UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933	File No. 333-140812
Pre-Effective Amendment No.	o
Post-Effective Amendment No. 10	þ
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940	File No. 811- 0 5701
Amendment No. 41	þ

(Check appropriate box or boxes.)

NATIONWIDE VARIABLE ACCOUNT - 4

(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 May 1, 2012

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

o      immediately upon filing pursuant to paragraph (b)

þ      on May 1, 2012 pursuant to paragraph (b)

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

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

Title of Securities Being Registered Individual Deferred Variable Annuity Contract

America's marketFLEX® Advisor Annuity

Nationwide Life Insurance Company

Individual Deferred Variable Annuity Contracts

Issued by Nationwide Life Insurance Company through its Nationwide Variable Account-4

The date of this prospectus is May 1, 2012 .

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 May 1, 2012 ), 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 30.

T o obtain free copies of the Statement of Additional Information, or to make any other service or transaction requests, please contact the Service Center by one of the methods described in the "Contacting the Service Center" provision. :

Information about us and the product (including the Statement of Additional Information) may also be reviewed and copied at the SEC's Public Reference Room in Washington, D.C., or may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC, 100 F Street NE, Washington, D.C. 20549.  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 website (www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information.

Before investing, understand that annuities and/or life insurance products are not insured by the Federal Deposit Insurance Corporation or any other federal government agency, and are not deposits or obligations of, guaranteed by, or insured by the depository institution where offered or any of its affiliates. Variable annuity contracts involve investment risk and may lose value.

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

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

The Sub-Accounts available under this contract invest in the 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.

·   BlackRock Variable Series Funds, Inc.

·    Credit Suisse Trust

·    Direxion Insurance Trust

·   Fidelity Variable Insurance Products Fund

·   Franklin Templeton Variable Insurance Products Trust

·    Guggenheim Variable Fund

·    Ivy Funds Variable Insurance Portfolios, Inc.

·   MFS® Variable Insurance Trust II

·   Nationwide Variable Insurance Trust

·   PIMCO Variable Insurance Trust

·   Pioneer Variable Contracts Trust

·   ProFunds

·   Rydex Variable Trust

·   The Universal Institutional Funds, Inc.

·   Van Eck VIP Trust

For a complete list of the available Sub-Accounts, please refer to "Appendix A: Underlying Mutual Funds."  For more information on the underlying mutual funds, please 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 Variable Account Contract Value before the Annuitization Date.

Annuitant- The person upon whose continuation of life benefit payments involving life contingencies depends.

Annuitization Date- The date on which annuity payments begin.

Annuity Commencement Date- The date on which annuity payments are scheduled to begin.  This date may be changed by the Contract Owner with Nationwide's consent.

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

Charitable Remainder Trust- A trust meeting the requirements of Section 664 of the Internal Revenue Code.

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

Contract Value- The total value of all Accumulation Units held under the contract.

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

Daily Net Assets- A figure that is calculated at the end of each Valuation Period 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.

ERISA- The Employee Retirement Income Security Act of 1974, as amended.

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

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

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

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

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

Qualified Plans- Retirement plans which receive favorable tax treatment under Section 401 of the Internal Revenue Code.  In this prospectus, all provisions applicable to Qualified Plans apply to Investment-Only Contracts unless specifically stated otherwise.

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

SEC- Securities and Exchange Commission.

Service Center- The department of Nationwide responsible for receiving all service and transaction requests relating to the contract.  For service and transaction requests submitted other than by telephone (including fax requests), the Service Center is Nationwide's mail and document processing facility.  For service and transaction requests communicated by telephone, the Service Center is Nationwide's operations processing facility.  Information on how to contact the Service Center is in the "Contacting the Service Center" provision.

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

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

Sub-Accounts- Divisions of the Variable Account 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.  The Tax Sheltered Annuities sold under this prospectus are not available in connection with investment plans that are subject to ERISA.

Valuation Period ("Valuation Day")- 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.

Variable Account- Nationwide Variable Account-4, a separate account of Nationwide that contains Variable Account allocations.  The Variable Account is divided into Sub-Accounts, each of which invests in shares of a separate underlying mutual fund.

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Table of Contents	Page
Glossary of Special Terms	2
Synopsis	5
Underlying Mutual Fund Annual Expenses	6
Example	6
Condensed Financial Information	6
Financial Statements	6
Nationwide Life Insurance Company	6
Nationwide Investment Services Corporation	7
Investing in the Contract	7
Minimum Initial and Subsequent Purchase Payments
Dollar Limit Restrictions The Variable Account and Underlying Mutual Funds Annuity Payments Taxation Right to Examine and Cancel
Contacting the Service Center	9
The Contract in General	9
Distribution and Promotional Expenses
Underlying Mutual Fund Payments
Profitability
Contract Modification
Standard Charges and Deductions	11
Underlying Mutual Fund Annual Expenses Mortality and Expense Risk Charge
Administrative Charge
Premium Taxes
Short-Term Trading Fees
Optional Contract Benefits, Charges and Deductions	12
Return of Premium Enhanced Death Benefit Option
Extra Value Options
Removal of Variable Account Charges
Ownership and Interests in the Contract	14
Contract Owner
Joint Owner
Contingent Owner
Annuitant
Contingent Annuitant
Co-Annuitant
Beneficiary and Contingent Beneficiary
Changes to the Parties to the Contract
Operation of the Contract	15
Minimum Initial and Subsequent Purchase Payments
Pricing
Application and Allocation of Purchase Payments
Determining the Contract Value
Transfers Prior to Annuitization
Frequent Trading and Transfer Restrictions
Transfers After Annuitization
Transfer Requests
Right to Examine and Cancel	20
Surrender (Redemption)	21
Partial Surrenders (Partial Redemptions)
Full Surrenders (Full Redemptions)
Surrenders Under a Texas Optional Retirement Program or a Louisiana Optional Retirement Plan
Surrenders Under a Tax Sheltered Annuity
Assignment	22
Contract Owner Services	22
Systematic Withdrawals

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Table of Contents (continued)	Page
Annuity Commencement Date	22
Annuitizing the Contract	23
Annuitization Date
Annuitization
Fixed Payment Annuity
Variable Payment Annuity
Frequency and Amount of Annuity Payments
Annuity Payment Options
Death Benefits	24
Death of Contract Owner – Non-Qualified Contracts
Death of Annuitant – Non-Qualified Contracts
Death of Contract Owner/Annuitant
Death Benefit Payment
Death Benefit Calculations
Statements and Reports	26
Legal Proceedings	26
Table of Contents of the Statement of Additional Information	30
Appendix A: Underlying Mutual Funds	31
Appendix B: Condensed Financial Information	47
Appendix C: Contract Types and Tax Information	73

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Synopsis

Contract Expenses

The following tables describe the fees and expenses that a Contract Owner will pay when buying, owning, or surrendering the contract.  Please refer to the applicable section later in this prospectus for a detailed description of each charge.

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 amount)	1%

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

Recurring Contract Expenses
Variable Account Annual Expenses (annualized rate of total Variable Account charges as a percentage of the Daily Net Assets)
Mortality and Expense Risk Charge	0.25%
Administrative Charge	0.20%
Return of Premium Enhanced Death Benefit Option Charge                                                                                                                                              Total Variable Account Charges (including this option only)	0.20% 0.65%
Extra Value Options2(an applicant may elect one)
3% Extra Value Option Charge                                                                                                                                        Total Variable Account Charges (including this option only)	0.40% 0.85%
4% Extra Value Option Charge                                                                                                                                        Total Variable Account Charges (including this option only)	0.55% 1.00%

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

Summary of Maximum Contract Expenses (Expenses shown are the annualized rates charged as a percentage of the Daily Net Assets of the Variable Account.)
Mortality and Expense Risk Charge (applicable to all contracts)	0.25%
Administrative Charge (applicable to all contracts)	0.20%
Return of Premium Enhanced Death Benefit OptionCharge	0.20%
4% Extra Value OptionCharge	0.55%
Maximum Possible Total Variable Account Charges	1.20%

 

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 Nationwide will discontinue deducting the charge associated with the 3% and 4% Extra Value Options seven years from the date the contract was issued.

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Underlying Mutual Fund Annual Expenses

The next table provides the minimum and maximum total operating expenses, as of December 31, 2011 , charged by the underlying mutual funds that you may pay periodically during the life of the contract.  The table does not reflect Short-Term Trading Fees.  More detail concerning each underlying mutual fund's fees and expenses is contained in the prospectus for each underlying mutual fund.

Total Annual Underlying Mutual Fund Operating Expenses	Minimum	Maximum
Expenses that are deducted from underlying mutual fund assets, including management fees, distribution (12b-1) fees, and other expenses, as a percentage of underlying mutual fund assets.	0.54 %	5.51 %

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

Example

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

The Example assumes:

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

·   a 5% return each year;

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

·   the total Variable Account charges associated with the most expensive combination of optional benefits (1.20%).

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 ( 5.51 %)	$ 705	$2,071	$3,382	$6,431	*	$2,071	$3,382	$6,431	$ 705	$2,071	$3,382	$6,431
Minimum Total Underlying Mutual Fund Operating Expenses ( 0.54 %)	$ 183	$ 566	$ 973	$2,111	*	$ 566	$ 973	$2,111	$ 183	$ 566	$ 973	$2,111

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

Condensed Financial Information

The value of an Accumulation Unit is determined on the basis of changes in the per share value of the underling mutual funds and the assessment of Variable Account charges which may vary from contract to contract (for more information on the calculation of Accumulation Unit values, see "Determining Variable Account Value – Valuing an Accumulation Unit").  Please refer to "Appendix B: Condensed Financial Information" for information regarding the minimum and maximum class of Accumulation Unit values.  All classes of Accumulation Unit values may be obtained, free of charge, by contacting the Service Center .

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.

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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 contracts described in this prospectus are flexible purchase payment contracts.  The contracts may be issued as either individual or group contracts.  In those states where contracts are issued as group contracts, references throughout this prospectus to "contract(s)" will also mean "certificate(s)."

The contracts can be categorized as follows:

·   Charitable Remainder Trusts;

·   Individual Retirement Annuities ("IRAs");

·   Investment-Only Contracts;

·   Non-Qualified Contracts;

·   Roth IRAs;

·   Simple IRAs;

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

·   Tax Sheltered Annuities (Non-ERISA).

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

Minimum Initial and Subsequent Purchase Payments

Contract Type	Minimum Initial Purchase Payment	Minimum Subsequent Payments*
Non-Qualified	$10,000	$500
IRA	$10,000	$500
SEP IRA	$10,000	$500
Simple IRA	$10,000	$500
Roth IRA	$10,000	$500
Tax Sheltered Annuity**	$10,000	$500
Investment-Only	$10,000	$500
Charitable Remainder Trust	$10,000	$500

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

**Only available for individual 403(b) Tax Sheltered Annuity contracts subject to ERISA and certain state Optional Retirement Plans and/or Programs that have purchased at least one individual annuity contract issued by Nationwide prior to September 25, 2007.

Some states have different minimum initial and subsequent purchase payment amounts, and subsequent purchase payments may not be permitted in all states.

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

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.  Any references in this prospectus to purchase payment amounts in excess of $1,000,000 are assumed to have been approved by Nationwide.

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.  Your annuity payment options will be limited if you submit 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.

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.

The Variable Account and Underlying Mutual Funds

Nationwide Variable Account-4 is a variable account that contains the underlying mutual funds listed in "Appendix A: Underlying Mutual Funds."  The Variable Account was established on October 7, 1987, 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.

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

The Variable Account is divided into Sub-Accounts, each corresponding to a single underlying mutual fund.  Nationwide uses the assets of each Sub-Account to buy shares of the underlying mutual funds based on Contract Owner instructions.

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 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 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 fund.

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.

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 allowing Nationwide 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 of the vote.

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

Material Conflicts

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

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

Substitution of Securities

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

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

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

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

Deregistration of the Separate Account

Nationwide may deregister Nationwide Variable Account-4 under the 1940 Act in the event the separate 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.

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

Annuity Payments

Annuity payments begin on the Annuitization Date and 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 "Federal Tax Considerations" in "Appendix C: Contract Types and Tax Information" and "Premium Taxes").

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 Extra Value Option credits, withdrawals from the contract, and applicable federal and state income tax withholding.  Otherwise, Nationwide will return the Contract Value, less any Extra Value Option credits, withdrawals from the contract, and applicable federal and state income tax withholding.

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, investment options, age issuance limitations, availability of certain 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, please contact the Service Center.

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

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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.

These guarantees are the sole responsibility of Nationwide.

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 and Promotional Expenses

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 Nationwide 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 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 it determined the charges imposed under the contracts (apart from fees and expenses imposed by the underlying mutual funds).  Without these payments, Nationwide would have imposed higher charges under the contract.

Amount of Payments Nationwide Receives

For the year ended December 31, 2011 , the underlying mutual fund payments Nationwide and its affiliates received from the underlying mutual funds did not exceed 0.60 % (as a percentage of the average Daily Net Assets invested in the underlying mutual funds) offered through this contract or other variable contracts that Nationwide and its affiliates issue.  Payments from investment advisors or subadvisors to participate in educational and/or marketing activities have not been taken into account in this percentage.

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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 its affiliates or whether the underlying mutual fund, its advisor, its subadvisor(s), or an affiliate will make payments to Nationwide or its 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 may lower investment performance.

Profitab i lity

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 annuity contracts, but no modification will affect the amount or term of any annuity contract unless a modification is required to conform the annuity contract to applicable federal or state law.  No modification will affect the method by which the Contract Values are determined.

Standard Charges and Deductions

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.

Mortality and Expense Risk Charge

Nationwide deducts a Mortality and Expense Risk Charge from the Variable Account.  This amount is computed on a daily basis and is equal to an annualized rate of 0.25% 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.  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, which Nationwide may use to finance the distribution of the contracts.

Administrative Charge

Nationwide deducts an Administrative Charge from the Variable Account.  This amount is computed on a daily basis and is equal to an annualized rate of 0.20% of the Daily Net Assets of the Variable Account.

The 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, which Nationwide may use to finance the distribution of contracts.

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

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fees (see the underlying mutual fund prospectus).  Any Short-Term Trading Fees paid are retained by the underlying mutual fund, not by Nationwide, and are part of the underlying mutual fund's assets.  Contract Owners are responsible for monitoring the length of time allocations are held in any particular underlying mutual fund.  Nationwide will not provide advance notice of the assessment of any applicable Short-Term Trading Fee.

To determine which underlying mutual funds offered under the contract assess (or reserve the right to assess) a Short-Term Trading Fee, please 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 Systematic Withdrawals;

·   surrenders;

·   surrenders of Annuity Units to make annuity payments;

·   surrenders of Accumulation Units to pay a death benefit; or

·   transfers made upon annuitization of the contract.

New share classes of certain currently available underlying mutual funds may be added as investment options under the contracts.  These new share classes may require the assessment of Short-Term Trading 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.  Nationwide will provide Contract Owners with written notice when allocations to an underlying mutual fund are limited to the redemption fee share class.

Optional Contract Benefits, Charges and Deductions

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

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

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

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

Return of Premium Enhanced Death Benefit Option

In lieu of the standard death benefit, and for an additional charge at an annualized rate of 0.20% of the Daily Net Assets of the Variable Account, applicants for contracts with Annuitants who are age 75 or younger at the time of application may elect the Return of Premium Enhanced Death Benefit Option.  Generally, if the Annuitant dies before the Annuitization Date, the death benefit will be the greater of:

(1)   the Contract Value; or

(2)   the total of all purchase payments made to the contract, less an adjustment for amounts surrendered.

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

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

Extra Value Options

For an additional charge, an applicant can elect one of two Extra Value Options.

Applicants should be aware of the following prior to electing an Extra Value Option:

(1)   Nationwide believes that the Extra Value Options, even after the direct and indirect costs associated with the options, will benefit the majority of Contract Owners.  If you have questions about whether an Extra Value Option is appropriate for you, please consult your individual registered representative specifically about the option.

(2)   Nationwide may make a profit from the Extra Value Option charge.

(3)   because the Extra Value Option charge will be assessed against the entire Contract Value for the first seven Contract Years, Contract Owners who anticipate making additional purchase payments after the first Contract Year (which will not receive the Extra Value Option credit but will be assessed the Extra Value Option charge) should carefully examine the Extra Value Option and consult their financial advisor regarding its desirability.

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(4)   Nationwide may take back or "recapture" all or part of the amount credited under an Extra Value Option in the event of early surrenders, including revocation of the contract during the contractual free-look period.

(5)   i f the market declines during the period that the Extra Value Option credit(s) is subject to recapture, the amount subject to recapture could decrease the amount of Contract Value available for surrender.

(6)    t he cost of the Extra Value Options and the recapture of the credits (in the event of a surrender) could exceed any benefit of receiving an Extra Value Option credits.

3% Extra Value Option

For an additional charge at an annualized rate of 0.40% of the Daily Net Assets of the Variable Account, an applicant can elect the 3% Extra Value Option.  After the end of the seventh Contract Year, Nationwide will discontinue assessing the charge associated with the 3% Extra Value Option.

In exchange, for the first 12 months the contract is in force, Nationwide will apply a credit to the contract equal to 3% of each purchase payment made to the contract.  This credit, which is funded from Nationwide's general account, will be allocated among the Sub-Accounts in the same proportion that the purchase payment is allocated to the contract.  For purposes of all benefits and taxes under these contracts, credits applied under this option are considered earnings, not purchase payments.

4% Extra Value Option

For an additional charge at an annualized rate of 0.55% of the Daily Net Assets of the Variable Account, an applicant can elect the 4% Extra Value Option. After the end of the seventh Contract Year, Nationwide will discontinue assessing the charge associated with the 4% Extra Value Option.

In exchange, for the first 12 months the contract is in force, Nationwide will apply a credit to the contract equal to 4% of each purchase payment made to the contract.  This credit, which is funded from Nationwide's general account, will be allocated among the Sub-Accounts in the same proportion that the purchase payment is allocated to the contract.  For purposes of all benefits and taxes under these contracts, credits applied under this option are considered earnings, not purchase payments.

Recapture of Extra Value Option Credits

Nationwide will recapture amounts credited to the contract in connection with the Extra Value Options if:

(a)   the Contract Owner cancels the contract pursuant to the contractual free-look provision;

(b)   the Contract Owner takes a full surrender before the end of the seventh Contract Year; or

(c)   in any Contract Year before the end of the seventh Contract Year, the Contract Owner takes one or more partial surrenders that total more than 10% of the total of all purchase payments made to the contract during the first Contract Year.

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

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

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

(2)    i f the distribution is taken in order to pay registered representative fees; or

(3)    i f the surrender occurs after the end of the seventh Contract Year.

Recapture Resulting from Exercising Free-Look Privilege

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

Recapture Resulting from a Full Surrender

For contracts with the 3% Extra Value Option or the 4% Extra Value Option, if the Contract Owner takes a full surrenderof the contract before the end of the seventh Contract Year, Nationwide will recapture the entire amount credited to the contract under the option.

Recapture Resulting from a Partial Surrender

For contracts with the 3% Extra Value Option or the 4% Extra Value Option, if a Contract Owner, during the first seven Contract Years, takes one or more partial surrenders each Contract Year that total more than 10% of the total of all purchase payments made to the contract during the first Contract Year, Nationwide will recapture a proportional part of the amount credited to the contract under this option.

For example, Mr. X, who elected the 3% Extra Value Option, makes a $100,000 initial deposit to his contract and receives a 3% credit of $3,000.  In Contract Year two , Mr. X takes a $15,000 surrender.  Under the contract Mr. X is entitled to surrender up to 10% of purchase payments made to the contract during the first Contract Year without subjecting any of the credit to recapture.  Thus, he can take ($100,000 x 10%) = $10,000 free of recapture.  That leaves $5,000 of the surrender subject to recapture.  For the recapture calculation, Nationwide will multiply that $5,000 by 3% to get the portion of the original credit that Nationwide will recapture.  Thus, the amount of the original credit recaptured as a result of the $15,000 partial surrender is $150.

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The amount recaptured will be taken from the Sub-Accounts in the same proportion that purchase payments are allocated as of the surrender date.

Removal of Variable Account Charges

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

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

The first step, the adjustment of contract expenses, involves removing the charge from the unit value calculation.  For example, on a contract where the only optional benefit elected is the 3% Extra Value Option, the Variable Account value will be calculated using unit values with Variable Account charges of 0.85% for the first seven Contract Years.  At the end of that period, the contract will be re-rated, and the 0.40% charge associated with the 3% Extra Value Option will be removed.  From that point on, the Variable Account value will be calculated using the unit values with Variable Account charges at 0.45%.  Thus, the 3% Extra Value Option charge is no longer included in the daily Sub-Account valuation for the contract.

The second step of the re-rating process, the adjustment of the number of units in the contract, is necessary in order to keep the re-rating process from altering the Contract Value.  Generally, for any given Sub-Account, the higher the Variable Account charges, the lower the unit value, and vice versa.  For example, Sub-Account X with charges of 0.85% will have a lower unit value than Sub-Account X with charges of 0.45% (higher expenses result in lower unit values).  When, upon re-rating, the unit values used in calculating Variable Account value are dropped from the higher expense level to the lower expense level, the higher unit values will cause an incidental increase in the Contract Value.  In order to avoid this incidental increase, Nationwide adjusts the number of units in the contract down so that the Contract Value after the re-rating is the same as the Contract Value before the re-rating.

Ownership and Interests in the Contract

Contract Owner

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

On the Annuitization Date, the Annuitant becomes the Contract Owner, unless the Contract Owner is a Charitable Remainder Trust.  If the Contract Owner is a Charitable Remainder Trust, the Charitable Remainder Trust continues to be the Contract Owner after annuitization.

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

Joint Owner

Joint owners each own an undivided interest in the contract.

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

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

If either joint owner dies before the Annuitization Date, the contract continues with the surviving joint owner as the remaining Contract Owner.

Contingent Owner

The contingent owner succeeds to the rights of a Contract Owner if a Contract Owner who is not the Annuitant dies before the Annuitization Date, and there is no surviving joint owner.

If a Contract Owner who is the Annuitant dies before the Annuitization Date, the contingent owner will not have any rights under the contract, unless such contingent owner is also the beneficiary.

The Contract Owner may name a contingent owner at any time before the Annuitization Date.  Contingent owners may only be named for Non-Qualified Contracts.

Annuitant

The Annuitant is the person who will receive annuity payments and upon whose continuation of life any annuity payment involving life contingencies depends.  This person must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for an Annuitant of greater age.  Only Non-Qualified Contract Owners may name someone other than himself/herself as the Annuitant.

The Contract Owner may not name a new Annuitant without Nationwide's consent.

Contingent Annuitant

If the Annuitant dies before the Annuitization Date, the contingent Annuitant becomes the Annuitant.  The contingent Annuitant must be age 85 or younger at the time of contract issuance, unless Nationwide approves a request for a contingent Annuitant of greater age.  Contingent Annuitants may only be named in Non-Qualified Contracts.

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

Co-Annuitant

A co-Annuitant, if named, must be the Annuitant's spouse.  The co-Annuitant may be named at any time prior to annuitization and will receive the benefit of the Spousal Protection Feature (subject to the conditions set forth in the "Spousal Protection Feature" provision).

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.

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 the Annuitant dies.  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 its home office before the Annuitization Date.  No change will be effective unless and until it is received and recorded at the Service Center .  Once Nationwide receives and records the change request, the change will be effective as of the date the written request was signed.

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

Minimum Initial and Subsequent Purchase Payments

Contract Type	Minimum Initial Purchase Payment	Minimum Subsequent Payments*
Non-Qualified	$10,000	$500
IRA	$10,000	$500
SEP IRAs	$10,000	$500
Simple IRAs	$10,000	$500
Roth IRA	$10,000	$500
Tax Sheltered Annuity**	$10,000	$500
Investment-Only	$10,000	$500
Charitable Remainder Trust	$10,000	$500

*For subsequent purchase payments, sent via electronic deposit, the minimum subsequent purchase payment is $50.  Subsequent purchase payments are not permitted in some states under certain circumstances.

**Only available for individual 403(b) Tax Sheltered Annuity contracts subject to ERISA and certain Optional Retirement Plans and/or Programs that have purchased at least one individual annuity contract issued by Nationwide prior to September 25, 2007.

The cumulative total of all purchase payments under contracts issued by Nationwide on the life of any one Annuitant cannot exceed $1,000,000 without Nationwide's prior consent or owned by any one Contract Owner .  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 subject to investment performance.

Pricing

Generally, Nationwide calculates Accumulation Unit and Annuity Unit values of the Sub-Accounts on each day that the New York Stock Exchange is open.  (Pricing is the calculation of a new Accumulation Unit/Annuity Unit value that reflects that day's investment experience.)  Accumulation Units and Annuity Units are not priced when the New York Stock Exchange is closed or on the following nationally recognized holidays:

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·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 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 completeand are received at the Service Center before the close of the New York Stock Exchange, which generally occurs at 4:00 p.m. EST.  If the order is received after the close of the New York Stock Exchange, the initial purchase payment will be priced within two business days after the next business day.

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

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 Sub-Accounts based on the instructions contained on the application ( s ee "Right to Examine and Cancel" ) .

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 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 (with all the necessary information) after the close of the New York Stock Exchange, it will be priced at the Accumulation Unit value determined on the following business day.

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.  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, as well as those set forth in the contract.

Determining the Contract Value

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

If part or all of the Contract Value is surrendered, or charges are assessed against the whole Contract Value, Nationwide will deduct a proportionate amount from each of the Sub-Accounts.

Determining Variable Account Value – Valuing an Accumulation Unit

Purchase payments or transfers allocated to Sub-Accounts 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 value determined on the previous Valuation Period.

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

The net investment factor 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; and

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(c)   is a factor representing the daily Variable Account charges, which may include charges for contract options chosen by the Contract Owner.  The factor is equal to an annualized rate ranging from 0.45% to 1.55% of the Daily Net Assets of the Variable Account, depending on which contract features the Contract Owner chose.

Based on 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.

Transfers Prior to Annuitization

Generally, allocations may be transferred among the Sub-Accounts once per Valuation Period without charges or penalties.

Frequent Trading and Transfer Restrictions

Some of the Sub-Accounts available in the contract invest in underlying mutual funds that are designed to support active trading strategies (frequent reallocations from one sub- account to another).  These Sub-Accounts are referred to in this prospectus as "Actively Traded Funds."  The remaining Sub-Accounts available in the contract invest in underlying mutual funds that prohibit such active trading.  These Sub-Accounts are referred to as "Limited Transfer Funds."  Lists of the Actively Traded Funds and Limited Transfer Funds appear at the end of this section.

Nationwide discourages (and will take action to deter) inappropriate frequent transfers between and among the Limited Transfer Funds because frequent movement between or among those Sub-Accounts may negatively impact other investors.  Frequent transfers among the Limited Transfer Funds 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 potentially negative impact of frequent transfers among the Limited Transfer Funds, Nationwide has implemented, or reserves the right to implement, several restrictions designed to deter frequent transfers among the Limited Transfer Funds, while still permitting Contract Owners to actively trade among the Actively Traded Funds.  Nationwide makes no assurance that all risks associated with frequent trading will be completely eliminated by these processes and/or restrictions.

If Nationwide is unable to deter frequent trading in the Limited Transfer Funds, the performance of the Sub-Accounts may be adversely impacted.

Redemption Fees

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

U.S. Mail Restrictions

Nationwide monitors transfer activity in order to identify those who may be engaged in harmful trading practices.  Transaction reports are produced and examined.  Generally, a contract may appear on these reports if the Contract Owner (or a third party acting on their behalf) engages in a certain number of "transfer events" involving Limited Transfer Funds 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 Sub-Accounts in one day, this counts as one transfer event.  A single transfer occurring on a given trading day and involving only two Sub-Accounts 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 involving Limited Transfer Funds will be accepted.

Nationwide will apply the following guidelines to the Limited Transfer Funds except for the Nationwide Variable Insurance Trust-NVIT Money Market Fund: Class II, and underlying mutual funds of the Rydex Variable Trust:

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Trading Behavior	Nationwide's Response
Six or more transfer events involving Limited Transfer Funds 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 involving Limited Transfer Funds exceed 11 in two consecutive calendar quarters or 20 in one calendar year, the Contract Owner will be limited to submitting transfer requests involving Limited Transfer Funds via U.S. mail on a Nationwide issued form.
More than 11 transfer events involving Limited Transfer Funds in two consecutive calendar quarters OR More than 20 transfer events involving Limited Transfer Funds in one calendar year	Nationwide will automatically limit the Contract Owner to submitting transfer requests involving Limited Transfer Funds via U.S. mail on a Nationwide issued form.

For the 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 st .  See, however, the "Other Restrictions" provision below.

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 inappropriate market timing or other harmful investment practices employed by some Contract Owners (or third parties acting on their behalf).

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 into a specific underlying mutual fund by Contract Owners that violate policies established by the underlying mutual fund (whose policies may be more restrictive than Nationwide's policies).

Nationwide is required to provide such transaction information to the underlying mutual funds upon their request.  In addition, Nationwide is required to restrict or prohibit further purchases or exchange requests into one or more underlying mutual funds based 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 purchase requests.  If an underlying mutual fund refuses to accept a purchase request submitted by Nationwide, Nationwide will keep any affected Contract Owner in their current underlying mutual fund allocation.

Transfers After Annuitization

After annuitization, transfers among Sub-Accounts may only be made on the anniversary of the Annuitization Date.

Transfer Requests

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

Transfer requests will be processed on the current Valuation Day if received by the Service Center at least one hour before the close of the New York Stock Exchange ("NYSE") (generally 3:00 p . m . EST).  Nationwide is currently extending the cut-off time for transfer requests submitted via the internet to 25 minutes before the close of the NYSE (generally 3:35 p . m . EST).   All transfer requests received at the Service Center after the applicable cut-off time will be processed on the next Valuation Day.

Actively Traded Funds

The following list indicates those Sub-Accounts that invest in underlying mutual funds that support active trading strategies ("Actively Traded Funds").

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Direxion Insurance Trust

·    Dynamic VP HY Bond Fund

Guggenheim Variable Fund

·    CLS AdvisorOne Amerigo

·    CLS AdvisorOne Clermont

·    CLS AdvisorOne Select Allocation

ProFunds

·   ProFund VP Access High Yield Fund

·    ProFund VP Asia 30

·    ProFund VP Banks

·    ProFund VP Basic Materials

·    ProFund VP Bear

·    ProFund VP Biotechnology

·    ProFund VP Bull

·    ProFund VP Consumer Goods

·    ProFund VP Consumer Services

·   ProFund VP Emerging Markets

·    ProFund VP Europe 30

·    ProFund VP Financials

·    ProFund VP Health Care

·    ProFund VP Industrials

·    ProFund VP International

·    ProFund VP Internet

·   ProFund VP Japan

·   ProFund VP NASDAQ-100

·    ProFund VP Oil & Gas

·    ProFund VP Pharmaceuticals

·    ProFund VP Precious Metals

·    ProFund VP Real Estate

·    ProFund VP Rising Rates Opportunity

·    ProFund VP Semiconductor

·   ProFund VP Short Emerging Markets

·   ProFund VP Short International

·    ProFund VP Short NASDAQ-100

·    ProFund VP Technology

·    ProFund VP Telecommunications

·   ProFund VP U.S. Government Plus

·   ProFund VP Ultra NASDAQ-100

·    ProFund VP Ultra Short NASDAQ-100

·    ProFund VP Utilities

Rydex Variable Trust

·   Banking Fund

·   Basic Materials Fund

·   Biotechnology Fund

·   Consumer Products Fund

·   Dow 2x Strategy Fund

·   Electronics Fund

·   Energy Fund

·   Energy Services Fund

·   Europe 1.25x Strategy Fund

·   Financial Services Fund

·   Government Long Bond 1.2x Strategy Fund

·   Health Care Fund

·   Internet Fund

·   Inverse Dow 2x Strategy Fund

·   Inverse Government Long Bond Strategy Fund

·   Inverse Mid-Cap Strategy Fund

·   Inverse NASDAQ-100® Strategy Fund

·   Inverse Russell 2000® Strategy Fund

·   Inverse S&P 500 Strategy Fund

·   Japan 2x Strategy Fund

·   Leisure Fund

·   Mid-Cap 1.5x Strategy Fund

·   NASDAQ-100® 2x Strategy Fund

·   NASDAQ-100® Fund

·   Nova Fund

·   Precious Metals Fund

·   Real Estate Fund

·   Retailing Fund

·   Russell 2000® 1.5x Strategy Fund

·   S&P 500 2x Strategy Fund

·   S&P 500 Pure Growth Fund

·   S&P 500 Pure Value Fund

·   S&P MidCap 400 Pure Growth Fund

·   S&P MidCap 400 Pure Value Fund

·   S&P SmallCap 600 Pure Growth Fund

·   S&P SmallCap 600 Pure Value Fund

·   Strengthening Dollar 2x Strategy Fund

·   Technology Fund

·   Telecommunications Fund

·   Transportation Fund

·   Utilities Fund

·   Weakening Dollar 2x Strategy Fund

Limited Transfer Funds

The following list indicates those Sub-Accounts that invest in underlying mutual funds that prohibit active trading strategies ("Limited Transfer Funds").

AllianceBernstein Variable Products Series Fund, Inc.

·    AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B

American Century Variable Portfolios II, Inc.

·    American Century VP Inflation Protection Fund: Class II

American Century Variable Portfolios, Inc.

·   American Century VP Income & Growth Fund:

Class III

·   American Century VP Value Fund: Class III

BlackRock Variable Series Funds, Inc.

·   BlackRock Global Allocation V.I. Fund: Class III

Credit Suisse Trust

·   Commodity Return Strategy Portfolio

Fidelity Variable Insurance Products Fund

·    VIP Asset Manager Portfolio: Service Class 2

·   VIP Equity-Income Portfolio: Service Class 2R

·    VIP Growth Portfolio: Service Class 2R

·    VIP High Income Portfolio: Service Class 2R

Franklin Templeton Variable Insurance Products Trust

·   Franklin Templeton VIP Founding Funds Allocation Fund: Class 2

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Guggenheim Variable Fund

·    All-Asset Aggressive Strategy

·    All-Asset Conservative Strategy

·    All-Asset Moderate Strategy

·    Alternative Strategies Allocation Fund

·    DWA Flexible Allocation

·    DWA Sector Rotation

·    Managed Futures Strategy

·    Multi-Hedge Strategies

·    U.S. Long Short Momentum

Ivy Funds Variable Insurance Portfolios, Inc.

·   Asset Strategy

MFS ® Variable Insurance Trust II

·    MFS Global Tactical Allocation Portfolio: Service Class

Nationwide Variable Insurance Trust

·    American Funds NVIT Asset Allocation Fund: Class II

·   Federated NVIT High Income Bond Fund: Class III

·   NVIT CardinalSM Aggressive Fund: Class II

·   NVIT CardinalSM Balanced Fund: Class II

·   NVIT CardinalSM Capital Appreciation Fund: Class II

·   NVIT CardinalSM Conservative Fund: Class II

·   NVIT CardinalSM Moderate Fund: Class II

·   NVIT CardinalSM Moderately Aggressive Fund: Class II

·   NVIT CardinalSM Moderately Conservative Fund: Class II

·    NVIT Core Plus Bond Fund: Class II

·   NVIT Emerging Markets Fund: Class III

·   NVIT Government Bond Fund: Class III

·   NVIT Investor Destinations Funds

o   NVIT Investor Destination Aggressive Fund:

Class VI

o   NVIT Investor Destinations Balanced Fund: Class VI

o   NVIT Investor Destinations Capital Appreciation Fund: Class VI

o   NVIT Investor Destination Conservative Fund:

Class VI

o   NVIT Investor Destination Moderate Fund: Class VI

o   NVIT Investor Destination Moderately Aggressive Fund: Class VI

o   NVIT Investor Destination Moderately Conservative Fund: Class VI

·   NVIT Money Market Fund: Class II

·   NVIT Multi-Manager International Growth Fund: Class VI

·   NVIT Multi-Manager International Value Fund: Class VI

·   NVIT Multi-Manager Large Cap Growth Fund: Class II

·   NVIT Multi-Manager Large Cap Value Fund: Class II

·   NVIT Multi-Manager Mid Cap Growth Fund: Class II

·   NVIT Multi-Manager Mid Cap Value Fund: Class II

·   NVIT Multi-Manager Small Cap Growth Fund: Class III

·   NVIT Multi-Manager Small Cap Value Fund: Class III

·   NVIT Multi-Manager Small Company Fund: Class III

·    NVIT Nationwide Fund: Class III

·    NVIT Short Term Bond Fund: Class II

PIMCO Variable Insurance Trust

·    All Asset Portfolio: Advisor Class

·   Commodity RealReturn® Strategy Portfolio: Advisor Class

·   Emerging Markets Bond Portfolio: Advisor Class

·   Foreign Bond Portfolio (Unhedged): Advisor Class

·   Global Bond (Unhedged): Advisor Class

·    High Yield Portfolio: Advisor Class

·    Low Duration Portfolio: Advisor Class

·    Total Return Portfolio: Advisor Class

P ioneer Variable Contracts Trust

·   Pioneer Emerging Markets VCT Portfolio: Class II

·   Pioneer High Yield VCT Portfolio: Class II

Rydex Variable Trust

·    Commodities Strategy Fund

The Universal Institutional Funds, Inc.

·    Emerging Markets Debt Portfolio: Class II

·    Global Real Estate Portfolio: Class II

·    Global Tactical Asset Allocation Portoflio: Class II

Van Eck VIP Trust

·    Van Eck VIP Global Hard Assets Fund: Initial Class

·    Van Eck VIP Multi-Manager Alternatives Fund: Initial Class

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 day the initial purchase payment is applied to the contract.

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 Extra Value Option credits, withdrawals from the contract, and applicable federal and state income tax withholding.  Otherwise, Nationwide will return the Contract Value, less any Extra Value Option credits, withdrawals from the contract, and applicable federal and state income tax withholding.

In some states, Nationwide will allocate initial purchase payments to the money market Sub-Account during the free look period.  Where state law requires the return of purchase payments upon cancellation of the contract during the free look period, Nationwide will allocate initial purchase payments allocated to Sub-Accounts to the money market Sub-Account during the free look period.  After the free look period, Nationwide will reallocate the Contract Value among

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the Sub-Accounts based on the instructions contained on the application.  Where state law requires the return of Contract Value upon cancellation of the contract during the free look period, Nationwide will immediately allocate initial purchase payments to the investment options based on the instructions contained on the application.

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.

Please see "Extra Value Options" for a description of the recapture of the amount credited under an Extra Value Option in the event the right to free look the contract is exercised.

Surrender (Redemption)

Contract Owners may surrender some or all of their Contract Value before the earlier of the Annuitization Date or the Annuitant's death.  Surrenders from the contract may be subject to federal income tax and/or a penalty tax.  See "Federal Income Taxes" in "Appendix C: Contract Types and Tax Information."

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

Nationwide will pay any amounts surrendered from the Sub-Accounts within seven days.  Additionally, Nationwide may suspend or postpone payment when it is unable to price a purchase payment or transfer (see "Pricing").

Surrender requests will receive the Accumulation Unit value next determined at the end of the current Valuation Period if the surrender request and all necessary information is received at the Service Ce nter before the close of the New York Stock Exchange (generally, 4:00 p . m . EST).  If the surrender request and all necessary information is received after the close of the New York Stock Exchange, the surrender request will receive the Accumulation Unit value determined at the end of the next Valuation Day.

Partial Surrenders (Partial Redemptions)

For partial surrenders, Nationwide will surrender Accumulation Units from the Sub-Accounts in proportion to the value in each underlying mutual fund at the time of the surrender request.

Partial Surrenders to Pay Registered Representative 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 by or affiliated with Nationwide and Nationwide makes no representation as to their qualifications.  The fees for these investment advisory services are specified in the respective account agreements and are separate from and in addition to the contract fees and expenses described in this prospectus.  Some Contract Owners authorize their investment advisor to take a partial surrender(s) from the contract in order to collect investment advisory fees.  Surrenders taken from this contract to pay advisory or investment management fees may be subject to income tax and/or tax penalties.

Full Surrenders (Full Redemptions)

The Contract Value upon full surrender 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;

·   the investment performance of the underlying mutual funds; and

·   any recapture of any Extra Value Option credit.

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

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

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

·   the participant dies;

·   the participant retires;

·   the participant terminates employment due to total disability; or

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

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

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

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

Surrenders Under a Tax Sheltered Annuity

Contract Owners of a Tax Sheltered Annuity may surrender part or all of their Contract Value before the earlier of the Annuitization Date or the Annuitant's death, except as provided below:

(A)   Contract Value attributable to contributions made under a qualified cash or deferred arrangement (within the

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meaning of Internal Revenue Code Section 402(g)(3)(A)), a salary reduction agreement (within the meaning of Internal Revenue Code Section 402(g)(3)(C)), or transfers from a Custodial Account (described in Section 403(b)(7) of the Internal Revenue Code), may be surrendered only:

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

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

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

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

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

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

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

In order to prevent disqualification of a Tax Sheltered Annuity after a free look cancellation, Nationwide will transfer the proceeds to another Tax Sheltered Annuity upon proper direction by the Contract Owner.

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

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

Assignment

Contract rights are personal to the Contract Owner and may not be assigned without Nationwide's written consent.

A Non-Qualified Contract Owner may assign some or all rights under the contract.  An assignment must occur before annuitization while the Annuitant is alive.  Once proper notice of assignment is recorded by the Service Center , the assignment will become effective as of the date the written request was signed.

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

Nationwide is not responsible for the validity or tax consequences of any assignment.  Nationwide is not liable for any payment or settlement made before the assignment is recorded.  Assignments will not be recorded until Nationwide receives sufficient direction from the Contract Owner and the assignee regarding the proper allocation of contract rights.

Amounts pledged or assigned will be treated as distributions and will be included in gross income to the extent that the cash value exceeds the investment in the contract for the taxable year in which it was pledged or assigned.  Amounts assigned may be subject to a tax penalty equal to 10% of the amount included in gross income.

Assignment of the entire Contract Value may cause the portion of the Contract Value exceeding the total investment in the contract and previously taxed amounts to be included in gross income for federal income tax purposes each year that the assignment is in effect.

Contract Owner Services

Systematic Withdrawals

Systematic withdrawals allow Contract Owners to receive a specified amount (of at least $100) on a monthly, quarterly, semi-annual, or annual basis.  Requests for systematic withdrawals and requests to discontinue systematic withdrawals must be in writing.

The withdrawals will be taken from the Sub-Accounts proportionately 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 (see "Right to Examine and Cancel").

Annuity Commencement Date

The Annuity Commencement Date is the date on which annuity payments are scheduled to begin. The Contract Owner may change the Annuity Commencement Date before annuitization.  This change must be in writing and approved by Nationwide.

The Annuity Commencement Date may not be later than the first day of the first calendar month after the Annuitant's 90th birthday (or the 90th birthday of the oldest Annuitant if there are joint Annuitants) unless approved by Nationwide.

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Annuitizing the Contract

Annuitization Date

The Annuitization Date is the date that annuity payments begin.  The Annuitization Date will be the first day of a calendar month unless otherwise agreed.  The Annuitization Date must be at least two years after the contract is issued, but may not be later than:

·   the age (or date) specified in the contract (the Annuity Commencement Date as specified by the Contract Owner and reflected on the contract's data page); or

·   the age (or date) specified by state law, where applicable.

If the contract is issued to fund a Tax Sheltered Annuity, annuitization may occur during the first two years subject to Nationwide's approval.

For any contract that is issued as a Non-Qualified Contract or as a Roth-IRA contract, the Annuity Commencement Date is the Contract Owner's 90th birthday unless the Contract Owner specifies otherwise.

For all other types of contracts, the Annuity Commencement Date is the date when the Contract Owner reaches age 70½ unless the Contract Owner specifies otherwise.  The Contract Owner may not, however, extend the Annuity Commencement Date to a date after the contract owner's 90th birthday.  For contracts which have joint owners the older Contract owner's age will be used.

The Internal Revenue Code may require that distributions be made prior to the Annuitization Dates specified above (see "Required Distributions" in "Appendix C: Contract Types and Tax Information").

Annuitization

Annuitization is the period during which annuity payments are received.  It is irrevocable once payments have begun.  Upon arrival of the Annuitization Date, the Annuitant must choose:

(1) an annuity payment option; and

(2) either a fixed payment annuity, variable payment annuity, or an available combination.

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.

If the Contract Owner does not elect an annuity payment option, a variable payment life annuity with a guarantee period of 240 months will be the automatic form of payment upon annuitization.

Fixed Payment Annuity

A fixed payment annuity is an annuity where the amount of the annuity payment remains level.

The first payment under a fixed payment annuity is determined on the Annuitization Date based on the Annuitant's age (in accordance with the contract) by:

(1)   deducting applicable premium taxes from the total Contract Value; then

(2)   applying the Contract Value amount specified by the Contract Owner to the fixed payment annuity table for the annuity payment option elected.

Subsequent payments will remain level unless the annuity payment option elected provides otherwise. Nationwide does not credit discretionary interest during annuitization.

Variable Payment Annuity

A variable payment annuity is an annuity where the amount of the 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 first payment under a variable payment annuity is determined on the Annuitization Date based on the Annuitant's age (in accordance with the contract) by:

(1)   deducting applicable premium taxes from the total Contract Value; then

(2)   applying the Contract Value amount specified by the Contract Owner to the variable payment annuity table for the annuity payment option elected.

The dollar amount of the first payment is converted into a set number of Annuity Units that will represent each monthly payment.  This is done by dividing the dollar amount of the first payment by the value of an Annuity Unit as of the Annuitization Date.  This number of Annuity Units remains fixed during annuitization.

The second and subsequent payments are determined by multiplying the fixed number of Annuity Units by the Annuity Unit value for the Valuation Period in which the payment is due.  The amount of the second and subsequent payments will vary with the performance of the selected underlying mutual funds.  Nationwide guarantees that variations in mortality experience from assumptions used to calculate the first payment will not affect the dollar amount of the second and subsequent payments.

Value of an Annuity Unit

Annuity Unit values for Sub-Accounts are determined by:

(1)   multiplying the Annuity Unit value for the immediately preceding Valuation Period by the net investment factor for the subsequent Valuation Period (see "Determining the Contract Value"); and then

(2)   multiplying the result from (1) by the assumed investment rate of 3.5% adjusted for the number of days in the Valuation Period.

Assumed Investment Rate

An assumed investment rate is the percentage rate of return assumed to determine the amount of the first payment under a variable payment annuity.  Nationwide uses the assumed investment rate of 3.5% to calculate the first annuity payment

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and to calculate the investment performance of an underlying mutual fund in order to determine subsequent payments under a variable payment annuity.  An assumed investment rate is the percentage rate of return required to maintain level variable annuity payments.  Subsequent variable annuity payments may be more or less than the first payment based on whether actual investment performance of the underlying mutual funds is higher or lower than the assumed investment rate of 3.5%.

Exchanges Among Underlying Mutual Funds

Exchanges among underlying mutual funds during annuitization must be requested in writing.  Exchanges will occur on each anniversary of the Annuitization Date.

Frequency and Amount of Annuity Payments

Payments are made based on the annuity payment option selected, unless:

·   the amount to be distributed is less than $5,000, in which case Nationwide may make one lump sum payment of the Contract Value; or

·   an annuity payment would be less than $100, in which case Nationwide can change the frequency of payments to intervals that will result in payments of at least $100.  Payments will be made at least annually.

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

Annuity Payment Options

Contract Owners must elect an annuity payment option before the Annuitization Date.

(1)   Life Annuity - An annuity payable periodically, but at least annually, for the lifetime of the Annuitant.  Payments will end upon the Annuitant's death.  For example, if the Annuitant dies before the second annuity payment date, the Annuitant will receive only one annuity payment.  The Annuitant will only receive two annuity payments if he or she dies before the third annuity payment date, and so on.

(2)   Joint and Last Survivor Annuity - An annuity payable periodically, but at least annually, during the joint lifetimes of the Annuitant and a designated second individual.  If one of these parties dies, payments will continue for the lifetime of the survivor.  As is the case under a Life Annuity, 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. Payments end upon the death of the last surviving party, regardless of the number of payments received.

(3)   Life Annuity with 120 or 240 Monthly Payments Guaranteed - An annuity payable monthly during the lifetime of the Annuitant.  If the Annuitant dies before all of the guaranteed payments have been made, payments will continue to the end of the guaranteed period and will be paid to a designee chosen by the Annuitant at the time the annuity payment option was elected.

The designee may elect to receive the present value of the remaining guaranteed payments in a lump sum.  The present value will be computed as of the date Nationwide receives the notice of the Annuitant's death.

If the Contract Owner does not elect an annuity payment option, a variable payment life annuity with a guarantee period of 240 months will be the automatic form of payment upon annuitization.  Once elected or assumed, the annuity payment option may not be changed.

Not all of the annuity payment options may be available in all states.  Contract Owners may request other options before the Annuitization Date.  These options are subject to Nationwide's approval.

Individual Retirement Annuities and Tax Sheltered Annuities are subject to minimum distribution requirements set forth in the plan, contract, and the Internal Revenue Code.  See "Required Distributions" in "Appendix C: Contract Types and Tax Information."

Death Benefits

Death of Contract Owner - Non-Qualified Contracts

If the 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.

If the Contract Owner and Annuitant are the same, and the Contract Owner/Annuitant dies before the Annuitization Date, the contingent owner will not have any rights in the contract unless the contingent owner is also the beneficiary.

Distributions under Non-Qualified Contracts will be made pursuant to the "Required Distributions for Non-Qualified Contracts" in "Appendix C: Contract Types and Tax Information."

Death of Annuitant - Non-Qualified Contracts

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(ies) 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

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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 beneficiaries or 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; or

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

Nationwide will pay (or will begin to pay) the death benefit upon receiving proof of death and the instructions as to the payment of the death benefit.  If the recipient of the death benefit does not elect the form in which to receive the death benefit payment, Nationwide will pay the death benefit in a lump sum.  Contract Value will continue to be allocated according to the most recent allocation instructions until the death benefit is paid.

If the contract has multiple beneficiaries entitled to receive a portion of the death benefit, the Contract Value will continue to be allocated according to the most recent allocation instructions until the first beneficiary provides Nationwide with instructions for payment of death benefit proceeds.  After the first beneficiary provides these instructions, the Contract Value for all beneficiaries will be allocated to the available money market Sub-Account until instructions are received from the beneficiary(ies) to allocate their Contract Value in another manner.

Death Benefit Calculations

An applicant may elect either the standard death benefit or an 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).

Standard Death Benefit

If the Annuitant dies prior to the Annuitization Date and the Return of Premium Enhanced Death Benefit Option is not elected at the time of application, the death benefit will equal the Contract Value.

Return of Premium Enhanced Death Benefit Option

For an additional charge at an annualized rate of 0.20% of the Daily Net Assets of the Variable Account, contracts with Annuitants who are age 75 or younger at the time of application may elect the Return of Premium Enhanced Death Benefit Option.  If the Annuitant dies before the Annuitization Date, and the total of all purchase payments is less than or equal to $3,000,000, the death benefit will be the greater of:

(1)   the Contract Value; or

(2)   the total of all purchase payments made to the contract, less an adjustment for amount surrendered.

The adjustment for amounts surrendered will reduce item (2) above in the same proportion that the Contract Value was reduced on the date(s) of the partial surrender(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 death benefit will be determined using the following formula:

A x F + B x (1 - F)

Where:

A = The greater of:

(1)   the Contract Value; or

(2)   the total of all purchase payments made to the contract, less an adjustment for amount surrendered.

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

B = the Contract Value;

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 the 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 Return of Premium Enhanced Death Benefit Option also includes the Spousal Protection Feature.

Spousal Protection Feature

The Return of Premium Enhanced Death Benefit Option has a Spousal Protection Feature.  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.   There is no additional charge for this feature.   The Spousal Protection Feature is available for all contract types except Charitable Remainder Trusts, 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)   both co-Annuitants must be age 75 or younger at the time the contract is issued;

(4)   the spouses must each be named as beneficiaries;

(5)   no person other than the spouse may be named as Contract Owner, Annuitant or 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 IRAs and Roth IRAs, this person must be the contract owner);

(7)   if a co-Annuitant dies before the Annuitization Date, the surviving spouse may continue the contract as its sole Contract Owner.  If the chosen death benefit is higher than the Contract Value at the time of death, the Contract Value will be adjusted to equal the applicable death benefit amount.  The surviving spouse may then name a new beneficiary but may not name another co-Annuitant; and

(8)   if a co-Annuitant is added at any time after the contract is issued, a copy of the certificate of marriage must be provided to the Service Center .  In addition, the date of marriage must be after the contract issue date and the new co-Annuitant must be age 75 or younger.

If the marriage if 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.

Statements and Reports

Nationwide will mail Contract Owners statements and reports.  Therefore, Contract Owners should promptly notify Nationwide of any changes to street and/or email addresses.

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., salary reduction programs).  Instead, confirmation of recurring transactions will appear in the contract's quarterly statements; and

·   semi-annual and annual reports of allocated underlying mutual funds.

Contract Owners can receive information from Nationwide faster and reduce the amount of mail they receive by signing up for Nationwide's eDelivery program.  Nationwide will notify Contract Owners by email when important documents (statements, prospectuses and other documents) are ready for a Contract Owner to view, print, or download from Nationwide's secure server. To choose this option, go to www.nationwide.com/login.

Contract Owners should review statements and confirmations carefully.  All errors or corrections must be reported to Nationwide immediately to assure proper crediting to the contract.  Unless Nationwide is notified within 30 days of receipt of the statement, Nationwide will assume statements and confirmation statements are correct.

IMPORTANT NOTICE REGARDING DELIVERY OF SECURITY HOLDER DOCUMENTS

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

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.  The Company's litigation and regulatory matters are subject to many uncertainties, and given their complexity and

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scope, their outcomes cannot be predicted.  Regulatory proceedings also could 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 financial services industry has been the subject of increasing scrutiny on a broad range of issues by regulators and legislators.  The Company and/or its affiliates have been contacted by, self reported or received subpoenas from state and federal regulatory agencies, including the Securities and Exchange Commission, and other governmental bodies, state securities law regulators and state attorneys general for information relating to, among other things, sales compensation, the allocation of compensation, unsuitable sales or replacement practices, and claims handling and escheatment practices.  The Company is cooperating with and responding to regulators in connection with these inquiries and will cooperate with Nationwide Mutual Insurance Company (NMIC) in responding to these inquiries to the extent that any inquiries encompass NMIC's operations.

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 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 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, subject to the Circuit Courts' approval.  The Courts have approved the settlement and the settlement amounts have been paid, but have not yet been distributed to class members.  On February 28, 2011, the Court in the Gwin case entered an Order permitting ASEA/PEBCO to assert indemnification claims for attorneys' fees and costs, but barring them from asserting any other claims for indemnification.  On April 22, 2011, ASEA and PEBCO filed a second amended cross claim complaint in the Gwin case against NRS and NLIC seeking indemnification.  These claims seeking indemnification remain severed.   On April 29, 2011, the Companies filed a motion to dismiss ASEA’s and PEBCO’s amended cross complaint or alternatively for summary judgment.   On December 6, 2011 the Court entered an Order that NRS owes indemnification to ASEA and PEBCO for the Coker (Gwin) class action, that NRS does not have a duty to indemnify ASEA and PEBCO for fees associated with the Interpleader action that NRS filed in Montgomery County and dismissing NLIC.  On December 31, 2011, the Court denied the Company’s motion to certify this order for an interlocutory appeal.  NRS continues to defend this case vigorously.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company.   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 the 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 20, 2010, the Second Circuit Court of Appeals granted NLIC's 23(f) petition agreeing to hear an appeal of the District Court's order granting class certification.  On October 21, 2010, the District Court dismissed NFS from the lawsuit.  On October 27, 2010, the District Court stayed the underlying action pending a

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decision from the Second Circuit Court of Appeals.  On February 6, 2012, the Second Circuit Court of Appeals vacated the class certification order that was issued on November 6, 2009 and remanded the case back to the District Court for further consideration.  The plaintiffs have renewed their motion for class certification. On March 30, 2012, the Company filed its brief in opposition to the class certification motion. NLIC continues to defend this lawsuit vigorously.

On May 14, 2010, NLIC was named in a lawsuit filed in the Western District of New York entitled Sandra L. Meidenbauer, on behalf of herself and all others similarly situated v. Nationwide Life Insurance Company .  The plaintiff claims to represent a class of all individuals who purchased a variable life insurance policy from NLIC during an unspecified period.  The complaint claims breach of contract, alleging that NLIC charged excessive monthly deductions and costs of insurance resulting in reduced policy values and, in some cases, premature lapsing of policies.  The complaint seeks reimbursement of excessive charges, costs, interest, attorney's fees, and other relief.  NLIC filed a motion to dismiss the complaint on July 23, 2010.  NLIC filed a motion to disqualify the proposed class representative on August 27, 2010.  Plaintiff filed a motion to amend the complaint on September 17, 2010, and NLIC filed an opposition to the motion to amend on November 2, 2010.   On October 13, 2011, plaintiff voluntarily dismissed the lawsuit without prejudic e. In other non-Nationwide cases, plaintiff's counsel has re-filed actions. The Company will continue to monitor developments, but will conclude this matter.

On October 22, 2010, NRS was named in a lawsuit filed in the U.S. District Court, Middle District of Florida, Orlando Division entitled Camille McCullough, and Melanie Monroe, Individually and on behalf of all others similarly situated v. National Association of Counties, NACO Research Foundation, NACO Financial Services Corp., NACO Financial Center, and Nationwide Retirement Solutions, Inc.   The Plaintiffs' First Amended Class Action Complaint and Demand for Jury Trial was filed on February 18, 2011.  If the Court determined that the Plan was governed by ERISA, then Plaintiffs sought to represent a class of "All natural persons in the U.S. who are currently employed or previously were employed at any point during the six years preceding the date Plaintiffs filed their Original Class Action Complaint, by a government entity that is or was a member of the National Association of Counties, and who participate or participated in the Section 457 Deferred Compensation Plan for Public Employees endorsed by the National Association of Counties and administered by Nationwide Retirement Solutions, Inc."  If the Court determined that the Plan was not governed by ERISA, then the Plaintiffs sough to represent a class of " All natural persons in the U.S. who are currently employed or previously were employed at any point during the four years preceding the date Plaintiffs filed their Original Class Action Complaint, by a government entity that is or was a member of the National Association of Counties, and who participate or participated in a Section 457 Deferred Compensation Plan for Public Employees endorsed by the National Association of Counties and administered by Nationwide Retirement Solutions, Inc."  The First Amended Complaint alleged ERISA Violation, Breach of Fiduciary Duty - NACO, Aiding and Abetting Breach of Fiduciary Duty - Nationwide, Breach of Fiduciary Duty - Nationwide, and Aiding and Abetting Breach of Fiduciary Duty - NACO.  The First Amended Complaint asked for actual damages, lost profits, lost opportunity costs, restitution, and/or other injunctive or other relief, including without limitation (a) ordering Nationwide and NACO to restore all plan losses, (b) ordering Nationwide to refund all fees associated with Nationwide's Plan to Plaintiffs and Class members, (c) ordering NACO and Nationwide to pay the expenses and losses incurred by Plaintiffs and/or any Class member as a proximate result of Defendants' breaches of fiduciary duty, (d) forcing NACO to forfeit the fees that NACO received from Nationwide for promoting and endorsing its Plan and disgorging all profits, benefits, and other compensation obtained by NACO from its wrongful conduct, and (e) awarding Plaintiff and Class members their reasonable and necessary attorney's fees and cost incurred in connection with this suit, punitive damages, and pre-judgment and post judgment interest, at the highest rates allowed by law, on the damages awarded.   On March 21, 2011, the Company filed a motion to dismiss the plaintiffs' first amended complaint.   On July 1, 2011, the plaintiffs filed their motion for class certification and later sought to amend their complaint.  On November 25, 2011 the District Court entered an Order granting NACO's motion to dismiss, NRS's motion to dismiss, denying plaintiffs' motion to file an amended complaint, that all other remaining pending motions are moot, dismissing the class-wide claims with prejudice, dismissing individual claims without prejudice, and ordering the Clerk to close this case.  On December 27, 2011, the plaintiffs filed a notice of appeal.  The parties have agreed to resolve the dispute on an individual basis and as part of that settlement will not pursue any further appeal. The Company intends to defend this case vigorously.

On December 27, 2006, NLIC and NRS were named as defendants in a lawsuit filed in Circuit Court, Cole County Missouri entitled State of Missouri, Office of Administration, and Missouri State Employees Deferred Comp Plan v. NLIC and NRS.   The complaint seeks recovery for breach of contract and breach of the implied covenant of good faith and fair dealing against NLIC and NRS as well as a breach of fiduciary duty against NRS.  The complaint seeks to recover the amount of the market value adjustment withheld by NLIC ($19 million), prejudgment interest, loss of investment income from ING due to the Companies’ assessment of the market value adjustment.  On March 8, 2007 the Companies filed a motion to remove this case from state court to federal court in Missouri.  On March 20, 2007 the State filed a motion to remand to state court and to stay court order.  On April 3, 2007 the case was remanded to state court.  On June 25, 2007 the Companies filed an Answer.  On October 16, 2009, the plaintiff filed a partial motion for summary judgment.  On November 20, 2009, the Companies filed a response to the plaintiff's motion for summary judgment and also filed a motion for summary judgment on behalf of the Companies.  On February 26, 2010, the court denied Missouri's partial motion for summary judgment and granted the Companies’ motion for summary judgment and dismissed the case.  On

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March 8, 2011, the Missouri Court of Appeals reversed the granting of the Companies’ motion for summary judgment and directed the trial court to enter judgment in favor of the State and against the Companies in the amount of $19 million, plus statutory interest at the rate of 9% per annum from June 2, 2006.  On March 22, 2011, the Companies filed with the Missouri Court of Appeals, a motion for rehearing and an application for transfer to the Supreme Court of Missouri.  On May 3, 2011, the Missouri Court of Appeals for the Western District overruled the Companies’ motion for rehearing and denied the motion to transfer the case to the Missouri Supreme Court.  On June 28, 2011, the Companies’ application to the Missouri Supreme Court to hear a further appeal was denied.  On July 1, 2011, the Companies paid the amount of the judgment plus simple interest at 9%.  On August 9, 2011, the plaintiffs filed a Satisfaction of Judgment.

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 Nationwide has 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 Nationwide is not conducting such a review.  The complaint seeks injunctive relief and declaratory judgment requiring Nationwide to conduct such a review, and alleges Nationwide has violated the covenant of good faith and fair dealing and has been unjustly enriched by not having conducted such reviews.  The complaint seeks certification as a class action.  Nationwide removed the case to federal court on July 6, 2011.  Plaintiffs filed a motion to remand to state court on August 8, 2011.  On October 26, 2011, the Northern District of Ohio remanded the case to Ohio State court.  Nationwide appealed the order to remand on November 4, 2011.  Including Andrews, there are four similar class actions in Ohio: two against Western & Southern; one against Cincinnati Life.  At the case management conference on November 21, 2011, the State Court ordered Plaintiffs to file an opposition to the motion to dismiss that Nationwide filed in federal court.  Plaintiffs filed their opposition to Nationwide’s motion to dismiss on December 19, 2011.  By order dated January 18, 2012, the State Court issued an order dismissing the lawsuit.  The court issued its opinion on January 23, 2012.  On January 30, 2012, plaintiffs filed their appeal.

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

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Table of Contents of the Statement of Additional Information

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	77

Investment Company Act of 1940 Registration File No. 811- 0 5701

Securities Act of 1933 Registration File No. 333-140812

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Appendix A: Underlying Mutual Funds

The underlying mutual funds listed below are designed primarily as investments for variable annuity contracts and variable life insurance policies issued by insurance companies.  There is no guarantee that the investment objectives will be met.  Please refer to the prospectus for each underlying mutual fund for more detailed information.

Designations Key:

STTF: The underlying mutual fund in which this Sub-Account invests assesses (or reserves the right to assess) a Short-Term Trading Fee (see "Short-Term Trading Fees" earlier in the prospectus).

FF: The underlying mutual fund corresponding to this Sub-Account may invest 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.

ATF: This Sub-Account is an Actively Traded Fund (see "Frequent Trading and Transfer Restrictions" earlier in the prospectus).

LTF: This Sub-Account is a Limited Transfer Fund (see "Frequent Trading and Transfer Restrictions" earlier in the prospectus).

AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B

Investment Advisor:	AllianceBernstein L.P.
Investment Objective:	The fund seeks to maximize total return consistent with the Adviser's determination of reasonable risk.

Designation: LTF

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

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

Designation: LTF

American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III

Investment Advisor:	American Century Investment Management, Inc.
Investment Objective:	Capital growth by investing in common stocks.  Income is a secondary objective.

Designation: STTF, LTF

American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III

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

Designation: STTF, LTF

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.

Designation: LTF

Credit Suisse Trust - Commodity Return Strategy Portfolio

Investment Advisor:	Credit Suisse Asset Management, LLC
Investment Objective:	Total Return.

Designation: LTF

Direxion Insurance Trust - Dynamic VP HY Bond Fund

Investment Advisor:	Rafferty Asset Management, LLC
Investment Objective:	The Fund seeks to maximize total return (income plus capital appreciation).

Designation: ATF

Fidelity Variable Insurance Products Fund - VIP Asset Manager 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 Money Management, Inc., Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective:	High total return.

Designation: LTF

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Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R

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:	Reasonable income.

Designation: STTF, LTF

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

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.

Designation: STTF, LTF

Fidelity Variable Insurance Products Fund - VIP High Income Portfolio: Service Class 2R

Investment Advisor:	Fidelity Management & Research Company
Sub-advisor:	FMR Co., Inc., Fidelity Research & Analysis Company, Fidelity Investments Japan Limited, Fidelity International Investment Advisors, Fidelity International Investment Advisors (U.K.) Limited
Investment Objective:	High level of current income while also considering growth of capital.

Designation: STTF, LTF

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, LTF

Guggenheim Variable Fund - All-Asset Aggressive Strategy  (formerly,  Rydex Variable Trust - All-Asset Aggressive Strategy Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Seeks growth of capital.

Designation: FF, LTF

Guggenheim Variable Fund - All-Asset Conservative Strategy (formerly, Rydex Variable Trust - All-Asset Conservative Strategy Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Primarily seeks preservation of capital and, secondarily seeks long-term growth of capital.

Designation: FF, LTF

Guggenheim Variable Fund - All-Asset Moderate Strategy  (formerly, Rydex Variable Trust - All-Asset Moderate Strategy Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Primarily seeks growth of capital and, secondarily seeks preservation of capital.

Designation: FF, LTF

Guggenheim Variable Fund - Alternative Strategies Allocation Fund (formerly, Rydex Variable Trust - Alternative Strategies Allocation Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Seeks to deliver a return that has a low correlation to the returns of traditional stock and bond asset classes as well as provide capital appreciation.

Designation: LTF

Guggenheim Variable Fund - CLS AdvisorOne Amerigo (formerly, Rydex Variable Trust - Amerigo Fund)

Investment Advisor:	Security Global Investors
Sub-advisor:	CLS Investment Firm, LLC
Investment Objective:	Long-term capital growth without regard to current income.

Designation: FF, ATF

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Guggenheim Variable Fund - CLS AdvisorOne Clermont (formerly, Rydex Variable Trust - Clermont Fund)

Investment Advisor:	Security Global Investors
Sub-advisor:	CLS Investment Firm, LLC
Investment Objective:	A combination of current income and growth of capital.

Designation: FF, ATF

Guggenheim Variable Fund - CLS AdvisorOne Select Allocation (formerly, Rydex Variable Trust - Select Allocation Fund)

Investment Advisor:	Security Global Investors
Sub-advisor:	CLS Investment Firm, LLC
Investment Objective:	Growth of capital and total return.

Designation: FF, ATF

Guggenheim Variable Fund - DWA Flexible Allocation (formerly, Rydex Variable Trust - DWA Flexible Allocation Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Seeks to provide capital appreciation with capital preservation as a secondary objective.

Designation: LTF

Guggenheim Variable Fund - DWA Sector Rotation (formerly, Rydex Variable Trust - DWA Sector Rotation Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Seeks to provide long-term capital appreciation.

Designation: LTF

Guggenheim Variable Fund - Managed Futures Strategy (formerly, Rydex Variable Trust - Managed Futures Strategy Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	The Managed Futures Strategy Fund seeks to provide investment results that match the performance of a benchmark for measuring trends in the commodity and financial futures markets.

Designation: LTF

Guggenheim Variable Fund - Multi-Hedge Strategies Fund (formerly, Rydex Variable Trust -  Multi-Hedge Strategies Fund)

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.

Designation: LTF

Guggenheim Variable Fund - U.S. Long Short Momentum (formerly, Rydex Variable Trust - U.S. Long Short Momentum Fund)

Investment Advisor:	Security Global Investors
Investment Objective:	Long-term capital appreciation.

Designation: LTF

Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy

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

Designation: LTF

MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class

Investment Advisor:	Massachusetts Financial Services Company
Investment Objective:	The fund seeks total return.

Designation: LTF

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.

Designation: LTF

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

This underlying mutual fund is no longer available to receive transfers or new purchase payments effective May 1, 2012

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

Designation: STTF, LTF

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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, LTF

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, LTF

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, LTF

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, LTF

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, LTF

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, LTF

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, LTF

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.

Designation: LTF

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

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.

Designation: STTF, LTF

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

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.

Designation: STTF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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: STTF, FF, LTF

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

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.

Designation: LTF

Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Invesco Advisers, Inc. and American Century Investment Management, Inc.
Investment Objective:	The fund seeks long-term capital growth.

Designation: STTF, LTF

35

Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	AllianceBernstein L.P.; JPMorgan Investment Management, Inc.
Investment Objective:	The Fund seeks long-term capital appreciation.

Designation: STTF, LTF

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.

Designation: LTF

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.

Designation: LTF

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

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

Designation: LTF

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

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.

Designation: LTF

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Waddell & Reed Investment Management Company; OppenheimerFunds, Inc.
Investment Objective:	The Fund seeks capital growth.

Designation: STTF, LTF

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

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.

Designation: STTF, LTF

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

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.

Designation: STTF, LTF

Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III

Investment Advisor:	Nationwide Fund Advisors
Sub-advisor:	Aberdeen Asset Management, Inc. and Diamond Hill Capital Management, Inc.
Investment Objective:	The Fund seeks total return through a flexible combination of capital appreciation and current income.

Designation: STTF, LTF

36

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 capital and minimizing fluctuations in share value.

Designation: LTF

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, LTF

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.

Designation: LTF

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. The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to emerging market countries which may be represented by forwards or derivatives such as options, futures contracts or swap agreements.

Designation: LTF

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. The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to foreign (non-U.S.) countries, representing at least three foreign countries, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements.

Designation: LTF

PIMCO Variable Insurance Trust - Global Bond (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. The portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in Fixed Income Instruments that are economically tied to at least three countries (one of which may be the U.S.), which may be represented by forwards or derivatives such as options, futures contracts or sweep agreements.

Designation: LTF

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. The portfolio seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of high yield securities ("junk bonds"), which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements, rated below investment grade but rated at least Caa by Moody's, or equivalently rated by S&P of Fitch, or, if unrated, determined by PIMCO to be of at comparable quality.

Designation: LTF

37

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. The Portfolio seeks to achieve its investment objective by investing under normal circumstances at least 65% of its assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements.

Designation: LTF

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.

Designation: LTF

Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II

This underlying mutual fund is only available in contracts for which good order applications were received before May 1, 2012

Investment Advisor:	Pioneer Investment Management, Inc.
Investment Objective:	Long-term growth of capital.

Designation: LTF

Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II

This underlying mutual fund is no longer available to receive transfers or new purchase payments effective May 1, 2012

Investment Advisor:	Pioneer Investment Management, Inc.
Investment Objective:	Maximize total return through a combination of income and capital appreciation.  Normally, the portfolio invests at least 80% of its total assets in below investment grade (high yield) debt securities and preferred stocks.

Designation: LTF

ProFunds - ProFund VP Access High Yield Fund

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The Access VP High Yield Fund (the “Fund”) seeks to provide investment results that correspond generally to the total return of the high yield market consistent with maintaining reasonable liquidity.

Designation: ATF

ProFunds - ProFund VP Asia 30

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Asia 30 seeks daily investment results, before fees and expenses, that correspond to the daily performance of the ProFunds Asia 30 Index.

Designation: ATF

ProFunds - ProFund VP Banks

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Banks Index.

Designation: ATF

ProFunds - ProFund VP Basic Materials

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Basic Materials Index.

Designation: ATF

ProFunds - ProFund VP Bear

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Bear seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the S&P 500 Index.

Designation: ATF

38

ProFunds - ProFund VP Biotechnology

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Biotechnology Index.

Designation: ATF

ProFunds - ProFund VP Bull

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Bull seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P 500 Index.

Designation: ATF

ProFunds - ProFund VP Consumer Goods

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Consumer Goods Index.

Designation: ATF

ProFunds - ProFund VP Consumer Services

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Consumer Services Index.

Designation: ATF

ProFunds - ProFund VP Emerging Markets

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Emerging Markets seeks daily investment results, before fees and expenses, that correspond to the daily performance of The Bank of New York Mellon Emerging Markets 50 ADR Index.

Designation: ATF

ProFunds - ProFund VP Europe 30

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Europe 30 seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Pro-Funds Europe 30 Index.

Designation: ATF

ProFunds - ProFund VP Financials

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Financials Index.

Designation: ATF

ProFunds - ProFund VP Health Care

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Health Care Index

Designation: ATF

ProFunds - ProFund VP Industrials

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Industrials Index.

Designation: ATF

ProFunds - ProFund VP International

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP International seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index.

Designation: ATF

39

ProFunds - ProFund VP Internet

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones Internet Composite Index.

Designation: ATF

ProFunds - ProFund VP Japan

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Japan seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Nikkei 225 Stock Average.

Designation: ATF

ProFunds - ProFund VP NASDAQ-100

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP NASDAQ-100 seeks daily investment results, before fees and expenses, that correspond to the daily performance of the NASDAQ-100 Index.

Designation: ATF

ProFunds - ProFund VP Oil & Gas

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Oil & Gas seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Oil & Gas Index.

Designation: ATF

ProFunds - ProFund VP Pharmaceuticals

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Pharmaceuticals Index.

Designation: ATF

ProFunds - ProFund VP Precious Metals

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones Precious Metals Index.

Designation: ATF

ProFunds - ProFund VP Real Estate

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Real Estate Index.

Designation: ATF

ProFunds - ProFund VP Rising Rates Opportunity

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Rising Rates Opportunity seeks daily investment results, before fees and expenses, that correspond to one and one-quarter times (125%) the inverse (opposite) of the daily price movement of the most recently issued 30-year U.S. Treasury Bond (“Long Bond”).

Designation: ATF

ProFunds - ProFund VP Semiconductor

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Semiconductors Index.

ProFunds - ProFund VP Short Emerging Markets

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Short Emerging Markets seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of The Bank of New York Mellon Emerging Markets 50 ADR Index.

Designation: ATF

40

ProFunds - ProFund VP Short International

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Short International seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Morgan Stanley Capital International Europe, Australasia and Far East (“MSCI EAFE”) Index.

Designation: ATF

ProFunds - ProFund VP Short NASDAQ-100

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP Short NASDAQ-100 (formerly ProFund VP Short OTC) seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the NASDAQ-100 Index.

Designation: ATF

ProFunds - ProFund VP Technology

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Technology Index.

Designation: ATF

ProFunds - ProFund VP Telecommunications

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S Telecommunications Index.

Designation: ATF

ProFunds - ProFund VP U.S. Government Plus

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP U.S. Government Plus seeks daily investment results, before fees and expenses, that correspond to one and one-quarter times (125%) the daily price movement of the most recently issued 30-year U.S. Treasury Bond (“Long Bond”).

Designation: ATF

ProFunds - ProFund VP UltraNASDAQ-100

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	ProFund VP UltraNASDAQ-100 (formerly ProFund VP Ultra OTC) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the NASDAQ-100 Index.

Designation: ATF

ProFunds - ProFund VP UltraShort NASDAQ-100

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The Fund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the Index. The Fund does not seek to achieve its stated investment objective over a period of time greater than one day.

Designation: ATF

ProFunds - ProFund VP Utilities

Investment Advisor:	ProFund Advisors LLC
Investment Objective:	The fund seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Utilities Index.

Designation: ATF

Rydex Variable Trust - Banking Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the banking sector, including commercial banks (and their holding companies) and savings and loan institutions.

Designation: ATF

41

Rydex Variable Trust - Basic Materials Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in the mining, manufacture, or sale of basic materials, such as lumber, steel, iron, aluminum, concrete, chemicals and other basic building and manufacturing materials.

Designation: ATF

Rydex Variable Trust - Biotechnology Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the biotechnology industry, including companies involved in research and development, genetic or other biological engineering, and in the design, manufacture, or sale of related biotechnology products or services.

Designation: ATF

Rydex Variable Trust - Commodities Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Seeks to provide investment results that correlate to the performance of the Goldman Sachs Commodity Total Return Index ("GSCI® Index").

Designation: LTF

Rydex Variable Trust - Consumer Products Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in manufacturing finished goods and services both domestically and internationally.

Designation: ATF

Rydex Variable Trust - Dow 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 200% of the daily performance of the Dow Jones Industrial Average.

Designation: ATF

Rydex Variable Trust - Electronics Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the electronics sector, including semiconductor manufacturers and distributors, and makers and vendors of other electronic components and devices.

Designation: ATF

Rydex Variable Trust - Energy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies involved in the energy field, including the exploration, production, and development of oil, gas, coal and alternative sources of energy.

Designation: ATF

Rydex Variable Trust - Energy Services Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the energy services field, including those that provide services and equipment in the areas of oil, coal, and gas exploration and production.

Designation: ATF

Rydex Variable Trust - Europe 1.25x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the Dow Jones STOXX 50 Index.

Designation: ATF

Rydex Variable Trust - Financial Services Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the financial services sector.

Designation: ATF

42

Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond with 120% of the daily price movement of the Long Treasury Bond.

Designation: ATF

Rydex Variable Trust - Health Care Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the health care industry.

Designation: ATF

Rydex Variable Trust - Internet Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that provide products or services designed for or related to the Internet.

Designation: ATF

Rydex Variable Trust - Inverse Dow 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that inversely correspond to 200% of the daily performance of the Dow Jones Industrial Average.

Designation: ATF

Rydex Variable Trust - Inverse Government Long Bond Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that inversely correspond to the daily performance of the Long Treasury Bond.

Designation: ATF

Rydex Variable Trust - Inverse Mid-Cap Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that inversely correspond to the daily performance of the S&P Mid Cap 400® Index.

Designation: ATF

Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that inversely correspond to the daily performance of the NASDAQ 100 Index®.

Designation: ATF

Rydex Variable Trust - Inverse Russell 2000® Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that inversely correspond to the daily performance of the Russell 2000 Index®.

Designation: ATF

Rydex Variable Trust - Inverse S&P 500 Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that will inversely correlate to the daily performance of the S&P 500® Index.

Designation: ATF

Rydex Variable Trust - Japan 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correlate to the daily performance of the Nikkei 225 Stock Average.

Designation: ATF

Rydex Variable Trust - Leisure Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in leisure and entertainment businesses.

Designation: ATF

43

Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P MidCap 400® Index.

Designation: ATF

Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 200% of the daily performance of the NASDAQ 100 Index®.

Designation: ATF

Rydex Variable Trust - NASDAQ-100® Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the NASDAQ 100 Index®.

Designation: ATF

Rydex Variable Trust - Nova Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 150% of the daily performance of the S&P 500® Index.

Designation: ATF

Rydex Variable Trust - Precious Metals Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in U.S. and foreign companies that are involved in the precious metals sector, including exploration, mining, production and development, and other precious metals-related services.

Designation: ATF

Rydex Variable Trust - Real Estate Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the real estate industry including real estate investment trusts.

Designation: ATF

Rydex Variable Trust - Retailing Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in merchandising finished goods and services, including department stores, restaurant franchises, mail order operations and other companies involved in selling products to consumers.

Designation: ATF

Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the Russell 2000 Index®.

Designation: ATF

Rydex Variable Trust - S&P 500 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 200% of the daily performance of the S&P 500® Index.

Designation: ATF

Rydex Variable Trust - S&P 500 Pure Growth Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P 500/Pure Growth Index.

Designation: ATF

44

Rydex Variable Trust - S&P 500 Pure Value Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P 500/Pure Value Index.

Designation: ATF

Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P MidCap 400/Pure Growth Index.

Designation: ATF

Rydex Variable Trust - S&P MidCap 400 Pure Value Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P MidCap 400/Pure Value Index.

Designation: ATF

Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P SmallCap 600/Pure Growth Index.

Designation: ATF

Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to the daily performance of the S&P SmallCap 600/Pure Value Index.

Designation: ATF

Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 200% of the daily performance of the U.S. Dollar Index.

Designation: ATF

Rydex Variable Trust - Technology Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that are involved in the technology sector, including computer software and service companies, semiconductor manufacturers, networking and telecommunications equipment manufacturers, PC hardware and peripherals companies.

Designation: ATF

Rydex Variable Trust - Telecommunications Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in the development, manufacture, or sale of communications services or communications equipment.

Designation: ATF

Rydex Variable Trust - Transportation Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment.

Designation: ATF

Rydex Variable Trust - Utilities Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Capital appreciation by investing in companies that operate public utilities.

Designation: ATF

45

Rydex Variable Trust - Weakening Dollar 2x Strategy Fund

Investment Advisor:	Security Global Investors
Investment Objective:	Investment results that correspond to 200% of the daily performance of the U.S. Dollar Index.

Designation: ATF

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.

Designation: LTF

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.

Designation: LTF

The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II

Investment Advisor:	Morgan Stanley Investment Management Inc.
Investment Objective:	The fund seeks total return.

Designation: LTF

Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial 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.

Designation: LTF

Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class

Investment Advisor:	Van Eck Associates Corporation
Investment Objective:	The fund seeks to achieve consistent absolute (positive) returns in various market cycles.

Designation: FF, LTF

46

Appendix B: Condensed Financial Information

The following tables list the Condensed Financial Information (the Accumulation Unit value information for Accumulation Units outstanding) for contracts with no optional benefits (the minimum Variable Account charge of 0. 45 %) and contracts with all optional benefits available on December 31, 2011 (the maximum Variable Account charge of 1.20 %).  The term "Period" is defined as a complete calendar year, unless otherwise noted.  Those Periods with an asterisk (*) reflect Accumulation Unit information for a partial year only.  Should the Variable Account charges applicable to your contract fall between the maximum and minimum charges, and you wish to see a copy of the Condensed Financial Information applicable to your contract, please contact the Service Center to request the Statement of Additional Information.

The following Sub-Accounts were added to the Variable Account after December 31, 2011. T herefore, no Condensed Financial Information is available:

Direxion Insurance Trust

·    Dynamic VP HY Bond Fund

Fidelity Variable Insurance Products Fund

·    VIP High Income Portfolio: Service Class 2R

No Additional Contract Options Elected - .45%
Variable account charges of the daily net assets of the variable account - .45%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.135590	-8.64%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.699913	7.00%	60,248
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.425522	10.701471	2.65%	3,125
2010*	10.000000	10.425522	4.26%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.481925	10.540718	0.56%	3,462
2010*	10.000000	10.481925	4.82%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.680654	10.245656	-4.07%	40,685
2010*	10.000000	10.680654	6.81%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.911231	10.357570	-13.04%	2,060
2010*	10.000000	11.911231	19.11%	130
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.148636	-8.51%	916
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.367344	10.393519	0.25%	1,475
2010*	10.000000	10.367344	3.67%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.226480	11.173616	-0.47%	3,489
2010*	10.000000	11.226480	12.26%	505

47

Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.478770	10.270881	-1.98%	35,349
2010*	10.000000	10.478770	4.79%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.465349	9.971761	-4.72%	751
2010*	10.000000	10.465349	4.65%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.249553	10.070644	-1.75%	7,509
2010*	10.000000	10.249553	2.50%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.200080	9.869373	-3.24%	970
2010*	10.000000	10.200080	2.00%	0
Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.812005	9.467318	-3.51%	0
2010	9.916793	9.812005	-1.06%	279
2009	9.877331	9.916793	0.40%	0
2008*	10.000000	9.877331	-1.23%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.516499	8.782158	-7.72%	1,179
2010	8.302887	9.516499	14.62%	459
2009	5.982812	8.302887	38.78%	1,680
2008	10.560125	5.982812	-43.35%	138
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.651027	9.581056	-0.73%	611
2010	8.735016	9.651027	10.49%	126,754
2009	7.158065	8.735016	22.03%	0
2008	10.282751	7.158065	-30.39%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.559867	9.116216	-4.64%	664
2010	8.442286	9.559867	13.24%	0
2009	6.245042	8.442286	35.18%	0
2008	10.841403	6.245042	-42.40%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.854028	8.716731	-11.54%	1,719
2010*	10.000000	9.854028	-1.46%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.632439	8.887887	-7.73%	5,515
2010*	10.000000	9.632439	-3.68%	2,987

48

Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.926285	8.119539	-9.04%	4,739
2010	9.295316	8.926285	-3.97%	3,253
2009	9.727880	9.295316	-4.45%	6,456
2008*	10.000000	9.727880	-2.72%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.300144	8.542210	2.92%	33,756
2010	7.852272	8.300144	5.70%	432
2009	8.155551	7.852272	-3.72%	0
2008	10.079339	8.155551	-19.09%	0
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.154786	8.515589	-6.98%	49,702
2010	8.269333	9.154786	10.71%	71,116
2009	6.525624	8.269333	26.72%	1,782
2008	11.060826	6.525624	-41.00%	0
Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.499842	9.699509	-7.62%	64,043
2010*	10.000000	10.499842	5.00%	8,812
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.523400	-4.77%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.380066	-6.20%	39,161
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.657936	11.013982	3.34%	204,871
2010*	10.000000	10.657936	6.58%	39,911
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.804287	10.069743	-6.80%	0
2010*	10.000000	10.804287	8.04%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.531506	10.343184	-1.79%	7,667
2010*	10.000000	10.531506	5.32%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.651096	10.237698	-3.88%	0
2010*	10.000000	10.651096	6.51%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.345820	10.444641	0.96%	5,144
2010*	10.000000	10.345820	3.46%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.584630	10.291293	-2.77%	5,218
2010*	10.000000	10.584630	5.85%	0

49

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.717008	10.170501	-5.10%	6,019
2010*	10.000000	10.717008	7.17%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.468380	10.393170	-0.72%	5,338
2010*	10.000000	10.468380	4.68%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.320309	3.20%	2,393
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.336741	8.758676	-22.74%	704
2010*	10.000000	11.336741	13.37%	704
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.212063	10.904211	6.78%	29,227
2010*	10.000000	10.212063	2.12%	11,832
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.677477	10.211049	-4.37%	0
2010*	10.000000	10.677477	6.77%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.460882	10.504706	0.42%	1,667
2010*	10.000000	10.460882	4.61%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.563166	10.412258	-1.43%	0
2010*	10.000000	10.563166	5.63%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.287481	10.542450	2.48%	453
2010*	10.000000	10.287481	2.87%	96,885
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.498571	10.447340	-0.49%	8,984
2010*	10.000000	10.498571	4.99%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.608145	10.334094	-2.58%	0
2010*	10.000000	10.608145	6.08%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.400214	10.577673	1.71%	4,409
2010*	10.000000	10.400214	4.00%	40,087
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.952557	9.907868	-0.45%	954,687
2010	9.997529	9.952557	-0.45%	326,461
2009*	10.000000	9.997529	-0.02%	70,341

50

Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.216372	10.091503	-10.03%	22,259
2010*	10.000000	11.216372	12.16%	38,174
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.684909	8.892590	-16.77%	22,989
2010*	10.000000	10.684909	6.85%	49,075
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.836040	10.438669	-3.67%	2,352
2010*	10.000000	10.836040	8.36%	258
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.329804	9.656934	-6.51%	11,588
2010*	10.000000	10.329804	3.30%	274
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.296658	10.745392	-4.88%	13,336
2010*	10.000000	11.296658	12.97%	968
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.847515	10.548143	-2.76%	545
2010*	10.000000	10.847515	8.48%	263
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.228316	11.105054	-1.10%	259
2010*	10.000000	11.228316	12.28%	259
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.781514	10.179012	-5.59%	869
2010*	10.000000	10.781514	7.82%	270
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.083296	10.421704	-5.97%	2,649
2010*	10.000000	11.083296	10.83%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.456652	10.491520	0.33%	0
2010*	10.000000	10.456652	4.57%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.012695	0.13%	47,717
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.589921	-4.10%	6,990
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.324497	11.343567	-7.96%	56,771
2010*	10.000000	12.324497	23.24%	74,007

51

PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.660602	11.271873	5.73%	104,432
2010*	10.000000	10.660602	6.61%	83,085
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.954424	11.823072	7.93%	192,426
2010*	10.000000	10.954424	9.54%	72,432
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.949177	11.712721	6.97%	73,071
2010*	10.000000	10.949177	9.49%	98,992
PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.652152	10.947268	2.77%	281,483
2010*	10.000000	10.652152	6.52%	9,017
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.880622	-1.19%	23,855
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.061067	0.61%	83,104
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.266994	8.567626	-23.96%	35,679
2010*	10.000000	11.266994	12.67%	14,682
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.885291	10.616363	-2.47%	115,939
2010*	10.000000	10.885291	8.85%	3,437
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.950428	11.200457	2.28%	37,212
2010*	10.000000	10.950428	9.50%	8,270
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.183281	8.127525	-27.32%	14,966
2010*	10.000000	11.183281	11.83%	3,006
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.503715	-24.96%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.763575	-22.36%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.026274	8.187328	-9.29%	89,542
2010*	10.000000	9.026274	-9.74%	89,545
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.406575	-5.93%	1,149

52

ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.430190	10.383436	-0.45%	5,552
2010*	10.000000	10.430190	4.30%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.942895	-0.57%	142
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.691738	-3.08%	1,658
ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.075932	8.853601	-20.06%	9,662
2010*	10.000000	11.075932	10.76%	20,782
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.657891	9.667328	-9.29%	0
2010*	10.000000	10.657891	6.58%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.322198	-16.78%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.656751	-3.43%	147
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.781955	-12.18%	2,826
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.924006	9.315613	-14.72%	5,362
2010*	10.000000	10.924006	9.24%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.506416	-14.94%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.975941	7.279030	-18.91%	3,950
2010*	10.000000	8.975941	-10.24%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.837127	10.945413	1.00%	10,519
2010*	10.000000	10.837127	8.37%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.134078	11.333043	1.79%	2,191
2010*	10.000000	11.134078	11.34%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.454251	4.54%	1,540

53

ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.330619	-16.69%	5,885
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.328532	-6.71%	1,112
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.855732	5.509924	-37.78%	0
2010*	10.000000	8.855732	-11.44%	80,894
ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.861801	-11.38%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.381824	9.233637	10.16%	0
2010*	10.000000	8.381824	-16.18%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.586990	8.702409	1.34%	0
2010*	10.000000	8.586990	-14.13%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.723848	7.774862	-10.88%	0
2010*	10.000000	8.723848	-12.76%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.329063	-6.71%	1,727
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.572855	-4.27%	149
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.594914	15.136665	42.87%	3,359
2010*	10.000000	10.594914	5.95%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.447817	11.260294	-1.64%	11,463
2010*	10.000000	11.447817	14.48%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.423866	5.751562	-22.53%	0
2010*	10.000000	7.423866	-25.76%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.878036	8.78%	0

54

Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.288169	4.094124	-22.58%	869
2010	4.699353	5.288169	12.53%	0
2009	4.888426	4.699353	-3.87%	0
2008	8.346002	4.888426	-41.43%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.798400	9.812145	-16.83%	13,900
2010	9.356136	11.798400	26.10%	21,331
2009	6.045586	9.356136	54.76%	3,103
2008	11.122248	6.045586	-45.64%	4,535
Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.195093	13.425994	10.09%	2,174
2010	11.065948	12.195093	10.20%	905
2009	9.393284	11.065948	17.81%	0
2008	10.695240	9.393284	-12.17%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.229228	6.718578	-7.06%	300
2010	6.722168	7.229228	7.54%	613
2009	6.052691	6.722168	11.06%	1,092
2008	11.927349	6.052691	-49.25%	1,092
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.397878	12.908304	13.25%	2,353
2010	9.762294	11.397878	16.75%	0
2009	8.232553	9.762294	18.58%	0
2008	10.794636	8.232553	-23.73%	3,912
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.206925	6.740647	8.60%	3,473
2010	5.004613	6.206925	24.02%	0
2009	3.673001	5.004613	36.25%	0
2008	9.637152	3.673001	-61.89%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.389654	6.974994	-16.86%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.967273	9.342266	-6.27%	3,404
2010	8.409979	9.967273	18.52%	1,344
2009	6.099644	8.409979	37.88%	1,362
2008	11.354022	6.099644	-46.28%	4,307
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.229984	8.334672	-9.70%	1,473
2010	7.355710	9.229984	25.48%	3,811
2009	4.549316	7.355710	61.69%	1,790
2008	10.778689	4.549316	-57.79%	4,659

55

Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.608925	4.738589	-15.52%	3,836
2010	6.314707	5.608925	-11.18%	115
2009	4.676156	6.314707	35.04%	0
2008	10.406073	4.676156	-55.06%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.262106	5.303631	-15.31%	0
2010	5.500358	6.262106	13.85%	0
2009	4.616540	5.500358	19.14%	0
2008	8.925527	4.616540	-48.28%	0
Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.831966	16.665198	40.85%	182,376
2010	10.794876	11.831966	9.61%	165
2009	15.839878	10.794876	-31.85%	4,311
2008	10.986701	15.839878	44.17%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.044472	10.468099	4.22%	1,156
2010	9.450237	10.044472	6.29%	0
2009	7.615876	9.450237	24.09%	1,193
2008	10.181192	7.615876	-25.20%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.231702	9.848113	-12.32%	0
2010	9.341905	11.231702	20.23%	3,084
2009	5.658062	9.341905	65.11%	606
2008	10.310462	5.658062	-45.12%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.170609	4.479756	-27.40%	0
2010	8.891853	6.170609	-30.60%	41,594
2009	16.137652	8.891853	-44.90%	0
2008	10.078710	16.137652	60.12%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.576098	4.553900	-30.75%	449
2010	7.576205	6.576098	-13.20%	0
2009	6.373286	7.576205	18.87%	0
2008	9.173328	6.373286	-30.52%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.491107	5.987972	-7.75%	0
2010	8.727625	6.491107	-25.63%	0
2009	13.545774	8.727625	-35.57%	0
2008	10.122760	13.545774	33.82%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.477248	5.798434	-10.48%	0
2010	8.264075	6.477248	-21.62%	0
2009	13.853817	8.264075	-40.35%	0
2008	9.401514	13.853817	47.36%	0

56

Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.071224	5.583765	-8.03%	8,386
2010	8.426522	6.071224	-27.95%	70,399
2009	12.606931	8.426522	-33.16%	0
2008	10.156122	12.606931	24.13%	1,999
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.333038	7.545360	-9.45%	705
2010	10.080150	8.333038	-17.33%	2,354
2009	13.976125	10.080150	-27.88%	0
2008	10.082309	13.976125	38.62%	0
Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.600814	6.083884	-29.26%	141
2010	7.465672	8.600814	15.20%	1,550
2009	6.063831	7.465672	23.12%	0
2008	9.088049	6.063831	-33.28%	0
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.938881	9.116904	1.99%	1,460
2010	6.888930	8.938881	29.76%	2,654
2009	5.061320	6.888930	36.11%	0
2008	9.987244	5.061320	-49.32%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.992811	8.272791	-8.01%	12,983
2010	6.567334	8.992811	36.93%	2,815
2009	4.328896	6.567334	51.71%	0
2008	9.628009	4.328896	-55.04%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.808932	8.710104	-1.12%	2,324
2010	6.463680	8.808932	36.28%	190,984
2009	2.981049	6.463680	116.83%	0
2008	10.928265	2.981049	-72.72%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.968480	11.155992	1.71%	20,977
2010	9.299166	10.968480	17.95%	6,143
2009	6.145508	9.299166	51.32%	9,738
2008	10.627688	6.145508	-42.17%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.143023	7.027970	-1.61%	2,785
2010	5.981140	7.143023	19.43%	122
2009	4.433848	5.981140	34.90%	0
2008	9.783317	4.433848	-54.68%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.534206	10.973672	-24.50%	67,956
2010	10.573774	14.534206	37.46%	61,705
2009	7.117050	10.573774	48.57%	2,214
2008	11.637003	7.117050	-38.84%	4,397

57

Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.480155	8.633223	1.81%	15,986
2010	6.822183	8.480155	24.30%	5,384
2009	5.470751	6.822183	24.70%	1,709
2008	9.416573	5.470751	-41.90%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.629121	11.142009	4.83%	4,514
2010	8.532267	10.629121	24.58%	0
2009	5.942734	8.532267	43.57%	659
2008	8.902892	5.942734	-33.25%	0
Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.435200	7.374148	-12.58%	14,590
2010	6.146942	8.435200	37.23%	71
2009	4.631768	6.146942	32.71%	0
2008	9.566797	4.631768	-51.58%	0
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.625850	5.379490	-4.38%	4,046
2010	4.504208	5.625850	24.90%	0
2009	3.091053	4.504208	45.72%	15,881
2008	9.698458	3.091053	-68.13%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.086878	10.916964	-1.53%	15,056
2010	8.907335	11.086878	24.47%	1,928
2009	6.076983	8.907335	46.57%	0
2008	10.144578	6.076983	-40.10%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.546048	8.238132	-3.60%	33,297
2010	7.135096	8.546048	19.77%	15,702
2009	4.738559	7.135096	50.58%	29,714
2008	9.270493	4.738559	-48.89%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.370743	13.223150	-1.10%	29,656
2010	10.130726	13.370743	31.98%	30,792
2009	6.489421	10.130726	56.11%	649
2008	10.208819	6.489421	-36.43%	133
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.677877	8.945512	-7.57%	30,400
2010	8.092576	9.677877	19.59%	13,388
2009	5.236074	8.092576	54.55%	14,954
2008	9.330706	5.236074	-43.88%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.536860	10.858277	3.05%	16,310
2010	8.440607	10.536860	24.84%	14,176
2009	6.328825	8.440607	33.37%	734
2008	9.679292	6.328825	-34.61%	142

58

Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.510454	8.573673	-9.85%	4,434
2010	7.636718	9.510454	24.54%	8,035
2009	4.727487	7.636718	61.54%	11,111
2008	8.404677	4.727487	-43.75%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.661659	7.302240	-4.69%	837
2010	8.059438	7.661659	-4.94%	0
2009	9.619432	8.059438	-16.22%	0
2008	9.153640	9.619432	5.09%	0
Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.399735	8.496653	-9.61%	1,607
2010	8.428048	9.399735	11.53%	0
2009	5.440856	8.428048	54.90%	2,057
2008	10.011993	5.440856	-45.66%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.565427	6.446789	-14.79%	0
2010	6.636616	7.565427	14.00%	0
2009	5.180611	6.636616	28.10%	0
2008	9.520232	5.180611	-45.58%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.262423	8.195604	-11.52%	412
2010	7.495419	9.262423	23.57%	0
2009	6.414067	7.495419	16.86%	0
2008	8.620542	6.414067	-25.60%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.081388	10.513134	15.77%	8,441
2010	8.535106	9.081388	6.40%	753
2009	7.534254	8.535106	13.28%	947
2008	10.746568	7.534254	-29.89%	125
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.637925	9.241238	-4.12%	9,500
2010	10.256644	9.637925	-6.03%	0
2009	9.664514	10.256644	6.13%	0
2008	11.061930	9.664514	-12.63%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.374710	3.75%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.342078	-16.58%	1,490
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.938628	-10.61%	0

59

Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.737987	-22.62%	362
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.663198	-3.37%	0

60

Maximum Contract Options Elected Total - 1.20%
Variable account charges of the daily net assets of the variable account - 1.20%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.089836	-9.10%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.646417	6.46%	0
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.789014	12.010082	1.88%	0
2010	10.453309	11.789014	12.78%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.624082	13.597482	-0.20%	0
2010	12.157553	13.624082	12.06%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.627272	10.117793	-4.79%	0
2010*	10.000000	10.627272	6.27%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.851719	10.228334	-13.70%	0
2010*	10.000000	11.851719	18.52%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.102844	-8.97%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.780478	11.721428	-0.50%	0
2010	10.376946	11.780478	13.53%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.000027	10.865907	-1.22%	0
2010	8.988893	11.000027	22.37%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.426391	10.142690	-2.72%	0
2010*	10.000000	10.426391	4.26%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.413020	9.847300	-5.43%	0
2010*	10.000000	10.413020	4.13%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.198310	9.944990	-2.48%	0
2010*	10.000000	10.198310	1.98%	0

61

Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.149080	9.746206	-3.97%	0
2010*	10.000000	10.149080	1.49%	0
Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.660912	9.251463	-4.24%	0
2010	9.838203	9.660912	-1.80%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.918906	9.084654	-8.41%	0
2010	8.719577	9.918906	13.75%	0
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.648351	9.506403	-1.47%	0
2010	8.798833	9.648351	9.65%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.298198	8.800021	-5.36%	0
2010	8.273470	9.298198	12.39%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.804748	8.607914	-12.21%	0
2010*	10.000000	9.804748	-1.95%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.584275	8.776953	-8.42%	0
2010*	10.000000	9.584275	-4.16%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.788872	7.934449	-9.72%	0
2010	9.221686	8.788872	-4.69%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.761665	8.949445	2.14%	0
2010	8.351761	8.761665	4.91%	0
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.109619	12.102608	-7.68%	0
2010	11.931420	13.109619	9.87%	0
Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.447369	9.578426	-8.32%	0
2010*	10.000000	10.447369	4.47%	0
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.475725	-5.24%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.333111	-6.67%	0

62

Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.893575	13.224207	2.56%	0
2010	11.532428	12.893575	11.80%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.750278	9.944034	-7.50%	0
2010*	10.000000	10.750278	7.50%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.478846	10.214100	-2.53%	0
2010*	10.000000	10.478846	4.79%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.597846	10.109924	-4.60%	0
2010*	10.000000	10.597846	5.98%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.294100	10.314344	0.20%	0
2010*	10.000000	10.294100	2.94%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.531712	10.162873	-3.50%	0
2010*	10.000000	10.531712	5.32%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.663438	10.043550	-5.81%	0
2010*	10.000000	10.663438	6.63%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.416035	10.263472	-1.46%	0
2010*	10.000000	10.416035	4.16%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.268706	2.69%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.280122	8.649309	-23.32%	0
2010*	10.000000	11.280122	12.80%	0
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.669016	14.485852	5.98%	0
2010	13.202598	13.669016	3.53%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.807682	12.156072	-5.09%	0
2010	11.314847	12.807682	13.19%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.408586	10.373636	-0.34%	0
2010*	10.000000	10.408586	4.09%	0

63

Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.510350	10.282298	-2.17%	0
2010*	10.000000	10.510350	5.10%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.098282	12.304971	1.71%	0
2010	11.559565	12.098282	4.66%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.643266	12.486987	-1.24%	0
2010	11.543581	12.643266	9.53%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.841268	12.415451	-3.32%	0
2010	11.510378	12.841268	11.56%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.470934	12.588398	0.94%	0
2010	11.637304	12.470934	7.16%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.873477	9.755328	-1.20%	0
2010	9.993387	9.873477	-1.20%	18,020
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.160337	9.965518	-10.71%	0
2010*	10.000000	11.160337	11.60%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.631512	8.781499	-17.40%	0
2010*	10.000000	10.631512	6.32%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.781874	10.308402	-4.39%	0
2010*	10.000000	10.781874	7.82%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.278147	9.536360	-7.22%	0
2010*	10.000000	10.278147	2.78%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.240189	10.611265	-5.60%	0
2010*	10.000000	11.240189	12.40%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.793273	10.416462	-3.49%	0
2010*	10.000000	10.793273	7.93%	0

64

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.410043	10.218350	-1.84%	0
2010	8.401591	10.410043	23.91%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.544720	13.628621	-6.30%	0
2010	11.631293	14.544720	25.05%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.060927	14.988613	-6.68%	0
2010	12.968472	16.060927	23.85%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.393758	11.345799	-0.42%	0
2010	10.162931	11.393758	12.11%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.962611	-0.37%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.541933	-4.58%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.262946	11.202071	-8.65%	0
2010*	10.000000	12.262946	22.63%	0
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.607285	11.131226	4.94%	0
2010*	10.000000	10.607285	6.07%	0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.898960	11.674832	7.12%	0
2010*	10.000000	10.898960	8.99%	0
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.894412	11.566574	6.17%	0
2010*	10.000000	10.894412	8.94%	0
PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.598871	10.810666	2.00%	0
2010*	10.000000	10.598871	5.99%	0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.830586	-1.69%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.010745	0.11%	0

65

Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.210706	8.460655	-24.53%	0
2010*	10.000000	11.210706	12.11%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.830175	10.483240	-3.20%	0
2010*	10.000000	10.830175	8.30%	0
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.895699	11.060732	1.51%	0
2010*	10.000000	10.895699	8.96%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.127401	8.026035	-27.87%	0
2010*	10.000000	11.127401	11.27%	0
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.466041	-25.34%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.724641	-22.75%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.981110	8.085149	-9.98%	0
2010*	10.000000	8.981110	-10.19%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.359485	-6.41%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.378033	10.253833	-1.20%	0
2010*	10.000000	10.378033	3.78%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.893142	-1.07%	0
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.643228	-3.57%	0
ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.020588	8.743063	-20.67%	0
2010*	10.000000	11.020588	10.21%	0
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.604590	9.546589	-9.98%	0
2010*	10.000000	10.604590	6.05%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.280469	-17.20%	0

66

ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.608417	-3.92%	0
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.737960	-12.62%	0
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.869414	9.199275	-15.37%	0
2010*	10.000000	10.869414	8.69%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.463802	-15.36%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.931048	7.188106	-19.52%	0
2010*	10.000000	8.931048	-10.69%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.782960	10.808855	0.24%	0
2010*	10.000000	10.782960	7.83%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.078398	11.191596	1.02%	0
2010*	10.000000	11.078398	10.78%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.401958	4.02%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.288908	-17.11%	0
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.281820	-7.18%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.811344	5.441004	-38.25%	0
2010*	10.000000	8.811344	-11.89%	0
ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.817393	-11.83%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.339834	9.118404	9.34%	0
2010*	10.000000	8.339834	-16.60%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.543985	8.593845	0.58%	0
2010*	10.000000	8.543985	-14.56%	0

67

ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.680165	7.677775	-11.55%	0
2010*	10.000000	8.680165	-13.20%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.282375	-7.18%	0
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.524936	-4.75%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.541922	14.947793	41.79%	0
2010*	10.000000	10.541922	5.42%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.390608	11.119781	-2.38%	0
2010*	10.000000	11.390608	13.91%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.386631	5.679662	-23.11%	0
2010*	10.000000	7.386631	-26.13%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.823629	8.24%	0
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.019993	5.393982	-23.16%	0
2010	6.285678	7.019993	11.68%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	25.368923	20.939326	-17.46%	0
2010	20.270061	25.368923	25.15%	0
Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.397757	11.361235	9.27%	0
2010	9.506614	10.397757	9.37%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.500918	5.073916	-7.76%	0
2010	5.153870	5.500918	6.73%	0
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	17.189380	19.321008	12.40%	0
2010	14.834363	17.189380	15.88%	0
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.888281	9.579977	7.78%	0
2010	7.220869	8.888281	23.09%	0

68

Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.486935	7.002739	-17.49%	0
2010	7.840799	8.486935	8.24%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	23.929806	22.260520	-6.98%	0
2010	20.344094	23.929806	17.63%	0
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	28.397251	25.449729	-10.38%	0
2010	22.802431	28.397251	24.54%	0
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.046731	8.423831	-16.15%	0
2010	11.396763	10.046731	-11.85%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.392723	7.054640	-15.94%	0
2010	7.427709	8.392723	12.99%	0
Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.761647	19.237503	39.79%	0
2010	12.650723	13.761647	8.78%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.804467	12.209849	3.43%	0
2010	11.190349	11.804467	5.49%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	17.881156	15.560514	-12.98%	0
2010	14.985318	17.881156	19.32%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	3.668178	2.643008	-27.95%	0
2010	5.326082	3.668178	-31.13%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.746561	3.949491	-31.27%	0
2010	6.670820	5.746561	-13.86%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	4.572186	4.186103	-8.44%	0
2010	6.194293	4.572186	-26.19%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	2.836528	2.520171	-11.15%	0
2010	3.646530	2.836528	-22.21%	0

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Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	4.306457	3.930939	-8.72%	0
2010	6.022583	4.306457	-28.49%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.263868	4.730489	-10.13%	0
2010	6.415889	5.263868	-17.96%	0
Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.576357	7.424865	-29.80%	0
2010	9.250023	10.576357	14.34%	0
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.508848	15.698767	1.22%	0
2010	12.042777	15.508848	28.78%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	19.249818	17.575258	-8.70%	0
2010	14.164399	19.249818	35.90%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.160080	9.970562	-1.87%	0
2010	7.511567	10.160080	35.26%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.522242	15.668967	0.95%	0
2010	13.259645	15.522242	17.06%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.608482	9.382594	-2.35%	0
2010	8.106560	9.608482	18.53%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	33.129362	24.825150	-25.07%	0
2010	24.284651	33.129362	36.42%	0
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.206415	16.374944	1.04%	0
2010	13.136654	16.206415	23.37%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.155460	15.767352	4.04%	0
2010	12.257915	15.155460	23.64%	0
Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.845776	13.748262	-13.24%	0
2010	11.634709	15.845776	36.19%	0

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Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.732948	7.338659	-5.10%	0
2010	6.238110	7.732948	23.96%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.994359	11.721747	-2.27%	0
2010	9.709475	11.994359	23.53%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.251327	10.764342	-4.33%	0
2010	9.464940	11.251327	18.87%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.572498	16.266326	-1.85%	0
2010	12.651779	16.572498	30.99%	0
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.485702	12.371410	-8.26%	0
2010	11.362160	13.485702	18.69%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.476377	13.783056	2.28%	0
2010	10.877164	13.476377	23.90%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.290379	10.996416	-10.53%	0
2010	9.943753	12.290379	23.60%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.542428	6.188685	-5.41%	0
2010	6.934349	6.542428	-5.65%	0
Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.635633	12.232887	-10.29%	0
2010	12.318763	13.635633	10.69%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.897941	7.525218	-15.43%	0
2010	7.864728	8.897941	13.14%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.387510	14.390919	-12.18%	0
2010	13.361786	16.387510	22.64%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.704842	12.299437	14.90%	0
2010	10.137199	10.704842	5.60%	0

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Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.139483	10.600667	-4.84%	0
2010	11.944618	11.139483	-6.74%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.322812	3.23%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.300260	-17.00%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.893859	-11.06%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.699178	-23.01%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.614864	-3.85%	0

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Appendix C: Contract Types and Tax Information

Types of Contracts

The contracts described in this prospectus are classified according to the tax treatment to which they are subject under the Internal Revenue Code (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, a Simple IRA, or a Tax Sheltered Annuity.

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

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 nonnatural persons, such as trusts, corporations and partnerships are generally subject to current income tax on the income earned inside the contract, unless the nonnatural 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 advisor prior to purchasing the contract.  An annuity that has a Charitable Remainder Trust endorsement is not a Charitable Remainder Trust; the endorsement is merely to facilitate ownership of the contract by a Charitable Remainder Trust.

Investment-Only (Qualified Plans)

Contracts that are owned by Qualified Plans are not intended to confer tax benefits on the beneficiaries of the plan; they are used as investment vehicles for the plan.  The income tax consequences to the beneficiary of a Qualified Plan are controlled by the operation of the plan, not by operation of the assets in which the plan invests.

Beneficiaries of Qualified Plans should contact their employer and/or trustee of the plan to obtain and review the plan, trust, summary plan description, and other documents for the tax and other consequences of being a participant in a Qualified Plan.

Individual Retirement Annuities (IRAs)

IRAs are contracts that satisfy the provisions of Section 408(b) of the 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, Tax Sheltered Annuities and other IRAs can be received);

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

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

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

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

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

When the owner of an IRA attains the age of 70½, the 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

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required to be distributed over the amount that was actually distributed.

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 other 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.

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.

Tax Sheltered Annuities

Certain tax-exempt organizations (described in Section 501(c)(3) of the Code) and public school systems may establish a plan under which annuity contracts can be purchased for their employees.  These annuity contracts are often referred to as Tax Sheltered Annuities.

Purchase payments made to Tax Sheltered Annuities are excludable from the income of the employee, up to statutory maximum amounts.  These amounts should be set forth in the plan adopted by the employer.

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

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The owner's interest in the contract is nonforfeitable (except for failure to pay premiums) and cannot be transferred.

When the owner of a Tax Sheltered Annuity attains the age of 70½, the 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 Tax Sheltered Annuity, mandatory distribution requirements are imposed by the Code to ensure distribution of the entire contract value within the required statutory period.

Final 403(b) Regulations issued by the Internal Revenue Service impose certain restrictions on non-taxable transfers or exchanges of one 403(b) Tax Sheltered Annuity contract for another.  Nationwide will no longer issue or accept applications for new and/or in-service transfers to new or existing Nationwide individual 403(b) Tax Sheltered Annuity contracts used for salary reduction plans not subject to ERISA.  Nationwide will continue to accept applications and in-service transfers for individual 403(b) Tax Sheltered Annuity contracts used for 403(b) plans that are subject to ERISA and certain state Optional Retirement Plans and/or Programs that have purchased at least one individual annuity contract issued by Nationwide prior to September 25, 2007.

Commencing in 2009, Tax Sheltered Annuities must be issued pursuant to a written plan, and the plan must satisfy various administrative requirements.  You should check with your employer to ensure that these requirements will be satisfied in a timely manner.

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 purchasers of the contract should consult a financial consultant, tax advisor or legal counsel to discuss the taxation and use of the contracts.

IRAs, SEP IRAs and Simple IRAs

Distributions from IRAs, SEP IRAs and Simple IRAs are generally taxed as ordinary income when received.  If any of the amounts contributed to the Individual Retirement Annuity was nondeductible for federal income tax purposes, then a portion of each distribution is excludable from income.

If distributions of income from an IRA are made prior to the date that the owner attains the age of 59½ years, the income is subject to 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 two -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;

75

·   used for qualified higher education expenses; or

·   used for expenses attributable to the purchase of a home for a qualified first-time buyer.

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

Roth IRAs

Distributions of earnings from Roth IRAs are taxable or nontaxable depending upon whether they are "qualified distributions" or "non-qualified distributions."  A "qualified distribution" satisfies the five -year rule and meets one of the following requirements:

·   it is made on or after the date on which the contract owner attains age 59½;

·   it is made to a beneficiary (or the contract owner's estate) on or after the death of the contract owner;

·   it is attributable to the contract owner's disability; or

·   it is used for expenses attributable to the purchase of a home for a qualified first-time buyer.

The five -year rule generally is satisfied if the distribution is not made within the five -year period beginning with the first taxable year in which a contribution is made to any Roth IRA established for the owner.

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 four -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.

Tax Sheltered Annuities

Distributions from Tax Sheltered Annuities are generally taxed when received.  A portion of each distribution after the Annuitization Date is excludable from income based on a formula established pursuant to the Code.  The formula excludes from income the amount invested in the contract divided by the number of anticipated payments until the full investment in the contract is recovered.  Thereafter all distributions are fully taxable.

If a distribution of income is made from a Tax Sheltered Annuity prior to the date that the owner attains the age of 59½ years, the income is subject to both the regular income tax and an additional penalty tax of 10%.  The penalty tax can be avoided if the distribution is:

·   made to a beneficiary on or after the death of the owner;

·   attributable to the owner becoming disabled (as defined in the Code);

·   part of a series of substantially equal periodic payments made not less frequently than annually made for the life (or life expectancy) of the owner, or the joint lives (or joint life expectancies) of the owner and his or her designated beneficiary; or

·   made to the owner after separation from service with his or her employer after age 55.

A loan from a Tax Sheltered Annuity generally is not considered to be a distribution, and is therefore generally not taxable.  However, if the loan is not repaid in accordance with the repayment schedule, the entire balance of the loan would be treated as being in default, and the defaulted amount would be treated as being distributed to the participant as a taxable distribution.

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

Non-Qualified Contracts - Natural Persons as Contract Owners

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

Distributions before the annuitization date are taxable to the contract owner to the extent that the cash value of the contract exceeds the contract owner's investment in the contract at the time of the distribution.  In general, the investment in the contract is equal to the purchase payments made with after-tax dollars reduced by any nontaxable distribution .  Distributions, for this purpose, include full and partial surrenders, any portion of the contract that is assigned or pledged, amounts

76

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.

Commencing after December 31, 2010, the Code provides that if only a portion of a nonqualified annuity contract is annuitized for either (a) a period of 10 years or greater, or (b) for the life or lives of one or more persons, then the portion of the contract that has been annuitized would be treated as if it were a separate annuity contract.  This means that an annuitization date can be established for a portion of the annuity contract (rather than requiring the entire contract to be annuitized at once) and the above description of the taxation of annuity distributions after the annuitization date would apply to the portion of the contract that has been annuitized.  The investment in the contract is required to be allocated pro rata between the portion of the contract that is annuitized and the portion that is not.  All other benefits under the contract (e.g., death benefit) would also be reduced pro rata.  For example, if 1 / 3 of the cash value of the contract were to be annuitized, the death benefit would also be reduced by 1 / 3 .

In determining the taxable amount of a distribution that is made prior to the annuitization date , all annuity contracts issued after October 21, 1988 , by the same company to the same contract owner during the same calendar year will be treated as one annuity contract.

A special rule applies to distributions from contracts that have investments that were made prior to August 14, 1982.  For those contracts, distributions that are made prior to the annuitization date are treated first as the nontaxable 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 owner reaches 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 for most purposes of 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 in which 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.

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

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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.

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 June 2011 the Internal Revenue Service issued Rev. Proc. 2011-38, 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.  Rev. Proc. 2011-38 modified and superseded prior guidance that was contained in Rev. Proc. 2008-24.  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 180 days from the date of the direct transfer, there are no distributions or surrenders from either annuity contract involved in the exchange.  In addition, the 180-day period will be deemed to have been satisfied with respect to amounts received as an annuity for a period of 10 years or more, or as an annuity for the life of one or more persons.   The taxation of distributions (other than distributions described in the immediately preceding sentence) received within the 180-day period will be determined using general tax principles to determine the substance of those payments.  For example, they could be treated as taxable "boot" in an otherwise tax-free exchange, or as a distribution from the new contract. Rev. Proc. 2011-38 also removed numerous exceptions to the 180-day waiting period that Rev. Proc. 2008-11 provided for in its 12-month waiting period.  Please discuss any tax consequences concerning any contemplated or completed transactions with a professional tax advisor.  See also, Non-Qualified Contracts - Natural Persons as Contract Owners , above.

Additional Medicare Tax

The 2010 Health Care Act added Section 1411 to the Code, which imposes an additional tax of 3.8% on certain unearned income of individuals, trusts, and estates, for tax years commencing after December 31, 2012.  The additional tax will apply to the lesser of: (a) the taxpayer’s net investment income; and (b) the excess of the taxpayer’s modified adjusted

gross income over a threshold amount (the threshold amount is $250,000 in the case of a joint return or surviving spouse; $125,000 in the case of a married individual filing a separate return; and $200,000 in any other case).  "Net investment income" is equal to the sum of: (i) gross income from interest, dividends, annuities, royalties, and rents (other than income derived from any trade or business to which the tax does not apply); (ii) other gross income derived from any business to which the tax applies; and (iii) net gain (to the extent taken into account in computing taxable income) attributable to the disposition of property other than property held in a trade or business to which the tax does not apply; less (iv) deductions properly allocable to such income.  Although no official guidance has been provided, it appears that any amounts that are treatable as taxable distributions when they are paid from an annuity contract would be included in the computation of net investment income.

Withholding

Pre-death distributions from the contracts are subject to federal income tax.  Nationwide is required to withhold the tax from the distributions unless the contract owner requests otherwise.  If the distribution is from a Tax Sheltered Annuity, it will be subject to mandatory 20% withholding that cannot be waived, unless:

·   the distribution is made directly to another Tax Sheltered Annuity, qualified pension or profit-sharing plan described in Section 401(a), an eligible deferred compensation plan described in Section 457(b) which is maintained by an eligible employer described in Section 457(e)(1)(A) or individual retirement plans; or

·   the distribution satisfies the minimum distribution requirements imposed by the Code.

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.

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:

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(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 two 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 two 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.

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 "toll charge" is paid to the Internal Revenue Service.

The amount of the "toll charge" 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 advisor for more specific required distribution information.

Required Distributions – General Information

In general, a beneficiary is an individual or other entity that the contract owner designates to receive death proceeds upon the contract owner's death.  The distribution rules in the Code make a distinction between "beneficiary" and "designated beneficiary" when determining the life expectancy that may be used for payments that are made from IRAs, SEP IRAs, Simple IRAs, Roth IRAs and Tax Sheltered Annuities after the death of the annuitant, or that are made from non-qualified

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contracts after the death of the contract owner.  A designated beneficiary is a natural person who is designated by the contract owner as the beneficiary under the contract.  Non-natural beneficiaries (e.g. charities or certain trusts) are not designated beneficiaries for the purpose of required distributions and the life expectancy of such a beneficiary is zero .

Life expectancies and joint life expectancies will be determined in accordance with the relevant guidance provided by the Internal Revenue Service and the Treasury Department, including but not limited to Treasury Regulation 1.72-9 and Treasury Regulation 1.401(a)(9)-9.

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

Required Distributions for Non-Qualified Contracts

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 five years of the contract owner's death, provided however:

(a)   any interest payable to or for the benefit of a designated beneficiary may be distributed over the life of the designated beneficiary or over a period not longer than the life expectancy of the designated beneficiary.  Payments must begin within one year of the contract owner's death unless otherwise permitted by federal income tax regulations; and

(b)   if the designated beneficiary is the surviving spouse of the deceased contract owner, the spouse can choose to become the contract owner instead of receiving a death benefit.  Any distributions required under these distribution rules will be made upon that spouse's death.

In the event that the contract owner is not a natural person (e.g., a trust or corporation), for purposes of these distribution provisions:

(a)   the death of the annuitant will be treated as the death of a contract owner;

(b)   any change of annuitant will be treated as the death of a contract owner; and

(c)   in either case, the appropriate distribution will be made upon the death or change, as the case may be.

These distribution provisions do not apply to any contract exempt from Section 72(s) of the Code by reason of Section 72(s)(5) or any other law or rule.

Required Distributions for Tax Sheltered Annuities, IRAs, SEP IRAs, Simple IRAs and Roth IRAs

Distributions from a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA must begin no later than April 1 st of the calendar year following the calendar year in which the contract owner reaches age 70½.  Distributions may be paid in a lump sum or in substantially equal payments over:

(a)   the life of the contract owner or the joint lives of the contract owner and the contract owner's designated beneficiary; or

(b)   a period not longer than the period determined under the table in Treasury Regulation 1.401(a)(9)-9, which is the deemed joint life expectancy of the contract owner and a person 10 years younger than the contract owner.  If the designated beneficiary is the spouse of the contract owner, the period may not exceed the longer of the period determined under such table or the joint life expectancy of the contract owner and the contract owner's spouse, determined in accordance with Treasury Regulation 1.72-9, or such additional guidance as may be provided pursuant to Treasury Regulation 1.401(a)(9)-9.

For Tax Sheltered Annuities, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another Tax Sheltered Annuity of the contract owner.

For IRAs, SEP IRAs and Simple IRAs, required distributions do not have to be withdrawn from this contract if they are being withdrawn from another IRA, SEP IRA or Simple IRA of the contract owner.

If the Contract Owner's entire interest in a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA will be distributed in equal or substantially equal payments over a period described in (a) or (b) above, the payments must begin on or before the required beginning date.  The required beginning date is April 1 st 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.

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Due to recent changes in Treasury Regulations, the amount used to compute the minimum distribution requirement may exceed the contract value.

If the contract owner dies before the required beginning date (in the case of a Tax Sheltered Annuity, IRA, SEP IRA or Simple IRA) or before the entire contract value is distributed (in the case of 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 c ontract owner's spouse, the applicable distribution period is the surviving spouse's remaining life expectancy using the surviving spouse's birthday for each distribution calendar year after the calendar year of the contract owner's death.  For calendar years after the death of the contract owner's surviving spouse, the applicable distribution period is the spouse's remaining life expectancy using the spouse's age in the calendar year of the spouse's death, reduced by one for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse's death;

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

(c)   if there is no designated beneficiary, the entire balance of the contract must be distributed by December 31 st of the fifth year following the contract owner's death.

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

(a)   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 one for each calendar year that elapsed since the calendar year immediately following the calendar year of the spouse's death;

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

(c)   if there is no designated beneficiary, the applicable distribution period is the contract owner's remaining life expectancy using the contract owner's birthday in the calendar year of the contract owner's death, reduced by one for each year thereafter.

If distribution requirements are not met, a penalty tax of 50% is levied on the difference between the amount that should have been distributed for that year and the amount that actually was distributed for that year.

For IRAs, SEP IRAs and Simple IRAs, all or a portion of each distribution will be included in the recipient's gross income and taxed at ordinary income tax rates.  The portion of a distribution that is taxable is based on the ratio between the amount by which non-deductible purchase payments exceed prior non-taxable distributions and total account balances at the time of the distribution.  The owner of an IRA, SEP IRA or Simple IRA must annually report the amount of non-deductible purchase payments, the amount of any distribution, the amount by which non-deductible purchase payments for all years exceed non-taxable distributions for all years, and the total balance of all IRAs, SEP IRAs or Simple IRAs.

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 advisor 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, Tax Sheltered Annuities and Qualified Plans;

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

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

·   increasing the estate tax credit; and

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

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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 advisor 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 contracts.

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STATEMENT OF ADDITIONAL INFORMATION

May 1, 2012

Individual Deferred Variable Annuity Contracts

Issued by Nationwide Life Insurance Company

through its Nationwide Variable Account-4

This Statement of Additional Information is not a prospectus. It contains additional information than set forth in the prospectus and should be read in conjunction with the prospectus dated May 1, 2012 .  The prospectus may be obtained from Nationwide Life Insurance Company by writing P.O. Box 182021, Columbus, Ohio 43218-2021 , or calling 1-866-233-3223, TDD 1-800-238-3035.   Capitalized terms in this Statement of Additional Information correspond to terms defined in the prospectus.

Table of Contents of the Statement of Additional Information

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	77

General Information and History

Nationwide Variable Account-4 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 of each contract.

The custodian of the assets of the Variable Account is Nationwide.  Nationwide will maintain a record of all purchases and redemption 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 0.75% (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-4 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.  Agents are 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.  For contracts issued in Michigan, all references to NISC will mean Nationwide Investment Svcs. Corporation.  During the fiscal years ended December 31, 201 1 , 20 10 and 200 9 , no underwriting commissions were paid by Nationwide to NISC.

Advertising

Money Market Yields

Nationwide may advertise the “yield” and “effective yield” for the money market Sub-Account.  Yield and effective yield are annualized, which means that it is assumed that the underlying mutual fund generates the same level of net income throughout a year.

Yield is a measure of the net dividend and interest income earned over a specific seven-day period (which period will be stated in the advertisement) expressed as a percentage of the offering price of the underlying mutual fund’s units.  The effective yield is calculated similarly, but reflects assumed compounding, calculated under rules prescribed by the SEC.  Thus, effective yield will be slightly higher than yield, due to the compounding.

Historical Performance of the Sub-Accounts

Nationwide will advertise historical performance of the Sub-Accounts in accordance with SEC prescribed calculations.  Performance information is annualized.  However, if a Sub-Account has been available in the Variable Account for less than one year, the performance information for that Sub-Account is not annualized.

Performance information is based on historical earnings and is not intended to predict or project future results.

Standardized performance will reflect the maximum Variable Account charges possible under the contract.  Non-standardized performance, which will be accompanied by standardized performance, will reflect other expense structures contemplated under the contract.  The expense assumptions will be stated in the advertisement.

Additional Materials

Nationwide may provide information on various topics to contract owners and prospective contract owners in advertising, sales literature or other materials.

Performance Comparisons

Each Sub-Account may, from time to time, include in advertisements the ranking of its performance figures compared with performance figures of other annuity contracts’ Sub-Accounts with the same investment objectives which are created by Lipper Analytical Services, Morningstar, Inc. or other recognized ranking services.

Annuity Payments

See “Frequency and Amount of Annuity Payments” located in the prospectus.

Condensed Financial Information

The following charts represent the accumulation unit values for all classes of accumulation units for all asset fees for contracts issued as of December 31, 201 1 .  The term "Period" is defined as a complete calendar year unless otherwise noted.  Those periods with an (*) reflect accumulation unit information for a partial year only.  The value of an accumulation unit is determined on the basis of changes in the per share value of the underlying mutual funds and variable account charges which may vary from contract to contract (for more information on the calculation of accumulation unit values, see "Determining Variable Account Value – Valuing an Accumulation Unit" in the prospectus).

2

No Additional Contract Options Elected - .45%
Variable account charges of the daily net assets of the variable account - .45%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.135590	-8.64%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.699913	7.00%	60,248
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.425522	10.701471	2.65%	3,125
2010*	10.000000	10.425522	4.26%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.481925	10.540718	0.56%	3,462
2010*	10.000000	10.481925	4.82%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.680654	10.245656	-4.07%	40,685
2010*	10.000000	10.680654	6.81%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.911231	10.357570	-13.04%	2,060
2010*	10.000000	11.911231	19.11%	130
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.148636	-8.51%	916
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.367344	10.393519	0.25%	1,475
2010*	10.000000	10.367344	3.67%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.226480	11.173616	-0.47%	3,489
2010*	10.000000	11.226480	12.26%	505
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.478770	10.270881	-1.98%	35,349
2010*	10.000000	10.478770	4.79%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.465349	9.971761	-4.72%	751
2010*	10.000000	10.465349	4.65%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.249553	10.070644	-1.75%	7,509
2010*	10.000000	10.249553	2.50%	0

3

Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.200080	9.869373	-3.24%	970
2010*	10.000000	10.200080	2.00%	0
Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.812005	9.467318	-3.51%	0
2010	9.916793	9.812005	-1.06%	279
2009	9.877331	9.916793	0.40%	0
2008*	10.000000	9.877331	-1.23%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.516499	8.782158	-7.72%	1,179
2010	8.302887	9.516499	14.62%	459
2009	5.982812	8.302887	38.78%	1,680
2008	10.560125	5.982812	-43.35%	138
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.651027	9.581056	-0.73%	611
2010	8.735016	9.651027	10.49%	126,754
2009	7.158065	8.735016	22.03%	0
2008	10.282751	7.158065	-30.39%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.559867	9.116216	-4.64%	664
2010	8.442286	9.559867	13.24%	0
2009	6.245042	8.442286	35.18%	0
2008	10.841403	6.245042	-42.40%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.854028	8.716731	-11.54%	1,719
2010*	10.000000	9.854028	-1.46%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.632439	8.887887	-7.73%	5,515
2010*	10.000000	9.632439	-3.68%	2,987
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.926285	8.119539	-9.04%	4,739
2010	9.295316	8.926285	-3.97%	3,253
2009	9.727880	9.295316	-4.45%	6,456
2008*	10.000000	9.727880	-2.72%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.300144	8.542210	2.92%	33,756
2010	7.852272	8.300144	5.70%	432
2009	8.155551	7.852272	-3.72%	0
2008	10.079339	8.155551	-19.09%	0

4

Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.154786	8.515589	-6.98%	49,702
2010	8.269333	9.154786	10.71%	71,116
2009	6.525624	8.269333	26.72%	1,782
2008	11.060826	6.525624	-41.00%	0
Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.499842	9.699509	-7.62%	64,043
2010*	10.000000	10.499842	5.00%	8,812
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.523400	-4.77%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.380066	-6.20%	39,161
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.657936	11.013982	3.34%	204,871
2010*	10.000000	10.657936	6.58%	39,911
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.804287	10.069743	-6.80%	0
2010*	10.000000	10.804287	8.04%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.531506	10.343184	-1.79%	7,667
2010*	10.000000	10.531506	5.32%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.651096	10.237698	-3.88%	0
2010*	10.000000	10.651096	6.51%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.345820	10.444641	0.96%	5,144
2010*	10.000000	10.345820	3.46%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.584630	10.291293	-2.77%	5,218
2010*	10.000000	10.584630	5.85%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.717008	10.170501	-5.10%	6,019
2010*	10.000000	10.717008	7.17%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.468380	10.393170	-0.72%	5,338
2010*	10.000000	10.468380	4.68%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.320309	3.20%	2,393

5

Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.336741	8.758676	-22.74%	704
2010*	10.000000	11.336741	13.37%	704
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.212063	10.904211	6.78%	29,227
2010*	10.000000	10.212063	2.12%	11,832
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.677477	10.211049	-4.37%	0
2010*	10.000000	10.677477	6.77%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.460882	10.504706	0.42%	1,667
2010*	10.000000	10.460882	4.61%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.563166	10.412258	-1.43%	0
2010*	10.000000	10.563166	5.63%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.287481	10.542450	2.48%	453
2010*	10.000000	10.287481	2.87%	96,885
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.498571	10.447340	-0.49%	8,984
2010*	10.000000	10.498571	4.99%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.608145	10.334094	-2.58%	0
2010*	10.000000	10.608145	6.08%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.400214	10.577673	1.71%	4,409
2010*	10.000000	10.400214	4.00%	40,087
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.952557	9.907868	-0.45%	954,687
2010	9.997529	9.952557	-0.45%	326,461
2009*	10.000000	9.997529	-0.02%	70,341
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.216372	10.091503	-10.03%	22,259
2010*	10.000000	11.216372	12.16%	38,174
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.684909	8.892590	-16.77%	22,989
2010*	10.000000	10.684909	6.85%	49,075

6

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.836040	10.438669	-3.67%	2,352
2010*	10.000000	10.836040	8.36%	258
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.329804	9.656934	-6.51%	11,588
2010*	10.000000	10.329804	3.30%	274
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.296658	10.745392	-4.88%	13,336
2010*	10.000000	11.296658	12.97%	968
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.847515	10.548143	-2.76%	545
2010*	10.000000	10.847515	8.48%	263
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.228316	11.105054	-1.10%	259
2010*	10.000000	11.228316	12.28%	259
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.781514	10.179012	-5.59%	869
2010*	10.000000	10.781514	7.82%	270
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.083296	10.421704	-5.97%	2,649
2010*	10.000000	11.083296	10.83%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.456652	10.491520	0.33%	0
2010*	10.000000	10.456652	4.57%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.012695	0.13%	47,717
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.589921	-4.10%	6,990
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.324497	11.343567	-7.96%	56,771
2010*	10.000000	12.324497	23.24%	74,007
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.660602	11.271873	5.73%	104,432
2010*	10.000000	10.660602	6.61%	83,085
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.954424	11.823072	7.93%	192,426
2010*	10.000000	10.954424	9.54%	72,432

7

PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.949177	11.712721	6.97%	73,071
2010*	10.000000	10.949177	9.49%	98,992
PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.652152	10.947268	2.77%	281,483
2010*	10.000000	10.652152	6.52%	9,017
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.880622	-1.19%	23,855
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.061067	0.61%	83,104
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.266994	8.567626	-23.96%	35,679
2010*	10.000000	11.266994	12.67%	14,682
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.885291	10.616363	-2.47%	115,939
2010*	10.000000	10.885291	8.85%	3,437
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.950428	11.200457	2.28%	37,212
2010*	10.000000	10.950428	9.50%	8,270
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.183281	8.127525	-27.32%	14,966
2010*	10.000000	11.183281	11.83%	3,006
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.503715	-24.96%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.763575	-22.36%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.026274	8.187328	-9.29%	89,542
2010*	10.000000	9.026274	-9.74%	89,545
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.406575	-5.93%	1,149
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.430190	10.383436	-0.45%	5,552
2010*	10.000000	10.430190	4.30%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.942895	-0.57%	142

8

ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.691738	-3.08%	1,658
ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.075932	8.853601	-20.06%	9,662
2010*	10.000000	11.075932	10.76%	20,782
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.657891	9.667328	-9.29%	0
2010*	10.000000	10.657891	6.58%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.322198	-16.78%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.656751	-3.43%	147
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.781955	-12.18%	2,826
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.924006	9.315613	-14.72%	5,362
2010*	10.000000	10.924006	9.24%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.506416	-14.94%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.975941	7.279030	-18.91%	3,950
2010*	10.000000	8.975941	-10.24%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.837127	10.945413	1.00%	10,519
2010*	10.000000	10.837127	8.37%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.134078	11.333043	1.79%	2,191
2010*	10.000000	11.134078	11.34%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.454251	4.54%	1,540
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.330619	-16.69%	5,885
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.328532	-6.71%	1,112

9

ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.855732	5.509924	-37.78%	0
2010*	10.000000	8.855732	-11.44%	80,894
ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.861801	-11.38%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.381824	9.233637	10.16%	0
2010*	10.000000	8.381824	-16.18%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.586990	8.702409	1.34%	0
2010*	10.000000	8.586990	-14.13%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.723848	7.774862	-10.88%	0
2010*	10.000000	8.723848	-12.76%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.329063	-6.71%	1,727
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.572855	-4.27%	149
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.594914	15.136665	42.87%	3,359
2010*	10.000000	10.594914	5.95%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.447817	11.260294	-1.64%	11,463
2010*	10.000000	11.447817	14.48%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.423866	5.751562	-22.53%	0
2010*	10.000000	7.423866	-25.76%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.878036	8.78%	0
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.288169	4.094124	-22.58%	869
2010	4.699353	5.288169	12.53%	0
2009	4.888426	4.699353	-3.87%	0
2008	8.346002	4.888426	-41.43%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.798400	9.812145	-16.83%	13,900
2010	9.356136	11.798400	26.10%	21,331
2009	6.045586	9.356136	54.76%	3,103
2008	11.122248	6.045586	-45.64%	4,535

10

Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.195093	13.425994	10.09%	2,174
2010	11.065948	12.195093	10.20%	905
2009	9.393284	11.065948	17.81%	0
2008	10.695240	9.393284	-12.17%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.229228	6.718578	-7.06%	300
2010	6.722168	7.229228	7.54%	613
2009	6.052691	6.722168	11.06%	1,092
2008	11.927349	6.052691	-49.25%	1,092
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.397878	12.908304	13.25%	2,353
2010	9.762294	11.397878	16.75%	0
2009	8.232553	9.762294	18.58%	0
2008	10.794636	8.232553	-23.73%	3,912
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.206925	6.740647	8.60%	3,473
2010	5.004613	6.206925	24.02%	0
2009	3.673001	5.004613	36.25%	0
2008	9.637152	3.673001	-61.89%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.389654	6.974994	-16.86%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.967273	9.342266	-6.27%	3,404
2010	8.409979	9.967273	18.52%	1,344
2009	6.099644	8.409979	37.88%	1,362
2008	11.354022	6.099644	-46.28%	4,307
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.229984	8.334672	-9.70%	1,473
2010	7.355710	9.229984	25.48%	3,811
2009	4.549316	7.355710	61.69%	1,790
2008	10.778689	4.549316	-57.79%	4,659
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.608925	4.738589	-15.52%	3,836
2010	6.314707	5.608925	-11.18%	115
2009	4.676156	6.314707	35.04%	0
2008	10.406073	4.676156	-55.06%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.262106	5.303631	-15.31%	0
2010	5.500358	6.262106	13.85%	0
2009	4.616540	5.500358	19.14%	0
2008	8.925527	4.616540	-48.28%	0

11

Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.831966	16.665198	40.85%	182,376
2010	10.794876	11.831966	9.61%	165
2009	15.839878	10.794876	-31.85%	4,311
2008	10.986701	15.839878	44.17%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.044472	10.468099	4.22%	1,156
2010	9.450237	10.044472	6.29%	0
2009	7.615876	9.450237	24.09%	1,193
2008	10.181192	7.615876	-25.20%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.231702	9.848113	-12.32%	0
2010	9.341905	11.231702	20.23%	3,084
2009	5.658062	9.341905	65.11%	606
2008	10.310462	5.658062	-45.12%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.170609	4.479756	-27.40%	0
2010	8.891853	6.170609	-30.60%	41,594
2009	16.137652	8.891853	-44.90%	0
2008	10.078710	16.137652	60.12%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.576098	4.553900	-30.75%	449
2010	7.576205	6.576098	-13.20%	0
2009	6.373286	7.576205	18.87%	0
2008	9.173328	6.373286	-30.52%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.491107	5.987972	-7.75%	0
2010	8.727625	6.491107	-25.63%	0
2009	13.545774	8.727625	-35.57%	0
2008	10.122760	13.545774	33.82%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.477248	5.798434	-10.48%	0
2010	8.264075	6.477248	-21.62%	0
2009	13.853817	8.264075	-40.35%	0
2008	9.401514	13.853817	47.36%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.071224	5.583765	-8.03%	8,386
2010	8.426522	6.071224	-27.95%	70,399
2009	12.606931	8.426522	-33.16%	0
2008	10.156122	12.606931	24.13%	1,999
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.333038	7.545360	-9.45%	705
2010	10.080150	8.333038	-17.33%	2,354
2009	13.976125	10.080150	-27.88%	0
2008	10.082309	13.976125	38.62%	0

12

Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.600814	6.083884	-29.26%	141
2010	7.465672	8.600814	15.20%	1,550
2009	6.063831	7.465672	23.12%	0
2008	9.088049	6.063831	-33.28%	0
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.938881	9.116904	1.99%	1,460
2010	6.888930	8.938881	29.76%	2,654
2009	5.061320	6.888930	36.11%	0
2008	9.987244	5.061320	-49.32%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.992811	8.272791	-8.01%	12,983
2010	6.567334	8.992811	36.93%	2,815
2009	4.328896	6.567334	51.71%	0
2008	9.628009	4.328896	-55.04%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.808932	8.710104	-1.12%	2,324
2010	6.463680	8.808932	36.28%	190,984
2009	2.981049	6.463680	116.83%	0
2008	10.928265	2.981049	-72.72%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.968480	11.155992	1.71%	20,977
2010	9.299166	10.968480	17.95%	6,143
2009	6.145508	9.299166	51.32%	9,738
2008	10.627688	6.145508	-42.17%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.143023	7.027970	-1.61%	2,785
2010	5.981140	7.143023	19.43%	122
2009	4.433848	5.981140	34.90%	0
2008	9.783317	4.433848	-54.68%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.534206	10.973672	-24.50%	67,956
2010	10.573774	14.534206	37.46%	61,705
2009	7.117050	10.573774	48.57%	2,214
2008	11.637003	7.117050	-38.84%	4,397
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.480155	8.633223	1.81%	15,986
2010	6.822183	8.480155	24.30%	5,384
2009	5.470751	6.822183	24.70%	1,709
2008	9.416573	5.470751	-41.90%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.629121	11.142009	4.83%	4,514
2010	8.532267	10.629121	24.58%	0
2009	5.942734	8.532267	43.57%	659
2008	8.902892	5.942734	-33.25%	0

13

Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.435200	7.374148	-12.58%	14,590
2010	6.146942	8.435200	37.23%	71
2009	4.631768	6.146942	32.71%	0
2008	9.566797	4.631768	-51.58%	0
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.625850	5.379490	-4.38%	4,046
2010	4.504208	5.625850	24.90%	0
2009	3.091053	4.504208	45.72%	15,881
2008	9.698458	3.091053	-68.13%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.086878	10.916964	-1.53%	15,056
2010	8.907335	11.086878	24.47%	1,928
2009	6.076983	8.907335	46.57%	0
2008	10.144578	6.076983	-40.10%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.546048	8.238132	-3.60%	33,297
2010	7.135096	8.546048	19.77%	15,702
2009	4.738559	7.135096	50.58%	29,714
2008	9.270493	4.738559	-48.89%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.370743	13.223150	-1.10%	29,656
2010	10.130726	13.370743	31.98%	30,792
2009	6.489421	10.130726	56.11%	649
2008	10.208819	6.489421	-36.43%	133
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.677877	8.945512	-7.57%	30,400
2010	8.092576	9.677877	19.59%	13,388
2009	5.236074	8.092576	54.55%	14,954
2008	9.330706	5.236074	-43.88%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.536860	10.858277	3.05%	16,310
2010	8.440607	10.536860	24.84%	14,176
2009	6.328825	8.440607	33.37%	734
2008	9.679292	6.328825	-34.61%	142
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.510454	8.573673	-9.85%	4,434
2010	7.636718	9.510454	24.54%	8,035
2009	4.727487	7.636718	61.54%	11,111
2008	8.404677	4.727487	-43.75%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.661659	7.302240	-4.69%	837
2010	8.059438	7.661659	-4.94%	0
2009	9.619432	8.059438	-16.22%	0
2008	9.153640	9.619432	5.09%	0

14

Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.399735	8.496653	-9.61%	1,607
2010	8.428048	9.399735	11.53%	0
2009	5.440856	8.428048	54.90%	2,057
2008	10.011993	5.440856	-45.66%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.565427	6.446789	-14.79%	0
2010	6.636616	7.565427	14.00%	0
2009	5.180611	6.636616	28.10%	0
2008	9.520232	5.180611	-45.58%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.262423	8.195604	-11.52%	412
2010	7.495419	9.262423	23.57%	0
2009	6.414067	7.495419	16.86%	0
2008	8.620542	6.414067	-25.60%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.081388	10.513134	15.77%	8,441
2010	8.535106	9.081388	6.40%	753
2009	7.534254	8.535106	13.28%	947
2008	10.746568	7.534254	-29.89%	125
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.637925	9.241238	-4.12%	9,500
2010	10.256644	9.637925	-6.03%	0
2009	9.664514	10.256644	6.13%	0
2008	11.061930	9.664514	-12.63%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.374710	3.75%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.342078	-16.58%	1,490
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.938628	-10.61%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.737987	-22.62%	362
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.663198	-3.37%	0

15

Additional Contract Options Elected Total - .65%
Variable account charges of the daily net assets of the variable account - .65%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.123400	-8.77%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.685658	6.86%	13,186
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.411640	10.665802	2.44%	0
2010*	10.000000	10.411640	4.12%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.467959	10.505565	0.36%	0
2010*	10.000000	10.467959	4.68%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.666431	10.211487	-4.27%	2,426
2010*	10.000000	10.666431	6.66%	909
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.895370	10.323037	-13.22%	278
2010*	10.000000	11.895370	18.95%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.136439	-8.64%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.353538	10.358870	0.05%	1,808
2010*	10.000000	10.353538	3.54%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.211532	11.136363	-0.67%	286
2010*	10.000000	11.211532	12.12%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.464819	10.236644	-2.18%	2,284
2010*	10.000000	10.464819	4.65%	1,974
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.451405	9.938507	-4.91%	0
2010*	10.000000	10.451405	4.51%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.235902	10.037066	-1.94%	0
2010*	10.000000	10.235902	2.36%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.186486	9.836465	-3.44%	0
2010*	10.000000	10.186486	1.86%	0

16

Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.771585	9.409424	-3.71%	0
2010	9.895825	9.771585	-1.26%	0
2009	9.876296	9.895825	0.20%	0
2008*	10.000000	9.876296	-1.24%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.451328	8.704511	-7.90%	0
2010	8.262589	9.451328	14.39%	0
2009	5.965760	8.262589	38.50%	254
2008	10.551279	5.965760	-43.46%	0
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.584926	9.496354	-0.92%	0
2010	8.692635	9.584926	10.26%	0
2009	7.137671	8.692635	21.79%	1,078
2008	10.274141	7.137671	-30.53%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.489576	9.031044	-4.83%	0
2010	8.397069	9.489576	13.01%	0
2009	6.224095	8.397069	34.91%	260
2008	10.826846	6.224095	-42.51%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.840900	8.687671	-11.72%	0
2010*	10.000000	9.840900	-1.59%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.619611	8.858263	-7.91%	0
2010*	10.000000	9.619611	-3.80%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.889540	8.069913	-9.22%	0
2010	9.275679	8.889540	-4.16%	0
2009	9.726864	9.275679	-4.64%	0
2008*	10.000000	9.726864	-2.73%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.243308	8.466721	2.71%	2,758
2010	7.814181	8.243308	5.49%	0
2009	8.132339	7.814181	-3.91%	0
2008	10.070904	8.132339	-19.25%	0
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.092071	8.440297	-7.17%	0
2010	8.229190	9.092071	10.49%	0
2009	6.507020	8.229190	26.47%	0
2008	11.051559	6.507020	-41.12%	0

17

Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.485860	9.667159	-7.81%	613
2010*	10.000000	10.485860	4.86%	1,459
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.510693	-4.89%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.367556	-6.32%	0
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.643749	10.977290	3.13%	2,658
2010*	10.000000	10.643749	6.44%	263
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.789895	10.036160	-6.99%	0
2010*	10.000000	10.789895	7.90%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.517474	10.308693	-1.99%	0
2010*	10.000000	10.517474	5.17%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.636906	10.203552	-4.07%	0
2010*	10.000000	10.636906	6.37%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.332048	10.409840	0.75%	3,184
2010*	10.000000	10.332048	3.32%	2,722
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.570531	10.256987	-2.97%	0
2010*	10.000000	10.570531	5.71%	490
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.702737	10.136582	-5.29%	4,108
2010*	10.000000	10.702737	7.03%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.454420	10.358504	-0.92%	0
2010*	10.000000	10.454420	4.54%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.306564	3.07%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.321659	8.729463	-22.90%	0
2010*	10.000000	11.321659	13.22%	0

18

Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.198458	10.867880	6.56%	1,739
2010*	10.000000	10.198458	1.98%	1,739
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.663262	10.177000	-4.56%	0
2010*	10.000000	10.663262	6.63%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.446963	10.469700	0.22%	0
2010*	10.000000	10.446963	4.47%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.549091	10.377528	-1.63%	0
2010*	10.000000	10.549091	5.49%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.273780	10.507308	2.27%	0
2010*	10.000000	10.273780	2.74%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.484588	10.412500	-0.69%	0
2010*	10.000000	10.484588	4.85%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.594010	10.299622	-2.78%	0
2010*	10.000000	10.594010	5.94%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.386360	10.542412	1.50%	0
2010*	10.000000	10.386360	3.86%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.931458	9.867097	-0.65%	105,699
2010	9.996427	9.931458	-0.65%	49,519
2009*	10.000000	9.996427	-0.04%	28,196
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.201438	10.057839	-10.21%	0
2010*	10.000000	11.201438	12.01%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.670680	8.862912	-16.94%	0
2010*	10.000000	10.670680	6.71%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.821604	10.403867	-3.86%	0
2010*	10.000000	10.821604	8.22%	0

19

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.316045	9.624716	-6.70%	440
2010*	10.000000	10.316045	3.16%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.281626	10.709572	-5.07%	0
2010*	10.000000	11.281626	12.82%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.833067	10.512970	-2.95%	0
2010*	10.000000	10.833067	8.33%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.213355	11.068036	-1.30%	0
2010*	10.000000	11.213355	12.13%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.767143	10.145054	-5.78%	0
2010*	10.000000	10.767143	7.67%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.068538	10.386941	-6.16%	842
2010*	10.000000	11.068538	10.69%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.442721	10.456532	0.13%	0
2010*	10.000000	10.442721	4.43%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.999359	-0.01%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.577135	-4.23%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.308102	11.305762	-8.14%	893
2010*	10.000000	12.308102	23.08%	1,068
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.646396	11.234291	5.52%	11,471
2010*	10.000000	10.646396	6.46%	195
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.939648	11.783468	7.71%	12,515
2010*	10.000000	10.939648	9.40%	2,047
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.934585	11.673672	6.76%	2,459
2010*	10.000000	10.934585	9.35%	2,046

20

PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.637956	10.910775	2.56%	2,424
2010*	10.000000	10.637956	6.38%	453
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.867296	-1.33%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.047667	0.48%	28,239
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.251992	8.539057	-24.11%	0
2010*	10.000000	11.251992	12.52%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.870606	10.580797	-2.67%	16,599
2010*	10.000000	10.870606	8.71%	0
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.935834	11.163112	2.08%	901
2010*	10.000000	10.935834	9.36%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.168402	8.100415	-27.47%	0
2010*	10.000000	11.168402	11.68%	475
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.493674	-25.06%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.753198	-22.47%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.014245	8.160031	-9.48%	42,476
2010*	10.000000	9.014245	-9.86%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.394025	-6.06%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.416294	10.348813	-0.65%	0
2010*	10.000000	10.416294	4.16%	1,932
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.929636	-0.70%	0
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.678806	-3.21%	0

21

ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.061196	8.824083	-20.22%	0
2010*	10.000000	11.061196	10.61%	1,353
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.643691	9.635070	-9.48%	0
2010*	10.000000	10.643691	6.44%	322
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.311083	-16.89%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.643869	-3.56%	0
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.770238	-12.30%	0
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.909461	9.284523	-14.89%	172
2010*	10.000000	10.909461	9.09%	1,823
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.495066	-15.05%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.963982	7.254734	-19.07%	209
2010*	10.000000	8.963982	-10.36%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.822706	10.908931	0.80%	1,078
2010*	10.000000	10.822706	8.23%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.119261	11.295276	1.58%	6,511
2010*	10.000000	11.119261	11.19%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.440309	4.40%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.319507	-16.80%	36,752
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.316086	-6.84%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.843906	5.491514	-37.91%	0
2010*	10.000000	8.843906	-11.56%	0

22

ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.849963	-11.50%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.370641	9.202867	9.94%	0
2010*	10.000000	8.370641	-16.29%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.575531	8.673417	1.14%	0
2010*	10.000000	8.575531	-14.24%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.712204	7.748913	-11.06%	0
2010*	10.000000	8.712204	-12.88%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.316623	-6.83%	0
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.560082	-4.40%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.580799	15.086204	42.58%	0
2010*	10.000000	10.580799	5.81%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.432587	11.222764	-1.84%	0
2010*	10.000000	11.432587	14.33%	163
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.413943	5.732352	-22.68%	0
2010*	10.000000	7.413943	-25.86%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.863534	8.64%	0
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.251875	4.057855	-22.74%	113
2010	4.676484	5.251875	12.30%	201
2009	4.874451	4.676484	-4.06%	0
2008	8.339002	4.874451	-41.55%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.717554	9.725357	-17.00%	0
2010	9.310702	11.717554	25.85%	585
2009	6.028348	9.310702	54.45%	272
2008	11.112931	6.028348	-45.75%	5,790

23

Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.111571	13.307316	9.87%	35
2010	11.012279	12.111571	9.98%	0
2009	9.366540	11.012279	17.57%	0
2008	10.686287	9.366540	-12.35%	3,630
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.179671	6.659138	-7.25%	0
2010	6.689516	7.179671	7.33%	145
2009	6.035440	6.689516	10.84%	0
2008	11.917371	6.035440	-49.36%	0
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.319850	12.794245	13.02%	0
2010	9.714960	11.319850	16.52%	550
2009	8.209121	9.714960	18.34%	3,022
2008	10.785600	8.209121	-23.89%	0
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.164378	6.681022	8.38%	0
2010	4.980285	6.164378	23.78%	854
2009	3.662506	4.980285	35.98%	0
2008	9.629079	3.662506	-61.96%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.332150	6.913266	-17.03%	0
2010	7.655241	8.332150	8.84%	0
2009	4.483806	7.655241	70.73%	4,105
2008	9.046375	4.483806	-50.44%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.899010	9.259661	-6.46%	38
2010	8.369168	9.899010	18.28%	201
2009	6.082257	8.369168	37.60%	0
2008	11.344510	6.082257	-46.39%	2,856
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.166726	8.260939	-9.88%	0
2010	7.319984	9.166726	25.23%	352
2009	4.536334	7.319984	61.36%	347
2008	10.769659	4.536334	-57.88%	0
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.570471	4.696649	-15.69%	351
2010	6.284029	5.570471	-11.36%	142
2009	4.662802	6.284029	34.77%	0
2008	10.397348	4.662802	-55.15%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.219138	5.256674	-15.48%	0
2010	5.473603	6.219138	13.62%	0
2009	4.603347	5.473603	18.90%	0
2008	8.918042	4.603347	-48.38%	0

24

Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.750889	16.517840	40.57%	8,973
2010	10.742484	11.750889	9.39%	0
2009	15.794735	10.742484	-31.99%	0
2008	10.977442	15.794735	43.88%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.975702	10.375586	4.01%	971
2010	9.404407	9.975702	6.07%	405
2009	7.594187	9.404407	23.84%	3,107
2008	10.172669	7.594187	-25.35%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.154758	9.761024	-12.49%	0
2010	9.296561	11.154758	19.99%	0
2009	5.641928	9.296561	64.78%	4,902
2008	10.301827	5.641928	-45.23%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.128322	4.440132	-27.55%	0
2010	8.848737	6.128322	-30.74%	10,090
2009	16.091791	8.848737	-45.01%	1,614
2008	10.070284	16.091791	59.79%	300
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.531017	4.513606	-30.89%	0
2010	7.539434	6.531017	-13.38%	0
2009	6.355116	7.539434	18.64%	4,059
2008	9.165632	6.355116	-30.66%	2,335
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.446662	5.935063	-7.94%	0
2010	8.685332	6.446662	-25.78%	0
2009	13.507301	8.685332	-35.70%	0
2008	10.114303	13.507301	33.55%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.432888	5.747187	-10.66%	0
2010	8.224020	6.432888	-21.78%	0
2009	13.814475	8.224020	-40.47%	0
2008	9.393643	13.814475	47.06%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.029645	5.534415	-8.21%	0
2010	8.385691	6.029645	-28.10%	1,747
2009	12.571116	8.385691	-33.29%	0
2008	10.147627	12.571116	23.88%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.275974	7.478666	-9.63%	1,380
2010	10.031300	8.275974	-17.50%	0
2009	13.936410	10.031300	-28.02%	0
2008	10.073878	13.936410	38.34%	0

25

Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.541909	6.030063	-29.41%	0
2010	7.429441	8.541909	14.97%	0
2009	6.046553	7.429441	22.87%	0
2008	9.080429	6.046553	-33.41%	5,907
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.877633	9.036279	1.79%	0
2010	6.855467	8.877633	29.50%	0
2009	5.046874	6.855467	35.84%	0
2008	9.978880	5.046874	-49.42%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.931162	8.199584	-8.19%	0
2010	6.535411	8.931162	36.66%	0
2009	4.316532	6.535411	51.40%	0
2008	9.619935	4.316532	-55.13%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.748521	8.633027	-1.32%	0
2010	6.432246	8.748521	36.01%	0
2009	2.972509	6.432246	116.39%	0
2008	10.919109	2.972509	-72.78%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.893350	11.057381	1.51%	1,657
2010	9.254034	10.893350	17.71%	184
2009	6.127982	9.254034	51.01%	1,776
2008	10.618790	6.127982	-42.29%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.094057	6.965785	-1.81%	0
2010	5.952082	7.094057	19.19%	0
2009	4.421189	5.952082	34.63%	0
2008	9.775126	4.421189	-54.77%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.434583	10.876575	-24.65%	477
2010	10.522410	14.434583	37.18%	270
2009	7.096755	10.522410	48.27%	2,937
2008	11.627247	7.096755	-38.96%	2,629
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.421995	8.556835	1.60%	2,003
2010	6.789017	8.421995	24.05%	0
2009	5.455124	6.789017	24.45%	0
2008	9.408682	5.455124	-42.02%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.556352	11.043549	4.62%	0
2010	8.490886	10.556352	24.33%	0
2009	5.925803	8.490886	43.29%	0
2008	8.895430	5.925803	-33.38%	2,842

26

Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.377353	7.308881	-12.75%	0
2010	6.117056	8.377353	36.95%	0
2009	4.618538	6.117056	32.45%	0
2008	9.558771	4.618538	-51.68%	3,788
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.587246	5.331854	-4.57%	0
2010	4.482286	5.587246	24.65%	0
2009	3.082213	4.482286	45.42%	2,959
2008	9.690335	3.082213	-68.19%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.010916	10.820430	-1.73%	430
2010	8.864101	11.010916	24.22%	0
2009	6.059658	8.864101	46.28%	0
2008	10.136078	6.059658	-40.22%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.487483	8.165271	-3.80%	1,475
2010	7.100443	8.487483	19.53%	0
2009	4.725031	7.100443	50.27%	0
2008	9.262724	4.725031	-48.99%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.279185	13.106268	-1.30%	700
2010	10.081562	13.279185	31.72%	263
2009	6.470921	10.081562	55.80%	0
2008	10.200271	6.470921	-36.56%	0
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.611541	8.866386	-7.75%	377
2010	8.053266	9.611541	19.35%	0
2009	5.221133	8.053266	54.24%	1,794
2008	9.322890	5.221133	-44.00%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.464687	10.762283	2.84%	0
2010	8.399649	10.464687	24.58%	355
2009	6.310789	8.399649	33.10%	0
2008	9.671185	6.310789	-34.75%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.445261	8.497821	-10.03%	0
2010	7.599604	9.445261	24.29%	0
2009	4.713982	7.599604	61.21%	215
2008	8.397623	4.713982	-43.87%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.609185	7.237696	-4.88%	0
2010	8.020361	7.609185	-5.13%	0
2009	9.592060	8.020361	-16.39%	0
2008	9.145979	9.592060	4.88%	0

27

Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.335320	8.421499	-9.79%	1,073
2010	8.387127	9.335320	11.31%	0
2009	5.425342	8.387127	54.59%	3,519
2008	10.003608	5.425342	-45.77%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.513589	6.389760	-14.96%	0
2010	6.604394	7.513589	13.77%	0
2009	5.165835	6.604394	27.85%	222
2008	9.512248	5.165835	-45.69%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.198966	8.123121	-11.70%	55
2010	7.459026	9.198966	23.33%	0
2009	6.395792	7.459026	16.62%	0
2008	8.613312	6.395792	-25.75%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.019188	10.420210	15.53%	9,556
2010	8.493706	9.019188	6.19%	0
2009	7.512796	8.493706	13.06%	0
2008	10.737573	7.512796	-30.03%	0
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.571907	9.159536	-4.31%	735
2010	10.206906	9.571907	-6.22%	0
2009	9.637013	10.206906	5.91%	0
2008	11.052664	9.637013	-12.81%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.360882	3.61%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.330936	-16.69%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.926709	-10.73%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.727650	-22.72%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.650329	-3.50%	0

28

Additional Contract Options Elected Total - .80%
Variable account charges of the daily net assets of the variable account - .80%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.114246	-8.86%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.674968	6.75%	0
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.401210	10.639055	2.29%	0
2010*	10.000000	10.401210	4.01%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.457496	10.479249	0.21%	0
2010*	10.000000	10.457496	4.57%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.655763	10.185908	-4.41%	0
2010*	10.000000	10.655763	6.56%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.883475	10.297174	-13.35%	0
2010*	10.000000	11.883475	18.83%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.127277	-8.73%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.343164	10.332890	-0.10%	0
2010*	10.000000	10.343164	3.43%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.200308	11.108446	-0.82%	0
2010*	10.000000	11.200308	12.00%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.454340	10.210984	-2.33%	0
2010*	10.000000	10.454340	4.54%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.440945	9.913600	-5.05%	0
2010*	10.000000	10.440945	4.41%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.225655	10.011915	-2.09%	0
2010*	10.000000	10.225655	2.26%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.176297	9.811825	-3.58%	0
2010*	10.000000	10.176297	1.76%	0

29

Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.741346	9.366169	-3.85%	0
2010	9.880113	9.741346	-1.40%	0
2009	9.875519	9.880113	0.05%	0
2008*	10.000000	9.875519	-1.24%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.402621	8.646598	-8.04%	0
2010	8.232427	9.402621	14.21%	0
2009	5.952971	8.232427	38.29%	111
2008	10.544636	5.952971	-43.55%	113
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.535566	9.433233	-1.07%	0
2010	8.660943	9.535566	10.10%	0
2009	7.122397	8.660943	21.60%	35
2008	10.267677	7.122397	-30.63%	34
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.437111	8.967587	-4.98%	0
2010	8.363250	9.437111	12.84%	0
2009	6.208399	8.363250	34.71%	55
2008	10.815915	6.208399	-42.60%	57
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.831048	8.665894	-11.85%	0
2010*	10.000000	9.831048	-1.69%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.609974	8.836049	-8.05%	0
2010*	10.000000	9.609974	-3.90%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.862013	8.032794	-9.36%	0
2010	9.260945	8.862013	-4.31%	0
2009	9.726098	9.260945	-4.78%	111
2008*	10.000000	9.726098	-2.74%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.200843	8.410423	2.56%	0
2010	7.785684	8.200843	5.33%	0
2009	8.114940	7.785684	-4.06%	216
2008	10.064564	8.114940	-19.37%	200
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.045261	8.384190	-7.31%	0
2010	8.199184	9.045261	10.32%	0
2009	6.493087	8.199184	26.28%	199
2008	11.044608	6.493087	-41.21%	114

30

Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.475370	9.642914	-7.95%	0
2010*	10.000000	10.475370	4.75%	0
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.501166	-4.99%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.358163	-6.42%	0
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.633092	10.949795	2.98%	0
2010*	10.000000	10.633092	6.33%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.779097	10.010994	-7.13%	0
2010*	10.000000	10.779097	7.79%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.506944	10.282854	-2.13%	0
2010*	10.000000	10.506944	5.07%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.626269	10.177998	-4.22%	0
2010*	10.000000	10.626269	6.26%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.321701	10.383759	0.60%	0
2010*	10.000000	10.321701	3.22%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.559946	10.231278	-3.11%	0
2010*	10.000000	10.559946	5.60%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.692033	10.111182	-5.43%	0
2010*	10.000000	10.692033	6.92%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.443963	10.332555	-1.07%	0
2010*	10.000000	10.443963	4.44%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.296247	2.96%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.310336	8.707571	-23.01%	0
2010*	10.000000	11.310336	13.10%	0

31

Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.188259	10.840664	6.40%	0
2010*	10.000000	10.188259	1.88%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.652584	10.151491	-4.70%	0
2010*	10.000000	10.652584	6.53%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.436505	10.443455	0.07%	0
2010*	10.000000	10.436505	4.37%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.538533	10.351521	-1.77%	0
2010*	10.000000	10.538533	5.39%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.263496	10.480997	2.12%	0
2010*	10.000000	10.263496	2.63%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.474091	10.386417	-0.84%	0
2010*	10.000000	10.474091	4.74%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.583409	10.273826	-2.93%	0
2010*	10.000000	10.583409	5.83%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.375963	10.515997	1.35%	0
2010*	10.000000	10.375963	3.76%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.915660	9.836551	-0.80%	0
2010	9.995600	9.915660	-0.80%	0
2009*	10.000000	9.995600	-0.04%	461
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.190237	10.032624	-10.34%	0
2010*	10.000000	11.190237	11.90%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.659998	8.840667	-17.07%	0
2010*	10.000000	10.659998	6.60%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.810780	10.377798	-4.01%	0
2010*	10.000000	10.810780	8.11%	0

32

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.305714	9.600587	-6.84%	0
2010*	10.000000	10.305714	3.06%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.270329	10.682721	-5.21%	0
2010*	10.000000	11.270329	12.70%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.822223	10.486612	-3.10%	0
2010*	10.000000	10.822223	8.22%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.202131	11.040277	-1.44%	0
2010*	10.000000	11.202131	12.02%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.756362	10.119619	-5.92%	0
2010*	10.000000	10.756362	7.56%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.057461	10.360918	-6.30%	0
2010*	10.000000	11.057461	10.57%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.432269	10.430330	-0.02%	0
2010*	10.000000	10.432269	4.32%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.989330	-0.11%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.567542	-4.32%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.295787	11.277442	-8.28%	0
2010*	10.000000	12.295787	22.96%	0
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.635737	11.206149	5.36%	0
2010*	10.000000	10.635737	6.36%	0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.928561	11.753803	7.55%	0
2010*	10.000000	10.928561	9.29%	0
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.923638	11.644422	6.60%	0
2010*	10.000000	10.923638	9.24%	0

33

PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.627302	10.883434	2.41%	0
2010*	10.000000	10.627302	6.27%	0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.857290	-1.43%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.037599	0.38%	0
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.240739	8.517641	-24.23%	0
2010*	10.000000	11.240739	12.41%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.859588	10.554154	-2.81%	0
2010*	10.000000	10.859588	8.60%	0
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.924896	11.135144	1.92%	0
2010*	10.000000	10.924896	9.25%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.157224	8.080098	-27.58%	0
2010*	10.000000	11.157224	11.57%	0
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.486145	-25.14%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.745420	-22.55%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.005212	8.139580	-9.61%	0
2010*	10.000000	9.005212	-9.95%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.384605	-6.15%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.405866	10.322876	-0.80%	0
2010*	10.000000	10.405866	4.06%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.919698	-0.80%	0
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.669115	-3.31%	0

34

ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.050127	8.801951	-20.35%	0
2010*	10.000000	11.050127	10.50%	0
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.633030	9.610892	-9.61%	0
2010*	10.000000	10.633030	6.33%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.302735	-16.97%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.634206	-3.66%	0
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.761436	-12.39%	0
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.898547	9.261242	-15.02%	0
2010*	10.000000	10.898547	8.99%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.486544	-15.13%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.955009	7.236541	-19.19%	0
2010*	10.000000	8.955009	-10.45%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.811870	10.881598	0.64%	0
2010*	10.000000	10.811870	8.12%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.108115	11.266949	1.43%	0
2010*	10.000000	11.108115	11.08%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.429868	4.30%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.311169	-16.89%	0
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.306754	-6.93%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.835026	5.477716	-38.00%	0
2010*	10.000000	8.835026	-11.65%	0

35

ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.841085	-11.59%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.362242	9.179803	9.78%	0
2010*	10.000000	8.362242	-16.38%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.566934	8.651678	0.99%	0
2010*	10.000000	8.566934	-14.33%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.703475	7.729489	-11.19%	0
2010*	10.000000	8.703475	-12.97%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.307293	-6.93%	0
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.550500	-4.50%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.570204	15.048399	42.37%	0
2010*	10.000000	10.570204	5.70%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.421136	11.194637	-1.98%	0
2010*	10.000000	11.421136	14.21%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.406503	5.717965	-22.80%	0
2010*	10.000000	7.406503	-25.93%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.852668	8.53%	0
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.224752	4.030814	-22.85%	0
2010	4.659361	5.224752	12.13%	0
2009	4.863968	4.659361	-4.21%	0
2008	8.333742	4.863968	-41.64%	31
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.657148	9.660631	-17.13%	0
2010	9.276689	11.657148	25.66%	0
2009	6.015415	9.276689	54.22%	20
2008	11.105932	6.015415	-45.84%	0

36

Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.049194	13.218850	9.71%	0
2010	10.972118	12.049194	9.82%	0
2009	9.346488	10.972118	17.39%	1
2008	10.679563	9.346488	-12.48%	21
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.142682	6.614857	-7.39%	0
2010	6.665105	7.142682	7.17%	0
2009	6.022518	6.665105	10.67%	7,818
2008	11.909891	6.022518	-49.43%	8,018
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.261571	12.709213	12.85%	0
2010	9.679548	11.261571	16.34%	0
2009	8.191557	9.679548	18.16%	13
2008	10.778823	8.191557	-24.00%	20
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.132599	6.636547	8.22%	0
2010	4.962091	6.132599	23.59%	0
2009	3.654642	4.962091	35.78%	0
2008	9.623014	3.654642	-62.02%	4
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.289223	6.867277	-17.15%	0
2010	7.627300	8.289223	8.68%	0
2009	4.474192	7.627300	70.47%	15
2008	9.040676	4.474192	-50.51%	5
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.847983	9.198051	-6.60%	0
2010	8.338606	9.847983	18.10%	0
2009	6.069217	8.338606	37.39%	8
2008	11.337376	6.069217	-46.47%	0
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.119463	8.205954	-10.02%	0
2010	7.293250	9.119463	25.04%	0
2009	4.526601	7.293250	61.12%	15
2008	10.762873	4.526601	-57.94%	3
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.541729	4.665362	-15.81%	0
2010	6.261066	5.541729	-11.49%	0
2009	4.652800	6.261066	34.57%	10
2008	10.390800	4.652800	-55.22%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.187050	5.221673	-15.60%	0
2010	5.453583	6.187050	13.45%	0
2009	4.593460	5.453583	18.72%	16
2008	8.912429	4.593460	-48.46%	0

37

Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.690335	16.407976	40.36%	0
2010	10.703290	11.690335	9.22%	0
2009	15.760903	10.703290	-32.09%	11,334
2008	10.970491	15.760903	43.67%	8,016
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.924340	10.306623	3.85%	0
2010	9.370121	9.924340	5.91%	0
2009	7.577936	9.370121	23.65%	8
2008	10.166271	7.577936	-25.46%	22
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.097275	9.696087	-12.63%	0
2010	9.262625	11.097275	19.81%	0
2009	5.629829	9.262625	64.53%	26
2008	10.295339	5.629829	-45.32%	2
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.096721	4.410570	-27.66%	0
2010	8.816459	6.096721	-30.85%	0
2009	16.057390	8.816459	-45.09%	0
2008	10.063942	16.057390	59.55%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.497372	4.483578	-30.99%	0
2010	7.511929	6.497372	-13.51%	0
2009	6.341504	7.511929	18.46%	0
2008	9.159861	6.341504	-30.77%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.413441	5.895585	-8.07%	0
2010	8.653671	6.413441	-25.89%	0
2009	13.478426	8.653671	-35.80%	0
2008	10.107932	13.478426	33.35%	4
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.399752	5.708961	-10.79%	0
2010	8.194056	6.399752	-21.90%	0
2009	13.784983	8.194056	-40.56%	0
2008	9.387740	13.784983	46.84%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.998584	5.497613	-8.35%	0
2010	8.355132	5.998584	-28.20%	0
2009	12.544273	8.355132	-33.39%	0
2008	10.141257	12.544273	23.70%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.233347	7.428949	-9.77%	0
2010	9.994739	8.233347	-17.62%	0
2009	13.906633	9.994739	-28.13%	0
2008	10.067543	13.906633	38.13%	0

38

Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.497939	5.989948	-29.51%	0
2010	7.402351	8.497939	14.80%	0
2009	6.033623	7.402351	22.69%	3
2008	9.074710	6.033623	-33.51%	3
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.831874	8.976148	1.63%	0
2010	6.830433	8.831874	29.30%	0
2009	5.036052	6.830433	35.63%	13
2008	9.972592	5.036052	-49.50%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.885098	8.144985	-8.33%	0
2010	6.511522	8.885098	36.45%	0
2009	4.307262	6.511522	51.18%	0
2008	9.613869	4.307262	-55.20%	4
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.703400	8.575557	-1.47%	0
2010	6.408721	8.703400	35.81%	0
2009	2.966118	6.408721	116.06%	8
2008	10.912229	2.966118	-72.82%	10
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.837248	10.983871	1.35%	0
2010	9.220278	10.837248	17.54%	0
2009	6.114849	9.220278	50.79%	131
2008	10.612108	6.114849	-42.38%	1
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.057477	6.919421	-1.96%	0
2010	5.930337	7.057477	19.01%	0
2009	4.411701	5.930337	34.42%	34,911
2008	9.768966	4.411701	-54.84%	40,663
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.360140	10.804153	-24.76%	0
2010	10.483948	14.360140	36.97%	0
2009	7.081528	10.483948	48.05%	15
2008	11.619915	7.081528	-39.06%	14
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.378535	8.499850	1.45%	0
2010	6.764183	8.378535	23.87%	0
2009	5.443404	6.764183	24.26%	88
2008	9.402754	5.443404	-42.11%	57
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.501961	10.970101	4.46%	0
2010	8.459898	10.501961	24.14%	0
2009	5.913096	8.459898	43.07%	9
2008	8.889818	5.913096	-33.48%	21

39

Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.334159	7.260213	-12.89%	0
2010	6.094704	8.334159	36.74%	0
2009	4.608626	6.094704	32.25%	65
2008	9.552745	4.608626	-51.76%	4
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.558400	5.296322	-4.71%	0
2010	4.465880	5.558400	24.46%	0
2009	3.075581	4.465880	45.20%	0
2008	9.684220	3.075581	-68.24%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.954203	10.748480	-1.88%	0
2010	8.831762	10.954203	24.03%	0
2009	6.046679	8.831762	46.06%	36
2008	10.129700	6.046679	-40.31%	72
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.443732	8.110932	-3.94%	0
2010	7.074505	8.443732	19.35%	0
2009	4.714893	7.074505	50.05%	18
2008	9.256888	4.714893	-49.07%	69
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.210780	13.019111	-1.45%	0
2010	10.044775	13.210780	31.52%	0
2009	6.457062	10.044775	55.56%	53
2008	10.193850	6.457062	-36.66%	49
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.562013	8.807387	-7.89%	0
2010	8.023875	9.562013	19.17%	0
2009	5.209933	8.023875	54.01%	18
2008	9.317019	5.209933	-44.08%	42
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.410791	10.690720	2.69%	0
2010	8.369006	10.410791	24.40%	0
2009	6.297277	8.369006	32.90%	21
2008	9.665093	6.297277	-34.85%	81
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.396537	8.441228	-10.17%	0
2010	7.571827	9.396537	24.10%	0
2009	4.703866	7.571827	60.97%	29
2008	8.392322	4.703866	-43.95%	82
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.570006	7.189599	-5.03%	0
2010	7.991120	7.570006	-5.27%	0
2009	9.571541	7.991120	-16.51%	0
2008	9.140223	9.571541	4.72%	7

40

Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.287225	8.365489	-9.92%	0
2010	8.356513	9.287225	11.14%	0
2009	5.413712	8.356513	54.36%	11
2008	9.997318	5.413712	-45.85%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.474886	6.347264	-15.09%	0
2010	6.580295	7.474886	13.59%	0
2009	5.154770	6.580295	27.65%	0
2008	9.506262	5.154770	-45.78%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.151554	8.069060	-11.83%	0
2010	7.431793	9.151554	23.14%	0
2009	6.382088	7.431793	16.45%	0
2008	8.607884	6.382088	-25.86%	29
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.972759	10.350957	15.36%	0
2010	8.462736	8.972759	6.03%	0
2009	7.496721	8.462736	12.89%	0
2008	10.730821	7.496721	-30.14%	27
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.522607	9.098621	-4.45%	0
2010	10.169693	9.522607	-6.36%	0
2009	9.616410	10.169693	5.75%	0
2008	11.045710	9.616410	-12.94%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.350498	3.50%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.322577	-16.77%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.917758	-10.82%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.719890	-22.80%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.640655	-3.59%	0

41

Additional Contract Options Elected Total - .85%
Variable account charges of the daily net assets of the variable account - .85%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.111195	-8.89%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.671402	6.71%	2,046
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.397740	10.630169	2.24%	2,066
2010*	10.000000	10.397740	3.98%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.453992	10.470473	0.16%	0
2010*	10.000000	10.453992	4.54%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.652203	10.177379	-4.46%	0
2010*	10.000000	10.652203	6.52%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.879510	10.288566	-13.39%	0
2010*	10.000000	11.879510	18.80%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.124225	-8.76%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.339700	10.324243	-0.15%	0
2010*	10.000000	10.339700	3.40%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.196565	11.099152	-0.87%	4,614
2010*	10.000000	11.196565	11.97%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.450851	10.202422	-2.38%	0
2010*	10.000000	10.450851	4.51%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.437460	9.905315	-5.10%	0
2010*	10.000000	10.437460	4.37%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.222235	10.003545	-2.14%	0
2010*	10.000000	10.222235	2.22%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.172894	9.803609	-3.63%	0
2010*	10.000000	10.172894	1.73%	0

42

Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.731267	9.351781	-3.90%	0
2010	9.874867	9.731267	-1.45%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.386453	8.627394	-8.09%	0
2010	8.222409	9.386453	14.16%	0
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.519147	9.412243	-1.12%	0
2010	8.650383	9.519147	10.04%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.419661	8.946503	-5.02%	0
2010	8.351992	9.419661	12.78%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.827758	8.658630	-11.90%	0
2010*	10.000000	9.827758	-1.72%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.606777	8.828669	-8.10%	2,287
2010*	10.000000	9.606777	-3.93%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.852874	8.020474	-9.40%	3,471
2010	9.256044	8.852874	-4.36%	1,103
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.186743	8.391739	2.50%	1,739
2010	7.776203	8.186743	5.28%	1,728
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.029677	8.365536	-7.36%	1,294
2010	8.189188	9.029677	10.26%	1,413
Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.471877	9.634852	-7.99%	0
2010*	10.000000	10.471877	4.72%	0
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.497990	-5.02%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.355034	-6.45%	0
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.629548	10.940638	2.93%	0
2010*	10.000000	10.629548	6.30%	0

43

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.775495	10.002615	-7.17%	0
2010*	10.000000	10.775495	7.75%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.503438	10.274258	-2.18%	0
2010*	10.000000	10.503438	5.03%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.622714	10.169466	-4.27%	2,011
2010*	10.000000	10.622714	6.23%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.318260	10.375071	0.55%	0
2010*	10.000000	10.318260	3.18%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.556418	10.222712	-3.16%	9,016
2010*	10.000000	10.556418	5.56%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.688457	10.102715	-5.48%	0
2010*	10.000000	10.688457	6.88%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.440468	10.323907	-1.12%	0
2010*	10.000000	10.440468	4.40%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.292799	2.93%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.306567	8.700286	-23.05%	0
2010*	10.000000	11.306567	13.07%	0
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.184846	10.831589	6.35%	0
2010*	10.000000	10.184846	1.85%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.649020	10.142976	-4.75%	0
2010*	10.000000	10.649020	6.49%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.433010	10.434726	0.02%	0
2010*	10.000000	10.433010	4.33%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.535012	10.342861	-1.82%	0
2010*	10.000000	10.535012	5.35%	0

44

Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.260057	10.472210	2.07%	0
2010*	10.000000	10.260057	2.60%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.470597	10.377732	-0.89%	0
2010*	10.000000	10.470597	4.71%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.579873	10.265221	-2.97%	0
2010*	10.000000	10.579873	5.80%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.372504	10.507204	1.30%	0
2010*	10.000000	10.372504	3.73%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.910376	9.826376	-0.85%	4,309
2010	9.995324	9.910376	-0.85%	1,061
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.186496	10.024219	-10.39%	0
2010*	10.000000	11.186496	11.86%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.656443	8.833277	-17.11%	0
2010*	10.000000	10.656443	6.56%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.807172	10.369124	-4.05%	0
2010*	10.000000	10.807172	8.07%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.302269	9.592551	-6.89%	97
2010*	10.000000	10.302269	3.02%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.266561	10.673775	-5.26%	0
2010*	10.000000	11.266561	12.67%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.818601	10.477836	-3.15%	0
2010*	10.000000	10.818601	8.19%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.198394	11.031049	-1.49%	0
2010*	10.000000	11.198394	11.98%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.752771	10.111143	-5.97%	0
2010*	10.000000	10.752771	7.53%	0

45

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.053757	10.352230	-6.35%	0
2010*	10.000000	11.053757	10.54%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.428783	10.421608	-0.07%	0
2010*	10.000000	10.428783	4.29%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.986001	-0.14%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.564338	-4.36%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.291681	11.268001	-8.33%	0
2010*	10.000000	12.291681	22.92%	0
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.632181	11.196768	5.31%	224
2010*	10.000000	10.632181	6.32%	0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.924865	11.743930	7.50%	324
2010*	10.000000	10.924865	9.25%	0
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.919984	11.634681	6.54%	227
2010*	10.000000	10.919984	9.20%	0
PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.623753	10.874331	2.36%	354
2010*	10.000000	10.623753	6.24%	0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.853948	-1.46%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.034250	0.34%	0
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.237000	8.510519	-24.26%	0
2010*	10.000000	11.237000	12.37%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.855914	10.545280	-2.86%	0
2010*	10.000000	10.855914	8.56%	0

46

ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.921251	11.125849	1.87%	2,590
2010*	10.000000	10.921251	9.21%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.153498	8.073336	-27.62%	0
2010*	10.000000	11.153498	11.53%	0
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.483629	-25.16%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.742824	-22.57%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.002199	8.132766	-9.66%	0
2010*	10.000000	9.002199	-9.98%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.381475	-6.19%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.402388	10.314236	-0.85%	0
2010*	10.000000	10.402388	4.02%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.916375	-0.84%	745
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.665883	-3.34%	4,958
ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.046432	8.794576	-20.39%	0
2010*	10.000000	11.046432	10.46%	0
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.629482	9.602849	-9.66%	0
2010*	10.000000	10.629482	6.29%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.299959	-17.00%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.630987	-3.69%	778
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.758513	-12.41%	0

47

ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.894909	9.253486	-15.07%	49
2010*	10.000000	10.894909	8.95%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.483701	-15.16%	605
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.952009	7.230479	-19.23%	62
2010*	10.000000	8.952009	-10.48%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.808260	10.872503	0.59%	125
2010*	10.000000	10.808260	8.08%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.104407	11.257527	1.38%	0
2010*	10.000000	11.104407	11.04%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.426379	4.26%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.308388	-16.92%	0
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.303632	-6.96%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.832070	5.473125	-38.03%	0
2010*	10.000000	8.832070	-11.68%	0
ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.838132	-11.62%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.359443	9.172115	9.72%	0
2010*	10.000000	8.359443	-16.41%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.564068	8.644443	0.94%	0
2010*	10.000000	8.564068	-14.36%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.700565	7.723020	-11.24%	0
2010*	10.000000	8.700565	-12.99%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.304182	-6.96%	5,810

48

ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.547309	-4.53%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.566671	15.035811	42.29%	0
2010*	10.000000	10.566671	5.67%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.417325	11.185271	-2.03%	0
2010*	10.000000	11.417325	14.17%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.404020	5.713176	-22.84%	0
2010*	10.000000	7.404020	-25.96%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.849033	8.49%	2,162
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.215738	4.021837	-22.89%	0
2010	4.653662	5.215738	12.08%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.637071	9.639139	-17.17%	0
2010	9.265371	11.637071	25.60%	0
Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.028455	13.189470	9.65%	0
2010	10.958754	12.028455	9.76%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.130385	6.600148	-7.44%	0
2010	6.656984	7.130385	7.11%	0
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.242195	12.680958	12.80%	825
2010	9.667755	11.242195	16.29%	0
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.122045	6.621807	8.16%	0
2010	4.956041	6.122045	23.53%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.274934	6.851984	-17.20%	0
2010	7.618000	8.274934	8.62%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.831014	9.177575	-6.65%	0
2010	8.328444	9.831014	18.04%	0

49

Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.103776	8.187716	-10.06%	0
2010	7.284371	9.103776	24.98%	0
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.532181	4.654968	-15.86%	0
2010	6.253421	5.532181	-11.53%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.176372	5.210031	-15.65%	0
2010	5.446925	6.176372	13.39%	0
Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.670209	16.371502	40.28%	5,832
2010	10.690246	11.670209	9.17%	710
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.907245	10.283681	3.80%	675
2010	9.358698	9.907245	5.86%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.078163	9.674519	-12.67%	502
2010	9.251335	11.078163	19.75%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.086224	4.400775	-27.69%	0
2010	8.805732	6.086224	-30.88%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.486159	4.473579	-31.03%	0
2010	7.502760	6.486159	-13.55%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.402394	5.882477	-8.12%	0
2010	8.643134	6.402394	-25.93%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.388736	5.696272	-10.84%	0
2010	8.184079	6.388736	-21.94%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.988249	5.485391	-8.40%	0
2010	8.344960	5.988249	-28.24%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.219169	7.412425	-9.82%	0
2010	9.982582	8.219169	-17.66%	0
Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.483307	5.976620	-29.55%	0
2010	7.393309	8.483307	14.74%	0

50

Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.816684	8.956202	1.58%	0
2010	6.822110	8.816684	29.24%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.869776	8.126847	-8.38%	0
2010	6.503570	8.869776	36.38%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.688404	8.556489	-1.52%	2,329
2010	6.400904	8.688404	35.74%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.818587	10.959443	1.30%	1,443
2010	9.209038	10.818587	17.48%	1,215
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.045342	6.904045	-2.01%	173
2010	5.923114	7.045342	18.95%	183
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.335398	10.780108	-24.80%	0
2010	10.471155	14.335398	36.90%	0
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.364111	8.480955	1.40%	123
2010	6.755926	8.364111	23.80%	133
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.483902	10.945731	4.41%	0
2010	8.449603	10.483902	24.08%	0
Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.319791	7.244056	-12.93%	0
2010	6.087250	8.319791	36.68%	0
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.548858	5.284573	-4.76%	0
2010	4.460451	5.548858	24.40%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.935351	10.724579	-1.93%	2,077
2010	8.820999	10.935351	23.97%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.429157	8.092858	-3.99%	437
2010	7.065851	8.429157	19.29%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.188043	12.990162	-1.50%	1,803
2010	10.032537	13.188043	31.45%	0

51

Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.545531	8.787782	-7.94%	53
2010	8.014074	9.545531	19.11%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.392850	10.666924	2.64%	0
2010	8.358789	10.392850	24.33%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.380348	8.422449	-10.21%	0
2010	7.562585	9.380348	24.04%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.556964	7.173605	-5.07%	0
2010	7.981385	7.556964	-5.32%	0
Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.271245	8.346889	-9.97%	0
2010	8.346339	9.271245	11.08%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.462011	6.333148	-15.13%	0
2010	6.572279	7.462011	13.54%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.135785	8.051116	-11.87%	0
2010	7.422728	9.135785	23.08%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.957337	10.327984	15.30%	2,505
2010	8.452441	8.957337	5.97%	0
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.506215	9.078387	-4.50%	0
2010	10.157309	9.506215	-6.41%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.347046	3.47%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.319787	-16.80%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.914770	-10.85%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.717303	-22.83%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.637435	-3.63%	0

52

Additional Contract Options Elected Total - 1.00%
Variable account charges of the daily net assets of the variable account - 1.00%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.102038	-8.98%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.660702	6.61%	0
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.387306	10.603466	2.08%	0
2010*	10.000000	10.387306	3.87%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.443507	10.444180	0.01%	0
2010*	10.000000	10.443507	4.44%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.641518	10.151830	-4.60%	0
2010*	10.000000	10.641518	6.42%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.867608	10.262736	-13.52%	0
2010*	10.000000	11.867608	18.68%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.115067	-8.85%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.329332	10.298311	-0.30%	0
2010*	10.000000	10.329332	3.29%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.185338	11.071290	-1.02%	0
2010*	10.000000	11.185338	11.85%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.440367	10.176807	-2.52%	0
2010*	10.000000	10.440367	4.40%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.426983	9.880427	-5.24%	0
2010*	10.000000	10.426983	4.27%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.211985	9.978432	-2.29%	0
2010*	10.000000	10.211985	2.12%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.162684	9.778986	-3.78%	0
2010*	10.000000	10.162684	1.63%	0

53

Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.701092	9.308712	-4.04%	0
2010	9.859154	9.701092	-1.60%	0
2009	9.874483	9.859154	-0.16%	0
2008*	10.000000	9.874483	-1.26%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.337986	8.569879	-8.23%	0
2010	8.192330	9.337986	13.98%	0
2009	5.935941	8.192330	38.01%	0
2008	10.535771	5.935941	-43.66%	0
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.470015	9.349532	-1.27%	0
2010	8.618769	9.470015	9.88%	0
2009	7.102042	8.618769	21.36%	0
2008	10.259051	7.102042	-30.77%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.367458	8.883486	-5.17%	0
2010	8.318271	9.367458	12.61%	0
2009	6.187488	8.318271	34.44%	0
2008	10.801330	6.187488	-42.72%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.817898	8.636882	-12.03%	0
2010*	10.000000	9.817898	-1.82%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.597132	8.806483	-8.24%	0
2010*	10.000000	9.597132	-4.03%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.825414	7.983529	-9.54%	0
2010	9.241316	8.825414	-4.50%	0
2009	9.725077	9.241316	-4.97%	0
2008*	10.000000	9.725077	-2.75%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.144478	8.335820	2.35%	0
2010	7.747783	8.144478	5.12%	0
2009	8.091764	7.747783	-4.25%	0
2008	10.056107	8.091764	-19.53%	0
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.983081	8.309789	-7.50%	0
2010	8.159247	8.983081	10.10%	0
2009	6.474511	8.159247	26.02%	0
2008	11.035323	6.474511	-41.33%	0

54

Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.461368	9.610652	-8.13%	0
2010*	10.000000	10.461368	4.61%	0
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.488453	-5.12%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.345636	-6.54%	0
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.618886	10.913167	2.77%	1,320
2010*	10.000000	10.618886	6.19%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.764692	9.977500	-7.31%	0
2010*	10.000000	10.764692	7.65%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.492906	10.248454	-2.33%	0
2010*	10.000000	10.492906	4.93%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.612060	10.143931	-4.41%	0
2010*	10.000000	10.612060	6.12%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.307903	10.349024	0.40%	0
2010*	10.000000	10.307903	3.08%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.545833	10.197032	-3.31%	0
2010*	10.000000	10.545833	5.46%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.677736	10.077344	-5.62%	4,198
2010*	10.000000	10.677736	6.78%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.430001	10.297994	-1.27%	0
2010*	10.000000	10.430001	4.30%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.282483	2.82%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.295241	8.678425	-23.17%	0
2010*	10.000000	11.295241	12.95%	0

55

Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.174636	10.804410	6.19%	0
2010*	10.000000	10.174636	1.75%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.638343	10.117502	-4.90%	0
2010*	10.000000	10.638343	6.38%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.422553	10.408531	-0.13%	0
2010*	10.000000	10.422553	4.23%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.524456	10.316895	-1.97%	0
2010*	10.000000	10.524456	5.24%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.249772	10.445928	1.91%	0
2010*	10.000000	10.249772	2.50%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.460087	10.351661	-1.04%	0
2010*	10.000000	10.460087	4.60%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.569261	10.239434	-3.12%	0
2010*	10.000000	10.569261	5.69%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.362092	10.480810	1.15%	0
2010*	10.000000	10.362092	3.62%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.894559	9.795897	-1.00%	11,611
2010	9.994495	9.894559	-1.00%	6,519
2009*	10.000000	9.994495	-0.06%	1,716
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.175293	9.999055	-10.53%	0
2010*	10.000000	11.175293	11.75%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.645759	8.811067	-17.23%	0
2010*	10.000000	10.645759	6.46%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.796334	10.343079	-4.20%	0
2010*	10.000000	10.796334	7.96%	0

56

Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.291933	9.568453	-7.03%	0
2010*	10.000000	10.291933	2.92%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.255253	10.646952	-5.40%	0
2010*	10.000000	11.255253	12.55%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.807760	10.451525	-3.30%	0
2010*	10.000000	10.807760	8.08%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.187168	11.003356	-1.64%	0
2010*	10.000000	11.187168	11.87%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.741983	10.085748	-6.11%	0
2010*	10.000000	10.741983	7.42%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.042672	10.326232	-6.49%	0
2010*	10.000000	11.042672	10.43%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.418328	10.395434	-0.22%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.975994	-0.24%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.554740	-4.45%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.279375	11.239740	-8.47%	0
2010*	10.000000	12.279375	22.79%	0
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.621512	11.168655	5.15%	935
2010*	10.000000	10.621512	6.22%	402
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.913761	11.714283	7.33%	2,176
2010*	10.000000	10.913761	9.14%	0
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.909032	11.605467	6.38%	455
2010*	10.000000	10.909032	9.09%	0

57

PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.613097	10.847026	2.20%	0
2010*	10.000000	10.613097	6.13%	408
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.843949	-1.56%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.024180	0.24%	0
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.225728	8.489135	-24.38%	0
2010*	10.000000	11.225728	12.26%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.844887	10.518675	-3.01%	0
2010*	10.000000	10.844887	8.45%	0
ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.910309	11.097919	1.72%	0
2010*	10.000000	10.910309	9.10%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.142315	8.053050	-27.73%	0
2010*	10.000000	11.142315	11.42%	0
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.476093	-25.24%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.735028	-22.65%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.993158	8.112339	-9.79%	0
2010*	10.000000	8.993158	-10.07%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.372044	-6.28%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.391952	10.288331	-1.00%	458
2010*	10.000000	10.391952	3.92%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.906424	-0.94%	4,253
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.656174	-3.44%	0

58

ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.035367	8.772487	-20.51%	0
2010*	10.000000	11.035367	10.35%	0
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.618818	9.578717	-9.79%	0
2010*	10.000000	10.618818	6.19%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.291604	-17.08%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.621320	-3.79%	4,391
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.749706	-12.50%	0
ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.883988	9.230241	-15.19%	0
2010*	10.000000	10.883988	8.84%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.475181	-15.25%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.943031	7.212307	-19.35%	0
2010*	10.000000	8.943031	-10.57%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.797419	10.845199	0.44%	0
2010*	10.000000	10.797419	7.97%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.093266	11.229247	1.23%	0
2010*	10.000000	11.093266	10.93%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.415916	4.16%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.300042	-17.00%	0
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.294284	-7.06%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.823188	5.459349	-38.12%	0
2010*	10.000000	8.823188	-11.77%	0

59

ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.829245	-11.71%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.351048	9.149085	9.56%	0
2010*	10.000000	8.351048	-16.49%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.555463	8.622736	0.79%	0
2010*	10.000000	8.555463	-14.45%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.691814	7.703607	-11.37%	0
2010*	10.000000	8.691814	-13.08%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.294848	-7.05%	4,540
ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.537716	-4.62%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.556071	14.998070	42.08%	0
2010*	10.000000	10.556071	5.56%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.405881	11.157181	-2.18%	0
2010*	10.000000	11.405881	14.06%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.396575	5.698800	-22.95%	0
2010*	10.000000	7.396575	-26.03%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.838154	8.38%	3,882
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.188766	3.994984	-23.01%	0
2010	4.636614	5.188766	11.91%	0
2009	4.850015	4.636614	-4.40%	0
2008	8.326730	4.850015	-41.75%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.577004	9.574892	-17.29%	0
2010	9.231492	11.577004	25.41%	0
2009	5.998209	9.231492	53.90%	0
2008	11.096598	5.998209	-45.95%	0

60

Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.966382	13.101604	9.49%	428
2010	10.918712	11.966382	9.60%	0
2009	9.319792	10.918712	17.16%	0
2008	10.670596	9.319792	-12.66%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.093565	6.556156	-7.58%	0
2010	6.632630	7.093565	6.95%	0
2009	6.005293	6.632630	10.45%	0
2008	11.899888	6.005293	-49.53%	0
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.184201	12.596517	12.63%	0
2010	9.632442	11.184201	16.11%	347
2009	8.168154	9.632442	17.93%	0
2008	10.769767	8.168154	-24.16%	0
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.090424	6.577650	8.00%	0
2010	4.937903	6.090424	23.34%	0
2009	3.644174	4.937903	35.50%	0
2008	9.614923	3.644174	-62.10%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.232227	6.806305	-17.32%	0
2010	7.590135	8.232227	8.46%	0
2009	4.461382	7.590135	70.13%	0
2008	9.033072	4.461382	-50.61%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.780275	9.116425	-6.79%	0
2010	8.297986	9.780275	17.86%	459
2009	6.051858	8.297986	37.11%	0
2008	11.327852	6.051858	-46.58%	0
Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.056744	8.133101	-10.20%	0
2010	7.257707	9.056744	24.79%	0
2009	4.513642	7.257707	60.79%	0
2008	10.753828	4.513642	-58.03%	0
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.503609	4.623927	-15.98%	0
2010	6.230546	5.503609	-11.67%	0
2009	4.639479	6.230546	34.29%	0
2008	10.382062	4.639479	-55.31%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.144438	5.175263	-15.77%	0
2010	5.426959	6.144438	13.22%	0
2009	4.580280	5.426959	18.49%	0
2008	8.904928	4.580280	-48.56%	0

61

Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.609947	16.262388	40.07%	272
2010	10.651161	11.609947	9.00%	0
2009	15.715825	10.651161	-32.23%	0
2008	10.961214	15.715825	43.38%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.856117	10.215175	3.64%	0
2010	9.324502	9.856117	5.70%	0
2009	7.556272	9.324502	23.40%	0
2008	10.157723	7.556272	-25.61%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.020953	9.610020	-12.80%	0
2010	9.217493	11.020953	19.57%	0
2009	5.613705	9.217493	64.20%	0
2008	10.286684	5.613705	-45.43%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.054780	4.371423	-27.80%	0
2010	8.773541	6.054780	-30.99%	0
2009	16.011565	8.773541	-45.20%	0
2008	10.055485	16.011565	59.23%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.452658	4.443754	-31.13%	0
2010	7.475324	6.452658	-13.68%	0
2009	6.323364	7.475324	18.22%	0
2008	9.152152	6.323364	-30.91%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.369362	5.843296	-8.26%	0
2010	8.611590	6.369362	-26.04%	0
2009	13.440008	8.611590	-35.93%	0
2008	10.099454	13.440008	33.08%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.355750	5.658302	-10.97%	832
2010	8.154189	6.355750	-22.06%	446
2009	13.745673	8.154189	-40.68%	0
2008	9.379849	13.745673	46.54%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.957353	5.448850	-8.54%	0
2010	8.314505	5.957353	-28.35%	0
2009	12.508512	8.314505	-33.53%	0
2008	10.132740	12.508512	23.45%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.176748	7.363042	-9.95%	0
2010	9.946126	8.176748	-17.79%	234
2009	13.866981	9.946126	-28.27%	0
2008	10.059084	13.866981	37.86%	0

62

Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.439544	5.936774	-29.66%	0
2010	7.366304	8.439544	14.57%	0
2009	6.016373	7.366304	22.44%	0
2008	9.067074	6.016373	-33.65%	0
Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.771157	8.896503	1.43%	0
2010	6.797155	8.771157	29.04%	493
2009	5.021641	6.797155	35.36%	0
2008	9.964214	5.021641	-49.60%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.823996	8.072682	-8.51%	0
2010	6.479773	8.823996	36.18%	0
2009	4.294915	6.479773	50.87%	0
2008	9.605786	4.294915	-55.29%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.643493	8.499391	-1.67%	0
2010	6.377440	8.643493	35.53%	332
2009	2.957598	6.377440	115.63%	665
2008	10.903059	2.957598	-72.87%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.762734	10.886413	1.15%	0
2010	9.175365	10.762734	17.30%	446
2009	6.097352	9.175365	50.48%	0
2008	10.603194	6.097352	-42.50%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.008947	6.858011	-2.15%	0
2010	5.901434	7.008947	18.77%	0
2009	4.399068	5.901434	34.15%	0
2008	9.760758	4.399068	-54.93%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.261332	10.708203	-24.91%	0
2010	10.432817	14.261332	36.70%	591
2009	7.061257	10.432817	47.75%	0
2008	11.610136	7.061257	-39.18%	0
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.320870	8.424379	1.24%	0
2010	6.731172	8.320870	23.62%	0
2009	5.427801	6.731172	24.01%	0
2008	9.394847	5.427801	-42.23%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.429799	10.872807	4.25%	480
2010	8.418727	10.429799	23.89%	413
2009	5.896189	8.418727	42.78%	0
2008	8.882345	5.896189	-33.62%	0

63

Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.276819	7.195740	-13.06%	0
2010	6.064969	8.276819	36.47%	0
2009	4.595409	6.064969	31.98%	0
2008	9.544707	4.595409	-51.85%	0
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.520172	5.249307	-4.91%	0
2010	4.444105	5.520172	24.21%	0
2009	3.066766	4.444105	44.91%	1,576
2008	9.676078	3.066766	-68.31%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.878917	10.653127	-2.08%	0
2010	8.788751	10.878917	23.78%	0
2009	6.029382	8.788751	45.77%	0
2008	10.121184	6.029382	-40.43%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.385595	8.038869	-4.13%	0
2010	7.039980	8.385595	19.11%	0
2009	4.701381	7.039980	49.74%	0
2008	9.249102	4.701381	-49.17%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.119976	12.903595	-1.65%	0
2010	9.995862	13.119976	31.25%	0
2009	6.438595	9.995862	55.25%	0
2008	10.185283	6.438595	-36.79%	0
Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.496238	8.729193	-8.08%	0
2010	7.984760	9.496238	18.93%	0
2009	5.195016	7.984760	53.70%	0
2008	9.309185	5.195016	-44.19%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.339203	10.595849	2.48%	0
2010	8.328219	10.339203	24.15%	0
2009	6.279253	8.328219	32.63%	0
2008	9.656966	6.279253	-34.98%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.331888	8.366287	-10.35%	0
2010	7.534897	9.331888	23.85%	0
2009	4.690382	7.534897	60.65%	0
2008	8.385256	4.690382	-44.06%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.517961	7.125815	-5.22%	0
2010	7.952225	7.517961	-5.46%	0
2009	9.544207	7.952225	-16.68%	0
2008	9.132549	9.544207	4.51%	0

64

Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.223395	8.291271	-10.11%	0
2010	8.315828	9.223395	10.91%	0
2009	5.398224	8.315828	54.05%	0
2008	9.988913	5.398224	-45.96%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.423474	6.290919	-15.26%	0
2010	6.548227	7.423474	13.37%	0
2009	5.140015	6.548227	27.40%	0
2008	9.498265	5.140015	-45.88%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.088607	7.997425	-12.01%	0
2010	7.395573	9.088607	22.89%	526
2009	6.363833	7.395573	16.21%	0
2008	8.600634	6.363833	-26.01%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.911086	10.259148	15.13%	537
2010	8.421534	8.911086	5.81%	0
2009	7.475294	8.421534	12.66%	0
2008	10.721808	7.475294	-30.28%	0
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.457143	9.017884	-4.64%	0
2010	10.120198	9.457143	-6.55%	0
2009	9.588953	10.120198	5.54%	0
2008	11.036431	9.588953	-13.12%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.336669	3.37%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.311419	-16.89%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.905815	-10.94%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.709537	-22.90%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.627758	-3.72%	0

65

Maximum Contract Options Elected Total - 1.20%
Variable account charges of the daily net assets of the variable account - 1.20%
AllianceBernstein Variable Products Series Fund, Inc. - AllianceBernstein VPS Balanced Wealth Strategy Portfolio: Class B -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.089836	-9.10%	0
American Century Variable Portfolios II, Inc. - American Century VP Inflation Protection Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.646417	6.46%	0
American Century Variable Portfolios, Inc. - American Century VP Income & Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.789014	12.010082	1.88%	0
2010	10.453309	11.789014	12.78%	0
American Century Variable Portfolios, Inc. - American Century VP Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.624082	13.597482	-0.20%	0
2010	12.157553	13.624082	12.06%	0
BlackRock Variable Series Funds, Inc. - BlackRock Global Allocation V.I. Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.627272	10.117793	-4.79%	0
2010*	10.000000	10.627272	6.27%	0
Credit Suisse Trust - Commodity Return Strategy Portfolio - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.851719	10.228334	-13.70%	0
2010*	10.000000	11.851719	18.52%	0
Fidelity Variable Insurance Products Fund - VIP Asset Manager Portfolio: Service Class 2 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.102844	-8.97%	0
Fidelity Variable Insurance Products Fund - VIP Equity-Income Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.780478	11.721428	-0.50%	0
2010	10.376946	11.780478	13.53%	0
Fidelity Variable Insurance Products Fund - VIP Growth Portfolio: Service Class 2R - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.000027	10.865907	-1.22%	0
2010	8.988893	11.000027	22.37%	0
Franklin Templeton Variable Insurance Products Trust - Franklin Templeton VIP Founding Funds Allocation Fund: Class 2 -
Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.426391	10.142690	-2.72%	0
2010*	10.000000	10.426391	4.26%	0
Guggenheim Variable Fund - All-Asset Aggressive Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.413020	9.847300	-5.43%	0
2010*	10.000000	10.413020	4.13%	0
Guggenheim Variable Fund - All-Asset Conservative Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.198310	9.944990	-2.48%	0
2010*	10.000000	10.198310	1.98%	0
Guggenheim Variable Fund - All-Asset Moderate Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.149080	9.746206	-3.97%	0
2010*	10.000000	10.149080	1.49%	0

66

Guggenheim Variable Fund - Alternative Strategies Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.660912	9.251463	-4.24%	0
2010	9.838203	9.660912	-1.80%	0
Guggenheim Variable Fund - CLS AdvisorOne Amerigo - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.918906	9.084654	-8.41%	0
2010	8.719577	9.918906	13.75%	0
Guggenheim Variable Fund - CLS AdvisorOne Clermont - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.648351	9.506403	-1.47%	0
2010	8.798833	9.648351	9.65%	0
Guggenheim Variable Fund - CLS AdvisorOne Select Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.298198	8.800021	-5.36%	0
2010	8.273470	9.298198	12.39%	0
Guggenheim Variable Fund - DWA Flexible Allocation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.804748	8.607914	-12.21%	0
2010*	10.000000	9.804748	-1.95%	0
Guggenheim Variable Fund - DWA Sector Rotation - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.584275	8.776953	-8.42%	0
2010*	10.000000	9.584275	-4.16%	0
Guggenheim Variable Fund - Managed Futures Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.788872	7.934449	-9.72%	0
2010	9.221686	8.788872	-4.69%	0
Guggenheim Variable Fund - Multi-Hedge Strategies - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.761665	8.949445	2.14%	0
2010	8.351761	8.761665	4.91%	0
Guggenheim Variable Fund - U.S. Long Short Momentum - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.109619	12.102608	-7.68%	0
2010	11.931420	13.109619	9.87%	0
Ivy Funds Variable Insurance Portfolios, Inc. - Asset Strategy - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.447369	9.578426	-8.32%	0
2010*	10.000000	10.447369	4.47%	0
MFS® Variable Insurance Trust II - MFS Global Tactical Allocation Portfolio: Service Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.475725	-5.24%	0
Nationwide Variable Insurance Trust - American Funds NVIT Asset Allocation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.333111	-6.67%	0
Nationwide Variable Insurance Trust - Federated NVIT High Income Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.893575	13.224207	2.56%	0
2010	11.532428	12.893575	11.80%	0

67

Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.750278	9.944034	-7.50%	0
2010*	10.000000	10.750278	7.50%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Balanced Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.478846	10.214100	-2.53%	0
2010*	10.000000	10.478846	4.79%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Capital Appreciation Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.597846	10.109924	-4.60%	0
2010*	10.000000	10.597846	5.98%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.294100	10.314344	0.20%	0
2010*	10.000000	10.294100	2.94%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderate Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.531712	10.162873	-3.50%	0
2010*	10.000000	10.531712	5.32%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Aggressive Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.663438	10.043550	-5.81%	0
2010*	10.000000	10.663438	6.63%	0
Nationwide Variable Insurance Trust - NVIT Cardinal(SM) Moderately Conservative Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.416035	10.263472	-1.46%	0
2010*	10.000000	10.416035	4.16%	0
Nationwide Variable Insurance Trust - NVIT Core Plus Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.268706	2.69%	0
Nationwide Variable Insurance Trust - NVIT Emerging Markets Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.280122	8.649309	-23.32%	0
2010*	10.000000	11.280122	12.80%	0
Nationwide Variable Insurance Trust - NVIT Government Bond Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.669016	14.485852	5.98%	0
2010	13.202598	13.669016	3.53%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.807682	12.156072	-5.09%	0
2010	11.314847	12.807682	13.19%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Balanced Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.408586	10.373636	-0.34%	0
2010*	10.000000	10.408586	4.09%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Capital Appreciation Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.510350	10.282298	-2.17%	0
2010*	10.000000	10.510350	5.10%	0

68

Nationwide Variable Insurance Trust - NVIT Investor Destinations Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.098282	12.304971	1.71%	0
2010	11.559565	12.098282	4.66%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderate Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.643266	12.486987	-1.24%	0
2010	11.543581	12.643266	9.53%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Aggressive Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.841268	12.415451	-3.32%	0
2010	11.510378	12.841268	11.56%	0
Nationwide Variable Insurance Trust - NVIT Investor Destinations Moderately Conservative Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.470934	12.588398	0.94%	0
2010	11.637304	12.470934	7.16%	0
Nationwide Variable Insurance Trust - NVIT Money Market Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.873477	9.755328	-1.20%	0
2010	9.993387	9.873477	-1.20%	18,020
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Growth Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.160337	9.965518	-10.71%	0
2010*	10.000000	11.160337	11.60%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager International Value Fund: Class VI - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.631512	8.781499	-17.40%	0
2010*	10.000000	10.631512	6.32%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.781874	10.308402	-4.39%	0
2010*	10.000000	10.781874	7.82%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Large Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.278147	9.536360	-7.22%	0
2010*	10.000000	10.278147	2.78%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Growth Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.240189	10.611265	-5.60%	0
2010*	10.000000	11.240189	12.40%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Mid Cap Value Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.793273	10.416462	-3.49%	0
2010*	10.000000	10.793273	7.93%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Growth Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.410043	10.218350	-1.84%	0
2010	8.401591	10.410043	23.91%	0
Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Cap Value Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	14.544720	13.628621	-6.30%	0
2010	11.631293	14.544720	25.05%	0

69

Nationwide Variable Insurance Trust - NVIT Multi-Manager Small Company Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.060927	14.988613	-6.68%	0
2010	12.968472	16.060927	23.85%	0
Nationwide Variable Insurance Trust - NVIT Nationwide Fund: Class III - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.393758	11.345799	-0.42%	0
2010	10.162931	11.393758	12.11%	0
Nationwide Variable Insurance Trust - NVIT Short Term Bond Fund: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.962611	-0.37%	0
PIMCO Variable Insurance Trust - All Asset Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.541933	-4.58%	0
PIMCO Variable Insurance Trust - Commodity RealReturn® Strategy Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.262946	11.202071	-8.65%	0
2010*	10.000000	12.262946	22.63%	0
PIMCO Variable Insurance Trust - Emerging Markets Bond Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.607285	11.131226	4.94%	0
2010*	10.000000	10.607285	6.07%	0
PIMCO Variable Insurance Trust - Foreign Bond Portfolio (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.898960	11.674832	7.12%	0
2010*	10.000000	10.898960	8.99%	0
PIMCO Variable Insurance Trust - Global Bond (Unhedged): Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.894412	11.566574	6.17%	0
2010*	10.000000	10.894412	8.94%	0
PIMCO Variable Insurance Trust - High Yield Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.598871	10.810666	2.00%	0
2010*	10.000000	10.598871	5.99%	0
PIMCO Variable Insurance Trust - Low Duration Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.830586	-1.69%	0
PIMCO Variable Insurance Trust - Total Return Portfolio: Advisor Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.010745	0.11%	0
Pioneer Variable Contracts Trust - Pioneer Emerging Markets VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.210706	8.460655	-24.53%	0
2010*	10.000000	11.210706	12.11%	0
Pioneer Variable Contracts Trust - Pioneer High Yield VCT Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.830175	10.483240	-3.20%	0
2010*	10.000000	10.830175	8.30%	0

70

ProFunds - ProFund VP Access High Yield Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.895699	11.060732	1.51%	0
2010*	10.000000	10.895699	8.96%	0
ProFunds - ProFund VP Asia 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.127401	8.026035	-27.87%	0
2010*	10.000000	11.127401	11.27%	0
ProFunds - ProFund VP Banks - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.466041	-25.34%	0
ProFunds - ProFund VP Basic Materials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.724641	-22.75%	0
ProFunds - ProFund VP Bear - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.981110	8.085149	-9.98%	0
2010*	10.000000	8.981110	-10.19%	0
ProFunds - ProFund VP Biotechnology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.359485	-6.41%	0
ProFunds - ProFund VP Bull - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.378033	10.253833	-1.20%	0
2010*	10.000000	10.378033	3.78%	0
ProFunds - ProFund VP Consumer Goods - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.893142	-1.07%	0
ProFunds - ProFund VP Consumer Services - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.643228	-3.57%	0
ProFunds - ProFund VP Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.020588	8.743063	-20.67%	0
2010*	10.000000	11.020588	10.21%	0
ProFunds - ProFund VP Europe 30 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.604590	9.546589	-9.98%	0
2010*	10.000000	10.604590	6.05%	0
ProFunds - ProFund VP Financials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.280469	-17.20%	0
ProFunds - ProFund VP Health Care - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.608417	-3.92%	0
ProFunds - ProFund VP Industrials - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.737960	-12.62%	0

71

ProFunds - ProFund VP International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.869414	9.199275	-15.37%	0
2010*	10.000000	10.869414	8.69%	0
ProFunds - ProFund VP Internet - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.463802	-15.36%	0
ProFunds - ProFund VP Japan - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.931048	7.188106	-19.52%	0
2010*	10.000000	8.931048	-10.69%	0
ProFunds - ProFund VP NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.782960	10.808855	0.24%	0
2010*	10.000000	10.782960	7.83%	0
ProFunds - ProFund VP Oil & Gas - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.078398	11.191596	1.02%	0
2010*	10.000000	11.078398	10.78%	0
ProFunds - ProFund VP Pharmaceuticals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.401958	4.02%	0
ProFunds - ProFund VP Precious Metals - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.288908	-17.11%	0
ProFunds - ProFund VP Real Estate - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.281820	-7.18%	0
ProFunds - ProFund VP Rising Rates Opportunity - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.811344	5.441004	-38.25%	0
2010*	10.000000	8.811344	-11.89%	0
ProFunds - ProFund VP Semiconductor - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.817393	-11.83%	0
ProFunds - ProFund VP Short Emerging Markets - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.339834	9.118404	9.34%	0
2010*	10.000000	8.339834	-16.60%	0
ProFunds - ProFund VP Short International - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.543985	8.593845	0.58%	0
2010*	10.000000	8.543985	-14.56%	0
ProFunds - ProFund VP Short NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.680165	7.677775	-11.55%	0
2010*	10.000000	8.680165	-13.20%	0
ProFunds - ProFund VP Technology - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.282375	-7.18%	0

72

ProFunds - ProFund VP Telecommunications - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.524936	-4.75%	0
ProFunds - ProFund VP U.S. Government Plus - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.541922	14.947793	41.79%	0
2010*	10.000000	10.541922	5.42%	0
ProFunds - ProFund VP UltraNASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.390608	11.119781	-2.38%	0
2010*	10.000000	11.390608	13.91%	0
ProFunds - ProFund VP UltraShort NASDAQ-100 - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.386631	5.679662	-23.11%	0
2010*	10.000000	7.386631	-26.13%	0
ProFunds - ProFund VP Utilities - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.823629	8.24%	0
Rydex Variable Trust - Banking Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.019993	5.393982	-23.16%	0
2010	6.285678	7.019993	11.68%	0
Rydex Variable Trust - Basic Materials Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	25.368923	20.939326	-17.46%	0
2010	20.270061	25.368923	25.15%	0
Rydex Variable Trust - Biotechnology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.397757	11.361235	9.27%	0
2010	9.506614	10.397757	9.37%	0
Rydex Variable Trust - Commodities Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.500918	5.073916	-7.76%	0
2010	5.153870	5.500918	6.73%	0
Rydex Variable Trust - Consumer Products Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	17.189380	19.321008	12.40%	0
2010	14.834363	17.189380	15.88%	0
Rydex Variable Trust - Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.888281	9.579977	7.78%	0
2010	7.220869	8.888281	23.09%	0
Rydex Variable Trust - Electronics Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.486935	7.002739	-17.49%	0
2010	7.840799	8.486935	8.24%	0
Rydex Variable Trust - Energy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	23.929806	22.260520	-6.98%	0
2010	20.344094	23.929806	17.63%	0

73

Rydex Variable Trust - Energy Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	28.397251	25.449729	-10.38%	0
2010	22.802431	28.397251	24.54%	0
Rydex Variable Trust - Europe 1.25x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.046731	8.423831	-16.15%	0
2010	11.396763	10.046731	-11.85%	0
Rydex Variable Trust - Financial Services Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.392723	7.054640	-15.94%	0
2010	7.427709	8.392723	12.99%	0
Rydex Variable Trust - Government Long Bond 1.2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.761647	19.237503	39.79%	0
2010	12.650723	13.761647	8.78%	0
Rydex Variable Trust - Health Care Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.804467	12.209849	3.43%	0
2010	11.190349	11.804467	5.49%	0
Rydex Variable Trust - Internet Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	17.881156	15.560514	-12.98%	0
2010	14.985318	17.881156	19.32%	0
Rydex Variable Trust - Inverse Dow 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	3.668178	2.643008	-27.95%	0
2010	5.326082	3.668178	-31.13%	0
Rydex Variable Trust - Inverse Government Long Bond Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.746561	3.949491	-31.27%	0
2010	6.670820	5.746561	-13.86%	0
Rydex Variable Trust - Inverse Mid-Cap Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	4.572186	4.186103	-8.44%	0
2010	6.194293	4.572186	-26.19%	0
Rydex Variable Trust - Inverse NASDAQ-100® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	2.836528	2.520171	-11.15%	0
2010	3.646530	2.836528	-22.21%	0
Rydex Variable Trust - Inverse Russell 2000® Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	4.306457	3.930939	-8.72%	0
2010	6.022583	4.306457	-28.49%	0
Rydex Variable Trust - Inverse S&P 500 Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	5.263868	4.730489	-10.13%	0
2010	6.415889	5.263868	-17.96%	0
Rydex Variable Trust - Japan 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.576357	7.424865	-29.80%	0
2010	9.250023	10.576357	14.34%	0

74

Rydex Variable Trust - Leisure Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.508848	15.698767	1.22%	0
2010	12.042777	15.508848	28.78%	0
Rydex Variable Trust - Mid-Cap 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	19.249818	17.575258	-8.70%	0
2010	14.164399	19.249818	35.90%	0
Rydex Variable Trust - NASDAQ-100® 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.160080	9.970562	-1.87%	0
2010	7.511567	10.160080	35.26%	0
Rydex Variable Trust - NASDAQ-100® Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.522242	15.668967	0.95%	0
2010	13.259645	15.522242	17.06%	0
Rydex Variable Trust - Nova Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	9.608482	9.382594	-2.35%	0
2010	8.106560	9.608482	18.53%	0
Rydex Variable Trust - Precious Metals Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	33.129362	24.825150	-25.07%	0
2010	24.284651	33.129362	36.42%	0
Rydex Variable Trust - Real Estate Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.206415	16.374944	1.04%	0
2010	13.136654	16.206415	23.37%	0
Rydex Variable Trust - Retailing Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.155460	15.767352	4.04%	0
2010	12.257915	15.155460	23.64%	0
Rydex Variable Trust - Russell 2000® 1.5x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	15.845776	13.748262	-13.24%	0
2010	11.634709	15.845776	36.19%	0
Rydex Variable Trust - S&P 500 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	7.732948	7.338659	-5.10%	0
2010	6.238110	7.732948	23.96%	0
Rydex Variable Trust - S&P 500 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.994359	11.721747	-2.27%	0
2010	9.709475	11.994359	23.53%	0
Rydex Variable Trust - S&P 500 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.251327	10.764342	-4.33%	0
2010	9.464940	11.251327	18.87%	0
Rydex Variable Trust - S&P MidCap 400 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.572498	16.266326	-1.85%	0
2010	12.651779	16.572498	30.99%	0

75

Rydex Variable Trust - S&P MidCap 400 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.485702	12.371410	-8.26%	0
2010	11.362160	13.485702	18.69%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Growth Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.476377	13.783056	2.28%	0
2010	10.877164	13.476377	23.90%	0
Rydex Variable Trust - S&P SmallCap 600 Pure Value Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	12.290379	10.996416	-10.53%	0
2010	9.943753	12.290379	23.60%	0
Rydex Variable Trust - Strengthening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	6.542428	6.188685	-5.41%	0
2010	6.934349	6.542428	-5.65%	0
Rydex Variable Trust - Technology Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	13.635633	12.232887	-10.29%	0
2010	12.318763	13.635633	10.69%	0
Rydex Variable Trust - Telecommunications Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	8.897941	7.525218	-15.43%	0
2010	7.864728	8.897941	13.14%	0
Rydex Variable Trust - Transportation Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	16.387510	14.390919	-12.18%	0
2010	13.361786	16.387510	22.64%	0
Rydex Variable Trust - Utilities Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	10.704842	12.299437	14.90%	0
2010	10.137199	10.704842	5.60%	0
Rydex Variable Trust - Weakening Dollar 2x Strategy Fund - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011	11.139483	10.600667	-4.84%	0
2010	11.944618	11.139483	-6.74%	0
The Universal Institutional Funds, Inc. - Emerging Markets Debt Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	10.322812	3.23%	0
The Universal Institutional Funds, Inc. - Global Real Estate Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.300260	-17.00%	0
The Universal Institutional Funds, Inc. - Global Tactical Asset Allocation Portfolio: Class II - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	8.893859	-11.06%	0
Van Eck VIP Trust - Van Eck VIP Global Hard Assets Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	7.699178	-23.01%	0
Van Eck VIP Trust - Van Eck VIP Multi-Manager Alternatives Fund: Initial Class - Q/NQ
Period	Beginning Value	Ending Value	Percentage Change	Units
2011*	10.000000	9.614864	-3.85%	0

76

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-4:

We have audited the accompanying statement of assets, liabilities and contract owners’ equity of Nationwide Variable Account-4 (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-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Assets:
Investments at fair value:
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)
	1,650,604 shares (cost $23,714,556)	$	21,920,017
Credit Suisse Trust - Commodity Return Strategy Portfolio (CSCRS)
	314,095 shares (cost $2,729,862)		2,248,921
MFS Global Tactical Allocation Portfolio - Service Class (MVGTAS)
	7,130 shares (cost $100,369)		100,247
Emerging Markets Debt Portfolio - Class II (MSEMB)
	46,914 shares (cost $376,505)		387,511
Global Tactical Asset Allocation Portfolio - Class II (MSVGT2)
	6,496 shares (cost $55,005)		55,670
Global Real Estate Portfolio - Class II (VKVGR2)
	11,550 shares (cost $85,998)		84,548
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
	49,624 shares (cost $858,200)		855,515
Federated NVIT High Income Bond Fund - Class III (HIBF3)
	10,628,706 shares (cost $69,091,043)		69,405,451
NVIT Emerging Markets Fund - Class III (GEM3)
	122,783 shares (cost $1,577,100)		1,245,022
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
	44,912 shares (cost $405,890)		362,891
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
	202,106 shares (cost $2,104,030)		2,015,000
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
	180,045 shares (cost $1,830,184)		1,712,227
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
	551,827 shares (cost $5,761,134)		5,667,268
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
	372,392 shares (cost $3,796,795)		3,630,821
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
	183,219 shares (cost $1,776,685)		1,680,119
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
	137,086 shares (cost $1,417,536)		1,391,419
NVIT Core Plus Bond Fund - Class II (NVLCP2)
	214,400 shares (cost $2,449,766)		2,459,169
NVIT Fund - Class III (TRF3)
	45,655 shares (cost $408,575)		415,005
NVIT Government Bond Fund - Class III (GBF3)
	2,059,771 shares (cost $24,727,444)		24,573,073
NVIT Investor Destinations Aggressive Fund - Class VI (GVIDA6)
	510,534 shares (cost $4,306,894)		4,441,645
NVIT Investor Destinations Balanced Fund - Class VI (NVDBL6)
	34,111 shares (cost $435,550)		437,299
NVIT Investor Destinations Capital Appreciation Fund - Class VI (NVDCA6)
	37,507 shares (cost $531,986)		518,351
NVIT Investor Destinations Conservative Fund - Class VI (GVIDC6)
	1,652,283 shares (cost $16,468,384)		16,787,195
NVIT Investor Destinations Moderate Fund - Class VI (GVIDM6)
	2,270,238 shares (cost $22,030,235)		23,338,048
NVIT Investor Destinations Moderately Aggressive Fund - Class VI (GVDMA6)
	761,739 shares (cost $7,192,622)		7,548,830
NVIT Investor Destinations Moderately Conservative Fund - Class VI (GVDMC6)
	1,389,475 shares (cost $13,825,464)		14,381,061
NVIT Money Market Fund - Class I (SAM)
	27,825 shares (cost $27,825)		27,825

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
	159,061 shares (cost $1,555,016)	1,387,013
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
	83,821 shares (cost $825,125)	694,879
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
	53,032 shares (cost $509,273)	492,135
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
	54,181 shares (cost $448,636)	435,619
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
	34,318 shares (cost $232,016)	349,696
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
	158,848 shares (cost $1,672,084)	1,602,777
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
	60,974 shares (cost $658,616)	605,472
NVIT Multi-Manager Small Cap Growth Fund - Class III (SCGF3)
	33,812 shares (cost $581,248)	515,631
NVIT Multi-Manager Small Cap Value Fund - Class III (SCVF3)
	66,587 shares (cost $652,159)	658,549
NVIT Multi-Manager Small Company Fund - Class III (SCF3)
	148,394 shares (cost $2,480,589)	2,524,190
NVIT Short Term Bond Fund - Class II (NVSTB2)
	428,763 shares (cost $4,452,038)	4,420,546
NVIT Money Market Fund - Class II (NVMM2)
	235,054,118 shares (cost $235,054,118)	235,054,118
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
	5,103 shares (cost $54,469)	55,117
VP Income & Growth Fund - Class III (ACVIG3)
	686,137 shares (cost $3,970,194)	4,212,883
VP Inflation Protection Fund - Class II (ACVIP2)
	533,596 shares (cost $6,243,498)	6,269,749
VP Ultra(R) Fund - Class III (ACVU3)
	47,327 shares (cost $396,815)	448,187
VP Value Fund - Class III (ACVV3)
	995,084 shares (cost $5,572,761)	5,771,485
Quality Bond Fund II - Primary Shares (FQB)
	425 shares (cost $4,670)	4,763
VIP Fund - Asset Manager Portfolio - Service Class 2 (FAM2)
	55,582 shares (cost $789,150)	754,244
VIP Fund - Contrafund Portfolio - Service Class 2 R (FC2R)
	333,608 shares (cost $6,256,944)	7,539,544
VIP Fund - Equity-Income Portfolio - Service Class 2 R (FEI2R)
	201,495 shares (cost $3,579,928)	3,695,410
VIP Fund - Growth Portfolio - Service Class 2 R (FG2R)
	139,652 shares (cost $5,276,658)	5,091,707
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
	265,547 shares (cost $2,098,153)	2,015,503
Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio - Class I (SBTRP)
	1,816 shares (cost $38,082)	33,030
Legg Mason ClearBridge Variable Large Cap Value Portfolio: Class I (SBVI)
	142,693 shares (cost $2,373,037)	1,932,059
Global Currents Variable International All Cap Opportunity Portfolio (SBIEP)
	17,062 shares (cost $126,862)	86,506
All Asset Portfolio - Advisor Class (PMVAAD)
	368,162 shares (cost $3,889,995)	3,862,017
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
	502,249 shares (cost $6,064,962)	6,072,185
Low Duration Portfolio - Advisor Class (PMVLAD)
	548,346 shares (cost $5,696,546)	5,691,836

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Total Return Portfolio - Advisor Class (PMVTRD)
	895,873 shares (cost $9,963,236)	9,872,523
Variable Insurance Trust - Commodity RealReturn( TM ) Strategy Portfolio - Advisor Class (PMVRSD)
	472,655 shares (cost $4,197,993)	3,436,204
Variable Insurance Trust - Emerging Markets Bond Portfolio - Advisor Class (PMVEBD)
	548,395 shares (cost $7,482,879)	7,485,596
Variable Insurance Trust - Global Bond (Unhedged) - Advisor Class (PMVGBD)
	533,524 shares (cost $7,693,034)	7,378,638
Variable Insurance Trust - High Yield Portfolio - Advisor Class (PMVHYD)
	7,258,067 shares (cost $53,741,584)	54,217,762
Variable Contracts Trust - Emerging Markets VCT Portfolio - Class II (PIVEM2)
	147,771 shares (cost $4,164,124)	3,503,651
Variable Contracts Trust - High Yield VCT Portfolio - Class II Shares (PIHYB2)
	556,161 shares (cost $5,442,068)	5,494,869
Ultra Short NASDAQ-100 (PROUSN)
	98,092 shares (cost $551,276)	554,218
VP Access High Yield (PROAHY)
	145,088 shares (cost $3,777,974)	3,817,270
VP Asia 30 (PROA30)
	32,679 shares (cost $1,442,825)	1,378,741
VP Banks (PROBNK)
	16,259 shares (cost $150,142)	151,374
VP Basic Materials (PROBM)
	9,127 shares (cost $415,591)	398,841
VP Bear (PROBR)
	103,110 shares (cost $1,975,695)	1,913,725
VP Biotechnology (PROBIO)
	5,084 shares (cost $117,514)	123,896
VP Bull (PROBL)
	296,185 shares (cost $7,660,575)	7,677,111
VP Consumer Goods (PROCG)
	6,826 shares (cost $243,263)	249,272
VP Consumer Services (PROCS)
	16,128 shares (cost $542,892)	544,631
VP Emerging Markets (PROEM)
	131,758 shares (cost $3,410,197)	3,210,947
VP Europe 30 (PROE30)
	8,502 shares (cost $160,610)	163,325
VP Financials (PROFIN)
	9,445 shares (cost $157,491)	161,219
VP Health Care (PROHC)
	16,598 shares (cost $520,653)	526,822
VP Industrials (PROIND)
	23,342 shares (cost $842,539)	841,934
VP International (PROINT)
	129,014 shares (cost $2,499,689)	2,404,817
VP Internet (PRONET)
	1,514 shares (cost $84,337)	83,172
VP Japan (PROJP)
	23,767 shares (cost $263,477)	246,468
VP NASDAQ-100 (PRON)
	134,570 shares (cost $2,614,413)	2,628,152
VP Oil and Gas (PROOG)
	68,294 shares (cost $3,181,397)	3,242,605
VP Pharmaceuticals (PROPHR)
	118,113 shares (cost $2,901,511)	2,958,727
VP Precious Metals (PROPM)
	72,027 shares (cost $3,444,040)	3,198,714

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

VP Real Estate (PRORE)
	9,298 shares (cost $406,811)	420,474
VP Rising Rates Opportunity (PRORRO)
	67,738 shares (cost $510,742)	508,032
VP Semiconductor (PROSCN)
	6,756 shares (cost $132,885)	129,653
VP Short Emerging Markets (PROSEM)
	53,128 shares (cost $780,871)	794,257
VP Short International (PROSIN)
	66,095 shares (cost $1,398,490)	1,382,709
VP Short NADSAQ-100 (PROSN)
	64,911 shares (cost $553,722)	549,150
VP Technology (PROTEC)
	59,823 shares (cost $1,014,091)	992,472
VP Telecommunications (PROTEL)
	4,700 shares (cost $34,968)	35,109
VP U.S. Government Plus (PROGVP)
	116,940 shares (cost $3,181,738)	3,284,834
VP Ultra NASDAQ-100 (PROUN)
	83,246 shares (cost $1,834,897)	1,790,631
VP Utilities (PROUTL)
	51,235 shares (cost $1,614,725)	1,663,596
Variable Trust: All-Asset Aggressive Strategy Fund (RVAAS)
	25,192 shares (cost $616,727)	572,104
Variable Trust: All-Asset Conservative Strategy Fund (RVACS)
	81,085 shares (cost $1,968,378)	1,906,315
Variable Trust: All-Asset Moderate Strategy Fund (RVAMS)
	176,287 shares (cost $4,382,337)	4,190,342
Variable Trust: All-Cap Opportunity Fund (RSRF)
	713,249 shares (cost $8,533,990)	8,530,464
Variable Trust: Alternative Strategies Allocation Fund (RVASA)
	175,339 shares (cost $3,392,694)	3,310,402
SGI Variable Trust - CLS AdvisorOne Amerigo Fund (RVAMR)
	356,169 shares (cost $11,091,629)	11,397,423
Variable Trust: Banking Fund (RBKF)
	77,126 shares (cost $831,232)	834,501
Variable Trust: Basic Materials Fund (RBMF)
	255,144 shares (cost $7,017,125)	6,618,443
SGI Variable Trust - CLS AdvisorOne Select Allocation Fund (RVBER)
	350,205 shares (cost $7,979,859)	7,900,618
Variable Trust: Biotechnology Fund (RBF)
	208,068 shares (cost $5,514,012)	5,736,437
SGI Variable Trust - CLS AdvisorOne Clermont Fund (RVCLR)
	417,271 shares (cost $9,976,848)	9,680,689
Variable Trust: Commodities Strategy Fund (RVCMD)
	512,591 shares (cost $6,433,760)	5,828,156
Variable Trust: Consumer Products Fund (RCPF)
	204,497 shares (cost $8,333,785)	8,552,084
Variable Trust: Dow 2x Strategy Fund (RVLDD)
	114,468 shares (cost $9,792,150)	10,208,290
Variable Trust: DWA Flexible Allocation Fund (RVDFA)
	747,049 shares (cost $16,801,065)	15,904,666
Variable Trust: DWA Sector Rotation Fund (RVDSR)
	1,032,597 shares (cost $22,470,035)	22,892,668
Variable Trust: Electronics Fund (RELF)
	663,173 shares (cost $1,908,725)	1,890,042
Variable Trust: Energy Fund (RENF)
	318,862 shares (cost $9,285,830)	9,323,534

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Variable Trust: Energy Services Fund (RESF)
	367,571 shares (cost $8,675,652)	8,171,113
Variable Trust: Europe 1.25x Strategy Fund (RLCE)
	147,156 shares (cost $1,883,016)	1,848,276
Variable Trust: Financial Services Fund (RFSF)
	241,938 shares (cost $3,065,772)	3,123,414
Variable Trust: Government Long Bond 1.2x Strategy Fund (RUGB)
	1,014,331 shares (cost $19,594,469)	20,106,202
Variable Trust: Health Care Fund (RHCF)
	211,663 shares (cost $6,071,183)	6,239,835
Variable Trust: Internet Fund (RINF)
	193,663 shares (cost $3,459,154)	3,361,994
Variable Trust: Inverse Dow 2x Strategy Fund (RVIDD)
	338,475 shares (cost $3,544,987)	3,391,522
Variable Trust: Inverse Government Long Bond Strategy Fund (RJNF)
	290,485 shares (cost $2,923,932)	2,861,278
Variable Trust: Inverse Mid-Cap Strategy Fund (RVIMC)
	41,726 shares (cost $958,309)	874,985
Variable Trust: Inverse NASDAQ-100(R) Strategy Fund (RAF)
	198,340 shares (cost $2,132,319)	2,106,367
Variable Trust: Inverse Russell 2000(R) Strategy Fund (RVISC)
	134,551 shares (cost $2,594,821)	2,579,336
Variable Trust: Inverse S&P 500 Strategy Fund (RUF)
	173,772 shares (cost $5,612,368)	5,557,236
Variable Trust: Japan 2x Strategy Fund (RLCJ)
	59,600 shares (cost $878,326)	910,096
Variable Trust: Leisure Fund (RLF)
	74,708 shares (cost $4,166,342)	4,152,247
Variable Trust: Managed Futures Strategy Fund (RVMFU)
	340,807 shares (cost $7,545,029)	6,966,086
Variable Trust: Mid-Cap 1.5x Strategy Fund (RMED)
	229,296 shares (cost $4,303,367)	4,354,322
Variable Trust: Multi-Hedge Strategies Fund (RVARS)
	269,580 shares (cost $5,512,029)	5,936,160
Variable Trust: NASDAQ-100(R) 2x Strategy Fund (RVF)
	243,304 shares (cost $5,025,690)	5,033,958
Variable Trust: NASDAQ-100(R) Fund (ROF)
	340,043 shares (cost $6,584,312)	6,569,627
Variable Trust: Nova Fund (RNF)
	132,675 shares (cost $9,350,756)	9,596,347
Variable Trust: Precious Metals Fund (RPMF)
	1,690,075 shares (cost $27,358,335)	24,387,776
Variable Trust: Real Estate Fund (RREF)
	319,368 shares (cost $8,094,498)	8,271,633
Variable Trust: Retailing Fund (RRF)
	480,918 shares (cost $6,915,472)	6,881,935
Variable Trust: Russell 2000(R) 1.5x Strategy Fund (RMEK)
	163,558 shares (cost $4,376,638)	4,373,550
Variable Trust: S&P 500 2x Strategy Fund (RTF)
	93,366 shares (cost $9,788,832)	10,087,310
Variable Trust: S&P 500 Pure Growth Fund (RVLCG)
	521,884 shares (cost $15,797,825)	15,651,310
Variable Trust: S&P 500 Pure Value Fund (RVLCV)
	184,367 shares (cost $14,509,509)	14,524,403
Variable Trust: S&P MidCap 400 Pure Growth Fund (RVMCG)
	290,423 shares (cost $11,024,477)	10,603,347
Variable Trust: S&P MidCap 400 Pure Value Fund (RVMCV)
	220,914 shares (cost $16,268,525)	16,294,618

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS’ EQUITY

December 31, 2011

Variable Trust: S&P SmallCap 600 Pure Growth Fund (RVSCG)
	270,213 shares (cost $8,287,630)		8,354,972
Variable Trust: S&P SmallCap 600 Pure Value Fund (RVSCV)
	63,074 shares (cost $5,654,665)		5,824,880
Variable Trust: Strengthening Dollar 2x Strategy Fund (RVSDL)
	225,722 shares (cost $2,813,555)		2,839,587
Variable Trust: Technology Fund (RTEC)
	422,162 shares (cost $4,569,168)		4,491,807
Variable Trust: Telecommunications Fund (RTEL)
	232,680 shares (cost $2,083,023)		2,094,117
Variable Trust: Transportation Fund (RTRF)
	254,591 shares (cost $3,584,233)		3,561,726
Variable Trust: Utilities Fund (RUTL)
	495,213 shares (cost $9,386,470)		9,656,652
Variable Trust: Weakening Dollar 2x Strategy Fund (RVWDL)
	33,820 shares (cost $875,398)		822,507
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
	21,844 shares (cost $772,831)		671,694
VIP Trust - Multi-Manager Alternatives Fund: Initial Class (VWAR)
	205,782 shares (cost $2,029,848)		2,008,435
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)
	2,139,169 shares (cost $20,740,422)		19,482,909
Total Investments		$	1,059,285,886
Accounts Payable			(63,526	)
		$	1,059,222,360
Contract Owners’ Equity:
Accumulation units			1,059,078,599
Contracts in payout (annuitization) period (note 1f)			143,761
Total Contract Owners’ Equity (note 5)		$	1,059,222,360
See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	Total			MLVGA3			CSCRS			MVGTAS			MSEMB			MSVGT2			VKVGR2			GVAAA2
Reinvested dividends	$	12,189,541			520,946			75,399			843			4,973			247			1,178			42
Mortality and expense risk charges (note 2)		(15,376,167	)		(321,962	)		(38,669	)		(604	)		(2,851	)		(533	)		(498	)		(3,658	)
Net investment income (loss)		(3,186,626	)		198,984			36,730			239			2,122			(286	)		680			(3,616	)
Realized gain (loss) on investments		(2,757,430	)		731,104			(92,481	)		(3,539	)		(40	)		(4,509	)		(6,956	)		(38,392	)
Change in unrealized gain (loss) on investments		(54,427,769	)		(2,964,673	)		(506,418	)		(121	)		11,007			665			(1,450	)		(2,685	)
Net gain (loss) on investments		(57,185,199	)		(2,233,569	)		(598,899	)		(3,660	)		10,967			(3,844	)		(8,406	)		(41,077	)
Reinvested capital gains		7,433,025			560,633			-			375			1,572			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(52,938,800	)		(1,473,952	)		(562,169	)		(3,046	)		14,661			(4,130	)		(7,726	)		(44,693	)
Investment Activity:	HIBF3			GEM3			NVCRA2			NVCRB2			NVCCA2			NVCCN2			NVCMD2			NVCMA2
Reinvested dividends	$	3,050,243			12,458			10,696			36,160			35,945			155,021			82,325			33,813
Mortality and expense risk charges (note 2)		(666,386	)		(29,878	)		(9,162	)		(26,346	)		(26,018	)		(80,651	)		(50,554	)		(20,074	)
Net investment income (loss)		2,383,857			(17,420	)		1,534			9,814			9,927			74,370			31,771			13,739
Realized gain (loss) on investments		1,064,524			54,867			3,041			31,550			39,231			76,319			147,121			44,355
Change in unrealized gain (loss) on investments		(906,506	)		(486,648	)		(34,191	)		(143,912	)		(207,743	)		(175,889	)		(366,713	)		(177,849	)
Net gain (loss) on investments		158,018			(431,781	)		(31,150	)		(112,362	)		(168,512	)		(99,570	)		(219,592	)		(133,494	)
Reinvested capital gains		-			-			4,518			11,726			10,075			29,244			23,896			14,116
Net increase (decrease) in contract owners’ equity resulting from operations	$	2,541,875			(449,201	)		(25,098	)		(90,822	)		(148,510	)		4,044			(163,925	)		(105,639	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	NVCMC2			NVLCP2			TRF3			GBF3			GVIDA6			NVDBL6			NVDCA6			GVIDC6
Reinvested dividends	$	32,001			33,280			4,753			722,241			87,631			8,994			6,852			418,290
Mortality and expense risk charges (note 2)		(20,906	)		(17,749	)		(4,456	)		(342,291	)		(66,335	)		(6,097	)		(7,182	)		(240,961	)
Net investment income (loss)		11,095			15,531			297			379,950			21,296			2,897			(330	)		177,329
Realized gain (loss) on investments		40,679			4,135			8,744			(321,821	)		396,540			24,039			21,825			154,581
Change in unrealized gain (loss) on investments		(89,708	)		9,403			(22,454	)		1,167,856			(591,416	)		(25,948	)		(31,889	)		(130,721	)
Net gain (loss) on investments		(49,029	)		13,538			(13,710	)		846,035			(194,876	)		(1,909	)		(10,064	)		23,860
Reinvested capital gains		8,076			2,594			-			72,498			-			393			302			58,172
Net increase (decrease) in contract owners’ equity resulting from operations	$	(29,858	)		31,663			(13,413	)		1,298,483			(173,580	)		1,381			(10,092	)		259,361
Investment Activity:	GVIDM6			GVDMA6			GVDMC6			SAM			NVMIG6			GVDIV6			NVMLG2			NVMLV2
Reinvested dividends	$	474,414			173,003			348,391			-			15,873			14,073			-			3,061
Mortality and expense risk charges (note 2)		(319,117	)		(121,274	)		(210,075	)		(365	)		(17,639	)		(8,703	)		(5,215	)		(4,094	)
Net investment income (loss)		155,297			51,729			138,316			(365	)		(1,766	)		5,370			(5,215	)		(1,033	)
Realized gain (loss) on investments		(414,825	)		429,741			514,820			-			56,627			29,510			(16,601	)		9,276
Change in unrealized gain (loss) on investments		40,865			(737,834	)		(544,042	)		-			(234,695	)		(187,037	)		(14,368	)		(40,246	)
Net gain (loss) on investments		(373,960	)		(308,093	)		(29,222	)		-			(178,068	)		(157,527	)		(30,969	)		(30,970	)
Reinvested capital gains		-			-			-			-			-			-			-			14,739
Net increase (decrease) in contract owners’ equity resulting from operations	$	(218,663	)		(256,364	)		109,094			(365	)		(179,834	)		(152,157	)		(36,184	)		(17,264	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	NVMMG1			NVMMG2			NVMMV2			SCGF3			SCVF3			SCF3			NVSTB2			NVMM2
Reinvested dividends	$	-			-			4,914			-			3,354			16,012			49,363			149
Mortality and expense risk charges (note 2)		(6,050	)		(20,500	)		(7,041	)		(8,578	)		(11,407	)		(40,188	)		(32,715	)		(3,535,810	)
Net investment income (loss)		(6,050	)		(20,500	)		(2,127	)		(8,578	)		(8,053	)		(24,176	)		16,648			(3,535,661	)
Realized gain (loss) on investments		97,794			52,983			(1,606	)		71,907			102,781			277,992			(8,906	)		-
Change in unrealized gain (loss) on investments		(106,874	)		(142,645	)		(65,049	)		(136,051	)		(160,302	)		(443,592	)		(31,491	)		-
Net gain (loss) on investments		(9,080	)		(89,662	)		(66,655	)		(64,144	)		(57,521	)		(165,600	)		(40,397	)		-
Reinvested capital gains		-			-			2,673			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(15,130	)		(110,162	)		(66,109	)		(72,722	)		(65,574	)		(189,776	)		(23,749	)		(3,535,661	)
Investment Activity:	ALVBWB			ACVIG3			ACVIP2			ACVU3			ACVV3			FQB			FAM2			FC2R
Reinvested dividends	$	-			65,955			102,415			-			137,321			245			13,766			61,299
Mortality and expense risk charges (note 2)		(251	)		(58,448	)		(42,723	)		(7,637	)		(97,247	)		(62	)		(1,909	)		(124,132	)
Net investment income (loss)		(251	)		7,507			59,692			(7,637	)		40,074			183			11,857			(62,833	)
Realized gain (loss) on investments		(1,347	)		(11,403	)		122,332			76,258			518,925			3			(2,487	)		(107,088	)
Change in unrealized gain (loss) on investments		648			47,090			26,251			(54,960	)		(686,987	)		(140	)		(34,906	)		(184,986	)
Net gain (loss) on investments		(699	)		35,687			148,583			21,298			(168,062	)		(137	)		(37,393	)		(292,074	)
Reinvested capital gains		-			-			-			-			-			-			3,591			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(950	)		43,194			208,275			13,661			(127,988	)		46			(21,945	)		(354,907	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	FEI2R			FG2R			FTVFA2			SBTRP			SBVI			SBIEP			PMVAAD			PMVFAD
Reinvested dividends	$	86,738			6,172			308			477			43,969			8,683			123,243			66,716
Mortality and expense risk charges (note 2)		(65,768	)		(79,082	)		(24,872	)		(452	)		(25,890	)		(1,251	)		(15,512	)		(40,618	)
Net investment income (loss)		20,970			(72,910	)		(24,564	)		25			18,079			7,432			107,731			26,098
Realized gain (loss) on investments		307,320			990,261			96,671			(49	)		(35,598	)		(3,022	)		(39,535	)		118,750
Change in unrealized gain (loss) on investments		(470,169	)		(1,075,246	)		(184,476	)		(2,620	)		86,116			(17,034	)		(27,978	)		8,471
Net gain (loss) on investments		(162,849	)		(84,985	)		(87,805	)		(2,669	)		50,518			(20,056	)		(67,513	)		127,221
Reinvested capital gains		-			19,393			-			-			-			-			-			17,045
Net increase (decrease) in contract owners’ equity resulting from operations	$	(141,879	)		(138,502	)		(112,369	)		(2,644	)		68,597			(12,624	)		40,218			170,364
Investment Activity:	PMVLAD			PMVTRD			PMVRSD			PMVEBD			PMVGBD			PMVHYD			PIVEM2			PIHYB2
Reinvested dividends	$	56,672			85,829			656,675			351,629			226,190			1,062,489			-			209,737
Mortality and expense risk charges (note 2)		(60,151	)		(44,256	)		(61,509	)		(95,919	)		(117,449	)		(227,221	)		(71,177	)		(61,162	)
Net investment income (loss)		(3,479	)		41,573			595,166			255,710			108,741			835,268			(71,177	)		148,575
Realized gain (loss) on investments		(116,712	)		(77,465	)		38,216			(102,743	)		296,597			(165,135	)		(267,397	)		(491,904	)
Change in unrealized gain (loss) on investments		(4,710	)		(90,713	)		(1,060,846	)		131,701			(203,325	)		376,379			(979,820	)		(35,488	)
Net gain (loss) on investments		(121,422	)		(168,178	)		(1,022,630	)		28,958			93,272			211,244			(1,247,217	)		(527,392	)
Reinvested capital gains		-			138,781			-			-			196,162			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(124,901	)		12,176			(427,464	)		284,668			398,175			1,046,512			(1,318,394	)		(378,817	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	PROUSN			PROAHY			PROA30			PROBNK			PROBM			PROBR			PROBIO			PROBL
Reinvested dividends	$	-			72,126			477			-			-			-			-			-
Mortality and expense risk charges (note 2)		(12,780	)		(94,047	)		(22,942	)		(1,845	)		(2,009	)		(24,006	)		(2,020	)		(95,026	)
Net investment income (loss)		(12,780	)		(21,921	)		(22,465	)		(1,845	)		(2,009	)		(24,006	)		(2,020	)		(95,026	)
Realized gain (loss) on investments		(401,180	)		(801,398	)		(373,138	)		(55,521	)		(77,457	)		(315,446	)		(50,598	)		(361,956	)
Change in unrealized gain (loss) on investments		2,043			(47,458	)		(79,490	)		1,232			(16,750	)		117,772			6,382			18,313
Net gain (loss) on investments		(399,137	)		(848,856	)		(452,628	)		(54,289	)		(94,207	)		(197,674	)		(44,216	)		(343,643	)
Reinvested capital gains		-			215,264			80,266			-			-			-			-			92,281
Net increase (decrease) in contract owners’ equity resulting from operations	$	(411,917	)		(655,513	)		(394,827	)		(56,134	)		(96,216	)		(221,680	)		(46,236	)		(346,388	)
Investment Activity:	PROCG			PROCS			PROEM			PROE30			PROFIN			PROHC			PROIND			PROINT
Reinvested dividends	$	-			-			-			1,914			-			-			-			-
Mortality and expense risk charges (note 2)		(1,910	)		(1,426	)		(55,214	)		(4,064	)		(1,222	)		(4,402	)		(5,871	)		(45,726	)
Net investment income (loss)		(1,910	)		(1,426	)		(55,214	)		(2,150	)		(1,222	)		(4,402	)		(5,871	)		(45,726	)
Realized gain (loss) on investments		(38,128	)		(5,499	)		(530,056	)		(71,813	)		25,537			(80,300	)		(50,068	)		(454,196	)
Change in unrealized gain (loss) on investments		6,009			1,739			(427,949	)		1,880			3,728			6,169			(604	)		(160,194	)
Net gain (loss) on investments		(32,119	)		(3,760	)		(958,005	)		(69,933	)		29,265			(74,131	)		(50,672	)		(614,390	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(34,029	)		(5,186	)		(1,013,219	)		(72,083	)		28,043			(78,533	)		(56,543	)		(660,116	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	PRONET			PROJP			PRON			PROOG			PROPHR			PROPM			PRORE			PRORRO
Reinvested dividends	$	-			-			-			7,814			-			-			-			-
Mortality and expense risk charges (note 2)		(690	)		(5,292	)		(25,428	)		(64,873	)		(5,860	)		(28,442	)		(3,676	)		(27,125	)
Net investment income (loss)		(690	)		(5,292	)		(25,428	)		(57,059	)		(5,860	)		(28,442	)		(3,676	)		(27,125	)
Realized gain (loss) on investments		(30,087	)		(139,175	)		(126,469	)		629,174			(40,105	)		(342,156	)		(119,485	)		(915,760	)
Change in unrealized gain (loss) on investments		(1,165	)		(16,842	)		446			(170,139	)		57,216			(245,327	)		13,663			50,818
Net gain (loss) on investments		(31,252	)		(156,017	)		(126,023	)		459,035			17,111			(587,483	)		(105,822	)		(864,942	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(31,942	)		(161,309	)		(151,451	)		401,976			11,251			(615,925	)		(109,498	)		(892,067	)
Investment Activity:	PROSCN			PROSEM			PROSIN			PROSN			PROTEC			PROTEL			PROGVP			PROUN
Reinvested dividends	$	-			-			-			-			-			-			4,052			-
Mortality and expense risk charges (note 2)		(815	)		(9,152	)		(13,201	)		(9,983	)		(6,099	)		(931	)		(40,612	)		(17,209	)
Net investment income (loss)		(815	)		(9,152	)		(13,201	)		(9,983	)		(6,099	)		(931	)		(36,560	)		(17,209	)
Realized gain (loss) on investments		(43,900	)		(138,074	)		(223,391	)		(68,680	)		(33,197	)		(12,560	)		1,296,033			(166,893	)
Change in unrealized gain (loss) on investments		(3,232	)		28,769			(15,407	)		7,301			(21,619	)		141			77,699			(38,936	)
Net gain (loss) on investments		(47,132	)		(109,305	)		(238,798	)		(61,379	)		(54,816	)		(12,419	)		1,373,732			(205,829	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(47,947	)		(118,457	)		(251,999	)		(71,362	)		(60,915	)		(13,350	)		1,337,172			(223,038	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	PROUTL			RVAAS			RVACS			RVAMS			RSRF			RVASA			RVAMR			RBKF
Reinvested dividends	$	-			6,072			7,491			18,315			-			75,763			-			3,131
Mortality and expense risk charges (note 2)		(5,557	)		(23,863	)		(37,852	)		(71,979	)		(146,240	)		(52,287	)		(195,523	)		(20,923	)
Net investment income (loss)		(5,557	)		(17,791	)		(30,361	)		(53,664	)		(146,240	)		23,476			(195,523	)		(17,792	)
Realized gain (loss) on investments		29,640			66,161			164,233			314,084			397,573			13,818			505,282			(321,200	)
Change in unrealized gain (loss) on investments		48,870			(314,336	)		(169,843	)		(469,633	)		(1,003,574	)		(206,550	)		(1,471,001	)		(26,620	)
Net gain (loss) on investments		78,510			(248,175	)		(5,610	)		(155,549	)		(606,001	)		(192,732	)		(965,719	)		(347,820	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	72,953			(265,966	)		(35,971	)		(209,213	)		(752,241	)		(169,256	)		(1,161,242	)		(365,612	)
Investment Activity:	RBMF			RVBER			RBF			RVCLR			RVCMD			RCPF			RVLDD			RVDFA
Reinvested dividends	$	-			126,346			-			168,324			647,666			126,810			-			79,934
Mortality and expense risk charges (note 2)		(170,899	)		(120,764	)		(95,204	)		(138,080	)		(120,390	)		(117,373	)		(108,557	)		(319,405	)
Net investment income (loss)		(170,899	)		5,582			(95,204	)		30,244			527,276			9,437			(108,557	)		(239,471	)
Realized gain (loss) on investments		(1,444,739	)		370,362			(766,743	)		286,071			256,970			569,172			346,581			(246,247	)
Change in unrealized gain (loss) on investments		(1,737,406	)		(880,522	)		126,379			(635,909	)		(1,517,593	)		150,773			257,343			(2,621,445	)
Net gain (loss) on investments		(3,182,145	)		(510,160	)		(640,364	)		(349,838	)		(1,260,623	)		719,945			603,924			(2,867,692	)
Reinvested capital gains		1,084,975			-			-			-			-			-			-			388,719
Net increase (decrease) in contract owners’ equity resulting from operations	$	(2,268,069	)		(504,578	)		(735,568	)		(319,594	)		(733,347	)		729,382			495,367			(2,718,444	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	RVDSR			RELF			RENF			RESF			RLCE			RFSF			RUGB			RHCF
Reinvested dividends	$	41,142			-			-			-			-			2,868			294,993			-
Mortality and expense risk charges (note 2)		(420,648	)		(61,684	)		(214,730	)		(190,873	)		(43,544	)		(54,481	)		(230,246	)		(118,209	)
Net investment income (loss)		(379,506	)		(61,684	)		(214,730	)		(190,873	)		(43,544	)		(51,613	)		64,747			(118,209	)
Realized gain (loss) on investments		114,190			(1,918,015	)		(136,249	)		(292,055	)		(432,956	)		(421,780	)		8,872,767			(473,931	)
Change in unrealized gain (loss) on investments		(2,309,026	)		(14,441	)		(1,188,379	)		(2,000,237	)		(48,586	)		(65,064	)		471,238			55,916
Net gain (loss) on investments		(2,194,836	)		(1,932,456	)		(1,324,628	)		(2,292,292	)		(481,542	)		(486,844	)		9,344,005			(418,015	)
Reinvested capital gains		-			1,545,477			60,626			989,305			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(2,574,342	)		(448,663	)		(1,478,732	)		(1,493,860	)		(525,086	)		(538,457	)		9,408,752			(536,224	)
Investment Activity:	RINF			RVIDD			RJNF			RVIMC			RAF			RVISC			RUF			RLCJ
Reinvested dividends	$	-			-			-			-			-			-			-			-
Mortality and expense risk charges (note 2)		(82,549	)		(87,612	)		(78,193	)		(14,368	)		(41,665	)		(51,759	)		(122,232	)		(36,821	)
Net investment income (loss)		(82,549	)		(87,612	)		(78,193	)		(14,368	)		(41,665	)		(51,759	)		(122,232	)		(36,821	)
Realized gain (loss) on investments		(145,969	)		(2,307,393	)		(1,601,425	)		(149,076	)		(585,414	)		(211,989	)		(1,832,978	)		(717,947	)
Change in unrealized gain (loss) on investments		(466,137	)		(29,807	)		(62,705	)		(29,023	)		(21,799	)		(12,331	)		282,188			(184,196	)
Net gain (loss) on investments		(612,106	)		(2,337,200	)		(1,664,130	)		(178,099	)		(607,213	)		(224,320	)		(1,550,790	)		(902,143	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(694,655	)		(2,424,812	)		(1,742,323	)		(192,467	)		(648,878	)		(276,079	)		(1,673,022	)		(938,964	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	RLF			RVMFU			RMED			RVARS			RVF			ROF			RNF			RPMF
Reinvested dividends	$	-			-			-			-			-			-			5,709			25,688
Mortality and expense risk charges (note 2)		(79,948	)		(114,961	)		(93,755	)		(87,163	)		(88,117	)		(119,177	)		(157,713	)		(566,435	)
Net investment income (loss)		(79,948	)		(114,961	)		(93,755	)		(87,163	)		(88,117	)		(119,177	)		(152,004	)		(540,747	)
Realized gain (loss) on investments		793,463			(29,979	)		(45,567	)		175,422			(1,915,126	)		149,789			(105,916	)		2,137,061
Change in unrealized gain (loss) on investments		(676,181	)		(681,567	)		(572,628	)		21,887			(167,764	)		(280,477	)		(581,904	)		(12,304,655	)
Net gain (loss) on investments		117,282			(711,546	)		(618,195	)		197,309			(2,082,890	)		(130,688	)		(687,820	)		(10,167,594	)
Reinvested capital gains		-			-			-			-			692,983			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	37,334			(826,507	)		(711,950	)		110,146			(1,478,024	)		(249,865	)		(839,824	)		(10,708,341	)
Investment Activity:	RREF			RRF			RMEK			RTF			RVLCG			RVLCV			RVMCG			RVMCV
Reinvested dividends	$	279,875			-			-			-			-			2,773			-			-
Mortality and expense risk charges (note 2)		(168,693	)		(70,343	)		(81,931	)		(119,550	)		(275,168	)		(183,261	)		(253,388	)		(128,449	)
Net investment income (loss)		111,182			(70,343	)		(81,931	)		(119,550	)		(275,168	)		(180,488	)		(253,388	)		(128,449	)
Realized gain (loss) on investments		(485,083	)		259,337			(1,531,846	)		(1,655,694	)		(1,043,320	)		598,193			1,866,922			(432,802	)
Change in unrealized gain (loss) on investments		(174,292	)		(325,989	)		(419,006	)		63,425			(522,510	)		(1,193,279	)		(2,539,477	)		(467,164	)
Net gain (loss) on investments		(659,375	)		(66,652	)		(1,950,852	)		(1,592,269	)		(1,565,830	)		(595,086	)		(672,555	)		(899,966	)
Reinvested capital gains		-			-			-			-			-			-			736,102			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(548,193	)		(136,995	)		(2,032,783	)		(1,711,819	)		(1,840,998	)		(775,574	)		(189,841	)		(1,028,415	)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENT OF OPERATIONS

Year Ended December 31, 2011

Investment Activity:	RVSCG			RVSCV			RVSDL			RTEC			RTEL			RTRF			RUTL			RVWDL
Reinvested dividends	$	-			-			-			-			20,589			-			149,008			-
Mortality and expense risk charges (note 2)		(115,758	)		(76,103	)		(33,136	)		(109,196	)		(27,881	)		(72,872	)		(115,303	)		(26,414	)
Net investment income (loss)		(115,758	)		(76,103	)		(33,136	)		(109,196	)		(7,292	)		(72,872	)		33,705			(26,414	)
Realized gain (loss) on investments		(329,201	)		457,039			(453,738	)		(557,516	)		(265,617	)		(495,033	)		595,590			(51,837	)
Change in unrealized gain (loss) on investments		(250,296	)		(384,120	)		114,474			(174,376	)		(16,237	)		(174,490	)		202,578			(54,413	)
Net gain (loss) on investments		(579,497	)		72,919			(339,264	)		(731,892	)		(281,854	)		(669,523	)		798,168			(106,250	)
Reinvested capital gains		-			-			-			298,007			58,446			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(695,255	)		(3,184	)		(372,400	)		(543,081	)		(230,700	)		(742,395	)		831,873			(132,664	)
Investment Activity:	VWHA			VWAR			WRASP			RVIRO
Reinvested dividends	$	-			-			217,195			-
Mortality and expense risk charges (note 2)		(6,998	)		(7,839	)		(295,565	)		(15,352	)
Net investment income (loss)		(6,998	)		(7,839	)		(78,370	)		(15,352	)
Realized gain (loss) on investments		(59,005	)		(493	)		717,761			45,052
Change in unrealized gain (loss) on investments		(101,136	)		(21,413	)		(2,851,794	)		(38,605	)
Net gain (loss) on investments		(160,141	)		(21,906	)		(2,134,033	)		6,447
Reinvested capital gains		-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations	$	(167,139	)		(29,745	)		(2,212,403	)		(8,905	)

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	Total						MLVGA3						CSCRS						MVGTAS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(3,186,626	)		(5,511,069	)		198,984			98,837			36,730			33,421			239			-
Realized gain (loss) on investments		(2,757,430	)		8,799,424			731,104			848			(92,481	)		52,469			(3,539	)		-
Change in unrealized gain (loss) on investments		(54,427,769	)		32,343,120			(2,964,673	)		1,170,134			(506,418	)		25,477			(121	)		-
Reinvested capital gains		7,433,025			2,560,365			560,633			104,974			-			-			375			-
Net increase (decrease) in contract owners’ equity resulting from operations		(52,938,800	)		38,191,840			(1,473,952	)		1,374,793			(562,169	)		111,367			(3,046	)		-
Equity transactions:
Purchase payments received from contract owners (note 3)		212,284,689			198,007,338			1,934,936			1,315,452			350,657			213,617			62,342			-
Transfers between funds		-			-			5,006,117			16,403,971			1,997,024			361,171			42,160			-
Redemptions (note 3)		(211,278,536	)		(183,843,567	)		(1,989,818	)		(641,960	)		(149,098	)		(67,487	)		(1,206	)		-
Annuity benefits		(65,070	)		(346,257	)		-			-			-			-			-			-
Contract maintenance charges (note 2)		(1,600	)		(1,721	)		-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(1,289,152	)		(1,584,182	)		(5,231	)		(2,339	)		(3,013	)		(14	)		-			-
Adjustments to maintain reserves		5,453			354,680			(347	)		(1,644	)		(3,174	)		32			(9	)		-
Net equity transactions		(344,216	)		12,586,291			4,945,657			17,073,480			2,192,396			507,319			103,287			-
Net change in contract owners’ equity		(53,283,016	)		50,778,131			3,471,705			18,448,273			1,630,227			618,686			100,241			-
Contract owners’ equity beginning of period		1,112,505,376			1,061,727,245			18,448,273			-			618,686			-			-			-
Contract owners’ equity end of period	$	1,059,222,360			1,112,505,376			21,919,978			18,448,273			2,248,913			618,686			100,241			-
CHANGES IN UNITS:
Beginning units		100,535,296			104,014,346			1,720,332			-			52,295			-			-			-
Units purchased		730,394,070			747,467,057			1,601,130			2,468,884			412,454			122,031			20,346			-
Units redeemed		(729,750,568	)		(750,946,107	)		(1,166,704	)		(748,552	)		(243,790	)		(69,736	)		(9,745	)		-
Ending units		101,178,798			100,535,296			2,154,758			1,720,332			220,959			52,295			10,601			-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	MSEMB					MSVGT2					VKVGR2					GVAAA2
	2011			2010		2011			2010		2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	2,122			-		(286	)		-		680			-		(3,616	)		-
Realized gain (loss) on investments		(40	)		-		(4,509	)		-		(6,956	)		-		(38,392	)		-
Change in unrealized gain (loss) on investments		11,007			-		665			-		(1,450	)		-		(2,685	)		-
Reinvested capital gains		1,572			-		-			-		-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		14,661			-		(4,130	)		-		(7,726	)		-		(44,693	)		-
Equity transactions:
Purchase payments received from contract owners (note 3)		206,012			-		31,916			-		15,261			-		95,224			-
Transfers between funds		189,877			-		28,870			-		77,177			-		838,546			-
Redemptions (note 3)		(22,977	)		-		(986	)		-		(161	)		-		(33,557	)		-
Annuity benefits		-			-		-			-		-			-		-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-		-			-
Contingent deferred sales charges (note 2)		(54	)		-		-			-		-			-		-			-
Adjustments to maintain reserves		(4	)		-		(5	)		-		1			-		(7	)		-
Net equity transactions		372,854			-		59,795			-		92,278			-		900,206			-
Net change in contract owners’ equity		387,515			-		55,665			-		84,552			-		855,513			-
Contract owners’ equity beginning of period		-			-		-			-		-			-		-			-
Contract owners’ equity end of period	$	387,515			-		55,665			-		84,552			-		855,513			-
CHANGES IN UNITS:
Beginning units		-			-		-			-		-			-		-			-
Units purchased		45,811			-		11,296			-		19,447			-		145,179			-
Units redeemed		(8,336	)		-		(5,018	)		-		(9,260	)		-		(53,612	)		-
Ending units		37,475			-		6,278			-		10,187			-		91,567			-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	HIBF3						GEM3						NVCRA2						NVCRB2
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	2,383,857			3,209,591			(17,420	)		(8,399	)		1,534			(13,505	)		9,814			(2,588	)
Realized gain (loss) on investments		1,064,524			7,217,672			54,867			39,527			3,041			160,324			31,550			14,452
Change in unrealized gain (loss) on investments		(906,506	)		(5,663,213	)		(486,648	)		154,569			(34,191	)		(8,808	)		(143,912	)		54,881
Reinvested capital gains		-			-			-			-			4,518			44,925			11,726			-
Net increase (decrease) in contract owners’ equity resulting from operations		2,541,875			4,764,050			(449,201	)		185,697			(25,098	)		182,936			(90,822	)		66,745
Equity transactions:
Purchase payments received from contract owners (note 3)		2,551,052			4,664,774			747,123			109,215			91,960			(310	)		312,379			100
Transfers between funds		4,398,471			1,219,438			(1,382,762	)		2,252,126			(285,587	)		633,668			1,151,545			971,103
Redemptions (note 3)		(4,792,581	)		(4,995,027	)		(159,525	)		(52,585	)		(53,994	)		(180,669	)		(382,834	)		(11,558	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(19,082	)		(15,310	)		(3,122	)		(1,359	)		-			-			(1,542	)		(76	)
Adjustments to maintain reserves		(291	)		(37	)		(595	)		(3	)		(17	)		(4	)		(50	)		(10	)
Net equity transactions		2,137,569			873,838			(798,881	)		2,307,394			(247,638	)		452,685			1,079,498			959,559
Net change in contract owners’ equity		4,679,444			5,637,888			(1,248,082	)		2,493,091			(272,736	)		635,621			988,676			1,026,304
Contract owners’ equity beginning of period		64,726,021			59,088,133			2,493,091			-			635,621			-			1,026,304			-
Contract owners’ equity end of period	$	69,405,465			64,726,021			1,245,009			2,493,091			362,885			635,621			2,014,980			1,026,304
CHANGES IN UNITS:
Beginning units		5,060,142			5,140,397			203,740			-			58,478			-			95,478			-
Units purchased		6,538,011			9,173,220			132,532			236,820			45,834			684,806			244,856			115,883
Units redeemed		(6,254,431	)		(9,253,475	)		(201,705	)		(33,080	)		(67,555	)		(626,328	)		(150,945	)		(20,405	)
Ending units		5,343,722			5,060,142			134,567			203,740			36,757			58,478			189,389			95,478

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

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)	$	9,927			(1,615	)		74,370			(7,649	)		31,771			(9,508	)		13,739			(4,247	)
Realized gain (loss) on investments		39,231			(19,807	)		76,319			35,500			147,121			50,644			44,355			23,205
Change in unrealized gain (loss) on investments		(207,743	)		89,786			(175,889	)		82,024			(366,713	)		200,738			(177,849	)		81,283
Reinvested capital gains		10,075			43			29,244			47,883			23,896			—			14,116			—
Net increase (decrease) in contract owners’ equity resulting from operations		(148,510	)		68,407			4,044			157,758			(163,925	)		241,874			(105,639	)		100,241
Equity transactions:
Purchase payments received from contract owners (note 3)		389,984			372,582			618,085			391,826			632,479			104,157			462,864			127,824
Transfers between funds		478,970			831,704			1,013,183			4,760,804			438,933			2,759,056			52,748			1,108,423
Redemptions (note 3)		(210,876	)		(67,964	)		(1,125,657	)		(147,779	)		(282,901	)		(96,131	)		(59,332	)		(6,931	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(1,732	)		(97	)		(3,255	)		(1,526	)		(744	)		(1,131	)		-			-
Adjustments to maintain reserves		(253	)		10			(91	)		(147	)		(108	)		(777	)		(35	)		(41	)
Net equity transactions		656,093			1,136,235			502,265			5,003,178			787,659			2,765,174			456,245			1,229,275
Net change in contract owners’ equity		507,583			1,204,642			506,309			5,160,936			623,734			3,007,048			350,606			1,329,516
Contract owners’ equity beginning of period		1,204,642			-			5,160,936			-			3,007,048			-			1,329,516			-
Contract owners’ equity end of period	$	1,712,225			1,204,642			5,667,245			5,160,936			3,630,782			3,007,048			1,680,122			1,329,516
CHANGES IN UNITS:
Beginning units		111,776			-			496,507			-			284,817			-			124,800			-
Units purchased		164,366			174,385			393,412			760,414			241,422			481,814			104,873			155,461
Units redeemed		(107,937	)		(62,609	)		(342,165	)		(263,907	)		(171,540	)		(196,997	)		(61,978	)		(30,661	)
Ending units		168,205			111,776			547,754			496,507			354,699			284,817			167,695			124,800

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	NVCMC2						NVLCP2					TRF3						GBF3
	2011			2010			2011			2010		2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	11,095			(4,163	)		15,531			-		297			(987	)		379,950			390,318
Realized gain (loss) on investments		40,679			68,965			4,135			-		8,744			(4,273	)		(321,821	)		277,618
Change in unrealized gain (loss) on investments		(89,708	)		63,591			9,403			-		(22,454	)		42,261			1,167,856			(1,042,905	)
Reinvested capital gains		8,076			1,951			2,594			-		-			-			72,498			1,021,276
Net increase (decrease) in contract owners’ equity resulting from operations		(29,858	)		130,344			31,663			-		(13,413	)		37,001			1,298,483			646,307
Equity transactions:
Purchase payments received from contract owners (note 3)		191,032			106,326			252,935			-		32,200			257			794,787			965,493
Transfers between funds		117,010			973,221			2,295,534			-		213,605			115,782			(1,734,135	)		8,072,335
Redemptions (note 3)		(68,473	)		(27,406	)		(120,943	)		-		(106,497	)		(147,047	)		(2,807,215	)		(3,968,930	)
Annuity benefits		-			-			-			-		-			-			-			(14,175	)
Contract maintenance charges (note 2)		-			-			-			-		-			-			-			-
Contingent deferred sales charges (note 2)		(25	)		(706	)		(10	)		-		(548	)		(36	)		(18,434	)		(28,543	)
Adjustments to maintain reserves		(51	)		(1	)		(12	)		-		(1,009	)		(943	)		(89	)		4
Net equity transactions		239,493			1,051,434			2,427,504			-		137,751			(31,987	)		(3,765,086	)		5,026,184
Net change in contract owners’ equity		209,635			1,181,778			2,459,167			-		124,338			5,014			(2,466,603	)		5,672,491
Contract owners’ equity beginning of period		1,181,778			-			-			-		290,504			285,490			27,039,696			21,367,205
Contract owners’ equity end of period	$	1,391,413			1,181,778			2,459,167			-		414,842			290,504			24,573,093			27,039,696
CHANGES IN UNITS:
Beginning units		111,604			-			-			-		25,101			27,729			2,020,667			1,651,392
Units purchased		79,605			354,923			625,757			-		28,545			22,394			883,738			1,976,913
Units redeemed		(55,319	)		(243,319	)		(385,899	)		-		(17,792	)		(25,022	)		(1,162,995	)		(1,607,638	)
Ending units		135,890			111,604			239,858			-		35,854			25,101			1,741,410			2,020,667

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	GVIDA6						NVDBL6						NVDCA6						GVIDC6
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	21,296			20,250			2,897			(511	)		(330	)		62			177,329			149,731
Realized gain (loss) on investments		396,540			(1,203,717	)		24,039			(377	)		21,825			4,415			154,581			278,896
Change in unrealized gain (loss) on investments		(591,416	)		1,809,260			(25,948	)		27,697			(31,889	)		18,254			(130,721	)		218,362
Reinvested capital gains		-			-			393			871			302			306			58,172			63,191
Net increase (decrease) in contract owners’ equity resulting from operations		(173,580	)		625,793			1,381			27,680			(10,092	)		23,037			259,361			710,180
Equity transactions:
Purchase payments received from contract owners (note 3)		167,533			266,111			75,932			24,000			93,243			—			565,715			1,215,572
Transfers between funds		125,994			(2,262,182	)		(191,828	)		532,793			224,198			266,349			1,251,325			5,619,111
Redemptions (note 3)		(663,058	)		(732,062	)		(27,274	)		(5,297	)		(13,609	)		(64,720	)		(2,383,636	)		(2,133,255	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(349	)		(6,768	)		(40	)		(26	)		(36	)		-			(16,427	)		(7,454	)
Adjustments to maintain reserves		(32	)		(152	)		(11	)		(4	)		(3	)		(11	)		(87	)		101
Net equity transactions		(369,912	)		(2,735,053	)		(143,221	)		551,466			303,793			201,618			(583,110	)		4,694,075
Net change in contract owners’ equity		(543,492	)		(2,109,260	)		(141,840	)		579,146			293,701			224,655			(323,749	)		5,404,255
Contract owners’ equity beginning of period		4,985,129			7,094,389			579,146			-			224,655			-			17,110,895			11,706,640
Contract owners’ equity end of period	$	4,441,637			4,985,129			437,306			579,146			518,356			224,655			16,787,146			17,110,895
CHANGES IN UNITS:
Beginning units		396,111			640,695			55,752			-			21,384			-			1,453,199			1,024,761
Units purchased		209,411			252,518			20,352			59,495			112,078			31,102			589,979			1,946,173
Units redeemed		(234,539	)		(497,102	)		(33,729	)		(3,743	)		(82,942	)		(9,718	)		(652,852	)		(1,517,735	)
Ending units		370,983			396,111			42,375			55,752			50,520			21,384			1,390,326			1,453,199

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	GVIDM6						GVDMA6						GVDMC6						SAM
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	155,297			124,324			51,729			50,524			138,316			98,104			(365	)		(512	)
Realized gain (loss) on investments		(414,825	)		(1,891,335	)		429,741			(1,284,744	)		514,820			80,706			-			-
Change in unrealized gain (loss) on investments		40,865			3,651,151			(737,834	)		2,181,158			(544,042	)		787,144			-			-
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(218,663	)		1,884,140			(256,364	)		946,938			109,094			965,954			(365	)		(512	)
Equity transactions:
Purchase payments received from contract owners (note 3)		812,745			925,175			34,620			242,281			441,715			343,264			-			-
Transfers between funds		2,588,328			3,017,694			(658,884	)		(828,758	)		725,278			6,189,088			-			66,271
Redemptions (note 3)		(3,027,884	)		(2,907,694	)		(1,215,847	)		(1,371,408	)		(2,213,663	)		(1,987,795	)		-			(37,477	)
Annuity benefits		(4,428	)		(734	)		-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			(46	)		(46	)
Contingent deferred sales charges (note 2)		(8,187	)		(6,865	)		(4,292	)		(14,253	)		(3,620	)		(8,566	)		-			-
Adjustments to maintain reserves		(28	)		(840	)		(57	)		831			(75	)		(24	)		6			(5	)
Net equity transactions		360,546			1,026,736			(1,844,460	)		(1,971,307	)		(1,050,365	)		4,535,967			(40	)		28,743
Net change in contract owners’ equity		141,883			2,910,876			(2,100,824	)		(1,024,369	)		(941,271	)		5,501,921			(405	)		28,231
Contract owners’ equity beginning of period		23,196,133			20,285,257			9,649,660			10,674,029			15,322,320			9,820,399			28,231			-
Contract owners’ equity end of period	$	23,338,016			23,196,133			7,548,836			9,649,660			14,381,049			15,322,320			27,826			28,231
CHANGES IN UNITS:
Beginning units		1,859,898			1,781,508			762,011			940,058			1,252,758			855,329			2,848			-
Units purchased		578,497			963,028			114,105			363,747			326,100			779,277			-			6,627
Units redeemed		(534,838	)		(884,638	)		(258,366	)		(541,794	)		(416,807	)		(381,848	)		(4	)		(3,779	)
Ending units		1,903,557			1,859,898			617,750			762,011			1,162,051			1,252,758			2,844			2,848

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	NVMIG6						GVDIV6						NVMLG2						NVMLV2
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(1,766	)		1,827			5,370			13,566			(5,215	)		(747	)		(1,033	)		(372	)
Realized gain (loss) on investments		56,627			14,371			29,510			16,862			(16,601	)		23,291			9,276			(598	)
Change in unrealized gain (loss) on investments		(234,695	)		66,693			(187,037	)		56,792			(14,368	)		(2,769	)		(40,246	)		27,229
Reinvested capital gains		-			-			-			-			-			4,323			14,739			10,015
Net increase (decrease) in contract owners’ equity resulting from operations		(179,834	)		82,891			(152,157	)		87,220			(36,184	)		24,098			(17,264	)		36,274
Equity transactions:
Purchase payments received from contract owners (note 3)		40,695			83,623			39,347			106,113			87,256			4,381			48,910			68,546
Transfers between funds		392,307			1,188,547			118,026			648,428			336,953			117,737			131,244			190,730
Redemptions (note 3)		(194,041	)		(25,495	)		(148,481	)		(3,070	)		(20,706	)		(21,348	)		(21,300	)		(1,469	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(798	)		(839	)		(576	)		-			(42	)		-			(25	)		(5	)
Adjustments to maintain reserves		33			(43	)		36			(16	)		(70	)		22			(36	)		4
Net equity transactions		238,196			1,245,793			8,352			751,455			403,391			100,792			158,793			257,806
Net change in contract owners’ equity		58,362			1,328,684			(143,805	)		838,675			367,207			124,890			141,529			294,080
Contract owners’ equity beginning of period		1,328,684			-			838,675			-			124,890			-			294,080			-
Contract owners’ equity end of period	$	1,387,046			1,328,684			694,870			838,675			492,097			124,890			435,609			294,080
CHANGES IN UNITS:
Beginning units		117,515			-			78,665			-			11,035			-			26,704			-
Units purchased		101,440			125,812			75,755			89,036			78,897			89,661			71,403			31,476
Units redeemed		(84,637	)		(8,297	)		(78,672	)		(10,371	)		(42,091	)		(78,626	)		(52,603	)		(4,772	)
Ending units		134,318			117,515			75,748			78,665			47,841			11,035			45,504			26,704

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	NVMMG1						NVMMG2						NVMMV2						SCGF3
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(6,050	)		(7,643	)		(20,500	)		(2,988	)		(2,127	)		585			(8,578	)		(3,495	)
Realized gain (loss) on investments		97,794			34,200			52,983			27,158			(1,606	)		21,110			71,907			2,375
Change in unrealized gain (loss) on investments		(106,874	)		105,018			(142,645	)		73,338			(65,049	)		11,904			(136,051	)		68,599
Reinvested capital gains		-			-			-			-			2,673			8,646			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(15,130	)		131,575			(110,162	)		97,508			(66,109	)		42,245			(72,722	)		67,479
Equity transactions:
Purchase payments received from contract owners (note 3)		1,571			257			232,449			3,127			45,286			2,694			133,481			10,244
Transfers between funds		(35,042	)		(39,329	)		406,934			1,294,514			453,093			236,721			49,905			217,867
Redemptions (note 3)		(216,857	)		(83,236	)		(239,808	)		(77,608	)		(20,989	)		(86,848	)		(123,810	)		(5,526	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(585	)		(36	)		(2,841	)		(1,277	)		(49	)		(528	)		(1,618	)		(14	)
Adjustments to maintain reserves		(10	)		(286	)		(55	)		(22	)		(40	)		(6	)		44			(13	)
Net equity transactions		(250,923	)		(122,630	)		396,679			1,218,734			477,301			152,033			58,002			222,558
Net change in contract owners’ equity		(266,053	)		8,945			286,517			1,316,242			411,192			194,278			(14,720	)		290,037
Contract owners’ equity beginning of period		615,744			606,799			1,316,242			-			194,278			-			530,351			240,314
Contract owners’ equity end of period	$	349,691			615,744			1,602,759			1,316,242			605,470			194,278			515,631			530,351
CHANGES IN UNITS:
Beginning units		40,034			51,431			114,607			-			17,489			-			51,624			28,923
Units purchased		170			3,524			205,739			139,227			84,438			40,348			76,122			39,264
Units redeemed		(16,165	)		(14,921	)		(172,268	)		(24,620	)		(44,284	)		(22,859	)		(76,604	)		(16,563	)
Ending units		24,039			40,034			148,078			114,607			57,643			17,489			51,142			51,624

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	SCVF3						SCF3						NVSTB2					NVMM2
	2011			2010			2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	(8,053	)		(5,611	)		(24,176	)		(23,133	)		16,648			—		(3,535,661	)		(3,977,042	)
Realized gain (loss) on investments		102,781			(38,222	)		277,992			17,530			(8,906	)		—		—			—
Change in unrealized gain (loss) on investments		(160,302	)		243,428			(443,592	)		492,456			(31,491	)		—		—			—
Reinvested capital gains		-			-			-			-			-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(65,574	)		199,595			(189,776	)		486,853			(23,749	)		-		(3,535,661	)		(3,977,042	)
Equity transactions:
Purchase payments received from contract owners (note 3)		70,158			3,833			52,136			126,468			485,911			-		148,939,725			139,662,320
Transfers between funds		(289,594	)		446,929			179,793			403,464			4,499,435			-		(31,457,216	)		(118,155,190	)
Redemptions (note 3)		(108,417	)		(77,403	)		(408,357	)		(215,223	)		(536,769	)		-		(97,004,501	)		(68,330,152	)
Annuity benefits		-			-			-			-			-			-		(2,037	)		(210,927	)
Contract maintenance charges (note 2)		-			-			-			-			-			-		-			-
Contingent deferred sales charges (note 2)		(398	)		(75	)		(1,754	)		(2,256	)		(4,270	)		-		(367,406	)		(614,568	)
Adjustments to maintain reserves		(525	)		(62	)		(4	)		(117	)		(44	)		-		(218	)		30,842
Net equity transactions		(328,776	)		373,222			(178,186	)		312,336			4,444,263			-		20,108,347			(47,617,675	)
Net change in contract owners’ equity		(394,350	)		572,817			(367,962	)		799,189			4,420,514			-		16,572,686			(51,594,717	)
Contract owners’ equity beginning of period		1,052,882			480,065			2,892,144			2,092,955			-			-		218,481,379			270,076,096
Contract owners’ equity end of period	$	658,532			1,052,882			2,524,182			2,892,144			4,420,514			-		235,054,065			218,481,379
CHANGES IN UNITS:
Beginning units		73,763			41,827			182,582			163,471			-			-		22,180,368			27,007,244
Units purchased		18,586			72,738			78,169			129,044			876,298			-		200,205,019			162,610,336
Units redeemed		(43,188	)		(40,802	)		(88,787	)		(109,933	)		(432,590	)		-		(198,175,033	)		(167,437,212	)
Ending units		49,161			73,763			171,964			182,582			443,708			-		24,210,354			22,180,368

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	ALVBWB					ACVIG3						ACVIP2					ACVU3
	2011			2010		2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	(251	)		-		7,507			4,701			59,692			-		(7,637	)		(6,337	)
Realized gain (loss) on investments		(1,347	)		-		(11,403	)		(674,547	)		122,332			-		76,258			(145,264	)
Change in unrealized gain (loss) on investments		648			-		47,090			1,100,033			26,251			-		(54,960	)		235,809
Reinvested capital gains		-			-		-			-			-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(950	)		-		43,194			430,187			208,275			-		13,661			84,208
Equity transactions:
Purchase payments received from contract owners (note 3)		33,530			-		312,498			321,117			874,106			-		23			-
Transfers between funds		23,956			-		25,639			1,028,940			5,822,742			-		(209,210	)		(6,354	)
Redemptions (note 3)		(1,417	)		-		(619,627	)		(658,040	)		(631,652	)		-		(171,431	)		(117,305	)
Annuity benefits		-			-		-			(1,461	)		-			-		-			-
Contract maintenance charges (note 2)		-			-		-			-			-			-		-			-
Contingent deferred sales charges (note 2)		-			-		(3,750	)		(2,288	)		(3,697	)		-		(4,208	)		(249	)
Adjustments to maintain reserves		2			-		(52	)		(2	)		(43	)		-		(45	)		(19	)
Net equity transactions		56,071			-		(285,292	)		688,266			6,061,456			-		(384,871	)		(123,927	)
Net change in contract owners’ equity		55,121			-		(242,098	)		1,118,453			6,269,731			-		(371,210	)		(39,719	)
Contract owners’ equity beginning of period		-			-		4,454,959			3,336,506			-			-		819,374			859,093
Contract owners’ equity end of period	$	55,121			-		4,212,861			4,454,959			6,269,731			-		448,164			819,374
CHANGES IN UNITS:
Beginning units		-			-		383,684			324,541			-			-		76,358			91,946
Units purchased		10,325			-		140,698			213,356			928,752			-		7,560			17,664
Units redeemed		(4,254	)		-		(166,964	)		(154,213	)		(339,999	)		-		(42,046	)		(33,252	)
Ending units		6,071			-		357,418			383,684			588,753			-		41,872			76,358

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	ACVV3						FQB						FAM2					FC2R
	2011			2010			2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	40,074			52,744			183			(45	)		11,857			-		(62,833	)		(54,448	)
Realized gain (loss) on investments		518,925			(64,880	)		3			3			(2,487	)		-		(107,088	)		(1,530,611	)
Change in unrealized gain (loss) on investments		(686,987	)		640,960			(140	)		233			(34,906	)		-		(184,986	)		2,884,399
Reinvested capital gains		-			-			-			-			3,591			-		-			4,333
Net increase (decrease) in contract owners’ equity resulting from operations		(127,988	)		628,824			46			191			(21,945	)		-		(354,907	)		1,303,673
Equity transactions:
Purchase payments received from contract owners (note 3)		265,536			571,701			-			-			101,511			-		3,346			162,730
Transfers between funds		(827,326	)		1,599,490			-			4,551			677,342			-		(786,016	)		(1,573,979	)
Redemptions (note 3)		(1,125,641	)		(916,144	)		-			-			(2,662	)		-		(1,586,016	)		(1,990,301	)
Annuity benefits		-			(1,804	)		-			-			-			-		-			(1,970	)
Contract maintenance charges (note 2)		-			-			(12	)		(12	)		-			-		-			-
Contingent deferred sales charges (note 2)		(11,962	)		(5,881	)		-			-			-			-		(8,986	)		(8,082	)
Adjustments to maintain reserves		(117	)		(987	)		10			(5	)		8			-		(72	)		1,525
Net equity transactions		(1,699,510	)		1,246,375			(2	)		4,534			776,199			-		(2,377,744	)		(3,410,077	)
Net change in contract owners’ equity		(1,827,498	)		1,875,199			44			4,725			754,254			-		(2,732,651	)		(2,106,404	)
Contract owners’ equity beginning of period		7,598,957			5,723,758			4,725			-			-			-		10,272,180			12,378,584
Contract owners’ equity end of period	$	5,771,459			7,598,957			4,769			4,725			754,254			-		7,539,529			10,272,180
CHANGES IN UNITS:
Beginning units		569,497			481,074			303			-			-			-		651,814			908,969
Units purchased		161,606			444,244			-			304			85,783			-		106,263			216,637
Units redeemed		(297,370	)		(355,821	)		-			(1	)		(2,780	)		-		(260,690	)		(473,792	)
Ending units		433,733			569,497			303			303			83,003			-		497,387			651,814

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	FEI2R						FG2R						FTVFA2						SBTRP
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	20,970			2,486			(72,910	)		(52,137	)		(24,564	)		20,139			25			146
Realized gain (loss) on investments		307,320			(1,871,171	)		990,261			(201,505	)		96,671			4,594			(49	)		(89	)
Change in unrealized gain (loss) on investments		(470,169	)		2,332,002			(1,075,246	)		1,132,001			(184,476	)		101,826			(2,620	)		4,622
Reinvested capital gains		-			-			19,393			15,509			-			109			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(141,879	)		463,317			(138,502	)		893,868			(112,369	)		126,668			(2,644	)		4,679
Equity transactions:
Purchase payments received from contract owners (note 3)		284,939			64,268			485,612			72,722			370,537			335,391			-			-
Transfers between funds		(494,683	)		576,496			12,840			1,286,787			406,338			1,111,222			-			-
Redemptions (note 3)		(1,001,264	)		(1,041,057	)		(867,072	)		(579,559	)		(180,978	)		(40,125	)		-			-
Annuity benefits		-			(1,649	)		-			(1,716	)		-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			(11	)		(11	)
Contingent deferred sales charges (note 2)		(7,866	)		(7,433	)		(7,275	)		(4,722	)		(1,021	)		(52	)		-			-
Adjustments to maintain reserves		(68	)		(195	)		(100	)		105			(82	)		(27	)		(14	)		12
Net equity transactions		(1,218,942	)		(409,570	)		(375,995	)		773,617			594,794			1,406,409			(25	)		1
Net change in contract owners’ equity		(1,360,821	)		53,747			(514,497	)		1,667,485			482,425			1,533,077			(2,669	)		4,680
Contract owners’ equity beginning of period		5,056,213			5,002,466			5,606,178			3,938,693			1,533,077			-			35,696			31,016
Contract owners’ equity end of period	$	3,695,392			5,056,213			5,091,681			5,606,178			2,015,502			1,533,077			33,027			35,696
CHANGES IN UNITS:
Beginning units		437,403			489,408			518,503			445,278			143,063			-			1,436			1,436
Units purchased		187,082			329,560			447,499			380,946			175,433			181,962			-			-
Units redeemed		(302,860	)		(381,565	)		(490,066	)		(307,721	)		(123,777	)		(38,899	)		(1	)		-
Ending units		321,625			437,403			475,936			518,503			194,719			143,063			1,435			1,436

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	SBVI						SBIEP						PMVAAD					PMVFAD
	2011			2010			2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	18,079			30,952			7,432			425			107,731			-		26,098			112
Realized gain (loss) on investments		(35,598	)		(49,866	)		(3,022	)		(2,846	)		(39,535	)		-		118,750			112,728
Change in unrealized gain (loss) on investments		86,116			163,549			(17,034	)		5,132			(27,978	)		-		8,471			(1,248	)
Reinvested capital gains		-			-			-			-			-			-		17,045			16,383
Net increase (decrease) in contract owners’ equity resulting from operations		68,597			144,635			(12,624	)		2,711			40,218			-		170,364			127,975
Equity transactions:
Purchase payments received from contract owners (note 3)		-			-			-			-			312,185			-		453,464			193,158
Transfers between funds		-			2,063			-			20,284			3,637,042			-		3,580,331			1,918,649
Redemptions (note 3)		(94,119	)		(92,306	)		-			-			(127,397	)		-		(317,307	)		(54,290	)
Annuity benefits		-			-			-			-			-			-		-			-
Contract maintenance charges (note 2)		(1,502	)		(1,525	)		(29	)		(30	)		-			-		-			-
Contingent deferred sales charges (note 2)		-			-			-			-			(14	)		-		(49	)		(125	)
Adjustments to maintain reserves		(3	)		7			2			1			(7	)		-		(487	)		(116	)
Net equity transactions		(95,624	)		(91,761	)		(27	)		20,255			3,821,809			-		3,715,952			2,057,276
Net change in contract owners’ equity		(27,027	)		52,874			(12,651	)		22,966			3,862,027			-		3,886,316			2,185,251
Contract owners’ equity beginning of period		1,959,085			1,906,211			99,160			76,194			-			-		2,185,251			-
Contract owners’ equity end of period	$	1,932,058			1,959,085			86,509			99,160			3,862,027			-		6,071,567			2,185,251
CHANGES IN UNITS:
Beginning units		238,143			250,350			8,402			6,609			-			-		198,651			-
Units purchased		-			258			-			1,796			483,162			-		659,369			366,882
Units redeemed		(11,427	)		(12,465	)		(2	)		(3	)		(77,964	)		-		(340,993	)		(168,231	)
Ending units		226,716			238,143			8,400			8,402			405,198			-		517,027			198,651

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PMVLAD					PMVTRD					PMVRSD						PMVEBD
	2011			2010		2011			2010		2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(3,479	)		-		41,573			-		595,166			179,243			255,710			114,421
Realized gain (loss) on investments		(116,712	)		-		(77,465	)		-		38,216			101,012			(102,743	)		327,520
Change in unrealized gain (loss) on investments		(4,710	)		-		(90,713	)		-		(1,060,846	)		299,057			131,701			(128,985	)
Reinvested capital gains		-			-		138,781			-		-			68,847			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(124,901	)		-		12,176			-		(427,464	)		648,159			284,668			312,956
Equity transactions:
Purchase payments received from contract owners (note 3)		1,390,642			-		1,677,214			-		574,322			214,221			678,110			518,550
Transfers between funds		4,844,932			-		8,694,047			-		(651,009	)		3,817,549			1,042,670			5,515,494
Redemptions (note 3)		(410,745	)		-		(504,349	)		-		(570,208	)		(128,131	)		(610,903	)		(247,901	)
Annuity benefits		-			-		-			-		-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-			-			-
Contingent deferred sales charges (note 2)		(8,060	)		-		(6,587	)		-		(6,659	)		(1,046	)		(4,192	)		(3,891	)
Adjustments to maintain reserves		(541	)		-		(1,398	)		-		(278	)		(33,279	)		(489	)		(1,558	)
Net equity transactions		5,816,228			-		9,858,927			-		(653,832	)		3,869,314			1,105,196			5,780,694
Net change in contract owners’ equity		5,691,327			-		9,871,103			-		(1,081,296	)		4,517,473			1,389,864			6,093,650
Contract owners’ equity beginning of period		-			-		-			-		4,517,473			-			6,093,650			-
Contract owners’ equity end of period	$	5,691,327			-		9,871,103			-		3,436,177			4,517,473			7,483,514			6,093,650
CHANGES IN UNITS:
Beginning units		-			-		-			-		368,568			-			574,766			-
Units purchased		1,514,121			-		1,833,662			-		478,028			546,874			945,124			1,310,176
Units redeemed		(933,816	)		-		(846,346	)		-		(539,342	)		(178,306	)		(845,781	)		(735,410	)
Ending units		580,305			-		987,316			-		307,254			368,568			674,109			574,766

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PMVGBD						PMVHYD						PIVEM2						PIHYB2
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	108,741			33,776			835,268			272,095			(71,177	)		(31,165	)		148,575			40,171
Realized gain (loss) on investments		296,597			228,666			(165,135	)		235,771			(267,397	)		418,055			(491,904	)		138,990
Change in unrealized gain (loss) on investments		(203,325	)		(111,071	)		376,379			99,800			(979,820	)		319,348			(35,488	)		88,290
Reinvested capital gains		196,162			125,535			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		398,175			276,906			1,046,512			607,666			(1,318,394	)		706,238			(378,817	)		267,451
Equity transactions:
Purchase payments received from contract owners (note 3)		1,022,586			673,063			1,558,223			337,270			693,016			358,239			420,118			90,508
Transfers between funds		1,672,412			4,636,024			41,356,322			11,084,623			(2,414,207	)		5,969,932			2,590,649			3,175,839
Redemptions (note 3)		(1,013,423	)		(279,325	)		(1,448,272	)		(303,829	)		(293,159	)		(192,309	)		(400,317	)		(262,145	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(5,716	)		(2,006	)		(13,794	)		(3,523	)		(2,662	)		(2,099	)		(3,905	)		(5,324	)
Adjustments to maintain reserves		(347	)		(813	)		(18,023	)		(4,112	)		(852	)		(78	)		1,784			709
Net equity transactions		1,675,512			5,026,943			41,434,456			11,110,429			(2,017,864	)		6,133,685			2,608,329			2,999,587
Net change in contract owners’ equity		2,073,687			5,303,849			42,480,968			11,718,095			(3,336,258	)		6,839,923			2,229,512			3,267,038
Contract owners’ equity beginning of period		5,303,849			-			11,718,095			-			6,839,923			-			3,267,038			-
Contract owners’ equity end of period	$	7,377,536			5,303,849			54,199,063			11,718,095			3,503,665			6,839,923			5,496,550			3,267,038
CHANGES IN UNITS:
Beginning units		486,960			-			1,107,488			-			611,121			-			286,132			-
Units purchased		1,293,930			905,599			9,976,608			2,536,709			505,677			1,316,255			2,755,645			724,379
Units redeemed		(1,141,613	)		(418,639	)		(6,043,816	)		(1,429,221	)		(701,378	)		(705,134	)		(2,522,369	)		(438,247	)
Ending units		639,277			486,960			5,040,280			1,107,488			415,420			611,121			519,408			286,132

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROUSN						PROAHY						PROA30						PROBNK
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(12,780	)		(8,877	)		(21,921	)		56,760			(22,465	)		(10,567	)		(1,845	)		-
Realized gain (loss) on investments		(401,180	)		(691,485	)		(801,398	)		306,723			(373,138	)		99,400			(55,521	)		-
Change in unrealized gain (loss) on investments		2,043			900			(47,458	)		86,753			(79,490	)		15,406			1,232			-
Reinvested capital gains		-			-			215,264			-			80,266			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(411,917	)		(699,462	)		(655,513	)		450,236			(394,827	)		104,239			(56,134	)		-
Equity transactions:
Purchase payments received from contract owners (note 3)		41,079			26,203			108,767			43,687			301,005			131,865			4,721			-
Transfers between funds		866,931			823,272			(996,635	)		5,836,710			(3,753,553	)		5,214,420			202,886			-
Redemptions (note 3)		(15,146	)		(72,647	)		(681,599	)		(270,856	)		(111,074	)		(110,247	)		(95	)		-
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		-			(5,192	)		(13,141	)		(3,740	)		(1,560	)		(1,311	)		(1	)		-
Adjustments to maintain reserves		(14	)		1,095			(161	)		(489	)		(172	)		(59	)		(10	)		-
Net equity transactions		892,850			772,731			(1,582,769	)		5,605,312			(3,565,354	)		5,234,668			207,501			-
Net change in contract owners’ equity		480,933			73,269			(2,238,282	)		6,055,548			(3,960,181	)		5,338,907			151,367			-
Contract owners’ equity beginning of period		73,269			-			6,055,548			-			5,338,907			-			-			-
Contract owners’ equity end of period	$	554,202			73,269			3,817,266			6,055,548			1,378,726			5,338,907			151,367			-
CHANGES IN UNITS:
Beginning units		9,963			-			556,884			-			480,729			-			-			-
Units purchased		10,234,578			2,873,612			9,804,760			3,011,140			1,335,719			1,299,209			1,291,652			-
Units redeemed		(10,145,528	)		(2,863,649	)		(10,015,599	)		(2,454,256	)		(1,643,992	)		(818,480	)		(1,271,328	)		-
Ending units		99,013			9,963			346,045			556,884			172,456			480,729			20,324			-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROBM					PROBR						PROBIO					PROBL
	2011			2010		2011			2010			2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	(2,009	)		-		(24,006	)		(20,451	)		(2,020	)		-		(95,026	)		(28,022	)
Realized gain (loss) on investments		(77,457	)		-		(315,446	)		(338,070	)		(50,598	)		-		(361,956	)		346,611
Change in unrealized gain (loss) on investments		(16,750	)		-		117,772			(179,742	)		6,382			-		18,313			(1,777	)
Reinvested capital gains		-			-		-			-			-			-		92,281			-
Net increase (decrease) in contract owners’ equity resulting from operations		(96,216	)		-		(221,680	)		(538,263	)		(46,236	)		-		(346,388	)		316,812
Equity transactions:
Purchase payments received from contract owners (note 3)		18,817			-		263,167			24,652			59,664			-		427,308			968,540
Transfers between funds		497,332			-		(1,161,198	)		3,950,141			115,991			-		4,891,963			3,017,614
Redemptions (note 3)		(21,072	)		-		(320,158	)		(85,830	)		(5,508	)		-		(1,172,530	)		(334,733	)
Annuity benefits		-			-		-			-			-			-		-			-
Contract maintenance charges (note 2)		-			-		-			-			-			-		-			-
Contingent deferred sales charges (note 2)		(15	)		-		(1,790	)		(2,449	)		(3	)		-		(54,057	)		(17,398	)
Adjustments to maintain reserves		(16	)		-		(15	)		7,154			(4	)		-		(551	)		(19,488	)
Net equity transactions		495,046			-		(1,219,994	)		3,893,668			170,140			-		4,092,133			3,614,535
Net change in contract owners’ equity		398,830			-		(1,441,674	)		3,355,405			123,904			-		3,745,745			3,931,347
Contract owners’ equity beginning of period		-			-		3,355,405			-			-			-		3,931,347			-
Contract owners’ equity end of period	$	398,830			-		1,913,731			3,355,405			123,904			-		7,677,092			3,931,347
CHANGES IN UNITS:
Beginning units		-			-		373,984			-			-			-		380,000			-
Units purchased		262,408			-		3,168,037			1,772,129			379,515			-		13,435,098			4,560,968
Units redeemed		(210,675	)		-		(3,306,467	)		(1,398,145	)		(366,255	)		-		(13,059,880	)		(4,180,968	)
Ending units		51,733			-		235,554			373,984			13,260			-		755,218			380,000

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROCG					PROCS					PROEM						PROE30
	2011			2010		2011			2010		2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(1,910	)		-		(1,426	)		-		(55,214	)		(35,386	)		(2,150	)		116
Realized gain (loss) on investments		(38,128	)		-		(5,499	)		-		(530,056	)		559,756			(71,813	)		(31,649	)
Change in unrealized gain (loss) on investments		6,009			-		1,739			-		(427,949	)		228,699			1,880			836
Reinvested capital gains		-			-		-			-		-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(34,029	)		-		(5,186	)		-		(1,013,219	)		753,069			(72,083	)		(30,697	)
Equity transactions:
Purchase payments received from contract owners (note 3)		88,899			-		82,595			-		353,202			456,298			4,771			7,396
Transfers between funds		220,546			-		472,225			-		(2,530,181	)		5,873,702			152,086			194,330
Redemptions (note 3)		(25,594	)		-		(4,965	)		-		(418,503	)		(254,038	)		(56,482	)		(33,915	)
Annuity benefits		-			-		-			-		-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-			-			-
Contingent deferred sales charges (note 2)		(542	)		-		(33	)		-		(5,426	)		(3,438	)		(1,711	)		(165	)
Adjustments to maintain reserves		(23	)		-		(14	)		-		77			(618	)		(28	)		(183	)
Net equity transactions		283,286			-		549,808			-		(2,600,831	)		6,071,906			98,636			167,463
Net change in contract owners’ equity		249,257			-		544,622			-		(3,614,050	)		6,824,975			26,553			136,766
Contract owners’ equity beginning of period		-			-		-			-		6,824,975			-			136,766			-
Contract owners’ equity end of period	$	249,257			-		544,622			-		3,210,925			6,824,975			163,319			136,766
CHANGES IN UNITS:
Beginning units		-			-		-			-		620,286			-			12,935			-
Units purchased		145,429			-		134,774			-		3,138,377			2,235,942			485,469			432,023
Units redeemed		(120,192	)		-		(78,152	)		-		(3,390,196	)		(1,615,656	)		(481,138	)		(419,088	)
Ending units		25,237			-		56,622			-		368,467			620,286			17,266			12,935

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROFIN					PROHC					PROIND					PROINT
	2011			2010		2011			2010		2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	(1,222	)		-		(4,402	)		-		(5,871	)		-		(45,726	)		(9,089	)
Realized gain (loss) on investments		25,537			-		(80,300	)		-		(50,068	)		-		(454,196	)		34,419
Change in unrealized gain (loss) on investments		3,728			-		6,169			-		(604	)		-		(160,194	)		65,322
Reinvested capital gains		-			-		-			-		-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		28,043			-		(78,533	)		-		(56,543	)		-		(660,116	)		90,652
Equity transactions:
Purchase payments received from contract owners (note 3)		16,422			-		119,016			-		18,508			-		154,863			16,373
Transfers between funds		118,404			-		514,008			-		894,157			-		670,686			2,508,419
Redemptions (note 3)		(1,643	)		-		(27,129	)		-		(14,135	)		-		(315,146	)		(55,856	)
Annuity benefits		-			-		-			-		-			-		-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-		-			-
Contingent deferred sales charges (note 2)		(4	)		-		(527	)		-		(45	)		-		(4,612	)		(515	)
Adjustments to maintain reserves		3			-		(20	)		-		(13	)		-		78			(31	)
Net equity transactions		133,182			-		605,348			-		898,472			-		505,869			2,468,390
Net change in contract owners’ equity		161,225			-		526,815			-		841,929			-		(154,247	)		2,559,042
Contract owners’ equity beginning of period		-			-		-			-		-			-		2,559,042			-
Contract owners’ equity end of period	$	161,225			-		526,815			-		841,929			-		2,404,795			2,559,042
CHANGES IN UNITS:
Beginning units		-			-		-			-		-			-		235,682			-
Units purchased		419,648			-		367,772			-		365,693			-		862,810			604,594
Units redeemed		(400,110	)		-		(312,843	)		-		(269,067	)		-		(835,969	)		(368,912	)
Ending units		19,538			-		54,929			-		96,626			-		262,523			235,682

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PRONET					PROJP						PRON						PROOG
	2011			2010		2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(690	)		-		(5,292	)		(1,440	)		(25,428	)		(11,968	)		(57,059	)		(11,493	)
Realized gain (loss) on investments		(30,087	)		-		(139,175	)		(42,642	)		(126,469	)		123,273			629,174			104,832
Change in unrealized gain (loss) on investments		(1,165	)		-		(16,842	)		(167	)		446			13,293			(170,139	)		231,347
Reinvested capital gains		-			-		-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(31,942	)		-		(161,309	)		(44,249	)		(151,451	)		124,598			401,976			324,686
Equity transactions:
Purchase payments received from contract owners (note 3)		40,629			-		4,299			19			236,326			354,603			765,995			268,603
Transfers between funds		76,783			-		(77,494	)		539,195			1,362,318			1,023,338			(3,571,044	)		5,450,093
Redemptions (note 3)		(2,294	)		-		(10,926	)		(2,643	)		(241,545	)		(74,332	)		(316,209	)		(57,209	)
Annuity benefits		-			-		-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-			-			-			-			-
Contingent deferred sales charges (note 2)		-			-		(401	)		(6	)		(324	)		(1,753	)		(2,780	)		(279	)
Adjustments to maintain reserves		(10	)		-		(8	)		(11	)		(143	)		(3,534	)		295			(21,542	)
Net equity transactions		115,108			-		(84,530	)		536,554			1,356,632			1,298,322			(3,123,743	)		5,639,666
Net change in contract owners’ equity		83,166			-		(245,839	)		492,305			1,205,181			1,422,920			(2,721,767	)		5,964,352
Contract owners’ equity beginning of period		-			-		492,305			-			1,422,920			-			5,964,352			-
Contract owners’ equity end of period	$	83,166			-		246,466			492,305			2,628,101			1,422,920			3,242,585			5,964,352
CHANGES IN UNITS:
Beginning units		-			-		55,182			-			132,411			-			539,567			-
Units purchased		127,111			-		1,503,413			1,450,528			3,584,418			2,007,380			1,366,942			930,247
Units redeemed		(117,270	)		-		(1,524,189	)		(1,395,346	)		(3,472,528	)		(1,874,969	)		(1,615,177	)		(390,680	)
Ending units		9,841			-		34,406			55,182			244,301			132,411			291,332			539,567

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROPHR					PROPM					PRORE					PRORRO
	2011			2010		2011			2010		2011			2010		2011			2010
Investment activity:
Net investment income (loss)	$	(5,860	)		-		(28,442	)		-		(3,676	)		-		(27,125	)		(6,973	)
Realized gain (loss) on investments		(40,105	)		-		(342,156	)		-		(119,485	)		-		(915,760	)		158,367
Change in unrealized gain (loss) on investments		57,216			-		(245,327	)		-		13,663			-		50,818			(53,527	)
Reinvested capital gains		-			-		-			-		-			-		-			-
Net increase (decrease) in contract owners’ equity resulting from operations		11,251			-		(615,925	)		-		(109,498	)		-		(892,067	)		97,867
Equity transactions:
Purchase payments received from contract owners (note 3)		18,416			-		1,530,410			-		161,724			-		92,979			216,745
Transfers between funds		2,944,699			-		2,395,848			-		372,035			-		(904,308	)		2,470,867
Redemptions (note 3)		(15,586	)		-		(110,368	)		-		(3,773	)		-		(298,696	)		(257,026	)
Annuity benefits		-			-		-			-		-			-		-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-		-			-
Contingent deferred sales charges (note 2)		(36	)		-		(1,229	)		-		(1	)		-		(5,644	)		(11,144	)
Adjustments to maintain reserves		(21	)		-		(19	)		-		(20	)		-		(125	)		(1,401	)
Net equity transactions		2,947,472			-		3,814,642			-		529,965			-		(1,115,794	)		2,418,041
Net change in contract owners’ equity		2,958,723			-		3,198,717			-		420,467			-		(2,007,861	)		2,515,908
Contract owners’ equity beginning of period		-			-		-			-		-			-		2,515,908			-
Contract owners’ equity end of period	$	2,958,723			-		3,198,717			-		420,467			-		508,047			2,515,908
CHANGES IN UNITS:
Beginning units		-			-		-			-		-			-		285,625			-
Units purchased		462,497			-		2,344,951			-		603,820			-		12,344,445			1,401,241
Units redeemed		(177,582	)		-		(1,958,417	)		-		(558,430	)		-		(12,536,182	)		(1,115,616	)
Ending units		284,915			-		386,534			-		45,390			-		93,888			285,625

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROSCN					PROSEM						PROSIN						PROSN
	2011			2010		2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(815	)		-		(9,152	)		(5,691	)		(13,201	)		(3,487	)		(9,983	)		(9,381	)
Realized gain (loss) on investments		(43,900	)		-		(138,074	)		(112,451	)		(223,391	)		(86,569	)		(68,680	)		(279,184	)
Change in unrealized gain (loss) on investments		(3,232	)		-		28,769			(15,383	)		(15,407	)		(373	)		7,301			(11,873	)
Reinvested capital gains		-			-		-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(47,947	)		-		(118,457	)		(133,525	)		(251,999	)		(90,429	)		(71,362	)		(300,438	)
Equity transactions:
Purchase payments received from contract owners (note 3)		5,929			-		4,457			1,307			45,137			19,236			40,496			13,176
Transfers between funds		191,780			-		637,885			482,535			1,593,184			99,936			(156,523	)		1,132,387
Redemptions (note 3)		(20,102	)		-		(68,830	)		(9,511	)		(28,956	)		(5,101	)		(49,085	)		(57,235	)
Annuity benefits		-			-		-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(5	)		-		(970	)		(342	)		(1	)		(21	)		(977	)		(1,313	)
Adjustments to maintain reserves		-			-		1,789			(2,100	)		205			1,526			28			(19	)
Net equity transactions		177,602			-		574,331			471,889			1,609,569			115,576			(166,061	)		1,086,996
Net change in contract owners’ equity		129,655			-		455,874			338,364			1,357,570			25,147			(237,423	)		786,558
Contract owners’ equity beginning of period		-			-		338,364			-			25,147			-			786,558			-
Contract owners’ equity end of period	$	129,655			-		794,238			338,364			1,382,717			25,147			549,135			786,558
CHANGES IN UNITS:
Beginning units		-			-		40,731			-			2,950			-			90,870			-
Units purchased		238,601			-		2,429,501			1,327,708			1,990,893			806,862			2,337,999			955,144
Units redeemed		(223,858	)		-		(2,382,413	)		(1,286,977	)		(1,831,433	)		(803,912	)		(2,356,559	)		(864,274	)
Ending units		14,743			-		87,819			40,731			162,410			2,950			72,310			90,870

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROTEC					PROTEL					PROGVP						PROUN
	2011			2010		2011			2010		2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(6,099	)		-		(931	)		-		(36,560	)		(20,391	)		(17,209	)		(7,057	)
Realized gain (loss) on investments		(33,197	)		-		(12,560	)		-		1,296,033			(299,122	)		(166,893	)		254,525
Change in unrealized gain (loss) on investments		(21,619	)		-		141			-		77,699			25,396			(38,936	)		(5,330	)
Reinvested capital gains		-			-		-			-		-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(60,915	)		-		(13,350	)		-		1,337,172			(294,117	)		(223,038	)		242,138
Equity transactions:
Purchase payments received from contract owners (note 3)		193,314			-		18,373			-		138,380			414,833			231,383			7,370
Transfers between funds		890,320			-		30,090			-		244,269			2,549,110			1,241,694			410,245
Redemptions (note 3)		(29,958	)		-		-			-		(490,560	)		(607,419	)		(83,611	)		(33,607	)
Annuity benefits		-			-		-			-		-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-		-			-			-			-
Contingent deferred sales charges (note 2)		(278	)		-		-			-		(1,401	)		(5,267	)		(836	)		(856	)
Adjustments to maintain reserves		(34	)		-		(19	)		-		(93	)		(122	)		(1	)		(238	)
Net equity transactions		1,053,364			-		48,444			-		(109,405	)		2,351,135			1,388,629			382,914
Net change in contract owners’ equity		992,449			-		35,094			-		1,227,767			2,057,018			1,165,591			625,052
Contract owners’ equity beginning of period		-			-		-			-		2,057,018			-			625,052			-
Contract owners’ equity end of period	$	992,449			-		35,094			-		3,284,785			2,057,018			1,790,643			625,052
CHANGES IN UNITS:
Beginning units		-			-		-			-		195,289			-			54,992			-
Units purchased		404,364			-		163,170			-		10,451,621			2,650,904			1,855,290			1,173,828
Units redeemed		(297,168	)		-		(159,480	)		-		(10,425,882	)		(2,455,615	)		(1,748,432	)		(1,118,836	)
Ending units		107,196			-		3,690			-		221,028			195,289			161,850			54,992

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	PROUTL					RVAAS						RVACS						RVAMS
	2011			2010		2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(5,557	)		-		(17,791	)		13,999			(30,361	)		50,364			(53,664	)		58,223
Realized gain (loss) on investments		29,640			-		66,161			62,742			164,233			6,621			314,084			(3,312	)
Change in unrealized gain (loss) on investments		48,870			-		(314,336	)		269,713			(169,843	)		107,780			(469,633	)		277,638
Reinvested capital gains		-			-		-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		72,953			-		(265,966	)		346,454			(35,971	)		164,765			(209,213	)		332,549
Equity transactions:
Purchase payments received from contract owners (note 3)		122,417			-		36,385			53,675			131,835			175,929			169,228			154,069
Transfers between funds		1,489,147			-		100,172			4,690,683			(863,558	)		2,702,248			(63,918	)		4,340,929
Redemptions (note 3)		(20,907	)		-		(3,800,797	)		(467,146	)		(305,317	)		(63,133	)		(372,396	)		(151,906	)
Annuity benefits		-			-		-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-		-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(4	)		-		(119,674	)		(1,013	)		(37	)		(41	)		(3,187	)		(3,199	)
Adjustments to maintain reserves		20			-		(60	)		(625	)		(43	)		(370	)		102			(2,742	)
Net equity transactions		1,590,673			-		(3,783,974	)		4,275,574			(1,037,120	)		2,814,633			(270,171	)		4,337,151
Net change in contract owners’ equity		1,663,626			-		(4,049,940	)		4,622,028			(1,073,091	)		2,979,398			(479,384	)		4,669,700
Contract owners’ equity beginning of period		-			-		4,622,028			-			2,979,398			-			4,669,700			-
Contract owners’ equity end of period	$	1,663,626			-		572,088			4,622,028			1,906,307			2,979,398			4,190,316			4,669,700
CHANGES IN UNITS:
Beginning units		-			-		445,037			-			292,601			-			460,683			-
Units purchased		413,868			-		260,887			551,180			507,916			464,309			357,208			507,347
Units redeemed		(259,681	)		-		(647,381	)		(106,143	)		(608,328	)		(171,708	)		(386,739	)		(46,664	)
Ending units		154,187			-		58,543			445,037			192,189			292,601			431,152			460,683

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RSRF						RVASA						RVAMR						RBKF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(146,240	)		(220,789	)		23,476			(31,660	)		(195,523	)		(169,792	)		(17,792	)		(16,765	)
Realized gain (loss) on investments		397,573			3,494,557			13,818			(29,885	)		505,282			152,685			(321,200	)		41,091
Change in unrealized gain (loss) on investments		(1,003,574	)		(2,628,818	)		(206,550	)		107,682			(1,471,001	)		1,539,299			(26,620	)		36,851
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(752,241	)		644,950			(169,256	)		46,137			(1,161,242	)		1,522,192			(365,612	)		61,177
Equity transactions:
Purchase payments received from contract owners (note 3)		343,218			1,122,673			145,537			573,910			397,536			731,122			121,291			275,978
Transfers between funds		(1,344,169	)		(6,574,995	)		(54,130	)		1,689,691			434,598			2,455,713			(1,391,046	)		752,771
Redemptions (note 3)		(1,534,114	)		(2,466,837	)		(264,998	)		(174,591	)		(1,787,743	)		(1,063,901	)		(277,947	)		(227,277	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(17,013	)		(32,525	)		(5,263	)		(2,522	)		(17,302	)		(9,866	)		(897	)		(1,904	)
Adjustments to maintain reserves		(99	)		34,242			(104	)		43			(62	)		2,733			1,564			70,006
Net equity transactions		(2,552,177	)		(7,917,442	)		(178,958	)		2,086,531			(972,973	)		2,115,801			(1,547,035	)		869,574
Net change in contract owners’ equity		(3,304,418	)		(7,272,492	)		(348,214	)		2,132,668			(2,134,215	)		3,637,993			(1,912,647	)		930,751
Contract owners’ equity beginning of period		11,834,837			19,107,329			3,658,591			1,525,923			13,531,612			9,893,619			2,746,122			1,815,371
Contract owners’ equity end of period	$	8,530,419			11,834,837			3,310,377			3,658,591			11,397,397			13,531,612			833,475			2,746,122
CHANGES IN UNITS:
Beginning units		945,398			1,646,126			380,558			155,760			1,384,728			1,152,844			400,518			292,935
Units purchased		146,143			1,603,838			62,637			600,892			510,964			1,161,420			6,441,657			11,163,829
Units redeemed		(353,163	)		(2,304,566	)		(82,769	)		(376,094	)		(616,894	)		(929,536	)		(6,683,897	)		(11,056,246	)
Ending units		738,378			945,398			360,426			380,558			1,278,798			1,384,728			158,278			400,518

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RBMF						RVBER						RBF						RVCLR
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(170,899	)		(147,940	)		5,582			16,517			(95,204	)		(115,486	)		30,244			25,864
Realized gain (loss) on investments		(1,444,739	)		1,117,267			370,362			150,656			(766,743	)		501,134			286,071			673,144
Change in unrealized gain (loss) on investments		(1,737,406	)		809,789			(880,522	)		685,573			126,379			(84,294	)		(635,909	)		11,757
Reinvested capital gains		1,084,975			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(2,268,069	)		1,779,116			(504,578	)		852,746			(735,568	)		301,354			(319,594	)		710,765
Equity transactions:
Purchase payments received from contract owners (note 3)		434,950			551,737			570,660			265,055			378,987			406,720			829,849			681,220
Transfers between funds		(9,107,330	)		(5,177,015	)		936,101			2,620,553			2,734,612			(1,947,716	)		2,614,540			866,268
Redemptions (note 3)		(1,952,386	)		(2,594,479	)		(1,024,077	)		(661,391	)		(776,754	)		(920,783	)		(1,512,049	)		(929,657	)
Annuity benefits		(5,440	)		(7,554	)		-			-			(2,170	)		(2,163	)		-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(10,227	)		(19,083	)		(8,434	)		(10,831	)		(3,303	)		(5,963	)		(7,217	)		(16,015	)
Adjustments to maintain reserves		12,070			(4,180	)		(81	)		853			(1,343	)		65,831			(57	)		396
Net equity transactions		(10,628,363	)		(7,250,574	)		474,169			2,214,239			2,330,029			(2,404,074	)		1,925,066			602,212
Net change in contract owners’ equity		(12,896,432	)		(5,471,458	)		(30,409	)		3,066,985			1,594,461			(2,102,720	)		1,605,472			1,312,977
Contract owners’ equity beginning of period		19,514,836			24,986,294			7,931,016			4,864,031			4,141,943			6,244,663			8,075,221			6,762,244
Contract owners’ equity end of period	$	6,618,404			19,514,836			7,900,607			7,931,016			5,736,404			4,141,943			9,680,693			8,075,221
CHANGES IN UNITS:
Beginning units		799,928			1,278,562			863,401			595,725			400,924			674,210			846,387			775,677
Units purchased		3,005,973			5,750,355			521,875			891,289			6,514,105			8,227,352			1,133,035			1,356,979
Units redeemed		(3,476,132	)		(6,228,989	)		(472,673	)		(623,613	)		(6,403,381	)		(8,500,638	)		(937,558	)		(1,286,269	)
Ending units		329,769			799,928			912,603			863,401			511,648			400,924			1,041,864			846,387

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVCMD						RCPF						RVLDD						RVDFA
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	527,276			(172,087	)		9,437			(36,665	)		(108,557	)		(48,182	)		(239,471	)		(162,813	)
Realized gain (loss) on investments		256,970			(428,428	)		569,172			965,459			346,581			1,400,811			(246,247	)		(252,490	)
Change in unrealized gain (loss) on investments		(1,517,593	)		385,772			150,773			40,377			257,343			(97,695	)		(2,621,445	)		1,725,046
Reinvested capital gains		-			-			-			-			-			-			388,719			-
Net increase (decrease) in contract owners’ equity resulting from operations		(733,347	)		(214,743	)		729,382			969,171			495,367			1,254,934			(2,718,444	)		1,309,743
Equity transactions:
Purchase payments received from contract owners (note 3)		590,372			1,080,353			165,560			223,084			2,229,257			968,498			1,459,650			2,027,988
Transfers between funds		(2,140,145	)		(5,749,014	)		2,590,394			(5,853,010	)		2,715,362			(3,057,520	)		(2,160,012	)		19,036,347
Redemptions (note 3)		(1,190,846	)		(1,406,748	)		(1,229,909	)		(2,013,781	)		(2,742,899	)		(944,666	)		(1,491,071	)		(1,533,484	)
Annuity benefits		-			-			(4,465	)		(4,162	)		-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(19,950	)		(31,367	)		(4,459	)		(17,024	)		(21,977	)		(21,451	)		(19,247	)		(7,449	)
Adjustments to maintain reserves		(3,500	)		5,108			2,517			(11,691	)		(123	)		94,557			1,416			(770	)
Net equity transactions		(2,764,069	)		(6,101,668	)		1,519,638			(7,676,584	)		2,179,620			(2,960,582	)		(2,209,264	)		19,522,632
Net change in contract owners’ equity		(3,497,416	)		(6,316,411	)		2,249,020			(6,707,413	)		2,674,987			(1,705,648	)		(4,927,708	)		20,832,375
Contract owners’ equity beginning of period		9,325,565			15,641,976			6,303,034			13,010,447			7,533,276			9,238,924			20,832,375			-
Contract owners’ equity end of period	$	5,828,149			9,325,565			8,552,054			6,303,034			10,208,263			7,533,276			15,904,667			20,832,375
CHANGES IN UNITS:
Beginning units		1,715,037			3,091,102			374,739			906,887			865,504			1,297,103			2,129,161			-
Units purchased		2,997,964			4,033,267			3,662,649			5,454,130			11,999,066			12,256,037			465,970			2,924,274
Units redeemed		(3,549,091	)		(5,409,332	)		(3,583,579	)		(5,986,278	)		(11,775,609	)		(12,687,636	)		(736,910	)		(795,113	)
Ending units		1,163,910			1,715,037			453,809			374,739			1,088,961			865,504			1,858,221			2,129,161

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVDSR						RELF						RENF						RESF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(379,506	)		(280,371	)		(61,684	)		(151,120	)		(214,730	)		(151,377	)		(190,873	)		(224,576	)
Realized gain (loss) on investments		114,190			(1,479,625	)		(1,918,015	)		(1,290,497	)		(136,249	)		(878,327	)		(292,055	)		(1,002,476	)
Change in unrealized gain (loss) on investments		(2,309,026	)		2,731,660			(14,441	)		(1,292,750	)		(1,188,379	)		1,619,381			(2,000,237	)		1,976,899
Reinvested capital gains		-			-			1,545,477			1,021,245			60,626			-			989,305			-
Net increase (decrease) in contract owners’ equity resulting from operations		(2,574,342	)		971,664			(448,663	)		(1,713,122	)		(1,478,732	)		589,677			(1,493,860	)		749,847
Equity transactions:
Purchase payments received from contract owners (note 3)		788,503			2,771,117			80,464			234,174			1,180,677			1,200,295			1,127,042			534,547
Transfers between funds		(3,986,282	)		38,156,910			(2,660,464	)		(7,068,713	)		(2,430,143	)		(3,892,220	)		(6,134,769	)		(5,802,613	)
Redemptions (note 3)		(6,677,107	)		(6,474,922	)		(799,677	)		(1,724,241	)		(2,092,255	)		(1,872,259	)		(1,561,487	)		(1,544,603	)
Annuity benefits		-			-			-			(304	)		(7,462	)		(26,112	)		(4,190	)		(12,232	)
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(24,957	)		(6,562	)		(3,734	)		(19,496	)		(12,875	)		(18,531	)		(7,739	)		(14,973	)
Adjustments to maintain reserves		568			(51,931	)		(5,080	)		9,281			10,973			(13,913	)		12,356			(29,358	)
Net equity transactions		(9,899,275	)		34,394,612			(3,388,491	)		(8,569,299	)		(3,351,085	)		(4,622,740	)		(6,568,787	)		(6,869,232	)
Net change in contract owners’ equity		(12,473,617	)		35,366,276			(3,837,154	)		(10,282,421	)		(4,829,817	)		(4,033,063	)		(8,062,647	)		(6,119,385	)
Contract owners’ equity beginning of period		35,366,276			-			5,727,179			16,009,600			14,152,880			18,185,943			16,233,712			22,353,097
Contract owners’ equity end of period	$	22,892,659			35,366,276			1,890,025			5,727,179			9,323,063			14,152,880			8,171,065			16,233,712
CHANGES IN UNITS:
Beginning units		3,695,517			-			687,060			2,106,765			604,777			918,673			588,785			1,013,485
Units purchased		598,109			5,555,404			8,219,666			17,553,692			3,728,122			3,977,664			2,604,243			4,073,415
Units redeemed		(1,675,503	)		(1,859,887	)		(8,632,167	)		(18,973,397	)		(3,900,948	)		(4,291,560	)		(2,861,721	)		(4,498,115	)
Ending units		2,618,123			3,695,517			274,559			687,060			431,951			604,777			331,307			588,785

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RLCE						RFSF						RUGB						RHCF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(43,544	)		(14,531	)		(51,613	)		(73,760	)		64,747			193,648			(118,209	)		(165,129	)
Realized gain (loss) on investments		(432,956	)		(1,558,449	)		(421,780	)		(312,020	)		8,872,767			(548,214	)		(473,931	)		478,211
Change in unrealized gain (loss) on investments		(48,586	)		139,585			(65,064	)		265,622			471,238			750,042			55,916			(498,658	)
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(525,086	)		(1,433,395	)		(538,457	)		(120,158	)		9,408,752			395,476			(536,224	)		(185,576	)
Equity transactions:
Purchase payments received from contract owners (note 3)		15,101			263,972			193,712			322,073			2,403,321			1,187,004			250,332			432,538
Transfers between funds		(339,843	)		(4,438,005	)		(993,237	)		(8,427,757	)		1,374,999			(5,517,068	)		2,006,889			(9,218,014	)
Redemptions (note 3)		(419,190	)		(416,936	)		(553,357	)		(1,336,500	)		(1,858,571	)		(2,982,655	)		(1,180,956	)		(1,721,888	)
Annuity benefits		(998	)		(2,933	)		(1,114	)		(1,193	)		-			-			(3,531	)		(11,457	)
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(2,605	)		(2,055	)		(3,286	)		(11,087	)		(19,298	)		(22,256	)		(4,439	)		(12,614	)
Adjustments to maintain reserves		176			35,546			204			45,169			(29,560	)		(3,612	)		(1,630	)		5,679
Net equity transactions		(747,359	)		(4,560,411	)		(1,357,078	)		(9,409,295	)		1,870,891			(7,338,587	)		1,066,665			(10,525,756	)
Net change in contract owners’ equity		(1,272,445	)		(5,993,806	)		(1,895,535	)		(9,529,453	)		11,279,643			(6,943,111	)		530,441			(10,711,332	)
Contract owners’ equity beginning of period		3,120,710			9,114,516			5,018,933			14,548,386			8,797,254			15,740,365			5,709,115			16,420,447
Contract owners’ equity end of period	$	1,848,265			3,120,710			3,123,398			5,018,933			20,076,897			8,797,254			6,239,556			5,709,115
CHANGES IN UNITS:
Beginning units		316,669			822,161			608,405			2,028,811			657,160			1,282,305			491,192			1,509,956
Units purchased		3,343,353			6,088,429			2,916,748			8,644,148			12,750,499			18,656,285			5,175,558			9,141,001
Units redeemed		(3,433,782	)		(6,593,921	)		(3,074,215	)		(10,064,554	)		(12,303,062	)		(19,281,430	)		(5,146,118	)		(10,159,765	)
Ending units		226,240			316,669			450,938			608,405			1,104,597			657,160			520,632			491,192

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RINF						RVIDD						RJNF						RVIMC
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(82,549	)		(152,231	)		(87,612	)		(148,876	)		(78,193	)		(106,841	)		(14,368	)		(31,589	)
Realized gain (loss) on investments		(145,969	)		1,200,601			(2,307,393	)		(3,478,804	)		(1,601,425	)		(841,720	)		(149,076	)		(1,103,121	)
Change in unrealized gain (loss) on investments		(466,137	)		(823,460	)		(29,807	)		(63,101	)		(62,705	)		(398,858	)		(29,023	)		7,099
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(694,655	)		224,910			(2,424,812	)		(3,690,781	)		(1,742,323	)		(1,347,419	)		(192,467	)		(1,127,611	)
Equity transactions:
Purchase payments received from contract owners (note 3)		236,220			301,968			401,481			388,110			202,291			794,132			52,384			95,350
Transfers between funds		(5,870,422	)		(9,038,564	)		(897,341	)		3,612,323			(1,781,467	)		(2,906,173	)		(166,349	)		1,244,498
Redemptions (note 3)		(1,003,370	)		(1,845,482	)		(1,087,255	)		(673,147	)		(577,090	)		(687,061	)		(91,127	)		(358,034	)
Annuity benefits		(5,339	)		(4,982	)		-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(5,599	)		(14,197	)		(2,613	)		(11,422	)		(2,499	)		(7,500	)		(360	)		(1,883	)
Adjustments to maintain reserves		2,235			3,487			(831	)		4,985			(6,768	)		(4,884	)		562			1,372
Net equity transactions		(6,646,275	)		(10,597,770	)		(1,586,559	)		3,320,849			(2,165,533	)		(2,811,486	)		(204,890	)		981,303
Net change in contract owners’ equity		(7,340,930	)		(10,372,860	)		(4,011,371	)		(369,932	)		(3,907,856	)		(4,158,905	)		(397,357	)		(146,308	)
Contract owners’ equity beginning of period		10,702,885			21,075,745			7,402,878			7,772,810			6,761,742			10,920,647			1,272,342			1,418,650
Contract owners’ equity end of period	$	3,361,955			10,702,885			3,391,507			7,402,878			2,853,886			6,761,742			874,985			1,272,342
CHANGES IN UNITS:
Beginning units		611,617			1,463,762			2,035,747			1,494,684			1,192,824			1,665,991			283,512			234,253
Units purchased		1,702,314			3,861,258			39,204,497			31,701,767			14,052,667			14,316,810			2,938,969			3,712,486
Units redeemed		(2,092,785	)		(4,713,403	)		(39,918,592	)		(31,160,704	)		(14,511,477	)		(14,789,977	)		(3,009,540	)		(3,663,227	)
Ending units		221,146			611,617			1,321,652			2,035,747			734,014			1,192,824			212,941			283,512

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RAF						RVISC						RUF						RLCJ
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(41,665	)		(107,574	)		(51,759	)		(83,406	)		(122,232	)		(389,621	)		(36,821	)		(45,273	)
Realized gain (loss) on investments		(585,414	)		(1,912,452	)		(211,989	)		(2,269,895	)		(1,832,978	)		(11,584,956	)		(717,947	)		477,697
Change in unrealized gain (loss) on investments		(21,799	)		246,336			(12,331	)		134,494			282,188			(174,054	)		(184,196	)		39,803
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(648,878	)		(1,773,690	)		(276,079	)		(2,218,807	)		(1,673,022	)		(12,148,631	)		(938,964	)		472,227
Equity transactions:
Purchase payments received from contract owners (note 3)		114,508			270,706			385,935			498,011			262,735			1,064,432			47,054			217,446
Transfers between funds		(573,247	)		(1,602,947	)		(751,010	)		41,705			(1,213,442	)		11,950,448			(1,872,467	)		123,781
Redemptions (note 3)		(548,977	)		(1,076,666	)		(443,254	)		(770,891	)		(1,680,579	)		(3,983,144	)		(294,844	)		(246,332	)
Annuity benefits		-			-			-			-			-			(184	)		(1,053	)		(1,082	)
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(2,792	)		(13,498	)		(4,010	)		(12,029	)		(6,169	)		(32,419	)		(5,118	)		(3,617	)
Adjustments to maintain reserves		(913	)		7,790			15,540			(7,233	)		(438	)		24,098			16,351			40,351
Net equity transactions		(1,011,421	)		(2,414,615	)		(796,799	)		(250,437	)		(2,637,893	)		9,023,231			(2,110,077	)		130,547
Net change in contract owners’ equity		(1,660,299	)		(4,188,305	)		(1,072,878	)		(2,469,244	)		(4,310,915	)		(3,125,400	)		(3,049,041	)		602,774
Contract owners’ equity beginning of period		3,766,653			7,954,958			3,652,201			6,121,445			9,868,136			12,993,536			3,959,132			3,356,358
Contract owners’ equity end of period	$	2,106,354			3,766,653			2,579,323			3,652,201			5,557,221			9,868,136			910,091			3,959,132
CHANGES IN UNITS:
Beginning units		1,332,478			2,220,914			831,180			1,031,856			1,905,883			2,056,718			383,490			371,247
Units purchased		44,844,874			46,000,463			41,232,303			31,941,196			36,727,502			63,730,634			4,982,164			6,765,743
Units redeemed		(45,330,945	)		(46,888,899	)		(41,393,854	)		(32,141,872	)		(37,437,419	)		(63,881,469	)		(5,241,232	)		(6,753,500	)
Ending units		846,407			1,332,478			669,629			831,180			1,195,966			1,905,883			124,422			383,490

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RLF						RVMFU						RMED						RVARS
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(79,948	)		(148,979	)		(114,961	)		(174,228	)		(93,755	)		(103,469	)		(87,163	)		(150,731	)
Realized gain (loss) on investments		793,463			964,360			(29,979	)		(1,193,071	)		(45,567	)		1,203,023			175,422			75,254
Change in unrealized gain (loss) on investments		(676,181	)		(528,342	)		(681,567	)		292,179			(572,628	)		463,216			21,887			290,175
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		37,334			287,039			(826,507	)		(1,075,120	)		(711,950	)		1,562,770			110,146			214,698
Equity transactions:
Purchase payments received from contract owners (note 3)		62,687			234,771			366,192			2,474,132			458,275			437,496			270,452			1,319,339
Transfers between funds		(2,246,408	)		(1,689,706	)		857,569			(7,546,460	)		(4,603,774	)		3,414,560			138,794			(5,447,905	)
Redemptions (note 3)		(977,497	)		(2,121,928	)		(891,912	)		(1,504,542	)		(1,008,072	)		(1,266,270	)		(736,653	)		(1,771,285	)
Annuity benefits		(3,763	)		(3,479	)		-			-			-			(2,016	)		-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(5,597	)		(18,230	)		(19,000	)		(19,487	)		(4,146	)		(8,944	)		(13,574	)		(26,561	)
Adjustments to maintain reserves		(130	)		(68,638	)		(134	)		(3,399	)		464			(38,508	)		(140	)		403
Net equity transactions		(3,170,708	)		(3,667,210	)		312,715			(6,599,756	)		(5,157,253	)		2,536,318			(341,121	)		(5,926,009	)
Net change in contract owners’ equity		(3,133,374	)		(3,380,171	)		(513,792	)		(7,674,876	)		(5,869,203	)		4,099,088			(230,975	)		(5,711,311	)
Contract owners’ equity beginning of period		7,285,612			10,665,783			7,479,850			15,154,726			10,223,461			6,124,373			6,167,122			11,878,433
Contract owners’ equity end of period	$	4,152,238			7,285,612			6,966,058			7,479,850			4,354,258			10,223,461			5,936,147			6,167,122
CHANGES IN UNITS:
Beginning units		482,219			921,523			855,936			1,649,444			552,427			442,029			714,090			1,449,094
Units purchased		788,160			4,429,102			454,245			1,878,901			3,081,564			4,953,559			258,228			1,830,708
Units redeemed		(999,207	)		(4,868,406	)		(425,232	)		(2,672,409	)		(3,368,269	)		(4,843,161	)		(296,078	)		(2,565,712	)
Ending units		271,172			482,219			884,949			855,936			265,722			552,427			676,240			714,090

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVF						ROF						RNF						RPMF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(88,117	)		(101,062	)		(119,177	)		(144,164	)		(152,004	)		(184,395	)		(540,747	)		(548,508	)
Realized gain (loss) on investments		(1,915,126	)		1,816,218			149,789			1,758,106			(105,916	)		1,942,000			2,137,061			3,804,355
Change in unrealized gain (loss) on investments		(167,764	)		(363,269	)		(280,477	)		(159,572	)		(581,904	)		(215,418	)		(12,304,655	)		9,029,474
Reinvested capital gains		692,983			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(1,478,024	)		1,351,887			(249,865	)		1,454,370			(839,824	)		1,542,187			(10,708,341	)		12,285,321
Equity transactions:
Purchase payments received from contract owners (note 3)		705,446			829,174			2,236,360			226,067			187,719			205,984			3,482,368			3,600,228
Transfers between funds		(2,779,058	)		(1,692,832	)		(5,085,796	)		(2,632,685	)		533,963			(9,203,229	)		(18,578,514	)		2,746,150
Redemptions (note 3)		(812,630	)		(941,117	)		(1,244,335	)		(1,526,832	)		(2,515,189	)		(2,626,110	)		(4,515,033	)		(5,087,417	)
Annuity benefits		-			-			-			-			-			(1,342	)		(4,353	)		(14,057	)
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(13,052	)		(6,181	)		(9,748	)		(17,815	)		(26,555	)		(20,283	)		(21,176	)		(30,525	)
Adjustments to maintain reserves		243			198,733			4,998			50,401			506			29,075			731			(988	)
Net equity transactions		(2,899,051	)		(1,612,223	)		(4,098,521	)		(3,900,864	)		(1,819,556	)		(11,615,905	)		(19,635,977	)		1,213,391
Net change in contract owners’ equity		(4,377,075	)		(260,336	)		(4,348,386	)		(2,446,494	)		(2,659,380	)		(10,073,718	)		(30,344,318	)		13,498,712
Contract owners’ equity beginning of period		9,411,024			9,671,360			10,918,017			13,364,511			12,255,667			22,329,385			54,731,878			41,233,166
Contract owners’ equity end of period	$	5,033,949			9,411,024			6,569,631			10,918,017			9,596,287			12,255,667			24,387,560			54,731,878
CHANGES IN UNITS:
Beginning units		952,362			1,317,022			719,153			1,034,035			1,293,811			2,832,370			1,736,396			1,749,261
Units purchased		9,105,317			16,132,405			9,767,427			11,105,739			9,499,863			9,113,319			5,080,603			7,348,574
Units redeemed		(9,543,135	)		(16,497,065	)		(10,050,770	)		(11,420,621	)		(9,753,242	)		(10,651,878	)		(5,760,743	)		(7,361,439	)
Ending units		514,544			952,362			435,810			719,153			1,040,432			1,293,811			1,056,256			1,736,396

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RREF						RRF						RMEK						RTF
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	111,182			(12,113	)		(70,343	)		(134,733	)		(81,931	)		(96,055	)		(119,550	)		(109,746	)
Realized gain (loss) on investments		(485,083	)		2,876,733			259,337			(47,106	)		(1,531,846	)		686,760			(1,655,694	)		1,390,276
Change in unrealized gain (loss) on investments		(174,292	)		(374,098	)		(325,989	)		170,329			(419,006	)		192,029			63,425			150,962
Reinvested capital gains		-			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(548,193	)		2,490,522			(136,995	)		(11,510	)		(2,032,783	)		782,734			(1,711,819	)		1,431,492
Equity transactions:
Purchase payments received from contract owners (note 3)		884,468			1,264,167			69,102			254,047			377,065			548,364			710,995			940,207
Transfers between funds		(4,111,550	)		(5,947,484	)		1,301,039			(3,211,240	)		(1,310,588	)		3,551,201			546,321			441,865
Redemptions (note 3)		(1,959,110	)		(3,840,988	)		(714,222	)		(1,754,624	)		(921,708	)		(1,150,566	)		(804,427	)		(1,058,497	)
Annuity benefits		(1,942	)		(3,530	)		(1,860	)		(1,772	)		-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(17,032	)		(40,258	)		(2,175	)		(14,670	)		(5,744	)		(10,895	)		(3,158	)		(6,423	)
Adjustments to maintain reserves		(687	)		50,810			(86	)		4,831			19,265			(55,749	)		(2,553	)		117,513
Net equity transactions		(5,205,853	)		(8,517,283	)		651,798			(4,723,428	)		(1,841,710	)		2,882,355			447,178			434,665
Net change in contract owners’ equity		(5,754,046	)		(6,026,761	)		514,803			(4,734,938	)		(3,874,493	)		3,665,089			(1,264,641	)		1,866,157
Contract owners’ equity beginning of period		14,025,648			20,052,409			6,367,143			11,102,081			8,247,866			4,582,777			11,351,949			9,485,792
Contract owners’ equity end of period	$	8,271,602			14,025,648			6,881,946			6,367,143			4,373,373			8,247,866			10,087,308			11,351,949
CHANGES IN UNITS:
Beginning units		891,868			1,585,824			429,272			942,391			533,873			403,619			1,486,798			1,557,121
Units purchased		5,540,356			9,733,357			3,095,771			6,370,452			6,145,996			8,479,256			22,447,475			22,677,946
Units redeemed		(5,906,044	)		(10,427,313	)		(3,075,883	)		(6,883,571	)		(6,343,332	)		(8,349,002	)		(22,537,530	)		(22,748,269	)
Ending units		526,180			891,868			449,160			429,272			336,537			533,873			1,396,743			1,486,798

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVLCG						RVLCV						RVMCG						RVMCV
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(275,168	)		(202,582	)		(180,488	)		(143,792	)		(253,388	)		(304,959	)		(128,449	)		(113,163	)
Realized gain (loss) on investments		(1,043,320	)		2,519,920			598,193			1,619,064			1,866,922			4,619,842			(432,802	)		1,152,899
Change in unrealized gain (loss) on investments		(522,510	)		(177,397	)		(1,193,279	)		772,611			(2,539,477	)		(1,203,057	)		(467,164	)		(48,429	)
Reinvested capital gains		-			-			-			-			736,102			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(1,840,998	)		2,139,941			(775,574	)		2,247,883			(189,841	)		3,111,826			(1,028,415	)		991,307
Equity transactions:
Purchase payments received from contract owners (note 3)		560,027			366,791			356,055			667,528			504,411			737,814			95,533			492,967
Transfers between funds		(68,274	)		2,487,933			84,167			(962,856	)		(14,455,687	)		(2,944,790	)		13,484,318			(12,024,982	)
Redemptions (note 3)		(2,499,330	)		(1,926,270	)		(1,655,866	)		(2,246,789	)		(2,420,245	)		(2,275,270	)		(1,148,160	)		(1,823,095	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(25,117	)		(21,216	)		(11,670	)		(20,610	)		(25,498	)		(30,053	)		(8,731	)		(17,482	)
Adjustments to maintain reserves		833			21,520			329			11,643			110			2,762			3,347			(5,952	)
Net equity transactions		(2,031,861	)		928,758			(1,226,985	)		(2,551,084	)		(16,396,909	)		(4,509,537	)		12,426,307			(13,378,544	)
Net change in contract owners’ equity		(3,872,859	)		3,068,699			(2,002,559	)		(303,201	)		(16,586,750	)		(1,397,711	)		11,397,892			(12,387,237	)
Contract owners’ equity beginning of period		19,524,177			16,455,478			16,526,954			16,830,155			27,190,047			28,587,758			4,896,712			17,283,949
Contract owners’ equity end of period	$	15,651,318			19,524,177			14,524,395			16,526,954			10,603,297			27,190,047			16,294,604			4,896,712
CHANGES IN UNITS:
Beginning units		1,651,539			1,732,122			1,501,383			1,825,662			1,676,122			2,315,874			371,676			1,560,171
Units purchased		7,049,711			7,548,993			10,619,585			6,526,805			2,954,318			4,710,617			3,435,318			3,148,687
Units redeemed		(7,336,724	)		(7,629,576	)		(10,722,465	)		(6,851,084	)		(3,960,044	)		(5,350,369	)		(2,444,112	)		(4,337,182	)
Ending units		1,364,526			1,651,539			1,398,503			1,501,383			670,396			1,676,122			1,362,882			371,676

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVSCG						RVSCV						RVSDL						RTEC
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(115,758	)		(87,004	)		(76,103	)		(113,408	)		(33,136	)		(69,703	)		(109,196	)		(192,381	)
Realized gain (loss) on investments		(329,201	)		513,875			457,039			(267,687	)		(453,738	)		(463,094	)		(557,516	)		448,974
Change in unrealized gain (loss) on investments		(250,296	)		166,591			(384,120	)		1,030,042			114,474			(126,806	)		(174,376	)		(838,277	)
Reinvested capital gains		-			-			-			-			-			-			298,007			-
Net increase (decrease) in contract owners’ equity resulting from operations		(695,255	)		593,462			(3,184	)		648,947			(372,400	)		(659,603	)		(543,081	)		(581,684	)
Equity transactions:
Purchase payments received from contract owners (note 3)		197,104			154,896			53,529			454,672			51,619			212,599			565,510			539,840
Transfers between funds		(620,448	)		7,126,012			645,134			44,876			675,033			440,638			(5,085,072	)		(6,817,335	)
Redemptions (note 3)		(1,372,954	)		(899,013	)		(613,210	)		(1,034,384	)		(284,451	)		(722,700	)		(954,299	)		(1,966,891	)
Annuity benefits		-			-			-			-			-			-			-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(13,319	)		(8,901	)		(4,720	)		(5,552	)		(3,456	)		(8,390	)		(4,776	)		(17,398	)
Adjustments to maintain reserves		190			(1,121	)		200			(99,774	)		(1,168	)		(21,774	)		(1,165	)		2,014
Net equity transactions		(1,809,427	)		6,371,873			80,933			(640,162	)		437,577			(99,627	)		(5,479,802	)		(8,259,770	)
Net change in contract owners’ equity		(2,504,682	)		6,965,335			77,749			8,785			65,177			(759,230	)		(6,022,883	)		(8,841,454	)
Contract owners’ equity beginning of period		10,859,606			3,894,271			5,747,110			5,738,325			2,774,400			3,533,630			10,514,690			19,356,144
Contract owners’ equity end of period	$	8,354,924			10,859,606			5,824,859			5,747,110			2,839,577			2,774,400			4,491,807			10,514,690
CHANGES IN UNITS:
Beginning units		824,063			363,474			474,756			586,636			430,980			517,155			790,795			1,623,629
Units purchased		3,850,425			4,871,487			3,317,818			4,183,297			8,611,113			14,138,454			4,495,000			8,503,148
Units redeemed		(4,054,005	)		(4,410,898	)		(3,250,579	)		(4,295,177	)		(8,576,142	)		(14,224,629	)		(4,908,796	)		(9,335,982	)
Ending units		620,483			824,063			541,995			474,756			465,951			430,980			376,999			790,795

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RTEL						RTRF						RUTL						RVWDL
	2011			2010			2011			2010			2011			2010			2011			2010
Investment activity:
Net investment income (loss)	$	(7,292	)		21,594			(72,872	)		(116,231	)		33,705			168,196			(26,414	)		(24,807	)
Realized gain (loss) on investments		(265,617	)		357,206			(495,033	)		49,822			595,590			418,111			(51,837	)		(456,495	)
Change in unrealized gain (loss) on investments		(16,237	)		9,218			(174,490	)		105,942			202,578			(31,948	)		(54,413	)		173,920
Reinvested capital gains		58,446			-			-			-			-			-			-			-
Net increase (decrease) in contract owners’ equity resulting from operations		(230,700	)		388,018			(742,395	)		39,533			831,873			554,359			(132,664	)		(307,382	)
Equity transactions:
Purchase payments received from contract owners (note 3)		150,189			112,930			66,580			192,878			374,060			334,199			92,353			360,795
Transfers between funds		(2,138,312	)		2,051,600			(2,024,118	)		1,990,242			2,175,301			1,053,603			(584,648	)		(950,707	)
Redemptions (note 3)		(164,282	)		(442,783	)		(818,885	)		(1,596,742	)		(828,898	)		(1,596,376	)		(258,430	)		(193,403	)
Annuity benefits		(2,975	)		(3,216	)		(3,632	)		(3,890	)		(4,318	)		(4,161	)		-			-
Contract maintenance charges (note 2)		-			-			-			-			-			-			-			-
Contingent deferred sales charges (note 2)		(597	)		(1,783	)		(4,009	)		(13,259	)		(2,976	)		(9,025	)		(1,506	)		(1,208	)
Adjustments to maintain reserves		(4,327	)		(39,565	)		1,722			(32,610	)		(14,773	)		11,519			(153	)		(87,627	)
Net equity transactions		(2,160,304	)		1,677,183			(2,782,342	)		536,619			1,698,396			(210,241	)		(752,384	)		(872,150	)
Net change in contract owners’ equity		(2,391,004	)		2,065,201			(3,524,737	)		576,152			2,530,269			344,118			(885,048	)		(1,179,532	)
Contract owners’ equity beginning of period		4,485,117			2,419,916			7,086,394			6,510,242			7,126,341			6,782,223			1,707,547			2,887,079
Contract owners’ equity end of period	$	2,094,113			4,485,117			3,561,657			7,086,394			9,656,610			7,126,341			822,499			1,707,547
CHANGES IN UNITS:
Beginning units		509,641			312,907			443,935			496,725			677,177			684,436			155,516			243,832
Units purchased		6,508,296			10,770,388			3,352,565			6,394,715			7,705,666			11,768,392			1,034,428			1,229,694
Units redeemed		(6,736,549	)		(10,573,654	)		(3,541,968	)		(6,447,505	)		(7,581,384	)		(11,775,651	)		(1,110,066	)		(1,318,010	)
Ending units		281,388			509,641			254,532			443,935			801,459			677,177			79,878			155,516

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	VWHA					VWAR					WRASP						SAM2
	2011			2010		2011			2010		2011			2010			2011		2010
Investment activity:
Net investment income (loss)	$	(6,998	)		-		(7,839	)		-		(78,370	)		(81,751	)		-		-
Realized gain (loss) on investments		(59,005	)		-		(493	)		-		717,761			97,445			-		-
Change in unrealized gain (loss) on investments		(101,136	)		-		(21,413	)		-		(2,851,794	)		1,594,281			-		-
Reinvested capital gains		-			-		-			-		-			-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(167,139	)		-		(29,745	)		-		(2,212,403	)		1,609,975			-		-
Equity transactions:
Purchase payments received from contract owners (note 3)		246,548			-		1,799,672			-		2,155,985			2,335,712			-		(97,452	)
Transfers between funds		617,518			-		239,688			-		4,342,587			13,706,536			-		(4,185	)
Redemptions (note 3)		(25,145	)		-		(1,176	)		-		(1,955,551	)		(490,880	)		-		71,830
Annuity benefits		-			-		-			-		-			-			-		-
Contract maintenance charges (note 2)		-			-		-			-		-			-			-		-
Contingent deferred sales charges (note 2)		(73	)		-		-			-		(5,831	)		(1,350	)		-		118
Adjustments to maintain reserves		(23	)		-		-			-		(479	)		(1,401	)		-		29,689
Net equity transactions		838,825			-		2,038,184			-		4,536,711			15,548,617			-		-
Net change in contract owners’ equity		671,686			-		2,008,439			-		2,324,308			17,158,592			-		-
Contract owners’ equity beginning of period		-			-		-			-		17,158,592			-			-		-
Contract owners’ equity end of period	$	671,686			-		2,008,439			-		19,482,900			17,158,592			-		-
CHANGES IN UNITS:
Beginning units		-			-		-			-		1,623,923			-			-		-
Units purchased		167,737			-		211,372			-		1,469,137			1,888,684			-		203,992
Units redeemed		(81,133	)		-		(2,513	)		-		(1,066,682	)		(264,761	)		-		(203,992	)
Ending units		86,604			-		208,859			-		2,026,378			1,623,923			-		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

STATEMENTS OF CHANGES IN CONTRACT OWNERS’ EQUITY

Years Ended December 31, 2011 and 2010

	RVIRO						RVHEQ					SBMMP					RVCEQ
	2011			2010			2011		2010			2011		2010			2011		2010
Investment activity:
Net investment income (loss)	$	(15,352	)		(45,360	)		-		-			-		(485	)		-		2,482
Realized gain (loss) on investments		45,052			(586,529	)		-		-			-		-			-		598,799
Change in unrealized gain (loss) on investments		(38,605	)		(369,865	)		-		-			-		-			-		(158,950	)
Reinvested capital gains		-			-			-		-			-		-			-		-
Net increase (decrease) in contract owners’ equity resulting from operations		(8,905	)		(1,001,754	)		-		-			-		(485	)		-		442,331
Equity transactions:
Purchase payments received from contract owners (note 3)		91,668			584,189			-		90			-		-			-		11,862
Transfers between funds		(3,390,738	)		(5,065,723	)		-		(79	)		-		(93,169	)		-		(2,190,883	)
Redemptions (note 3)		(126,685	)		(625,168	)		-		(11	)		-		(101,139	)		-		(186,234	)
Annuity benefits		-			-			-		-			-		-			-		-
Contract maintenance charges (note 2)		-			-			-		-			-		(97	)		-		-
Contingent deferred sales charges (note 2)		(774	)		(5,237	)		-		-			-		-			-		(1,595	)
Adjustments to maintain reserves		(36	)		4,818			-		-			-		(2	)		-		8,093
Net equity transactions		(3,426,565	)		(5,107,121	)		-		-			-		(194,407	)		-		(2,358,757	)
Net change in contract owners’ equity		(3,435,470	)		(6,108,875	)		-		-			-		(194,892	)		-		(1,916,426	)
Contract owners’ equity beginning of period		3,435,470			9,544,345			-		-			-		194,892			-		1,916,426
Contract owners’ equity end of period	$	-			3,435,470			-		-			-		-			-		-
CHANGES IN UNITS:
Beginning units		430,229			1,166,081			-		-			-		14,536			-		244,485
Units purchased		24,797			1,046,068			-		151			-		-			-		325,833
Units redeemed		(455,026	)		(1,781,920	)		-		(151	)		-		(14,536	)		-		(570,318	)
Ending units		-			430,229			-		-			-		-			-		-

See accompanying notes to financial statements.

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

(1) Background and Summary of Significant Accounting Policies

(a) Organization and Nature of Operations

Nationwide Variable Account-4 (the Account) was established pursuant to a resolution of the Board of Directors of Nationwide Life Insurance Company (the Company) on October 7, 1987, and commenced operations on July 10, 1989. 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 the brokerage community.

(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:

BLACKROCK FUNDS

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

CREDIT SUISSE ASSET MANAGEMENT

Credit Suisse Trust - Commodity Return Strategy Portfolio (CSCRS)

MASSACHUSETTS FINANCIAL SERVICES CO.

MFS Global Tactical Allocation Portfolio - Service Class (MVGTAS)

MORGAN STANLEY

Emerging Markets Debt Portfolio - Class II (MSEMB)

Global Tactical Asset Allocation Portfolio - Class II (MSVGT2)

Global Real Estate Portfolio - Class II (VKVGR2)

NATIONWIDE FUNDS GROUP

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

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

NVIT Emerging Markets Fund - Class III (GEM3)

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 Plus Bond Fund - Class II (NVLCP2)

NVIT Fund - Class III (TRF3)

NVIT Government Bond Fund - Class III (GBF3)

NVIT Investor Destinations Aggressive Fund - Class VI (GVIDA6)

NVIT Investor Destinations Balanced Fund - Class VI (NVDBL6)

NVIT Investor Destinations Capital Appreciation Fund - Class VI (NVDCA6)

NVIT Investor Destinations Conservative Fund - Class VI (GVIDC6)

NVIT Investor Destinations Moderate Fund - Class VI (GVIDM6)

NVIT Investor Destinations Moderately Aggressive Fund - Class VI (GVDMA6)

NVIT Investor Destinations Moderately Conservative Fund - Class VI (GVDMC6)

NVIT Money Market Fund - Class I (SAM)

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

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

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

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 III (SCGF3)

NVIT Multi-Manager Small Cap Value Fund - Class III (SCVF3)

NVIT Multi-Manager Small Company Fund - Class III (SCF3)

NVIT Short Term Bond Fund - Class II (NVSTB2)

NVIT Money Market Fund - Class II (NVMM2)

PORTFOLIOS OF THE ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC.

VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)

PORTFOLIOS OF THE AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.

VP Income & Growth Fund - Class III (ACVIG3)

VP Inflation Protection Fund - Class II (ACVIP2)

VP Ultra(R) Fund - Class III (ACVU3)

VP Value Fund - Class III (ACVV3)

PORTFOLIOS OF THE FEDERATED INSURANCE SERIES

Quality Bond Fund II - Primary Shares (FQB)

PORTFOLIOS OF THE FIDELITY(R) VARIABLE INSURANCE PRODUCTS

VIP Fund - Asset Manager Portfolio - Service Class 2 (FAM2)

VIP Fund - Contrafund Portfolio - Service Class 2 R (FC2R)

VIP Fund - Equity-Income Portfolio - Service Class 2 R (FEI2R)

VIP Fund - Growth Portfolio - Service Class 2 R (FG2R)

PORTFOLIOS OF THE FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST

VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)

PORTFOLIOS OF THE LEGG MASON PARTNERS VARIABLE EQUITY TRUST

Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio - Class I (SBTRP)

Legg Mason ClearBridge Variable Large Cap Value Portfolio: Class I (SBVI)

Global Currents Variable International All Cap Opportunity Portfolio (SBIEP)

PMVRSD (PMVRSD)

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 PIMCO VARIABLE INSURANCE TRUST

Variable Insurance Trust - Emerging Markets Bond Portfolio - Advisor Class (PMVEBD)

Variable Insurance Trust - Global Bond (Unhedged) - Advisor Class (PMVGBD)

Variable Insurance Trust - High Yield Portfolio - Advisor Class (PMVHYD)

PORTFOLIOS OF THE PIONEER VARIABLE CONTRACTS TRUST

Variable Contracts Trust - Emerging Markets VCT Portfolio - Class II (PIVEM2)

Variable Contracts Trust - High Yield VCT Portfolio - Class II Shares (PIHYB2)

PRO FUNDS

Ultra Short NASDAQ-100 (PROUSN)

VP Access High Yield (PROAHY)

VP Asia 30 (PROA30)

VP Banks (PROBNK)

VP Basic Materials (PROBM)

VP Bear (PROBR)

VP Biotechnology (PROBIO)

VP Bull (PROBL)

VP Consumer Goods (PROCG)

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

VP Consumer Services (PROCS)

VP Emerging Markets (PROEM)

VP Europe 30 (PROE30)

VP Financials (PROFIN)

VP Health Care (PROHC)

VP Industrials (PROIND)

VP International (PROINT)

VP Internet (PRONET)

VP Japan (PROJP)

VP NASDAQ-100 (PRON)

VP Oil and Gas (PROOG)

VP Pharmaceuticals (PROPHR)

VP Precious Metals (PROPM)

VP Real Estate (PRORE)

VP Rising Rates Opportunity (PRORRO)

VP Semiconductor (PROSCN)

VP Short Emerging Markets (PROSEM)

VP Short International (PROSIN)

VP Short NADSAQ-100 (PROSN)

VP Technology (PROTEC)

VP Telecommunications (PROTEL)

VP U.S. Government Plus (PROGVP)

VP Ultra NASDAQ-100 (PROUN)

VP Utilities (PROUTL)

RYDEX FUNDS

Variable Trust: All-Asset Aggressive Strategy Fund (RVAAS)

Variable Trust: All-Asset Conservative Strategy Fund (RVACS)

Variable Trust: All-Asset Moderate Strategy Fund (RVAMS)

Variable Trust: All-Cap Opportunity Fund (RSRF)

Variable Trust: Alternative Strategies Allocation Fund (RVASA)

SGI Variable Trust - CLS AdvisorOne Amerigo Fund (RVAMR)

Variable Trust: Banking Fund (RBKF)

Variable Trust: Basic Materials Fund (RBMF)

SGI Variable Trust - CLS AdvisorOne Select Allocation Fund (RVBER)

Variable Trust: Biotechnology Fund (RBF)

SGI Variable Trust - CLS AdvisorOne Clermont Fund (RVCLR)

Variable Trust: Commodities Strategy Fund (RVCMD)

Variable Trust: Consumer Products Fund (RCPF)

Variable Trust: Dow 2x Strategy Fund (RVLDD)

Variable Trust: DWA Flexible Allocation Fund (RVDFA)

Variable Trust: DWA Sector Rotation Fund (RVDSR)

Variable Trust: Electronics Fund (RELF)

Variable Trust: Energy Fund (RENF)

Variable Trust: Energy Services Fund (RESF)

Variable Trust: Europe 1.25x Strategy Fund (RLCE)

Variable Trust: Financial Services Fund (RFSF)

Variable Trust: Government Long Bond 1.2x Strategy Fund (RUGB)

Variable Trust: Health Care Fund (RHCF)

Variable Trust: Internet Fund (RINF)

Variable Trust: Inverse Dow 2x Strategy Fund (RVIDD)

Variable Trust: Inverse Government Long Bond Strategy Fund (RJNF)

Variable Trust: Inverse Mid-Cap Strategy Fund (RVIMC)

Variable Trust: Inverse NASDAQ-100(R) Strategy Fund (RAF)

Variable Trust: Inverse Russell 2000(R) Strategy Fund (RVISC)

Variable Trust: Inverse S&P 500 Strategy Fund (RUF)

Variable Trust: Japan 2x Strategy Fund (RLCJ)

Variable Trust: Leisure Fund (RLF)

Variable Trust: Managed Futures Strategy Fund (RVMFU)

Variable Trust: Mid-Cap 1.5x Strategy Fund (RMED)

Variable Trust: Multi-Hedge Strategies Fund (RVARS)

Variable Trust: NASDAQ-100(R) 2x Strategy Fund (RVF)

Variable Trust: NASDAQ-100(R) Fund (ROF)

Variable Trust: Nova Fund (RNF)

Variable Trust: Precious Metals Fund (RPMF)

Variable Trust: Real Estate Fund (RREF)

Variable Trust: Retailing Fund (RRF)

Variable Trust: Russell 2000(R) 1.5x Strategy Fund (RMEK)

Variable Trust: S&P 500 2x Strategy Fund (RTF)

Variable Trust: S&P 500 Pure Growth Fund (RVLCG)

Variable Trust: S&P 500 Pure Value Fund (RVLCV)

Variable Trust: S&P MidCap 400 Pure Growth Fund (RVMCG)

Variable Trust: S&P MidCap 400 Pure Value Fund (RVMCV)

Variable Trust: S&P SmallCap 600 Pure Growth Fund (RVSCG)

Variable Trust: S&P SmallCap 600 Pure Value Fund (RVSCV)

Variable Trust: Strengthening Dollar 2x Strategy Fund (RVSDL)

Variable Trust: Technology Fund (RTEC)

Variable Trust: Telecommunications Fund (RTEL)

Variable Trust: Transportation Fund (RTRF)

Variable Trust: Utilities Fund (RUTL)

Variable Trust: Weakening Dollar 2x Strategy Fund (RVWDL)

VAN ECK ASSOCIATES CORPORATION

VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)

VIP Trust - Multi-Manager Alternatives Fund: Initial Class (VWAR)

WADDELL & REED, INC.

Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy (WRASP)

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.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

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.

(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 7.0%, 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 Acccount 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 not to exceed 7% of purchase payments redeemed. 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.

For Smith Barney contracts, the Company deducts a contract maintenance charge of $30, 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 table on the following page illustrates the annual rate for all contract level charges by product, as well as the maximum variable account charge per product. The table also summarizes the contract level options available to contract holders. The options are described in more detail in the applicable product prospectus.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Nationwide Variable Account - 4 Options	Citigroup Global			Market Flex Annuity			Market Flex II Annuity			Market Flex Advisor Annuity
Variable Account Charges - Recurring .	1.30%			1.15%			1.25%			0.45%
CDSC Option:
Four Year CDSC		-			-			0.35	%		-
No CDSC		-			0.20	%		0.40	%		-
Death Benefit Options:
Highest Anniversary Death Benefit		-			0.20	%		0.30	%		-
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders or (iii) highest contract value prior to contract age specifications less surrenders.
Highest Anniversary or 5% Enhanced Death Benefit		-			0.25	%		-			-
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders,(iii) highest contract value prior to contract age specifications less surrenders, or (iv) the 5% interest anniversary value.
Return of Premium Enhanced Death Benefit Option		-			-			0.20	%		0.20	%
If death before annuitization, benefit will be greatest of (i) contract value, (ii) purchase payments less surrenders.
Extra Value Option (EV):
Fee assessed to assets of the variable account during the first seven contract years in exchange for an application of Extra Value Credit based on purchase payments made during the first 12 months that contract is in force.
3% Extra Value Credit Option		-			0.45	%		0.40	%		0.40	%
4% Extra Value Credit Option		-			-			0.55	%		0.55	%
iFLEX Option		-			-			0.60	%		-
Withdrawal benefit providing contract owner a choice as to the form the benefit will take. Note: May not be elected if the No CDSC option is elected.
Maximum Variable Account Charges (1)		1.30	%		2.05	%		3.10	%		1.55	%

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

The following table provides mortality and expense risk charges by asset fee rates for the period ended December 31, 2011.

	Total		MLVGA3		CSCRS		MVGTAS		MSEMB		MSVGT2		VKVGR2		GVAAA2
0.45%	$	119,319	$	840	$	448	$	-	$	-	$	-	$	17	$	867
0.65%		12,842		148		85		1		4		-		-		-
0.70%		2,607		-		-		-		-		-		-		-
0.80%		111		29		-		-		-		-		-		-
0.85%		1,591		-		-		-		-		-		-		-
0.90%		987		-		-		-		-		-		-		-
0.95%		4,026		108		-		-		-		-		-		-
1%		3,170		-		-		-		-		-		-		-
1.10%		1,699		-		-		-		-		-		-		-
1.15%		2,991,269		55,448		4,156		55		29		24		108		212
1.20%		524		-		-		-		-		-		-		-
1.25%		551,659		13,918		2,393		121		4		4		60		228
1.30%		28,020		-		-		-		-		-		-		-
1.35%		4,988,258		109,934		14,143		-		536		315		150		571
1.40%		957,696		21,713		69		88		-		-		-		-
1.45%		45,361		939		-		-		-		-		-		-
1.55%		1,580,413		34,328		1,487		-		68		-		42		-
1.60%		1,060,314		24,997		2,935		42		2		41		16		94
1.65%		768,112		6,453		430		-		-		-		-		-
1.70%		4		-		-		-		-		-		-		-
1.80%		280,630		2,323		1,388		-		264		-		1		192
1.85%		63,307		510		211		-		-		-		-		-
1.90%		875,541		38,035		9,238		-		962		149		104		781
1.95%		218,340		5,401		218		-		-		-		-		18
2%		84,311		216		-		-		77		-		-		11
2.05%		11,187		-		-		-		-		-		-		-
2.10%		254,573		5,269		1,201		297		834		-		-		132
2.15%		143,355		-		161		-		-		-		-		-
2.20%		32,555		225		1		-		-		-		-		205
2.25%		1,007		6		2		-		-		-		-		-
2.30%		79,585		854		7		-		-		-		-		232
2.35%		36,016		-		96		-		71		-		-		-
2.40%		2,824		-		-		-		-		-		-		-
2.45%		93,769		268		-		-		-		-		-		115
2.50%		72,126		-		-		-		-		-		-		-
2.55%		1,258		-		-		-		-		-		-		-
2.85%		7,801		-		-		-		-		-		-		-
Totals	$	15,376,167	$	321,962	$	38,669	$	604	$	2,851	$	533	$	498	$	3,658
	HIBF3		GEM3		NVCRA2		NVCRB2		NVCCA2		NVCCN2		NVCMD2		NVCMA2
0.45%	$	2,613	$	31	$	-	$	188	$	-	$	187	$	141	$	232
0.65%		48		-		-		-		-		195		20		167
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		-		-		-		13		-		108		-
0.90%		-		-		-		-		-		-		-		-
0.95%		108		-		-		29		-		-		-		-
1%		189		-		-		-		-		-		-		1
1.10%		-		-		-		-		-		-		-		-
1.15%		166,610		5,338		96		3,361		5,824		29,432		13,010		4,843
1.20%		-		-		-		-		-		-		-		-
1.25%		29,923		951		106		386		126		578		3,408		1,640
1.30%		-		-		-		-		-		-		-		-
1.35%		263,961		12,186		3,078		10,811		4,226		23,029		9,931		3,825

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

1.40%		18,431		459		714		196		610		1,958		7,092		3,850
1.45%		2,123		39		-		-		-		180		-		-
1.55%		98,539		3,599		-		1,946		2,840		4,805		4,736		1,301
1.60%		17,557		4,956		841		1,760		242		4,487		2,486		133
1.65%		25,581		806		1,359		291		6,113		8,155		2,376		2,252
1.70%		-		-		-		-		-		-		-		-
1.80%		7,496		22		492		231		288		629		828		1,262
1.85%		1,147		957		-		-		-		-		-		-
1.90%		16,320		233		1,945		2,698		475		1,744		806		129
1.95%		9,812		-		531		265		543		142		2,015		-
2%		1,673		-		-		-		4,216		57		2,322		-
2.05%		-		-		-		-		-		1,017		-		-
2.10%		2,223		55		-		-		-		-		-		50
2.15%		-		109		-		2,782		-		392		251		-
2.20%		-		91		-		-		380		-		597		389
2.25%		-		-		-		-		-		-		-		-
2.30%		-		-		-		-		41		109		-		-
2.35%		-		-		-		-		-		682		-		-
2.40%		-		-		-		-		-		-		-		-
2.45%		2,032		8		-		1,378		-		-		-		-
2.50%		-		38		-		24		81		2,873		427		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	666,386	$	29,878	$	9,162	$	26,346	$	26,018	$	80,651	$	50,554	$	20,074
	NVCMC2		NVLCP2		TRF3		GBF3		GVIDA6		NVDBL6		NVDCA6		GVIDC6
0.45%	$	265	$	9	$	1	$	658	$	-	$	15	$	-	$	2,096
0.65%		-		-		-		118		-		-		-		-
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		-		-		55		-		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		279		-		-		-		-
1%		-		-		-		-		-		-		-		-
1.10%		-		-		-		-		-		-		-		-
1.15%		588		2,674		1,422		100,739		12,594		1,380		1,999		51,261
1.20%		-		-		-		-		-		-		-		-
1.25%		-		632		195		2,621		1,196		-		759		2,575
1.30%		-		-		-		-		-		-		-		-
1.35%		4,368		4,369		1,762		106,789		19,992		2,860		668		97,040
1.40%		2,467		89		712		16,010		7,095		263		-		10,935
1.45%		-		7		-		213		18		-		-		-
1.55%		920		776		308		78,846		3,477		1,231		11		23,358
1.60%		3,825		1,445		-		21,996		21,429		-		52		23,143
1.65%		1,166		5,984		-		8,124		412		139		519		11,008
1.70%		-		-		-		-		-		-		-		-
1.80%		669		446		-		487		122		-		-		367
1.85%		-		-		-		394		-		-		-		463
1.90%		2,252		1,043		-		2,154		-		-		2,949		7,979
1.95%		22		183		-		1,208		-		136		141		313
2%		41		63		-		70		-		8		84		1,815
2.05%		-		-		-		-		-		-		-		-
2.10%		439		-		-		163		-		-		-		2,051
2.15%		-		6		-		320		-		-		-		-
2.20%		-		-		-		-		-		-		-		-
2.25%		-		-		-		-		-		-		-		-
2.30%		-		-		56		-		-		41		-		6,244
2.35%		37		23		-		-		-		-		-		-
2.40%		-		-		-		-		-		-		-		-
2.45%		-		-		-		1,047		-		-		-		289
2.50%		-		-		-		-		-		24		-		24
2.55%		-		-		-		-		-		-		-		-
2.85%		3,847		-		-		-		-		-		-		-
	$	20,906	$	17,749	$	4,456	$	342,291	$	66,335	$	6,097	$	7,182	$	240,961
	GVIDM6		GVDMA6		GVDMC6		SAM		NVMIG6		GVDIV6		NVMLG2		NVMLV2
0.45%	$	97	$	-	$	972	$	-	$	1,450	$	1,628	$	17	$	93
0.65%		-		-		-		-		-		-		-		5
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		27		-		-		-		-		-
0.85%		-		-		-		-		-		-		-		1
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		56
1%		-		-		-		-		-		-		-		-
1.10%		-		-		-		-		-		-		-		-
1.15%		57,643		23,877		25,596		-		1,974		790		1,285		470
1.20%		-		-		-		-		-		-		-		-
1.25%		1,564		1,262		16,381		-		230		637		189		125
1.30%		-		-		-		365		-		-		-		-
1.35%		129,136		49,009		91,042		-		7,543		3,163		2,301		1,980
1.40%		30,033		9,065		20,172		-		798		40		167		531
1.45%		-		-		223		-		-		-		-		-
1.55%		43,867		18,419		11,820		-		3,246		2,201		380		73
1.60%		21,116		18,859		25,167		-		690		133		460		154
1.65%		31,226		713		18,493		-		138		-		8		15
1.70%		-		-		-		-		-		-		-		-
1.80%		540		70		71		-		80		-		10		-
1.85%		-		-		-		-		-		-		-		-
1.90%		1,883		-		12		-		1,052		111		36		391
1.95%		-		-		-		-		38		-		9		18
2%		125		-		81		-		-		-		250		177
2.05%		-		-		-		-		-		-		-		-
2.10%		-		-		-		-		100		-		-		5
2.15%		-		-		-		-		113		-		-		-
2.20%		176		-		-		-		-		-		103		-
2.25%		-		-		18		-		-		-		-		-
2.30%		-		-		-		-		-		-		-		-
2.35%		-		-		-		-		-		-		-		-
2.40%		-		-		-		-		-		-		-		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

2.45%		-		-		-		-		187		-		-		-
2.50%		1,711		-		-		-		-		-		-		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	319,117	$	121,274	$	210,075	$	365	$	17,639	$	8,703	$	5,215	$	4,094
	NVMMG1		NVMMG2		NVMMV2		SCGF3		SCVF3		SCF3		NVSTB2		NVMM2
0.45%	$	-	$	559	$	83	$	47	$	15	$	57	$	1,069	$	22,500
0.65%		-		8		1		-		-		43		-		2,579
0.70%		-		-		-		-		-		-		-		89
0.80%		-		-		-		-		-		5		-		3
0.85%		-		-		-		-		-		-		-		224
0.90%		-		-		-		-		-		-		-		90
0.95%		-		-		-		-		25		-		-		157
1%		-		-		-		-		-		-		-		798
1.10%		-		-		-		-		-		-		-		190
1.15%		1,152		3,875		696		2,335		2,235		7,792		10,974		609,704
1.20%		-		-		-		-		-		-		-		38
1.25%		-		21		-		241		342		1,309		2,380		161,145
1.30%		-		-		-		-		-		-		-		-
1.35%		3,593		13,321		5,049		2,830		6,187		22,037		11,150		1,051,370
1.40%		1,073		237		151		460		922		3,623		2,049		178,555
1.45%		-		-		-		-		-		-		57		24,911
1.55%		21		1,296		250		485		215		2,833		1,694		330,887
1.60%		211		296		374		907		805		811		1,883		293,940
1.65%		-		155		46		367		-		915		860		231,352
1.70%		-		-		-		-		-		-		-		-
1.80%		-		3		1		-		-		2		34		71,197
1.85%		-		-		-		-		505		-		-		20,287
1.90%		-		602		52		589		63		376		7		252,038
1.95%		-		19		1		22		-		58		5		63,154
2%		-		53		100		105		-		-		-		14,794
2.05%		-		-		-		-		-		-		-		1,934
2.10%		-		55		174		68		23		221		18		95,297
2.15%		-		-		55		106		-		-		527		45,649
2.20%		-		-		-		-		-		106		-		9,792
2.25%		-		-		-		-		-		-		-		-
2.30%		-		-		-		-		-		-		-		20,345
2.35%		-		-		-		-		-		-		-		3,360
2.40%		-		-		-		-		-		-		-		723
2.45%		-		-		8		16		70		-		8		18,909
2.50%		-		-		-		-		-		-		-		5,708
2.55%		-		-		-		-		-		-		-		137
2.85%		-		-		-		-		-		-		-		3,954
	$	6,050	$	20,500	$	7,041	$	8,578	$	11,407	$	40,188	$	32,715	$	3,535,810
	ALVBWB		ACVIG3		ACVIP2		ACVU3		ACVV3		FQB		FAM2		FC2R
0.45%	$	15	$	72	$	1,561	$	-	$	96	$	-	$	51	$	-
0.65%		-		-		908		-		-		-		-		-
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		14		14		-		77		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		106		-		-		95
1%		-		-		-		-		-		-		-		-
1.10%		-		-		-		-		-		-		-		-
1.15%		13		10,305		2,166		3,405		26,558		-		748		37,354
1.20%		-		-		-		-		-		-		-		-
1.25%		-		3,848		902		-		4,285		-		88		-
1.30%		-		-		-		-		-		62		-		-
1.35%		89		30,205		10,961		1,197		43,440		-		91		51,930
1.40%		90		6,448		464		1,986		10,704		-		-		22,338
1.45%		-		-		26		-		17		-		-		-
1.55%		21		4,663		2,293		300		3,173		-		-		8,437
1.60%		23		1,584		2,407		749		3,190		-		86		3,978
1.65%		-		273		1,667		-		569		-		201		-
1.70%		-		-		-		-		-		-		-		-
1.80%		-		2		2,484		-		1,529		-		34		-
1.85%		-		-		31		-		1,267		-		-		-
1.90%		-		729		1,874		-		1,488		-		94		-
1.95%		-		-		1,196		-		139		-		18		-
2%		-		-		165		-		-		-		11		-
2.05%		-		-		2,419		-		-		-		-		-
2.10%		-		-		1,725		-		470		-		-		-
2.15%		-		224		535		-		-		-		-		-
2.20%		-		-		-		-		-		-		202		-
2.25%		-		-		260		-		-		-		-		-
2.30%		-		-		-		-		-		-		229		-
2.35%		-		48		5,944		-		-		-		-		-
2.40%		-		-		-		-		-		-		-		-
2.45%		-		33		-		-		139		-		56		-
2.50%		-		-		2,721		-		-		-		-		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	251	$	58,448	$	42,723	$	7,637	$	97,247	$	62	$	1,909	$	124,132
	FEI2R		FG2R		FTVFA2		SBTRP		SBVI		SBIEP		PMVAAD		PMVFAD
0.45%	$	80	$	174	$	875	$	-	$	-	$	-	$	50	$	4,264
0.65%		90		20		155		-		-		-		-		1,032
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		37		-		-		-		-		-		2
0.90%		-		-		-		-		-		-		-		-
0.95%		-		133		167		-		-		-		8		-
1%		-		-		322		-		-		-		-		54
1.10%		-		-		-		-		-		-		-		-
1.15%		23,200		20,224		5,537		-		-		-		6,419		5,761
1.20%		-		-		-		-		-		-		-		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

1.25%		649		239		4,330		-		-		-		91		2,017
1.30%		-		-		-		452		25,890		1,251		-		-
1.35%		22,741		37,108		4,819		-		-		-		2,425		9,857
1.40%		10,405		7,499		2,187		-		-		-		294		1,256
1.45%		-		-		-		-		-		-		113		-
1.55%		3,889		6,951		1,830		-		-		-		1,212		7,217
1.60%		1,709		3,024		1,553		-		-		-		526		2,691
1.65%		626		740		603		-		-		-		261		1,190
1.70%		-		-		-		-		-		-		-		-
1.80%		15		138		1,773		-		-		-		927		412
1.85%		-		-		-		-		-		-		-		1,148
1.90%		2,295		2,167		253		-		-		-		608		1,531
1.95%		40		63		292		-		-		-		12		206
2%		-		8		-		-		-		-		37		112
2.05%		-		-		-		-		-		-		-		-
2.10%		-		-		24		-		-		-		405		1,247
2.15%		-		-		-		-		-		-		667		18
2.20%		-		154		-		-		-		-		308		-
2.25%		-		-		-		-		-		-		-		-
2.30%		-		173		123		-		-		-		-		-
2.35%		-		-		-		-		-		-		174		496
2.40%		-		-		-		-		-		-		-		-
2.45%		29		230		29		-		-		-		830		50
2.50%		-		-		-		-		-		-		145		57
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	65,768	$	79,082	$	24,872	$	452	$	25,890	$	1,251	$	15,512	$	40,618
	PMVLAD		PMVTRD		PMVRSD		PMVEBD		PMVGBD		PMVHYD		PIVEM2		PIHYB2
0.45%	$	401	$	1,640	$	4,134	$	3,220	$	9,905	$	3,989	$	864	$	668
0.65%		-		231		176		547		256		58		14		98
0.70%		-		-		90		57		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		-		21		1		41		39		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		179		197		278		61		106
1%		-		-		21		373		329		17		-		-
1.10%		-		-		-		-		-		-		-		-
1.15%		3,438		6,776		5,431		10,867		12,125		33,951		7,879		6,904
1.20%		-		-		-		-		-		-		1		-
1.25%		4,154		1,130		5,683		2,556		3,701		6,056		3,256		4,708
1.30%		-		-		-		-		-		-		-		-
1.35%		9,597		7,472		20,059		28,686		39,662		49,858		28,578		14,919
1.40%		229		1,120		696		1,561		8,024		4,849		2,053		3,169
1.45%		-		117		529		136		412		287		148		3,276
1.55%		4,252		5,749		5,411		8,586		7,488		22,619		3,947		4,939
1.60%		8,055		4,249		7,264		5,764		7,541		21,646		3,033		3,050
1.65%		8,885		1,605		4,532		5,852		7,475		53,810		643		8,870
1.70%		-		-		-		-		-		-		-		-
1.80%		1,027		1,811		1,908		6,786		1,555		4,556		273		2,884
1.85%		-		52		213		1,461		2,155		264		160		734
1.90%		3,972		8,392		2,703		10,190		9,753		4,268		18,343		490
1.95%		1,867		502		1,192		1,509		1,138		10,388		130		2,943
2%		11		171		90		109		116		496		-		292
2.05%		2,302		-		-		-		-		-		-		-
2.10%		147		313		549		4,749		4,423		1,721		1,690		2,221
2.15%		2,512		2,184		232		1,677		33		6,676		-		-
2.20%		281		129		42		-		-		1,207		-		-
2.25%		5		-		2		-		-		-		-		-
2.30%		117		-		70		658		682		-		1		61
2.35%		5,543		75		376		5		361		144		-		410
2.40%		-		-		-		-		-		-		-		-
2.45%		667		498		85		-		77		3		103		420
2.50%		2,689		40		-		390		-		41		-		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	60,151	$	44,256	$	61,509	$	95,919	$	117,449	$	227,221	$	71,177	$	61,162
	PROUSN		PROAHY		PROA30		PROBNK		PROBM		PROBR		PROBIO		PROBL
0.45%	$	-	$	1,041	$	402	$	-	$	6	$	3,558	$	22	$	165
0.65%		5		68		14		-		41		999		41		9
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		18		-		-		-		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		-
1%		-		7		-		-		-		3		-		1
1.10%		-		-		-		-		-		-		-		-
1.15%		1,043		10,148		1,597		14		268		4,448		89		4,343
1.20%		-		-		-		-		-		-		-		-
1.25%		2,771		8,382		1,466		3		4		199		72		5,323
1.30%		-		-		-		-		-		-		-		-
1.35%		634		22,491		7,424		1,056		714		3,817		101		13,191
1.40%		175		926		160		4		-		41		5		562
1.45%		6		87		58		1		-		32		-		132
1.55%		1,946		10,316		2,998		34		256		2,803		383		2,584
1.60%		105		11,345		5,782		1		45		752		167		9,129
1.65%		109		12,303		1,009		198		169		1,357		631		18,976
1.70%		-		-		-		-		-		-		-		-
1.80%		49		7,834		60		8		35		1,310		141		25,561
1.85%		-		85		317		359		-		649		-		2,345
1.90%		517		4,914		664		-		284		1,302		94		4,161
1.95%		111		701		30		-		94		129		60		197
2%		119		330		46		66		1		311		9		1,369
2.05%		-		-		-		-		-		-		-		-
2.10%		574		864		153		99		62		992		104		3,389
2.15%		4,320		1,369		-		1		9		335		30		1,318
2.20%		72		211		-		-		3		73		16		-
2.25%		-		-		-		-		-		-		-		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

2.30%		-		59		762		-		-		210		7		829
2.35%		33		171		-		-		2		108		10		108
2.40%		-		-		-		-		-		-		-		-
2.45%		185		377		-		1		16		573		38		1,334
2.50%		6		-		-		-		-		5		-		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	12,780	$	94,047	$	22,942	$	1,845	$	2,009	$	24,006	$	2,020	$	95,026
	PROCG		PROCS		PROEM		PROE30		PROFIN		PROHC		PROIND		PROINT
0.45%	$	19	$	1	$	335	$	14	$	-	$	-	$	6	$	87
0.65%		-		-		14		16		-		-		-		20
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		5		32		-		-		-		5		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		-
1%		1		-		-		-		-		1		-		-
1.10%		-		-		-		-		-		-		-		-
1.15%		314		163		8,541		921		21		603		221		9,494
1.20%		-		-		2		1		-		-		-		1
1.25%		267		124		4,473		127		24		407		23		783
1.30%		-		-		-		-		-		-		-		-
1.35%		442		220		16,575		658		221		494		2,018		20,080
1.40%		6		77		1,408		101		122		3		246		1,297
1.45%		-		3		18		-		-		-		7		-
1.55%		148		131		3,593		718		108		629		228		850
1.60%		20		198		7,441		960		265		443		691		1,599
1.65%		123		80		3,847		79		89		872		582		787
1.70%		-		-		-		-		-		-		-		-
1.80%		69		65		837		71		-		223		290		935
1.85%		-		-		80		227		46		8		-		123
1.90%		435		269		7,222		29		274		556		1,265		9,290
1.95%		52		6		176		62		23		10		19		105
2%		4		14		111		23		-		16		59		13
2.05%		-		-		-		-		-		-		-		-
2.10%		5		-		127		56		7		5		28		27
2.15%		-		14		197		-		8		80		4		216
2.20%		-		7		41		-		3		10		-		2
2.25%		-		-		-		-		-		-		-		-
2.30%		-		-		91		-		-		-		162		-
2.35%		-		7		18		1		2		13		22		1
2.40%		-		-		-		-		-		-		-		-
2.45%		-		15		67		-		9		24		-		16
2.50%		-		-		-		-		-		-		-		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	1,910	$	1,426	$	55,214	$	4,064	$	1,222	$	4,402	$	5,871	$	45,726
	PRONET		PROJP		PRON		PROOG		PROPHR		PROPM		PRORE		PRORRO
0.45%	$	-	$	25	$	240	$	82	$	1	$	131	$	17	$	4,191
0.65%		-		3		10		439		-		1,078		-		71
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		3		-		1		-		-		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		-
1%		-		-		9		-		-		-		-		104
1.10%		-		-		-		-		-		-		-		-
1.15%		17		588		3,551		3,404		114		3,451		497		3,020
1.20%		-		-		-		-		-		-		-		-
1.25%		52		12		523		3,867		93		556		639		945
1.30%		-		-		-		-		-		-		-		-
1.35%		119		1,645		5,165		23,992		962		4,024		608		1,719
1.40%		87		196		3,207		525		219		257		33		431
1.45%		-		-		147		44		8		112		8		-
1.55%		114		258		1,820		7,550		920		3,436		420		2,720
1.60%		31		1,326		2,123		1,745		1,146		816		524		5,643
1.65%		23		82		1,498		784		87		7,342		364		2,830
1.70%		-		-		-		-		-		-		-		-
1.80%		118		680		537		1,419		520		3,778		55		3,554
1.85%		-		432		1,166		2		-		350		-		-
1.90%		15		13		2,544		16,315		1,239		1,353		310		249
1.95%		1		15		536		529		228		534		3		50
2%		-		3		186		121		81		412		4		42
2.05%		-		-		-		-		-		-		-		-
2.10%		110		12		520		978		142		655		-		1,349
2.15%		-		-		418		797		28		33		65		96
2.20%		-		-		37		120		10		14		29		16
2.25%		-		-		-		-		-		-		-		-
2.30%		-		2		395		1,537		-		73		4		-
2.35%		-		-		72		431		38		6		13		31
2.40%		-		-		-		-		-		-		-		-
2.45%		-		-		723		192		24		31		75		41
2.50%		-		-		-		-		-		-		8		23
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	690	$	5,292	$	25,428	$	64,873	$	5,860	$	28,442	$	3,676	$	27,125
	PROSCN		PROSEM		PROSIN		PROSN		PROTEC		PROTEL		PROGVP		PROUN
0.45%	$	-	$	82	$	1	$	1	$	1	$	-	$	2,534	$	382
0.65%		5		-		-		-		-		-		92		2
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		-		-		-		-		37		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		-
1%		-		-		-		-		1		-		107		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

1.10%		-		-		-		-		-		-		-		-
1.15%		37		259		283		579		129		32		3,756		1,583
1.20%		-		-		2		-		-		-		-		-
1.25%		49		20		42		45		163		23		1,486		183
1.30%		-		-		-		-		-		-		-		-
1.35%		100		1,881		1,734		850		1,428		143		11,335		5,862
1.40%		13		609		2,724		204		185		101		4,118		218
1.45%		-		-		2		50		7		37		63		2
1.55%		321		1,920		278		1,468		429		53		7,540		1,941
1.60%		25		1,920		3,573		337		1,273		175		2,550		411
1.65%		100		608		164		234		196		260		1,260		89
1.70%		-		-		-		-		-		-		-		-
1.80%		1		175		348		256		379		35		1,525		226
1.85%		-		113		4		309		-		-		9		733
1.90%		75		344		1,727		2,410		1,397		-		1,554		2,439
1.95%		1		185		116		270		198		5		67		420
2%		-		177		429		721		74		4		593		39
2.05%		-		-		-		-		-		-		-		-
2.10%		-		556		1,180		1,926		166		63		1,739		173
2.15%		29		89		167		71		5		-		145		1,735
2.20%		15		45		66		1		-		-		8		52
2.25%		-		-		-		-		-		-		-		-
2.30%		-		6		72		86		7		-		-		178
2.35%		7		55		90		17		24		-		56		40
2.40%		-		-		-		-		-		-		-		-
2.45%		37		108		184		148		-		-		66		484
2.50%		-		-		15		-		-		-		9		17
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	815	$	9,152	$	13,201	$	9,983	$	6,099	$	931	$	40,612	$	17,209
	PROUTL		RVAAS		RVACS		RVAMS		RSRF		RVASA		RVAMR		RBKF
0.45%	$	18	$	-	$	263	$	7	$	2,462	$	10	$	42	$	13
0.65%		-		-		-		-		1		-		-		1
0.70%		-		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		15		-		-		-		97		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		15		-		36		-
1%		1		-		-		-		32		-		-		-
1.10%		-		-		-		-		134		-		-		-
1.15%		590		14,838		6,248		20,257		27,318		13,623		57,126		4,605
1.20%		-		-		-		-		-		-		-		-
1.25%		165		53		6,708		5,239		3,179		2,878		3,673		492
1.30%		-		-		-		-		-		-		-		-
1.35%		787		2,771		13,722		24,683		63,335		7,371		37,369		7,738
1.40%		280		238		3,107		7,164		10,608		1,078		3,539		945
1.45%		80		-		90		-		170		126		-		206
1.55%		609		382		805		5,246		26,698		15,012		6,878		1,475
1.60%		101		530		3,077		4,857		4,670		1,718		7,032		925
1.65%		842		490		-		1,162		451		826		4,488		1,328
1.70%		-		-		-		-		-		-		-		-
1.80%		330		-		239		1,216		254		1,860		2,371		70
1.85%		11		-		-		-		-		-		-		218
1.90%		1,413		-		6		249		3,488		3,452		8,064		2,197
1.95%		69		1,392		1,882		365		1,140		3,347		3,250		181
2%		-		229		-		81		548		118		7,448		23
2.05%		7		-		-		-		-		-		-		-
2.10%		133		26		189		-		718		577		1,584		285
2.15%		68		-		1,304		-		76		-		13,648		4
2.20%		3		376		-		-		135		-		3,204		-
2.25%		1		-		212		-		-		-		-		-
2.30%		-		2,420		-		1,307		190		-		5,207		-
2.35%		19		-		-		-		31		228		-		-
2.40%		-		-		-		-		62		-		729		-
2.45%		8		-		-		-		-		-		24,538		217
2.50%		7		118		-		146		238		63		5,297		-
2.55%		-		-		-		-		190		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	5,557	$	23,863	$	37,852	$	71,979	$	146,240	$	52,287	$	195,523	$	20,923
	RBMF		RVBER		RBF		RVCLR		RVCMD		RCPF		RVLDD		RVDFA
0.45%	$	910	$	16	$	42	$	2,612	$	229	$	61	$	39	$	-
0.65%		10		-		8		-		56		9		10		-
0.70%		175		-		-		-		23		163		-		-
0.80%		-		-		-		-		5		-		-		-
0.85%		-		-		-		-		-		6		-		-
0.90%		16		-		34		-		-		93		-		-
0.95%		-		-		-		-		-		106		-		339
1%		-		-		12		-		38		25		-		66
1.10%		-		-		-		-		-		-		-		-
1.15%		39,571		33,697		12,800		31,400		32,379		28,039		27,897		35,434
1.20%		5		-		2		-		55		16		-		-
1.25%		4,266		2,973		2,354		1,715		6,108		1,822		8,270		9,881
1.30%		-		-		-		-		-		-		-		-
1.35%		62,807		26,258		34,232		23,878		43,223		40,699		31,639		70,108
1.40%		17,996		1,498		10,766		1,103		3,787		14,990		3,454		14,624
1.45%		5		-		5		-		270		96		-		54
1.55%		14,886		4,613		9,552		9,607		9,330		10,045		6,594		84,486
1.60%		8,367		8,172		5,828		11,694		8,334		6,326		1,988		20,364
1.65%		4,973		2,783		2,997		4,239		3,304		3,660		2,987		13,692
1.70%		-		-		-		-		1		-		-		-
1.80%		2,417		1,535		1,381		1,679		3,705		1,186		5,712		834
1.85%		504		-		25		-		245		25		35		8
1.90%		5,052		8,192		7,698		16,685		3,839		3,995		5,911		3,297
1.95%		861		2,486		513		9,418		639		586		1,669		27,269
2%		294		6,870		139		4,141		598		292		1,334		4,221
2.05%		-		-		-		-		-		-		-		1,858
2.10%		3,943		925		3,976		791		1,290		2,833		5,213		602

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

2.15%		783		4,645		750		3,828		384		153		4,637		1,460
2.20%		743		2,014		94		2,383		12		228		59		233
2.25%		-		-		-		-		-		-		-		355
2.30%		123		1,107		880		310		756		603		3		7,170
2.35%		45		-		25		10		548		44		34		7,800
2.40%		21		409		16		77		56		30		152		-
2.45%		1,717		8,501		798		2,339		380		171		546		-
2.50%		409		4,070		277		10,171		771		1,071		374		15,250
2.55%		-		-		-		-		25		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	170,899	$	120,764	$	95,204	$	138,080	$	120,390	$	117,373	$	108,557	$	319,405
	RVDSR		RELF		RENF		RESF		RLCE		RFSF		RUGB		RHCF
0.45%	$	186	$	36	$	377	$	163	$	116	$	12	$	2,645	$	57
0.65%		-		9		351		23		34		5		133		56
0.70%		-		103		206		-		-		99		39		82
0.80%		-		-		-		6		-		-		-		-
0.85%		23		-		-		-		-		-		116		5
0.90%		-		33		18		-		-		-		-		34
0.95%		349		-		-		-		-		-		9		-
1%		80		-		24		-		1		-		7		5
1.10%		-		-		-		-		-		-		29		-
1.15%		67,011		13,724		42,009		44,530		15,192		13,037		53,505		22,985
1.20%		-		8		21		26		1		1		-		7
1.25%		6,318		746		8,522		8,537		1,056		2,020		6,482		3,543
1.30%		-		-		-		-		-		-		-		-
1.35%		161,008		25,676		79,452		63,021		15,314		21,053		74,243		41,609
1.40%		40,956		8,303		23,291		18,094		3,257		6,167		7,528		12,864
1.45%		211		-		98		488		-		320		521		1,056
1.55%		63,720		4,430		14,445		19,997		2,676		2,554		20,148		13,200
1.60%		35,506		2,310		10,875		9,124		2,482		2,557		25,480		5,510
1.65%		14,580		1,796		9,895		7,385		1,747		329		16,286		3,163
1.70%		-		-		-		-		-		-		-		-
1.80%		1,599		451		5,378		4,780		125		397		2,081		3,833
1.85%		9,185		-		424		758		508		9		330		44
1.90%		7,736		1,872		8,671		6,661		739		4,241		6,527		7,181
1.95%		2,822		247		1,936		1,307		22		35		3,260		368
2%		4,447		30		354		182		112		146		2,370		410
2.05%		-		-		304		-		-		-		-		-
2.10%		164		773		3,212		2,348		140		721		5,581		522
2.15%		425		167		801		720		14		18		747		361
2.20%		362		204		228		498		-		169		278		154
2.25%		-		-		31		5		-		-		-		-
2.30%		3,584		43		1,329		448		-		-		-		759
2.35%		-		-		565		238		-		197		990		11
2.40%		-		9		50		7		-		-		50		2
2.45%		-		370		813		1,154		8		117		599		148
2.50%		376		344		1,050		373		-		277		137		240
2.55%		-		-		-		-		-		-		125		-
2.85%		-		-		-		-		-		-		-		-
	$	420,648	$	61,684	$	214,730	$	190,873	$	43,544	$	54,481	$	230,246	$	118,209
	RINF		RVIDD		RJNF		RVIMC		RAF		RVISC		RUF		RLCJ
0.45%	$	34	$	600	$	281	$	66	$	182	$	1,072	$	41	$	56
0.65%		16		45		24		14		13		37		38		43
0.70%		124		-		-		-		-		-		-		-
0.80%		-		-		-		-		-		-		-		-
0.85%		3		-		7		-		-		-		-		-
0.90%		-		-		-		-		-		-		-		-
0.95%		-		-		-		-		-		-		-		-
1%		-		-		2		-		31		-		10		-
1.10%		-		-		-		-		-		-		-		-
1.15%		18,701		9,874		22,207		1,602		8,570		8,293		21,522		13,723
1.20%		-		1		5		2		-		-		3		-
1.25%		1,598		4,910		4,702		68		2,818		1,780		2,632		291
1.30%		-		-		-		-		-		-		-		-
1.35%		28,250		15,625		18,012		3,726		20,205		17,264		58,101		12,847
1.40%		11,665		16,400		4,159		4,453		634		4,538		9,748		1,916
1.45%		166		35		-		2		11		23		60		3
1.55%		7,856		3,942		4,723		1,715		4,769		6,995		9,798		3,399
1.60%		4,370		1,910		6,814		1,281		995		3,111		5,226		1,501
1.65%		1,046		1,677		9,147		81		891		2,270		6,165		583
1.70%		-		-		-		-		-		-		-		-
1.80%		358		1,071		1,523		14		68		579		3,877		75
1.85%		17		299		80		143		287		393		620		1,549
1.90%		5,472		4,970		506		464		29		686		1,890		85
1.95%		506		782		595		48		466		2,265		598		12
2%		71		265		523		164		291		507		286		222
2.05%		-		-		-		-		-		-		-		-
2.10%		412		17,911		2,567		309		1,149		1,364		762		133
2.15%		166		6,441		1,450		-		16		112		320		132
2.20%		286		129		82		-		-		23		24		70
2.25%		-		-		-		-		-		-		-		-
2.30%		102		38		30		162		233		265		150		-
2.35%		130		129		567		-		-		22		17		32
2.40%		10		-		-		-		-		-		11		-
2.45%		336		450		168		54		7		108		295		149
2.50%		854		108		19		-		-		52		38		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	82,549	$	87,612	$	78,193	$	14,368	$	41,665	$	51,759	$	122,232	$	36,821
	RLF		RVMFU		RMED		RVARS		RVF		ROF		RNF		RPMF
0.45%	$	78	$	150	$	325	$	446	$	5,334	$	4,450	$	541	$	3,819
0.65%		4		-		19		51		192		220		102		194
0.70%		183		-		-		-		-		-		125		249
0.80%		-		-		-		-		-		-		-		-
0.85%		-		95		-		111		13		190		9		-

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

0.90%		62		-		-		-		-		-		-		60
0.95%		102		3		-		14		-		22		19		70
1%		35		32		-		40		125		90		-		22
1.10%		-		89		-		269		-		318		341		-
1.15%		21,725		23,289		25,309		24,148		24,198		31,156		49,417		112,276
1.20%		6		-		-		-		-		-		2		168
1.25%		1,581		2,329		2,681		2,484		7,049		2,497		5,201		15,417
1.30%		-		-		-		-		-		-		-		-
1.35%		26,434		28,837		27,233		23,254		23,895		40,175		70,706		220,295
1.40%		12,169		3,073		4,689		1,736		3,355		7,789		8,807		44,187
1.45%		171		-		190		12		19		179		-		1,238
1.55%		6,014		16,700		11,323		9,844		8,967		13,102		5,999		60,305
1.60%		3,581		19,101		3,085		3,745		2,566		4,131		3,338		24,791
1.65%		3,016		935		1,208		1,252		1,162		2,711		906		13,620
1.70%		-		-		-		2		-		-		-		-
1.80%		322		2,681		2,659		497		1,441		1,523		506		9,321
1.85%		20		291		-		415		463		767		1,789		1,186
1.90%		1,641		13,575		5,111		3,821		2,672		2,196		3,096		31,860
1.95%		59		887		504		9,069		630		1,511		287		4,565
2%		138		436		1,448		1,416		338		1,065		815		1,746
2.05%		-		-		-		-		-		-		-		159
2.10%		607		888		3,075		132		2,203		1,729		303		9,125
2.15%		6		21		1,366		2,361		3,140		1,427		1,454		2,544
2.20%		258		53		380		155		17		306		391		961
2.25%		-		-		-		-		-		-		-		5
2.30%		476		878		261		936		1		141		790		2,347
2.35%		13		65		66		85		-		15		89		718
2.40%		-		-		52		-		-		31		40		101
2.45%		127		3		2,297		49		220		1,128		2,212		2,821
2.50%		1,120		493		474		640		117		35		164		2,265
2.55%		-		57		-		179		-		273		264		-
2.85%		-		-		-		-		-		-		-		-
	$	79,948	$	114,961	$	93,755	$	87,163	$	88,117	$	119,177	$	157,713	$	566,435
	RREF		RRF		RMEK		RTF		RVLCG		RVLCV		RVMCG		RVMCV
0.45%	$	683	$	23	$	314	$	11	$	553	$	381	$	2,089	$	353
0.65%		124		3		130		23		45		20		402		7
0.70%		165		114		-		-		63		58		64		58
0.80%		-		-		-		-		-		-		-		-
0.85%		7		-		-		-		15		2		57		-
0.90%		65		-		-		=		65		60		66		60
0.95%		134		-		-		-		106		98		122		98
1%		74		10		-		6		10		9		10		9
1.10%		50		-		223		-		-		-		-		-
1.15%		44,440		14,015		23,727		27,625		45,215		21,219		63,783		17,045
1.20%		4		-		1		-		1		-		-		-
1.25%		2,957		693		1,354		19,094		3,865		2,601		5,241		708
1.30%		-		-		-		-		-		-		-		-
1.35%		53,086		28,813		26,361		32,931		118,498		58,602		70,753		47,206
1.40%		15,223		7,974		2,177		7,520		11,146		5,757		16,680		5,111
1.45%		317		21		155		95		1,020		694		215		-
1.55%		17,044		4,036		11,944		15,439		15,802		17,242		25,493		14,646
1.60%		11,724		2,792		3,600		5,873		12,859		20,648		12,627		12,641
1.65%		6,322		1,783		1,910		2,237		12,595		15,159		7,145		1,658
1.70%		1		-		-		-		-		-		-		-
1.80%		1,538		415		1,506		1,105		5,281		5,079		5,204		3,803
1.85%		603		13		303		222		137		159		706		-
1.90%		4,956		8,328		424		2,630		33,651		27,691		32,240		24,214
1.95%		363		91		2,973		779		1,655		1,758		1,326		106
2%		512		131		687		190		910		1,230		456		222
2.05%		-		-		-		-		-		689		-		-
2.10%		2,933		255		1,158		1,556		4,145		1,353		2,341		286
2.15%		867		29		1,247		1,058		953		129		652		27
2.20%		453		229		312		196		174		60		43		49
2.25%		-		-		-		-		-		1		-		-
2.30%		1,483		158		123		-		4,735		23		3,182		142
2.35%		239		22		92		14		102		1,634		43		-
2.40%		2		2		146		-		11		-		-		-
2.45%		442		53		941		822		753		138		1,542		-
2.50%		1,882		340		123		124		803		767		906		-
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	168,693	$	70,343	$	81,931	$	119,550	$	275,168	$	183,261	$	253,388	$	128,449
	RVSCG		RVSCV		RVSDL		RTEC		RTEL		RTRF		RUTL		RVWDL
0.45%	$	1,828	$	386	$	-	$	27	$	-	$	13	$	269	$	202
0.65%		89		40		1		54		15		4		116		24
0.70%		-		-		30		105		-		143		-		-
0.80%		-		-		-		-		-		-		5		-
0.85%		40		-		-		-		-		-		17		-
0.90%		-		-		31		33		31		87		49		-
0.95%		38		-		50		-		-		93		-		-
1%		-		-		4		3		-		9		10		-
1.10%		-		-		-		-		-		-		-		-
1.15%		28,301		11,949		5,923		18,755		5,369		17,310		22,811		4,102
1.20%		-		1		1		1		-		-		14		127
1.25%		1,235		1,176		253		2,037		1,115		1,375		1,920		1,142
1.30%		-		-		-		-		-		-		-		-
1.35%		35,369		20,154		12,184		38,890		10,573		23,739		46,000		11,239
1.40%		7,808		3,118		1,568		12,961		2,831		9,745		12,732		549
1.45%		2		1		6		981		87		2		38		237
1.55%		10,827		11,016		2,837		6,660		1,268		8,348		7,358		2,926
1.60%		6,184		12,541		4,687		5,300		1,069		2,715		4,819		1,577
1.65%		4,195		1,656		804		4,628		638		2,957		2,935		928
1.70%		-		-		-		-		-		-		-		-
1.80%		3,721		5,189		295		1,170		294		523		1,424		406
1.85%		152		16		55		28		-		147		55		209
1.90%		10,621		7,186		2,715		14,002		3,117		2,697		10,572		847
1.95%		758		189		283		221		112		71		570		172

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

2%		293		222		298		352		107		273		472		156
2.05%		-		-		-		-		-		-		-		-
2.10%		3,730		1,096		718		1,599		1,191		269		1,562		601
2.15%		252		30		153		169		37		29		327		334
2.20%		52		1		45		187		-		186		36		173
2.25%		-		-		-		-		-		-		51		-
2.30%		-		-		40		614		-		1,162		80		14
2.35%		134		-		38		8		8		11		67		111
2.40%		-		-		-		2		-		-		15		-
2.45%		129		136		107		50		-		-		379		323
2.50%		-		-		10		359		19		964		600		15
2.55%		-		-		-		-		-		-		-		-
2.85%		-		-		-		-		-		-		-		-
	$	115,758	$	76,103	$	33,136	$	109,196	$	27,881	$	72,872	$	115,303	$	26,414
	VWHA		VWAR		WRASP		RVIRO
0.45%	$	-	$	7	$	1,779	$	12
0.65%		1		-		92		-
0.70%		-		-		-		-
0.80%		-		-		29		2
0.85%		-		-		-		15
0.90%		-		-		-		-
0.95%		-		-		110		1
1%		-		-		-		-
1.10%		-		-		-		56
1.15%		315		75		38,234		3,041
1.20%		-		-		-		-
1.25%		183		6,110		14,719		354
1.30%		-		-		-		-
1.35%		1,097		843		81,444		3,969
1.40%		20		-		35,005		557
1.45%		-		636		354		-
1.55%		506		97		37,572		4,318
1.60%		284		28		17,444		561
1.65%		13		-		29,828		258
1.70%		-		-		-		-
1.80%		361		15		3,987		643
1.85%		-		-		538		-
1.90%		583		28		12,970		1,211
1.95%		242		-		7,853		130
2%		76		-		248		25
2.05%		498		-		-		-
2.10%		786		-		5,205		154
2.15%		-		-		4,282		23
2.20%		74		-		528		6
2.25%		53		-		-		-
2.30%		33		-		224		-
2.35%		1,266		-		273		-
2.40%		-		-		-		8
2.45%		49		-		2,705		-
2.50%		558		-		142		-
2.55%		-		-		-		8
2.85%		-		-		-		-
	$	6,998	$	7,839	$	295,565	$	15,352

(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 $2,358,052 and $7,315,742, respectively, and total transfers from the Account to the fixed account were $2,238,727 and $7,170,601, 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 $786,878 and $770,423 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 Purchase Payment Credits, the Company contributed $468,231 and $171,942 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.

For guaranteed minimum death benefits, the Company contributed $3,459,757 and $1,613,377 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.

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

(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	$1,059,285,886	$0	$0	$1,059,285,886

The Account did not have any assets or liabilities reported at fair value on a nonrecurring 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
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III ( MLVGA3 )	$	15,048,707	$	9,343,449
Credit Suisse Trust - Commodity Return Strategy Portfolio ( CSCRS )		4,646,741		2,417,653
MFS Global Tactical Allocation Portfolio - Service Class ( MVGTAS )		185,774		81,866
Emerging Markets Debt Portfolio - Class II ( MSEMB )		456,222		79,677
Global Tactical Asset Allocation Portfolio - Class II ( MSVGT2 )		104,366		44,852
Global Real Estate Portfolio - Class II ( VKVGR2 )		155,297		62,344
American Funds NVIT Asset Allocation Fund - Class II ( GVAAA2 )		1,430,233		533,641
Federated NVIT High Income Bond Fund - Class III ( HIBF3 )		81,778,161		77,256,816
NVIT Emerging Markets Fund - Class III ( GEM3 )		1,346,202		2,162,496
NVIT Cardinal Aggressive Fund - Class II ( NVCRA2 )		525,820		767,404
NVIT Cardinal Balanced Fund - Class II ( NVCRB2 )		2,531,353		1,430,305
NVIT Cardinal Capital Appreciation Fund - Class II ( NVCCA2 )		1,693,304		1,017,198
NVIT Cardinal Conservative Fund - Class II ( NVCCN2 )		3,484,193		2,878,299
NVIT Cardinal Moderate Fund - Class II ( NVCMD2 )		2,554,515		1,711,146
NVIT Cardinal Moderately Aggressive Fund - Class II ( NVCMA2 )		1,120,701		636,596
NVIT Cardinal Moderately Conservative Fund - Class II ( NVCMC2 )		765,502		506,834
NVIT Core Plus Bond Fund - Class II ( NVLCP2 )		6,055,052		3,609,421
NVIT Fund - Class III ( TRF3 )		305,214		167,673
NVIT Government Bond Fund - Class III ( GBF3 )		9,600,313		12,913,044
NVIT Investor Destinations Aggressive Fund - Class VI ( GVIDA6 )		1,932,804		2,281,452
NVIT Investor Destinations Balanced Fund - Class VI ( NVDBL6 )		192,258		332,201
NVIT Investor Destinations Capital Appreciation Fund - Class VI ( NVDCA6 )		1,196,229		892,479
NVIT Investor Destinations Conservative Fund - Class VI ( GVIDC6 )		4,952,836		5,300,482
NVIT Investor Destinations Moderate Fund - Class VI ( GVIDM6 )		5,794,017		5,277,659
NVIT Investor Destinations Moderately Aggressive Fund - Class VI ( GVDMA6 )		1,023,079		2,815,852
NVIT Investor Destinations Moderately Conservative Fund - Class VI ( GVDMC6 )		3,162,408		4,074,493
NVIT Money Market Fund - Class I ( SAM )		0		412
NVIT Multi-Manager International Growth Fund - Class VI ( NVMIG6 )		925,119		688,766
NVIT Multi-Manager International Value Fund - Class VI ( GVDIV6 )		583,098		569,381
NVIT Multi-Manager Large Cap Growth Fund - Class II ( NVMLG2 )		783,318		385,120
NVIT Multi-Manager Large Cap Value Fund - Class II ( NVMLV2 )		693,172		520,658
NVIT Multi-Manager Mid Cap Growth Fund - Class I ( NVMMG1 )		180		256,909
NVIT Multi-Manager Mid Cap Growth Fund - Class II ( NVMMG2 )		2,106,803		1,730,609
NVIT Multi-Manager Mid Cap Value Fund - Class II ( NVMMV2 )		910,247		432,405
NVIT Multi-Manager Small Cap Growth Fund - Class III ( SCGF3 )		807,608		758,203
NVIT Multi-Manager Small Cap Value Fund - Class III ( SCVF3 )		242,893		579,751
NVIT Multi-Manager Small Company Fund - Class III ( SCF3 )		1,007,153		1,209,569
NVIT Short Term Bond Fund - Class II ( NVSTB2 )		7,592,173		3,131,228
NVIT Money Market Fund - Class II ( NVMM2 )		791,700,617		775,128,249
VPS Balanced Wealth Strategy Portfolio - Class B ( ALVBWB )		84,287		28,471
VP Income & Growth Fund - Class III ( ACVIG3 )		1,308,899		1,586,734
VP Inflation Protection Fund - Class II ( ACVIP2 )		9,104,901		2,983,735
VP Ultra(R) Fund - Class III ( ACVU3 )		65,306		457,830
VP Value Fund - Class III ( ACVV3 )		1,320,616		2,980,063
Quality Bond Fund II - Primary Shares ( FQB )		245		74
VIP Fund - Asset Manager Portfolio - Service Class 2 ( FAM2 )		818,087		26,450
VIP Fund - Contrafund Portfolio - Service Class 2 R ( FC2R )		528,380		2,968,976
VIP Fund - Equity-Income Portfolio - Service Class 2 R ( FEI2R )		1,353,148		2,551,173
VIP Fund - Growth Portfolio - Service Class 2 R ( FG2R )		4,383,701		4,813,234
VIP Founding Funds Allocation Fund - Class 2 ( FTVFA2 )		1,773,656		1,203,452
Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio - Class I (SBTRP )		477		464
Legg Mason ClearBridge Variable Large Cap Value Portfolio: Class I ( SBVI )		43,969		121,510
Global Currents Variable International All Cap Opportunity Portfolio ( SBIEP )		8,683		1,281
All Asset Portfolio - Advisor Class ( PMVAAD )		4,474,799		545,269
Foreign Bond Portfolio (Unhedged) - Advisor Class ( PMVFAD )		6,214,297		2,454,701
Low Duration Portfolio - Advisor Class ( PMVLAD )		13,081,285		7,268,026
Total Return Portfolio - Advisor Class ( PMVTRD )		16,446,572		6,405,871
PMVRSD ( PMVRSD )		4,990,872		5,049,562
Variable Insurance Trust - Emerging Markets Bond Portfolio - Advisor Class (PMVEBD )		8,222,190		6,860,760
Variable Insurance Trust - Global Bond (Unhedged) - Advisor Class ( PMVGBD )		13,116,897		11,135,867
Variable Insurance Trust - High Yield Portfolio - Advisor Class ( PMVHYD )		100,825,093		58,540,781
Variable Contracts Trust - Emerging Markets VCT Portfolio - Class II ( PIVEM2 )		4,026,331		6,115,462
Variable Contracts Trust - High Yield VCT Portfolio - Class II Shares ( PIHYB2 )		28,842,566		26,086,619

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

Ultra Short NASDAQ-100 ( PROUSN )			61,911,152		61,031,069
VP Access High Yield ( PROAHY )			86,877,786		88,267,229
VP Asia 30 ( PROA30 )			12,563,155		16,070,730
VP Banks ( PROBNK )			9,489,945		9,284,282
VP Basic Materials ( PROBM )			2,180,311		1,687,264
VP Bear ( PROBR )			20,926,242		22,170,276
VP Biotechnology ( PROBIO )			3,208,703		3,040,590
VP Bull ( PROBL )			110,923,276		106,833,901
VP Consumer Goods ( PROCG )			1,371,397		1,090,006
VP Consumer Services ( PROCS )			1,261,015		712,623
VP Emerging Markets ( PROEM )			23,775,584		26,431,653
VP Europe 30 ( PROE30 )			4,839,304		4,742,821
VP Financials ( PROFIN )			3,532,523		3,400,569
VP Health Care ( PROHC )			3,349,435		2,748,482
VP Industrials ( PROIND )			3,225,847		2,333,241
VP International ( PROINT )			7,308,224		6,848,082
VP Internet ( PRONET )			954,955		840,532
VP Japan ( PROJP )			12,215,909		12,305,740
VP NASDAQ-100 ( PRON )			27,423,294		26,092,069
VP Oil and Gas ( PROOG )			12,475,729		15,656,558
VP Pharmaceuticals ( PROPHR )			4,427,768		1,486,152
VP Precious Metals ( PROPM )			16,898,158		13,111,961
VP Real Estate ( PRORE )			5,349,968		4,823,672
VP Rising Rates Opportunity ( PRORRO )			84,973,876		86,116,800
VP Semiconductor ( PROSCN )			1,996,863		1,820,078
VP Short Emerging Markets ( PROSEM )			17,001,654		16,436,460
VP Short International ( PROSIN )			14,414,987		12,818,630
VP Short NADSAQ-100 ( PROSN )			15,442,520		15,618,562
VP Technology ( PROTEC )			3,621,330		2,574,042
VP Telecommunications ( PROTEL )			1,534,095		1,486,567
VP U.S. Government Plus ( PROGVP )			102,746,495		102,891,965
VP Ultra NASDAQ-100 ( PROUN )			18,334,700		16,963,331
VP Utilities ( PROUTL )			3,439,801		1,854,716
Variable Trust: All-Asset Aggressive Strategy Fund ( RVAAS )			2,731,126		6,532,874
Variable Trust: All-Asset Conservative Strategy Fund ( RVACS )			5,058,202		6,125,701
Variable Trust: All-Asset Moderate Strategy Fund ( RVAMS )			3,250,448		3,574,284
Variable Trust: All-Cap Opportunity Fund ( RSRF )			507,345		3,205,878
Variable Trust: Alternative Strategies Allocation Fund ( RVASA )			604,109		759,610
SGI Variable Trust - CLS AdvisorOne Amerigo Fund ( RVAMR )			3,754,569		4,923,081
Variable Trust: Banking Fund ( RBKF )			33,045,294		34,610,196
Variable Trust: Basic Materials Fund ( RBMF )			48,534,830		58,249,374
SGI Variable Trust - CLS AdvisorOne Select Allocation Fund ( RVBER )			4,121,233		3,641,512
Variable Trust: Biotechnology Fund ( RBF )			51,536,011		49,301,227
SGI Variable Trust - CLS AdvisorOne Clermont Fund ( RVCLR )			9,595,511		7,640,266
Variable Trust: Commodities Strategy Fund ( RVCMD )			12,575,737		14,811,794
Variable Trust: Consumer Products Fund ( RCPF )			46,067,825		44,538,813
Variable Trust: Dow 2x Strategy Fund ( RVLDD )			68,754,048		66,683,011
Variable Trust: DWA Flexible Allocation Fund ( RVDFA )			4,329,496		6,389,583
Variable Trust: DWA Sector Rotation Fund ( RVDSR )			3,327,872		13,606,710
Variable Trust: Electronics Fund ( RELF )			48,291,624		50,196,417
Variable Trust: Energy Fund ( RENF )			53,622,000		57,129,716
Variable Trust: Energy Services Fund ( RESF )			43,034,831		48,804,557
Variable Trust: Europe 1.25x Strategy Fund ( RLCE )			27,140,529		27,927,962
Variable Trust: Financial Services Fund ( RFSF )			19,059,827		20,468,613
Variable Trust: Government Long Bond 1.2x Strategy Fund ( RUGB )			127,046,000		125,082,564
Variable Trust: Health Care Fund ( RHCF )			47,189,235		46,241,729
Variable Trust: Internet Fund ( RINF )			23,420,859		30,149,761
Variable Trust: Inverse Dow 2x Strategy Fund ( RVIDD )			77,123,492		78,797,708
Variable Trust: Inverse Government Long Bond Strategy Fund ( RJNF )			42,696,709		44,934,122
Variable Trust: Inverse Mid-Cap Strategy Fund ( RVIMC )			8,818,635		9,036,866
Variable Trust: Inverse NASDAQ-100(R) Strategy Fund ( RAF )			75,134,716		76,187,831
Variable Trust: Inverse Russell 2000(R) Strategy Fund ( RVISC )			103,874,857		104,723,447
Variable Trust: Inverse S&P 500 Strategy Fund ( RUF )			113,215,766		115,975,576
Variable Trust: Japan 2x Strategy Fund ( RLCJ )			37,965,420		40,111,710
Variable Trust: Leisure Fund ( RLF )			8,787,746		12,038,548
Variable Trust: Managed Futures Strategy Fund ( RVMFU )			3,528,847		3,331,175
Variable Trust: Mid-Cap 1.5x Strategy Fund ( RMED )			38,830,257		44,081,317
Variable Trust: Multi-Hedge Strategies Fund ( RVARS )			1,695,114		2,124,049
Variable Trust: NASDAQ-100(R) 2x Strategy Fund ( RVF )			62,174,585		64,468,840
Variable Trust: NASDAQ-100(R) Fund ( ROF )			109,614,609		113,832,440
Variable Trust: Nova Fund ( RNF )			68,156,970		70,128,637
Variable Trust: Precious Metals Fund ( RPMF )			66,454,211		86,633,535
Variable Trust: Real Estate Fund ( RREF )			55,232,557		60,327,419
Variable Trust: Retailing Fund ( RRF )			33,727,121		33,145,803
Variable Trust: Russell 2000(R) 1.5x Strategy Fund ( RMEK )			59,786,118		61,710,406
Variable Trust: S&P 500 2x Strategy Fund ( RTF )			113,797,518		113,469,905
Variable Trust: S&P 500 Pure Growth Fund ( RVLCG )			69,195,921		71,503,213
Variable Trust: S&P 500 Pure Value Fund ( RVLCV )			105,679,903		107,087,496
Variable Trust: S&P MidCap 400 Pure Growth Fund ( RVMCG )			37,154,092		53,068,440
Variable Trust: S&P MidCap 400 Pure Value Fund ( RVMCV )			40,361,249		28,063,670
Variable Trust: S&P SmallCap 600 Pure Growth Fund ( RVSCG )			39,048,246		40,973,467
Variable Trust: S&P SmallCap 600 Pure Value Fund ( RVSCV )			33,424,806		33,420,015
Variable Trust: Strengthening Dollar 2x Strategy Fund ( RVSDL )			35,024,201		34,619,847
Variable Trust: Technology Fund ( RTEC )			42,601,414		47,892,513
Variable Trust: Telecommunications Fund ( RTEL )			46,965,436		49,074,673
Variable Trust: Transportation Fund ( RTRF )			39,625,544		42,480,881
Variable Trust: Utilities Fund ( RUTL )			55,731,870		53,999,817
Variable Trust: Weakening Dollar 2x Strategy Fund ( RVWDL )			8,323,718		9,102,571
VIP Trust - Global Hard Assets Fund: Initial Class ( VWHA )			1,438,223		606,387
VIP Trust - Multi-Manager Alternatives Fund: Initial Class ( VWAR )			2,053,962		23,621
Ivy Fund Variable Insurance Portfolios, Inc. - Asset Strategy ( WRASP )			12,460,132		8,001,828
Variable Trust: International Opportunity Fund(obsolete) ( RVIRO )			132,188		3,574,176
	Total	$	4,216,859,654	$	4,212,910,792

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

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-4

(NOTES TO FINANCIAL STATEMENTS) December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
Variable Series Funds, Inc. - Global Allocation V.I. Fund - Class III (MLVGA3)
2011	0.45% to 2.45%		2,154,758	$10.25 to $ 9.91	$	21,919,978	2.34%	-4.07% to -6.00%
2010	0.65% to 2.30%		1,720,332	10.67 to 10.55		18,448,273	1.82%	6.66% to 5.49%	****
Credit Suisse Trust - Commodity Return Strategy Portfolio (CSCRS)
2011	0.45% to 2.35%		220,959	10.36 to 10.03		2,248,913	2.90%	-13.04% to -14.70%
2010	0.45% to 2.10%		52,295	11.91 to 11.78		618,686	8.95%	19.11% to 17.80%	****
MFS Global Tactical Allocation Portfolio - Service Class (MVGTAS)
2011	1.25% to 2.10%		10,601	9.47 to 9.42		100,241	1.49%	-5.27% to -5.82%	****
Emerging Markets Debt Portfolio - Class II (MSEMB)
2011	1.15% to 2.35%		37,475	10.33 to 10.24		387,515	2.14%	3.26% to 2.43%	****
Global Tactical Asset Allocation Portfolio - Class II (MSVGT2)
2011	1.15% to 1.80%		6,278	8.90 to 8.86		55,665	0.43%	-11.03% to -11.44%	****
Global Real Estate Portfolio - Class II (VKVGR2)
2011	0.45% to 1.90%		10,187	8.34 to 8.26		84,552	1.88%	-16.58% to -17.39%	****
American Funds NVIT Asset Allocation Fund - Class II (GVAAA2)
2011	0.45% to 2.45%		91,567	9.38 to 9.25		855,513	0.01%	-6.20% to -7.45%	****
Federated NVIT High Income Bond Fund - Class III (HIBF3)
2011	0.45% to 2.45%		5,343,722	11.01 to 11.97		69,405,465	5.96%	3.34% to 1.27%
2010	0.45% to 2.45%		5,060,142	10.66 to 11.82		64,726,021	7.86%	6.58% to 10.39%	****
2009	1.15% to 2.05%		5,140,397	11.56 to 11.47		59,088,133	9.02%	44.40% to 43.04%
2008	1.15% to 2.05%		1,358,208	8.00 to 8.02		10,847,383	7.81%	-28.93% to -29.61%
2007	1.15% to 2.05%		757,438	11.26 to 11.39		8,528,143	8.57%	1.98% to 1.08%
NVIT Emerging Markets Fund - Class III (GEM3)
2011	0.45% to 2.20%		134,567	8.76 to 8.50		1,245,009	0.61%	-22.74% to -24.10%
2010	0.45% to 2.50%		203,740	11.34 to 11.18		2,493,091	0.14%	13.37% to 11.82%	****
NVIT Cardinal Aggressive Fund - Class II (NVCRA2)
2011	1.15% to 1.90%		36,757	9.95 to 9.83		362,885	1.86%	-7.45% to -8.15%
2010	1.25% to 1.80%		58,478	10.75 to 14.56		635,621	0.00%	7.47% to 7.11%	****
NVIT Cardinal Balanced Fund - Class II (NVCRB2)
2011	0.45% to 2.50%		189,389	10.34 to 9.99		2,014,980	2.14%	-1.79% to -3.81%
2010	1.15% to 1.90%		95,478	10.48 to 10.43		1,026,304	0.48%	4.82% to 4.30%	****
NVIT Cardinal Capital Appreciation Fund - Class II (NVCCA2)
2011	0.85% to 2.20%		168,205	10.17 to 9.94		1,712,225	2.10%	-4.27% to -5.57%
2010	1.15% to 2.00%		111,776	10.60 to 10.54		1,204,642	0.70%	6.01% to 5.41%	****
NVIT Cardinal Conservative Fund - Class II (NVCCN2)
2011	0.45% to 2.30%		547,754	10.44 to 10.12		5,667,245	2.69%	0.96% to -0.92%
2010	0.65% to 2.50%		496,507	10.33 to 10.20		5,160,936	0.61%	3.32% to 2.04%	****
NVIT Cardinal Moderate Fund - Class II (NVCMD2)
2011	0.45% to 2.50%		354,699	10.29 to 9.94		3,630,782	2.31%	-2.77% to -4.77%
2010	0.65% to 2.20%		284,817	10.57 to 10.46		3,007,048	0.36%	5.71% to 4.61%	****
NVIT Cardinal Moderately Aggressive Fund - Class II (NVCMA2)
2011	0.45% to 2.10%		167,695	10.17 to 9.89		1,680,122	2.22%	-5.10% to -6.67%
2010	1.15% to 2.20%		124,800	10.67 to 10.59		1,329,516	0.15%	6.67% to 5.92%	****
NVIT Cardinal Moderately Conservative Fund - Class II (NVCMC2)
2011	0.45% to 2.85%		135,890	10.39 to 9.98		1,391,413	2.48%	-0.72% to -3.11%
2010	1.15% to 2.35%		111,604	10.42 to 10.34		1,181,778	0.82%	4.20% to 3.36%	****
NVIT Core Plus Bond Fund - Class II (NVLCP2)
2011	0.45% to 2.35%		239,858	10.32 to 10.19		2,459,167	1.63%	3.20% to 1.89%	****
NVIT Fund - Class III (TRF3)
2011	1.15% to 2.30%		35,854	11.40 to 11.76		404,651	1.46%	-0.37% to -1.53%
2010	1.15% to 1.80%		25,101	11.44 to 10.80		279,379	1.09%	12.17% to 11.52%
2009	1.15% to 2.00%		27,729	10.20 to 9.54		274,707	1.26%	24.71% to 23.43%
2008	1.15% to 2.00%		50,588	8.18 to 7.73		403,227	1.35%	-42.22% to -42.78%
2007	1.15% to 2.00%		93,336	14.16 to 13.50		1,295,408	1.12%	6.97% to 6.11%
NVIT Government Bond Fund - Class III (GBF3)
2011	0.45% to 2.45%		1,741,410	10.90 to 11.90		24,573,093	2.99%	6.78% to 4.64%
2010	0.45% to 2.45%		2,020,667	10.21 to 12.26		27,039,696	2.99%	2.12% to 2.25%	****
2009	1.15% to 2.05%		1,651,392	13.25 to 12.38		21,353,505	3.44%	1.51% to 0.62%
2008	1.15% to 2.05%		1,445,042	13.06 to 12.30		18,516,569	4.28%	6.49% to 5.55%
2007	1.15% to 2.05%		1,498,890	12.26 to 11.65		18,090,271	4.98%	5.92% to 4.97%
NVIT Investor Destinations Aggressive Fund - Class VI (GVIDA6)
2011	1.15% to 1.80%		370,983	12.20 to 11.60		4,441,637	1.86%	-5.04% to -5.66%
2010	1.15% to 2.05%		396,111	12.85 to 12.09		4,985,129	1.88%	13.25% to 12.31%
2009	1.15% to 2.05%		640,695	11.35 to 10.77		7,094,389	0.99%	25.90% to 24.59%
2008	1.15% to 2.05%		619,874	9.01 to 8.64		5,462,939	2.00%	-37.61% to -38.25%
2007	1.15% to 2.05%		783,334	14.45 to 14.00		11,139,666	2.15%	4.74% to 3.84%
NVIT Investor Destinations Balanced Fund - Class VI (NVDBL6)
2011	0.45% to 2.50%		42,375	10.50 to 10.15		437,306	2.09%	0.42% to -1.64%
2010	1.15% to 1.95%		55,752	10.41 to 10.36		579,146	0.68%	4.12% to 3.56%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

(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 Investor Destinations Capital Appreciation Fund - Class VI (NVDCA6)
2011	1.15% to 2.00%		50,520	$ 10.29 to $ 10.14	$	518,356	1.32%	-2.12% to -2.96%
2010	1.15% to 2.00%		21,384	10.51 to 10.45		224,655	0.73%	5.14% to 4.54%	****
NVIT Investor Destinations Conservative Fund - Class VI (GVIDC6)
2011	0.45% to 2.50%		1,390,326	10.54 to 10.68		16,787,146	2.47%	2.48% to 0.37%
2010	0.45% to 2.30%		1,453,199	10.29 to 11.23		17,110,895	2.34%	2.87% to 3.50%	****
2009	1.15% to 2.05%		1,024,761	11.59 to 11.02		11,706,640	1.89%	7.99% to 7.00%
2008	1.15% to 2.05%		698,779	10.74 to 10.29		7,404,922	3.32%	-7.25% to -8.10%
2007	1.15% to 2.05%		462,812	11.57 to 11.20		5,293,897	3.14%	4.21% to 3.28%
NVIT Investor Destinations Moderate Fund - Class VI (GVIDM6)
2011	0.45% to 2.50%		1,903,557	10.45 to 10.03		23,305,379	2.10%	-0.49% to -2.53%
2010	1.15% to 2.50%		1,859,898	12.69 to 10.29		23,158,697	2.00%	9.58% to 8.09%
2009	1.15% to 2.05%		1,781,508	11.58 to 10.99		20,285,257	1.52%	18.00% to 16.86%
2008	1.15% to 2.05%		1,744,209	9.81 to 9.41		16,869,176	2.83%	-24.25% to -24.98%
2007	1.15% to 2.05%		1,764,416	12.95 to 12.54		22,604,032	2.82%	4.48% to 3.57%
NVIT Investor Destinations Moderately Aggressive Fund - Class VI (GVDMA6)
2011	1.15% to 1.80%		617,750	12.46 to 11.86		7,548,836	2.00%	-3.27% to -3.86%
2010	1.15% to 2.05%		762,011	12.88 to 12.13		9,649,660	1.92%	11.62% to 10.69%
2009	1.15% to 2.05%		940,058	11.54 to 10.96		10,674,029	1.33%	22.84% to 21.60%
2008	1.15% to 2.05%		1,069,845	9.40 to 9.01		9,930,470	2.56%	-32.18% to -32.85%
2007	1.15% to 2.05%		1,115,759	13.86 to 13.42		15,292,382	2.77%	4.93% to 4.03%
NVIT Investor Destinations Moderately Conservative Fund - Class VI (GVDMC6)
2011	0.45% to 2.25%		1,162,051	10.58 to 11.60		14,381,049	2.32%	1.71% to -0.13%
2010	0.45% to 2.05%		1,252,758	10.40 to 11.79		15,322,320	2.16%	4.00% to 6.30%	****
2009	1.15% to 2.05%		855,329	11.67 to 11.09		9,820,399	1.80%	13.31% to 12.25%
2008	1.15% to 2.05%		657,880	10.30 to 9.88		6,676,541	2.99%	-16.00% to -16.79%
2007	1.15% to 2.05%		880,836	12.26 to 11.87		10,665,870	3.47%	4.60% to 3.68%
NVIT Money Market Fund - Class I (SAM)
2011	1.30%		2,844	9.78		27,826	0.00%	-1.30%
2010	1.30%		2,848	9.91		28,231	0.00%	-0.87%	****
NVIT Multi-Manager International Growth Fund - Class VI (NVMIG6)
2011	0.45% to 2.10%		134,318	10.09 to 9.82		1,387,046	1.12%	-10.03% to -11.52%
2010	0.45% to 2.00%		117,515	11.22 to 15.12		1,328,684	1.28%	12.16% to 11.04%	****
NVIT Multi-Manager International Value Fund - Class VI (GVDIV6)
2011	0.45% to 2.00%		75,748	8.89 to 11.49		694,870	1.67%	-16.77% to -18.06%
2010	0.45% to 1.90%		78,665	10.68 to 10.58		838,675	3.53%	6.85% to 5.82%	****
NVIT Multi-Manager Large Cap Growth Fund - Class II (NVMLG2)
2011	0.45% to 2.20%		47,841	10.44 to 10.14		492,097	0.00%	-3.67% to -5.36%
2010	0.45% to 2.20%		11,035	10.84 to 10.71		124,890	0.00%	8.36% to 7.09%	****
NVIT Multi-Manager Large Cap Value Fund - Class II (NVMLV2)
2011	0.45% to 2.10%		45,504	9.66 to 9.39		435,609	1.01%	-6.51% to -8.06%
2010	0.45% to 2.05%		26,704	10.33 to 14.35		294,080	0.72%	3.30% to 2.23%	****
NVIT Multi-Manager Mid Cap Growth Fund - Class I (NVMMG1)
2011	1.15% to 1.60%		24,039	14.62 to 14.44		349,691	0.00%	-5.33% to -5.76%
2010	1.15% to 1.80%		40,034	15.44 to 9.63		615,744	0.00%	25.36% to 24.65%
2009	1.15% to 1.85%		51,431	12.32 to 7.72		606,799	0.00%	23.18% to 22.49%	****
NVIT Multi-Manager Mid Cap Growth Fund - Class II (NVMMG2)
2011	0.45% to 2.10%		148,078	10.75 to 10.45		1,602,759	0.00%	-4.88% to -6.45%
2010	0.45% to 2.10%		114,607	11.30 to 11.17		1,316,242	0.00%	12.97% to 11.72%	****
NVIT Multi-Manager Mid Cap Value Fund - Class II (NVMMV2)
2011	0.45% to 2.10%		57,643	10.55 to 10.26		605,470	0.97%	-2.76% to -4.37%
2010	0.45% to 1.80%		17,489	10.85 to 15.14		194,278	1.20%	8.48% to 7.55%	****
NVIT Multi-Manager Small Cap Growth Fund - Class III (SCGF3)
2011	0.45% to 2.10%		51,142	11.11 to 12.11		515,631	0.00%	-1.10% to -2.73%
2010	0.45% to 1.90%		51,624	11.23 to 9.79		530,351	0.00%	12.28% to 23.03%	****
2009	1.15% to 1.85%		28,923	8.43 to 7.97		240,314	0.00%	26.17% to 25.07%
2008	1.15% to 1.85%		36,528	6.69 to 6.37		240,525	0.00%	-47.07% to -47.54%
2007	1.15% to 1.85%		48,203	12.63 to 12.14		600,992	0.00%	8.54% to 7.81%
NVIT Multi-Manager Small Cap Value Fund - Class III (SCVF3)
2011	0.45% to 1.90%		49,161	10.18 to 12.72		658,532	0.39%	-5.59% to -6.96%
2010	0.45% to 1.85%		73,763	10.78 to 13.74		1,052,882	0.55%	7.82% to 24.23%	****
2009	1.15% to 1.85%		41,827	11.68 to 11.05		480,065	0.60%	24.87% to 23.83%
2008	1.15% to 2.05%		53,479	9.35 to 8.80		489,197	1.06%	-32.99% to -33.68%
2007	1.15% to 2.05%		70,779	13.95 to 13.27		968,345	1.15%	-8.00% to -8.81%
NVIT Multi-Manager Small Company Fund - Class III (SCF3)
2011	0.45% to 2.20%		171,964	10.42 to 16.19		2,524,182	0.54%	-5.97% to -7.62%
2010	1.15% to 2.20%		182,582	16.13 to 17.52		2,892,144	0.33%	23.91% to 22.59%
2009	1.15% to 2.05%		163,471	13.02 to 12.13		2,092,955	0.26%	33.18% to 31.80%
2008	1.15% to 2.05%		148,984	9.78 to 9.20		1,434,159	0.83%	-38.87% to -39.51%
2007	1.15% to 2.05%		185,353	15.99 to 15.22		2,922,660	0.02%	0.93% to 0.05%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

(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 Short Term Bond Fund - Class II (NVSTB2)
2011	0.45% to 2.10%		443,708	$ 10.01 to $ 9.90	$	4,420,514	1.17%	0.13% to -0.98%	****
NVIT Money Market Fund - Class II (NVMM2)
2011	0.45% to 2.55%		24,210,354	9.91 to 9.48		235,051,949	0.00%	-0.45% to -2.54%
2010	0.45% to 2.85%		22,180,368	9.95 to 9.70		218,477,190	0.00%	-0.45% to -2.85%
2009	0.45% to 2.90%		27,007,244	10.00 to 9.98		269,859,905	0.00%	-0.02% to -0.16%	****
VPS Balanced Wealth Strategy Portfolio - Class B (ALVBWB)
2011	1.15% to 1.60%		6,071	9.09 to 9.07		55,121	0.00%	-9.07% to -9.35%	****
VP Income & Growth Fund - Class III (ACVIG3)
2011	0.45% to 1.90%		357,418	10.70 to 11.21		4,212,861	1.53%	2.65% to 1.16%
2010	1.15% to 2.05%		383,684	11.84 to 10.94		4,454,959	1.56%	12.83% to 11.89%
2009	1.15% to 2.05%		324,541	10.49 to 9.77		3,334,930	4.67%	16.74% to 15.51%
2008	1.15% to 2.05%		343,435	8.99 to 8.46		3,028,849	2.18%	-35.34% to -36.01%
2007	1.15% to 2.05%		511,898	13.90 to 13.22		7,000,632	2.11%	-1.22% to -2.07%
VP Inflation Protection Fund - Class II (ACVIP2)
2011	0.45% to 2.50%		588,753	10.70 to 10.55		6,269,731	2.21%	7.00% to 5.53%	****
VP Ultra(R) Fund - Class III (ACVU3)
2011	1.15% to 1.80%		41,872	10.96 to 10.28		448,164	0.00%	-0.09% to -0.68%
2010	1.15% to 2.05%		76,358	10.97 to 10.13		819,374	0.54%	14.77% to 13.83%
2009	1.15% to 2.05%		91,946	9.56 to 8.90		859,093	0.29%	32.99% to 31.61%
2008	1.15% to 2.05%		96,850	7.19 to 6.76		680,708	0.00%	-42.19% to -42.77%
2007	1.15% to 2.05%		185,781	12.43 to 11.81		2,265,496	0.00%	19.64% to 18.59%
VP Value Fund - Class III (ACVV3)
2011	0.45% to 2.10%		433,733	10.54 to 13.71		5,771,459	1.99%	0.56% to -1.10%
2010	1.15% to 2.05%		569,497	13.68 to 12.65		7,598,957	2.36%	12.12% to 11.19%
2009	1.15% to 2.05%		481,074	12.20 to 11.38		5,721,824	6.05%	18.48% to 17.29%
2008	1.15% to 2.05%		586,741	10.30 to 9.70		5,923,371	2.50%	-27.62% to -28.36%
2007	1.15% to 2.05%		707,354	14.23 to 13.54		9,883,316	1.90%	-6.24% to -7.04%
Quality Bond Fund II - Primary Shares (FQB)
2011	1.30%		303	15.74		4,769	5.10%	0.95%
2010	1.30%		303	15.59		4,725	0.00%	7.09%
VIP Fund - Asset Manager Portfolio - Service Class 2 (FAM2)
2011	0.45% to 2.45%		83,003	9.15 to 9.03		754,254	5.85%	-8.51% to -9.74%	****
VIP Fund - Contrafund Portfolio - Service Class 2 R (FC2R)
2011	1.15% to 1.80%		497,387	15.48 to 14.54		7,539,529	0.67%	-3.90% to -4.48%
2010	1.15% to 2.05%		651,814	16.11 to 14.89		10,272,180	0.89%	15.60% to 14.65%
2009	1.15% to 2.05%		908,969	13.93 to 12.99		12,376,454	1.04%	33.90% to 32.49%
2008	1.15% to 2.05%		1,277,175	10.41 to 9.80		13,048,585	0.57%	-43.35% to -43.92%
2007	1.15% to 2.20%		1,869,163	18.37 to 17.33		33,799,687	0.84%	15.94% to 14.77%
VIP Fund - Equity-Income Portfolio - Service Class 2 R (FEI2R)
2011	0.45% to 2.45%		321,625	10.39 to 8.69		3,695,392	1.83%	0.25% to -1.76%
2010	1.15% to 2.05%		437,403	11.83 to 10.92		5,056,213	1.47%	13.58% to 12.65%
2009	1.15% to 2.05%		489,408	10.42 to 9.70		5,000,669	1.98%	28.45% to 27.06%
2008	1.15% to 2.05%		640,409	8.11 to 7.63		5,107,279	1.96%	-43.48% to -44.08%
2007	1.15% to 2.05%		923,301	14.35 to 13.65		13,064,438	1.53%	0.10% to -0.75%
VIP Fund - Growth Portfolio - Service Class 2 R (FG2R)
2011	0.45% to 2.45%		475,936	11.17 to 9.52		5,091,681	0.11%	-0.47% to -2.47%
2010	0.45% to 2.05%		518,503	11.23 to 10.19		5,606,178	0.10%	12.26% to 21.44%	****
2009	1.15% to 2.05%		445,278	9.02 to 8.39		3,936,869	0.14%	26.51% to 25.09%
2008	1.15% to 2.05%		418,788	7.13 to 6.71		2,932,438	0.23%	-47.92% to -48.44%
2007	1.15% to 2.20%		1,427,016	13.70 to 12.90		19,260,131	0.33%	25.19% to 23.94%
VIP Founding Funds Allocation Fund - Class 2 (FTVFA2)
2011	0.45% to 2.45%		194,719	10.27 to 9.93		2,015,502	0.02%	-1.98% to -3.95%
2010	0.65% to 2.05%		143,063	10.46 to 13.86		1,533,077	2.88%	4.65% to 3.71%	****
Legg Mason ClearBridge Variable Fundamental All Cap Value Portfolio -Class I  (SBTRP)
2011	1.30%		1,435	23.02		33,027	1.36%	-7.41%
2010	1.30%		1,436	24.86		35,696	1.78%	15.09%
2009	1.30%		1,436	21.60		31,016	1.40%	27.68%
2008	1.30%		1,436	16.92		24,293	0.81%	-37.40%
Legg Mason ClearBridge Variable Large Cap Value Portfolio: Class I (SBVI)
2011	1.30%		226,716	8.52		1,932,058	2.20%	3.59%
2010	1.30%		238,143	8.23		1,959,085	3.00%	8.04%
2009	1.30%		250,350	7.61		1,906,211	1.89%	22.88%
2008	1.30%		329,358	6.20		2,040,812	1.27%	-36.46%
2007	1.30%		384,388	9.75		3,748,550	2.56%	-2.48%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

(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 Currents Variable International All Cap Opportunity Portfolio (SBIEP)
2011	1.30%		8,400	$ 10.30	$	86,509	8.94%	-12.74%
2010	1.30%		8,402	11.80		99,160	1.81%	2.37%
2009	1.30%		6,609	11.53		76,194	1.09%	26.94%
2008	1.30%		7,937	9.08		72,083	3.01%	-44.14%
2007	1.30%		5,193	16.26		84,432	0.98%	4.95%
All Asset Portfolio - Advisor Class (PMVAAD)
2011	0.45% to 2.50%		405,198	9.59 to 9.46		3,862,027	6.91%	-4.10% to -5.42%	****
Foreign Bond Portfolio (Unhedged) - Advisor Class (PMVFAD)
2011	0.45% to 2.50%		517,027	11.82 to 11.42		6,071,567	1.90%	7.93% to 5.71%
2010	0.45% to 2.50%		198,651	10.95 to 10.80		2,185,251	0.85%	9.54% to 8.02%	****
Low Duration Portfolio - Advisor Class (PMVLAD)
2011	0.45% to 2.50%		580,305	9.88 to 9.74		5,691,327	0.99%	-1.19% to -2.56%	****
Total Return Portfolio - Advisor Class (PMVTRD)
2011	0.45% to 2.45%		987,316	10.06 to 9.93		9,871,103	1.72%	0.61% to -0.73%	****
Variable Insurance Trust - Commodity RealReturn(TM) Strategy Portfolio - Advisor Class (PMVRSD)
2011	0.45% to 2.45%		307,254	11.34 to 10.97		3,436,177	13.87%	-7.96% to -9.80%
2010	0.45% to 2.15%		368,568	12.32 to 12.18		4,517,473	9.10%	23.24% to 21.85%	****
Variable Insurance Trust - Emerging Markets Bond Portfolio - Advisor Class (PMVEBD)
2011	0.45% to 2.50%		674,109	11.27 to 10.89		7,483,514	5.14%	5.73% to 3.56%
2010	0.45% to 2.50%		574,766	10.66 to 10.51		6,093,650	2.92%	6.61% to 5.15%	****
Variable Insurance Trust - Global Bond (Unhedged) - Advisor Class (PMVGBD)
2011	0.45% to 2.15%		639,277	11.71 to 11.38		7,377,536	2.44%	6.97% to 5.15%
2010	0.45% to 2.35%		486,960	10.95 to 10.81		5,303,849	1.64%	9.49% to 8.10%	****
Variable Insurance Trust - High Yield Portfolio - Advisor Class (PMVHYD)
2011	0.45% to 2.35%		5,040,280	10.95 to 10.60		54,199,063	5.80%	2.77% to 0.81%
2010	0.45% to 2.50%		1,107,488	10.65 to 10.51		11,718,095	4.30%	6.52% to 5.06%	****
Variable Contracts Trust - Emerging Markets VCT Portfolio - Class II (PIVEM2)
2011	0.45% to 2.10%		415,420	8.57 to 8.33		3,503,665	0.00%	-23.96% to -25.22%
2010	0.45% to 2.45%		611,121	11.27 to 11.12		6,839,923	0.05%	12.67% to 11.17%	****
Variable Contracts Trust - High Yield VCT Portfolio - Class II Shares (PIHYB2)
2011	0.45% to 2.45%		519,408	10.62 to 10.26		5,496,550	4.99%	-2.47% to -4.42%
2010	0.45% to 2.45%		286,132	10.89 to 17.46		3,267,038	3.01%	8.85% to 7.44%	****
Ultra Short NASDAQ-100 (PROUSN)
2011	1.15% to 2.15%		99,013	5.68 to 5.59		554,202	0.00%	-23.07% to -23.85%
2010	1.15% to 2.15%		9,963	7.39 to 7.34		73,269	0.00%	-26.11% to -26.61%	****
VP Access High Yield (PROAHY)
2011	0.45% to 2.15%		346,045	11.20 to 10.88		3,817,266	1.25%	2.28% to 0.54%
2010	0.45% to 2.45%		556,884	10.95 to 10.80		6,055,548	2.29%	9.50% to 8.04%	****
VP Asia 30 (PROA30)
2011	0.45% to 2.00%		172,456	8.13 to 7.92		1,378,726	0.03%	-27.32% to -28.46%
2010	0.45% to 2.30%		480,729	11.18 to 11.05		5,338,907	0.00%	11.83% to 10.45%	****
VP Banks (PROBNK)
2011	1.15% to 1.65%		20,324	7.47 to 7.44		151,367	0.00%	-25.31% to -25.57%	****
VP Basic Materials (PROBM)
2011	1.15% to 2.10%		51,733	7.73 to 7.68		398,830	0.00%	-22.73% to -23.22%	****
VP Bear (PROBR)
2011	0.45% to 2.35%		235,554	8.19 to 7.93		1,913,731	0.00%	-9.29% to -11.02%
2010	0.45% to 2.10%		373,984	9.03 to 8.93		3,355,405	0.00%	-9.74% to -10.73%	****
VP Biotechnology (PROBIO)
2011	0.45% to 2.10%		13,260	9.41 to 9.30		123,904	0.00%	-5.93% to -6.97%	****
VP Bull (PROBL)
2011	0.45% to 2.45%		755,218	10.38 to 10.04		7,677,092	0.00%	-0.45% to -2.44%
2010	0.65% to 2.45%		380,000	10.42 to 10.29		3,931,347	0.00%	4.16% to 2.91%	****
VP Consumer Goods (PROCG)
2011	0.45% to 1.90%		25,237	9.94 to 9.85		249,257	0.00%	-0.57% to -1.53%	****
VP Consumer Services (PROCS)
2011	0.45% to 2.35%		56,622	9.69 to 9.57		544,622	0.00%	-3.08% to -4.31%	****
VP Emerging Markets (PROEM)
2011	0.45% to 2.10%		368,467	8.85 to 8.61		3,210,925	0.00%	-20.06% to -21.39%
2010	0.45% to 2.15%		620,286	11.08 to 10.95		6,824,975	0.00%	10.76% to 9.50%	****
VP Europe 30 (PROE30)
2011	1.15% to 2.00%		17,266	9.55 to 9.42		163,319	0.61%	-9.93% to -10.68%
2010	0.65% to 2.00%		12,935	10.64 to 10.55		136,766	1.01%	6.44% to 5.47%	****
VP Financials (PROFIN)
2011	1.15% to 2.10%		19,538	8.28 to 8.23		161,225	0.00%	-17.17% to -17.70%	****
VP Health Care (PROHC)
2011	0.45% to 1.90%		54,929	9.66 to 9.56		526,815	0.00%	-3.43% to -4.37%	****
VP Industrials (PROIND)
2011	0.45% to 2.35%		96,626	8.78 to 8.67		841,929	0.00%	-12.18% to -13.30%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

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 International (PROINT)
2011	0.45% to 2.10%		262,523	$ 9.32 to $ 9.06	$	2,404,795	0.00%	-14.72% to -16.14%
2010	0.65% to 2.15%		235,682	10.91 to 10.80		2,559,042	0.00%	9.09% to 8.00%	****
VP Internet (PRONET)
2011	0.85% to 2.10%		9,841	8.48 to 8.41		83,166	0.00%	-15.16% to -15.87%	****
VP Japan (PROJP)
2011	0.45% to 2.10%		34,406	7.28 to 7.08		246,466	0.00%	-18.91% to -20.25%
2010	1.15% to 2.00%		55,182	8.93 to 8.88		492,305	0.00%	-10.66% to -11.21%	****
VP NASDAQ-100 (PRON)
2011	0.45% to 2.45%		244,301	10.95 to 10.58		2,628,101	0.00%	1.00% to -1.03%
2010	1.15% to 2.45%		132,411	10.79 to 10.69		1,422,920	0.00%	7.87% to 6.92%	****
VP Oil and Gas (PROOG)
2011	0.45% to 2.35%		291,332	11.33 to 10.98		3,242,585	0.18%	1.79% to -0.15%
2010	1.15% to 2.45%		539,567	11.08 to 10.99		5,964,352	0.00%	10.82% to 9.85%	****
VP Pharmaceuticals (PROPHR)
2011	0.45% to 2.35%		284,915	10.45 to 10.32		2,958,723	0.00%	4.54% to 3.22%	****
VP Precious Metals (PROPM)
2011	0.45% to 2.30%		386,534	8.33 to 8.23		3,198,717	0.00%	-16.69% to -17.72%	****
VP Real Estate (PRORE)
2011	0.45% to 2.50%		45,390	9.33 to 9.20		420,467	0.00%	-6.71% to -7.99%	****
VP Rising Rates Opportunity (PRORRO)
2011	1.15% to 2.10%		93,888	5.45 to 5.36		508,047	0.00%	-38.22% to -38.81%
2010	0.45% to 2.45%		285,625	8.86 to 8.74		2,515,908	0.00%	-11.44% to -12.63%	****
VP Semiconductor (PROSCN)
2011	1.35% to 1.90%		14,743	8.81 to 8.78		129,655	0.00%	-11.91% to -12.24%	****
VP Short Emerging Markets (PROSEM)
2011	1.15% to 2.45%		87,819	9.13 to 8.93		794,238	0.00%	9.39% to 7.96%
2010	1.15% to 2.10%		40,731	8.34 to 8.29		338,364	0.00%	-16.57% to -17.11%	****
VP Short International (PROSIN)
2011	1.15% to 2.50%		162,410	8.60 to 8.41		1,382,717	0.00%	0.63% to -0.73%
2010	1.15% to 2.10%		2,950	8.55 to 8.49		25,147	0.00%	-14.53% to -15.08%	****
VP Short NADSAQ-100 (PROSN)
2011	1.15% to 2.45%		72,310	7.68 to 7.52		549,135	0.00%	-11.50% to -12.66%
2010	1.15% to 2.15%		90,870	8.68 to 8.62		786,558	0.00%	-13.17% to -13.75%	****
VP Technology (PROTEC)
2011	0.45% to 2.35%		107,196	9.33 to 9.21		992,449	0.00%	-6.71% to -7.89%	****
VP Telecommunications (PROTEL)
2011	0.45% to 1.65%		3,690	9.57 to 9.50		35,094	0.00%	-4.27% to -5.04%	****
VP U.S. Government Plus (PROGVP)
2011	0.45% to 2.45%		221,028	15.14 to 14.64		3,284,785	0.13%	42.87% to 40.00%
2010	1.15% to 2.10%		195,289	10.55 to 10.48		2,057,018	0.30%	5.45% to 4.78%	****
VP Ultra NASDAQ-100 (PROUN)
2011	0.45% to 2.15%		161,850	11.26 to 10.94		1,790,643	0.00%	-1.64% to -3.31%
2010	0.65% to 2.45%		54,992	11.43 to 11.29		625,052	0.00%	14.33% to 12.95%	****
VP Utilities (PROUTL)
2011	0.85% to 2.50%		154,187	10.85 to 10.73		1,663,626	0.00%	8.49% to 7.29%	****
Variable Trust: All-Asset Aggressive Strategy Fund (RVAAS)
2011	0.45% to 2.50%		58,543	9.97		572,088	0.34%	-4.72%
2010	1.15% to 2.50%		445,037	10.42		4,622,028	1.52%	4.17%	****
Variable Trust: All-Asset Conservative Strategy Fund (RVACS)
2011	0.45% to 2.25%		192,189	10.07 to 9.77		1,906,307	0.29%	-1.75% to -3.52%
2010	1.15% to 2.25%		292,601	10.20 to 10.13		2,979,398	2.95%	2.02% to 1.26%	****
Variable Trust: All-Asset Moderate Strategy Fund (RVAMS)
2011	0.45% to 2.30%		431,152	9.87 to 9.57		4,190,316	0.35%	-3.24% to -5.04%
2010	1.15% to 2.30%		460,683	10.15 to 10.07		4,669,700	2.52%	1.52% to 0.74%	****
Variable Trust: All-Cap Opportunity Fund (RSRF)
2011	0.45% to 2.55%		738,378	8.52 to 8.77		8,530,419	0.00%	-6.98% to -8.94%
2010	0.45% to 2.55%		945,398	9.15 to 9.63		11,834,837	0.00%	10.71% to 8.37%
2009	0.45% to 2.90%		1,646,126	8.27 to 10.27		19,107,329	0.08%	26.72% to 23.42%
2008	0.80% to 2.90%		2,101,946	6.49 to 8.32		19,467,186	0.00%	-41.21% to -42.50%
2007	0.80% to 2.35%		2,302,659	11.04 to 15.19		36,643,783	0.00%	10.45% to 19.93%	****
Variable Trust: Alternative Strategies Allocation Fund (RVASA)
2011	1.15% to 2.35%		360,426	9.27 to 8.93		3,310,377	2.08%	-4.19% to -5.35%
2010	0.45% to 2.10%		380,558	9.81 to 9.48		3,658,591	0.32%	-1.06% to -2.70%
2009	1.15% to 2.10%		155,760	9.84 to 9.74		1,525,923	0.00%	-0.31% to -1.27%
2008	1.35% to 2.00%		7,573	9.87		74,748	2.15%	-1.27% to -1.31%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
SGI Variable Trust - CLS AdvisorOne Amerigo Fund (RVAMR)
2011	0.45% to 2.50%		1,278,798	$ 8.78 to $ 8.49	$	11,397,397	0.00%	-7.72% to -9.61%
2010	0.45% to 2.50%		1,384,728	9.52 to 9.40		13,531,612	0.10%	14.62% to 12.26%
2009	0.45% to 2.50%		1,152,844	8.30 to 8.35		9,893,619	0.98%	38.78% to 35.71%
2008	0.45% to 2.90%		1,041,892	5.98 to 6.10		6,552,835	0.41%	-43.35% to -44.80%
2007	0.80% to 2.40%		925,019	10.54 to 11.12		10,393,020	0.71%	5.45% to 11.07%	****
Variable Trust: Banking Fund (RBKF)
2011	0.45% to 2.45%		158,278	4.09 to 3.43		833,475	0.23%	-22.58% to -24.13%
2010	0.65% to 2.45%		400,518	5.25 to 4.53		2,746,122	0.91%	12.30% to 10.27%
2009	1.15% to 2.45%		292,935	6.31 to 5.63		1,815,371	3.49%	-4.55% to -6.11%
2008	0.80% to 2.90%		2,475,430	4.86 to 4.25		15,764,043	0.22%	-41.64% to -43.04%
2007	0.80% to 2.40%		592,327	8.33 to 10.52		6,620,044	1.39%	-16.66% to -28.86%	****
Variable Trust: Basic Materials Fund (RBMF)
2011	0.45% to 2.50%		329,769	9.81 to 11.78		6,616,439	0.00%	-16.83% to -18.55%
2010	0.45% to 2.50%		799,928	11.80 to 14.46		19,506,692	0.56%	26.10% to 23.51%
2009	0.45% to 2.85%		1,278,562	9.36 to 14.80		24,972,245	0.29%	54.76% to 50.76%
2008	0.45% to 2.45%		541,731	6.05 to 12.07		6,959,272	0.18%	-45.64% to -46.77%
2007	0.80% to 2.40%		1,894,999	11.11 to 22.74		45,459,701	0.14%	11.06% to 30.88%	****
SGI Variable Trust -CLS AdvisorOne Select Allocation Fund (RVBER)
2011	0.45% to 2.50%		912,603	9.12 to 8.27		7,900,607	1.59%	-4.64% to -6.60%
2010	1.15% to 2.50%		863,401	9.32 to 8.86		7,931,016	1.82%	12.44% to 10.91%
2009	0.65% to 2.50%		595,725	8.40 to 7.97		4,864,031	2.92%	34.91% to 32.20%
2008	0.80% to 2.90%		371,153	6.21 to 5.99		2,273,127	1.10%	-42.60% to -43.87%
2007	0.80% to 2.40%		241,098	10.82 to 10.70		2,596,044	0.00%	8.16% to 7.01%	****
Variable Trust: Biotechnology Fund (RBF)
2011	0.45% to 2.50%		511,648	13.43 to 10.57		5,736,404	0.00%	10.09% to 7.83%
2010	0.45% to 2.50%		400,924	12.20 to 9.80		4,139,904	0.00%	10.20% to 7.94%
2009	0.80% to 2.50%		674,210	10.97 to 8.51		6,240,698	0.00%	17.39% to 15.37%
2008	0.65% to 2.90%		3,205,648	9.37 to 9.33		25,300,919	0.00%	-12.35% to -14.36%
2007	1.15% to 2.15%		942,389	9.36 to 8.77		8,602,365	0.00%	3.20% to 2.16%
SGI Variable Trust -CLS AdvisorOne Clermont Fund (RVCLR)
2011	0.45% to 2.50%		1,041,864	9.58 to 8.89		9,680,693	1.86%	-0.73% to -2.76%
2010	0.45% to 2.50%		846,387	9.65 to 9.14		8,075,221	1.80%	10.49% to 8.21%
2009	0.65% to 2.45%		775,677	8.69 to 8.45		6,762,244	3.86%	21.79% to 19.49%
2008	0.80% to 2.90%		175,719	7.12 to 7.00		1,265,177	0.56%	-30.63% to -32.15%
2007	0.80% to 2.40%		183,136	10.27 to 10.38		1,920,893	3.66%	2.68% to 3.69%	****
Variable Trust: Commodities Strategy Fund (RVCMD)
2011	0.45% to 2.55%		1,163,910	6.72 to 5.68		5,828,149	7.57%	-7.06% to -9.02%
2010	0.45% to 2.55%		1,715,037	7.23 to 6.24		9,325,565	0.00%	7.54% to 5.28%
2009	0.45% to 2.90%		3,091,102	6.72 to 4.76		15,641,976	1.95%	11.06% to 7.79%
2008	0.45% to 2.90%		2,197,097	6.05 to 4.42		10,151,821	1.91%	-49.25% to -50.49%
2007	0.80% to 2.40%		3,045,583	11.91 to 9.02		27,997,886	0.00%	19.10% to 27.80%	****
Variable Trust: Consumer Products Fund (RCPF)
2011	0.45% to 2.50%		453,809	12.91 to 13.46		8,549,906	1.57%	13.25% to 10.93%
2010	0.65% to 2.50%		374,739	11.32 to 12.13		6,296,929	1.13%	16.52% to 14.35%
2009	0.65% to 2.85%		906,887	9.71 to 11.31		13,001,271	1.87%	18.34% to 15.65%
2008	0.45% to 2.90%		1,447,943	8.23 to 8.66		17,640,235	0.21%	-23.73% to -25.64%
2007	0.80% to 2.40%		1,411,731	10.78 to 15.47		22,868,744	1.61%	7.79% to 8.47%	****
Variable Trust: Dow 2x Strategy Fund (RVLDD)
2011	0.45% to 2.50%		1,088,961	6.74 to 8.08		10,208,263	0.00%	8.60% to 6.37%
2010	0.65% to 2.50%		865,504	6.16 to 7.60		7,533,276	0.56%	23.78% to 21.47%
2009	1.15% to 2.45%		1,297,103	7.24 to 6.68		9,238,924	0.00%	35.30% to 32.87%
2008	0.80% to 2.90%		3,022,231	3.65 to 4.63		15,820,875	1.87%	-62.02% to -62.93%
2007	1.15% to 2.05%		1,178,525	14.14 to 13.70		16,505,318	0.83%	6.90% to 6.03%
Variable Trust: DWA Flexible Allocation Fund (RVDFA)
2011	0.45% to 2.50%		1,858,221	8.72 to 8.42		15,904,667	0.39%	-11.54% to -13.36%
2010	1.00% to 2.50%		2,129,161	9.82 to 9.72		20,832,375	0.00%	-1.82% to -2.81%	****
Variable Trust: DWA Sector Rotation Fund (RVDSR)
2011	0.45% to 2.50%		2,618,123	8.89 to 8.59		22,892,659	0.14%	-7.73% to -9.63%
2010	0.45% to 2.50%		3,695,517	9.63 to 9.50		35,366,276	0.00%	-3.68% to -5.00%	****
Variable Trust: Electronics Fund (RELF)
2011	1.15% to 2.50%		274,559	7.02 to 6.02		1,890,025	0.00%	-17.45% to -18.57%
2010	0.45% to 2.50%		687,060	8.39 to 7.39		5,727,179	0.00%	9.06% to 6.82%
2009	0.65% to 2.85%		2,106,765	7.66 to 5.17		16,009,254	0.00%	70.73% to 66.75%
2008	0.80% to 2.40%		106,957	4.47 to 4.21		485,237	0.00%	-50.51% to -51.42%
2007	0.80% to 2.40%		177,430	9.04 to 8.67		1,617,857	0.00%	-9.59% to -4.84%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
Variable Trust: Energy Fund (RENF)
2011	0.45% to 2.50%		431,951	$ 9.34 to $ 10.38	$	9,292,765	0.00%	-6.27% to -8.20%
2010	0.45% to 2.50%		604,777	9.97 to 11.31		14,110,519	0.42%	18.52% to 16.08%
2009	0.45% to 2.85%		918,673	8.41 to 16.82		18,118,995	0.00%	37.88% to 34.26%
2008	0.45% to 2.45%		637,157	6.10 to 13.60		9,294,850	0.00%	-46.28% to -47.38%
2007	0.80% to 2.40%		1,787,020	11.34 to 25.93		48,872,378	0.00%	13.37% to 30.09%	****
Variable Trust: Energy Services Fund (RESF)
2011	0.45% to 2.50%		331,307	8.33 to 9.74		8,167,424	0.00%	-9.70% to -11.56%
2010	0.45% to 2.50%		588,785	9.23 to 11.02		16,225,485	0.00%	25.48% to 22.90%
2009	0.45% to 2.85%		1,013,485	7.36 to 13.78		22,332,285	0.00%	61.69% to 57.29%
2008	0.45% to 2.90%		639,951	4.55 to 7.78		8,884,329	0.00%	-57.79% to -58.86%
2007	0.80% to 2.40%		1,302,965	10.76 to 31.57		43,367,729	0.00%	7.63% to 33.89%	****
Variable Trust: Europe 1.25x Strategy Fund (RLCE)
2011	0.45% to 2.00%		226,240	4.74 to 7.75		1,847,382	0.00%	-15.52% to -16.83%
2010	0.45% to 2.15%		316,669	5.61 to 11.01		3,118,650	1.08%	-11.18% to -12.69%
2009	0.80% to 2.85%		822,161	6.26 to 9.48		9,108,319	2.89%	34.57% to 31.35%
2008	1.15% to 2.35%		843,627	8.53 to 7.82		7,068,608	0.49%	-55.38% to -56.01%
2007	0.80% to 2.40%		1,920,923	10.39 to 17.71		36,071,440	2.40%	3.91% to 10.43%	****
Variable Trust: Financial Services Fund (RFSF)
2011	1.15% to 2.50%		450,938	7.07 to 4.76		3,123,398	0.07%	-15.90% to -17.05%
2010	1.15% to 2.50%		608,405	8.41 to 5.73		5,017,774	0.59%	13.05% to 11.51%
2009	0.80% to 2.85%		2,028,811	5.45 to 5.96		14,546,205	2.08%	18.72% to 15.94%
2008	1.15% to 2.35%		654,279	6.30 to 5.77		4,044,436	0.00%	-48.64% to -49.40%
2007	0.80% to 2.40%		1,165,736	8.91 to 11.36		13,994,254	1.06%	-10.88% to -20.75%	****
Variable Trust: Government Long Bond 1.2x Strategy Fund (RUGB)
2011	0.45% to 2.55%		1,104,597	16.67 to 14.34		20,076,897	2.05%	40.85% to 37.89%
2010	0.45% to 2.55%		657,160	11.83 to 10.40		8,797,254	2.54%	9.61% to 7.30%
2009	0.45% to 2.90%		1,282,305	10.79 to 9.43		15,740,365	2.19%	-31.85% to -33.53%
2008	0.80% to 2.90%		1,869,412	15.76 to 14.18		34,074,962	2.82%	43.67% to 40.71%
2007	0.80% to 2.40%		2,018,451	10.97 to 12.13		25,810,098	3.65%	9.70% to 7.11%	****
Variable Trust: Health Care Fund (RHCF)
2011	0.45% to 2.50%		520,632	10.47 to 9.76		6,223,554	0.00%	4.22% to 2.08%
2010	0.65% to 2.50%		491,192	9.98 to 9.56		5,689,049	0.22%	6.07% to 4.10%
2009	0.45% to 2.85%		1,509,956	9.45 to 11.01		16,388,238	0.00%	24.09% to 21.02%
2008	0.80% to 2.90%		2,444,993	7.58 to 8.33		21,619,236	0.00%	-25.46% to -27.09%
2007	0.80% to 2.40%		1,987,359	10.17 to 11.35		23,750,436	0.00%	1.66% to 3.51%	****
Variable Trust: Internet Fund (RINF)
2011	0.85% to 2.50%		221,146	9.67 to 9.88		3,358,860	0.00%	-12.67% to -14.12%
2010	0.45% to 2.50%		611,617	11.23 to 11.50		10,693,886	0.00%	20.23% to 17.76%
2009	0.45% to 2.85%		1,463,762	9.34 to 14.34		21,063,351	0.00%	65.11% to 61.02%
2008	0.80% to 2.40%		76,853	5.63 to 8.37		692,546	0.00%	-45.32% to -46.28%
2007	0.80% to 2.40%		1,266,765	10.30 to 15.58		20,753,720	0.00%	2.95% to 7.80%	****
Variable Trust: Inverse Dow 2x Strategy Fund (RVIDD)
2011	1.15% to 2.50%		1,321,652	2.65 to 2.97		3,391,507	0.00%	-27.91% to -28.89%
2010	0.45% to 2.35%		2,035,747	6.17 to 3.39		7,402,878	0.00%	-30.60% to -31.93%
2009	0.65% to 2.45%		1,494,684	8.85 to 4.95		7,772,810	0.00%	-45.01% to -46.02%
2008	0.65% to 2.45%		499,333	16.09 to 9.17		4,788,981	0.37%	59.79% to 57.04%
2007	1.15% to 2.05%		365,708	6.14 to 5.93		2,221,573	5.38%	-10.04% to -10.97%
Variable Trust: Inverse Government Long Bond Strategy Fund (RJNF)
2011	0.45% to 2.15%		734,014	4.55 to 3.86		2,853,886	0.00%	-30.75% to -31.93%
2010	1.15% to 2.45%		1,192,824	5.77 to 6.56		6,761,742	0.00%	-13.81% to -14.95%
2009	0.65% to 2.45%		1,665,991	7.54 to 6.12		10,920,647	0.00%	18.64% to 16.39%
2008	0.65% to 2.15%		747,249	6.36 to 5.35		4,190,087	0.36%	-30.66% to -31.75%
2007	1.15% to 2.05%		770,197	8.22 to 7.87		6,265,305	2.89%	-5.62% to -6.47%
Variable Trust: Inverse Mid-Cap Strategy Fund (RVIMC)
2011	1.15% to 2.45%		212,941	4.20 to 5.13		874,985	0.00%	-8.40% to -9.60%
2010	1.15% to 2.30%		283,512	4.59 to 4.24		1,272,342	0.00%	-26.15% to -27.01%
2009	1.15% to 2.10%		234,253	6.21 to 5.88		1,418,650	0.00%	-36.02% to -36.66%
2008	0.80% to 2.85%		424,757	13.48 to 8.95		4,030,502	0.99%	33.35% to 30.68%
2007	1.15% to 2.00%		124,504	7.31 to 7.07		902,071	2.64%	-3.12% to -3.99%
Variable Trust: Inverse NASDAQ-100(R) Strategy Fund (RAF)
2011	1.00% to 2.45%		846,407	5.66 to 4.81		2,106,354	0.00%	-10.97% to -12.27%
2010	1.00% to 2.15%		1,332,478	6.36 to 3.52		3,766,653	0.00%	-22.06% to -22.96%
2009	1.15% to 2.15%		2,220,914	3.66 to 3.35		7,954,958	0.13%	-40.77% to -41.39%
2008	1.15% to 2.15%		627,733	6.18 to 5.72		3,805,228	0.27%	46.32% to 44.91%
2007	1.15% to 2.05%		1,120,118	4.22 to 3.97		4,642,937	4.93%	-12.31% to -13.15%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
Variable Trust: Inverse Russell 2000(R) Strategy Fund (RVISC)
2011	0.45% to 2.50%		669,629	$ 5.58 to $ 4.84	$	2,579,323	0.00%	-8.03% to -9.92%
2010	0.45% to 2.10%		831,180	6.07 to 4.05		3,652,201	0.00%	-27.95% to -29.15%
2009	1.15% to 2.15%		1,031,856	6.04 to 5.70		6,121,445	0.00%	-33.63% to -34.33%
2008	0.45% to 2.20%		329,174	12.61 to 8.65		2,961,396	0.77%	24.13% to 22.04%
2007	1.15% to 2.00%		482,460	7.38 to 7.14		3,534,718	3.11%	4.15% to 3.22%
Variable Trust: Inverse S&P 500 Strategy Fund (RUF)
2011	0.45% to 2.50%		1,195,966	7.55 to 6.30		5,557,221	0.00%	-9.45% to -11.31%
2010	0.45% to 2.40%		1,905,883	8.33 to 4.84		9,868,136	0.00%	-17.33% to -18.95%
2009	1.15% to 2.45%		2,056,718	6.44 to 5.77		12,993,359	0.00%	-28.38% to -29.32%
2008	1.15% to 2.45%		839,808	9.00 to 8.16		7,388,507	0.18%	37.65% to 35.94%
2007	1.15% to 2.05%		941,839	6.54 to 6.16		6,069,827	4.93%	-0.34% to -1.28%
Variable Trust: Japan 2x Strategy Fund (RLCJ)
2011	0.45% to 2.00%		124,422	6.08 to 6.83		909,194	0.00%	-29.26% to -30.37%
2010	0.45% to 2.00%		383,490	8.60 to 9.81		3,956,633	0.00%	15.20% to 13.49%
2009	0.80% to 2.50%		371,247	7.40 to 8.27		3,353,068	0.35%	22.69% to 20.42%
2008	0.65% to 2.90%		677,085	6.05 to 7.04		5,044,057	0.37%	-33.41% to -35.03%
2007	0.80% to 2.35%		751,913	9.07 to 10.63		8,411,765	5.82%	-9.25% to -13.32%	****
Variable Trust: Leisure Fund (RLF)
2011	0.45% to 2.50%		271,172	9.12 to 9.05		4,150,612	0.00%	1.99% to -0.10%
2010	0.45% to 2.50%		482,219	8.94 to 9.06		7,280,301	0.07%	29.76% to 27.09%
2009	0.80% to 2.85%		921,523	6.83 to 8.19		10,658,549	0.00%	35.63% to 32.54%
2008	1.15% to 2.45%		50,985	8.95 to 8.14		447,214	0.00%	-49.68% to -50.44%
2007	0.80% to 2.40%		724,843	9.97 to 16.47		12,447,884	0.00%	-0.27% to -4.83%	****
Variable Trust: Managed Futures Strategy Fund (RVMFU)
2011	0.45% to 2.55%		884,949	8.12 to 7.61		6,966,058	0.00%	-9.04% to -10.95%
2010	0.45% to 2.55%		855,936	8.93 to 8.54		7,479,850	0.00%	-3.97% to -6.00%
2009	0.45% to 2.90%		1,649,444	9.30 to 9.05		15,154,726	0.00%	-4.45% to -6.82%
2008	1.15% to 2.15%		193,966	9.72		1,885,881	0.00%	-2.76% to -2.81%	****
Variable Trust: Mid-Cap 1.5x Strategy Fund (RMED)
2011	0.45% to 2.50%		265,722	8.27 to 8.03		4,354,258	0.00%	-8.01% to -9.90%
2010	0.45% to 2.50%		552,427	8.99 to 8.92		10,223,461	0.00%	36.93% to 34.12%
2009	1.15% to 2.50%		442,029	14.22 to 12.67		6,122,243	0.05%	50.64% to 48.14%
2008	0.80% to 2.90%		837,538	4.31 to 5.25		7,756,084	0.00%	-55.20% to -56.25%
2007	0.80% to 2.40%		721,452	9.61 to 19.60		15,011,216	1.33%	-3.86% to 1.15%	****
Variable Trust: Multi-Hedge Strategies Fund (RVARS)
2011	0.45% to 2.55%		676,240	8.54 to 8.06		5,936,147	0.00%	2.92% to 0.75%
2010	0.45% to 2.55%		714,090	8.30 to 8.00		6,167,122	0.00%	5.70% to 3.48%
2009	0.80% to 2.90%		1,449,094	7.79 to 7.77		11,878,433	1.16%	-4.06% to -6.17%
2008	0.80% to 2.90%		2,285,393	8.11 to 8.29		19,728,175	0.49%	-19.37% to -21.11%
2007	0.80% to 2.35%		2,157,687	10.06 to 10.63		23,274,631	3.97%	0.65% to 1.41%	****
Variable Trust: NASDAQ-100(R) 2x Strategy Fund (RVF)
2011	0.45% to 2.45%		514,544	8.71 to 9.18		5,033,949	0.00%	-1.12% to -3.10%
2010	0.45% to 2.50%		952,362	8.81 to 9.45		9,411,024	0.00%	36.28% to 33.48%
2009	0.80% to 2.50%		1,317,022	6.41 to 6.67		9,671,360	0.00%	116.06% to 111.51%
2008	0.80% to 2.90%		2,777,616	2.97 to 3.56		9,530,939	0.16%	-72.82% to -73.49%
2007	1.15% to 2.15%		2,175,439	12.94 to 12.11		27,662,536	0.32%	26.72% to 25.54%
Variable Trust: NASDAQ-100(R) Fund (ROF)
2011	0.45% to 2.55%		435,810	11.16 to 11.28		6,569,631	0.00%	1.71% to -0.43%
2010	0.45% to 2.55%		719,153	10.97 to 11.33		10,918,017	0.00%	17.95% to 15.47%
2009	0.45% to 2.90%		1,034,035	9.30 to 10.15		13,364,511	0.00%	51.32% to 47.46%
2008	0.80% to 2.45%		581,368	6.11 to 8.05		5,040,754	0.12%	-42.38% to -43.39%
2007	0.80% to 2.20%		842,901	10.61 to 14.46		12,821,105	0.12%	6.12% to 15.29%	****
Variable Trust: Nova Fund (RNF)
2011	0.45% to 2.55%		1,040,432	7.03 to 7.24		9,596,287	0.05%	-1.61% to -3.68%
2010	0.45% to 2.55%		1,293,811	7.14 to 7.52		12,255,667	0.23%	19.43% to 16.91%
2009	0.80% to 2.90%		2,832,370	5.93 to 6.76		22,327,953	1.02%	34.42% to 31.16%
2008	0.80% to 2.90%		2,615,083	4.41 to 5.15		15,360,297	0.34%	-54.84% to -55.90%
2007	0.80% to 2.40%		3,331,378	9.77 to 12.49		43,798,223	1.09%	-2.31% to -1.25%	****
Variable Trust: Precious Metals Fund (RPMF)
2011	0.45% to 2.50%		1,056,256	10.97 to 10.96		24,363,086	0.06%	-24.50% to -26.05%
2010	0.45% to 2.50%		1,736,396	14.53 to 14.82		54,691,917	0.00%	37.46% to 34.63%
2009	0.45% to 2.85%		1,749,261	10.57 to 15.11		41,188,189	0.00%	48.57% to 44.84%
2008	0.45% to 2.85%		1,769,536	7.12 to 10.43		28,379,283	0.00%	-38.84% to -40.38%
2007	0.80% to 2.40%		1,493,671	11.62 to 25.23		39,756,266	0.00%	16.20% to 16.73%	****

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
Variable Trust: Real Estate Fund (RREF)
2011	0.45% to 2.50%		526,180	$ 8.63 to $ 7.86	$	8,271,602	2.30%	1.81% to -0.29%
2010	0.45% to 2.50%		891,868	8.48 to 7.88		14,023,773	1.52%	24.30% to 21.75%
2009	0.45% to 2.85%		1,585,824	6.82 to 10.64		20,047,664	3.00%	24.70% to 21.33%
2008	0.80% to 2.85%		882,234	5.44 to 8.77		9,127,867	0.54%	-42.11% to -43.42%
2007	0.80% to 2.40%		1,220,492	9.40 to 17.12		21,901,406	1.52%	-5.97% to -21.05%	****
Variable Trust: Retailing Fund (RRF)
2011	0.45% to 2.50%		449,160	11.14 to 10.24		6,881,946	0.00%	4.83% to 2.67%
2010	1.00% to 2.50%		429,272	10.43 to 9.98		6,365,320	0.00%	23.89% to 22.01%
2009	0.45% to 2.85%		942,391	8.53 to 9.24		11,098,945	0.00%	43.57% to 40.04%
2008	0.65% to 2.85%		1,375,393	5.93 to 6.60		11,397,360	0.00%	-33.38% to -34.96%
2007	0.80% to 2.40%		175,243	8.89 to 12.05		2,221,363	0.00%	-11.10% to -14.69%	****
Variable Trust: Russell 2000(R) 1.5x Strategy Fund (RMEK)
2011	0.45% to 2.50%		336,537	7.37 to 6.80		4,364,860	0.00%	-12.58% to -14.38%
2010	0.45% to 2.50%		533,873	8.44 to 7.94		8,237,200	0.00%	37.23% to 34.41%
2009	0.80% to 2.50%		403,619	6.09 to 10.40		4,574,267	0.00%	32.25% to 29.58%
2008	0.65% to 2.90%		956,562	4.62 to 5.29		8,283,723	0.18%	-51.68% to -52.89%
2007	0.80% to 2.35%		713,902	9.55 to 17.13		12,930,976	0.91%	-4.47% to -8.90%	****
Variable Trust: S&P 500 2x Strategy Fund (RTF)
2011	0.45% to 2.50%		1,396,743	5.38 to 5.72		10,087,308	0.00%	-4.38% to -6.35%
2010	1.15% to 2.50%		1,486,798	7.77 to 6.10		11,351,949	0.00%	24.03% to 22.34%
2009	0.45% to 2.45%		1,557,121	4.50 to 5.57		9,485,792	0.47%	45.72% to 41.98%
2008	1.15% to 2.45%		3,510,537	4.33 to 3.92		14,914,874	0.00%	-68.35% to -68.89%
2007	1.15% to 2.05%		1,158,234	13.68 to 12.93		15,569,188	0.82%	-0.55% to -1.38%
Variable Trust: S&P 500 Pure Growth Fund (RVLCG)
2011	0.45% to 2.50%		1,364,526	10.92 to 10.19		15,651,318	0.00%	-1.53% to -3.56%
2010	0.45% to 2.50%		1,651,539	11.09 to 10.57		19,524,177	0.00%	24.47% to 21.91%
2009	0.80% to 2.85%		1,732,122	8.83 to 8.81		16,455,478	0.00%	46.06% to 42.88%
2008	0.80% to 2.90%		862,172	6.05 to 6.08		5,672,872	0.00%	-40.31% to -41.64%
2007	0.80% to 2.15%		1,757,917	10.13 to 10.84		19,545,800	0.00%	1.30% to 2.69%	****
Variable Trust: S&P 500 Pure Value Fund (RVLCV)
2011	0.45% to 2.50%		1,398,503	8.24 to 8.35		14,524,395	0.02%	-3.60% to -5.59%
2010	0.45% to 2.45%		1,501,383	8.55 to 10.32		16,526,954	0.62%	19.77% to 17.53%
2009	0.45% to 2.85%		1,825,662	7.14 to 8.58		16,830,155	3.47%	50.58% to 46.61%
2008	0.80% to 2.90%		729,421	4.71 to 5.33		4,552,990	1.11%	-49.07% to -50.26%
2007	0.80% to 2.40%		581,997	9.26 to 11.96		7,209,802	0.97%	-7.43% to -7.60%	****
Variable Trust: S&P MidCap 400 Pure Growth Fund (RVMCG)
2011	0.45% to 2.50%		670,396	13.22 to 12.17		10,603,297	0.00%	-1.10% to -3.14%
2010	0.45% to 2.50%		1,676,122	13.37 to 12.57		27,190,047	0.00%	31.98% to 29.27%
2009	0.45% to 2.85%		2,315,874	10.13 to 11.50		28,587,758	0.00%	56.11% to 52.24%
2008	0.45% to 2.90%		629,723	6.49 to 7.11		5,081,722	0.00%	-36.43% to -38.06%
2007	0.80% to 2.15%		685,021	10.19 to 12.51		8,811,803	0.00%	1.94% to 6.16%	****
Variable Trust: S&P MidCap 400 Pure Value Fund (RVMCV)
2011	0.45% to 2.30%		1,362,882	8.95 to 11.35		16,294,604	0.00%	-7.57% to -9.28%
2010	0.45% to 2.30%		371,676	9.68 to 12.52		4,896,712	0.48%	19.59% to 17.37%
2009	0.45% to 2.85%		1,560,171	8.09 to 10.31		17,283,949	1.61%	54.55% to 50.53%
2008	0.80% to 2.45%		511,572	5.21 to 6.98		3,743,691	0.00%	-44.08% to -45.10%
2007	1.15% to 2.40%		389,952	13.33 to 12.74		5,147,605	1.40%	-5.95% to -7.09%
Variable Trust: S&P SmallCap 600 Pure Growth Fund (RVSCG)
2011	0.45% to 2.45%		620,483	10.86 to 10.17		8,354,924	0.00%	3.05% to 0.98%
2010	0.45% to 2.45%		824,063	10.54 to 10.07		10,859,606	0.00%	24.84% to 22.33%
2009	0.45% to 2.65%		363,474	8.44 to 8.17		3,894,271	0.00%	33.37% to 30.42%
2008	0.45% to 2.90%		805,732	6.33 to 6.63		6,530,777	0.00%	-34.61% to -36.30%
2007	0.80% to 2.35%		383,469	9.67 to 12.15		4,819,484	0.00%	-3.35% to -2.43%	****
Variable Trust: S&P SmallCap 600 Pure Value Fund (RVSCV)
2011	0.45% to 2.45%		541,995	8.57 to 7.82		5,824,859	0.00%	-9.85% to -11.66%
2010	0.45% to 2.45%		474,756	9.51 to 11.28		5,747,110	0.00%	24.54% to 22.19%
2009	0.45% to 2.65%		586,636	7.64 to 7.20		5,738,325	0.76%	61.54% to 57.97%
2008	0.80% to 2.90%		920,313	4.70 to 5.04		5,629,689	0.95%	-43.95% to -45.26%
2007	1.15% to 2.35%		288,414	11.13 to 10.66		3,178,063	0.13%	-21.28% to -22.23%
Variable Trust: Strengthening Dollar 2x Strategy Fund (RVSDL)
2011	0.45% to 2.45%		465,951	7.30 to 5.65		2,839,577	0.00%	-4.69% to -6.60%
2010	1.00% to 2.45%		430,980	7.52 to 6.05		2,774,400	0.00%	-5.46% to -6.85%
2009	1.15% to 2.45%		517,155	6.95 to 6.56		3,533,630	0.00%	-16.81% to -17.91%
2008	0.80% to 2.85%		652,158	9.57 to 7.89		5,357,764	0.00%	4.72% to 2.50%
2007	1.15% to 2.05%		125,974	8.00 to 7.84		1,000,152	0.00%	-11.92% to -12.76%

(Continued)

NATIONWIDE VARIABLE ACCOUNT-4

NOTES TO FINANCIAL STATEMENTS December 31, 2011

	Contract Expense Rate*	Units		Unit Fair Value	Contract Owners’ Equity		Investment Income Ratio**	Total Return***	Inception Date****
Variable Trust: Technology Fund (RTEC)
2011	0.45% to 2.50%		376,999	$ 8.50 to $ 8.33	$	4,491,807	0.00%	-9.61% to -11.47%
2010	1.15% to 2.50%		790,795	13.70 to 9.41		10,514,690	0.00%	10.75% to 9.24%
2009	0.45% to 2.85%		1,623,629	8.43 to 10.28		19,356,144	0.00%	54.90% to 50.99%
2008	1.15% to 2.40%		456,034	8.04 to 7.33		3,600,906	0.00%	-46.04% to -46.79%
2007	0.80% to 2.40%		1,360,335	10.00 to 13.78		19,766,820	0.00%	-0.03% to 7.77%	****
Variable Trust: Telecommunications Fund (RTEL)
2011	1.15% to 2.10%		281,388	7.56 to 10.51		2,092,890	0.84%	-15.38% to -16.20%
2010	1.15% to 2.10%		509,641	8.94 to 12.54		4,480,482	2.10%	13.19% to 12.11%
2009	0.65% to 2.15%		312,907	6.60 to 7.24		2,412,605	5.17%	27.85% to 25.73%
2008	0.80% to 2.40%		347,588	5.15 to 5.65		2,122,714	0.10%	-45.78% to -46.74%
2007	0.80% to 2.40%		1,885,711	9.51 to 10.61		21,038,496	0.21%	-4.94% to 6.67%	****
Variable Trust: Transportation Fund (RTRF)
2011	0.45% to 2.50%		254,532	8.20 to 7.73		3,559,732	0.00%	-11.52% to -13.34%
2010	1.00% to 2.50%		443,935	9.09 to 8.92		7,080,384	0.00%	22.89% to 21.03%
2009	1.15% to 2.20%		496,725	13.42 to 12.29		6,501,690	0.62%	16.04% to 14.61%
2008	0.80% to 2.90%		1,626,125	6.38 to 7.60		18,128,427	0.00%	-25.86% to -27.51%
2007	0.80% to 2.40%		403,231	8.61 to 14.49		6,107,051	0.00%	-13.92% to -10.93%	****
Variable Trust: Utilities Fund (RUTL)
2011	0.45% to 2.50%		801,459	10.51 to 11.38		9,654,483	1.83%	15.77% to 13.39%
2010	0.45% to 2.50%		677,177	9.08 to 10.03		7,120,416	3.27%	6.40% to 4.21%
2009	0.45% to 2.45%		684,436	8.54 to 9.12		6,772,449	2.91%	13.28% to 10.88%
2008	0.45% to 2.90%		2,807,582	7.53 to 9.13		24,479,885	0.46%	-29.89% to -31.66%
2007	0.80% to 2.40%		2,671,079	10.73 to 12.01		33,808,393	1.46%	7.31% to 10.23%	****
Variable Trust: Weakening Dollar 2x Strategy Fund (RVWDL)
2011	0.45% to 2.10%		79,878	9.24 to 10.01		822,499	0.00%	-4.12% to -5.70%
2010	1.15% to 2.35%		155,516	11.17 to 10.48		1,707,547	0.00%	-6.69% to -7.83%
2009	1.15% to 2.10%		243,832	11.97 to 11.50		2,887,079	0.03%	5.38% to 4.29%
2008	1.15% to 2.15%		311,567	11.36 to 11.00		3,511,666	0.00%	-13.25% to -14.09%
2007	1.15% to 2.05%		333,314	13.09 to 12.84		4,344,954	18.79%	16.75% to 15.75%
VIP Trust - Global Hard Assets Fund: Initial Class (VWHA)
2011	0.45% to 2.50%		86,604	7.74 to 7.63		671,686	0.00%	-22.62% to -23.68%	****
VIP Trust - Multi-Manager Alternatives Fund: Initial Class (VWAR)
2011	1.15% to 1.80%		208,859	9.62 to 9.81		2,008,439	0.00%	-3.82% to -4.23%	****
Ivy Fund Variable Insurance Portfolios, Inc. -Asset Strategy (WRASP)
2011	0.45% to 2.50%		2,026,378	9.70 to 9.37		19,482,900	1.07%	-7.62% to -9.52%
2010	0.45% to 2.35%		1,623,923	10.50 to 10.37		17,158,592	0.12%	5.00% to 3.67%	****
NVIT Mid Cap Growth Fund - Class III (obsolete) (SGRF3)
2008	1.15% to 1.85%		83,241	7.56 to 7.21		620,814	0.00%	-46.72% to -47.18%
2007	1.15% to 2.05%		105,552	14.20 to 13.50		1,475,992	0.00%	7.71% to 6.78%
NVIT Money Market Fund II (obsolete) (SAM2)
2008	0.45% to 2.90%		34,269,411	10.22 to 10.01		352,153,977	1.16%	0.78% to -1.69%
2007	0.45% to 2.40%		23,647,331	10.14 to 9.69		243,632,327	4.56%	1.44% to 1.76%	****
Variable Trust: International Opportunity Fund(obsolete) (RVIRO)
2010	0.45% to 2.55%		430,229	8.20 to 7.75		3,435,470	0.62%	-1.44% to -3.52%
2009	0.45% to 2.45%		1,166,081	8.32 to 8.03		9,544,345	0.72%	29.21% to 26.43%
2008	0.80% to 2.90%		992,693	6.43 to 6.33		6,342,715	0.00%	-35.73% to -36.70%	****
Variable Trust: Multi-Cap Core Equity Fund(obsolete) (RVCEQ)
2009	0.80% to 2.90%		244,485	7.20 to 7.44		1,916,426	0.00%	25.96% to 23.10%
2008	0.80% to 2.90%		222,483	5.71 to 6.04		1,400,633	1.74%	-39.45% to -40.83%
2007	0.80% to 2.35%		468,895	9.44 to 10.33		4,913,992	0.67%	-5.61% to -7.46%	****
Variable Trust: Hedged Equity Fund (obsolete) (RVHEQ)
2008	0.80% to 2.90%		1,302,678	7.59 to 7.83		10,594,467	2.15%	-24.45% to -26.10%
2007	0.80% to 2.35%		663,743	10.04 to 10.73		7,224,928	4.28%	0.41% to 0.75%	****
Western Asset Variable Money Market Portfolio(obsolete) (SBMMP)
2009	1.30%		14,536	13.41		194,892	0.17%	-1.08%
2008	1.30%		6,991	13.55		94,751	2.57%	1.28%
2007	1.30%		8,536	13.38		114,231	4.79%	3.55%

2011	Reserves for annuity contracts in payout phase:		143,761
2011	Contract owners equity:	$	1,059,222,360
2010	Reserves for annuity contracts in payout phase:		230,615
2010	Contract owners equity:	$	1,112,505,376
2009	Reserves for annuity contracts in payout phase:		519,480
2009	Contract owners equity:	$	1,061,727,245
2008	Reserves for annuity contracts in payout phase:		841,754
2008	Contract owners equity:	$	943,091,391
2007	Reserves for annuity contracts in payout phase:		1,565,433
2007	Contract owners equity:	$	1,233,502,374

* 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, 2011 and 2010, and the related consolidated statements of operations, changes in equity and cash flows for each of the years in the three-year period ended December 31, 2011. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedules as listed in the accompanying index.  These consolidated financial statements and financial statement schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. 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, 2011 and 2010, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2011, 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.

/s/ KPMG LLP

Columbus, Ohio

March 1, 2012

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

 Consolidated Statements of Operations

(in millions)

	Years ended December 31,
	2011	2010	2009
Revenues
Policy charges	$        1,506	$          1,399	$          1,245
Premiums	531	484	470
Net investment income	1,844	1,825	1,879
Net realized investment (losses) gains	(1,609)	(236)	454
Other-than-temporary impairment losses
Total other-than-temporary impairment losses	(162)	(394)	(992)
Non-credit portion of loss recognized in other comprehensive income	95	174	417
Net other-than-temporary impairment losses recognized in earnings	(67)	(220)	(575)
Other revenues	3	2	(4)
Total revenues	$        2,208	3,254	3,469
Benefits and expenses
Interest credited to policyholder account values	$        1,033	$          1,056	$          1,100
Benefits and claims	1,062	873	812
Policyholder dividends	67	78	87
Amortization of deferred policy acquisition costs	76	396	466
Amortization of value of business acquired and other intangible assets	11	18	63
Interest expense	70	55	55
Other expenses, net of deferrals	609	574	579
Total benefits and expenses	$        2,928	3,050	3,162
(Loss) income before federal income taxes and noncontrolling interests	$          (720)	$             204	$             307
Federal income tax (benefit) expense	(382)	24	48
Net (loss) income	$          (338)	$             180	$             259
Less:  Net loss attributable to noncontrolling interest	(56)	(60)	(52)
Net (loss) income attributable to Nationwide Life Insurane Company	$          (282)	$             240	$             311

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Balance Sheets

(in millions, except for share and per share amounts)

	December 31,
	2011	2010
Assets
Investments
Fixed maturity securities, available-for-sale	$         29,201	$           26,434
Equity securities, available-for-sale	20	42
Mortgage loans, net of allowance	5,748	6,125
Policy loans	1,008	1,088
Short-term investments	1,125	1,062
Other investments	566	558
Total investments	$         37,668	$           35,309
Cash and cash equivalents	49	337
Accrued investment income	560	459
Deferred policy acquisition costs	4,425	3,973
Value of business acquired	238	259
Goodwill	200	200
Other assets	4,348	1,985
Separate account assets	65,194	64,875
Total assets	$      112,682	$         107,397
Liabilities and Equity
Liabilities
Future policy benefits and claims	$         35,252	$           32,676
Short-term debt	777	300
Long-term debt	991	978
Other liabilities	4,316	2,429
Separate account liabilities	65,194	64,875
Total liabilities	$      106,530	$         101,258
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	3,459	3,741
Accumulated other comprehensive income	626	321
Total shareholder's equity	$           5,807	$             5,784
Noncontrolling interest	345	355
Total equity	$           6,152	$             6,139
Total liabilities and equity	$      112,682	$         107,397

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of 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, 2008	$           4	$     1,698	$    2,952	$            (1,361)	$           3,293	$          416	$    3,709
Cumulative effect of adoption of accounting principle, net of taxes	-	-	250	(250)	-	-	-
Capital contributed by NFS	-	20	-	-	20	-	20
Comprehensive income (loss):
Net income (loss)	-	-	311	-	311	(52)	259
Other comprehensive income	-	-	-	1,345	1,345	-	1,345
Total comprehensive income (loss)	-	-	311	1,345	1,656	(52)	1,604
Change in noncontrolling interest	-	-	-	-	-	(13)	(13)
Other, net	-	-	(3)	-	(3)	-	(3)
Balance as of December 31, 2009	$           4	$     1,718	$    3,510	$               (266)	$           4,966	$          351	$    5,317
Cumulative effect of adoption of accounting principle, net of taxes	-	-	(9)	9	-	46	46
Comprehensive income (loss):
Net income (loss)	-	-	240	-	240	(60)	180
Other comprehensive income	-	-	-	578	578	-	578
Total comprehensive income (loss)	-	-	240	578	818	(60)	758
Change in noncontrolling interest	-	-	-	-	-	18	18
Balance as of December 31, 2010	$           4	$     1,718	$    3,741	$                321	$           5,784	$          355	$    6,139
Comprehensive loss:
Net loss	-	-	(282)	-	(282)	(56)	(338)
Other comprehensive income	-	-	-	305	305	-	305
Total comprehensive income (loss)	-	-	(282)	305	23	(56)	(33)
Change in noncontrolling interest	-	-	-	-	-	46	46
Balance as of December 31, 2011	$           4	$     1,718	$    3,459	$                626	$           5,807	$          345	$    6,152

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Consolidated Statements of Cash Flows

(in millions)

	Years ended December 31,
	2011	2010	2009
Cash flows from operating activities:
Net (loss) income	$        (338)	$           180	$           259
Adjustments to net (loss) income
Net realized investment losses (gains)	1,609	236	(454)
Net other-than-temporary impairment losses recognized in earnings	67	220	575
Interest credited to policyholder accounts	1,033	1,056	1,100
Capitalization of deferred policy acquisition costs	(741)	(634)	(513)
Amortization of deferred policy acquisition costs	76	396	466
Amortization and depreciation	48	(2)	51
Deferred tax (benefit) expense	(437)	115	(117)
Changes in:
Policy liabilities	(608)	(579)	(725)
Other, net	(632)	(302)	(30)
Net cash provided by operating activities	$            77	$           686	$           612
Cash flows from investing activities:
Proceeds from maturity of available-for-sale securities	$      2,705	$        3,251	$        3,889
Proceeds from sale of available-for-sale securities	1,585	2,168	4,211
Proceeds from sales/repayments of mortgage loans	1,124	996	773
Purchases of available-for-sale securities	(6,176)	(5,910)	(9,206)
Issuance and purchases of mortgage loans	(751)	(373)	(36)
Net (increase) decrease in short-term investments	(61)	(44)	1,910
Collateral received (paid), net	359	(23)	(869)
Other, net	104	(29)	208
Net cash (used in) provided by investing activities	$     (1,111)	$             36	$           880
Cash flows from financing activities:
Net change in short-term debt	$          477	$           150	$         (100)
Proceeds from issuance of long-term debt	13	272	-
Investment and universal life insurance product deposits and other additions	5,314	4,540	3,877
Investment and universal life insurance product withdrawals and other deductions	(5,024)	(5,405)	(5,301)
Other, net	(34)	9	39
Net cash provided by (used in) financing activities	$          746	$         (434)	$      (1,485)
Net (decrease) increase in cash and cash equivalents	$        (288)	$           288	$               7
Cash and cash equivalents, beginning of period	337	49	42
Cash and cash equivalents, end of period	$            49	$           337	$             49

See accompanying notes to consolidated financial statements.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements

December 31, 2011, 2010 and 2009

(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, 2011 include Nationwide Life and Annuity Insurance Company (NLAIC) and Nationwide Investment Services Corporation (NISC).  NLAIC offers universal life insurance, variable universal life insurance, corporate-owned life insurance (COLI) and individual annuity contracts on a non-participating basis.  NISC is a registered broker-dealer.

The Company is a leading provider of long-term savings and retirement products in the United States of America (U.S.).  The Company develops and sells a diverse range of products 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.

On December 31, 2009, NLIC merged with its affiliate, Nationwide Life Insurance Company of America and subsidiaries (NLICA), with NLIC as the surviving entity.  In addition, NLIC’s subsidiary, NLAIC, merged with a subsidiary of NLICA, Nationwide Life and Annuity Company of America (NLACA), effective as of December 31, 2009, with NLAIC as the surviving entity.  The mergers were completed to streamline the enterprise's capital structure and create operational efficiencies.  See Note 2 for further information.

As of December 31, 2011 and 2010, 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

Use of Estimates

The consolidated financial statements were prepared in accordance with accounting principles generally accepted in the U.S. (GAAP). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions affecting the amounts reported in the 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 liabilities 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 may differ significantly from those estimates.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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). Entities in which NLIC does not have a controlling interest but in which the Company has significant influence over the operating and financing decisions and certain other investments are reported using the equity method. All significant intercompany accounts and transactions have been eliminated.

Certain items in the consolidated financial statements and related notes have been reclassified to conform to the current presentation.

Revenues and Benefits

Investment and Universal Life Insurance Products.  Investment products consist primarily of individual and group variable and fixed deferred annuities.  Universal life insurance products include universal life insurance, variable universal life insurance, COLI, bank-owned life insurance (BOLI) and other interest-sensitive life insurance policies.  Revenues for investment products and universal life insurance products consist of net investment income, asset fees, cost of insurance charges, administrative fees and surrender charges that have been earned and assessed against policy account balances during the period.  The timing of revenue recognition as it relates to fees assessed on investment contracts and universal life contracts is determined based on the nature of such fees.  Asset fees, cost of insurance charges and administrative fees are assessed on a daily or monthly basis and recognized as revenue when assessed and earned.  Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited.  Surrender charges are recognized upon surrender of a contract in accordance with contractual terms.Policy benefits and claims that are charged to expense include interest credited to 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 premiums and benefits, and primarily consist of whole life insurance, term life insurance and certain annuities with life contingencies.  Premiums for traditional life insurance products are recognized as revenue when due.  Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contract.  This association is accomplished through the provision for future policy benefits and the deferral and amortization of policy acquisition costs.

Future Policy Benefits and Claims

The process of calculating reserve amounts for traditional life insurance products involves the use of a number of assumptions, including those related to persistency (how long a contract stays with a company), mortality (the relative incidence of death in a given time), morbidity (the relative incidence of disability resulting from disease or physical impairment) and interest rates (the rates expected to be paid or received on financial instruments, including insurance or investment contracts).

The Company calculates its liability for future policy benefits and claims for investment products in the accumulation phase and universal life insurance policies as the policy account balance, which represents participants’ net premiums and deposits plus investment performance and interest credited less applicable contract charges.

The liability for future policy benefits and claims for traditional life insurance policies was determined using the net level premium method using interest rates varying from 2.0% to 10.5% and estimates of mortality, morbidity, investment yields and withdrawals that were used or being experienced at the time the policies were issued.

The liability for future policy benefits for payout annuities was calculated using the present value of future benefits and   maintenance costs discounted using interest rates at issue varying generally from 3.0% to 13.0%.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 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 guarantee 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 amortization of DAC, value of business acquired (VOBA) and unearned revenue reserves. Refer to Note 4 for discussion of these guarantees.

The Company offers various guarantees to variable annuity contractholders including 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. These guarantees 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 discussion of these guarantees.

The Company’s guaranteed minimum accumulation benefit (GMAB) and guaranteed living withdrawal benefit (GLWB) living benefit riders represent an embedded derivative in a variable annuity contract that is required to be separated from, and valued apart from, the host variable annuity contract.  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, expectations of contractholder persistency, contractholder withdrawal patterns, risk neutral market returns, correlations of market returns and market return volatility.

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

Investment and universal life insurance products.  The Company has deferred certain costs that vary with and primarily relate to acquiring business, consisting principally of commissions, premium taxes, certain expenses of the policy issue and underwriting department, certain variable sales expenses that relate to and vary with the production of new and renewal business and other acquisition expenses net of those acquisition costs ceded to reinsurers. In addition, the Company defers sales inducements, such as interest credit bonuses and jumbo deposit bonuses.  The methods and assumptions used to amortize and assess recoverability of DAC depend on the type of insurance product.

Investment products primarily consist of individual and group variable and fixed deferred annuities in the Individual Investments and Retirement Plans segments. Universal life insurance products include universal life insurance, variable universal life insurance, COLI, BOLI and other interest-sensitive life insurance policies in the Individual Protection segment.  For these products, the Company amortizes DAC with interest over the lives of the policies in relation to the present value of estimated gross profits from projected interest margins, policy charges, and net realized investment gains and losses less policy benefits and policy maintenance expenses.  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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The Company adjusts the DAC asset related to investment and universal life insurance products to reflect the impact of unrealized gains and losses on fixed maturity securities available-for-sale with the corresponding adjustment recorded in accumulated other comprehensive income (AOCI). The adjustment to DAC represents the change in amortization of DAC that would have been required as a charge or credit to operations had such unrealized amounts been realized and allocated to the product lines.

The assumptions used in the estimation of future 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 and mortality.  Quarterly, consideration is given as to whether adjustments to the assumptions in the annual process for all other product lines are necessary. Currently, the Company’s long-term assumption for net separate account investment performance is approximately 7% growth per year.  The Company reviews this assumption, like others, as part of its annual process.  Variances from the long-term assumption are expected since the majority of the investments in the underlying separate accounts are in equity securities, which correlate in the aggregate with the Standard & Poor’s (S&P) 500 Index.  The Company bases its reversion to the mean process on actual net separate account investment performance from the anchor date to the valuation date.  The Company then 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 assumed net separate account investment performance used in the DAC models is intended to reflect what is anticipated.  However, based on historical returns of the S&P 500 Index, and as part of its pre-set parameters, the Company’s reversion to the mean process generally limits net separate account investment performance to 0-15% during the three-year reversion period.

In addition to the comprehensive annual study of assumptions, management evaluates the appropriateness of the individual variable annuity DAC balance quarterly within pre-set parameters.  These parameters are designed to appropriately reflect the Company’s long-term expectations with respect to individual variable annuity contracts while also evaluating the potential impact of short-term experience on the Company’s recorded individual variable annuity DAC balance.  If the recorded balance of individual variable annuity DAC falls outside of these parameters for a prescribed period, or if the recorded balance falls outside of these parameters and management determines it is highly improbable to get back within the parameters during this time period, assumptions are required to be unlocked, and DAC is recalculated using revised best estimate assumptions.  When DAC assumptions are unlocked and revised, the Company continues to use the reversion to the mean process.

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.  In general, increases in the estimated long-term general and separate account returns result in increased expected future profitability and may lower the rate of DAC amortization, while increases in long-term lapse/surrender and mortality assumptions reduce the expected future profitability of the underlying business and may increase the rate of DAC amortization.

Traditional life insurance products. Generally, DAC is amortized with interest over the premium-paying period of the related policies in proportion to the ratio of actual annual premium revenue to the anticipated total premium revenue.  Such anticipated premium revenue is estimated using the same assumptions as those used for computing liabilities for future policy benefits at issuance.  Under existing accounting guidance, the concept of DAC unlocking does not apply to traditional life insurance products, although evaluations of DAC for recoverability at the time of policy issuance and loss recognition testing at each reporting period are required.

See Note 5 for a discussion of assumption changes that impacted DAC amortization and related balances.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Investments

Purchases and sales of securities are recorded on the trade date. Realized gains and losses on sales of fixed maturity and equity securities are recognized in income based on the specific identification method. Interest and dividend income are 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 VOBA, 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, 2011 and 2010, 82% and 81%, respectively, of fixed maturity securities were priced using independent pricing services.

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. Broker quotes are considered unobservable inputs, and these securities are classified accordingly 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 such that generally only one quotation is available.As the brokers often do not provide the necessary transparency into their quotes and methodologies, the Company periodically performs reviews and tests to ensure that quotes are a reasonable estimate of the investments’ fair value.

For certain fixed maturity securities not valued using independent pricing services or broker quotes, a corporate pricing matrix or internally developed pricing model is most often used. 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.

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. All other investment income is recorded using the effective-yield method without anticipating the impact of prepayments.

Mortgage loans, net of allowance.  The Company holds commercial mortgage loans that are collateralized by properties throughout the U.S. Mortgage loans held-for-investment are carried at amortized cost less a valuation allowance.

The Company maintains a valuation allowance comprised of specific reserves for impaired loans and non-specific reserves for losses inherent in the balance of the portfolio. Specific reserve changes are included in other-than-temporary impairment losses, while changes in non-specific reserves 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 original maturities of less than twelve months. 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.

Other investments. Other investments consist primarily of equity method investments in joint ventures and partnerships,  hedge funds 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 continues to recognize loaned securities in either available-for-sale or short-term investments, and 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.  The Company considers many factors when determining whether it is  the primary beneficiary of a VIE.  The 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. Also reviewed are whether the contractual or ownership interest in the entity changes with the change in fair value of the entity and the extent to which, through the variable interest, the Company has the power to direct the activities that most significantly impact the entity’s performance and the obligation to absorb significant losses of the entity, or the right to receive significant benefits from the entity.  The Company is not required, and does not intend, to provide financial or other support outside contractual requirements to any VIE.

The majority of the VIEs consolidated by the Company are due to providing guarantees to limited partners related to the after tax yields by the Low-Income-Housing Tax Credit Funds (LIHTC Funds).  The results of operations and  financial position of each VIE for which the Company is the primary beneficiary are included along with corresponding noncontrolling interests in the accompanying consolidated financial statements.  Ownership interests held by unrelated third parties in consolidated entities are presented as noncontrolling interests in equity.

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 impacts 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.

Other-than-temporary impairment evaluations.  The Company periodically reviews its available-for-sale securities to determine if any decline in fair value to below cost or 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 referenced above for corporate debt securities.

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.

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. The Company evaluates its intent to sell on an individual security basis. 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.

Equity securities may experience other-than-temporary impairment in the future based on the prospects for full recovery in value in a reasonable period of time, and the Company’s ability and intent to hold the security to recovery.

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.

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, market-indexed life and annuity contracts and certain variable life and annuity contracts require derivative accounting.  All derivative instruments are carried at fair value and are reflected as assets or liabilities in the consolidated balance sheets.

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 and these instruments are classified accordingly in the fair value hierarchy.

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 (e.g., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

For derivative instruments that are designated and qualify for cash flow hedge accounting (e.g., hedging the exposure to the variability in expected future cash flows that is attributable to interest rate risk), 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 during which the hedged transaction impacts earnings in the same line item associated with the forecasted transaction. 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.  Effective July 1, 2010, these securities were transferred from available-for-sale securities to other investments.

Fair Value of Financial Instruments

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 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 Company categorizes financial 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.

· 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The Company reviews its fair value hierarchy classifications for financial 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 and operating loss 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 established when management determines it is more likely than not that all or some portion of the deferred tax assets will not be realized. Interest expense and any associated penalties are shown as income tax expense.

The Company provides for federal income taxes based on amounts the Company believes it ultimately will owe.  Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits.  In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, the Company may be required to 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 or 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, which include highly liquid investments with original maturities of less than three months, are carried at cost, which approximates fair value.

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 for unrealized gains and losses on available-for-sale securities for changes in amortization that would have been required 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 carrying value is less than its fair 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 2011 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.

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 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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.  Separate account assets are comprised of public, privately registered and non-registered mutual funds and investments in securities.Separate account assets are recorded at fair value and the Company primarily uses net asset value (NAV) to estimate the underlying fair value for certain mutual funds that do not have readily determinable fair values.  The Company also uses market quotations to determine the underlying fair value of mutual funds when available.  The value of separate account liabilities is set to equal the fair value for separate account assets.  Investment income and realized investment gains or losses of these accounts accrue directly to the contractholders.

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 2011 (5% in 2010 and 6% in 2009), 42% of the number of life insurance policies in force in 2011 (45% in 2010 and 48% in 2009).  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.

NLICA and Subsidiaries Merger

On December 31, 2009, NLIC merged with its affiliate, NLICA, with NLIC as the surviving entity.  In addition, NLIC’s subsidiary, NLAIC, merged with a subsidiary of NLICA, NLACA, effective as of December 31, 2009, with NLAIC as the surviving entity.  The merger was accounted for at historical cost in a manner similar to a pooling of interests because the involved entities were under common control.  NLICA and subsidiaries are reflected in the Company’s prior year consolidated financial statements at the historical cost of the transferred net assets to provide comparative information as though the companies were combined for all periods presented.  This presentation is consistent for both GAAP and Statutory reporting.  Since NLICA and NLACA were wholly-owned subsidiaries, there was no noncontrolling interest impact.

The Company has presented its consolidated financial statements and accompanying notes as applicable for 2009 and prior to reflect the NLICA merger.

The following table summarizes the impact of the merger with NLICA on the consolidated statement of operations for the year ended December 31:

(in millions)	2009
Total revenues	$                  375
Total benefits and expenses	$                  357
Federal income tax benefit	$                    (5)
Net income	$                    23

The impact of the merger on shareholder’s equity was $1.0 billion as of December 31, 2009 and 2008, respectively.

Subsequent events

The Company evaluated subsequent events through March 1, 2012, the date the consolidated financial statements were issued.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(3)      Recently Issued Accounting Standards

Adopted Accounting Standards

In April 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-02, which amends the factors a creditor should consider to determine whether a restructuring constitutes a troubled debt restructuring in Accounting Standards Codification (ASC) 310, Receivables.  The Company will adopt this guidance for interim and annual periods beginning June 15, 2011. The adoption of this guidance will have an immaterial impact on the Company’s consolidated statements of operations and consolidated balance sheets.

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 statements of operations or consolidated balance sheets.

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.

In April 2009, the FASB issued guidance under FASB ASC 320, Investments – Debt and Equity Securities.  This guidance is designed to create greater clarity and consistency in accounting for and presentation of impairment losses on debt securities.  This guidance is effective for interim and annual periods ending after June 15, 2009 with early adoption permitted.  As of the beginning of the interim period of adoption, this guidance requires a cumulative-effect adjustment to reclassify the non-credit component of previously recognized other-than-temporary impairment losses on debt securities from retained earnings to the beginning balance of AOCI.  The Company adopted this guidance as of January 1, 2009.  The adoption of this guidance resulted in a cumulative-effect adjustment of $250 million, net of taxes, as an increase to the opening balance of retained earnings with a corresponding decrease to the opening balance of AOCI.

Pending Accounting Standard

In September 2011, the FASB issued ASU 2011-08, which amends existing guidance in ASC 350, Intangibles-Goodwill and Other.  The amended guidance allows an entity to conduct a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying value before performing the two-step goodwill impairment test.  If the qualitative assessment indicates that it is not more likely than not that the fair value of a particular reporting unit is less than its carrying value, then the entity is not required to perform the two-step goodwill impairment test.  The Company will adopt this guidance prospectively for the annual period beginning January 1, 2012. The adoption of this guidance will have no impact on the Company's consolidated statements of operations or consolidated balance sheets.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

In May 2011, the FASB issued 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 Company 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 Company’s consolidated statements of operations or consolidated balance sheets.

In October 2010, the FASB issued ASU 2010-26, which amends FASB ASC 944, Financial Services - Insurance. This amends prior guidance by modifying the definition of the types of costs incurred by insurance entities that can be capitalized in the acquisition of new and renewal contracts. The amendments are required to be applied prospectively with retrospective application permitted. The Company will adopt this guidance retrospectively, effective January 1, 2012. The Company is currently in the process of determining the impact of adoption. The adoption of this guidance is expected to have a material impact to DAC and retained earnings.

In June 2011, the FASB issued 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.  In December 2011, the FASB issued ASU 2011-12, which defers certain changes in ASU 2011-05 related to the presentation of reclassification adjustments out of accumulated other comprehensive income.  The Company will adopt both updates retrospectively, effective December 31, 2012.  The adoption of this guidance will impact the presentation of the Company’s consolidated financial statements.

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. The Company will adopt this guidance 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 statements of operations or consolidated balance sheets.

(4)       Certain Long-Duration Contracts

Variable Annuity Contracts

The Company issues variable annuity contracts through its separate accounts, for which investment income and gains and losses on investments accrue directly to, and investment risk is borne by, the contractholder.  The Company also provides various forms of guarantees to benefit the related contractholders.  The Company provides five primary guarantee types of variable annuity contracts:  (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 and have the death benefit paid into the contract and a second death benefit paid upon the survivor’s death.

The GMIB, which was offered as a rider to several variable annuity contracts, is a living benefit that provides the contractholder with a guaranteed annuitization value.

The GMAB, offered in the Company’s Capital Preservation Plus contract rider, 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 rider and continue the variable annuity contract without the GMAB.  In general, the GMAB requires a minimum allocation to guaranteed term options or adherence to limitations required by an approved asset allocation strategy.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The GLWB, offered in the Company’s Lifetime Income contract rider (L.inc), 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.  L.inc is the only living benefit guarantee offered on new variable annuity contract sales.

The following table summarizes information regarding variable annuity contracts with guarantees invested in general and separate accounts as of December 31 (a contract may contain multiple guarantees):

			2011			2010
				Wtd. avg.				Wtd. avg.
	General	Separate	Net	attained	General	Separate	Net	attained
	account	account	amount	age of	account	account	amount	age of
(in millions)	value	value	at risk1	contractholders	value	value	at risk1	contractholders
Return of net deposits:
In the event of death	$   1,562	$11,749	$    175	63	$       832	$    8,039	$       39	62
Accumulation at specified date	$      342	$   4,138	$    149	65	$       558	$    5,394	$     108	65
Minimum return or anniversary contract value :
In the event of death	$   3,600	$28,754	$ 1,882	67	$    2,604	$  30,970	$  1,271	67
At annuitization	$      430	$18,089	$    574	65	$       342	$  12,806	$     431	65

__________

1 Net amount at risk is calculated on a seriatim basis and equals the respective guaranteed benefit less the account value (or zero if the account value exceeds the guaranteed benefit).

Net amount at risk is highly sensitive to changes in financial market movements. See Note 7,for a discussion of the Company’s risk management practices with respect to financial market exposure.

The following table summarizes the reserve balances, for variable annuity contracts with guarantees as of December 31:

(in millions)	2011	2010
Accumulation and withdrawal benefits	$               1,842	$                    168
GMDB	$                     80	$                      46
GMIB	$                       3	$                        2

The following table summarizes paid claims for variable annuity contracts with guarantees as of December 31:

(in millions)	2011	2010
Accumulation and withdrawal benefits	$                     10	$                         -
GMDB	$                     40	$                      62
GMIB	$                        -	$                        3

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 $162 million and $87 million as of December 31, 2011 and 2010, respectively.  Paid claims on contracts maintained in force by these guarantees were immaterial for the years ended December 31, 2011 and 2010, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 December 31:

	2011			2010
			Wtd. avg.			Wtd. avg.
		Net	attained		Net	attained
	Account	amount	age of	Account	amount	age of
(in millions)	value	at risk1	contractholders	value	at risk1	contractholders
No lapse guarantees	$          1,154	$          9,777	58	$          1,065	$          8,099	58

__________

1 Net amount at risk is calculated on a seriatim basis and equals the respective guaranteed death benefit less the account value (or zero if the account value exceeds the guaranteed benefit).

Related Separate Accounts

The following table summarizes account balances of deferred variable annuity, variable single premium immediate annuity and variable universal life insurance contracts that were invested in separate accounts as of December 31:

(in millions)	2011	2010
Mutual funds:
Bond	$               5,604	$                 5,364
Domestic equity	34,612	33,254
International equity	2,812	3,437
Total mutual funds	$             43,028	$               42,055
Money market funds	1,530	1,457
Total	$             44,558	$               43,512

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, 2011 and 2010.

(5)      Deferred Policy Acquisition Costs and Value of Business Acquired

Deferred Policy Acquisition Costs

The following table presents a reconciliation of DAC for the years ended December 31:

(in millions)	2011	2010	2009
Balance at beginning of year	$                3,973	$                3,983	$                4,524
Capitalization of DAC	741	634	513
Amortization of DAC, excluding unlocks	(239)	(385)	(606)
Amortization of DAC related to unlocks	163	(11)	140
Adjustments to DAC related to unrealized gains and losses on securities available-for-sale	(213)	(248)	(588)
Balance at end of year	$                4,425	$                3,973	$                3,983

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The most significant contributor to the favorable unlock recorded during 2011 was the Company’s recorded balance of individual variable annuity DAC fell outside the Company’s preset parameters for the prescribed period, which primarily was driven by favorable equity market performance compared to assumed net separate account returns and resulted in a decrease in DAC amortization of $111 million.

During 2011, 2010 and 2009, the Company conducted its annual comprehensive review of model assumptions and unlocked assumptions related to interest spread, mortality, lapse and market performance assumptions.

During 2009, the Company’s recorded balance of individual variable annuity DAC fell outside the Company’s preset parameters for the prescribed period, which primarily was driven by favorable equity market performance compared to assumed net separate account returns and resulted in a decrease in DAC amortization of $219 million.

Based upon the market performance in the second half of 2011, the DAC balance for variable annuities is currently outside of the preset parameters.  Accordingly, future periods may incur additional amortization of DAC if the Company’s actual returns are less than the assumed net separate account performance.

Value of Business Acquired

The following table presents a reconciliation of VOBA for the years ended December 31:

(in millions)	2011	2010	2009
Balance at beginning of year	$             259	$             277	$             334
Amortization of VOBA, excluding unlocks	(29)	(33)	(36)
Amortization of VOBA related to unlocks	16	13	(13)
Net realized gains on investments	2	1	1
Adjustments to VOBA related to unrealized gains and losses on securities
available-for-sale	(10)	1	(9)
Balance at end of year	$             238	$             259	$             277

Interest on the unamortized VOBA balance (at interest rates ranging from 4.50% to 7.56%) is included in amortization and was $17 million, $18 million, and $20 million during the years ended December 31, 2011, 2010 and 2009, respectively. Additionally, the VOBA gross carrying amount was $585 million and $595 million and accumulated amortization of $347 million and $336 million for the years ended December 31, 2011 and 2010, 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
2012	$              21
2013	$              19
2014	$              16
2015	$              14
2016	$              13

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(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, 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
December 31, 2010
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies	$            497	$             87	$               -	$           584
Obligations of states and political subdivisions	1,410	15	48	1,377
Debt securities issued by foreign governments	110	13	-	123
Corporate public securities	11,921	879	84	12,716
Corporate private securities	4,038	257	47	4,248
Residential mortgage-backed securities	5,811	183	355	5,639
Commercial mortgage-backed securities	1,167	51	32	1,186
Collateralized debt obligations	365	13	126	252
Other asset-backed securities	294	19	4	309
Total fixed maturity securities	$       25,613	$        1,517	$           696	$      26,434
Equity securities	39	3	-	42
Total available-for-sale securities	$       25,652	$        1,520	$           696	$      26,476

The fair value of the Company’s investments may fluctuate significantly in response to changes in interest rates, investment quality ratings and credit spreads.  While the Company has the ability and intent to hold equity securities until recovery, and the Company does not have the intent to sell, nor is it more likely than not it will be required to sell fixed maturity securities in unrealized loss positions, investment losses may be realized to the extent liquidity needs require the disposition of securities in unfavorable interest rate, liquidity or credit spread environments. 

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes the amortized cost and fair value of fixed maturity securities, by maturity, as of December 31, 2011.  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	$                   963	$                   982
Due after one year through five years	6,817	7,215
Due after five years through ten years	7,699	8,478
Due after ten years	4,760	5,408
Subtotal	$             20,239	$             22,083
Residential mortgage-backed securities	5,280	5,224
Commercial mortgage-backed securities	1,347	1,379
Collateralized debt obligations	410	302
Other asset-backed securities	201	213
Total fixed maturity securities	$             27,477	$             29,201

The following table summarizes components of net unrealized gains and losses on available-for-sale securities, as of December 31:

(in millions)	2011	2010 1
Net unrealized gains, before adjustments, taxes and fair value hedging	$          1,725	$             824
Change in fair value attributable to fixed maturities designated in fair value hedging
relationships	(8)	(20)
Net unrealized gains, before adjustments and taxes	1,717	804
Adjustment to DAC and VOBA	(439)	(216)
Adjustment to future policy benefits and claims	(183)	27
Adjustment to policyholder dividend obligation	(132)	(90)
Deferred federal income tax expense	(329)	(184)
Net unrealized gains on available-for-sale securities	$             634	$             341

__________

1 Includes the $9 million, net of taxes, cumulative effect of adoption of accounting principle as of July 1, 2010 for the adoption of ASU 2010-11.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizesthe change in net unrealized gains and losses on available-for-sale securities reported in accumulated other comprehensive income, as of December 31:

(in millions)	2011	2010
Balance at beginning of year	$             341	$           (228)
Cumulative effect of adoption of accounting principle	-	9
Adjusted balance, beginning of period	$             341	$           (219)
Unrealized gains and losses arising during the period:
Net unrealized gains before adjustments	896	1,039
Non-credit impairments and subsequent changes in fair value of those debt securities	(11)	131
Net adjustments to DAC and VOBA	(223)	(247)
Net adjustment to future policy benefits and claims	(210)	7
Net adjustment to policyholder dividend obligation	(42)	(73)
Related federal income tax expense	(135)	(300)
Change in unrealized gains on available-for-sale securities	$             275	$             557
Reclassification adjustments to net investment losses, net of taxes ($(10)         and $(2) as of December 31, 2011 and 2010, respectively)	(18)	(3)
Change in net unrealized gains on available-for-sale securities	$             293	$             560
Balance at end of year	$             634	$             341

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, 2011
Fixed maturity securities:
Obligations of states and
political subdivisions	$        31	$              -	6	$           5	$             -	1	$          36	$              -	7
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	470	15	48	352	48	52	822	63	100
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
December 31, 2010
Fixed maturity securities:
Obligations of states and
political subdivisions	$       814	$           48	77	$             -	$              -	-	$         814	$            48	77
Corporate public securities	1,009	28	109	528	56	107	1,537	84	216
Residential mortgage-backed securities	562	13	41	1,765	342	281	2,327	355	322
Collateralized debt obligations	1	-	2	180	126	46	181	126	48
Other asset-backed securities	458	28	51	465	55	74	923	83	125
Total fixed maturity securities	$    2,844	$         117	280	$     2,938	$         579	508	$      5,782	$          696	788
Equity securities	3	-	3	2	-	40	5	-	43
Total	$    2,847	$         117	283	$     2,940	$         579	548	$      5,787	$          696	831

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes gross unrealized losses based on the ratio of estimated fair value to amortized cost, for all available-for-sale securities in an unrealized loss position, as of the dates indicated:

	December 31, 2011			December 31, 2010
	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%	$         83	$      158	$  241	$        100	$      251	$      351
Less than 80.0%
Residential mortgage-backed securities	-	191	191	-	173	173
Collateralized debt obligations	1	121	122	-	113	113
Other	5	52	57	17	42	59
Total	$         89	$      522	$  611	$        117	$      579	$      696

These unrealized losses represent temporary fluctuations in economic factors that are not indicative of other-than-temporary impairment.

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 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 and 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.

Management believes unrealized losses on 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 were equal to or greater than the amortized cost basis of the securities.

Mortgage Loans, Net of Allowance

The Company’s investments in mortgage loans consist primarily of first lien and collateral dependent commercial mortgage loans.  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.

The collectability of a mortgage loan is based on the ability of the borrower to repay and/or the value of the underlying collateral.  The quality of a loan is generally defined by the specific financial position and condition of a borrower and 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.

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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 for special surveillance procedures and are categorized 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 present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent.

In addition to the loan-specific reserves, the Company maintains a non-specific reserve for losses developed based on loan surveillance categories and property type classes and 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.

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, for the years ended December 31:

(in millions)	2011	2010
Amortized cost:
Loans with non-specific reserves	$             5,672	$               5,952
Loans with specific reserves	136	269
Total amortized cost	$             5,808	$               6,221
Valuation allowance:
Non-specific reserves	$                   33	$                    47
Specific reserves	27	49
Total valuation allowance	$                   60	$                    96
Mortgage loans, net of allowance	$             5,748	$               6,125

The following table summarizes activity in the valuation allowance for mortgage loans for the years ended December 31:

(in millions)	2011	2010
Balance at beginning of year	$                   96	$                    77
Additions	25	66
Deductions	(61)	(47)
Balance at end of year	$                   60	$                    96

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes impaired mortgage loans by class for the years ended December 31:

(in millions)	Office	Warehouse	Retail	Apartment	Other	Total
2011
Amortized cost	$           8	$              31	$         20	$                -	$          77	$          136
Specific reserves	(1)	(9)	(8)	-	(9)	$           (27)
Impaired mortgage loans, net of allowance	$           7	$              22	$         12	$                -	$          68	$          109
2010
Amortized cost	$            8	$               52	$          49	$             23	$         137	$           269
Specific reserves	(1)	(8)	(14)	(4)	(22)	$            (49)
Impaired mortgage loans, net of allowance	$            7	$               44	$          35	$             19	$         115	$           220

As of December 31, 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.

The following table summarizes average recorded investment and interest income recognized for impaired mortgage loans by class for the year ended December 31, 2011:

(in millions)	Office	Warehouse	Retail	Apartment	Other	Total
Average recorded investment	$           7	$              39	$         33	$               4	$          93	$          176
Interest income recognized	$           1	$                5	$           3	$                -	$            8	$            17

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Management uses an internal credit quality rating process to reflect an internal view of the credit risk associated with individual loans, as well as the portfolio as a whole.  This process considers a number of relevant loan quality measurements and factors, including loan-to-value ratio (LTV), debt service coverage ratio (DSC), current market rent expectations, economic vacancy, property characteristics, market area, and borrower strength.  LTV 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 yields an individual internal credit quality rating score for substantially all of the Company’s mortgage loans which is then translated to a credit quality rating ranging from 1 to 5, with 1 representing the lowest risk profile and lowest potential for loss and 5 representing the highest risk profile and highest potential for loss.  These internal ratings by property are updated at least annually.

The following table summarizes the amortized cost of mortgage loans by internal credit quality rating and by class as of the dates indicated:

(in millions)	Office	Warehouse	Retail	Apartment	Other	Total
December 31, 2011
Rated 1	$      112	$              51	$       120	$            10	$           14	$         307
Rated 2	242	494	933	433	153	2,255
Rated 3	372	626	1,108	664	87	2,857
Rated 4	35	86	63	25	22	231
Rated 5	14	30	21	7	86	158
Total mortgage loans	$      775	$        1,287	$   2,245	$       1,139	$         362	$      5,808
December 31, 2010
Rated 1	$            4	$                  -	$            1	$                -	$               -	$              5
Rated 2	173	173	571	108	24	1,049
Rated 3	523	1,065	1,643	935	144	4,310
Rated 4	66	173	105	202	281	827
Rated 5	16	6	5	-	3	30
Total mortgage loans	$        782	$          1,417	$     2,325	$        1,245	$          452	$       6,221

Internal credit quality ratings are not used to establish the valuation allowance; however, there is a strong correlation between the two processes.  For example, mortgage loans in the category receiving the highest loss factors for determination of the valuation allowance are generally rated with an internal credit quality rating of 4 or 5, while mortgage loans in the category receiving the lowest loss factors for determination of the valuation allowance are generally rated 1, 2 or 3.

While the internal credit ratings reflect management’s assessment of relative credit risk in the mortgage loan portfolio for the date indicated based on underwriting criteria and ongoing assessment of the properties’ performance, management believes the amounts, net of valuation allowance, are collectible.

Securities Lending

The fair value of loaned securities was $103 million and $269 million as of December 31, 2011 and 2010, respectively.  The Company received $105 million and $276 million of cash collateral on securities lending as of December 31, 2011 and 2010, respectively. The Company did not receive any non-cash collateral on securities lending as of the balance sheet dates.

Assets on Deposit, Held in Trust and Pledged as Collateral

Fixed maturity securities with an amortized cost of $8 million were on deposit with various regulatory agencies as required by law as of December 31, 2011 and 2010.  These securities continue to be included in fixed maturity securities on the consolidated balance sheets.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Tax Credit Funds and Variable Interest Entities

The Company has sold $796 million and $747 million in LIHTC Funds to unrelated third parties as of December 31, 2011 and 2010.  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.  As of December 31, 2011 and 2010, the Company held guarantee reserves totaling $6 million on these transactions.  These guarantees are in effect for periods of approximately 15 years each.  The LIHTC 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 $770 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.

The Company has relationships with VIEs where the Company is the primary beneficiary.  Net assets of all consolidated VIEs totaled $345 million and $355 million as of December 31, 2011 and 2010, respectively, which was composed primarily of other long-term investments of $310 million and $315 million at December 31, 2011 and 2010, respectively.  As of December 31, 2011 and 2010, the total exposure to loss on VIEs was immaterial (except for the impact of guarantees disclosed above). The Company’s general credit is not exposed to the creditors or beneficial interest holders of these consolidated VIEs.

During 2010, two LIHTC 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 LIHTC 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.

In addition to the consolidated VIEs described above, the Company holds investments in variable interests in LIHTC Funds where the Company is not the primary beneficiary. The carrying value of these investments was $178 million and $157 million as of December 31, 2011 and 2010, respectively. The total exposure to loss on these investments was $309 million and $218 million as of December 31, 2011 and 2010, respectively. The total exposure to loss is determined by adding any unfunded commitments to the carrying value of the VIEs.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Net Investment Income

The following table summarizes net investment income by investment type for the years ended December 31:

(in millions)	2011	2010	2009
Fixed maturity securities, available-for-sale	$               1,502	$                 1,474	$                 1,465
Equity securities, available-for-sale	1	2	2
Mortgage loans	370	396	445
Policy loans	56	55	61
Other	(35)	(43)	(38)
Gross investment income	$               1,894	$                 1,884	$                 1,935
Investment expenses	50	59	56
Net investment income	$               1,844	$                 1,825	$                 1,879

Net Realized Investment Gains and Losses

The following table summarizes net realized investment gains and losses, by source, for the years ended December 31:

(in millions)	2011	2010	2009
Net derivative gains (losses)	$           (1,636)	$                (385)	$                  400
Realized gains on sales	64	176	192
Realized losses on sales	(45)	(43)	(113)
Other	8	16	(25)
Net realized investment (losses) gains	$           (1,609)	$                (236)	$                  454

In 2011, interest rate declines and equity market volatility resulted in net realized derivative losses. Refer to Note 7 for further discussion on the Company’s derivative portfolio and related activity.

Proceeds from the sale of available-for-sale securities were $1.6 billion, $2.2 billion and $4.2 billion during the years ended December 31, 2011, 2010 and 2009, respectively.  Gross gains of $50 million, $172 million and $189 million and gross losses of $39 million, $17 million and $70 million were realized on those sales during the years ended December 31, 2011, 2010 and 2009, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Other-Than-Temporary Impairment Losses

The following table summarizes other-than-temporary impairments for the years ended December 31:

(in millions)	Total	Included in other comprehensive income	Net
2011
Fixed maturity securities	$            135	$                (95)	$               40
Mortgage loans	25	-	25
Other	2	-	2
Other-than-temporary impairment losses	$            162	$                (95)	$               67
2010
Fixed maturity securities	$              330	$               (174)	$              156
Equity securities	5	-	5
Mortgage loans	59	-	59
Other-than-temporary impairment losses	$              394	$               (174)	$              220
2009
Fixed maturity securities	$              907	$               (417)	$              490
Equity securities	7	-	7
Mortgage loans	72	-	72
Other	6	-	6
Other-than-temporary impairment losses	$              992	$               (417)	$              575

The following table summarizes the non-credit portion of other-than-temporary impairments, which have credit losses in earnings, and any subsequent changes in the fair value of those debt securities recognized in other comprehensive income, before federal income taxes, for the years ended December 31:

(in millions)	2011	2010	2009 1
Balance at beginning of year	$           (215)	$              (346)	$                 -
Net activity in the period	(11)	131	(346)
Balance at end of year	$           (226)	$              (215)	$          (346)

__________

1 Includes the $384 million cumulative effect of adoption of accounting principle as of January 1, 2009 for the adoption of guidance impacting FASB ASC 320-10, Investments – Debt and Equity Securities.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes the cumulative 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, for the years ended December 31:

(in millions)	2011	2010	2009
Cumulative credit loss at beginning of year	$            340	$             417	$             507
New credit losses	8	31	168
Incremental credit losses	29	116	72
Losses related to securities included in the beginning balance sold or paid       down during the period	(49)	(202)	(267)
Losses related to securities included in the beginning balance for which there       was a change in intent	-	(22)	(63)
Cumulative credit loss at end of year	$            328	$             340	$             417

(7) Derivative Instruments

The Company is exposed to certain risks relating to its ongoing business operations which are managed by 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 statutory capital position.

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.  In an effort to mitigate this risk, the Company uses cross-currency swaps.  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 standardized credit indices, which are established baskets of creditors, or 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.

Equity market risk management:  The Company has a variety of variable annuity products with guaranteed benefit features. Refer to Note 4 for description of these guarantees.

These products and related obligations expose the Company to various market risks, predominately interest rate and equity 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 funding agreement liabilities,

· cross-currency swaps are used to hedge interest payments and principal payments on foreign currency-denominated financial instruments.

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 hedge certain guaranteed benefit rider obligations included in variable annuity products,

· interest rate swaps, futures and options are used to hedge portfolio duration and other interest rate risks to which the Company is exposed,

· cross-currency swaps are used to hedge foreign currency-denominated assets and liabilities, and

· credit default swaps are used to either buy or sell credit protection on a credit index or 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 effect the Company’s exposure to credit risk could have on the effectiveness of the Company’s hedging relationships is considered.  As of December 31, 2011 and 2010, 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes the fair value of derivative instruments, the related notional amounts of the derivative instruments and the related accrued interest, collateral and master netting agreement amounts as of the dates indicated:

	Derivative assets		Derivative liabilities
(in millions)	Fair value	Notional	Fair value	Notional
December 31, 2011
Derivatives designated and qualifying as hedging instruments	$            11	$          145	$            29	$          310
Derivatives not designated and qualifying as hedging instruments:
Interest rate contracts	$      2,182	$    21,732	$      2,142	$    20,957
Equity contracts	1,004	7,265	21	1,661
Credit default swaps	1	13	1	17
Other derivative contracts	10	892	43	2,409
Gross derivative positions1	$      3,208	$    30,047	$      2,236	$    25,354
Accrued interest	$          172		$          179
Less:
Cash collateral received/paid2	$      1,028		$          223
Master netting agreements	$      2,158		$      2,158
Net uncollateralized derivative positions	$          194		$            34
December 31, 2010
Derivatives designated and qualifying as hedging instruments	$             27	$           210	$             55	$           931
Derivatives not designated and qualifying as hedging instruments:
Interest rate contracts	$           556	$      10,944	$           418	$      10,225
Equity contracts	212	2,484	20	1,124
Credit default swaps	1	20	-	17
Other derivative contracts	42	1,329	53	1,263
Gross derivative positions1	$           838	$      14,987	$           546	$      13,560
Accrued interest	$             99		$           106
Less:
Cash collateral received/paid3	$           351		$             76
Master netting agreements	$           551		$           551
Net uncollateralized derivative positions	$             35		$             25

 __ _______

1 Assets and liabilities included in other assets and other liabilities, respectively in the consolidated balance sheets.

2 Excludes $1 million and $152 million of securities received and posted, respectively, as collateral on derivative transactions.

3 Excludes $8 million and $28 million of securities received and posted, respectively, as collateral on derivative transactions.

The fair value of embedded derivatives on annuity programs were $1.9 billion and $226 million as of December 31, 2011 and 2010, respectively, which are included in future policy benefits and claims in the consolidated balance sheets.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes realized 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:

(in millions)	2011	2010	2009
Derivatives designated and qualifying as hedging instruments	$              (4)	$               (9)	$             (25)
Derivatives not designated and qualifying as hedging instruments:
Interest rate contracts	$            (44)	$             (39)	$           (197)
Equity contracts	(45)	(389)	(739)
Credit default swaps	-	(5)	8
Other derivative contracts	(23)	(151)	9
Net interest settlements	34	16	(151)
Total derivative losses1	$            (82)	$           (577)	$        (1,095)
Embedded derivatives on guaranteed benefit annuity programs	(1,674)	98	1,432
Other revenue on guaranteed benefit annuities	120	94	63
Change in embedded derivative liabilities and related fees	$      (1,554)	$            192	$         1,495
Net realized derivative (losses) gains	$      (1,636)	$           (385)	$            400

_________

1 Included in total derivative losses are economic hedging gains of $1.0 billion, losses of $347 million and $1.1 billion related to guaranteed benefit annuity program as of December 31, 2011, 2010 and 2009, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(8)      Fair Value of Financial Instruments

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
Cash and cash equivalents	49	-	-	49
Derivative assets	-	2,204	1,004	3,208
Separate account assets	62,242	1,000	1,952	65,194
Assets at fair value	$  63,619	$  30,626	$     4,590	$  98,835
Liabilities
Future policy benefits and claims:
Living benefits	$              -	$              -	$   (1,842)	$   (1,842)
Equity indexed annuities	-	-	(63)	(63)
Total future policy benefits and claims	$              -	$              -	$   (1,905)	$   (1,905)
Derivative liabilities	(21)	(2,209)	(6)	(2,236)
Liabilities at fair value	$         (21)	$   (2,209)	$   (1,911)	$   (4,141)

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes changes in fair value measurements for which the Company used significant unobservable inputs (Level 3) to determine fair value for 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 earnings1	In OCI	Purchases	Sales	Level 3	Level 3	2011
Assets
Investments:
Fixed maturity securities:
Corporate public securities	$            114	$                -	$          4	$         41	$     (43)	$          1	$           -	$             117
Corporate private securities	1,161	(10)	26	161	(242)	163	(50)	1,209
Residential mortgage-backed securities	9	-	-	-	-	-	(1)	8
Commercial mortgage-backed securities	2	-	-	-	-	-	-	2
Collateralized debt obligations	191	(2)	5	87	(34)	-	-	247
Other fixed maturity securities	18	5	-	16	(20)	3	(14)	8
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)
Equity indexed annuities	(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 earnings 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 earnings on assets and liabilities still held at the end of the year was $(6) million for other investments, $154 million for derivative assets and $(1.7) billion 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2010:

(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	$         572	$           10	$             2	$         584
Obligations of states and political subdivisions	-	1,377	-	1,377
Debt securities issued by foreign governments	123	-	-	123
Corporate public securities	2	12,600	114	12,716
Corporate private securities	-	3,087	1,161	4,248
Residential mortgage-backed securities	540	5,090	9	5,639
Commercial mortgage-backed securities	-	1,184	2	1,186
Collateralized debt obligations	-	61	191	252
Other asset-backed securities	-	293	16	309
Total fixed maturity securities at fair value	$      1,237	$    23,702	$      1,495	$    26,434
Equity securities	10	32	-	42
Short-term investments	25	1,037	-	1,062
Trading securities	-	-	45	45
Total other investments at fair value	$           35	$      1,069	$           45	$      1,149
Investments at fair value	$      1,272	$    24,771	$      1,540	$    27,583
Cash and cash equivalents	337	-	-	337
Derivative assets	-	627	211	838
Separate account assets	12,325	50,745	1,805	64,875
Assets at fair value	$    13,934	$    76,143	$      3,556	$    93,633
Liabilities
Future policy benefits and claims:
Living benefits	$              -	$              -	$        (168)	$        (168)
Equity indexed annuities	-	-	(58)	(58)
Total future policy benefits and claims	$              -	$              -	$        (226)	$        (226)
Derivative liabilities	(18)	(524)	(4)	(546)
Liabilities at fair value	$          (18)	$        (524)	$        (230)	$        (772)

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes changes in fair value measurements for which the Company used significant unobservable inputs (Level 3) to determine fair value for the year ended December 31, 2010:

	Balance as of				Transfers	Transfers	Balance as of
	December 31,	Net gains (losses)		Activity	into	out of	December 31,
(in millions)	2009	In earnings1	In OCI	in period	Level 3	Level 3	2010
Assets
Investments:
Fixed maturity securities:
Corporate public securities	$              215	$                1	$                  4	$       (15)	$          1	$       (92)	$             114
Corporate private securities	1,187	3	31	(268)	311	(103)	1,161
Residential mortgage-backed securities	2,034	(1)	4	(12)	2	(2,018)	9
Commercial mortgage-backed securities	405	-	1	-	-	(404)	2
Collateralized debt obligations	240	(27)	29	(67)	16	-	191
Other fixed maturity securities	169	(9)	8	(11)	-	(139)	18
Total fixed maturity securities at fair value	$           4,250	$            (33)	$                77	$     (373)	$      330	$  (2,756)	$          1,495
Other investments at fair value	56	10	-	(20)	-	(1)	45
Derivative assets	331	(91)	-	(29)	-	-	211
Separate account assets	1,628	177	-	-	-	-	1,805
Assets at fair value	$           6,265	$              63	$                77	$     (422)	$      330	$  (2,757)	$          3,556
Liabilities
Future policy benefits and claims:
Living benefits	$            (266)	$              98	$                   -	$           -	$           -	$           -	$           (168)
Equity indexed annuities	(45)	(13)	-	-	-	-	(58)
Total future policy benefits and claims	$            (311)	$              85	$                   -	$           -	$           -	$           -	$           (226)
Derivative liabilities	(2)	(2)	-	-	-	-	(4)
Liabilities at fair value	$            (313)	$              83	$                   -	$           -	$           -	$           -	$           (230)

__________

1 Net gains and losses included in earnings 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 earnings on assets and liabilities still held at the end of the year was $(2) million for other investments, $(69) million for derivative assets, $85 million for future policy benefits and claims and $(2) million for derivative liabilities.

At December 31, 2009, most of the Company’s investments in residential mortgage-backed securities backed by Alt-A and sub-prime collateral were categorized as Level 3 financial assets because there was little market activity in these securities.   During 2010, market activity increased in these securities such that they are no longer considered inactive.  As such, these securities were transferred out of Level 3 and into Level 2. Additionally, many of the Company’s investments in below investment-grade commercial mortgage-backed securities, which were categorized as Level 3 financial assets as of December 31, 2009 were transferred to Level 2 in 2010. This was primarily due to an increase in the observable valuation inputs of market activity and availability of higher quality independent pricing data.

There were no significant transfers between Levels 1 and 2 during the year ended December 31, 2010.

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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

Use of Net Asset Value for Estimating Fair Value

The Company uses net asset value to estimate the underlying fair value for certain mutual funds that do not have readily determinable fair values, which are included in separate accounts.

All but one of these mutual fund investments are included in Level 2 and had fair values totaling $50.0 billion as of December 31, 2010. These funds have no unfunded commitments or restrictions and the Company always has the ability to redeem the separate account investment in these funds with the investee at net asset value daily. These mutual funds are primarily invested in domestic and international equity funds.

The Company’s separate account assets include an investment in a mutual fund that may not be redeemed until a seven year guarantee period expires in 2016; however, net asset value has been used to estimate the fair value of this investment as a practical expedient. This fund has no unfunded commitments or other restrictions. 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 $1.3 billion as of December 31, 2011 and 2010, respectively, and is included in Level 3.

Contractholders have the ability to select and change investment categories, which will result in the underlying mutual funds being purchased and sold in the future.

Fair Value on a Nonrecurring Basis

The Company measured certain mortgage loans at fair value, or fair value of the collateral for collateral dependent loans, 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.

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 December 31.  The valuation techniques used to estimate these fair values are described below.

	2011		2010
	Carrying	Fair	Carrying	Fair
(in millions)	value	value	value	value
Assets
Investments:
Mortgage loans held-for-investment	$                5,748	$            5,861	$        6,125	$         5,863
Policy loans	$                1,008	$            1,008	$        1,088	$         1,088
Liabilities
Investment contracts	$              18,318	$         17,992	$      17,962	$       17,618
Short-term debt	$                   777	$               777	$           300	$            300
Long-term debt	$                   991	$            1,081	$           978	$         1,039

Mortgage loans held-for-investment:  The fair values of mortgage loans held-for-investment 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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:

	Retirement	Individual
(in millions)	Plans	Protection	Total
Balance as of December 31, 2009	$               25	$             175	$             200
Adjustments	-	-	-
Balance as of December 31, 2010	$               25	$             175	$             200
Adjustments	-	-	-
Balance as of December 31, 2011	$              25	$            175	$            200

The Company’s annual impairment testing did not result in any impairment on existing goodwill during 2011, 2010 and 2009.  As of the 2011, 2010 and 2009 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, 2011 and 2010 have not been previously impaired.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(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 December 31:

(in millions)	2011	2010
Liabilities:
Future policyholder benefits	$           1,761	$            1,794
Policyholder funds and accumulated dividends	143	143
Policyholder dividends payable	27	28
Policyholder dividend obligation	156	121
Other policy obligations and liabilities	26	13
Total liabilities	$           2,113	$            2,099
Assets:
Fixed maturity securities available-for-sale	$           1,424	$            1,312
Mortgage loans, net	210	224
Policy loans	170	186
Other assets	105	162
Total assets	$           1,909	$            1,884
Excess of reported liabilities over assets	204	215
Portion of above representing other comprehensive income:
Increase in unrealized gain on fixed maturity securities available-for-sale	$                42	$                 73
Adjustment to policyholder dividend obligation	(42)	(73)
Total	$                    -	$                    -
Maximum future earnings to be recognized from assets and liabilities	$              204	$               215
Other comprehensive income:
Fixed maturity securities available-for-sale:
Fair value	$           1,424	$            1,312
Amortized cost	1,292	1,222
Shadow policyholder dividend obligation	(132)	(90)
Net unrealized appreciation	$                   -	$                    -

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes closed block operations for the years ended December 31:

(in millions)	2011	2010	2009
Revenues:
Premiums	$           77	$            83	$            90
Net investment income	102	101	106
Realized investment (losses) gains	(3)	(3)	2
Realized losses credited to policyholder benefit obligation	(1)	(1)	(7)
Total revenues	$         175	$          180	$          191
Benefits and expenses:
Policy and contract benefits	$         145	$          131	$          133
Change in future policyholder benefits and interest credited to
policyholder accounts	(35)	(23)	(24)
Policyholder dividends	55	56	59
Change in policyholder dividend obligation	(8)	(3)	4
Other expenses	1	1	1
Total benefits and expenses	$         158	$          162	$          173
Total revenues, net of benefits and expenses, before federal income
tax expense	$           17	$            18	$            18
Federal income tax expense	6	6	6
Revenues, net of benefits and expenses and federal income tax
expense	$           11	$            12	$            12
Maximum future earnings from assets and liabilities:
Beginning of period	$         215	$          227	$          239
Change during period	(11)	(12)	(12)
End of period	$         204	$          215	$          227

Cumulative closed block earnings from inception through December 31, 2011, 2010 and 2009 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 $23 million, $31 million and $32 million as of December 31, 2011, 2010 and 2009, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(11) Short-Term Debt

The following table summarizes short-term debt and weighted average annual interest rates as of December 31:

(in millions)	2011	2010
$600 million commercial paper program (0.30% and 0.35%, respectively)	$                   300	$                    300
$600 million promissory note and line of credit (1.73% in 2011)	$                   477	$                         -
Total short-term debt	$                   777	$                    300

In May 2011, NMIC, NFS, and NLIC entered into a $600 million revolving credit facility upon expiration of its existing facility of the same amount. The new facility matures in May 2015 and is subject to various covenants, as defined in the agreement.  NLIC had no amounts outstanding under the new or existing facilities as of December 31, 2011 and December 31, 2010.

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. London Interbank Offered Rate (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. Under the terms of the agreement, NLIC may borrow, repay and re-borrow advances under the line of credit at any time prior to the termination of the note, which, among other conditions, is April 2012, subject to automatic renewal for additional one year periods unless either party terminates the agreement.

In June 2010, NLIC entered into an agreement reducing the commercial paper program from $800 million to $600 million.  The rating agency guidelines recommend that NLIC maintain minimum liquidity backup, which includes cash and liquid assets as well as committed bank lines, equal to 50% of any amounts outstanding under the commercial paper program.  Therefore, availability under the aggregate $600 million credit facility is reduced by the amount outstanding in excess of available cash and liquid assets.

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, 2011 and 2010.

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, 2011 and 2010.

The amount of interest paid on short-term debt was $5 million in 2011 and immaterial in 2010 and 2009.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(12)       Long-Term Debt

The following table summarizes long-term debt as of December 31:

(in millions)	2011	2010
8.15% surplus note, due June 27, 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	285	272
Other	6	6
Total long-term debt	$                   991	$                    978

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 of $9 million during 2011. 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 in 2011, 2010 and 2009.  Payments of interest and principal under the notes require the prior approval of the ODI.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(13) Federal Income Taxes

The following table summarizes the federal income tax (benefit) expense attributable to (loss) income before income attributable to noncontrolling interests, for the years ended December 31:

(in millions)	2011	2010	2009
Current tax expense (benefit)	$                   55	$                  (91)	$                  165
Deferred tax (benefit) expense	(437)	115	(117)
Total tax (benefit) expense	$               (382)	$                    24	$                    48

Total federal income tax (benefit) expense differs from the amount computed by applying the U.S. federal income tax rate to (loss) income before federal income taxes and noncontrolling interests, as follows for the years ended December 31:

		2011			2010			2009
(in millions)		Amount	%		Amount	%		Amount	%
Rate reconciliation:
	Computed (expected tax (benefit) expense)	$    (252)	35	%	$         71	35	%	$       107	35	%
	Dividend received deduction	(99)	14	%	(50)	(25)	%	(56)	(18)	%
	Impact of noncontrolling interest	20	(3)	%	21	10	%	18	6	%
	Tax credits	(30)	4	%	(27)	(13)	%	(21)	(7)	%
	Change in tax contingency reserve	(15)	2	%	(5)	(2)	%	5	2	%
	Other, net	(6)	1	%	14	7	%	(5)	(2)	%
	Total	$    (382)	53	%	$         24	12	%	$         48	16	%

The Company’s current federal income tax receivable (liability) was $16 million and $(50) million as of December 31, 2011 and 2010, respectively.

Total federal income taxes paid (refunded) were $121 million, $(35) million, and $(59) million during the years ended December 31, 2011, 2010, and 2009, respectively.

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).  During 2010, there were no material federal income tax expense adjustments.

During 2009, the Company recorded $9 million of net federal income tax expense adjustments primarily related to differences between the 2008 estimated tax liability and the amounts reported on the Company’s 2008 tax returns.  These changes in estimates were primarily driven by the Company’s separate account dividends received deduction (DRD) and foreign tax credit.

As of December 31, 2011, the Company no longer has a capital loss carryforward.  The Company has $59 million in low-income-housing credit carryforwards, which expire between 2026 and 2031 and $126 million in alternative minimum tax credit carryforwards, which have an unlimited carryforward. The Company expects to fully utilize all carryforwards.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following table summarizes the tax effects of temporary differences that give rise to significant components of the net deferred tax liability as of December 31:

(in millions)	2011	2010
Deferred tax assets:
Future policy benefits and claims	$               1,193	$                 1,030
Derivatives	574	27
Capital loss carryforwards	-	178
Tax credit carryforwards	185	145
Other	323	236
Gross deferred tax assets	$               2,275	$                 1,616
Valuation allowance	(18)	(24)
Net deferred tax assets	$               2,257	$                 1,592
Deferred tax liabilities:
Deferred policy acquisition costs	(1,291)	$               (1,071)
Available-for-sale securities	(764)	(670)
Value of business acquired	(86)	(89)
Other	(217)	(150)
Gross deferred tax liabilities	$              (2,358)	$               (1,980)
Net deferred tax liability	$                 (101)	$                  (388)

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 and $24 million as of December 31, 2011 and 2010, respectively.  The change in valuation allowance for the year ended December 31, 2011 was $6 million, while there was no change in the valuation allowance for the year ended December 31, 2010 or 2009.  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.

A rollforward of the beginning and ending uncertain tax positions, including permanent and temporary differences, but excluding interest and penalties, is as follows:

(in millions)	2011	2010	2009
Balance at beginning of period	$              119	$                 95	$                 44
Additions for current year tax positions	9	18	37
Additions for prior years tax positions	-	19	15
Reductions for prior years tax positions	(52)	(13)	(1)
Balance at end of period	$                76	$               119	$                 95

The Company believes it is reasonably possible that approximately $48 million of unrecognized tax benefits will be recognized during 2012, mostly as a result of an industry issue resolution program with the Internal Revenue Service (IRS).  These tax benefits are primarily bad debt deductions related to certain investment impairments.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 2005 tax year. The IRS is conducting an examination of the Company’s U.S. income tax returns for the years 2006 through 2008.  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 and its life subsidiary 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.  The principal differences include charging policy acquisition and certain sales inducement 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 tables summarize the statutory net income (loss) and statutory capital and surplus for the Company and its primary insurance subsidiary for the years ended December 31:

(in millions)	2011	2010	2009
Statutory net income (loss)
NLIC	$            18	$               560	$               397
NLAIC	$          (61)	$                (50)	$                (61)
Statutory capital and surplus
NLIC	$      3,591	$            3,686	$            3,130
NLAIC	$          302	$               287	$               214

On December 31, 2009, NLIC merged with its affiliate, NLICA, with NLIC as the surviving entity.  In addition, NLIC’s subsidiary, NLAIC, merged with a subsidiary of NLICA, NLACA, effective as of December 31, 2009, with NLAIC as the surviving entity.  See Note 2 for details on the accounting treatment of this transaction.

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, 2011, 2010 and 2009, NLIC did not pay any dividends to NFS.  As of January 1, 2012, NLIC has the ability to pay dividends to NFS totaling $359 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The Company currently does not expect such regulatory requirements to impair its 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 were developed by the NAIC.  The formulas 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, each of which requires specified corrective action.  NLIC and NLAIC each exceeded the minimum RBC requirements for all periods presented herein.

(15)       Other Comprehensive Income

The Company’s other comprehensive income and loss includes net income (loss) and certain items that are reported directly within separate components of shareholder’s equity that are not recorded in net income.

The following table summarizes the Company’s other comprehensive income for the years ended December 31:

(in millions)	Unrealized gains on available-for-sale securities	Unrealized gains (losses) on derivatives used in cash flow hedging relationships	Other unrealized losses	Total other comprehensive income
Year ended December 31, 2011
Other comprehensive income before federal income taxes	438	18	-	456
Federal income tax expense	(145)	(6)	-	(151)
Total other comprehensive income	293	12	-	305
Year ended December 31, 20101
Other comprehensive income before federal income taxes	862	27	-	889
Federal income tax expense	(302)	(9)	-	(311)
Total other comprehensive income	560	18	-	578
Year ended December 31, 20092
Other comprehensive income (loss) before federal income taxes	2,088	(4)	(14)	2,070
Federal income tax (expense) benefit	(731)	1	5	(725)
Total other comprehensive income (loss)	1,357	(3)	(9)	1,345

_______

1 During 2010, the adoption of ASU 2010-11 resulted in a cumulative effect adjustment of $9 million, net of taxes, to retained earnings with a corresponding adjustment to AOCI, which is excluded from the table above.

2 The adoption of guidance impacting FASB ASC 320-10, Investments – Debt and Equity Securities during 2009 resulted in a cumulative-effect adjustment of $250 million, net of taxes, to reclassify the non-credit component of previously recognized other-than-temporary impairment losses from the beginning balance of retained earnings to AOCI, which is excluded from the table above.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(16) 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, 2011, 2010, and 2009, the Company made payments to NMIC and NSC totaling $241 million, $250 million, and $241 million, respectively.

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 $3.0 billion as of December 31, 2011 and 2010.  Total revenues from these contracts were $148 million, $139 million, and $143 million for the years ended December 31, 2011, 2010, and 2009, respectively, and include policy charges, net investment income from investments backing the contracts and administrative fees.  Total interest credited to the account balances was $122 million, $115 million, and $116 million for the years ended December 31, 2011, 2010, and 2009, 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, 2011, 2010 and 2009, the Company made lease payments to NMIC of $14 million, $20 million, and $21 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, 2011, 2010, and 2009 were $203 million, $209 million, and $177 million, respectively, while benefits, claims and expenses ceded during these years were $212 million, $241 million, and $196 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, 2011, 2010, and 2009, customer allocations to NFG funds totaled $21.9 billion, $30.5 billion, and $23.7 billion, respectively.  For the years ended December 31, 2011, 2010, and 2009, NFG paid the Company $129 million, $103 million, and $79 million, respectively, for the distribution and servicing of these funds.

Amounts on deposit with NCMC for the benefit of the Company were $994 million and $762 million as of December 31, 2011 and 2010, 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, 2011, 2010, and 2009 were $64 million, $61 million, and $48 million, respectively.

During 2009, NLIC received a $20 million capital contribution from NFS.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

During 2011 and 2010, the Company sold, at fair value, commercial mortgage loans with a carrying value of $41 million and $117 million, respectively, to NMIC.  The sales resulted in a net realized loss of $5 million and $21 million in 2011 and 2010, respectively.

(17) Contingencies

Legal and Regulatory Matters

The Company is a 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.  The Company’s litigation and regulatory matters are subject to many uncertainties, and given their complexity and scope, their outcomes cannot be predicted.  Regulatory proceedings also could affect the outcome of one or more of the Company’s litigations 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 financial services industry has been the subject of increasing scrutiny on a broad range of issues by regulators and legislators. The Company and/or its affiliates have been contacted by, self reported or received subpoenas from state and federal regulatory agencies, including the Securities and Exchange Commission, and other governmental bodies, state securities law regulators and state attorneys general for information relating to, among other things, sales compensation, the allocation of compensation, unsuitable sales or replacement practices, and claims handling and escheatment practices.  The Company is cooperating with and responding to regulators in connection with these inquiries and will cooperate with NMIC in responding to these inquiries to the extent that any inquiries encompass NMIC’s operations.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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 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 stipulation of settlement that agrees to certify a class for settlement purposes only, that provides for payments to the settlement class, and that provides for releases, certain bar orders, and dismissal of the case, subject to the Circuit Courts' approval. The Courts have approved the settlement and the settlement amounts have been paid, but have not yet been distributed to class members. On February 28, 2011, the Court in the Gwin case entered its Order permitting ASEA/PEBCO to assert indemnification claims for attorneys’ fees and costs, but barring them from asserting any other claims for indemnification. On April 22, 2011, ASEA and PEBCO filed a second amended cross claim complaint in the Gwin case against NLIC and NRS seeking indemnification. These claims seeking indemnification remain severed. On April 29, 2011, the Companies filed a motion to dismiss ASEA’s and PEBCO’s amended cross complaint or alternatively for summary judgment. On December 6, 2011 the Court entered an Order that NRS owes indemnification to ASEA and PEBCO for the Coker (Gwin) class action, that NRS does not have a duty to indemnify ASEA and PEBCO for fees associated with the Interpleader action that NRS filed in Montgomery County and dismissing NLIC. On December 31, 2011, the Court denied NRS’s motion to certify this order for an interlocutory appeal. NRS continues to defend this case vigorously.

On August 15, 2001, NFS and NLIC were named in a lawsuit filed in the United States District Court for the District of Connecticut entitled Lou Haddock, as trustee of the Flyte Tool & Die, Incorporated Deferred Compensation Plan, et al v. Nationwide Financial Services, Inc. and Nationwide Life Insurance Company. 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 20, 2010, the Second Circuit Court of Appeals granted NLIC's 23(f) petition agreeing to hear an appeal of the District Court's order granting class certification. On October 21, 2010, the District Court dismissed NFS from the lawsuit. On October 27, 2010, the District Court stayed the underlying action pending a decision from the Second Circuit Court of Appeals. On February 6, 2012, the Second Circuit Court of Appeals vacated the class certification order that was issued on November 6, 2009.  NLIC continues to defend this lawsuit vigorously.

On May 14, 2010, NLIC was named in a lawsuit filed in the Western District of New York entitled Sandra L. Meidenbauer, on behalf of herself and all others similarly situated v. Nationwide Life Insurance Company. The plaintiff claims to represent a class of all individuals who purchased a variable life insurance policy from NLIC during an unspecified period. The complaint claims breach of contract, alleging that NLIC charged excessive monthly deductions and costs of insurance resulting in reduced policy values and, in some cases, premature lapsing of policies. The complaint seeks reimbursement of excessive charges, costs, interest, attorney's fees, and other relief. NLIC filed a motion to dismiss the complaint on July 23, 2010. NLIC filed a motion to disqualify the proposed class representative on August 27, 2010. Plaintiff filed a motion to amend the complaint on September 17, 2010, and NLIC filed an opposition to the motion to amend on November 2, 2010. On October 13, 2011, plaintiff voluntarily dismissed the lawsuit without prejudice.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

On October 22, 2010, NRS was named in a lawsuit filed in the U.S. District Court, Middle District of Florida, Orlando Division entitled Camille McCullough, and Melanie Monroe, Individually and on behalf of all others similarly situated v. National Association of Counties, NACo Research Foundation, NACo Financial Services Corp., NACo Financial Center, and Nationwide Retirement Solutions, Inc.  The Plaintiffs’ First Amended Class Action Complaint and Demand for Jury Trial was filed on February 18, 2011. If the Court determines that the Plans at issue in this case are governed by ERISA, then pursuant to FED. R. CIV. P. 23, Plaintiffs seek certification of a class defined as: All natural persons in the United States who were employed at any point after October 29, 2004 by a government entity that is or was a member of the National Association of Counties, and who participate or participated in a Section 457 Deferred Compensation Plan administered by NRS under the National Association of Counties Deferred Compensation Program.  Alternatively, if the Court determines that the Plans are not governed by ERISA, then pursuant to FED. R. CIV. P. 23, Plaintiffs seek certification of a class defined as: All natural persons in the United States who are currently employed or previously were employed at any point after October 29, 2006, by a government entity that is or was a member of the National Association of Counties (NACo), and who participate or participated in a Section 457 Deferred Compensation Plan administered by NRS under the National Association of Counties Deferred Compensation Program. The First Amended Complaint alleges ERISA Violation, Breach of Fiduciary Duty - NACo, Aiding and Abetting Breach of Fiduciary Duty - NRS, Breach of Fiduciary Duty - NRS, and Aiding and Abetting Breach of Fiduciary Duty - NACo. The First Amended Complaint asks for actual damages, lost profits, lost opportunity costs, restitution, and/or other injunctive or other relief, including without limitation (a) ordering NRS and NACo to restore all plan losses, (b) ordering NRS to refund all fees associated with NRS’s Plan to Plaintiffs and Class members, (c) ordering NACo and NRS to pay the expenses and losses incurred by Plaintiffs and/or any Class member as a proximate result of Defendants’ breaches of fiduciary duty, (d) forcing NACo to forfeit the fees that NACo received from NRS for promoting and endorsing its Plan and disgorging all profits, benefits, and other compensation obtained by NACo from its wrongful conduct, and (e) awarding Plaintiff and Class members their reasonable and necessary attorney’s fees and cost incurred in connection with this suit, punitive damages, and pre-judgment and post judgment interest, at the highest rates allowed by law, on the damages awarded.  On March 21, 2011, NRS filed a motion to dismiss the plaintiffs' first amended complaint.  On July 1, 2011, the plaintiffs filed their motion for class certification and later sought to amend their complaint. On November 25, 2011 the District Court entered an Order granting NACO's motion to dismiss, NRS's motion to dismiss, denying plaintiffs' motion to file an amended complaint, that all other remaining pending motions are moot, dismissing the class-wide claims with prejudice, dismissing individual claims without prejudice, and ordering the Clerk to close this case. On December 27, 2011, the plaintiffs filed a notice of appeal. NRS intends to defend this case vigorously.

On December 27, 2006, NLIC and NRS were named as defendants in a lawsuit filed in Circuit Court, Cole County Missouri entitled State of Missouri, Office of Administration, and Missouri State Employees Deferred Comp Plan v NLIC and NRS.  The complaint seeks recovery for breach of contract and breach of the implied covenant of good faith and fair dealing against NLIC and NRS as well as a breach of fiduciary duty against NRS.  The complaint seeks to recover the amount of the market value adjustment withheld by NLIC ($19 million), prejudgment interest, loss of investment income from ING due to the Companies’ assessment of the market value adjustment.  On March 8, 2007 the Companies filed a motion to remove this case from state court to federal court in Missouri.  On March 20, 2007 the State filed a motion to remand to state court and to stay court order.  On April 3, 2007 the case was remanded to state court.  On June 25, 2007 the Companies filed an Answer.  On October 16, 2009, the plaintiff filed a partial motion for summary judgment.  On November 20, 2009, the Companies filed a response to the plaintiff's motion for summary judgment and also filed a motion for summary judgment on behalf of the Companies.  On February 26, 2010, the court denied Missouri's partial motion for summary judgment and granted the Companies’ motion for summary judgment and dismissed the case.  On March 8, 2011, the Missouri Court of Appeals reversed the granting of the Companies’ motion for summary judgment and directed the trial court to enter judgment in favor of the State and against the Companies’ in the amount of $19 million, plus statutory interest at the rate of 9% per annum from June 2, 2006. On March 22, 2011, the Companies filed with the Missouri Court of Appeals, a motion for rehearing and an application for transfer to the Supreme Court of Missouri. On May 3, 2011, the Missouri Court of Appeals for the Western District overruled the Companies motion for rehearing and denied the motion to transfer the case to the Missouri Supreme Court. On June 28, 2011, the Companies application to the Missouri Supreme Court to hear a further appeal was denied. On July 1, 2011, the Companies paid the amount of the judgment plus simple interest at 9%. On August 9, 2011, the plaintiffs filed a Satisfaction of Judgment.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

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.    On July 13, 2011, NMIC and NLIC filed a motion to dismiss the case.    Plaintiffs filed their opposition to NMIC and NLIC’s motion to dismiss on December 19, 2011.  By order dated January 18, 2012, the State Court issued an order dismissing the lawsuit.  The State Court issued its opinion on January 23, 2012.  Plaintiffs filed a Notice of Appeal to the Eighth District Court of Appeals on January 30, 2012.

Tax Matters

The Company’s federal income tax returns are routinely audited by the IRS. Management has established tax reserves as described in Note 2. Management believes its tax reserves reasonably provide for potential assessments that may result from IRS examinations and other tax-related matters for all open tax years.

In July 2009, the IRS completed an audit of the Company’s tax years 2003 to 2005 and issued a Revenue Agent’s Report (RAR) and 30-Day Letter.  The RAR challenged the Company’s dividends received deduction which the Company appealed based on the technical merits.  In 2011, the Company favorably settled this position through IRS Appeals and as a result recorded previously unrecognized tax benefits.

Indemnifications

In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions, divestitures and leases. The types of indemnifications typically provided include indemnifications for 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.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(18)       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:

(in millions)	2011	2010	2009
Premiums
Direct	$                   832	$                    808	$                    761
Assumed	-	5	12
Ceded	(301)	(329)	(303)
Net	$                   531	$                    484	$                    470
Life, accident and health insurance in force
Direct	$           209,732	$             208,920	$             208,485
Assumed	5	10	8
Ceded	(60,499)	(64,755)	(76,136)
Net	$           149,238	$             144,175	$             132,357

Total amounts recoverable under reinsurance contracts totaled $704 million, $739 million and $755 million as of December 31, 2011, 2010 and 2009, respectively.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

(19)       Segment Information

Management views the Company’s business primarily based on its underlying products and uses this basis to define its four reportable segments:  Individual Investments, Retirement Plans, Individual Protection, and Corporate and Other.

The primary segment profitability measure that management uses is 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 (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment, trading portfolio realized gains and losses, trading portfolio valuation changes, net realized gains and losses related to hedges on GMDB contracts and securitizations); (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 Investments

The Individual Investments 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 Investments 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 Protection

The Individual Protection segment consists of life insurance products, including individual variable, COLI and BOLI products; traditional life insurance products; and universal life insurance products.  Life insurance products provide a death benefit and generally allow the customer to build cash value on a tax-advantaged basis.

Corporate and Other

The Corporate and Other segment includes 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 certain living benefits; other-than-temporary impairment losses, and other revenues and expenses not allocated to other segments.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

The following tables summarize the Company’s business segment operating results for the years ended December 31:

	Individual	Retirement	Individual	Corporate
(in millions)	Investments	Plans	Protection	and Other	Total
2011
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	96	19	103	(142)	76
Amortization of VOBA and other intangible assets	1	-	12	(2)	11
Interest expense	-	-	-	70	70
Other operating expenses	182	158	181	88	609
Total benefits and expenses	$       1,129	$           618	$       1,159	$             22	$         2,928

Income (loss) before federal income taxes
and noncontrolling interests	$           354	$           193	$           300	$      (1,567)	$           (720)
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
	-	-	-	(156)
Less:  net loss attributable to noncontrolling interest	-	-	-	56
Pre-tax operating earnings (loss)	$           354	$           193	$           300	$           (54)
Assets as of year end	$     58,218	$     25,211	$     22,959	$       6,294	$    112,682

_________

1 Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment and net realized gains and losses related to hedges on GMDB contracts and securitizations).

2 Includes operating items discussed above.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

	Individual	Retirement	Individual	Corporate
(in millions)	Investments	Plans	Protection	and Other	Total
2010
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	231	30	184	(49)	396
Amortization of VOBA and other intangible assets	1	-	19	(2)	18
Interest expense	-	-	-	55	55
Other operating expenses	180	143	172	79	574
Total benefits and expenses	$         1,157	$            597	$         1,176	$            120	$         3,050
Income (loss) before federal income taxes
and noncontrolling interests	$            185	$            192	$            261	$          (434)	$            204
Less:  non-operating net realized investment losses1	-	-	-	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
	-	-	-	(59)
Less:  net loss attributable to noncontrolling interest	-	-	-	60
Pre-tax operating earnings (loss)	$            185	$            192	$            261	$            (36)
Assets as of year end	$       53,113	$       25,599	$       22,874	$         5,811	$     107,397

1 Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment and net realized gains and losses related to hedges on GMDB contracts and securitizations).

2 Includes operating items discussed above.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Notes to Consolidated Financial Statements, Continued

December 31, 2011, 2010 and 2009

	Individual	Retirement	Individual	Corporate
(in millions)	Investments	Plans	Protection	and Other	Total
2009
Revenues:
Policy charges	$            522	$              93	$            634	$              (4)	$         1,245
Premiums	191	-	279	-	470
Net investment income	562	679	492	146	1,879
Non-operating net realized investment gains1	-	-	-	619	619
Other-than-temporary impairment losses	-	-	-	(575)	(575)
Other revenues2	(168)	-	-	(1)	(169)
Total revenues	$         1,107	$            772	$         1,405	$            185	$         3,469
Benefits and expenses:
Interest credited to policyholder accounts	$            394	$            433	$            201	$              72	$         1,100
Benefits and claims	247	-	538	27	812
Policyholder dividends	-	-	87	-	87
Amortization of DAC	(1)	45	158	264	466
Amortization of VOBA and other intangible assets	1	9	45	8	63
Interest expense	-	-	-	55	55
Other operating expenses	178	149	184	68	579
Total benefits and expenses	$            819	$            636	$         1,213	$            494	$         3,162
Income (loss) before federal income taxes
and noncontrolling interests	$            288	$            136	$            192	$          (309)	$            307
Less:  non-operating net realized investment gains1	-	-	-	(619)
Less:  non-operating net other-than-temporary            impairment losses	-	-	-	575
Less:  adjustment to amortization of DAC and other            related to net realized investment gains and losses
	-	-	-	297
Less:  net loss attributable to noncontrolling interest	-	-	-	52
Pre-tax operating earnings (loss)	$            288	$            136	$            192	$              (4)
Assets as of year end	$       48,891	$       25,035	$       22,115	$         2,948	$       98,989

1 Excluding operating items (periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment and net realized gains and losses related to hedges on GMDB contracts and securitizations).

2 Includes operating items discussed above.

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, 2011 (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	$             506	$             630	$                 630
Obligations of states and political subdivisions	1,501	1,678	1,678
Debt securities issued by foreign governments	102	120	120
Public utilities	2,429	2,687	2,687
All other corporate	22,939	24,086	24,086
Total fixed maturity securities, available-for-sale	$        27,477	$       29,201	$           29,201
Equity securities, available-for-sale:
Common stocks:
Industrial, miscellaneous and all other	$                  6	$                  6	$                      6
Nonredeemable preferred stocks	13	14	14
Total equity securities, available-for-sale	$                19	$               20	$                   20
Trading assets	49	38	38
Mortgage loans, net of allowance	5,801		5,748
Policy loans	1,008		1,008
Other investments	528		528
Short-term investments	1,125		1,125
Total investments	$        36,007		$           37,668

__________

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), hedges and commitment hedges on mortgage loans.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule III                      Supplementary Insurance Information

As of December 31, 2011, 2010 and 2009 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	costs	loss expenses	premiums1	benefits payable1	revenue
2011
Individual Investments	$          2,709	$                    12,550			$            234
Retirement Plans	269	12,638			-
Individual Protection	1,877	9,338			297
Corporate and Other	(430)	726			-
Total	$          4,425	$                    35,252			$            531
2010
Individual Investments	$           2,126	$                      10,541			$              209
Retirement Plans	269	11,874			-
Individual Protection	1,795	9,163			275
Corporate and Other	(217)	1,098			-
Total	$           3,973	$                      32,676			$              484
2009
Individual Investments	$           1,911	$                      10,871			$              191
Retirement Plans	271	11,703			-
Individual Protection	1,770	8,745			279
Corporate and Other	31	1,831
Total	$           3,983	$                      33,150			$              470
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 costs	expenses2	written
2011
Individual Investments	$             527	$                         850	$                      96	$                    183
Retirement Plans	715	441	19	158
Individual Protection	533	863	103	193
Corporate and Other	69	8	(142)	156
Total	$          1,844	$                      2,162	$                      76	$                    690
2010
Individual Investments	$              569	$                           745	$                     231	$                     181
Retirement Plans	691	424	30	143
Individual Protection	510	801	184	191
Corporate and Other	55	37	(49)	132
Total	$           1,825	$                        2,007	$                     396	$                     647
2009
Individual Investments	$              562	$                           641	$                        (1)	$                     179
Retirement Plans	679	433	45	158
Individual Protection	492	826	158	229
Corporate and Other	146	99	264	131
Total	$           1,879	$                        1,999	$                     466	$                     697

________

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.

See accompanying notes to consolidated financial statements and report of independent registered public accounting firm.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule IV                      Reinsurance

As of December 31, 2011, 2010 and 2009 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
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%
2009
Life, accident and health
insurance in force	$        208,485	$        (76,136)	$                   8	$        132,357	-
Premiums:
Life insurance 1	$               549	$               (80)	$                   -	$               469	-
Accident and health insurance	212	(223)	12	1	NM
Total	$               761	$             (303)	$                 12	$               470	2.6%

__________

1 Primarily represents premiums from traditional life insurance and life-contingent immediate annuities and excludes deposits on investment and universal life insurance products.

NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES

(a wholly-owned subsidiary of Nationwide Financial Services, Inc.)

Schedule V                      Valuation and Qualifying Accounts

Years ended December 31, 2011, 2010, and 2009 (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
2011
Valuation allowances - mortgage loans	$                96	$                25	$                   -	$                61	$                60
2010
Valuation allowances - mortgage loans	$                 77	$                 66	$                    -	$                 47	$                 96
2009
Valuation allowances - mortgage loans	$                 42	$                 85	$                    -	$                 50	$                 77

__________

1 Amounts generally represent payoffs, sales and recoveries.

PART C. OTHER INFORMATION

Item 24.                 Financial Statements and Exhibits

                                 (a)   Financial Statements:

Nationwide Variable Account-4

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, 2011 , 2010 and

2009 .

Consolidated Balance Sheets as of December

31, 2011 and   2010 .

Consolidated Statements of Changes in

Equity as of December 31, 2011 , 2010 and 2009 .

Consolidated Statements of Cash Flows for

the years ended December 31, 2011 , 2010

and 2009 .

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. 3 on April 16, 2009 (File No. 333-140812) 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 30, 2007 (File No. 333-103093) as Exhibit 3 and hereby incorporated by reference.

(4) The form of the variable annuity contract - Filed with Initial Registration Statement on February 21, 2007 (File No. 333-140812) as Exhibit 4 and hereby incorporated by reference.

(5) Variable Annuity Application - Filed with Initial Registration Statement on February 21, 2007 (File No. 333-140812) as Exhibit 5 and hereby incorporated by reference.

(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) (a) The following Fund Participation Agreements were previously filed on July 17, 2007 with pre-effective amendment number 1 of registration statement (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, under document "amcentfpa99h2.htm".

(2)   Fund Participation Agreement with Fidelity Variable Insurance Products Fund, as amended, including Fidelity Variable Insurance Products Fund IV and Fidelity Variable Insurance Products Fund V, dated May 1, 1988, under document "fidifpa99h5.htm".

(3)   Fund Participation Agreement with Nationwide Variable Insurance Trust (formerly Gartmore Variable Insurance Trust) dated February 1, 2003, as amended, under document "nwfpa99h12a.htm".

(4)   Amended and Restated Fund Participation with Franklin Templeton Variable Insurance Products Trust and Franklin/Templeton Distributors, Inc., dated May 1, 2003, as amended, under document " frankfpa99h8.htm " .

(5)   Amended and Restated Fund Participation Agreement with MFS Variable Insurance Trust and Massachusetts Financial Services Company, dated February 1, 2003, as amended, under document " mfsfpa99h11.htm " .

(6)   Fund Participation Agreement with The Universal Institutional Funds, Inc., Morgan Stanley & Co. Incorporated, and Morgan Stanley Investment Management, Inc., dated February 1, 2002, as amended, under document " univfpa99h16.htm " .

(b) The following Fund Participation Agreements were previously filed on September 27, 2007 with pre-effective amendment number 3 of registration statement (333-137202) under Exhibit 26(h), and are hereby incorporated by reference.

(7)   Fund Participation Agreement (Amended and Restated) with Alliance Capital Management L.P. and Alliance-Bernstein Investment Research and Management, Inc., dated June 1, 2003, under document " alliancebernsteinfpa.htm ".

(8)    Fund Participation Agreement with BlackRock (formerly FAM Distributors, Inc. and FAM Variable Series Funds, Inc.), dated April 13, 2004, as amended, under document " blackrockfpa.htm " .

(9)   Fund Participation Agreement with Waddell & Reed Services Company and Waddell & Reed, Inc., dated December 1, 2000, under document " waddellreedfpa.htm " .

(10)   Fund Participation Agreement with PIMCO Variable Insurance Trust and PIMCO Funds Distributors, LLC, dated March 28, 2002, as amended, under document " pimcofpa.htm " .

(11)   Fund Participation Agreement with Pioneer Variable Contracts Trust, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc., dated September 27, 2002, as amended, under document " pioneerfpa.htm " .

(12)   Fund Participation Agreement with Van Eck Investment Trust, Van Eck Associates Corporation, and Van Eck Securities Corporation, dated September 1, 1989, as amended, under document " vaneckfpa.htm " .

(c) The following Fund Participation Agreements was previously filed on April 18, 2008 with pre-effective amendment number 20 of registration statement (333-62692) under Exhibit 24(b), and is hereby incorporated by reference.

(13)   Fund Participation Agreement with Rydex Variable Trust & Rydex Distributors, Inc. dated September 10, 2001 under document "rydexfundpartagreement.htm".

(d) The following Fund Participation Agreements were previously filed on April 22, 2008 with post-effective amendment number 21 of registration statement (033-60063) under Exhibit 26(h), and are hereby incorporated by reference.

(14)   Participation Agreement with Credit Suisse Asset Management, LLC, and Provident Distributors, Inc., dated January 3, 2000, under document " creditsuissefpa.htm " .

(e) The following Fund Participation Agreements were previously filed on April 19, 2011 with post-effective amendment number 26 of registration statement (333-62692) under Exhibit 26(h), and are hereby incorporated by reference.

(15)   Fund Participation Agreement with ProFunds Distributors, Inc., dated January 10, 2010, under document " profundfpa.htm " .

(f)        The following Fund Participation Agreement is attached hereto:

(16) Fund Participation Agreement with Rafferty Asset Management, LLC, dated February 9, 2012, as document "direxionfpa.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 prospectus.

(9) Opinion of Counsel - Filed with Initial Registration Statement on February 21, 2007 (File No. 333-140812) as Exhibit 5, 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	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	The company is an independent agency personal lines underwriter of property and casualty insurance.
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

The number of contract owners of Qualified and Non-Qualified Contracts as of February 1, 2012 was 37 and 258.

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-C
Multi-Flex Variable Account	Nationwide VA Separate Account-D
Nationwide Variable Account	Nationwide VLI Separate Account
Nationwide Variable Account-II	Nationwide VLI Separate Account-2
Nationwide Variable Account-3	Nationwide VLI Separate Account-3
Nationwide Variable Account-4	Nationwide VLI Separate Account-4
Nationwide Variable Account-5	Nationwide VLI Separate Account-5
Nationwide Variable Account-6	Nationwide VLI Separate Account-6
Nationwide Variable Account-7	Nationwide VLI Separate Account-7
Nationwide Variable Account-8	Nationwide VL Separate Account-A
Nationwide Variable Account-9	Nationwide VL Separate Account-C
Nationwide Variable Account-10	Nationwide VL Separate Account-D
Nationwide Variable Account-11	Nationwide VL Separate Account-G
Nationwide Variable Account-12	Nationwide Provident VA Separate Account 1
Nationwide Variable Account-13	Nationwide Provident VA Separate Account A
Nationwide Variable Account-14	Nationwide Provident VLI Separate Account 1
Nationwide VA Separate Account-A	Nationwide Provident VLI Separate Account A
Nationwide VA Separate Account-B

(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 postcard or similar written communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and

(c) deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.

The Registrant represents that any contracts which are issued pursuant to Section 403(b) of the Internal Revenue Code are issued by Nationwide through the Registrant in reliance upon, and in compliance with, a no-action letter issued by the Staff of the Securities and Exchange Commission to the American Council of Life Insurance (publicly available November 28, 1988) permitting withdrawal restrictions to the extent necessary to comply with Section 403(b)(11) of the Internal Revenue Code.

Nationwide 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-4, certifies that it meets the requirements of the Securities Act Rule 485(b) for effectiveness of the Registration Statement and has caused this Registration Statement to be signed on its behalf in the City of Columbus, and State of Ohio, on this 20 th day of April, 2012 .

NATIONWIDE VARIABLE ACCOUNT- 4

(Registrant)

NATIONWIDE LIFE INSURANCE COMPANY

(Depositor)

By /s/ TIMOTHY D. CRAWFORD

Timothy D. Crawford

Attorney-in-Fact

As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on the 20 th   day of April, 201 2 .

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
STEPHEN S. RASMUSSEN
Stephen S. Rasmussen, Director
	By /s/ TIMOTHY D. CRAWFORD
	Timothy D. Crawford
	Attorney-in-Fact