lnc-20220202x8k

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	Lincoln Financial Group
	Table of Contents


	Notes	1
	Credit Ratings	2
	Consolidated
	Consolidated Statements of Income (Loss)	3
	Consolidated Balance Sheets	4
	Earnings, Shares and Return on Equity	5
	Key Stakeholder Metrics	6
	Segment and Sources of Earnings	7
	Select Earnings Drivers By Segment	8
	Sales By Segment	9
	Operating Revenues and General and Administrative Expenses By Segment	10
	Operating Commissions and Other Expenses	11
	Interest Rate Yields and Spreads By Segment	12
	Select Earnings and Operational Data from Business Segments
	Annuities	13
	Retirement Plan Services	14
	Life Insurance	15
	Group Protection	16
	Other Operations	17
	DAC & Account Value Rollforwards
	Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
	Account Value Roll Forwards:
	Annuities	19
	Retirement Plan Services	20
	Life Insurance	21
	Other Information
	Select Investment Data	22
	Realized Gain (Loss), After-DAC	23
	Select GAAP to Non-GAAP Reconciliations	24

Lincoln Financial Group

Notes

Computations

• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.

• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.

• We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation. In addition, for any period where a net loss or adjusted loss from operations is experienced,

shares used in the diluted EPS calculation represent basic shares, as the use of diluted shares would result in a lower loss per share.

• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. ROE is calculated by dividing annualized net income (loss) (or adjusted income (loss)

from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”). Management evaluates consolidated ROE by both including and excluding the effect

of average goodwill.

• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding. We provide book value per share, excluding AOCI, to enable

investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share excluding AOCI is useful to investors because

it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.

• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.

Definitions

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial

paper outstanding.

Sales as reported consist of the following:

• Annuities and Retirement Plan Services – deposits from new and existing customers;

• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

• MoneyGuard® linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM (VUL), 150% of commissionable premiums;

• Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of

single premium deposits;

• Term – 100% of annualized first-year premiums; and

• Group Protection – annualized first-year premiums from new policies.

Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)

and deferred front-end loads (“DFEL”) and changes in other contract holder funds.

Sources of earnings are defined as follows:

• Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related

expenses.

• Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level

of insurance in force.

• Fees on assets under management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.

• Variable annuity (“VA”) riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in

benefit reserves and related expenses.

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Realized gains and losses associated with the following (“excluded realized gain (loss)”):

▪ Sales or disposals and impairments of financial assets;

▪ Changes in the fair value of equity securities;

▪ Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

▪ Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities;

▪ Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;

▪ Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to

future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting options”);

• Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);

• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

• Gains (losses) on modification or early extinguishment of debt;

• Losses from the impairment of intangible assets;

• Income (loss) from discontinued operations;

• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of business or blocks of business; and

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

• Excluded realized gain (loss);

• Revenue adjustments from the initial adoption of new accounting standards;

• Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Management believes that the non-GAAP performance measures previously discussed explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying

trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many

instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. In addition, we believe that our definitions of adjusted operating revenues and adjusted

income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

First and second quarter 2021 interest rate spreads for the Annuities segment have been restated to conform to the current presentation.

Statistical Supplement is Dated

The financial data in this document is dated February 2, 2022, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

Page 1b

Lincoln Financial Group

Credit Ratings

Ratings as of February 2, 2022

Standard

A.M Best

Fitch

Moody's

& Poor's

Senior Debt Ratings

BBB+

Baa1

A-

Financial Strength Ratings

The Lincoln National Life Insurance Company

A+

AA-

First Penn-Pacific Life Insurance Company

A+

A-

Lincoln Life & Annuity Company of New York

A+

AA-

Investor Inquiries May Be Directed To:

Albert Copersino, Vice President, Investor Relations

Email: [email protected]

Phone: 203-257-4493

Page 2


Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Revenues
Insurance premiums	$	1,364	$	1,406	$	1,398	$	1,394	$	1,420	4.1%	$	5,372	$	5,617	4.6%
Fee income		1,559		1,592		1,670		1,996		1,628	4.4%		6,371		6,887	8.1%
Net investment income		1,505		1,510		1,584		1,576		1,445	-4.0%		5,510		6,115	11.0%
Realized gain (loss)		(470)		(181)		(2)		85		(115)	75.5%		(513)		(212)	58.7%
Amortization of deferred gain on business
sold through reinsurance		9		9		9		9		19	111.1%		41		46	12.2%
Other revenues		168		198		192		181		207	23.2%		658		777	18.1%
Total revenues		4,135		4,534		4,851		5,241		4,604	11.3%		17,439		19,230	10.3%

Expenses
Interest credited		734		737		737		750		692	-5.7%		2,923		2,915	-0.3%
Benefits		1,966		2,226		1,930		2,122		2,251	14.5%		8,677		8,529	-1.7%
Commissions and other expenses		1,258		1,231		1,326		1,906		1,328	5.6%		5,064		5,791	14.4%
Interest and debt expense		65		65		65		73		66	1.5%		284		270	-4.9%
Spark and strategic digitization expense		23		13		21		22		30	30.4%		68		87	27.9%
Total expenses		4,046		4,272		4,079		4,873		4,367	7.9%		17,016		17,592	3.4%
Income (loss) before taxes		89		262		772		368		237	166.3%		423		1,638	287.2%
Federal income tax expense (benefit)		(54)		37		130		50		17	131.5%		(76)		233	NM
Net income (loss)		143		225		642		318		220	53.8%		499		1,405	181.6%
Adjustment for LNC stock units in our
deferred compensation plans		-		-		-		-		-	NM		-		-	NM
Net income (loss) available to common
stockholders – diluted	$	143	$	225	$	642	$	318	$	220	53.8%	$	499	$	1,405	181.6%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	0.74	$	1.16	$	3.34	$	1.68	$	1.20	62.2%	$	2.56	$	7.43	190.2%

ROE, including AOCI
Net income (loss)		2.6%		4.3%		12.4%		5.9%		4.2%			2.5%		6.7%






Page 3


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	102,789	$	96,570	$	101,003	$	100,862	$	98,120	-4.5%
U.S. government bonds		484		444		444		443		433	-10.5%
State and municipal bonds		6,921		6,625		6,919		6,901		6,621	-4.3%
Foreign government bonds		470		485		464		512		432	-8.1%
Residential mortgage-backed securities		3,076		3,077		3,027		2,935		2,525	-17.9%
Commercial mortgage-backed securities		1,505		1,516		1,578		1,594		1,599	6.2%
Asset-backed securities		7,184		7,996		8,177		8,303		8,512	18.5%
Hybrid and redeemable preferred securities		615		600		603		535		504	-18.0%
Total fixed maturity AFS securities, net of allowance for credit losses		123,044		117,313		122,215		122,085		118,746	-3.5%
Trading securities		4,501		4,365		4,232		4,191		4,482	-0.4%
Equity securities		129		123		174		243		318	146.5%
Mortgage loans on real estate, net of allowance for credit losses		16,763		17,255		17,586		17,730		17,991	7.3%
Policy loans		2,426		2,502		2,410		2,379		2,364	-2.6%
Derivative investments		3,109		3,453		4,548		4,828		5,437	74.9%
Other investments		3,984		3,548		3,950		4,069		4,292	7.7%
Total investments		153,956		148,559		155,115		155,525		153,630	-0.2%
Cash and invested cash		1,708		1,350		2,389		2,614		2,612	52.9%
DAC and VOBA		5,812		7,665		6,261		5,965		6,081	4.6%
Premiums and fees receivable		486		653		583		584		580	19.3%
Accrued investment income		1,257		1,301		1,254		1,297		1,189	-5.4%
Reinsurance recoverables, net of allowance for credit losses		16,496		16,289		15,981		15,729		20,295	23.0%
Funds withheld reinsurance assets		530		528		527		526		517	-2.5%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		15,960		17,298		17,465		17,367		18,036	13.0%
Separate account assets		167,965		171,339		178,795		175,667		182,583	8.7%
Total assets	$	365,948	$	366,760	$	380,148	$	377,052	$	387,301	5.8%
		`




Page 4a


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	40,814	$	39,591	$	40,250	$	40,641	$	41,030	0.5%
Other contract holder funds		105,405		107,002		108,778		109,297		111,702	6.0%
Short-term debt		-		300		300		300		300	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		866		866		866		867	0.1%
Financial		5,816		5,428		5,468		5,457		5,458	-6.2%
Reinsurance related embedded derivatives		392		244		328		304		206	-47.4%
Funds withheld reinsurance liabilities		1,946		1,976		2,027		2,078		2,118	8.8%
Payables for collateral on investments		6,222		7,597		8,199		8,379		8,946	43.8%
Other liabilities		13,823		12,824		13,392		12,893		13,819	0.0%
Separate account liabilities		167,965		171,339		178,795		175,667		182,583	8.7%
Total liabilities		343,249		347,167		358,403		355,882		367,029	6.9%

Stockholders’ Equity
Common stock		5,082		5,057		5,021		4,956		4,735	-6.8%
Retained earnings		8,686		8,775		9,245		9,365		9,096	4.7%
AOCI:
Unrealized investment gains (losses)		9,209		6,040		7,756		7,128		6,674	-27.5%
Foreign currency translation adjustment		(12)		(10)		(10)		(14)		(14)	-16.7%
Funded status of employee benefit plans		(266)		(269)		(267)		(265)		(219)	17.7%
Total AOCI		8,931		5,761		7,479		6,849		6,441	-27.9%
Total stockholders’ equity		22,699		19,593		21,745		21,170		20,272	-10.7%
Total liabilities and stockholders’ equity	$	365,948	$	366,760	$	380,148	$	377,052	$	387,301	5.8%










Page 4b


Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss)
Net income (loss)	$	143	$	225	$	642	$	318	$	220	53.8%	$	499	$	1,405	181.6%
Pre-tax adjusted income (loss) from operations		393		421		729		354		320	-18.6%		934		1,824	95.3%
After-tax adjusted income (loss) from operations (1)		346		350		608		307		286	-17.3%		865		1,551	79.3%
Adjusted operating tax rate		12.0%		16.8%		16.5%		13.3%		10.6%			7.4%		15.0%

Average Stockholders’ Equity
Average equity, including AOCI	$	22,124	$	21,146	$	20,669	$	21,458	$	20,721	-6.3%	$	20,012	$	20,999	4.9%
Average AOCI		8,370		7,346		6,620		7,164		6,645	-20.6%		6,359		6,944	9.2%
Average equity, excluding AOCI	$	13,754	$	13,800	$	14,049	$	14,294	$	14,076	2.3%	$	13,653	$	14,055	2.9%

ROE, Excluding AOCI
Net income (loss)		4.2%		6.5%		18.3%		8.9%		6.3%			3.7%		10.0%
Adjusted income (loss) from operations		10.1%		10.2%		17.3%		8.6%		8.1%			6.3%		11.0%

Per Share
Net income (loss) (diluted)	$	0.74	$	1.16	$	3.34	$	1.68	$	1.20	62.2%	$	2.56	$	7.43	190.2%
Adjusted income (loss) from operations (diluted)		1.78		1.82		3.17		1.62		1.56	-12.4%		4.45		8.20	84.3%
Dividends declared during the period		0.42		0.42		0.42		0.42		0.45	7.1%		1.62		1.71	5.6%

Book value, including AOCI	$	118.02	$	102.50	$	115.00	$	113.77	$	114.41	-3.1%	$	118.02	$	114.41	-3.1%
Per share impact of AOCI		46.43		30.14		39.55		36.81		36.36	-21.7%		46.43		36.36	-21.7%
Book value, excluding AOCI	$	71.59	$	72.36	$	75.45	$	76.96	$	78.05	9.0%	$	71.59	$	78.05	9.0%

Shares
Repurchased during the period		1.1		1.9		2.2		3.1		9.1	NM		4.9		16.2	230.6%
End-of-period – basic		192.3		191.1		189.1		186.1		177.2	-7.9%		192.3		177.2	-7.9%
End-of-period – diluted		193.7		192.5		191.4		188.1		179.8	-7.2%		193.7		179.8	-7.2%
Average for the period – diluted		193.9		193.1		192.2		189.1		183.2	-5.5%		195.8		189.1	-3.4%

(1) See reconciliation to net income (loss) on page 24.




Page 5


Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Cash Returned to Common Stockholders
Shares repurchased	$	50	$	105	$	150	$	200	$	650	NM	$	275	$	1,105	NM
Common dividends		77		81		80		79		78	1.3%		311		319	2.6%
Total cash returned to common stockholders	$	127	$	186	$	230	$	279	$	728	NM	$	586	$	1,424	143.0%

Leverage Ratio
Short-term debt	$	-	$	300	$	300	$	300	$	300	NM
Long-term debt		6,682		6,294		6,334		6,323		6,325	-5.3%
Total debt (1)		6,682		6,594		6,634		6,623		6,625	-0.9%
Less:
Operating debt (2)		866		866		866		866		867	0.1%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		395		306		345		333		335	-15.2%
Total numerator	$	5,119	$	5,120	$	5,121	$	5,122	$	5,121	0.0%

Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,490	$	13,553	$	13,989	$	14,042	$	13,598	0.8%
Add: 25% of capital securities and subordinated
notes		302		302		302		302		302	0.0%
Total numerator		5,119		5,120		5,121		5,122		5,121	0.0%
Total denominator	$	18,911	$	18,975	$	19,412	$	19,466	$	19,021	0.6%

Leverage ratio		27.1%		27.0%		26.4%		26.3%		26.9%

Holding Company Available Liquidity	$	754	$	758	$	762	$	754	$	1,117	48.1%

(1) Excludes obligations under finance leases and certain financing arrangements of $550 million that are reported in other liabilities on our Consolidated Balance Sheets.
(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
on increasing statutory reserves associated with secondary guarantee UL and term policies.







Page 6


Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	338	$	350	$	380	$	403	$	391	15.7%	$	1,132	$	1,524	34.6%
Retirement Plan Services		57		70		74		72		68	19.3%		192		284	47.9%
Life Insurance		177		130		317		113		97	-45.2%		(67)		657	NM
Group Protection		(54)		(33)		59		(40)		(146)	NM		54		(160)	NM
Other Operations		(125)		(96)		(101)		(194)		(90)	28.0%		(377)		(481)	-27.6%
Adjusted income (loss) from operations, before
income taxes	$	393	$	421	$	729	$	354	$	320	-18.6%	$	934	$	1,824	95.3%

Income (Loss) from Operations, After-Tax
Annuities	$	289	$	290	$	323	$	338	$	332	14.9%	$	983	$	1,283	30.5%
Retirement Plan Services		49		57		62		60		57	16.3%		168		235	39.9%
Life Insurance		144		107		255		93		80	-44.4%		(34)		535	NM
Group Protection		(42)		(26)		46		(32)		(115)	NM		43		(127)	NM
Other Operations		(94)		(78)		(78)		(152)		(68)	27.7%		(295)		(375)	-27.1%
Adjusted income (loss) from operations	$	346	$	350	$	608	$	307	$	286	-17.3%	$	865	$	1,551	79.3%

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Sources of Earnings, Pre-Tax
Investment spread	$	147	$	130	$	228	$	152	$	113	-23.1%	$	218	$	624	186.2%
Mortality/morbidity		47		39		219		21		(81)	NM		19		199	NM
Fees on AUM		308		332		363		381		355	15.3%		1,163		1,428	22.8%
VA riders		16		16		20		(6)		23	43.8%		(89)		54	160.7%
Total sources of earnings, before income taxes		518		517		830		548		410	-20.8%		1,311		2,305	75.8%
Other Operations		(125)		(96)		(101)		(194)		(90)	28.0%		(377)		(481)	-27.6%
Adjusted income (loss) from operations, before
income taxes	$	393	$	421	$	729	$	354	$	320	-18.6%	$	934	$	1,824	95.3%

Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		28.5%		25.2%		27.5%		27.7%		27.6%			16.6%		27.1%
Mortality/morbidity		9.1%		7.5%		26.4%		3.9%		-19.7%			1.4%		8.6%
Fees on AUM		59.4%		64.1%		43.6%		69.4%		86.5%			88.8%		62.0%
VA riders		3.0%		3.2%		2.5%		-1.0%		5.6%			-6.8%		2.3%
Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%

Page 7

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Annuities
Operating revenues	$	1,163	$	1,204	$	1,249	$	1,267	$	1,282	10.2%	$	4,455	$	5,002	12.3%
Deposits		2,510		2,814		3,209		2,707		3,011	20.0%		11,260		11,740	4.3%
Net flows		(644)		(776)		(297)		(841)		(655)	-1.7%		(341)		(2,569)	NM
Average account values		150,875		160,099		166,034		169,581		170,953	13.3%		141,921		166,691	17.5%

Retirement Plan Services
Operating revenues	$	323	$	327	$	333	$	328	$	335	3.7%	$	1,213	$	1,324	9.2%
Deposits		2,557		2,640		2,789		2,411		3,000	17.3%		10,017		10,840	8.2%
Net flows		340		347		517		(21)		(380)	NM		166		464	179.5%
Average account values		83,889		89,589		94,096		96,723		98,008	16.8%		78,647		94,649	20.3%

Life Insurance
Operating revenues	$	1,928	$	1,939	$	2,029	$	2,325	$	1,844	-4.4%	$	7,516	$	8,137	8.3%
Deposits		1,476		1,219		1,278		1,324		1,872	26.8%		5,890		5,693	-3.3%
Net flows		996		793		879		871		1,438	44.4%		4,137		3,982	-3.7%
Average account values		56,419		58,008		59,056		59,642		51,067	-9.5%		54,137		56,943	5.2%
Average in-force face amount		886,005		900,973		916,600		935,096		959,478	8.3%		861,517		928,037	7.7%

Group Protection
Operating revenues	$	1,184	$	1,254	$	1,247	$	1,243	$	1,252	5.7%	$	4,793	$	4,996	4.2%
Insurance premiums		1,049		1,119		1,107		1,107		1,117	6.5%		4,280		4,450	4.0%

Consolidated
Adjusted operating revenues (1)	$	4,655	$	4,762	$	4,903	$	5,205	$	4,769	2.4%	$	18,162	$	19,639	8.1%
Deposits		6,543		6,673		7,276		6,442		7,883	20.5%		27,167		28,273	4.1%
Net flows		692		364		1,099		9		403	-41.8%		3,962		1,877	-52.6%
Average account values		291,183		307,696		319,186		325,946		320,028	9.9%		274,705		318,283	15.9%

(1) See reconciliation to total revenues on page 24.





Page 8


Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Sales
Annuities:
With guaranteed living benefits	$	507	$	638	$	742	$	773	$	834	64.5%	$	3,058	$	2,988	-2.3%
Without guaranteed living benefits		1,921		2,090		2,283		1,592		1,764	-8.2%		6,677		7,728	15.7%
Variable		2,428		2,728		3,025		2,365		2,598	7.0%		9,735		10,716	10.1%
Fixed		82		86		184		342		413	NM		1,525		1,024	-32.9%
Total Annuities	$	2,510	$	2,814	$	3,209	$	2,707	$	3,011	20.0%	$	11,260	$	11,740	4.3%

Retirement Plan Services:
First-year sales	$	1,107	$	694	$	1,102	$	745	$	1,270	14.7%	$	3,670	$	3,810	3.8%
Recurring deposits		1,450		1,946		1,687		1,666		1,730	19.3%		6,347		7,030	10.8%
Total Retirement Plan Services	$	2,557	$	2,640	$	2,789	$	2,411	$	3,000	17.3%	$	10,017	$	10,840	8.2%

Life Insurance:
UL	$	3	$	2	$	2	$	2	$	2	-33.3%	$	20	$	8	-60.0%
MoneyGuard®		22		16		23		26		36	63.6%		127		101	-20.5%
IUL		22		16		18		22		40	81.8%		91		96	5.5%
VUL		30		22		27		40		92	206.7%		188		181	-3.7%
Term		32		30		35		42		47	46.9%		132		152	15.2%
Total individual life insurance		109		86		105		132		217	99.1%		558		538	-3.6%
Executive Benefits		6		28		21		34		37	NM		72		122	69.4%
Total Life Insurance	$	115	$	114	$	126	$	166	$	254	120.9%	$	630	$	660	4.8%

Group Protection:
Life	$	144	$	41	$	37	$	22	$	163	13.2%	$	265	$	264	-0.4%
Disability		291		28		37		20		199	-31.6%		397		284	-28.5%
Dental		15		5		5		6		23	53.3%		44		38	-13.6%
Total Group Protection	$	450	$	74	$	79	$	48	$	385	-14.4%	$	706	$	586	-17.0%
Percent employee-paid		28.4%		66.7%		56.3%		50.1%		35.0%			38.5%		43.1%






Page 9


Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Operating Revenues
Annuities	$	1,163	$	1,204	$	1,249	$	1,267	$	1,282	10.2%	$	4,455	$	5,002	12.3%
Retirement Plan Services		323		327		333		328		335	3.7%		1,213		1,324	9.2%
Life Insurance		1,928		1,939		2,029		2,325		1,844	-4.4%		7,516		8,137	8.3%
Group Protection		1,184		1,254		1,247		1,243		1,252	5.7%		4,793		4,996	4.2%
Other Operations		57		38		45		42		56	-1.8%		185		180	-2.7%
Total segment operating revenues	$	4,655	$	4,762	$	4,903	$	5,205	$	4,769	2.4%	$	18,162	$	19,639	8.1%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities	$	126	$	116	$	121	$	115	$	125	-0.8%	$	469	$	477	1.7%
Retirement Plan Services		78		69		73		70		80	2.6%		288		293	1.7%
Life Insurance		126		118		126		121		138	9.5%		481		503	4.6%
Group Protection		164		158		161		163		177	7.9%		624		659	5.6%
Other Operations		71		44		46		143		52	-26.8%		156		285	82.7%
Total	$	565	$	505	$	527	$	612	$	572	1.2%	$	2,018	$	2,217	9.9%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.8%		9.7%		9.6%		9.1%		9.7%			10.5%		9.5%
Retirement Plan Services		24.2%		21.2%		21.9%		21.5%		23.8%			23.8%		22.1%
Life Insurance		6.5%		6.1%		6.2%		5.2%		7.5%			6.4%		6.2%
Group Protection		13.8%		12.5%		13.0%		13.1%		14.1%			13.0%		13.2%
Other Operations		125.8%		115.6%		100.8%		345.5%		96.8%			83.5%		159.0%
Total		12.1%		10.6%		10.7%		11.8%		12.0%			11.1%		11.3%

(1) See page 11 for general and administrative expenses capitalized.







Page 10


Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	638	$	556	$	579	$	662	$	642	0.6%	$	2,248	$	2,440	8.5%
Commissions		625		616		652		656		760	21.6%		2,562		2,684	4.8%
Taxes, licenses and fees		73		87		86		79		89	21.9%		327		341	4.3%
Interest and debt expense		65		65		65		66		66	1.5%		269		262	-2.6%
Expenses associated with reserve financing
and letters of credit		25		25		25		26		26	4.0%		94		102	8.5%
Total adjusted operating commissions and other
expenses incurred		1,426		1,349		1,407		1,489		1,583	11.0%		5,500		5,829	6.0%

Less Amounts Capitalized
General and administrative expenses		(73)		(51)		(52)		(50)		(70)	4.1%		(230)		(223)	3.0%
Commissions		(250)		(233)		(261)		(253)		(361)	-44.4%		(1,172)		(1,106)	5.6%
Taxes, licenses and fees		(9)		(8)		(11)		(9)		(15)	-66.7%		(46)		(44)	4.3%
Total amounts capitalized		(332)		(292)		(324)		(312)		(446)	-34.3%		(1,448)		(1,373)	5.2%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,094		1,057		1,083		1,177		1,137	3.9%		4,052		4,456	10.0%

Amortization
Amortization of DAC, VOBA and other intangibles		218		247		317		821		263	20.6%		1,352		1,647	21.8%
Total operating commissions and other expenses	$	1,312	$	1,304	$	1,400	$	1,998	$	1,400	6.7%	$	5,404	$	6,103	12.9%













Page 11


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Annuities
Earned rate on reserves		3.42%		3.27%		3.10%		3.07%		3.06%	(36)		3.61%		3.12%	(49)
Variable investment income on reserves (1)		0.15%		0.11%		0.24%		0.28%		0.31%	16		0.08%		0.24%	16
Net investment income yield on reserves		3.57%		3.38%		3.34%		3.35%		3.37%	(20)		3.69%		3.36%	(33)
Interest rate credited to contract holders		1.97%		2.02%		1.97%		1.90%		1.82%	(15)		2.15%		1.93%	(22)
Interest rate spread		1.60%		1.36%		1.37%		1.45%		1.55%	(5)		1.54%		1.43%	(11)
Base spreads excluding variable investment income		1.45%		1.25%		1.13%		1.17%		1.24%	(21)		1.46%		1.19%	(27)

Retirement Plan Services
Earned rate on reserves		3.68%		3.64%		3.60%		3.56%		3.51%	(17)		3.82%		3.58%	(24)
Variable investment income on reserves (1)		0.21%		0.17%		0.21%		0.22%		0.39%	18		0.11%		0.25%	14
Net investment income yield on reserves		3.89%		3.81%		3.81%		3.78%		3.90%	1		3.93%		3.83%	(10)
Interest rate credited to contract holders		2.78%		2.68%		2.69%		2.65%		2.63%	(15)		2.83%		2.66%	(17)
Interest rate spread		1.11%		1.13%		1.12%		1.13%		1.27%	16		1.10%		1.17%	7
Base spreads excluding variable investment income		0.90%		0.96%		0.91%		0.91%		0.88%	(2)		0.99%		0.92%	(7)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.71%		4.71%		4.68%		4.64%		4.67%	(4)		4.75%		4.68%	(7)
Variable investment income on reserves (1)		0.95%		1.05%		1.38%		1.23%		0.85%	(10)		0.33%		1.13%	80
Net investment income yield on reserves		5.66%		5.76%		6.06%		5.87%		5.52%	(14)		5.08%		5.81%	73
Interest rate credited to contract holders		3.83%		3.76%		3.78%		3.76%		3.76%	(7)		3.80%		3.77%	(3)
Interest rate spread		1.83%		2.00%		2.28%		2.11%		1.76%	(7)		1.28%		2.04%	76
Base spreads excluding variable investment income		0.88%		0.95%		0.90%		0.88%		0.91%	3		0.95%		0.91%	(4)

Total (2)
Earned rate (3)		4.04%		3.96%		3.94%		3.93%		3.80%	(24)		4.12%		3.92%	(20)
Variable investment income (1) (3)		0.56%		0.59%		0.78%		0.72%		0.53%	(3)		0.22%		0.66%	44
Net investment income yield (3)		4.60%		4.55%		4.72%		4.65%		4.33%	(27)		4.34%		4.58%	24

(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
(2) Includes the results of all of our business segments and Other Operations.
(3) Includes investment yields on reserves and surplus.





Page 12


Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	29	$	32	$	27	$	30	$	27	-6.9%	$	121	$	116	-4.1%
Fee income		626		652		679		690		702	12.1%		2,394		2,724	13.8%
Net investment income		343		328		352		371		349	1.7%		1,272		1,401	10.1%
Operating realized gain (loss)		54		50		53		49		55	1.9%		214		208	-2.8%
Amortization of deferred gain		5		6		6		7		7	40.0%		29		26	-10.3%
Other revenues		106		136		132		120		142	34.0%		425		527	24.0%
Total operating revenues		1,163		1,204		1,249		1,267		1,282	10.2%		4,455		5,002	12.3%
Operating expenses:
Interest credited		191		199		199		210		203	6.3%		773		811	4.9%
Benefits		138		141		135		135		138	0.0%		696		548	-21.3%
Commissions incurred		255		275		297		276		287	12.5%		1,061		1,136	7.1%
Other expenses incurred		252		255		264		258		280	11.1%		954		1,056	10.7%
Amounts capitalized		(117)		(127)		(144)		(113)		(132)	-12.8%		(548)		(515)	6.0%
Amortization		106		111		118		98		115	8.5%		387		442	14.2%
Total operating expenses		825		854		869		864		891	8.0%		3,323		3,478	4.7%
Income (loss) from operations before taxes		338		350		380		403		391	15.7%		1,132		1,524	34.6%
Federal income tax expense (benefit)		49		60		57		65		59	20.4%		149		241	61.7%
Income (loss) from operations	$	289	$	290	$	323	$	338	$	332	14.9%	$	983	$	1,283	30.5%

Effective Federal Income Tax Rate		14.5%		17.2%		15.0%		16.1%		15.1%			13.2%		15.8%

Average Equity, Excluding Goodwill and AOCI	$	5,405	$	5,071	$	5,077	$	5,282	$	5,310	-1.8%	$	5,172	$	5,185	0.3%

ROE, Excluding Goodwill and AOCI		21.4%		22.9%		25.5%		25.6%		25.0%			19.0%		24.7%

Return on Average Account Values		77		72		78		80		78	1		69		77	8

Income (Loss) from Operations
Variable annuity		254		261		293		287		295	16.1%		869		1,135	30.6%
Fixed annuity		35		29		30		51		37	5.7%		114		148	29.8%

Account Values – Average
Variable account values	$	133,630	$	142,990	$	149,066	$	152,660	$	154,084	15.3%	$	124,708	$	149,714	20.1%
Fixed account values		17,245		17,109		16,968		16,921		16,869	-2.2%		17,213		16,977	-1.4%

Account Values – End of Period
Variable account values with GLBs	$	83,377	$	84,155	$	86,901	$	84,320	$	86,234	3.4%	$	83,377	$	86,234	3.4%
Variable account values without GLBs		56,936		60,002		64,495		65,223		69,625	22.3%		56,936		69,625	22.3%
Fixed account values		17,205		16,966		16,911		16,804		16,866	-2.0%		17,205		16,866	-2.0%

Page 13


Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	69	$	71	$	74	$	75	$	76	10.1%	$	253	$	296	17.0%
Net investment income		246		248		250		245		250	1.6%		933		992	6.3%
Other revenues		8		8		9		8		9	12.5%		27		36	33.3%
Total operating revenues		323		327		333		328		335	3.7%		1,213		1,324	9.2%
Operating expenses:
Interest credited		157		155		155		153		154	-1.9%		615		617	0.3%
Benefits		-		1		1		1		1	NM		2		3	50.0%
Commissions incurred		20		21		20		21		21	5.0%		76		84	10.5%
Other expenses incurred		86		77		79		78		89	3.5%		320		326	1.9%
Amounts capitalized		(5)		(5)		(4)		(5)		(7)	-40.0%		(21)		(22)	-4.8%
Amortization		8		8		8		8		9	12.5%		29		32	10.3%
Total operating expenses		266		257		259		256		267	0.4%		1,021		1,040	1.9%
Income (loss) from operations before taxes		57		70		74		72		68	19.3%		192		284	47.9%
Federal income tax expense (benefit)		8		13		12		12		11	37.5%		24		49	104.2%
Income (loss) from operations	$	49	$	57	$	62	$	60	$	57	16.3%	$	168	$	235	39.9%

Effective Federal Income Tax Rate		14.6%		18.9%		16.7%		16.8%		16.3%			12.8%		17.2%

Average Equity, Excluding Goodwill and AOCI	$	1,480	$	1,526	$	1,535	$	1,492	$	1,477	-0.2%	$	1,437	$	1,507	4.9%

ROE, Excluding Goodwill and AOCI		13.2%		14.9%		16.1%		16.1%		15.4%			11.7%		15.6%

Return on Average Account Values		23		25		26		25		23	-		21		25	4

Pre-tax Net Margin		34.4%		40.4%		41.5%		41.2%		37.6%			32.2%		40.2%

Net Flows by Market
Small Market	$	66	$	(28)	$	106	$	(43)	$	98	48.5%	$	350	$	133	-62.0%
Mid - Large Market		587		680		755		423		(58)	NM		792		1,800	127.3%
Multi-Fund® and Other		(313)		(305)		(344)		(401)		(420)	-34.2%		(976)		(1,469)	-50.5%

Net Flows – Trailing Twelve Months	$	166	$	(158)	$	1,566	$	1,183	$	464	179.5%	$	166	$	464	179.5%





Page 14


Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	274	$	253	$	258	$	256	$	266	-2.9%	$	950	$	1,033	8.7%
Fee income		861		867		915		1,230		848	-1.5%		3,727		3,863	3.6%
Net investment income		787		809		852		832		716	-9.0%		2,823		3,209	13.7%
Operating realized gain (loss)		(1)		(2)		(2)		-		(4)	NM		(6)		(9)	-50.0%
Amortization of deferred gain on
business sold through reinsurance		4		3		3		3		13	225.0%		12		20	66.7%
Other revenues		3		9		3		4		5	66.7%		10		21	110.0%
Total operating revenues		1,928		1,939		2,029		2,325		1,844	-4.4%		7,516		8,137	8.3%
Operating expenses:
Interest credited		375		370		372		375		322	-14.1%		1,491		1,439	-3.5%
Benefits		1,120		1,173		999		976		1,126	0.5%		4,586		4,275	-6.8%
Commissions incurred		152		120		130		153		236	55.3%		687		639	-7.0%
Other expenses incurred		204		194		208		201		234	14.7%		819		838	2.3%
Amounts capitalized		(168)		(138)		(154)		(175)		(276)	-64.3%		(788)		(745)	5.5%
Amortization		68		90		157		682		105	54.4%		788		1,034	31.2%
Total operating expenses		1,751		1,809		1,712		2,212		1,747	-0.2%		7,583		7,480	-1.4%
Income (loss) from operations before taxes		177		130		317		113		97	-45.2%		(67)		657	NM
Federal income tax expense (benefit)		33		23		62		20		17	-48.5%		(33)		122	NM
Income (loss) from operations	$	144	$	107	$	255	$	93	$	80	-44.4%	$	(34)	$	535	NM

Effective Federal Income Tax Rate		18.6%		17.7%		19.7%		17.6%		17.1%			49.9%		18.6%

Average Equity, Excluding Goodwill and AOCI	$	8,788	$	8,909	$	9,035	$	9,245	$	8,971	2.1%	$	8,853	$	9,040	2.1%

ROE, Excluding Goodwill and AOCI		6.5%		4.8%		11.3%		4.0%		3.6%			-0.4%		5.9%

Average Account Values	$	56,419	$	58,008	$	59,056	$	59,642	$	51,067	-9.5%	$	54,137	$	56,943	5.2%

In-Force Face Amount
UL and other	$	358,554	$	358,044	$	357,670	$	357,624	$	362,106	1.0%	$	358,554	$	362,106	1.0%
Term insurance		535,387		549,960		567,525		587,372		611,854	14.3%		535,387		611,854	14.3%
Total in-force face amount	$	893,941	$	908,004	$	925,195	$	944,996	$	973,960	9.0%	$	893,941	$	973,960	9.0%




Page 15


Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended											As of or For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,049	$	1,119	$	1,107	$	1,107	$	1,117	6.5%	$	4,280	$	4,450	4.0%
Net investment income		91		91		95		91		90	-1.1%		330		366	10.9%
Other revenues		44		44		45		45		45	2.3%		183		180	-1.6%
Total operating revenues		1,184		1,254		1,247		1,243		1,252	5.7%		4,793		4,996	4.2%
Operating expenses:
Interest credited		1		1		1		1		2	100.0%		5		6	20.0%
Benefits		920		970		877		971		1,072	16.5%		3,500		3,890	11.1%
Commissions incurred		95		91		87		88		95	0.0%		359		361	0.6%
Other expenses incurred		227		208		210		209		225	-0.9%		819		851	3.9%
Amounts capitalized		(41)		(21)		(21)		(19)		(30)	26.8%		(92)		(91)	1.1%
Amortization		36		38		34		33		34	-5.6%		148		139	-6.1%
Total operating expenses		1,238		1,287		1,188		1,283		1,398	12.9%		4,739		5,156	8.8%
Income (loss) from operations before taxes		(54)		(33)		59		(40)		(146)	NM		54		(160)	NM
Federal income tax expense (benefit)		(12)		(7)		13		(8)		(31)	NM		11		(33)	NM
Income (loss) from operations	$	(42)	$	(26)	$	46	$	(32)	$	(115)	NM	$	43	$	(127)	NM

Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%			21.0%		21.0%

Average Equity, Excluding Goodwill and AOCI	$	2,711	$	2,718	$	2,731	$	2,759	$	2,810	3.7%	$	2,655	$	2,755	3.8%

ROE, Excluding Goodwill and AOCI		-6.3%		-3.8%		6.8%		-4.6%		-16.4%			1.6%		-4.6%

Loss Ratios by Product Line
Life		93.4%		101.0%		79.6%		105.1%		108.7%			86.7%		98.6%
Disability		86.2%		78.8%		79.0%		77.7%		90.2%			80.5%		81.4%
Dental		67.3%		76.8%		81.6%		75.7%		71.1%			63.1%		76.3%
Total		87.8%		86.8%		79.3%		87.8%		96.1%			81.8%		87.5%








Page 16


Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Other Operations
Operating revenues:
Insurance premiums	$	11	$	2	$	6	$	1	$	10	-9.1%	$	21	$	19	-9.5%
Net investment income		38		34		35		37		40	5.3%		152		147	-3.3%
Other revenues		8		2		4		4		6	-25.0%		12		14	16.7%
Total operating revenues		57		38		45		42		56	-1.8%		185		180	-2.7%
Operating expenses:
Interest credited		8		12		10		10		10	25.0%		39		42	7.7%
Benefits		40		15		25		21		21	-47.5%		117		81	-30.8%
Commissions and other expenses		46		29		25		117		19	-58.7%		69		189	173.9%
Interest and debt expense		65		65		65		66		66	1.5%		269		262	-2.6%
Spark and strategic digitization expense		23		13		21		22		30	30.4%		68		87	27.9%
Total operating expenses		182		134		146		236		146	-19.8%		562		661	17.6%
Income (loss) from operations before taxes		(125)		(96)		(101)		(194)		(90)	28.0%		(377)		(481)	-27.6%
Federal income tax expense (benefit)		(31)		(18)		(23)		(42)		(22)	29.0%		(82)		(106)	-29.3%
Income (loss) from operations	$	(94)	$	(78)	$	(78)	$	(152)	$	(68)	27.7%	$	(295)	$	(375)	-27.1%



















Page 17


Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	6,520	$	6,025	$	7,884	$	6,472	$	6,169	-5.4%	$	7,928	$	6,025	-24.0%
Business acquired (sold) through reinsurance		-		-		-		-		(650)	NM		(10)		(650)	NM
Cumulative effect from adoption of new
accounting standard		-		-		-		-		-	NM		5		-	-100.0%
Deferrals		333		295		325		312		446	33.9%		1,456		1,378	-5.4%
Operating amortization		(212)		(244)		(314)		(820)		(259)	-22.2%		(1,337)		(1,637)	-22.4%
Deferrals, net of operating amortization		121		51		11		(508)		187	54.5%		119		(259)	NM
Amortization associated with benefit ratio unlocking		(30)		(6)		(11)		4		(11)	63.3%		23		(23)	NM
Adjustment related to realized (gains) losses		87		50		(10)		10		36	-58.6%		(20)		86	NM
Adjustment related to unrealized (gains) losses		(673)		1,764		(1,402)		191		553	182.2%		(2,020)		1,105	154.7%
Balance as of end-of-period	$	6,025	$	7,884	$	6,472	$	6,169	$	6,284	4.3%	$	6,025	$	6,284	4.3%

DFEL
Balance as of beginning-of-period	$	392	$	401	$	559	$	433	$	396	1.0%	$	650	$	401	-38.3%
Business acquired (sold) through reinsurance		-		-		-		-		(290)	NM		-		(290)	NM
Cumulative effect from adoption of new
accounting standard		-		-		-		-		-	NM		4		-	-100.0%
Deferrals		249		231		240		251		294	18.1%		1,003		1,015	1.2%
Operating amortization		(120)		(131)		(179)		(522)		(147)	-22.5%		(815)		(979)	-20.1%
Deferrals, net of operating amortization		129		100		61		(271)		147	14.0%		188		36	-80.9%
Amortization associated with benefit ratio unlocking		(4)		(1)		(2)		1		(1)	75.0%		2		(3)	NM
Adjustment related to realized (gains) losses		9		1		(2)		(8)		(1)	NM		25		(10)	NM
Adjustment related to unrealized (gains) losses		(125)		58		(183)		241		164	231.2%		(468)		281	160.0%
Balance as of end-of-period	$	401	$	559	$	433	$	396	$	415	3.5%	$	401	$	415	3.5%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	4,443	$	5,787	$	4,771	$	4,561	$	4,637	4.4%	$	4,443	$	4,637	4.4%








Page 18


Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Fixed Annuities
Balance as of beginning-of-period	$	25,572	$	25,405	$	25,008	$	24,840	$	24,642	-3.6%	$	25,384	$	25,405	0.1%
Gross deposits		82		86		184		342		413	NM		1,525		1,024	-32.9%
Full surrenders and deaths		(400)		(494)		(482)		(489)		(415)	-3.8%		(1,583)		(1,879)	-18.7%
Other contract benefits		(145)		(141)		(115)		(163)		(198)	-36.6%		(578)		(617)	-6.7%
Net flows		(463)		(549)		(413)		(310)		(200)	56.8%		(636)		(1,472)	NM
Contract holder assessments		(19)		(25)		(22)		(20)		(17)	10.5%		(64)		(84)	-31.3%
Reinvested interest credited		315		177		267		132		303	-3.8%		721		879	21.9%
Balance as of end-of-period, gross		25,405		25,008		24,840		24,642		24,728	-2.7%		25,405		24,728	-2.7%
Reinsurance ceded		(8,200)		(8,042)		(7,929)		(7,838)		(7,862)	4.1%		(8,200)		(7,862)	4.1%
Balance as of end-of-period, net	$	17,205	$	16,966	$	16,911	$	16,804	$	16,866	-2.0%	$	17,205	$	16,866	-2.0%

Variable Annuities
Balance as of beginning-of-period	$	127,585	$	140,313	$	144,157	$	151,396	$	149,550	17.2%	$	125,492	$	140,313	11.8%
Gross deposits		2,428		2,728		3,025		2,365		2,598	7.0%		9,735		10,716	10.1%
Full surrenders and deaths		(1,600)		(1,901)		(1,871)		(1,875)		(1,858)	-16.1%		(5,655)		(7,505)	-32.7%
Other contract benefits		(1,009)		(1,054)		(1,038)		(1,021)		(1,195)	-18.4%		(3,785)		(4,308)	-13.8%
Net flows		(181)		(227)		116		(531)		(455)	NM		295		(1,097)	NM
Contract holder assessments		(666)		(684)		(705)		(723)		(727)	-9.2%		(2,556)		(2,839)	-11.1%
Change in market value and reinvestment		13,575		4,755		7,828		(592)		7,498	-44.8%		17,082		19,489	14.1%
Balance as of end-of-period, gross		140,313		144,157		151,396		149,550		155,866	11.1%		140,313		155,866	11.1%
Reinsurance ceded		-		-		-		(7)		(7)	NM		-		(7)	NM
Balance as of end-of-period, net	$	140,313	$	144,157	$	151,396	$	149,543	$	155,859	11.1%	$	140,313	$	155,859	11.1%

Total
Balance as of beginning-of-period	$	153,157	$	165,718	$	169,165	$	176,236	$	174,192	13.7%	$	150,876	$	165,718	9.8%
Gross deposits		2,510		2,814		3,209		2,707		3,011	20.0%		11,260		11,740	4.3%
Full surrenders and deaths		(2,000)		(2,395)		(2,353)		(2,364)		(2,273)	-13.7%		(7,238)		(9,384)	-29.6%
Other contract benefits		(1,154)		(1,195)		(1,153)		(1,184)		(1,393)	-20.7%		(4,363)		(4,925)	-12.9%
Net flows		(644)		(776)		(297)		(841)		(655)	-1.7%		(341)		(2,569)	NM
Contract holder assessments		(685)		(709)		(727)		(743)		(744)	-8.6%		(2,620)		(2,923)	-11.6%
Change in market value and reinvestment		13,890		4,932		8,095		(460)		7,801	-43.8%		17,803		20,368	14.4%
Balance as of end-of-period, gross		165,718		169,165		176,236		174,192		180,594	9.0%		165,718		180,594	9.0%
Reinsurance ceded		(8,200)		(8,042)		(7,929)		(7,845)		(7,869)	4.0%		(8,200)		(7,869)	4.0%
Balance as of end-of-period, net	$	157,518	$	161,123	$	168,307	$	166,347	$	172,725	9.7%	$	157,518	$	172,725	9.7%

Page 19


Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
General Account
Balance as of beginning-of-period	$	22,316	$	22,916	$	23,008	$	22,995	$	23,152	3.7%	$	20,558	$	22,916	11.5%
Gross deposits		731		490		424		504		908	24.2%		2,725		2,325	-14.7%
Withdrawals		(533)		(583)		(590)		(647)		(631)	-18.4%		(2,326)		(2,451)	-5.4%
Net flows		198		(93)		(166)		(143)		277	39.9%		399		(126)	NM
Transfers between fixed and variable accounts		247		35		3		149		59	-76.1%		1,359		247	-81.8%
Contract holder assessments		(3)		(3)		(3)		(3)		(4)	-33.3%		(13)		(14)	-7.7%
Reinvestment interest credited		158		153		153		154		155	-1.9%		613		616	0.5%
Balance as of end-of-period	$	22,916	$	23,008	$	22,995	$	23,152	$	23,639	3.2%	$	22,916	$	23,639	3.2%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	58,255	$	65,391	$	68,149	$	72,913	$	72,454	24.4%	$	58,131	$	65,391	12.5%
Gross deposits		1,826		2,150		2,365		1,907		2,092	14.6%		7,292		8,515	16.8%
Withdrawals		(1,684)		(1,710)		(1,682)		(1,785)		(2,749)	-63.2%		(7,525)		(7,925)	-5.3%
Net flows		142		440		683		122		(657)	NM		(233)		590	NM
Transfers between fixed and variable accounts		(326)		(141)		(43)		(154)		(77)	76.4%		(1,532)		(417)	72.8%
Contract holder assessments		(59)		(62)		(65)		(66)		(67)	-13.6%		(212)		(260)	-22.6%
Change in market value and reinvestment		7,379		2,521		4,189		(361)		3,822	-48.2%		9,237		10,171	10.1%
Balance as of end-of-period	$	65,391	$	68,149	$	72,913	$	72,454	$	75,475	15.4%	$	65,391	$	75,475	15.4%

Total
Balance as of beginning-of-period	$	80,571	$	88,307	$	91,157	$	95,908	$	95,606	18.7%	$	78,689	$	88,307	12.2%
Gross deposits		2,557		2,640		2,789		2,411		3,000	17.3%		10,017		10,840	8.2%
Withdrawals		(2,217)		(2,293)		(2,272)		(2,432)		(3,380)	-52.5%		(9,851)		(10,376)	-5.3%
Net flows		340		347		517		(21)		(380)	NM		166		464	179.5%
Transfers between fixed and variable accounts		(79)		(106)		(40)		(5)		(18)	77.2%		(173)		(170)	1.7%
Contract holder assessments		(62)		(65)		(68)		(69)		(71)	-14.5%		(225)		(274)	-21.8%
Change in market value and reinvestment		7,537		2,674		4,342		(207)		3,977	-47.2%		9,850		10,787	9.5%
Balance as of end-of-period	$	88,307	$	91,157	$	95,908	$	95,606	$	99,114	12.2%	$	88,307	$	99,114	12.2%







Page 20


Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
General Account
Balance as of beginning-of-period	$	38,080	$	38,136	$	38,053	$	38,013	$	37,969	-0.3%	$	38,141	$	38,136	0.0%
Deposits		1,028		899		895		894		1,050	2.1%		3,954		3,738	-5.5%
Withdrawals and deaths		(282)		(296)		(243)		(237)		(213)	24.5%		(1,156)		(988)	14.5%
Net flows		746		603		652		657		837	12.2%		2,798		2,750	-1.7%
Contract holder assessments		(1,088)		(1,073)		(1,074)		(1,086)		(1,107)	-1.7%		(4,313)		(4,343)	-0.7%
Reinvested interest credited		398		387		382		385		395	-0.8%		1,510		1,551	2.7%
Balance as of end-of-period, gross		38,136		38,053		38,013		37,969		38,094	-0.1%		38,136		38,094	-0.1%
Reinsurance ceded		(640)		(636)		(628)		(620)		(5,562)	NM		(640)		(5,562)	NM
Balance as of end-of-period, net	$	37,496	$	37,417	$	37,385	$	37,349	$	32,532	-13.2%	$	37,496	$	32,532	-13.2%

Separate Account
Balance as of beginning-of-period	$	18,671	$	21,078	$	21,983	$	23,361	$	23,250	24.5%	$	17,646	$	21,078	19.4%
Deposits		448		320		383		430		822	83.5%		1,936		1,955	1.0%
Withdrawals and deaths		(198)		(130)		(156)		(216)		(221)	-11.6%		(597)		(723)	-21.1%
Net flows		250		190		227		214		601	140.4%		1,339		1,232	-8.0%
Contract holder assessments		(209)		(197)		(203)		(211)		(247)	-18.2%		(841)		(858)	-2.0%
Change in market value and reinvestment		2,366		912		1,354		(114)		1,303	-44.9%		2,934		3,455	17.8%
Balance as of end-of-period, gross		21,078		21,983		23,361		23,250		24,907	18.2%		21,078		24,907	18.2%
Reinsurance ceded		(969)		(990)		(1,044)		(1,018)		(5,593)	NM		(969)		(5,593)	NM
Balance as of end-of-period, net	$	20,109	$	20,993	$	22,317	$	22,232	$	19,314	-4.0%	$	20,109	$	19,314	-4.0%

Total
Balance as of beginning-of-period	$	56,751	$	59,214	$	60,036	$	61,374	$	61,219	7.9%	$	55,787	$	59,214	6.1%
Deposits		1,476		1,219		1,278		1,324		1,872	26.8%		5,890		5,693	-3.3%
Withdrawals and deaths		(480)		(426)		(399)		(453)		(434)	9.6%		(1,753)		(1,711)	2.4%
Net flows		996		793		879		871		1,438	44.4%		4,137		3,982	-3.7%
Contract holder assessments		(1,297)		(1,270)		(1,277)		(1,297)		(1,354)	-4.4%		(5,154)		(5,201)	-0.9%
Change in market value and reinvestment		2,764		1,299		1,736		271		1,698	-38.6%		4,444		5,006	12.6%
Balance as of end-of-period, gross		59,214		60,036		61,374		61,219		63,001	6.4%		59,214		63,001	6.4%
Reinsurance ceded		(1,609)		(1,626)		(1,672)		(1,638)		(11,155)	NM		(1,609)		(11,155)	NM
Balance as of end-of-period, net	$	57,605	$	58,410	$	59,702	$	59,581	$	51,846	-10.0%	$	57,605	$	51,846	-10.0%




Page 21


Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)

	As of 12/31/20				As of 12/31/21
	Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities, net of allowance for credit losses:
Corporate bonds	$	102,789		80.5%	$	98,120		79.4%
U.S. government bonds		484		0.4%		433		0.4%
State and municipal bonds		6,921		5.4%		6,621		5.4%
Foreign government bonds		470		0.4%		432		0.3%
Residential mortgage-backed securities		3,076		2.4%		2,525		2.0%
Commercial mortgage-backed securities		1,505		1.2%		1,599		1.3%
Asset-backed securities		7,184		5.6%		8,512		6.9%
Hybrid and redeemable preferred securities		615		0.5%		504		0.4%
Total fixed maturity AFS securities, net of allowance for credit losses		123,044		96.4%		118,746		96.1%
Trading securities		4,501		3.5%		4,482		3.6%
Equity securities		129		0.1%		318		0.3%
Total fixed maturity AFS securities, net of allowance for credit losses, and trading and
equity securities	$	127,674		100.0%	$	123,546		100.0%

Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	104,174		96.1%	$	105,177		95.9%
Trading securities		4,072		3.8%		4,170		3.8%
Equity securities		132		0.1%		285		0.3%
Total fixed maturity AFS, trading and equity securities	$	108,378		100.0%	$	109,632		100.0%

Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				95.9%				96.4%
Below investment grade				4.1%				3.6%










Page 22


Lincoln Financial Group
Realized Gain (Loss), After-DAC
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	53	$	48	$	51	$	49	$	51	-3.8%	$	208	$	199	-4.3%
Total excluded realized gain (loss)		(523)		(229)		(53)		36		(166)	68.3%		(721)		(411)	43.0%
Total realized gain (loss), pre-tax	$	(470)	$	(181)	$	(2)	$	85	$	(115)	75.5%	$	(513)	$	(212)	58.7%

Components of Excluded Realized Gain (Loss), After-Tax
Credit loss benefit (expense) on mortgage loans on
real estate	$	(6)	$	17	$	8	$	28	$	26	NM	$	(85)	$	79	192.9%
Credit loss benefit (expense) on other financial assets		(2)		(1)		(3)		(9)		5	NM		(20)		(8)	60.0%
Realized gain (loss) related to certain financial assets		(7)		1		(5)		(4)		(6)	14.3%		(35)		(14)	60.0%
Realized gain (loss) on equity securities		13		8		16		3		4	-69.2%		4		32	NM
Realized gain (loss) on the mark-to-market on certain
instruments		2		19		(2)		8		34	NM		33		60	81.8%
Realized gain (loss) related to financial assets, after-tax		-		44		14		26		63	NM		(103)		149	244.7%
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged and benefit ratio unlocking		(9)		(42)		13		(4)		(78)	NM		(564)		(109)	80.7%
GLB non-performance risk component		(240)		(144)		(1)		(2)		(47)	80.4%		293		(195)	NM
Total variable annuity net derivative results		(249)		(186)		12		(6)		(125)	49.8%		(271)		(304)	-12.2%
Indexed annuity forward-starting option		12		17		8		(3)		7	-41.7%		(2)		26	NM
Excluded realized gain (loss), including
benefit ratio unlocking, after-tax		(237)		(125)		34		17		(55)	76.8%		(376)		(129)	65.7%
Less: benefit ratio unlocking, after-tax		177		55		77		(12)		77	-56.5%		194		196	-30.0%
Total excluded realized gain (loss), after-tax	$	(414)	$	(180)	$	(43)	$	29	$	(132)	68.1%	$	(570)	$	(325)	9.1%












Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)

	For the Three Months Ended											For the Twelve Months Ended
	12/31/20		3/31/21		6/30/21		9/30/21		12/31/21		Change	12/31/20		12/31/21		Change
Revenues
Total revenues	$	4,135	$	4,534	$	4,851	$	5,241	$	4,604	11.3%	$	17,439	$	19,230	10.3%
Less:
Excluded realized gain (loss)		(523)		(229)		(53)		36		(166)	68.3%		(721)		(411)	43.0%
Amortization of DFEL associated with
benefit ratio unlocking		3		1		1		-		1	-66.7%		(2)		2	200.0%
Adjusted operating revenues	$	4,655	$	4,762	$	4,903	$	5,205	$	4,769	2.4%	$	18,162	$	19,639	8.1%

Net Income
Net income (loss)	$	143	$	225	$	642	$	318	$	220	53.8%	$	499	$	1,405	181.6%
Less:
Excluded realized gain (loss), after-tax		(414)		(180)		(43)		29		(132)	68.1%		(570)		(325)	43.0%
Benefit ratio unlocking, after-tax		177		55		77		(12)		77	-56.5%		194		196	1.0%
Net impact from the Tax Cuts and Jobs Act		37		-		-		-		-	-100.0%		37		-	-100.0%
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		(3)		-		-		-		(11)	NM		(15)		(11)	26.7%
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		(6)		-	NM		(12)		(6)	50.0%
Total adjustments		(203)		(125)		34		11		(66)	67.5%		(366)		(146)	60.1%
Adjusted income (loss) from operations	$	346	$	350	$	608	$	307	$	286	-17.3%	$	865	$	1,551	79.3%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	0.74	$	1.16	$	3.34	$	1.68	$	1.20	62.2%	$	2.56	$	7.43	190.2%
Less:
Excluded realized gain (loss), after-tax		(2.12)		(0.94)		(0.22)		0.15		(0.72)	66.0%		(2.93)		(1.71)	41.6%
Benefit ratio unlocking, after-tax		0.91		0.28		0.39		(0.06)		0.42	-53.8%		0.99		1.03	4.0%
Net impact from the Tax Cuts and Jobs Act		0.19		-		-		-		-	-100.0%		0.19		-	-100.0%
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		(0.02)		-		-		-		(0.06)	NM		(0.08)		(0.06)	25.0%
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		(0.03)		-	NM		(0.06)		(0.03)	50.0%
Adjusted income (loss) from operations	$	1.78	$	1.82	$	3.17	$	1.62	$	1.56	-12.4%	$	4.45	$	8.20	84.3%




Page 24


Indiana	1-6028	35-1140070
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange


Exhibit Number	Description
99.1	Press release dated February 2, 2022, announcing Lincoln National Corporation’s financial results for the quarter and full year ended December 31, 2021.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended December 31, 2021.


				LINCOLN NATIONAL CORPORATION

				By	/s/ Randal J. Freitag
				Name:	Randal J. Freitag
				Title:	Executive Vice President, Chief Financial
					Officer and Interim Chief Accounting Officer



	For the
(in millions, except per share data)	Three Months Ended
	December 31,
	2021		2020

Revenues	$	4,604	$	4,135

Net Income (Loss)	$	220	$	143
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	220	$	143

Earnings (Loss) Per Common Share – Basic	$	1.22	$	0.74
Earnings (Loss) Per Common Share – Diluted		1.20		0.74

Average Shares – Basic	180,519,527		192,896,621
Average Shares – Diluted	183,246,238		193,898,721

	For the
	Year Ended
	December 31,
	2021		2020

Revenues	$	19,230	$	17,439

Net Income (Loss)	$	1,405	$	499
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	1,405	$	499

Earnings (Loss) Per Common Share – Basic	$	7.50	$	2.58
Earnings (Loss) Per Common Share – Diluted		7.43		2.56

Average Shares – Basic	187,359,884		193,610,225
Average Shares – Diluted	189,098,767		195,772,374



(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.


	As of or For the				As of or For the
	Three Months Ended				Year Ended
	December 31,				December 31,
(in millions, except per share data)	2021		2020		2021		2020
Net Income (Loss)	$	220	$	143	$	1,405	$	499
Net Income (Loss) Available to Common Stockholders		220		143		1,405		499
Net Income (Loss) per Diluted Share Available to Common Stockholders		1.20		0.74		7.43		2.56
Revenues		4,604		4,135		19,230		17,439
Adjusted Income (Loss) from Operations		286		346		1,551		865
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders		1.56		1.78		8.20		4.45
Average Diluted Shares		183.2		193.9		189.1		195.8
Return on Equity (ROE), Including Accumulated Other Comprehensive
Income (AOCI) (Net Income)		4.2%		2.6%		6.7%		2.5%
Adjusted Operating ROE, Excluding AOCI (Adjusted Income from Operations)		8.1%		10.1%		11.0%		6.3%
Book Value per Share (BVPS), Including AOCI	$	114.41	$	118.02	$	114.41	$	118.02
Book Value per Share, Excluding AOCI		78.05		71.59		78.05		71.59



	As of December 31,
	2021		2020
Book value per share, including AOCI	$	114.41	$	118.02
Per share impact of AOCI		36.36		46.43
Book value per share, excluding AOCI		78.05		71.59