EXHIBIT 99.1
NATIONWIDE LIFE INSURANCE COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF AS OF
SEPTEMBER 30, DECEMBER 31,
(IN U.S.$ MILLIONS) 2002 2001
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(UNAUDITED)
ASSETS
Invested assets .............................. $ 32,572.4 $ 27,477.3
Deferred policy acquisition costs ............ 2,909.5 3,189.0
Other assets ................................. 1,405.8 975.3
Assets held in separate accounts ............. 46,399.7 59,513.0
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$ 83,287.4 $ 91,154.6
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LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits and claims ............ $ 29,481.3 $ 25,216.0
Short-term debt .............................. 60.0 100.0
Long-term debt with related party ............ 600.0 300.0
Other liabilities ............................ 3,227.0 2,307.9
Liabilities related to separate accounts ..... 46,399.7 59,513.0
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79,768.0 87,436.9
Shareholder's equity ......................... 3,519.4 3,717.7
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$ 83,287.4 $ 91,154.6
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1
NATIONWIDE LIFE INSURANCE COMPANY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------- -------------------------
(IN U.S.$ MILLIONS) 2002 2001 2002 2001
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REVENUES
Policy charges ....................................... $ 234.7 $ 243.9 $ 746.0 $ 768.0
Life insurance premiums .............................. 64.5 59.4 189.2 189.8
Net investment income ................................ 465.2 434.9 1,351.4 1,286.6
Net realized (losses) gains on investments, hedging
instruments and hedged items:
Unrelated parties ............................... (41.1) (7.7) (86.6) (9.5)
Related party ................................... 23.2 44.4 23.2 44.4
Other ................................................ 0.5 1.9 4.5 7.8
-------- -------- ---------- ----------
747.0 776.8 2,227.7 2,287.1
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BENEFITS AND EXPENSES
Interest credited to policyholder account values ..... 321.3 314.8 917.1 923.9
Other benefits and claims ............................ 77.6 66.8 228.2 209.0
Policyholder dividends on participating policies ..... 11.6 9.5 33.5 31.1
Amortization of deferred policy acquisition costs .... 430.4 85.2 598.2 265.2
Interest expense on debt, primarily with related
party .............................................. 12.0 0.8 23.7 4.7
Other operating expenses ............................. 120.6 108.6 385.7 323.5
-------- -------- ---------- ----------
973.5 585.7 2,186.4 1,757.4
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(Loss) income from continuing operations before
federal income tax expense and cumulative effect of
adoption of accounting principles ................. (226.5) 191.1 41.3 529.7
Federal income tax (benefit) expense ................. (91.3) 53.1 (23.3) 142.0
-------- -------- ---------- ----------
(Loss) income from continuing operations before
cumulative effect of adoption of accounting
principles ........................................ (135.2) 138.0 64.6 387.7
Income from discontinued operations, net of tax ...... -- 0.6 0.7 1.1
Cumulative effect of adoption of accounting
principles, net of tax ............................ -- -- -- (7.1)
-------- -------- ---------- ----------
Net (loss) income ............................... $ (135.2) $ 138.6 $ 65.3 $ 381.7
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