Investment choices performance report December 31, 2016

America’s marketFLEX® Variable Universal Life

Invest in your future

Answers to frequently asked questions. What you should know about purchasing variable life insurance

What is variable life insurance?

Why should I consider variable life?

Variable life insurance, like other types of life insurance,helps you protect your family’s future by providing a payment — known as the death benefit — to your beneficiary in the event of your death. What makes variable life insurance different from other types of life insurance is that it allows you to choose from a wide variety of professionally managed investment choices that may help your policy’s value grow.

Variable life insurance offers tax-advantaged features such as:

What kind of investments can I choose from? With choices like equity, bond and money market funds, you can create a portfolio designed to meet your investment goals based on how much risk you’re willing to take. Please keep in mind that because these investment choices are subject to market fluctuation, investment risk and possible loss of principal, your policy’s value will vary depending on how they perform. Investment choices within a variable life insurance policy are not publicly traded mutual funds and are only available for purchase in variable products. Fees in investment choices cover the fund manager’s services and the costs of the underlying investments.

Income tax-free death benefit If you set up your policy properly, the death benefit paid to your beneficiary may be excluded from your taxable estate.

Certain charges — like the cost of insurance, which varies with your sex, health and age, and additional charges for any riders you choose to customize your policy — are deducted from the premium and cash value to pay for the policy. Different policies have different costs, so you should consider these costs before deciding which policy to buy.

How can I customize my policy?

Tax-advantaged access to your money When your variable life insurance policy grows in value, the earnings are tax deferred. And, you can borrow from the cash value of your policy through loans and partial surrenders without incurring income taxes.

How does it work? First, you’ll choose the amount of insurance — how needs may change over time, so be sure to choose an insurance policy that can meet your long-term goals. Based on the amount of insurance, you’ll pay a premium into the policy. It’s important to pay enough premiums into your policy to keep it from lapsing. And, because your policy’s value is based on market performance, you may need to pay extra premiums to keep your policy from lapsing in a volatile market.

Life insurance policies offer optional features, known as riders or endorsements, that can help make the policy fit your individual needs. Not all riders are available in all states, and some carry an additional cost based on your sex, health and age, the value in your policy and/or the amount of the rider being added.

Points to remember: The tax advantages mentioned here assume that the life insurance policy qualifies as life insurance under section 7702 of the Internal Revenue Code and is not a modified endowment contract (MEC) under section 7702A. Most distributions are taxed on a first-in/first-out basis as long as the contract meets non-MEC definitions in section 7702A. Nationwide and its representatives do not give legal or tax advice. Please contact your attorney or tax advisor with any legal or tax questions.

Investment choices performance report It’s natural to want to know how your investments are doing over time A variable life insurance policy provides access to a wide range of professionally managed investment choices within the contract. These choices range from equity investments to bond funds and money market funds, enabling you to create a portfolio designed to meet your investment objectives. The value of an investment in a variable life policy will vary depending on the performance of the investment choices you select. Investment choices are subject to market fluctuation, investment risk and possible loss of principal. The performance results shown include fund-level fees and expenses and the reinvestment of dividends and distributions. Results do not include any policy fees or expenses, which include premium loads, cost of insurance, policy administrative charges, mortality and expense risk charges, surrender charges, the cost of optional riders or any other charges applied to this policy. If these charges were included, performance results would be significantly lower.

Policy fees and expenses vary by product and some will vary by factors such as the insured’s age, gender, smoking status, policy specified amount and underwriting class. Refer to the prospectus for complete details about policy fees and charges. A personalized illustration, with a hypothetical rate of return, will show the effects of policy fees and expenses. Ask your investment professional for one today.

Helpful terms Asset allocation: The mixture of asset classes an investor chooses based on his or her time horizon and risk tolerance. Markets are volatile and can decline in response to adverse developments. The use of asset allocation does not guarantee returns or protect you from potential losses. Asset class: A group of investments with similar characteristics, such as stocks, bonds or cash. Closed fund: A fund that is no longer accepting contributions from investors. Current yield: A measure of the return an investor might expect if he or she purchased an investment and held it for one year. Inception date: The date the fund first became available to investors. Separate account: An investment pool funded by contributions to variable contracts including variable annuities and variable life insurance. These assets are kept separate from the Nationwide® general account. Short-term trading fees: Fees designed to offset the costs associated with short-term trading and to protect the long-term interests of all shareholders. Walled-off fund: A fund that is not open to new investors, but is still accepting contributions from existing investors. Variable products are sold by prospectus. Carefully consider the investment objectives, risks, charges and expenses. The product and underlying fund prospectuses contain this and other important information. Investors should read them carefully before investing. To request a copy, go to nationwide.com or call 1800-848-6331.

Non-standardized performance: Without surrender charges (CDSC) applied The figures shown are calculated based on a one-time investment of $10,000 and reflect the deduction of all applicable charges, except for surrender charges (CDSC). These returns are measured from the inception date of the fund and may predate the offering of the fund in the Nationwide® separate account. Where this occurs, the performance is hypothetical in that it depicts how the underlying investment options would have performed had it been available in the Nationwide separate account during the time period. Year-to-date returns are shown only for underlying investment options incepted on or before December 31 of the previous year. The results shown represent past performance and do not represent expected future performance or experience. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted. To obtain performance data current to the most recent month-end or for closed and walled-off underlying investment options, please call 1-800848-6331 or visit nationwide.com.

America’s marketFLEX® Variable Universal Life Total Returns Periods Less Than 1 Year

Investment Choices Underlying Investment Option Large cap stocks: Large-cap blend NVIT Nationwide Fund - Class I Rydex VT Dow 2x Strategy Fund10

Rydex VT Nova Fund10 Rydex VT S&P 500 2x Strategy Fund5,10 Large cap stocks: Large-cap growth American Century VP Ultra® Fund - Class I Fidelity VIP Growth Portfolio - Service Class 2 Rydex VT NASDAQ-100® 2x Strategy Fund10 Rydex VT NASDAQ-100® Fund Rydex VT S&P 500 Pure Growth Fund Large cap stocks: Large-cap value American Century VP Income & Growth Fund - Class I American Century VP Value Fund - Class I Fidelity VIP Equity-Income Portfolio - Service Class 2 Rydex VT S&P 500 Pure Value Fund3 Mid cap stocks: Mid-cap blend Rydex VT Mid-Cap 1.5x Strategy Fund3,10 Mid cap stocks: Mid-cap growth Rydex VT S&P MidCap 400 Pure Growth Fund3 Small cap stocks: Small-cap blend Rydex VT Russell 2000® 1.5x Strategy Fund3,10

Average Annual Total Returns as of 12/31/16

Inception Date

Month

YTD

One Year

Three Years

Five Years

10 Years or Since Inception

11/08/1982 05/03/2004 05/07/1997 10/01/2001

2.32% 6.72% 2.79% 3.66%

11.39% 30.72% 15.72% 20.40%

11.39% 30.72% 15.72% 20.40%

8.03% 13.51% 10.86% 13.86%

13.55% 22.75% 19.93% 26.36%

5.55% 7.94% 6.26% 6.23%

05/01/2001 10/09/1986 10/01/2001 05/07/1997 05/03/2004

0.78% 0.65% 1.95% 1.01% 0.14%

4.45% 0.55% 9.60% 5.98% 2.58%

4.45% 0.55% 9.60% 5.98% 2.58%

6.88% 6.07% 19.71% 10.45% 5.24%

13.78% 13.17% 32.91% 16.19% 13.29%

7.86% 6.98% 15.74% 10.31% 7.93%

10/30/1997 05/01/1996 10/09/1986 05/03/2004

1.36% 2.06% 2.05% 1.47%

13.48% 20.48% 17.71% 17.40%

13.48% 20.48% 17.71% 17.40%

6.41% 9.40% 6.93% 5.68%

13.43% 14.60% 12.84% 15.95%

5.49% 6.55% 4.76% 6.02%

10/01/2001

3.08%

29.64%

29.64%

11.10%

20.70%

8.79%

05/03/2004

1.75%

2.70%

2.70%

0.81%

9.77%

8.59%

10/01/2001

3.98%

30.41%

30.41%

7.34%

19.08%

5.77%

America’s marketFLEX® Variable Universal Life Total Returns Periods Less Than 1 Year

Investment Choices

Average Annual Total Returns as of 12/31/16

Inception Date

Month

YTD

One Year

Three Years

Five Years

10 Years or Since Inception

10/23/1995 05/03/2004

2.67% 3.49%

22.83% 18.69%

22.83% 18.69%

6.80% 5.75%

14.67% 13.07%

7.15% 7.75%

05/03/2004 05/03/2004

0.78% 2.66%

28.89% 31.74%

28.89% 31.74%

6.63% 4.89%

14.01% 14.69%

5.99% 5.08%

10/01/2001

6.43%

-5.58%

-5.58%

-8.47%

2.94%

-4.89%

10/01/2001

0.09%

8.86%

8.86%

1.03%

14.08%

1.58%

10/31/1997

1.76%

14.16%

14.16%

4.47%

6.94%

5.94%

11/08/1982

-0.15%

0.74%

0.74%

1.71%

0.80%

3.32%

08/18/1997

-0.07%

-0.34%

-0.34%

8.40%

1.41%

6.16%

09/30/2005

1.67%

7.00%

7.00%

14.24%

6.28%

-0.19%

11/10/1981

0.00%

0.00%

0.00%

0.00%

0.00%

0.60%

05/03/2004 05/01/2003 05/03/2004 05/21/2001 05/03/2004 06/09/1997

-6.68% -0.17% -2.21% -1.26% -2.92% -1.99%

-29.65% -2.94% -19.13% -9.48% -20.28% -12.01%

-29.65% -2.94% -19.13% -9.48% -20.28% -12.01%

-20.30% -10.37% -10.91% -13.74% -10.07% -10.40%

-26.11% -4.89% -16.00% -18.01% -16.26% -15.19%

-21.34% -9.33% -13.05% -14.60% -13.20% -10.30%

Specialty: Commodities Rydex VT Commodities Strategy Fund5,12

09/30/2005

4.87%

10.40%

10.40%

-21.58%

-14.38%

-10.07%

Specialty: Currency Rydex VT Weakening Dollar 2x Strategy Fund5,10

09/30/2005

-2.00%

-8.71%

-8.71%

-15.99%

-10.30%

-5.25%

Underlying Investment Option Small cap stocks: Small-cap growth NVIT Multi-Manager Small Company Fund - Class I3

Rydex VT S&P SmallCap 600 Pure Growth Fund

3

Small cap stocks: Small-cap value Rydex VT S&P MidCap 400 Pure Value Fund3

Rydex VT S&P SmallCap 600 Pure Value Fund International stocks: Europe stock Rydex VT Europe 1.25x Strategy Fund2,5,10 International stocks: Japan stock Rydex VT Japan 2x Strategy Fund2,5,10 Bonds: High yield bond Federated NVIT High Income Bond Fund - Class I4,9 Bonds: Intermediate government bond NVIT Government Bond Fund - Class I6,9 Bonds: Long government bond Rydex VT Government Long Bond 1.2x Strategy Fund6,9,10 Bonds: World bond Rydex VT Strengthening Dollar 2x Strategy Fund2,9,10 Cash: Cash NVIT Money Market Fund - Class II   7-day current yield:  0.00%*1,6 Specialty: Bear market Rydex VT Inverse Dow 2x Strategy Fund5,10 Rydex VT Inverse Government Long Bond Strategy Fund5,6,9,10 Rydex VT Inverse Mid-Cap Strategy Fund3,5,10 Rydex VT Inverse NASDAQ-100® Strategy Fund5,10 Rydex VT Inverse Russell 2000® Strategy Fund3,5,10 Rydex VT Inverse S&P 500 Strategy Fund5,10 3

*Current yield more closely reflects current money market fund earnings than the total return calculation.

America’s marketFLEX® Variable Universal Life Total Returns Periods Less Than 1 Year

Investment Choices Underlying Investment Option Specialty: Equity sector Rydex VT Banking Fund5

Rydex VT Biotechnology Fund Rydex VT Consumer Products Fund5 Rydex VT Electronics Fund5 Rydex VT Energy Fund5,12 Rydex VT Energy Services Fund5,12 Rydex VT Financial Services Fund5 Rydex VT Health Care Fund5 Rydex VT Internet Fund5 Rydex VT Leisure Fund5 Rydex VT Precious Metals Fund5,12 Rydex VT Retailing Fund5 Rydex VT Technology Fund5 Rydex VT Telecommunications Fund5 Rydex VT Utilities Fund5 Specialty: Long/short equity Guggenheim VF Long Short Equity Fund3,10,13 Specialty: Multialternative Guggenheim VF Multi-Hedge Strategies3,5,13 Specialty: Natural resources Rydex VT Basic Materials Fund5,12 Specialty: Real estate Rydex VT Real Estate Fund5,7 Specialty: Specialty Rydex VT Transportation Fund5 Asset allocation: Aggressive allocation NVIT Investor Destinations Aggressive Fund - Class II8,11 NVIT Investor Destinations Moderately Aggressive Fund - Class II8,11 Asset allocation: Conservative allocation NVIT Investor Destinations Conservative Fund - Class II8,11 NVIT Investor Destinations Moderately Conservative Fund - Class II8,11 Asset allocation: Moderate allocation NVIT Investor Destinations Moderate Fund - Class II8,11 5

Average Annual Total Returns as of 12/31/16

Inception Date

Month

YTD

One Year

Three Years

Five Years

10 Years or Since Inception

05/02/2001 05/02/2001 05/29/2001 08/03/2001 05/29/2001 05/02/2001 07/20/2001 06/19/2001 05/24/2001 05/22/2001 05/29/1997 07/23/2001 05/02/2001 07/27/2001 05/02/2001

5.19% -3.79% 3.10% 2.01% 0.46% 3.78% 3.77% -0.32% -1.20% 0.60% -1.13% -2.50% -0.03% 2.74% 4.04%

27.25% -19.66% 5.42% 24.34% 31.37% 23.15% 15.83% -9.70% 4.44% 9.56% 65.52% 0.30% 11.07% 17.40% 16.34%

27.25% -19.66% 5.42% 24.34% 31.37% 23.15% 15.83% -9.70% 4.44% 9.56% 65.52% 0.30% 11.07% 17.40% 16.34%

7.78% 4.96% 8.04% 16.25% -9.31% -15.92% 7.78% 5.56% 4.89% 5.71% -1.61% 2.45% 7.38% 3.96% 9.82%

14.98% 19.38% 12.02% 16.48% -1.16% -5.86% 14.40% 14.34% 15.80% 15.34% -13.21% 11.26% 13.43% 6.72% 8.76%

-3.07% 12.46% 9.08% 5.07% 0.51% -2.23% -0.38% 8.05% 8.38% 6.34% -5.55% 6.62% 6.00% 0.42% 5.52%

05/01/2002

1.12%

0.65%

0.65%

1.57%

5.15%

2.15%

11/29/2005

0.63%

-0.48%

-0.48%

1.99%

1.97%

-0.12%

05/02/2001

-0.91%

30.86%

30.86%

2.05%

3.56%

3.67%

10/01/2001

4.08%

10.15%

10.15%

9.12%

9.83%

1.90%

06/11/2001

1.78%

15.43%

15.43%

6.79%

16.62%

6.66%

12/12/2001 12/12/2001

2.14% 1.91%

9.47% 8.48%

9.47% 8.48%

4.40% 4.17%

10.91% 9.49%

4.63% 4.64%

12/12/2001 12/12/2001

0.61% 1.02%

4.26% 5.70%

4.26% 5.70%

2.79% 3.44%

3.67% 5.73%

3.50% 4.19%

12/12/2001

1.46%

7.14%

7.14%

3.95%

7.74%

4.52%

Non-standardized performance: Without surrender charges (CDSC) applied The figures shown are calculated based on a one-time investment of $10,000 and reflect the deduction of all applicable charges, except for surrender charges (CDSC). These returns are measured from the inception date of the fund and may predate the offering of the fund in the Nationwide® separate account. Where this occurs, the performance is hypothetical in that it depicts how the underlying investment options would have performed had it been available in the Nationwide separate account during the time period. Year-to-date returns are shown only for underlying investment options incepted on or before December 31 of the previous year. The results shown represent past performance and do not represent expected future performance or experience. Past performance does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted. To obtain performance data current to the most recent month-end or for closed and walled-off underlying investment options, please call 1-800848-6331 or visit nationwide.com.

Walled-off and closed underlying investment options America’s marketFLEX® Variable Universal Life Total Returns Periods Less Than 1 Year

Investment Choices Underlying Investment Option Large cap stocks: Large-cap blend NVIT Nationwide Fund - Class II Large cap stocks: Large-cap growth American Century VP Ultra® Fund - Class II

Fidelity VIP Contrafund® Portfolio - Service Class 2 Large cap stocks: Large-cap value American Century VP Income & Growth Fund - Class II American Century VP Value Fund - Class II Mid cap stocks: Mid-cap growth NVIT Multi-Manager Mid Cap Growth Fund - Class I3 Small cap stocks: Small-cap growth NVIT Multi-Manager Small Cap Growth Fund - Class I3 NVIT Multi-Manager Small Cap Growth Fund - Class II3 NVIT Multi-Manager Small Company Fund - Class II3 Small cap stocks: Small-cap value NVIT Multi-Manager Small Cap Value Fund - Class I3 NVIT Multi-Manager Small Cap Value Fund - Class II3

Average Annual Total Returns as of 12/31/16

Status

Inception Date

Month

YTD

One Year

Three Years

Five Years

10 Years or Since Inception

Closed

11/08/1982

2.27%

11.16%

11.16%

7.75%

13.25%

5.29%

Closed Walled Off

05/01/2002 01/03/1995

0.73% 1.69%

4.35% 7.73%

4.35% 7.73%

6.72% 6.50%

13.62% 12.93%

7.69% 6.64%

Closed Closed

05/01/2002 08/14/2001

1.30% 2.01%

13.20% 20.28%

13.20% 20.28%

6.15% 9.23%

13.15% 14.45%

5.21% 6.39%

Closed

03/24/2008

0.10%

6.47%

6.47%

3.40%

12.03%

6.92%

Walled Off Closed Closed

05/03/1999 05/03/1999 10/23/1995

-0.19% -0.20% 2.64%

8.30% 8.06% 22.54%

8.30% 8.06% 22.54%

3.91% 3.66% 6.53%

12.93% 12.64% 14.38%

5.55% 5.29% 6.89%

Walled Off Closed

10/31/1997 11/03/1997

3.77% 3.74%

25.93% 25.61%

25.93% 25.61%

8.20% 7.92%

16.45% 16.18%

7.46% 7.18%

Understanding Risks Here's a list of some of the risks associated with the variable annuity underlying investment choices. For specific risks related to each investment, see the prospectus. 1.

Money market funds: These funds are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although they seek to preserve the value of your investment at $1.00 per share, it's possible to lose money by investing in money market funds.

2.

International/emerging markets funds: Funds that invest internationally involve risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information.

3.

Small-/Mid-cap funds: Funds investing in stocks of small-cap, mid-cap or emerging companies may have less liquidity than those investing in larger, established companies and may be subject to greater price volatility and risk than the overall stock market.

4.

High-yield funds: Funds that invest in high-yield securities are subject to greater credit risk, liquidity risk, and price fluctuations than funds that invest in higher-quality securities. The prices of high-yield bonds tend to be more sensitive to adverse economic and business conditions than are higher-rated corporate bonds. Increased volatility may reduce the market value of highyield bonds. They are also subject to the claims-paying ability of the issuing company.

5.

Nondiversified funds: Funds that invest in a concentrated sector or focus on a relatively small number of securities may be subject to greater volatility than a more diversified investment.

6.

Government funds: While the funds invest primarily in the securities of the U.S. government and its agencies, the values are not guaranteed by these entities.

7.

Real estate funds: Funds that focus on real estate investing are sensitive to economic and business cycles, changing demographic patterns and government actions.

8.

Fund-of-funds: Designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the portfolio, you are indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.

9.

Bond funds: These funds have the same interest rate, inflation and credit risks associated with the underlying bonds owned by the fund. Interest rate risk is the possibility of a change in the value of a bond due to changing interest rates. Inflation risk arises from the decline in value of cash flows due to loss of purchasing power. Credit risk is the potential loss on an investment based on the bond issuer's failure to repay on the amount borrowed.

10. May include increased volatility due to the use of options or futures. Leveraged exposure can result in accelerated losses as well as accelerated gains, depending on how the market moves. Funds dedicated to Inverse and Leveraged strategies include increased risk compared to funds that do not use these strategies and are not meant to be long term buy and hold strategies. 11. Asset allocation funds: These funds may invest across multiple asset classes including, but not limited to, domestic and foreign stocks, bonds, and cash. The use of diversification and asset allocation as a part of an overall investment strategy does not assure a profit or protect against loss in declining market. 12. Commodities/Natural resources: Specific uncertainties associated with commodities and natural resources investing include changes in supply-and-demand relationships due to environmental, economic and political factors, which may cause increased volatility and decreased liquidity. 13. May provide less common return patterns than traditional equity or fixed income. These funds incorporate investment strategies that may increase or decrease volatility due to the fund's use of options or futures. Leveraged exposure can result in accelerated losses as well as accelerated gains, depending on how the market moves.

Contract/Policy numbers All state variations of: VLO-0721 In OK: VLO-0721-36

Finding solutions that fit Your investment professional is a personal resource with the knowledge and commitment to help you determine how to best meet your investment and life insurance needs. Working with him or her, you can learn more about how Nationwide’s many products can help you achieve your financial goals. For more information, visit nationwide.com.

• Not a deposit • Not FDIC or NCUSIF insured • Not guaranteed by the institution • Not insured by any federal government agency • May lose value Issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA. Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is not affiliated with any subadviser contracted by Nationwide Fund Advisors (NFA), with the exception of Nationwide Asset Management, LLC (NWAM). For the specific contract number, please refer to the variable annuity investment choices performance report inside. Nationwide, Nationwide is on your side and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. America’s marketFLEX is a service mark of Nationwide Life Insurance Company. © 2016 Nationwide Mutual Insurance Company FS-1450-1216