Nationwide^®

VA Separate Account-A

Annual Report

to

Contract Owners

December 31, 2007

NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

HOME OFFICE: COLUMBUS, OHIO

FHL–108 –12/07

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2007

Assets:
Investments at fair value:
American Century VP – Balanced Fund – Class I (ACVPBal) 374,400 shares (cost $2,459,722)	$	2,744,354
Federated IS – American Leaders Fund II – Primary Shares (FedAmLead) 920 shares (cost $17,465)		15,766
Federated IS – High Income Bond Fund II – Primary Shares (FedHiInc) 2,086 shares (cost $16,024)		15,624
Fidelity® VIP – Equity-Income Portfolio – Initial Class (FidVIPEI) 1,530 shares (cost $35,639)		36,592
Fidelity® VIP – Growth Portfolio – Initial Class (FidVIPGr) 387,798 shares (cost $14,752,728)		17,497,436
Fidelity® VIP – Overseas Portfolio – Initial Class (FidVIPOv) 1,535 shares (cost $31,306)		38,855
MFS VIT – Total Return Series – Initial Class (MFSTotReSe) 840 shares (cost $14,639)		18,204
Nationwide VIT – Government Bond Fund – Class I (NVITGvtBd) 413,846 shares (cost $4,907,336)		4,813,023
Nationwide VIT – Growth Fund – Class I (NVITGrowth) 98,868 shares (cost $1,223,387)		1,433,580
Nationwide VIT – Money Market Fund – Class I (NVITMyMkt) 856,730 shares (cost $856,730)		856,730
Nationwide VIT – Nationwide Fund – Class I (NVITNWFund) 839,572 shares (cost $9,280,852)		11,409,787
Neuberger Berman AMT – Balanced Portfolio – I Class Shares (NBTBal) 390,296 shares (cost $3,809,582)		5,105,073
Total investments		43,985,024
Accounts receivable		–
Total assets		43,985,024
Accounts payable		20
Contract owners’ equity (note 4)	$	43,985,004

See accompanying notes to financial statements.

2

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENTS OF OPERATIONS

Year Ended December 31, 2007

Investment activity:		Total		ACVPBal		FedAmLead		FedHiInc		FidVIPEI		FidVIPGr		FidVIPOv		MFSTotReSe
Reinvested dividends	$	663,289		66,256		246		1,214		694		142,950		1,221		462
Mortality and expense risk charges (note 2)		(594,824	)	(40,033	)	(244	)	(221	)	(551	)	(224,169	)	(519	)	(258	)
Net investment income (loss)		68,465		26,223		2		993		143		(81,219	)	702		204
Proceeds from mutual fund shares sold		10,361,853		657,918		244		221		28,050		3,872,969		519		258
Cost of mutual fund shares sold		(10,927,128	)	(642,928	)	(230	)	(231	)	(24,395	)	(4,880,844	)	(439	)	(184	)
Realized gain (loss) on investments		(565,275	)	14,990		14		(10	)	3,655		(1,007,875	)	80		74
Change in unrealized gain (loss) on investments		5,744,050		(91,568	)	(3,787	)	(679	)	(6,927	)	4,912,748		2,158		(232	)
Net gain (loss) on investments		5,178,775		(76,578	)	(3,773	)	(689	)	(3,272	)	3,904,873		2,238		(158	)
Reinvested capital gains		775,126		161,316		1,835		–		3,059		14,387		2,323		442
Net increase (decrease) in contract owners’ equity resulting from operations	$	6,022,366		110,961		(1,936	)	304		(70	)	3,838,041		5,263		488

Investment activity:		NVITGvtBd		NVITGrowth		NVITMyMkt		NVITNWFund		NBTBal
Reinvested dividends	$	218,428		2,461		40,968		128,926		59,463
Mortality and expense risk charges (note 2)		(65,241	)	(19,152	)	(11,535	)	(163,796	)	(69,105	)
Net investment income (loss)		153,187		(16,691	)	29,433		(34,870	)	(9,642	)
Proceeds from mutual fund shares sold		1,036,469		549,638		619,782		2,600,221		995,564
Cost of mutual fund shares sold		(1,105,201	)	(624,850	)	(619,782	)	(2,217,199	)	(810,845	)
Realized gain (loss) on investments		(68,732	)	(75,212	)	–		383,022		184,719
Change in unrealized gain (loss) on investments		189,691		325,473		–		(100,256	)	517,429
Net gain (loss) on investments		120,959		250,261		–		282,766		702,148
Reinvested capital gains		–		–		–		591,764		–
Net increase (decrease) in contract owners’ equity resulting from operations	$	274,146		233,570		29,433		839,660		692,506

See accompanying notes to financial statements.

3

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2007 and 2006

		Total				ACVPBal				FedAmLead				FedHiInc
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	68,465		(39,738	)	26,223		23,273		2		9		993		1,010
Realized gain (loss) on investments		(565,275	)	(1,946,141	)	14,990		(25,791	)	14		21		(10	)	(12	)
Change in unrealized gain (loss) on investments		5,744,050		5,120,473		(91,568	)	36,005		(3,787	)	375		(679	)	301
Reinvested capital gains		775,126		276,989		161,316		222,338		1,835		1,928		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		6,022,366		3,411,583		110,961		255,825		(1,936	)	2,333		304		1,299
Equity transactions:
Purchase payments received from contract owners (note 3)		201,706		331,251		4,703		17,118		–		–		–		–
Transfers between funds		–		–		2,410		38,026		–		–		–		–
Redemptions (note 3)		(8,181,316	)	(10,443,630	)	(554,167	)	(658,250	)	–		–		–		–
Annuity benefits		(18,183	)	(16,426	)	–		–		–		–		–		–
Annual contract maintenance charges (note 2)		(55,738	)	(64,290	)	(4,056	)	(4,566	)	–		–		–		–
Contingent deferred sales charges (note 2)		(12,699	)	(5,651	)	(544	)	(399	)	–		–		–		–
Adjustments to maintain reserves		2,220		2,169		(18	)	(4	)	1		(2	)	(1	)	(1	)
Net equity transactions		(8,064,010	)	(10,196,577	)	(551,672	)	(608,075	)	1		(2	)	(1	)	(1	)
Net change in contract owners’ equity		(2,041,644	)	(6,784,994	)	(440,711	)	(352,250	)	(1,935	)	2,331		303		1,298
Contract owners’ equity beginning of period		46,026,648		52,811,642		3,185,055		3,537,305		17,691		15,360		15,320		14,022
Contract owners’ equity end of period	$	43,985,004		46,026,648		2,744,344		3,185,055		15,756		17,691		15,623		15,320
CHANGES IN UNITS:
Beginning units		1,638,177		2,016,041		257,528		309,457		767		767		912		912
Units purchased		82,434		73,016		4,804		7,222		–		–		–		–
Units redeemed		(346,600	)	(450,880	)	(48,074	)	(59,151	)	–		–		–		–
Ending units		1,374,011		1,638,177		214,258		257,528		767		767		912		912

(Continued)

4

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		FidVIPEI				FidVIPGr				FidVIPOv				MFSTotReSe
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	143		1,125		(81,219	)	(165,357	)	702		(168	)	204		151
Realized gain (loss) on investments		3,655		13		(1,007,875	)	(2,017,878	)	80		23		74		58
Change in unrealized gain (loss) on investments		(6,927	)	1,819		4,912,748		3,137,044		2,158		4,705		(232	)	938
Reinvested capital gains		3,059		7,070		14,387		–		2,323		182		442		513
Net increase (decrease) in contract owners’ equity resulting from operations		(70	)	10,027		3,838,041		953,809		5,263		4,742		488		1,660
Equity transactions:
Purchase payments received from contract owners (note 3)		–		–		65,114		98,130		–		–		–		–
Transfers between funds		–		–		(365,894	)	(74,176	)	–		–		–		–
Redemptions (note 3)		(27,496	)	–		(3,036,782	)	(3,951,456	)	–		–		–		–
Annuity benefits		–		–		(9,355	)	(8,386	)	–		–		–		–
Annual contract maintenance charges (note 2)		–		–		(21,620	)	(25,468	)	–		–		–		–
Contingent deferred sales charges (note 2)		–		–		(5,452	)	(2,028	)	–		–		–		–
Adjustments to maintain reserves		13		(4	)	1,191		1,050		(3	)	(2	)	(2	)	(2	)
Net equity transactions		(27,483	)	(4	)	(3,372,798	)	(3,962,334	)	(3	)	(2	)	(2	)	(2	)
Net change in contract owners’ equity		(27,553	)	10,023		465,243		(3,008,525	)	5,260		4,740		486		1,658
Contract owners’ equity beginning of period		64,156		54,133		17,032,251		20,040,776		33,585		28,845		17,705		16,047
Contract owners’ equity end of period	$	36,603		64,156		17,497,494		17,032,251		38,845		33,585		18,191		17,705
CHANGES IN UNITS:
Beginning units		2,023		2,023		524,256		651,130		1,670		1,670		785		785
Units purchased		–		–		9,334		10,247		–		–		–		–
Units redeemed		(870	)	–		(104,152	)	(137,121	)	–		–		–		–
Ending units		1,153		2,023		429,438		524,256		1,670		1,670		785		785

(Continued)

5

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NVITGvtBd				NVITGrowth				NVITMyMkt				NVITNWFund
Investment activity:		2007		2006		2007		2006		2007		2006		2007		2006
Net investment income (loss)	$	153,187		158,217		(16,691	)	(20,047	)	29,433		25,952		(34,870	)	(32,342	)
Realized gain (loss) on investments		(68,732	)	(69,141	)	(75,212	)	(118,092	)	–		–		383,022		167,802
Change in unrealized gain (loss) on investments		189,691		(26,606	)	325,473		199,990		–		–		(100,256	)	1,346,219
Reinvested capital gains		–		44,958		–		–		–		–		591,764		–
Net increase (decrease) in contract owners’ equity resulting from operations		274,146		107,428		233,570		61,851		29,433		25,952		839,660		1,481,679
Equity transactions:
Purchase payments received from contract owners (note 3)		15,274		20,658		30,863		8,371		5,000		68,244		47,241		86,295
Transfers between funds		187,668		(122,228	)	(30,462	)	(80,414	)	349,138		220,890		(181,991	)	10,530
Redemptions (note 3)		(990,193	)	(1,139,198	)	(274,240	)	(262,656	)	(328,902	)	(366,459	)	(2,064,429	)	(2,594,522	)
Annuity benefits		–		–		–		–		–		–		(5,159	)	(4,692	)
Annual contract maintenance charges (note 2)		(5,876	)	(6,973	)	(1,995	)	(2,124	)	(885	)	(989	)	(15,035	)	(16,984	)
Contingent deferred sales charges (note 2)		(5,102	)	(708	)	(219	)	(86	)	–		(203	)	(1,223	)	(1,563	)
Adjustments to maintain reserves		(17	)	32		(4	)	7		(18	)	(33	)	622		605
Net equity transactions		(798,246	)	(1,248,417	)	(276,057	)	(336,902	)	24,333		(78,550	)	(2,219,974	)	(2,520,331	)
Net change in contract owners’ equity		(524,100	)	(1,140,989	)	(42,487	)	(275,051	)	53,766		(52,598	)	(1,380,314	)	(1,038,652	)
Contract owners’ equity beginning of period		5,337,119		6,478,108		1,476,097		1,751,148		802,936		855,534		12,790,102		13,828,754
Contract owners’ equity end of period	$	4,813,019		5,337,119		1,433,610		1,476,097		856,702		802,936		11,409,788		12,790,102
CHANGES IN UNITS:
Beginning units		190,560		235,928		84,033		104,468		47,555		52,279		318,066		385,898
Units purchased		7,897		15,698		13,644		2,053		36,637		20,753		6,353		14,363
Units redeemed		(35,966	)	(61,066	)	(28,502	)	(22,488	)	(35,132	)	(25,477	)	(58,800	)	(82,195	)
Ending units		162,491		190,560		69,175		84,033		49,060		47,555		265,619		318,066

(Continued)

6

NATIONWIDE VA SEPARATE ACCOUNT-A

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY, Continued

Years Ended December 31, 2007 and 2006

		NBTBal
Investment activity:		2007		2006
Net investment income (loss)	$	(9,642	)	(31,561	)
Realized gain (loss) on investments		184,719		116,856
Change in unrealized gain (loss) on investments		517,429		419,683
Reinvested capital gains		–		–
Net increase (decrease) in contract owners’ equity resulting from operations		692,506		504,978
Equity transactions:
Purchase payments received from contract owners (note 3)		33,511		32,435
Transfers between funds		39,131		7,372
Redemptions (note 3)		(905,107	)	(1,471,089	)
Annuity benefits		(3,669	)	(3,348	)
Annual contract maintenance charges (note 2)		(6,271	)	(7,186	)
Contingent deferred sales charges (note 2)		(159	)	(664	)
Adjustments to maintain reserves		456		523
Net equity transactions		(842,108	)	(1,441,957	)
Net change in contract owners’ equity		(149,602	)	(936,979	)
Contract owners’ equity beginning of period		5,254,631		6,191,610
Contract owners’ equity end of period	$	5,105,029		5,254,631
CHANGES IN UNITS:
Beginning units		210,022		270,724
Units purchased		3,765		2,680
Units redeemed		(35,104	)	(63,382	)
Ending units		178,683		210,022

See accompanying notes to financial statements.

7

NATIONWIDE VA SEPARATE ACCOUNT-A

NOTES TO FINANCIAL STATEMENTS

December 31, 2007 and 2006

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

Nationwide VA Separate Account-A (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life and Annuity Insurance Company (the Company) on May 6, 1987. 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 through the Account. The primary distribution for the contracts is through banks and other financial institutions; however, other distributors may be utilized.

(b) The Contracts

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

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

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

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

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

Portfolios of the Federated Insurance Series (Federated IS);

Federated IS – American Leaders Fund II – Primary Shares (FedAmLead)

Federated IS – High Income Bond Fund II – Primary Shares (FedHiInc)

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

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

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

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

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

MFS VIT – Emerging Growth Series – Initial Class (MFSEmerGro)*

MFS VIT – Total Return Series – Initial Class (MFSTotReSe)

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

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

Nationwide VIT – Growth Fund – Class I (NVITGrowth)

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

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

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

Nationwide VIT – Nationwide Fund – Class I (NVITNWFund)

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

Neuberger Berman AMT – Balanced Portfolio – I Class Shares (NBTBal)

*At December 31, 2007, 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.

(Continued)

8

NATIONWIDE VA SEPARATE ACCOUNT-A (NOTES TO FINANCIAL STATEMENTS, Continued)

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.

(c) Security Valuation, Transactions and Related Investment Income

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

(d) Federal Income Taxes

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

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

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

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

(f) Calculation of Annuity Reserves

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

(g) New Accounting Pronouncement

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

(Continued)

9

NATIONWIDE VA SEPARATE ACCOUNT-A (NOTES TO FINANCIAL STATEMENTS, Continued)

(2) Expenses

The Company does not deduct a sales charge from purchase payments received from the contract owners. However, if any part of the contract value of such contracts is surrendered, the Company will, with certain exceptions, deduct from a contract owners’ contract value a contingent deferred sales charge not to exceed 7% of the purchase payments surrendered. This charge declines 1% per year, After the purchase payment has been held in the contract for 7 years the charge is 0%. No sales charges are deducted on redemptions used to purchase units in the fixed investment options of the Company.

The Company offers two products through the Account, the NLAIC Annuity product and the Eagle Choice product. The following contract charges are deducted by the Company: (a) for the NLAIC Annuity contracts an annual contract maintenance charge of $30, dependent upon contract type and issue date, which is satisfied by surrendering units; for the Eagle Choice contracts a one-time contract maintenance charge of up to $50, dependent upon the initial purchase payment and contract type; and (b) for the NLAIC Annuity contracts a mortality and expense risk charge and an administration charge assessed through the daily unit value calculation equal to an annualized rate of 1.25% and 0.05%, respectively; for the Eagle Choice contracts a mortality and expense risk charge and an administration charge assessed through the daily unit value calculation equal to an annualized rate of 1.25% and 0.15%, respectively. No charges are deducted from the initial funding to the Account by the Company, or from earnings thereon.

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2007.

	Total		ACVPBal	FedAmLead	FedHiInc	FidVIPEI	FidVIPGr	FidVIPOv	MFSTotReSe
1.30%	$	593,031	40,033	–	–	–	224,169	–	–
1.40%		1,793	–	244	221	551	–	519	258
Totals	$	594,824	40,033	244	221	551	224,169	519	258
	NVITGvtBd		NVITGrowth	NVITMyMkt	NVITNWFund	NBTBal
1.30%	$	65,241	19,152	11,535	163,796	69,105
1.40%		–	–	–	–	–
Totals	$	65,241	19,152	11,535	163,796	69,105

(3) Related Party Transactions

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

Contract owners may, with certain restrictions, transfer their assets between the Account and a fixed dollar contract (fixed account) maintained in the accounts of the Company. The fixed account assets are not reflected in the accompanying financial statements. In addition, the Account portion of contract owner loans is transferred to the accounts of the Company for administration and collection. Loan repayments are transferred to the Account at the direction of the contract owner. For the years ended December 31, 2007 and 2006, total transfers to the Account from the fixed account were $86,956 and $84,416, respectively, and total transfers from the Account to the fixed account were $116,825 and $227,223, respectively. Transfers from the Account to the fixed account are included in redemptions, and transfers to the Account from the fixed account are included in purchase payments received from contract owners, as applicable, on the accompanying Statements of Changes in Contract Owners’ Equity.

For guaranteed minimum death benefits, the Company contributed $9,273 and $20,552 to the Account in the form of additional premium to contract owner accounts for the years ended December 31, 2007 and 2006, respectively. These amounts are included in purchase payments received from contract owners and are credited at time of annuitant death.

(Continued)

10

    NATIONWIDE VA SEPARATE ACCOUNT-A (NOTES TO FINANCIAL STATEMENTS, Continued)

(4) Financial Highlights

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 the contract expense rate, investment income ratio and total return for each of the periods in the five year period ended December 31, 2007.

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
American Century VP – Balanced Fund – Class I
2007	1.30%	214,258	$	12.808596	$	2,744,344	2.23%	3.56%
2006	1.30%	257,528		12.367801		3,185,055	1.97%	8.20%
2005	1.30%	309,457		11.430683		3,537,305	1.90%	3.57%
2004	1.30%	371,104		11.036175		4,095,569	1.76%	8.35%
2003	1.30%	461,567		10.185550		4,701,314	2.56%	17.91%
Federated IS – American Leaders Fund II – Primary Shares
2007	1.40%	767		20.542938		15,756	1.47%	-10.94%
2006	1.40%	767		23.065511		17,691	1.41%	15.18%
2005	1.40%	767		20.026048		15,360	1.47%	3.56%
2004	1.40%	768		19.338318		14,852	1.91%	8.24%
2003	1.40%	1,743		17.865693		31,140	1.45%	25.91%
Federated IS – High Income Bond Fund II – Primary Shares
2007	1.40%	912		17.130075		15,623	7.85%	1.97%
2006	1.40%	912		16.798651		15,320	8.27%	9.26%
2005	1.40%	912		15.375187		14,022	7.98%	1.22%
2004	1.40%	912		15.189419		13,853	6.87%	8.91%
2003	1.40%	912		13.946223		12,719	7.23%	20.51%
Fidelity® VIP – Equity-Income Portfolio – Initial Class
2007	1.40%	1,153		31.745607		36,603	1.38%	0.10%
2006	1.40%	2,023		31.713457		64,156	3.28%	18.52%
2005	1.40%	2,023		26.758789		54,133	1.56%	4.39%
2004	1.40%	2,023		25.634055		51,858	1.73%	9.97%
2003	1.40%	2,805		23.310338		65,385	1.69%	28.51%
Fidelity® VIP – Growth Portfolio – Initial Class
2007	1.30%	429,438		40.455652		17,373,194	0.83%	25.31%
2006	1.30%	524,256		32.285532		16,925,884	0.41%	5.46%
2005	1.30%	651,130		30.612671		19,932,828	0.51%	4.43%
2004	1.30%	814,161		29.314781		23,866,951	0.27%	2.03%
2003	1.30%	993,685		28.730299		28,548,867	0.28%	31.12%
Fidelity® VIP – Overseas Portfolio – Initial Class
2007	1.40%	1,670		23.260397		38,845	3.37%	15.66%
2006	1.40%	1,670		20.110798		33,585	0.84%	16.43%
2005	1.40%	1,670		17.272664		28,845	0.60%	17.38%
2004	1.40%	1,671		14.714573		24,588	1.20%	12.05%
2003	1.40%	2,025		13.132716		26,594	0.75%	41.36%
MFS VIT – Total Return Series – Initial Class
2007	1.40%	785		23.173470		18,191	2.57%	2.75%
2006	1.40%	785		22.553664		17,705	2.27%	10.33%
2005	1.40%	785		20.441579		16,047	2.00%	1.38%
2004	1.40%	785		20.162536		15,828	0.98%	9.76%
2003	1.40%	1,840		18.369150		33,799	1.70%	14.69%
Nationwide VIT – Government Bond Fund – Class I
2007	1.30%	162,491		29.620219		4,813,019	4.30%	5.76%
2006	1.30%	190,560		28.007554		5,337,119	3.97%	2.00%
2005	1.30%	235,928		27.457989		6,478,108	3.56%	1.92%
2004	1.30%	299,705		26.939467		8,073,893	5.45%	1.92%
2003	1.30%	365,935		26.432024		9,672,403	3.19%	0.67%
Nationwide VIT – Growth Fund – Class I
2007	1.30%	69,175		20.724395		1,433,610	0.17%	17.98%
2006	1.30%	84,033		17.565687		1,476,097	0.05%	4.79%
2005	1.30%	104,468		16.762531		1,751,148	0.08%	5.12%
2004	1.30%	120,486		15.946096		1,921,281	0.30%	6.75%
2003	1.30%	143,283		14.937671		2,140,314	0.02%	31.02%

(Continued)

11

NATIONWIDE VA SEPARATE ACCOUNT-A (NOTES TO FINANCIAL STATEMENTS, Continued)

	Contract Expense Rate*	Units	Unit Fair Value		Contract Owners’ Equity		Investment Income Ratio**	Total Return***
Nationwide VIT – Money Market Fund – Class I
2007	1.30%	49,060	$	17.462322	$	856,702	4.94%	3.42%
2006	1.30%	47,555		16.884372		802,936	4.43%	3.18%
2005	1.30%	52,279		16.364776		855,534	2.79%	1.34%
2004	1.30%	66,933		16.148866		1,080,892	0.81%	-0.50%
2003	1.30%	108,259		16.229879		1,757,030	0.62%	-0.68%
Nationwide VIT – Nationwide Fund – Class I
2007	1.30%	265,619		42.735674		11,351,407	1.07%	6.77%
2006	1.30%	318,066		40.026869		12,731,186	1.05%	12.15%
2005	1.30%	385,898		35.688932		13,772,287	0.87%	6.05%
2004	1.30%	491,383		33.653268		16,536,644	1.22%	8.32%
2003	1.30%	589,962		31.067022		18,328,362	0.55%	25.86%
Neuberger Berman AMT – Balanced Portfolio – I Class Shares
2007	1.30%	178,683		28.299559		5,056,650	1.15%	14.09%
2006	1.30%	210,022		24.803958		5,209,377	0.76%	9.23%
2005	1.30%	270,724		22.707466		6,147,456	0.92%	7.77%
2004	1.30%	333,788		21.071030		7,033,257	1.16%	7.89%
2003	1.30%	386,824		19.530231		7,554,762	1.66%	14.77%

2007 Reserves for annuity contracts in payout phase:		231,060
2007 Contract owners’ equity	$	43,985,004
2006 Reserves for annuity contracts in payout phase:		210,537
2006 Contract owners’ equity	$	46,026,648
2005 Reserves for annuity contracts in payout phase:		208,569
2005 Contract owners’ equity	$	52,811,642
2004 Reserves for annuity contracts in payout phase:		216,598
2004 Contract owners’ equity	$	62,946,064
2003 Reserves for annuity contracts in payout phase:		257,331
2003 Contract owners’ equity	$	73,130,020

* This represents the annual contract expense rate of the variable account for the period indicated and includes only those expenses that are charged through a reduction in the unit values. Excluded are expenses of the underlying mutual funds and charges made directly to contract owner accounts through the redemption of units.

** This represents the dividends for the period indicated, excluding distributions of capital gains, received by the subaccount from the underlying mutual fund, net of management fees assessed by the fund manager, divided by average net assets. The ratios exclude those expenses, such as mortality and expense charges or annual contract maintenance charges, that result in direct reductions to the contractholder accounts through reductions in unit values or redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying fund in which the sub-accounts invest.

*** This represents the total return for the period indicated and includes a deduction only for expenses assessed through the daily unit value calculation. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

12

Report of Independent Registered Public Accounting Firm

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

    Contract Owners of Nationwide VA Separate Account-A:

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

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the transfer agents of the underlying mutual funds. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Accounts as of December 31, 2007, and the results of their operations, changes in contract owners’ equity, and financial highlights for each of the periods indicated herein, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

Columbus, Ohio

March 18, 2008

13

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

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