21,178		207,213		8,089		—		231		12,961		101,366		62
1.45%		17,051		—		30,146		—		4,824		7,743		—		—
1.5%		84,765		—		47,071		—		7,640		41,614		—		—
1.55%		155,991		—		139,373		—		10,100		53,475		—		—
1.6%		20,087		—		24,184		—		1,904		9,055		—		—
1.65%		33,671		—		21,490		—		263		23,853		—		—
1.7%		31,431		—		11,682		—		2,233		10,712		—		—
1.75%		369,465		—		74,029		—		5,232		110,406		—		—
1.8%		41,037		—		36,387		—		7,295		20,197		—		—
1.85%		39,633		—		15,908		—		764		22,477		—		—
1.9%		5,485		—		6,476		—		1,497		2,102		—		—
1.95%		58,305		—		19,858		—		795		35,239		—		—
2%		59,178		—		20,329		—		—		20,963		—		—
2.05%		13,081		—		5,786		—		2,352		4,891		—		—
2.1%		20,617		—		18,964		—		657		15,233		—		—
2.15%		52,209		—		4,228		—		1,207		7,485		—		—
2.2%		33,275		—		17,803		—		245		13,964		—		—
2.25%		10,292		—		2,348		—		405		3,460		—		—
2.3%		13,114		—		6,142		—		273		10,609		—		—
2.35%		56,470		—		2,297		—		—		11,298		—		—
2.4%		15,075		—		939		—		—		1,480		—		—
2.45%		6,577		—		1,055		—		—		4,022		—		—
2.5%		11,006		—		3		—		—		7,755		—		—
2.55%		5,463		—		1,365		—		—		1,671		—		—
2.6%		1,515		—		—		—		—		459		—		—
2.65%		1,092		—		220		—		—		—		—		—
2.7%		2,262		—		—		—		—		339		—		—
2.75%		588		—		71		—		—		450		—		—
2.8%		480		—		1,325		—		—		53		—		—
2.85%		88		—		—		—		—		—		—		—
2.9%		408		—		—		—		—		—		—		—
2.95%		242		—		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		29		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		16		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	1,566,668	$	673,800	$	780,223	$	205	$	72,029	$	658,001	$	347,983	$	910
	ACVIG		ACVIG2		ACVIP2		ACVI		ACVI3		ACVMV1		ACVMV2		ACVU2
0.4%	$	—	$	—	$	436	$	—	$	—	$	—	$	215	$	—
0.65%		—		—		910		—		—		—		141		—
0.75%		—		—		6,840		—		—		—		2,591		—
0.8%		370		—		1,095		—		—		882		—		—
0.85%		—		—		10,029		—		—		—		1,629		—
0.95%		—		2,368		11,563		—		—		—		967		—
1.05%		—		2,919		6,201		—		—		—		980		—
1.1%		—		—		31,351		—		—		—		16,195		—
1.15%		—		8,624		307,816		—		—		—		87,161		—
1.2%		—		—		1,700		—		—		—		289		—
1.25%		—		4,853		67,362		—		—		—		12,596		—
1.3%		108,455		—		526,950		65		1		55,724		100,957		—
1.35%		—		281		76,942		—		—		—		29,032		—
1.4%		38,376		1,919		104,390		79		—		15,288		7,546		—
1.45%		—		1,704		51,030		—		—		—		13,526		—
1.5%		—		1,744		121,626		—		—		—		35,771		—
1.55%		—		11,952		303,848		—		—		—		91,685		29
1.6%		—		317		52,531		—		—		—		12,826		—
1.65%		—		106		102,014		—		—		—		21,397		—
1.7%		—		56		21,764		—		—		—		6,012		—
1.75%		—		2,014		538,494		—		—		—		186,596		—
1.8%		—		1,783		99,290		—		—		—		22,960		—
1.85%		—		2,853		86,127		—		—		—		26,812		—
1.9%		—		1,299		9,416		—		—		—		4,415		—
1.95%		—		91		151,062		—		—		—		49,734		—
2%		—		—		57,760		—		—		—		17,843		—
2.05%		—		1,129		33,782		—		—		—		6,190		—
2.1%		—		139		59,745		—		—		—		16,036		—
2.15%		—		39		22,902		—		—		—		15,094		—
2.2%		—		251		65,143		—		—		—		15,175		—
2.25%		—		—		18,970		—		—		—		2,868		—
2.3%		—		—		30,803		—		—		—		8,189		—
2.35%		—		—		40,802		—		—		—		13,671		—
2.4%		—		62		10,750		—		—		—		3,665		—
2.45%		—		—		15,484		—		—		—		3,051		—
2.5%		—		—		32,086		—		—		—		16,291		—
2.55%		—		—		5,137		—		—		—		1,346		—
2.6%		—		—		6,123		—		—		—		1,380		—
2.65%		—		—		110		—		—		—		1,058		—
2.7%		—		—		1,525		—		—		—		1,760		—
2.75%		—		—		1,689		—		—		—		—		—
2.8%		—		—		255		—		—		—		208		—
2.85%		—		—		438		—		—		—		437		—
2.9%		—		—		52		—		—		—		—		—
2.95%		—		—		383		—		—		—		172		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		241		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		64		—		—		—		38		—
3.4%		—		—		—		—		—		—		—		—
	$	147,201	$	46,503	$	3,095,031	$	144	$	1	$	71,894	$	856,505	$	29

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	ACVVS1		DVSCS		DCAP		DCAPS		DVDLS		DGI		FCA2S		FQB
0.4%	$	—	$	138	$	—	$	178	$	—	$	—	$	—	$	—
0.65%		—		103		—		195		—		—		—		—
0.75%		—		2,111		—		2,909		—		—		—		—
0.8%		—		421		2,248		—		—		310		—		128
0.85%		—		3,584		—		2,853		—		—		—		—
0.95%		—		2,029		—		3,582		266		—		105		—
1.05%		—		4,085		—		4,823		24		—		—		—
1.1%		—		6,496		—		8,313		—		—		—		—
1.15%		—		103,370		—		117,428		5,250		—		2,929		—
1.2%		—		818		—		—		—		—		10		—
1.25%		—		12,158		—		13,804		951		—		1,930		—
1.3%		52		139,211		272,982		161,089		—		93,379		—		76,211
1.35%		—		28,793		—		34,503		—		—		—		—
1.4%		—		30,494		91,157		6,906		128		38,066		173		34,827
1.45%		—		26,569		—		29,581		12		—		445		—
1.5%		—		47,689		—		67,495		253		—		897		—
1.55%		—		92,414		—		88,260		5,921		—		5,132		—
1.6%		—		12,158		—		18,949		—		—		1,036		—
1.65%		—		15,685		—		33,628		—		—		144		—
1.7%		—		7,631		—		15,048		400		—		362		—
1.75%		—		166,268		—		200,004		1,582		—		304		—
1.8%		—		42,713		—		24,477		1,132		—		447		—
1.85%		—		18,670		—		43,222		80		—		1,159		—
1.9%		—		4,852		—		10,985		—		—		430		—
1.95%		—		30,932		—		60,680		414		—		232		—
2%		—		33,618		—		31,430		5		—		—		—
2.05%		—		8,537		—		18,284		39		—		1,328		—
2.1%		—		14,021		—		29,409		162		—		—		—
2.15%		—		24,578		—		10,666		—		—		—		—
2.2%		—		14,295		—		18,246		—		—		—		—
2.25%		—		3,518		—		2,507		79		—		211		—
2.3%		—		5,576		—		20,462		—		—		—		—
2.35%		—		26,659		—		15,195		—		—		—		—
2.4%		—		6,889		—		1,500		—		—		29		—
2.45%		—		3,035		—		5,977		—		—		—		—
2.5%		—		3,231		—		8,399		—		—		—		—
2.55%		—		6,540		—		8,984		—		—		—		—
2.6%		—		1,859		—		3,121		—		—		—		—
2.65%		—		709		—		1,242		—		—		—		—
2.7%		—		859		—		520		—		—		—		—
2.75%		—		208		—		876		—		—		—		—
2.8%		—		944		—		2,606		—		—		—		—
2.85%		—		49		—		—		—		—		—		—
2.9%		—		190		—		—		—		—		—		—
2.95%		—		58		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		19		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		7		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	52	$	954,791	$	366,387	$	1,128,336	$	16,698	$	131,755	$	17,303	$	111,166
	FQBS		FEIP		FVSS2		FHIP		FAMP		FNRS2		FEI2		FF10S
0.4%	$	—	$	—	$	—	$	—	$	—	$	—	$	197	$	—
0.65%		—		—		—		—		—		50		204		—
0.75%		—		—		—		—		—		1,179		821		—
0.8%		—		3,925		—		1,119		804		1,228		—		374
0.85%		—		—		—		—		—		4,935		1,201		—
0.95%		2,016		—		—		—		—		1,129		369		—
1.05%		1,250		—		—		—		—		2,331		623		—
1.1%		1,617		—		207		—		—		6,259		24,786		—
1.15%		69,550		—		17,798		—		—		113,446		274,463		—
1.2%		4,893		—		3,959		—		—		533		2,589		—
1.25%		28,086		—		8,448		—		—		10,319		49,089		—
1.3%		217		2,341,239		—		336,192		1,170,507		159,620		188,856		37,745
1.35%		25,543		—		6,524		—		—		35,613		70,397		—
1.4%		6,221		987,337		2,872		195,699		257,396		39,305		11,681		15,892
1.45%		16,599		—		1,815		—		—		19,851		44,921		—
1.5%		20,207		—		4,078		—		—		24,069		94,175		—
1.55%		67,886		—		17,491		—		—		119,319		209,613		—
1.6%		5,724		—		1,924		—		—		12,780		36,626		—
1.65%		21,306		—		4,808		—		—		24,154		46,568		—
1.7%		17,501		—		676		—		—		6,062		18,759		—
1.75%		60,791		—		9,984		—		—		91,330		356,841		—
1.8%		42,255		—		4,004		—		—		23,758		63,545		—
1.85%		7,173		—		2,656		—		—		17,117		56,961		—
1.9%		2,995		—		1,676		—		—		1,748		12,044		—
1.95%		6,561		—		3,754		—		—		26,070		84,527		—
2%		13,868		—		1,586		—		—		23,830		64,563		—
2.05%		4,564		—		1,607		—		—		7,216		26,597		—
2.1%		5,988		—		808		—		—		89,883		28,188		—
2.15%		10,664		—		3,412		—		—		9,878		35,844		—
2.2%		6,248		—		670		—		—		45,555		37,387		—
2.25%		2,925		—		848		—		—		680		11,367		—
2.3%		5,750		—		307		—		—		6,598		18,400		—
2.35%		5,815		—		597		—		—		1,139		36,302		—
2.4%		2,595		—		376		—		—		1,493		3,743		—
2.45%		483		—		79		—		—		2,647		7,224		—
2.5%		124		—		116		—		—		305		10,405		—
2.55%		3		—		31		—		—		—		1,433		—
2.6%		5,139		—		515		—		—		—		601		—
2.65%		—		—		164		—		—		532		98		—
2.7%		—		—		—		—		—		—		2,261		—
2.75%		—		—		—		—		—		10		236		—
2.8%		—		—		—		—		—		896		495		—
2.85%		—		—		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		52		—
2.95%		—		—		—		—		—		—		410		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		44		—
3.4%		—		—		—		—		—		—		—		—
	$	472,557	$	3,332,501	$	103,790	$	533,010	$	1,428,707	$	932,867	$	1,935,506	$	54,011

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	FF10S2		FF20S		FF20S2		FF30S		FF30S2		FGP		FG2		FHIPR
0.4%	$	—	$	—	$	—	$	—	$	—	$	—	$	275	$	—
0.65%		—		—		—		—		—		—		107		—
0.75%		—		—		—		—		—		—		1,179		—
0.8%		—		235		—		905		—		6,086		—		447
0.85%		—		—		—		—		—		—		2,788		—
0.95%		—		—		—		—		—		—		130		—
1.05%		—		—		—		—		—		—		1,697		—
1.1%		49,093		—		134,602		—		897		—		11,694		—
1.15%		163,024		—		586,642		—		21,300		—		124,411		—
1.2%		774		—		2,004		—		58		—		4,101		—
1.25%		10,926		—		30,172		—		11,895		—		20,880		—
1.3%		228,525		89,682		964,758		67,931		6,861		2,727,523		127,983		159,295
1.35%		40,575		—		123,908		—		22,705		—		34,735		—
1.4%		14,172		6,996		14,776		6,851		—		674,382		6,747		76,012
1.45%		39,217		—		67,962		—		7,078		—		25,603		—
1.5%		60,342		—		200,867		—		16,993		—		63,010		—
1.55%		104,375		—		351,702		—		33,304		—		126,820		—
1.6%		14,313		—		17,647		—		1,724		—		15,350		—
1.65%		29,004		—		70,905		—		6,873		—		32,941		—
1.7%		10,400		—		9,532		—		9,258		—		17,452		—
1.75%		313,042		—		1,023,471		—		80,676		—		184,929		—
1.8%		18,875		—		31,860		—		6,466		—		38,832		—
1.85%		26,305		—		115,842		—		5,757		—		61,447		—
1.9%		2,708		—		7,132		—		3,201		—		8,365		—
1.95%		45,415		—		176,233		—		14,444		—		49,566		—
2%		51,178		—		117,290		—		5,597		—		38,925		—
2.05%		9,069		—		26,422		—		7,028		—		16,524		—
2.1%		37,242		—		37,963		—		3,864		—		23,451		—
2.15%		39,340		—		83,838		—		30,794		—		15,237		—
2.2%		27,626		—		76,563		—		2,794		—		48,527		—
2.25%		10,696		—		3,415		—		688		—		4,753		—
2.3%		5,181		—		27,264		—		15,431		—		10,476		—
2.35%		10,939		—		39,192		—		10,399		—		8,664		—
2.4%		3,572		—		13,067		—		4,502		—		4,784		—
2.45%		4,521		—		7,576		—		2,264		—		8,334		—
2.5%		5,155		—		7,680		—		611		—		5,381		—
2.55%		5,878		—		7,676		—		203		—		3,574		—
2.6%		4,074		—		81		—		201		—		694		—
2.65%		—		—		—		—		—		—		1,328		—
2.7%		—		—		—		—		—		—		1,068		—
2.75%		—		—		23		—		—		—		176		—
2.8%		—		—		—		—		—		—		388		—
2.85%		—		—		70		—		—		—		441		—
2.9%		—		—		—		—		—		—		—		—
2.95%		—		—		2,284		—		—		—		98		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	1,385,556	$	96,913	$	4,380,419	$	75,687	$	333,866	$	3,407,991	$	1,153,865	$	235,754
	FIGBS		FIGBP2		FMCS		FMC2		FOP		FOPR		FO2		FO2R
0.4%	$	—	$	344	$	—	$	330	$	—	$	—	$	—	$	119
0.65%		—		1,721		—		128		—		—		—		18
0.75%		—		11,657		—		1,696		—		—		—		726
0.8%		2,260		—		2,176		—		310		757		—		—
0.85%		—		16,039		—		4,532		—		—		—		1,131
0.95%		—		2,431		—		1,671		—		—		—		230
1.05%		—		3,434		—		4,284		—		—		—		572
1.1%		—		65,247		—		33,724		—		—		84		9,254
1.15%		—		590,694		—		407,445		—		—		7,070		96,545
1.2%		—		4,550		—		2,338		—		—		—		728
1.25%		—		56,889		—		52,146		—		—		5,237		8,872
1.3%		180,399		275,004		192,441		219,369		408,048		194,422		198		60,493
1.35%		—		135,585		—		139,454		—		—		—		22,013
1.4%		87,121		56,245		48,459		19,364		98,516		39,900		1,061		2,681
1.45%		—		93,022		—		58,731		—		—		709		19,365
1.5%		—		141,560		—		123,724		—		—		2,023		29,768
1.55%		—		478,799		—		316,470		—		—		2,847		71,725
1.6%		—		47,295		—		45,773		—		—		411		6,415
1.65%		—		143,265		—		101,808		—		—		—		17,348
1.7%		—		70,647		—		32,733		—		—		2,716		15,222
1.75%		—		1,192,304		—		515,693		—		—		383		120,879
1.8%		—		121,971		—		91,826		—		—		693		25,203
1.85%		—		108,135		—		77,913		—		—		418		26,691
1.9%		—		21,157		—		17,664		—		—		310		5,472
1.95%		—		175,213		—		111,234		—		—		437		27,279
2%		—		205,601		—		86,566		—		—		18		16,030
2.05%		—		56,137		—		49,180		—		—		129		3,797
2.1%		—		66,316		—		51,574		—		—		5		11,986
2.15%		—		176,732		—		60,673		—		—		—		7,302
2.2%		—		65,722		—		42,883		—		—		119		13,392
2.25%		—		108,401		—		19,754		—		—		24		4,604
2.3%		—		31,339		—		33,543		—		—		—		8,700
2.35%		—		396,609		—		63,062		—		—		—		21,759
2.4%		—		60,614		—		19,017		—		—		—		1,386
2.45%		—		33,120		—		8,079		—		—		—		3,480
2.5%		—		33,399		—		22,936		—		—		—		7,355
2.55%		—		30,550		—		6,239		—		—		—		1,017
2.6%		—		13,875		—		12,252		—		—		—		1,660
2.65%		—		3,631		—		1,997		—		—		—		701
2.7%		—		8,573		—		1,059		—		—		—		951
2.75%		—		4,029		—		28		—		—		—		92
2.8%		—		3,187		—		9,900		—		—		—		104
2.85%		—		340		—		262		—		—		—		347
2.9%		—		3,435		—		509		—		—		—		—
2.95%		—		633		—		290		—		—		—		54
3%		—		—		—		—		—		—		—		—
3.05%		—		298		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		32		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		44		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	269,780	$	5,115,781	$	243,076	$	2,869,897	$	506,874	$	235,079	$	24,892	$	673,466

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	FVSS		FTVIS2		FTVRD2		FTVSV2		FTVDM3		TIF2		TIF3		FTVGI3
0.4%	$	—	$	—	$	—	$	85	$	—	$	—	$	—	$	—
0.65%		—		75		—		455		—		—		—		109
0.75%		—		1,837		—		1,514		—		—		—		1,193
0.8%		216		659		—		278		294		—		177		523
0.85%		—		1,933		—		3,121		—		—		—		1,287
0.95%		—		970		2,408		3,842		290		254		1,229		1,415
1.05%		—		542		1,534		2,413		1,024		28		1,066		2,642
1.1%		—		16,702		1,595		19,378		2,397		194		12,417		7,603
1.15%		—		177,988		101,088		177,434		36,879		6,071		113,634		171,905
1.2%		—		1,341		2,615		7,916		217		168		1,049		356
1.25%		—		31,122		36,981		24,846		4,157		4,031		13,308		22,078
1.3%		47,009		146,876		1,578		127,140		36,981		—		28,105		216,968
1.35%		—		96,749		35,716		59,496		13,334		—		33,498		59,547
1.4%		14,453		91,669		12,596		34,322		13,013		1,946		10,013		63,122
1.45%		—		38,822		21,827		34,490		14,290		1,983		24,346		57,748
1.5%		—		88,293		26,415		49,452		11,140		2,730		29,840		66,280
1.55%		—		188,293		121,629		176,603		53,754		5,738		120,413		107,146
1.6%		—		65,297		13,209		18,871		2,995		4,518		10,862		72,393
1.65%		—		62,494		28,866		44,566		23,805		19		18,910		45,058
1.7%		—		17,090		10,798		23,698		2,156		1,432		18,344		8,412
1.75%		—		253,067		61,490		338,321		35,785		682		153,586		127,115
1.8%		—		70,506		49,217		44,399		13,196		2,589		26,573		74,044
1.85%		—		27,830		13,423		28,740		4,663		890		15,480		30,843
1.9%		—		2,543		8,492		5,387		1,945		1,181		9,187		1,263
1.95%		—		46,242		17,449		55,876		10,144		587		24,463		28,339
2%		—		58,190		28,328		73,619		6,985		14		26,484		27,462
2.05%		—		13,177		15,864		17,716		1,170		536		5,096		6,471
2.1%		—		18,537		12,367		30,549		18,150		516		15,019		6,900
2.15%		—		13,025		16,664		55,906		3,838		224		12,490		3,083
2.2%		—		7,786		16,641		18,591		1,296		—		9,695		11,852
2.25%		—		14,440		2,407		24,651		804		346		9,365		3,281
2.3%		—		6,350		10,610		10,441		3,981		—		12,830		3,478
2.35%		—		3,184		5,231		107,342		47		—		45,009		541
2.4%		—		2,338		1,882		15,524		680		—		4,590		1,041
2.45%		—		2,641		1,676		10,010		1,014		—		3,423		1,384
2.5%		—		532		880		9,196		360		—		27,377		676
2.55%		—		1,929		455		7,381		635		—		2,693		639
2.6%		—		366		567		3,924		—		—		5,616		325
2.65%		—		7		500		274		207		—		86		2,038
2.7%		—		—		—		2,784		—		—		1,767		—
2.75%		—		—		—		509		—		—		687		—
2.8%		—		338		11		4,003		—		—		1,161		—
2.85%		—		—		—		104		—		—		517		—
2.9%		—		—		—		616		—		—		—		—
2.95%		—		645		—		165		—		—		295		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		145		—		—		142		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		11		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		31		—
3.4%		—		—		—		—		—		—		—		—
	$	61,678	$	1,572,425	$	683,009	$	1,676,104	$	321,626	$	36,677	$	850,873	$	1,236,560
	FTVFA2		AMTB		AMTG		AMINS		AMTP		AMRS		AMFAS		AMSRS
0.4%	$	—	$	27	$	—	$	—	$	—	$	—	$	—	$	—
0.65%		—		961		—		—		—		—		—		—
0.75%		35		5,650		—		—		—		—		—		—
0.8%		9		262		—		—		—		—		180		96
0.85%		—		5,069		—		—		—		—		—		—
0.95%		—		4,787		—		—		—		—		215		5,497
1.05%		242		782		—		—		—		—		34		1,609
1.1%		1,848		24,210		—		—		—		—		213		4,579
1.15%		15,891		195,498		—		—		—		—		3,383		42,890
1.2%		—		2,564		—		—		—		—		38		—
1.25%		4,182		18,014		—		—		—		—		1,870		5,408
1.3%		24,939		229,367		75		—		2		—		3,882		51,517
1.35%		12,152		40,721		—		—		—		—		886		19,530
1.4%		4,250		108,719		63		—		155		—		4,450		9,056
1.45%		15,369		41,767		—		—		—		—		1,873		8,265
1.5%		27,703		42,833		—		—		—		—		1,355		6,985
1.55%		50,566		176,783		—		—		—		1		8,109		24,613
1.6%		15,838		23,778		—		—		—		—		942		3,029
1.65%		4,176		59,542		—		—		—		—		255		9,687
1.7%		2,113		30,982		—		—		—		—		444		5,273
1.75%		52,236		384,736		—		1		—		—		5,879		45,359
1.8%		7,870		58,039		—		—		—		—		1,260		7,914
1.85%		5,041		32,638		—		—		—		—		564		6,361
1.9%		58		10,643		—		—		—		—		47		5,229
1.95%		11,376		60,895		—		—		—		—		877		3,259
2%		4,911		77,350		—		—		—		—		120		3,933
2.05%		1,688		16,401		—		—		—		—		1,895		3,518
2.1%		152		20,224		—		—		—		—		536		5,298
2.15%		1,445		59,898		—		—		—		—		1,116		4,869
2.2%		7,573		25,209		—		—		—		—		1,334		1,012
2.25%		171		67,710		—		—		—		—		229		549
2.3%		651		13,949		—		—		—		—		260		2,011
2.35%		2,141		208,556		—		—		—		—		1,416		2,847
2.4%		765		18,936		—		—		—		—		929		3,929
2.45%		—		14,082		—		—		—		—		—		—
2.5%		413		13,515		—		—		—		—		78		64
2.55%		1,829		9,584		—		—		—		—		25		—
2.6%		—		6,559		—		—		—		—		—		175
2.65%		1,217		1,863		—		—		—		—		—		197
2.7%		—		3,065		—		—		—		—		—		—
2.75%		—		3,377		—		—		—		—		—		—
2.8%		—		934		—		—		—		—		23		—
2.85%		—		575		—		—		—		—		—		—
2.9%		—		783		—		—		—		—		—		—
2.95%		—		320		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		410		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	278,850	$	2,122,567	$	138	$	1	$	157	$	1	$	44,717	$	294,558

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	OVMS		OVB		OVGS3		OVGS4		OVGS		OVGSS		OVHI3		OVHI4
0.4%	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
0.65%		—		—		—		—		—		—		—		—
0.75%		—		—		—		376		—		—		—		—
0.8%		288		356		1,020		—		673		—		391		—
0.85%		—		—		—		927		—		—		—		—
0.95%		—		—		—		6,238		—		6		—		633
1.05%		—		—		—		4,243		—		185		—		175
1.1%		—		—		—		4,788		—		221		—		81
1.15%		—		—		—		136,540		—		13,940		—		14,068
1.2%		—		—		—		1,027		—		560		—		95
1.25%		—		—		—		28,296		—		19,062		—		2,030
1.3%		272,476		214,742		412,456		21,209		655,824		1,658		3,965		—
1.35%		—		—		—		66,895		—		—		—		4,681
1.4%		124,938		136,125		81,356		9,585		380,308		1,337		960		619
1.45%		—		—		—		33,885		—		3,545		—		4,399
1.5%		—		—		—		31,908		—		4,551		—		2,220
1.55%		—		—		—		97,711		—		13,142		—		15,876
1.6%		—		—		—		13,963		—		229		—		394
1.65%		—		—		—		39,347		—		46		—		2,699
1.7%		—		—		—		6,383		—		1,530		—		470
1.75%		—		—		—		56,482		—		1,580		—		11,382
1.8%		—		—		—		22,807		—		7,309		—		1,865
1.85%		—		—		—		10,607		—		3,102		—		946
1.9%		—		—		—		2,699		—		432		—		751
1.95%		—		—		—		16,494		—		544		—		1,266
2%		—		—		—		17,215		—		691		—		3,087
2.05%		—		—		—		4,974		—		1,042		—		40
2.1%		—		—		—		15,227		—		1,364		—		876
2.15%		—		—		—		2,065		—		921		—		399
2.2%		—		—		—		14,048		—		—		—		2,673
2.25%		—		—		—		1,750		—		120		—		574
2.3%		—		—		—		1,730		—		—		—		—
2.35%		—		—		—		2,377		—		—		—		—
2.4%		—		—		—		1,477		—		—		—		52
2.45%		—		—		—		471		—		—		—		313
2.5%		—		—		—		81		—		—		—		—
2.55%		—		—		—		759		—		—		—		—
2.6%		—		—		—		—		—		—		—		—
2.65%		—		—		—		36		—		—		—		—
2.7%		—		—		—		—		—		—		—		—
2.75%		—		—		—		—		—		—		—		10
2.8%		—		—		—		3,132		—		—		—		—
2.85%		—		—		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		—		—		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	397,702	$	351,223	$	494,832	$	677,752	$	1,036,805	$	77,117	$	5,316	$	72,674
	OVHI		OVHIS		OVGI		OVGIS		OVSC		OVSCS		OVAG		PMVAAD
0.4%	$	—	$	—	$	—	$	44	$	—	$	22	$	—	$	—
0.65%		—		—		—		881		—		28		—		4
0.75%		—		—		—		2,648		—		317		—		—
0.8%		13		—		89		—		237		—		370		—
0.85%		—		—		—		5,733		—		1,320		—		35
0.95%		—		368		—		1,244		—		1,355		—		—
1.05%		—		244		—		880		—		2,118		—		—
1.1%		—		181		—		31,303		—		7,415		—		430
1.15%		—		5,010		—		264,861		—		71,437		—		1,247
1.2%		—		205		—		2,920		—		86		—		—
1.25%		—		2,104		—		28,320		—		11,499		—		4
1.3%		154		—		100,162		77,888		34,454		42,151		89,038		2,309
1.35%		—		1,502		—		66,189		—		32,545		—		880
1.4%		12		1,017		23,374		30,141		9,469		3,186		17,073		467
1.45%		—		917		—		34,590		—		16,572		—		201
1.5%		—		790		—		65,525		—		23,717		—		1,204
1.55%		—		5,408		—		286,754		—		91,264		—		1,520
1.6%		—		288		—		13,919		—		11,283		—		2,122
1.65%		—		815		—		71,287		—		30,324		—		541
1.7%		—		642		—		44,705		—		5,367		—		—
1.75%		—		2,121		—		695,263		—		93,484		—		2,929
1.8%		—		2,183		—		67,822		—		22,832		—		937
1.85%		—		644		—		42,305		—		15,886		—		469
1.9%		—		231		—		8,490		—		2,795		—		—
1.95%		—		161		—		95,916		—		26,018		—		280
2%		—		679		—		121,491		—		25,647		—		1,100
2.05%		—		411		—		30,152		—		12,263		—		92
2.1%		—		273		—		49,249		—		22,474		—		1,079
2.15%		—		163		—		145,992		—		5,212		—		23
2.2%		—		198		—		32,098		—		8,191		—		176
2.25%		—		131		—		50,649		—		1,956		—		204
2.3%		—		5		—		11,160		—		6,472		—		9
2.35%		—		61		—		233,935		—		6,668		—		—
2.4%		—		—		—		42,279		—		911		—		179
2.45%		—		—		—		18,006		—		3,012		—		—
2.5%		—		—		—		12,745		—		4,658		—		—
2.55%		—		—		—		18,509		—		2,937		—		311
2.6%		—		—		—		8,493		—		247		—		—
2.65%		—		—		—		1,817		—		846		—		—
2.7%		—		—		—		5,386		—		37		—		—
2.75%		—		—		—		2,225		—		249		—		—
2.8%		—		—		—		1,139		—		12,216		—		—
2.85%		—		—		—		417		—		—		—		—
2.9%		—		—		—		1,540		—		—		—		—
2.95%		—		—		—		469		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		181		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		36		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		32		—		—
3.4%		—		—		—		—		—		—		—		—
	$	179	$	26,752	$	123,625	$	2,727,596	$	44,160	$	627,049	$	106,481	$	18,752
	PMVFAD		PMVLAD		PMVTRD		PVGIB		PVTIGB		PVTVB		ACEG2		AVBV2
0.4%	$	—	$	615	$	662	$	—	$	—	$	—	$	—	$	—
0.65%		—		877		378		—		—		—		—		—
0.75%		1,702		16,449		3,308		—		—		—		—		—
0.8%		87		406		—		—		—		—		12		—
0.85%		899		13,349		3,833		—		—		—		—		—
0.95%		41		4,110		565		—		—		504		297		—
1.05%		159		4,661		1,045		82		—		7		642		—
1.1%		5,843		43,368		3,552		377		—		152		351		—
1.15%		27,064		297,286		83,588		5,523		918		6,874		4,889		—
1.2%		79		1,448		20		81		—		—		—		—
1.25%		5,274		27,393		3,966		1,410		329		4,511		1,024		—
1.3%		35,194		528,074		334,986		—		—		—		1,005		—
1.35%		11,366		79,322		28,020		813		—		577		1,007		—
1.4%		9,548		60,210		27,535		194		253		383		1,053		—
1.45%		5,404		47,801		13,302		745		185		644		853		—
1.5%		16,056		164,792		85,964		701		462		645		1,908		—
1.55%		25,694		279,392		48,228		6,993		171		4,917		5,645		23
1.6%		25,983		81,263		59,769		31		21		2,637		285		—
1.65%		6,497		85,874		17,999		1,582		—		894		346		—
1.7%		539		21,711		2,377		279		—		566		1,719		—
1.75%		25,364		733,605		259,350		4,997		397		665		3,792		—
1.8%		7,535		86,399		20,795		1,361		694		1,635		954		—
1.85%		2,259		118,815		61,006		673		228		532		1,073		—
1.9%		973		11,527		846		804		—		1,420		1,014		—
1.95%		9,327		201,234		66,720		794		—		—		953		—
2%		7,264		119,951		15,405		586		—		251		1,399		—
2.05%		2,052		47,813		18,015		563		380		199		740		—
2.1%		6,267		48,136		15,065		1,169		52		85		1,175		—
2.15%		1,431		67,725		13,914		239		—		—		1,677		—
2.2%		3,682		86,140		47,130		136		—		18		158		—
2.25%		251		28,881		3,280		352		—		360		148		—
2.3%		949		27,047		15,408		139		—		132		90		—
2.35%		—		119,677		4,630		195		—		627		1,313		—
2.4%		90		20,247		859		—		—		—		379		—
2.45%		511		18,595		4,320		—		—		331		359		—
2.5%		—		6,921		1,686		—		—		—		160		—
2.55%		1,163		11,413		1,286		—		—		—		129		—
2.6%		—		3,156		384		—		—		—		—		—
2.65%		—		2,500		1,131		—		—		—		—		—
2.7%		—		3,276		321		—		—		—		—		—
2.75%		—		748		—		—		—		—		—		—
2.8%		—		16,129		105		—		—		—		—		—
2.85%		—		121		—		—		—		—		—		—
2.9%		—		684		—		—		—		—		—		—
2.95%		—		208		—		—		—		—		11		—
3%		—		—		—		—		—		—		—		—
3.05%		—		85		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		16		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	246,547	$	3,539,450	$	1,270,753	$	30,819	$	4,090	$	29,566	$	36,560	$	23

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	AVCA2		AVCD2		VYDS		TRHS2		VWHAS		VWBFR		VWBF		VWEMR
0.4%	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
0.65%		—		—		—		33		—		—		—		—
0.75%		—		67		—		1,920		692		—		—		—
0.8%		9		43		—		475		—		68		87		346
0.85%		—		63		—		2,983		337		—		—		—
0.95%		237		261		—		1,017		117		—		—		—
1.05%		504		17		—		736		—		—		—		—
1.1%		300		1,207		—		3,119		3		—		—		—
1.15%		3,863		11,873		299		52,565		961		—		—		—
1.2%		—		134		—		409		—		—		—		—
1.25%		1,006		2,884		2,225		3,673		122		—		—		—
1.3%		771		13,339		—		108,614		7,464		15,491		92,790		46,533
1.35%		764		4,562		927		10,856		915		—		—		—
1.4%		1,220		1,620		—		35,276		221		9,250		46,551		12,510
1.45%		619		2,412		—		5,251		59		—		—		—
1.5%		1,553		4,797		—		18,835		3,325		—		—		—
1.55%		4,848		11,450		38		35,982		1,599		—		—		—
1.6%		226		1,842		—		9,749		1,842		—		—		—
1.65%		450		2,896		58		9,331		464		—		—		—
1.7%		1,384		1,124		—		1,736		90		—		—		—
1.75%		3,213		20,284		—		49,951		3,575		—		—		—
1.8%		769		3,188		—		7,597		384		—		—		—
1.85%		1,406		2,694		—		11,224		494		—		—		—
1.9%		820		676		—		1,048		—		—		—		—
1.95%		703		6,823		—		20,876		644		—		—		—
2%		1,394		3,369		—		14,969		238		—		—		—
2.05%		863		1,353		—		5,575		540		—		—		—
2.1%		988		7,789		—		11,445		3,757		—		—		—
2.15%		1,404		4,534		—		1,927		26		—		—		—
2.2%		152		1,791		—		29,112		1,234		—		—		—
2.25%		125		721		—		32		—		—		—		—
2.3%		109		3,553		—		2,378		234		—		—		—
2.35%		1,386		3,403		—		910		—		—		—		—
2.4%		309		667		—		205		—		—		—		—
2.45%		408		1,068		—		1,075		—		—		—		—
2.5%		128		2,229		—		—		—		—		—		—
2.55%		107		590		—		759		—		—		—		—
2.6%		—		69		—		—		—		—		—		—
2.65%		—		—		—		32		—		—		—		—
2.7%		—		15		—		—		—		—		—		—
2.75%		—		200		—		74		—		—		—		—
2.8%		—		233		—		5,241		—		—		—		—
2.85%		—		197		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		9		47		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	32,047	$	126,084	$	3,547	$	466,990	$	29,337	$	24,809	$	139,428	$	59,389
	VWEM		VWHAR		VWHA		WRASP		WRHIP		WRMCG		WRPCP		WRPMP
0.4%	$	—	$	—	$	—	$	—	$	—	$	16	$	3,573	$	22,041
0.65%		—		—		—		39		—		—		—		—
0.75%		—		909		863		2,683		18		62		—		—
0.8%		1,235		335		1,320		639		—		—		—		—
0.85%		—		723		915		802		—		—		—		—
0.95%		—		98		51		423		—		—		—		—
1.05%		—		386		361		1,274		—		—		—		—
1.1%		—		1,490		1,607		4,872		54		28		—		—
1.15%		—		12,685		12,505		79,863		1,070		333		—		—
1.2%		—		3		3		103		1		—		—		—
1.25%		—		1,792		1,823		28,280		262		4		—		—
1.3%		163,848		118,546		294,086		165,640		3,381		2,377		—		—
1.35%		—		5,642		5,194		46,138		505		277		—		—
1.4%		60,779		28,996		89,712		28,248		973		53		—		—
1.45%		—		3,239		2,799		15,890		173		45		—		—
1.5%		—		17,895		20,215		137,744		4,011		1,328		—		—
1.55%		—		11,767		11,926		93,647		2,545		96		—		—
1.6%		—		9,831		8,813		84,212		1,682		361		—		—
1.65%		—		5,296		5,647		23,253		652		340		—		—
1.7%		—		1,128		1,099		4,106		297		—		—		—
1.75%		—		11,255		11,801		173,155		3,609		1,869		—		—
1.8%		—		6,874		7,078		56,967		791		257		—		—
1.85%		—		3,269		3,744		17,923		606		297		—		—
1.9%		—		589		299		1,366		616		—		—		—
1.95%		—		4,864		5,028		81,811		759		807		—		—
2%		—		2,481		2,271		58,311		736		78		—		—
2.05%		—		2,868		3,265		8,811		208		410		—		—
2.1%		—		13,299		13,627		33,040		604		199		—		—
2.15%		—		1,231		1,451		8,674		70		—		—		—
2.2%		—		8,168		17,347		52,360		2,321		—		—		—
2.25%		—		230		236		230		63		—		—		—
2.3%		—		444		381		9,912		1,948		72		—		—
2.35%		—		114		125		2,602		796		—		—		—
2.4%		—		3,132		3,257		923		—		—		—		—
2.45%		—		2,414		2,181		1,219		7		—		—		—
2.5%		—		—		—		683		—		72		—		—
2.55%		—		1,184		968		2,651		1,871		—		—		—
2.6%		—		—		—		—		—		—		—		—
2.65%		—		89		33		1,173		10		—		—		—
2.7%		—		—		—		—		—		—		—		—
2.75%		—		5,345		5,006		—		—		—		—		—
2.8%		—		683		746		114		343		27		—		—
2.85%		—		—		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		—		—		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	225,862	$	289,294	$	537,783	$	1,229,781	$	30,982	$	9,408	$	3,573	$	22,041

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

	WRPMAP		WRPMCP		SVDF		SVOF		WFVSCG		WFVSMV		WFVTRB		WFVOG2
0.4%	$	50,854	$	7,414	$	—	$	—	$	17	$	—	$	—	$	—
0.65%		—		—		—		—		6		—		—		—
0.75%		—		—		—		—		151		—		—		—
0.8%		—		—		—		—		68		—		—		—
0.85%		—		—		—		—		1,802		—		—		—
0.95%		—		—		—		—		436		—		—		—
1.05%		—		—		—		—		381		—		—		—
1.1%		—		—		—		—		6,955		68		—		—
1.15%		—		—		—		—		30,125		—		257		—
1.2%		—		—		—		—		17		—		—		—
1.25%		—		—		—		—		3,275		—		2,528		—
1.3%		—		—		71		2,380		71,360		—		—		—
1.35%		—		—		—		—		10,921		—		—		—
1.4%		—		—		323		199		9,098		—		—		116
1.45%		—		—		—		—		6,361		—		—		—
1.5%		—		—		—		—		19,648		—		—		—
1.55%		—		—		—		—		42,285		—		—		—
1.6%		—		—		—		—		7,861		—		—		347
1.65%		—		—		—		—		11,054		—		—		—
1.7%		—		—		—		—		2,380		—		—		—
1.75%		—		—		—		—		74,278		—		—		76
1.8%		—		—		—		—		5,799		—		—		—
1.85%		—		—		—		—		13,201		—		—		—
1.9%		—		—		—		—		2,889		—		—		—
1.95%		—		—		—		—		15,513		—		—		—
2%		—		—		—		—		10,582		—		—		—
2.05%		—		—		—		—		2,007		—		—		—
2.1%		—		—		—		—		14,190		—		—		—
2.15%		—		—		—		—		1,809		—		—		—
2.2%		—		—		—		—		25,711		—		—		116
2.25%		—		—		—		—		1,353		—		—		—
2.3%		—		—		—		—		4,432		—		—		—
2.35%		—		—		—		—		4,017		—		—		—
2.4%		—		—		—		—		599		—		—		—
2.45%		—		—		—		—		1,528		—		—		—
2.5%		—		—		—		—		731		—		—		—
2.55%		—		—		—		—		670		—		—		—
2.6%		—		—		—		—		—		—		—		—
2.65%		—		—		—		—		181		—		—		—
2.7%		—		—		—		—		384		—		—		—
2.75%		—		—		—		—		—		—		—		—
2.8%		—		—		—		—		—		—		—		—
2.85%		—		—		—		—		—		—		—		—
2.9%		—		—		—		—		—		—		—		—
2.95%		—		—		—		—		—		—		—		—
3%		—		—		—		—		—		—		—		—
3.05%		—		—		—		—		—		—		—		—
3.1%		—		—		—		—		—		—		—		—
3.15%		—		—		—		—		—		—		—		—
3.2%		—		—		—		—		—		—		—		—
3.25%		—		—		—		—		—		—		—		—
3.3%		—		—		—		—		—		—		—		—
3.4%		—		—		—		—		—		—		—		—
	$	50,854	$	7,414	$	394	$	2,579	$	404,075	$	68	$	2,785	$	655

(3) Related Party Transactions

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

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the 9 month period ended and year ended December 31,2011, total transfers to the Account from the fixed account were $807,476,098 and $1,259,932,807, respectively, and total transfers from the Account to the fixed account were $218,356,324 and $267,916,712, 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 $7,701,907 and $15,728,316 to the Account in the form of bonus credits to the contract owner accounts for the 9 month period ended and year ended December 31,2011, 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 $11,449,831 and $23,803,282 to the Account in the form of additional premium to contract owner accounts for the 9 month period ended and year ended December 31,2011, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

For Purchase Payment Credits, the Company contributed $2,506,493 and $5,392,901 to the Account in the form of additional credit to the contract owner accounts for the 9 month period ended and year ended December 31,2011, 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.

(4) Fair Value Measurement

FASB ASC 820, Fair Value Measurements and Disclosures,, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Account categorizes financial assets recorded at fair value as follows:

• Level 1 - Unadjusted quoted prices accessible in active markets and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

• Level 2 - Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means.

• Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Account recognizes transfers between fair value hierarchy levels at the reporting period end. There were no transfers between Level 1 and 2 as of September 30, 2012.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

The following table summarizes assets measured at fair value on a recurring basis as of September 30, 2012:

	Level 1		Level 2		Level 3		Total
Separate Account Investments	$	33,578,504,966	$	0	$	0	$	33,578,504,966

The cost of purchases and proceeds from sales of investments of the 9 month period ended September 30, 2012 were as follows:

	Purchases of Investments		Sales of Investments
MidCap Growth Portfolio - Class S Shares (ALMCS)	$	90,834	$	54,043
AllBerVPS DynmcAsstAlloc B (ALVDAB)		1,064,644		6,090
Growth Fund - Class 1 (AFGF)		33,291		492,170
High-Income Bond Fund - Class 1 (AFHY)		3,301,399		4,350,101
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)		35,206		133,554
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)		20,910,433		8,466,946
Money Market Portfolio(TM) (CHSMM)		7,238,169		8,856,454
Stock Index Fund, Inc. - Initial Shares (DSIF)		14,958,721		26,226,699
Stock Index Fund, Inc. - Service Shares (DSIFS)		21,680,325		16,236,267
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)		695,681		4,480,299
GdmnScsVIT GlblMkt Nav Svc (GVGMNS)		129,364		9,278
VA International Equity Fund (HVIE)		2,912,309		447,584
VA Situs Fund (HVSIT)		7,068,734		3,586,037
Invsco VI MdCapCorEqSer II (IVMCC2)		912,555		5,892
Invsco VK VI MdCapGrSer II (IVKMG2)		24,693,415		2,074,348
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)		3,602,782		539,214
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)		2,288,219		1,530,524
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)		19,265,593		14,753,621
Janus Aspen Series - Global Technology Portfolio - Service II Shares (JAGTS2)		4,910,265		17,922,204
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)		17,805,260		2,259,454
Janus Aspen Series - Overseas Portfolio - Service II Shares (JAIGS2)		2,568,373		96,480,226
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)		101,298,286		11,680,259
Investors Growth Stock Series - Service Class (MIGSC)		650,315		2,113,116
New Discovery Series - Service Class (MNDSC)		1,237,812		20,540
Value Series - Service Class (MVFSC)		14,337,861		45,413,913
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)		22,095,227		2,450,154
Core Plus Fixed Income Portfolio - Class I (MSVFI)		314,397		499,663
Core Plus Fixed Income Portfolio - Class II (MSVF2)		1,460,431		2,850,067
Emerging Markets Debt Portfolio - Class I (MSEM)		100,211		573,261
Emerging Markets Debt Portfolio - Class II (MSEMB)		28,079		120,762
Global Real Estate Portfolio - Class II (VKVGR2)		25,330		193
U.S. Real Estate Portfolio - Class I (MSVRE)		322		7,437
U.S. Real Estate Portfolio - Class II (MSVREB)		32,161		32,270
Managed Allocation Fund - Moderate Growth II (VFMG2)		21,461		3,392,795
American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)		2,223,994		7,950,621
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)		8,002,976		19,959,594
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)		373,181,136		27,654,411
American Funds NVIT Bond Fund - Class II (GVABD2)		164,846,905		19,201,333
American Funds NVIT Global Growth Fund - Class II (GVAGG2)		11,269,434		9,626,253
American Funds NVIT Growth Fund - Class II (GVAGR2)		12,089,470		18,862,216
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)		114,922,674		19,293,100
Federated NVIT High Income Bond Fund - Class I (HIBF)		39,727		1,312,390
Federated NVIT High Income Bond Fund - Class III (HIBF3)		39,393,421		43,100,186
NVIT Emerging Markets Fund - Class I (GEM)		—		130,570
NVIT Emerging Markets Fund - Class II (GEM2)		—		305,304
NVIT Emerging Markets Fund - Class III (GEM3)		1,558,954		5,039,272
NVIT Emerging Markets Fund - Class VI (GEM6)		8,484,706		5,223,138
NVIT International Equity Fund - Class I (GIG)		—		383
NVIT International Equity Fund - Class III (GIG3)		98,264		3,370,728
Gartmore NVIT International Equity Fund - Class VI (NVIE6)		1,575,469		3,196,806
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)		5,335,423		10,385,634
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)		4,414,270		5,461,882
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)		431,955		400,004
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)		5,142,390		36,347,043
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)		3,486,341		1,831,273
NVIT Cardinal Balanced Fund - Class II (NVCRB2)		163,192,812		14,566,854
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)		235,934,261		23,366,345
NVIT Cardinal Conservative Fund - Class II (NVCCN2)		142,339,256		58,262,305
NVIT Cardinal Moderate Fund - Class II (NVCMD2)		196,981,174		23,265,725
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)		17,559,111		19,105,003
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)		105,908,852		6,400,300
NVIT Core Bond Fund - Class I (NVCBD1)		1,426,178		1,120,683
NVIT Core Bond Fund - Class II (NVCBD2)		14,474,882		27,433,086
NVIT Core Plus Bond Fund - Class II (NVLCP2)		10,662,918		6,287,726
NVIT Fund - Class I (TRF)		261,110		15,446,605
NVIT Fund - Class II (TRF2)		2,665,912		32,390,031
NVIT Government Bond Fund - Class I (GBF)		65,150,376		87,861,733
American Century NVIT Growth Fund - Class I (CAF)		815,763		3,880,249
American Century NVIT Growth Fund -Class II (CAF2)		11,585,358		1,794,723
NVIT International Index Fund - Class VIII (GVIX8)		2,396,050		4,612,290
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)		374,079		58,772,051
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)		141,805,721		3,789,259
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)		192,516,123		23,639,351
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)		112,992,275		27,098,057
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)		29,000,931		132,647,061
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)		—		162,706,092
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)		35,469,781		50,476,257
NVIT Mid Cap Index Fund - Class I (MCIF)		10,502,976		12,299,823
NVIT Money Market Fund - Class I (SAM)		170,525,497		165,864,270
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)		47,860		3,936,170
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)		3,431,331		23,262,975
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)		—		111,323
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)		541,734		1,488,717
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)		6,956,976		6,056,215
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)		1,387,590		2,642,184
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)		7,508,052		24,534,085
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)		162,650		765,997
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)		6,328,431		4,739,452
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)		16,997,946		20,835,290
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)		15,291,332		25,604,679
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)		25,860,719		37,962,830
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)		865,506		2,032,821
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)		3,883,356		8,030,863
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)		1,569,238		5,164,138
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)		1,584,325		4,813,485
NVIT Multi-Manager Small Company Fund - Class I (SCF)		108,464		8,425,401
NVIT Multi-Manager Small Company Fund - Class II (SCF2)		1,352,552		5,352,318
NVIT Multi-Sector Bond Fund - Class I (MSBF)		28,710,193		16,522,628
NVIT Short Term Bond Fund - Class II (NVSTB2)		15,154,698		11,191,908
NVIT Large Cap Growth Fund - Class I (NVOLG1)		648,177		45,381,831
NVIT Large Cap Growth Fund - Class II (NVOLG2)		3,511,166		36,169,582
Templeton NVIT International Value Fund - Class III (NVTIV3)		15,113,376		17,958,136
Van Kampen NVIT Comstock Value Fund - Class II (EIF2)		3,167,753		15,963,551
NVIT Real Estate Fund - Class I (NVRE1)		9,204,640		8,513,194
NVIT Real Estate Fund - Class II (NVRE2)		18,575,229		10,305,147
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)		56,703		2,450
VPS Growth and Income Portfolio - Class B (ALVGIB)		162,277		1,240,980
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)		9,080,324		9,254,405
VP Balanced Fund - Class I (ACVB)		1,913,304		3,303,695
VP Capital Appreciation Fund - Class I (ACVCA)		7,199		29,399
VP Income & Growth Fund - Class I (ACVIG)		649,004		1,852,441
VP Income & Growth Fund - Class II (ACVIG2)		163,740		882,911
VP Inflation Protection Fund - Class II (ACVIP2)		41,628,408		20,548,581
VP International Fund - Class I (ACVI)		560		5,791
VP International Fund - Class III (ACVI3)		1		71
VP International Fund - Class IV (ACVI4)		—		—
VP Mid Cap Value Fund - Class I (ACVMV1)		1,633,012		1,557,149
VP Mid Cap Value Fund - Class II (ACVMV2)		11,769,058		6,027,850
VP Ultra(R) Fund - Class I (ACVU1)		—		—
VP Ultra(R) Fund - Class II (ACVU2)		—		5,760

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

VP Value Fund - Class I (ACVV)		—		—
VP Value Fund - Class II (ACVV2)		70,128		71,182
VP Vista(SM) Fund - Class I (ACVVS1)		—		1,121
VP Vista(SM) Fund - Class II (ACVVS2)		—		—
Small Cap Stock Index Portfolio - Service Shares (DVSCS)		9,043,524		12,220,295
Appreciation Portfolio - Initial Shares (DCAP)		6,311,839		4,110,043
Appreciation Portfolio - Service Shares (DCAPS)		27,446,283		9,586,115
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)		139,320		780,190
Growth and Income Portfolio - Initial Shares (DGI)		399,163		1,668,051
Capital Appreciation Fund II - Service Shares (FCA2S)		100,133		358,349
Quality Bond Fund II - Primary Shares (FQB)		1,159,624		1,442,742
Quality Bond Fund II - Service Shares (FQBS)		2,527,886		6,715,954
Contrafund Portfolio - Service Class 2 (FC2)		139,180		139,202
Equity-Income Portfolio - Initial Class (FEIP)		9,178,084		38,628,824
Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)		313,133		2,080,960
High Income Portfolio - Initial Class (FHIP)		43,157		6,812,389
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)		112,797		15,909,847
VIP Fund - Contrafund Portfolio - Initial Class (FCP)		14,512		14,562
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)		6,802,497		14,822,913
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)		12,230,556		14,842,607
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)		754,294		1,068,038
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)		18,410,048		4,303,899
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)		746,740		1,307,446
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)		43,952,774		6,844,282
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)		1,009,529		731,796
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)		3,862,348		2,853,822
VIP Fund - Growth Portfolio - Initial Class (FGP)		81,015		41,509,987
VIP Fund - Growth Portfolio - Service Class 2 (FG2)		12,460,597		15,313,186
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)		7,805,752		6,708,791
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)		2,125,363		4,209,658
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)		45,437,723		55,113,379
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)		889,594		5,147,227
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)		8,361,776		22,967,429
VIP Fund - Overseas Portfolio - Initial Class (FOP)		19,520		6,103,846
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)		325,426		2,796,506
VIP Fund - Overseas Portfolio - Service Class 2 (FO2)		—		410,491
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)		6,385,301		5,859,714
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)		658,916		1,171,022
Franklin Income Securities Fund - Class 2 (FTVIS2)		20,444,884		8,569,047
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)		1,622,484		10,246,922
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)		6,545,657		31,804,606
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)		3,210,432		3,945,199
Templeton Foreign Securities Fund - Class 2 (TIF2)		98,990		528,366
Templeton Foreign Securities Fund - Class 3 (TIF3)		4,155,911		8,413,446
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)		14,063,875		7,756,737
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)		4,865,221		1,491,773
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)		13,152,041		28,020,516
Growth Portfolio - I Class Shares (AMTG)		940		2,029
International Portfolio - S Class Shares (AMINS)		14,648		10,187
Partners Portfolio - I Class Shares (AMTP)		4,617		6,624
Regency Portfolio - S Class Shares (AMRS)		34,800		34,800
Small-Cap Growth Portfolio - S Class Shares (AMFAS)		472,040		1,477,680
Socially Responsive Portfolio - I Class Shares (AMSRS)		235,441		4,652,985
Balanced Fund/VA - Non-Service Shares (OVMS)		712,591		6,336,849
Core Bond Fund/VA - Non-Service Shares (OVB)		2,532,036		5,608,483
Global Securities Fund/VA - Class 3 (OVGS3)		1,669,614		6,733,644
Global Securities Fund/VA - Class 4 (OVGS4)		3,907,673		9,224,586
Global Securities Fund/VA - Non-Service Shares (OVGS)		2,228,927		12,973,621
Global Securities Fund/VA - Service Class (OVGSS)		158,233		1,085,524
High Income Fund/VA - Class 3 (OVHI3)		314,673		186,937
High Income Fund/VA - Class 4 (OVHI4)		1,994,492		2,775,051
High Income Fund/VA - Non-Service Shares (OVHI)		1,835		6,295
High Income Fund/VA - Service Class (OVHIS)		233,148		384,954
Main Street Fund(R)/VA - Non-Service Shares (OVGI)		1,725,782		2,759,134
Main Street Fund(R)/VA - Service Class (OVGIS)		7,882,607		39,967,321
Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)		909,699		1,054,465
Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)		4,862,089		6,528,536
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)		573,076		2,086,887
All Asset Portfolio - Advisor Class (PMVAAD)		7,597,456		4,713
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)		3,560,578		3,517,896
Low Duration Portfolio - Advisor Class (PMVLAD)		64,524,337		21,089,235
Total Return Portfolio - Advisor Class (PMVTRD)		87,378,886		2,912,492
Putnam VT Growth and Income Fund - IB Shares (PVGIB)		350,680		544,231
Putnam VT International Equity Fund - IB Shares (PVTIGB)		8,144		54,900
Putnam VT Voyager Fund - IB Shares (PVTVB)		205,775		1,249,382
Capital Growth Portfolio - Class II (ACEG2)		6,168,705		469,805
V.I. Basic Value Fund - Series II (AVBV2)		—		4,632
V.I. Capital Appreciation Fund - Series II (AVCA2)		309,263		6,878,703
V.I. Capital Development Fund - Series II (AVCD2)		437,070		26,287,599
Diversified Stock Fund Class A Shares (VYDS)		2,031		11,308
Blue Chip Growth Portfolio - II (TRBCG2)		43,208		41,507
Equity Income Portfolio - II (TREI2)		—		1
Health Sciences Portfolio - II (TRHS2)		24,574,307		6,186,934
Limited-Term Bond Portfolio - II (TRLT2)		—		—
VanEckVIPGlbHrdAsstSvc (VWHAS)		10,655,692		521,859
VIP Trust - Global Bond Fund: Class R1 (VWBFR)		287,542		6,048,171
VIP Trust - Global Bond Fund: Initial Class (VWBF)		5,951,896		1,857,406
VIP Trust - Emerging Markets Fund: Class R1 (VWEMR)		881,154		14,495,933
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)		14,146,075		3,027,990
VIP Trust - Global Hard Assets Fund: Class R1 (VWHAR)		8,018,941		61,325,051
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)		61,590,413		12,855,318
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)		14,651,436		10,462,267
Ivy Fund Variable Insurance Portfolios, Inc. - High Income (WRHIP)		14,400,071		456,689
Ivy Fund Variable Insurance Portfolios, Inc. - Mid Cap Growth (WRMCG)		3,550,144		43,694
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)		431,169		20,556
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)		6,878,380		97,475
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)		7,512,836		377,818
Ivy Fund Variable Insurance Portfolios, Inc. -Pathfinder Moderately Conservative (WRPMCP) (WRPMCP)		2,527,454		147,858
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)		29		3,468
Advantage VT Opportunity Fund - Class 2 (SVOF)		339		11,562
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)		10,054,881		7,135,470
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)		582		1,224
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)		9,060		2,803
Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)		3,480		9,784
Total	$	3,658,492,256	$	2,579,734,661

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS September 30, 2012 (Unaudited)

(5) Financial Highlights

The Company offers several variable annuity products through the Account that have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit fair values and total returns. The following tabular presentation is a summary of units, unit fair values 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 the 9 month period ended September 30, 2012. The information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate for contracts with units outstanding as of the balance sheet date. The unit fair values and total returns related to these identified contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented.

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
MidCap Growth Portfolio -Class S Shares (ALMCS)
2012	0.95% to 1.05%		35,734	$	13.75 to $13.62	$	488,695		0.00	%	13.20% to 13.11%
AllBerVPS DynmcAsstAlloc B (ALVDAB)
2012	1.15% to 2.55%		108,437		9.97 to 9.91		1,078,449		0.15	%	-0.29% to -0.87%	****
Growth Fund -Class 1 (AFGF)
2012	1.30%		128,672		83.92		10,797,659		0.30	%	14.75%
High-Income Bond Fund - Class 1 (AFHY)
2012	1.30%		17,342		53.06		920,096		0.62	%	9.66%
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)
2012	1.30%		31,036		35.98		1,116,723		0.26	%	1.40%
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)
2012	0.65% to 2.60%		11,103,861		13.66 to 12.77		146,892,249		0.00	%	7.92% to 6.33%
Money Market Portfolio(TM) (CHSMM)
2012	0.65% to 1.55%		1,243,930		9.96 to 10.10		12,825,502		0.01	%	-0.48% to -1.15%
Stock Index Fund, Inc. -Initial Shares (DSIF)
2012	0.80% to 1.40%		6,610,762		28.13 to 32.55		218,296,184		1.40	%	15.58% to 15.06%
Stock Index Fund, Inc. - Service Shares (DSIFS)
2012	0.40% to 2.85%		7,729,855		10.89 to 13.87		130,261,284		1.24	%	15.70% to 13.57%
The Dreyfus Socially Responsible Growth Fund, Inc. -Initial Shares (DSRG)
2012	0.80% to 1.40%		1,478,769		21.85 to 25.72		40,220,620		0.81	%	13.08% to 12.57%
GdmnScsVIT GlblMkt Nav Svc (GVGMNS)
2012	1.30% to 1.75%		12,176		9.97 to 9.95		121,219		0.00	%	-0.34% to -0.52%	****
VA International Equity Fund (HVIE)
2012	0.40% to 2.50%		943,762		9.85 to 9.46		9,104,591		0.00	%	8.23% to 6.52%
VA Situs Fund (HVSIT)
2012	0.40% to 2.60%		1,577,258		12.89 to 12.35		19,888,337		0.00	%	15.55% to 13.64%
Invsco VI MdCapCorEqSer II (IVMCC2)
2012	0.40% to 2.65%		95,291		9.73 to 9.64		922,842		0.00	%	-2.66% to -3.56%	****
Invsco VK VI MdCapGrSer II (IVKMG2)
2012	0.75% to 2.85%		2,259,940		9.72 to 9.63		21,888,835		0.00	%	-2.79% to -3.66%	****
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)
2012	0.80% to 1.40%		600,964		17.54 to 16.67		10,091,535		1.03	%	16.44% to 15.91%
Janus Aspen Series - Balanced Portfolio -Service Shares (JABS)
2012	0.95% to 2.20%		650,234		18.02 to 17.38		11,938,441		1.33	%	11.55% to 10.50%
Janus Aspen Series - Forty Portfolio -Service Shares (JACAS)
2012	0.40% to 2.95%		8,513,606		10.16 to 17.50		141,666,806		0.22	%	23.17% to 20.81%
Janus Aspen Series -Global Technology Portfolio -Service Shares (JAGTS)
2012	0.75% to 2.55%		2,424,886		9.82 to 9.75		17,124,393		0.00	%	16.13% to -2.53%	****
Janus Aspen Series - Overseas Portfolio -Service Shares (JAIGS)
2012	0.75% to 2.80%		4,432,469		9.08 to 22.97		76,620,688		0.69	%	2.41% to -9.19%	****
Investors Growth Stock Series -Service Class (MIGSC)
2012	0.95% to 2.80%		524,197		14.82 to 13.71		8,922,630		0.21	%	14.98% to 13.38%
New Discovery Series - Service Class (MNDSC)
2012	0.40% to 2.55%		119,181		10.27 to 10.18		1,217,742		0.00	%	2.73% to 1.82%	****
Value Series -Service Class (MVFSC)
2012	0.40% to 3.20%		17,494,046		10.65 to 15.12		324,323,128		1.41	%	14.72% to 12.31%
Variable Insurance Trust II - International Value Portfolio -Service Class  (MVIVSC)
2012	0.40% to 2.65%		6,602,415		11.93 to 11.29		76,623,531		1.55	%	12.75% to 10.85%
Core Plus Fixed Income Portfolio - Class I (MSVFI)
2012	0.80% to 1.40%		118,753		12.72 to 12.23		1,459,657		4.56	%	7.87% to 7.38%
Core Plus Fixed Income Portfolio - Class II (MSVF2)
2012	0.95% to 3.05%		1,551,097		13.25 to 10.76		19,218,539		4.33	%	7.60% to 5.90%
Emerging Markets Debt Portfolio - Class I (MSEM)
2012	0.80% to 1.40%		125,693		30.00 to 27.36		3,476,221		2.82	%	13.44% to 12.93%
Emerging Markets Debt Portfolio - Class II (MSEMB)
2012	1.10% to 2.05%		43,002		24.72 to 22.50		1,028,409		2.77	%	13.20% to 12.39%
Global Real Estate Portfolio - Class II (VKVGR2)
2012	1.75% to 1.95%		2,953		9.23 to 9.13		27,180		0.70	%	20.11% to 19.93%
U.S. Real Estate Portfolio - Class II (MSVREB)
2012	1.35%		27		26.85		725		0.55	%	12.24%
American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)
2012	0.80% to 1.40%		3,266,775		15.84 to 15.52		50,835,172		0.15	%	12.81% to 12.31%
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)
2012	0.40% to 3.30%		9,614,608		15.95 to 14.42		147,452,818		0.16	%	12.98% to 10.52%
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
2012	0.40% to 3.25%		330,218,251		15.32 to 10.08		3,723,334,068		1.34	%	13.09% to 10.67%
American Funds NVIT Bond Fund - Class II (GVABD2)
2012	0.40% to 3.30%		103,098,134		11.59 to 10.38		1,195,466,261		2.34	%	4.39% to 2.11%
American Funds NVIT Global Growth Fund - Class II (GVAGG2)
2012	0.40% to 3.30%		11,901,282		10.19 to 10.16		135,736,413		0.90	%	15.52% to 13.00%
American Funds NVIT Growth Fund - Class II (GVAGR2)
2012	0.40% to 3.30%		21,459,314		10.18 to 9.40		226,536,163		0.22	%	14.96% to 12.46%
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)
2012	0.40% to 3.30%		136,035,768		10.28 to 8.33		1,244,341,983		1.10	%	14.65% to 12.16%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
Federated NVIT High Income Bond Fund - Class I (HIBF)
2012	0.95% to 2.15%		335,859	$	17.49 to $17.41	$	6,264,464		0.52	%	10.98% to 9.98%
Federated NVIT High Income Bond Fund - Class III (HIBF3)
2012	0.75% to 2.80%		6,955,681		13.38 to 13.44		103,144,440		0.58	%	11.17% to 9.45%
NVIT Emerging Markets Fund - Class I (GEM)
2012	0.80% to 1.40%		8,736		22.89 to 21.29		187,485		0.00	%	9.19% to 8.69%
NVIT Emerging Markets Fund - Class II (GEM2)
2012	1.15% to 2.25%		34,831		32.23 to 28.94		1,090,849		0.00	%	8.72% to 7.82%
NVIT Emerging Markets Fund - Class III (GEM3)
2012	0.80% to 1.40%		936,405		25.04 to 23.51		22,216,067		0.00	%	9.21% to 8.71%
NVIT Emerging Markets Fund - Class VI (GEM6)
2012	0.75% to 2.80%		2,787,830		6.66 to 16.62		51,009,341		0.00	%	9.08% to 7.39%
NVIT International Equity Fund - Class I (GIG)
2012	0.80% to 1.40%		3,384		12.36 to 11.49		39,418		0.00	%	10.71% to 10.21%
NVIT International Equity Fund - Class III (GIG3)
2012	0.80% to 1.40%		1,341,077		19.55 to 18.35		24,784,288		0.00	%	10.70% to 10.20%
Gartmore NVIT International Equity Fund - Class VI (NVIE6)
2012	0.40% to 2.75%		3,340,904		8.22 to 7.13		25,116,598		0.00	%	10.82% to 8.87%
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)
2012	0.80% to 1.40%		8,270,738		8.81 to 8.57		71,127,355		0.02	%	11.98% to 11.47%
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)
2012	0.40% to 2.75%		2,810,916		8.80 to 7.99		23,698,986		0.03	%	12.14% to 10.16%
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)
2012	0.80% to 1.40%		232,318		10.27 to 10.00		2,333,062		0.00	%	8.80% to 8.31%
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)
2012	0.40% to 3.20%		16,183,006		10.93 to 9.18		159,118,626		0.00	%	9.03% to 6.74%
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
2012	0.75% to 2.60%		2,765,220		15.34 to 8.98		25,980,828		0.44	%	12.43% to 10.86%
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
2012	0.40% to 3.10%		142,016,683		11.79 to 9.92		1,508,783,778		0.28	%	9.01% to 6.79%
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
2012	0.40% to 3.00%		235,895,095		11.50 to 9.52		2,398,605,559		0.34	%	10.93% to 8.76%
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
2012	0.65% to 3.05%		62,388,978		12.45 to 10.40		694,278,521		0.15	%	5.90% to 3.98%
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
2012	0.40% to 3.40%		210,444,600		11.64 to 9.57		2,194,094,121		0.31	%	9.90% to 7.42%
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
2012	0.75% to 3.05%		37,796,003		11.12 to 9.20		370,872,842		0.39	%	11.26% to 9.33%
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
2012	0.40% to 2.95%		63,785,681		11.88 to 10.17		692,243,222		0.25	%	8.04% to 5.97%
NVIT Core Bond Fund - Class I (NVCBD1)
2012	0.80% to 1.40%		260,847		12.69 to 12.35		3,232,064		0.20	%	5.84% to 5.36%
NVIT Core Bond Fund - Class II (NVCBD2)
2012	0.40% to 3.05%		10,073,526		12.97 to 11.34		121,533,161		0.17	%	5.99% to 3.88%
NVIT Core Plus Bond Fund - Class II (NVLCP2)
2012	0.40% to 2.70%		3,574,219		14.15 to 12.51		47,096,687		0.16	%	6.15% to 4.31%
NVIT Fund - Class I (TRF)
2012	0.80% to 1.40%		2,180,665		22.80 to 25.11		123,079,872		0.07	%	11.89% to 11.38%
NVIT Fund - Class II (TRF2)
2012	0.65% to 3.20%		10,433,499		9.32 to 12.00		156,456,549		0.07	%	11.62% to 9.47%
NVIT Government Bond Fund - Class I (GBF)
2012	0.40% to 3.20%		23,403,526		12.50 to 11.22		383,802,722		0.18	%	2.88% to 0.72%
American Century NVIT Growth Fund - Class I (CAF)
2012	0.80% to 1.40%		1,596,796		17.77 to 19.11		33,714,651		0.00	%	15.44% to 14.92%
American Century NVIT Growth Fund - Class II (CAF2)
2012	0.40% to 2.80%		2,138,735		10.56 to 10.21		22,212,579		0.00	%	15.62% to 13.54%
NVIT International Index Fund - Class VIII (GVIX8)
2012	0.65% to 2.75%		2,283,024		7.42 to 7.56		18,678,013		0.07	%	9.48% to 7.75%
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
2012	0.75% to 3.05%		13,531,943		9.84 to 14.57		237,042,206		0.00	%	12.28% to 10.34%
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)
2012	0.40% to 3.05%		50,158,902		13.75 to 12.54		664,288,511		0.00	%	7.79% to 5.65%
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)
2012	0.40% to 3.00%		81,911,886		14.74 to 13.47		1,162,395,501		0.00	%	9.96% to 7.82%
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
2012	0.65% to 2.80%		47,168,419		11.45 to 11.49		622,158,773		0.00	%	4.13% to 2.45%
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
2012	0.40% to 3.15%		159,076,342		11.04 to 13.02		2,473,904,688		0.00	%	8.87% to 6.62%
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
2012	0.65% to 3.05%		71,670,966		10.37 to 14.11		1,225,585,490		0.00	%	10.79% to 8.79%
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
2012	0.40% to 3.05%		54,583,089		11.47 to 12.34		791,304,034		0.00	%	6.76% to 4.64%
NVIT Mid Cap Index Fund - Class I (MCIF)
2012	0.40% to 3.05%		4,877,186		12.49 to 18.33		102,355,920		0.06	%	13.13% to 10.88%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
NVIT Money Market Fund - Class I (SAM)
2012	0.40% to 3.30%		54,421,631	$	10.02 to $ 8.42	$	658,658,373		0.00	%	-0.30% to -2.47%
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)
2012	0.80% to 1.40%		3,694,200		9.31 to 9.06		33,580,247		0.01	%	10.68% to 10.18%
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
2012	0.40% to 3.20%		18,653,031		9.97 to 8.26		165,090,617		0.01	%	10.92% to 8.59%
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)
2012	0.95% to 2.10%		37,077		12.05 to 12.72		494,537		0.00	%	7.27% to 6.34%
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)
2012	0.80% to 1.40%		349,566		14.73 to 13.91		4,897,693		0.00	%	7.51% to 7.02%
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
2012	0.40% to 3.30%		6,079,859		6.73 to 8.14		57,219,492		0.00	%	7.64% to 5.29%
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
2012	0.80% to 1.40%		963,369		10.55 to 10.27		9,932,886		0.00	%	17.27% to 16.74%
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
2012	0.40% to 3.20%		11,242,056		10.71 to 9.37		113,050,673		0.00	%	17.40% to 14.93%
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
2012	0.80% to 1.40%		287,521		11.11 to 10.95		3,154,423		0.00	%	13.71% to 13.20%
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
2012	0.40% to 2.80%		5,378,708		10.19 to 8.62		48,966,891		0.00	%	13.71% to 11.66%
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2012	0.80% to 1.40%		17,173,236		10.77 to 10.49		180,816,141		0.00	%	14.43% to 13.92%
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
2012	0.40% to 3.20%		12,147,345		10.63 to 9.56		124,592,828		0.00	%	14.63% to 12.22%
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
2012	0.40% to 3.20%		23,852,071		11.65 to 10.01		258,148,613		0.11	%	11.83% to 9.47%
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
2012	0.80% to 1.40%		803,528		8.10 to 7.51		6,098,792		0.00	%	16.00% to 15.48%
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)
2012	0.40% to 2.80%		1,273,414		10.15 to 13.04		20,235,136		0.00	%	16.15% to 14.06%
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
2012	0.80% to 1.40%		1,384,344		25.24 to 23.13		32,385,135		0.06	%	15.67% to 15.14%
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)
2012	0.40% to 2.90%		995,145		12.34 to 17.52		22,062,457		0.00	%	15.91% to 13.73%
NVIT Multi-Manager Small Company Fund -Class I (SCF)
2012	0.80% to 1.40%		1,870,654		42.45 to 38.33		72,636,281		0.00	%	12.99% to 12.48%
NVIT Multi-Manager Small Company Fund - Class II (SCF2)
2012	0.40% to 2.95%		2,007,811		11.42 to 17.12		42,861,488		0.00	%	13.14% to 10.97%
NVIT Multi-Sector Bond Fund -Class I (MSBF)
2012	0.40% to 2.95%		10,635,519		12.87 to 12.66		164,180,621		0.71	%	9.75% to 7.65%
NVIT Short Term Bond Fund - Class II (NVSTB2)
2012	0.40% to 3.30%		7,131,847		11.23 to 9.84		75,727,360		0.10	%	2.90% to 0.65%
NVIT Large Cap Growth Fund - Class I (NVOLG1)
2012	0.80% to 1.40%		21,810,344		16.09 to 15.76		344,584,008		0.03	%	18.32% to 17.78%
NVIT Large Cap Growth Fund - Class II (NVOLG2)
2012	0.65% to 2.95%		15,302,706		16.03 to 14.80		237,904,012		0.03	%	18.23% to 16.18%
Templeton NVIT International Value Fund - Class III (NVTIV3)
2012	0.40% to 3.20%		18,840,149		13.25 to 12.02		239,170,447		0.06	%	10.30% to 7.98%
Van Kampen NVIT Comstock Value Fund -Class II (EIF2)
2012	0.65% to 3.20%		7,956,373		10.08 to 13.33		134,042,295		0.03	%	14.72% to 12.52%
NVIT Real Estate Fund - Class I (NVRE1)
2012	0.80% to 1.40%		6,134,614		11.22 to 10.92		67,235,414		0.13	%	12.81% to 12.30%
NVIT Real Estate Fund - Class II (NVRE2)
2012	0.65% to 2.80%		6,852,147		11.15 to 10.13		73,637,681		0.14	%	12.77% to 10.95%
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
2012	0.40%		10,420		10.11		105,299		2.82	%	10.59%
VPS Growth and Income Portfolio - Class B (ALVGIB)
2012	0.95% to 2.30%		380,331		14.39 to 15.68		6,376,933		1.32	%	15.34% to 14.17%
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)
2012	0.40% to 2.80%		2,599,139		11.96 to 18.46		57,562,032		0.29	%	11.93% to 9.92%
VP Balanced Fund -Class I (ACVB)
2012	0.80% to 1.40%		1,303,887		23.98 to 25.27		35,310,651		1.40	%	10.85% to 10.35%
VP Income & Growth Fund -Class I (ACVIG)
2012	0.80% to 1.40%		1,132,043		14.23 to 13.04		14,929,104		1.34	%	14.66% to 14.15%
VP Income & Growth Fund -Class II (ACVIG2)
2012	0.95% to 2.40%		265,994		14.66 to 15.31		4,361,129		1.13	%	14.32% to 13.07%
VP Inflation Protection Fund -Class II (ACVIP2)
2012	0.40% to 3.30%		18,780,111		13.32 to 12.36		276,332,951		1.73	%	6.22% to 3.90%
VP Mid Cap Value Fund -Class I (ACVMV1)
2012	0.80% to 1.40%		552,817		13.54 to 13.02		7,242,105		1.51	%	11.71% to 11.21%
VP Mid Cap Value Fund - Class II (ACVMV2)
2012	0.40% to 3.30%		5,104,493		13.30 to 13.43		77,851,500		1.39	%	12.00% to 9.56%
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
2012	0.40% to 3.20%		3,960,548		12.86 to 18.33		83,897,824		0.46	%	13.01% to 10.64%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
Appreciation Portfolio - Initial Shares (DCAP)
2012	0.80% to 1.40%		2,075,506	$	20.15 to $ 18.37	$	38,612,296		3.10	%	12.61% to 12.10%
Appreciation Portfolio - Service Shares (DCAPS)
2012	0.40% to 2.75%		6,229,787		12.31 to 14.94		110,248,831		2.72	%	12.74% to 10.75%
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)
2012	0.95% to 2.25%		97,447		10.85 to 12.33		1,302,074		0.00	%	15.24% to 14.11%
Growth and Income Portfolio - Initial Shares (DGI)
2012	0.80% to 1.40%		892,621		16.30 to 14.82		13,384,387		0.91	%	16.01% to 15.49%
Capital Appreciation Fund II - Service Shares (FCA2S)
2012	0.95% to 2.40%		96,549		13.14 to 13.56		1,427,776		0.26	%	10.12% to 8.91%
Quality Bond Fund II - Primary Shares (FQB)
2012	0.80% to 1.40%		738,356		16.05 to 15.07		11,206,847		4.07	%	7.68% to 7.19%
Quality Bond Fund II - Service Shares (FQBS)
2012	0.95% to 2.60%		2,887,854		14.28 to 12.19		39,095,573		3.89	%	7.38% to 6.04%
Equity-Income Portfolio - Initial Class (FEIP)
2012	0.80% to 1.40%		7,329,312		26.46 to 31.93		339,869,942		0.00	%	15.65% to 15.13%
Fidelity(R) VIP Fund - Value Strategies Portfolio -Service Class 2 (FVSS2)
2012	1.10% to 2.65%		407,735		22.88 to 19.65		8,993,655		0.00	%	19.28% to 17.89%
High Income Portfolio - Initial Class (FHIP)
2012	0.80% to 1.40%		1,707,813		20.32 to 21.16		52,001,552		0.05	%	10.53% to 10.03%
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
2012	0.80% to 1.40%		4,014,846		24.93 to 23.60		141,803,052		0.00	%	10.14% to 9.64%
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)
2012	0.65% to 2.80%		4,859,567		8.85 to 15.12		79,173,397		0.00	%	6.43% to 4.70%
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)
2012	0.40% to 3.30%		10,641,731		10.22 to 13.19		178,725,138		0.00	%	15.81% to 13.29%
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)
2012	0.80% to 1.40%		446,238		12.63 to 12.15		5,448,763		0.00	%	9.72% to 9.22%
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)
2012	1.10% to 2.60%		10,232,046		13.55 to 12.10		134,331,641		0.00	%	9.41% to 8.18%
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)
2012	0.80% to 1.40%		857,831		12.18 to 11.72		10,115,041		0.00	%	11.03% to 10.53%
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)
2012	1.10% to 2.95%		31,803,186		13.67 to 11.89		422,307,396		0.00	%	10.62% to 9.07%
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)
2012	0.80% to 1.40%		719,313		11.72 to 11.27		8,163,386		0.00	%	12.84% to 12.33%
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)
2012	1.10% to 2.60%		2,166,868		13.54 to 12.09		28,123,031		0.00	%	12.41% to 11.13%
VIP Fund - Growth Portfolio - Initial Class (FGP)
2012	0.80% to 1.40%		5,972,830		23.00 to 29.00		343,209,017		0.00	%	17.27% to 16.74%
VIP Fund - Growth Portfolio - Service Class 2 (FG2)
2012	0.40% to 2.95%		6,040,999		10.04 to 13.70		102,191,253		0.00	%	17.41% to 15.17%
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)
2012	0.80% to 1.40%		1,952,114		13.48 to 13.05		25,570,986		0.05	%	10.57% to 10.07%
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
2012	0.80% to 1.40%		1,896,859		14.92 to 14.09		26,925,737		0.00	%	4.78% to 4.31%
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)
2012	0.40% to 3.20%		29,068,228		13.13 to 11.68		403,328,431		0.00	%	4.92% to 2.71%
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
2012	0.80% to 1.40%		2,036,763		11.92 to 11.46		23,476,996		0.00	%	11.59% to 11.08%
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)
2012	0.40% to 3.30%		9,690,456		10.96 to 21.22		246,475,972		0.00	%	11.79% to 9.36%
VIP Fund - Overseas Portfolio - Initial Class (FOP)
2012	0.80% to 1.40%		2,121,127		19.30 to 18.95		50,206,629		0.00	%	13.26% to 12.75%
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)
2012	0.80% to 1.40%		1,699,337		14.63 to 13.74		23,558,135		0.00	%	13.22% to 12.71%
VIP Fund - Overseas Portfolio - Service Class 2 (FO2)
2012	1.15% to 2.25%		127,507		18.66 to 16.76		2,329,861		0.00	%	12.71% to 11.77%
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)
2012	0.40% to 2.95%		5,110,783		7.59 to 10.63		60,934,909		0.00	%	13.40% to 11.23%
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
2012	0.80% to 1.40%		401,526		16.66 to 15.64		6,334,014		0.00	%	19.60% to 19.06%
Franklin Income Securities Fund - Class 2 (FTVIS2)
2012	0.65% to 2.80%		11,530,604		11.99 to 11.79		147,793,841		6.47	%	9.95% to 8.17%
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)
2012	0.95% to 2.80%		3,115,565		15.80 to 14.72		56,020,279		1.59	%	8.60% to 7.08%
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
2012	0.40% to 3.20%		6,190,636		12.16 to 17.55		136,170,316		0.76	%	8.58% to 6.30%
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)
2012	0.80% to 2.65%		1,663,456		11.40 to 15.00		27,069,732		1.40	%	6.66% to 5.17%
Templeton Foreign Securities Fund - Class 2 (TIF2)
2012	0.95% to 2.25%		169,762		16.67 to 17.84		3,260,196		2.96	%	9.06% to 7.99%
Templeton Foreign Securities Fund - Class 3 (TIF3)
2012	0.80% to 3.30%		5,193,109		10.45 to 11.78		70,787,880		2.98	%	9.22% to 7.16%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)
2012	0.65% to 2.65%		6,663,096	$	15.31 to $16.06	$	116,803,920		6.42	%	10.15% to 8.50%
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
2012	0.75% to 2.65%		2,755,822		10.15 to 9.32		26,976,290		2.71	%	10.91% to 9.33%
Advisers Management Trust - Short Duration Bond Portfolio -I Class Shares (AMTB)
2012	0.40% to 3.05%		14,143,991		10.57 to 9.10		163,734,268		0.00	%	3.95% to 1.88%
Growth Portfolio - I Class Shares (AMTG)
2012	1.30%		5		60.73		304		0.00	%	11.72%
International Portfolio - S Class Shares (AMINS)
2012	1.55% to 2.00%		353		11.68 to 11.29		4,122		0.00	%	12.29% to 11.91%
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
2012	0.80% to 2.80%		266,053		9.38 to 11.77		3,764,475		0.00	%	13.17% to 11.46%
Socially Responsive Portfolio - I Class Shares (AMSRS)
2012	0.80% to 2.65%		1,546,187		14.38 to 14.71		25,422,522		0.00	%	8.41% to 6.90%
Balanced Fund/VA - Non-Service Shares (OVMS)
2012	0.80% to 1.40%		1,502,058		20.26 to 20.90		38,749,754		1.33	%	9.97% to 9.48%
Core Bond Fund/VA - Non-Service Shares (OVB)
2012	0.80% to 1.40%		1,814,646		15.08 to 14.87		34,352,679		4.85	%	8.44% to 7.95%
Global Securities Fund/VA - Class 3 (OVGS3)
2012	0.80% to 1.40%		2,302,994		22.79 to 21.52		49,970,351		2.13	%	12.27% to 11.76%
Global Securities Fund/VA - Class 4 (OVGS4)
2012	0.75% to 2.55%		4,230,931		9.71 to 13.20		61,289,610		1.93	%	12.13% to 10.61%
Global Securities Fund/VA - Non-Service Shares (OVGS)
2012	0.80% to 1.40%		2,508,968		40.52 to 38.03		101,855,913		2.15	%	12.28% to 11.78%
Global Securities Fund/VA - Service Class (OVGSS)
2012	0.95% to 2.25%		321,404		18.21 to 20.65		7,177,950		1.91	%	11.97% to 10.88%
High Income Fund/VA - Class 3 (OVHI3)
2012	0.80% to 1.40%		203,152		3.12 to 3.02		618,079		9.53	%	11.41% to 10.91%
High Income Fund/VA - Class 4 (OVHI4)
2012	0.95% to 2.75%		2,174,450		3.11 to 2.81		6,558,034		8.47	%	11.37% to 9.86%
High Income Fund/VA - Non-Service Shares (OVHI)
2012	0.80% to 1.40%		5,906		3.38 to 3.26		19,421		9.06	%	11.53% to 11.02%
High Income Fund/VA - Service Class (OVHIS)
2012	0.95% to 2.25%		554,225		4.02		2,398,976		9.46	%	11.58% to 10.48%
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
2012	0.80% to 1.40%		1,125,376		11.35 to 10.53		11,972,272		0.99	%	16.66% to 16.13%
Main Street Fund(R)/VA - Service Class (OVGIS)
2012	0.40% to 3.20%		13,262,467		10.89 to 13.18		217,678,083		0.64	%	16.80% to 14.34%
Main Street Small- & Mid-Cap Fund(R)/VA -Non-Service Shares (OVSC)
2012	0.80% to 1.40%		406,460		11.10 to 10.68		4,365,557		0.57	%	13.21% to 12.70%
Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)
2012	0.40% to 3.30%		2,478,362		12.10 to 17.28		54,755,880		0.33	%	13.26% to 10.79%
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
2012	0.80% to 1.40%		1,666,773		6.73 to 6.24		10,523,086		0.00	%	18.27% to 17.73%
All Asset Portfolio - Advisor Class (PMVAAD)
2012	0.65% to 2.55%		748,645		10.43 to 10.35		7,777,818		2.37	%	4.29% to 3.47%	****
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
2012	0.75% to 2.55%		1,774,398		13.66 to 12.83		23,628,517		4.70	%	7.14% to 5.69%
Low Duration Portfolio - Advisor Class (PMVLAD)
2012	0.40% to 3.20%		26,938,789		12.19 to 11.06		315,355,553		1.33	%	4.94% to 2.73%
Total Return Portfolio - Advisor Class (PMVTRD)
2012	0.40% to 2.80%		14,630,046		10.89 to 10.52		156,789,101		1.83	%	8.22% to 6.27%
Putnam VT Growth and Income Fund - IB Shares (PVGIB)
2012	1.05% to 2.35%		195,832		13.03 to 12.66		2,680,350		1.79	%	14.38% to 13.26%
Putnam VT International Equity Fund - IB Shares (PVTIGB)
2012	1.15% to 2.10%		24,740		15.07 to 13.76		360,946		2.21	%	12.97% to 12.16%
Putnam VT Voyager Fund - IB Shares (PVTVB)
2012	0.95% to 2.35%		149,383		14.20 to 13.62		2,204,960		0.36	%	12.82% to 11.63%
Capital Growth Portfolio - Class II (ACEG2)
2012	0.80% to 2.55%		571,420		9.82 to 9.75		5,592,740		0.00	%	-1.81% to -2.54%	****
Diversified Stock Fund Class A Shares (VYDS)
2012	1.15% to 1.55%		26,863		14.61 to 14.08		388,389		0.55	%	14.01% to 13.66%
Health Sciences Portfolio - II (TRHS2)
2012	0.65% to 2.80%		3,759,743		15.55 to 14.75		57,254,342		0.00	%	33.87% to 31.70%
VanEckVIPGlbHrdAsstSvc (VWHAS)
2012	0.75% to 2.40%		1,039,504		9.71 to 9.64		10,065,633		1.13	%	-2.88% to -3.55%	****
VIP Trust - Global Bond Fund: Initial Class (VWBF)
2012	0.80% to 1.40%		596,653		21.86 to 22.40		15,655,460		1.77	%	3.95% to 3.48%
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
2012	0.80% to 1.40%		1,300,970		23.48 to 21.34		28,114,208		0.00	%	16.89% to 16.37%
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
2012	0.75% to 2.80%		3,199,239		9.80 to 9.72		69,582,228		0.80	%	-1.99% to -2.83%	****
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)
2012	0.65% to 2.80%		8,432,507		13.40 to 12.44		109,417,844		1.16	%	12.99% to 11.16%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II & (NOTES TO FINANCIAL STATEMENTS) September, 2012 (Unaudited)

	Contract Expense Rate*	Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**			Total Return***	Inception Date****
Ivy Fund Variable Insurance Portfolios, Inc. - High Income (WRHIP)
2012	0.75% to 2.80%		1,362,021	$	10.50 to $10.41	$	14,239,305		0.10	%	4.95% to 4.06%	****
Ivy Fund Variable Insurance Portfolios, Inc. - Mid Cap Growth (WRMCG)
2012	0.40% to 2.80%		371,698		9.84 to 9.74		3,639,276		0.00	%	-1.62% to -2.60%	****
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)
2012	0.40%		124,774		11.59		1,446,389		0.94	%	6.32%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)
2012	0.40%		983,890		11.93		11,740,616		0.92	%	8.23%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)
2012	0.40%		1,792,590		12.07		21,641,642		0.79	%	9.18%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Conservative (WRPMCP)
2012	0.40%		346,804		11.81		4,095,684		0.84	%	7.41%
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
2012	1.30%		74		47.93		3,547		0.00	%	15.71%
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)
2012	0.40% to 2.70%		2,128,714		17.81 to 15.63		36,047,229		0.00	%	12.74% to 10.79%
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)
2012	1.10%		882		10.08		8,887		0.85	%	15.46%
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)
2012	1.15% to 1.25%		21,348		14.49 to 14.38		307,145		1.16	%	4.70% to 4.62%
Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)
2012	1.15% to 2.20%		3,674		14.08 to 13.76		51,231		0.00	%	19.50% to 18.55%
2012	Reserves for annuity contracts in payout phase:					$	8,467,644
2012	Contract owners equity:					$	33,576,957,320

* This represents the range of annual contract expense rates of the variable account at the period end indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owners’ accounts through the redemption of units.

** This represents the ratio of dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contract owner accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

*** This represents the range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit values for expenses assessed. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) exists. In such cases, the total return presented is representative of all units issued and outstanding at period end.

**** Subaccounts denoted indicate the underlying mutual fund option was initially added and funded during the period presented.

Report of Independent Registered Public Accounting Firm

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

Contract Owners of Nationwide Variable Account-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, 2011, and the related statements of operations for the period then ended, the statements of changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Accounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the 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, 2011, 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, 2011, the results of their operations for the period then ended, the changes in contract owners’ equity for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 13, 2012

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Assets:
Investments at fair value:
MidCap Growth Portfolio - Class S Shares (ALMCS)
	34,853 shares (cost $482,425)	$	393,142
Growth Fund - Class 1 (AFGF)
	187,513 shares (cost $9,596,803)		9,763,810
High - Income Bond Fund - Class 1 (AFHY)
	171,876 shares (cost $1,905,553)		1,811,578
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)
	94,114 shares (cost $1,119,589)		1,223,488
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)
	9,312,504 shares (cost $129,633,823)		123,670,050
Money Market Portfolio(TM) (CHSMM)
	14,443,733 shares (cost $14,443,733)		14,443,733
Stock Index Fund, Inc. - Initial Shares (DSIF)
	7,156,680 shares (cost $190,351,187)		210,978,938
Stock Index Fund, Inc. - Service Shares (DSIFS)
	3,863,630 shares (cost $111,976,055)		114,015,735
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
	1,307,730 shares (cost $28,294,592)		39,114,216
VA International Equity Fund (HVIE)
	478,460 shares (cost $6,568,669)		6,042,947
VA Situs Fund (HVSIT)
	934,455 shares (cost $13,943,697)		13,876,660
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)
	853,407 shares (cost $4,401,478)		5,854,375
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
	390,826 shares (cost $10,936,253)		10,841,508
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
	3,400,735 shares (cost $111,024,149)		111,238,027
Janus Aspen Series - Global Technology Portfolio - Service II Shares (JAGTS2)
	2,070,628 shares (cost $12,197,828)		10,932,918
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
	339,615 shares (cost $1,195,423)		1,755,809
Janus Aspen Series - Overseas Portfolio - Service II Shares (JAIGS2)
	2,209,893 shares (cost $91,556,135)		83,180,366
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
	137,347 shares (cost $4,785,621)		5,139,523
Investors Growth Stock Series - Service Class (MIGSC)
	878,764 shares (cost $8,338,232)		9,464,286
Value Series - Service Class (MVFSC)
	25,295,325 shares (cost $254,554,294)		317,203,379
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)
	3,336,299 shares (cost $50,778,575)		50,011,124
Core Plus Fixed Income Portfolio - Class I (MSVFI)
	156,268 shares (cost $1,542,164)		1,592,367
Core Plus Fixed Income Portfolio - Class II (MSVF2)
	1,955,952 shares (cost $18,617,682)		19,892,027
Emerging Markets Debt Portfolio - Class I (MSEM)
	430,765 shares (cost $3,361,757)		3,579,658
Emerging Markets Debt Portfolio - Class II (MSEMB)
	122,960 shares (cost $958,075)		1,015,654
U.S. Real Estate Portfolio - Class I (MSVRE)
	2,927 shares (cost $39,290)		39,718
U.S. Real Estate Portfolio - Class II (MSVREB)
	344 shares (cost $3,800)		4,644

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Managed Allocation Fund - Moderate Growth II (VFMG2)
	375,012 shares (cost $3,661,104)	3,311,355
American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)
	3,724,349 shares (cost $51,986,183)	52,140,887
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)
	10,554,485 shares (cost $146,715,026)	147,340,604
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
	174,209,898 shares (cost $2,871,450,268)	3,003,378,637
American Funds NVIT Bond Fund - Class II (GVABD2)
	89,644,250 shares (cost $964,572,407)	1,024,633,772
American Funds NVIT Global Growth Fund - Class II (GVAGG2)
	5,939,430 shares (cost $123,503,456)	116,531,616
American Funds NVIT Growth Fund - Class II (GVAGR2)
	3,934,612 shares (cost $214,313,045)	203,065,311
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)
	28,159,702 shares (cost $933,765,742)	1,005,301,344
Federated NVIT High Income Bond Fund - Class I (HIBF)
	1,045,728 shares (cost $7,348,886)	6,839,064
Federated NVIT High Income Bond Fund - Class III (HIBF3)
	14,885,503 shares (cost $99,632,126)	97,202,335
NVIT Emerging Markets Fund - Class I (GEM)
	29,275 shares (cost $376,226)	297,434
NVIT Emerging Markets Fund - Class II (GEM2)
	126,738 shares (cost $1,665,262)	1,272,453
NVIT Emerging Markets Fund - Class III (GEM3)
	2,314,856 shares (cost $26,134,403)	23,472,640
NVIT Emerging Markets Fund - Class VI (GEM6)
	4,341,125 shares (cost $45,469,068)	43,888,777
NVIT International Equity Fund - Class I (GIG)
	4,469 shares (cost $38,804)	35,748
NVIT International Equity Fund - Class III (GIG3)
	3,167,980 shares (cost $23,320,545)	25,375,519
Gartmore NVIT International Equity Fund - Class VI (NVIE6)
	3,023,864 shares (cost $24,055,887)	24,130,432
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)
	9,332,444 shares (cost $72,492,841)	72,699,742
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)
	3,056,371 shares (cost $26,581,288)	23,656,310
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)
	212,144 shares (cost $2,301,156)	2,108,713
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)
	17,601,320 shares (cost $147,401,334)	174,957,116
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
	2,785,654 shares (cost $24,326,878)	22,508,087
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
	126,372,736 shares (cost $1,214,237,101)	1,259,936,177
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
	209,651,134 shares (cost $1,954,446,945)	1,993,782,284
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
	56,614,880 shares (cost $576,334,194)	581,434,818
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
	191,123,392 shares (cost $1,814,440,535)	1,863,453,069
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
	37,413,854 shares (cost $313,701,953)	343,085,038
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
	54,845,619 shares (cost $539,918,688)	556,683,034
NVIT Core Bond Fund - Class I (NVCBD1)
	253,752 shares (cost $2,754,936)	2,763,357

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

NVIT Core Bond Fund - Class II (NVCBD2)
	11,746,036 shares (cost $121,508,613)	127,561,954
NVIT Core Plus Bond Fund - Class II (NVLCP2)
	3,554,919 shares (cost $39,951,224)	40,774,922
NVIT Fund - Class I (TRF)
	13,697,975 shares (cost $134,890,338)	123,966,676
NVIT Fund - Class II (TRF2)
	18,571,748 shares (cost $145,475,988)	167,517,168
NVIT Government Bond Fund - Class I (GBF)
	34,130,843 shares (cost $402,023,235)	407,180,959
American Century NVIT Growth Fund - Class I (CAF)
	2,312,149 shares (cost $20,859,213)	31,815,174
American Century NVIT Growth Fund -Class II (CAF2)
	1,130,720 shares (cost $10,127,570)	10,266,934
NVIT International Index Fund - Class VIII (GVIX8)
	2,631,299 shares (cost $20,553,000)	19,050,605
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
	30,204,837 shares (cost $323,587,995)	264,292,320
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)
	38,150,552 shares (cost $479,308,295)	489,090,077
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)
	65,578,795 shares (cost $898,051,774)	906,298,942
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
	50,840,750 shares (cost $505,324,103)	518,575,649
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
	228,731,278 shares (cost $2,530,964,378)	2,362,794,104
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
	125,696,535 shares (cost $1,447,007,029)	1,253,194,457
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
	72,794,574 shares (cost $766,011,788)	756,335,625
NVIT Mid Cap Index Fund - Class I (MCIF)
	5,607,732 shares (cost $96,554,541)	98,415,691
NVIT Money Market Fund - Class I (SAM)
	654,574,047 shares (cost $654,574,047)	654,574,047
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)
	3,870,152 shares (cost $29,656,823)	33,825,129
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
	19,143,566 shares (cost $156,605,774)	166,931,895
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)
	67,126 shares (cost $932,763)	559,834
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)
	652,440 shares (cost $8,035,815)	5,441,348
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
	6,320,482 shares (cost $58,222,806)	52,396,793
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
	1,046,839 shares (cost $9,545,321)	9,767,008
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
	12,235,035 shares (cost $99,439,927)	113,541,122
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
	410,360 shares (cost $3,631,962)	3,307,498
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
	5,173,771 shares (cost $41,254,264)	41,597,121
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
	17,234,418 shares (cost $127,959,453)	175,618,719
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
	12,687,775 shares (cost $94,801,831)	128,019,648
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
	26,703,581 shares (cost $226,464,945)	265,166,563

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
	409,969 shares (cost $6,205,939)	6,284,822
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)
	1,416,233 shares (cost $22,014,813)	21,201,009
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
	3,151,647 shares (cost $34,548,845)	31,138,271
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)
	2,264,289 shares (cost $17,138,902)	22,008,894
NVIT Multi-Manager Small Company Fund - Class I (SCF)
	4,222,731 shares (cost $83,228,718)	71,659,751
NVIT Multi-Manager Small Company Fund - Class II (SCF2)
	2,508,672 shares (cost $37,914,275)	41,518,528
NVIT Multi-Sector Bond Fund - Class I (MSBF)
	15,958,689 shares (cost $136,230,984)	138,361,835
NVIT Short Term Bond Fund - Class II (NVSTB2)
	6,745,416 shares (cost $69,658,711)	69,545,236
NVIT Large Cap Growth Fund - Class I (NVOLG1)
	22,453,087 shares (cost $339,889,280)	329,835,845
NVIT Large Cap Growth Fund - Class II (NVOLG2)
	15,681,402 shares (cost $236,566,534)	229,732,537
Templeton NVIT International Value Fund - Class III (NVTIV3)
	20,927,488 shares (cost $243,080,641)	222,459,193
Van Kampen NVIT Comstock Value Fund - Class II (EIF2)
	13,212,503 shares (cost $110,093,605)	128,293,402
NVIT Real Estate Fund - Class I (NVRE1)
	7,090,723 shares (cost $48,523,253)	64,241,951
NVIT Real Estate Fund - Class II (NVRE2)
	7,063,920 shares (cost $51,734,223)	63,716,556
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
	4,089 shares (cost $46,169)	44,166
VPS Growth and Income Portfolio - Class B (ALVGIB)
	366,999 shares (cost $7,711,544)	6,554,604
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)
	3,474,322 shares (cost $49,722,539)	53,435,074
VP Balanced Fund - Class I (ACVB)
	5,157,514 shares (cost $33,651,547)	33,575,418
VP Capital Appreciation Fund - Class I (ACVCA)
	6,798 shares (cost $69,409)	89,873
VP Income & Growth Fund - Class I (ACVIG)
	2,319,148 shares (cost $15,434,667)	14,239,571
VP Income & Growth Fund - Class II (ACVIG2)
	730,677 shares (cost $4,928,778)	4,486,355
VP Inflation Protection Fund - Class II (ACVIP2)
	21,187,142 shares (cost $230,194,295)	248,948,917
VP International Fund - Class I (ACVI)
	2,127 shares (cost $18,833)	15,805
VP International Fund - Class III (ACVI3)
	22 shares (cost $165)	164
VP Mid Cap Value Fund - Class I (ACVMV1)
	506,604 shares (cost $6,536,982)	6,839,147
VP Mid Cap Value Fund - Class II (ACVMV2)
	5,083,412 shares (cost $60,722,297)	68,626,060
VP Ultra(R) Fund - Class II (ACVU2)
	535 shares (cost $3,777)	5,012
VP Value Fund - Class II (ACVV2)
	161 shares (cost $911)	933
VP Vista(SM) Fund - Class I (ACVVS1)
	358 shares (cost $4,106)	5,387

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Small Cap Stock Index Portfolio - Service Shares (DVSCS)
	6,583,873 shares (cost $62,690,114)	80,125,736
Appreciation Portfolio - Initial Shares (DCAP)
	870,391 shares (cost $29,908,500)	33,074,851
Appreciation Portfolio - Service Shares (DCAPS)
	2,202,497 shares (cost $75,265,456)	83,122,253
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)
	65,447 shares (cost $1,599,367)	1,694,415
Growth and Income Portfolio - Initial Shares (DGI)
	672,068 shares (cost $13,630,357)	12,742,415
Capital Appreciation Fund II - Service Shares (FCA2S)
	268,388 shares (cost $1,590,265)	1,615,696
Quality Bond Fund II - Primary Shares (FQB)
	985,797 shares (cost $10,552,998)	11,050,783
Quality Bond Fund II - Service Shares (FQBS)
	3,735,329 shares (cost $40,509,490)	41,686,275
Equity-Income Portfolio - Initial Class (FEIP)
	17,526,175 shares (cost $392,128,835)	327,564,217
Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)
	1,027,238 shares (cost $9,041,510)	9,070,511
High Income Portfolio - Initial Class (FHIP)
	9,867,316 shares (cost $55,866,670)	53,184,834
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
	10,351,590 shares (cost $142,534,687)	142,851,946
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)
	4,391,584 shares (cost $88,836,720)	82,210,459
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)
	8,714,521 shares (cost $183,773,506)	160,434,328
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)
	515,939 shares (cost $4,961,239)	5,314,177
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)
	10,627,597 shares (cost $111,173,371)	109,039,146
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)
	942,720 shares (cost $8,938,004)	9,615,744
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)
	33,912,849 shares (cost $351,943,453)	344,893,677
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)
	717,582 shares (cost $6,604,408)	6,953,367
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)
	2,473,581 shares (cost $24,928,161)	23,919,527
VIP Fund - Growth Portfolio - Initial Class (FGP)
	8,902,234 shares (cost $273,560,492)	328,403,406
VIP Fund - Growth Portfolio - Service Class 2 (FG2)
	2,440,963 shares (cost $87,544,618)	89,168,371
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)
	4,104,400 shares (cost $23,292,658)	22,040,628
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
	2,161,097 shares (cost $26,798,734)	27,791,712
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)
	31,036,414 shares (cost $381,160,716)	394,783,184
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
	861,579 shares (cost $23,204,079)	24,925,479
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)
	8,160,751 shares (cost $235,752,806)	233,234,275
VIP Fund - Overseas Portfolio - Initial Class (FOP)
	3,642,699 shares (cost $61,828,885)	49,649,984
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)
	1,687,706 shares (cost $34,048,586)	22,952,799

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

VIP Fund - Overseas Portfolio - Service Class 2 (FO2)
	179,287 shares (cost $3,271,614)	2,423,955
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)
	3,962,337 shares (cost $62,165,980)	53,055,689
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
	653,127 shares (cost $5,053,769)	5,721,390
Franklin Income Securities Fund - Class 2 (FTVIS2)
	9,156,651 shares (cost $141,371,798)	131,123,238
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)
	3,070,976 shares (cost $55,091,965)	60,344,677
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
	9,654,783 shares (cost $105,037,828)	149,938,781
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)
	2,814,747 shares (cost $25,541,987)	26,346,032
Templeton Foreign Securities Fund - Class 2 (TIF2)
	276,655 shares (cost $3,853,088)	3,474,789
Templeton Foreign Securities Fund - Class 3 (TIF3)
	5,631,381 shares (cost $56,879,725)	70,448,575
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)
	5,880,818 shares (cost $104,635,776)	106,736,841
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
	2,854,064 shares (cost $20,990,736)	21,662,342
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)
	15,884,741 shares (cost $186,920,991)	171,396,355
Growth Portfolio - I Class Shares (AMTG)
	686 shares (cost $13,652)	12,743
Partners Portfolio - I Class Shares (AMTP)
	1,713 shares (cost $17,347)	17,117
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
	348,105 shares (cost $4,482,462)	4,222,508
Socially Responsive Portfolio - I Class Shares (AMSRS)
	1,922,397 shares (cost $27,755,726)	27,586,399
Balanced Fund/VA - Non-Service Shares (OVMS)
	3,617,945 shares (cost $55,205,385)	40,882,776
Core Bond Fund/VA - Non-Service Shares (OVB)
	4,584,759 shares (cost $47,183,388)	36,127,903
Global Securities Fund/VA - Class 3 (OVGS3)
	1,806,584 shares (cost $54,392,452)	49,952,054
Global Securities Fund/VA - Class 4 (OVGS4)
	2,225,676 shares (cost $69,218,463)	60,671,921
Global Securities Fund/VA - Non-Service Shares (OVGS)
	3,728,523 shares (cost $92,099,671)	102,385,229
Global Securities Fund/VA - Service Class (OVGSS)
	270,530 shares (cost $7,483,646)	7,361,121
High Income Fund/VA - Class 3 (OVHI3)
	251,160 shares (cost $522,218)	482,228
High Income Fund/VA - Class 4 (OVHI4)
	3,689,111 shares (cost $7,520,932)	7,156,876
High Income Fund/VA - Non-Service Shares (OVHI)
	12,261 shares (cost $69,851)	23,297
High Income Fund/VA - Service Class (OVHIS)
	1,307,095 shares (cost $8,662,794)	2,496,551
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
	542,268 shares (cost $11,402,951)	11,230,377
Main Street Fund(R)/VA - Service Class (OVGIS)
	10,537,899 shares (cost $194,984,863)	216,343,064
Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)
	233,432 shares (cost $3,797,941)	4,008,031

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)
	2,940,377 shares (cost $35,148,147)	50,045,218
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
	216,405 shares (cost $10,409,076)	10,184,010
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
	1,900,149 shares (cost $21,867,061)	22,972,807
Low Duration Portfolio - Advisor Class (PMVLAD)
	25,106,874 shares (cost $260,204,640)	260,609,351
Total Return Portfolio - Advisor Class (PMVTRD)
	5,928,911 shares (cost $66,306,841)	65,336,598
Putnam VT Growth and Income Fund - IB Shares (PVGIB)
	167,311 shares (cost $3,033,729)	2,559,864
Putnam VT International Equity Fund - IB Shares (PVTIGB)
	38,643 shares (cost $593,082)	366,721
Putnam VT Voyager Fund - IB Shares (PVTVB)
	91,764 shares (cost $3,232,600)	2,914,429
V.I. Basic Value Fund - Series II (AVBV2)
	676 shares (cost $3,980)	4,112
V.I. Capital Appreciation Fund - Series II (AVCA2)
	271,107 shares (cost $6,912,105)	5,709,523
V.I. Capital Development Fund - Series II (AVCD2)
	1,889,820 shares (cost $20,596,043)	22,791,233
Diversified Stock Fund Class A Shares (VYDS)
	38,452 shares (cost $293,759)	347,991
Health Sciences Portfolio - II (TRHS2)
	1,689,476 shares (cost $27,621,382)	27,116,090
VIP Trust - Global Bond Fund: Class R1 (VWBFR)
	497,909 shares (cost $5,681,366)	5,830,510
VIP Trust - Global Bond Fund: Initial Class (VWBF)
	975,273 shares (cost $11,182,303)	11,420,452
VIP Trust - Emerging Markets Fund: Class R1 (VWEMR)
	1,096,565 shares (cost $11,483,975)	11,393,305
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
	1,424,002 shares (cost $19,025,489)	14,809,621
VIP Trust - Global Hard Assets Fund: Class R1 (VWHAR)
	1,770,673 shares (cost $58,722,347)	54,501,323
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
	816,191 shares (cost $22,182,022)	25,097,875
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)
	10,291,151 shares (cost $97,927,607)	93,728,714
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)
	194,222 shares (cost $1,009,956)	1,006,691
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)
	923,913 shares (cost $4,737,150)	4,676,387
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)
	2,670,688 shares (cost $14,362,539)	13,606,619
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Conservative (WRPMCP)
	314,198 shares (cost $1,643,296)	1,631,286
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
	1,668 shares (cost $29,259)	35,638
Advantage VT Opportunity Fund - Class 2 (SVOF)
	14,215 shares (cost $201,005)	247,060
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)
	4,016,178 shares (cost $29,459,811)	30,844,249
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)
	998 shares (cost $8,179)	8,303
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)
	27,853 shares (cost $288,682)	293,569

(Continued)

Nationwide Variable Account-II

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)
	2,270 shares (cost $43,073)		51,028
Total Investments		$	29,793,995,282
Accounts Payable-U.S. Real Estate Portfolio - Class I (MSVRE)			4,639
Other Accounts Payable			(96,489)
		$	29,793,903,432
Contract Owners’ Equity:
Accumulation units			29,785,542,132
Contracts in payout (annuitization) period (note 1f)			8,361,300
Total Contract Owners’ Equity (note 5)		$	29,793,903,432

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		Total		ALMCS		AFGF		AFHY		AFGC		MLVGA3		CHSMM		DSIF
Investment Activity:
Reinvested dividends	$		517,674,856		-		91,887		132,348		24,224		2,940,780		1,268		4,147,676
Mortality and expense risk charges (note 2)			(448,629,078)		(5,149)		(139,269)		(17,183)		(15,802)		(1,760,985)		(121,797)		(3,065,446)
Net investment income (loss)			69,045,778		(5,149)		(47,382)		115,165		8,422		1,179,795		(120,529)		1,082,230
Realized gain (loss) on investments			(726,415)		(109,103)		107,972		(14,852)		5,208		749,851		-		9,814,474
Change in unrealized gain (loss) on investments			(953,196,565)		66,458		(602,435)		(38,230)		34,133		(11,963,314)		1		(10,918,941)
Net gain (loss) on investments			(953,922,980)		(42,645)		(494,463)		(53,082)		39,341		(11,213,463)		1		(1,104,467)
Reinvested capital gains			85,173,364		-		-		-		28,110		3,122,639		-		1,562,507
Net increase (decrease) in contract owners’ equity resulting from operations	$		(799,703,838)		(47,794)		(541,845)		62,083		75,873		(6,911,029)		(120,528)		1,540,270
		DSIFS		DSRG		HVIE		HVSIT		JPMMV1		JABS		JACAS		JAGTS2
Investment Activity:
Reinvested dividends	$		1,791,091		390,053		74,345		3,216		81,851		272,842		297,209		-
Mortality and expense risk charges (note 2)			(1,661,213)		(566,478)		(40,989)		(92,729)		(80,363)		(163,593)		(1,788,049)		(173,645)
Net investment income (loss)			129,878		(176,425)		33,356		(89,513)		1,488		109,249		(1,490,840)		(173,645)
Realized gain (loss) on investments			(515,046)		1,091,291		2,752		(8,647)		821,086		191,639		(2,104,706)		2,046,500
Change in unrealized gain (loss) on investments			(50,354)		(981,875)		(532,366)		(86,148)		(774,058)		(843,088)		(5,636,839)		(3,189,059)
Net gain (loss) on investments			(565,400)		109,416		(529,614)		(94,795)		47,028		(651,449)		(7,741,545)		(1,142,559)
Reinvested capital gains			731,611		-		-		-		-		566,308		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		296,089		(67,009)		(496,258)		(184,308)		48,516		24,108		(9,232,385)		(1,316,204)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		JAGTS		JAIGS2		JAIGS		MIGSC		MVFSC		MVIVSC		MSVFI		MSVF2
Investment Activity:
Reinvested dividends	$		-		468,933		28,081		27,532		4,010,336		375,302		60,574		759,703
Mortality and expense risk charges (note 2)			(26,666)		(1,817,057)		(100,420)		(172,928)		(5,464,287)		(493,913)		(22,761)		(356,502)
Net investment income (loss)			(26,666)		(1,348,124)		(72,339)		(145,396)		(1,453,951)		(118,611)		37,813		403,201
Realized gain (loss) on investments			108,743		(4,635,315)		697,687		520,546		12,847,215		346,428		(403)		(12,527)
Change in unrealized gain (loss) on investments			(275,263)		(42,385,904)		(3,494,518)		(460,050)		(17,119,075)		(1,804,417)		30,757		422,448
Net gain (loss) on investments			(166,520)		(47,021,219)		(2,796,831)		60,496		(4,271,860)		(1,457,989)		30,354		409,921
Reinvested capital gains			-		1,249,495		73,862		-		1,274,247		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(193,186)		(47,119,848)		(2,795,308)		(84,900)		(4,451,564)		(1,576,600)		68,167		813,122
		MSEM		MSEMB		VKVGR2		MSVRE		MSVREB		VFMG2		NVAMV1		NVAMV2
Investment Activity:
Reinvested dividends	$		131,841		36,776		163		326		37		61,029		909,815		2,308,995
Mortality and expense risk charges (note 2)			(49,941)		(15,073)		(43)		(572)		(89)		(54,339)		(763,053)		(2,404,806)
Net investment income (loss)			81,900		21,703		120		(246)		(52)		6,690		146,762		(95,811)
Realized gain (loss) on investments			(17,129)		(5,537)		(932)		16,620		1,852		(70,855)		263,334		1,161,400
Change in unrealized gain (loss) on investments			100,551		26,669		-		(13,932)		(1,461)		(196,359)		(891,778)		(3,017,896)
Net gain (loss) on investments			83,422		21,132		(932)		2,688		391		(267,214)		(628,444)		(1,856,496)
Reinvested capital gains			41,069		11,623		-		-		-		-		137,253		380,763
Net increase (decrease) in contract owners’ equity resulting from operations	$		206,391		54,458		(812)		2,442		339		(260,524)		(344,429)		(1,571,544)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		GVAAA2		GVABD2		GVAGG2		GVAGR2		GVAGI2		HIBF		HIBF3		GEM
Investment Activity:
Reinvested dividends	$		31,452,254		19,670,044		1,076,657		530,274		7,984,832		655,182		6,963,511		2,572
Mortality and expense risk charges (note 2)			(40,200,382)		(15,761,877)		(1,798,738)		(3,148,314)		(14,790,005)		(119,739)		(1,332,719)		(5,359)
Net investment income (loss)			(8,748,128)		3,908,167		(722,081)		(2,618,040)		(6,805,173)		535,443		5,630,792		(2,787)
Realized gain (loss) on investments			179,686		(1,256,608)		(1,933,212)		(4,169,992)		(3,749,693)		(418,585)		3,775,393		(39,549)
Change in unrealized gain (loss) on investments			(16,676,602)		33,880,415		(9,782,123)		(5,714,866)		(23,884,988)		72,641		(7,065,820)		(57,044)
Net gain (loss) on investments			(16,496,916)		32,623,807		(11,715,335)		(9,884,858)		(27,634,681)		(345,944)		(3,290,427)		(96,593)
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(25,245,044)		36,531,974		(12,437,416)		(12,502,898)		(34,439,854)		189,499		2,340,365		(99,380)
		GEM2		GEM3		GEM6		GIG		GIG3		NVIE6		NVNMO1		NVNMO2
Investment Activity:
Reinvested dividends	$		7,409		212,076		250,991		520		368,930		277,424		499,109		132,866
Mortality and expense risk charges (note 2)			(24,429)		(415,597)		(839,119)		(508)		(396,126)		(369,558)		(1,178,412)		(392,571)
Net investment income (loss)			(17,020)		(203,521)		(588,128)		12		(27,196)		(92,134)		(679,303)		(259,705)
Realized gain (loss) on investments			(27,864)		(7,675,076)		(9,626,946)		1,071		(367,298)		940,738		1,984,473		(94,216)
Change in unrealized gain (loss) on investments			(377,713)		(1,496)		(3,988,277)		(5,750)		(2,872,659)		(3,620,754)		(13,163,847)		(3,503,958)
Net gain (loss) on investments			(405,577)		(7,676,572)		(13,615,223)		(4,679)		(3,239,957)		(2,680,016)		(11,179,374)		(3,598,174)
Reinvested capital gains			-		-		-		-		-		-		677,844		204,746
Net increase (decrease) in contract owners’ equity resulting from operations		$	(422,597)		(7,880,093)		(14,203,351)		(4,667)		(3,267,153)		(2,772,150)		(11,180,833)		(3,653,133)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		NVNSR1		NVNSR2		NVCRA2		NVCRB2		NVCCA2		NVCCN2		NVCMD2		NVCMA2
Investment Activity:
Reinvested dividends	$		15,237		1,153,618		475,250		26,995,036		38,020,999		11,943,658		37,752,527		8,825,852
Mortality and expense risk charges (note 2)			(28,694)		(3,263,748)		(402,482)		(18,312,191)		(26,436,800)		(7,247,183)		(24,769,718)		(6,090,478)
Net investment income (loss)			(13,457)		(2,110,130)		72,768		8,682,845		11,584,199		4,696,475		12,982,809		2,735,374
Realized gain (loss) on investments			371,873		2,257,917		1,378,893		11,907		(157,807)		4,943,425		(334,802)		(339,662)
Change in unrealized gain (loss) on investments			(540,513)		(6,887,748)		(3,956,192)		(52,411,470)		(121,757,876)		(14,006,408)		(95,093,111)		(29,035,553)
Net gain (loss) on investments			(168,640)		(4,629,831)		(2,577,299)		(52,399,563)		(121,915,683)		(9,062,983)		(95,427,913)		(29,375,215)
Reinvested capital gains			-		-		355,769		7,339,091		10,895,379		2,688,951		11,062,859		3,343,151
Net increase (decrease) in contract owners’ equity resulting from operations	$		(182,097)		(6,739,961)		(2,148,762)		(36,377,627)		(99,436,105)		(1,677,557)		(71,382,245)		(23,296,690)
		NVCMC2		NVCBD1		NVCBD2		NVLCP2		TRF		TRF2		GBF		CAF
Investment Activity:
Reinvested dividends	$		12,216,571		75,163		3,824,745		865,578		1,548,132		1,587,845		12,702,778		201,749
Mortality and expense risk charges (note 2)			(7,308,585)		(30,866)		(2,568,332)		(545,612)		(1,786,256)		(3,147,247)		(6,961,166)		(461,534)
Net investment income (loss)			4,907,986		44,297		1,256,413		319,966		(238,124)		(1,559,402)		5,741,612		(259,785)
Realized gain (loss) on investments			567,042		22,771		2,344,806		351,008		(5,175,956)		(11,738,465)		2,212,745		2,398,610
Change in unrealized gain (loss) on investments			(17,845,617)		40,974		2,615,526		752,471		4,619,978		12,680,009		14,767,389		(2,806,152)
Net gain (loss) on investments			(17,278,575)		63,745		4,960,332		1,103,479		(555,978)		941,544		16,980,134		(407,542)
Reinvested capital gains			2,968,535		-		-		36,533		-		-		1,336,507		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(9,402,054)		108,042		6,216,745		1,459,978		(794,102)		(617,858)		24,058,253		(667,327)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		CAF2		GVIX8		GVIDA		NVDBL2		NVDCA2		GVIDC		GVIDM		GVDMA
Investment Activity:
Reinvested dividends	$		59,011		496,427		5,573,086		8,157,953		14,031,068		10,365,705		51,852,281		28,191,360
Mortality and expense risk charges (note 2)			(39,537)		(285,690)		(5,682,943)		(5,803,488)		(10,205,122)		(6,644,720)		(40,375,591)		(23,438,517)
Net investment income (loss)			19,474		210,737		(109,857)		2,354,465		3,825,946		3,720,985		11,476,690		4,752,843
Realized gain (loss) on investments			(16,121)		(495,803)		(16,491,307)		227,017		1,661,708		(261,080)		280,095		(20,510,261)
Change in unrealized gain (loss) on investments			139,364		(2,856,612)		310,490		(6,890,276)		(29,486,529)		1,117,885		(51,379,389)		(33,685,157)
Net gain (loss) on investments			123,243		(3,352,415)		(16,180,817)		(6,663,259)		(27,824,821)		856,805		(51,099,294)		(54,195,418)
Reinvested capital gains			-		-		-		513,222		677,210		1,557,894		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		142,717		(3,141,678)		(16,290,674)		(3,795,572)		(23,321,665)		6,135,684		(39,622,604)		(49,442,575)
		GVDMC		MCIF		SAM		NVMIG3		NVMIG6		GVDIV2		GVDIV3		GVDIV6
Investment Activity:
Reinvested dividends	$		16,806,515		797,087		375		512,719		1,971,158		10,692		121,841		1,020,426
Mortality and expense risk charges (note 2)			(12,339,572)		(1,491,859)		(9,036,899)		(536,068)		(3,184,076)		(11,307)		(91,023)		(886,984)
Net investment income (loss)			4,466,943		(694,772)		(9,036,524)		(23,349)		(1,212,918)		(615)		30,818		133,442
Realized gain (loss) on investments			(461,714)		560,765		-		1,571,686		100,072		(94,325)		(1,392,741)		(674,146)
Change in unrealized gain (loss) on investments			(1,357,344)		(5,226,560)		-		(5,658,845)		(17,722,290)		(31,310)		204,658		(9,471,630)
Net gain (loss) on investments			(1,819,058)		(4,665,795)		-		(4,087,159)		(17,622,218)		(125,635)		(1,188,083)		(10,145,776)
Reinvested capital gains			-		1,548,165		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		2,647,885		(3,812,402)		(9,036,524)		(4,110,508)		(18,835,136)		(126,250)		(1,157,265)		(10,012,334)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		NVMLG1		NVMLG2		NVMLV1		NVMLV2		NVMMG1		NVMMG2		NVMMV2		SCGF
Investment Activity:
Reinvested dividends	$		743		-		40,424		378,535		-		-		2,334,631		-
Mortality and expense risk charges (note 2)			(146,431)		(2,067,406)		(48,632)		(681,124)		(2,612,586)		(2,292,662)		(4,308,289)		(99,998)
Net investment income (loss)			(145,688)		(2,067,406)		(8,208)		(302,589)		(2,612,586)		(2,292,662)		(1,973,658)		(99,998)
Realized gain (loss) on investments			207,305		6,719,593		(14,831)		878,622		9,549,350		11,160,853		10,282,591		(270,602)
Change in unrealized gain (loss) on investments			(483,600)		(9,689,783)		(368,941)		(5,366,484)		(17,266,389)		(15,004,422)		(18,252,957)		(77,181)
Net gain (loss) on investments			(276,295)		(2,970,190)		(383,772)		(4,487,862)		(7,717,039)		(3,843,569)		(7,970,366)		(347,783)
Reinvested capital gains			-		-		118,443		1,486,602		-		-		1,158,382		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(421,983)		(5,037,596)		(273,537)		(3,303,849)		(10,329,625)		(6,136,231)		(8,785,642)		(447,781)
		SCGF2		SCVF		SCVF2		SCF		SCF2		MSBF		NVSTB2		NVOLG1
Investment Activity:
Reinvested dividends	$		-		158,169		73,889		435,578		210,616		5,766,416		1,184,151		2,525,686
Mortality and expense risk charges (note 2)			(316,989)		(475,175)		(357,190)		(1,085,348)		(655,698)		(2,081,899)		(1,221,290)		(5,028,831)
Net investment income (loss)			(316,989)		(317,006)		(283,301)		(649,770)		(445,082)		3,684,517		(37,139)		(2,503,145)
Realized gain (loss) on investments			443,448		(1,262,311)		118,953		(4,175,167)		(2,066,677)		(2,191,747)		391,112		1,149,225
Change in unrealized gain (loss) on investments			(1,902,744)		(636,292)		(1,454,048)		(666,964)		(480,843)		3,235,626		(603,266)		(11,481,323)
Net gain (loss) on investments			(1,459,296)		(1,898,603)		(1,335,095)		(4,842,131)		(2,547,520)		1,043,879		(212,154)		(10,332,098)
Reinvested capital gains			-		-		-		-		-		-		-		1,308,144
Net increase (decrease) in contract owners’ equity resulting from operations	$		(1,776,285)		(2,215,609)		(1,618,396)		(5,491,901)		(2,992,602)		4,728,396		(249,293)		(11,527,099)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		NVOLG2		NVTIV3		EIF2		NVRE1		NVRE2		ALVBWB		ALVGIB		ALVSVB
Investment Activity:
Reinvested dividends	$		1,100,160		6,576,956		1,444,570		598,435		421,267		-		80,088		121,358
Mortality and expense risk charges (note 2)			(4,143,912)		(3,939,889)		(2,071,572)		(917,258)		(1,028,125)		(91)		(107,216)		(773,063)
Net investment income (loss)			(3,043,752)		2,637,067		(627,002)		(318,823)		(606,858)		(91)		(27,128)		(651,705)
Realized gain (loss) on investments			847,802		1,372,048		(416,831)		3,918,498		5,332,786		(41)		(715,629)		2,932,486
Change in unrealized gain (loss) on investments			(7,963,767)		(34,380,208)		(3,344,505)		(734,046)		(2,016,752)		(2,004)		1,112,476		(6,741,553)
Net gain (loss) on investments			(7,115,965)		(33,008,160)		(3,761,336)		3,184,452		3,316,034		(2,045)		396,847		(3,809,067)
Reinvested capital gains			913,646		241,593		-		278,438		277,097		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(9,246,071)		(30,129,500)		(4,388,338)		3,144,067		2,986,273		(2,136)		369,719		(4,460,772)
		ACVB		ACVCA		ACVIG		ACVIG2		ACVIP2		ACVI		ACVI3		ACVI4
Investment Activity:
Reinvested dividends	$		668,673		-		224,790		65,884		9,109,023		331		3		8
Mortality and expense risk charges (note 2)			(473,513)		(1,388)		(191,748)		(72,832)		(3,462,666)		(303)		(3)		(1)
Net investment income (loss)			195,160		(1,388)		33,042		(6,948)		5,646,357		28		-		7
Realized gain (loss) on investments			389,961		11,646		(167,564)		(304,559)		3,142,131		5,683		22		32
Change in unrealized gain (loss) on investments			807,535		(17,607)		426,452		442,142		10,086,527		(8,320)		(52)		-
Net gain (loss) on investments			1,197,496		(5,961)		258,888		137,583		13,228,658		(2,637)		(30)		32
Reinvested capital gains			-		-		-		-		2,459,240		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		1,392,656		(7,349)		291,930		130,635		21,334,255		(2,609)		(30)		39
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		ACVMV1		ACVMV2		ACVU2		ACVVS1		DVSCS		DCAP		DCAPS		DVDLS
Investment Activity:
Reinvested dividends	$		94,416		750,694		-		-		450,827		491,105		696,830		4,868
Mortality and expense risk charges (note 2)			(92,059)		(978,021)		(108)		(91)		(1,165,935)		(402,238)		(880,475)		(20,861)
Net investment income (loss)			2,357		(227,327)		(108)		(91)		(715,108)		88,867		(183,645)		(15,993)
Realized gain (loss) on investments			694,698		1,018,745		1,824		598		(276,231)		288,259		(110,160)		(90,792)
Change in unrealized gain (loss) on investments			(1,063,646)		(3,155,494)		(1,393)		(1,119)		774,737		1,830,568		4,605,397		24,240
Net gain (loss) on investments			(368,948)		(2,136,749)		431		(521)		498,506		2,118,827		4,495,237		(66,552)
Reinvested capital gains			185,964		1,585,878		-		-		180,331		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(180,627)		(778,198)		323		(612)		(36,271)		2,207,694		4,311,592		(82,545)
		DGI		FCA2S		FQB		FQBS		FEIP		FVSS2		FHIP		FAMP
Investment Activity:
Reinvested dividends	$		179,574		9,770		629,530		2,415,308		8,529,868		74,999		3,704,346		2,967,493
Mortality and expense risk charges (note 2)			(192,187)		(28,688)		(158,680)		(735,071)		(4,777,737)		(180,500)		(768,333)		(2,129,315)
Net investment income (loss)			(12,613)		(18,918)		470,850		1,680,237		3,752,131		(105,501)		2,936,013		838,178
Realized gain (loss) on investments			559,642		24,275		19,409		294,248		(6,158,939)		(1,200,981)		(1,128,421)		565,756
Change in unrealized gain (loss) on investments			(1,079,186)		(145,242)		(366,671)		(1,729,168)		1,793,459		183,667		(236,192)		(7,785,316)
Net gain (loss) on investments			(519,544)		(120,967)		(347,262)		(1,434,920)		(4,365,480)		(1,017,314)		(1,364,613)		(7,219,560)
Reinvested capital gains			-		-		-		-		-		-		-		726,738
Net increase (decrease) in contract owners’ equity resulting from operations		$	(532,157)		(139,885)		123,588		245,317		(613,349)		(1,122,815)		1,571,400		(5,654,644)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		FNRS2		FEI2		FF10S		FF10S2		FF20S		FF20S2		FF30S		FF30S2
Investment Activity:
Reinvested dividends	$		773,583		3,789,181		108,155		2,077,151		203,899		6,888,365		143,539		464,292
Mortality and expense risk charges (note 2)			(1,441,734)		(2,445,837)		(73,444)		(1,583,896)		(129,107)		(4,380,454)		(91,587)		(414,989)
Net investment income (loss)			(668,151)		1,343,344		34,711		493,255		74,792		2,507,911		51,952		49,303
Realized gain (loss) on investments			(4,616,316)		(3,815,369)		(47,935)		(473,981)		(132,434)		(249,131)		(223,095)		(818,657)
Change in unrealized gain (loss) on investments			(2,120,730)		1,567,029		(112,430)		(2,752,125)		(219,877)		(13,474,393)		(144,597)		(526,674)
Net gain (loss) on investments			(6,737,046)		(2,248,340)		(160,365)		(3,226,106)		(352,311)		(13,723,524)		(367,692)		(1,345,331)
Reinvested capital gains			-		-		27,771		562,206		36,905		1,318,347		21,006		72,546
Net increase (decrease) in contract owners’ equity resulting from operations	$		(7,405,197)		(904,996)		(97,883)		(2,170,645)		(240,614)		(9,897,266)		(294,734)		(1,223,482)
		FGP		FG2		FHIPR		FIGBS		FIGBP2		FMCS		FMC2		FOP
Investment Activity:
Reinvested dividends	$		1,283,547		119,748		1,526,879		873,056		12,030,389		41,644		56,827		827,558
Mortality and expense risk charges (note 2)			(4,818,674)		(1,248,259)		(300,061)		(362,057)		(7,209,990)		(418,445)		(3,967,911)		(829,224)
Net investment income (loss)			(3,535,127)		(1,128,511)		1,226,818		510,999		4,820,399		(376,801)		(3,911,084)		(1,666)
Realized gain (loss) on investments			(1,173,028)		(2,380,823)		2,517,280		336,073		4,890,312		107,758		(746,414)		1,333,032
Change in unrealized gain (loss) on investments			971,173		499,281		(3,050,392)		(68,689)		1,164,428		(3,524,647)		(26,848,523)		(12,839,256)
Net gain (loss) on investments			(201,855)		(1,881,542)		(533,112)		267,384		6,054,740		(3,416,889)		(27,594,937)		(11,506,224)
Reinvested capital gains			1,253,598		269,866		-		748,306		11,376,584		47,717		446,500		123,690
Net increase (decrease) in contract owners’ equity resulting from operations	$		(2,483,384)		(2,740,187)		693,706		1,526,689		22,251,723		(3,745,973)		(31,059,521)		(11,384,200)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		FOPR		FO2		FO2R		FVSS		FTVIS2		FTVRD2		FTVSV2		FTVDM3
Investment Activity:
Reinvested dividends	$		384,887		33,253		748,910		57,160		7,647,523		1,020,398		1,000,300		319,479
Mortality and expense risk charges (note 2)			(388,805)		(44,645)		(899,139)		(92,789)		(2,011,920)		(1,053,132)		(2,443,878)		(490,308)
Net investment income (loss)			(3,918)		(11,392)		(150,229)		(35,629)		5,635,603		(32,734)		(1,443,578)		(170,829)
Realized gain (loss) on investments			(626,677)		36,814		(4,155,340)		687,635		(2,972,293)		1,514,217		12,258,988		(2,498,885)
Change in unrealized gain (loss) on investments			(4,791,201)		(573,548)		(6,494,327)		(1,295,073)		(1,686,046)		1,090,945		(16,606,531)		(3,115,486)
Net gain (loss) on investments			(5,417,878)		(536,734)		(10,649,667)		(607,438)		(4,658,339)		2,605,162		(4,347,543)		(5,614,371)
Reinvested capital gains			58,558		7,011		108,894		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(5,363,238)		(541,115)		(10,691,002)		(643,067)		977,264		2,572,428		(5,791,121)		(5,785,200)
		TIF2		TIF3		FTVGI3		FTVFA2		AMTB		AMTG		AMINS		AMTP
Investment Activity:
Reinvested dividends	$		75,396		1,390,865		6,161,593		3,144		6,934,625		-		-		-
Mortality and expense risk charges (note 2)			(65,335)		(1,314,099)		(1,609,810)		(313,571)		(3,220,196)		(193)		(7)		(310)
Net investment income (loss)			10,061		76,766		4,551,783		(310,427)		3,714,429		(193)		(7)		(310)
Realized gain (loss) on investments			163,587		509,671		1,453,221		790,311		(6,287,137)		6,699		(522)		5,416
Change in unrealized gain (loss) on investments			(639,255)		(9,760,218)		(9,649,489)		(1,269,714)		(30,885)		(6,526)		-		(6,876)
Net gain (loss) on investments			(475,668)		(9,250,547)		(8,196,268)		(479,403)		(6,318,022)		173		(522)		(1,460)
Reinvested capital gains			-		-		717,904		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(465,607)		(9,173,781)		(2,926,581)		(789,830)		(2,603,593)		(20)		(529)		(1,770)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		AMFAS		AMSRS		OVMS		OVB		OVGS3		OVGS4		OVGS		OVGSS
Investment Activity:
Reinvested dividends	$		-		102,480		1,071,579		2,306,240		785,280		719,744		1,599,793		101,414
Mortality and expense risk charges (note 2)			(82,712)		(465,939)		(602,963)		(514,280)		(790,564)		(1,008,770)		(1,628,226)		(130,380)
Net investment income (loss)			(82,712)		(363,459)		468,616		1,791,960		(5,284)		(289,026)		(28,433)		(28,966)
Realized gain (loss) on investments			728,680		(832,132)		(1,167,336)		(3,308,468)		1,249,806		(593,653)		9,155,029		277,223
Change in unrealized gain (loss) on investments			(869,758)		(354,006)		540,337		4,069,721		(6,641,561)		(6,028,612)		(19,988,626)		(1,062,068)
Net gain (loss) on investments			(141,078)		(1,186,138)		(626,999)		761,253		(5,391,755)		(6,622,265)		(10,833,597)		(784,845)
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(223,790)		(1,549,597)		(158,383)		2,553,213		(5,397,039)		(6,911,291)		(10,862,030)		(813,811)
		OVHI3		OVHI4		OVHI		OVHIS		OVGI		OVGIS		OVSC		OVSCS
Investment Activity:
Reinvested dividends	$		55,010		704,722		4,492		293,961		102,716		1,343,375		23,704		176,710
Mortality and expense risk charges (note 2)			(7,497)		(117,862)		(443)		(45,690)		(156,367)		(3,924,742)		(53,942)		(728,564)
Net investment income (loss)			47,513		586,860		4,049		248,271		(53,651)		(2,581,367)		(30,238)		(551,854)
Realized gain (loss) on investments			10,667		596,792		(81,366)		(2,885,033)		140,383		(10,516,619)		582,351		2,622,797
Change in unrealized gain (loss) on investments			(79,705)		(1,488,525)		77,454		2,539,282		(263,162)		9,101,558		(782,465)		(3,413,977)
Net gain (loss) on investments			(69,038)		(891,733)		(3,912)		(345,751)		(122,779)		(1,415,061)		(200,114)		(791,180)
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(21,525)		(304,873)		137		(97,480)		(176,430)		(3,996,428)		(230,352)		(1,343,034)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		OVAG		PMVFAD		PMVLAD		PMVTRD		PVGIB		PVTIGB		PVTVB		AVBV2
Investment Activity:
Reinvested dividends	$		-		393,937		3,809,114		563,384		40,781		18,554		-		26
Mortality and expense risk charges (note 2)			(148,752)		(305,517)		(3,938,182)		(318,331)		(48,324)		(7,601)		(59,022)		(89)
Net investment income (loss)			(148,752)		88,420		(129,068)		245,053		(7,543)		10,953		(59,022)		(63)
Realized gain (loss) on investments			(121,631)		610,773		485,376		(2,822)		(606,386)		(32,882)		379,283		672
Change in unrealized gain (loss) on investments			(102,654)		425,383		(2,419,505)		(970,242)		437,749		(67,628)		(1,159,581)		(531)
Net gain (loss) on investments			(224,285)		1,036,156		(1,934,129)		(973,064)		(168,637)		(100,510)		(780,298)		141
Reinvested capital gains			-		73,207		-		835,917		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(373,037)		1,197,783		(2,063,197)		107,906		(176,180)		(89,557)		(839,320)		78
		AVCA2		AVCD2		VYDS		TRHS2		VWBFR		VWBF		VWEMR		VWEM
Investment Activity:
Reinvested dividends	$		-		-		2,954		-		476,762		957,059		212,512		219,010
Mortality and expense risk charges (note 2)			(112,786)		(425,704)		(6,026)		(205,865)		(78,185)		(158,028)		(224,425)		(264,560)
Net investment income (loss)			(112,786)		(425,704)		(3,072)		(205,865)		398,577		799,031		(11,913)		(45,550)
Realized gain (loss) on investments			(114,742)		(4,005,304)		(57,508)		191,366		(16,148)		(112,445)		1,458,164		(2,137,349)
Change in unrealized gain (loss) on investments			(401,054)		2,139,793		16,550		(811,736)		(133,246)		(151,075)		(6,253,902)		(3,557,569)
Net gain (loss) on investments			(515,796)		(1,865,511)		(40,958)		(620,370)		(149,394)		(263,520)		(4,795,738)		(5,694,918)
Reinvested capital gains			-		-		-		-		121,547		243,995		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(628,582)		(2,291,215)		(44,030)		(826,235)		370,730		779,506		(4,807,651)		(5,740,468)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

		VWHAR		VWHA		WRASP		WRPCP		WRPMP		WRPMAP		WRPMCP		SVDF
Investment Activity:
Reinvested dividends	$		627,033		380,837		934,560		402		10,772		60,038		2,610		-
Mortality and expense risk charges (note 2)			(869,340)		(413,264)		(1,434,858)		(1,449)		(6,770)		(30,436)		(2,812)		(468)
Net investment income (loss)			(242,307)		(32,427)		(500,298)		(1,047)		4,002		29,602		(202)		(468)
Realized gain (loss) on investments			(358,911)		2,234,334		1,577,566		(10,031)		(2,911)		(26,852)		(9,500)		2,076
Change in unrealized gain (loss) on investments			(12,271,602)		(8,124,985)		(10,208,797)		(3,265)		(63,776)		(755,920)		(12,010)		(1,575)
Net gain (loss) on investments			(12,630,513)		(5,890,651)		(8,631,231)		(13,296)		(66,687)		(782,772)		(21,510)		501
Reinvested capital gains			674,581		407,783		-		652		15,295		107,545		3,950		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(12,198,239)		(5,515,295)		(9,131,529)		(13,691)		(47,390)		(645,625)		(17,762)		33
		SVOF		WFVSCG		WFVSMV		WFVTRB		WFVOG2		NVAGF3		CSIEF3		GEF3
Investment Activity:
Reinvested dividends	$		410		-		62		7,564		-		127,351		46,174		14,096
Mortality and expense risk charges (note 2)			(3,824)		(423,134)		(100)		(3,526)		(966)		(15,327)		(17,550)		(15,155)
Net investment income (loss)			(3,414)		(423,134)		(38)		4,038		(966)		112,024		28,624		(1,059)
Realized gain (loss) on investments			26,894		1,060,262		(493)		224		1,091		(313,065)		(41,389)		(425,178)
Change in unrealized gain (loss) on investments			(42,438)		(2,072,670)		(273)		3,548		(5,183)		100,870		(210,286)		385,062
Net gain (loss) on investments			(15,544)		(1,012,408)		(766)		3,772		(4,092)		(212,195)		(251,675)		(40,116)
Reinvested capital gains			-		-		-		11,330		541		173,773		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$		(18,958)		(1,435,542)		(804)		19,140		(4,517)		73,602		(223,051)		(41,175)
															(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

	NVGWL6		WSCP
Investment Activity:
Reinvested dividends	$	16,351		170,599
Mortality and expense risk charges (note 2)		(19,013)		(350,634)
Net investment income (loss)		(2,662)		(180,035)
Realized gain (loss) on investments		154,220		2,404,597
Change in unrealized gain (loss) on investments		(229,888)		(4,313,690)
Net gain (loss) on investments		(75,668)		(1,909,093)
Reinvested capital gains		-		-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(78,330)		(2,089,128)

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		Total				ALMCS				AFGF				AFHY
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		69,045,778		(39,770,690)		(5,149)		(4,751)		(47,382)		(36,190)		115,165		114,359
Realized gain (loss) on investments			(726,415)		(411,632,210)		(109,103)		(52,335)		107,972		41,929		(14,852)		393,524
Change in unrealized gain (loss) on investments			(953,196,565)		2,832,478,785		66,458		128,460		(602,435)		1,696,018		(38,230)		(300,617)
Reinvested capital gains			85,173,364		116,160,217		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(799,703,838)		2,497,236,102		(47,794)		71,374		(541,845)		1,701,757		62,083		207,266
Equity transactions:
Purchase payments received from contract owners (note 3)			6,928,864,729		4,997,174,244		-		-		23,378		25,162		5,320		3,982
Transfers between funds			-		-		390		(1,329)		(68,084)		(248,274)		34,491		(71,163)
Redemptions (note 3)			(2,865,907,300)		(2,213,555,252)		(11,918)		(50,237)		(627,123)		(782,185)		(75,948)		(88,161)
Annuity benefits			(1,665,603)		(1,798,113)		-		-		(641)		(574)		(1,378)		(1,298)
Contract maintenance charges (note 2)			(112,337,217)		(64,398,005)		(5)		(5)		(3,784)		(4,025)		(626)		(732)
Contingent deferred sales charges (note 2)			(20,837,633)		(19,999,120)		-		-		(493)		(242)		-		-
Adjustments to maintain reserves			(36,260)		(413,602)		(10)		(1)		403		216		1,582		454
Net equity transactions			3,928,080,716		2,697,010,152		(11,543)		(51,572)		(676,344)		(1,009,922)		(36,559)		(156,918)
Net change in contract owners’ equity			3,128,376,878		5,194,246,254		(59,337)		19,802		(1,218,189)		691,835		25,524		50,348
Contract owners’ equity beginning of period			26,665,526,554		21,471,280,300		452,475		432,673		10,981,996		10,290,161		1,786,167		1,735,819
Contract owners’ equity end of period	$		29,793,903,432		26,665,526,554		393,138		452,475		9,763,807		10,981,996		1,811,691		1,786,167
CHANGES IN UNITS:
Beginning units			2,109,588,057		1,768,312,525		34,119		38,321		142,179		156,482		37,078		41,033
Units purchased			978,929,071		980,997,336		11,920		192		323		372		90,954		106,319
Units redeemed			(570,758,649)		(639,721,804)		(13,392)		(4,394)		(9,014)		(14,675)		(90,728)		(110,274)
Ending units			2,517,758,479		2,109,588,057		32,647		34,119		133,488		142,179		37,304		37,078
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		AFGC				MLVGA3				CHSMM				DSIF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		8,422		7,098		1,179,795		51,890		(120,529)		(142,892)		1,082,230		1,081,316
Realized gain (loss) on investments			5,208		8,620		749,851		248,062		-		-		9,814,474		6,057,062
Change in unrealized gain (loss) on investments			34,133		41,511		(11,963,314)		4,945,273		1		-		(10,918,941)		22,351,997
Reinvested capital gains			28,110		6,086		3,122,639		486,456		-		5,376		1,562,507		-
Net increase (decrease) in contract owners’ equity resulting from operations			75,873		63,315		(6,911,029)		5,731,681		(120,528)		(137,516)		1,540,270		29,490,375
Equity transactions:
Purchase payments received from contract owners (note 3)			295		2,123		36,668,257		27,290,593		5,899,031		2,533,244		3,396,610		4,682,210
Transfers between funds			-		(75,000)		18,403,568		29,232,318		(2,113,449)		(4,086,369)		(6,861,391)		(5,629,042)
Redemptions (note 3)			(71,880)		(125,074)		(9,998,731)		(4,853,439)		(3,082,925)		(1,576,519)		(31,422,859)		(36,103,811)
Annuity benefits			(239)		(239)		-		-		(18,553)		(28,854)		(66,675)		(79,729)
Contract maintenance charges (note 2)			(759)		(834)		(7,709)		(3,714)		(601)		(909)		(140,380)		(158,962)
Contingent deferred sales charges (note 2)			-		-		(41,574)		(20,176)		-		-		(38,071)		(59,608)
Adjustments to maintain reserves			143		79		(388)		(3,333)		17		12		1,853		13,293
Net equity transactions			(72,440)		(198,945)		45,023,423		51,642,249		683,520		(3,159,395)		(35,130,913)		(37,335,649)
Net change in contract owners’ equity			3,433		(135,630)		38,112,394		57,373,930		562,992		(3,296,911)		(33,590,643)		(7,845,274)
Contract owners’ equity beginning of period			1,220,068		1,355,698		85,557,591		28,183,661		13,880,740		17,177,651		244,569,444		252,414,718
Contract owners’ equity end of period	$		1,223,501		1,220,068		123,669,985		85,557,591		14,443,732		13,880,740		210,978,801		244,569,444
CHANGES IN UNITS:
Beginning units			36,578		42,499		6,572,107		2,338,768		1,300,472		1,588,787		8,556,559		10,005,487
Units purchased			9		65		5,150,285		5,247,675		1,237,541		445,069		389,033		443,657
Units redeemed			(2,130)		(5,986)		(1,706,075)		(1,014,336)		(1,146,787)		(733,384)		(1,602,388)		(1,892,585)
Ending units			34,457		36,578		10,016,317		6,572,107		1,391,226		1,300,472		7,343,204		8,556,559
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		DSIFS						DSRG						HVIE						HVSIT
		2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$		129,878			79,260			(176,425	)		(191,862	)		33,356			(228	)		(89,513	)		(445	)
Realized gain (loss) on investments			(515,046	)		(871,161	)		1,091,291			(774,588	)		2,752			(11	)		(8,647	)		(143	)
Change in unrealized gain (loss) on investments			(50,354	)		13,240,912			(981,875	)		6,371,680			(532,366	)		6,643			(86,148	)		19,111
Reinvested capital gains			731,611			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations			296,089			12,449,011			(67,009	)		5,405,230			(496,258	)		6,404			(184,308	)		18,523
Equity transactions:
Purchase payments received from contract owners (note 3)			19,668,645			14,966,916			744,087			814,615			3,677,562			237,893			6,391,741			429,339
Transfers between funds			(1,130,490	)		(1,227,796	)		(416,395	)		(804,704	)		2,682,926			18,214			7,402,818			67,835
Redemptions (note 3)			(13,755,888	)		(9,195,424	)		(6,194,893	)		(5,385,669	)		(78,605	)		-			(231,292	)		(93	)
Annuity benefits			(37,700	)		(38,333	)		(2,620	)		(2,372	)		-			-			-			-
Contract maintenance charges (note 2)			(174,722	)		(82,378	)		(38,053	)		(42,148	)		(5,005	)		-			(12,964	)		(2	)
Contingent deferred sales charges (note 2)			(94,351	)		(107,672	)		(5,122	)		(10,435	)		(88	)		-			(4,839	)		-
Adjustments to maintain reserves			(1,832	)		(993	)		(22	)		1,697			(102	)		2			(98	)		(7	)
Net equity transactions			4,473,662			4,314,320			(5,913,018	)		(5,429,016	)		6,276,688			256,109			13,545,366			497,072
Net change in contract owners’ equity			4,769,751			16,763,331			(5,980,027	)		(23,786	)		5,780,430			262,513			13,361,058			515,595
Contract owners’ equity beginning of period			109,245,768			92,482,437			45,094,184			45,117,970			262,513			-			515,595			-
Contract owners’ equity end of period	$		114,015,519			109,245,768			39,114,157			45,094,184			6,042,943			262,513			13,876,653			515,595
CHANGES IN UNITS:
Beginning units			7,353,016			7,000,385			1,858,295			2,105,786			25,460			-			45,685			-
Units purchased			2,908,956			2,133,320			71,852			49,938			674,086			25,794			1,424,829			45,699
Units redeemed			(2,538,242	)		(1,780,689	)		(310,884	)		(297,429	)		(26,784	)		(334	)		(209,253	)		(14	)
Ending units			7,723,730			7,353,016			1,619,263			1,858,295			672,762			25,460			1,261,261			45,685
																								(Continued	)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		JPMMV1				JABS				JACAS				JAGTS2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		1,488		(8,243)		109,249		146,970		(1,490,840)		(1,478,438)		(173,645)		(81,967)
Realized gain (loss) on investments			821,086		382,519		191,639		287,704		(2,104,706)		563,537		2,046,500		233,178
Change in unrealized gain (loss) on investments			(774,058)		841,739		(843,088)		415,208		(5,636,839)		7,307,648		(3,189,059)		1,355,173
Reinvested capital gains			-		-		566,308		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			48,516		1,216,015		24,108		849,882		(9,232,385)		6,392,747		(1,316,204)		1,506,384
Equity transactions:
Purchase payments received from contract owners (note 3)			43,629		44,798		101,300		208,800		19,549,331		24,392,579		2,624,036		1,091,499
Transfers between funds			573,079		11,044		26,667		182,789		(15,615,474)		(326,944)		926,695		3,301,854
Redemptions (note 3)			(1,457,349)		(693,178)		(2,267,313)		(1,869,065)		(10,902,517)		(11,213,552)		(1,766,216)		(586,665)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			(2,558)		(2,630)		(990)		(1,091)		(342,751)		(179,548)		(2,855)		(2,406)
Contingent deferred sales charges (note 2)			(1,168)		(595)		(3,097)		(8,647)		(79,193)		(85,264)		(4,444)		(2,548)
Adjustments to maintain reserves			(52)		599		(251)		213		(1,561)		(7,788)		(509)		(191)
Net equity transactions			(844,419)		(639,962)		(2,143,684)		(1,487,001)		(7,392,165)		12,579,483		1,776,707		3,801,543
Net change in contract owners’ equity			(795,903)		576,053		(2,119,576)		(637,119)		(16,624,550)		18,972,230		460,503		5,307,927
Contract owners’ equity beginning of period			6,650,267		6,074,214		12,961,037		13,598,156		127,862,332		108,890,102		10,472,391		5,164,464
Contract owners’ equity end of period	$		5,854,364		6,650,267		10,841,461		12,961,037		111,237,782		127,862,332		10,932,894		10,472,391
CHANGES IN UNITS:
Beginning units			463,358		515,602		781,885		876,368		8,528,417		7,958,375		765,556		417,666
Units purchased			108,536		69,951		144,938		196,612		2,494,702		3,163,870		1,121,150		598,210
Units redeemed			(167,405)		(122,195)		(271,105)		(291,095)		(2,865,940)		(2,593,828)		(964,763)		(250,320)
Ending units			404,489		463,358		655,718		781,885		8,157,179		8,528,417		921,943		765,556
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		JAGTS				JAIGS2				JAIGS				MIGSC
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(26,666)		(29,251)		(1,348,124)		(1,634,785)		(72,339)		(77,451)		(145,396)		(162,818)
Realized gain (loss) on investments			108,743		164,380		(4,635,315)		(23,243,130)		697,687		1,087,912		520,546		196,227
Change in unrealized gain (loss) on investments			(275,263)		299,684		(42,385,904)		56,759,658		(3,494,518)		860,732		(460,050)		1,109,650
Reinvested capital gains			-		-		1,249,495		-		73,862		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(193,186)		434,813		(47,119,848)		31,881,743		(2,795,308)		1,871,193		(84,900)		1,143,059
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		9,127,376		10,998,350		-		(10)		84,705		159,901
Transfers between funds			(47,704)		(65,143)		(28,839,426)		(54,480,174)		(332,117)		(261,775)		(386,434)		(866,921)
Redemptions (note 3)			(211,711)		(526,666)		(15,391,266)		(17,021,268)		(1,015,321)		(1,848,999)		(2,227,412)		(1,754,225)
Annuity benefits			(461)		(407)		(13,264)		(10,542)		-		-		-		-
Contract maintenance charges (note 2)			(1,735)		(1,977)		(25,707)		(163,405)		(3,907)		(4,943)		(1,166)		(1,258)
Contingent deferred sales charges (note 2)			(121)		(344)		(69,170)		(138,130)		(724)		(2,519)		(10,543)		(16,968)
Adjustments to maintain reserves			(695)		(14)		5,919		1,825		(121)		(46)		(442)		(207)
Net equity transactions			(262,427)		(594,551)		(35,205,538)		(60,813,344)		(1,352,190)		(2,118,292)		(2,541,292)		(2,479,678)
Net change in contract owners’ equity			(455,613)		(159,738)		(82,325,386)		(28,931,601)		(4,147,498)		(247,099)		(2,626,192)		(1,336,619)
Contract owners’ equity beginning of period			2,211,439		2,371,177		165,505,647		194,437,248		9,286,940		9,534,039		12,090,332		13,426,951
Contract owners’ equity end of period	$		1,755,826		2,211,439		83,180,261		165,505,647		5,139,442		9,286,940		9,464,140		12,090,332
CHANGES IN UNITS:
Beginning units			429,603		566,071		5,924,822		8,647,430		470,786		602,788		809,425		996,255
Units purchased			-		-		1,029,521		2,310,524		4,058		6,413		112,082		84,921
Units redeemed			(51,111)		(136,468)		(2,500,942)		(5,033,132)		(83,693)		(138,415)		(283,206)		(271,751)
Ending units			378,492		429,603		4,453,401		5,924,822		391,151		470,786		638,301		809,425
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		MVFSC				MVIVSC				MSVFI				MSVF2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(1,453,951)		(1,470,991)		(118,611)		(59,679)		37,813		92,507		403,201		845,402
Realized gain (loss) on investments			12,847,215		(1,638,522)		346,428		11,359		(403)		(79,391)		(12,527)		(125,112)
Change in unrealized gain (loss) on investments			(17,119,075)		32,748,631		(1,804,417)		1,036,966		30,757		101,893		422,448		507,809
Reinvested capital gains			1,274,247		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(4,451,564)		29,639,118		(1,576,600)		988,646		68,167		115,009		813,122		1,228,099
Equity transactions:
Purchase payments received from contract owners (note 3)			33,239,620		29,890,254		24,913,927		7,924,615		24,813		33,644		224,748		476,070
Transfers between funds			(13,983,358)		(31,204,677)		12,845,954		6,267,926		17,119		(58,424)		(1,258,799)		(933,517)
Redemptions (note 3)			(36,189,614)		(26,173,318)		(1,063,394)		(138,260)		(497,769)		(177,304)		(2,787,979)		(2,271,970)
Annuity benefits			(6,096)		(4,971)		-		-		-		-		(7,537)		(7,023)
Contract maintenance charges (note 2)			(1,136,632)		(1,195,715)		(133,248)		(5,135)		(542)		(564)		(22,307)		(23,660)
Contingent deferred sales charges (note 2)			(283,580)		(350,202)		(9,665)		(865)		(881)		(311)		(10,959)		(31,566)
Adjustments to maintain reserves			(695)		5,360		(703)		(2,123)		(59)		(77)		(448)		201
Net equity transactions			(18,360,355)		(29,033,269)		36,552,871		14,046,158		(457,319)		(203,036)		(3,863,281)		(2,791,465)
Net change in contract owners’ equity			(22,811,919)		605,849		34,976,271		15,034,804		(389,152)		(88,027)		(3,050,159)		(1,563,366)
Contract owners’ equity beginning of period			340,015,538		339,409,689		15,034,804		-		1,981,504		2,069,531		22,942,651		24,506,017
Contract owners’ equity end of period	$		317,203,619		340,015,538		50,011,075		15,034,804		1,592,352		1,981,504		19,892,492		22,942,651
CHANGES IN UNITS:
Beginning units			20,429,012		22,272,897		1,400,680		-		180,620		199,374		2,060,566		2,319,135
Units purchased			4,814,723		7,522,139		4,208,756		1,486,644		44,314		31,877		177,271		221,242
Units redeemed			(5,779,654)		(9,366,024)		(790,731)		(85,964)		(85,718)		(50,631)		(517,903)		(479,811)
Ending units			19,464,081		20,429,012		4,818,705		1,400,680		139,216		180,620		1,719,934		2,060,566
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		MSEM				MSEMB				VKVGR2				MSVRE
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		81,900		119,017		21,703		34,198		120		-		(246)		200
Realized gain (loss) on investments			(17,129)		(27,641)		(5,537)		5,959		(932)		-		16,620		3,911
Change in unrealized gain (loss) on investments			100,551		252,089		26,669		63,280		-		-		(13,932)		7,685
Reinvested capital gains			41,069		-		11,623		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			206,391		343,465		54,458		103,437		(812)		-		2,442		11,796
Equity transactions:
Purchase payments received from contract owners (note 3)			-		(25)		-		-		-		-		(5,026)		(9,869)
Transfers between funds			(103,024)		(139,966)		(22,519)		(59,252)		923		-		(9,705)		9,430
Redemptions (note 3)			(524,425)		(627,810)		(145,671)		(258,404)		(111)		-		122		13,525
Annuity benefits			-		-		-		-		-		-		(10,076)		(5,153)
Contract maintenance charges (note 2)			(2,167)		(2,700)		(202)		(255)		-		-		-		-
Contingent deferred sales charges (note 2)			(425)		(170)		(31)		(1,061)		-		-		-		57
Adjustments to maintain reserves			(78)		(142)		(115)		(41)		-		-		(349)		(3,387)
Net equity transactions			(630,119)		(770,813)		(168,538)		(319,013)		812		-		(25,034)		4,603
Net change in contract owners’ equity			(423,728)		(427,348)		(114,080)		(215,576)		-		-		(22,592)		16,399
Contract owners’ equity beginning of period			4,003,378		4,430,726		1,129,707		1,345,283		-		-		57,671		41,272
Contract owners’ equity end of period	$		3,579,650		4,003,378		1,015,627		1,129,707		-		-		35,079		57,671
CHANGES IN UNITS:
Beginning units			172,642		206,910		56,191		72,537		-		-		312		-
Units purchased			-		-		3,278		3,830		592		-		-		660
Units redeemed			(26,452)		(34,268)		(11,544)		(20,176)		(592)		-		(312)		(348)
Ending units			146,190		172,642		47,925		56,191		-		-		-		312
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		MSVREB				VFMG2				NVAMV1				NVAMV2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(52)		74		6,690		(30,669)		146,762		48,393		(95,811)		14,578
Realized gain (loss) on investments			1,852		2,396		(70,855)		(110,405)		263,334		26,972		1,161,400		325,842
Change in unrealized gain (loss) on investments			(1,461)		211		(196,359)		494,316		(891,778)		1,045,072		(3,017,896)		3,426,235
Reinvested capital gains			-		-		-		-		137,253		136,535		380,763		410,638
Net increase (decrease) in contract owners’ equity resulting from operations			339		2,681		(260,524)		353,242		(344,429)		1,256,972		(1,571,544)		4,177,293
Equity transactions:
Purchase payments received from contract owners (note 3)			39,388		(563)		76,042		26,108		1,083,684		142,525		14,533,385		8,174,041
Transfers between funds			(39,388)		646		(61,810)		(250,360)		(4,593,749)		63,935,817		(8,210,128)		143,680,798
Redemptions (note 3)			-		(73)		(513,298)		(600,880)		(8,757,056)		(607,916)		(16,344,346)		(793,867)
Annuity benefits			(4,488)		(7,601)		-		-		(6,521)		-		(10,473)		-
Contract maintenance charges (note 2)			-		(11)		(1,595)		(1,677)		(26,400)		(1,550)		(373,450)		(51,957)
Contingent deferred sales charges (note 2)			-		-		(924)		(7,392)		(20,419)		(1,197)		(169,835)		(12,305)
Adjustments to maintain reserves			297		63		(27)		300		10,944		525		7,749		(30,804)
Net equity transactions			(4,191)		(7,539)		(501,612)		(833,901)		(12,309,517)		63,468,204		(10,567,098)		150,965,906
Net change in contract owners’ equity			(3,852)		(4,858)		(762,136)		(480,659)		(12,653,946)		64,725,176		(12,138,642)		155,143,199
Contract owners’ equity beginning of period			8,797		13,655		4,073,490		4,554,149		64,794,875		69,699		159,480,726		4,337,527
Contract owners’ equity end of period	$		4,945		8,797		3,311,354		4,073,490		52,140,929		64,794,875		147,342,084		159,480,726
CHANGES IN UNITS:
Beginning units			27		27		334,971		407,960		4,645,835		5,595		11,529,269		349,190
Units purchased			3,393		2		57,319		8,258		190,825		4,737,018		2,206,410		11,482,377
Units redeemed			(3,393)		(2)		(98,551)		(81,247)		(1,073,039)		(96,778)		(2,978,337)		(302,298)
Ending units			27		27		293,739		334,971		3,763,621		4,645,835		10,757,342		11,529,269
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GVAAA2				GVABD2				GVAGG2				GVAGR2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(8,748,128)		(5,135,295)		3,908,167		245,983		(722,081)		(732,820)		(2,618,040)		(2,208,220)
Realized gain (loss) on investments			179,686		(313,653)		(1,256,608)		(2,237,351)		(1,933,212)		(1,266,938)		(4,169,992)		(2,860,535)
Change in unrealized gain (loss) on investments			(16,676,602)		192,526,853		33,880,415		24,268,332		(9,782,123)		11,859,553		(5,714,866)		31,280,307
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(25,245,044)		187,077,905		36,531,974		22,276,964		(12,437,416)		9,859,795		(12,502,898)		26,211,552
Equity transactions:
Purchase payments received from contract owners (note 3)			1,022,701,603		712,887,949		285,562,009		225,685,723		26,636,675		22,090,984		39,921,287		32,202,433
Transfers between funds			(19,901,350)		41,057,714		(16,771,794)		32,314,699		1,437,876		42,501		2,035,175		2,290,735
Redemptions (note 3)			(89,968,002)		(62,031,108)		(45,389,095)		(27,849,860)		(10,836,924)		(8,075,407)		(17,512,597)		(10,854,285)
Annuity benefits			(2,813)		(2,624)		(8,783)		(433)		(6,220)		(3,275)		(4,604)		(4,490)
Contract maintenance charges (note 2)			(17,081,920)		(8,768,810)		(5,087,949)		(2,393,084)		(343,966)		(179,966)		(546,272)		(287,264)
Contingent deferred sales charges (note 2)			(1,586,944)		(1,150,427)		(834,019)		(527,216)		(100,775)		(65,682)		(146,169)		(117,620)
Adjustments to maintain reserves			11,723		(99,745)		8,251		(538)		246		(2,592)		(1,575)		(3,004)
Net equity transactions			894,172,297		681,892,949		217,478,620		227,229,291		16,786,912		13,806,563		23,745,245		23,226,505
Net change in contract owners’ equity			868,927,253		868,970,854		254,010,594		249,506,255		4,349,496		23,666,358		11,242,347		49,438,057
Contract owners’ equity beginning of period			2,134,450,386		1,265,479,532		770,625,661		521,119,406		112,182,446		88,516,088		191,823,320		142,385,263
Contract owners’ equity end of period	$		3,003,377,639		2,134,450,386		1,024,636,255		770,625,661		116,531,942		112,182,446		203,065,667		191,823,320
CHANGES IN UNITS:
Beginning units			211,427,824		138,502,206		71,841,137		50,794,802		10,053,778		8,693,755		19,445,092		16,804,221
Units purchased			108,345,137		86,762,477		34,301,944		30,066,490		4,450,308		3,579,513		7,194,972		6,191,345
Units redeemed			(20,894,626)		(13,836,859)		(14,570,903)		(9,020,155)		(2,806,314)		(2,219,490)		(4,714,678)		(3,550,474)
Ending units			298,878,335		211,427,824		91,572,178		71,841,137		11,697,772		10,053,778		21,925,386		19,445,092
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GVAGI2				HIBF				HIBF3				GEM
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(6,805,173)		(5,608,656)		535,443		651,919		5,630,792		5,561,433		(2,787)		(6,448)
Realized gain (loss) on investments			(3,749,693)		(6,507,905)		(418,585)		(500,730)		3,775,393		6,533,437		(39,549)		2,167
Change in unrealized gain (loss) on investments			(23,884,988)		79,624,930		72,641		889,712		(7,065,820)		(4,262,834)		(57,044)		73,524
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(34,439,854)		67,508,369		189,499		1,040,901		2,340,365		7,832,036		(99,380)		69,243
Equity transactions:
Purchase payments received from contract owners (note 3)			294,865,946		226,129,891		88		321		8,068,539		6,045,233		-		-
Transfers between funds			(2,762,862)		29,689,031		(405,304)		(693,079)		1,732,584		18,998,335		(38,817)		(45,611)
Redemptions (note 3)			(36,401,236)		(22,926,591)		(1,796,036)		(1,611,951)		(10,518,180)		(7,998,866)		(45,592)		(136,754)
Annuity benefits			(1,723)		(2,415)		(277)		(282)		(9,871)		(9,410)		(641)		(632)
Contract maintenance charges (note 2)			(4,760,859)		(2,282,780)		(1,095)		(1,336)		(6,233)		(6,615)		(135)		(199)
Contingent deferred sales charges (note 2)			(758,413)		(475,706)		(6,939)		(12,396)		(55,427)		(62,432)		(3)		(46)
Adjustments to maintain reserves			(8,140)		(20,422)		(254)		(284)		(469)		(681)		(378)		(3,325)
Net equity transactions			250,172,713		230,111,008		(2,209,817)		(2,319,007)		(789,057)		16,965,564		(85,566)		(186,567)
Net change in contract owners’ equity			215,732,859		297,619,377		(2,020,318)		(1,278,106)		1,551,308		24,797,600		(184,946)		(117,324)
Contract owners’ equity beginning of period			789,567,721		491,948,344		8,859,327		10,137,433		95,650,898		70,853,298		482,314		599,638
Contract owners’ equity end of period	$		1,005,300,580		789,567,721		6,839,009		8,859,327		97,202,206		95,650,898		297,368		482,314
CHANGES IN UNITS:
Beginning units			94,709,952		64,562,256		540,532		689,492		7,280,016		6,014,764		18,106		25,866
Units purchased			43,246,817		39,245,276		98,053		38,355		5,368,529		5,824,170		-		-
Units redeemed			(12,874,215)		(9,097,580)		(232,686)		(187,315)		(5,414,615)		(4,558,918)		(3,603)		(7,760)
Ending units			125,082,554		94,709,952		405,899		540,532		7,233,930		7,280,016		14,503		18,106
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GEM2				GEM3				GEM6				GIG
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(17,020)		(29,964)		(203,521)		(477,949)		(588,128)		(851,822)		12		(108)
Realized gain (loss) on investments			(27,864)		(13,047)		(7,675,076)		(5,692,588)		(9,626,946)		(6,484,858)		1,071		5,082
Change in unrealized gain (loss) on investments			(377,713)		288,441		(1,496)		11,188,499		(3,988,277)		14,671,480		(5,750)		(1,698)
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(422,597)		245,430		(7,880,093)		5,017,962		(14,203,351)		7,334,800		(4,667)		3,276
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		1,215,053		1,461,643		8,115,744		7,570,683		-		-
Transfers between funds			(24,169)		(108,960)		(4,735,882)		(1,794,095)		(6,626,973)		(126,870)		-		-
Redemptions (note 3)			(268,987)		(310,106)		(5,376,932)		(5,054,735)		(6,914,453)		(5,896,439)		(3,192)		(23,067)
Annuity benefits			-		-		(5,571)		(5,693)		-		(7,212)		-		-
Contract maintenance charges (note 2)			(424)		(462)		(14,203)		(18,119)		(6,825)		(7,226)		(36)		(38)
Contingent deferred sales charges (note 2)			(206)		(2,779)		(13,866)		(17,724)		(54,086)		(61,093)		-		-
Adjustments to maintain reserves			(97)		(104)		442		2,192		(754)		1,291		(31)		(6)
Net equity transactions			(293,883)		(422,411)		(8,930,959)		(5,426,531)		(5,487,347)		1,473,134		(3,259)		(23,111)
Net change in contract owners’ equity			(716,480)		(176,981)		(16,811,052)		(408,569)		(19,690,698)		8,807,934		(7,926)		(19,835)
Contract owners’ equity beginning of period			1,988,828		2,165,809		40,283,729		40,692,298		63,579,406		54,771,472		43,672		63,507
Contract owners’ equity end of period	$		1,272,348		1,988,828		23,472,677		40,283,729		43,888,708		63,579,406		35,746		43,672
CHANGES IN UNITS:
Beginning units			52,785		66,147		1,413,626		1,637,414		2,890,791		2,858,691		3,675		6,007
Units purchased			6,775		5,095		164,028		309,359		832,414		1,029,748		-		-
Units redeemed			(15,443)		(18,457)		(502,603)		(533,147)		(1,124,728)		(997,648)		(289)		(2,332)
Ending units			44,117		52,785		1,075,051		1,413,626		2,598,477		2,890,791		3,386		3,675
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GIG3				NVIE6				NVNMO1				NVNMO2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(27,196)		(124,726)		(92,134)		(120,215)		(679,303)		(1,105,108)		(259,705)		(253,263)
Realized gain (loss) on investments			(367,298)		(3,948,851)		940,738		1,279,970		1,984,473		2,182,069		(94,216)		1,795,186
Change in unrealized gain (loss) on investments			(2,872,659)		7,497,128		(3,620,754)		1,475,501		(13,163,847)		3,233,777		(3,503,958)		(1,423,865)
Reinvested capital gains			-		-		-		-		677,844		8,019,402		204,746		1,483,066
Net increase (decrease) in contract owners’ equity resulting from operations			(3,267,153)		3,423,551		(2,772,150)		2,635,256		(11,180,833)		12,330,140		(3,653,133)		1,601,124
Equity transactions:
Purchase payments received from contract owners (note 3)			374,330		480,901		3,317,466		4,252,656		1,158,627		1,459,772		8,997,765		6,274,405
Transfers between funds			68,727		(1,422,899)		4,116,297		(997,220)		(2,704,805)		(5,528,129)		1,402,105		263,679
Redemptions (note 3)			(4,855,542)		(4,338,072)		(1,711,231)		(1,028,281)		(11,882,578)		(12,890,556)		(1,499,636)		(1,035,114)
Annuity benefits			(7,239)		(6,778)		-		-		(14,716)		(13,718)		-		-
Contract maintenance charges (note 2)			(12,937)		(15,052)		(72,967)		(26,941)		(45,683)		(53,392)		(85,748)		(26,781)
Contingent deferred sales charges (note 2)			(5,979)		(5,476)		(9,039)		(15,971)		(23,422)		(14,516)		(20,043)		(16,056)
Adjustments to maintain reserves			13,825		(1,755)		254		(1,004)		(1,792)		(503)		(501)		17,939
Net equity transactions			(4,424,815)		(5,309,131)		5,640,780		2,183,239		(13,514,369)		(17,041,042)		8,793,942		5,478,072
Net change in contract owners’ equity			(7,691,968)		(1,885,580)		2,868,630		4,818,495		(24,695,202)		(4,710,902)		5,140,809		7,079,196
Contract owners’ equity beginning of period			33,066,993		34,952,573		21,261,973		16,443,478		97,391,189		102,102,091		18,515,437		11,436,241
Contract owners’ equity end of period	$		25,375,025		33,066,993		24,130,603		21,261,973		72,695,987		97,391,189		23,656,246		18,515,437
CHANGES IN UNITS:
Beginning units			1,753,932		2,072,015		2,754,847		2,369,404		11,003,045		13,158,118		2,127,346		1,491,186
Units purchased			163,083		106,050		1,682,280		1,452,165		426,205		468,940		2,297,649		2,381,516
Units redeemed			(406,471)		(424,133)		(908,350)		(1,066,722)		(2,010,909)		(2,624,013)		(1,302,676)		(1,745,356)
Ending units			1,510,544		1,753,932		3,528,777		2,754,847		9,418,341		11,003,045		3,122,319		2,127,346
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVNSR1				NVNSR2				NVCRA2				NVCRB2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(13,457)		(7,393)		(2,110,130)		(3,153,667)		72,768		(173,791)		8,682,845		(5,010,888)
Realized gain (loss) on investments			371,873		(76,499)		2,257,917		(10,821,321)		1,378,893		(61,849)		11,907		-
Change in unrealized gain (loss) on investments			(540,513)		407,623		(6,887,748)		58,521,859		(3,956,192)		843,954		(52,411,470)		65,214,174
Reinvested capital gains			-		-		-		-		355,769		1,545,023		7,339,091		-
Net increase (decrease) in contract owners’ equity resulting from operations			(182,097)		323,731		(6,739,961)		44,546,871		(2,148,762)		2,153,337		(36,377,627)		60,203,286
Equity transactions:
Purchase payments received from contract owners (note 3)			158,705		124,197		10,710,831		6,969,526		4,788,842		4,643,245		404,792,668		316,256,961
Transfers between funds			422,185		205,753		(8,201,985)		(111,755,729)		706,694		5,511,038		12,410,216		151,570,777
Redemptions (note 3)			(253,130)		(295,484)		(22,992,218)		(16,800,769)		(2,807,771)		(948,472)		(36,141,060)		(21,451,626)
Annuity benefits			-		-		(2,781)		(2,412)		-		-		-		-
Contract maintenance charges (note 2)			(1,063)		(1,121)		(693,349)		(923,550)		(4,030)		(2,644)		(6,029,010)		(2,330,848)
Contingent deferred sales charges (note 2)			(748)		(1,767)		(204,935)		(257,983)		(35,767)		(6,434)		(648,042)		(418,181)
Adjustments to maintain reserves			(62)		213		(1,300)		8,432		162		3,857		(4,664)		(22,045)
Net equity transactions			325,887		31,791		(21,385,737)		(122,762,485)		2,648,130		9,200,590		374,380,108		443,605,038
Net change in contract owners’ equity			143,790		355,522		(28,125,698)		(78,215,614)		499,368		11,353,927		338,002,481		503,808,324
Contract owners’ equity beginning of period			1,964,901		1,609,379		203,082,579		281,298,193		22,008,706		10,654,779		921,933,574		418,125,250
Contract owners’ equity end of period	$		2,108,691		1,964,901		174,956,881		203,082,579		22,508,074		22,008,706		1,259,936,055		921,933,574
CHANGES IN UNITS:
Beginning units			202,690		202,450		21,270,528		35,752,844		2,416,119		1,320,362		91,327,946		45,054,749
Units purchased			222,042		130,357		5,214,783		2,876,753		1,042,514		1,574,362		46,164,222		51,142,762
Units redeemed			(197,130)		(130,117)		(7,236,944)		(17,359,069)		(782,903)		(478,605)		(9,163,287)		(4,869,565)
Ending units			227,602		202,690		19,248,367		21,270,528		2,675,730		2,416,119		128,328,881		91,327,946
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVCCA2				NVCCN2				NVCMD2				NVCMA2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		11,584,199		(7,220,893)		4,696,475		(1,059,856)		12,982,809		(5,779,827)		2,735,374		(2,331,637)
Realized gain (loss) on investments			(157,807)		(1,058,755)		4,943,425		2,738,635		(334,802)		(189,243)		(339,662)		(1,431,640)
Change in unrealized gain (loss) on investments			(121,757,876)		115,236,041		(14,006,408)		8,641,609		(95,093,111)		102,370,642		(29,035,553)		37,100,913
Reinvested capital gains			10,895,379		38,876		2,688,951		4,894,609		11,062,859		-		3,343,151		-
Net increase (decrease) in contract owners’ equity resulting from operations			(99,436,105)		106,995,269		(1,677,557)		15,214,997		(71,382,245)		96,401,572		(23,296,690)		33,337,636
Equity transactions:
Purchase payments received from contract owners (note 3)			835,255,553		535,391,180		158,098,491		125,505,941		700,007,455		489,583,698		12,840,436		11,061,991
Transfers between funds			5,991,743		146,183,989		81,061,529		58,005,137		10,111,955		269,920,662		1,115,152		162,280,216
Redemptions (note 3)			(39,667,171)		(20,141,798)		(29,740,793)		(13,441,569)		(85,249,293)		(27,303,340)		(25,119,040)		(8,492,879)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			(11,209,805)		(4,369,428)		(3,509,652)		(1,799,648)		(10,593,475)		(4,353,081)		(2,099,688)		(1,382,413)
Contingent deferred sales charges (note 2)			(839,931)		(593,610)		(447,860)		(292,926)		(1,125,118)		(605,046)		(247,980)		(285,435)
Adjustments to maintain reserves			(11,290)		(66,006)		(817)		(11,367)		(5,148)		(31,725)		(350)		(774)
Net equity transactions			789,519,099		656,404,327		205,460,898		167,965,568		613,146,376		727,211,168		(13,511,470)		163,180,706
Net change in contract owners’ equity			690,082,994		763,399,596		203,783,341		183,180,565		541,764,131		823,612,740		(36,808,160)		196,518,342
Contract owners’ equity beginning of period			1,303,699,380		540,299,784		377,651,311		194,470,746		1,321,688,824		498,076,084		379,893,041		183,374,699
Contract owners’ equity end of period	$		1,993,782,374		1,303,699,380		581,434,652		377,651,311		1,863,452,955		1,321,688,824		343,084,881		379,893,041
CHANGES IN UNITS:
Beginning units			134,184,859		61,562,208		35,658,142		19,312,567		133,082,298		54,968,785		40,125,331		21,578,200
Units purchased			96,316,816		80,469,455		30,573,061		23,820,327		86,188,702		86,291,766		3,393,666		20,862,547
Units redeemed			(14,781,091)		(7,846,804)		(11,246,256)		(7,474,752)		(24,446,555)		(8,178,253)		(4,884,168)		(2,315,416)
Ending units			215,720,584		134,184,859		54,984,947		35,658,142		194,824,445		133,082,298		38,634,829		40,125,331
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVCMC2				NVCBD1				NVCBD2				NVLCP2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		4,907,986		(1,465,474)		44,297		33,038		1,256,413		646,966		319,966		203,996
Realized gain (loss) on investments			567,042		(60,696)		22,771		115,093		2,344,806		4,919,162		351,008		501,432
Change in unrealized gain (loss) on investments			(17,845,617)		22,752,140		40,974		(13,961)		2,615,526		3,734,489		752,471		(215,740)
Reinvested capital gains			2,968,535		629,895		-		23,410		-		1,597,585		36,533		605,884
Net increase (decrease) in contract owners’ equity resulting from operations			(9,402,054)		21,855,865		108,042		157,580		6,216,745		10,898,202		1,459,978		1,095,572
Equity transactions:
Purchase payments received from contract owners (note 3)			186,647,527		151,849,580		165,016		54,444		7,763,878		7,545,169		11,563,400		10,494,267
Transfers between funds			2,560,929		64,125,081		542,575		(263,267)		(10,323,196)		(63,327,386)		3,499,028		3,740,832
Redemptions (note 3)			(22,226,014)		(10,214,723)		(396,735)		(553,047)		(20,295,386)		(13,185,388)		(2,756,305)		(1,760,868)
Annuity benefits			-		-		-		-		(1,920)		(1,790)		-		-
Contract maintenance charges (note 2)			(3,143,421)		(1,321,442)		(865)		(1,148)		(466,440)		(608,072)		(128,141)		(46,288)
Contingent deferred sales charges (note 2)			(348,014)		(155,663)		(697)		(636)		(151,259)		(170,474)		(16,056)		(19,029)
Adjustments to maintain reserves			(1,740)		(16,700)		(70)		(42)		(1,004)		(1,835)		(508)		(247)
Net equity transactions			163,489,267		204,266,133		309,224		(763,696)		(23,475,327)		(69,749,776)		12,161,418		12,408,667
Net change in contract owners’ equity			154,087,213		226,121,998		417,266		(606,116)		(17,258,582)		(58,851,574)		13,621,396		13,504,239
Contract owners’ equity beginning of period			402,595,617		176,473,619		2,346,078		2,952,194		144,820,312		203,671,886		27,153,406		13,649,167
Contract owners’ equity end of period	$		556,682,830		402,595,617		2,763,344		2,346,078		127,561,730		144,820,312		40,774,802		27,153,406
CHANGES IN UNITS:
Beginning units			39,080,002		18,399,363		209,916		279,023		13,216,889		19,490,331		2,269,048		1,213,629
Units purchased			22,612,236		24,061,468		135,519		223,512		3,574,509		2,895,771		2,299,623		1,755,179
Units redeemed			(6,736,419)		(3,380,829)		(110,325)		(292,619)		(5,660,920)		(9,169,213)		(1,311,844)		(699,760)
Ending units			54,955,819		39,080,002		235,110		209,916		11,130,478		13,216,889		3,256,827		2,269,048
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		TRF				TRF2				GBF				CAF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(238,124)		(456,509)		(1,559,402)		(2,821,285)		5,741,612		6,866,446		(259,785)		(240,887)
Realized gain (loss) on investments			(5,175,956)		(9,679,061)		(11,738,465)		(80,236,091)		2,212,745		12,947,598		2,398,610		964,925
Change in unrealized gain (loss) on investments			4,619,978		25,809,410		12,680,009		106,205,805		14,767,389		(16,894,962)		(2,806,152)		4,820,374
Reinvested capital gains			-		-		-		-		1,336,507		16,973,323		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(794,102)		15,673,840		(617,858)		23,148,429		24,058,253		19,892,405		(667,327)		5,544,412
Equity transactions:
Purchase payments received from contract owners (note 3)			1,954,192		2,391,674		3,279,098		3,774,644		18,346,424		21,315,574		642,476		803,640
Transfers between funds			(3,607,632)		(1,291,933)		(10,072,890)		(93,173,949)		(23,095,419)		(137,248,411)		686,393		(659,635)
Redemptions (note 3)			(18,364,044)		(19,367,464)		(23,548,338)		(16,930,243)		(60,738,031)		(55,463,393)		(4,991,713)		(5,063,332)
Annuity benefits			(67,453)		(66,122)		(1,811)		(1,611)		(25,894)		(26,288)		(8,554)		(10,437)
Contract maintenance charges (note 2)			(103,337)		(116,833)		(631,351)		(907,761)		(1,046,615)		(1,300,685)		(32,525)		(35,807)
Contingent deferred sales charges (note 2)			(18,270)		(25,900)		(196,285)		(254,646)		(346,713)		(495,013)		(7,399)		(11,000)
Adjustments to maintain reserves			13,528		(43,894)		(904)		6,735		1,121		(5,269)		448		1,009
Net equity transactions			(20,193,016)		(18,520,472)		(31,172,481)		(107,486,831)		(66,905,127)		(173,223,485)		(3,710,874)		(4,975,562)
Net change in contract owners’ equity			(20,987,118)		(2,846,632)		(31,790,339)		(84,338,402)		(42,846,874)		(153,331,080)		(4,378,201)		568,850
Contract owners’ equity beginning of period			144,949,030		147,795,662		199,307,248		283,645,650		450,027,933		603,359,013		36,193,330		35,624,480
Contract owners’ equity end of period	$		123,961,912		144,949,030		167,516,909		199,307,248		407,181,059		450,027,933		31,815,129		36,193,330
CHANGES IN UNITS:
Beginning units			2,827,396		3,250,148		14,608,151		23,090,202		30,230,403		43,318,770		1,929,649		2,234,563
Units purchased			51,660		101,175		1,942,302		1,742,604		7,933,130		7,114,701		164,317		72,586
Units redeemed			(420,043)		(523,927)		(4,134,398)		(10,224,655)		(12,865,158)		(20,203,068)		(363,300)		(377,500)
Ending units			2,459,013		2,827,396		12,416,055		14,608,151		25,298,375		30,230,403		1,730,666		1,929,649
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		CAF2				GVIX8				GVIDA				NVDBL2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		19,474		-		210,737		75,908		(109,857)		(722,254)		2,354,465		(357,141)
Realized gain (loss) on investments			(16,121)		-		(495,803)		(1,535,452)		(16,491,307)		(28,332,215)		227,017		314,373
Change in unrealized gain (loss) on investments			139,364		-		(2,856,612)		2,350,871		310,490		68,312,440		(6,890,276)		14,957,141
Reinvested capital gains			-		-		-		-		-		-		513,222		439,463
Net increase (decrease) in contract owners’ equity resulting from operations			142,717		-		(3,141,678)		891,327		(16,290,674)		39,257,971		(3,795,572)		15,353,836
Equity transactions:
Purchase payments received from contract owners (note 3)			6,515,616		-		3,526,416		3,994,236		4,610,804		9,328,251		218,095,273		151,250,084
Transfers between funds			3,652,806		-		3,941,371		30,412		(10,678,043)		(19,490,293)		17,074,496		52,335,534
Redemptions (note 3)			(39,194)		-		(1,199,126)		(813,937)		(54,500,702)		(60,122,627)		(13,470,230)		(3,140,532)
Annuity benefits			-		-		-		-		(14,469)		(11,856)		-		-
Contract maintenance charges (note 2)			(4,421)		-		(41,652)		(20,975)		(56,770)		(63,574)		(2,285,245)		(589,087)
Contingent deferred sales charges (note 2)			(552)		-		(11,669)		(6,120)		(298,822)		(421,905)		(244,911)		(63,307)
Adjustments to maintain reserves			(44)		-		(432)		57		4,963		13,821		(3,091)		(17,202)
Net equity transactions			10,124,211		-		6,214,908		3,183,673		(60,933,039)		(70,768,183)		219,166,292		199,775,490
Net change in contract owners’ equity			10,266,928		-		3,073,230		4,075,000		(77,223,713)		(31,510,212)		215,370,720		215,129,326
Contract owners’ equity beginning of period			-		-		15,977,303		11,902,303		341,516,454		373,026,666		273,719,201		58,589,875
Contract owners’ equity end of period	$		10,266,928		-		19,050,533		15,977,303		264,292,741		341,516,454		489,089,921		273,719,201
CHANGES IN UNITS:
Beginning units			-		-		1,822,983		1,437,538		20,614,506		25,390,427		21,980,236		5,086,185
Units purchased			1,219,798		-		1,217,445		890,343		2,345,472		3,178,858		20,322,615		18,385,056
Units redeemed			(86,783)		-		(507,072)		(504,898)		(6,123,371)		(7,954,779)		(2,796,148)		(1,491,005)
Ending units			1,133,015		-		2,533,356		1,822,983		16,836,607		20,614,506		39,506,703		21,980,236
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVDCA2				GVIDC				GVIDM				GVDMA
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		3,825,946		(665,802)		3,720,985		1,939,327		11,476,690		3,962,847		4,752,843		2,092,417
Realized gain (loss) on investments			1,661,708		-		(261,080)		(1,083,406)		280,095		(5,445,074)		(20,510,261)		(23,249,284)
Change in unrealized gain (loss) on investments			(29,486,529)		32,879,135		1,117,885		12,559,582		(51,379,389)		201,544,115		(33,685,157)		168,825,643
Reinvested capital gains			677,210		666,586		1,557,894		881,635		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(23,321,665)		32,879,919		6,135,684		14,297,138		(39,622,604)		200,061,888		(49,442,575)		147,668,776
Equity transactions:
Purchase payments received from contract owners (note 3)			501,218,133		249,246,917		138,254,369		99,227,941		397,119,283		292,439,968		18,909,283		22,708,599
Transfers between funds			14,170,521		39,735,120		43,980,204		16,338,849		(73,223,684)		40,799,695		(31,103,442)		15,459,845
Redemptions (note 3)			(10,719,464)		(5,888,388)		(44,261,619)		(34,305,417)		(366,727,754)		(219,941,951)		(163,811,995)		(138,134,825)
Annuity benefits			-		-		(11,690)		(20,363)		(109,135)		(94,983)		(29,982)		(36,482)
Contract maintenance charges (note 2)			(4,370,123)		(1,300,339)		(2,449,428)		(1,361,614)		(8,911,084)		(5,658,321)		(4,458,196)		(4,164,559)
Contingent deferred sales charges (note 2)			(233,739)		(73,809)		(546,307)		(460,422)		(2,201,178)		(2,164,307)		(1,414,009)		(1,882,561)
Adjustments to maintain reserves			(6,684)		(31,065)		(1,060)		(2,566)		1,928		(4,384)		3,437		41,077
Net equity transactions			500,058,644		281,688,436		134,964,469		79,416,408		(54,051,624)		105,375,717		(181,904,904)		(106,008,906)
Net change in contract owners’ equity			476,736,979		314,568,355		141,100,153		93,713,546		(93,674,228)		305,437,605		(231,347,479)		41,659,870
Contract owners’ equity beginning of period			429,561,830		114,993,475		377,475,325		283,761,779		2,456,467,776		2,151,030,171		1,484,541,794		1,442,881,924
Contract owners’ equity end of period	$		906,298,809		429,561,830		518,575,478		377,475,325		2,362,793,548		2,456,467,776		1,253,194,315		1,484,541,794
CHANGES IN UNITS:
Beginning units			32,219,088		9,516,319		29,968,371		23,544,842		166,698,445		159,101,261		92,239,100		99,614,695
Units purchased			42,034,142		24,295,246		20,869,615		15,314,617		53,288,743		36,315,923		6,082,366		9,000,819
Units redeemed			(4,586,208)		(1,592,477)		(10,180,571)		(8,891,088)		(56,389,814)		(28,718,739)		(17,582,822)		(16,376,414)
Ending units			69,667,022		32,219,088		40,657,415		29,968,371		163,597,374		166,698,445		80,738,644		92,239,100
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GVDMC				MCIF				SAM				NVMIG3
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		4,466,943		2,181,089		(694,772)		(190,087)		(9,036,524)		(8,910,784)		(23,349)		(261,846)
Realized gain (loss) on investments			(461,714)		(1,137,506)		560,765		(2,003,839)		-		-		1,571,686		1,184,777
Change in unrealized gain (loss) on investments			(1,357,344)		40,907,646		(5,226,560)		21,773,133		-		-		(5,658,845)		4,159,962
Reinvested capital gains			-		-		1,548,165		101,280		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			2,647,885		41,951,229		(3,812,402)		19,680,487		(9,036,524)		(8,910,784)		(4,110,508)		5,082,893
Equity transactions:
Purchase payments received from contract owners (note 3)			127,648,171		98,689,063		13,183,693		7,481,742		302,275,346		345,990,936		484,026		472,509
Transfers between funds			11,037,413		15,364,742		2,506,583		(4,068,742)		118,974,495		(71,335,075)		(1,020,058)		(1,957,486)
Redemptions (note 3)			(80,845,288)		(52,882,248)		(12,824,031)		(12,326,854)		(321,996,751)		(309,469,725)		(6,234,279)		(6,463,827)
Annuity benefits			(117,861)		(112,480)		(9,068)		(8,212)		(88,129)		(145,631)		(1,503)		(1,436)
Contract maintenance charges (note 2)			(2,644,876)		(1,590,931)		(142,371)		(79,264)		(795,150)		(541,517)		(19,852)		(23,596)
Contingent deferred sales charges (note 2)			(664,390)		(625,795)		(46,177)		(107,494)		(1,241,313)		(1,240,899)		(10,122)		(9,533)
Adjustments to maintain reserves			(1,664)		8,320		(4,624)		1,594		28,281		(82,179)		(66)		14,043
Net equity transactions			54,411,505		58,850,671		2,664,005		(9,107,230)		97,156,779		(36,824,090)		(6,801,854)		(7,969,326)
Net change in contract owners’ equity			57,059,390		100,801,900		(1,148,397)		10,573,257		88,120,255		(45,734,874)		(10,912,362)		(2,886,433)
Contract owners’ equity beginning of period			699,275,963		598,474,063		99,563,812		88,990,555		566,434,180		612,169,054		44,737,453		47,623,886
Contract owners’ equity end of period	$		756,335,353		699,275,963		98,415,415		99,563,812		654,554,435		566,434,180		33,825,091		44,737,453
CHANGES IN UNITS:
Beginning units			51,232,905		46,770,342		5,115,318		5,707,255		45,261,889		47,298,089		4,850,543		5,811,834
Units purchased			15,008,587		12,223,701		1,945,436		1,519,307		95,037,845		123,173,738		132,200		140,982
Units redeemed			(10,954,321)		(7,761,138)		(1,813,423)		(2,111,244)		(87,543,808)		(125,209,938)		(881,925)		(1,102,273)
Ending units			55,287,171		51,232,905		5,247,331		5,115,318		52,755,926		45,261,889		4,100,818		4,850,543
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVMIG6				GVDIV2				GVDIV3				GVDIV6
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(1,212,918)		(3,049,517)		(615)		3,144		30,818		64,522		133,442		365,359
Realized gain (loss) on investments			100,072		(12,445,712)		(94,325)		(82,171)		(1,392,741)		(1,215,017)		(674,146)		(531,169)
Change in unrealized gain (loss) on investments			(17,722,290)		42,786,867		(31,310)		111,040		204,658		1,453,894		(9,471,630)		3,409,451
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(18,835,136)		27,291,638		(126,250)		32,013		(1,157,265)		303,399		(10,012,334)		3,243,641
Equity transactions:
Purchase payments received from contract owners (note 3)			8,048,393		5,220,988		-		-		159,661		198,701		9,578,611		9,853,945
Transfers between funds			2,731,351		(89,198,097)		(35,064)		(61,510)		(72,374)		(415,796)		388,437		2,829,647
Redemptions (note 3)			(21,895,425)		(15,440,948)		(163,041)		(117,720)		(1,157,691)		(981,171)		(3,860,146)		(2,641,995)
Annuity benefits			(444)		(1,230)		-		-		-		-		(1,223)		(1,172)
Contract maintenance charges (note 2)			(695,399)		(868,566)		(88)		(112)		(2,681)		(3,540)		(251,491)		(161,908)
Contingent deferred sales charges (note 2)			(203,425)		(233,070)		(132)		(300)		(2,134)		(1,721)		(52,855)		(51,740)
Adjustments to maintain reserves			(865)		(3,883)		(57)		(44)		(84)		948		(786)		(1,860)
Net equity transactions			(12,015,814)		(100,524,806)		(198,382)		(179,686)		(1,075,303)		(1,202,579)		5,800,547		9,824,917
Net change in contract owners’ equity			(30,850,950)		(73,233,168)		(324,632)		(147,673)		(2,232,568)		(899,180)		(4,211,787)		13,068,558
Contract owners’ equity beginning of period			197,782,719		271,015,887		884,469		1,032,142		7,673,903		8,573,083		56,608,928		43,540,370
Contract owners’ equity end of period	$		166,931,769		197,782,719		559,837		884,469		5,441,335		7,673,903		52,397,141		56,608,928
CHANGES IN UNITS:
Beginning units			21,858,795		33,492,360		58,167		70,793		485,438		567,848		5,274,892		4,221,490
Units purchased			4,324,627		7,857,457		4,852		1,693		63,166		47,927		1,918,445		2,128,965
Units redeemed			(5,436,126)		(19,491,022)		(18,094)		(14,319)		(132,734)		(130,337)		(1,258,244)		(1,075,563)
Ending units			20,747,296		21,858,795		44,925		58,167		415,870		485,438		5,935,093		5,274,892
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVMLG1				NVMLG2				NVMLV1				NVMLV2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(145,688)		(112,866)		(2,067,406)		(2,664,124)		(8,208)		(15,151)		(302,589)		(409,441)
Realized gain (loss) on investments			207,305		383,728		6,719,593		20,125,584		(14,831)		(87,586)		878,622		1,416,626
Change in unrealized gain (loss) on investments			(483,600)		260,056		(9,689,783)		(8,950,436)		(368,941)		44,478		(5,366,484)		1,538,284
Reinvested capital gains			-		440,757		-		5,742,403		118,443		129,945		1,486,602		1,765,438
Net increase (decrease) in contract owners’ equity resulting from operations			(421,983)		971,675		(5,037,596)		14,253,427		(273,537)		71,686		(3,303,849)		4,310,907
Equity transactions:
Purchase payments received from contract owners (note 3)			290,704		241,074		8,972,927		4,977,544		128,362		80,491		8,371,802		5,797,548
Transfers between funds			(485,705)		8,445,684		(4,759,740)		(41,661,883)		299,680		4,340,760		(690,247)		(567,308)
Redemptions (note 3)			(1,565,329)		(1,207,198)		(15,559,904)		(11,826,752)		(680,349)		(657,301)		(4,874,170)		(6,009,553)
Annuity benefits			(1,679)		(847)		(3,113)		(635)		-		-		-		-
Contract maintenance charges (note 2)			(6,278)		(5,106)		(324,632)		(465,339)		(1,661)		(1,109)		(101,654)		(53,348)
Contingent deferred sales charges (note 2)			(4,942)		(6,922)		(114,839)		(166,754)		(601)		(469)		(30,167)		(75,582)
Adjustments to maintain reserves			(2,397)		6,561		(268)		2,484		(36)		1,571		(702)		(2,009)
Net equity transactions			(1,775,626)		7,473,246		(11,789,569)		(49,141,335)		(254,605)		3,763,943		2,674,862		(910,252)
Net change in contract owners’ equity			(2,197,609)		8,444,921		(16,827,165)		(34,887,908)		(528,142)		3,835,629		(628,987)		3,400,655
Contract owners’ equity beginning of period			11,964,666		3,519,745		130,368,329		165,256,237		3,835,629		-		42,225,995		38,825,340
Contract owners’ equity end of period	$		9,767,057		11,964,666		113,541,164		130,368,329		3,307,487		3,835,629		41,597,008		42,225,995
CHANGES IN UNITS:
Beginning units			1,296,267		435,720		14,383,005		20,688,233		368,018		-		4,831,835		4,932,338
Units purchased			192,874		1,402,739		3,430,101		6,657,280		103,491		528,512		1,995,582		1,377,784
Units redeemed			(384,862)		(542,192)		(4,664,357)		(12,962,508)		(130,012)		(160,494)		(1,682,170)		(1,478,287)
Ending units			1,104,279		1,296,267		13,148,749		14,383,005		341,497		368,018		5,145,247		4,831,835
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVMMG1				NVMMG2				NVMMV2				SCGF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(2,612,586)		(2,593,143)		(2,292,662)		(2,759,734)		(1,973,658)		(1,026,449)		(99,998)		(73,557)
Realized gain (loss) on investments			9,549,350		5,405,112		11,160,853		(11,158,149)		10,282,591		(2,783,334)		(270,602)		(446,556)
Change in unrealized gain (loss) on investments			(17,266,389)		42,024,705		(15,004,422)		49,733,263		(18,252,957)		42,034,588		(77,181)		1,735,974
Reinvested capital gains			-		-		-		-		1,158,382		13,937,980		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(10,329,625)		44,836,674		(6,136,231)		35,815,380		(8,785,642)		52,162,785		(447,781)		1,215,861
Equity transactions:
Purchase payments received from contract owners (note 3)			2,183,677		2,640,074		7,801,314		4,751,018		6,422,922		6,030,212		162,553		184,189
Transfers between funds			(5,246,061)		(6,135,642)		(9,834,724)		(42,994,406)		(9,351,828)		(47,012,006)		722,364		719,513
Redemptions (note 3)			(25,622,702)		(24,900,668)		(16,624,168)		(11,884,505)		(34,246,478)		(33,354,228)		(1,238,804)		(809,174)
Annuity benefits			(18,674)		(17,607)		(1,797)		(1,547)		(402)		(323)		(2,054)		(1,764)
Contract maintenance charges (note 2)			(124,961)		(137,094)		(445,178)		(523,859)		(540,177)		(729,732)		(3,416)		(3,070)
Contingent deferred sales charges (note 2)			(19,095)		(18,544)		(150,043)		(176,921)		(150,529)		(199,120)		(5,569)		(5,436)
Adjustments to maintain reserves			1,387		12,828		731		(2,850)		(2,686)		45,067		(120)		75
Net equity transactions			(28,846,429)		(28,556,653)		(19,253,865)		(50,833,070)		(37,869,178)		(75,220,130)		(365,046)		84,333
Net change in contract owners’ equity			(39,176,054)		16,280,021		(25,390,096)		(15,017,690)		(46,654,820)		(23,057,345)		(812,827)		1,300,194
Contract owners’ equity beginning of period			214,795,021		198,515,000		153,409,464		168,427,154		311,821,109		334,878,454		7,097,649		5,797,455
Contract owners’ equity end of period	$		175,618,967		214,795,021		128,019,368		153,409,464		265,166,289		311,821,109		6,284,822		7,097,649
CHANGES IN UNITS:
Beginning units			21,964,214		25,406,505		15,990,746		21,823,573		30,788,320		38,969,703		1,058,529		1,069,631
Units purchased			399,587		536,452		3,129,029		5,109,502		2,415,325		4,066,214		705,792		349,841
Units redeemed			(3,363,916)		(3,978,743)		(4,931,844)		(10,942,329)		(6,000,879)		(12,247,597)		(809,468)		(360,943)
Ending units			18,999,885		21,964,214		14,187,931		15,990,746		27,202,766		30,788,320		954,853		1,058,529
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		SCGF2				SCVF				SCVF2				SCF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(316,989)		(183,590)		(317,006)		(275,569)		(283,301)		(263,150)		(649,770)		(879,486)
Realized gain (loss) on investments			443,448		(1,095,952)		(1,262,311)		(2,652,184)		118,953		(4,865,702)		(4,175,167)		(7,211,594)
Change in unrealized gain (loss) on investments			(1,902,744)		3,840,433		(636,292)		11,264,017		(1,454,048)		10,430,506		(666,964)		25,989,387
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(1,776,285)		2,560,891		(2,215,609)		8,336,264		(1,618,396)		5,301,654		(5,491,901)		17,898,307
Equity transactions:
Purchase payments received from contract owners (note 3)			3,940,777		1,807,923		533,137		796,568		2,919,712		2,027,012		1,074,712		1,396,062
Transfers between funds			5,168,688		1,277,886		(3,004,799)		(105,012)		(891,295)		(5,755,418)		(2,416,619)		(3,109,420)
Redemptions (note 3)			(2,128,444)		(1,042,213)		(4,750,801)		(5,349,948)		(3,247,498)		(2,891,660)		(11,341,728)		(12,044,570)
Annuity benefits			-		-		(8,106)		(7,764)		(226)		(251)		(13,106)		(17,442)
Contract maintenance charges (note 2)			(25,590)		(12,513)		(17,358)		(19,992)		(26,549)		(16,373)		(41,636)		(46,573)
Contingent deferred sales charges (note 2)			(13,615)		(10,847)		(8,375)		(11,525)		(20,301)		(44,023)		(21,360)		(20,779)
Adjustments to maintain reserves			(378)		(496)		(1,557)		1,886		(11,358)		9,353		3,933		31,076
Net equity transactions			6,941,438		2,019,740		(7,257,859)		(4,695,787)		(1,277,515)		(6,671,360)		(12,755,804)		(13,811,646)
Net change in contract owners’ equity			5,165,153		4,580,631		(9,473,468)		3,640,477		(2,895,911)		(1,369,706)		(18,247,705)		4,086,661
Contract owners’ equity beginning of period			16,035,870		11,455,239		40,611,833		36,971,356		24,904,797		26,274,503		89,906,286		85,819,625
Contract owners’ equity end of period	$		21,201,023		16,035,870		31,138,365		40,611,833		22,008,886		24,904,797		71,658,581		89,906,286
CHANGES IN UNITS:
Beginning units			1,120,559		983,361		1,869,906		2,126,736		1,184,181		1,573,837		2,424,228		2,862,552
Units purchased			1,573,297		428,200		77,187		174,827		359,725		430,716		79,266		96,063
Units redeemed			(1,159,740)		(291,002)		(416,718)		(431,657)		(408,110)		(820,372)		(430,441)		(534,387)
Ending units			1,534,116		1,120,559		1,530,375		1,869,906		1,135,796		1,184,181		2,073,053		2,424,228
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		SCF2				MSBF				NVSTB2				NVOLG1
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(445,082)		(614,243)		3,684,517		4,672,818		(37,139)		(238,130)		(2,503,145)		(319,352)
Realized gain (loss) on investments			(2,066,677)		(3,986,958)		(2,191,747)		(1,231,851)		391,112		795,813		1,149,225		22,550
Change in unrealized gain (loss) on investments			(480,843)		13,852,684		3,235,626		3,774,161		(603,266)		(125,786)		(11,481,323)		1,370,722
Reinvested capital gains			-		-		-		-		-		141,285		1,308,144		116,357
Net increase (decrease) in contract owners’ equity resulting from operations			(2,992,602)		9,251,483		4,728,396		7,215,128		(249,293)		573,182		(11,527,099)		1,190,277
Equity transactions:
Purchase payments received from contract owners (note 3)			4,277,597		2,900,600		37,706,570		26,524,405		8,640,236		8,162,794		5,468,229		455,714
Transfers between funds			(2,199,794)		(2,506,445)		(2,971,089)		8,702,312		(5,527,365)		(3,009,730)		(26,271,087)		425,114,127
Redemptions (note 3)			(5,969,396)		(3,983,918)		(9,959,347)		(7,898,014)		(8,860,304)		(5,835,955)		(60,228,487)		(4,725,457)
Annuity benefits			(10,001)		(9,277)		(1,751)		(5,125)		(15,448)		(15,379)		(88,542)		(1,271)
Contract maintenance charges (note 2)			(59,473)		(43,849)		(483,169)		(164,513)		(271,716)		(228,924)		(197,408)		(12,016)
Contingent deferred sales charges (note 2)			(37,251)		(41,951)		(61,458)		(57,933)		(69,038)		(95,847)		(89,561)		(6,518)
Adjustments to maintain reserves			(4,094)		7,617		(950)		(679)		(842)		(424)		(18,148)		175,453
Net equity transactions			(4,002,412)		(3,677,223)		24,228,806		27,100,453		(6,104,477)		(1,023,465)		(81,425,004)		421,000,032
Net change in contract owners’ equity			(6,995,014)		5,574,260		28,957,202		34,315,581		(6,353,770)		(450,283)		(92,952,103)		422,190,309
Contract owners’ equity beginning of period			48,513,954		42,939,694		109,405,101		75,089,520		75,899,249		76,349,532		422,788,451		598,142
Contract owners’ equity end of period	$		41,518,940		48,513,954		138,362,303		109,405,101		69,545,479		75,899,249		329,836,348		422,788,451
CHANGES IN UNITS:
Beginning units			2,354,378		2,565,425		8,055,038		5,998,819		7,264,937		7,363,311		30,384,486		46,211
Units purchased			513,055		421,885		4,777,007		4,266,332		2,412,673		2,238,464		614,853		31,041,956
Units redeemed			(687,138)		(632,932)		(3,038,071)		(2,210,113)		(3,001,375)		(2,336,838)		(6,428,000)		(703,681)
Ending units			2,180,295		2,354,378		9,793,974		8,055,038		6,676,235		7,264,937		24,571,339		30,384,486
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVOLG2				NVTIV3				EIF2				NVRE1
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(3,043,752)		(313,908)		2,637,067		197,415		(627,002)		(569,076)		(318,823)		372,744
Realized gain (loss) on investments			847,802		613,954		1,372,048		23,326,986		(416,831)		(8,484,501)		3,918,498		3,034,529
Change in unrealized gain (loss) on investments			(7,963,767)		1,017,862		(34,380,208)		(44,174,253)		(3,344,505)		24,057,433		(734,046)		7,676,131
Reinvested capital gains			913,646		100,130		241,593		31,669,310		-		-		278,438		5,350,740
Net increase (decrease) in contract owners’ equity resulting from operations			(9,246,071)		1,418,038		(30,129,500)		11,019,458		(4,388,338)		15,003,856		3,144,067		16,434,144
Equity transactions:
Purchase payments received from contract owners (note 3)			9,587,439		3,879,454		35,551,377		26,754,151		21,782,969		13,858,024		1,047,416		1,335,104
Transfers between funds			(30,678,992)		295,425,863		13,687,670		(108,808,506)		(640,096)		21,647,907		(1,527,120)		557,039
Redemptions (note 3)			(39,218,867)		(2,439,481)		(23,873,382)		(17,084,056)		(13,313,942)		(9,728,870)		(8,999,781)		(8,911,500)
Annuity benefits			(37,406)		(222)		(1,904)		(1,006)		(8,191)		(7,626)		(1,354)		(1,183)
Contract maintenance charges (note 2)			(166,416)		(19,656)		(1,066,892)		(1,095,186)		(452,981)		(405,793)		(29,237)		(31,428)
Contingent deferred sales charges (note 2)			(246,279)		(25,473)		(223,721)		(269,261)		(106,478)		(126,942)		(17,908)		(17,417)
Adjustments to maintain reserves			(7,139)		(127,342)		6,080		2,913		(1,566)		(2,073)		(198)		2,769
Net equity transactions			(60,767,660)		296,693,143		24,079,228		(100,500,951)		7,259,715		25,234,627		(9,528,182)		(7,066,616)
Net change in contract owners’ equity			(70,013,731)		298,111,181		(6,050,272)		(89,481,493)		2,871,377		40,238,483		(6,384,115)		9,367,528
Contract owners’ equity beginning of period			299,747,295		1,636,114		228,508,871		317,990,364		125,421,749		85,183,266		70,626,024		61,258,496
Contract owners’ equity end of period	$		229,733,564		299,747,295		222,458,599		228,508,871		128,293,126		125,421,749		64,241,909		70,626,024
CHANGES IN UNITS:
Beginning units			21,739,959		126,715		16,971,191		24,685,147		8,163,585		6,274,173		7,607,257		8,476,274
Units purchased			2,210,015		22,312,953		6,775,590		4,700,709		2,855,357		5,368,354		766,455		1,320,083
Units redeemed			(6,609,798)		(699,709)		(4,580,033)		(12,414,665)		(2,337,174)		(3,478,942)		(1,789,648)		(2,189,100)
Ending units			17,340,176		21,739,959		19,166,748		16,971,191		8,681,768		8,163,585		6,584,064		7,607,257
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		NVRE2				ALVBWB				ALVGIB				ALVSVB
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(606,858)		99,785		(91)		-		(27,128)		(126,864)		(651,705)		(436,563)
Realized gain (loss) on investments			5,332,786		2,312,063		(41)		-		(715,629)		(910,604)		2,932,486		(11,190)
Change in unrealized gain (loss) on investments			(2,016,752)		6,600,077		(2,004)		-		1,112,476		1,849,385		(6,741,553)		7,556,809
Reinvested capital gains			277,097		5,130,076		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			2,986,273		14,142,001		(2,136)		-		369,719		811,917		(4,460,772)		7,109,056
Equity transactions:
Purchase payments received from contract owners (note 3)			5,861,092		3,898,081		-		-		119,778		87,678		16,969,188		12,131,497
Transfers between funds			(3,164,279)		4,172,102		46,884		-		(340,550)		(836,866)		(782,142)		8,251,873
Redemptions (note 3)			(9,660,517)		(5,620,139)		(583)		-		(1,724,429)		(1,039,266)		(3,881,999)		(2,612,695)
Annuity benefits			-		-		-		-		-		-		-		(1,271)
Contract maintenance charges (note 2)			(8,343)		(8,502)		-		-		(711)		(869)		(185,625)		(70,164)
Contingent deferred sales charges (note 2)			(66,992)		(70,055)		-		-		(1,929)		(5,123)		(37,045)		(27,242)
Adjustments to maintain reserves			(740)		204		2		-		(176)		55		(1,725)		(9,765)
Net equity transactions			(7,039,779)		2,371,691		46,303		-		(1,948,017)		(1,794,391)		12,080,652		17,662,233
Net change in contract owners’ equity			(4,053,506)		16,513,692		44,167		-		(1,578,298)		(982,474)		7,619,880		24,771,289
Contract owners’ equity beginning of period			67,769,999		51,256,307		-		-		8,132,903		9,115,377		45,815,068		21,043,779
Contract owners’ equity end of period	$		63,716,493		67,769,999		44,167		-		6,554,605		8,132,903		53,434,948		45,815,068
CHANGES IN UNITS:
Beginning units			7,395,551		7,149,290		-		-		585,653		733,419		2,060,999		1,172,611
Units purchased			2,380,446		2,495,391		4,898		-		99,342		90,498		1,462,866		1,669,451
Units redeemed			(3,130,609)		(2,249,130)		(65)		-		(235,117)		(238,264)		(858,678)		(781,063)
Ending units			6,645,388		7,395,551		4,833		-		449,878		585,653		2,665,187		2,060,999
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		ACVB				ACVCA				ACVIG				ACVIG2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		195,160		202,583		(1,388)		(1,399)		33,042		25,782		(6,948)		(14,135)
Realized gain (loss) on investments			389,961		233,150		11,646		5,489		(167,564)		(625,517)		(304,559)		(338,254)
Change in unrealized gain (loss) on investments			807,535		3,209,906		(17,607)		23,507		426,452		2,361,543		442,142		1,029,127
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			1,392,656		3,645,639		(7,349)		27,597		291,930		1,761,808		130,635		676,738
Equity transactions:
Purchase payments received from contract owners (note 3)			319,108		849,573		(763)		(147)		256,700		364,573		71,184		142,309
Transfers between funds			(168,384)		(880,259)		951		152		677,860		(548,699)		(229,389)		(352,918)
Redemptions (note 3)			(5,590,784)		(6,366,224)		(10,070)		9,914		(2,083,384)		(2,223,202)		(1,364,717)		(917,703)
Annuity benefits			(24,910)		(23,423)		(21,268)		(21,470)		(6,089)		(5,619)		-		-
Contract maintenance charges (note 2)			(20,388)		(23,328)		(59)		(169)		(8,911)		(10,117)		(851)		(1,012)
Contingent deferred sales charges (note 2)			(6,608)		(6,159)		-		(13)		(3,075)		(9,121)		(2,793)		(4,654)
Adjustments to maintain reserves			753		1,715		2,838		2,439		(151)		155		(100)		(130)
Net equity transactions			(5,491,213)		(6,448,105)		(28,371)		(9,294)		(1,167,050)		(2,432,030)		(1,526,666)		(1,134,108)
Net change in contract owners’ equity			(4,098,557)		(2,802,466)		(35,720)		18,303		(875,120)		(670,222)		(1,396,031)		(457,370)
Contract owners’ equity beginning of period			37,673,945		40,476,411		125,850		107,547		15,114,641		15,784,863		5,882,372		6,339,742
Contract owners’ equity end of period	$		33,575,388		37,673,945		90,130		125,850		14,239,521		15,114,641		4,486,341		5,882,372
CHANGES IN UNITS:
Beginning units			1,591,690		1,885,279		197		-		1,330,183		1,564,365		413,946		503,648
Units purchased			83,062		67,047		-		201		128,730		76,074		86,291		73,784
Units redeemed			(311,221)		(360,636)		(197)		(4)		(227,117)		(310,256)		(189,219)		(163,486)
Ending units			1,363,531		1,591,690		-		197		1,231,796		1,330,183		311,018		413,946
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		ACVIP2				ACVI				ACVI3				ACVI4
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		5,646,357		171,551		28		344		-		4		7		-
Realized gain (loss) on investments			3,142,131		701,064		5,683		1,450		22		23		32		-
Change in unrealized gain (loss) on investments			10,086,527		4,545,535		(8,320)		984		(52)		2		-		-
Reinvested capital gains			2,459,240		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			21,334,255		5,418,150		(2,609)		2,778		(30)		29		39		-
Equity transactions:
Purchase payments received from contract owners (note 3)			52,967,680		37,011,430		6		27		45		(80)		(37)		-
Transfers between funds			13,901,530		4,695,972		22		(36)		-		78		58		-
Redemptions (note 3)			(22,526,761)		(14,410,969)		28		(204)		(45)		(496)		-		-
Annuity benefits			(20,175)		(18,454)		(10,199)		(10,931)		(103)		(126)		-		-
Contract maintenance charges (note 2)			(680,505)		(294,719)		(28)		30		-		1		(60)		-
Contingent deferred sales charges (note 2)			(149,562)		(133,780)		-		248		-		497		-		-
Adjustments to maintain reserves			(864)		33,101		718		1,207		5		33		-		-
Net equity transactions			43,491,343		26,882,581		(9,453)		(9,659)		(98)		(93)		(39)		-
Net change in contract owners’ equity			64,825,598		32,300,731		(12,062)		(6,881)		(128)		(64)		-		-
Contract owners’ equity beginning of period			184,123,001		151,822,270		27,926		34,807		292		356		-		-
Contract owners’ equity end of period	$		248,948,599		184,123,001		15,864		27,926		164		292		-		-
CHANGES IN UNITS:
Beginning units			14,505,426		12,382,367		-		-		-		-		-		-
Units purchased			9,665,810		6,054,243		-		-		3		8		45		-
Units redeemed			(6,348,705)		(3,931,184)		-		-		(3)		(8)		(45)		-
Ending units			17,822,531		14,505,426		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		ACVMV1				ACVMV2				ACVU1				ACVU2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		2,357		56,210		(227,327)		269,876		-		-		(108)		(119)
Realized gain (loss) on investments			694,698		98,575		1,018,745		(25,351)		-		-		1,824		895
Change in unrealized gain (loss) on investments			(1,063,646)		802,531		(3,155,494)		7,656,068		-		-		(1,393)		593
Reinvested capital gains			185,964		-		1,585,878		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(180,627)		957,316		(778,198)		7,900,593		-		-		323		1,369
Equity transactions:
Purchase payments received from contract owners (note 3)			189,729		243,156		17,636,715		11,008,049		-		-		-		500
Transfers between funds			925,685		915,161		(2,679,815)		7,229,176		-		-		-		(21)
Redemptions (note 3)			(862,824)		(810,082)		(4,793,574)		(2,986,917)		-		-		-		(479)
Annuity benefits			(640)		(589)		(84)		(78)		-		-		(5,636)		(4,996)
Contract maintenance charges (note 2)			(2,536)		(2,172)		(207,832)		(95,336)		-		-		-		-
Contingent deferred sales charges (note 2)			(2,708)		(2,397)		(44,011)		(58,160)		-		-		-		-
Adjustments to maintain reserves			(93)		360		(1,093)		10,578		-		-		62		154
Net equity transactions			246,613		343,437		9,910,306		15,107,312		-		-		(5,574)		(4,842)
Net change in contract owners’ equity			65,986		1,300,753		9,132,108		23,007,905		-		-		(5,251)		(3,473)
Contract owners’ equity beginning of period			6,773,129		5,472,376		59,493,750		36,485,845		-		-		10,256		13,729
Contract owners’ equity end of period	$		6,839,115		6,773,129		68,625,858		59,493,750		-		-		5,005		10,256
CHANGES IN UNITS:
Beginning units			563,062		535,378		4,240,631		3,038,070		-		-		-		-
Units purchased			261,720		333,263		2,268,662		2,579,927		-		7		-		37
Units redeemed			(244,700)		(305,579)		(1,510,312)		(1,377,366)		-		(7)		-		(37)
Ending units			580,082		563,062		4,998,981		4,240,631		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		ACVV				ACVV2				ACVVS1				ACVVS2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		151,247		-		(51,345)		(91)		(101)		-		(1)
Realized gain (loss) on investments			-		(15,631,317)		-		(13,226,299)		598		564		-		(40)
Change in unrealized gain (loss) on investments			-		20,600,805		-		19,807,264		(1,119)		1,137		-		-
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		5,120,735		-		6,529,620		(612)		1,600		-		(41)
Equity transactions:
Purchase payments received from contract owners (note 3)			-		1,060,169		-		862,696		2		(3)		-		(317)
Transfers between funds			-		(57,665,014)		-		(77,779,176)		5		3		-		1,551
Redemptions (note 3)			-		(8,235,856)		-		(5,762,181)		-		-		-		(1,188)
Annuity benefits			-		(4,613)		-		(5,499)		(1,823)		(1,673)		-		-
Contract maintenance charges (note 2)			-		(26,642)		-		(98,187)		(7)		-		-		(5)
Contingent deferred sales charges (note 2)			-		(15,156)		-		(69,597)		-		-		-		-
Adjustments to maintain reserves			-		(16,487)		-		(8,382)		(154)		(1,688)		-		-
Net equity transactions			-		(64,903,599)		-		(82,860,326)		(1,977)		(3,361)		-		41
Net change in contract owners’ equity			-		(59,782,864)		-		(76,330,706)		(2,589)		(1,761)		-		-
Contract owners’ equity beginning of period			-		59,782,864		-		76,330,706		7,956		9,717		-		-
Contract owners’ equity end of period	$		-		-		-		-		5,367		7,956		-		-
CHANGES IN UNITS:
Beginning units			-		3,000,711		-		5,307,560		-		-		-		-
Units purchased			-		129,744		-		429,881		-		3		-		274
Units redeemed			-		(3,130,455)		-		(5,737,441)		-		(3)		-		(274)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		DVSCS				DCAP				DCAPS				DVDLS
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(715,108)		(621,818)		88,867		215,172		(183,645)		22,064		(15,993)		(10,271)
Realized gain (loss) on investments			(276,231)		(11,286,627)		288,259		(209,369)		(110,160)		(281,883)		(90,792)		(246,444)
Change in unrealized gain (loss) on investments			774,737		26,527,117		1,830,568		3,312,741		4,605,397		4,370,941		24,240		651,736
Reinvested capital gains			180,331		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(36,271)		14,618,672		2,207,694		3,318,544		4,311,592		4,111,122		(82,545)		395,021
Equity transactions:
Purchase payments received from contract owners (note 3)			9,800,455		4,960,112		618,614		548,958		25,092,202		9,263,113		37,029		26,374
Transfers between funds			2,114,625		21,430,252		7,034,816		1,831,544		18,920,480		4,452,593		187,005		311,159
Redemptions (note 3)			(8,229,857)		(5,826,069)		(4,529,712)		(3,760,133)		(3,999,330)		(2,154,277)		(401,589)		(157,176)
Annuity benefits			(2,324)		(4,897)		(6,910)		(5,330)		-		(9,617)		(101)		(122)
Contract maintenance charges (note 2)			(169,159)		(102,963)		(14,563)		(14,828)		(181,858)		(58,217)		(294)		(363)
Contingent deferred sales charges (note 2)			(58,026)		(71,996)		(5,904)		(9,999)		(27,191)		(25,734)		(1,271)		(1,761)
Adjustments to maintain reserves			(1,196)		(521)		12,054		2,418		(770)		722		(69)		(128)
Net equity transactions			3,454,518		20,383,918		3,108,395		(1,407,370)		39,803,533		11,468,583		(179,290)		177,983
Net change in contract owners’ equity			3,418,247		35,002,590		5,316,089		1,911,174		44,115,125		15,579,705		(261,835)		573,004
Contract owners’ equity beginning of period			76,707,320		41,704,730		27,759,350		25,848,176		39,007,042		23,427,337		1,956,247		1,383,243
Contract owners’ equity end of period	$		80,125,567		76,707,320		33,075,439		27,759,350		83,122,167		39,007,042		1,694,412		1,956,247
CHANGES IN UNITS:
Beginning units			3,955,893		2,741,931		1,798,776		1,906,125		2,607,789		1,768,979		146,633		130,684
Units purchased			1,511,539		2,941,522		749,144		306,768		3,784,026		1,307,071		114,410		52,455
Units redeemed			(1,274,178)		(1,727,560)		(556,885)		(414,117)		(1,151,238)		(468,261)		(114,262)		(36,506)
Ending units			4,193,254		3,955,893		1,991,035		1,798,776		5,240,577		2,607,789		146,781		146,633
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		DGI				FCA2S				FQB				FQBS
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(12,613)		(20,322)		(18,918)		(19,881)		470,850		475,406		1,680,237		1,732,004
Realized gain (loss) on investments			559,642		197,362		24,275		38,153		19,409		133,379		294,248		102,628
Change in unrealized gain (loss) on investments			(1,079,186)		2,119,622		(145,242)		191,867		(366,671)		295,834		(1,729,168)		1,639,326
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(532,157)		2,296,662		(139,885)		210,139		123,588		904,619		245,317		3,473,958
Equity transactions:
Purchase payments received from contract owners (note 3)			288,573		374,430		50,248		11,267		274,242		310,910		821,277		854,504
Transfers between funds			(138,603)		192,437		(123,123)		795,984		134,938		1,131,048		(1,854,262)		(335,841)
Redemptions (note 3)			(2,228,669)		(2,379,876)		(460,661)		(424,554)		(2,350,781)		(2,407,565)		(8,450,391)		(6,715,398)
Annuity benefits			(1,035)		(920)		-		-		-		(224)		-		-
Contract maintenance charges (note 2)			(9,826)		(10,993)		(308)		(433)		(4,784)		(5,689)		(14,937)		(15,285)
Contingent deferred sales charges (note 2)			(2,331)		(5,807)		(445)		(5,307)		(5,670)		(3,388)		(23,742)		(89,961)
Adjustments to maintain reserves			(24)		392		(109)		(129)		(80)		(234)		(609)		(643)
Net equity transactions			(2,091,915)		(1,830,337)		(534,398)		376,828		(1,952,135)		(975,142)		(9,522,664)		(6,302,624)
Net change in contract owners’ equity			(2,624,072)		466,325		(674,283)		586,967		(1,828,547)		(70,523)		(9,277,347)		(2,828,666)
Contract owners’ equity beginning of period			15,366,485		14,900,160		2,289,941		1,702,974		12,879,317		12,949,840		50,963,526		53,792,192
Contract owners’ equity end of period	$		12,742,413		15,366,485		1,615,658		2,289,941		11,050,770		12,879,317		41,686,179		50,963,526
CHANGES IN UNITS:
Beginning units			1,135,487		1,288,723		159,179		134,046		917,867		988,389		4,051,047		4,565,974
Units purchased			96,776		79,458		19,274		90,789		145,409		262,273		695,282		873,867
Units redeemed			(250,650)		(232,694)		(58,843)		(65,656)		(282,518)		(332,795)		(1,449,566)		(1,388,794)
Ending units			981,613		1,135,487		119,610		159,179		780,758		917,867		3,296,763		4,051,047
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FC2				FEIP				FVSS2				FHIP
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		(3,168,300)		3,752,131		1,550,903		(105,501)		(169,012)		2,936,013		3,708,653
Realized gain (loss) on investments			-		(69,631,655)		(6,158,939)		(20,414,460)		(1,200,981)		(1,182,072)		(1,128,421)		(1,264,493)
Change in unrealized gain (loss) on investments			-		100,383,820		1,793,459		65,912,237		183,667		4,154,865		(236,192)		4,797,748
Reinvested capital gains			-		23		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		27,583,888		(613,349)		47,048,680		(1,122,815)		2,803,781		1,571,400		7,241,908
Equity transactions:
Purchase payments received from contract owners (note 3)			-		3,115,459		4,700,575		5,754,737		145,427		273,924		(1)		(264)
Transfers between funds			-		(240,940,134)		(6,858,114)		(9,182,266)		(932,918)		(306,786)		(1,656,934)		(1,759,291)
Redemptions (note 3)			-		(20,895,346)		(50,391,145)		(55,327,893)		(2,537,816)		(1,840,149)		(7,409,703)		(9,672,832)
Annuity benefits			-		(25,254)		(119,757)		(131,887)		-		-		(8,073)		(10,064)
Contract maintenance charges (note 2)			-		(69,115)		(194,347)		(220,817)		(1,942)		(2,146)		(31,022)		(35,313)
Contingent deferred sales charges (note 2)			-		(232,230)		(39,836)		(63,970)		(9,243)		(14,717)		(2,178)		(9,034)
Adjustments to maintain reserves			-		(46,000)		5,121		14,092		(1,143)		(1,385)		2,303		661
Net equity transactions			-		(259,092,620)		(52,897,503)		(59,158,004)		(3,337,635)		(1,891,259)		(9,105,608)		(11,486,137)
Net change in contract owners’ equity			-		(231,508,732)		(53,510,852)		(12,109,324)		(4,460,450)		912,522		(7,534,208)		(4,244,229)
Contract owners’ equity beginning of period			-		231,508,732		381,069,585		393,178,909		13,530,923		12,618,401		60,719,243		64,963,472
Contract owners’ equity end of period	$		-		-		327,558,733		381,069,585		9,070,473		13,530,923		53,185,035		60,719,243
CHANGES IN UNITS:
Beginning units			-		14,053,840		9,449,660		11,095,521		670,043		778,358		2,252,355		2,706,774
Units purchased			-		933,909		216,335		218,143		122,585		116,409		-		-
Units redeemed			-		(14,987,749)		(1,520,150)		(1,864,004)		(301,805)		(224,724)		(332,035)		(454,419)
Ending units			-		-		8,145,845		9,449,660		490,823		670,043		1,920,320		2,252,355
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FAMP				FCP				FNRS2				FEI2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		838,178		550,326		-		(4,313,796)		(668,151)		(854,859)		1,343,344		193,759
Realized gain (loss) on investments			565,756		(3,423,574)		-		(18,555,775)		(4,616,316)		(6,920,480)		(3,815,369)		(2,745,307)
Change in unrealized gain (loss) on investments			(7,785,316)		22,330,240		-		68,716,596		(2,120,730)		18,950,653		1,567,029		19,212,224
Reinvested capital gains			726,738		839,890		-		97		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(5,654,644)		20,296,882		-		45,847,122		(7,405,197)		11,175,314		(904,996)		16,660,676
Equity transactions:
Purchase payments received from contract owners (note 3)			1,485,500		2,742,654		-		5,552,767		9,238,333		5,705,524		32,702,178		22,550,845
Transfers between funds			(1,072,877)		(1,014,013)		-		(378,116,736)		9,987,356		(6,463,378)		(849,716)		1,822,660
Redemptions (note 3)			(23,577,395)		(25,602,906)		-		(47,751,851)		(10,539,922)		(7,533,027)		(17,920,413)		(10,765,077)
Annuity benefits			(21,817)		(36,725)		-		(85,742)		(1,657)		(233)		(1,605)		(1,474)
Contract maintenance charges (note 2)			(95,037)		(107,245)		-		(177,024)		(15,977)		(14,783)		(377,245)		(172,506)
Contingent deferred sales charges (note 2)			(15,999)		(10,101)		-		(73,627)		(90,177)		(56,051)		11,854		(111,912)
Adjustments to maintain reserves			2,132		7,038		-		(215,974)		(1,488)		2,083		(6,108)		2,213
Net equity transactions			(23,295,493)		(24,021,298)		-		(420,868,187)		8,576,468		(8,359,865)		13,558,945		13,324,749
Net change in contract owners’ equity			(28,950,137)		(3,724,416)		-		(375,021,065)		1,171,271		2,815,449		12,653,949		29,985,425
Contract owners’ equity beginning of period			171,799,599		175,524,015		-		375,021,065		81,039,205		78,223,756		147,780,198		117,794,773
Contract owners’ equity end of period	$		142,849,462		171,799,599		-		-		82,210,476		81,039,205		160,434,147		147,780,198
CHANGES IN UNITS:
Beginning units			5,144,923		5,946,996		-		12,707,542		4,869,955		5,512,532		9,964,580		8,973,964
Units purchased			104,302		165,488		-		409,619		2,693,772		1,295,583		4,246,051		3,075,775
Units redeemed			(805,560)		(967,561)		-		(13,117,161)		(2,267,615)		(1,938,160)		(3,259,311)		(2,085,159)
Ending units			4,443,665		5,144,923		-		-		5,296,112		4,869,955		10,951,320		9,964,580
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FF10S				FF10S2				FF20S				FF20S2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		34,711		36,803		493,255		452,350		74,792		80,982		2,507,911		1,755,845
Realized gain (loss) on investments			(47,935)		(278,312)		(473,981)		(494,859)		(132,434)		(430,284)		(249,131)		(207,823)
Change in unrealized gain (loss) on investments			(112,430)		741,465		(2,752,125)		6,309,170		(219,877)		1,325,951		(13,474,393)		18,687,982
Reinvested capital gains			27,771		98,549		562,206		1,466,028		36,905		68,157		1,318,347		1,435,518
Net increase (decrease) in contract owners’ equity resulting from operations			(97,883)		598,505		(2,170,645)		7,732,689		(240,614)		1,044,806		(9,897,266)		21,671,522
Equity transactions:
Purchase payments received from contract owners (note 3)			474,351		123,087		33,209,999		19,370,241		527,904		540,800		136,211,288		81,771,325
Transfers between funds			542,711		838,943		(177,232)		10,339,687		1,119,499		1,971,893		7,602,875		15,567,742
Redemptions (note 3)			(1,082,149)		(1,311,392)		(11,639,216)		(7,788,291)		(1,384,874)		(1,308,802)		(13,551,377)		(5,816,996)
Annuity benefits			(9,172)		(8,700)		-		-		-		-		-		-
Contract maintenance charges (note 2)			(2,493)		(2,359)		(495,735)		(231,602)		(4,652)		(4,407)		(1,732,675)		(673,739)
Contingent deferred sales charges (note 2)			(1,108)		(3,490)		(69,650)		(94,512)		(4,527)		(5,025)		(287,904)		(108,273)
Adjustments to maintain reserves			1,364		1,057		(654)		(1,854)		(60)		260		(1,547)		(7,877)
Net equity transactions			(76,496)		(362,854)		20,827,512		21,593,669		253,290		1,194,719		128,240,660		90,732,182
Net change in contract owners’ equity			(174,379)		235,651		18,656,867		29,326,358		12,676		2,239,525		118,343,394		112,403,704
Contract owners’ equity beginning of period			5,488,728		5,253,077		90,382,178		61,055,820		9,603,062		7,363,537		226,550,215		114,146,511
Contract owners’ equity end of period	$		5,314,349		5,488,728		109,039,045		90,382,178		9,615,738		9,603,062		344,893,609		226,550,215
CHANGES IN UNITS:
Beginning units			477,386		508,093		7,420,624		5,580,362		879,170		762,019		18,343,828		10,446,737
Units purchased			117,958		138,863		4,219,745		3,120,875		218,988		310,478		12,611,995		9,141,684
Units redeemed			(124,948)		(169,570)		(2,566,790)		(1,280,613)		(196,162)		(193,327)		(2,285,944)		(1,244,593)
Ending units			470,396		477,386		9,073,579		7,420,624		901,996		879,170		28,669,879		18,343,828
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FF30S				FF30S2				FGOP				FGP
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		51,952		44,859		49,303		30,413		-		(175,200)		(3,535,127)		(3,666,356)
Realized gain (loss) on investments			(223,095)		(482,715)		(818,657)		(678,649)		-		2,696,753		(1,173,028)		(15,781,781)
Change in unrealized gain (loss) on investments			(144,597)		1,171,591		(526,674)		3,123,165		-		322,636		971,173		89,947,399
Reinvested capital gains			21,006		45,140		72,546		156,478		-		-		1,253,598		1,155,600
Net increase (decrease) in contract owners’ equity resulting from operations			(294,734)		778,875		(1,223,482)		2,631,407		-		2,844,189		(2,483,384)		71,654,862
Equity transactions:
Purchase payments received from contract owners (note 3)			639,682		565,208		2,424,041		2,968,511		-		290,616		5,119,757		6,097,660
Transfers between funds			470,807		959,466		1,850,153		157,460		-		(15,267,516)		(2,105,085)		(5,951,204)
Redemptions (note 3)			(592,693)		(968,091)		(2,068,048)		(1,636,027)		-		(2,225,735)		(48,833,620)		(48,615,322)
Annuity benefits			-		-		-		-		-		-		(101,221)		(100,721)
Contract maintenance charges (note 2)			(4,666)		(4,414)		(5,120)		(4,436)		-		(10,619)		(252,064)		(273,092)
Contingent deferred sales charges (note 2)			(2,874)		(10,728)		(26,114)		(18,087)		-		(5,221)		(48,400)		(61,613)
Adjustments to maintain reserves			(71)		1,151		(257)		(457)		-		2,306		6,997		7,465
Net equity transactions			510,185		542,592		2,174,655		1,466,964		-		(17,216,169)		(46,213,636)		(48,896,827)
Net change in contract owners’ equity			215,451		1,321,467		951,173		4,098,371		-		(14,371,980)		(48,697,020)		22,758,035
Contract owners’ equity beginning of period			6,737,911		5,416,444		22,968,325		18,869,954		-		14,371,980		377,094,313		354,336,278
Contract owners’ equity end of period	$		6,953,362		6,737,911		23,919,498		22,968,325		-		-		328,397,293		377,094,313
CHANGES IN UNITS:
Beginning units			640,936		589,970		1,895,831		1,783,182		-		1,657,626		7,616,804		8,786,028
Units purchased			182,726		187,774		521,774		477,279		-		145,970		295,614		232,193
Units redeemed			(134,992)		(136,808)		(351,214)		(364,630)		-		(1,803,596)		(1,232,127)		(1,401,417)
Ending units			688,670		640,936		2,066,391		1,895,831		-		-		6,680,291		7,616,804
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FG2				FHIPR				FIGBS				FIGBP2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(1,128,511)		(739,094)		1,226,818		1,592,266		510,999		621,477		4,820,399		5,419,976
Realized gain (loss) on investments			(2,380,823)		(1,666,959)		2,517,280		3,777,050		336,073		491,823		4,890,312		10,522,262
Change in unrealized gain (loss) on investments			499,281		12,467,308		(3,050,392)		(2,761,427)		(68,689)		467,549		1,164,428		9,738,715
Reinvested capital gains			269,866		176,958		-		-		748,306		325,830		11,376,584		4,715,302
Net increase (decrease) in contract owners’ equity resulting from operations			(2,740,187)		10,238,213		693,706		2,607,889		1,526,689		1,906,679		22,251,723		30,396,255
Equity transactions:
Purchase payments received from contract owners (note 3)			22,667,171		9,721,647		1,093,545		1,040,372		742,600		827,284		39,438,365		40,508,340
Transfers between funds			15,426,580		3,316,106		(805,093)		(63,664)		1,154,537		3,471,056		(37,805,528)		(120,889,695)
Redemptions (note 3)			(8,808,539)		(5,137,585)		(4,028,947)		(3,618,694)		(5,238,408)		(5,407,389)		(52,077,080)		(37,039,755)
Annuity benefits			(2,541)		(2,197)		-		-		(4,711)		(4,658)		(12,927)		(17,271)
Contract maintenance charges (note 2)			(168,201)		(58,419)		(6,930)		(7,075)		(7,915)		(9,111)		(1,458,800)		(1,532,932)
Contingent deferred sales charges (note 2)			(57,518)		(51,166)		(5,867)		(10,592)		(9,296)		(7,785)		(394,334)		(495,177)
Adjustments to maintain reserves			(1,012)		211		(118)		(292)		(161)		(462)		(1,601)		(1,418)
Net equity transactions			29,055,940		7,788,597		(3,753,410)		(2,659,945)		(3,363,354)		(1,131,065)		(52,311,905)		(119,467,908)
Net change in contract owners’ equity			26,315,753		18,026,810		(3,059,704)		(52,056)		(1,836,665)		775,614		(30,060,182)		(89,071,653)
Contract owners’ equity beginning of period			62,853,145		44,826,335		25,100,312		25,152,368		29,628,326		28,852,712		424,843,595		513,915,248
Contract owners’ equity end of period	$		89,168,898		62,853,145		22,040,608		25,100,312		27,791,661		29,628,326		394,783,413		424,843,595
CHANGES IN UNITS:
Beginning units			4,203,897		3,652,787		2,166,797		2,439,833		2,303,690		2,383,390		33,793,486		43,332,353
Units purchased			4,471,418		1,656,436		1,500,256		1,410,293		567,398		889,884		8,867,895		8,850,172
Units redeemed			(2,583,021)		(1,105,326)		(1,813,748)		(1,683,329)		(828,764)		(969,584)		(12,973,326)		(18,389,039)
Ending units			6,092,294		4,203,897		1,853,305		2,166,797		2,042,324		2,303,690		29,688,055		33,793,486
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FMCS				FMC2				FOP				FOPR
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(376,801)		(260,828)		(3,911,084)		(3,178,209)		(1,666)		24,528		(3,918)		16,545
Realized gain (loss) on investments			107,758		(739,010)		(746,414)		(3,955,894)		1,333,032		368,813		(626,677)		(360,401)
Change in unrealized gain (loss) on investments			(3,524,647)		7,173,888		(26,848,523)		58,356,537		(12,839,256)		6,620,606		(4,791,201)		3,609,263
Reinvested capital gains			47,717		87,760		446,500		710,996		123,690		124,665		58,558		59,679
Net increase (decrease) in contract owners’ equity resulting from operations			(3,745,973)		6,261,810		(31,059,521)		51,933,430		(11,384,200)		7,138,612		(5,363,238)		3,325,086
Equity transactions:
Purchase payments received from contract owners (note 3)			903,305		1,069,001		42,458,799		33,889,981		(1,426)		7		1,184,907		1,263,900
Transfers between funds			(3,036,006)		9,609,496		(14,591,118)		11,719,073		(1,420,251)		(1,458,578)		(1,170,848)		(1,480,423)
Redemptions (note 3)			(4,359,851)		(3,954,906)		(27,644,953)		(19,951,092)		(7,892,930)		(8,376,602)		(5,184,489)		(4,766,393)
Annuity benefits			(3,447)		(586)		(15,970)		(12,743)		(10,007)		(12,537)		(1,713)		(1,861)
Contract maintenance charges (note 2)			(11,338)		(9,428)		(604,425)		(316,759)		(40,284)		(46,317)		(11,661)		(13,895)
Contingent deferred sales charges (note 2)			(11,075)		(9,282)		(251,942)		(277,132)		(2,030)		(3,041)		(12,640)		(15,136)
Adjustments to maintain reserves			1,196		(3,682)		1,959		81		358		4,210		194		3,047
Net equity transactions			(6,517,216)		6,700,613		(647,650)		25,051,409		(9,366,570)		(9,892,858)		(5,196,250)		(5,010,761)
Net change in contract owners’ equity			(10,263,189)		12,962,423		(31,707,171)		76,984,839		(20,750,770)		(2,754,246)		(10,559,488)		(1,685,675)
Contract owners’ equity beginning of period			35,188,523		22,226,100		264,942,872		187,958,033		70,400,712		73,154,958		33,512,276		35,197,951
Contract owners’ equity end of period	$		24,925,334		35,188,523		233,235,701		264,942,872		49,649,942		70,400,712		22,952,788		33,512,276
CHANGES IN UNITS:
Beginning units			2,988,963		2,397,217		10,137,469		9,082,067		2,742,146		3,184,055		2,228,091		2,611,534
Units purchased			742,257		1,400,540		3,372,714		3,478,637		(67)		-		170,497		221,624
Units redeemed			(1,329,632)		(808,794)		(3,368,355)		(2,423,235)		(376,745)		(441,909)		(532,448)		(605,067)
Ending units			2,401,588		2,988,963		10,141,828		10,137,469		2,365,334		2,742,146		1,866,140		2,228,091
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FO2				FO2R				FVSS				FTVIS2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(11,392)		(10,238)		(150,229)		(155,288)		(35,629)		(68,031)		5,635,603		5,906,513
Realized gain (loss) on investments			36,814		(35,698)		(4,155,340)		(5,340,828)		687,635		(1,245,208)		(2,972,293)		(2,825,865)
Change in unrealized gain (loss) on investments			(573,548)		435,592		(6,494,327)		11,614,533		(1,295,073)		2,827,530		(1,686,046)		9,287,109
Reinvested capital gains			7,011		6,998		108,894		107,480		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(541,115)		396,654		(10,691,002)		6,225,897		(643,067)		1,514,291		977,264		12,367,757
Equity transactions:
Purchase payments received from contract owners (note 3)			-		(17)		11,247,420		8,057,171		124,631		214,711		14,661,470		10,337,411
Transfers between funds			(78,252)		(92,493)		(1,957,303)		(2,099,503)		(674,304)		447,023		4,227,422		5,133,496
Redemptions (note 3)			(867,520)		(293,688)		(5,549,915)		(4,821,511)		(1,045,709)		(1,202,523)		(16,432,264)		(12,244,742)
Annuity benefits			-		-		(1,092)		(6,611)		-		(1,376)		(25,365)		(19,269)
Contract maintenance charges (note 2)			(426)		(479)		(144,003)		(81,431)		(3,083)		(3,639)		(13,935)		(13,546)
Contingent deferred sales charges (note 2)			(805)		(1,142)		(51,729)		(82,598)		(2,028)		(2,701)		(85,474)		(119,936)
Adjustments to maintain reserves			(138)		(57)		(1,170)		(3,232)		22		(97)		2,313		(966)
Net equity transactions			(947,141)		(387,876)		3,542,208		962,285		(1,600,471)		(548,602)		2,334,167		3,072,448
Net change in contract owners’ equity			(1,488,256)		8,778		(7,148,794)		7,188,182		(2,243,538)		965,689		3,311,431		15,440,205
Contract owners’ equity beginning of period			3,912,132		3,903,354		60,204,442		53,016,260		7,964,920		6,999,231		127,811,632		112,371,427
Contract owners’ equity end of period	$		2,423,876		3,912,132		53,055,648		60,204,442		5,721,382		7,964,920		131,123,063		127,811,632
CHANGES IN UNITS:
Beginning units			198,160		224,881		4,618,811		4,511,884		540,940		592,992		10,974,594		10,706,434
Units purchased			20,459		25,489		1,798,978		1,730,747		71,862		249,001		2,876,195		2,809,474
Units redeemed			(69,017)		(52,210)		(1,419,691)		(1,623,820)		(180,703)		(301,053)		(2,683,639)		(2,541,314)
Ending units			149,602		198,160		4,998,098		4,618,811		432,099		540,940		11,167,150		10,974,594
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		FTVRD2				FTVSV2				FTVDM3				TIF2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(32,734)		(7,200)		(1,443,578)		(1,568,786)		(170,829)		17,314		10,061		20,490
Realized gain (loss) on investments			1,514,217		(274,493)		12,258,988		6,312,921		(2,498,885)		(5,077,579)		163,587		23,162
Change in unrealized gain (loss) on investments			1,090,945		11,999,565		(16,606,531)		32,414,932		(3,115,486)		9,737,861		(639,255)		280,684
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			2,572,428		11,717,872		(5,791,121)		37,159,067		(5,785,200)		4,677,596		(465,607)		324,336
Equity transactions:
Purchase payments received from contract owners (note 3)			696,473		760,707		12,952,878		10,840,678		489,824		817,893		-		2,085
Transfers between funds			(1,644,548)		45,097		(3,952,355)		(50,543,704)		(522,461)		(3,317,708)		(161,355)		(237,068)
Redemptions (note 3)			(13,391,190)		(9,210,237)		(18,480,749)		(13,436,969)		(3,472,143)		(3,370,005)		(1,209,944)		(397,089)
Annuity benefits			(10,552)		(6,817)		(7,838)		(6,021)		-		-		(311)		(360)
Contract maintenance charges (note 2)			(7,611)		(8,840)		(394,940)		(464,955)		(4,255)		(5,017)		(360)		(401)
Contingent deferred sales charges (note 2)			(51,403)		(84,347)		(123,239)		(186,998)		(21,146)		(24,795)		(2,035)		(4,627)
Adjustments to maintain reserves			(908)		8		(847)		7,250		(784)		2,829		(88)		(99)
Net equity transactions			(14,409,739)		(8,504,429)		(10,007,090)		(53,790,719)		(3,530,965)		(5,896,803)		(1,374,093)		(637,559)
Net change in contract owners’ equity			(11,837,311)		3,213,443		(15,798,211)		(16,631,652)		(9,316,165)		(1,219,207)		(1,839,700)		(313,223)
Contract owners’ equity beginning of period			72,181,881		68,968,438		165,737,199		182,368,851		35,662,153		36,881,360		5,314,465		5,627,688
Contract owners’ equity end of period	$		60,344,570		72,181,881		149,938,988		165,737,199		26,345,988		35,662,153		3,474,765		5,314,465
CHANGES IN UNITS:
Beginning units			4,554,255		5,182,224		7,692,944		10,676,595		1,928,435		2,307,480		264,742		300,587
Units purchased			705,267		604,527		2,550,062		2,202,608		311,944		486,051		20,816		18,837
Units redeemed			(1,621,899)		(1,232,496)		(2,888,831)		(5,186,259)		(521,395)		(865,096)		(89,299)		(54,682)
Ending units			3,637,623		4,554,255		7,354,175		7,692,944		1,718,984		1,928,435		196,259		264,742
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		TIF3				FTVGI3				FTVFA2				AMTB
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		76,766		27,951		4,551,783		(110,061)		(310,427)		101,973		3,714,429		7,600,716
Realized gain (loss) on investments			509,671		(2,834,134)		1,453,221		873,615		790,311		356,290		(6,287,137)		(12,374,159)
Change in unrealized gain (loss) on investments			(9,760,218)		8,258,267		(9,649,489)		9,212,709		(1,269,714)		992,127		(30,885)		13,669,559
Reinvested capital gains			-		-		717,904		217,667		-		1,277		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(9,173,781)		5,452,084		(2,926,581)		10,193,930		(789,830)		1,451,667		(2,603,593)		8,896,116
Equity transactions:
Purchase payments received from contract owners (note 3)			1,055,095		1,542,319		16,249,940		6,784,034		5,571,187		5,868,945		12,662,100		13,480,933
Transfers between funds			(1,453,018)		(4,298,679)		2,805,760		17,570,913		1,022,679		754,855		(9,337,382)		(61,267,802)
Redemptions (note 3)			(7,582,065)		(6,354,505)		(12,747,147)		(9,080,254)		(1,010,480)		(2,955,036)		(29,093,636)		(22,212,629)
Annuity benefits			(2,410)		(2,495)		(20,543)		(15,955)		-		-		(56,488)		(110,652)
Contract maintenance charges (note 2)			(210,458)		(202,972)		(12,403)		(11,515)		(1,652)		(1,095)		(547,113)		(622,650)
Contingent deferred sales charges (note 2)			(52,615)		(82,895)		(48,687)		(54,012)		(4,108)		(2,459)		(171,683)		(212,614)
Adjustments to maintain reserves			(593)		2,058		(526)		(12,996)		(328)		(1,772)		(2,277)		(1,486)
Net equity transactions			(8,246,064)		(9,397,169)		6,226,394		15,180,215		5,577,298		3,663,438		(26,546,479)		(70,946,900)
Net change in contract owners’ equity			(17,419,845)		(3,945,085)		3,299,813		25,374,145		4,787,468		5,115,105		(29,150,072)		(62,050,784)
Contract owners’ equity beginning of period			87,868,308		91,813,393		103,437,839		78,063,694		16,874,811		11,759,706		200,545,960		262,596,744
Contract owners’ equity end of period	$		70,448,463		87,868,308		106,737,652		103,437,839		21,662,279		16,874,811		171,395,888		200,545,960
CHANGES IN UNITS:
Beginning units			6,154,147		6,859,765		6,305,385		5,360,877		1,840,165		1,391,741		18,038,619		24,900,539
Units purchased			657,527		657,299		2,441,844		2,422,334		1,066,363		986,938		4,081,983		4,353,798
Units redeemed			(1,198,476)		(1,362,917)		(2,099,093)		(1,477,826)		(468,514)		(538,514)		(6,767,918)		(11,215,718)
Ending units			5,613,198		6,154,147		6,648,136		6,305,385		2,438,014		1,840,165		15,352,684		18,038,619
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		AMTG				AMGP				AMINS				AMTP
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(193)		(232)		-		-		(7)		(3)		(310)		(137)
Realized gain (loss) on investments			6,699		17,863		-		-		(522)		(95)		5,416		452
Change in unrealized gain (loss) on investments			(6,526)		(7,856)		-		-		-		(1)		(6,876)		6,082
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(20)		9,775		-		-		(529)		(99)		(1,770)		6,397
Equity transactions:
Purchase payments received from contract owners (note 3)			(719)		(166)		-		(8)		1,921		48,136		(7,448)		(36,937)
Transfers between funds			841		(129)		-		9		(1,175)		(40,791)		(24,671)		24,559
Redemptions (note 3)			(8,398)		7,278		-		-		(112)		(6,608)		(6)		39,552
Annuity benefits			(5,421)		(7,871)		-		-		-		-		(2,893)		(2,578)
Contract maintenance charges (note 2)			(49)		(207)		-		-		(105)		(643)		(12)		23
Contingent deferred sales charges (note 2)			-		1,091		-		-		-		-		-		(24)
Adjustments to maintain reserves			1,376		(4,265)		-		(1)		-		5		951		813
Net equity transactions			(12,370)		(4,269)		-		-		529		99		(34,079)		25,408
Net change in contract owners’ equity			(12,390)		5,506		-		-		-		-		(35,849)		31,805
Contract owners’ equity beginning of period			25,320		19,814		-		-		-		-		53,055		21,250
Contract owners’ equity end of period	$		12,930		25,320		-		-		-		-		17,206		53,055
CHANGES IN UNITS:
Beginning units			153		12		-		-		-		-		999		-
Units purchased			-		146		-		3		2,240		5,556		1		2,459
Units redeemed			(148)		(5)		-		(3)		(2,240)		(5,556)		(1,000)		(1,460)
Ending units			5		153		-		-		-		-		-		999
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		AMRS				AMFAS				AMSRS				OVMS
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		-		(82,712)		(62,280)		(363,459)		(409,814)		468,616		48,938
Realized gain (loss) on investments			-		-		728,680		(728,803)		(832,132)		(1,214,608)		(1,167,336)		(3,653,058)
Change in unrealized gain (loss) on investments			-		-		(869,758)		1,375,485		(354,006)		7,053,405		540,337		8,793,270
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		-		(223,790)		584,402		(1,549,597)		5,428,983		(158,383)		5,189,150
Equity transactions:
Purchase payments received from contract owners (note 3)			-		8,294		103,795		114,716		718,330		799,156		398,729		791,672
Transfers between funds			-		8,417		(919,169)		1,998,037		158,409		1,795,865		(939,428)		(1,703,465)
Redemptions (note 3)			-		(16,711)		(957,732)		(556,345)		(4,052,911)		(2,665,073)		(6,426,728)		(7,162,615)
Annuity benefits			-		-		-		-		(7,046)		(2,682)		(12,018)		(8,391)
Contract maintenance charges (note 2)			-		-		(1,466)		(1,311)		(10,322)		(10,796)		(25,683)		(30,250)
Contingent deferred sales charges (note 2)			-		-		(2,207)		(2,005)		(24,315)		(25,075)		(7,243)		(6,203)
Adjustments to maintain reserves			-		-		(307)		(292)		6,944		3,944		(271)		(4,363)
Net equity transactions			-		-		(1,777,086)		1,552,800		(3,210,911)		(104,661)		(7,012,642)		(8,123,615)
Net change in contract owners’ equity			-		-		(2,000,876)		2,137,202		(4,760,508)		5,324,322		(7,171,025)		(2,934,465)
Contract owners’ equity beginning of period			-		-		6,223,316		4,086,114		32,348,075		27,023,753		48,048,880		50,983,345
Contract owners’ equity end of period	$		-		-		4,222,440		6,223,316		27,587,567		32,348,075		40,877,855		48,048,880
CHANGES IN UNITS:
Beginning units			-		-		480,243		371,443		2,033,231		2,058,008		2,027,729		2,404,729
Units purchased			-		1,657		450,321		297,945		415,960		487,146		27,873		43,597
Units redeemed			-		(1,657)		(595,245)		(189,145)		(644,674)		(511,923)		(317,748)		(420,597)
Ending units			-		-		335,319		480,243		1,804,517		2,033,231		1,737,854		2,027,729
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		OVCAFS				OVGR				OVB				OVGS3
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		(544,386)		-		(458,008)		1,791,960		219,581		(5,284)		85,080
Realized gain (loss) on investments			-		2,014,524		-		5,202,460		(3,308,468)		(3,620,686)		1,249,806		556,222
Change in unrealized gain (loss) on investments			-		541,792		-		(2,127,409)		4,069,721		7,422,046		(6,641,561)		7,723,897
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		2,011,930		-		2,617,043		2,553,213		4,020,941		(5,397,039)		8,365,199
Equity transactions:
Purchase payments received from contract owners (note 3)			-		651,219		-		947,884		559,852		701,672		2,422,146		2,527,645
Transfers between funds			-		(38,330,419)		-		(44,842,183)		(546,661)		(1,006,520)		(1,254,206)		(1,958,377)
Redemptions (note 3)			-		(4,412,489)		-		(6,011,453)		(6,650,841)		(6,039,727)		(10,907,147)		(9,776,125)
Annuity benefits			-		-		-		(15,656)		(8,726)		(8,498)		(10,229)		(10,417)
Contract maintenance charges (note 2)			-		(15,047)		-		(30,536)		(19,464)		(22,526)		(24,172)		(27,637)
Contingent deferred sales charges (note 2)			-		(52,899)		-		(15,978)		(10,633)		(8,788)		(34,522)		(32,346)
Adjustments to maintain reserves			-		248		-		(81,119)		3,028		2,603		7		2,629
Net equity transactions			-		(42,159,387)		-		(50,049,041)		(6,673,445)		(6,381,784)		(9,808,123)		(9,274,628)
Net change in contract owners’ equity			-		(40,147,457)		-		(47,431,998)		(4,120,232)		(2,360,843)		(15,205,162)		(909,429)
Contract owners’ equity beginning of period			-		40,147,457		-		47,431,998		40,248,584		42,609,427		65,157,194		66,066,623
Contract owners’ equity end of period	$		-		-		-		-		36,128,352		40,248,584		49,952,032		65,157,194
CHANGES IN UNITS:
Beginning units			-		3,035,663		-		3,323,768		2,443,496		2,839,959		3,037,983		3,525,444
Units purchased			-		255,464		-		97,338		106,922		151,435		243,705		252,926
Units redeemed			-		(3,291,127)		-		(3,421,106)		(494,684)		(547,898)		(708,920)		(740,387)
Ending units			-		-		-		-		2,055,734		2,443,496		2,572,768		3,037,983
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		OVGS4				OVGS				OVGSS				OVHI3
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(289,026)		(162,565)		(28,433)		160,617		(28,966)		(15,259)		47,513		22,999
Realized gain (loss) on investments			(593,653)		(1,000,580)		9,155,029		8,201,720		277,223		144,851		10,667		90,896
Change in unrealized gain (loss) on investments			(6,028,612)		9,908,518		(19,988,626)		8,742,885		(1,062,068)		1,187,915		(79,705)		(24,700)
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(6,911,291)		8,745,373		(10,862,030)		17,105,222		(813,811)		1,317,507		(21,525)		89,195
Equity transactions:
Purchase payments received from contract owners (note 3)			5,312,978		3,648,389		3,819		60		44		772		37,379		47,955
Transfers between funds			(1,193,244)		(2,312,676)		(3,571,171)		(3,887,700)		(341,334)		(680,275)		35,216		103,749
Redemptions (note 3)			(8,007,480)		(5,551,510)		(14,592,300)		(16,389,889)		(1,749,994)		(1,582,132)		(125,397)		(65,716)
Annuity benefits			(4,217)		(591)		(31,173)		(32,381)		-		-		-		-
Contract maintenance charges (note 2)			(8,438)		(8,778)		(55,550)		(63,811)		(982)		(1,065)		(273)		(305)
Contingent deferred sales charges (note 2)			(62,164)		(60,821)		(5,031)		(8,804)		(983)		(12,386)		(166)		(40)
Adjustments to maintain reserves			4,842		249		644		(24,402)		(233)		228		(45)		(61)
Net equity transactions			(3,957,723)		(4,285,738)		(18,250,762)		(20,406,927)		(2,093,482)		(2,274,858)		(53,286)		85,582
Net change in contract owners’ equity			(10,869,014)		4,459,635		(29,112,792)		(3,301,705)		(2,907,293)		(957,351)		(74,811)		174,777
Contract owners’ equity beginning of period			71,541,253		67,081,618		131,498,332		134,800,037		10,268,381		11,225,732		557,028		382,251
Contract owners’ equity end of period	$		60,672,239		71,541,253		102,385,540		131,498,332		7,361,088		10,268,381		482,217		557,028
CHANGES IN UNITS:
Beginning units			4,965,773		5,304,073		3,271,262		3,835,051		466,144		584,534		196,791		153,077
Units purchased			880,059		572,329		77		-		45,732		44,325		124,033		367,487
Units redeemed			(1,180,365)		(910,629)		(455,229)		(563,789)		(143,784)		(162,715)		(145,061)		(323,773)
Ending units			4,665,467		4,965,773		2,816,110		3,271,262		368,092		466,144		175,763		196,791
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		OVHI4				OVHI				OVHIS				OVGI
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		586,860		274,978		4,049		2,246		248,271		161,244		(53,651)		(23,433)
Realized gain (loss) on investments			596,792		804,994		(81,366)		(4,627)		(2,885,033)		(2,094,904)		140,383		(87,059)
Change in unrealized gain (loss) on investments			(1,488,525)		(217,501)		77,454		8,272		2,539,282		2,350,135		(263,162)		1,818,433
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(304,873)		862,471		137		5,891		(97,480)		416,475		(176,430)		1,707,941
Equity transactions:
Purchase payments received from contract owners (note 3)			314,199		338,491		-		-		75		3		330,574		428,671
Transfers between funds			863,308		156,026		(514)		(148)		(323,301)		(247,613)		(155,476)		(811,237)
Redemptions (note 3)			(1,269,909)		(888,426)		(25,838)		(705)		(537,967)		(355,029)		(1,710,986)		(2,222,224)
Annuity benefits			-		-		-		-		(132)		(879)		(10,101)		(3,477)
Contract maintenance charges (note 2)			(747)		(724)		(13)		(13)		(513)		(666)		(8,047)		(9,287)
Contingent deferred sales charges (note 2)			(7,676)		(5,910)		(9)		-		(1,211)		(3,592)		(4,289)		(11,082)
Adjustments to maintain reserves			(250)		(275)		(13)		(16)		(298)		(352)		198		(5,509)
Net equity transactions			(101,075)		(400,818)		(26,387)		(882)		(863,347)		(608,128)		(1,558,127)		(2,634,145)
Net change in contract owners’ equity			(405,948)		461,653		(26,250)		5,009		(960,827)		(191,653)		(1,734,557)		(926,204)
Contract owners’ equity beginning of period			7,562,792		7,101,139		49,546		44,537		3,457,324		3,648,977		12,958,985		13,885,189
Contract owners’ equity end of period	$		7,156,844		7,562,792		23,296		49,546		2,496,497		3,457,324		11,224,428		12,958,985
CHANGES IN UNITS:
Beginning units			2,685,043		2,841,679		16,199		16,502		856,240		1,019,129		1,392,924		1,710,096
Units purchased			1,826,898		1,605,026		-		-		107,168		44,162		128,555		127,262
Units redeemed			(1,879,310)		(1,761,662)		(8,318)		(303)		(321,174)		(207,051)		(297,877)		(444,434)
Ending units			2,632,631		2,685,043		7,881		16,199		642,234		856,240		1,223,602		1,392,924
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		OVGIS				OVSC				OVSCS				OVAG
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(2,581,367)		(2,439,041)		(30,238)		(24,629)		(551,854)		(449,933)		(148,752)		(110,071)
Realized gain (loss) on investments			(10,516,619)		(42,293,327)		582,351		385,397		2,622,797		1,139,444		(121,631)		(242,080)
Change in unrealized gain (loss) on investments			9,101,558		79,731,748		(782,465)		405,776		(3,413,977)		7,061,131		(102,654)		2,324,724
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(3,996,428)		34,999,380		(230,352)		766,544		(1,343,034)		7,750,642		(373,037)		1,972,573
Equity transactions:
Purchase payments received from contract owners (note 3)			12,706,693		11,091,864		212,703		154,475		8,540,960		5,488,712		346,842		315,046
Transfers between funds			(11,850,584)		(82,185,141)		515,063		(518,076)		940,489		348,812		1,955,345		383,865
Redemptions (note 3)			(28,437,308)		(20,982,246)		(553,693)		(815,706)		(4,122,193)		(3,037,218)		(1,579,753)		(1,279,235)
Annuity benefits			(1,497)		(1,326)		(468)		(418)		(1,649)		(196)		-		-
Contract maintenance charges (note 2)			(785,314)		(1,003,204)		(1,401)		(1,472)		(99,384)		(52,301)		(7,690)		(7,732)
Contingent deferred sales charges (note 2)			(223,529)		(306,102)		(1,503)		(1,135)		(30,136)		(30,891)		(4,498)		(7,480)
Adjustments to maintain reserves			(1,037)		6,301		(106)		(937)		2,128		(1,545)		187		935
Net equity transactions			(28,592,576)		(93,379,854)		170,595		(1,183,269)		5,230,215		2,715,373		710,433		(594,601)
Net change in contract owners’ equity			(32,589,004)		(58,380,474)		(59,757)		(416,725)		3,887,181		10,466,015		337,396		1,377,972
Contract owners’ equity beginning of period			248,931,820		307,312,294		4,067,764		4,484,489		46,158,296		35,692,281		9,846,584		8,468,612
Contract owners’ equity end of period	$		216,342,816		248,931,820		4,008,007		4,067,764		50,045,477		46,158,296		10,183,980		9,846,584
CHANGES IN UNITS:
Beginning units			17,274,630		24,250,057		411,283		552,543		2,225,257		2,081,552		1,833,474		1,983,089
Units purchased			2,902,651		3,504,682		259,814		136,432		968,998		634,593		1,209,307		306,299
Units redeemed			(4,889,352)		(10,480,109)		(250,978)		(277,692)		(660,301)		(490,888)		(1,142,164)		(455,914)
Ending units			15,287,929		17,274,630		420,119		411,283		2,533,954		2,225,257		1,900,617		1,833,474
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		PMVFAD				PMVLAD				PMVTRD				PVGIB
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		88,420		(27,682)		(129,068)		(303,815)		245,053		-		(7,543)		267
Realized gain (loss) on investments			610,773		238,768		485,376		638,544		(2,822)		-		(606,386)		(531,838)
Change in unrealized gain (loss) on investments			425,383		939,618		(2,419,505)		5,115,871		(970,242)		-		437,749		925,398
Reinvested capital gains			73,207		141,853		-		660,860		835,917		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			1,197,783		1,292,557		(2,063,197)		6,111,460		107,906		-		(176,180)		393,827
Equity transactions:
Purchase payments received from contract owners (note 3)			4,148,576		5,563,155		71,828,103		50,786,258		43,402,248		-		25,101		70,830
Transfers between funds			2,732,798		4,982,988		14,125,276		8,823,015		22,982,635		-		(84,556)		(158,372)
Redemptions (note 3)			(2,655,456)		(1,324,483)		(26,147,617)		(14,009,708)		(1,119,580)		-		(709,127)		(513,468)
Annuity benefits			-		-		(572)		(543)		-		-		-		-
Contract maintenance charges (note 2)			(1,604)		(1,201)		(913,678)		(591,612)		(27,481)		-		(554)		(617)
Contingent deferred sales charges (note 2)			(7,003)		(8,038)		(199,377)		(187,479)		(8,887)		-		(2,302)		(3,869)
Adjustments to maintain reserves			(1,339)		344		(5,964)		3,267		(9,593)		-		(259)		52
Net equity transactions			4,215,972		9,212,765		58,686,171		44,823,198		65,219,342		-		(771,697)		(605,444)
Net change in contract owners’ equity			5,413,755		10,505,322		56,622,974		50,934,658		65,327,248		-		(947,877)		(211,617)
Contract owners’ equity beginning of period			17,556,731		7,051,409		203,962,596		153,027,938		-		-		3,507,688		3,719,305
Contract owners’ equity end of period	$		22,970,486		17,556,731		260,585,570		203,962,596		65,327,248		-		2,559,811		3,507,688
CHANGES IN UNITS:
Beginning units			1,500,572		649,344		18,042,359		14,013,653		-		-		275,411		329,454
Units purchased			1,265,349		1,621,274		13,186,257		11,267,961		7,565,330		-		52,419		34,597
Units redeemed			(928,168)		(770,046)		(8,056,947)		(7,239,255)		(1,025,009)		-		(114,832)		(88,640)
Ending units			1,837,753		1,500,572		23,171,669		18,042,359		6,540,321		-		212,998		275,411
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		PVTIGB				PVTVB				AVBV2				AVCA2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		10,953		13,592		(59,022)		(11,210)		(63)		(122)		(112,786)		(83,421)
Realized gain (loss) on investments			(32,882)		(25,323)		379,283		175,040		672		717		(114,742)		(440,367)
Change in unrealized gain (loss) on investments			(67,628)		58,937		(1,159,581)		433,795		(531)		(175)		(401,054)		1,408,817
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(89,557)		47,206		(839,320)		597,625		78		420		(628,582)		885,029
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		1,816		133,759		39		(168)		81,949		98,420
Transfers between funds			(31,881)		(23,220)		277,956		825,860		(39)		(4,729)		(106,757)		(467,154)
Redemptions (note 3)			(137,736)		(78,144)		(521,357)		(429,996)		-		5,141		(1,058,709)		(826,371)
Annuity benefits			-		-		-		-		(4,779)		(4,784)		(1,230)		(1,179)
Contract maintenance charges (note 2)			(82)		(89)		(470)		(458)		-		(1)		(2,531)		(2,656)
Contingent deferred sales charges (note 2)			(16)		(938)		(1,159)		(4,323)		-		-		(5,308)		(8,629)
Adjustments to maintain reserves			(67)		(55)		(110)		(998)		15		164		(384)		(463)
Net equity transactions			(169,782)		(102,446)		(243,324)		523,844		(4,764)		(4,377)		(1,092,970)		(1,208,032)
Net change in contract owners’ equity			(259,339)		(55,240)		(1,082,644)		1,121,469		(4,686)		(3,957)		(1,721,552)		(323,003)
Contract owners’ equity beginning of period			626,033		681,273		3,997,037		2,875,568		8,794		12,751		7,431,040		7,754,043
Contract owners’ equity end of period	$		366,694		626,033		2,914,393		3,997,037		4,108		8,794		5,709,488		7,431,040
CHANGES IN UNITS:
Beginning units			39,549		46,786		248,463		213,154		-		-		579,187		687,506
Units purchased			1,067		3,711		137,865		143,627		(159)		6		92,123		99,289
Units redeemed			(12,279)		(10,948)		(164,600)		(108,318)		159		(6)		(180,480)		(207,608)
Ending units			28,337		39,549		221,728		248,463		-		-		490,830		579,187
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		AVCD2				VYDS				TRBCG2				TREI2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(425,704)		(332,638)		(3,072)		(3,309)		-		(570,283)		-		(203,552)
Realized gain (loss) on investments			(4,005,304)		(2,174,243)		(57,508)		(25,447)		-		6,828,427		-		(6,757,262)
Change in unrealized gain (loss) on investments			2,139,793		5,734,180		16,550		77,984		-		(1,858,084)		-		14,634,695
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(2,291,215)		3,227,299		(44,030)		49,228		-		4,400,060		-		7,673,881
Equity transactions:
Purchase payments received from contract owners (note 3)			4,465,249		3,153,675		26,609		9,407		-		649,103		-		1,181,314
Transfers between funds			220,884		(730,703)		(102,794)		(6,307)		-		(38,344,020)		-		(78,102,692)
Redemptions (note 3)			(2,512,531)		(2,013,879)		(58,353)		(57,213)		-		(4,256,971)		-		(5,352,320)
Annuity benefits			-		-		-		-		-		(2,839)		-		(2,957)
Contract maintenance charges (note 2)			(73,499)		(40,587)		(135)		(143)		-		(33,065)		-		(118,410)
Contingent deferred sales charges (note 2)			(28,125)		(23,657)		(27)		(34)		-		(60,378)		-		(63,531)
Adjustments to maintain reserves			(734)		(1,336)		(7)		(14)		-		10,273		-		(1,513)
Net equity transactions			2,071,244		343,513		(134,707)		(54,304)		-		(42,037,897)		-		(82,460,109)
Net change in contract owners’ equity			(219,971)		3,570,812		(178,737)		(5,076)		-		(37,637,837)		-		(74,786,228)
Contract owners’ equity beginning of period			23,011,080		19,440,268		526,739		531,815		-		37,637,837		-		74,786,228
Contract owners’ equity end of period	$		22,791,109		23,011,080		348,002		526,739		-		-		-		-
CHANGES IN UNITS:
Beginning units			1,298,000		1,278,768		38,329		43,065		-		3,605,643		-		7,776,288
Units purchased			846,862		383,994		2,805		1,032		-		1,421,865		-		869,112
Units redeemed			(730,334)		(364,762)		(13,692)		(5,768)		-		(5,027,508)		-		(8,645,400)
Ending units			1,414,528		1,298,000		27,442		38,329		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		TRHS2				TRLT2				VWBFR				VWBF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(205,865)		(14,972)		-		2		398,577		148,817		799,031		299,117
Realized gain (loss) on investments			191,366		(4,892)		-		-		(16,148)		(33,954)		(112,445)		(119,580)
Change in unrealized gain (loss) on investments			(811,736)		306,444		-		-		(133,246)		190,809		(151,075)		428,734
Reinvested capital gains			-		-		-		-		121,547		-		243,995		-
Net increase (decrease) in contract owners’ equity resulting from operations			(826,235)		286,580		-		2		370,730		305,672		779,506		608,271
Equity transactions:
Purchase payments received from contract owners (note 3)			3,367,389		690,956		-		(365)		167,392		112,215		13,537		(68)
Transfers between funds			22,636,118		2,298,567		-		893		344,874		(329,249)		(302,294)		(198,382)
Redemptions (note 3)			(1,226,618)		(97,000)		-		(548)		(1,032,678)		(752,131)		(1,346,118)		(1,465,294)
Annuity benefits			-		-		-		-		-		-		(3,534)		(2,395)
Contract maintenance charges (note 2)			(1,538)		(100)		-		6		(1,582)		(1,852)		(6,255)		(7,162)
Contingent deferred sales charges (note 2)			(8,818)		(2,377)		-		-		(547)		(1,736)		(215)		(315)
Adjustments to maintain reserves			(752)		(119)		-		1		(1,034)		(9,094)		934		969
Net equity transactions			24,765,781		2,889,927		-		(13)		(523,575)		(981,847)		(1,643,945)		(1,672,647)
Net change in contract owners’ equity			23,939,546		3,176,507		-		(11)		(152,845)		(676,175)		(864,439)		(1,064,376)
Contract owners’ equity beginning of period			3,176,507		-		-		11		5,983,174		6,659,349		12,284,956		13,349,332
Contract owners’ equity end of period	$		27,116,053		3,176,507		-		-		5,830,329		5,983,174		11,420,517		12,284,956
CHANGES IN UNITS:
Beginning units			301,680		-		-		1		437,415		509,578		511,066		581,103
Units purchased			3,364,199		389,912		-		276		89,462		53,436		-		-
Units redeemed			(1,296,951)		(88,232)		-		(277)		(127,502)		(125,599)		(65,143)		(70,037)
Ending units			2,368,928		301,680		-		-		399,375		437,415		445,923		511,066
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		VWEMR				VWEM				VWHAR				VWHA
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(11,913)		(138,158)		(45,550)		(159,116)		(242,307)		(360,401)		(32,427)		(286,967)
Realized gain (loss) on investments			1,458,164		(1,653,517)		(2,137,349)		(1,847,822)		(358,911)		(481,359)		2,234,334		3,549,813
Change in unrealized gain (loss) on investments			(6,253,902)		6,149,883		(3,557,569)		7,028,655		(12,271,602)		11,218,034		(8,124,985)		4,258,555
Reinvested capital gains			-		-		-		-		674,581		-		407,783		-
Net increase (decrease) in contract owners’ equity resulting from operations			(4,807,651)		4,358,208		(5,740,468)		5,021,717		(12,198,239)		10,376,274		(5,515,295)		7,521,401
Equity transactions:
Purchase payments received from contract owners (note 3)			617,855		644,719		-		(15)		11,142,816		5,012,352		1,406		22
Transfers between funds			(5,284,411)		918,872		(1,046,520)		(598,977)		8,050,481		11,771,600		(819,801)		(1,128,234)
Redemptions (note 3)			(2,461,309)		(2,523,622)		(2,366,960)		(2,332,627)		(6,217,849)		(4,569,271)		(2,636,150)		(5,195,002)
Annuity benefits			(4,040)		(3,995)		(6,448)		(7,890)		(6,032)		(5,213)		(3,053)		(3,352)
Contract maintenance charges (note 2)			(5,154)		(6,087)		(10,017)		(11,632)		(13,198)		(11,112)		(13,419)		(14,259)
Contingent deferred sales charges (note 2)			(1,943)		(3,010)		(1,176)		(2,434)		(20,399)		(13,710)		(422)		(1,680)
Adjustments to maintain reserves			146		(222)		1,004		(198)		(6,975)		81,390		427		1,170
Net equity transactions			(7,138,856)		(973,345)		(3,430,117)		(2,953,773)		12,928,844		12,266,036		(3,471,012)		(6,341,335)
Net change in contract owners’ equity			(11,946,507)		3,384,863		(9,170,585)		2,067,944		730,605		22,642,310		(8,986,307)		1,180,066
Contract owners’ equity beginning of period			23,339,765		19,954,902		23,980,267		21,912,323		53,770,682		31,128,372		34,084,152		32,904,086
Contract owners’ equity end of period	$		11,393,258		23,339,765		14,809,682		23,980,267		54,501,287		53,770,682		25,097,845		34,084,152
CHANGES IN UNITS:
Beginning units			827,950		886,135		946,130		1,081,816		2,350,975		1,143,054		619,064		761,288
Units purchased			119,749		307,759		-		-		2,531,203		1,712,246		1		-
Units redeemed			(396,443)		(365,944)		(148,685)		(135,686)		(1,412,507)		(504,325)		(66,761)		(142,224)
Ending units			551,256		827,950		797,445		946,130		3,469,671		2,350,975		552,304		619,064
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		WRASP				WRPCP				WRPMP				WRPMAP
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(500,298)		(297,396)		(1,047)		-		4,002		(37)		29,602		-
Realized gain (loss) on investments			1,577,566		1,312,225		(10,031)		-		(2,911)		2		(26,852)		-
Change in unrealized gain (loss) on investments			(10,208,797)		4,373,525		(3,265)		-		(63,776)		3,014		(755,920)		-
Reinvested capital gains			-		-		652		-		15,295		-		107,545		-
Net increase (decrease) in contract owners’ equity resulting from operations			(9,131,529)		5,388,354		(13,691)		-		(47,390)		2,979		(645,625)		-
Equity transactions:
Purchase payments received from contract owners (note 3)			27,069,234		19,931,616		933,390		-		4,782,149		25,000		14,337,201		-
Transfers between funds			8,920,842		22,206,330		87,869		-		(24,265)		-		(16,720)		-
Redemptions (note 3)			(10,852,045)		(4,950,301)		(877)		-		(61,827)		-		(68,113)		-
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			(8,908)		(6,238)		-		-		(255)		-		(123)		-
Contingent deferred sales charges (note 2)			(66,987)		(35,512)		-		-		-		-		-		-
Adjustments to maintain reserves			606		7,115		1		-		1		3		(5)		-
Net equity transactions			25,062,742		37,153,010		1,020,383		-		4,695,803		25,003		14,252,240		-
Net change in contract owners’ equity			15,931,213		42,541,364		1,006,692		-		4,648,413		27,982		13,606,615		-
Contract owners’ equity beginning of period			77,797,454		35,256,090		-		-		27,982		-		-		-
Contract owners’ equity end of period	$		93,728,667		77,797,454		1,006,692		-		4,676,395		27,982		13,606,615		-
CHANGES IN UNITS:
Beginning units			6,143,715		2,978,019		-		-		2,491		-		-		-
Units purchased			4,827,421		5,430,985		103,588		-		428,766		2,491		1,255,458		-
Units redeemed			(2,869,668)		(2,265,289)		(11,255)		-		(7,100)		-		(24,900)		-
Ending units			8,101,468		6,143,715		92,333		-		424,157		2,491		1,230,558		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		WRPMCP				SVDF				SVOF				WFVSCG
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(202)		-		(468)		(465)		(3,414)		(1,859)		(423,134)		(341,943)
Realized gain (loss) on investments			(9,500)		-		2,076		9,707		26,894		15,502		1,060,262		1,582,023
Change in unrealized gain (loss) on investments			(12,010)		-		(1,575)		1,944		(42,438)		51,989		(2,072,670)		2,464,303
Reinvested capital gains			3,950		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(17,762)		-		33		11,186		(18,958)		65,632		(1,435,542)		3,704,383
Equity transactions:
Purchase payments received from contract owners (note 3)			1,661,641		-		2,363		71		(14,154)		(56,021)		8,919,613		7,483,170
Transfers between funds			15,628		-		1,016		25		(35,273)		36,968		(1,588,741)		8,028,271
Redemptions (note 3)			(28,126)		-		-		(3)		-		41,905		(1,984,912)		(2,201,487)
Annuity benefits			-		-		(7,427)		(10,238)		(32,222)		(33,045)		-		-
Contract maintenance charges (note 2)			(93)		-		(279)		-		(44)		(58)		(72,105)		(22,263)
Contingent deferred sales charges (note 2)			-		-		-		-		-		1,270		(9,935)		(17,634)
Adjustments to maintain reserves			(2)		-		3		(424)		(3,052)		12,723		(792)		(17,148)
Net equity transactions			1,649,048		-		(4,324)		(10,569)		(84,745)		3,742		5,263,128		13,252,909
Net change in contract owners’ equity			1,631,286		-		(4,291)		617		(103,703)		69,374		3,827,586		16,957,292
Contract owners’ equity beginning of period			-		-		39,881		39,264		350,327		280,953		27,016,561		10,059,269
Contract owners’ equity end of period	$		1,631,286		-		35,590		39,881		246,624		350,327		30,844,147		27,016,561
CHANGES IN UNITS:
Beginning units			-		-		-		-		836		-		1,674,122		775,011
Units purchased			150,962		-		15		-		-		2,092		1,334,492		2,259,443
Units redeemed			(2,602)		-		59		-		(836)		(1,256)		(978,764)		(1,360,332)
Ending units			148,360		-		74		-		-		836		2,029,850		1,674,122
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		WFVSMV				WFVTRB				WFVOG2				NVAGF3
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		(38)		37		4,038		5,773		(966)		(576)		112,024		149,443
Realized gain (loss) on investments			(493)		(317)		224		235		1,091		2,697		(313,065)		51,578
Change in unrealized gain (loss) on investments			(273)		1,821		3,548		1,419		(5,183)		13,139		100,870		(66,561)
Reinvested capital gains			-		-		11,330		7,389		541		-		173,773		80,474
Net increase (decrease) in contract owners’ equity resulting from operations			(804)		1,541		19,140		14,816		(4,517)		15,260		73,602		214,934
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		-		-		-		(1)		24,573		819,543
Transfers between funds			521		(248)		-		-		(5,242)		83,127		(3,469,556)		921,343
Redemptions (note 3)			(1,178)		(1,169)		-		-		(1,225)		(36,351)		(109,678)		(233,252)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		-		-		-		(18)		(10)		(91)		(245)
Contingent deferred sales charges (note 2)			-		-		-		-		-		-		(108)		(1,228)
Adjustments to maintain reserves			(2)		(3)		(3)		13		10		5		(73)		42
Net equity transactions			(659)		(1,420)		(3)		13		(6,475)		46,770		(3,554,933)		1,506,203
Net change in contract owners’ equity			(1,463)		121		19,137		14,829		(10,992)		62,030		(3,481,331)		1,721,137
Contract owners’ equity beginning of period			9,762		9,641		274,433		259,604		62,030		-		3,481,331		1,760,194
Contract owners’ equity end of period	$		8,299		9,762		293,570		274,433		51,038		62,030		-		3,481,331
CHANGES IN UNITS:
Beginning units			1,026		1,175		21,348		21,348		4,925		-		288,563		155,699
Units purchased			106		41		-		-		-		11,151		27,666		240,763
Units redeemed			(181)		(190)		-		-		(564)		(6,226)		(316,229)		(107,899)
Ending units			951		1,026		21,348		21,348		4,361		4,925		-		288,563
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		CSIEF3				GEF3				NVGWL6				WIEP
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		28,624		(19,087)		(1,059)		(7,716)		(2,662)		(4,720)		-		-
Realized gain (loss) on investments			(41,389)		(2,233)		(425,178)		(508,522)		154,220		20,289		-		-
Change in unrealized gain (loss) on investments			(210,286)		191,961		385,062		697,776		(229,888)		195,256		-		-
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			(223,051)		170,641		(41,175)		181,538		(78,330)		210,825		-		-
Equity transactions:
Purchase payments received from contract owners (note 3)			20,341		11,823		92,036		114,365		394,116		1,281,617		-		(2)
Transfers between funds			(1,882,814)		671,944		(1,883,961)		(340,451)		(2,511,022)		208,335		-		12
Redemptions (note 3)			(115,708)		(285,984)		(360,558)		(293,048)		(17,563)		(26,982)		-		4
Annuity benefits			(3,110)		(3,139)		-		-		-		-		-		-
Contract maintenance charges (note 2)			(973)		(1,386)		(418)		(1,094)		(4,380)		(2,999)		-		-
Contingent deferred sales charges (note 2)			(8)		(63)		(335)		(1,754)		(177)		(155)		-		(14)
Adjustments to maintain reserves			(33,705)		30,749		(23)		(67)		(182)		(87)		-		-
Net equity transactions			(2,015,977)		423,944		(2,153,259)		(522,049)		(2,139,208)		1,459,729		-		-
Net change in contract owners’ equity			(2,239,028)		594,585		(2,194,434)		(340,511)		(2,217,538)		1,670,554		-		-
Contract owners’ equity beginning of period			2,239,028		1,644,443		2,194,434		2,534,945		2,217,538		546,984		-		-
Contract owners’ equity end of period	$		-		2,239,028		-		2,194,434		-		2,217,538		-		-
CHANGES IN UNITS:
Beginning units			196,205		161,230		147,046		186,700		152,509		41,212		-		-
Units purchased			31,812		88,599		42,559		15,764		41,976		132,855		-		-
Units redeemed			(228,017)		(53,624)		(189,605)		(55,418)		(194,485)		(21,558)		-		-
Ending units			-		196,205		-		147,046		-		152,509		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		WVCP				JARLCS				GVGHS				GVGH6
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		-		-		-		-		(5,134)		-		(42,402)
Realized gain (loss) on investments			-		-		-		-		-		(30,704)		-		(19,712)
Change in unrealized gain (loss) on investments			-		-		-		-		-		98,729		-		235,901
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		-		-		-		-		62,891		-		173,787
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		-		(116)		-		41,097		-		517,233
Transfers between funds			-		-		-		110		-		(4,129,343)		-		(14,472,834)
Redemptions (note 3)			-		4		-		6		-		(254,115)		-		(334,453)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		-		-		-		-		(698)		-		(335)
Contingent deferred sales charges (note 2)			-		(3)		-		-		-		(578)		-		(5,194)
Adjustments to maintain reserves			-		(1)		-		-		-		(34)		-		(170)
Net equity transactions			-		-		-		-		-		(4,343,671)		-		(14,295,753)
Net change in contract owners’ equity			-		-		-		-		-		(4,280,780)		-		(14,121,966)
Contract owners’ equity beginning of period			-		-		-		-		-		4,280,780		-		14,121,966
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		-		-		-		-		342,864		-		1,400,047
Units purchased			-		-		-		-		-		39,645		-		240,262
Units redeemed			-		-		-		-		-		(382,509)		-		(1,640,309)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GVUSL				SGRF				SGRF2				GGTC2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		(8,326)		-		-		-		-		-		(3,519)
Realized gain (loss) on investments			-		(1,063,613)		-		-		-		-		-		(60,911)
Change in unrealized gain (loss) on investments			-		1,188,044		-		-		-		-		-		80,698
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		116,105		-		-		-		-		-		16,268
Equity transactions:
Purchase payments received from contract owners (note 3)			-		72,584		-		(2)		-		40,688		-		-
Transfers between funds			-		(2,841,465)		-		2		-		(34,381)		-		(749,470)
Redemptions (note 3)			-		(187,997)		-		-		-		(5,862)		-		(9,483)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		(429)		-		-		-		(445)		-		(79)
Contingent deferred sales charges (note 2)			-		(651)		-		-		-		-		-		(196)
Adjustments to maintain reserves			-		25,455		-		-		-		-		-		(30)
Net equity transactions			-		(2,932,503)		-		-		-		-		-		(759,258)
Net change in contract owners’ equity			-		(2,816,398)		-		-		-		-		-		(742,990)
Contract owners’ equity beginning of period			-		2,816,398		-		-		-		-		-		742,990
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		257,511		-		-		-		-		-		49,650
Units purchased			-		14,748		-		13		-		5,899		-		205
Units redeemed			-		(272,259)		-		(13)		-		(5,899)		-		(49,855)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GGTC3				GGTC6				GVUG2				GVUGL
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		(21,276)		-		(75,337)		-		(77,131)		-		(10,085)
Realized gain (loss) on investments			-		1,214,804		-		2,044,593		-		(2,328,913)		-		(555,337)
Change in unrealized gain (loss) on investments			-		(1,134,325)		-		(1,591,794)		-		3,037,621		-		670,829
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		59,203		-		377,462		-		631,577		-		105,407
Equity transactions:
Purchase payments received from contract owners (note 3)			-		76,162		-		848,953		-		385,719		-		47,141
Transfers between funds			-		(5,205,603)		-		(15,591,624)		-		(15,146,786)		-		(2,406,440)
Redemptions (note 3)			-		(451,264)		-		(506,101)		-		(456,967)		-		(186,641)
Annuity benefits			-		(283)		-		-		-		-		-		(141)
Contract maintenance charges (note 2)			-		(743)		-		(547)		-		(6,134)		-		(527)
Contingent deferred sales charges (note 2)			-		(852)		-		(5,530)		-		(3,927)		-		(135)
Adjustments to maintain reserves			-		(4,950)		-		(79)		-		(150)		-		(1,406)
Net equity transactions			-		(5,587,533)		-		(15,254,928)		-		(15,228,245)		-		(2,548,149)
Net change in contract owners’ equity			-		(5,528,330)		-		(14,877,466)		-		(14,596,668)		-		(2,442,742)
Contract owners’ equity beginning of period			-		5,528,330		-		14,877,466		-		14,596,668		-		2,442,742
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		503,843		-		1,441,431		-		964,339		-		188,997
Units purchased			-		68,228		-		211,583		-		57,652		-		6,775
Units redeemed			-		(572,071)		-		(1,653,014)		-		(1,021,991)		-		(195,772)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		JPMCVP				WSCP				ALBS				GVGU2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		-		(180,035)		(391,423)		-		2,422		-		657
Realized gain (loss) on investments			-		-		2,404,597		1,626,667		-		(37,818)		-		(153,050)
Change in unrealized gain (loss) on investments			-		-		(4,313,690)		2,749,412		-		37,177		-		139,351
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		-		(2,089,128)		3,984,656		-		1,781		-		(13,042)
Equity transactions:
Purchase payments received from contract owners (note 3)			-		(10)		321,366		680,575		-		-		-		-
Transfers between funds			-		10		(28,116,105)		(973,119)		-		(221,780)		-		(315,100)
Redemptions (note 3)			-		-		(3,691,090)		(5,014,258)		-		(301)		-		(22,468)
Annuity benefits			-		-		(2,221)		(2,866)		-		-		-		-
Contract maintenance charges (note 2)			-		-		(16,307)		(22,508)		-		(5)		-		(17)
Contingent deferred sales charges (note 2)			-		-		(6,145)		(7,382)		-		-		-		-
Adjustments to maintain reserves			-		-		(10,000)		(812)		-		(1)		-		24
Net equity transactions			-		-		(31,520,502)		(5,340,370)		-		(222,087)		-		(337,561)
Net change in contract owners’ equity			-		-		(33,609,630)		(1,355,714)		-		(220,306)		-		(350,603)
Contract owners’ equity beginning of period			-		-		33,609,630		34,965,344		-		220,306		-		350,603
Contract owners’ equity end of period	$		-		-		-		33,609,630		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		-		2,155,736		2,532,513		-		18,711		-		18,909
Units purchased			-		7		33,589		55,803		-		57		-		-
Units redeemed			-		(7)		(2,189,325)		(432,580)		-		(18,768)		-		(18,909)
Ending units			-		-		-		2,155,736		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GVGU				GVGF2				GVGFS				GVGH2
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		10,341		-		(996)		-		(1,527)		-		(3,132)
Realized gain (loss) on investments			-		(1,089,826)		-		(417,402)		-		208,774		-		(107,257)
Change in unrealized gain (loss) on investments			-		953,426		-		427,835		-		(174,814)		-		126,131
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		(126,059)		-		9,437		-		32,433		-		15,742
Equity transactions:
Purchase payments received from contract owners (note 3)			-		8,575		-		93		-		7,270		-		-
Transfers between funds			-		(3,157,494)		-		(685,151)		-		(2,136,062)		-		(1,265,174)
Redemptions (note 3)			-		(241,472)		-		(17,917)		-		(130,484)		-		(15,278)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		(604)		-		(49)		-		(247)		-		(79)
Contingent deferred sales charges (note 2)			-		(544)		-		(414)		-		(420)		-		(350)
Adjustments to maintain reserves			-		(27)		-		(37)		-		(24)		-		(62)
Net equity transactions			-		(3,391,566)		-		(703,475)		-		(2,259,967)		-		(1,280,943)
Net change in contract owners’ equity			-		(3,517,625)		-		(694,038)		-		(2,227,534)		-		(1,265,201)
Contract owners’ equity beginning of period			-		3,517,625		-		694,038		-		2,227,534		-		1,265,201
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		217,412		-		47,904		-		176,927		-		84,308
Units purchased			-		5,298		-		516		-		11,849		-		195
Units redeemed			-		(222,710)		-		(48,420)		-		(188,776)		-		(84,503)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		GGTC				ACVI2				FALFS				FVMOS
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		(689)		-		-		-		12,998		-		176,562
Realized gain (loss) on investments			-		9,952		-		-		-		(376,860)		-		(378,818)
Change in unrealized gain (loss) on investments			-		(6,131)		-		-		-		395,018		-		259,775
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		3,132		-		-		-		31,156		-		57,519
Equity transactions:
Purchase payments received from contract owners (note 3)			-		-		-		-		-		18,910		-		33,933
Transfers between funds			-		(153,525)		-		-		-		(947,870)		-		(7,011,235)
Redemptions (note 3)			-		(23,150)		-		8		-		(26,296)		-		(329,878)
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		(195)		-		(8)		-		(47)		-		(207)
Contingent deferred sales charges (note 2)			-		-		-		-		-		(185)		-		(555)
Adjustments to maintain reserves			-		(16)		-		-		-		1		-		(14)
Net equity transactions			-		(176,886)		-		-		-		(955,487)		-		(7,307,956)
Net change in contract owners’ equity			-		(173,754)		-		-		-		(924,331)		-		(7,250,437)
Contract owners’ equity beginning of period			-		173,754		-		-		-		924,331		-		7,250,437
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		59,032		-		-		-		86,156		-		746,449
Units purchased			-		-		-		-		-		1,741		-		60,523
Units redeemed			-		(59,032)		-		-		-		(87,897)		-		(806,972)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

86

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		AMMCGS				WFVLCG				WFVMM				BF
		2011		2010		2011		2010		2011		2010		2011		2010
Investment activity:
Net investment income (loss)	$		-		-		-		(307)		-		(1,346)		-		-
Realized gain (loss) on investments			-		-		-		(7,407)		-		-		-		-
Change in unrealized gain (loss) on investments			-		-		-		(2,793)		-		-		-		-
Reinvested capital gains			-		-		-		-		-		-		-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		-		-		(10,507)		-		(1,346)		-		-
Equity transactions:
Purchase payments received from contract owners (note 3)			-		62		-		(27)		-		599,270		-		213
Transfers between funds			-		(62)		-		(89,455)		-		(705,524)		-		(213)
Redemptions (note 3)			-		-		-		(3,823)		-		(48,644)		-		-
Annuity benefits			-		-		-		-		-		-		-		-
Contract maintenance charges (note 2)			-		-		-		(13)		-		(15)		-		-
Contingent deferred sales charges (note 2)			-		-		-		-		-		(525)		-		-
Adjustments to maintain reserves			-		-		-		90		-		1		-		-
Net equity transactions			-		-		-		(93,228)		-		(155,437)		-		-
Net change in contract owners’ equity			-		-		-		(103,735)		-		(156,783)		-		-
Contract owners’ equity beginning of period			-		-		-		103,735		-		156,783		-		-
Contract owners’ equity end of period	$		-		-		-		-		-		-		-		-
CHANGES IN UNITS:
Beginning units			-		-		-		11,201		-		14,747		-		-
Units purchased			-		1		-		4,250		-		118,545		-		24
Units redeemed			-		(1)		-		(15,451)		-		(133,292)		-		(24)
Ending units			-		-		-		-		-		-		-		-
																	(Continued)

NATIONWIDE VARIABLE ACCOUNT-II

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

		VFLG2
		2011		2010
Investment activity:
Net investment income (loss)	$		-		-
Realized gain (loss) on investments			-		-
Change in unrealized gain (loss) on investments			-		-
Reinvested capital gains			-		-
Net increase (decrease) in contract owners’ equity resulting from operations			-		-
Equity transactions:
Purchase payments received from contract owners (note 3)			-		1,135
Transfers between funds			-		-
Redemptions (note 3)			-		(1,135)
Annuity benefits			-		-
Contract maintenance charges (note 2)			-		-
Contingent deferred sales charges (note 2)			-		-
Adjustments to maintain reserves			-		-
Net equity transactions			-		-
Net change in contract owners’ equity			-		-
Contract owners’ equity beginning of period			-		-
Contract owners’ equity end of period	$		-		-
CHANGES IN UNITS:
Beginning units			-		-
Units purchased			-		230
Units redeemed			-		(230)
Ending units			-		-

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

(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:

ALGER AMERICAN FUNDS

MidCap Growth Portfolio - Class S Shares (ALMCS)

AMERICAN FUNDS GROUP (THE)

Growth Fund - Class 1 (AFGF)

High-Income Bond Fund - Class 1 (AFHY)

U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)

BB&T FUNDS

Sterling Capital Strategic Allocation Equity VIF (BBCMAG)*

Sterling Capital Select Equity VIF (BBGI)*

BLACKROCK FUNDS

Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)

CHARLES SCHWAB FUNDS

Money Market Portfolio(TM) (CHSMM)

DREYFUS CORPORATION FUNDS

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

Stock Index Fund, Inc. - Service Shares (DSIFS)

The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)

HUNTINGTON TRUST COMPANY

VA International Equity Fund (HVIE)

VA Situs Fund (HVSIT)

J.P. MORGAN INVESTMENT MANAGEMENT INC.

Insurance Trust - Insurance Trust Diversified Mid Cap Growth Portfolio 1 (OGGO)*

Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)

JPMorgan Insurance Trust Core Bond Portfolio 1 (OGBDP)*

JPMorgan Insurance Trust Equity Index Portfolio 1 (OGEI)*

JPMorgan Insurance Trust Intrepid Growth Portfolio - Class 1 (OGLG)*

JPMorgan Insurance Trust Intrepid Mid Cap Portfolio 1 (OGDMP)*

JPMorgan Insurance Trust U.S. Equity Portfolio 1 (OGDEP)*

JANUS FUNDS

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

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

Janus Aspen Series - Global Technology Portfolio - Service II Shares (JAGTS2)

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

Janus Aspen Series - Overseas Portfolio - Service II Shares (JAIGS2)

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

MASSACHUSETTS FINANCIAL SERVICES CO.

Investors Growth Stock Series - Service Class (MIGSC)

Value Series - Service Class (MVFSC)

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

MORGAN STANLEY

Core Plus Fixed Income Portfolio - Class I (MSVFI)

Core Plus Fixed Income Portfolio - Class II (MSVF2)

Emerging Markets Debt Portfolio - Class I (MSEM)

Emerging Markets Debt Portfolio - Class II (MSEMB)

Global Real Estate Portfolio - Class II (VKVGR2)*

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

U.S. Real Estate Portfolio - Class II (MSVREB)

MTB GROUP OF FUNDS

Managed Allocation Fund - Moderate Growth II (VFMG2)

NATIONWIDE FUNDS GROUP

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

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

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

American Funds NVIT Bond Fund - Class II (GVABD2)

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

American Funds NVIT Growth Fund - Class II (GVAGR2)

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

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

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

NVIT Emerging Markets Fund - Class I (GEM)

NVIT Emerging Markets Fund - Class II (GEM2)

NVIT Emerging Markets Fund - Class III (GEM3)

NVIT Emerging Markets Fund - Class VI (GEM6)

NVIT International Equity Fund - Class I (GIG)

NVIT International Equity Fund - Class III (GIG3)

Gartmore NVIT International Equity Fund - Class VI (NVIE6)

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

Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)

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

Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)

NVIT Cardinal Aggressive Fund - Class II (NVCRA2)

NVIT Cardinal Balanced Fund - Class II (NVCRB2)

NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)

NVIT Cardinal Conservative Fund - Class II (NVCCN2)

NVIT Cardinal Moderate Fund - Class II (NVCMD2)

NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)

NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)

NVIT Core Bond Fund - Class I (NVCBD1)

NVIT Core Bond Fund - Class II (NVCBD2)

NVIT Core Plus Bond Fund - Class II (NVLCP2)

NVIT Fund - Class I (TRF)

NVIT Fund - Class II (TRF2)

NVIT Government Bond Fund - Class I (GBF)

American Century NVIT Growth Fund - Class I (CAF)

American Century NVIT Growth Fund -Class II (CAF2)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

NVIT International Index Fund - Class VIII (GVIX8)

NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)

NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)

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

NVIT Investor Destinations Conservative Fund - Class II (GVIDC)

NVIT Investor Destinations Moderate Fund - Class II (GVIDM)

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

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

NVIT Mid Cap Index Fund - Class I (MCIF)

NVIT Money Market Fund - Class I (SAM)

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

NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)

NVIT Multi-Manager International Value Fund - Class II (GVDIV2)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Large Cap Growth Fund - Class I (NVOLG1)

NVIT Large Cap Growth Fund - Class II (NVOLG2)

Templeton NVIT International Value Fund - Class III (NVTIV3)

Van Kampen NVIT Comstock Value Fund - Class II (EIF2)

NVIT Real Estate Fund - Class I (NVRE1)

NVIT Real Estate Fund - Class II (NVRE2)

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)

VPS Growth and Income Portfolio - Class B (ALVGIB)

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

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Balanced Fund - Class I (ACVB)

VP Capital Appreciation Fund - Class I (ACVCA)*

VP Income & Growth Fund - Class I (ACVIG)

VP Income & Growth Fund - Class II (ACVIG2)

VP Inflation Protection Fund - Class II (ACVIP2)

VP International Fund - Class I (ACVI)*

VP International Fund - Class II (ACVI2)*

VP International Fund - Class III (ACVI3)*

VP International Fund - Class IV (ACVI4)*

VP Mid Cap Value Fund - Class I (ACVMV1)

VP Mid Cap Value Fund - Class II (ACVMV2)

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

VP Ultra(R) Fund - Class II (ACVU2)*

VP Vista(SM) Fund - Class I (ACVVS1)*

VP Vista(SM) Fund - Class II (ACVVS2)*

PORTFOLIOS OF THE DREYFUS INVESTMENT PORTFOLIOS

Small Cap Stock Index Portfolio - Service Shares (DVSCS)

PORTFOLIOS OF THE DREYFUS VARIABLE INVESTMENT FUND

Appreciation Portfolio - Initial Shares (DCAP)

Appreciation Portfolio - Service Shares (DCAPS)

Opportunistic Small Cap Portfolio: Service Shares (DVDLS)

Growth and Income Portfolio - Initial Shares (DGI)

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Capital Appreciation Fund II - Service Shares (FCA2S)

Quality Bond Fund II - Primary Shares (FQB)

Quality Bond Fund II - Service Shares (FQBS)

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

Equity-Income Portfolio - Initial Class (FEIP)

Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)

High Income Portfolio - Initial Class (FHIP)

VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)

VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)

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

VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)

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

VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)

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

VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)

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

VIP Fund - Growth Portfolio - Initial Class (FGP)

VIP Fund - Growth Portfolio - Service Class 2 (FG2)

VIP Fund - High Income Portfolio - Initial Class R (FHIPR)

VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)

VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)

VIP Fund - Mid Cap Portfolio - Service Class (FMCS)

VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)

VIP Fund - Overseas Portfolio - Initial Class (FOP)

VIP Fund - Overseas Portfolio - Initial Class R (FOPR)

VIP Fund - Overseas Portfolio - Service Class 2 (FO2)

VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)

VIP Fund - Value Strategies Portfolio - Service Class (FVSS)

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

Franklin Income Securities Fund - Class 2 (FTVIS2)

Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)

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

Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)

Templeton Foreign Securities Fund - Class 2 (TIF2)

Templeton Foreign Securities Fund - Class 3 (TIF3)

Templeton Global Bond Securities Fund - Class 3 (FTVGI3)

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

PORTFOLIOS OF THE NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST

Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)

Growth Portfolio - I Class Shares (AMTG)

Guardian Portfolio - I Class Shares (AMGP)*

International Portfolio - S Class Shares (AMINS)*

Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)*

Partners Portfolio - I Class Shares (AMTP)*

Regency Portfolio - S Class Shares (AMRS)*

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

Socially Responsive Portfolio - I Class Shares (AMSRS)

PORTFOLIOS OF THE OPPENHEIMER VARIABLE ACCOUNT FUNDS

Balanced Fund/VA - Non-Service Shares (OVMS)

Core Bond Fund/VA - Non-Service Shares (OVB)

Global Securities Fund/VA - Class 3 (OVGS3)

Global Securities Fund/VA - Class 4 (OVGS4)

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

Global Securities Fund/VA - Service Class (OVGSS)

High Income Fund/VA - Class 3 (OVHI3)

High Income Fund/VA - Class 4 (OVHI4)

High Income Fund/VA - Non-Service Shares (OVHI)

High Income Fund/VA - Service Class (OVHIS)

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

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

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

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

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

PORTFOLIOS OF THE PIMCO VARIABLE INSURANCE TRUST

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

Low Duration Portfolio - Advisor Class (PMVLAD)

Total Return Portfolio - Advisor Class (PMVTRD)

PORTFOLIOS OF THE PUTNAM VARIABLE TRUST

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

Putnam VT International Equity Fund - IB Shares (PVTIGB)

Putnam VT Voyager Fund - IB Shares (PVTVB)

PORTFOLIOS OF THE VAN KAMPEN LIFE INVESTMENT TRUST

V.I. Basic Value Fund - Series II (AVBV2)*

V.I. Capital Appreciation Fund - Series II (AVCA2)

V.I. Capital Development Fund - Series II (AVCD2)

PORTFOLIOS OF THE VICTORY VARIABLE INSURANCE FUNDS

Diversified Stock Fund Class A Shares (VYDS)

T. ROWE PRICE

Health Sciences Portfolio - II (TRHS2)

Limited-Term Bond Portfolio - II (TRLT2)*

VAN ECK ASSOCIATES CORPORATION

VIP Trust - Global Bond Fund: Class R1 (VWBFR)

VIP Trust - Global Bond Fund: Initial Class (VWBF)

VIP Trust - Emerging Markets Fund: Class R1 (VWEMR)

VIP Trust - Emerging Markets Fund: Initial Class (VWEM)

VIP Trust - Global Hard Assets Fund: Class R1 (VWHAR)

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

WADDELL & REED, INC.

Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)

Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Conservative (WRPMCP)

WELLS FARGO FUNDS

Advantage VT Index Asset Allocation Fund - Class 2 (WFVAA)*

Advantage Funds Variable Trust - VT Discovery Fund (SVDF)

Advantage VT Opportunity Fund - Class 2 (SVOF)*

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

Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)

Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)

Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)

*At December 31, 2011, contract owners were not invested in the fund.

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

A contract owner may choose from among a number of different underlying mutual fund options. The underlying mutual fund options are not available to the general public directly. The underlying mutual funds are available as investment options in variable life insurance policies or variable annuity contracts issued by life insurance companies or, in some cases, through participation in certain qualified pension or retirement plans.

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

A purchase payment could be presented as a negative equity transaction in the Statements of Changes in Contract Owners’ Equity if a prior period purchase payment is refunded to a contract owner due to a contract cancellation during the free look period, and/or if a gain is realized by the contract owner during the free look period.

The Company allocates purchase payments to sub-accounts and/or the fixed account as instructed by the contract owner. Shares of the sub-accounts are purchased at Net Asset Value, then converted into accumulation units. Certain transactions may be subject to conditions imposed by the underlying mutual funds, as well as those set forth in the contract.

(c) Security Valuation, Transactions and Related Investment Income

Investments in underlying mutual funds are valued at the closing net asset value per share at December 31, 2011 of such funds. The cost of investments sold is determined on a first in - first out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed), and dividends and capital gain distributions are accrued as of the ex-dividend date and are reinvested in the underlying mutual funds.

(d) Federal Income Taxes

Operations of the Account form a part of, and are taxed with, operations of the Company which is taxed as a life insurance company under the Internal Revenue Code. The Company does not provide for income taxes within the Account. Taxes are generally the responsibility of the contract owner upon termination or withdrawal.

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

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

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

(f) Calculation of Annuity Reserves

At each financial reporting date, the separate account financial statement includes an aggregate amount of net assets allocated to future contract benefits for the contracts in the payout (annuitization) period. The payout (annuitization) period begins when amounts accumulated under the contract (the contract value) are applied according to payment method selected by the contract holder.

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) Recently Issued Accounting Standards

FASB ASC 820 was effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years, with early adoption permitted. The Account adopted FASB ASC 820 effective January 1, 2008. The adoption of FASB ASC 820 did not have a material impact on the Account’s financial position or results of operations.

In September 2009 the FASB issued ASU 2009-12, which amends FASB ASC 820, Fair Value Measurements and Disclosures. This guidance applies to reporting entities that hold an investment that is required or permitted to be measured or disclosed at fair value on a recurring or nonrecurring basis if the investment does not have a readily determinable fair value and the investee has attributes of an investment company. For these investments, this update allows, as a practical expedient, the use of net asset value (NAV) as the basis to estimate fair value as long as it is not probable, as of the measurement date that the investment will be sold and NAV is not the value that will be used in the sale. The NAVs must be calculated consistent with the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies, which generally requires these investments to be measured at fair value. Additionally, the guidance provided updated disclosures for investments within its scope and noted that if the investor can redeem the investment with the investee on the measurement date at NAV, the investment should likely be classified as Level 2 in the fair value hierarchy. Investments that cannot be redeemed with the investee at NAV would generally be classified as Level 3 in the fair value hierarchy. If the investment is not redeemable with the investee on the measurement date, but will be at a future date, the length of time until the investment is redeemable should be considered in determining classification as Level 2 or 3. This guidance is effective for interim and annual periods ending after December 15, 2009 with early adoption permitted. The Account adopted this guidance effective the period ending December 31, 2009. The adoption of this guidance did not have a material impact on the financial statements of the Account.

In January 2010, the FASB issued ASU 2010-06, which amends FASB ASC 820, Fair Value Measurement and Disclosures. This guidance requires new disclosures and provides amendments to clarify existing disclosures. The new requirements include disclosing transfers in and out of Levels 1 and 2 fair value measurements, the reasons for the transfers, and further disaggregating activity in Level 3 fair value measurements. The clarification of existing disclosure guidance includes further disaggregation of fair value measurement disclosures for each class of assets and liabilities and providing disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for the new disclosures regarding the activity in Level 3 measurements, which shall be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The Account adopted this guidance effective January 1, 2010, except for the new disclosure regarding the activity in Level 3 measurements, which the Account adopted for the fiscal period beginning January 1, 2011.

In May 2011, the FASB issued ASU 2011-04, which amends existing guidance in Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures. The guidance in this ASU clarifies existing fair value measurement guidance and expands disclosures primarily related to Level 3 fair value measurements. The ASU will require reporting entities to disclose quantitative information about the unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy. In addition, ASU 2011-04 will require reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2011. The Account will adopt this guidance prospectively for the annual period beginning January 1, 2012. The adoption of this guidance will result in increased disclosures and will have an immaterial impact on the Account’s financial statements.

(h) Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued with the SEC.

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is redeemed, the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge. 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 redeemed. 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 redeemed, 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 redeemed, 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 and Nationwide Destination L contracts, the contingent deferred sales charge will not exceed 7% of purchase payments redeemed, such charge declining a specified percentage each year. After the purchase payment has been held in the contract for 4 years this charge is 0%. No contingent deferred sales charge is deducted on NEBA, Nationwide Destination C (formerly Exclusive Venue), Income Architect 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 a contract maintenance charge of up to $30, dependent upon contract type and issue date, which is satisfied by redeeming units. The Company deducts a mortality and expense risk charge assessed through a reduction of the unit value. The Option tables on the following two pages illustrate the annual rate for all contract level charges by product, as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract holders. The options and related charges are described in more detail in the applicable product prospectus.

Nationwide Variable Account - II Options	BOA IV	America’s Vision	NEBA	Schwab Custom Solutions	Schwab Income Choice
Variable Account Charges - Recurring	1.30%	1.40%	0.80%	0.95%	0.65%
Death Benefit Options - Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced	-	-	-	0.10%	0.20%
Combination Enhanced	-	-	-	0.40%	-
Return of Premium					0.10%
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.
Spousal Continuation Benefit Option	-	-	-	-	0.30%
Capital Preservation and Income Options:
Capital Preservation Plus Option	-	-	-	0.50%	-
Lifetime Income Option
5% Lifetime Income Option (New York)	-	-	-	-	1.00%(12)
7% Lifetime Income Option (Non-New York)	-	-	-	-	1.00%(13)

Maximum Variable Account Charges* 1.30% 1.40% 0.80% 2.20% 2.15%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

Nationwide Variable Account - II Options	America’s Future II	All American Gold	Achiever	Income Architect
Variable Account Charges - Recurring	1.15%	1.15%	1.55%	0.40%
CDSC Options:
Four Year CDSC	0.30%	0.50%	0.20%	-
No CDSC	0.35%	0.55%	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)	-	-
One-Year Enhanced	0.10%(4)	0.10%(4)	-	-
One-Month Enhanced	-	0.35%(2)	0.20%(2)	-
Combination Enhanced II	-	-	0.45%(11)	-
Combination Enhanced	-	0.40%(5)	0.30%(5)	-
Beneficiary Protector II Option	-	0.35%	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%	1.00%	-
Capital Preservation Plus Option	0.50%(17)	0.50%(17)	0.50%(17)	-
Lifetime Income Option
5% Lifetime Income Option (New York)	1.00%(12)	1.00%(12)	1.00%(12)	-
7% Lifetime Income Option (Non-New York)	1.00%(13)	1.00%	1.00%(13)	-
10% Lifetime Income Option	1.20%(14)	1.20%	1.20%(14)	-
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	0.15%	0.15%	0.15%	-
7% Spousal Continuation Benefit (Non-New York)	0.15%	0.30%(20)	0.15%	-
10% Spousal Continuation Benefit (Non-New York)	0.30%(16)	0.30%(16)(21)	0.30%(16)	-
Guaranteed Lifetime Withdrawal Fee	-	-	-	0.60%(18)
Spousal Continuation Benefit Option	-	-	-	0.10%(18)
Extra Value Options (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%(17)	0.10%	-
4% Extra Value Credit Option	0.40%	-	0.25%	-
5% Extra Value Credit Option	-	0.70%(17)	0.45%(9)	-
5% Extra Value Credit Option	-	-	0.55%(10)	-

Maximum Variable Account Charges* 3.55% 4.60%(1) 4.60%(1) 1.10%(1)

Nationwide Variable Account - II Options	Future Venue	Destination C	Destination L	Elite Venue	Choice Venue II
Variable Account Charges - Recurring	1.10%	1.60%	1.75%	1.75%	1.50%
Death Benefit Options - Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced II	0.15%(3)	-	-	-	-
One-Year Enhanced	0.10%(4)	-	0.20%	-	-
One-Month Enhanced II	0.35%(3)	0.20%(2)	-	0.20%(2)	0.20%(2)
One-Month Enhanced	0.30%(6)	0.20%(6)	0.35%	0.20%(6)	0.20%(6)
Combination Enhanced II	0.45%(3)	0.35%(2)	-	0.35%(2)	0.35%(2)
Combination Enhanced	0.40%(7)	0.30%(7)	0.45%	0.30%(7)	0.30%(7)
Return of Premium
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%	-	0.20%	0.20%
Beneficiary Protector II Option	0.35%	0.35%	0.35%	0.35%	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%(17)	1.00%	1.00%
Capital Preservation Plus Option	0.50%(17)	0.50%(17)	-	0.50%(17)	0.50%(17)
Lifetime Income Option
5% Lifetime Income Option (New York)	1.00%(12)	-	1.00%(12)	1.00%(12)	1.00%(12)
7% Lifetime Income Option (New York)			1.00%
7% Lifetime Income Option (Non-New York)	1.00%(13)	-	-	1.00%(13)	1.00%(13)
10% Lifetime Income Option	1.20%(14)	-	1.20%	1.20%(14)	1.20%(14)
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	0.15%	-	0.15%	0.15%	0.15%
7% Spousal Continuation Benefit (New York)			0.3%(20)
7% Spousal Continuation Benefit (Non-New York)	0.15%	-	-	0.15%	0.15%
10% Spousal Continuation Benefit (Non-New York)	0.30%(16)	-	0.30%(16)(21)	0.30%(16)	0.30%(16)
Extra Value Options (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	0.45%	-	-	-	-

Maximum Variable Account Charges* 4.05%(1) 3.00% 4.05%(1) 4.15%(1) 3.90%(1)

Nationwide Variable Account - II Options	Destination B	Destinnation EV	Destination Navigator	Destination  Navigator-NY
Variable Account Charges - Recurring	1.30%	1.85%	1.30%	1.30%
Death Benefit Options - Allows enhanced provisions in place of the standard death benefit.
One-Year Enhanced II		-
One-Year Enhanced	0.20%	0.20%	0.20%	0.20%
One-Month Enhanced II
One-Month Enhanced	0.35%	0.35%	0.35%
Combination Enhanced II
Combination Enhanced	0.45%	0.45%	0.45%
Return of Premium
Beneficiary Protector II Option
Upon death of the annuitant, in addition to any death benefit payable, the contract will be credited an additional amount.	0.35%	0.35%	0.35%	-
Lifetime Income Option
5% Lifetime Income Option (New York)				1.00%
5% Lifetime Income Option (Non-New York)	1.00%(17)		1.00%
7% Lifetime Income Option (New York)		1.00%		1.00%
7% Lifetime Income Option (Non-New York)	1.00%
10% Lifetime Income Option (New York)				1.20%
10% Lifetime Income Option (Non-New York)	1.20%	1.20%	1.20%
Spousal Continuation Benefit Option
5% Spousal Continuation Benefit (New York)	0.15%(17)			0.15%(19)
5% Spousal Continuation Benefit (Non-New York)			0.15%(19)
7% Spousal Continuation Benefit (New York)	0.30%(15)(20)	0.30%(15)(20)		0.30%(15)(20)
7% Spousal Continuation Benefit (Non-New York)
10% Spousal Continuation Benefit (New York)
10% Spousal Continuation Benefit (Non-New York)	0.30%(16)(21)	0.30%(16)(21)	0.30%(16)(21)
Reduced CDSC Option (“Liquidity Option”)			0.50%	0.50%

Maximum Variable Account Charges* 3.60% 4.15% 4.10% 3.30%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

(*) 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.

(1) The total variable account charges associated with this product may be higher or lower than this amount, depending on whether the Current Income Benefit Base or Guaranteed Lifetime Withdrawal Base is higher or lower than the daily net assets. For purposes of this table, the Company assumes the Current Income Benefit Base or Guaranteed Lifetime Withdrawal Base is equal to the daily net assets.

(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) Non-NY residents

(10) NY residents

(11) Available beginning May 1, 2007 or a later date if state law requires

(12) Currently, the charge associated with the 5% Lifetime Income Option is equal to 0.85% of the current income base and is assessed through the reduction of units.

(13) Currently, the charge associated with the 7% Lifetime Income Option is equal to 0.95% of the current income base and is assessed through the reduction of units.

(14) Currently, the charge associated with the 10% Lifetime Income Option is equal to 1.00% of the current income base and is assessed through the reduction of units.

(15) Currently, the charge associated with the 7% Spousal Continuation Benefit is equal to 0.15% of the current income base and is assessed through the reduction of units.

(16) Currently, the charge associated with the 10% Spousal Continuation Benefit is equal to 0.20% of the current income base and is assessed through the reduction of units.

(17) No longer available.

(18) This charge is a percentage of the Guaranteed Lifetime Withdrawal Base.

(19) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 5% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 5% Spousal Continuation Benefit is 0.15% of the Current Income Benefit Base.

(20) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there is currently no charge associated with the 7% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge associated with the 7% Spousal Continuation Benefit is equal to 0.15% of the Current Income Benefit Base.

(21) For contracts issued on or after December 5, 2011 or the date of state approval (whichever is later), there currently is no charge associated with the 10% Spousal Continuation Benefit. For contracts issued before December 5, 2011 or the date of state approval (whichever is later), the charge for the 10% Spousal Continuation Benefit is 0.20% of the Current Income Benefit Base.

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2011.

	Total		ALMCS		AFGF		AFHY		AFGC		MLVGA3		CHSMM		DSIF
0.40%	$	51,926	$	-	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		72,048		-		-		-		-		-		14		-
0.75%		307,638		-		-		-		-		2,160		11,033		-
0.80%		191,127		-		-		-		-		195		-		8,936
0.85%		454,811		-		-		-		-		892		14,319		-
0.95%		319,600		782		-		-		-		908		44,550		-
1.05%		305,269		3,200		-		-		-		1,466		47,949		-
1.10%		10,244,270		-		-		-		-		24,598		-		-
1.15%		43,610,469		-		-		-		-		91,525		-		-
1.20%		346,240		-		-		-		-		1,502		-		-
1.25%		5,057,086		-		-		-		-		40,656		-		-
1.30%		72,830,592		-		139,269		17,183		15,802		182,682		-		2,035,779
1.35%		10,733,764		-		-		-		-		60,748		2,556		-
1.40%		17,887,594		-		-		-		-		64,735		-		1,020,731
1.45%		5,989,711		1,167		-		-		-		31,422		19		-
1.50%		14,132,522		-		-		-		-		196,401		-		-
1.55%		35,909,471		-		-		-		-		169,845		1,357		-
1.60%		2,728,589		-		-		-		-		72,170		-		-
1.65%		10,777,624		-		-		-		-		54,272		-		-
1.70%		3,463,234		-		-		-		-		13,281		-		-
1.75%		83,127,306		-		-		-		-		316,866		-		-
1.80%		8,680,372		-		-		-		-		89,038		-		-
1.85%		6,568,362		-		-		-		-		23,276		-		-
1.90%		3,100,073		-		-		-		-		12,699		-		-
1.95%		15,544,642		-		-		-		-		137,502		-		-
2.00%		15,774,558		-		-		-		-		47,846		-		-
2.05%		4,283,574		-		-		-		-		5,226		-		-
2.10%		6,398,064		-		-		-		-		44,043		-		-
2.15%		10,727,788		-		-		-		-		10,772		-		-
2.20%		6,217,188		-		-		-		-		28,848		-		-
2.25%		6,053,675		-		-		-		-		545		-		-
2.30%		3,422,312		-		-		-		-		8,534		-		-
2.35%		23,301,832		-		-		-		-		18,623		-		-
2.40%		3,379,685		-		-		-		-		1,075		-		-
2.45%		2,058,223		-		-		-		-		4,488		-		-
2.50%		8,864,196		-		-		-		-		-		-		-
2.55%		2,120,950		-		-		-		-		1,624		-		-
2.60%		1,059,179		-		-		-		-		-		-		-
2.65%		255,265		-		-		-		-		522		-		-
2.70%		1,011,979		-		-		-		-		-		-		-
2.75%		227,953		-		-		-		-		-		-		-
2.80%		303,788		-		-		-		-		-		-		-
2.85%		223,405		-		-		-		-		-		-		-
2.90%		180,592		-		-		-		-		-		-		-
2.95%		176,225		-		-		-		-		-		-		-
3.00%		66,869		-		-		-		-		-		-		-
3.05%		62,858		-		-		-		-		-		-		-
3.10%		12,393		-		-		-		-		-		-		-
3.15%		652		-		-		-		-		-		-		-
3.20%		2,308		-		-		-		-		-		-		-
3.25%		6,939		-		-		-		-		-		-		-
3.30%		1,937		-		-		-		-		-		-		-
3.40%		351		-		-		-		-		-		-		-
Totals	$	448,629,078	$	5,149	$	139,269	$	17,183	$	15,802	$	1,760,985	$	121,797	$	3,065,446

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	DSIFS		DSRG		HVIE		HVSIT		JPMMV1		JABS		JACAS		JAGTS2
0.40%	$	146	$	-	$	27	$	-	$	-	$	-	$	160	$	-
0.65%		98		-		3		-		-		-		285		-
0.75%		2,378		-		421		135		-		-		719		12
0.80%		-		2,291		-		-		178		-		2,505		160
0.85%		6,865		-		5		104		-		-		3,945		6
0.95%		17,536		-		-		-		-		12,672		9,167		436
1.05%		14,364		-		-		-		-		20,824		9,334		227
1.10%		32,103		-		13		11		-		352		21,192		701
1.15%		303,730		-		1,960		5,932		-		20,212		197,261		8,547
1.20%		7,778		-		-		-		-		135		190		-
1.25%		44,604		-		132		324		-		13,445		20,980		946
1.30%		81,714		438,932		13,343		24,943		60,021		82		328,459		72,350
1.35%		60,841		-		176		1,353		-		227		75,496		4,150
1.40%		18,378		125,255		-		-		20,164		629		69,096		17,196
1.45%		67,691		-		140		96		-		6,746		34,715		2,763
1.50%		102,336		-		3,859		5,859		-		9,012		57,415		10,643
1.55%		199,250		-		4,130		7,090		-		31,840		169,924		9,453
1.60%		35,158		-		757		1,836		-		2,067		22,955		3,484
1.65%		63,949		-		726		2,769		-		1,694		42,501		13,239
1.70%		16,986		-		135		169		-		7,104		13,549		658
1.75%		199,274		-		4,429		19,829		-		5,499		275,665		7,308
1.80%		69,924		-		3,707		957		-		10,521		38,830		1,684
1.85%		44,606		-		1,723		3,939		-		1,958		26,547		1,372
1.90%		18,198		-		138		3,103		-		129		13,388		509
1.95%		40,753		-		1,669		1,631		-		3,580		55,528		2,619
2.00%		61,276		-		244		4,309		-		800		66,971		3,076
2.05%		27,076		-		734		2,311		-		6,508		8,789		1,279
2.10%		25,668		-		193		1,481		-		942		24,553		3,609
2.15%		18,332		-		189		635		-		503		28,600		1,458
2.20%		16,411		-		1,725		595		-		769		22,762		4,569
2.25%		8,223		-		32		13		-		937		9,839		-
2.30%		15,599		-		12		692		-		1,852		20,297		469
2.35%		16,362		-		367		765		-		-		53,593		-
2.40%		4,963		-		-		76		-		-		12,068		-
2.45%		3,359		-		-		79		-		2,554		8,357		638
2.50%		6,945		-		-		266		-		-		25,818		-
2.55%		1,312		-		-		1,239		-		-		6,208		84
2.60%		3,305		-		-		127		-		-		6,179		-
2.65%		1,042		-		-		-		-		-		1,279		-
2.70%		1,582		-		-		61		-		-		1,756		-
2.75%		438		-		-		-		-		-		433		-
2.80%		-		-		-		-		-		-		580		-
2.85%		660		-		-		-		-		-		89		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		72		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	1,661,213	$	566,478	$	40,989	$	92,729	$	80,363	$	163,593	$	1,788,049	$	173,645
	JAGTS		JAIGS2		JAIGS		MIGSC		MVFSC		MVIVSC		MSVFI		MSVF2
0.40%	$	-	$	-	$	-	$	-	$	129	$	80	$	-	$	-
0.65%		-		677		-		-		1,905		115		-		-
0.75%		-		2,504		-		-		4,116		768		-		-
0.80%		35		6,758		112		-		320		-		2		-
0.85%		-		6,394		-		-		12,019		533		-		1
0.95%		-		20,737		940		179		1,962		179		-		4,302
1.05%		-		18,804		350		-		832		185		-		1,292
1.10%		-		12,339		-		782		66,846		1,944		-		3,502
1.15%		-		209,205		7,379		16,990		512,232		39,125		-		35,413
1.20%		-		194		-		1,168		5,159		-		-		96
1.25%		-		29,903		4,130		12,736		49,830		2,864		-		9,256
1.30%		18,338		521,046		51,145		318		256,709		106,144		15,541		-
1.35%		-		77,295		-		2,959		123,738		11,187		-		10,477
1.40%		8,293		120,339		21,278		2,011		81,833		9,697		7,218		3,675
1.45%		-		35,298		106		3,592		80,463		4,697		-		12,353
1.50%		-		39,169		709		18,207		122,510		26,444		-		25,310
1.55%		-		206,511		3,961		24,896		475,532		27,702		-		52,135
1.60%		-		29,593		46		4,005		35,179		10,611		-		4,327
1.65%		-		61,024		315		8,028		130,596		8,796		-		10,814
1.70%		-		16,456		3,352		5,992		71,539		1,360		-		14,763
1.75%		-		150,468		751		16,317		1,238,618		113,538		-		59,098
1.80%		-		54,642		1,148		8,210		137,315		8,165		-		14,223
1.85%		-		16,262		656		11,665		72,277		17,090		-		7,498
1.90%		-		18,041		-		2,432		32,764		2,839		-		2,638
1.95%		-		26,629		761		2,942		178,648		30,121		-		12,121
2.00%		-		42,434		-		2,808		306,029		19,616		-		16,799
2.05%		-		7,587		2,211		7,567		47,029		7,394		-		4,406
2.10%		-		27,511		869		5,610		87,781		6,595		-		5,412
2.15%		-		12,142		201		3,225		232,976		4,197		-		4,606
2.20%		-		22,539		-		1,583		68,679		9,559		-		4,009
2.25%		-		616		-		1,441		115,521		616		-		2,627
2.30%		-		7,694		-		3,627		33,280		4,363		-		2,691
2.35%		-		3,507		-		1,737		629,455		7,350		-		15,635
2.40%		-		395		-		-		71,775		2,314		-		2,495
2.45%		-		4,543		-		1,287		40,131		3,150		-		443
2.50%		-		262		-		511		34,075		2,462		-		11,249
2.55%		-		4,533		-		72		51,047		1,105		-		893
2.60%		-		-		-		-		30,063		199		-		1,038
2.65%		-		919		-		-		1,209		770		-		83
2.70%		-		-		-		-		12,115		34		-		150
2.75%		-		-		-		2		2,761		-		-		-
2.80%		-		2,087		-		29		1,726		5		-		-
2.85%		-		-		-		-		486		-		-		-
2.90%		-		-		-		-		3,532		-		-		-
2.95%		-		-		-		-		634		-		-		43
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		851		-		-		629
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		61		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	26,666	$	1,817,057	$	100,420	$	172,928	$	5,464,287	$	493,913	$	22,761	$	356,502

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	MSEM		MSEMB		VKVGR2		MSVRE		MSVREB		VFMG2		NVAMV1		NVAMV2
0.40%	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	37
0.65%		-		-		-		-		-		-		-		157
0.75%		-		-		-		-		-		-		-		884
0.80%		24		-		-		-		-		-		1,752		-
0.85%		-		-		-		-		-		-		-		1,946
0.95%		-		-		-		-		-		-		-		7,701
1.05%		-		-		-		-		-		-		-		7,269
1.10%		-		417		-		-		-		-		-		39,862
1.15%		-		2,671		-		-		59		20,900		-		338,770
1.20%		-		-		-		-		-		-		-		2,268
1.25%		-		1,442		-		-		-		19,952		-		56,054
1.30%		35,448		-		-		364		-		-		557,931		61,124
1.35%		-		-		-		-		8		2,657		-		126,782
1.40%		14,469		559		-		208		-		292		203,370		38,063
1.45%		-		778		-		-		-		142		-		82,539
1.50%		-		4,665		-		-		22		-		-		70,232
1.55%		-		1,686		-		-		-		74		-		318,923
1.60%		-		27		-		-		-		426		-		16,416
1.65%		-		221		-		-		-		1,194		-		89,263
1.70%		-		402		-		-		-		-		-		40,548
1.75%		-		653		43		-		-		5,792		-		441,737
1.80%		-		615		-		-		-		-		-		84,880
1.85%		-		186		-		-		-		1,261		-		51,831
1.90%		-		-		-		-		-		308		-		26,471
1.95%		-		177		-		-		-		613		-		56,878
2.00%		-		-		-		-		-		-		-		64,822
2.05%		-		574		-		-		-		-		-		30,450
2.10%		-		-		-		-		-		-		-		43,950
2.15%		-		-		-		-		-		-		-		60,176
2.20%		-		-		-		-		-		641		-		29,893
2.25%		-		-		-		-		-		-		-		28,981
2.30%		-		-		-		-		-		-		-		25,630
2.35%		-		-		-		-		-		87		-		74,632
2.40%		-		-		-		-		-		-		-		14,980
2.45%		-		-		-		-		-		-		-		12,180
2.50%		-		-		-		-		-		-		-		34,915
2.55%		-		-		-		-		-		-		-		3,401
2.60%		-		-		-		-		-		-		-		6,109
2.65%		-		-		-		-		-		-		-		1,035
2.70%		-		-		-		-		-		-		-		2,568
2.75%		-		-		-		-		-		-		-		60
2.80%		-		-		-		-		-		-		-		6,757
2.85%		-		-		-		-		-		-		-		1,391
2.90%		-		-		-		-		-		-		-		1,587
2.95%		-		-		-		-		-		-		-		535
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		119
3.40%		-		-		-		-		-		-		-		-
	$	49,941	$	15,073	$	43	$	572	$	89	$	54,339	$	763,053	$	2,404,806
	GVAAA2		GVABD2		GVAGG2		GVAGR2		GVAGI2		HIBF		HIBF3		GEM
0.40%	$	-	$	-	$	45	$	27	$	113	$	-	$	-	$	-
0.65%		4,461		1,101		14		97		1,116		-		-		-
0.75%		7,926		2,466		1,461		678		3,639		-		69		-
0.80%		571		439		618		1,538		287		-		111		54
0.85%		5,402		2,457		854		2,749		4,328		-		365		-
0.95%		283		4,769		1,648		2,616		1,516		871		7,469		-
1.05%		2,199		3,068		1,902		2,173		742		94		3,530		-
1.10%		1,589,783		401,760		26,963		58,625		368,444		398		4,668		-
1.15%		4,675,109		1,564,247		229,648		367,173		1,436,059		19,075		202,305		-
1.20%		8,903		6,074		1,301		2,013		4,235		1,105		143		-
1.25%		443,639		106,237		28,471		36,073		86,550		10,812		23,850		-
1.30%		5,322,514		1,637,550		225,958		337,703		1,540,760		43		129,511		1,659
1.35%		1,113,197		353,083		88,144		130,158		347,223		4,384		50,068		-
1.40%		272,779		77,692		44,341		74,795		28,418		1,213		49,334		3,646
1.45%		437,920		171,891		33,247		64,025		141,414		5,164		50,304		-
1.50%		1,721,411		539,778		87,652		141,663		521,769		4,652		86,433		-
1.55%		3,713,298		1,391,146		217,446		395,683		1,298,808		27,264		196,107		-
1.60%		106,024		38,983		25,207		64,109		44,808		2,418		45,828		-
1.65%		790,671		212,813		52,439		89,399		174,737		5,376		63,451		-
1.70%		277,501		133,875		25,290		37,557		113,204		4,993		10,686		-
1.75%		9,287,850		2,621,517		359,003		638,765		2,448,158		6,670		137,786		-
1.80%		522,916		180,711		41,483		93,015		135,358		10,052		76,559		-
1.85%		660,818		248,091		22,962		50,056		230,208		7,896		29,762		-
1.90%		183,446		167,622		10,348		22,163		162,564		973		16,964		-
1.95%		1,739,686		503,316		63,288		112,529		480,770		205		20,927		-
2.00%		1,143,804		369,434		46,434		102,288		357,040		1,192		48,842		-
2.05%		257,278		191,062		12,251		17,601		177,495		547		5,034		-
2.10%		595,106		169,169		27,792		49,200		150,215		3,042		13,110		-
2.15%		358,641		262,090		14,063		33,356		252,822		652		8,475		-
2.20%		612,746		238,540		19,222		41,357		231,360		-		15,629		-
2.25%		588,331		575,654		8,213		23,671		556,700		-		6,169		-
2.30%		249,291		180,615		12,376		19,728		188,400		20		3,454		-
2.35%		1,380,823		1,345,697		26,853		67,351		1,308,660		628		7,922		-
2.40%		284,922		266,610		5,414		5,508		256,314		-		263		-
2.45%		165,557		117,099		5,043		9,408		105,495		-		5,046		-
2.50%		1,242,284		1,280,994		20,747		33,267		1,252,505		-		150		-
2.55%		147,141		121,029		2,111		5,694		116,618		-		9,044		-
2.60%		46,353		51,509		4,273		3,228		44,950		-		-		-
2.65%		22,242		22,076		2,016		3,184		23,129		-		20		-
2.70%		88,858		87,668		799		3,020		85,150		-		-		-
2.75%		18,870		18,417		171		336		16,910		-		2		-
2.80%		40,221		21,861		339		2,412		20,865		-		3,329		-
2.85%		25,743		27,511		-		684		26,285		-		-		-
2.90%		7,990		7,293		480		1,088		7,175		-		-		-
2.95%		27,234		27,929		227		148		27,808		-		-		-
3.00%		2,005		2,053		-		-		2,046		-		-		-
3.05%		4,779		4,895		123		344		4,880		-		-		-
3.10%		687		704		-		-		702		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		1,169		1,197		-		-		1,194		-		-		-
3.30%		-		85		58		59		59		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	40,200,382	$	15,761,877	$	1,798,738	$	3,148,314	$	14,790,005	$	119,739	$	1,332,719	$	5,359

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	GEM2		GEM3		GEM6		GIG		GIG3		NVIE6		NVNMO1		NVNMO2
0.40%	$	-	$	-	$	-	$	-	$	-	$	28	$	-	$	1
0.65%		-		-		-		-		-		10		-		27
0.75%		-		-		848		-		-		450		-		447
0.80%		-		1,381		-		54		916		-		2,745		-
0.85%		-		-		1,162		-		-		240		-		58
0.95%		-		-		921		-		-		228		-		205
1.05%		-		-		1,587		-		-		457		-		40
1.10%		245		-		8,604		-		-		6,611		-		7,244
1.15%		5,160		-		164,167		-		-		41,259		-		25,045
1.20%		477		-		253		-		-		-		-		116
1.25%		2,160		-		15,413		-		-		4,426		-		7,760
1.30%		-		343,857		17,805		117		243,948		18,621		746,693		33,047
1.35%		-		-		41,405		-		-		11,802		-		14,145
1.40%		2,336		70,359		5,155		337		151,262		1,516		428,974		3,446
1.45%		475		-		31,897		-		-		23,330		-		1,794
1.50%		741		-		41,544		-		-		17,877		-		14,042
1.55%		4,369		-		128,841		-		-		39,375		-		40,013
1.60%		15		-		28,624		-		-		9,153		-		2,629
1.65%		364		-		35,126		-		-		11,094		-		40,817
1.70%		796		-		15,526		-		-		4,878		-		889
1.75%		716		-		93,043		-		-		79,314		-		64,052
1.80%		1,380		-		36,102		-		-		8,218		-		10,790
1.85%		1,718		-		16,244		-		-		7,842		-		5,210
1.90%		1,044		-		6,238		-		-		5,212		-		1,311
1.95%		695		-		29,051		-		-		12,009		-		22,180
2.00%		-		-		33,341		-		-		16,647		-		29,466
2.05%		91		-		4,691		-		-		3,632		-		6,889
2.10%		198		-		31,861		-		-		7,639		-		8,703
2.15%		826		-		7,063		-		-		2,198		-		4,820
2.20%		172		-		11,238		-		-		5,302		-		10,331
2.25%		140		-		3,124		-		-		1,950		-		727
2.30%		-		-		7,454		-		-		7,494		-		7,866
2.35%		-		-		4,566		-		-		10,181		-		5,354
2.40%		-		-		516		-		-		1,151		-		1,232
2.45%		311		-		8,642		-		-		792		-		6,661
2.50%		-		-		644		-		-		2,726		-		1,284
2.55%		-		-		2,754		-		-		3,644		-		1,205
2.60%		-		-		-		-		-		435		-		-
2.65%		-		-		1,813		-		-		90		-		2,490
2.70%		-		-		146		-		-		-		-		-
2.75%		-		-		494		-		-		426		-		32
2.80%		-		-		1,216		-		-		1,301		-		10,203
2.85%		-		-		-		-		-		-		-		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	24,429	$	415,597	$	839,119	$	508	$	396,126	$	369,558	$	1,178,412	$	392,571
	NVNSR1		NVNSR2		NVCRA2		NVCRB2		NVCCA2		NVCCN2		NVCMD2		NVCMA2
0.40%	$	-	$	17	$	-	$	626	$	839	$	-	$	961	$	-
0.65%		-		1,255		-		2,535		7,366		395		3,210		-
0.75%		-		3,964		413		11,430		16,664		3,009		29,002		16,916
0.80%		118		-		82		50		712		-		-		96
0.85%		-		9,955		458		18,898		48,922		9,410		24,639		2,644
0.95%		-		97		-		-		-		-		-		-
1.05%		-		263		-		-		-		-		-		-
1.10%		-		32,740		2,415		991,075		954,517		337,621		1,339,395		106,860
1.15%		-		263,234		59,423		1,380,818		2,914,428		694,785		2,912,208		831,928
1.20%		-		3,434		336		10,130		9,151		24,427		24,242		-
1.25%		-		19,857		7,306		213,914		268,682		99,019		270,122		39,215
1.30%		23,590		40,358		24,913		2,580,994		3,579,346		810,936		3,572,868		89,933
1.35%		-		55,913		10,024		263,643		794,872		142,499		708,757		203,796
1.40%		4,986		28,575		2,419		41,438		17,138		44,515		84,955		32,118
1.45%		-		35,275		4,276		156,299		206,379		154,891		277,495		83,687
1.50%		-		49,955		8,864		745,596		1,329,860		221,079		1,184,682		112,329
1.55%		-		273,951		33,774		1,024,454		1,783,972		754,865		1,960,277		718,342
1.60%		-		12,654		15,351		40,349		26,807		29,789		65,986		17,887
1.65%		-		79,589		8,869		254,543		341,460		225,375		525,541		212,657
1.70%		-		42,742		6,500		66,135		164,360		15,355		115,926		37,057
1.75%		-		781,925		43,695		2,725,549		7,498,902		1,724,669		6,312,464		1,584,900
1.80%		-		71,029		14,279		168,619		229,271		206,481		359,983		152,469
1.85%		-		34,091		934		309,664		536,121		164,983		392,441		77,383
1.90%		-		23,858		70		177,121		367,436		23,999		144,070		27,878
1.95%		-		94,052		18,171		600,412		1,755,334		313,334		1,114,523		251,284
2.00%		-		229,757		31,414		452,757		596,575		395,125		910,323		346,276
2.05%		-		33,140		1,351		115,717		224,482		19,409		123,960		101,673
2.10%		-		51,936		37,768		160,391		430,053		273,513		356,231		92,683
2.15%		-		185,734		1,371		260,589		420,381		38,649		282,831		341,164
2.20%		-		43,344		10,022		352,953		408,349		158,254		458,797		102,960
2.25%		-		84,961		-		392,274		61,531		28,477		43,421		54,164
2.30%		-		14,229		679		172,138		290,845		68,317		179,242		84,829
2.35%		-		494,194		2,519		1,649,554		496,802		86,608		623,498		249,030
2.40%		-		54,252		3,691		172,971		103,518		20,567		65,958		55,280
2.45%		-		30,387		235		190,864		137,838		29,394		59,920		18,794
2.50%		-		3,813		-		2,145,733		232,571		71,386		71,672		20,617
2.55%		-		40,708		2,751		89,084		142,544		15,936		73,095		2,400
2.60%		-		18,336		47,916		94,843		720		11,000		23,513		6,152
2.65%		-		2,100		193		2,757		7,965		2,693		13,157		3,556
2.70%		-		9,892		-		206,682		14,388		5,272		26,359		5,940
2.75%		-		2,248		-		15,146		-		2,874		10,551		-
2.80%		-		1,489		-		815		962		11,831		-		1,677
2.85%		-		339		-		32,809		9,578		2,983		12,336		-
2.90%		-		3,140		-		966		-		-		4,456		1,424
2.95%		-		598		-		6,225		3,905		249		5,329		-
3.00%		-		-		-		560		1,254		-		-		-
3.05%		-		307		-		8,870		-		3,210		-		2,343
3.10%		-		-		-		1,023		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		61		-		-		-		-		-		-
3.25%		-		-		-		2,178		-		-		971		137
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		351		-
	$	28,694	$	3,263,748	$	402,482	$	18,312,191	$	26,436,800	$	7,247,183	$	24,769,718	$	6,090,478

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	NVCMC2		NVCBD1		NVCBD2		NVLCP2		TRF		TRF2		GBF		CAF
0.40%	$	82	$	-	$	88	$	3	$	-	$	-	$	96	$	-
0.65%		2,626		-		1,455		-		-		1,203		2,137		-
0.75%		6,276		-		3,599		835		-		2,120		7,409		-
0.80%		39		68		-		560		23,493		-		3,558		5,087
0.85%		13,248		-		8,323		216		-		7,913		16,652		-
0.95%		-		-		1,848		23		-		1,828		13,760		-
1.05%		-		-		1,711		107		-		2,885		11,582		-
1.10%		383,179		-		36,798		12,369		-		30,478		53,483		-
1.15%		835,933		-		187,067		40,754		-		276,950		652,762		-
1.20%		2,745		-		2,819		-		-		3,540		5,610		-
1.25%		97,088		-		21,206		9,317		-		20,304		74,592		-
1.30%		933,437		20,493		25,440		66,890		1,300,765		12,045		1,094,486		343,388
1.35%		190,154		-		34,991		8,896		-		60,953		170,362		-
1.40%		34,385		10,305		22,410		16,134		461,998		28,506		508,476		113,059
1.45%		111,638		-		34,254		17,899		-		33,442		109,839		-
1.50%		303,973		-		36,420		27,999		-		40,015		107,994		-
1.55%		790,013		-		176,625		55,810		-		296,756		561,376		-
1.60%		35,283		-		15,812		8,705		-		6,183		39,585		-
1.65%		182,006		-		55,060		24,381		-		80,421		160,675		-
1.70%		35,629		-		39,687		3,804		-		46,447		69,786		-
1.75%		1,397,843		-		525,182		119,846		-		771,856		1,077,457		-
1.80%		263,492		-		60,100		9,986		-		73,648		162,313		-
1.85%		185,364		-		22,264		15,717		-		25,853		53,702		-
1.90%		83,339		-		4,223		2,136		-		9,251		19,432		-
1.95%		256,362		-		59,850		28,584		-		87,119		175,260		-
2.00%		227,348		-		190,898		11,376		-		201,458		303,336		-
2.05%		18,508		-		24,934		5,128		-		28,351		42,859		-
2.10%		101,045		-		30,145		3,831		-		45,074		66,904		-
2.15%		86,103		-		123,900		6,865		-		190,317		220,793		-
2.20%		140,327		-		33,860		14,500		-		38,842		95,670		-
2.25%		63,601		-		108,498		1,768		-		80,015		130,987		-
2.30%		108,727		-		5,838		9,986		-		8,861		23,126		-
2.35%		79,599		-		529,973		9,333		-		477,547		682,446		-
2.40%		33,839		-		38,084		1,417		-		55,160		72,734		-
2.45%		29,745		-		29,618		3,597		-		24,782		35,601		-
2.50%		147,388		-		3,160		3,097		-		2,681		23,456		-
2.55%		9,932		-		34,885		130		-		34,826		48,672		-
2.60%		15,959		-		19,614		254		-		19,332		26,998		-
2.65%		6,555		-		493		1,542		-		627		3,896		-
2.70%		38,402		-		8,929		1,816		-		11,092		13,896		-
2.75%		4,727		-		3,048		1		-		2,660		8,923		-
2.80%		2,758		-		1,610		-		-		1,476		2,076		-
2.85%		19,027		-		275		-		-		372		589		-
2.90%		5,224		-		2,685		-		-		3,061		4,609		-
2.95%		25,637		-		360		-		-		636		769		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		293		-		-		299		380		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		62		62		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	7,308,585	$	30,866	$	2,568,332	$	545,612	$	1,786,256	$	3,147,247	$	6,961,166	$	461,534

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	CAF2		GVIX8		GVIDA		NVDBL2		NVDCA2		GVIDC		GVIDM		GVDMA
0.40%	$	1	$	-	$	-	$	12	$	23	$	-	$	3,710	$	-
0.65%		-		28		-		481		4,697		2,688		11,200		2,295
0.75%		80		97		1,036		5,080		17,258		6,377		25,477		6,680
0.80%		-		112		4,258		12		257		517		4,591		9,060
0.85%		-		1,333		1,052		19,696		15,996		8,225		21,244		3,339
0.95%		-		721		1,106		-		-		1,261		7,083		7,447
1.05%		-		1,638		1,879		502		-		1,815		6,931		11,282
1.10%		15		25,879		12,274		248,550		299,623		190,259		857,634		201,193
1.15%		2,361		37,302		262,635		543,913		1,133,212		813,101		4,353,371		2,650,964
1.20%		196		258		8,977		325		809		10,996		23,560		47,711
1.25%		-		1,871		47,820		69,412		53,323		78,103		439,119		239,963
1.30%		7,681		30,990		127,087		1,462,711		2,132,751		826,192		2,539,330		341,352
1.35%		372		10,350		73,591		104,502		211,652		131,351		896,572		553,392
1.40%		555		6,990		83,185		13,444		6,266		146,505		669,837		385,809
1.45%		429		7,755		41,060		17,907		114,501		116,939		401,417		296,393
1.50%		1,801		5,908		120,012		383,550		600,288		257,056		941,428		299,488
1.55%		2,162		29,696		196,314		312,128		673,613		640,144		2,996,094		2,213,112
1.60%		178		2,297		46,112		15,987		14,402		38,663		256,200		104,556
1.65%		592		30,168		393,434		62,852		179,049		232,238		1,311,045		1,139,724
1.70%		4		1,395		75,102		6,840		27,008		24,369		315,386		235,434
1.75%		12,882		29,755		999,001		952,756		2,940,668		1,380,626		8,630,866		6,063,089
1.80%		171		12,160		93,579		46,215		74,542		293,591		707,194		453,236
1.85%		1,823		4,039		110,101		48,756		212,513		133,266		518,317		340,594
1.90%		316		442		82,259		74,217		9,616		39,347		331,095		272,592
1.95%		1,623		7,752		286,181		215,933		652,228		134,981		1,368,903		1,069,075
2.00%		1,125		13,927		312,271		135,867		163,008		384,990		2,586,431		850,368
2.05%		251		1,620		323,592		31,014		49,775		41,545		552,275		577,882
2.10%		393		1,577		212,856		61,776		187,303		95,575		465,767		484,984
2.15%		1,392		959		442,582		101,139		100,963		76,803		1,819,478		1,646,717
2.20%		380		3,624		43,767		91,199		130,864		171,825		544,200		227,858
2.25%		298		1,173		275,114		97,551		12,704		26,205		693,752		278,475
2.30%		416		2,367		143,517		64,493		45,496		68,052		270,656		284,367
2.35%		1,234		6,891		464,446		286,773		65,139		102,147		3,915,413		1,197,485
2.40%		-		94		66,796		10,627		10,381		29,004		428,472		267,861
2.45%		-		2,622		59,371		13,102		25,754		13,921		141,433		87,758
2.50%		-		818		51,245		180,441		12,531		47,327		659,803		200,276
2.55%		806		75		105,641		8,341		23,024		27,574		299,586		140,221
2.60%		-		103		23,139		23,908		-		13,613		149,051		54,279
2.65%		-		752		7,715		6,268		356		8,119		10,364		21,934
2.70%		-		-		32,392		18,951		-		5,351		122,996		53,628
2.75%		-		152		1,125		2,912		-		10,796		14,422		18,196
2.80%		-		-		24,560		2,462		-		9,271		7,868		12,842
2.85%		-		-		3,038		16,855		-		3,992		13,892		5,842
2.90%		-		-		8,106		26,196		-		-		20,661		32,457
2.95%		-		-		122		7,533		-		-		10,724		2,685
3.00%		-		-		5,959		-		3,529		-		2,693		32,503
3.05%		-		-		6,678		8,752		-		-		940		8,968
3.10%		-		-		856		-		-		-		6,365		2,056
3.15%		-		-		-		-		-		-		652		-
3.20%		-		-		-		1,547		-		-		-		-
3.25%		-		-		-		-		-		-		93		-
3.30%		-		-		-		-		-		-		-		1,095
3.40%		-		-		-		-		-		-		-		-
	$	39,537	$	285,690	$	5,682,943	$	5,803,488	$	10,205,122	$	6,644,720	$	40,375,591	$	23,438,517
	GVDMC		MCIF		SAM		NVMIG3		NVMIG6		GVDIV2		GVDIV3		GVDIV6
0.40%	$	950	$	165	$	314	$	-	$	-	$	-	$	-	$	36
0.65%		4,286		43		1,158		-		1,211		-		-		103
0.75%		6,510		735		10,669		-		2,197		-		-		662
0.80%		3,047		1,702		12,128		1,433		-		-		179		-
0.85%		15,516		1,304		6,983		-		7,602		-		-		135
0.95%		4,495		926		8,501		-		666		353		-		2,703
1.05%		562		2,311		4,940		-		1,900		-		-		1,670
1.10%		235,877		5,319		66,461		-		32,511		-		-		21,432
1.15%		1,234,694		146,133		969,882		-		281,683		2,178		-		126,203
1.20%		5,969		1,640		7,941		-		3,731		-		-		1,314
1.25%		171,145		29,491		119,704		-		23,330		484		-		9,061
1.30%		829,819		425,308		1,889,396		367,853		24,924		-		63,487		42,844
1.35%		283,399		42,266		213,186		-		60,632		-		-		25,452
1.40%		172,724		126,617		943,738		166,782		29,042		201		27,357		7,145
1.45%		205,734		49,957		160,823		-		44,515		211		-		14,546
1.50%		275,147		32,799		240,799		-		48,315		857		-		31,085
1.55%		867,560		135,132		795,696		-		310,828		2,746		-		111,239
1.60%		78,155		23,251		148,493		-		7,809		220		-		6,965
1.65%		350,903		33,214		187,686		-		81,180		203		-		25,476
1.70%		64,743		16,653		63,159		-		44,778		78		-		15,211
1.75%		1,964,563		149,633		1,162,214		-		811,925		89		-		189,154
1.80%		281,035		44,767		284,976		-		73,142		793		-		23,284
1.85%		140,480		16,803		153,398		-		35,668		435		-		16,202
1.90%		185,434		6,925		36,588		-		9,230		108		-		11,628
1.95%		292,885		40,074		222,891		-		97,571		198		-		33,426
2.00%		616,048		33,663		285,264		-		199,789		-		-		40,858
2.05%		115,430		21,977		61,592		-		27,912		1,732		-		11,508
2.10%		98,872		16,688		151,729		-		49,263		382		-		15,136
2.15%		383,798		16,073		112,070		-		194,078		39		-		10,087
2.20%		150,702		18,738		186,386		-		39,241		-		-		9,982
2.25%		550,251		8,010		79,195		-		68,815		-		-		6,289
2.30%		92,535		9,431		48,661		-		9,817		-		-		13,783
2.35%		1,673,750		16,659		224,950		-		410,484		-		-		25,608
2.40%		236,622		5,003		30,752		-		56,447		-		-		2,612
2.45%		71,594		3,161		40,866		-		25,147		-		-		4,947
2.50%		459,760		6,723		51,867		-		3,124		-		-		13,415
2.55%		95,112		574		19,872		-		31,622		-		-		3,011
2.60%		25,100		120		13,821		-		14,253		-		-		1,621
2.65%		2,537		774		3,751		-		1,103		-		-		1,150
2.70%		34,643		267		4,320		-		10,257		-		-		1,058
2.75%		5,979		391		6,219		-		2,450		-		-		572
2.80%		4,419		52		1,200		-		1,587		-		-		7,633
2.85%		7,550		-		952		-		348		-		-		-
2.90%		7,726		-		1,077		-		2,942		-		-		697
2.95%		15,919		73		273		-		629		-		-		-
3.00%		14,267		-		-		-		-		-		-		-
3.05%		1,326		314		333		-		294		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		84		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		25		-		-		-		-		41
3.40%		-		-		-		-		-		-		-		-
	$	12,339,572	$	1,491,859	$	9,036,899	$	536,068	$	3,184,076	$	11,307	$	91,023	$	886,984

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	NVMLG1		NVMLG2		NVMLV1		NVMLV2		NVMMG1		NVMMG2		NVMMV2		SCGF
0.40%	$	-	$	36	$	-	$	-	$	-	$	1	$	1	$	-
0.65%		-		549		-		17		-		608		976		-
0.75%		-		1,617		-		1,025		-		1,216		1,746		-
0.80%		1,245		-		272		34		5,678		-		1,623		454
0.85%		-		3,356		-		205		-		4,122		5,050		-
0.95%		-		2,618		-		884		-		3,693		-		-
1.05%		-		2,046		-		489		-		2,022		27		-
1.10%		-		17,557		-		9,432		-		27,561		27,219		-
1.15%		-		205,083		-		75,932		-		232,127		180,224		-
1.20%		-		3,489		-		1,793		-		2,605		2,169		-
1.25%		-		33,418		-		19,657		-		29,212		16,715		-
1.30%		113,410		22,544		34,815		40,577		2,147,061		23,148		1,703,489		77,299
1.35%		-		51,112		-		18,297		-		62,102		45,753		-
1.40%		31,776		17,529		13,545		9,257		459,847		19,384		521,649		22,245
1.45%		-		31,740		-		12,912		-		37,791		25,954		-
1.50%		-		53,462		-		39,780		-		45,906		29,426		-
1.55%		-		241,274		-		98,598		-		236,682		204,984		-
1.60%		-		11,605		-		7,624		-		8,424		5,706		-
1.65%		-		64,624		-		21,009		-		78,333		53,471		-
1.70%		-		30,912		-		16,571		-		37,843		29,353		-
1.75%		-		411,482		-		97,313		-		507,925		524,027		-
1.80%		-		76,352		-		43,737		-		61,143		48,814		-
1.85%		-		30,940		-		21,245		-		32,800		19,916		-
1.90%		-		10,017		-		1,829		-		11,967		5,460		-
1.95%		-		61,973		-		34,199		-		71,970		68,008		-
2.00%		-		124,472		-		25,236		-		126,986		128,962		-
2.05%		-		25,999		-		12,433		-		19,605		19,691		-
2.10%		-		39,641		-		9,596		-		33,229		34,056		-
2.15%		-		99,332		-		11,325		-		118,492		130,071		-
2.20%		-		34,303		-		6,551		-		29,676		27,264		-
2.25%		-		41,070		-		5,009		-		44,547		52,551		-
2.30%		-		14,522		-		9,601		-		10,965		8,227		-
2.35%		-		208,938		-		8,087		-		262,407		282,162		-
2.40%		-		28,927		-		2,632		-		36,594		36,800		-
2.45%		-		19,249		-		4,617		-		17,294		16,509		-
2.50%		-		8,215		-		10,605		-		8,395		6,652		-
2.55%		-		15,700		-		140		-		18,494		21,439		-
2.60%		-		7,905		-		797		-		14,850		9,670		-
2.65%		-		2,444		-		1,642		-		668		351		-
2.70%		-		4,570		-		361		-		6,060		6,855		-
2.75%		-		1,154		-		28		-		2,046		1,511		-
2.80%		-		3,676		-		22		-		1,448		850		-
2.85%		-		125		-		-		-		168		222		-
2.90%		-		1,355		-		-		-		1,631		1,967		-
2.95%		-		316		-		26		-		336		457		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		128		-		-		-		148		209		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		30		-		-		-		38		53		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	146,431	$	2,067,406	$	48,632	$	681,124	$	2,612,586	$	2,292,662	$	4,308,289	$	99,998
	SCGF2		SCVF		SCVF2		SCF		SCF2		MSBF		NVSTB2		NVOLG1
0.40%	$	-	$	-	$	30	$	-	$	-	$	75	$	48	$	-
0.65%		37		-		10		-		-		282		109		-
0.75%		37		-		655		-		572		4,035		253		-
0.80%		-		2,073		-		5,926		-		685		152		10,476
0.85%		11		-		405		-		657		957		5		-
0.95%		414		-		1,395		-		4,298		5,853		1,268		-
1.05%		-		-		196		-		2,764		3,036		965		-
1.10%		1,822		-		1,771		-		7,747		25,450		26,786		-
1.15%		34,922		-		57,141		-		131,280		195,352		145,936		1
1.20%		5		-		201		-		662		734		948		-
1.25%		8,190		-		20,872		-		32,187		32,060		7,776		-
1.30%		9,282		340,769		9,489		740,768		13,613		295,582		75,750		3,549,244
1.35%		6,878		-		19,274		-		59,449		56,736		26,917		-
1.40%		2,832		132,333		3,913		338,654		7,093		61,045		30,487		1,469,110
1.45%		12,406		-		28,375		-		30,060		51,716		24,800		-
1.50%		11,834		-		18,036		-		29,943		88,671		48,781		-
1.55%		43,608		-		53,783		-		86,905		199,568		114,912		-
1.60%		5,938		-		8,626		-		9,076		19,349		22,890		-
1.65%		11,318		-		14,253		-		27,597		52,087		25,163		-
1.70%		12,534		-		5,488		-		24,745		13,518		16,752		-
1.75%		41,477		-		36,849		-		72,514		348,450		230,695		-
1.80%		14,257		-		14,943		-		22,819		50,132		28,070		-
1.85%		12,033		-		9,861		-		8,542		47,152		20,532		-
1.90%		3,233		-		3,592		-		12,110		22,471		20,577		-
1.95%		8,767		-		9,757		-		13,439		81,902		39,161		-
2.00%		16,932		-		11,120		-		15,099		66,533		41,654		-
2.05%		4,043		-		2,903		-		2,686		25,263		8,801		-
2.10%		7,930		-		6,994		-		7,561		32,578		23,329		-
2.15%		5,457		-		3,198		-		6,140		17,903		22,886		-
2.20%		17,308		-		2,570		-		5,189		27,600		18,121		-
2.25%		2,035		-		1,656		-		1,796		24,713		25,924		-
2.30%		1,341		-		2,897		-		8,361		27,494		11,025		-
2.35%		6,958		-		3,574		-		4,073		93,903		56,496		-
2.40%		698		-		471		-		870		6,545		12,140		-
2.45%		1,537		-		682		-		439		31,836		5,304		-
2.50%		2,711		-		1,359		-		977		44,126		56,183		-
2.55%		244		-		309		-		2,966		8,911		6,566		-
2.60%		213		-		204		-		171		5,711		12,563		-
2.65%		199		-		-		-		49		6,829		2,447		-
2.70%		-		-		313		-		145		1,119		2,762		-
2.75%		6		-		-		-		-		557		2,875		-
2.80%		7,542		-		-		-		236		1,324		576		-
2.85%		-		-		-		-		341		1,719		681		-
2.90%		-		-		25		-		327		-		884		-
2.95%		-		-		-		-		200		337		281		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		59		-
3.40%		-		-		-		-		-		-		-		-
	$	316,989	$	475,175	$	357,190	$	1,085,348	$	655,698	$	2,081,899	$	1,221,290	$	5,028,831

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	NVOLG2		NVTIV3		EIF2		NVRE1		NVRE2		ALVBWB		ALVGIB		ALVSVB
0.40%	$	-	$	109	$	-	$	-	$	-	$	91	$	-	$	11
0.65%		73		1,208		253		-		43		-		-		75
0.75%		345		3,409		1,555		-		404		-		-		1,036
0.80%		-		-		91		5,239		-		-		-		766
0.85%		652		8,323		2,191		-		591		-		-		288
0.95%		3,309		33		33		-		5,405		-		2,407		1,201
1.05%		5,368		8		141		-		2,124		-		1,780		2,319
1.10%		30,610		54,749		29,369		-		5,995		-		328		13,618
1.15%		630,311		365,286		189,417		-		201,585		-		12,703		63,334
1.20%		7,325		3,576		1,936		-		514		-		700		658
1.25%		167,085		24,076		29,089		-		31,111		-		13,434		12,620
1.30%		36,632		165,055		137,260		624,397		9,648		-		1,727		104,293
1.35%		253,874		77,174		41,622		-		48,926		-		83		21,860
1.40%		58,801		32,549		28,156		287,622		11,540		-		596		23,127
1.45%		148,557		40,707		25,620		-		41,528		-		7,553		12,671
1.50%		153,396		88,275		88,705		-		51,994		-		10,225		41,989
1.55%		603,302		355,380		217,632		-		185,924		-		15,748		77,682
1.60%		62,552		9,662		19,211		-		21,435		-		2,802		10,306
1.65%		190,761		92,621		51,189		-		34,610		-		1,455		31,503
1.70%		70,146		44,992		47,560		-		21,511		-		3,248		14,741
1.75%		525,398		995,341		483,346		-		112,777		-		7,219		121,388
1.80%		232,594		80,188		59,196		-		57,100		-		10,862		29,094
1.85%		123,319		45,006		38,701		-		23,094		-		1,057		18,109
1.90%		27,592		10,301		11,087		-		7,831		-		3,484		3,530
1.95%		102,139		154,303		73,332		-		25,268		-		1,348		43,099
2.00%		135,495		230,090		101,873		-		31,757		-		236		27,618
2.05%		73,752		31,988		17,498		-		7,584		-		2,528		6,090
2.10%		92,005		65,929		33,014		-		26,924		-		1,995		11,656
2.15%		126,213		204,033		80,360		-		6,002		-		1,730		11,150
2.20%		56,543		55,783		37,456		-		31,966		-		85		6,846
2.25%		31,181		70,276		15,912		-		3,025		-		608		4,941
2.30%		35,753		18,521		16,565		-		7,902		-		822		13,293
2.35%		75,701		443,191		116,946		-		3,866		-		-		17,973
2.40%		31,370		58,508		21,734		-		1,512		-		263		1,806
2.45%		11,141		34,104		11,036		-		2,037		-		109		6,501
2.50%		17,444		2,946		13,998		-		22		-		-		10,102
2.55%		7,447		34,960		13,133		-		1,480		-		45		2,804
2.60%		8,387		15,298		3,933		-		-		-		36		625
2.65%		2,091		3,012		1,726		-		157		-		-		-
2.70%		1,983		10,608		3,001		-		81		-		-		419
2.75%		155		2,514		873		-		-		-		-		582
2.80%		2,674		1,333		4,474		-		2,852		-		-		1,339
2.85%		185		357		115		-		-		-		-		-
2.90%		-		3,060		787		-		-		-		-		-
2.95%		251		668		351		-		-		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		295		65		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		84		30		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	4,143,912	$	3,939,889	$	2,071,572	$	917,258	$	1,028,125	$	91	$	107,216	$	773,063
	ACVB		ACVCA		ACVIG		ACVIG2		ACVIP2		ACVI		ACVI3		ACVI4
0.40%	$	-	$	-	$	-	$	-	$	337	$	-	$	-	$	-
0.65%		-		-		-		-		497		-		-		-
0.75%		-		-		-		-		3,689		-		-		-
0.80%		1,475		-		443		-		753		-		-		-
0.85%		-		-		-		-		11,047		-		-		-
0.95%		-		-		-		3,126		14,051		-		-		-
1.05%		-		-		-		3,936		8,703		-		-		-
1.10%		-		-		-		-		42,374		-		-		-
1.15%		-		-		-		13,526		369,867		-		-		-
1.20%		-		-		-		-		2,287		-		-		-
1.25%		-		-		-		6,703		82,368		-		-		-
1.30%		328,694		1,316		140,411		-		461,025		110		3		-
1.35%		-		-		-		354		88,320		-		-		-
1.40%		143,344		72		50,894		2,548		128,715		193		-		-
1.45%		-		-		-		2,505		74,850		-		-		-
1.50%		-		-		-		2,289		122,141		-		-		-
1.55%		-		-		-		18,077		402,418		-		-		1
1.60%		-		-		-		582		57,739		-		-		-
1.65%		-		-		-		1,043		112,159		-		-		-
1.70%		-		-		-		348		26,618		-		-		-
1.75%		-		-		-		1,479		555,228		-		-		-
1.80%		-		-		-		3,292		128,660		-		-		-
1.85%		-		-		-		2,412		73,797		-		-		-
1.90%		-		-		-		626		11,469		-		-		-
1.95%		-		-		-		3,081		148,146		-		-		-
2.00%		-		-		-		-		83,347		-		-		-
2.05%		-		-		-		1,376		41,208		-		-		-
2.10%		-		-		-		4,910		74,031		-		-		-
2.15%		-		-		-		48		33,036		-		-		-
2.20%		-		-		-		370		77,223		-		-		-
2.25%		-		-		-		-		33,024		-		-		-
2.30%		-		-		-		23		36,926		-		-		-
2.35%		-		-		-		-		65,451		-		-		-
2.40%		-		-		-		81		12,346		-		-		-
2.45%		-		-		-		19		14,311		-		-		-
2.50%		-		-		-		-		41,592		-		-		-
2.55%		-		-		-		78		8,557		-		-		-
2.60%		-		-		-		-		10,274		-		-		-
2.65%		-		-		-		-		137		-		-		-
2.70%		-		-		-		-		1,786		-		-		-
2.75%		-		-		-		-		182		-		-		-
2.80%		-		-		-		-		382		-		-		-
2.85%		-		-		-		-		575		-		-		-
2.90%		-		-		-		-		68		-		-		-
2.95%		-		-		-		-		550		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		316		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		86		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	473,513	$	1,388	$	191,748	$	72,832	$	3,462,666	$	303	$	3	$	1

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	ACVMV1		ACVMV2		ACVU2		ACVVS1		DVSCS		DCAP
0.40%	$	-	$	33	$	-	$	-	$	73	$	-
0.65%		-		10		-		-		126		-
0.75%		-		2,073		-		-		1,394		-
0.80%		1,428		-		-		-		544		1,700
0.85%		-		2,131		-		-		2,575		-
0.95%		-		1,366		-		-		2,719		-
1.05%		-		1,052		-		-		5,000		-
1.10%		-		22,698		-		-		8,899		-
1.15%		-		104,200		-		-		135,471		-
1.20%		-		367		-		-		1,221		-
1.25%		-		14,704		-		-		17,815		-
1.30%		68,720		57,622		-		91		152,408		298,009
1.35%		-		35,679		-		-		31,930		-
1.40%		21,911		10,296		-		-		41,156		102,529
1.45%		-		20,007		-		-		35,660		-
1.50%		-		33,952		-		-		44,240		-
1.55%		-		120,178		108		-		124,658		-
1.60%		-		14,521		-		-		13,325		-
1.65%		-		24,214		-		-		21,647		-
1.70%		-		9,884		-		-		11,281		-
1.75%		-		198,279		-		-		209,196		-
1.80%		-		31,897		-		-		62,709		-
1.85%		-		21,309		-		-		17,228		-
1.90%		-		6,260		-		-		4,140		-
1.95%		-		53,826		-		-		34,896		-
2.00%		-		24,262		-		-		38,427		-
2.05%		-		8,812		-		-		7,657		-
2.10%		-		23,245		-		-		16,696		-
2.15%		-		23,213		-		-		35,483		-
2.20%		-		35,578		-		-		13,670		-
2.25%		-		4,758		-		-		5,251		-
2.30%		-		8,883		-		-		5,276		-
2.35%		-		21,679		-		-		36,998		-
2.40%		-		4,738		-		-		9,622		-
2.45%		-		5,734		-		-		2,733		-
2.50%		-		21,238		-		-		4,077		-
2.55%		-		2,240		-		-		3,708		-
2.60%		-		1,737		-		-		3,235		-
2.65%		-		1,733		-		-		611		-
2.70%		-		2,361		-		-		1,203		-
2.75%		-		42		-		-		292		-
2.80%		-		340		-		-		194		-
2.85%		-		569		-		-		64		-
2.90%		-		-		-		-		298		-
2.95%		-		251		-		-		77		-
3.00%		-		-		-		-		-		-
3.05%		-		-		-		-		38		-
3.10%		-		-		-		-		-		-
3.15%		-		-		-		-		-		-
3.20%		-		-		-		-		14		-
3.25%		-		-		-		-		-		-
3.30%		-		50		-		-		-		-
3.40%		-		-		-		-		-		-
	$	92,059	$	978,021	$	108	$	91	$	1,165,935	$	402,238

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	DCAPS		DVDLS		DGI		FCA2S		FQB		FQBS		FEIP
0.40%	$	110	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		-		-		-		-		-		-		-
0.75%		1,331		-		-		-		-		-		-
0.80%		-		-		503		-		463		-		5,683
0.85%		1,641		-		-		-		-		-		-
0.95%		4,246		890		-		136		-		2,673		-
1.05%		4,724		55		-		11		-		1,715		-
1.10%		9,215		-		-		120		-		2,195		-
1.15%		100,865		7,961		-		4,973		-		99,281		-
1.20%		-		-		-		57		-		7,101		-
1.25%		16,875		1,008		-		3,009		-		42,148		-
1.30%		85,367		-		135,309		-		110,914		287		3,340,314
1.35%		23,938		10		-		-		-		36,581		-
1.40%		6,497		170		56,375		351		47,303		8,736		1,431,740
1.45%		28,747		186		-		747		-		29,159		-
1.50%		50,724		525		-		1,953		-		34,329		-
1.55%		96,556		3,709		-		8,487		-		101,846		-
1.60%		13,516		317		-		1,402		-		8,602		-
1.65%		29,856		370		-		430		-		41,203		-
1.70%		15,732		841		-		527		-		23,392		-
1.75%		135,759		315		-		503		-		91,776		-
1.80%		24,225		2,477		-		983		-		70,800		-
1.85%		25,908		87		-		1,313		-		12,921		-
1.90%		5,637		-		-		562		-		4,409		-
1.95%		53,502		872		-		437		-		12,363		-
2.00%		24,952		13		-		-		-		20,610		-
2.05%		12,382		174		-		2,093		-		8,784		-
2.10%		17,475		390		-		18		-		8,810		-
2.15%		13,133		-		-		261		-		16,963		-
2.20%		12,444		-		-		-		-		8,613		-
2.25%		4,019		362		-		276		-		4,664		-
2.30%		13,414		-		-		-		-		8,521		-
2.35%		21,426		-		-		-		-		11,030		-
2.40%		2,014		129		-		39		-		5,083		-
2.45%		2,562		-		-		-		-		830		-
2.50%		11,113		-		-		-		-		394		-
2.55%		2,703		-		-		-		-		-		-
2.60%		5,477		-		-		-		-		9,224		-
2.65%		256		-		-		-		-		-		-
2.70%		444		-		-		-		-		28		-
2.75%		1,084		-		-		-		-		-		-
2.80%		606		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-
2.90%		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-
	$	880,475	$	20,861	$	192,187	$	28,688	$	158,680	$	735,071	$	4,777,737
	FVSS2		FHIP		FAMP		FNRS2		FEI2		FF10S		FF10S2
0.40%	$	-	$	-	$	-	$	-	$	95	$	-	$	-
0.65%		-		-		-		-		-		-		-
0.75%		-		-		-		733		913		-		-
0.80%		-		1,466		968		2,164		-		443		-
0.85%		-		-		-		6,656		844		-		-
0.95%		-		-		-		1,738		620		-		-
1.05%		-		-		-		3,455		1,404		-		-
1.10%		266		-		-		7,654		33,438		-		66,259
1.15%		27,761		-		-		165,642		358,508		-		182,235
1.20%		5,553		-		-		893		4,089		-		831
1.25%		11,939		-		-		19,233		68,262		-		14,050
1.30%		-		483,411		1,737,541		243,632		128,176		53,452		142,322
1.35%		8,152		-		-		52,909		93,679		-		35,130
1.40%		4,350		283,456		390,806		62,769		16,580		19,549		14,449
1.45%		3,749		-		-		35,619		71,248		-		56,035
1.50%		6,187		-		-		33,541		104,001		-		47,691
1.55%		28,609		-		-		183,182		284,354		-		121,983
1.60%		3,132		-		-		18,582		38,941		-		15,726
1.65%		15,149		-		-		44,455		78,140		-		39,576
1.70%		1,460		-		-		16,950		26,251		-		13,814
1.75%		12,441		-		-		130,815		385,443		-		326,564
1.80%		8,030		-		-		61,725		103,375		-		24,585
1.85%		7,192		-		-		18,819		64,838		-		20,487
1.90%		1,379		-		-		2,985		17,251		-		3,528
1.95%		6,254		-		-		30,899		92,486		-		49,197
2.00%		2,624		-		-		42,617		97,235		-		92,044
2.05%		8,363		-		-		4,898		54,322		-		9,895
2.10%		3,469		-		-		144,665		44,655		-		49,223
2.15%		5,087		-		-		13,727		49,640		-		83,969
2.20%		1,293		-		-		67,676		71,059		-		23,368
2.25%		1,640		-		-		1,052		19,365		-		14,439
2.30%		391		-		-		11,047		22,017		-		5,348
2.35%		1,366		-		-		1,695		58,104		-		96,010
2.40%		544		-		-		2,247		5,736		-		4,658
2.45%		104		-		-		4,133		20,373		-		9,100
2.50%		152		-		-		451		15,641		-		10,741
2.55%		113		-		-		129		3,732		-		6,565
2.60%		3,326		-		-		-		1,695		-		4,074
2.65%		237		-		-		751		3,773		-		-
2.70%		-		-		-		65		3,352		-		-
2.75%		-		-		-		201		596		-		-
2.80%		188		-		-		1,330		893		-		-
2.85%		-		-		-		-		1		-		-
2.90%		-		-		-		-		68		-		-
2.95%		-		-		-		-		585		-		-
3.00%		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-
3.30%		-		-		-		-		59		-		-
3.40%		-		-		-		-		-		-		-
	$	180,500	$	768,333	$	2,129,315	$	1,441,734	$	2,445,837	$	73,444	$	1,583,896

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	FF20S		FF20S2		FF30S		FF30S2		FGP		FG2		FHIPR		FIGBS
0.40%	$	-	$	-	$	-	$	-	$	-	$	33	$	-	$	-
0.65%		-		-		-		-		-		85		-		-
0.75%		-		-		-		-		-		766		-		-
0.80%		284		-		1,180		-		8,234		-		408		1,786
0.85%		-		-		-		-		-		2,285		-		-
0.95%		-		-		-		-		-		210		-		-
1.05%		-		-		-		-		-		1,971		-		-
1.10%		-		175,848		-		1,162		-		13,153		-		-
1.15%		-		620,081		-		26,659		-		160,481		-		-
1.20%		-		2,948		-		75		-		5,837		-		-
1.25%		-		39,507		-		16,544		-		29,337		-		-
1.30%		117,832		639,898		83,116		5,816		3,839,601		84,452		201,611		249,651
1.35%		-		126,718		-		30,828		-		36,758		-		-
1.40%		10,991		20,369		7,291		5		970,839		9,372		98,042		110,620
1.45%		-		93,636		-		8,243		-		35,895		-		-
1.50%		-		158,975		-		9,269		-		58,248		-		-
1.55%		-		470,249		-		41,968		-		150,710		-		-
1.60%		-		21,956		-		2,023		-		15,524		-		-
1.65%		-		86,131		-		12,810		-		48,532		-		-
1.70%		-		13,951		-		10,185		-		25,566		-		-
1.75%		-		1,057,671		-		106,130		-		187,698		-		-
1.80%		-		37,576		-		7,438		-		60,856		-		-
1.85%		-		59,788		-		3,765		-		50,756		-		-
1.90%		-		9,182		-		2,527		-		8,425		-		-
1.95%		-		182,147		-		19,117		-		45,757		-		-
2.00%		-		166,197		-		8,976		-		47,271		-		-
2.05%		-		21,562		-		9,516		-		22,730		-		-
2.10%		-		46,755		-		4,198		-		24,245		-		-
2.15%		-		121,946		-		42,877		-		20,794		-		-
2.20%		-		74,467		-		2,502		-		29,175		-		-
2.25%		-		4,797		-		947		-		8,073		-		-
2.30%		-		19,506		-		11,706		-		14,862		-		-
2.35%		-		61,262		-		17,847		-		11,272		-		-
2.40%		-		17,103		-		5,898		-		7,791		-		-
2.45%		-		12,291		-		3,700		-		8,025		-		-
2.50%		-		8,827		-		802		-		7,530		-		-
2.55%		-		5,875		-		1,456		-		8,831		-		-
2.60%		-		356		-		-		-		1,477		-		-
2.65%		-		932		-		-		-		1,368		-		-
2.70%		-		-		-		-		-		954		-		-
2.75%		-		1,099		-		-		-		228		-		-
2.80%		-		-		-		-		-		204		-		-
2.85%		-		99		-		-		-		573		-		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		749		-		-		-		149		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	129,107	$	4,380,454	$	91,587	$	414,989	$	4,818,674	$	1,248,259	$	300,061	$	362,057
	FIGBP2		FMCS		FMC2		FOP		FOPR		FO2		FO2R		FVSS
0.40%	$	199	$	-	$	116	$	-	$	-	$	-	$	30	$	-
0.65%		2,343		-		137		-		-		-		13		-
0.75%		11,110		-		1,740		-		-		-		730		-
0.80%		-		3,404		-		452		1,128		-		-		388
0.85%		19,686		-		6,699		-		-		-		1,877		-
0.95%		4,003		-		2,558		-		-		-		352		-
1.05%		5,138		-		6,606		-		-		-		811		-
1.10%		87,319		-		46,223		-		-		792		12,789		-
1.15%		804,415		-		573,609		-		-		12,714		130,256		-
1.20%		6,431		-		3,511		-		-		-		1,148		-
1.25%		84,068		-		83,447		-		-		8,007		15,072		-
1.30%		205,227		331,080		172,257		666,022		322,379		962		43,590		71,596
1.35%		182,369		-		195,890		-		-		-		31,542		-
1.40%		71,922		83,961		33,708		162,750		65,298		1,827		4,500		20,805
1.45%		130,519		-		94,739		-		-		1,928		31,677		-
1.50%		168,201		-		143,459		-		-		3,301		38,302		-
1.55%		673,762		-		461,822		-		-		4,418		117,239		-
1.60%		50,393		-		59,137		-		-		611		9,249		-
1.65%		216,113		-		181,118		-		-		909		29,324		-
1.70%		99,772		-		54,956		-		-		3,945		25,733		-
1.75%		1,548,205		-		656,106		-		-		790		141,172		-
1.80%		179,621		-		164,100		-		-		2,088		46,078		-
1.85%		91,871		-		86,637		-		-		440		25,550		-
1.90%		31,617		-		42,230		-		-		451		8,926		-
1.95%		226,897		-		135,355		-		-		650		31,288		-
2.00%		400,649		-		135,344		-		-		127		33,890		-
2.05%		75,733		-		79,503		-		-		188		4,444		-
2.10%		93,909		-		76,615		-		-		282		18,234		-
2.15%		273,609		-		103,354		-		-		-		9,378		-
2.20%		95,898		-		46,224		-		-		8		11,737		-
2.25%		174,926		-		34,255		-		-		34		6,948		-
2.30%		35,673		-		44,525		-		-		173		9,911		-
2.35%		844,998		-		104,842		-		-		-		32,306		-
2.40%		89,134		-		28,317		-		-		-		1,763		-
2.45%		45,234		-		16,898		-		-		-		4,052		-
2.50%		42,448		-		32,656		-		-		-		10,024		-
2.55%		62,063		-		16,726		-		-		-		1,428		-
2.60%		35,059		-		28,232		-		-		-		2,181		-
2.65%		3,780		-		3,640		-		-		-		656		-
2.70%		17,215		-		1,862		-		-		-		1,253		-
2.75%		7,443		-		157		-		-		-		126		-
2.80%		2,437		-		6,908		-		-		-		3,039		-
2.85%		446		-		255		-		-		-		450		-
2.90%		6,772		-		946		-		-		-		-		-
2.95%		839		-		433		-		-		-		71		-
3.00%		-		-		-		-		-		-		-		-
3.05%		463		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		61		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		59		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	7,209,990	$	418,445	$	3,967,911	$	829,224	$	388,805	$	44,645	$	899,139	$	92,789

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	FTVIS2		FTVRD2		FTVSV2		FTVDM3		TIF2		TIF3		FTVGI3		FTVFA2
0.40%	$	-	$	-	$	11	$	-	$	-	$	-	$	-	$	-
0.65%		-		-		566		-		-		-		112		-
0.75%		1,281		-		1,819		-		-		-		568		-
0.80%		792		-		276		422		-		318		768		-
0.85%		1,885		-		4,130		-		-		1		1,006		143
0.95%		1,559		2,710		5,362		288		378		1,981		1,718		-
1.05%		725		1,614		4,760		1,670		39		2,118		3,392		528
1.10%		21,616		3,591		26,607		3,628		462		17,156		9,831		2,542
1.15%		233,930		142,395		252,715		57,271		11,465		164,077		227,109		19,779
1.20%		1,835		4,129		10,795		312		365		1,516		522		-
1.25%		41,513		53,404		36,811		6,590		7,346		20,520		34,849		5,545
1.30%		177,844		2,734		141,952		56,371		-		41,806		270,427		28,049
1.35%		131,150		46,558		84,116		18,739		-		49,727		90,168		13,004
1.40%		115,718		14,798		52,704		21,853		3,453		18,268		94,428		6,603
1.45%		58,318		29,748		54,123		23,164		3,035		41,170		80,978		19,147
1.50%		85,776		40,611		61,128		17,584		5,372		49,379		69,182		20,416
1.55%		264,494		160,285		246,021		78,685		9,085		186,177		146,841		69,481
1.60%		51,347		17,328		19,160		5,139		6,856		17,688		65,378		11,112
1.65%		90,765		64,414		67,739		13,995		1,055		37,660		74,208		5,262
1.70%		28,080		17,188		32,446		4,109		2,230		27,053		11,314		4,182
1.75%		328,085		93,477		459,673		59,619		1,231		237,464		168,662		58,620
1.80%		100,800		83,103		75,800		25,107		4,659		45,379		97,812		9,280
1.85%		32,140		29,356		34,114		7,280		1,203		25,167		28,436		3,931
1.90%		2,832		11,973		8,089		3,491		2,702		14,298		2,124		82
1.95%		53,050		28,647		80,518		17,476		1,584		39,557		27,959		11,546
2.00%		78,435		44,205		127,959		12,180		81		41,089		42,664		6,091
2.05%		10,107		33,931		22,655		2,440		770		9,909		8,434		840
2.10%		27,497		26,202		41,883		31,918		1,120		22,547		7,921		154
2.15%		18,063		26,156		87,239		5,863		322		18,996		5,140		791
2.20%		8,364		26,070		29,982		2,295		-		14,513		21,210		6,802
2.25%		15,317		5,124		38,675		1,307		522		15,777		4,772		166
2.30%		8,351		15,702		11,919		6,386		-		19,281		2,937		1,467
2.35%		6,850		12,771		232,993		176		-		66,354		916		3,004
2.40%		3,290		2,919		23,067		994		-		6,606		1,267		1,063
2.45%		4,357		3,908		16,201		1,549		-		4,840		2,636		-
2.50%		649		3,521		11,572		570		-		36,943		65		-
2.55%		2,456		853		16,877		1,173		-		3,622		1,480		2,425
2.60%		1,024		2,951		9,694		-		-		8,874		433		-
2.65%		-		662		343		301		-		138		1,274		1,516
2.70%		-		53		5,087		75		-		2,345		-		-
2.75%		-		-		903		30		-		917		869		-
2.80%		782		14		3,469		258		-		1,534		-		-
2.85%		-		1		135		-		-		677		-		-
2.90%		-		-		1,335		-		-		-		-		-
2.95%		843		26		218		-		-		431		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		215		-		-		185		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		22		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		41		-		-
3.40%		-		-		-		-		-		-		-		-
	$	2,011,920	$	1,053,132	$	2,443,878	$	490,308	$	65,335	$	1,314,099	$	1,609,810	$	313,571
	AMTB		AMTG		AMINS		AMTP		AMFAS		AMSRS		OVMS
0.40%	$	14	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		1,184		-		-		-		-		-		-
0.75%		7,389		-		-		-		-		-		-
0.80%		411		-		-		-		155		171		593
0.85%		6,500		-		-		-		-		1		-
0.95%		6,948		-		-		-		996		7,773		-
1.05%		1,037		-		-		-		76		3,152		-
1.10%		33,474		-		-		-		292		6,740		-
1.15%		268,360		-		-		-		4,788		62,686		-
1.20%		3,726		-		-		-		49		-		-
1.25%		26,285		-		-		-		3,206		8,656		-
1.30%		300,563		123		-		29		7,709		82,481		413,559
1.35%		52,806		-		-		-		1,131		18,970		-
1.40%		154,357		70		-		281		8,986		17,669		188,811
1.45%		63,850		-		-		-		3,746		13,028		-
1.50%		55,921		-		-		-		2,229		13,240		-
1.55%		253,030		-		-		-		11,785		36,280		-
1.60%		19,035		-		-		-		1,322		4,507		-
1.65%		91,253		-		-		-		5,018		18,962		-
1.70%		43,364		-		-		-		2,721		4,813		-
1.75%		507,699		-		5		-		9,534		80,795		-
1.80%		87,607		-		-		-		3,543		14,050		-
1.85%		34,097		-		-		-		866		8,185		-
1.90%		14,084		-		-		-		585		8,296		-
1.95%		78,510		-		-		-		1,651		6,087		-
2.00%		171,442		-		1		-		689		6,331		-
2.05%		26,072		-		-		-		2,548		7,078		-
2.10%		39,404		-		-		-		1,791		7,851		-
2.15%		96,708		-		-		-		1,449		7,085		-
2.20%		41,553		-		-		-		1,901		4,960		-
2.25%		105,059		-		-		-		301		839		-
2.30%		20,343		-		-		-		316		2,990		-
2.35%		460,846		-		1		-		1,884		4,747		-
2.40%		32,040		-		-		-		1,231		6,326		-
2.45%		29,930		-		-		-		25		-		-
2.50%		16,933		-		-		-		109		566		-
2.55%		27,342		-		-		-		50		37		-
2.60%		17,925		-		-		-		-		321		-
2.65%		4,379		-		-		-		-		266		-
2.70%		7,387		-		-		-		-		-		-
2.75%		6,296		-		-		-		-		-		-
2.80%		1,344		-		-		-		30		-		-
2.85%		749		-		-		-		-		-		-
2.90%		1,975		-		-		-		-		-		-
2.95%		421		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-
3.05%		544		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-
	$	3,220,196	$	193	$	7	$	310	$	82,712	$	465,939	$	602,963

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	OVB		OVGS3		OVGS4		OVGS		OVGSS		OVHI3		OVHI4		OVHI
0.40%	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		-		-		-		-		-		-		-		-
0.75%		-		-		394		-		-		-		-		-
0.80%		467		1,487		-		982		-		568		-		21
0.85%		-		-		1,327		-		-		-		-		-
0.95%		-		-		8,844		-		9		-		1,110		-
1.05%		-		-		6,292		-		254		-		361		-
1.10%		-		-		7,007		-		471		-		126		-
1.15%		-		-		212,161		-		23,866		-		23,066		-
1.20%		-		-		1,547		-		819		-		131		-
1.25%		-		-		44,513		-		29,403		-		2,990		-
1.30%		315,889		660,339		18,646		1,034,325		3,164		5,653		-		317
1.35%		-		-		98,704		-		-		-		7,065		-
1.40%		197,924		128,738		16,234		592,919		2,419		1,276		855		105
1.45%		-		-		55,747		-		5,971		-		9,825		-
1.50%		-		-		43,357		-		8,023		-		5,408		-
1.55%		-		-		146,983		-		20,590		-		19,875		-
1.60%		-		-		18,710		-		422		-		320		-
1.65%		-		-		68,482		-		1,703		-		3,634		-
1.70%		-		-		10,411		-		2,135		-		1,222		-
1.75%		-		-		91,349		-		2,439		-		19,328		-
1.80%		-		-		43,693		-		13,610		-		5,782		-
1.85%		-		-		14,813		-		4,518		-		1,259		-
1.90%		-		-		3,653		-		2,738		-		1,037		-
1.95%		-		-		20,591		-		1,278		-		2,030		-
2.00%		-		-		21,276		-		1,067		-		6,656		-
2.05%		-		-		4,504		-		1,488		-		52		-
2.10%		-		-		15,661		-		2,324		-		2,344		-
2.15%		-		-		3,577		-		1,277		-		466		-
2.20%		-		-		17,969		-		-		-		2,127		-
2.25%		-		-		2,453		-		166		-		131		-
2.30%		-		-		1,947		-		226		-		181		-
2.35%		-		-		4,352		-		-		-		-		-
2.40%		-		-		2,158		-		-		-		64		-
2.45%		-		-		198		-		-		-		414		-
2.50%		-		-		129		-		-		-		-		-
2.55%		-		-		996		-		-		-		-		-
2.60%		-		-		-		-		-		-		-		-
2.65%		-		-		-		-		-		-		-		-
2.70%		-		-		92		-		-		-		-		-
2.75%		-		-		-		-		-		-		3		-
2.80%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	514,280	$	790,564	$	1,008,770	$	1,628,226	$	130,380	$	7,497	$	117,862	$	443
	OVHIS		OVGI		OVGIS		OVSC		OVSCS		OVAG		PMVFAD		PMVLAD
0.40%	$	-	$	-	$	18	$	-	$	-	$	-	$	-	$	246
0.65%		-		-		1,206		-		25		-		-		994
0.75%		-		-		2,701		-		23		-		884		8,260
0.80%		-		484		-		227		-		436		115		509
0.85%		-		-		8,461		-		699		-		1,073		9,187
0.95%		499		-		1,276		-		1,706		-		80		6,010
1.05%		432		-		920		-		2,917		-		225		6,629
1.10%		277		-		41,413		-		9,881		-		7,218		55,567
1.15%		7,520		-		351,662		-		93,755		-		39,013		351,515
1.20%		286		-		3,726		-		163		-		141		1,962
1.25%		3,308		-		40,385		-		16,276		-		6,289		38,755
1.30%		-		124,847		57,811		42,652		29,500		122,865		41,782		400,622
1.35%		2,019		-		85,749		-		42,060		-		15,814		93,318
1.40%		1,682		31,036		35,248		11,063		4,295		25,451		12,983		77,760
1.45%		1,859		-		51,864		-		25,452		-		6,896		57,044
1.50%		1,356		-		79,577		-		22,666		-		14,520		156,186
1.55%		8,956		-		392,928		-		114,560		-		35,087		352,166
1.60%		418		-		13,720		-		13,512		-		27,798		72,731
1.65%		2,106		-		103,361		-		44,307		-		9,082		96,371
1.70%		888		-		61,728		-		7,757		-		2,390		31,629
1.75%		3,233		-		918,196		-		98,676		-		32,896		781,707
1.80%		4,770		-		106,006		-		45,226		-		9,548		112,676
1.85%		795		-		39,179		-		16,426		-		2,334		72,552
1.90%		509		-		11,258		-		4,306		-		1,505		16,932
1.95%		302		-		126,276		-		30,123		-		10,218		205,944
2.00%		1,688		-		229,756		-		22,667		-		10,773		199,539
2.05%		576		-		42,099		-		6,621		-		3,012		38,265
2.10%		997		-		65,599		-		22,805		-		5,885		49,960
2.15%		220		-		220,583		-		9,125		-		1,194		100,762
2.20%		625		-		50,307		-		8,137		-		2,783		101,351
2.25%		185		-		81,003		-		2,327		-		254		44,826
2.30%		32		-		13,905		-		5,306		-		780		21,144
2.35%		118		-		498,908		-		9,137		-		-		241,834
2.40%		-		-		61,741		-		1,119		-		207		28,686
2.45%		8		-		29,701		-		4,763		-		906		30,593
2.50%		-		-		14,752		-		5,899		-		-		6,718
2.55%		-		-		38,010		-		968		-		1,832		20,734
2.60%		-		-		21,102		-		82		-		-		7,753
2.65%		-		-		2,524		-		1,093		-		-		2,402
2.70%		26		-		10,355		-		134		-		-		5,315
2.75%		-		-		3,444		-		323		-		-		1,366
2.80%		-		-		1,598		-		3,705		-		-		27,688
2.85%		-		-		545		-		-		-		-		157
2.90%		-		-		3,150		-		-		-		-		1,372
2.95%		-		-		618		-		-		-		-		275
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		304		-		-		-		-		140
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		69		-		-		-		-		30
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		42		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	45,690	$	156,367	$	3,924,742	$	53,942	$	728,564	$	148,752	$	305,517	$	3,938,182

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	PMVTRD		PVGIB		PVTIGB		PVTVB		AVBV2		AVCA2		AVCD2		VYDS
0.40%	$	4	$	-	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		-		-		-		-		-		-		-		-
0.75%		126		-		-		-		-		-		1		-
0.80%		-		-		-		-		-		45		127		-
0.85%		1,614		-		-		-		-		-		200		-
0.95%		276		2		-		77		-		710		1,041		-
1.05%		382		105		-		8		-		1,527		202		-
1.10%		503		490		-		210		-		855		3,564		-
1.15%		21,125		8,204		1,537		10,031		-		11,920		36,758		370
1.20%		45		24		-		-		-		-		411		-
1.25%		963		2,188		619		5,935		-		3,729		9,761		3,742
1.30%		80,140		-		-		-		-		2,444		30,447		-
1.35%		8,620		1,215		-		880		-		1,179		12,521		1,207
1.40%		8,409		258		1,015		494		-		4,265		6,135		-
1.45%		3,284		1,167		359		1,535		-		1,979		9,554		-
1.50%		19,974		1,063		836		972		-		5,236		13,049		-
1.55%		12,295		8,989		327		4,997		89		14,003		44,753		49
1.60%		11,381		414		31		5,149		-		681		5,092		141
1.65%		5,090		5,254		-		6,352		-		2,637		13,131		224
1.70%		1,094		492		-		799		-		4,497		7,570		-
1.75%		70,040		3,270		630		6,826		-		14,297		57,598		-
1.80%		3,405		2,144		1,065		6,133		-		3,074		14,722		-
1.85%		13,525		902		404		856		-		4,931		6,528		-
1.90%		319		797		-		616		-		3,457		2,336		-
1.95%		20,036		1,007		-		274		-		2,649		21,030		293
2.00%		6,236		929		-		830		-		4,867		18,753		-
2.05%		3,560		3,002		549		1,804		-		4,936		7,983		-
2.10%		4,565		1,501		76		367		-		3,137		22,753		-
2.15%		3,980		1,775		-		-		-		3,870		17,254		-
2.20%		10,664		259		-		107		-		842		5,658		-
2.25%		205		1,204		-		727		-		906		2,351		-
2.30%		2,555		301		-		510		-		559		11,962		-
2.35%		1,547		582		-		598		-		5,112		11,970		-
2.40%		766		132		153		243		-		1,089		2,205		-
2.45%		700		154		-		1,132		-		1,291		9,789		-
2.50%		30		345		-		288		-		1,425		7,547		-
2.55%		639		-		-		-		-		383		2,271		-
2.60%		126		155		-		215		-		155		246		-
2.65%		-		-		-		-		-		-		1,862		-
2.70%		108		-		-		57		-		26		46		-
2.75%		-		-		-		-		-		-		576		-
2.80%		-		-		-		-		-		47		5,233		-
2.85%		-		-		-		-		-		-		570		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		26		144		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	318,331	$	48,324	$	7,601	$	59,022	$	89	$	112,786	$	425,704	$	6,026

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	TRHS2		VWBFR		VWBF		VWEMR		VWEM		VWHAR
0.40%	$	-	$	-	$	-	$	-	$	-	$	-
0.65%		-		-		-		-		-		-
0.75%		706		-		-		-		-		10,502
0.80%		228		225		57		1,194		1,250		1,335
0.85%		563		-		-		-		-		3,507
0.95%		30		-		-		-		-		284
1.05%		264		-		-		-		-		955
1.10%		285		-		-		-		-		4,139
1.15%		22,593		-		-		-		-		32,054
1.20%		-		-		-		-		-		120
1.25%		2,483		-		-		-		-		5,449
1.30%		54,465		50,160		108,675		174,105		183,899		405,091
1.35%		4,601		-		-		-		-		13,677
1.40%		16,366		27,800		49,296		49,126		79,411		115,252
1.45%		3,115		-		-		-		-		10,940
1.50%		8,301		-		-		-		-		28,150
1.55%		18,912		-		-		-		-		30,916
1.60%		4,430		-		-		-		-		27,732
1.65%		5,601		-		-		-		-		13,169
1.70%		799		-		-		-		-		3,804
1.75%		14,441		-		-		-		-		26,344
1.80%		3,513		-		-		-		-		20,506
1.85%		5,197		-		-		-		-		7,575
1.90%		488		-		-		-		-		1,740
1.95%		8,263		-		-		-		-		10,622
2.00%		4,640		-		-		-		-		6,792
2.05%		1,076		-		-		-		-		3,109
2.10%		7,050		-		-		-		-		24,086
2.15%		1,086		-		-		-		-		2,892
2.20%		12,486		-		-		-		-		13,386
2.25%		-		-		-		-		-		802
2.30%		793		-		-		-		-		710
2.35%		1,210		-		-		-		-		340
2.40%		199		-		-		-		-		6,369
2.45%		1,602		-		-		-		-		9,762
2.50%		-		-		-		-		-		-
2.55%		6		-		-		-		-		3,337
2.60%		-		-		-		-		-		-
2.65%		-		-		-		-		-		3,978
2.70%		-		-		-		-		-		1,153
2.75%		2		-		-		-		-		16,632
2.80%		71		-		-		-		-		2,129
2.85%		-		-		-		-		-		-
2.90%		-		-		-		-		-		-
2.95%		-		-		-		-		-		-
3.00%		-		-		-		-		-		-
3.05%		-		-		-		-		-		-
3.10%		-		-		-		-		-		-
3.15%		-		-		-		-		-		-
3.20%		-		-		-		-		-		-
3.25%		-		-		-		-		-		-
3.30%		-		-		-		-		-		-
3.40%		-		-		-		-		-		-
	$	205,865	$	78,185	$	158,028	$	224,425	$	264,560	$	869,340
	VWHA		WRASP		WRPCP		WRPMP		WRPMAP		WRPMCP		SVDF		SVOF
0.40%	$	-	$	-	$	1,449	$	6,770	$	30,436	$	2,812	$	-	$	-
0.65%		-		58		-		-		-		-		-		-
0.75%		-		2,896		-		-		-		-		-		-
0.80%		1,688		491		-		-		-		-		-		-
0.85%		-		975		-		-		-		-		-		-
0.95%		-		208		-		-		-		-		-		-
1.05%		-		2,244		-		-		-		-		-		-
1.10%		-		10,811		-		-		-		-		-		-
1.15%		-		112,429		-		-		-		-		-		-
1.20%		-		717		-		-		-		-		-		-
1.25%		-		39,974		-		-		-		-		-		-
1.30%		303,507		179,167		-		-		-		-		60		3,535
1.35%		-		57,683		-		-		-		-		-		-
1.40%		108,069		45,398		-		-		-		-		408		289
1.45%		-		31,532		-		-		-		-		-		-
1.50%		-		142,794		-		-		-		-		-		-
1.55%		-		132,273		-		-		-		-		-		-
1.60%		-		59,252		-		-		-		-		-		-
1.65%		-		34,039		-		-		-		-		-		-
1.70%		-		8,965		-		-		-		-		-		-
1.75%		-		202,441		-		-		-		-		-		-
1.80%		-		76,344		-		-		-		-		-		-
1.85%		-		12,159		-		-		-		-		-		-
1.90%		-		2,054		-		-		-		-		-		-
1.95%		-		91,180		-		-		-		-		-		-
2.00%		-		81,016		-		-		-		-		-		-
2.05%		-		5,166		-		-		-		-		-		-
2.10%		-		47,871		-		-		-		-		-		-
2.15%		-		9,769		-		-		-		-		-		-
2.20%		-		24,236		-		-		-		-		-		-
2.25%		-		764		-		-		-		-		-		-
2.30%		-		8,585		-		-		-		-		-		-
2.35%		-		3,261		-		-		-		-		-		-
2.40%		-		2,257		-		-		-		-		-		-
2.45%		-		2,415		-		-		-		-		-		-
2.50%		-		-		-		-		-		-		-		-
2.55%		-		1,752		-		-		-		-		-		-
2.60%		-		-		-		-		-		-		-		-
2.65%		-		180		-		-		-		-		-		-
2.70%		-		-		-		-		-		-		-		-
2.75%		-		2		-		-		-		-		-		-
2.80%		-		1,500		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	413,264	$	1,434,858	$	1,449	$	6,770	$	30,436	$	2,812	$	468	$	3,824

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	WFVSCG		WFVSMV		WFVTRB		WFVOG2		NVAGF3		CSIEF3		GEF3		NVGWL6
0.40%	$	7	$	-	$	-	$	-	$	-	$	-	$	-	$	15
0.65%		-		-		-		-		-		-		-		-
0.75%		95		-		-		-		-		-		-		-
0.80%		527		-		-		-		2		42		218		-
0.85%		2,938		-		-		-		-		-		-		-
0.95%		785		-		-		-		46		-		-		-
1.05%		639		-		-		-		70		-		-		-
1.10%		7,159		100		-		-		1,045		-		-		828
1.15%		33,922		-		325		-		2,107		-		-		1,742
1.20%		191		-		-		-		73		-		-		-
1.25%		3,691		-		3,201		-		798		-		-		218
1.30%		63,195		-		-		-		974		12,474		11,256		2,324
1.35%		13,239		-		-		-		631		-		-		533
1.40%		13,913		-		-		216		1,076		5,034		3,681		-
1.45%		9,102		-		-		-		754		-		-		137
1.50%		19,014		-		-		-		11		-		-		1,786
1.55%		61,070		-		-		-		2,489		-		-		1,346
1.60%		9,947		-		-		507		305		-		-		2,006
1.65%		13,523		-		-		-		1,782		-		-		243
1.70%		3,324		-		-		-		-		-		-		33
1.75%		68,829		-		-		96		1,046		-		-		2,721
1.80%		8,763		-		-		-		544		-		-		1,094
1.85%		7,765		-		-		-		149		-		-		429
1.90%		6,935		-		-		-		-		-		-		-
1.95%		14,812		-		-		-		100		-		-		360
2.00%		16,893		-		-		-		246		-		-		349
2.05%		2,994		-		-		-		96		-		-		65
2.10%		7,888		-		-		-		426		-		-		92
2.15%		2,728		-		-		-		557		-		-		158
2.20%		4,364		-		-		147		-		-		-		401
2.25%		1,711		-		-		-		-		-		-		128
2.30%		4,959		-		-		-		-		-		-		828
2.35%		8,974		-		-		-		-		-		-		556
2.40%		742		-		-		-		-		-		-		426
2.45%		3,141		-		-		-		-		-		-		-
2.50%		686		-		-		-		-		-		-		20
2.55%		3,605		-		-		-		-		-		-		80
2.60%		-		-		-		-		-		-		-		-
2.65%		582		-		-		-		-		-		-		-
2.70%		482		-		-		-		-		-		-		-
2.75%		-		-		-		-		-		-		-		95
2.80%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
2.90%		-		-		-		-		-		-		-		-
2.95%		-		-		-		-		-		-		-		-
3.00%		-		-		-		-		-		-		-		-
3.05%		-		-		-		-		-		-		-		-
3.10%		-		-		-		-		-		-		-		-
3.15%		-		-		-		-		-		-		-		-
3.20%		-		-		-		-		-		-		-		-
3.25%		-		-		-		-		-		-		-		-
3.30%		-		-		-		-		-		-		-		-
3.40%		-		-		-		-		-		-		-		-
	$	423,134	$	100	$	3,526	$	966	$	15,327	$	17,550	$	15,155	$	19,013
	WSCP
0.40%	$	-
0.65%		-
0.75%		-
0.80%		1,344
0.85%		-
0.95%		-
1.05%		-
1.10%		-
1.15%		-
1.20%		-
1.25%		-
1.30%		236,479
1.35%		-
1.40%		112,811
1.45%		-
1.50%		-
1.55%		-
1.60%		-
1.65%		-
1.70%		-
1.75%		-
1.80%		-
1.85%		-
1.90%		-
1.95%		-
2.00%		-
2.05%		-
2.10%		-
2.15%		-
2.20%		-
2.25%		-
2.30%		-
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%		-
3.20%		-
3.25%		-
3.30%		-
3.40%		-
	$	350,634

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

(3) Related Party Transactions

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

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2011 and 2010, total transfers to the Account from the fixed account were $1,259,932,807 and $1,130,915,809, respectively, and total transfers from the Account to the fixed account were $267,916,712 and $218,700,309, 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 $15,728,316 and $8,906,383 to the Account in the form of bonus credits to the contract owner accounts for the years ended December 31, 2011 and 2010, 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 $23,803,282 and $31,583,753 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2011 and 2010, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

For Purchase Payment Credits, the Company contributed $5,392,901 and $3,282,800 to the Account in the form of additional credit to the contract owner accounts for the years ended December 31, 2011 and 2010, 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.

(4) Fair Value Measurement

FASB ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs.

In accordance with FASB ASC 820, the Account categorized its financial instruments into a three level hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

The Account categorizes financial assets recorded at fair value as follows:

• Level 1 - Unadjusted quoted prices accessible in active markets and mutual funds where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the measurement date.

• Level 2 - Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means.

• Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs.

The Account recognizes significant transfers between fair value hierarchy levels at the reporting period end. There were no significant transfers between Level 1 and 2 as of December 31, 2011.

The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2011:

	Level 1		Level 2	Level 3	Total
Separate Account Investments	$	29,793,995,282	$0	$0	$	29,793,995,282

The Account did not have any assets or liabilities reported at fair value on a non-recurring basis required to be disclosed under FASB ASC 820.

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2011 were as follows:

	Purchases of Investments		Sales of Investments
MidCap Growth Portfolio - Class S Shares (ALMCS)	$	118,629	$	135,323
Growth Fund - Class 1 (AFGF)		94,271		817,913
High-Income Bond Fund - Class 1 (AFHY)		4,546,788		4,468,053
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)		52,366		88,237
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)		53,606,467		4,280,909
Money Market Portfolio(TM) (CHSMM)		10,815,448		10,252,466
Stock Index Fund, Inc. - Initial Shares (DSIF)		6,687,112		39,171,840
Stock Index Fund, Inc. - Service Shares (DSIFS)		23,610,580		18,275,235
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)		932,256		7,021,710
VA International Equity Fund (HVIE)		6,384,892		74,842
VA Situs Fund (HVSIT)		14,420,870		965,018
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)		1,336,617		2,179,605
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)		1,935,465		3,403,632
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)		10,547,463		19,432,240
Janus Aspen Series - Global Technology Portfolio - Service II Shares (JAGTS2)		11,063,404		9,460,413
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)		-		289,141
Janus Aspen Series - Overseas Portfolio - Service II Shares (JAIGS2)		7,130,987		42,434,761
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)		101,943		1,452,698
Investors Growth Stock Series - Service Class (MIGSC)		348,375		3,035,224
Value Series - Service Class (MVFSC)		23,674,733		42,207,565
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)		38,912,021		2,477,803
Core Plus Fixed Income Portfolio - Class I (MSVFI)		451,233		870,758
Core Plus Fixed Income Portfolio - Class II (MSVF2)		1,499,150		4,960,134
Emerging Markets Debt Portfolio - Class I (MSEM)		172,909		680,111
Emerging Markets Debt Portfolio - Class II (MSEMB)		48,399		183,629
Global Real Estate Portfolio - Class II (VKVGR2)		5,453		4,521
U.S. Real Estate Portfolio - Class I (MSVRE)		84,978		109,682
U.S. Real Estate Portfolio - Class II (MSVREB)		37		4,780
Managed Allocation Fund - Moderate Growth II (VFMG2)		137,709		632,652

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)	1,713,898	13,732,300
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)	10,950,883	21,193,156
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)	900,669,828	15,245,129
American Funds NVIT Bond Fund - Class II (GVABD2)	285,915,933	64,532,753
American Funds NVIT Global Growth Fund - Class II (GVAGG2)	28,307,140	12,242,926
American Funds NVIT Growth Fund - Class II (GVAGR2)	34,364,785	13,237,488
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)	272,513,193	29,137,200
Federated NVIT High Income Bond Fund - Class I (HIBF)	692,113	2,366,633
Federated NVIT High Income Bond Fund - Class III (HIBF3)	60,680,979	55,839,608
NVIT Emerging Markets Fund - Class I (GEM)	2,572	90,913
NVIT Emerging Markets Fund - Class II (GEM2)	7,409	318,363
NVIT Emerging Markets Fund - Class III (GEM3)	1,805,018	10,939,276
NVIT Emerging Markets Fund - Class VI (GEM6)	7,397,595	13,473,401
NVIT International Equity Fund - Class I (GIG)	520	3,761
NVIT International Equity Fund - Class III (GIG3)	2,674,830	7,131,269
Gartmore NVIT International Equity Fund - Class VI (NVIE6)	10,260,445	4,712,161
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)	2,242,486	15,760,913
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)	15,296,700	6,558,018
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)	2,057,199	1,744,817
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)	18,113,757	41,610,421
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)	8,355,505	5,278,959
NVIT Cardinal Balanced Fund - Class II (NVCRB2)	393,505,827	3,104,109
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)	815,477,611	3,479,459
NVIT Cardinal Conservative Fund - Class II (NVCCN2)	248,275,083	35,428,937
NVIT Cardinal Moderate Fund - Class II (NVCMD2)	642,965,670	5,774,009
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)	25,427,521	32,860,600
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)	182,442,081	11,076,526
NVIT Core Bond Fund - Class I (NVCBD1)	1,398,323	1,044,842
NVIT Core Bond Fund - Class II (NVCBD2)	19,662,761	41,882,319
NVIT Core Plus Bond Fund - Class II (NVLCP2)	20,605,391	8,087,575
NVIT Fund - Class I (TRF)	1,733,475	22,188,620
NVIT Fund - Class II (TRF2)	9,033,233	41,765,801
NVIT Government Bond Fund - Class I (GBF)	69,119,164	128,946,815
American Century NVIT Growth Fund - Class I (CAF)	1,450,232	5,420,720
American Century NVIT Growth Fund -Class II (CAF2)	10,359,850	216,159
NVIT International Index Fund - Class VIII (GVIX8)	9,081,146	2,655,603
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)	6,471,353	67,514,583
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)	223,675,152	1,641,366
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)	511,908,315	7,346,635
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)	175,102,696	34,859,815
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)	132,462,539	175,042,859
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)	30,706,072	207,853,315
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)	93,905,606	35,027,959
NVIT Mid Cap Index Fund - Class I (MCIF)	17,862,528	14,344,849
NVIT Money Market Fund - Class I (SAM)	353,696,777	265,556,916
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)	615,420	7,440,679
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)	15,351,461	28,579,990
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)	10,692	209,729
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)	657,114	1,701,631
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)	10,968,378	5,034,190
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)	1,148,566	3,070,805
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)	9,422,038	23,285,092
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)	952,834	1,097,031
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)	10,831,892	6,973,380
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)	17,242	31,476,802
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)	9,548,539	31,087,212
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)	11,338,187	50,026,835
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)	3,904,593	4,369,734
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)	17,778,304	11,154,237
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)	554,836	8,129,303
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)	3,072,802	4,622,980
NVIT Multi-Manager Small Company Fund - Class I (SCF)	819,110	14,195,548
NVIT Multi-Manager Small Company Fund - Class II (SCF2)	3,127,692	7,570,727
NVIT Multi-Sector Bond Fund - Class I (MSBF)	44,265,896	16,353,489
NVIT Short Term Bond Fund - Class II (NVSTB2)	15,636,892	21,778,744
NVIT Large Cap Growth Fund - Class I (NVOLG1)	4,039,004	86,358,927
NVIT Large Cap Growth Fund - Class II (NVOLG2)	3,349,821	66,217,545
Templeton NVIT International Value Fund - Class III (NVTIV3)	45,554,137	18,596,175
Van Kampen NVIT Comstock Value Fund - Class II (EIF2)	18,968,175	12,335,600
NVIT Real Estate Fund - Class I (NVRE1)	3,807,577	13,376,575
NVIT Real Estate Fund - Class II (NVRE2)	10,350,481	17,720,704
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)	46,884	674
VPS Growth and Income Portfolio - Class B (ALVGIB)	373,431	2,348,770
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)	18,586,705	7,157,617
VP Balanced Fund - Class I (ACVB)	1,539,354	6,834,957
VP Capital Appreciation Fund - Class I (ACVCA)	4,926	33,214
VP Income & Growth Fund - Class I (ACVIG)	1,167,786	2,301,822
VP Income & Growth Fund - Class II (ACVIG2)	362,708	1,896,456
VP Inflation Protection Fund - Class II (ACVIP2)	78,794,147	27,192,197
VP International Fund - Class I (ACVI)	25,532	34,508
VP International Fund - Class III (ACVI3)	64	106
VP International Fund - Class IV (ACVI4)	656	688
VP Mid Cap Value Fund - Class I (ACVMV1)	2,549,228	2,114,367
VP Mid Cap Value Fund - Class II (ACVMV2)	20,410,496	9,141,959
VP Ultra(R) Fund - Class I (ACVU1)	-	-
VP Ultra(R) Fund - Class II (ACVU2)	194	5,751
VP Value Fund - Class I (ACVV)	285	22,635
VP Value Fund - Class II (ACVV2)	26,679	34,264
VP Vista(SM) Fund - Class I (ACVVS1)	-	2,142
VP Vista(SM) Fund - Class II (ACVVS2)	-	-
Small Cap Stock Index Portfolio - Service Shares (DVSCS)	14,133,422	11,214,312
Appreciation Portfolio - Initial Shares (DCAP)	7,708,230	4,510,819
Appreciation Portfolio - Service Shares (DCAPS)	43,406,049	3,786,413
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)	880,823	1,076,205
Growth and Income Portfolio - Initial Shares (DGI)	1,068,192	3,172,758
Capital Appreciation Fund II - Service Shares (FCA2S)	45,657	599,018
Quality Bond Fund II - Primary Shares (FQB)	1,855,975	3,337,329
Quality Bond Fund II - Service Shares (FQBS)	4,345,873	12,188,627
Contrafund Portfolio - Service Class 2 (FC2)	908	56,558
Equity-Income Portfolio - Initial Class (FEIP)	8,596,572	57,744,724
Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)	456,485	3,908,845

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

High Income Portfolio - Initial Class (FHIP)		3,704,346		9,873,775
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)		4,355,900		26,080,908
VIP Fund - Contrafund Portfolio - Initial Class (FCP)		3,950		230,610
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)		25,661,844		17,753,923
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)		29,043,640		14,137,216
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)		967,684		981,150
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)		30,899,950		9,017,220
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)		2,232,209		1,867,253
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)		134,413,876		2,347,231
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)		1,724,757		1,141,647
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)		6,235,185		3,938,863
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)		-		60
VIP Fund - Growth Portfolio - Initial Class (FGP)		3,511,167		52,007,614
VIP Fund - Growth Portfolio - Service Class 2 (FG2)		47,340,445		19,143,445
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)		16,293,905		18,820,559
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)		5,502,978		7,607,099
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)		57,668,611		93,786,524
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)		4,238,260		11,084,905
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)		25,738,867		29,854,964
VIP Fund - Overseas Portfolio - Initial Class (FOP)		954,707		10,199,338
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)		1,075,239		6,214,938
VIP Fund - Overseas Portfolio - Service Class 2 (FO2)		52,598		1,004,156
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)		11,862,352		8,362,036
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)		706,562		2,342,727
Franklin Income Securities Fund - Class 2 (FTVIS2)		22,157,310		14,188,532
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)		2,439,781		16,883,786
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)		20,458,169		31,910,962
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)		2,434,957		6,137,091
Templeton Foreign Securities Fund - Class 2 (TIF2)		75,396		1,439,546
Templeton Foreign Securities Fund - Class 3 (TIF3)		4,947,126		13,116,968
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)		25,602,846		14,107,887
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)		8,118,468		2,851,684
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)		17,005,439		39,838,450
Growth Portfolio - I Class Shares (AMTG)		9,754		21,632
Guardian Portfolio - I Class Shares (AMGP)		-		-
International Portfolio - S Class Shares (AMINS)		54,530		54,008
Partners Portfolio - I Class Shares (AMTP)		3,389		35,346
Small-Cap Growth Portfolio - S Class Shares (AMFAS)		4,617,064		6,477,004
Socially Responsive Portfolio - I Class Shares (AMSRS)		2,393,623		5,969,715
Balanced Fund/VA - Non-Service Shares (OVMS)		1,129,494		7,673,681
Capital Appreciation Fund/VA - Service Class (OVCAFS)		2		2,104
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)		8,810		96,195
Core Bond Fund/VA - Non-Service Shares (OVB)		2,837,279		7,717,194
Global Securities Fund/VA - Class 3 (OVGS3)		1,969,265		11,782,677
Global Securities Fund/VA - Class 4 (OVGS4)		4,532,632		8,780,661
Global Securities Fund/VA - Non-Service Shares (OVGS)		1,599,793		19,916,101
Global Securities Fund/VA - Service Class (OVGSS)		108,386		2,230,872
High Income Fund/VA - Class 3 (OVHI3)		387,816		393,588
High Income Fund/VA - Class 4 (OVHI4)		4,738,496		4,252,879
High Income Fund/VA - Non-Service Shares (OVHI)		4,492		26,844
High Income Fund/VA - Service Class (OVHIS)		294,378		909,649
Main Street Fund(R)/VA - Non-Service Shares (OVGI)		813,192		2,425,259
Main Street Fund(R)/VA - Service Class (OVGIS)		9,606,771		40,781,604
Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)		2,094,376		1,954,078
Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)		10,933,988		6,255,097
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)		5,303,443		4,741,807
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)		11,141,131		6,761,257
Low Duration Portfolio - Advisor Class (PMVLAD)		88,233,231		29,668,538
Total Return Portfolio - Advisor Class (PMVTRD)		67,663,041		1,353,379
Putnam VT Growth and Income Fund - IB Shares (PVGIB)		251,653		1,030,955
Putnam VT International Equity Fund - IB Shares (PVTIGB)		18,554		177,387
Putnam VT Voyager Fund - IB Shares (PVTVB)		1,362,251		1,665,686
V.I. Basic Value Fund - Series II (AVBV2)		110		4,874
V.I. Capital Appreciation Fund - Series II (AVCA2)		613,836		1,819,817
V.I. Capital Development Fund - Series II (AVCD2)		9,767,766		8,122,553
Diversified Stock Fund Class A Shares (VYDS)		12,963		150,764
Blue Chip Growth Portfolio - II (TRBCG2)		46,698		50,869
Equity Income Portfolio - II (TREI2)		14		5,844
Health Sciences Portfolio - II (TRHS2)		31,799,168		7,239,307
Limited-Term Bond Portfolio - II (TRLT2)		-		-
VIP Trust - Global Bond Fund: Class R1 (VWBFR)		1,585,034		1,588,886
VIP Trust - Global Bond Fund: Initial Class (VWBF)		1,201,054		1,801,699
VIP Trust - Emerging Markets Fund: Class R1 (VWEMR)		1,438,835		8,590,030
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)		219,010		3,696,267
VIP Trust - Global Hard Assets Fund: Class R1 (VWHAR)		24,269,225		10,908,428
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)		788,662		3,883,997
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)		39,184,454		14,622,323
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)		1,256,482		236,495
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)		4,872,159		157,063
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)		14,657,178		267,787
WRPMCP (WRPMCP)		1,766,070		113,274
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)		3,927		8,807
Advantage VT Opportunity Fund - Class 2 (SVOF)		11,662		88,904
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)		12,435,831		7,596,233
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)		938		1,634
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)		18,894		3,519
Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)		582		7,443
AllianceBernstein NVIT Global Fixed Income Fund - Class III(obsolete) (NVAGF3)		578,773		3,847,983
Credit Suisse Trust- International Equity Flex III Portfolio(obsolete) (CSIEF3)		356,424		2,338,937
Gartmore NVIT Worldwide Leaders Fund - Class III (GEF3)		599,941		2,754,305
Gartmore NVIT Worldwide Leaders Fund - Class VI (NVGWL6)		589,982		2,731,891
U.S. Equity Flex I Portfolio(obsolete) (WSCP)		221,115		31,923,583
Total	$	7,219,386,838	$	3,137,113,930

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

(5) Financial Highlights

The Company offers several variable annuity products through the Account that have unique combinations of features and fees that are assessed to the contract owner. Differences in fee structures result in a variety of contract expense rates, unit fair values and total returns. The following tabular presentation is a summary of units, unit fair values, contract owners’ equity outstanding and contract expense rates for variable annuity contracts as of December 31, 2011, and the investment income ratio and total return for each of the periods in the five year period ended December 31, 2011. The information is presented as a range of minimum to maximum values based upon product grouping. The range is determined by identifying the lowest and the highest contract expense rate for contracts with units outstanding as of the balance sheet date. The unit fair values and total returns related to these identified contract expense rates are also disclosed as a range below. Accordingly, some individual contract amounts may not be within the ranges presented. Total return and investment income ratio for periods with no ending contract owners’ equity were considered to be irrelevant, and therefore are not presented. Contract owner’s equity presented below may not agree to the contract owner’s equity presented in the Statements of Changes due to reserves for annuity contracts in payout.

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
MidCap Growth Portfolio - Class S Shares (ALMCS)
2011		0.95% to 1.45%		32,647	$	12.15 to $ 11.64	$	393,138		0.00%		-9.46% to -9.91%
2010		0.95% to 1.45%		34,119		13.41 to 12.93		452,475		0.00%		17.75% to 17.16%
2009		0.95% to 1.45%		38,321		11.39 to 11.03		432,673		0.00%		49.88% to 49.12%
2008		0.95% to 1.45%		35,463		7.60 to 7.40		267,952		0.00%		-58.87% to -59.08%
2007		0.95% to 1.80%		52,160		18.48 to 17.80		958,371		0.00%		30.02% to 28.90%
Growth Fund - Class 1 (AFGF)
2011		1.30%		133,488		73.13		9,761,912		0.85%		-5.30%
2010		1.30%		142,179		77.23		10,979,803		0.97%		17.46%
2009		1.30%		156,482		65.75		10,287,967		0.86%		37.93%
2008		1.30%		185,887		47.67		8,860,655		1.05%		-44.56%
2007		1.30%		204,499		85.98		17,582,665		0.98%		11.17%
High-Income Bond Fund - Class 1 (AFHY)
2011		1.30%		37,304		48.38		1,804,784		9.81%		0.85%
2010		1.30%		37,078		47.97		1,778,708		10.52%		13.88%
2009		1.30%		41,033		42.12		1,728,444		7.90%		37.64%
2008		1.30%		42,363		30.60		1,296,441		5.45%		-24.74%
2007		1.30%		35,586		40.66		1,446,977		10.75%		0.29%
U.S. Government/AAA-Rated Securities Fund - Class 1 (AFGC)
2011		1.30%		34,457		35.49		1,222,715		2.00%		6.46%
2010		1.30%		36,578		33.33		1,219,260		1.84%		4.56%
2009		1.30%		42,499		31.88		1,354,789		2.60%		1.45%
2008		1.30%		48,345		31.42		1,519,125		3.08%		6.44%
2007		1.30%		49,215		29.52		1,452,853		7.14%		5.43%
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III  (MLVGA3)
2011		0.75% to 2.65%		10,016,317		12.62 to 11.99		123,669,985		2.63%		-4.36% to -6.19%
2010		0.75% to 2.65%		6,572,107		13.20 to 12.78		85,557,591		1.68%		8.94% to 6.85%
2009		0.75% to 2.65%		2,338,768		12.12 to 11.96		28,183,661		2.59%		21.17% to 19.62%	****
Money Market Portfolio(TM) (CHSMM)
2011		0.75% to 1.55%		1,391,226		9.97 to 10.22		14,443,732		0.01%		-0.74% to -1.54%
2010		0.75% to 1.55%		1,300,472		10.04 to 10.38		13,862,136		0.01%		-0.70% to -1.50%
2009		0.75% to 1.55%		1,588,787		10.11 to 10.54		17,129,897		0.11%		-0.65% to -1.45%
2008		0.75% to 1.85%		2,367,841		10.18 to 10.52		25,748,263		2.08%		1.35% to 0.23%
2007		0.95% to 1.85%		2,030,093		10.92 to 10.50		22,118,985		4.51%		3.74% to 2.79%
Stock Index Fund, Inc. - Initial Shares (DSIF)
2011		0.80% to 1.40%		7,343,204		24.34 to 28.29		210,627,633		1.79%		1.06% to 0.45%
2010		0.80% to 1.40%		8,556,559		24.08 to 28.17		244,155,883		1.80%		13.92% to 13.23%
2009		0.80% to 1.40%		10,005,487		21.14 to 24.87		251,973,988		2.07%		25.32% to 24.57%
2008		0.80% to 1.40%		11,829,308		16.87 to 19.97		239,007,065		2.04%		-37.64% to -38.02%
2007		0.80% to 1.40%		14,260,866		27.05 to 32.22		464,467,374		1.71%		4.41% to 3.77%
Stock Index Fund, Inc. - Service Shares (DSIFS)
2011		0.40% to 2.85%		7,723,730		9.41 to 12.21		113,970,712		1.60%		1.21% to -1.27%
2010		0.40% to 2.85%		7,353,016		9.30 to 12.37		109,163,971		1.61%		14.08% to 11.28%
2009		0.75% to 2.85%		7,000,385		7.98 to 11.11		92,376,592		1.85%		25.10% to 22.45%
2008		0.95% to 2.85%		6,903,789		9.20 to 9.08		73,597,957		1.77%		-37.92% to -39.11%
2007		0.95% to 2.90%		7,232,672		14.82 to 14.87		124,891,794		1.53%		3.99% to 1.93%
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Shares (DSRG)
2011		0.80% to 1.40%		1,619,263		19.32 to 22.85		39,089,761		0.90%		0.10% to -0.51%
2010		0.80% to 1.40%		1,858,295		19.31 to 22.97		45,067,265		0.89%		13.90% to 13.21%
2009		0.80% to 1.40%		2,105,786		16.95 to 20.29		45,091,981		0.98%		32.69% to 31.88%
2008		0.80% to 1.40%		2,380,596		12.77 to 15.38		38,616,074		0.77%		-34.95% to -35.34%
2007		0.80% to 1.40%		2,887,153		19.64 to 23.79		72,290,938		0.55%		6.92% to 6.27%
VA International Equity Fund (HVIE)
2011		0.40% to 2.35%		672,762		9.10 to 8.89		6,042,943		2.60%		-11.91% to -13.63%
2010		1.15% to 2.25%		25,460		10.32 to 10.30		262,513		0.00%		3.16% to 2.97%	****
VA Situs Fund (HVSIT)
2011		0.75% to 2.70%		1,261,261		11.11 to 10.86		13,876,653		0.05%		-1.65% to -3.58%
2010		0.85% to 2.35%		45,685		11.30 to 11.27		515,595		0.00%		12.97% to 12.69%	****
Insurance Trust - Insurance Trust Mid Cap Value Portfolio 1 (JPMMV1)													****
2011		0.80% to 1.40%		404,489		15.07 to 14.38		5,854,364		1.33%		1.35% to 0.73%
2010		0.80% to 1.40%		463,358		14.87 to 14.28		6,650,267		1.21%		22.47% to 21.73%
2009		0.80% to 1.40%		515,602		12.14 to 11.73		6,074,214		0.00%		25.68% to 24.92%
Janus Aspen Series - Balanced Portfolio - Service Shares (JABS)
2011		0.95% to 2.30%		655,718		16.15 to 15.59		10,841,461		2.28%		0.39% to -0.97%
2010		0.95% to 2.45%		781,885		16.09 to 15.55		12,961,037		2.54%		7.09% to 5.47%
2009		0.95% to 2.45%		876,368		15.02 to 14.75		13,598,156		2.79%		24.39% to 22.51%
2008		0.95% to 2.55%		848,549		12.08 to 11.96		10,629,343		2.43%		-16.86% to -18.20%
2007		0.95% to 2.55%		908,896		14.53 to 14.63		13,784,481		2.33%		9.23% to 7.46%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Janus Aspen Series - Forty Portfolio - Service Shares (JACAS)
2011		0.40% to 2.95%		8,157,179	$	8.24 to $ 14.48	$	111,233,520		0.25%		-7.31% to -9.68%
2010		0.40% to 2.95%		8,528,417		8.90 to 16.04		127,857,338		0.24%		6.05% to 3.34%
2009		0.40% to 2.95%		7,958,375		8.39 to 15.52		108,881,608		0.01%		45.43% to 41.71%
2008		0.80% to 2.85%		6,759,021		6.45 to 11.01		62,774,776		0.01%		-44.76% to -45.90%
2007		0.80% to 2.85%		4,763,489		11.67 to 20.36		70,732,848		0.18%		35.54% to 32.72%
Janus Aspen Series - Global Technology Portfolio - Service II Shares  (JAGTS2)
2011		0.75% to 2.55%		921,943		10.22 to 9.92		10,932,894		0.00%		-9.49% to -11.13%
2010		0.80% to 2.45%		765,556		15.90 to 11.17		10,472,391		0.00%		23.52% to 11.68%	****
2009		0.80% to 1.40%		417,666		12.87 to 12.29		5,164,464		0.00%		55.84% to 54.90%
2008		0.80% to 1.40%		342,194		8.26 to 7.93		2,732,234		0.09%		-44.35% to -44.68%
2007		0.80% to 1.40%		394,297		14.84 to 14.34		5,684,417		0.33%		20.78% to 20.04%
Janus Aspen Series - Global Technology Portfolio - Service Shares (JAGTS)
2011		0.80% to 1.40%		378,492		4.92 to 4.59		1,750,288		0.00%		-9.39% to -9.93%
2010		0.80% to 1.40%		429,603		5.43 to 5.09		2,204,148		0.00%		23.40% to 22.66%
2009		0.80% to 1.40%		566,071		4.40 to 4.15		2,364,877		0.00%		55.64% to 54.70%
2008		0.80% to 1.40%		628,439		2.83 to 2.68		1,696,007		0.09%		-44.42% to -44.76%
2007		0.80% to 1.40%		733,774		5.09 to 4.86		3,581,793		0.31%		20.72% to 19.99%
Janus Aspen Series - Overseas Portfolio - Service II Shares (JAIGS2)
2011		0.65% to 2.80%		4,453,401		7.21 to 16.61		83,075,727		0.37%		-32.77% to -34.23%
2010		0.65% to 2.80%		5,924,822		10.72 to 25.25		165,454,474		0.57%		24.22% to 21.53%
2009		0.65% to 3.25%		8,647,430		8.63 to 20.24		194,404,524		0.41%		77.91% to 73.25%
2008		0.65% to 3.25%		8,802,005		4.85 to 11.68		113,283,262		2.77%		-52.52% to -53.77%
2007		0.80% to 3.25%		7,719,861		29.56 to 25.27		212,963,970		0.45%		27.04% to 23.89%
Janus Aspen Series - Overseas Portfolio - Service Shares (JAIGS)
2011		0.80% to 2.15%		391,151		11.78 to 25.59		5,139,442		0.38%		-32.88% to -33.79%
2010		0.80% to 2.15%		470,786		17.55 to 38.65		9,286,940		0.52%		24.02% to 22.33%
2009		0.80% to 2.15%		602,788		14.15 to 31.60		9,534,039		0.41%		77.64% to 75.22%
2008		0.80% to 2.15%		711,183		7.97 to 18.03		6,402,172		2.65%		-52.61% to -53.26%
2007		0.80% to 2.15%		879,729		16.81 to 38.58		16,732,189		0.44%		26.99% to 25.25%
Investors Growth Stock Series - Service Class (MIGSC)
2011		0.95% to 2.80%		638,301		12.89 to 12.09		9,464,140		0.25%		-0.58% to -2.43%
2010		0.95% to 2.80%		809,425		12.96 to 12.39		12,090,332		0.30%		11.09% to 9.01%
2009		0.95% to 2.80%		996,255		11.67 to 11.37		13,426,951		0.45%		37.77% to 35.20%
2008		0.95% to 2.80%		1,184,843		8.47 to 8.41		11,622,597		0.30%		-37.58% to -38.75%
2007		0.95% to 3.15%		1,427,758		13.57 to 13.50		22,610,416		0.09%		9.96% to 7.51%
Value Series - Service Class (MVFSC)
2011		0.40% to 3.20%		19,464,081		9.28 to 13.46		317,118,489		1.23%		-0.86% to -3.65%
2010		0.65% to 3.20%		20,429,012		9.20 to 13.97		339,926,147		1.39%		10.49% to 7.66%
2009		0.65% to 3.25%		22,272,897		8.33 to 12.93		339,364,913		1.18%		21.66% to 18.47%
2008		0.80% to 3.05%		5,622,918		7.91 to 11.04		71,657,666		1.02%		-33.28% to -34.80%
2007		0.80% to 3.15%		4,556,477		11.85 to 16.86		87,844,770		0.73%		6.73% to 4.19%
Variable Insurance Trust II - International Value Portfolio - Service Class (MVIVSC)
2011		0.40% to 2.80%		4,818,705		10.58 to 10.16		50,011,075		1.17%		-2.17% to -4.52%
2010		0.65% to 2.65%		1,400,680		10.80 to 10.65		15,034,804		0.00%		7.97% to 6.52%	****
Core Plus Fixed Income Portfolio - Class I (MSVFI)
2011		0.80% to 1.40%		139,216		11.79 to 11.39		1,592,352		3.55%		4.80% to 4.17%
2010		0.80% to 1.40%		180,620		11.25 to 10.94		1,981,504		5.84%		6.29% to 5.64%
2009		0.80% to 1.40%		199,374		10.59 to 10.35		2,069,531		9.61%		8.77% to 8.11%
2008		0.80% to 1.40%		312,617		9.73 to 9.58		2,999,638		4.42%		-10.92% to -11.46%
2007		1.30% to 1.40%		328,510		10.83 to 10.82		3,557,887		4.01%		4.08% to 3.97%
Core Plus Fixed Income Portfolio - Class II (MSVF2)
2011		0.95% to 3.05%		1,719,934		12.32 to 10.16		19,859,702		3.46%		4.40% to 2.20%
2010		0.95% to 3.05%		2,060,566		11.80 to 9.94		22,903,727		5.14%		5.84% to 3.60%
2009		0.95% to 3.05%		2,319,135		11.15 to 9.59		24,504,304		12.99%		8.34% to 6.05%
2008		0.65% to 3.25%		22,132,369		8.92 to 8.94		214,874,888		4.27%		-11.04% to -13.37%
2007		0.95% to 3.25%		25,887,057		11.60 to 10.32		286,272,488		3.60%		4.21% to 1.78%
Emerging Markets Debt Portfolio - Class I (MSEM)
2011		0.80% to 1.40%		146,190		26.45 to 24.23		3,579,650		3.51%		6.18% to 5.54%
2010		0.80% to 1.40%		172,642		24.91 to 22.96		4,003,378		4.15%		8.87% to 8.21%
2009		0.80% to 1.40%		206,910		22.88 to 21.22		4,430,726		8.01%		29.17% to 28.39%
2008		0.80% to 1.40%		256,891		17.71 to 16.52		4,280,827		7.11%		-15.66% to -16.17%
2007		0.80% to 1.40%		351,451		21.00 to 19.71		6,980,725		7.33%		5.68% to 5.03%
Emerging Markets Debt Portfolio - Class II (MSEMB)
2011		1.10% to 2.05%		47,925		21.84 to 20.02		1,015,627		3.48%		5.71% to 4.70%
2010		1.10% to 2.05%		56,191		20.66 to 19.12		1,129,707		4.12%		8.53% to 7.49%
2009		1.10% to 2.15%		72,537		19.03 to 17.66		1,345,283		7.91%		28.68% to 27.32%
2008		1.10% to 2.15%		91,031		14.79 to 13.87		1,317,461		7.10%		-15.92% to -16.81%
2007		1.10% to 2.15%		113,859		17.59 to 16.68		1,965,340		7.38%		5.22% to 4.10%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
U.S. Real Estate Portfolio - Class I (MSVRE)
2010		1.30%		312	$	46.86	$	14,620		1.02%		28.27%
2008		0.80% to 1.40%		2,056,027		30.32 to 28.44		59,067,311		3.36%		-38.39% to -38.77%
2007		0.80% to 1.40%		2,592,043		49.21 to 46.45		121,497,196		1.18%		-17.74% to -18.24%
U.S. Real Estate Portfolio - Class II (MSVREB)
2011		1.35%		27		23.92		646		0.34%		4.24%
2010		1.35%		27		22.95		620		0.78%		27.78%
2009		1.35%		27		17.96		485		5.06%		26.76%
2008		0.95% to 2.80%		3,061,013		11.91 to 12.96		42,791,166		2.76%		-38.64% to -39.80%
2007		0.95% to 2.70%		3,568,905		19.41 to 21.64		81,882,876		1.04%		-18.06% to -19.52%
Managed Allocation Fund - Moderate Growth II (VFMG2)
2011		1.15% to 2.20%		293,739		11.34 to 10.46		3,311,354		1.57%		-6.59% to -7.58%
2010		1.15% to 2.35%		334,971		12.14 to 11.20		4,073,490		0.67%		9.28% to 7.96%
2009		1.15% to 2.35%		407,960		11.11 to 10.37		4,554,149		0.01%		24.18% to 22.67%
2008		1.15% to 2.60%		567,913		8.95 to 8.36		5,101,299		1.30%		-29.89% to -30.92%
2007		1.15% to 2.60%		651,956		12.76 to 12.10		8,384,121		2.05%		5.65% to 4.10%
American Century NVIT Multi Cap Value Fund - Class I (NVAMV1)
2011		0.80% to 1.40%		3,763,621		14.04 to 13.82		52,118,578		1.57%		-0.16% to -0.76%
2010		0.80% to 1.40%		4,645,835		14.07 to 13.93		64,777,629		1.95%		12.56% to 11.88%
2009		0.80% to 1.40%		5,595		12.50 to 12.45		69,699		1.43%		24.97% to 24.47%	****
American Century NVIT Multi Cap Value Fund - Class II (NVAMV2)
2011		0.40% to 3.30%		10,757,342		14.12 to 13.05		147,205,264		1.50%		0.09% to -2.82%
2010		0.65% to 3.30%		11,529,269		14.05 to 13.43		159,467,938		1.41%		12.42% to 9.42%
2009		1.10% to 2.75%		349,190		12.46 to 12.32		4,337,527		1.09%		24.59% to 23.20%	****
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
2011		0.65% to 3.25%		298,878,335		9.64 to 9.10		3,003,333,545		1.22%		0.27% to -2.34%
2010		0.65% to 3.35%		211,427,824		9.62 to 9.27		2,134,403,370		1.30%		11.29% to 8.34%
2009		0.65% to 3.35%		138,502,206		8.64 to 8.56		1,265,434,415		0.08%		22.61% to 19.18%
2008		0.80% to 3.10%		81,161,084		7.70 to 7.23		609,557,811		3.17%		-30.34% to -31.96%
2007		0.80% to 2.95%		42,263,897		11.06 to 10.66		460,727,179		2.72%		5.29% to 2.99%
American Funds NVIT Bond Fund - Class II (GVABD2)
2011		0.65% to 3.30%		91,572,178		11.07 to 10.16		1,024,351,460		2.11%		5.04% to 2.24%
2010		0.65% to 3.35%		71,841,137		10.54 to 9.92		770,617,482		1.80%		5.30% to 2.49%
2009		0.75% to 3.35%		50,794,802		9.98 to 9.68		521,115,164		0.36%		11.31% to 8.39%
2008		0.80% to 3.10%		33,032,987		9.57 to 8.99		306,925,600		7.38%		-10.59% to -12.67%
2007		0.80% to 2.95%		12,421,457		10.71 to 10.32		130,936,805		8.10%		2.15% to -0.07%
American Funds NVIT Global Growth Fund - Class II (GVAGG2)
2011		0.40% to 3.30%		11,697,772		8.82 to 8.99		116,477,223		0.91%		-9.67% to -12.30%
2010		0.40% to 3.30%		10,053,778		9.77 to 10.25		112,124,889		0.77%		10.86% to 7.63%
2009		0.75% to 3.30%		8,693,755		8.75 to 9.53		88,480,893		0.00%		40.54% to 36.93%
2008		0.75% to 3.05%		6,969,825		6.22 to 7.00		50,870,236		2.90%		-39.10% to -40.51%
2007		0.80% to 3.05%		5,365,947		12.23 to 11.78		64,844,710		2.79%		13.44% to 10.86%
American Funds NVIT Growth Fund - Class II (GVAGR2)
2011		0.40% to 3.30%		21,925,386		8.85 to 8.36		203,005,498		0.26%		-5.07% to -7.83%
2010		0.65% to 3.30%		19,445,092		9.12 to 9.07		191,754,817		0.16%		17.43% to 14.30%
2009		0.75% to 3.30%		16,804,221		7.75 to 7.94		142,381,453		0.00%		37.74% to 34.20%
2008		0.65% to 3.25%		15,955,035		5.63 to 5.92		98,887,216		2.18%		-44.58% to -46.03%
2007		0.80% to 3.25%		11,269,769		11.44 to 10.98		127,268,601		0.71%		11.00% to 8.24%
American Funds NVIT Growth-Income Fund - Class II (GVAGI2)
2011		0.40% to 3.30%		125,082,554		8.97 to 7.43		1,005,278,616		0.90%		-2.63% to -5.46%
2010		0.65% to 3.35%		94,709,952		8.93 to 7.83		789,529,433		0.84%		10.25% to 7.34%
2009		0.75% to 3.35%		64,562,256		8.08 to 7.29		491,918,665		0.00%		29.71% to 26.15%
2008		0.80% to 3.10%		38,038,535		6.05 to 5.81		225,395,652		3.41%		-38.56% to -39.99%
2007		0.80% to 2.95%		8,176,408		9.84 to 9.70		79,871,976		2.28%		-1.61% to -3.04%	****
Federated NVIT High Income Bond Fund - Class I (HIBF)
2011		0.95% to 2.20%		405,899		15.76 to 16.00		6,836,295		8.15%		2.83% to 1.58%
2010		0.95% to 2.35%		540,532		15.32 to 15.33		8,856,399		8.30%		12.08% to 10.50%
2009		0.95% to 2.35%		689,492		13.67 to 13.88		10,134,551		9.64%		44.61% to 42.57%
2008		0.95% to 2.35%		833,712		9.45 to 9.73		8,523,732		8.79%		-28.67% to -29.68%
2007		0.95% to 2.35%		1,099,805		13.25 to 13.84		15,862,330		7.26%		2.15% to 0.70%
Federated NVIT High Income Bond Fund - Class III (HIBF3)
2011		0.75% to 2.80%		7,233,930		12.03 to 12.28		97,191,051		7.75%		3.03% to 0.91%
2010		0.75% to 2.80%		7,280,016		11.68 to 12.17		95,630,359		8.85%		12.31% to 9.99%
2009		0.75% to 2.80%		6,014,764		10.40 to 11.07		70,825,989		9.70%		44.98% to 41.99%
2008		0.80% to 2.75%		3,688,239		7.78 to 7.81		30,220,484		8.86%		-28.67% to -30.08%
2007		0.80% to 2.80%		3,534,655		10.90 to 11.15		40,885,129		8.09%		2.34% to 0.26%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Emerging Markets Fund - Class I (GEM)
2011		0.80% to 1.40%		14,503	$	20.97 to $ 19.58	$	285,375		0.64%		-22.99% to -23.46%
2010		0.80% to 1.40%		18,106		27.23 to 25.59		465,619		0.05%		15.25% to 14.55%
2009		0.80% to 1.40%		25,866		23.62 to 22.34		580,996		1.17%		62.01% to 61.03%
2008		0.80% to 1.40%		33,579		14.58 to 13.87		468,183		1.15%		-58.10% to -58.36%
2007		0.80% to 1.40%		40,673		34.80 to 33.31		1,361,399		0.67%		44.41% to 43.53%
NVIT Emerging Markets Fund - Class II (GEM2)
2011		1.10% to 2.25%		44,117		29.78 to 26.84		1,272,348		0.44%		-23.45% to -24.34%
2010		1.10% to 2.45%		52,785		38.90 to 34.91		1,988,828		0.00%		14.64% to 13.08%
2009		1.10% to 2.45%		66,147		33.93 to 30.87		2,165,809		1.16%		61.29% to 59.09%
2008		1.10% to 2.45%		88,202		21.04 to 19.41		1,800,059		0.82%		-58.39% to -58.96%
2007		1.10% to 2.45%		134,775		50.56 to 47.29		6,651,015		0.42%		43.59% to 41.62%
NVIT Emerging Markets Fund - Class III (GEM3)
2011		0.80% to 1.40%		1,075,051		22.93 to 21.63		23,447,431		0.66%		-23.01% to -23.48%
2010		0.80% to 1.40%		1,413,626		29.79 to 28.26		40,245,214		0.07%		15.29% to 14.59%
2009		0.80% to 1.40%		1,637,414		25.84 to 24.66		40,653,617		1.30%		62.18% to 61.20%
2008		0.80% to 1.40%		1,827,343		15.93 to 15.30		28,122,168		1.09%		-58.17% to -58.42%
2007		0.80% to 1.40%		2,599,261		38.08 to 36.80		96,119,470		0.68%		44.38% to 43.50%
NVIT Emerging Markets Fund - Class VI (GEM6)
2011		0.75% to 2.80%		2,598,477		6.11 to 15.47		43,888,708		0.45%		-23.17% to -24.76%
2010		0.75% to 2.80%		2,890,791		7.95 to 20.57		63,579,406		0.00%		15.02% to 12.65%
2009		0.75% to 2.80%		2,858,691		6.91 to 18.26		54,764,422		1.12%		61.87% to 58.52%
2008		0.75% to 2.80%		2,681,445		4.27 to 11.52		32,388,303		0.99%		-58.18% to -59.05%
2007		0.95% to 2.80%		3,749,821		13.46 to 28.12		109,631,081		0.59%		34.62% to 41.36%		*	***
NVIT International Equity Fund - Class I (GIG)
2011		0.80% to 1.40%		3,386		11.16 to 10.42		35,746		1.25%		-10.49% to -11.03%
2010		0.80% to 1.40%		3,675		12.47 to 11.72		43,672		0.96%		12.38% to 11.71%
2009		0.80% to 1.40%		6,007		11.09 to 10.49		63,507		1.18%		28.68% to 27.91%
2008		0.80% to 1.40%		7,437		8.62 to 8.20		61,400		1.38%		-46.49% to -46.81%
2007		0.80% to 1.40%		7,935		16.11 to 15.42		123,047		0.38%		26.12% to 25.36%
NVIT International Equity Fund - Class III (GIG3)
2011		0.80% to 1.40%		1,510,544		17.66 to 16.65		25,320,360		1.23%		-10.48% to -11.03%
2010		0.80% to 1.40%		1,753,932		19.73 to 18.72		33,009,096		0.96%		12.36% to 11.69%
2009		0.80% to 1.40%		2,072,015		17.56 to 16.76		34,894,818		0.69%		28.63% to 27.86%
2008		0.80% to 1.40%		1,123,906		13.65 to 13.11		14,805,125		1.25%		-46.47% to -46.80%
2007		0.80% to 1.40%		1,528,618		25.50 to 24.63		37,816,487		0.44%		26.13% to 25.36%
Gartmore NVIT International Equity Fund - Class VI (NVIE6)
2011		0.40% to 2.75%		3,528,777		7.42 to 6.55		24,130,603		1.18%		-10.36% to -12.47%
2010		0.40% to 2.80%		2,754,847		8.28 to 7.47		21,261,973		0.94%		12.55% to 9.84%
2009		0.40% to 2.75%		2,369,404		7.35 to 6.81		16,443,478		0.61%		28.93% to 25.89%
2008		1.10% to 2.60%		510,631		5.47 to 5.41		2,781,264		1.52%		-45.33% to -45.88%		*	***
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class I (NVNMO1)
2011		0.80% to 1.40%		9,418,341		7.86 to 7.69		72,619,219		0.56%		-12.32% to -12.85%
2010		0.80% to 1.40%		11,003,045		8.97 to 8.83		97,286,636		0.20%		14.68% to 13.99%
2009		0.80% to 1.40%		13,158,118		7.82 to 7.74		101,993,343		0.18%		51.74% to 50.82%
2008		1.30% to 1.40%		12,714		5.14 to 5.13		65,309		0.00%		-48.63% to -48.66%		*	***
Neuberger Berman NVIT Multi Cap Opportunities Fund - Class II (NVNMO2)
2011		0.40% to 2.80%		3,122,319		7.84 to 7.24		23,656,246		0.56%		-12.01% to -14.13%
2010		0.65% to 2.75%		2,127,346		8.94 to 8.44		18,515,437		0.17%		14.64% to 12.21%
2009		0.75% to 2.75%		1,491,186		7.79 to 7.53		11,436,241		0.00%		51.82% to 48.76%
2008		1.10% to 2.75%		165,613		5.12 to 5.06		843,322		0.00%		-48.84% to -49.41%		*	***
Neuberger Berman NVIT Socially Responsible Fund - Class I (NVNSR1)
2011		0.80% to 1.40%		227,602		9.44 to 9.23		2,108,691		0.69%		-3.95% to -4.53%
2010		0.80% to 1.40%		202,690		9.83 to 9.67		1,964,901		0.86%		22.59% to 21.85%
2009		0.80% to 1.40%		202,450		8.02 to 7.94		1,609,379		0.49%		30.48% to 29.69%
2008		0.80% to 1.40%		255,949		6.15 to 6.12		1,567,453		0.43%		-38.55% to -38.80%		*	***
Neuberger Berman NVIT Socially Responsible Fund - Class II (NVNSR2)
2011		0.40% to 3.20%		19,248,367		10.02 to 8.60		174,928,764		0.62%		-3.65% to -6.36%
2010		0.65% to 3.20%		21,270,528		9.85 to 9.19		203,052,828		0.56%		22.76% to 19.61%
2009		0.65% to 3.25%		35,752,844		8.02 to 7.67		281,271,459		0.41%		30.42% to 27.00%
2008		0.65% to 3.25%		41,560,970		6.15 to 6.04		253,618,648		0.39%		-38.50% to -39.59%		*	***
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
2011		0.75% to 2.65%		2,675,730		13.65 to 8.08		22,508,074		1.95%		-7.08% to -8.86%
2010		0.80% to 2.65%		2,416,119		9.32 to 8.87		22,008,706		0.35%		14.04% to 11.91%
2009		0.80% to 2.60%		1,320,362		8.18 to 7.93		10,654,779		0.99%		28.16% to 25.84%
2008		0.80% to 2.60%		688,094		6.38 to 6.30		4,366,517		1.64%		-36.21% to -36.99%		*	***

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
2011		0.40% to 3.25%		128,328,881	$	10.81 to $ 9.24	$	1,259,936,055		2.45%		-1.74% to -4.54%
2010		0.40% to 3.25%		91,327,946		11.01 to 9.68		921,933,574		0.92%		9.96% to 6.82%
2009		0.80% to 3.10%		45,054,749		9.45 to 9.08		418,125,250		2.30%		18.86% to 16.11%
2008		1.10% to 3.10%		17,964,614		7.93 to 7.82		141,470,743		1.93%		-20.70% to -21.77%		*	***
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
2011		0.40% to 3.00%		215,720,584		10.37 to 8.75		1,993,782,374		2.23%		-3.83% to -6.34%
2010		0.65% to 3.00%		134,184,859		10.72 to 9.34		1,303,699,380		0.69%		11.66% to 9.02%
2009		0.80% to 3.00%		61,562,208		8.89 to 8.57		540,299,784		1.96%		23.17% to 20.44%
2008		0.80% to 2.95%		15,353,953		7.22 to 7.12		110,154,375		1.75%		-27.78% to -28.83%		*	***
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
2011		0.65% to 3.05%		54,984,947		11.75 to 10.00		581,434,652		2.58%		0.75% to -1.67%
2010		0.85% to 3.05%		35,658,142		11.63 to 10.17		377,651,311		1.21%		5.89% to 3.54%
2009		1.10% to 3.05%		19,312,567		10.15 to 9.82		194,470,746		3.10%		11.78% to 9.57%
2008		1.10% to 2.95%		5,226,256		9.08 to 8.97		47,264,496		2.21%		-9.18% to -10.32%		*	***
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
2011		0.40% to 3.40%		194,824,445		10.59 to 8.91		1,863,452,955		2.32%		-2.72% to -5.65%
2010		0.65% to 3.25%		133,082,298		10.82 to 9.48		1,321,688,824		0.79%		10.65% to 7.75%
2009		0.80% to 2.95%		54,968,785		9.17 to 8.84		498,076,084		2.23%		20.97% to 18.35%
2008		0.80% to 2.95%		13,903,119		7.58 to 7.47		104,822,308		1.77%		-24.19% to -25.29%		*	***
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
2011		0.75% to 3.25%		38,634,829		9.99 to 8.35		343,084,881		2.36%		-5.38% to -7.76%
2010		0.75% to 3.25%		40,125,331		10.56 to 9.05		379,893,041		0.56%		12.46% to 9.63%
2009		0.80% to 2.70%		21,578,200		8.61 to 8.34		183,374,699		1.47%		25.57% to 23.16%
2008		1.10% to 2.70%		14,026,096		6.84 to 6.77		95,660,793		1.72%		-31.56% to -32.31%		*	***
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
2011		0.40% to 2.95%		54,955,819		11.00 to 9.60		556,682,830		2.57%		-0.67% to -3.21%
2010		0.75% to 2.95%		39,080,002		10.98 to 9.92		402,595,617		1.02%		8.22% to 5.82%
2009		0.80% to 2.95%		18,399,363		9.72 to 9.37		176,473,619		2.81%		16.74% to 14.21%
2008		1.10% to 2.95%		4,777,489		8.31 to 8.21		39,524,433		1.94%		-16.89% to -17.93%		*	***
NVIT Core Bond Fund - Class I (NVCBD1)
2011		0.80% to 1.40%		235,110		11.99 to 11.72		2,763,344		3.22%		5.74% to 5.11%
2010		0.80% to 1.40%		209,916		11.34 to 11.15		2,346,078		2.54%		6.20% to 5.56%
2009		0.80% to 1.40%		279,023		10.67 to 10.57		2,952,194		3.81%		7.91% to 7.26%
2008		1.30% to 1.40%		42,991		9.86 to 9.85		423,815		3.07%		-1.41% to -1.48%		*	***
NVIT Core Bond Fund - Class II (NVCBD2)
2011		0.40% to 3.05%		11,130,478		12.24 to 10.91		127,534,053		2.69%		5.81% to 3.01%
2010		0.40% to 3.05%		13,216,889		11.56 to 10.59		144,795,792		2.18%		6.35% to 3.52%
2009		0.40% to 3.25%		19,490,331		10.87 to 10.20		203,646,838		3.50%		8.16% to 5.06%
2008		1.05% to 2.70%		279,918		9.85 to 9.74		2,747,847		3.51%		-1.46% to -2.56%		*	***
NVIT Core Plus Bond Fund - Class II (NVLCP2)
2011		0.40% to 2.70%		3,256,827		13.33 to 11.99		40,774,802		2.51%		5.62% to 3.19%
2010		0.75% to 2.70%		2,269,048		12.25 to 11.62		27,153,406		2.61%		7.30% to 5.20%
2009		0.80% to 2.70%		1,213,629		11.41 to 11.05		13,649,167		5.17%		15.50% to 13.29%
2008		0.80% to 2.70%		224,113		9.88 to 9.75		2,199,217		2.74%		-1.24% to -2.50%		*	***
NVIT Fund - Class I (TRF)
2011		0.80% to 1.40%		2,459,013		20.38 to 22.54		123,499,751		1.13%		-0.27% to -0.88%
2010		0.80% to 1.40%		2,827,396		20.43 to 22.74		144,432,190		1.00%		12.54% to 11.86%
2009		0.80% to 1.40%		3,250,148		18.16 to 20.33		147,253,756		1.33%		25.09% to 24.33%
2008		0.80% to 1.40%		3,836,090		14.51 to 16.35		139,622,623		1.38%		-42.02% to -42.37%
2007		0.80% to 1.40%		4,753,992		25.03 to 28.38		292,472,857		1.05%		7.31% to 6.66%
NVIT Fund - Class II (TRF2)
2011		0.65% to 3.20%		12,416,055		8.35 to 10.96		167,499,307		0.88%		-0.27% to -2.83%
2010		0.65% to 3.20%		14,608,151		8.38 to 11.28		199,289,832		0.68%		12.49% to 9.60%
2009		0.65% to 3.25%		23,090,202		7.45 to 10.26		283,628,433		1.14%		24.74% to 21.48%
2008		0.65% to 3.25%		28,046,162		5.97 to 8.44		280,666,419		1.23%		-41.99% to -43.51%
2007		0.95% to 3.25%		23,169,599		10.10 to 14.95		404,959,033		0.93%		1.03% to 4.37%		*	***
NVIT Government Bond Fund - Class I (GBF)
2011		0.40% to 3.20%		25,298,375		12.15 to 11.14		406,977,698		2.92%		6.83% to 3.83%
2010		0.40% to 3.20%		30,230,403		11.37 to 10.73		449,815,636		2.88%		4.36% to 1.43%
2009		0.65% to 3.25%		43,318,770		11.00 to 10.54		603,120,896		3.35%		2.02% to -0.65%
2008		0.65% to 3.25%		51,150,296		10.78 to 10.61		710,154,637		4.30%		7.02% to 4.22%
2007		0.80% to 3.25%		42,800,012		18.15 to 10.18		579,531,623		4.58%		6.30% to 3.66%
American Century NVIT Growth Fund - Class I (CAF)
2011		0.80% to 1.40%		1,730,666		15.40 to 16.63		31,767,638		0.57%		-1.48% to -2.08%
2010		0.80% to 1.40%		1,929,649		15.63 to 16.98		36,136,993		0.62%		18.29% to 17.58%
2009		0.80% to 1.40%		2,234,563		13.21 to 14.44		35,566,596		0.55%		32.40% to 31.60%
2008		0.80% to 1.40%		2,568,010		9.98 to 10.98		31,041,966		0.27%		-39.20% to -39.57%
2007		0.80% to 1.40%		3,094,521		16.41 to 18.16		61,757,970		0.17%		18.58% to 17.86%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
American Century NVIT Growth Fund - Class II (CAF2)
2011		0.40% to 2.55%		1,133,015	$	9.13 to $ 9.00	$	10,266,928		1.35%		-8.65% to -9.97%	****
NVIT International Index Fund - Class VIII (GVIX8)
2011		0.65% to 2.75%		2,533,356		6.78 to 7.01		19,050,533		2.62%		-13.41% to -15.24%
2010		0.65% to 2.75%		1,822,983		7.83 to 8.28		15,977,303		2.10%		6.70% to 4.45%
2009		0.80% to 2.75%		1,437,538		8.52 to 7.92		11,902,303		2.84%		27.58% to 25.07%
2008		0.80% to 2.75%		996,023		6.68 to 6.33		6,515,309		1.84%		-43.55% to -44.66%
2007		0.80% to 2.60%		994,418		11.83 to 11.48		11,613,924		1.36%		8.51% to 6.53%
NVIT Investor Destinations Aggressive Fund - Class II (GVIDA)
2011		0.75% to 3.05%		16,836,607		8.76 to 13.21		264,183,026		1.79%		-4.65% to -6.86%
2010		0.75% to 3.10%		20,614,506		9.19 to 14.12		341,454,727		1.70%		13.77% to 11.08%
2009		0.80% to 3.10%		25,390,427		12.62 to 12.71		372,961,401		1.08%		26.19% to 23.26%
2008		0.80% to 3.10%		28,976,150		10.00 to 10.31		340,600,981		2.05%		-37.35% to -38.81%
2007		0.80% to 3.10%		31,376,425		15.96 to 16.85		595,372,007		1.99%		5.11% to 2.66%
NVIT Investor Destinations Balanced Fund - Class II (NVDBL2)
2011		0.40% to 3.20%		39,506,703		12.76 to 11.83		489,089,921		2.15%		0.48% to -2.34%
2010		0.65% to 3.20%		21,980,236		12.64 to 12.11		273,719,201		1.26%		9.10% to 6.30%
2009		0.75% to 3.05%		5,086,185		11.58 to 11.40		58,589,875		1.75%		15.82% to 14.02%	****
NVIT Investor Destinations Capital Appreciation Fund - Class II (NVDCA2)
2011		0.40% to 3.00%		69,667,022		13.40 to 12.49		906,298,809		2.07%		-1.33% to -3.90%
2010		0.65% to 3.00%		32,219,088		13.52 to 13.00		429,561,830		1.21%		11.30% to 8.67%
2009		0.65% to 2.65%		9,516,319		12.15 to 11.99		114,993,475		1.84%		21.52% to 19.88%	****
NVIT Investor Destinations Conservative Fund - Class II (GVIDC)
2011		0.65% to 2.80%		40,657,415		10.99 to 11.21		518,552,257		2.41%		2.26% to 0.06%
2010		0.65% to 2.85%		29,968,371		10.75 to 11.16		377,440,958		2.19%		5.20% to 2.88%
2009		0.65% to 2.85%		23,544,842		10.22 to 10.85		283,709,134		1.88%		8.38% to 5.98%
2008		0.65% to 2.90%		17,322,335		9.43 to 10.21		194,173,796		3.48%		-6.63% to -8.75%
2007		0.80% to 2.90%		12,824,884		12.51 to 11.19		155,324,013		3.57%		4.53% to 2.31%
NVIT Investor Destinations Moderate Fund - Class II (GVIDM)
2011		0.40% to 3.15%		163,597,374		10.14 to 12.21		2,362,475,885		2.13%		-0.44% to -3.18%
2010		0.40% to 3.25%		166,698,445		10.19 to 12.51		2,456,068,489		1.95%		10.47% to 7.31%
2009		0.65% to 3.25%		159,101,261		9.17 to 11.66		2,150,669,858		1.54%		18.36% to 15.26%
2008		0.65% to 3.25%		149,844,350		7.75 to 10.12		1,725,868,410		2.83%		-23.70% to -25.69%
2007		0.75% to 3.25%		145,018,915		10.15 to 13.62		2,213,097,547		2.80%		1.55% to 2.21%	****
NVIT Investor Destinations Moderately Aggressive Fund - Class II (GVDMA)
2011		0.65% to 3.30%		80,738,644		9.36 to 12.69		1,253,194,315		2.01%		-2.76% to -5.35%
2010		0.65% to 3.10%		92,239,100		9.62 to 13.62		1,484,512,669		1.88%		12.10% to 9.34%
2009		0.65% to 3.15%		99,614,695		8.58 to 12.41		1,442,819,680		1.32%		23.58% to 20.47%
2008		0.65% to 3.25%		102,697,193		6.95 to 10.24		1,214,743,220		2.48%		-31.84% to -33.62%
2007		0.80% to 3.25%		100,235,949		15.31 to 15.43		1,754,174,386		2.38%		5.30% to 2.68%
NVIT Investor Destinations Moderately Conservative Fund - Class II (GVDMC)
2011		0.40% to 3.05%		55,287,171		10.75 to 11.79		756,070,865		2.31%		1.65% to -1.04%
2010		0.40% to 3.05%		51,232,905		10.57 to 11.92		698,910,323		2.11%		8.08% to 5.21%
2009		0.65% to 3.20%		46,770,342		9.73 to 11.21		598,037,127		1.73%		13.82% to 10.90%
2008		0.65% to 3.20%		42,212,488		8.55 to 10.11		478,690,281		3.20%		-15.60% to -17.76%
2007		0.80% to 3.00%		37,093,457		13.43 to 12.41		505,146,597		3.22%		5.01% to 2.67%
NVIT Mid Cap Index Fund - Class I (MCIF)
2011		0.40% to 3.05%		5,247,331		11.04 to 16.54		98,339,715		0.78%		-2.93% to -5.51%
2010		0.40% to 3.05%		5,115,318		11.37 to 17.50		99,473,389		1.28%		25.70% to 22.36%
2009		0.80% to 3.05%		5,707,255		14.59 to 14.30		88,938,969		0.99%		35.66% to 32.58%
2008		0.80% to 3.05%		5,965,468		10.76 to 10.79		67,891,140		1.25%		-36.97% to -38.41%
2007		0.80% to 3.05%		6,776,727		17.07 to 17.51		121,741,631		1.44%		6.69% to 4.26%
NVIT Money Market Fund - Class I (SAM)
2011		0.40% to 3.30%		52,755,926		10.05 to 8.63		654,112,501		0.00%		-0.40% to -3.29%
2010		0.40% to 3.30%		45,261,889		10.09 to 8.92		566,041,327		0.00%		-0.40% to -3.30%
2009		0.40% to 3.30%		47,298,089		10.13 to 9.23		611,884,145		0.05%		-0.36% to -3.26%
2008		0.65% to 3.25%		58,886,454		10.20 to 9.57		801,127,428		1.98%		1.39% to -1.26%
2007		0.80% to 3.25%		46,091,872		14.17 to 9.69		640,751,455		4.69%		3.95% to 1.37%
NVIT Multi-Manager International Growth Fund - Class III (NVMIG3)
2011		0.80% to 1.40%		4,100,818		8.41 to 8.22		33,815,868		1.26%		-10.09% to -10.63%
2010		0.80% to 1.40%		4,850,543		9.35 to 9.20		44,725,588		0.74%		13.12% to 12.44%
2009		0.80% to 1.40%		5,811,834		8.27 to 8.18		47,623,886		0.86%		35.37% to 34.55%
2008		0.80% to 1.40%		236,983		6.11 to 6.08		1,442,366		0.11%		-38.93% to -39.17%	****
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
2011		0.65% to 3.20%		20,747,296		8.37 to 7.61		166,929,621		1.07%		-10.21% to -12.51%
2010		0.65% to 3.20%		21,858,795		9.32 to 8.70		197,781,700		0.45%		13.07% to 10.17%
2009		0.65% to 3.25%		33,492,360		8.25 to 7.89		271,002,647		1.03%		35.22% to 31.68%
2008		0.65% to 3.25%		33,672,563		6.10 to 5.99		203,779,302		0.00%		-39.02% to -40.09%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Multi-Manager International Value Fund - Class II (GVDIV2)
2011		0.95% to 2.10%		44,925	$	11.24 to $ 11.97	$	559,837		1.41%		-17.21% to -18.17%
2010		0.95% to 2.15%		58,167		13.57 to 14.57		884,469		1.88%		4.89% to 3.62%
2009		0.95% to 2.15%		70,793		12.94 to 14.06		1,032,142		1.79%		28.28% to 26.72%
2008		0.95% to 2.20%		93,231		10.09 to 11.08		1,064,102		1.54%		-46.99% to -47.74%
2007		0.95% to 2.30%		114,548		19.03 to 21.03		2,483,741		1.68%		1.73% to 0.33%
NVIT Multi-Manager International Value Fund - Class III (GVDIV3)
2011		0.80% to 1.40%		415,870		13.70 to 13.00		5,441,335		1.76%		-16.78% to -17.29%
2010		0.80% to 1.40%		485,438		16.47 to 15.72		7,673,903		2.20%		5.26% to 4.63%
2009		0.80% to 1.40%		567,848		15.64 to 15.02		8,573,083		2.08%		28.80% to 28.02%
2008		0.80% to 1.40%		801,982		12.15 to 11.74		9,450,119		1.71%		-46.76% to -47.09%
2007		0.80% to 1.40%		1,163,407		22.81 to 22.18		25,890,831		2.19%		2.10% to 1.48%
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
2011		0.40% to 3.30%		5,935,093		6.25 to 7.73		52,384,680		1.81%		-16.73% to -19.16%
2010		0.40% to 3.30%		5,274,892		7.51 to 9.56		56,592,567		2.39%		5.43% to 2.36%
2009		0.40% to 3.30%		4,221,490		7.13 to 9.34		43,539,817		1.99%		28.97% to 25.22%
2008		0.65% to 3.25%		14,917,379		5.44 to 7.48		119,779,486		1.55%		-46.80% to -48.20%
2007		0.95% to 3.25%		17,958,586		15.73 to 14.43		274,210,858		2.13%		1.72% to -0.66%
NVIT Multi-Manager Large Cap Growth Fund - Class I (NVMLG1)
2011		0.80% to 1.40%		1,104,279		8.99 to 8.80		9,746,079		0.01%		-3.68% to -4.26%
2010		0.80% to 1.40%		1,296,267		9.34 to 9.19		11,938,684		0.06%		14.59% to 13.89%
2009		0.80% to 1.40%		435,720		8.15 to 8.07		3,519,745		0.80%		28.74% to 27.96%
2008		0.80% to 1.40%		4,988		6.33 to 6.30		31,488		0.49%		-36.70% to -36.95%	****
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
2011		0.40% to 3.20%		13,148,749		9.12 to 8.15		113,477,686		0.00%		-3.62% to -6.32%
2010		0.65% to 3.20%		14,383,005		9.33 to 8.70		130,345,255		0.00%		14.61% to 11.67%
2009		0.65% to 3.25%		20,688,233		8.14 to 7.79		165,234,419		0.48%		28.51% to 25.15%
2008		1.10% to 2.60%		100,379		6.31 to 6.25		631,180		0.35%		-36.86% to -37.51%	****
NVIT Multi-Manager Large Cap Value Fund - Class I (NVMLV1)
2011		0.80% to 1.40%		341,497		9.77 to 9.67		3,307,487		1.09%		-6.58% to -7.15%
2010		0.80% to 1.40%		368,018		10.46 to 10.42		3,835,629		0.50%		4.59% to 4.17%	****
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
2011		0.40% to 2.95%		5,145,247		8.96 to 7.67		41,597,008		0.87%		-6.47% to -8.86%
2010		0.40% to 2.95%		4,831,835		9.58 to 8.42		42,225,995		0.54%		12.29% to 9.42%
2009		0.40% to 2.95%		4,932,338		8.54 to 7.69		38,825,340		1.10%		26.90% to 23.65%
2008		0.80% to 2.75%		538,618		6.31 to 6.23		3,379,434		0.97%		-36.85% to -37.69%	****
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2011		0.80% to 1.40%		18,999,885		9.41 to 9.21		175,492,290		0.00%		-4.99% to -5.57%
2010		0.80% to 1.40%		21,964,214		9.91 to 9.75		214,642,760		0.00%		25.80% to 25.04%
2009		0.80% to 1.40%		25,406,505		7.88 to 7.80		198,383,368		0.00%		26.10% to 25.34%
2008		0.80% to 1.40%		82,831		6.25 to 6.22		515,576		0.00%		-37.54% to -37.79%	****
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
2011		0.40% to 3.20%		14,187,931		9.27 to 8.52		127,998,792		0.00%		-4.83% to -7.50%
2010		0.65% to 3.20%		15,990,746		9.87 to 9.21		153,386,874		0.00%		25.65% to 22.43%
2009		0.65% to 3.25%		21,823,573		7.86 to 7.52		168,407,542		0.00%		25.88% to 22.59%
2008		0.65% to 3.25%		13,384,980		6.24 to 6.13		82,917,533		0.00%		-37.57% to -38.67%	****
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
2011		0.40% to 3.20%		27,202,766		10.41 to 9.14		265,164,390		0.81%		-2.71% to -5.44%
2010		0.65% to 3.20%		30,788,320		10.37 to 9.67		311,820,186		1.26%		18.85% to 15.81%
2009		0.65% to 3.25%		38,969,703		8.72 to 8.34		334,877,361		1.06%		29.62% to 26.23%
2008		0.65% to 3.25%		25,339,928		6.73 to 6.61		169,207,097		1.07%		-32.72% to -33.90%	****
NVIT Multi-Manager Small Cap Growth Fund - Class I (SCGF)
2011		0.80% to 1.40%		954,853		6.98 to 6.50		6,273,549		0.00%		-1.44% to -2.04%
2010		0.80% to 1.40%		1,058,529		7.08 to 6.64		7,084,169		0.00%		24.44% to 23.69%
2009		0.80% to 1.40%		1,069,631		5.69 to 5.37		5,784,908		0.00%		26.44% to 25.68%
2008		0.80% to 1.40%		1,159,659		4.50 to 4.27		4,987,989		0.00%		-46.85% to -47.17%
2007		0.80% to 1.40%		1,333,156		8.47 to 8.08		10,842,638		0.00%		8.87% to 8.21%
NVIT Multi-Manager Small Cap Growth Fund - Class II (SCGF2)
2011		0.65% to 2.80%		1,534,116		8.49 to 11.43		21,201,023		0.00%		-1.50% to -3.63%
2010		0.65% to 2.80%		1,120,559		8.62 to 11.86		16,035,870		0.00%		24.29% to 21.61%
2009		0.95% to 2.65%		983,361		7.04 to 10.84		11,455,239		0.00%		25.98% to 23.82%
2008		0.95% to 2.65%		968,639		5.59 to 8.75		9,006,487		0.00%		-47.04% to -47.96%
2007		0.95% to 2.80%		1,534,096		10.55 to 15.18		26,997,038		0.00%		5.55% to 6.42%	****
NVIT Multi-Manager Small Cap Value Fund - Class I (SCVF)
2011		0.80% to 1.40%		1,530,375		21.83 to 20.09		31,072,461		0.44%		-5.83% to -6.40%
2010		0.80% to 1.40%		1,869,906		23.18 to 21.46		40,531,559		0.59%		25.59% to 24.83%
2009		0.80% to 1.40%		2,126,736		18.45 to 17.19		36,900,577		0.58%		25.21% to 24.45%
2008		0.80% to 1.40%		2,629,323		14.74 to 13.81		36,629,666		1.08%		-32.70% to -33.10%
2007		0.80% to 1.40%		3,462,637		21.90 to 20.65		72,051,759		1.12%		-7.64% to -8.21%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Multi-Manager Small Cap Value Fund - Class II (SCVF2)
2011		0.40% to 2.90%		1,135,796	$	10.65 to $ 15.40	$	22,006,668		0.31%		-5.83% to -8.19%
2010		0.85% to 2.90%		1,184,181		10.57 to 16.78		24,902,171		0.44%		25.40% to 22.81%
2009		0.85% to 2.90%		1,573,837		8.43 to 13.66		26,272,189		0.48%		24.79% to 22.21%
2008		0.85% to 2.90%		1,254,598		6.75 to 11.18		17,069,075		0.90%		-32.88% to -34.27%
2007		0.95% to 2.70%		1,429,150		14.60 to 19.38		29,121,568		0.90%		-8.12% to -9.75%
NVIT Multi-Manager Small Company Fund - Class I (SCF)
2011		0.80% to 1.40%		2,073,053		37.57 to 34.08		71,520,637		0.53%		-6.31% to -6.88%
2010		0.80% to 1.40%		2,424,228		40.10 to 36.60		89,746,825		0.28%		24.32% to 23.57%
2009		0.80% to 1.40%		2,862,552		32.25 to 29.62		85,697,283		0.27%		33.62% to 32.82%
2008		0.80% to 1.40%		3,418,854		24.14 to 22.30		76,995,047		0.79%		-38.68% to -39.06%
2007		0.80% to 1.40%		4,226,617		39.37 to 36.59		156,048,695		0.09%		1.31% to 0.69%
NVIT Multi-Manager Small Company Fund - Class II (SCF2)
2011		0.75% to 2.95%		2,180,295		9.60 to 15.43		41,474,802		0.47%		-6.51% to -8.58%
2010		0.75% to 2.95%		2,354,378		10.27 to 16.88		48,456,246		0.06%		24.04% to 21.30%
2009		0.85% to 2.95%		2,565,425		8.26 to 13.92		42,920,845		0.15%		33.29% to 30.46%
2008		0.65% to 3.25%		4,915,642		6.21 to 10.48		61,690,354		0.61%		-38.76% to -40.36%
2007		0.95% to 3.25%		4,806,056		16.16 to 17.57		99,556,181		0.00%		0.92% to -1.44%
NVIT Multi-Sector Bond Fund - Class I (MSBF)
2011		0.40% to 2.95%		9,793,974		11.72 to 11.76		138,341,481		4.40%		5.13% to 2.44%
2010		0.65% to 2.95%		8,055,038		11.15 to 11.48		109,383,488		6.73%		9.87% to 7.33%
2009		0.80% to 2.95%		5,998,819		14.93 to 10.70		75,080,727		10.13%		23.38% to 20.71%
2008		0.80% to 2.95%		4,888,835		12.10 to 8.86		50,278,472		7.18%		-17.95% to -19.73%
2007		0.80% to 2.95%		5,127,598		14.75 to 11.04		65,624,015		3.96%		3.78% to 1.52%
NVIT Short Term Bond Fund - Class II (NVSTB2)
2011		0.40% to 3.30%		6,676,235		10.92 to 9.77		69,466,322		1.59%		0.89% to -2.04%
2010		0.65% to 3.30%		7,264,937		10.72 to 9.97		75,846,288		1.32%		1.75% to -0.96%
2009		0.80% to 3.30%		7,363,311		10.51 to 10.07		76,304,875		2.29%		6.25% to 3.58%
2008		0.80% to 2.90%		1,618,282		9.89 to 9.75		15,898,860		2.47%		-1.10% to -2.50%	****
NVIT Large Cap Growth Fund - Class I (NVOLG1)
2011		0.80% to 1.40%		24,571,339		13.60 to 13.38		329,412,509		0.66%		-3.01% to -3.60%
2010		0.80% to 1.40%		30,384,486		14.02 to 13.88		422,241,384		0.06%		7.93% to 7.28%
2009		0.80% to 1.40%		46,211		12.99 to 12.94		598,142		0.34%		29.90% to 29.38%	****
NVIT Large Cap Growth Fund - Class II (NVOLG2)
2011		0.65% to 2.95%		17,340,176		13.56 to 12.74		229,464,344		0.41%		-3.13% to -5.37%
2010		0.65% to 3.10%		21,739,959		14.00 to 13.43		299,585,237		0.07%		7.81% to 5.16%
2009		1.05% to 2.45%		126,715		12.95 to 12.82		1,636,114		0.01%		29.46% to 28.24%	****
Templeton NVIT International Value Fund - Class III (NVTIV3)
2011		0.40% to 3.20%		19,166,748		12.01 to 11.13		222,434,162		2.83%		-12.78% to -15.23%
2010		0.65% to 3.20%		16,971,191		13.71 to 13.13		228,494,131		1.85%		5.65% to 2.95%
2009		0.65% to 3.25%		24,685,147		12.98 to 12.75		317,975,246		0.42%		29.78% to 27.50%	****
Van Kampen NVIT Comstock Value Fund - Class II (EIF2)
2011		0.65% to 3.20%		8,681,768		8.79 to 11.85		128,259,076		1.14%		-3.18% to -5.66%
2010		0.65% to 3.20%		8,163,585		9.08 to 12.56		125,378,639		1.29%		14.70% to 11.75%
2009		0.65% to 3.25%		6,274,173		7.92 to 11.20		85,166,606		1.05%		27.43% to 24.10%
2008		0.65% to 3.25%		8,010,536		6.21 to 9.03		85,951,615		1.57%		-37.63% to -39.26%
2007		0.80% to 3.25%		18,188,564		12.93 to 14.86		315,762,751		1.56%		-3.39% to -5.79%
NVIT Real Estate Fund - Class I (NVRE1)
2011		0.80% to 1.40%		6,584,064		9.95 to 9.73		64,220,052		0.86%		5.65% to 5.01%
2010		0.80% to 1.40%		7,607,257		9.41 to 9.26		70,603,939		1.91%		29.14% to 28.36%
2009		0.80% to 1.40%		8,476,274		7.29 to 7.22		61,240,260		2.17%		29.79% to 29.00%
2008		0.80% to 1.40%		146,484		5.62 to 5.59		819,751		4.56%		-43.84% to -44.06%	****
NVIT Real Estate Fund - Class II (NVRE2)
2011		0.65% to 2.80%		6,645,388		9.89 to 9.13		63,716,493		0.61%		5.45% to 3.17%
2010		0.85% to 2.80%		7,395,551		9.33 to 8.85		67,769,999		1.69%		28.72% to 26.19%
2009		0.75% to 2.70%		7,149,290		7.26 to 7.02		51,256,307		1.92%		29.54% to 26.99%
2008		0.95% to 2.80%		319,169		5.60 to 5.53		1,779,763		3.53%		-44.02% to -44.73%	****
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
2011		0.40%		4,833		9.14		44,167		0.00%		-8.61%	****
VPS Growth and Income Portfolio - Class B (ALVGIB)
2011		0.95% to 2.30%		449,878		12.48 to 13.74		6,554,605		1.09%		5.06% to 3.64%
2010		0.95% to 2.60%		585,653		11.88 to 12.94		8,132,903		0.00%		11.73% to 9.87%
2009		0.95% to 2.80%		733,419		10.63 to 10.47		9,115,377		3.52%		19.21% to 16.98%
2008		0.95% to 2.80%		891,778		8.92 to 8.95		9,367,499		1.77%		-41.26% to -42.36%
2007		0.95% to 2.90%		1,095,470		15.18 to 15.45		19,731,218		1.22%		3.86% to 1.80%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VPS Small/Mid Cap Value Portfolio - Class B (ALVSVB)
2011		0.40% to 2.80%		2,665,187	$	10.68 to $ 16.79	$	53,434,948		0.24%		-8.99% to -11.18%
2010		0.40% to 2.80%		2,060,999		11.74 to 18.91		45,815,068		0.26%		26.08% to 23.05%
2009		0.40% to 2.90%		1,172,611		9.31 to 15.26		21,042,602		0.78%		42.09% to 38.52%
2008		0.80% to 2.80%		934,857		6.22 to 11.08		11,843,636		0.28%		-37.79% to -37.55%	****
2007		0.95% to 2.40%		394,975		16.31 to 19.59		7,812,720		0.80%		0.56% to -0.92%
VP Balanced Fund - Class I (ACVB)
2011		0.80% to 1.40%		1,363,531		21.63 to 22.90		33,399,691		1.87%		4.49% to 3.86%
2010		0.80% to 1.40%		1,591,690		20.70 to 22.04		37,481,345		1.87%		10.74% to 10.07%
2009		0.80% to 1.40%		1,885,279		18.70 to 20.03		40,271,753		5.37%		14.56% to 13.87%
2008		0.80% to 1.40%		2,314,333		16.32 to 17.59		43,388,355		2.68%		-20.97% to -21.45%
2007		0.80% to 1.40%		2,885,081		20.65 to 22.39		68,694,053		2.18%		4.09% to 3.46%
VP Capital Appreciation Fund - Class I (ACVCA)
2010		1.30%		197		49.69		9,789		0.00%		29.59%
2008		0.80% to 1.40%		2,882,462		11.93 to 14.27		70,456,060		0.00%		-46.62% to -46.94%
2007		0.80% to 1.40%		3,530,839		22.34 to 26.89		159,958,937		0.00%		44.63% to 43.75%
VP Income & Growth Fund - Class I (ACVIG)
2011		0.80% to 1.40%		1,231,796		12.41 to 11.42		14,222,208		1.54%		2.29% to 1.67%
2010		0.80% to 1.40%		1,330,183		12.13 to 11.24		15,091,629		1.52%		13.23% to 12.55%
2009		0.80% to 1.40%		1,564,365		10.71 to 9.98		15,758,920		4.85%		17.15% to 16.44%
2008		0.80% to 1.40%		1,902,498		9.15 to 8.57		16,446,480		2.09%		-35.11% to -35.50%
2007		0.80% to 1.40%		2,391,422		14.09 to 13.29		32,022,315		1.98%		-0.87% to -1.47%
VP Income & Growth Fund - Class II (ACVIG2)
2011		0.95% to 2.40%		311,018		12.82 to 13.54		4,486,341		1.27%		1.88% to 0.39%
2010		0.95% to 2.55%		413,946		12.59 to 13.32		5,882,372		1.26%		12.78% to 10.96%
2009		0.95% to 2.85%		503,648		11.16 to 9.01		6,339,742		4.46%		16.66% to 14.25%
2008		0.95% to 2.85%		602,251		9.57 to 7.88		6,525,719		1.80%		-35.35% to -36.67%
2007		0.95% to 2.85%		727,674		14.80 to 12.45		12,216,196		1.71%		-1.38% to -3.23%
VP Inflation Protection Fund - Class II (ACVIP2)
2011		0.40% to 3.30%		17,822,531		12.54 to 11.89		248,904,528		4.07%		11.30% to 8.07%
2010		0.40% to 3.30%		14,505,426		11.27 to 11.00		184,077,579		1.65%		4.70% to 1.65%
2009		0.40% to 3.30%		12,382,367		10.76 to 10.83		151,758,191		1.80%		9.77% to 6.58%
2008		0.75% to 3.05%		10,709,237		10.07 to 10.32		120,944,215		4.72%		-2.33% to -4.59%
2007		0.80% to 3.05%		6,820,642		11.89 to 10.81		79,613,998		4.31%		8.61% to 6.14%
VP International Fund - Class I (ACVI)
2008		0.80% to 1.40%		1,852,745		15.27 to 14.16		26,470,256		0.84%		-45.27% to -45.60%
2007		0.80% to 1.40%		2,292,787		27.90 to 26.02		60,157,680		0.72%		17.11% to 16.40%
VP International Fund - Class II (ACVI2)
2008		0.95% to 2.15%		128,519		11.38 to 12.17		1,624,402		0.67%		-45.42% to -46.09%
2007		0.95% to 2.15%		152,551		20.85 to 22.58		3,551,239		0.56%		16.79% to 15.37%
VP International Fund - Class III (ACVI3)
2008		0.80% to 1.40%		1,568,771		10.15 to 9.75		15,380,530		0.83%		-45.27% to -45.60%
2007		0.80% to 1.40%		1,893,113		18.55 to 17.92		34,085,680		0.70%		17.11% to 16.40%
VP International Fund - Class IV (ACVI4)
2008		0.95% to 2.80%		943,918		9.95 to 9.11		9,133,453		0.68%		-45.47% to -46.50%
2007		0.95% to 2.80%		1,081,252		18.24 to 17.03		19,305,697		0.42%		16.77% to 14.58%
VP Mid Cap Value Fund - Class I (ACVMV1)
2011		0.80% to 1.40%		580,082		12.12 to 11.71		6,829,047		1.33%		-1.49% to -2.08%
2010		0.80% to 1.40%		563,062		12.30 to 11.96		6,762,218		2.25%		18.30% to 17.59%
2009		0.80% to 1.40%		535,378		10.40 to 10.17		5,462,541		3.84%		28.91% to 28.13%
2008		0.80% to 1.40%		566,200		8.07 to 7.94		4,504,507		0.09%		-24.95% to -25.41%
2007		0.80% to 1.40%		544,568		10.75 to 10.64		5,803,553		0.95%		-3.09% to -3.68%
VP Mid Cap Value Fund - Class II (ACVMV2)
2011		0.40% to 3.30%		4,998,981		11.87 to 12.26		68,625,791		1.21%		-1.24% to -4.11%
2010		0.75% to 3.30%		4,240,631		11.42 to 12.79		59,493,597		2.24%		18.08% to 15.05%
2009		0.75% to 3.30%		3,038,070		9.67 to 11.11		36,485,640		3.39%		28.83% to 25.52%
2008		0.75% to 2.90%		2,949,866		7.51 to 8.99		27,697,339		0.09%		-25.08% to -26.70%
2007		1.10% to 2.90%		2,191,006		12.88 to 12.26		27,830,212		0.66%		-3.50% to -5.27%
VP Ultra(R) Fund - Class I (ACVU1)
2008		0.80% to 1.40%		259,464		7.37 to 7.08		1,847,004		0.00%		-41.95% to -42.30%
2007		0.80% to 1.40%		371,822		12.70 to 12.27		4,581,136		0.00%		20.04% to 19.31%
VP Ultra(R) Fund - Class II (ACVU2)
2008		0.95% to 2.90%		868,516		7.82 to 7.74		7,868,731		0.00%		-42.20% to -43.34%
2007		0.95% to 2.90%		1,079,627		13.53 to 13.65		17,056,680		0.00%		19.69% to 17.32%
VP Value Fund - Class I (ACVV)
2009		0.80% to 1.40%		3,000,711		21.33 to 19.71		59,752,569		5.88%		18.90% to 18.19%
2008		0.80% to 1.40%		3,763,741		17.94 to 16.68		63,351,622		2.53%		-27.36% to -27.80%
2007		0.80% to 1.40%		4,831,480		24.70 to 23.10		112,542,386		1.78%		-5.90% to -6.47%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VP Value Fund - Class II (ACVV2)
2009		0.75% to 3.30%		5,307,560	$	8.68 to $ 11.81	$	76,316,151		5.43%		18.82% to 15.77%
2008		0.75% to 2.95%		5,916,904		7.31 to 10.41		72,299,440		2.22%		-27.35% to -28.97%
2007		0.95% to 2.95%		5,881,576		14.49 to 14.65		99,951,941		1.51%		-6.21% to -8.12%
VP Vista(SM) Fund - Class I (ACVVS1)
2008		0.80% to 1.40%		560,487		6.77 to 6.66		3,740,623		0.00%		-49.04% to -49.34%
2007		0.80% to 1.40%		951,361		13.28 to 13.14		12,519,496		0.00%		38.65% to 37.81%
VP Vista(SM) Fund - Class II (ACVVS2)
2008		0.95% to 2.80%		1,499,857		6.31 to 8.04		12,523,097		0.00%		-49.20% to -50.15%
2007		0.95% to 2.80%		2,291,468		12.42 to 16.13		37,937,432		0.00%		24.25% to 35.61%	****
Small Cap Stock Index Portfolio - Service Shares (DVSCS)
2011		0.40% to 3.20%		4,193,254		11.38 to 16.56		80,122,724		0.59%		0.16% to -2.65%
2010		0.40% to 3.20%		3,955,893		11.36 to 17.02		76,702,207		0.48%		25.32% to 21.80%
2009		0.40% to 2.90%		2,741,931		9.06 to 14.26		41,696,031		2.51%		24.53% to 21.40%
2008		0.80% to 2.80%		2,849,922		10.29 to 11.82		34,819,726		0.81%		-31.47% to -32.85%
2007		0.80% to 2.70%		2,789,752		15.01 to 19.17		49,316,620		0.40%		-1.45% to -3.35%
Appreciation Portfolio - Initial Shares (DCAP)
2011		0.80% to 1.40%		1,991,035		17.89 to 16.39		33,021,204		1.60%		8.14% to 7.49%
2010		0.80% to 1.40%		1,798,776		16.54 to 15.25		27,718,064		2.19%		14.40% to 13.70%
2009		0.80% to 1.40%		1,906,125		14.46 to 13.41		25,808,007		2.70%		21.58% to 20.84%
2008		0.80% to 1.40%		2,251,894		11.90 to 11.10		25,206,414		2.03%		-30.12% to -30.54%
2007		0.80% to 1.40%		2,667,862		17.02 to 15.98		42,947,989		1.61%		6.27% to 5.62%
Appreciation Portfolio - Service Shares (DCAPS)
2011		0.40% to 2.80%		5,240,577		10.92 to 13.43		83,122,167		1.22%		8.30% to 5.70%
2010		0.75% to 2.80%		2,607,789		9.86 to 12.71		39,007,042		1.68%		14.18% to 11.83%
2009		0.75% to 3.00%		1,768,979		8.63 to 11.21		23,417,821		2.14%		21.31% to 18.56%
2008		0.75% to 3.00%		1,678,407		7.12 to 9.45		18,482,018		1.65%		-30.25% to -31.83%
2007		0.95% to 3.00%		1,388,567		14.34 to 13.87		22,154,594		1.41%		5.83% to 3.63%
Opportunistic Small Cap Portfolio: Service Shares (DVDLS)
2011		0.95% to 2.25%		146,781		9.42 to 10.80		1,693,426		0.31%		-14.87% to -15.99%
2010		0.95% to 2.40%		146,633		11.06 to 12.71		1,954,963		0.67%		29.57% to 27.68%
2009		0.95% to 2.40%		130,684		8.54 to 9.95		1,382,149		1.28%		24.57% to 22.74%
2008		0.95% to 2.40%		145,489		6.85 to 8.11		1,231,064		0.56%		-38.36% to -39.27%
2007		0.95% to 2.40%		189,656		11.12 to 13.35		2,613,330		0.53%		-12.13% to -13.42%
Growth and Income Portfolio - Initial Shares (DGI)
2011		0.80% to 1.40%		981,613		14.05 to 12.83		12,734,711		1.23%		-3.57% to -4.15%
2010		0.80% to 1.40%		1,135,487		14.57 to 13.38		15,357,509		1.20%		17.66% to 16.95%
2009		0.80% to 1.40%		1,288,723		12.39 to 11.44		14,891,654		1.32%		27.76% to 26.98%
2008		0.80% to 1.40%		1,549,201		9.69 to 9.01		14,086,099		0.63%		-40.89% to -41.25%
2007		0.80% to 1.40%		1,896,207		16.40 to 15.34		29,317,204		0.75%		7.57% to 6.92%
Capital Appreciation Fund II - Service Shares (FCA2S)
2011		0.95% to 2.40%		119,610		11.93 to 12.45		1,615,658		0.50%		-6.40% to -7.77%
2010		0.95% to 2.40%		159,179		12.75 to 13.50		2,289,941		0.62%		11.93% to 10.30%
2009		0.95% to 2.25%		134,046		11.39 to 9.41		1,702,974		0.76%		12.19% to 10.58%
2008		0.95% to 2.55%		173,986		10.15 to 10.97		1,971,709		0.02%		-30.34% to -31.46%
2007		0.95% to 3.15%		192,944		14.57 to 14.35		3,164,519		0.55%		8.59% to 6.17%
Quality Bond Fund II - Primary Shares (FQB)
2011		0.80% to 1.40%		780,758		14.90 to 14.06		11,050,770		5.28%		1.46% to 0.84%
2010		0.80% to 1.40%		917,867		14.69 to 13.94		12,879,317		4.92%		7.64% to 6.99%
2009		0.80% to 1.40%		988,389		13.65 to 13.03		12,949,621		6.58%		19.47% to 18.75%
2008		0.80% to 1.40%		1,061,286		11.42 to 10.97		11,701,500		5.61%		-8.03% to -8.59%
2007		0.80% to 1.40%		1,330,368		12.42 to 12.00		16,034,879		4.53%		4.54% to 3.90%
Quality Bond Fund II - Service Shares (FQBS)
2011		0.95% to 2.60%		3,296,763		13.30 to 11.49		41,686,179		5.15%		1.02% to -0.65%
2010		0.95% to 2.70%		4,051,047		13.16 to 11.48		50,963,526		4.80%		7.25% to 5.36%
2009		0.95% to 2.95%		4,565,974		12.27 to 10.54		53,792,192		6.26%		19.01% to 16.61%
2008		0.95% to 2.95%		4,844,381		10.31 to 9.04		48,257,499		4.88%		-8.43% to -10.28%
2007		0.95% to 2.95%		5,168,222		11.26 to 10.07		56,663,144		4.31%		4.14% to 2.02%
Contrafund Portfolio - Service Class 2 (FC2)
2009		0.95% to 3.10%		14,053,840		8.45 to 13.83		231,399,877		1.15%		34.18% to 31.27%
2008		0.95% to 3.10%		16,338,369		6.29 to 10.54		201,905,123		0.73%		-43.24% to -44.47%
2007		0.95% to 3.10%		18,440,700		11.09 to 18.97		404,049,775		0.79%		10.88% to 13.65%	****
Equity-Income Portfolio - Initial Class (FEIP)
2011		0.80% to 1.40%		8,145,845		22.88 to 27.73		327,038,946		2.36%		0.17% to -0.44%
2010		0.80% to 1.40%		9,449,660		22.84 to 27.86		380,431,480		1.77%		14.23% to 13.54%
2009		0.80% to 1.40%		11,095,521		19.99 to 24.53		392,467,682		2.23%		29.17% to 28.39%
2008		0.80% to 1.40%		13,248,157		15.48 to 19.11		363,508,408		2.28%		-43.11% to -43.46%
2007		0.80% to 1.40%		16,421,321		27.21 to 33.80		788,830,764		1.74%		0.71% to 0.10%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Fidelity(R) VIP Fund - Value Strategies Portfolio - Service Class 2 (FVSS2)
2011		1.10% to 2.65%		490,823	$	19.18 to $ 16.67	$	9,070,473		0.64%		-10.04% to -11.44%
2010		1.10% to 3.10%		670,043		21.32 to 16.18		13,530,923		0.28%		24.95% to 22.43%
2009		1.10% to 3.10%		778,358		17.06 to 13.21		12,618,401		0.37%		55.42% to 52.28%
2008		1.10% to 3.10%		844,676		10.98 to 8.68		8,862,131		0.49%		-51.82% to -52.80%
2007		1.10% to 3.10%		1,045,050		22.79 to 18.38		22,900,224		0.63%		4.28% to 2.15%
High Income Portfolio - Initial Class (FHIP)
2011		0.80% to 1.40%		1,920,320		18.38 to 19.23		53,138,689		6.45%		3.20% to 2.58%
2010		0.80% to 1.40%		2,252,355		17.81 to 18.75		60,665,536		7.27%		12.91% to 12.23%
2009		0.80% to 1.40%		2,706,774		15.77 to 16.70		64,906,933		7.64%		42.81% to 41.94%
2008		0.80% to 1.40%		3,333,874		11.05 to 11.77		56,114,072		7.80%		-25.59% to -26.04%
2007		0.80% to 1.40%		4,420,785		14.84 to 15.91		100,020,943		6.64%		1.96% to 1.34%
VIP Fund - Asset Manager Portfolio - Initial Class (FAMP)
2011		0.80% to 1.40%		4,443,665		22.64 to 21.53		142,760,992		1.83%		-3.34% to -3.92%
2010		0.80% to 1.40%		5,144,923		23.42 to 22.41		171,687,433		1.66%		13.35% to 12.67%
2009		0.80% to 1.40%		5,946,996		20.66 to 19.89		175,392,894		2.33%		28.08% to 27.31%
2008		0.80% to 1.40%		6,966,315		16.13 to 15.62		160,712,631		2.43%		-29.29% to -29.72%
2007		0.80% to 1.40%		8,375,163		22.81 to 22.23		272,815,879		6.05%		14.58% to 13.88%
VIP Fund - Contrafund Portfolio - Initial Class (FCP)
2009		0.80% to 1.40%		12,707,542		29.30 to 29.18		374,619,416		1.36%		34.62% to 33.81%
2008		0.80% to 1.40%		15,111,468		21.76 to 21.80		332,663,039		0.91%		-42.97% to -43.32%
2007		0.80% to 1.40%		18,212,023		38.16 to 38.47		706,656,295		0.90%		16.65% to 15.94%
VIP Fund - Energy Portfolio - Service Class 2 (FNRS2)
2011		0.75% to 2.80%		5,296,112		8.29 to 14.44		82,156,680		0.82%		-5.91% to -7.85%
2010		0.75% to 2.80%		4,869,955		8.81 to 15.67		81,031,765		0.36%		18.26% to 15.82%
2009		0.75% to 2.75%		5,512,532		7.45 to 13.56		78,214,047		0.23%		46.47% to 43.51%
2008		0.75% to 2.80%		5,594,487		5.08 to 9.43		54,788,140		0.00%		-54.75% to -55.69%
2007		0.80% to 2.80%		5,413,172		13.59 to 21.28		118,510,583		0.13%		44.47% to 41.54%
VIP Fund - Equity-Income Portfolio - Service Class 2 (FEI2)
2011		0.40% to 3.30%		10,951,320		8.82 to 11.64		160,429,469		2.42%		0.25% to -2.66%
2010		0.75% to 3.30%		9,964,580		8.55 to 11.96		147,773,910		1.75%		14.06% to 11.13%
2009		0.95% to 3.30%		8,973,964		6.91 to 10.76		117,787,793		2.15%		28.65% to 25.60%
2008		0.95% to 2.95%		9,142,932		5.37 to 8.75		93,902,730		2.22%		-43.36% to -44.50%
2007		0.95% to 2.95%		9,650,205		9.48 to 15.76		176,168,699		1.71%		-5.21% to -1.73%	****
VIP Fund - Freedom Fund 2010 Portfolio - Service Class (FF10S)
2011		0.80% to 1.40%		470,396		11.51 to 11.12		5,255,064		1.94%		-1.08% to -1.68%
2010		0.80% to 1.40%		477,386		11.64 to 11.31		5,420,767		2.01%		11.84% to 11.16%
2009		0.80% to 1.40%		508,093		10.41 to 10.18		5,184,551		3.74%		23.16% to 22.41%
2008		0.80% to 1.40%		534,668		8.45 to 8.31		4,453,816		2.86%		-25.68% to -26.13%
2007		0.80% to 1.40%		450,333		11.37 to 11.25		5,074,439		3.44%		7.77% to 7.12%
VIP Fund - Freedom Fund 2010 Portfolio - Service Class 2 (FF10S2)
2011		1.10% to 2.60%		9,073,579		12.39 to 11.19		109,039,045		2.09%		-1.52% to -3.01%
2010		1.10% to 2.60%		7,420,624		12.58 to 11.53		90,382,178		2.38%		11.31% to 9.62%
2009		1.10% to 2.70%		5,580,362		11.30 to 10.47		61,055,820		4.30%		22.59% to 20.61%
2008		1.10% to 2.70%		4,645,289		9.22 to 8.68		41,630,317		2.85%		-25.99% to -27.19%
2007		1.10% to 2.70%		3,748,220		12.45 to 11.92		45,656,435		2.62%		7.22% to 5.48%
VIP Fund - Freedom Fund 2020 Portfolio - Service Class (FF20S)
2011		0.80% to 1.40%		901,996		10.97 to 10.60		9,615,738		2.06%		-1.91% to -2.51%
2010		0.80% to 1.40%		879,170		11.19 to 10.87		9,603,062		2.31%		13.60% to 12.92%
2009		0.80% to 1.40%		762,019		9.85 to 9.63		7,363,537		3.51%		27.75% to 26.97%
2008		0.80% to 1.40%		715,854		7.71 to 7.58		5,443,001		2.80%		-33.25% to -33.65%
2007		0.80% to 1.40%		521,510		11.55 to 11.43		5,970,926		3.23%		9.28% to 8.62%
VIP Fund - Freedom Fund 2020 Portfolio - Service Class 2 (FF20S2)
2011		1.10% to 2.95%		28,669,879		12.36 to 10.90		344,893,609		2.37%		-2.33% to -4.15%
2010		1.10% to 2.85%		18,343,828		12.65 to 11.44		226,550,215		2.67%		13.07% to 11.07%
2009		1.10% to 2.85%		10,446,737		11.19 to 10.30		114,146,511		3.98%		27.13% to 24.88%
2008		1.10% to 2.90%		6,972,856		8.80 to 8.23		60,026,433		2.68%		-33.54% to -34.75%
2007		1.10% to 2.90%		5,452,403		13.25 to 12.61		70,902,100		2.44%		8.75% to 6.76%
VIP Fund - Freedom Fund 2030 Portfolio - Service Class (FF30S)
2011		0.80% to 1.40%		688,670		10.39 to 10.04		6,953,362		2.03%		-3.47% to -4.06%
2010		0.80% to 1.40%		640,936		10.76 to 10.46		6,737,911		2.10%		15.07% to 14.38%
2009		0.80% to 1.40%		589,970		9.35 to 9.15		5,416,444		2.40%		30.35% to 29.56%
2008		0.80% to 1.40%		481,061		7.17 to 7.06		3,404,900		2.59%		-38.57% to -38.94%
2007		0.80% to 1.40%		307,780		11.68 to 11.56		3,564,229		3.24%		10.31% to 9.64%
VIP Fund - Freedom Fund 2030 Portfolio - Service Class 2 (FF30S2)
2011		1.10% to 2.55%		2,066,391		12.04 to 10.91		23,919,498		1.88%		-3.90% to -5.30%
2010		1.10% to 2.55%		1,895,831		12.53 to 11.53		22,968,325		1.91%		14.62% to 12.94%
2009		1.10% to 2.70%		1,783,182		10.93 to 10.13		18,869,954		2.17%		29.74% to 27.64%
2008		1.10% to 2.70%		1,631,753		8.43 to 7.94		13,382,199		2.19%		-38.85% to -39.84%
2007		1.10% to 2.70%		1,398,391		13.78 to 13.20		18,889,628		2.17%		9.85% to 8.07%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VIP Fund - Growth Opportunities Portfolio - Initial Class (FGOP)
2009		0.80% to 1.40%		1,657,626	$	9.27 to $ 8.59	$	14,371,980		0.47%		44.68% to 43.81%
2008		0.80% to 1.40%		1,893,306		6.40 to 5.97		11,404,425		0.37%		-55.38% to -55.65%
2007		0.80% to 1.40%		2,355,583		14.35 to 13.47		31,965,894		0.00%		22.19% to 21.45%
VIP Fund - Growth Portfolio - Initial Class (FGP)
2011		0.80% to 1.40%		6,680,291		19.61 to 24.84		327,905,995		0.35%		-0.60% to -1.20%
2010		0.80% to 1.40%		7,616,804		19.73 to 25.14		376,504,339		0.27%		23.18% to 22.44%
2009		0.80% to 1.40%		8,786,028		16.02 to 20.53		353,773,768		0.43%		27.26% to 26.49%
2008		0.80% to 1.40%		10,315,116		12.59 to 16.23		326,253,847		0.76%		-47.59% to -47.91%
2007		0.80% to 1.40%		12,473,199		24.02 to 31.16		745,751,636		0.84%		25.94% to 25.18%
VIP Fund - Growth Portfolio - Service Class 2 (FG2)
2011		0.40% to 2.95%		6,092,294		8.55 to 11.89		89,150,856		0.15%		-0.43% to -2.98%
2010		0.75% to 2.95%		4,203,897		8.44 to 12.26		62,832,419		0.03%		22.93% to 20.21%
2009		0.85% to 3.00%		3,652,787		6.85 to 10.16		44,823,650		0.21%		26.88% to 24.13%
2008		0.85% to 3.00%		3,750,535		5.40 to 8.19		36,441,386		0.53%		-47.76% to -48.89%
2007		0.95% to 3.00%		4,763,730		11.90 to 16.02		89,331,698		0.32%		19.02% to 22.84%	****
VIP Fund - High Income Portfolio - Initial Class R (FHIPR)
2011		0.80% to 1.40%		1,853,305		12.19 to 11.85		22,040,608		6.79%		3.22% to 2.59%
2010		0.80% to 1.40%		2,166,797		11.81 to 11.55		25,100,312		8.12%		12.97% to 12.28%
2009		0.80% to 1.40%		2,439,833		10.46 to 10.29		25,152,368		8.56%		42.67% to 41.80%
2008		0.80% to 1.40%		1,960,090		7.33 to 7.26		14,240,462		8.85%		-25.48% to -25.94%
2007		0.80% to 1.40%		1,244,598		9.84 to 9.80		12,199,909		16.76%		-1.62% to -2.02%	****
VIP Fund - Investment Grade Bond Portfolio - Service Class (FIGBS)
2011		0.80% to 1.40%		2,042,324		14.24 to 13.51		27,775,950		3.19%		6.35% to 5.71%
2010		0.80% to 1.40%		2,303,690		13.39 to 12.78		29,608,881		3.32%		6.82% to 6.17%
2009		0.80% to 1.40%		2,383,390		12.53 to 12.04		28,829,928		8.21%		14.75% to 14.05%
2008		0.80% to 1.40%		1,760,865		10.92 to 10.55		18,661,455		4.21%		-4.12% to -4.70%
2007		0.80% to 1.40%		1,827,483		11.39 to 11.07		20,308,029		3.93%		3.37% to 2.74%
VIP Fund - Investment Grade Bond Portfolio - Service Class 2 (FIGBP2)
2011		0.40% to 3.20%		29,688,055		12.52 to 11.37		394,645,282		2.82%		6.61% to 3.62%
2010		0.65% to 3.20%		33,793,486		11.81 to 10.97		424,705,116		2.81%		6.85% to 4.11%
2009		0.65% to 3.25%		43,332,353		11.06 to 10.50		513,869,040		8.32%		14.72% to 11.72%
2008		0.65% to 3.25%		38,795,425		9.64 to 9.40		405,358,697		3.91%		-4.09% to -6.60%
2007		0.95% to 3.25%		39,988,032		10.15 to 10.06		440,398,413		2.72%		1.47% to 0.68%	****
VIP Fund - Mid Cap Portfolio - Service Class (FMCS)
2011		0.80% to 1.40%		2,401,588		10.68 to 10.32		24,904,322		0.13%		-11.43% to -11.96%
2010		0.80% to 1.40%		2,988,963		12.06 to 11.72		35,170,703		0.31%		27.67% to 26.90%
2009		0.80% to 1.40%		2,397,217		9.44 to 9.23		22,207,442		0.64%		38.89% to 38.06%
2008		0.80% to 1.40%		2,030,889		6.80 to 6.69		13,616,500		0.35%		-39.99% to -40.36%
2007		0.80% to 1.40%		1,880,661		11.33 to 11.22		21,120,448		0.77%		14.56% to 13.86%
VIP Fund - Mid Cap Portfolio - Service Class 2 (FMC2)
2011		0.40% to 3.30%		10,141,828		9.81 to 19.41		233,130,775		0.02%		-11.21% to -13.79%
2010		0.65% to 3.30%		10,137,469		10.99 to 22.51		264,905,928		0.13%		27.74% to 24.33%
2009		0.75% to 3.30%		9,082,067		8.59 to 18.10		187,933,011		0.47%		38.70% to 35.14%
2008		0.75% to 3.10%		8,779,121		6.19 to 13.55		132,721,800		0.24%		-40.06% to -41.48%
2007		0.95% to 3.10%		8,968,155		10.66 to 23.16		228,696,376		0.50%		6.62% to 11.74%	****
VIP Fund - Overseas Portfolio - Initial Class (FOP)
2011		0.80% to 1.40%		2,365,334		17.04 to 16.80		49,616,178		1.31%		-17.83% to -18.32%
2010		0.80% to 1.40%		2,742,146		20.74 to 20.57		70,349,684		1.37%		12.21% to 11.53%
2009		0.80% to 1.40%		3,184,055		18.48 to 18.45		73,086,949		2.10%		25.52% to 24.76%
2008		0.80% to 1.40%		3,203,770		14.72 to 14.79		68,743,113		2.41%		-44.26% to -44.59%
2007		0.80% to 1.40%		3,885,215		26.41 to 26.69		150,451,052		3.32%		16.37% to 15.66%
VIP Fund - Overseas Portfolio - Initial Class R (FOPR)
2011		0.80% to 1.40%		1,866,140		12.92 to 12.19		22,938,366		1.29%		-17.81% to -18.30%
2010		0.80% to 1.40%		2,228,091		15.72 to 14.92		33,493,024		1.38%		12.17% to 11.49%
2009		0.80% to 1.40%		2,611,534		14.02 to 13.38		35,178,482		2.07%		25.59% to 24.83%
2008		0.80% to 1.40%		3,742,007		11.16 to 10.72		34,538,550		2.39%		-44.26% to -44.60%
2007		0.80% to 1.40%		4,559,645		20.03 to 19.35		75,531,894		3.35%		16.41% to 15.70%
VIP Fund - Overseas Portfolio - Service Class 2 (FO2)
2011		1.10% to 2.25%		149,602		16.63 to 14.99		2,423,876		1.01%		-18.25% to -19.20%
2010		1.10% to 2.30%		198,160		20.35 to 18.48		3,912,132		1.16%		11.59% to 10.24%
2009		1.10% to 2.30%		224,881		18.23 to 16.77		3,903,354		1.77%		24.83% to 23.32%
2008		1.10% to 2.30%		286,835		14.61 to 13.60		4,029,619		2.20%		-44.58% to -45.25%
2007		1.10% to 2.30%		341,789		26.35 to 24.83		8,701,501		2.94%		15.76% to 14.35%
VIP Fund - Overseas Portfolio - Service Class 2 R (FO2R)
2011		0.40% to 2.95%		4,998,098		6.70 to 9.56		53,042,961		1.30%		-17.72% to -19.82%
2010		0.65% to 2.95%		4,618,811		8.08 to 11.92		60,187,730		1.31%		12.09% to 9.50%
2009		0.75% to 2.95%		4,511,884		7.19 to 10.88		53,010,704		2.15%		25.25% to 22.48%
2008		0.95% to 2.85%		3,739,265		5.90 to 8.93		35,540,446		2.29%		-44.48% to -45.55%
2007		0.95% to 2.80%		4,158,503		10.63 to 16.43		71,506,434		3.02%		6.30% to 13.77%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VIP Fund - Value Strategies Portfolio - Service Class (FVSS)
2011		0.80% to 1.40%		432,099	$	13.93 to $ 13.14	$	5,721,382		0.81%		-9.58% to -10.12%
2010		0.80% to 1.40%		540,940		15.41 to 14.62		7,964,920		0.42%		25.44% to 24.69%
2009		0.80% to 1.40%		592,992		12.28 to 11.72		6,997,937		0.52%		56.14% to 55.19%
2008		0.80% to 1.40%		634,932		7.87 to 7.55		4,824,772		0.60%		-51.57% to -51.86%
2007		0.80% to 1.40%		841,048		16.24 to 15.69		13,262,544		0.93%		4.75% to 4.11%
Franklin Income Securities Fund - Class 2 (FTVIS2)
2011		0.75% to 2.95%		11,167,150		10.86 to 10.81		131,070,725		5.75%		1.62% to -0.63%
2010		0.80% to 2.95%		10,974,594		12.05 to 10.88		127,750,790		6.59%		11.77% to 9.35%
2009		0.80% to 2.95%		10,706,434		10.78 to 9.95		112,298,334		7.94%		34.51% to 31.60%
2008		0.80% to 2.95%		10,666,736		8.01 to 7.56		83,813,696		5.45%		-30.22% to -31.73%
2007		0.80% to 2.95%		10,613,089		11.48 to 11.07		120,358,043		3.75%		2.92% to 0.68%
Franklin Rising Dividends Securities Fund - Class 2 (FTVRD2)
2011		0.95% to 2.80%		3,637,623		14.55 to 13.75		60,305,085		1.53%		4.99% to 3.04%
2010		0.95% to 2.95%		4,554,255		13.86 to 13.19		72,133,916		1.63%		19.50% to 17.09%
2009		0.95% to 3.00%		5,182,224		11.60 to 11.22		68,954,337		1.46%		16.23% to 13.82%
2008		0.95% to 3.00%		6,005,955		9.98 to 9.86		69,210,732		1.80%		-27.79% to -29.29%
2007		0.95% to 3.00%		7,191,142		13.82 to 13.94		115,583,625		2.42%		-3.62% to -5.62%
Franklin Small Cap Value Securities Fund - Class 2 (FTVSV2)
2011		0.40% to 3.20%		7,354,175		11.20 to 16.51		149,929,914		0.66%		-4.14% to -6.83%
2010		0.65% to 3.20%		7,692,944		11.28 to 17.72		165,721,242		0.83%		27.39% to 24.12%
2009		0.65% to 3.25%		10,676,595		8.85 to 14.23		182,350,127		0.77%		28.32% to 24.96%
2008		0.75% to 3.05%		3,847,456		6.89 to 11.52		51,984,101		1.08%		-33.52% to -35.06%
2007		0.80% to 3.05%		3,336,527		9.87 to 17.74		68,664,008		0.72%		-3.16% to -5.37%
Templeton Developing Markets Securities Fund - Class 3 (FTVDM3)
2011		0.80% to 2.65%		1,718,984		10.69 to 14.27		26,345,988		0.99%		-16.53% to -18.09%
2010		0.80% to 2.80%		1,928,435		12.81 to 17.26		35,662,153		1.60%		16.57% to 14.23%
2009		0.80% to 2.80%		2,307,480		10.99 to 15.11		36,881,360		4.14%		71.25% to 67.80%
2008		0.80% to 2.80%		2,181,313		6.42 to 9.01		20,523,237		2.72%		-53.05% to -54.00%
2007		0.80% to 2.80%		2,877,413		13.67 to 19.58		57,939,683		1.81%		27.66% to 25.08%
Templeton Foreign Securities Fund - Class 2 (TIF2)
2011		0.95% to 2.25%		196,259		15.28 to 16.52		3,471,745		1.67%		-11.48% to -12.64%
2010		0.95% to 2.25%		264,742		17.26 to 18.91		5,310,679		1.89%		7.38% to 5.97%
2009		0.95% to 2.25%		300,587		16.08 to 17.84		5,623,798		3.46%		35.74% to 33.96%
2008		0.95% to 2.25%		358,613		11.85 to 13.32		4,967,042		2.39%		-40.95% to -41.72%
2007		0.95% to 2.25%		462,809		20.06 to 22.86		10,928,425		1.98%		14.35% to 12.85%
Templeton Foreign Securities Fund - Class 3 (TIF3)
2011		0.80% to 3.30%		5,613,198		9.57 to 10.99		70,423,411		1.69%		-11.39% to -13.62%
2010		0.80% to 3.30%		6,154,147		10.80 to 12.73		87,837,444		1.66%		7.54% to 4.83%
2009		0.80% to 3.30%		6,859,765		10.04 to 12.14		91,812,073		5.47%		36.10% to 32.67%
2008		0.65% to 3.25%		25,106,259		6.17 to 9.17		247,362,383		2.54%		-40.78% to -42.33%
2007		0.80% to 3.25%		16,511,364		12.48 to 15.91		278,332,427		1.98%		14.52% to 11.67%
Templeton Global Bond Securities Fund - Class 3 (FTVGI3)
2011		0.65% to 2.65%		6,648,136		13.89 to 14.80		106,571,620		5.61%		-1.47% to -3.45%
2010		0.65% to 2.75%		6,305,385		14.10 to 15.24		103,381,528		1.36%		13.64% to 11.24%
2009		0.80% to 2.75%		5,360,877		14.32 to 13.70		77,988,157		14.04%		17.74% to 15.42%
2008		0.80% to 2.80%		5,797,396		12.17 to 11.85		72,143,518		3.87%		5.36% to 3.23%
2007		0.80% to 2.80%		4,159,217		11.55 to 11.48		49,473,961		2.64%		10.14% to 7.91%
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
2011		1.05% to 2.65%		2,438,014		9.05 to 8.53		21,662,279		0.02%		-2.57% to -4.15%
2010		0.85% to 2.65%		1,840,165		9.34 to 8.90		16,874,811		2.24%		9.32% to 7.33%
2009		0.80% to 2.65%		1,391,741		8.55 to 8.29		11,759,706		4.02%		29.21% to 26.80%
2008		0.80% to 2.65%		456,888		6.62 to 6.54		3,010,257		3.50%		-33.79% to -34.62%	****
Advisers Management Trust - Short Duration Bond Portfolio - I Class Shares (AMTB)
2011		0.40% to 3.05%		15,352,684		10.16 to 8.93		171,320,708		3.62%		-0.11% to -2.76%
2010		0.40% to 3.05%		18,038,619		10.18 to 9.18		200,415,989		4.85%		4.86% to 2.07%
2009		0.40% to 3.25%		24,900,539		9.70 to 8.87		262,364,479		7.00%		12.87% to 9.64%
2008		0.65% to 3.25%		38,156,662		8.59 to 8.09		355,647,246		4.55%		-13.99% to -16.24%
2007		0.80% to 3.25%		38,220,042		15.25 to 9.66		424,912,124		3.23%		3.93% to 1.35%
Growth Portfolio - I Class Shares (AMTG)
2011		1.30%		5		54.36		272		0.00%		-1.51%
2010		1.30%		153		55.19		8,499		0.00%		29.63%
2009		1.30%		12		42.58		511		0.00%		28.66%
2008		0.80% to 1.40%		2,411,370		12.76 to 14.52		67,084,772		0.00%		-44.13% to -44.47%
2007		0.80% to 1.40%		2,896,657		22.83 to 26.15		143,154,846		0.00%		21.71% to 20.97%
Guardian Portfolio - I Class Shares (AMGP)
2008		0.80% to 1.40%		928,163		9.15 to 8.57		8,023,491		0.53%		-37.75% to -38.13%
2007		0.80% to 1.40%		1,105,261		14.69 to 13.86		15,420,332		0.26%		6.52% to 5.88%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
International Portfolio - S Class Shares (AMINS)
2008		0.80% to 3.25%		1,025,292		$ 5.65 to $ 7.10		$7,732,508		0.00%		-46.87% to -48.18%
2007		0.80% to 3.25%		20,563,376		10.64 to 13.71		293,656,493		2.14%		2.38% to -0.16%
Mid-Cap Growth Portfolio - S Class Shares (AMMCGS)
2008		0.95% to 2.45%		400,219		10.54 to 11.44		4,818,061		0.00%		-44.05% to -44.90%
2007		0.95% to 2.80%		507,184		18.83 to 20.39		10,958,939		0.00%		21.03% to 18.76%
Partners Portfolio - I Class Shares (AMTP)
2010		1.30%		999		31.34		31,308		0.30%		14.16%
2008		0.80% to 1.40%		4,031,046		14.91 to 17.56		71,403,179		0.49%		-52.77% to -53.06%
2007		0.80% to 1.40%		4,821,251		31.57 to 37.41		181,803,724		0.61%		8.46% to 7.80%
Regency Portfolio - S Class Shares (AMRS)
2008		0.80% to 2.95%		1,216,019		5.60 to 6.46		8,275,433		0.93%		-46.38% to -47.55%
2007		0.80% to 2.95%		1,309,013		10.44 to 12.31		16,737,536		0.38%		2.22%
Small-Cap Growth Portfolio - S Class Shares (AMFAS)
2011		0.80% to 2.80%		335,319		8.29 to 10.56		4,222,440		0.00%		-1.85% to -3.83%
2010		0.80% to 2.80%		480,243		8.45 to 10.98		6,223,316		0.00%		18.65% to 16.27%
2009		0.80% to 2.80%		371,443		7.12 to 9.44		4,086,114		0.00%		21.77% to 19.32%
2008		0.80% to 2.80%		406,370		5.85 to 7.91		3,706,928		0.00%		-39.96% to -41.17%
2007		0.80% to 2.80%		392,938		9.74 to 13.45		6,032,559		0.00%		-0.29% to -2.32%
Socially Responsive Portfolio - I Class Shares (AMSRS)
2011		0.80% to 2.65%		1,804,517		13.26 to 13.76		27,464,680		0.32%		-3.85% to -5.64%
2010		0.80% to 2.65%		2,033,231		13.79 to 14.59		32,344,561		0.04%		21.87% to 19.60%
2009		0.80% to 2.95%		2,058,008		11.32 to 11.95		27,018,092		2.16%		30.38% to 27.55%
2008		0.80% to 3.05%		2,392,040		8.68 to 9.31		24,246,445		0.27%		-39.93% to -41.29%
2007		0.80% to 3.25%		29,683,131		14.45 to 15.71		500,470,234		0.10%		6.75% to 4.10%
Balanced Fund/VA - Non-Service Shares (OVMS)
2011		0.80% to 1.40%		1,737,854		18.42 to 19.09		40,852,941		2.36%		-0.08% to -0.69%
2010		0.80% to 1.40%		2,027,729		18.44 to 19.22		48,012,221		1.44%		12.01% to 11.33%
2009		0.80% to 1.40%		2,404,729		16.46 to 17.26		50,938,065		0.00%		20.92% to 20.19%
2008		0.80% to 1.40%		2,972,160		13.61 to 14.36		52,339,138		2.98%		-43.92% to -44.26%
2007		0.80% to 1.40%		3,793,326		24.27 to 25.77		119,039,885		2.68%		2.95% to 2.33%
Capital Appreciation Fund/VA - Service Class (OVCAFS)
2009		0.95% to 2.95%		3,035,663		11.08 to 10.93		40,147,457		0.01%		42.78% to 39.90%
2008		0.95% to 2.95%		3,576,621		7.76 to 7.81		33,310,024		0.00%		-46.18% to -47.27%
2007		0.95% to 2.95%		3,981,882		14.42 to 14.82		69,363,812		0.01%		12.77% to 10.48%
Capital Appreciation Fund/VA - Non-Service Shares (OVGR)
2009		0.80% to 1.40%		3,323,768		15.19 to 14.08		47,274,803		0.33%		43.36% to 42.50%
2008		0.80% to 1.40%		3,977,449		10.59 to 9.88		39,665,920		0.15%		-45.95% to -46.28%
2007		0.80% to 1.40%		4,805,480		19.60 to 18.39		89,129,237		0.24%		13.23% to 12.54%
Core Bond Fund/VA - Non-Service Shares (OVB)
2011		0.80% to 1.40%		2,055,734		13.91 to 13.78		36,087,270		6.02%		7.40% to 6.76%
2010		0.80% to 1.40%		2,443,496		12.95 to 12.91		40,204,609		1.86%		10.52% to 9.86%
2009		0.80% to 1.40%		2,839,959		11.72 to 11.75		42,563,966		0.00%		8.74% to 8.08%
2008		0.80% to 1.40%		3,473,316		10.78 to 10.87		48,106,805		4.82%		-39.54% to -39.90%
2007		0.80% to 1.40%		4,466,808		17.82 to 18.09		102,125,225		5.26%		3.55% to 2.92%
Global Securities Fund/VA - Class 3 (OVGS3)
2011		0.80% to 1.40%		2,572,768		20.30 to 19.26		49,919,305		1.30%		-9.00% to -9.55%
2010		0.80% to 1.40%		3,037,983		22.30 to 21.29		65,110,849		1.47%		15.05% to 14.35%
2009		0.80% to 1.40%		3,525,444		19.39 to 18.62		66,015,905		2.26%		38.58% to 37.74%
2008		0.80% to 1.40%		4,134,462		13.99 to 13.52		56,156,335		1.57%		-40.67% to -41.03%
2007		0.80% to 1.40%		4,898,499		23.58 to 22.92		112,720,550		1.39%		5.48% to 4.84%
Global Securities Fund/VA - Class 4 (OVGS4)
2011		0.75% to 2.55%		4,665,467		8.66 to 11.94		60,579,285		1.03%		-9.18% to -10.82%
2010		0.75% to 2.70%		4,965,773		9.54 to 13.25		71,526,134		1.23%		14.80% to 12.55%
2009		0.75% to 2.70%		5,304,073		8.31 to 11.77		67,081,618		1.89%		38.33% to 35.62%
2008		0.95% to 2.70%		5,863,169		9.43 to 8.68		53,981,607		1.24%		-40.91% to -41.96%
2007		0.95% to 2.70%		6,661,852		15.96 to 14.96		104,330,390		1.12%		5.05% to 3.18%
Global Securities Fund/VA - Non-Service Shares (OVGS)
2011		0.80% to 1.40%		2,816,110		36.09 to 34.02		102,224,646		1.30%		-9.02% to -9.57%
2010		0.80% to 1.40%		3,271,262		39.67 to 37.62		131,293,425		1.48%		15.04% to 14.34%
2009		0.80% to 1.40%		3,835,051		34.48 to 32.90		134,559,408		2.32%		38.65% to 37.82%
2008		0.80% to 1.40%		4,605,983		24.87 to 23.88		117,211,377		1.61%		-40.67% to -41.03%
2007		0.80% to 1.40%		5,756,123		41.92 to 40.49		248,042,653		1.41%		5.46% to 4.82%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Global Securities Fund/VA - Service Class (OVGSS)
2011		0.95% to 2.25%		368,092		$ 16.26 to $ 18.62		$7,361,088		1.10%		-9.39% to -10.58%
2010		0.95% to 2.30%		466,144		17.95 to 20.74		10,268,381		1.32%		14.60% to 13.04%
2009		0.95% to 2.30%		584,534		15.66 to 18.35		11,225,732		2.01%		38.03% to 36.15%
2008		0.95% to 2.30%		675,950		11.35 to 13.48		9,467,392		1.32%		-40.90% to -41.71%
2007		0.95% to 2.30%		862,593		19.20 to 23.12		20,585,407		1.22%		5.07% to 3.63%
High Income Fund/VA - Class 3 (OVHI3)
2011		0.80% to 1.40%		175,763		2.80 to 2.72		482,217		9.26%		-2.66% to -3.25%
2010		0.80% to 1.40%		196,791		2.88 to 2.81		557,028		4.97%		13.77% to 13.08%
2009		0.80% to 1.40%		153,077		2.53 to 2.49		382,251		0.00%		25.74% to 24.98%
2008		0.80% to 1.40%		126,679		2.01 to 1.99		252,740		4.88%		-79.06% to -79.19%
2007		0.80% to 1.40%		48,923		9.61 to 9.57		468,403		0.00%		-3.91% to -4.30%	****
High Income Fund/VA - Class 4 (OVHI4)
2011		0.95% to 2.75%		2,632,631		2.79 to 2.56		7,156,844		8.99%		-2.99% to -4.75%
2010		0.95% to 2.75%		2,685,043		2.88 to 2.69		7,562,792		5.30%		13.18% to 11.13%
2009		0.95% to 2.80%		2,841,679		2.54 to 2.42		7,101,139		0.00%		25.22% to 22.88%
2008		0.95% to 2.80%		2,070,239		2.03 to 1.97		4,158,939		5.83%		-78.83% to -79.23%
2007		0.95% to 2.75%		991,751		9.59 to 9.47		9,472,520		0.00%		-4.12% to -5.29%	****
High Income Fund/VA - Non-Service Shares (OVHI)
2011		0.80% to 1.40%		7,881		3.03 to 2.93		23,296		12.77%		-3.12% to -3.70%
2010		0.80% to 1.40%		16,199		3.13 to 3.04		49,546		6.11%		13.90% to 13.21%
2009		0.80% to 1.40%		16,502		2.75 to 2.69		44,537		0.00%		24.31% to 23.56%
2008		0.80% to 1.40%		23,524		2.21 to 2.18		51,336		8.75%		-78.84% to -78.97%
2007		0.80% to 1.40%		49,246		10.46 to 10.35		510,531		7.99%		-0.91% to -1.51%
High Income Fund/VA - Service Class (OVHIS)
2011		0.95% to 2.35%		642,234		3.60		2,495,365		9.54%		-3.48% to -4.84%
2010		0.95% to 2.70%		856,240		3.73 to 3.68		3,456,019		6.12%		13.35% to 11.35%
2009		0.95% to 2.70%		1,019,129		3.29 to 3.31		3,646,990		0.00%		24.75% to 22.55%
2008		0.95% to 2.70%		1,274,342		2.64 to 2.70		3,677,309		7.68%		-78.78% to -79.15%
2007		0.95% to 2.70%		1,877,575		12.44 to 12.94		25,692,805		8.06%		-1.42% to -3.17%
Main Street Fund(R)/VA - Non-Service Shares (OVGI)
2011		0.80% to 1.40%		1,223,602		9.73 to 9.07		11,201,679		0.86%		-0.81% to -1.41%
2010		0.80% to 1.40%		1,392,924		9.81 to 9.20		12,926,440		1.15%		15.18% to 14.48%
2009		0.80% to 1.40%		1,710,096		8.52 to 8.03		13,848,126		1.95%		27.26% to 26.49%
2008		0.80% to 1.40%		2,022,607		6.69 to 6.35		12,938,096		1.56%		-38.96% to -39.33%
2007		0.80% to 1.40%		2,487,109		10.97 to 10.47		26,194,088		1.03%		3.58% to 2.95%
Main Street Fund(R)/VA - Service Class (OVGIS)
2011		0.40% to 3.20%		15,287,929		9.33 to 11.53		216,328,023		0.59%		-0.71% to -3.50%
2010		0.65% to 3.20%		17,274,630		9.16 to 11.94		248,917,497		0.96%		15.07% to 12.12%
2009		0.65% to 3.25%		24,250,057		7.96 to 10.62		307,298,432		1.47%		27.16% to 23.83%
2008		0.65% to 3.25%		27,005,578		6.26 to 8.57		272,771,613		1.22%		-39.02% to -40.62%
2007		0.95% to 3.25%		24,014,369		14.72 to 14.44		402,804,694		0.63%		3.16% to 0.75%
Main Street Small- & Mid-Cap Fund(R)/VA - Non-Service Shares (OVSC)
2011		0.80% to 1.40%		420,119		9.81 to 9.48		4,000,819		0.57%		-2.99% to -3.58%
2010		0.80% to 1.40%		411,283		10.11 to 9.83		4,059,854		0.72%		22.42% to 21.68%
2009		0.80% to 1.40%		552,543		8.26 to 8.08		4,477,598		0.88%		36.10% to 35.27%
2008		0.80% to 1.40%		440,857		6.07 to 5.97		2,638,595		0.51%		-38.33% to -38.70%
2007		0.80% to 1.40%		418,752		9.84 to 9.74		4,084,325		0.29%		-2.00% to -2.60%
Main Street Small- & Mid-Cap Fund(R)/VA - Service Shares (OVSCS)
2011		0.40% to 3.30%		2,533,954		10.68 to 15.60		49,994,641		0.37%		-2.77% to -5.60%
2010		0.65% to 3.30%		2,225,257		10.43 to 16.52		46,157,728		0.40%		22.26% to 19.00%
2009		0.95% to 3.30%		2,081,552		13.34 to 13.88		35,691,628		1.16%		35.58% to 32.36%
2008		0.65% to 3.25%		8,337,343		6.27 to 10.52		105,311,346		0.29%		-38.41% to -40.02%
2007		0.95% to 3.25%		6,050,092		16.03 to 17.54		125,648,459		0.13%		-2.33% to -4.61%
Mid-Cap Growth Fund/VA - Non-Service Shares (OVAG)
2011		0.80% to 1.40%		1,900,617		5.69 to 5.30		10,183,980		0.00%		0.29% to -0.32%
2010		0.80% to 1.40%		1,833,474		5.68 to 5.32		9,846,584		0.00%		26.45% to 25.68%
2009		0.80% to 1.40%		1,983,089		4.49 to 4.23		8,468,612		0.00%		31.55% to 30.75%
2008		0.80% to 1.40%		2,176,324		3.41 to 3.24		7,101,334		0.00%		-49.48% to -49.78%
2007		0.80% to 1.40%		2,576,050		6.75 to 6.45		16,720,309		0.00%		5.48% to 4.84%
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
2011		0.75% to 2.55%		1,837,753		12.75 to 12.14		22,970,486		1.91%		7.61% to 5.66%
2010		0.80% to 2.55%		1,500,572		11.83 to 11.49		17,556,731		1.26%		8.50% to 6.58%
2009		0.75% to 2.45%		649,344		10.91 to 10.79		7,051,409		0.97%		9.11% to 7.86%	****
Low Duration Portfolio - Advisor Class (PMVLAD)
2011		0.40% to 3.20%		23,171,669		11.61 to 10.76		260,577,575		1.57%		0.60% to -2.22%
2010		0.40% to 3.20%		18,042,359		11.54 to 11.01		203,955,140		1.54%		4.77% to 1.82%
2009		0.65% to 3.25%		14,013,653		11.00 to 10.81		153,020,206		1.62%		9.98% to 8.05%	****
Total Return Portfolio - Advisor Class (PMVTRD)
2011		0.40% to 2.70%		6,540,321		10.06 to 9.91		65,327,248		1.60%		0.64% to -0.90%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Putnam VT Growth and Income Fund - IB Shares (PVGIB)
2011		1.05% to 2.35%		212,998		$ 11.40 to $ 11.18		$2,559,811		1.31%		-5.64% to -6.88%
2010		1.05% to 2.60%		275,411		12.08 to 11.77		3,507,688		1.63%		13.18% to 11.41%
2009		1.05% to 2.60%		329,454		10.67 to 10.56		3,719,305		2.72%		28.45% to 26.44%
2008		1.05% to 2.80%		387,088		8.31 to 8.26		3,423,016		2.18%		-39.34% to -40.42%
2007		1.05% to 2.80%		468,881		13.69 to 13.86		6,876,101		1.36%		-7.03% to -8.68%
Putnam VT International Equity Fund - IB Shares (PVTIGB)
2011		1.15% to 2.10%		28,337		13.34 to 12.27		366,694		3.58%		-17.89% to -18.68%
2010		1.15% to 2.40%		39,549		16.24 to 14.73		626,033		3.71%		8.76% to 7.39%
2009		1.15% to 2.40%		46,786		14.93 to 13.72		681,273		0.00%		23.20% to 21.64%
2008		1.15% to 2.40%		61,180		12.12 to 11.28		724,632		2.19%		-44.60% to -45.30%
2007		1.15% to 2.40%		71,037		21.88 to 20.62		1,525,012		2.96%		7.11% to 5.75%
Putnam VT Voyager Fund - IB Shares (PVTVB)
2011		0.95% to 2.45%		221,728		12.58 to 12.09		2,914,393		0.00%		-18.63% to -19.86%
2010		0.95% to 2.70%		248,463		15.46 to 14.80		3,997,037		1.31%		19.65% to 17.54%
2009		0.95% to 2.80%		213,154		12.92 to 12.50		2,875,568		0.65%		62.34% to 59.31%
2008		1.15% to 2.80%		142,184		8.63 to 7.85		1,187,340		0.00%		-37.76% to -38.80%
2007		1.15% to 2.80%		168,443		13.87 to 12.82		2,271,117		0.00%		4.30% to 2.55%
V.I. Basic Value Fund - Series II (AVBV2)
2008		0.80% to 2.95%		2,569,381		5.12 to 7.08		21,201,989		0.47%		-52.29% to -53.33%
2007		0.80% to 2.95%		2,902,901		10.74 to 15.16		50,651,888		0.35%		0.55% to -1.64%
V.I. Capital Appreciation Fund - Series II (AVCA2)
2011		0.80% to 2.95%		490,830		7.80 to 9.58		5,707,367		0.00%		-8.85% to -10.82%
2010		0.80% to 2.95%		579,187		8.56 to 10.74		7,427,438		0.51%		14.28% to 11.81%
2009		0.80% to 2.95%		687,506		7.49 to 9.60		7,749,730		0.27%		19.75% to 17.16%
2008		0.80% to 2.95%		804,764		6.25 to 8.20		7,651,910		0.00%		-43.09% to -44.32%
2007		0.80% to 2.95%		1,044,738		10.99 to 14.72		17,629,535		0.00%		10.83% to 8.42%
V.I. Capital Development Fund - Series II (AVCD2)
2011		0.80% to 2.95%		1,414,528		8.85 to 13.36		22,791,109		0.00%		-8.11% to -10.10%
2010		0.80% to 2.95%		1,298,000		9.63 to 14.87		23,011,080		0.00%		17.52% to 14.98%
2009		0.80% to 3.00%		1,278,768		8.19 to 12.88		19,440,268		0.00%		40.85% to 37.73%
2008		0.80% to 3.00%		1,176,724		5.82 to 9.35		12,813,434		0.00%		-47.55% to -48.72%
2007		0.80% to 3.00%		1,288,902		11.09 to 18.24		27,002,291		0.00%		9.66% to 7.21%
Diversified Stock Fund Class A Shares (VYDS)
2011		1.15% to 1.65%		27,442		12.82 to 12.29		348,002		0.64%		-7.90% to -8.36%
2010		1.15% to 1.95%		38,329		13.92 to 13.11		526,739		0.73%		11.05% to 10.16%
2009		1.15% to 2.10%		43,065		12.53 to 11.78		531,815		0.81%		25.60% to 24.39%
2008		1.15% to 2.10%		57,375		9.98 to 9.47		564,917		0.75%		-38.58% to -39.17%
2007		1.15% to 2.10%		66,078		16.25 to 15.57		1,063,078		0.66%		8.68% to 7.63%
Blue Chip Growth Portfolio - II (TRBCG2)
2009		0.80% to 2.95%		3,605,643		9.45 to 9.84		37,628,164		0.00%		40.66% to 37.61%
2008		0.65% to 3.25%		19,673,406		5.86 to 7.07		147,156,139		0.12%		-43.02% to -44.52%
2007		0.80% to 3.25%		10,055,319		11.81 to 12.74		133,588,581		0.14%		11.58% to 8.81%
Equity Income Portfolio - II (TREI2)
2009		0.80% to 3.30%		7,776,288		8.86 to 8.87		74,780,990		1.74%		24.25% to 21.12%
2008		0.80% to 2.95%		7,723,076		7.13 to 7.43		60,261,084		2.21%		-36.78% to -38.15%
2007		0.80% to 2.95%		6,128,523		11.28 to 12.01		76,349,143		1.66%		2.20% to -0.03%
Health Sciences Portfolio - II (TRHS2)
2011		0.75% to 2.80%		2,368,928		11.60 to 11.20		27,116,053		0.00%		9.56% to 7.30%
2010		0.80% to 2.45%		301,680		10.58 to 10.46		3,176,507		0.00%		5.80% to 4.63%	****
Limited-Term Bond Portfolio - II (TRLT2)
2009		1.30%		1		11.34		11		3.05%		5.96%
2008		0.80% to 2.90%		4,360,949		10.79 to 10.08		46,053,950		3.75%		0.50% to -1.63%
2007		0.80% to 2.90%		2,984,605		10.74 to 10.25		31,585,239		3.11%		4.38% to 2.16%
VIP Trust - Global Bond Fund: Class R1 (VWBFR)
2011		0.80% to 1.40%		399,375		15.18 to 14.49		5,818,090		8.13%		7.28% to 6.63%
2010		0.80% to 1.40%		437,415		14.15 to 13.59		5,970,833		3.67%		5.35% to 4.71%
2009		0.80% to 1.40%		509,578		13.43 to 12.98		6,638,304		3.92%		5.13% to 4.50%
2008		0.80% to 1.40%		642,414		12.77 to 12.42		8,003,418		8.12%		2.87% to 2.25%
2007		0.80% to 1.40%		731,903		12.42 to 12.15		8,910,518		5.57%		8.94% to 8.27%
VIP Trust - Global Bond Fund: Initial Class (VWBF)
2011		0.80% to 1.40%		445,923		21.03 to 21.65		11,388,013		8.06%		7.28% to 6.63%
2010		0.80% to 1.40%		511,066		19.60 to 20.30		12,265,103		3.66%		5.35% to 4.71%
2009		0.80% to 1.40%		581,103		18.61 to 19.39		13,329,078		3.83%		5.13% to 4.50%
2008		0.80% to 1.40%		703,225		17.70 to 18.55		15,375,868		9.07%		2.78% to 2.16%
2007		0.80% to 1.40%		889,847		17.22 to 18.16		19,097,162		6.47%		8.83% to 8.17%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
VIP Trust - Emerging Markets Fund: Class R1 (VWEMR)
2011		0.80% to 1.40%		551,256		$ 21.46 to $ 20.49		$11,367,873		1.24%		-26.35% to -26.79%
2010		0.80% to 1.40%		827,950		29.14 to 27.99		23,300,754		0.62%		25.85% to 25.09%
2009		0.80% to 1.40%		886,135		23.16 to 22.37		19,920,111		0.14%		111.69% to 110.41%
2008		0.80% to 1.40%		763,916		10.94 to 10.63		8,156,428		0.00%		-65.03% to -65.25%
2007		0.80% to 1.40%		1,152,258		31.28 to 30.60		35,362,793		0.40%		36.46% to 35.63%
VIP Trust - Emerging Markets Fund: Initial Class (VWEM)
2011		0.80% to 1.40%		797,445		20.09 to 18.34		14,792,818		1.09%		-26.33% to -26.78%
2010		0.80% to 1.40%		946,130		27.27 to 25.04		23,951,440		0.60%		25.83% to 25.07%
2009		0.80% to 1.40%		1,081,816		21.67 to 20.02		21,882,865		0.17%		111.47% to 110.20%
2008		0.80% to 1.40%		1,264,058		10.25 to 9.53		12,153,665		0.00%		-65.06% to -65.27%
2007		0.80% to 1.40%		1,599,935		29.33 to 27.43		44,248,455		0.46%		36.51% to 35.68%
VIP Trust - Global Hard Assets Fund: Class R1 (VWHAR)
2011		0.75% to 2.80%		3,469,671		9.84 to 9.50		54,489,679		1.02%		-17.02% to -18.74%
2010		0.75% to 2.80%		2,350,975		11.86 to 11.69		53,750,243		0.32%		18.57% to 16.94%	****
2009		0.80% to 1.40%		1,143,054		28.03 to 27.09		31,107,182		0.26%		56.36% to 55.41%
2008		0.80% to 1.40%		1,219,284		17.93 to 17.43		21,333,920		0.35%		-46.53% to -46.85%
2007		0.80% to 1.40%		1,400,348		33.53 to 32.79		46,055,901		0.11%		44.16% to 43.28%
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
2011		0.80% to 1.40%		552,304		41.36 to 38.86		25,073,059		1.21%		-17.12% to -17.62%
2010		0.80% to 1.40%		619,064		49.90 to 47.18		34,051,631		0.39%		28.20% to 27.43%
2009		0.80% to 1.40%		761,288		38.92 to 37.02		32,875,757		0.27%		56.27% to 55.33%
2008		0.80% to 1.40%		892,365		24.91 to 23.83		24,758,601		0.31%		-46.56% to -46.88%
2007		0.80% to 1.40%		1,118,247		46.61 to 44.87		58,352,118		0.12%		44.19% to 43.31%
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)
2011		0.65% to 2.80%		8,101,468		11.86 to 11.19		93,728,667		1.01%		-7.81% to -9.80%
2010		0.65% to 2.80%		6,143,715		12.86 to 12.40		77,797,454		1.03%		7.97% to 5.63%
2009		0.75% to 2.80%		2,978,019		11.91 to 11.74		35,256,090		0.04%		19.06% to 17.41%	****
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Conservative (WRPCP)
2011		0.40%		92,333		10.90		1,006,692		0.10%		0.35%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderate (WRPMP)
2011		0.40%		424,157		11.03		4,676,395		0.61%		-1.85%
2010		0.40%		2,491		11.23		27,982		0.00%		12.18%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Aggressive (WRPMAP)
2011		0.40%		1,230,558		11.06		13,606,615		0.72%		-3.40%
Ivy Fund Variable Insurance Portfolios, Inc. - Pathfinder Moderately Conservative (WRPMCP)
2011		0.40%		148,360		11.00		1,631,286		0.33%		-0.40%
Advantage Funds Variable Trust - VT Discovery Fund (SVDF)
2011		1.30%		74		41.42		3,065		0.00%		-0.88%
2008		0.80% to 1.40%		1,508,012		15.55 to 18.44		32,197,505		0.00%		-44.80% to -45.14%
2007		0.80% to 1.40%		1,793,964		28.18 to 33.62		69,679,934		0.00%		21.34% to 20.60%
Advantage VT Opportunity Fund - Class 2 (SVOF)
2010		1.30%		836		58.00		48,490		0.48%		22.15%
2008		0.80% to 1.40%		4,815,928		20.38 to 23.63		144,228,895		1.88%		-40.58% to -40.94%
2007		0.80% to 1.40%		5,757,665		34.29 to 40.01		291,024,130		0.62%		5.78% to 5.13%
Advantage VT Small Cap Growth Fund - Class 2 (WFVSCG)
2011		0.40% to 2.70%		2,029,850		15.80 to 14.11		30,844,147		0.00%		-4.98% to -7.17%
2010		0.80% to 2.70%		1,674,122		16.51 to 15.19		27,016,561		0.00%		25.76% to 23.35%
2009		0.75% to 2.50%		775,011		13.14 to 12.45		10,059,269		0.00%		31.36% to 48.83%	****
Advantage VT Small Cap Value Fund - Class 2 (WFVSMV)
2011		1.10%		951		8.73		8,299		0.67%		-8.28%
2010		1.10%		1,026		9.51		9,762		1.49%		15.96%
2009		1.10%		1,175		8.20		9,641		1.27%		58.42%
2008		1.10% to 1.25%		1,260		5.18 to 5.17		6,526		0.00%		-45.16% to -45.24%
2007		1.25%		39		9.43		368		0.00%		-5.65%	****
Advantage Funds Variable Trust - VT Total Return Bond Fund (WFVTRB)
2011		1.15% to 1.25%		21,348		13.84 to 13.74		293,570		2.67%		7.07% to 6.96%
2010		1.15% to 1.25%		21,348		12.93 to 12.85		274,433		3.38%		5.81% to 5.70%
2009		1.15% to 1.25%		21,348		12.22 to 12.15		259,604		3.69%		10.71% to 10.59%
2008		1.15%		2,116		11.04		23,352		4.80%		1.21%
2007		1.15%		2,116		10.90		23,072		4.56%		4.96%
Advantage Funds(R) - VT Omega Growth - Class 2 (WFVOG2)
2011		1.40% to 2.20%		4,361		11.74 to 11.60		51,038		0.00%		-6.86% to -7.62%
2010		1.40% to 2.20%		4,925		12.61 to 12.56		62,030		0.00%		26.08% to 25.61%	****
Advantage Funds Variable Trust - VT Large Company Growth Fund(obsolete) (WFVLCG)
2009		1.60% to 2.20%		11,201		9.46 to 9.17		103,735		0.38%		41.08% to 40.22%
2008		1.75% to 2.20%		11,776		6.66 to 6.54		77,336		0.27%		-40.06% to -40.34%
2007		1.75% to 2.20%		12,402		11.12 to 10.96		136,370		0.00%		5.72% to 5.23%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
Advantage Funds Variable Trust - VT Money Market Fund(obsolete) (WFVMM)
2009		1.15% to 1.60%		14,747		$ 10.83 to $ 10.58		$    156,783		0.24%		-1.04% to -1.49%
2008		1.15% to 1.40%		20,154		10.95 to 10.84		218,444		1.76%		1.10% to 0.84%
2007		1.15% to 1.40%		1,632		10.83 to 10.74		17,585		4.60%		3.47% to 3.20%
AllianceBernstein NVIT Global Fixed Income Fund - Class III(obsolete) (NVAGF3)
2010		0.80% to 2.15%		288,563		12.20 to 11.92		3,481,331		6.20%		7.37% to 5.91%
2009		0.80% to 2.40%		155,699		11.36 to 11.24		1,760,194		6.49%		13.58% to 12.35%	****
Balanced Portfolio - Class S Shares(obsolete) (ALBS)
2009		0.95% to 1.05%		18,711		11.82 to 11.74		220,306		2.91%		27.28% to 27.15%
2008		0.95% to 1.45%		18,716		9.29 to 9.04		173,104		0.00%		-32.55% to -32.89%
2007		0.95% to 1.45%		23,143		13.77 to 13.47		317,270		0.00%		13.39% to 12.82%
Clover Value Fund II - Service Shares(obsolete) (FALFS)
2009		0.95% to 2.40%		86,156		9.69 to 10.39		924,331		2.19%		13.42% to 11.76%
2008		0.95% to 2.75%		95,239		8.54		900,294		1.53%		-34.59% to -35.78%
2007		0.95% to 2.75%		123,768		13.06 to 13.30		1,796,271		1.29%		-10.72% to -12.36%
Credit Suisse Trust- International Equity Flex III Portfolio(obsolete) (CSIEF3)
2010		0.80% to 1.40%		196,205		11.25 to 11.18		2,195,392		0.10%		11.33% to 10.66%
2009		0.80% to 1.40%		161,230		10.10		1,628,659		0.00%		1.04% to 1.01%	****
Gartmore NVIT Global Utilities Fund - Class II(obsolete) (GVGU2)
2009		1.15% to 2.10%		18,909		19.01 to 17.79		350,603		3.61%		6.47% to 5.45%
2008		1.15% to 2.10%		23,118		17.85 to 16.87		404,326		2.63%		-33.94% to -34.57%
2007		0.95% to 2.10%		35,923		25.25 to 25.78		952,362		2.10%		18.91% to 17.53%
Gartmore NVIT Global Utilities Fund - Class III(obsolete) (GVGU)
2009		0.80% to 1.40%		217,412		16.85 to 16.08		3,517,625		3.67%		7.11% to 6.47%
2008		0.80% to 1.40%		340,376		15.73 to 15.10		5,166,421		2.86%		-33.44% to -33.84%
2007		0.80% to 1.40%		549,810		23.63 to 22.83		12,602,303		2.41%		19.42% to 18.70%
Gartmore NVIT Worldwide Leaders Fund - Class III (obsolete) (GEF3)
2010		0.80% to 1.40%		147,046		15.45 to 14.84		2,194,434		0.98%		10.47% to 9.80%
2009		0.80% to 1.40%		186,700		13.99 to 13.51		2,534,945		1.02%		24.00% to 23.25%
2008		0.80% to 1.40%		249,753		11.28 to 10.96		2,748,870		0.67%		-44.77% to -45.11%
2007		0.80% to 1.40%		376,901		20.42 to 19.97		7,550,213		0.49%		18.98% to 18.25%
Gartmore NVIT Worldwide Leaders Fund - Class VI (obsolete)(NVGWL6)
2010		1.10% to 2.75%		152,509		14.65 to 14.25		2,217,538		1.20%		10.02% to 8.18%
2009		1.10% to 2.50%		41,212		13.32 to 13.19		546,984		0.90%		33.18% to 31.92%	****
International Equity Flex I Portfolio (obsolete) (WIEP)
2008		0.80% to 1.40%		1,761,884		10.95 to 10.40		18,463,105		1.68%		-41.51% to -41.86%
2007		0.80% to 1.40%		2,123,568		18.72 to 17.89		38,252,943		1.05%		15.66% to 14.96%
International Equity Flex II Portfolio (obsolete) (WVCP)
2008		0.80% to 1.40%		184,626		8.13 to 7.56		1,407,276		1.73%		-47.18% to -47.50%
2007		0.80% to 1.40%		219,613		15.39 to 14.39		3,186,083		0.00%		-4.73% to -5.31%
J.P. Morgan NVIT Balanced Fund - Class I (obsolete) (BF)
2008		0.80% to 1.40%		243,504		9.34 to 9.08		2,218,666		2.75%		-26.14% to -26.59%
2007		0.80% to 1.40%		265,247		12.64 to 12.36		3,289,279		2.30%		3.78% to 3.15%
Janus Aspen Series - INTECH Risk-Managed Core Portfolio - Service Shares(obsolete) (JARLCS)
2008		0.80% to 2.60%		333,684		6.32 to 10.35		3,604,801		0.69%		-36.75% to -37.90%
2007		0.80% to 2.60%		321,741		10.00 to 16.66		5,521,409		0.50%		-0.03% to 3.36%	****
Large Cap Growth Fund II (obsolete) (VFLG2)
2008		1.15% to 2.35%		85,778		7.46 to 7.05		641,766		0.42%		-39.76% to -40.49%
2007		1.15% to 2.35%		90,603		12.39 to 11.85		1,130,341		0.38%		7.89% to 6.58%
Large Cap Value Fund II (obsolete) (VFLV2)
2008		1.15% to 2.40%		105,574		8.62 to 8.13		912,662		1.27%		-40.10% to -40.86%
2007		1.15% to 2.35%		111,241		14.39 to 13.77		1,613,063		1.08%		0.39% to -0.83%
Managed Allocation Fund - Aggressive Growth II (obsolete) (MBVAG2)
2008		1.15% to 1.85%		22,130		7.61 to 7.42		166,461		0.45%		-41.31% to -41.73%
2007		1.15% to 1.85%		33,329		12.97 to 12.73		429,215		1.38%		6.46% to 5.70%
Managed Allocation Fund - Conservative Growth II (obsolete) (MBVCG2)
2008		1.15% to 1.75%		22,506		8.94 to 8.74		198,924		2.65%		-20.62% to -21.10%
2007		1.15% to 1.75%		8,194		11.26 to 11.08		92,000		2.66%		3.94% to 3.30%
Market Opportunity Fund II - Service Shares(obsolete) (FVMOS)
2009		0.80% to 2.65%		746,449		9.98 to 9.32		7,250,437		1.52%		0.47% to -1.40%
2008		0.80% to 2.80%		918,459		9.94 to 9.41		8,951,034		1.07%		-1.66% to -3.64%
2007		0.80% to 2.35%		295,662		10.10 to 9.84		2,944,941		1.37%		-2.28% to -3.81%
NVIT Global Financial Services Fund - Class II(obsolete) (GVGF2)
2009		0.95% to 2.15%		47,904		12.37 to 13.90		694,038		0.89%		30.29% to 28.71%
2008		0.95% to 2.15%		55,720		9.49 to 10.80		623,060		1.65%		-46.85% to -47.50%
2007		0.95% to 2.15%		65,660		17.86 to 20.57		1,389,160		2.84%		-2.35% to -3.54%
NVIT Global Financial Services Fund - Class III(obsolete) (GVGFS)
2009		0.80% to 1.40%		176,927		13.10 to 12.50		2,227,534		1.11%		30.88% to 30.08%
2008		0.80% to 1.40%		212,769		10.01 to 9.61		2,057,788		2.14%		-46.64% to -46.97%
2007		0.80% to 1.40%		168,520		18.76 to 18.13		3,068,547		3.09%		-1.92% to -2.51%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-II NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*		Units		Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**		Total Return***		Inception Date****
NVIT Health Sciences Fund - Class II(obsolete) (GVGH2)
2009		0.95% to 2.40%		84,308		$ 12.16 to $ 14.17		$1,265,201		0.14%		17.71% to 15.99%
2008		0.95% to 2.40%		104,433		10.33 to 12.22		1,341,247		0.10%		-26.11% to -27.19%
2007		0.95% to 2.40%		124,698		13.98 to 16.78		2,178,340		0.01%		11.85% to 10.20%
NVIT Health Sciences Fund - Class III(obsolete) (GVGHS)
2009		0.80% to 1.40%		342,864		13.00 to 12.41		4,280,780		0.29%		18.16% to 17.45%
2008		0.80% to 1.40%		425,425		11.01 to 10.57		4,518,907		0.27%		-25.83% to -26.28%
2007		0.80% to 1.40%		476,539		14.84 to 14.34		6,861,700		0.07%		12.32% to 11.63%
NVIT Health Sciences Fund - Class VI(obsolete) (GVGH6)
2009		0.95% to 2.75%		1,400,047		10.46 to 9.43		14,121,966		0.15%		17.83% to 15.69%
2008		0.95% to 2.60%		1,764,395		8.88 to 8.21		15,216,848		0.03%		-26.15% to -27.38%
2007		0.95% to 2.60%		1,289,936		12.03 to 11.31		15,179,536		0.06%		11.90% to 10.02%
NVIT Leaders Fund - Class III(obsolete) (GVUSL)
2009		0.80% to 1.40%		257,511		11.35 to 10.83		2,809,711		0.84%		32.82% to 32.02%
2008		0.80% to 1.40%		344,880		8.54 to 8.20		2,847,343		0.77%		-50.34% to -50.64%
2007		0.80% to 1.40%		397,523		17.20 to 16.62		6,641,009		1.16%		10.66% to 9.99%
NVIT Mid Cap Growth Fund - Class I (obsolete) (SGRF)
2008		0.80% to 1.40%		1,380,783		3.82 to 3.63		5,042,610		0.00%		-46.54% to -46.87%
2007		0.80% to 1.40%		2,013,233		7.15 to 6.82		13,821,540		0.00%		8.14% to 7.48%
NVIT Mid Cap Growth Fund - Class II (obsolete) (SGRF2)
2008		0.95% to 3.20%		2,006,297		8.26 to 8.54		18,751,282		0.00%		-46.79% to -48.01%
2007		0.95% to 3.25%		16,359,805		15.52 to 16.39		287,785,579		0.00%		7.69% to 5.18%
NVIT Technology & Communications Fund - Class I(obsolete) (GGTC)
2009		0.80% to 1.40%		59,032		3.09 to 2.92		173,754		0.00%		51.25% to 50.33%
2008		0.80% to 1.40%		69,320		2.04 to 1.94		135,605		0.00%		-48.98% to -49.29%
2007		0.80% to 1.40%		89,808		4.00 to 3.83		346,234		0.00%		19.13% to 18.40%
NVIT Technology & Communications Fund - Class II(obsolete) (GGTC2)
2009		1.15% to 2.45%		49,650		15.30 to 13.97		742,990		0.00%		50.52% to 48.54%
2008		1.15% to 2.45%		59,489		10.17 to 9.41		593,313		0.00%		-49.38% to -50.05%
2007		0.95% to 2.45%		77,916		13.74 to 18.83		1,535,827		0.00%		18.85% to 17.04%
NVIT Technology & Communications Fund - Class III(obsolete) (GGTC3)
2009		0.80% to 1.40%		503,843		11.39 to 10.87		5,508,883		0.00%		51.23% to 50.31%
2008		0.80% to 1.40%		328,516		7.53 to 7.23		2,390,551		0.00%		-49.00% to -49.31%
2007		0.80% to 1.40%		430,126		14.77 to 14.27		6,165,718		0.00%		19.22% to 18.49%
NVIT Technology & Communications Fund - Class VI(obsolete) (GGTC6)
2009		0.95% to 2.80%		1,441,431		10.73 to 9.64		14,877,466		0.00%		51.04% to 48.22%
2008		0.95% to 2.80%		677,283		7.10 to 6.50		4,669,470		0.00%		-49.29% to -50.25%
2007		0.95% to 2.80%		1,169,229		14.01 to 13.07		15,963,363		0.00%		18.76% to 16.53%
NVIT U.S. Growth Leaders Fund - Class II(obsolete) (GVUG2)
2009		0.95% to 2.95%		964,339		8.10 to 12.26		14,596,668		0.00%		24.49% to 21.97%
2008		0.95% to 2.95%		1,047,552		6.51 to 10.06		12,820,073		0.00%		-42.03% to -43.20%
2007		0.95% to 2.95%		1,094,930		11.22 to 17.70		23,231,890		0.00%		12.24% to 18.50%	****
NVIT U.S. Growth Leaders Fund - Class III(obsolete) (GVUGL)
2009		0.80% to 1.40%		188,997		13.43 to 12.82		2,437,489		0.00%		24.78% to 24.03%
2008		0.80% to 1.40%		270,231		10.76 to 10.33		2,805,775		0.00%		-41.73% to -42.08%
2007		0.80% to 1.40%		329,074		18.46 to 17.84		5,894,162		0.00%		21.45% to 20.71%
Series Trust II - Mid Cap Value Portfolio (obsolete) (JPMCVP)
2008		0.80% to 1.40%		654,300		9.66 to 9.39		6,164,916		1.13%		-33.74% to -34.14%
2007		0.80% to 1.40%		934,069		14.58 to 14.26		13,355,230		0.93%		1.63% to 1.01%
U.S. Equity Flex I Portfolio(obsolete) (WSCP)
2010		0.80% to 1.40%		2,155,736		15.16 to 15.42		33,594,652		0.15%		13.54% to 12.86%
2009		0.80% to 1.40%		2,532,513		13.36 to 13.66		34,947,501		1.16%		23.67% to 22.92%
2008		0.80% to 1.40%		2,973,366		10.80 to 11.11		33,357,355		0.08%		-35.12% to -35.52%
2007		0.80% to 1.40%		3,619,869		16.65 to 17.24		62,919,860		0.00%		-1.63% to -2.23%
Variable Contracts Trust - Small Cap Value VCT Portfolio - Class I Shares (obsolete) (PISVP1)
2008		0.95% to 1.05%		105,733		6.12 to 6.10		646,042		0.60%		-38.59% to -38.65%
2007		0.95% to 1.05%		117,897		9.96 to 9.95		1,173,591		0.73%		-7.85% to -7.94%

2011	Reserves for annuity contracts in payout phase:	8,361,300
2011	Contract owners equity:	$29,793,903,432
2010	Reserves for annuity contracts in payout phase:	8,598,792
2010	Contract owners equity:	$26,665,526,554
2009	Reserves for annuity contracts in payout phase:	8,394,197
2009	Contract owners equity:	$21,471,280,300
2008	Reserves for annuity contracts in payout phase:	7,453,205
2008	Contract owners equity:	$16,006,481,073
2007	Reserves for annuity contracts in payout phase:	12,121,909
2007	Contract owners equity:	$22,175,260,947

* This represents the range of annual contract expense rates of the variable account at the period end indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owners’ accounts through the redemption of units.

** This represents the ratio of dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by monthly average net assets (excluding months where net assets are zero). The investment income ratio for subaccounts initially funded during the period presented has not been annualized. The ratios exclude those expenses that result in direct reductions to the contractholder accounts through reductions in unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the subaccounts invest.

*** This represents the range of minimum and maximum total returns for the period indicated, including changes in the value of the underlying mutual fund, which reflects the reduction of unit values for expenses assessed. The total returns do not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total return is not annualized if the underlying mutual fund option is initially offered, funded, or both, during the period presented. Minimum and maximum ranges are not shown for underlying mutual fund options for which a single contract expense rate (product option) exists. In such cases, the total return presented is representative of all units issued and outstanding at period end.

**** Subaccounts denoted indicate the underlying mutual fund option was initially added and funded during the period presented.

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholder

Nationwide Life Insurance Company:

We have audited the accompanying consolidated balance sheets of Nationwide Life Insurance Company and subsidiaries (the Company) as of December 31, 2012 and 2011, and the related consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2012. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying index. These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

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

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Nationwide Life Insurance Company and subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2012, 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 2 to the consolidated financial statements, in 2012 the Company changed its method of accounting for insurance contract acquisition costs and applied the new method retrospectively.

/s/ KPMG LLP

Columbus, Ohio

March 1, 2013

1

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 Consolidated Statements of Operations

(in millions)

	Year ended December 31,
	2012	2011	2010
		(As Adjusted)	(As Adjusted)
Revenues
Policy charges	$        1,670	$             1,506	$             1,399
Premiums	635	531	484
Net investment income	1,825	1,844	1,825
Net realized investment gains (losses)	350	(1,609)	(236)
Other-than-temporary impairment losses
Total other-than-temporary impairment losses	(67)	(162)	(394)
Non-credit portion of loss recognized in other comprehensive income	36	95	174
Net other-than-temporary impairment losses recognized in operations	(31)	(67)	(220)
Other revenues	7	3	2
Total revenues	$        4,456	$             2,208	$             3,254
Benefits and expenses
Interest credited to policyholder account values	$        1,038	$             1,033	$             1,056
Benefits and claims	1,227	1,062	873
Policyholder dividends	54	67	78
Amortization of deferred policy acquisition costs	575	65	299
Interest expense	68	70	55
Other expenses, net of deferrals	795	760	722
Total benefits and expenses	$        3,757	$             3,057	$             3,083
Income (loss) before federal income taxes and noncontrolling interests	$            699	$               (849)	$                171
Federal income tax expense (benefit)	99	(427)	12
Net income (loss)	$            600	$               (422)	$                159
Less:  Loss attributable to noncontrolling interest, net of tax	(61)	(56)	(60)
Net income (loss) attributable to Nationwide Life Insurance Company	$            661	$               (366)	$                219

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

2

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Comprehensive Income (Loss)

(in millions)

	Year ended December 31,
	2012	2011	2010
		(As Adjusted)	(As Adjusted)
Net income (loss)	$           600	$              (422)	$                159
Other comprehensive income, net of tax
Changes in:
Net unrealized gains on available-for-sale securities	571	317	600
Net unrealized (losses) gains on derivatives used in cash flow hedging relationships	(5)	12	18
Total other comprehensive income, net of tax	$           566	$                329	$                618
Total comprehensive income (loss)	$       1,166	$                (93)	$                777
Less: Comprehensive loss attributable to noncontrolling interests, net of tax	(61)	(56)	(60)
Total comprehensive income (loss) attributable to Nationwide Life Insurance Company	$       1,227	$                (37)	$                837

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

3

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

(in millions, except for share and per share amounts)

 December 31,

	2012	2011
		(As Adjusted)
Assets
Investments
Fixed maturity securities, available-for-sale	$         31,811	$           29,201
Mortgage loans, net of allowance	5,827	5,748
Policy loans	980	1,008
Short-term investments	1,034	1,125
Other investments	639	586
Total investments	$         40,291	$           37,668
Cash and cash equivalents	62	49
Accrued investment income	566	560
Deferred policy acquisition costs	3,249	3,487
Value of business acquired	224	238
Goodwill	200	200
Other assets	4,138	4,590
Separate account assets	71,440	65,194
Total assets	$      120,170	$         111,986
Liabilities and equity
Liabilities
Future policy benefits and claims	$         36,154	$           35,252
Short-term debt	300	777
Long-term debt	1,038	991
Other liabilities	4,507	4,230
Separate account liabilities	71,440	65,194
Total liabilities	$      113,439	$         106,444
Shareholder's equity
Common stock  ($1 par value; authorized - 5,000,000 shares, issued and
outstanding - 3,814,779 shares)	$                   4	$                    4
Additional paid-in capital	1,718	1,718
Retained earnings	3,410	2,789
Accumulated other comprehensive income	1,252	686
Total shareholder's equity	$           6,384	$             5,197
Noncontrolling interest	347	345
Total equity	$           6,731	$             5,542
Total liabilities and equity	$      120,170	$         111,986

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

4

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Changes in Equity

(in millions)

	Common stock	Additional paid-in  capital	Retained earnings	Accumulated other comprehensive income (loss)	Total shareholder's equity	Non-controlling interest	Total  equity
Balance as of December 31, 2009	$          4	$       1,718	$    3,510	$               (266)	$           4,966	$           351	$   5,317
Cumulative effect of adoption of   accounting principle	-	-	(565)	(4)	(569)	-	(569)
Adjusted balance as of December 31, 2009	$          4	$       1,718	$    2,945	$               (270)	$           4,397	$           351	$   4,748
Cumulative effect of adoption of   accounting principle	-	-	(9)	9	-	46	46
Comprehensive income (loss):
Net income (loss)	-	-	219	-	219	(60)	159
Other comprehensive income	-	-	-	618	618	-	618
Total comprehensive income (loss)	-	-	219	618	837	(60)	777
Change in noncontrolling interest	-	-	-	-	-	18	18
Balance as of December 31, 2010	$          4	$       1,718	$    3,155	$                357	$           5,234	$           355	$   5,589
Comprehensive (loss) income:
Net loss	-	-	(366)	-	(366)	(56)	(422)
Other comprehensive income	-	-	-	329	329	-	329
Total comprehensive (loss) income	-	-	(366)	329	(37)	(56)	(93)
Change in noncontrolling interest	-	-	-	-	-	46	46
Balance as of December 31, 2011	$          4	$       1,718	$    2,789	$                686	$           5,197	$           345	$   5,542
Cash dividend paid	-	-	(40)	-	(40)	-	(40)
Comprehensive income (loss):
Net income (loss)	-	-	661	-	661	(61)	600
Other comprehensive income	-	-	-	566	566	-	566
Total comprehensive income (loss)	-	-	661	566	1,227	(61)	1,166
Change in noncontrolling interest	-	-	-	-	-	63	63
Balance as of December 31, 2012	$          4	$       1,718	$    3,410	$             1,252	$           6,384	$           347	$   6,731

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

5

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Cash Flows

(in millions)

	Year ended December 31,
	2012	2011	2010
		(As Adjusted)	(As Adjusted)
Cash flows from operating activities:
Net income (loss)	$          600	$               (422)	$                159
Adjustments to net income (loss):
Net realized investment (gains) losses	(350)	1,609	236
Net other-than-temporary impairment losses recognized in earnings	31	67	220
Interest credited to policyholder account values	1,038	1,033	1,056
Capitalization of deferred policy acquisition costs	(470)	(604)	(501)
Amortization of deferred policy acquisition costs	575	65	299
Amortization and depreciation	80	48	(2)
Deferred tax expense (benefit)	243	(482)	103
Changes in:
Policy liabilities	(548)	(608)	(579)
Derivatives, net	(490)	(364)	(254)
Other, net	(84)	(265)	(51)
Net cash provided by operating activities	$          625	$                  77	$                686
Cash flows from investing activities:
Proceeds from maturity of available-for-sale securities	$      2,909	$             2,705	$             3,251
Proceeds from sales of available-for-sale securities	796	1,585	2,168
Purchases of available-for-sale securities	(5,167)	(6,176)	(5,910)
Proceeds from repayments of mortgage loans	1,048	1,124	996
Issuance and purchases of mortgage loans	(1,114)	(751)	(373)
Net decrease (increase) in short-term investments	98	(61)	(44)
Collateral (paid) received, net	(208)	359	(23)
Other, net	(12)	104	(29)
Net cash (used in) provided by investing activities	$     (1,650)	$            (1,111)	$                  36
Cash flows from financing activities:
Net change in short-term debt	$        (477)	$                477	$                150
Proceeds from issuance of long-term debt	13	13	272
Cash dividend paid to Nationwide Financial Services, Inc.	(40)	-	-
Investment and universal life insurance product deposits	5,566	5,314	4,540
Investment and universal life insurance product withdrawals	(4,063)	(5,024)	(5,405)
Other, net	39	(34)	9
Net cash provided by (used in) financing activities	$      1,038	$                746	$               (434)
Net increase (decrease) in cash and cash equivalents	$            13	$               (288)	$                288
Cash and cash equivalents, beginning of period	49	337	49
Cash and cash equivalents, end of period	$            62	$                  49	$                337

See accompanying notes to consolidated financial statements and Note 2 for disclosure of the change in accounting principle.

6

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements

December 31, 2012, 2011 and 2010

(1) Nature of Operations

Nationwide Life Insurance Company (“NLIC”, or collectively with its subsidiaries, “the Company”) was incorporated in 1929 and is an Ohio domiciled stock life insurance company.  The Company is a member of the Nationwide group of companies (“Nationwide”), which is comprised of Nationwide Mutual Insurance Company (“NMIC”) and all of its subsidiaries and affiliates.

All of the outstanding shares of NLIC’s common stock are owned by Nationwide Financial Services, Inc. (“NFS”), a holding company formed by Nationwide Corporation (“Nationwide Corp.”), a majority-owned subsidiary of NMIC.

Wholly-owned subsidiaries of NLIC as of December 31, 2012 include Nationwide Life and Annuity Insurance Company (“NLAIC”) and Nationwide Investment Services Corporation (“NISC”).  NLAIC primarily offers universal life insurance, variable universal life insurance, term life insurance, corporate-owned life insurance (“COLI”) and individual annuity contracts on a non-participating basis.  NISC is a registered broker-dealer.

The Company is a leading provider of long-term savings and retirement products in the United States (“U.S.”).  The Company develops and sells a diverse range of products and services including individual annuities, private and public sector group retirement plans, investment products sold to institutions, life insurance and advisory services.

The Company sells its products through a diverse distribution network.  Unaffiliated entities that sell the Company’s products to their own customer bases include independent broker-dealers, financial institutions, wirehouse and regional firms, pension plan administrators and life insurance specialists.  Representatives of affiliates who market products directly to a customer base include Nationwide Retirement Solutions, Inc. (“NRS”) and Nationwide Financial Network (“NFN”) producers, which includes the agency distribution force of the Company’s ultimate parent company, NMIC.

As of December 31, 2012 and 2011, 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

Basis of Presentation

The consolidated financial statements include the accounts of NLIC and companies in which NLIC directly or indirectly has a controlling financial interest. The consolidated financial statements include majority-owned subsidiaries and consolidated variable interest entities (“VIEs”). All significant intercompany accounts and transactions have been eliminated.

Entities in which NLIC does not have a controlling interest, but the Company has significant influence over the operating and financing decisions and also certain other investments, are reported using the equity method.

Use of Estimates

The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). The preparation of the consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.  Significant estimates include the balance and amortization of deferred policy acquisition costs (“DAC”), investment impairment losses, valuation allowances for mortgage loans, certain investment and derivative valuations, future policy benefits and claims including the valuation of embedded derivatives resulting from living benefit guarantees on variable annuity contracts,  goodwill, provision for income taxes and valuation of deferred tax assets.  Actual results could differ significantly from those estimates.

7

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Revenues and Benefits

Investment and universal life insurance products.  Investment products are long duration contracts which are not subject to significant mortality (the relative incidence of death in a given time) or morbidity (the relative incidence of disability resulting from disease or physical impairment) risk.  These include individual and group variable and fixed deferred annuities in the accumulation phase and certain annuities without life contingencies.  Universal life insurance products include long duration insurance contracts that do not have fixed or guaranteed terms.  These include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (“BOLI”) and other interest-sensitive life insurance policies.  Revenues for investment products and universal life insurance products consist of net investment income, surrender charges and other policy charges earned and assessed against policy account balances during the period.  Policy charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned.  Assessments for services provided in future periods are recorded as unearned revenue and recognized as revenue over the periods benefited.  Surrender charges are recognized as revenue upon surrender of a contract in accordance with contractual terms.Policy benefits and claims that are charged to expense include interest credited to policyholder accounts and benefits and claims incurred in the period in excess of related policyholder accounts.

Traditional life insurance products.  Traditional life insurance products include those products with fixed and guaranteed terms, primarily consisting of whole life insurance, term life insurance and certain annuities with life contingencies.  Premiums for traditional life insurance products are generally recognized as revenue when due.  For certain annuities with life contingencies, any excess of gross premium over the net premium is deferred and recognized with the amount of expected future benefits.  Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract.  This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

Future Policy Benefits and Claims

Investment and universal life insurance products.  The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and for universal life insurance policies as the policy accrued account balance, which represents participants’ net deposits plus investment performance and interest credited less applicable contract charges.

The Company offers certain universal life insurance, variable universal life insurance and variable annuity products with secondary guarantees, guaranteed minimum death benefits (“GMDB”), and guaranteed minimum income benefits (“GMIB”).  Liabilities for these guarantees are calculated by multiplying the current benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest.  The Company regularly evaluates its experience and assumptions and adjusts the benefit ratio as appropriate.  If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes with a related charge or credit to other benefits and claims in the period of evaluation. Determination of the expected benefit payments and assessments are based on a range of scenarios and assumptions including those related to market rates of return and volatility, contract surrenders and mortality experience. The accounting for these guarantees impacts estimated gross profits used to calculate the balance and amortization of DAC, value of business acquired (“VOBA”) and unearned revenue reserves. Refer to Note 4 for discussion of these guarantees.

Guarantees to variable annuity contractholders can include a return of no less than total deposits made on the contract less any customer withdrawals, total deposits made on the contract less any customer withdrawals plus a minimum return, or the highest contract value on a specified anniversary date minus any customer withdrawals following the contract anniversary. In addition, these guarantees can include benefits payable in the event of death, upon annuitization, upon periodic withdrawal or at specified dates during the accumulation period. Refer to Note 4 for a discussion of these guarantees.

8

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The Company’s guaranteed minimum accumulation benefit (“GMAB”) and guaranteed living withdrawal benefit (“GLWB”) are living benefit guarantees which represent embedded derivatives in variable annuity contracts that are required to be separated from, and valued apart from, the host variable annuity contracts.  The embedded derivatives are carried at fair value.  Subsequent changes in the fair value of the embedded derivatives are recognized in earnings as a component of net realized investment gains and losses.  The fair value of the embedded derivatives is calculated based on a combination of capital market and actuarial assumptions. Projections of cash flows inherent in the valuation of the embedded derivative incorporate numerous assumptions including, but not limited to, mortality, lapse rates, index volatility, wait period (the number of years the policyholder is assumed to wait prior to beginning withdrawals once eligible), efficiency of benefit utilization (the percent of the maximum permitted withdrawal that a policyholder takes) and non-performance risk (the risk that the liability will not be fulfilled and affects the value at which the liability is transferred).  The assumptions used to calculate the fair value of embedded derivatives are reviewed as part of an annual comprehensive study of assumptions during the second quarter.  Quarterly, consideration is given as to whether adjustments to these assumptions are necessary.

Traditional life insurance products.  The process of calculating reserve amounts for traditional life insurance products involves the use of a number of assumptions, including those related to persistency, mortality, morbidity, interest rates (the rates expected to be paid or received on financial instruments) and certain other expenses.

The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method with weighted average interest rates of 6.6% and estimates of mortality, morbidity, investment yields and persistency that were used or being experienced at the time the policies were issued with a provision for adverse deviation.

The liability for future policy benefits for certain annuities with life contingencies was calculated using the present value of future benefits and certain expenses discounted using weighted average interest rates of 5.6% with a provision for adverse deviation.

Reinsurance ceded

The Company cedes insurance to other companies in order to limit potential losses and to diversify its exposures. Such agreements do not discharge the original insurer from its primary obligation to the policyholder in the event the reinsurer is unable to meet the obligations it has assumed. Reinsurance premiums ceded and reinsurance recoveries on benefits and claims incurred are deducted from the respective income and expense accounts.  Assets and liabilities related to reinsurance ceded generally are reported in the consolidated balance sheets on a gross basis, separately from the related future policy benefits and claims of the Company.

Deferred Policy Acquisition Costs

The Company has deferred certain acquisition costs that are directly related to the successful acquisition of new and renewal insurance and investment contracts.  The methods and assumptions used to amortize and assess recoverability of the DAC balance depend on the type of product.

Investment and universal life insurance products.  For certain investment and universal life insurance products, DAC is amortized with interest over the lives of the policies in relation to the present value of estimated gross profits, which is determined primarily from projected interest margins, policy charges and net realized investment gains and losses, less policy benefits and other expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities with the corresponding adjustment recorded in accumulated other comprehensive income (“AOCI”). This adjustment to DAC represents the change in amortization that would have been required as a charge or credit to operations had such unrealized amounts been realized. DAC for investments and universal life insurance products is subject to recoverability testing in the year of policy issuance and DAC for universal life insurance products is also subject to loss recognition testing at the end of each reporting period.

9

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The assumptions used in the estimation of gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual process during the second quarter. During the annual process, the Company performs a comprehensive study of assumptions, including mortality and persistency studies, maintenance expense studies and an evaluation of projected general and separate account investment returns. The most significant assumptions that are involved in the estimation of future gross profits include future net separate account investment performance, surrender/lapse rates, interest margins, renewal premiums and mortality. Quarterly, consideration is given as to whether adjustments to these assumptions are necessary. The Company uses a reversion to the mean process to determine the assumption for the future net separate account investment performance. This process assumes different performance levels over the next three years such that the separate account mean return measured from the anchor date to the end of the life of the product equals the long-term assumption. The Company’s long-term assumption for net separate account investment performance is approximately 7% growth per year.

Changes in assumptions can have a significant impact on the amount of DAC reported for investment 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.

Traditional life insurance.  DAC is amortized with interest over the premium-paying period of the related policies in proportion to premium revenue recognized. These assumptions are consistent with those used in the calculation of liabilities for future policy benefits at issuance. DAC is evaluated for recoverability at the time of policy issuance, and loss recognition testing is conducted each reporting period.

Refer to Note 5 for discussion regarding assumption changes impacting DAC amortization and related balances.

Investments

Purchases and sales of securities are recorded on the trade date. Realized gains and losses on sales of available-for-sale securities are recognized in income based on the specific identification method. Interest and dividend income is recognized when earned.

Available-for-sale securities.  Available-for-sale securities are reported at fair value, with unrealized holding gains and losses reported as a separate component of other comprehensive income, net of adjustments for DAC and other, future policy benefits and claims, policyholder dividend obligations and deferred federal income taxes.

To determine the fair value of securities for which market quotations are available, independent pricing services are most often utilized. For these securities, the Company obtains the pricing services’ methodologies, inputs and assumptions and classifies the investments accordingly in the fair value hierarchy.  As of December 31, 2012 and 2011, 86% and 84%, respectively, of fixed maturity securities were priced using independent pricing services.

A corporate pricing matrix or an internally developed pricing model is used in valuing certain corporate debt securities. The corporate pricing matrix is developed using private spreads for corporate securities with varying weighted average lives and credit quality ratings. The weighted average life and credit quality rating of a particular fixed maturity security to be priced using the corporate pricing matrix are important inputs into the model and are used to determine a corresponding spread that is added to the appropriate U.S. Treasury yield to create an estimated market yield for that security. The estimated market yield and other relevant factors are then used to estimate the fair value of the particular security.

10

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Non-binding broker quotes are also utilized to determine the fair value of certain corporate debt, mortgage-backed and other asset-backed securities when quotes are not available from independent pricing services, corporate pricing matrix or internal pricing models. These securities are classified with the lowest priority in the fair value hierarchy as only one broker quote is ordinarily obtained, the investment is not traded on an exchange, the pricing is not available to other entities and/or the transaction volume in the same or similar investments has decreased. Inputs used in the development of prices are not provided to the Company by the brokers as the brokers often do not provide the necessary transparency into their quotes and methodologies. The Company performs reviews and tests to ensure that quotes are a reasonable estimate of the investments’ fair value at least annually. Price movements of broker quotes are subject to validation and require approval from the Company’s management. Management uses its knowledge of the investment and current market conditions to determine if the price is indicative of the investment’s fair value.

When the collectability of contractual interest payments on fixed maturity securities is considered doubtful, such securities are placed in non-accrual status and any accrued interest is excluded from investment income. These securities are not restored to accrual status until the Company determines that payment of future principal and interest is probable.

For investments in certain residential and commercial mortgage-backed securities, the Company recognizes income and amortizes discounts and premiums using the effective-yield method based on prepayment assumptions and the estimated economic life of the securities. When actual prepayments differ significantly from estimated prepayments, the effective-yield is recalculated to reflect actual payments to date and anticipated future payments. Any resulting adjustment is included in net investment income in the period the estimates are revised. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.

The Company periodically reviews its available-for-sale securities to determine if any decline in fair value to below amortized cost is other-than-temporary. Factors considered in determining whether a decline is other-than-temporary include the length of time a security has been in an unrealized loss position, the severity of the unrealized loss, reasons for the decline in value and expectations for the amount and timing of a recovery in fair value.

In assessing corporate debt securities for other-than-temporary impairment, the Company evaluates the ability of the issuer to meet its debt obligations, the value of the company or specific collateral securing the debt, the Company’s intent to sell the security and whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost basis. The Company evaluates U.S. Treasury securities and obligations of U.S. Government corporations and agencies, obligations of states and political subdivisions, and debt securities issued by foreign governments for other-than-temporary impairment by examining similar characteristics.

When evaluating whether residential mortgage-backed securities, commercial mortgage-backed securities, collateralized debt obligations and other asset-backed securities are other-than-temporarily impaired, the Company examines characteristics of the underlying collateral, such as delinquency and default rates, the quality of the underlying borrower, the type of collateral in the pool, the vintage year of the collateral, subordination levels within the structure of the collateral pool, the quality of any credit guarantors, the Company’s intent to sell the security and whether it is more likely than not it will be required to sell the security before the recovery of its amortized cost basis.

The Company evaluates its intent to sell on an individual security basis. For all debt securities evaluated for other-than-temporary impairment (for which the Company does not have the intent to sell and it is not more likely than not that it will be required to sell the security before the recovery of its amortized cost basis), the Company considers the timing and present value of the cash flows. To the extent that the present value of cash flows generated by a debt security is less than the amortized cost, an other-than-temporary impairment is recognized through earnings.

Other-than-temporary impairment losses on securities (where the Company does not intend to sell the security and it is not more likely than not it will be required to sell the security prior to recovery of the security’s amortized cost basis) are bifurcated with the credit portion of the impairment loss being recognized in earnings and the non-credit loss portion of the impairment and any subsequent changes in the fair value of those debt securities being recognized in other comprehensive income, net of applicable taxes and other offsets.

11

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

It is reasonably possible that further declines in fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments in the near term, which could be significant.

Mortgage loans, net of allowance.  The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S. These mortgage loans are further segregated into the following classes based on the unique risk profiles of the underlying property types: office, warehouse, retail, apartment and other.  Mortgage loans are carried at amortized cost less a valuation allowance.

As part of the underwriting process, specific guidelines are followed to ensure the initial quality of a new mortgage loan.  Third-party appraisals are generally obtained to support loaned amounts as the loans are usually collateral dependent.

The collectability and value of a mortgage loan are based on the ability of the borrower to repay and/or the value of the underlying collateral.  Many of the Company’s mortgage loans are structured with balloon payment maturities, exposing the Company to risks associated with the borrowers’ ability to make the balloon payment or refinance the property.

The Company actively monitors the credit quality of its mortgage loans to support the development of the valuation allowance.  This monitoring process includes quantitative analyses which facilitate the identification of deteriorating loans, and qualitative analyses, which consider other factors relevant to the borrowers’ ability to repay.  Loans with deteriorating credit fundamentals are identified through special surveillance procedures and are evaluated based on the severity of their deterioration and management’s judgment as to the likelihood of loss.

Mortgage loans 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 either the fair value of the collateral or the present value of expected future cash flows discounted at the loan’s market interest rate.  Loan-specific impairment reserve charges are recorded in other-than-temporary impairment losses. In the event a loan-specific impairment reserve charge is reversed, the recovery is recorded in other-than-temporary impairment losses.

In addition to the loan-specific reserves, the Company maintains a non-specific reserve based on loan surveillance categories and property type classes, which reflects management’s best estimate of probable credit losses inherent in the portfolio as of the balance sheet date but not yet attributable to specific loans.  Management’s periodic evaluation of the adequacy of the non-specific reserve is based on past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect a borrower’s ability to repay, the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Non-specific reserve charges are recorded in net realized investment gains and losses.

Interest income on performing mortgage loans is recognized over the life of the loan using the effective-yield method. Loans in default or in the process of foreclosure are placed on non-accrual status. Interest received on non-accrual status mortgage loans is included in net investment income in the period received. Loans are considered delinquent when contractual payments are 90 days past due.

Policy loans.  Policy loans, which are collateralized by the related insurance policy, are carried at the outstanding principal balance and do not exceed the net cash surrender value of the policy. As such, no valuation allowance for policy loans is required.

Short-term investments.  Short-term investments consist of highly liquid mutual funds and government agency discount notes with maturities of twelve months or less at acquisition. The Company and various affiliates 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 are included in short-term investments on the consolidated balance sheets. The Company carries short-term investments at fair value.

12

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Other investments. Other investments consist primarily of equity method investments in joint ventures and partnerships, customer bank loans, equity securities, capital stock with the Federal Home Loan Bank of Cincinnati (“FHLB”) and trading securities.

Securities lending.  The Company has entered into securities lending agreements with a custodial bank whereby eligible securities are loaned to third parties, primarily major brokerage firms. These transactions are used to generate additional income on the securities portfolio. The Company is entitled to receive from the borrower any payments of interest and dividends received on loaned securities during the loan term. The agreements require a minimum of 102% of the fair value of loaned securities to be held as collateral. Cash collateral is invested by the custodial bank in investment-grade securities, which are included in the total investments of the Company. Periodically, the Company may receive non-cash collateral, which would be recorded off-balance sheet. The Company recognizes loaned securities in either available-for-sale or short-term investments. A securities lending payable is recorded in other liabilities for the amount of cash collateral received. Net income received from securities lending activities is included in net investment income.

Variable interest entities. In the normal course of business, the Company has relationships with VIEs.  If the Company determines that it has a variable interest and is the primary beneficiary, it consolidates the VIE.  This determination is based on a review of the entity’s contract and other deal related information, such as the entity's equity investment at risk, decision-making abilities, obligations to absorb economic risks and right to receive economic rewards of the entity. The Company is the primary beneficiary if the Company has the power to direct the activities of the VIE that most significantly impact the economic performance of the entity and the obligation to absorb losses or receive benefits from the entity that could be potentially significant to the VIE.

The majority of the VIEs consolidated by the Company are related to guarantees provided to limited partners related to the amount of tax credits that will be generated by the Low-Income-Housing Tax Credit Funds (“Tax Credit Funds”).  The results of operations and financial position of each VIE for which the Company is the primary beneficiary as well as the corresponding noncontrolling interests are recorded in the accompanying consolidated financial statements.  Ownership interests held by unrelated third parties in the consolidated VIEs are presented as noncontrolling interests in the equity section of the consolidated financial statements. Income (loss) attributable to noncontrolling interests is excluded from the net income (loss) attributable to NLIC on the consolidated statements of operations.

The Company invests in fixed maturity securities that could qualify as VIEs, including corporate securities, mortgage-backed securities and asset-backed securities.  The Company is not the primary beneficiary of these securities as the Company does not have the power to direct the activities that most significantly impact the entities’ performance.  The Company’s maximum exposure to loss is limited to the carrying values of these securities.  There are no liquidity arrangements, guarantees or other commitments by third parties that affect the fair value of the Company’s interest in these assets.  Refer to Note 6 for additional disclosures related to these investments.

The Company is not required, and does not intend, to provide financial or other support outside contractual requirements to any VIE.

Derivative Instruments

The Company uses derivative instruments to manage exposures and mitigate risks associated with interest rates, equity markets, foreign currency and credit.  These derivative instruments primarily include interest rate swaps, futures contracts and options.  Certain features embedded in the Company’s investments, indexed products and certain variable annuity contracts require derivative accounting. Refer to the prior discussion of Future Policy Benefits and Claims for a description of the valuation applicable to these products.  All derivative instruments are carried at fair value and are reflected as assets or liabilities in the consolidated balance sheets.

13

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Fair value of derivative instruments is determined using various valuation techniques relying predominately on observable market inputs. These inputs include interest rate swap curves, credit spreads, interest rates, counterparty credit risk, equity volatility and equity index levels. In cases where observable inputs are not available, the Company will utilize non-binding broker quotes to determine fair value. These instruments are classified with the lowest priority in the fair value hierarchy. Price movements of broker quotes are subject to validation and require approval from the Company's management. Management uses models to internally value the instruments for comparison to the values received through broker quotes.

For derivatives that are not designated for hedge accounting, the gain or loss on the derivative is primarily recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for fair value hedge accounting, the gain or loss on the derivative instrument as well as the hedged item, to the extent of the risk being hedged, are recognized in net realized investment gains and losses.

For derivative instruments that are designated and qualify for cash flow hedge accounting, the effective portion of the gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods that the hedged transaction impacts earnings. The ineffective portion of the derivative’s change in value, if any, along with any of the derivative’s change in value that is excluded from the assessment of hedge effectiveness, are recorded in net realized investment gains and losses.

The Company’s derivative transaction counterparties are generally financial institutions. To reduce the credit risk associated with open contracts, the Company enters into master netting agreements which permit the closeout and netting of transactions with the same counterparty upon the occurrence of certain events. In addition, the Company attempts to reduce credit risk by obtaining collateral from counterparties. The determination of the need for and the levels of collateral vary based on an assessment of the credit risk of the counterparty. The Company accepts collateral in the form of cash and marketable securities.

The Company invests in certain structured securities that contain embedded credit derivatives.  These securities are referred to as synthetic collateralized debt obligations and have maturity dates ranging from one to ten years.  The credit derivatives embedded in these securities have not been separated from their host contracts for separate fair value reporting; rather, the Company has elected to carry the entire security at fair value with any changes in fair value included in net realized investment gains and losses.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources while unobservable inputs reflect the Company’s view of market assumptions in the absence of observable market information. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In determining fair value, the Company uses various methods including market, income and cost approaches.

The Company categorizes its fair value measurements into a three-level hierarchy based on the priority of the inputs to the valuation technique.  The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).  If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument in its entirety.

14

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The Company categorizes assets and liabilities carried at fair value in the consolidated balance sheets as follows:

· Level 1 – Unadjusted quoted prices accessible in active markets for identical assets or liabilities at the measurement date and mutual funds where the value per share (unit) is determined and published daily and is the basis for current transactions.

· Level 2 – Unadjusted quoted prices for similar assets or liabilities in active markets or inputs (other than quoted prices) that are observable or that are derived principally from or corroborated by observable market data through correlation or other means. Primary inputs to this valuation technique may include comparative trades, bid/asks, interest rate movements, U.S. Treasury rates, London Interbank Offered Rate (“LIBOR”), prime rates, cash flows, maturity dates, call ability, estimated prepayments, and/or underlying collateral values.

· Level 3 – Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  Inputs reflect management’s best estimate about the assumptions market participants would use at the measurement date in pricing the asset or liability. Consideration is given to the risk inherent in both the method of valuation and the valuation inputs. Primary inputs to this valuation technique include broker quotes and comparative trades.

The Company reviews its fair value hierarchy classifications for assets and liabilities quarterly. Changes in observability of significant valuation inputs identified during these reviews may trigger reclassifications. Reclassifications are reported as transfers at the beginning of the period in which the change occurs.

Federal Income Taxes

The Company recognizes deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income or loss in the years in which those temporary differences are expected to be recovered or settled. Under this method, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce a deferred tax asset to the amount expected to be realized. Interest expense and any associated penalties which relate to tax years still subject to review by the Internal Revenue Service (“IRS”) are recorded as income tax expense.

The Company provides for federal income taxes based on amounts the Company believes it will ultimately owe.  Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits.  In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to change the provision for federal income taxes recorded in the consolidated financial statements, which could be significant.

Tax reserves are reviewed regularly and are adjusted as events occur that management believes impact its liability for additional taxes, such as lapsing of applicable statutes of limitations, conclusion of tax audits or substantial agreement with taxing authorities on the deductibility/nondeductibility of uncertain items, additional exposure based on current calculations, identification of new issues, release of administrative guidance or rendering of a court decision affecting a particular tax issue.

NLIC files a separate consolidated federal income tax return, with its subsidiaries, and is eligible to join the NMIC consolidated tax return group in 2014.

Cash and Cash Equivalents

Cash and cash equivalents include highly liquid investments with original maturities of less than three months.

15

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Value of Business Acquired

As a result of the acquisition of Provident Mutual Life Insurance Company (“Provident”) in 2002 and the application of purchase accounting, the Company reports an intangible asset representing the fair value of the business in force and the portion of the purchase price that was allocated to the value of the right to receive future cash flows from the life insurance and annuity contracts existing as of the closing date of the Provident acquisition.  The value assigned to VOBA was supported by an independent valuation study commissioned by the Company and executed by a team of qualified valuation experts, including actuarial consultants.

VOBA represents the actuarially-determined value of future cash flows for acquired insurance contracts. Expected future cash flows are determined based on projected future policy and contract charges, premiums, mortality and morbidity, separate account performance, surrenders, changes in reserves, operating expenses, investment income and other factors. Amortization of VOBA occurs with interest over the anticipated lives of the major lines of business to which it relates in relation to estimated gross profits, gross margins or premiums, as appropriate. VOBA is adjusted to reflect the impact of unrealized gains and losses on available-for-sale securities with the corresponding adjustment recorded in AOCI. This adjustment to VOBA represents the change in amortization that would have been required as a charge or credit to operations had such unrealized amounts been realized. In the event actual experience differs or assumptions are revised, an increase or decrease in VOBA amortization expense is recorded, which could be significant.

Goodwill

In connection with acquisitions of operating entities, the Company recognizes the excess of the purchase price over the fair value of net assets acquired as goodwill.  Goodwill is not amortized, but is evaluated for impairment at the reporting unit level annually.  Goodwill of a reporting unit is tested for impairment on an interim basis, in addition to the annual evaluation if an event occurs or circumstances change which would more likely than not reduce the fair value of a reporting unit below its carrying amount. If a reporting unit’s fair value is less than its carrying value, the Company will perform an impairment evaluation. This evaluation utilizes an income approach to develop the implied fair value. An impairment is recognized on a reporting unit for the amount that the carrying value of its goodwill exceeds the implied fair value of its goodwill.

The process of evaluating goodwill for impairment requires several judgments and assumptions to be made to determine the fair value of the reporting units, including the method used to determine fair value, discount rates, expected levels of cash flows, revenues and earnings, and the selection of comparable companies used to develop market-based assumptions.  The Company performed its 2012 annual impairment test and determined that no impairment was required.

Closed Block

In connection with the sponsored demutualization of Provident prior to its acquisition by the Company, Provident established a closed block for the benefit of certain classes of individual participating policies that had a dividend scale payable in 2001.  Assets were allocated to the closed block in an amount that produces cash flows which, together with anticipated revenues from closed block business, is reasonably expected to be sufficient to provide for (1) payment of policy benefits, specified expenses and taxes, and (2) the continuation of dividends throughout the life of the Provident policies included in the closed block based upon the dividend scales payable for 2001, if the experience underlying such dividend scales continues.

Assets allocated to the closed block benefit only the holders of the policies included in the closed block and will not revert to the benefit of the Company.  No reallocation, transfer, borrowing or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without the approval of the Pennsylvania Insurance Department and Ohio Department of Insurance (“ODI”).  The closed block will remain in effect as long as any policy in the closed block is in force.

16

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

If, over time, the aggregate performance of the closed block assets and policies is better than was assumed in funding the closed block, dividends to policyholders will increase.  If, over time, the aggregate performance of the closed block assets and policies is less favorable than was assumed in the funding, dividends to policyholders could be reduced.  If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from the Company’s assets outside of the closed block, which are general account assets.

The assets and liabilities allocated to the closed block are recorded in the Company’s consolidated financial statements on the same basis as other similar assets and liabilities.  The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets at the date Provident was acquired by the Company represents the maximum future earnings from the assets and liabilities designated to the closed block that can be recognized in income, for the benefit of stockholders, over the period the policies in the closed block remain in force.

If actual cumulative earnings exceed expected cumulative earnings, the expected earnings are recognized in income.  This is because the excess actual cumulative earnings over expected cumulative earnings, which represents undistributed accumulated earnings attributable to policyholders, is recorded as a policyholder dividend obligation.  Therefore, the excess will be paid to closed block policyholders as an additional policyholder dividend expense in the future unless it is otherwise offset by future performance of the closed block that is less favorable than originally expected.  If actual cumulative performance is less favorable than expected, actual earnings will be recognized in income.

The principal cash flow items that affect the amount of closed block assets and liabilities are premiums, net investment income, purchases and sales of investments, policyholder benefits, policyholder dividends, premium taxes and income taxes.  The principal income and expense items excluded from the closed block are management and maintenance expenses, commissions and net investment income and realized gains and losses on investments held outside of the closed block that support the closed block business, all of which enter into the determination of total gross margins of closed block policies for the purpose of the amortization of VOBA.  See Note 10 for further disclosure.

Separate Accounts

Separate account assets and liabilities represent contractholders’ funds that have been legally segregated into accounts with specific investment objectives.  In the separate account, investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder.  Separate account assets are primarily comprised of public, privately registered and non-registered mutual funds.Separate account assets are recorded at fair value based on the methodology that would be applicable to the underlying assets.  The value of separate account liabilities is set to equal the fair value for separate account assets.

Participating Business

Participating business, which refers to policies that participate in profits through policyholder dividends, represented approximately 5% of the Company’s life insurance in force in 2012 (5% in 2011 and 2010), 40% of the number of life insurance policies in force in 2012 (42% in 2011 and 45% in 2010).  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.

Change in Accounting Principle

In October 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-26, which amends FASB Accounting Standards Codification (“ASC”) 944, Financial Services – Insurance. The amended guidance modifies the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal insurance and investment contracts. Under the amended guidance, acquisition costs are to include only those costs that are directly related to the successful acquisition of new or renewal insurance and investment contracts. The methods and assumptions used to amortize and assess recoverability of DAC were not impacted as a result of adopting this guidance. The Company adopted this guidance retrospectively, effective January 1, 2012, which resulted in a reduction to total equity of $569 million, net of taxes, as of December 31, 2009.

17

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The Company adjusted the presentation of its consolidated financial statements and accompanying notes for all periods presented, to reflect the retrospective adoption of this change in accounting principle.

The following tables summarize the impact of the retrospective change in accounting principle on the consolidated statements of operations for the periods indicated:

	Year ended December 31, 2011
(in millions)	As Originally Reported	As Adjusted	Effect of Change
Amortization of deferred policy acquisition costs	$                                    76	$                      65	$                      11
Other expenses, net of deferrals	$                                  620	$                    760	$                  (140)
Federal income tax benefit	$                                (382)	$                  (427)	$                      45
Net loss attributable to Nationwide Life Insurance Company	$                                (282)	$                  (366)	$                    (84)

	Year ended December 31, 2010
(in millions)	As Originally Reported	As Adjusted	Effect of Change
Amortization of deferred policy acquisition costs	$                                  396	$                    299	$                      97
Other expenses, net of deferrals	$                                  592	$                    722	$                  (130)
Federal income tax expense	$                                    24	$                      12	$                      12
Net income attributable to Nationwide Life Insurance Company	$                                  240	$                    219	$                    (21)

The following table summarizes the impact of the retrospective change in accounting principle on the consolidated balance sheet as of the date indicated:

		December 31, 2011
(in millions)	As Originally Reported	As Adjusted	Effect of Change
Deferred policy acquisition costs	$                               4,425	$                 3,487	$                  (938)
Other  assets1	$                               4,348	$                 4,590	$                    242
Other liabilities1	$                               4,316	$                 4,230	$                    (86)
Retained earnings	$                               3,459	$                 2,789	$                  (670)
Accumulated other comprehensive income2	$                                  626	$                    686	$                      60

______________

1 Change relates to the Company’s net deferred tax liability position moving to a net deferred tax asset on the consolidated balance sheets.

2 Represents the adjustments to DAC related to unrealized gains and losses on securities available-for-sale.

Subsequent Events

The Company evaluated subsequent events through March 1, 2013, the date the consolidated financial statements were issued.

(3) Recently Issued Accounting Standards

Adopted Accounting Standards

On January 1, 2012, the Company adopted ASU 2011-04, which amends existing guidance in ASC 820, Fair Value Measurements and Disclosures. The guidance in this ASU clarifies existing fair value measurement guidance and expands disclosures primarily related to Level 3 fair value measurements.  The adoption of this guidance resulted in increased disclosures only and had no impact on the Company’s consolidated financial statements.

18

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

On January 1, 2012, the Company adopted ASU 2011-05, which amends existing guidance in ASC 220, Comprehensive Income. The amended guidance requires reporting entities to present net income and other comprehensive income in either a single continuous statement or in two separate, but consecutive, statements of net income and other comprehensive income. The Company elected two separate but consecutive statements of operations and comprehensive income and adopted ASU 2011-05 retrospectively.

On December 31, 2010, the Company adopted new disclosure requirements regarding the credit quality of its financing receivables (e.g., commercial mortgage loans) and the related allowance for credit losses within ASU 2010-20, which amends FASB ASC 310, Receivables. The adoption of this guidance resulted in increased disclosures only and had no impact on the Company's consolidated financial statements.

On January 1, 2010, the Company adopted ASU 2010-06, except for the new disclosure providing disaggregated information related to the activity in Level 3 fair value measurements, which the Company adopted effective January 1, 2011.

On July 1, 2010, the Company adopted ASU 2010-11, which clarifies the guidance and application of the scope exception for embedded credit derivatives contained within FASB ASC 815-15, Embedded Derivatives. This scope exception allows for embedded credit derivative features related only to the transfer of credit risk in the form of subordination of one financial instrument to another to not be subject to potential bifurcation and separate accounting.  The guidance also allowed companies to irrevocably elect to apply the fair value option to any investment in a beneficial interest in securitized financial assets.  The Company recorded an impact of adoption of $9 million, net of taxes, as a decrease to retained earnings with a corresponding increase to accumulated other comprehensive income on the consolidated statements of equity.

On January 1, 2010, the Company adopted guidance under FASB ASC 810, Consolidation, resulting in an increase to noncontrolling interest of $46 million on the consolidated statements of equity.  This guidance changes the consolidation guidance applicable to a VIE.  It also amends the guidance governing the determination of whether an entity is the VIE’s primary beneficiary (the reporting entity that must consolidate the VIE) by requiring a qualitative analysis rather than a quantitative analysis.

Pending Accounting Standards

In December 2011, the FASB issued ASU 2011-11, which expands the disclosure requirements within ASC 210-10, Balance Sheet – Offsetting.  The new disclosures require improved information about certain financial instruments and derivatives that are either offset in accordance with GAAP or subject to enforceable master offsetting arrangements irrespective of GAAP.  In January 2013, the FASB issued ASU 2013-01, which clarifies the scope of these disclosures. The Company will adopt both ASUs retrospectively for interim and annual periods beginning January 1, 2013.  The adoption of this guidance will result in increased disclosures only and will have no impact on the Company's consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which amends FASB ASC 220, Comprehensive Income.  The amended guidance requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by significant component.  For significant amounts reclassified into net income in their entirety in the same reporting period, the amended guidance also requires entities to present or disclose the effect of these reclassifications on line items of net income.  The amendments are effective prospectively for the Company’s annual and interim periods beginning January 1, 2013.  The adoption of this guidance will result in increased disclosure and may impact the presentation of the Company’s consolidated financial statements.

19

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(4) Certain Long-Duration Contracts

Variable Annuity Contracts

The Company issues variable annuity contracts through its separate accounts. Contractholder assets are invested in general and separate account investment options as directed by the contractholder.  The Company also provides various forms of guarantees to benefit the related contractholders.  The Company provides five primary guarantee types:  (1) GMDB; (2) GMIB; (3) GMAB; (4) GLWB; and (5) a hybrid guarantee with GMAB and GLWB.

The GMDB, offered on every variable annuity contract, provides a specified minimum return upon death.  Many of these death benefits are spousal, whereby a death benefit will be paid upon death of the first spouse.  The survivor has the option to terminate the contract or continue it by having the death benefit paid into the contract and having a second death benefit paid upon the survivor’s death.

The GMAB, which was offered in the Company’s Capital Preservation Plus product, is a living benefit that provides the contractholder with a guaranteed return of deposits, adjusted proportionately for withdrawals, after a specified time period (5, 7 or 10 years) selected by the contractholder at the issuance of the variable annuity contract.  In some cases, the contractholder also has the option, after a specified time period, to drop the guarantee and continue the variable annuity contract without the GMAB.  In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy.

The GLWB, offered in the Company’s Lifetime Income product, is a living benefit that provides for enhanced retirement income security without the liquidity loss associated with annuitization.  The withdrawal rates vary based on the age when withdrawals begin and are applied to a benefit base to determine the guaranteed lifetime income amount available to a contractholder.  The benefit base is equal to the variable annuity premium at contract issuance and may increase as a result of a feature driven by account performance and policy duration.  Lifetime Income is the only living benefit guarantee offered on new variable annuity contract sales.

The GMIB, which was offered with several variable annuity contracts, is a living benefit that provides the contractholder with a guaranteed annuitization stream of income.

The following table summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts, as of the dates indicated (a contract may contain multiple guarantees):

	December 31, 2012				December 31, 2011
	General	Separate	Net		General	Separate	Net
	account	account	amount	Average	account	account	amount	Average
(in millions)	value	value	at risk1	age2	value	value	at risk1	age2
GMDB:
Return of net deposits	$      836	$14,963	$      24	64	$       999	$  11,749	$     175	63
Minimum return or anniversary contract value	2,048	29,787	561	68	2,233	28,754	1,882	67
Total GMDB	$   2,884	$44,750	$    585	66	$    3,232	$  40,503	$  2,057	66
GMAB Return of net deposits	$      165	$   3,230	$      12	64	$       342	$    4,138	$     149	65
GLWB Minimum return or anniversary contract value	$      128	$22,031	$    613	65	$       380	$  17,533	$     573	65
GMIB Minimum return or anniversary contract value	$        49	$      514	$         1	65	$         50	$       556	$         1	65

1 Net amount at risk is calculated on a policy-level basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).

2 Represents the weighted average attained age of contractholders.

20

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes the reserve balances for variable annuity contracts with guarantees, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
GLWB	$                   600	$                 1,624
GMAB	$                     57	$                    218
GMDB	$                     65	$                      80
GMIB	$                       2	$                        3

Paid claims for GMDBs were $30 million and $40 million for the years ended December 31, 2012 and 2011, respectively.

Paid claims for GLWBs, GMABs and GMIBs were immaterial for the years ended December 31, 2012 and 2011.

The following table summarizes account balances of deferred variable annuity contracts with guarantees invested in separate accounts, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
Mutual funds:
Bond	$               5,634	$                 5,117
Domestic equity	35,277	31,618
International equity	2,614	2,447
Total mutual funds	$             43,525	$               39,182
Money market funds	1,225	1,321
Total1	$             44,750	$               40,503

1 Excludes $26.7 billion and $24.7 billion as of December 31, 2012 and 2011, respectively, of separate account assets not related to deferred variable annuity contracts with guarantees and are primarily attributable to retirement plan, variable universal life and COLI products.

The Company did not transfer any assets from the general account to the separate account to cover guarantees for any of its variable annuity contracts during the years ended December 31, 2012 and 2011.

Universal and Variable Universal Life Insurance Contracts

The Company offers certain universal life and variable universal life insurance products with secondary guarantees.  This no- lapse guarantee provides that a policy will not lapse so long as the policyholder makes minimum premium payments.   The reserve balances on these guarantees were $216 million and $162 million as of December 31, 2012 and 2011, respectively.  Paid claims on contracts maintained in force by these guarantees were immaterial for the years ended December 31, 2012 and 2011.

21

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes information regarding universal and variable universal life insurance contracts with no-lapse guarantees invested in general and separate accounts, as of the dates indicated:

(in millions)	General account value	Separate account value	Adjusted insurance in force1	Average age2
December 31, 2012	$                   992	$                      328	$                12,321	56
December 31, 2011	$                    843	$                        311	$                    9,777	58

1 The adjusted insurance in force is calculated on a policy-level basis and equals the respective guaranteed death benefit less the account value (or zero if the account value exceeds the guaranteed benefit).

2 Represents the weighted average attained age of contractholders.

(5) Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs

The following table summarizes changes in the DAC balance, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	20111	20101
Balance at beginning of year	$                3,487	$                3,125	$                3,107
Capitalization of DAC	470	604	501
Amortization of DAC, excluding unlocks	(525)	(200)	(290)
Amortization of DAC related to unlocks	(50)	135	(9)
Adjustments to DAC related to unrealized gains and losses on securities   available-for-sale
	(133)	(177)	(184)
Balance at end of year	$                3,249	$                3,487	$                3,125

1 The balances reflect a change in accounting principle, as described in Note 2.

During 2012, the Company incurred additional DAC amortization of $50 million related to the financial services operations as a result of the annual comprehensive review of model assumptions, as well as a deviation from equity market performance as compared to assumed net separate account returns.  The updated assumptions were primarily related to actual gross profits and the in force block of business deviating from expectations, renewal premiums, general account margins and lapses.

During 2011, the Company recognized a reduction in DAC amortization of $135 million related to the financial services operations as a result of the annual comprehensive review of model assumptions. The updated assumptions related to interest spread, mortality, maintenance expense and market performance assumptions. The 2011 reduction in DAC amortization reflects the impact of the retrospective change in accounting principle described in Note 2.

22

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Value of Business Acquired

The following table summarizes changes in the VOBA balance for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Balance at beginning of year	$                238	$                  259	$                  277
Amortization of VOBA, excluding unlocks	(22)	(29)	(33)
Amortization of VOBA related to unlocks	8	16	13
Net realized gains on investments	2	2	1
Adjustments to VOBA related to unrealized gains and losses on securities
available-for-sale	(2)	(10)	1
Balance at end of year	$                224	$                  238	$                  259

Interest on the unamortized VOBA balance (at interest rates ranging from 4.50% to 7.56%) is included in amortization and was $16 million, $17 million and $18 million during the years ended December 31, 2012, 2011 and 2010, respectively. Additionally, the VOBA gross carrying amount was $583 million and $585 million and accumulated amortization was $359 million and $347 million as of December 31, 2012 and 2011, respectively. The initial useful life related to the VOBA balances is 28 years.

Based on current assumptions, which are subject to change, the following table summarizes estimated amortization of VOBA for the next five years ended December 31:

(in millions)	VOBA
2013	$              20
2014	$              16
2015	$              15
2016	$              14
2017	$              13

23

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(6) Investments

Available-for-Sale Securities

The following table summarizes amortized cost, gross unrealized gains and losses and fair value of available-for-sale securities, as of the dates indicated:

		Gross	Gross
	Amortized	unrealized	unrealized	Fair
(in millions)	cost	gains	losses	value
December 31, 2012
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$          476	$         121	$               -	$         597
Obligations of states and political subdivisions	1,722	281	1	2,002
Debt securities issued by foreign governments	98	20	-	118
Corporate public securities	16,152	1,891	33	18,010
Corporate private securities	4,216	392	19	4,589
Residential mortgage-backed securities	4,506	267	106	4,667
Commercial mortgage-backed securities	1,219	133	15	1,337
Collateralized debt obligations	393	28	86	335
Other asset-backed securities	140	17	1	156
Total fixed maturity securities	$     28,922	$      3,150	$         261	$    31,811
Equity securities	15	5	-	20
Total available-for-sale securities	$     28,937	$      3,155	$         261	$    31,831
December 31, 2011
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$            506	$           124	$               -	$           630
Obligations of states and political subdivisions	1,501	177	-	1,678
Debt securities issued by foreign governments	102	18	-	120
Corporate public securities	14,132	1,336	111	15,357
Corporate private securities	3,998	327	27	4,298
Residential mortgage-backed securities	5,280	255	311	5,224
Commercial mortgage-backed securities	1,347	64	32	1,379
Collateralized debt obligations	410	17	125	302
Other asset-backed securities	201	16	4	213
Total fixed maturity securities	$       27,477	$        2,334	$           610	$      29,201
Equity securities	19	2	1	20
Total available-for-sale securities	$       27,496	$        2,336	$           611	$      29,221

The fair value of the Company’s investments may fluctuate significantly in response to changes in interest rates, investment quality ratings and credit spreads.  The Company has the ability and intent to hold equity securities until recovery.  The Company does not have the intent to sell, nor is it more likely than not it will be required to sell debt securities in an unrealized loss position.  Investment losses, however, may be realized to the extent liquidity needs require the disposition of securities in unfavorable interest rate, liquidity or credit spread environments.

24

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes the amortized cost and fair value of fixed maturity securities, by maturity, as of December 31, 2012.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without early redemption penalties.

	Amortized	Fair
(in millions)	cost	value
Fixed maturity securities:
Due in one year or less	$               1,394	$               1,433
Due after one year through five years	7,316	7,993
Due after five years through ten years	8,295	9,283
Due after ten years	5,659	6,607
Subtotal	$             22,664	$             25,316
Residential mortgage-backed securities	4,506	4,667
Commercial mortgage-backed securities	1,219	1,337
Collateralized debt obligations	393	335
Other asset-backed securities	140	156
Total fixed maturity securities	$             28,922	$             31,811

The following table summarizes components of net unrealized gains and losses, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
Net unrealized gains on available-for-sale securities, before adjustments, taxes and fair   value hedging	$          2,894	$          1,725
Change in fair value attributable to fixed maturity securities designated in fair value
hedging relationships	(4)	(8)
Net unrealized gains on available-for-sale securities, before adjustments and taxes	$          2,890	$          1,717
Adjustment to DAC and VOBA1	(482)	(347)
Adjustment to future policy benefits and claims	(295)	(183)
Adjustment to policyholder dividend obligation	(177)	(132)
Deferred federal income tax expense	(672)	(362)
Net unrealized gains on available-for-sale securities	$          1,264	$             693

1 The 2011 balance reflects a change in accounting principle, as described in Note 2.

25

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizesthe change in net unrealized gains and losses reported in accumulated other comprehensive income, for the years ended:

	December 31,	December 31,
(in millions)	2012	2011
Balance at beginning of year	$             693	$             376
Unrealized gains and losses arising during the period:
Net unrealized gains on available-for-sale securities before adjustments	990	896
Non-credit impairments and subsequent changes in fair value of those debt securities1	178	(11)
Net adjustments to DAC and VOBA2	(135)	(187)
Net adjustment to future policy benefits and claims	(112)	(210)
Net adjustment to policyholder dividend obligation	(45)	(42)
Related federal income tax expense	(308)	(147)
Change in unrealized gains on available-for-sale securities	$             568	$             299
Reclassification adjustment for net losses realized on available-for-sale securities, net of      tax benefit ($2 and $10 as of December 31, 2012 and 2011, respectively)	(3)	(18)
Change in net unrealized gains on available-for-sale securities	$             571	$             317
Balance at end of year	$          1,264	$             693

1 The non-credit portion of other-than-temporary impairments was $(48) million and $(226) million as of December 31, 2012 and 2011, respectively.

2 The 2011 balance reflects a change in accounting principle, as described in Note 2.

The following table summarizes available-for-sale securities, by asset class, in a gross unrealized loss position based on the amount of time each type of security has been in an unrealized loss position, as well as the related fair value and number of securities, as of the dates indicated:

	Less than or equal  to one year			More than one year			Total
		Gross	Number		Gross	Number		Gross	Number
	Fair	unrealized	of	Fair	unrealized	of	Fair	unrealized	of
(in millions, except number of securities)	value	losses	securities	value	losses	securities	value	losses	securities
December 31, 2012
Fixed maturity securities:
Corporate public securities	$      710	$          11	68	$       150	$          22	10	$        860	$           33	78
Residential mortgage-backed securities	89	2	12	1,029	104	190	1,118	106	202
Collateralized debt obligations	27	1	5	151	85	36	178	86	41
Other asset-backed securities	326	4	23	296	32	46	622	36	69
Total	$  1,152	$          18	108	$   1,626	$        243	282	$     2,778	$        261	390
December 31, 2011
Fixed maturity securities:
Corporate public securities	$    1,460	$           62	150	$        309	$           49	54	$      1,769	$          111	204
Residential mortgage-backed securities	278	9	52	1,339	302	240	1,617	311	292
Collateralized debt obligations	78	2	10	137	123	39	215	125	49
Other asset-backed securities	501	15	54	357	48	53	858	63	107
Total fixed maturity securities	$    2,317	$           88	266	$     2,142	$         522	386	$      4,459	$          610	652
Equity securities	7	1	10	-	-	31	7	1	41
Total	$    2,324	$           89	276	$     2,142	$         522	417	$      4,466	$          611	693

26

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes gross unrealized losses based on the ratio of fair value to amortized cost, for available-for-sale securities in an unrealized loss position, as of the dates indicated:

	December 31, 2012			December 31, 2011
	Less	More		Less	More
	than or	than		than or	than
	equal to	one		equal to	one
(in millions)	one year	year	Total	one year	year	Total
99.9% - 80.0%	$         18	$         85	$  103	$          83	$      158	$      241
Less than 80.0%
Residential mortgage-backed securities	-	50	50	-	191	191
Collateralized debt obligations	-	72	72	1	121	122
Other	-	36	36	5	52	57
Total	$         18	$      243	$  261	$          89	$      522	$      611

Residential mortgage-backed securities are assessed for impairment using default estimates based on loan level data, where available. Where loan level data is not available, a proxy based on collateral characteristics is used. The impairment assessment considers loss severity as a function of multiple factors, including unpaid balance, interest rate, mortgage insurance ratios, assessed property value at origination, change in property value, loan-to-value (“LTV”) ratio at origination and prepayment speeds. Cash flows generated by the collateral are then utilized, along with consideration for the issue’s position in the overall structure, to determine cash flows associated with the security.

Collateralized debt obligations are assessed for impairment using expected cash flows based on various inputs including default estimates based on the underlying corporate securities, historical and forecasted loss severities or other market inputs when recovery estimates are not feasible. When the collateral is regional bank and insurance company trust preferred securities, default estimates used to estimate cash flows are based on U.S. Bank Rating service data and broker research.

The Company believes the unrealized losses on these available-for-sale securities do not represent other-than-temporary impairments as the Company does not intend to sell the securities, it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis or the present value of estimated cash flows is equal to or greater than the amortized cost basis of the securities.  These unrealized losses represent temporary fluctuations in non-credit factors that are not indicative of other-than-temporary impairment.

27

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Mortgage Loans, Net of Allowance

The following table summarizes the amortized cost of mortgage loans by method of evaluation for credit loss, and the related valuation allowances by type of credit loss, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
Amortized cost:
Loans with non-specific reserves	$             5,820	$               5,672
Loans with specific reserves	51	136
Total amortized cost	$             5,871	$               5,808
Valuation allowance:
Non-specific reserves	$                   33	$                    33
Specific reserves	11	27
Total valuation allowance	$                   44	$                    60
Mortgage loans, net of allowance	$             5,827	$               5,748

The following table summarizes activity in the valuation allowance for mortgage loans, for the years ended:

	December 31,	December 31,
(in millions)	2012	2011
Balance at beginning of year	$                   60	$                    96
Current period provision	1	25
Recoveries1	(15)	(7)
Charge offs and other	(2)	(54)
Balance at end of year	$                   44	$                    60

__________

1 Includes recoveries on sales and increases in the valuations of loans with specific reserves.

The following table summarizes impaired mortgage loans by class, for the years ended:

(in millions)	Office	Warehouse	Retail	Apartment	Other	Total
December 31, 2012
Amortized cost	$         13	$              26	$         12	$                -	$             -	$            51
Specific reserves	(2)	(7)	(2)	-	-	$           (11)
Carrying value of impaired mortgage loans, net of allowance	$         11	$              19	$         10	$                -	$             -	$            40
December 31, 2011
Amortized cost	$            8	$               31	$          20	$                -	$           77	$           136
Specific reserves	(1)	(9)	(8)	-	(9)	(27)
Carrying value of impaired mortgage loans, net of allowance	$            7	$               22	$          12	$                -	$           68	$           109

28

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes average recorded investment and interest income recognized for impaired mortgage loans by class, for the years ended:

(in millions)	Office	Warehouse	Retail	Apartment	Other	Total
December 31, 2012
Average recorded investment	$           9	$              20	$         11	$                -	$          34	$            74
Interest income recognized	$           1	$                2	$           1	$                -	$            6	$            10
December 31, 2011
Average recorded investment	$            7	$               33	$          23	$             10	$           91	$           164
Interest income recognized	$            1	$                 5	$            3	$                -	$             8	$             17

As of December 31, 2012 and 2011, the Company’s mortgage loans classified as delinquent and/or in non-accrual status were immaterial in relation to the total mortgage loan portfolio.  The Company had no mortgage loans 90 days or more past due and still accruing interest.

Management evaluates the credit quality of individual mortgage loans and the portfolio as a whole through a number of loan quality measurements, including, but not limited to, LTV and debt service coverage (“DSC”) ratios. The LTV ratio is calculated as a ratio of the amortized cost of a loan to the estimated value of the underlying collateral. DSC is the amount of cash flow generated by the underlying collateral of the mortgage loan available to meet periodic interest and principal payments of the loan. This process identifies mortgage loans representing the lowest risk profile and lowest potential for loss and those representing the highest risk profile and highest potential for loss. These factors are updated and evaluated at least annually.

The following table summarizes the LTV ratio and DSC ratios of the mortgage loan portfolio, as of the dates indicated:

	LTV ratio				DSC ratio
(in millions)	Less than 80%	80% - less than 90%	90% or greater	Total	Greater than 1.10	1.00-1.10	Less than 1.00	Total
December 31, 2012:
Apartment	$   1,119	$       129	$         62	$   1,310	$   1,303	$           5	$           2	$   1,310
Warehouse	922	76	162	1,160	951	121	88	1,160
Office	776	55	42	873	783	16	74	873
Retail	1,940	250	86	2,276	2,139	92	45	2,276
Other	189	57	6	252	252	-	-	252
Total	$   4,946	$       567	$       358	$   5,871	$   5,428	$       234	$       209	$   5,871
Weighted-average DSC ratio	1.74	1.27	1.07	1.65	n/a	n/a	n/a	n/a
Weighted-average LTV ratio	n/a	n/a	n/a	n/a	66%	76%	96%	68%
December 31, 2011:
Apartment	$        805	$        245	$          89	$     1,139	$     1,112	$          23	$            4	$     1,139
Warehouse	1,015	123	149	1,287	1,153	53	81	1,287
Office	595	104	76	775	656	69	50	775
Retail	1,878	220	147	2,245	2,074	104	67	2,245
Other	172	63	127	362	284	11	67	362
Total	$     4,465	$        755	$        588	$     5,808	$     5,279	$        260	$        269	$     5,808
Weighted-average DSC ratio	1.77	1.29	1.15	1.64	n/a	n/a	n/a	n/a
Weighted-average LTV ratio	n/a	n/a	n/a	n/a	68%	81%	89%	69%

While the loan quality measurements contribute to management’s assessment of relative credit risk in the mortgage loan portfolio for the dates indicated based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.

29

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Securities Lending

The fair value of loaned securities was $130 million and $103 million as of December 31, 2012 and 2011, respectively.  The Company received $133 million and $105 million of cash collateral on securities lending as of December 31, 2012 and 2011, respectively. The Company did not receive any non-cash collateral on securities lending as of the balance sheet dates.

Assets on Deposit and Pledged as Collateral

Available-for-sale securities with a carrying value of $9 million and $8 million were on deposit with various regulatory agencies as required by law as of December 31, 2012 and 2011, respectively. Additionally, available-for-sale securities with a carrying value of $73 million were pledged as collateral to secure recoveries under reinsurance contracts and other financing agreements as of December 31, 2012. The Company had no amount pledged as collateral as of December 31, 2011. These securities primarily are included in fixed maturity securities in the consolidated balance sheets.

Tax Credit Funds

The Company has sold $859 million and $796 million in Tax Credit Funds to unrelated third parties as of December 31, 2012 and 2011, respectively.  The Company has guaranteed cumulative after-tax yields to the third party investors ranging from 1.00% to 7.75% through periods ending in 2027.  The Company held immaterial reserves on these transactions as of December 31, 2012 and 2011.  These guarantees are in effect for periods of approximately 15 years each.  The Tax Credit Funds provide a stream of tax benefits to the investors that will generate a yield and return of capital.  If the tax benefits are not sufficient to provide these cumulative after-tax yields, the Company must fund any shortfall.  The maximum amount of undiscounted future payments that the Company could be required to pay the investors under the terms of the guarantees is $288 million.  The Company’s risks are mitigated in the following ways: (1) the Company has the right to buyout the equity related to the guarantee under certain circumstances, (2) the Company may replace underperforming properties to mitigate exposure to guarantee payments and (3) the Company oversees the asset management of the deals. The Company does not anticipate making any material payments related to the guarantees.

Consolidated VIEs

The Company has relationships with VIEs where the Company is the primary beneficiary.  Net assets of all consolidated VIEs totaled $347 million and $345 million as of December 31, 2012 and 2011, respectively, which was composed primarily of other long-term investments of $348 million and $310 million as of December 31, 2012 and 2011, respectively.  The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs.

During 2010, two Tax Credit Funds were consolidated as a result of the adoption of guidance under FASB ASC 810, Consolidation.  Previously, the Company was not deemed the primary beneficiary.  As the managing member of the Tax Credit funds, the Company has the power to direct the activities that most significantly impact the economic power of the entities and consolidated the funds.  The impact of consolidation was an increase to noncontrolling interest of $46 million.

Unconsolidated VIEs

In addition to the consolidated VIEs described above, the Company holds investments in VIEs where the Company is not the primary beneficiary, which are primarily investments in Tax Credit Funds without guarantees to limited partners. The carrying value of these investments was $222 million and $220 million as of December 31, 2012 and 2011, respectively. In addition, the Company has made commitments for further investments in these VIEs of $66 million and $131 million as of December 31, 2012 and 2011, respectively.

30

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Net Investment Income

The following table summarizes net investment income by investment type, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Fixed maturity securities, available-for-sale	$               1,506	$                 1,502	$                 1,474
Mortgage loans	366	370	396
Policy loans	53	56	55
Other	(45)	(34)	(41)
Gross investment income	$               1,880	$                 1,894	$                 1,884
Investment expenses	55	50	59
Net investment income	$               1,825	$                 1,844	$                 1,825

Net Realized Investment Gains and Losses

The following table summarizes net realized investment gains and losses, by source, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Net derivative gains (losses)	$                314	$             (1,636)	$                (385)
Realized gains on sales	48	64	176
Realized losses on sales	(23)	(45)	(43)
Other	11	8	16
Net realized investment gains (losses)	$                350	$             (1,609)	$                (236)

Proceeds from the sale of available-for-sale securities were $796 million, $1.6 billion and $2.2 billion during the years ended December 31, 2012, 2011 and 2010, respectively.  Gross gains of $47 million, $50 million and $172 million and gross losses of $20 million, $39 million and $17 million were realized on sales of available-for-sale securities during the years ended December 31, 2012, 2011 and 2010, respectively.

31

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Other-Than-Temporary Impairment Losses

The following table summarizes other-than-temporary impairments, for the years ended:

		Included in other comprehensive income
(in millions)	Total		Net
December 31, 2012
Fixed maturity securities	$               68	$                (36)	$               32
Mortgage loans	(14)	-	(14)
Other	13	-	13
Other-than-temporary impairment losses	$               67	$                (36)	$               31
December 31, 2011
Fixed maturity securities	$              135	$                 (95)	$                40
Mortgage loans	25	-	25
Other	2	-	2
Other-than-temporary impairment losses	$              162	$                 (95)	$                67
December 31, 2010
Fixed maturity securities	$              330	$               (174)	$              156
Equity securities	5	-	5
Mortgage loans	59	-	59
Other-than-temporary impairment losses	$              394	$               (174)	$              220

The following table summarizes cumulative credit losses, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Cumulative credit loss at beginning of year1	$              328	$               340	$               417
New credit losses	18	8	31
Incremental credit losses	10	29	116
Losses related to securities included in the beginning balance sold or paid       down during the period	(67)	(49)	(202)
Losses related to securities included in the beginning balance for which there       was a change in intent	-	-	(22)
Cumulative credit loss at end of year1	$              289	$               328	$               340

__________

1 Cumulative credit losses are defined as the amounts related to the Company's credit portion of the other-than-temporary impairment losses on debt securities that the Company does not intend to sell and it is not more likely than not the Company will be required to sell the security prior to recovery of the amortized cost basis.

32

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(7) Derivative Instruments

The Company is exposed to certain risks related to its ongoing business operations which are managed using derivative instruments.

Interest rate risk management.  The Company uses interest rate contracts, primarily interest rate swaps, to reduce or alter interest rate exposure arising from mismatches between assets and liabilities. In the case of interest rate swaps, the Company enters into a contractual agreement with a counterparty to exchange, at specified intervals, the difference between fixed and variable rates of interest, calculated on a reference notional amount.

Interest rate swaps are used by the Company in association with fixed and variable rate investments to achieve cash flow streams that support certain financial obligations of the Company and to produce desired investment returns. As such, interest rate swaps are generally used to convert fixed rate cash flow streams to variable rate cash flow streams or vice versa. The Company also enters into interest rate swap transactions which are structured to provide a hedge against the negative impact of higher interest rates on the Company’s capital position.

Equity market and interest rate risk management.  The Company has a variety of variable annuity products with guaranteed benefit features. These products and related obligations expose the Company to various market risks, primarily equity and interest rate risk. Adverse changes in the equity markets or interest rate movements expose the Company to significant volatility. To mitigate these risks and hedge the guaranteed benefit obligations, the Company enters into a variety of derivatives including interest rate swaps, equity index futures, options and total return swaps.

Foreign currency risk management.  As part of its regular investing activities, the Company may purchase foreign currency denominated investments. These investments and the associated income expose the Company to volatility associated with movements in foreign exchange rates. To mitigate this risk, the Company uses cross-currency swaps and futures. As foreign exchange rates change, the increase or decrease in the cash flows of the derivative instrument generally offsets the changes in the functional-currency equivalent cash flows of the hedged item.

Credit risk management.  The Company enters into credit derivative contracts, primarily credit default swaps, under which the Company buys and sells credit default protection on specific corporate creditors. These derivatives allow the Company to manage or modify its credit risk profile in general or its credit exposure to specific creditors.

Derivatives Qualifying for Hedge Accounting

The Company uses derivative instruments that are designated and qualify as fair value hedges in various financial transactions as follows:

· interest rate swaps are used to hedge certain fixed rate investments such as mortgage loans and certain fixed maturity securities and

· cross-currency swaps are used to hedge foreign currency-denominated fixed maturity securities.

The Company uses derivative instruments that are designated and qualify as cash flow hedges in various financial transactions as follows:

· interest rate swaps are used to hedge cash flows from variable rate investments such as mortgage loans and certain fixed maturity securities and to hedge payments of certain liabilities and

· cross-currency swaps are used to hedge interest payments and principal payments on foreign currency-denominated financial instruments.

33

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Derivatives Not Qualifying for Hedge Accounting

The Company uses derivatives not qualifying for hedge accounting in various financial transactions as follows:

· futures, options, interest rate swaps and total return swaps are used to economically hedge certain guaranteed benefit obligations included in variable annuity products,

· interest rate swaps, futures and options are used to economically hedge portfolio duration and other interest rate risks to which the Company is exposed,

· cross-currency swaps and futures are used to economically hedge foreign currency-denominated assets and liabilities and

· credit default swaps are used to either buy or sell credit protection on a specific creditor.

Credit Risk Associated with Derivatives Transactions

The Company periodically evaluates the risks within the derivative portfolios due to credit exposure.  When evaluating this risk, the Company considers several factors which include, but are not limited to, the counterparty credit risk associated with derivative receivables, the Company’s own credit as it relates to derivative payables, the collateral thresholds associated with each counterparty and changes in relevant market data in order to gain insight into the probability of default by the counterparty. In addition, the impact the Company’s exposure to credit risk could have on the effectiveness of the Company’s hedging relationships is considered.  As of December 31, 2012 and 2011, the impact of the exposure to credit risk on the fair value measurement of derivatives and the effectiveness of the Company’s hedging relationships was immaterial.

The following table summarizes the fair value and related notional amounts of derivative instruments, as of the dates indicated:

	Derivative assets		Derivative liabilities
(in millions)	Fair value	Notional	Fair value	Notional
December 31, 2012
Derivatives designated and qualifying as hedging instruments	$              4	$               79	$            21	$            192
Derivatives not designated as hedging instruments:
Interest rate contracts	$      1,960	$       21,216	$      2,065	$       23,746
Equity contracts	822	7,445	-	-
Total Return Swaps	4	1,513	32	1,551
Other derivative contracts	-	10	5	17
Total derivative positions1	$      2,790	$       30,263	$      2,123	$       25,506
December 31, 2011
Derivatives designated and qualifying as hedging instruments	$             11	$              145	$             29	$              310
Derivatives not designated as hedging instruments:
Interest rate contracts	$        2,182	$         21,732	$        2,142	$         20,955
Equity contracts	1,004	7,162	-	-
Total Return Swaps	10	892	37	2,409
Other derivative contracts	1	13	7	17
Total derivative positions1	$        3,208	$         29,944	$        2,215	$         23,691

_________

1 Derivative assets and liabilities are included in other assets and other liabilities, respectively, in the consolidated balance sheets.

34

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The Company’s derivative positions, primarily offset by master netting agreements and collateral received from or posted with counterparties, resulted in immaterial net uncollateralized derivative asset and liability positions as of December 31, 2012 and 2011. As of December 31, 2012 and 2011, the Company held cash collateral from derivative counterparties of $798 million and $1.0 billion, respectively. The Company did not hold securities as off-balance sheet collateral as of December 31, 2012 and 2011. As of December 31, 2012 and 2011, the Company had posted cash collateral of $228 million and $223 million, respectively, and pledged securities with a fair value of $148 million and $152 million, respectively, with derivative counterparties.

The fair value of embedded derivatives on life and annuity programs was $748 million and $1.9 billion as of December 31, 2012 and 2011, respectively, which is included in future policy benefits and claims in the consolidated balance sheets.

The following table summarizes gains and losses for derivative instruments recognized in net realized investment gains and losses in the consolidated statements of operations, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Derivatives designated and qualifying as hedging instruments	$              (1)	$               (4)	$               (9)
Derivatives not designated as hedging instruments:
Interest rate contracts	$         (125)	$             (44)	$             (39)
Equity contracts	(665)	(45)	(389)
Total return swaps	(343)	(17)	(136)
Other derivative contracts	(1)	(6)	(20)
Net interest settlements	53	34	16
Total derivative losses1	$      (1,082)	$             (82)	$           (577)
Change in embedded derivatives on guaranteed benefit annuity programs2	1,185	(1,674)	98
Other revenue on guaranteed benefit annuity programs	211	120	94
Change in embedded derivative liabilities and related fees	$        1,396	$        (1,554)	$            192
Net realized derivative gains (losses)	$           314	$        (1,636)	$           (385)

_________

1 Included in total derivative losses are economic hedging losses of $827 million, gains of $1.0 billion, and losses of $347 million related to the guaranteed benefit annuity programs for the years ended December 31, 2012, 2011 and 2010, respectively.

2 As part of the Company’s annual comprehensive review of DAC model assumptions, all relevant assumptions impacting the fair value of embedded derivatives on guaranteed benefit annuity programs are also reviewed and updated. For the individual variable annuity business, the change in the embedded derivatives on guaranteed benefit annuity programs for the year ended December 31, 2012 includes updated assumptions in lapse, mortality, withdrawal behavior and benefit utilization. The change in embedded derivatives on guaranteed benefit annuity programs for the year ended December 31, 2011 includes updated assumptions in lapse, mortality and withdrawal behavior. Refer to Note 2 for further discussion of the annual review of DAC model assumptions.

35

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(8) Fair Value Measurements

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2012:

(in millions)	Level 1	Level 2	Level 3	Total
Assets
Investments:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$        592	$             2	$             3	$          597
Obligations of states and political subdivisions	-	2,002	-	2,002
Debt securities issued by foreign governments	73	45	-	118
Corporate public securities	1	17,890	119	18,010
Corporate private securities	-	3,817	772	4,589
Residential mortgage-backed securities	484	4,173	10	4,667
Commercial mortgage-backed securities	-	1,335	2	1,337
Collateralized debt obligations	-	53	282	335
Other asset-backed securities	-	147	9	156
Total fixed maturity securities at fair value	$     1,150	$  29,464	$     1,197	$     31,811
Equity securities	-	12	8	20
Short-term investments	45	989	-	1,034
Trading securities	-	-	54	54
Total other investments at fair value	$          45	$     1,001	$          62	$       1,108
Investments at fair value	$     1,195	$  30,465	$     1,259	$     32,919
Derivative assets	-	1,968	822	2,790
Separate account assets	68,185	1,230	2,025	71,440
Assets at fair value	$  69,380	$  33,663	$     4,106	$  107,149
Liabilities
Future policy benefits and claims:
Living benefits	$              -	$              -	$      (657)	$         (657)
Indexed products	-	-	(91)	(91)
Total future policy benefits and claims	$              -	$              -	$      (748)	$         (748)
Derivative liabilities	-	(2,118)	(5)	(2,123)
Liabilities at fair value	$              -	$   (2,118)	$      (753)	$     (2,871)

36

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2012:

	Balance as of					Transfers	Transfers	Balance as of
	December 31,	Net gains (losses)				into	out of	December 31,
(in millions)	2011	In operations1	In OCI	Purchases	Sales	Level 3	Level 3	2012
Assets
Investments:
Fixed maturity securities:
Corporate private securities	$         1,209	$                   2	$        13	$         69	$   (187)	$        40	$     (374)	$             772
Collateralized debt obligations	247	2	53	36	(56)	-	-	282
Other fixed maturity securities	135	-	11	2	(13)	11	(3)	143
Total fixed maturity securities at fair value2	$         1,591	$                   4	$        77	$       107	$   (256)	$        51	$     (377)	$          1,197
Other investments at fair value	43	16	3	-	-	-	-	62
Derivative assets3	1,004	(353)	-	350	(179)	-	-	822
Separate account assets	1,952	73	-	-	-	-	-	2,025
Assets at fair value	$         4,590	$              (260)	$        80	$       457	$   (435)	$        51	$     (377)	$          4,106
Liabilities
Future policy benefits and claims:
Living benefits	$        (1,842)	$            1,185	$           -	$            -	$         -	$           -	$           -	$           (657)
Indexed products	(63)	(28)	-	-	-	-	-	(91)
Total future policy benefits and claims	$        (1,905)	$            1,157	$           -	$            -	$         -	$           -	$           -	$           (748)
Derivative liabilities3	(6)	1	-	-	-	-	-	(5)
Liabilities at fair value	$        (1,911)	$            1,158	$           -	$            -	$         -	$           -	$           -	$           (753)

__________

1 Net gains and losses included in operations are reported in net realized investment gains and losses, other-than-temporary impairment losses and interest credited to policyholder accounts. The net unrealized gains on separate account assets is attributable to contractholders and therefore is not included in the Company’s earnings. The change in unrealized gains (losses) in operations on assets and liabilities still held as of the end of the year was $16 million for other investments at fair value, $(257) million for derivative assets, $1.2 billion for future policy benefits and claims and $(1) million for derivative liabilities.

2 Non-binding broker quotes were utilized to determine fair value of $1.1 billion of total fixed maturity securities as of December 31, 2012.

3 Non-binding broker quotes were utilized to determine fair value of all Level 3 derivative assets and liabilities.

During the year ended December 31, 2012, transfers from Level 1 to Level 2 within the debt securities issued by foreign governments were $42 million. There were no transfers from Level 2 to Level 1 during the year ended December 31, 2012.

Transfers into and out of Level 3 during the year ended December 31, 2012 represent changes in the sources used to price certain securities and the Company’s assumptions related to the observability of certain inputs.

As discussed in Note 2, the valuation of embedded derivatives in living benefit guarantees incorporates many inputs, including significant unobservable inputs for mortality, lapse rates, wait period and benefit utilization. The Company derives these inputs, which vary widely by product, attained age, policy duration, benefits in the money and the existence of surrender charges, from current experience and industry data. The fair value for these benefits is calculated as the mean of discounted cash flows across numerous random scenarios, an approach that is commonly used by the insurance industry for this type of valuation. This process considers a broader range of assumptions than what would be found in a standard deterministic approach.

37

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes significant unobservable inputs used for fair value measurements for living benefits liabilities classified as Level 3 as of December 31, 2012:

Unobservable Inputs	Range
Mortality	0.1%-8%2
Lapse	0%-35%
Wait period	0 yrs – 30 yrs3
Efficiency of benefit utilization1	70%-100%
Non-performance risk	See footnote 4
Index volatility	15%-25%

__________

1 The unobservable input is not applicable to GMABs.

2 Represents the mortality for the majority of business with living benefits, with policyholders ranging from 45 to 85.

3 A portion of the contractholders could never use the benefit, which would extend the range to an indeterminate period.

4 To reflect non-performance risk, benefits paid to policyholders are assumed to be reduced by 10% within the discounted cash flows projection whenever the S&P index is simulated to go below a certain threshold designed to represent non-performance.

The following changes in any of the significant unobservable inputs presented in the table above may result in a change in the fair value measurements of the living benefits liability:

Higher mortality rates tend to decrease the value of the liability and lower mortality rates tend to increase the value of the liability.

Higher lapse rates tend to decrease the value of the liability and lower lapse rates tend to increase the value of the liability.  Factors that impact the predicted lapse rate can include: age, policy duration, policy size, benefit in-the-moneyness and applicable surrender charges.  All else being equal, policies that are in-the-money will have lower lapse rates than policies that are out-of-the-money, and policies that have a surrender charge present will have lower lapse rates than policies without a surrender charge.

The assumed wait period and the efficiency of utilization determine the timing and amount of living benefits withdrawals.  These assumptions vary by the product type, age of the policyholder and policy duration.  Many products have a bonus feature which enhances the guarantee on every policy anniversary for the first ten years so long as withdrawals have not commenced.  All else being equal, policies commencing withdrawals at a time around the year ten bonus will have higher liability values than policies commencing withdrawals 20 years after issue or policies commencing withdrawals only one year after issue.  In addition, policies that are assumed to withdraw the maximum permitted amount will have a higher liability value than a policy that is assumed to withdraw less than the maximum allowed amount.

Higher non-performance risk tends to decrease the value of the liability and lower non-performance risk tends to increase the value of the liability.

Higher index volatility tends to increase the value of the liability and lower index volatility tends to decrease the value of the liability.

Separate Accounts

The Company’s separate account assets include an investment in a mutual fund with a non-readily determinable fair value. Net asset value has been used to estimate the fair value of this investment as a practical expedient. The investments are included in Level 3 as they may not be redeemed until a seven year guarantee period expires in 2016. The investment strategy of this fund is to build a portfolio where the assets shall be sufficient to achieve a target portfolio value by the end of the seven year guarantee period. The net asset value of this fund reported in separate account assets was $1.6 billion and $1.3 billion as of December 31, 2012 and 2011, respectively.

38

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2011:

(in millions)	Level 1	Level 2	Level 3	Total
Assets
Investments:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$         620	$             6	$             4	$         630
Obligations of states and political subdivisions	-	1,678	-	1,678
Debt securities issued by foreign governments	120	-	-	120
Corporate public securities	1	15,239	117	15,357
Corporate private securities	-	3,089	1,209	4,298
Residential mortgage-backed securities	563	4,653	8	5,224
Commercial mortgage-backed securities	-	1,377	2	1,379
Collateralized debt obligations	-	55	247	302
Other asset-backed securities	-	209	4	213
Total fixed maturity securities at fair value	$      1,304	$    26,306	$      1,591	$    29,201
Equity securities	1	14	5	20
Short-term investments	23	1,102	-	1,125
Trading securities	-	-	38	38
Total other investments at fair value	$           24	$      1,116	$           43	$      1,183
Investments at fair value	$      1,328	$    27,422	$      1,634	$    30,384
Derivative assets	-	2,204	1,004	3,208
Separate account assets	62,242	1,000	1,952	65,194
Assets at fair value	$    63,570	$    30,626	$      4,590	$    98,786
Liabilities
Future policy benefits and claims:
Living benefits	$              -	$              -	$     (1,842)	$     (1,842)
Indexed products	-	-	(63)	(63)
Total future policy benefits and claims	$              -	$              -	$     (1,905)	$     (1,905)
Derivative liabilities	-	(2,209)	(6)	(2,215)
Liabilities at fair value	$              -	$     (2,209)	$     (1,911)	$     (4,120)

39

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2011:

	Balance as of					Transfers	Transfers	Balance as of
	December 31,	Net gains (losses)				into	out of	December 31,
(in millions)	2010	In operations1	In OCI	Purchases	Sales	Level 3	Level 3	2011
Assets
Investments:
Fixed maturity securities:
Corporate private securities	$         1,161	$               (10)	$        26	$       161	$   (242)	$      163	$       (50)	$          1,209
Collateralized debt obligations	191	(2)	5	87	(34)	-	-	247
Other fixed maturity securities	143	5	4	57	(63)	4	(15)	135
Total fixed maturity securities at fair value	$         1,495	$                 (7)	$        35	$       305	$   (339)	$      167	$       (65)	$          1,591
Other investments at fair value	45	(4)	-	5	(3)	-	-	43
Derivative assets	211	131	-	719	(57)	-	-	1,004
Separate account assets	1,805	147	-	-	-	-	-	1,952
Assets at fair value	$         3,556	$               267	$        35	$    1,029	$   (399)	$      167	$       (65)	$          4,590
Liabilities
Future policy benefits and claims:
Living benefits	$          (168)	$          (1,674)	$           -	$            -	$         -	$           -	$           -	$        (1,842)
Indexed products	(58)	(5)	-	-	-	-	-	(63)
Total future policy benefits and claims	$          (226)	$          (1,679)	$           -	$            -	$         -	$           -	$           -	$        (1,905)
Derivative liabilities	(4)	(2)	-	-	-	-	-	(6)
Liabilities at fair value	$          (230)	$          (1,681)	$           -	$            -	$         -	$           -	$           -	$        (1,911)

__________

1 Net gains and losses included in operations are reported in net realized investment gains and losses, other-than-temporary impairment losses and interest credited to policyholder account values. The net unrealized gains on separate account assets is attributable to contractholders and therefore is not included in the Company’s earnings. The change in unrealized gains (losses) in operations on assets and liabilities still held at the end of the year was $(6) million for other investments at fair value, $154 million for derivative assets and $(1.7) million for future policy benefits and claims.

Transfers into and out of Level 3 during the year ended December 31, 2011 represent changes in the sources used to price certain securities. There were no significant transfers between Levels 1 and 2 during the year ended December 31, 2011, except certain separate accounts previously included in Level 2.

Fair Value Option

The Company assesses the fair value option election for newly acquired financial assets or liabilities on a prospective basis. Except for synthetic collateralized debt obligations, there are no material assets or liabilities for which the Company elected the fair value option.

Fair Value on a Nonrecurring Basis

The Company measures certain mortgage loans at fair value, or fair value of the collateral, on a non-recurring basis subsequent to their initial recognition, due to impairments or foreclosures recorded during the year. In determining the fair value for these mortgage loans, the Company primarily uses the direct capitalization method based on management’s view of current market capitalization rates.  Alternatively, the Company may use a discounted cash flow methodology or an independently provided appraisal of value.  Each of these methodologies is considered to represent a Level 3 fair value measurement.  Refer to Note 6 for further discussion of the carrying value of impaired mortgage loans.

40

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Financial Instruments Not Carried at Fair Value

The following table summarizes the carrying value and fair value of the Company’s financial instruments not carried at fair value as of the dates indicated.  The valuation techniques used to estimate these fair values are described below.

			December 31, 2012		December 31, 2011
	Carrying	Fair			Carrying	Fair
(in millions)	value	value	Level 2	Level 3	value	value
Assets
Investments:
Mortgage loans, net of allowance	$                5,827	$            5,988	$                     -	$            5,988	$        5,748	$         5,861
Policy loans	$                   980	$               980	$                     -	$               980	$        1,008	$         1,008
Liabilities
Investment contracts	$              20,123	$         19,561	$                     -	$         19,561	$      18,318	$       17,992
Short-term debt	$                   300	$               300	$                     -	$               300	$           777	$            777
Long-term debt	$                1,038	$            1,323	$            1,282	$                 41	$           991	$         1,081

Mortgage loans, net of allowance.  The fair values of mortgage loans are estimated using discounted cash flow analyses based on interest rates currently being offered for similar loans to borrowers with similar credit ratings.

Policy loans.  The carrying amount reported in the consolidated balance sheets approximates fair value.

Investment contracts.  For investment contracts without defined maturities, fair value is the amount payable on demand, net of surrender charges.  For investment contracts with known or determined maturities, fair value is estimated using discounted cash flow analysis.  Interest rates used in this analysis are similar to currently offered contracts with maturities consistent with those remaining for the contracts being valued.

Short-term debt.  The carrying amount reported in the consolidated balance sheets approximates fair value.

Long-term debt.  The fair values for long-term debt are based on estimated market prices using observable inputs from similar debt instruments.

(9) Goodwill

The following table summarizes changes in the carrying value of goodwill by segment for the years indicated:

(in millions)	Retirement Plans	Individual Products & Solutions - Life and NBSG	Total
Balance as of December 31, 2010	$               25	$             175	$             200
Adjustments	-	-	-
Balance as of December 31, 2011	$               25	$             175	$             200
Adjustments	-	-	-
Balance as of December 31, 2012	$              25	$            175	$            200

The Company’s annual impairment testing did not result in any impairment on existing goodwill during 2012, 2011 and 2010.  As of the 2012, 2011 and 2010 annual impairment testing, the fair value of the reporting units with goodwill was in excess of the carrying value.  The goodwill balances as of December 31, 2012 and 2011 have not been previously impaired.

41

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(10) Closed Block

The amounts shown in the following tables for assets, liabilities, revenues and expenses of the closed block are those that enter into the determination of amounts that are to be paid to policyholders.

The following table summarizes financial information for the closed block, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
Liabilities:
Future policyholder benefits	$           1,732	$            1,761
Policyholder funds and accumulated dividends	142	143
Policyholder dividends payable	24	27
Policyholder dividend obligation	198	156
Other policy obligations and liabilities	32	26
Total liabilities	$           2,128	$            2,113
Assets:
Fixed maturity securities, available-for-sale	$           1,511	$            1,424
Mortgage loans, net of allowance	183	210
Policy loans	164	170
Other assets	77	105
Total assets	$           1,935	$            1,909
Excess of reported liabilities over assets	193	204
Portion of above representing other comprehensive income:
Increase in unrealized gain on fixed maturity securities available-for-sale	$                45	$                 42
Adjustment to policyholder dividend obligation	(45)	(42)
Total	$                    -	$                    -
Maximum future earnings to be recognized from assets and liabilities	$              193	$               204
Other comprehensive income:
Fixed maturity securities available-for-sale:
Fair value	$           1,511	$            1,424
Amortized cost	1,334	1,292
Shadow policyholder dividend obligation	(177)	(132)
Net unrealized appreciation	$                   -	$                    -

42

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table summarizes closed block operations for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Revenues:
Premiums	$           73	$            77	$            83
Net investment income	98	102	101
Realized investment gains (losses)	1	(3)	(3)
Realized losses credited to policyholder benefit obligation	(5)	(1)	(1)
Total revenues	$         167	$          175	$          180
Benefits and expenses:
Policy and contract benefits	$         134	$          145	$          131
Change in future policyholder benefits and interest credited to
policyholder accounts	(27)	(35)	(23)
Policyholder dividends	50	55	56
Change in policyholder dividend obligation	(8)	(8)	(3)
Other expenses	1	1	1
Total benefits and expenses	$         150	$          158	$          162
Total revenues, net of benefits and expenses, before federal income
tax expense	$           17	$            17	$            18
Federal income tax expense	6	6	6
Revenues, net of benefits and expenses and federal income tax
expense	$           11	$            11	$            12
Maximum future earnings from assets and liabilities:
Beginning of period	$         204	$          215	$          227
Change during period	(11)	(11)	(12)
End of period	$         193	$          204	$          215

Cumulative closed block earnings from inception through December 31, 2012, 2011 and 2010 were higher than expected as determined in the actuarial calculation.  Therefore, policyholder dividend obligations (excluding the adjustment for unrealized gains on available-for-sale securities) were $21 million, $23 million and $31 million as of December 31, 2012, 2011 and 2010, respectively.

43

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(11) Short-Term Debt

The Company classifies debt as short-term if the maturity date at inception is less than one year and all other debt instruments as long-term.

The following table summarizes short-term debt and weighted average annual interest rates, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
$600 million commercial paper program (0.29% and 0.30%, respectively)	$                   300	$                    300
$600 million promissory note and line of credit (1.90% and 1.73%, respectively)	-	477
Total short-term debt	$                   300	$                    777

In March 2012, NLIC entered into an agreement with the FHLB that allows the Company access to borrow up to $250 million and expires on March 21, 2013. The Company had $10.2 billion in eligible collateral and no amounts outstanding under the agreement as of December 31, 2012. Additionally, as part of the agreement, NLIC purchased $25 million in capital stock with the FHLB.

In May 2011, NMIC, NFS, and NLIC entered into a $600 million revolving variable rate credit facility upon expiration of its existing facility of the same amount. The new facility matures on May 6, 2015 and is subject to various covenants, as defined in the agreement.  NLIC had no amounts outstanding under the facility as of December 31, 2012 and 2011.

In April 2011, the Company entered into a $600 million unsecured revolving promissory note and line of credit agreement with its parent company, NFS. Outstanding principal balances of the line of credit bear interest at the rate of six-month U.S. LIBOR plus 1.25%. Interest is due and payable as of the last day of each interest period, as defined in the agreement, while there are outstanding principal balances.  As of December 31, 2012, the agreement was cancelled with no outstanding balance.

The Company has entered into an agreement with its custodial bank to borrow against the cash collateral that is posted in connection with its securities lending program.  The maximum amount available under the agreement is $350 million.  The borrowing rate on this program is equal to one-month U.S. LIBOR.  The Company had no amounts outstanding under this agreement as of December 31, 2012 and 2011.

The terms of each debt instrument contain various restrictive covenants, including, but not limited to, minimum statutory surplus and minimum net worth requirements, and maximum debt to tangible net worth requirements, as defined in the agreements.  The Company was in compliance with all covenants as of December 31, 2012 and 2011.

The amount of interest paid on short-term debt was $6 million in 2012, $5 million in 2011 and immaterial in 2010.

(12) Long-Term Debt

The following table summarizes long-term debt, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	2011
8.15% surplus note, due June 26, 2032, payable to NFS	$                   300	$                    300
7.50% surplus note, due December 17, 2031, payable to NFS	300	300
6.75% surplus note, due December 23, 2033, payable to NFS	100	100
Variable funding surplus note, due December 31, 2040	297	285
Other	41	6
Total long-term debt	$               1,038	$                    991

44

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

On December 31, 2010, Olentangy Reinsurance, LLC, a special purpose financial captive insurance subsidiary of NLAIC domiciled in the State of Vermont, issued a variable funding surplus note due on December 31, 2040 to Nationwide Corporation, a majority-owned subsidiary of NMIC.  The note is redeemable in full or partial amount at any time subject to proper notice and approval. A redemption premium shall be payable if the note is redeemed on or prior to the third anniversary date of the note’s issuance. The note bears interest at the rate of three-month U.S. LIBOR plus 2.80% payable quarterly. Olentangy Reinsurance, LLC agrees to draw down or reduce principal amounts in accordance with the terms outlined in the purchase agreement.  The maximum amount outstanding under the agreement is $313 million in 2016. The Company made interest payments on this surplus note totaling $10 million and $9 million for the years ending December 31, 2012 and 2011, respectively. Any payment of interest or principal on the note requires the prior approval of the State of Vermont.

The Company made interest payments to NFS on surplus notes totaling $54 million for the years ended December 31, 2012, 2011 and 2010. Payments of interest and principal under the notes require the prior approval of the ODI.

(13) Federal Income Taxes

The following table summarizes the federal income tax expense (benefit) attributable to income (loss) before loss attributable to noncontrolling interests, for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	20111	20101
Current tax (benefit) expense	$               (144)	$                    55	$                  (91)
Deferred tax expense (benefit)	243	(482)	103
Total tax expense (benefit)	$                   99	$                (427)	$                    12

________

1 The balances reflect a change in accounting principle, as described in Note 2.

The following table summarizes how the total federal income tax expense (benefit) differs from the amount computed by applying the U.S. federal income tax rate to income (loss) before loss attributable to noncontrolling interests, for the years ended:

		December 31, 2012			December 31, 20111			December 31, 20101
(in millions)		Amount	%		Amount	%		Amount	%
Rate reconciliation:
	Computed (expected tax expense (benefit))	$      245	35	%	$      (297)	35	%	$         59	35	%
	Dividends received deduction	(75)	(11)	%	(99)	12	%	(50)	(29)	%
	Impact of noncontrolling interest	21	3	%	20	(3)	%	21	12	%
	Tax credits	(85)	(12)	%	(30)	3	%	(27)	(16)	%
	Change in tax contingency reserve	(4)	(1)	%	(15)	2	%	(5)	(3)	%
	Other, net	(3)	-	%	(6)	1	%	14	8	%
Total		$        99	14	%	$      (427)	50	%	$         12	7	%

_________

1 The balances reflect a change in accounting principle, as described in Note 2.

The Company’s current federal income tax receivable was $61 million and $16 million as of December 31, 2012 and 2011, respectively.

Total federal income taxes (refunded) paid were $(95) million, $121 million, and $(35) million for the years ended December 31, 2012, 2011, and 2010, respectively.

45

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

No material changes in estimated income tax expense were recorded in 2012 or 2010.  During 2011, the Company recorded a tax benefit of $10 million primarily related to differences between the 2010 estimated tax liability and the amounts reported on the Company’s 2010 tax return. These changes in estimates were primarily driven by the Company’s separate account dividends received deduction (“DRD”).

As of December 31, 2012, the Company has $87 million in low-income-housing credit carryforwards, which expire between 2024 and 2032, and $169 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward. In addition, the Company has $32 million in foreign tax credit carryforwards which expire between 2019 and 2022. The Company expects to fully utilize all carryforwards.

The following table summarizes the tax effects of temporary differences that gave rise to significant components of the net deferred tax (liability) asset included in other assets in the consolidated balance sheets, as of the dates indicated:

	December 31,	December 31,
(in millions)	2012	20111
Deferred tax assets:
Future policy benefits and claims	$               1,295	$                 1,193
Derivatives	94	574
Tax credit carryforwards	288	185
Other	478	330
Gross deferred tax assets	$               2,155	$                 2,282
Valuation allowance	(18)	(18)
Net deferred tax assets	$               2,137	$                 2,264
Deferred tax liabilities:
Deferred policy acquisition costs	$                 (874)	$                  (963)
Available-for-sale securities	(1,338)	(840)
Value of business acquired	(81)	(86)
Other	(158)	(148)
Gross deferred tax liabilities	$              (2,451)	$               (2,037)
Net deferred tax (liability) asset	$                 (314)	$                    227

_________

1 The balances reflect a change in accounting principle, as described in Note 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.  Valuation allowances are established when necessary to reduce the deferred tax assets to amounts expected to be realized.  The valuation allowance was $18 million as of December 31, 2012 and 2011.  There was no change in valuation allowance for the year ended December 31, 2012 or 2010, while there was a change of $6 million for the year ended December 31, 2011.   Based on management’s analysis, it is more likely than not that the results of future operations and the implementation of tax planning strategies will generate sufficient taxable income to enable the Company to realize the deferred tax assets for which the Company has not established valuation allowances.

46

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following table is a rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties:

(in millions)	2012	2011	2010
Balance at beginning of period	$                76	$               119	$                 95
Additions for current year tax positions	(2)	9	18
Additions for prior years tax positions	25	-	19
Reductions for prior years tax positions	(63)	(52)	(13)
Balance at end of period	$                36	$                 76	$               119

The Company does not anticipate any significant changes to unrecognized tax benefits during the next twelve months.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state or local income tax examinations by tax authorities through the 2008 tax year. The IRS is conducting an examination of the Company’s U.S. income tax returns for the years 2009 through 2010.  Any adjustments that may result from IRS examination of tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

(14) Statutory Financial Information

Statutory Results

The Company’s life insurance subsidiaries are required to prepare statutory financial statements in conformity with the statutory accounting practices prescribed and permitted by insurance regulatory authorities, subject to any deviations prescribed or permitted by the applicable state department of insurance.  Statutory accounting practices focus on insurer solvency and materially differ from GAAP primarily due to charging policy acquisition and other costs to expense as incurred, establishing future policy benefits and claims reserves using different actuarial assumptions, excluding certain assets from statutory admitted assets; and valuing investments and establishing deferred taxes on a different basis.  The following table summarizes the statutory net income (loss) and statutory capital and surplus for the Company’s primary life insurance subsidiary for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Statutory net income (loss)
NLIC	$         764	$                 18	$               560
NLAIC	$         (65)	$              (61)	$              (50)
Statutory capital and surplus
NLIC	$      3,837	$            3,591	$            3,686
NLAIC	$         280	$               302	$               287

47

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

Dividend Restrictions

The payment of dividends by NLIC is subject to restrictions set forth in the insurance laws and regulations of the State of Ohio, its domiciliary state.  The State of Ohio insurance laws require Ohio-domiciled life insurance companies to seek prior regulatory approval to pay a dividend or distribution of cash or other property if the fair market value thereof, together with that of other dividends or distributions made in the preceding 12 months, exceeds the greater of (1) 10% of statutory-basis policyholders’ surplus as of the prior December 31 or (2) the statutory-basis net income of the insurer for the prior year.   During the year ended December 31, 2012, NLIC paid a cash dividend of $40 million to NFS.  During the year ended December 31, 2011 and 2010, NLIC did not pay any dividends to NFS.  As of January 1, 2013, NLIC has the ability to pay dividends to NFS totaling $724 million without obtaining prior approval.

The State of Ohio insurance laws also require insurers to seek prior regulatory approval for any dividend paid from other than earned surplus.  Earned capital and surplus is defined under the State of Ohio insurance laws as the amount equal to the Company’s unassigned funds as set forth in its most recent statutory financial statements, including net unrealized capital gains and losses or revaluation of assets.  Additionally, following any dividend, an insurer’s policyholder capital and surplus must be reasonable in relation to the insurer’s outstanding liabilities and adequate for its financial needs.  The payment of dividends by the Company may also be subject to restrictions set forth in the insurance laws of the state of New York that limit the amount of statutory profits on the Company’s participating policies (measured before dividends to policyholders) available for the benefit of the Company and its stockholders.

The Company currently does not expect such regulatory requirements to impair the ability to pay operating expenses and dividends in the future.

Regulatory Risk-Based Capital

The National Association of Insurance Commissioners’ (“NAIC”) Risk Based Capital (“RBC”) model law requires every insurer to calculate its total adjusted capital and RBC requirement to ensure insurer solvency. Regulatory guidelines provide for an insurance commissioner to intervene if the insurer experiences financial difficulty, as evidenced by a company’s total adjusted capital falling below established relationships to required RBC. The model includes components for asset risk, liability risk, interest rate exposure and other factors. The State of Ohio, where NLIC and NLAIC are domiciled, imposes minimum RBC requirements that are developed by the NAIC.  The formulas in the model for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk.  Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC.  Companies below specific trigger points or ratios are classified within certain levels, all of which require specified corrective action.  NLIC and NLAIC each exceeded the minimum RBC requirements for all periods presented herein.

(15) Related Party Transactions

The Company has entered into significant, recurring transactions and agreements with NMIC, other affiliates and subsidiaries as a part of its ongoing operations.  These include annuity and life insurance contracts, employee benefit plans, office space 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.

In addition, Nationwide Services Company, LLC (“NSC”), a subsidiary of NMIC, provides data processing, systems development, hardware and software support, telephone, mail and other services to the Company, based on specified rates for units of service consumed.  For the years ended December 31, 2012, 2011 and 2010, the Company made payments to NMIC and NSC totaling $283 million, $241 million and $250 million, respectively.

48

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The Company has issued group annuity and life insurance contracts and performs administrative services for various employee benefit plans sponsored by NMIC or its affiliates.  Total account values of these contracts were $3.2 billion and $3.0 billion as of December 31, 2012 and 2011, respectively.  Total revenues from these contracts were $140 million, $148 million and $139 million for the years ended December 31, 2012, 2011 and 2010, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees.  Total interest credited to the account balances was $113 million, $122 million and $115 million for the years ended December 31, 2012, 2011 and 2010, respectively.  The terms of these contracts are materially consistent with what the Company offers to unaffiliated parties.

The Company leases office space from NMIC.  For the years ended December 31, 2012, 2011 and 2010, the Company made lease payments to NMIC of $15 million, $14 million and $20 million, respectively.  In addition, the Company leases office space to an affiliate of NMIC.

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, 2012, 2011 and 2010 were $161 million, $203 million and $209 million, respectively, while benefits, claims and expenses ceded during these years were $167 million, $212 million and $241 million, respectively.

Funds of Nationwide Funds Group (“NFG”), an affiliate, are offered to the Company’s customers as investment options in certain of the Company’s products.  As of December 31, 2012 and 2011, customer allocations to NFG funds totaled $45.0 billion and $39.7 billion, respectively.  For the years ended December 31, 2012, 2011 and 2010, NFG paid the Company $144 million, $129 million and $103 million, respectively, for the distribution and servicing of these funds.

Amounts on deposit with NCMC for the benefit of the Company were $854 million and $994 million as of December 31, 2012 and 2011, respectively.

Refer to Note 12 for discussion of variable funding surplus note between Olentangy Reinsurance, LLC and Nationwide Corporation.

Certain annuity products are sold through affiliated companies, which are also subsidiaries of NFS.  Total commissions and fees paid to these affiliates for the years ended December 31, 2012, 2011 and 2010 were $54 million, $64 million and $61 million, respectively.

During 2012, the Company had no sales of commercial mortgage loans to NMIC. During 2011, the Company sold, at fair value, commercial mortgage loans with a carrying value of $41 million to NMIC.  The sale resulted in a net realized loss of $5 million in 2011.

The Company provides financing to Nationwide Realty Investors, LTD, a subsidiary of NMIC.  As of December 31, 2012 and 2011, the Company had notes receivable outstanding of $126 million and $148 million, respectively.

49

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(16) Contingencies

Legal and Regulatory Matters

The Company is subject to legal and regulatory proceedings in the ordinary course of its business. The Company’s legal and regulatory matters include proceedings specific to the Company and other proceedings generally applicable to business practices in the industries in which the Company operates.  These matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted.  Regulatory proceedings could also affect the outcome of one or more of the Company’s litigation matters.   Furthermore, it is often not possible to determine the ultimate outcomes of the pending regulatory investigations and legal proceedings or to provide reasonable ranges of potential losses with any degree of certainty.  Some matters, including certain of those referred to below, are in very preliminary stages, and the Company does not have sufficient information to make an assessment of the plaintiffs’ claims for liability or damages.  In some of the cases seeking to be certified as class actions, the court has not yet decided whether a class will be certified or (in the event of certification) the size of the class and class period.  In many of the cases, the plaintiffs are seeking undefined amounts of damages or other relief, including punitive damages and equitable remedies, which are difficult to quantify and cannot be defined based on the information currently available.  The Company believes, however, that based on currently known information, the ultimate outcome of all pending legal and regulatory matters is not likely to have a material adverse effect on the Company’s consolidated financial position.  Nonetheless, given the large or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that such outcomes could materially affect the Company’s consolidated financial position or results of operations in a particular quarter or annual period.

The various businesses conducted by the Company are subject to oversight by numerous federal and state regulatory entities, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the IRS and state insurance authorities.  Such regulatory entities may, in the normal course, be engaged in general or targeted inquiries, examinations and investigations of the Company and/or its affiliates.  The financial services industry has been the subject of increasing scrutiny in connection with a broad spectrum of regulatory issues; with respect to all such scrutiny directed at the Company and/or its affiliates, the Company is cooperating with regulators. The Company will cooperate with NMIC insofar as any inquiry, examination or investigation encompasses NMIC's operations.

In October 2012, NLIC and NLAIC entered into a Regulatory Settlement Agreement with the Florida Office of Insurance Regulation and twenty-one other state Departments of Insurance to resolve a multi-state market conduct exam regarding claim settlement practices.  The Regulatory Settlement Agreement applies prospectively and requires NLIC and NLAIC to adopt and implement additional procedures relating to the use of the Social Security Death Master File and identifying and locating beneficiaries once deaths are identified.  In October 2012, NLIC and NLAIC also entered into a Global Resolution Agreement to resolve the related unclaimed property audit.

Other jurisdictions may pursue similar investigations, examinations or inquires. The results of these investigations, examinations or inquiries could result in the payment or escheatment of unclaimed death benefits, and/or changes in the Company’s practices and procedures to its claims handling and escheat processes, all of which could impact claim payments and reserves and/or result in payment of investigation costs, fines or penalties.

50

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

On November 20, 2007, NRS and NLIC were named in a lawsuit filed in the Circuit Court of Jefferson County, Alabama entitled Ruth A. Gwin and Sandra H. Turner, and a class of similarly situated individuals v Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc., Alabama State Employees Association, PEBCO, Inc. and Fictitious Defendants A to Z. On March 12, 2010, NRS and NLIC were named in a Second Amended Class Action Complaint filed in the Circuit Court of Jefferson County, Alabama entitled Steven E. Coker, Sandra H. Turner, David N. Lichtenstein and a class of similarly situated individuals v. Nationwide Life Insurance Company, Nationwide Retirement Solutions, Inc, Alabama State Employees Association, Inc., PEBCO, Inc. and Fictitious Defendants A to Z claiming to represent a class of all participants in the Alabama State Employees Association, Inc. (“ASEA”) Plan, excluding members of the Deferred Compensation Committee, ASEA's directors, officers and board members, and PEBCO's directors, officers and board members. On October 22, 2010, the parties to this action executed a court approved stipulation of settlement that agreed to certify a class for settlement purposes only, that provided for payments to the settlement class, and that provided for releases, certain bar orders, and dismissal of the case.  The settlement fund has been paid out.  On December 6, 2011, the Court entered an Order that NRS owes indemnification to ASEA and PEBCO for only the Coker (Gwin) class action, and dismissed NLIC. The Company has resolved the indemnification claims of ASEA.  On February 15, 2013, the Court issued its Order determining the amount of fees due to PEBCO on its indemnification claim.  The Company has until March 29, 2013 to file a notice of appeal.  The Court has taken the matter under advisement. NRS continues to defend this case vigorously.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the U.S. District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company.  On November 18, 2009, the plaintiffs filed a sixth amended complaint amending the list of named plaintiffs and claiming to represent a class of qualified retirement plan trustees under Employee Retirement Income Security Act of 1974 (“ERISA”) that purchased variable annuities from NLIC. The plaintiffs allege that they invested ERISA plan assets in their variable annuity contracts and that NLIC and NFS breached ERISA fiduciary duties by allegedly accepting service payments from certain mutual funds. The complaint seeks disgorgement of some or all of the payments allegedly received by NFS and NLIC, other unspecified relief for restitution, declaratory and injunctive relief, and attorneys' fees. On November 6, 2009, the Court granted the plaintiff's motion for class certification and certified a class of “All trustees of all employee pension benefit plans covered by ERISA which had variable annuity contracts with NFS and NLIC or whose participants had individual variable annuity contracts with NFS and NLIC at any time from January 1, 1996, or the first date NFS and NLIC began receiving payments from mutual funds based on a percentage of assets invested in the funds by NFS and NLIC, whichever came first, to the date of November 6, 2009”.  On October 21, 2010, the District Court dismissed NFS from the lawsuit.  On February 6, 2012, the Second Circuit Court of Appeals vacated the November 6, 2009 order granting class certification and remanded the case back to the District Court for further consideration. The plaintiffs have renewed their motion for class certification.  On December 18, 2012, the District Court heard oral argument on the motion for class certification.  NLIC continues to defend this lawsuit vigorously.

On June 8, 2011, NMIC and NLIC were named in a lawsuit filed in Court of Common Pleas, Cuyahoga County, Ohio entitled Stanley Andrews and Donald Clark, on their behalf and on behalf of the class defined herein v. Nationwide Mutual Insurance Company and Nationwide Life Insurance Company.  The complaint alleges that NMIC and NLIC have an obligation to review the Social Security Administration Death Master File database for all life insurance policyholders who have at least a 70% probability of being deceased according to actuarial tables.  The complaint further alleges that NMIC and NLIC are not conducting such a review.  The complaint seeks injunctive relief and declaratory judgment requiring NMIC and NLIC to conduct such a review, and alleges NMIC and NLIC have violated the covenant of good faith and fair dealing and have been unjustly enriched by not having conducted such reviews.  The complaint seeks certification as a class action.  NMIC and NLIC filed a motion to dismiss.  By order dated January 18, 2012, the State Court issued an order dismissing the lawsuit.   On January 30, 2012, plaintiffs filed their appeal.  On October 24, 2012, the Court of Appeals affirmed the dismissal.  On November 9, 2012, plaintiffs filed a petition for rehearing en banc.  On December 14, 2012, the Court of Appeals denied the petition for rehearing. Plaintiffs filed a notice of appeal to the Ohio Supreme Court on January 24, 2013. NMIC and NLIC have filed an opposition memorandum.

51

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

In 2012 the Plaintiff, Debtor in Possession Lehman Brothers Special Financing, Inc., filed a class action suit in the United States Bankruptcy Court for the Southern District of New York seeking the recovery of nearly $3.0 billion in assets from all the named defendants including NLIC and NMIC. This litigation arises from two collateralized debt obligation transactions, 801 Grand and Alta, which resulted in payments to NLIC and NMIC. In 2008 the Plaintiff and its parent company, Lehman Brothers Holding, Inc. filed for bankruptcy which triggered an early termination of the above transactions. The Plaintiff seeks to have sums returned to the bankruptcy estate in addition to prejudgment interest and costs. The case is currently stayed and answers of defendants are due on March 5, 2013.

Tax Matters

The Company’s federal income tax returns are routinely audited by the IRS. The Company has established tax reserves as described in Note 2. The Company believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

Indemnifications

In the normal course of business, the Company provides standard indemnifications to contractual counterparties. The types of indemnifications typically provided include breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations.

(17) Reinsurance

The following table summarizes the effects of reinsurance on life, accident and health insurance in force and premiums for the years ended:

	December 31,	December 31,	December 31,
(in millions)	2012	2011	2010
Premiums
Direct	$                   890	$                    832	$                    808
Assumed	-	-	5
Ceded	(255)	(301)	(329)
Net	$                   635	$                    531	$                    484
Life, accident and health insurance in force
Direct	$           216,002	$             209,732	$             208,920
Assumed	5	5	10
Ceded	(59,895)	(60,499)	(64,755)
Net	$           156,112	$             149,238	$             144,175

Total amounts recoverable under reinsurance contracts totaled $684 million, $704 million and $739 million as of December 31, 2012, 2011 and 2010, respectively.

52

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

(18) Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments:  Individual Products and Solutions-Annuity (formerly named Individual Investments), Retirement Plans, Individual Products and Solutions-Life and NBSG (formerly named Individual Protection) and Corporate and Other.

The primary segment profitability measure that management uses is a non-GAAP financial measure called pre-tax operating earnings (loss), which is calculated by adjusting income before federal income taxes to exclude: (1) net realized investment gains and losses, except for operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts); (2) other-than-temporary impairment losses; (3) the adjustment to amortization of DAC and VOBA related to net realized investment gains and losses; and (4) net loss attributable to noncontrolling interest.

Individual Products and Solutions-Annuity

The Individual Products & Solutions - Annuity segment consists of individual annuity products marketed under the Nationwide DestinationSM and other Nationwide-specific or private label brands.  Deferred annuity contracts provide the customer with tax-deferred accumulation of savings and flexible payout options including lump sum, systematic withdrawal or a stream of payments for life.  In addition, deferred variable annuity contracts provide the customer with access to a wide range of investment options and asset protection features, while deferred fixed annuity contracts generate a return for the customer at a specified interest rate fixed for prescribed periods. Immediate annuities differ from deferred annuities in that the initial premium is exchanged for a stream of income for a certain period or for the owner’s lifetime without future access to the original investment.    The majority of assets and recent sales for the Individual Products & Solutions - Annuity segment consist of deferred variable annuities.

Retirement Plans

The Retirement Plans segment is comprised of the Company’s private and public sector retirement plans business.  The private sector primarily includes Internal Revenue Code (“IRC”) Section 401 fixed and variable group annuity business, and the public sector primarily includes IRC Section 457 and Section 401(a) business in the form of full-service arrangements that provide plan administration and fixed and variable group annuities as well as administration-only business.

Individual Products and Solutions-Life and NBSG

The Individual Products & Solutions - Life and NBSG segment consists of life insurance products, including individual variable universal life, COLI and BOLI products; traditional life insurance products; and fixed 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 non-operating realized gains and losses and related amortization, including mark-to-market adjustments on embedded derivatives, net of economic hedges, related to products with living benefits included in the Individual Products & Solutions - Annuity segment; other-than-temporary impairment losses and other revenues and expenses not allocated to other segments.

53

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

The following tables summarize the Company’s business segment operating results for the years ended:

	Individual		Individual Products
	Products and	Retirement	and Solutions-Life	Corporate
(in millions)	Solutions-Annuity	Plans	and NBSG	and Other	Total
December 31, 2012
Revenues:
Policy charges	$                       899	$             94	$                        677	$                -	$         1,670
Premiums	334	-	301	-	635
Net investment income	551	736	536	2	1,825
Non-operating net realized investment gains1	-	-	-	459	459
Other-than-temporary impairment losses	-	-	-	(31)	(31)
Other revenues2	(124)	-	-	22	(102)
Total revenues	$                   1,660	$           830	$                     1,514	$           452	$         4,456
Benefits and expenses:
Interest credited to policyholder accounts	$                       375	$           457	$                        199	$               7	$         1,038
Benefits and claims	595	-	615	17	1,227
Policyholder dividends	-	-	54	-	54
Amortization of DAC	185	14	150	226	575
Interest expense	-	-	-	68	68
Other operating expenses	285	163	255	92	795
Total benefits and expenses	$                   1,440	$           634	$                     1,273	$           410	$         3,757
Income before federal income taxes
and noncontrolling interests	$                       220	$           196	$                        241	$             42	$            699
Less:  non-operating net realized investment gains1	-	-	-	(459)
Less:  non-operating net other-than-temporary            impairment losses	-	-	-	31
Less:  adjustment to amortization of DAC and other            related to net realized investment gains and losses	-	-	-	243
Less:  net loss attributable to noncontrolling interest	-	-	-	61
Pre-tax operating earnings (loss)	$                       220	$           196	$                        241	$           (82)
Assets as of year end	$                 58,707	$     27,842	$                  25,301	$       8,320	$    120,170

_________

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).

2 Includes operating items discussed above.

54

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

	Individual		Individual Products
	Products and	Retirement	and Solutions-Life	Corporate
(in millions)	Solutions-Annuity	Plans	and NBSG	and Other	Total
December 31, 20113
Revenues:
Policy charges	$                        781	$              96	$                          629	$                 -	$         1,506
Premiums	234	-	297	-	531
Net investment income	527	715	533	69	1,844
Non-operating net realized investment losses1	-	-	-	(1,546)	(1,546)
Other-than-temporary impairment losses	-	-	-	(67)	(67)
Other revenues2	(59)	-	-	(1)	(60)
Total revenues	$                     1,483	$            811	$                       1,459	$       (1,545)	$         2,208
Benefits and expenses:
Interest credited to policyholder accounts	$                        374	$            441	$                          198	$              20	$         1,033
Benefits and claims	476	-	598	(12)	1,062
Policyholder dividends	-	-	67	-	67
Amortization of DAC	80	11	75	(101)	65
Interest expense	-	-	-	70	70
Other operating expenses	269	166	238	87	760
Total benefits and expenses	$                     1,199	$            618	$                       1,176	$              64	$         3,057
Income (loss) before federal income taxes
and noncontrolling interests	$                        284	$            193	$                          283	$       (1,609)	$          (849)
Less:  non-operating net realized investment losses1	-	-	-	1,546
Less:  non-operating net other-than-temporary            impairment losses	-	-	-	67
Less:  adjustment to amortization of DAC and other            related to net realized investment gains and losses	-	-	-	(115)
Less:  net loss attributable to noncontrolling interest	-	-	-	56
Pre-tax operating earnings (loss)	$                        284	$            193	$                          283	$            (55)
Assets as of year end	$                   57,741	$       25,114	$                     22,503	$         6,628	$     111,986

__________

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).

2 Includes operating items discussed above.

3 The balances reflect a change in accounting principle, as described in Note 2.

55

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2012, 2011 and 2010

	Individual		Individual Products
	Products and	Retirement	and Solutions-Life	Corporate
(in millions)	Solutions-Annuity	Plans	and NBSG	and Other	Total
December 31, 20103
Revenues:
Policy charges	$                        646	$              98	$                          652	$                3	$         1,399
Premiums	209	-	275	-	484
Net investment income	569	691	510	55	1,825
Non-operating net realized investment losses1	-	-	-	(177)	(177)
Other-than-temporary impairment losses	-	-	-	(220)	(220)
Other revenues2	(82)	-	-	25	(57)
Total revenues	$                     1,342	$            789	$                       1,437	$          (314)	$         3,254
Benefits and expenses:
Interest credited to policyholder accounts	$                        391	$            424	$                          199	$              42	$         1,056
Benefits and claims	354	-	524	(5)	873
Policyholder dividends	-	-	78	-	78
Amortization of DAC	192	9	136	(38)	299
Interest expense	-	-	-	55	55
Other operating expenses	244	165	237	76	722
Total benefits and expenses	$                     1,181	$            598	$                       1,174	$            130	$         3,083
Income (loss) before federal income taxes
and noncontrolling interests	$                        161	$            191	$                          263	$          (444)	$            171
Less:  non-operating net realized investment gains1	-	-	-	177
Less:  non-operating net other-than-temporary            impairment losses	-	-	-	220
Less:  adjustment to amortization of DAC and other            related to net realized investment gains and losses	-	-	-	(48)
Less:  net loss attributable to noncontrolling interest	-	-	-	60
Pre-tax operating earnings (loss)	$                        161	$            191	$                          263	$            (35)
Assets as of year end	$                   52,786	$       25,502	$                     22,434	$         5,828	$     106,550

1 Excluding operating items (trading portfolio realized gains and losses, trading portfolio valuation changes and net realized gains and losses related to hedges on GMDB contracts).

2 Includes operating items discussed above.

3 The balances reflect a change in accounting principle, as described in Note 2.

56

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, 2012 (in millions)

Column A	Column B	Column C	Column D
			Amount at
			which shown
			in the
		Fair	consolidated
Type of investment	Cost	value	balance sheet
Fixed maturity securities, available-for-sale:
Bonds:
U.S. Treasury securities and obligations of U.S. Government
corporations and agencies	$            476	$            597	$               597
Obligations of states and political subdivisions	1,722	2,002	2,002
Debt securities issued by foreign governments	98	118	118
Public utilities	2,374	2,684	2,684
All other corporate	24,252	26,410	26,410
Total fixed maturity securities, available-for-sale	$      28,922	$      31,811	$         31,811
Equity securities, available-for-sale:
Common stocks:
Industrial, miscellaneous and all other	$                5	$                8	$                   8
Nonredeemable preferred stocks	10	12	12
Total equity securities, available-for-sale	$              15	$              20	$                 20
Trading assets	49	54	54
Mortgage loans, net of allowance	5,871		5,827
Policy loans	980		980
Other investments	565		565
Short-term investments	1,034		1,034
Total investments	$      37,436		$         40,291

__________

1 Difference from Column B primarily is attributable to valuation allowances due to impairments on mortgage loans (see Note 6 to the audited consolidated financial statements).

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

57

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule III                      Supplementary Insurance Information

As of December 31, 2012, 2011 and 2010 and for each of the years then ended (in millions)

Column A	Column B	Column C	Column D	Column E	Column F
	Deferred	Future policy
	policy	benefits, losses,		Other  policy
	acquisition	claims and	Unearned	claims and	Premium
Year:  Segment	costs3	loss expenses	premiums1	benefits payable1	revenue
2012
IPS - Annuity	$          2,110	$                    12,214			$            334
Retirement Plans	168	13,628			-
IPS - Life and NBSG	1,442	9,564			301
Corporate and Other	(471)	748			-
Total	$          3,249	$                    36,154			$            635
2011
IPS - Annuity	$           2,232	$                      12,550			$              234
Retirement Plans	172	12,638			-
IPS - Life and NBSG	1,421	9,338			297
Corporate and Other	(338)	726			-
Total	$           3,487	$                      35,252			$              531
2010
IPS - Annuity	$           1,761	$                      10,541			$              209
Retirement Plans	172	11,874			-
IPS - Life and NBSG	1,354	9,163			275
Corporate and Other	(162)	1,098			-
Total	$           3,125	$                      32,676			$              484
Column A	Column G	Column H	Column I	Column J	Column K
	Net	Benefits, claims,	Amortization	Other
	investment	losses and	of deferred policy	operating	Premiums
Year:  Segment	income2	settlement expenses	acquisition costs3	expenses2,3	written
2012
IPS - Annuity	$             551	$                         970	$                    185	$                    285
Retirement Plans	736	457	14	163
IPS - Life and NBSG	536	868	150	255
Corporate and Other	2	24	226	160
Total	$          1,825	$                      2,319	$                    575	$                    863
2011
IPS - Annuity	$              527	$                           850	$                       80	$                     269
Retirement Plans	715	441	11	166
IPS - Life and NBSG	533	863	75	238
Corporate and Other	69	8	(101)	157
Total	$           1,844	$                        2,162	$                       65	$                     830
2010
IPS - Annuity	$              569	$                           745	$                     192	$                     244
Retirement Plans	691	424	9	165
IPS - Life and NBSG	510	801	136	237
Corporate and Other	55	37	(38)	131
Total	$           1,825	$                        2,007	$                     299	$                     777

________

1 Unearned premiums and other policy claims and benefits payable are included in Column C amounts.

2 Allocations of net investment income and certain operating expenses are based on numerous assumptions and estimates, and reported segment operating results would change if different methods were applied.

3 The 2011 and 2010 balances reflect a change in accounting principle, as described in Note 2.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

58

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule IV                      Reinsurance

As of December 31, 2012, 2011 and 2010 and for each of the years then ended (in millions)

Column A	Column B	Column C	Column D	Column E	Column F
					Percentage
		Ceded to	Assumed		of amount
	Gross	other	from other	Net	assumed
	amount	companies	companies	amount	to net
2012
Life, accident and health
insurance in force	$     216,002	$      (59,895)	$                  5	$     156,112	-
Premiums:
Life insurance 1	$             701	$              (66)	$                   -	$             635	-
Accident and health insurance	189	(189)	-	-	-
Total	$             890	$            (255)	$                   -	$             635	-
2011
Life, accident and health
insurance in force	$        209,732	$        (60,499)	$                   5	$        149,238	-
Premiums:
Life insurance 1	$               596	$               (65)	$                   -	$               531	-
Accident and health insurance	236	(236)	-	-	-
Total	$               832	$             (301)	$                   -	$               531	-
2010
Life, accident and health
insurance in force	$        208,920	$        (64,755)	$                 10	$        144,175	-
Premiums:
Life insurance 1	$               570	$               (88)	$                   1	$               483	0.2%
Accident and health insurance	238	(241)	4	1	NM
Total	$               808	$             (329)	$                   5	$               484	1.0%

__________

1 Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

59

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, 2012, 2011, and 2010 (in millions)

Column A	Column B		Column C		Column D	Column E
	Balance at	Charged to		Charged to		Balance at
	beginning	costs and		other		end of
Description	of period	expenses		accounts	Deductions1	period
2012
Valuation allowances - mortgage loans	$                60	$                  1		$                   -	$                17	$                44
2011
Valuation allowances - mortgage loans	$                 96	$                 25		$                    -	$                 61	$                 60
2010
Valuation allowances - mortgage loans	$                 77	$                 66		$                    -	$                 47	$                 96

__________

1 Amounts generally represent payoffs, sales and recoveries.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

60

PART C. OTHER INFORMATION

Item 24. Financial Statements and Exhibits

(a) Financial Statements

Nationwide Variable Account-II:

Statement of Assets, Liabilities and Contract Owners’ Equity as

of September 30, 2012 (Unaudited).

Statement of Operations for the nine month period ended

September 30, 2012 (Unaudited).

Statements of Changes in Contract Owners’ Equity for the nine

month period ended September 30, 2012 (Unaudited).

Notes to Financial Statements (Unaudited).

Report of Independent Registered Public Accounting Firm

Statement of Assets, Liabilities and Contract

Owners’ Equity as of December 31, 2011.

Statement of Operations for the year ended December 31, 2011.

Statements of Changes in Contract Owners’ Equity for the years

ended December 31, 2011 and 2010.

Notes to Financial Statements.

Nationwide Life Insurance Company and subsidiaries:

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Operations for the

years ended December 31, 2012 , 2011 and

2010 .

Consolidated Statements of Comprehensive Income

(Loss) for the years ended December 31, 2012, 2011 and

2010.

Consolidated Balance Sheets as of December

31, 2012 and 2011 .

Consolidated Statements of Changes in

Equity as of December 31, 2012 , 2011 and 2010 .

Consolidated Statements of Cash Flows for

the years ended December 31, 2012 , 2011

and 2010 .

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 with Post-Effective Amendment No. 16 on April 30, 2007 (File No. 333-103093) as Exhibit (1) and hereby incorporated by reference.

(2) Not Applicable.

(3) Underwriting or Distribution of Contracts between the Depositor and NISC as Principal Underwriter - Filed with Post-Effective Amendment No. 16 on April 19, 2007 (File No. 333-103093) as Exhibit (3) and hereby incorporated by reference.

(4) The form of the variable annuity contract - Attached hereto .

(5) Variable Annuity Application - Attached hereto .

(6) Depositor’s Certificate of Incorporation and By-Laws.

(a) Amended Articles of Incorporation for Nationwide Life Insurance Company.  Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6a.htm" and hereby incorporated by reference.

(b) Amended and Restated Code of Regulations of Nationwide Life Insurance Company.  Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6b.htm" and hereby incorporated by reference.

(c) Articles of Merger of Nationwide Life Insurance Company of America with and into Nationwide Life Insurance Company, effective December 31, 2009.  Filed previously with initial registration statement (333-164125) on January 4, 2010 as document "exhibit6c.htm" and hereby incorporated by reference.

(7) Not Applicable.

(8) Form of Participation Agreements -

The following Fund Participation Agreements were previously filed on July 17, 2007 with Pre-Effective Amendment No. 1 to the registration statement associated with 1933 Act File No. 333-140608 under Exhibit 26(h), and are hereby incorporated by reference.

(1) Amended and Restated Fund Participation and Shareholder Services Agreement with American Century Investment Services, Inc. dated September 15, 2004, as amended, as document "amcentfpa99h2."

(2) Restated and Amended Fund Participation Agreement with The Dreyfus Corporation dated January 27, 2000, as amended, as document "dreyfusfpa99h3.htm."

(3) 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, as document "fidifpa99h5.htm."

(4) Amended and Restated Fund Participation with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc., as amended, dated May 1, 2003, as document "frankfpa99h8.htm. "

(5) Fund Participation Agreement with AIM Variable Insurance Funds, AIM Advisors, Inc., and AIM Distributors, dated January 6, 2003, as document "aimfpa99h1.htm."

(6)   Fund Participation Agreement, Service and Institutional Shares, with Janus Aspen Series, dated December 31, 1999, as document "janusfpa99h9a.htm."

(7) Amended and Restated Fund Participation Agreement with MFS Variable Insurance Trust and Massachusetts Financial Services Company dated February 1, 2003, as amended, as document "mfsfpa99h11.htm."

(8) Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly, Gartmore Variable Insurance Trust) dated February 1, 2003, as amended, as document "nwfpa99h12a.htm."

(9) 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, as document "nwfpa99h12b.htm."

(10) Fund Participation Agreement with Neuberger Berman Advisers Management Trust / Lehman Brothers Advisers Management Trust (formerly, Neuberger Berman Advisers Management Trust) dated January 1, 2006, as document "neuberfpa99h13.htm."

(11) Fund Participation Agreement with Oppenheimer Variable Account Funds and Oppenheimer Funds, Inc. dated April 13, 2007, as document "oppenfpa99h14.htm."

(12) 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., as amended, dated October 1, 2002, as document "trowefpa99h15.htm."

(13) Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley & Co. Incorporated, and Morgan Stanley Investment Management, Inc., as amended, dated February 1, 2002, as document "univfpa99h16.htm."

The following Fund Participation Agreements were previously filed on September 27, 2007 with Pre-Effective Amendment No. 3 to the registration statement associated with 1933 Act File No. 333-137202 under Exhibit 26(h), and are hereby incorporated by reference.

(14) Fund Participation Agreement (Amended and Restated) with Alliance Capital Management L.P. and Alliance-Bernstein Investment Research and Management, Inc. dated June 1, 2003, as document "alliancebernsteinfpa.htm."

(15) Fund Participation Agreement with BlackRock (formerly FAM Distributors, Inc. and FAM Variable Series Funds, Inc.), as amended, dated April 13, 2004, as document "blackrockfpa.htm."

(16) Fund Participation Agreement with PIMCO Variable Insurance Trust and PIMCO Fund Distributors, LLC, as amended, dated March 28, 2002, as document "pimcofpa.htm."

(17) Fund Participation Agreement with Waddell & Reed Services Company and Waddell & Reed, Inc., dated December 1, 2000, as document "waddellreedfpa.htm."

(18) Fund Participation Agreement with American Funds Insurance Series and Capital Research and Management Company, as amended, dated July 20, 2005, as document "americanfundsfpa.htm."

(19) Fund Participation Agreement with Royce & Associates, Inc., as amended, dated February 14, 2002, as document "roycefpa.htm."

(20) Fund Participation Agreement with Van Eck Investment Trust, Van Eck Associates Corporation, and Van Eck Securities Corporation, as amended, dated September 1, 1989, as document "vaneckfpa.htm."

(21) Fund Participation Agreement with Wells Fargo Management, LLC, and Stephens, Inc., as amended, dated November 15, 2004, as document "wellsfargofpa.htm."

The following Fund Participation Agreement was previously filed on October 26, 2010 with Post-Effective Amendment No. 2 to the registration statement associated with 1933 Act File No. 333-164886 under Exhibit 26(h), and is hereby incorporated by reference.

(22) Fund Participation Agreement with Unified Financial Securities and Huntington Asset Advisers, Inc., dated August 13, 2010, as document "huntingtonfpa.htm."

The following Fund Participation Agreements were previously filed on April 12, 2011 with Post-Effective Amendment No. 43 to the registration statement associated with 1933 Act File No. 333-43671 under Exhibit 26(h), and are hereby incorporated by reference.

(23) Fund Participation Agreement with Delaware Management Company and Delaware Distributors, L.P., as amended, dated February 5, 2008, as document "delawarefpa.htm."

(24) Fund Participation Agreement with Eaton Vance Variable Trust and Eaton Vance Distributors, Inc., dated March 24, 2011, as document "eatonvancefpa.htm."

(25) Fund Participation Agreement with Goldman Sachs Variable Insurance Trust, and Goldman Sachs & Co., dated December 22, 1998, as document "goldmansachsfpa.htm."

(26) Fund Participation Agreement with Lazard Retirement Series, Inc., and Lazard Asset Management Securities LLC, dated April 13, 2009, as document "lazardfpa.htm."

The following Fund Participation Agreement was previously filed on April 18, 2008, with Post-Effective Amendment No. 20 to the registration statement associated with 1933 Act File No. 333-62692 under Exhibit 24(b), and is hereby incorporated by reference.

(27) Fund Participation Agreement with Rydex Variable Trust & Rydex Distributors, Inc., dated September 10, 2001, as document "rydexfundpartagreement.htm."

For information regarding payments Nationwide receives from underlying mutual funds, please see the "Information on Underlying Mutual Fund Payments" section of the prospectus and/or the underlying mutual fund prospectuses.

(9) Opinion of Counsel - Filed previously with initial registration statement (File No. 333-182494) 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

President and Chief Operating Officer and Director	Kirt A. Walker
Executive Vice President-Chief Legal and Governance Officer	Patricia R. Hatler
Executive Vice President	Terri L. Hill
Executive Vice President-Finance	Lawrence A. Hilsheimer
Executive Vice President-Chief Marketing & Strategy Officer	Matthew Jauchius
Executive Vice President-Chief Information Officer	Michael C. Keller
Executive Vice President-Chief Human Resources Officer	Gale V. King
Executive Vice President	Mark A. Pizzi
Executive Vice President and Director	Mark R. Thresher
Senior Vice President	Steven M. English
Senior Vice President	Harry H. Hallowell
Senior Vice President and Treasurer	David LaPaul
Senior Vice President-Business Transformation Office	Robert P. McIsaac
Senior Vice President-Chief Claims Officer	David A. Bano
Senior Vice President-Chief Compliance Officer	Sandra L. Rich
Senior Vice President-Chief Financial Officer and Director	Timothy G. Frommeyer
Senior Vice President-Chief Financial Officer-Property and Casualty	Michael P. Leach
Senior Vice President-Chief Risk Officer	Michael W. Mahaffey
Senior Vice President-CIO ACS	Daniel G. Greteman
Senior Vice President-CIO Enterprise Applications	Mark A. Gaetano
Senior Vice President-CIO IT Infrastructure	Gregory S. Moran
Senior Vice President-CIO NF Systems	Susan J. Gueli
Senior Vice President-Controller	James D. Benson
Senior Vice President-Corporate Marketing	Gordon E. Hecker
Senior Vice President-Corporate Strategy	Katherine M. Liebel
Senior Vice President-Deputy General Counsel	Thomas W. Dietrich
Senior Vice President-Deputy General Counsel	Sandra L. Neely
Senior Vice President-Distribution and Sales and Director	John L. Carter
Senior Vice President-Enterprise Chief Technology Officer	Guruprasad C. Vasudeva
Senior Vice President-Field Operations EC	Amy T. Shore
Senior Vice President-Field Operations IC	Jeff M. Rommel
Senior Vice President-Head of Taxation	Pamela A. Biesecker
Senior Vice President-Individual Products & Solutions and Director	Eric S. Henderson
Senior Vice President-Internal Audit	Kai V. Monahan
Senior Vice President-Investment Management Group	Michael S. Spangler
Senior Vice President-IT Strategic Initiatives	Robert J. Dickson
Senior Vice President-Nationwide Financial	Steven C. Power
Senior Vice President-Nationwide Financial Network	Peter A. Golato
Senior Vice President-NF Brand Marketing	William J. Burke
Senior Vice President-NI Brand Marketing	Jennifer M. Hanley
Senior Vice President-NW Retirement Plans	Anne L. Arvia
Senior Vice President-PCIO Sales Support	Melissa D. Gutierrez
Senior Vice President-President-Nationwide Bank	J. Lynn Greenstein
Senior Vice President-Property and Casualty Commercial/Farm Product Pricing	W. Kim Austen
Vice President-Corporate Governance and Secretary	Robert W. Horner, III
Director	Stephen S. Rasmussen

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	PRINCIPAL BUSINESS
1492 Capital, LLC	Ohio	The company acts as an investment holding company.
AGMC Reinsurance, Ltd.	Turks & Caicos Islands	The company is in the business of reinsurance of mortgage guaranty risks.
ALLIED General Agency Company	Iowa	The company acts as a managing 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 Insurance Company of America	Ohio	The company is organized to write commercial lines insurance business.
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.
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.
Champions of the Community, Inc.	Ohio	The company raises money to enable it to make gifts and grants to charitable organizations.
Colonial County Mutual Insurance Company*	Texas	The company underwrites non-standard automobile and motorcycle insurance and other commercial liability coverages in Texas.
Crestbrook Insurance Company	Ohio	The company is a 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	The company places non-California pet insurance business not written by Veterinary Pet Insurance Company.
Farmland Mutual Insurance Company	Iowa	The company provides property and casualty insurance primarily to agricultural businesses.
Freedom Specialty Insurance Company	Ohio	The company operates as a multi-line insurance company.
Gates McDonald of Ohio, LLC	Ohio	The company provided services to employers for managing workers’ and unemployment compensation matters and employee benefit costs.  The company is currently winding down to permit its eventual dissolution.
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 Health Plus, LLC	Ohio	The company provided medical management and cost containment services to employers.  The company is currently winding down to permit its eventual dissolution.
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 is an investment holding company.
Lone Star General Agency, Inc.	Texas	The company acts as general agent to market nonstandard automobile and motorcycle insurance for Colonial County Mutual Insurance Company.

National Casualty Company	Wisconsin	The company underwrites various property and casualty coverage, as well as some individual and group accident and health insurance.
National Casualty Company of America, Ltd.	England	This is a limited liability company organized for the purpose of carrying on the business of insurance, reinsurance, indemnity, and guarantee of various kinds.  The company is currently inactive.
Nationwide Advantage Mortgage Company*	Iowa	The company makes residential mortgage loans.
Nationwide Affinity Insurance Company of America	Ohio	The company is a property and casualty insurer that writes personal lines business.
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.
Nationwide Asset Management, LLC	Ohio	The company provides investment advisory services as a registered investment advisor to affiliated and non-affiliated clients.
Nationwide Assurance Company	Wisconsin	The company underwrites non-standard automobile and motorcycle insurance.
Nationwide Bank*	United States	This is a federally chartered savings bank supervised by the Office of the Comptroller of the Currency to exercise deposit, lending, agency, custody and fiduciary powers and to engage in activities permissible for federal savings banks under the Home Owners’ Loan Act of 1933.
Nationwide Better Health (Ohio), LLC	Ohio	The company provided employee population health management.  The company is currently winding down to permit its eventual dissolution.
Nationwide Better Health Holding Company, LLC	Ohio	The company is a holding company.  The company is currently winding down to permit its eventual dissolution.
Nationwide Cash Management Company	Ohio	The company buys and sells investment securities of a short-term nature as the agent for other 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 as a holding company.
Nationwide Emerging Managers, LLC	Delaware	The company acts as a holding company.
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 General Agency, Inc. (fka 1717 Brokerage Services, Inc.)	Pennsylvania	The company is a multi-state licensed insurance agency.
Nationwide Financial Institution Distributors Agency, Inc.	Delaware	The company is an insurance agency.
Nationwide Financial Services Capital Trust	Delaware	The trust’s sole purpose is to issue and sell certain securities representing individual beneficial interests in the assets of the trust.
Nationwide Financial Services, Inc.*	Delaware	The company acts primarily as a holding company for companies within the Nationwide organization that offer or distribute life insurance, long-term savings and retirement products.
Nationwide Financial Structured Products, LLC	Ohio	The company captures and reports the results of the structured products business unit.
Nationwide Fund Advisors (fka Gartmore Mutual Fund Capital Trust)	Delaware	The trust acts as a registered investment advisor.
Nationwide Fund Distributors LLC (successor to Gartmore Distribution Services, Inc.)	Delaware	The company is a limited purpose broker-dealer.

Nationwide Fund Management LLC (successor to Gartmore Investors Services, Inc.)	Delaware	The company provides administration, transfer and dividend disbursing agent services to various mutual fund entities.
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 Holdings, Inc.	Ohio	The company acts as a holding company.
Nationwide Global Ventures, Inc.	Delaware	The company acts as a holding company.
Nationwide Indemnity Company*	Ohio	The company is involved in the reinsurance business and assumes business from Nationwide Mutual Insurance Company and other insurers within the Nationwide insurance organization.
Nationwide Insurance Company of America	Wisconsin	A financial services provider that sells individual traditional and variable life insurance products, group annuity products and other investment products. The company also maintains blocks of individual variable and fixed annuities and a block of direct response-marketed life and health insurance products.
Nationwide Insurance Company of Florida*	Ohio	The company transacts general insurance business, except life insurance.
Nationwide Insurance Foundation*	Ohio	The company contributes to non-profit activities and projects.
Nationwide Investment Advisors, LLC	Ohio	The company provides investment advisory services.
Nationwide Investment Services Corporation**	Oklahoma	This is a limited purpose broker-dealer and distributor of variable annuities and variable life products for Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company.  The company also provides educational services to retirement plan sponsors and its participants.
Nationwide 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 Lloyds	Texas	The company markets commercial and property insurance in Texas.
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 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 Realty Investors, Ltd.*	Ohio	The company is engaged in the business of developing, owning and operating real estate and real estate investment.
Nationwide Realty Services, Ltd.	Ohio	The company provides relocation services to Nationwide associates.
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 SA Capital Trust	Delaware	The trust acts as a holding company.
Nationwide Sales Solutions, Inc.	Iowa	The company engages in the direct marketing of property and casualty insurance products.
Nationwide Securities, LLC	Delaware	The company is a registered broker-dealer.
Nationwide Services Company, LLC	Ohio	The company performs shared services functions for the Nationwide organization.
Newhouse Capital Partners, LLC	Delaware	The company is an investment holding company.
Newhouse Capital Partners II, LLC	Delaware	The company is an investment holding company.
NFS Distributors, Inc.	Delaware	The company acts primarily as a holding company for Nationwide Financial Services, Inc. companies.
NWD Asset Management Holdings, Inc.	Delaware	The company acts as a holding company.
NWD Investment Management, Inc.	Delaware	The company acts as a holding company and provides other business services for the NWD Investments Management group of companies.
NWD Management & Research Trust	Delaware	The company acts as a holding company for the NWD Investments Management group.
Olentangy Reinsurance, LLC	Vermont	The company is a captive life reinsurance company.
Pension Associates, Inc.	Wisconsin	The company provides pension plan administration and recordkeeping services, and pension plan and compensation consulting.
Premier Agency, Inc.	Iowa	The company is an insurance agency.
Privilege Underwriters, Inc.	Delaware	The company acts as a holding company for the PURE Group of insurance companies.
Privilege Underwriters, Reciprocal Exchange	Florida	The company acts as a reciprocal insurance company.
Pure Insurance Company	Florida	The company acts as a captive reinsurance company.
Pure Risk Management, LLC	Florida	The company acts as an attorney-in-fact for Privilege Underwriters Reciprocal Exchange.
Registered Investment Advisors Services, Inc.	Texas	The company is a technology company that facilitates third-party money management services for registered investment advisors.
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 International Group, Inc.	Delaware	The company is an inactive shell company.
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.
THI Holdings (Delaware), Inc.	Delaware	The company acts as a holding company.
Titan Auto Insurance of New Mexico, Inc.	New Mexico	The company is an insurance agency that operates employee agent storefronts.
Titan Indemnity Company	Texas	The company is a multi-line insurance company that operates primarily as a property and casualty insurance company.

Titan Insurance Company	Michigan	The company is a property and casualty insurance company.
Titan Insurance Services, Inc.	Texas	The company is a Texas grandfathered managing general agency.
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 Fire & Casualty Company	Ohio	The company is a property and casualty insurance company.
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.
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.
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.
W.I. of Florida (d.b.a. Titan Auto Insurance)	Florida	The company is an insurance agency.

MFS Variable Account*	Ohio	Issuer of variable annuity contracts.
Nationwide Multi-Flex Variable Account*	Ohio	Issuer of variable annuity contracts.
Nationwide VA Separate Account-A*	Ohio	Issuer of variable annuity contracts.
Nationwide VA Separate Account-B*	Ohio	Issuer of variable annuity contracts.
Nationwide VA Separate Account-C*	Ohio	Issuer of variable annuity contracts.
Nationwide VA Separate Account-D*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-II*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-3*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-4*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-5*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-6*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-7*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-8*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-9*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-10*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-11*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-12*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-13*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-14*	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-15	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-16	Ohio	Issuer of variable annuity contracts.
Nationwide Variable Account-17	Ohio	Issuer of variable annuity contracts.
Nationwide Provident VA Separate Account 1*	Pennsylvania	Issuer of variable annuity contracts.
Nationwide Provident VA Separate Account A*	Delaware	Issuer of variable annuity contracts.
Nationwide VL Separate Account-A	Ohio	Issuer of variable life insurance policies.
Nationwide VL Separate Account-B	Ohio	Issuer of variable life insurance policies.

Nationwide VL Separate Account-C*	Ohio	Issuer of variable life insurance policies.
Nationwide VL Separate Account-D*	Ohio	Issuer of variable life insurance policies.
Nationwide VL Separate Account-G*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-2*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-3*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-4*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-5*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-6*	Ohio	Issuer of variable life insurance policies.
Nationwide VLI Separate Account-7*	Ohio	Issuer of variable life insurance policies.
Nationwide Provident VLI Separate Account 1*	Pennsylvania	Issuer of variable life insurance policies.
Nationwide Provident VLI Separate Account A*	Delaware	Issuer of variable life insurance policies.

The ownership and control of each of the companies/entities listed above (including the percentage of voting securities owned or other basis of control) is shown in the following organizational chart.

Item 27. Number of Contract Owners

N/A

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:

MFS Variable Account	Nationwide VA Separate Account-D
Multi-Flex Variable Account	Nationwide VLI Separate Account
Nationwide Variable Account	Nationwide VLI Separate Account-2
Nationwide Variable Account-II	Nationwide VLI Separate Account-3
Nationwide Variable Account-3	Nationwide VLI Separate Account-4
Nationwide Variable Account-4	Nationwide VLI Separate Account-5
Nationwide Variable Account-5	Nationwide VLI Separate Account-6
Nationwide Variable Account-6	Nationwide VLI Separate Account-7
Nationwide Variable Account-7	Nationwide VL Separate Account-A
Nationwide Variable Account-8	Nationwide VL Separate Account-C
Nationwide Variable Account-9	Nationwide VL Separate Account-D
Nationwide Variable Account-10	Nationwide VL Separate Account-G
Nationwide Variable Account-11	Nationwide Provident VA Separate Account 1
Nationwide Variable Account-12	Nationwide Provident VA Separate Account A
Nationwide Variable Account-13	Nationwide Provident VLI Separate Account 1
Nationwide Variable Account-14	Nationwide Provident VLI Separate Account A
Nationwide VA Separate Account-A
Nationwide VA Separate Account-B
Nationwide VA Separate Account-C

(b) Directors and Officers of NISC:

President	Robert O. Cline
Vice President, Treasurer and Director	Keith L. Sheridan
Vice President-Chief Compliance Officer	James J. Rabenstine
Associate Vice President and Secretary	Kathy R. Richards
Associate Vice President-Finance Operations and Assistant Treasurer	Terry C. Smetzer
Associate Vice President	John J. Humphries, Jr.
Assistant Treasurer	J. Morgan Elliott
Assistant Treasurer	Jerry L. Greene
Director	John L. Carter
Director	Eric S. Henderson

The business address of the Directors and Officers of 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.

Nationwide Life Insurance Company represents that the fees and charges deducted under the contract in the aggregate are reasonable in relation to the services rendered, the expenses expected to be incurred and risks assumed by Nationwide Life Insurance Company.

SIGNATURES

As required by the Securities Act of 1933, and the Investment Company Act of 1940, the Registrant, NATIONWIDE VARIABLE ACCOUNT-II, has caused this Registration Statement to be signed on its behalf in the City of Columbus, and State of Ohio, on this 8th day of March , 2013.

NATIONWIDE VARIABLE ACCOUNT-II

 (Registrant)

NATIONWIDE LIFE INSURANCE COMPANY

 (Depositor)

 By /s/   TIMOTHY D. CRAWFORD

    Timothy D. Crawford

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the 8 th   day of March , 2013 .

KIRT A. WALKER
Kirt A. Walker, President and Chief Operating Officer, and Director
MARK R. THRESHER
Mark R. Thresher, Executive Vice President  and Director
TIMOTHY G. FROMMEYER
Timothy G. Frommeyer, Senior Vice President-Chief Financial Officer and Director
ERIC S. HENDERSON
Eric S. Henderson. Senior Vice President-Individual Products & Solutions and Director
JOHN L. CARTER
John L. Carter, Senior Vice President-Distribution and Sales and Director
STEPHEN S. RASMUSSEN
Stephen S. Rasmussen, Director
	By /s/ TIMOTHY D. CRAWFORD
	Timothy D. Crawford
	Attorney-in-Fact