8-K - LNC - Equibles

UNITED STATES‎SECURITIES AND EXCHANGE COMMISSION‎Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

November 3, 2021

Date of Report (Date of earliest event reported)

Lincoln National Corporation

(Exact name of registrant as specified in its charter)

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

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 583-1400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

__________________________________

Securities registered pursuant to Section 12(b) of the Act:

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

__________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

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Item 2.02. Results of Operations and Financial Condition.

On November 3, 2021, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2021, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The Company’s statistical supplement for the quarter ended September 30, 2021, is attached as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

The following exhibits are being furnished with this Form 8-K.

Exhibit<br><br>Number	Description
99.1	Press release dated November 3, 2021, announcing Lincoln National Corporation’s financial results for the quarter ended September 30, 2021.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended September 30, 2021.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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

Date: November 3, 2021

		3Q21 - Press Release

FOR IMMEDIATE RELEASE

Lincoln Financial Group reports THIRD Quarter 2021 Results

AND announces increase to dividend

_______________________________________ | v | Net income EPS of $1.68 and adjusted operating EPS of $1.62 | | --- | --- | | v | Adjusted operating EPS included $(1.05) from notable items, elevated pandemic-related claims experience and above targeted alternative investment income | | --- | --- | | v | BVPS, including AOCI, of $113.77, up 2%; BVPS, excluding AOCI, of $76.96, up 8% | | --- | --- | | v | $279 million of capital returned to shareholders, including $200 million in share repurchases | | --- | --- |

Radnor, PA, November 3, 2021 – Lincoln Financial Group (NYSE: LNC) today reported net income for the third quarter of 2021 of $318 million, or $1.68 per diluted share available to common stockholders, compared to net income in the third quarter of 2020 of $398 million, or $2.01 per diluted share available to common stockholders. Third quarter adjusted income from operations was $307 million, or $1.62 per diluted share available to common stockholders, compared to adjusted loss from operations of $(133) million, or $(0.72) per diluted share available to common stockholders, in the third quarter of 2020.

The current quarter’s adjusted operating results included net unfavorable notable items of $108 million, or $0.57 per share. These notable items were primarily related to legal expenses and also included impacts from the company’s annual review of DAC and reserve assumptions. The prior-year quarter included net unfavorable notable items of $552 million, or $2.84 per share, primarily related to the company’s annual review of DAC and reserve assumptions.

“Third quarter underlying results were solid, and our earnings power remains strong,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “Lincoln continued to execute on its proven strategy to drive earnings growth including continued focus on increasing sales, pricing discipline, ongoing expense management and share buybacks. We completed $200 million in share repurchases this quarter and recently commenced incremental repurchases associated with our block transaction through an accelerated share repurchase program. This, combined with formally communicating our new cost savings initiative and the increase in the dividend approved by our board, reflects our ongoing commitment to our shareholders and confidence in the future.”

The board of directors of Lincoln National Corporation approved raising the quarterly dividend on its common shares to $0.45 per share. The dividend represents a 7% increase over the prior-year level. The increased dividend on common stock will be payable on February 1, 2022 to shareholders of record at the close of business on January 10, 2022.

| | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | As of or For the | | | | As of or For the | | | | | | Three Months Ended | | | | Nine Months Ended | | | | | | September 30, | | | | September 30, | | | | | (in millions, except per share data) | 2021 | | 2020 | | 2021 | | 2020 | | | Net Income (Loss) | $ | 318 | $ | 398 | $ | 1,185 | $ | 356 | | Net Income (Loss) Available to Common Stockholders | | 318 | | 393 | | 1,185 | | 340 | | Net Income (Loss) per Diluted Share Available to Common Stockholders | | 1.68 | | 2.01 | | 6.19 | | 1.74 | | Revenues | | 5,241 | | 5,361 | | 14,627 | | 13,303 | | Adjusted Income (Loss) from Operations | | 307 | | (133) | | 1,265 | | 519 | | Adjusted Income (Loss) from Operations per Diluted Share Available to | | | | | | | | | | Common Stockholders (1) | | 1.62 | | (0.72) | | 6.62 | | 2.57 | | Average Diluted Shares | | 189.1 | | 195.4 | | 191.3 | | 195.9 | | Return on Equity (ROE), Including Accumulated Other Comprehensive | | | | | | | | | | Income (AOCI) (Net Income) | | 5.9% | | 7.5% | | 7.5% | | 2.5% | | Adjusted Operating ROE, Excluding AOCI (Adjusted Income from Operations) | | 8.6% | | -3.9% | | 12.0% | | 5.1% | | Book Value per Share (BVPS), Including AOCI | $ | 113.77 | $ | 111.51 | $ | 113.77 | $ | 111.51 | | Book Value per Share, Excluding AOCI | | 76.96 | | 71.10 | | 76.96 | | 71.10 | 1 Due to reporting an adjusted loss from operations for the three months ended September 30, 2020, basic shares were used in the adjusted diluted EPS calculation for that period as the use of diluted shares would have resulted in a lower loss per share.

Operating Highlights – Third Quarter 2021 vs. Third Quarter 2020 | · | Operating revenues increased in all four business segments | | --- | --- | | · | Annuities sales of $2.7 billion, up 7% | | --- | --- | | · | Retirement Plan Services average account values of $97 billion, up 21% | | --- | --- | | · | Life Insurance average account values of $60 billion, up 9% | | --- | --- | | · | Group Protection insurance premiums of $1.1 billion, up 5% | | --- | --- |

In addition to the net unfavorable notable items of $0.57, this quarter’s adjusted operating EPS results included an estimated unfavorable impact of $0.95 related to the pandemic and a favorable impact of $0.47 from alternative investment income above targeted levels.

Third Quarter 2021 – Segment Results

Annuities

Annuities reported income from operations of $338 million, up 72% compared to the prior-year quarter. Impacts from the company’s annual review of DAC and reserve assumptions were unfavorable in both periods. Not including the impacts from the company’s annual reviews of DAC and reserve assumptions, income from operations increased from the prior-year period primarily driven by higher account values from strong equity market performance.

Total annuity deposits of $2.7 billion were up 7% from the prior-year quarter as sales growth in fixed annuities and variable annuities with guaranteed living benefits more than offset a decline in variable annuity sales without guaranteed living benefits. Despite these movements in sales, the percentage of total annuities end-of-period account values from variable annuities without guaranteed living benefits continues to grow as it has done for the past several quarters.

Net outflows were $841 million in the quarter. Average account values for the quarter of $170 billion were up 17% over the prior-year quarter, with 49% of total annuities account values without guaranteed living benefits, up 2 percentage points over the prior-year period.

The current quarter included net unfavorable notable items of $5 million related to the company’s annual review of DAC and reserve assumptions while prior-year results included net unfavorable notable items of $101 million related to the company’s annual review of DAC and reserve assumptions.

Retirement Plan Services

Retirement Plan Services reported income from operations of $60 million, up 20% compared to the prior-year quarter with the increase driven by higher account values from strong equity market performance, favorable returns within the company’s alternative investment portfolio, and continued expense efficiency.

Total deposits for the quarter of $2.4 billion were up 2% compared to the prior-year quarter driven by growth in recurring deposits that more than offset a decline in first-year sales.

Net outflows totaled $21 million for the quarter while over the trailing twelve months, net flows were positive $1.2 billion. Average account values for the quarter of $97 billion were up 21% over the prior-year quarter.

There were no notable items in the current quarter while prior-year results included net unfavorable notable items of $3 million related to the company’s annual review of DAC and reserve assumptions.

Life Insurance

Life Insurance reported income from operations of $93 million compared to a loss from operations of $(311) million in the prior-year quarter. Impacts from the company’s annual review of DAC and reserve assumptions were unfavorable in both periods, and the current quarter also included a legal expense. Not including the impacts from the company’s annual reviews of DAC and reserve assumptions and the legal expense, income from operations increased from the prior-year period driven by favorable returns within the company’s alternative investment portfolio, which were partially offset by unfavorable mortality results.

While total Life Insurance sales were $166 million compared to $186 million in the prior-year quarter, sales increased 32% sequentially.

Average Life Insurance in-force of $935 billion grew 7% over the prior-year quarter, and average account values of $60 billion increased 9% over the same period.

The current quarter included net unfavorable notable items of $45 million related to the company’s annual review of DAC and reserve assumptions and legal expenses while prior-year results included net unfavorable notable items of $440 million related to the company’s annual review of DAC and reserve assumptions.

Group Protection

Group Protection reported a loss from operations of $32 million in the quarter compared to income from operations of $6 million in the prior-year quarter. Not including the impact from the annual review of reserve assumptions, this decrease was primarily driven by higher mortality impacts related to the pandemic.

The total loss ratio was 88% in the current quarter compared to 83% in the prior-year quarter with the increase driven primarily by unfavorable pandemic-related life mortality.

Group Protection sales were $48 million in the quarter in line with $49 million in the prior-year quarter. Employee-paid sales represented 50% of total sales. Insurance premiums of $1.1 billion in the quarter were up 5% compared to the prior-year quarter.

The current quarter included net favorable notable items of $16 million related to the company’s annual review of reserve assumptions while prior-year results included net unfavorable notable items of $3 million related to the company’s annual review of reserve assumptions.

Other Operations

Other Operations reported a loss from operations of $(152) million versus a loss of $(74) million in the prior-year quarter.

The current quarter included net unfavorable notable items of $74 million related to legal expenses in the current quarter while the prior-year quarter included net unfavorable notable items of $5 million related to elevated expenses.

Realized Gains and Losses / Impacts to Net Income

Realized gains/losses and impacts to net income (after-tax) in the quarter were primarily driven by: | · | A $26 million realized gain related to financial assets. | | --- | --- | | · | A $6 million loss from variable annuity net derivative results. | | --- | --- | | · | A $6 million loss on modifications or early extinguishment of debt. | | --- | --- | | · | A $3 million loss from indexed annuity forward-starting options. | | --- | --- |

Unrealized Gains and Losses

The company reported a net unrealized gain of $14.6 billion, pre-tax, on its available-for-sale securities at September 30, 2021. This compares to a net unrealized gain of $16.4 billion, pre-tax, at September 30, 2020, with the year-over-year decrease primarily driven by higher treasury rates.

Share Count

The quarter’s average diluted share count of 189.1 million was down 3% from the third quarter of 2020, the result of repurchasing 8.3 million shares of stock at a cost of $505 million since September 30, 2020.

Book Value

As of September 30, 2021, book value per share, including AOCI, increased 2% from the prior-year period to $113.77. Book value per share, excluding AOCI, increased 8% from the prior-year period to $76.96.

Spark Initiative

The company is formally communicating its new expense savings initiative, the Spark Initiative, this quarter, and projected net recurring benefits, one-time investments and net impact are outlined in the table below. These numbers reflect the combination of the Spark Initiative and the balance of our existing strategic digitization initiative as of the end of 2020. The strategic digitization initiative achieved net recurring benefits of $80 million pre-tax/pre-DAC as of year-end 2020.

Lincoln National Corporation

Spark Initiative & Balance of Strategic Digitization Initiative

| (in millions, pre-tax/pre-DAC) | 20211 | | 20222 | | 20233 | | 2024 | | 2025+<br> <br>Run Rate | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Net recurring benefits | $ | 50 | $ | 100 – 120 | $ | 170 – 190 | $ | 260 – 280 | | | | One-time investments | | (75) | | (145 - 165) | | (90 – 110) | | (40 – 60) | | | | Net impact | $ | (25) | $ | (25 - 65) | $ | 60-100 | $ | 200-240 | $ | 260-300 | | (1) | 2021 includes ~$20M of net recurring benefits and ~$15M of one-time investments from the strategic digitization initiative. | | --- | --- | | (2) | 2022 includes ~$30M of net recurring benefits and ~$5M of one-time investments from the strategic digitization initiative. | | --- | --- | | (3) | 2023 and beyond includes ~$35M of net recurring benefits from the strategic digitization initiative. | | --- | --- |

The tables attached to this release define and reconcile the non-GAAP measures adjusted income from operations, adjusted operating ROE and BVPS, excluding AOCI, to net income, ROE and BVPS, including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s third quarter 2021 statistical supplement available on its website, http://www.lfg.com/investor.

Conference Call Information

Lincoln Financial Group will discuss the company’s third quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, November 4, 2021.

Webcast Participants

The conference call will be broadcast live through the company website at www.lfg.com/webcast. Please log on at least fifteen minutes prior to the call to register and download any necessary streaming media software.

Phone/Question and Answer Session Participants

Due to changes implemented by our conference call provider, you must now pre-register to participate via phone at http://www.directeventreg.com/registration/event/1045829. You will receive a confirmation email that includes a dial-in number and unique Registrant ID. For security purposes, please do not share your Registrant ID.

Replay

A replay of the call will be available by 1:00 p.m. Eastern Time on November 4, 2021 at www.lfg.com/webcast. Audio replay will be available from 1:00 p.m. Eastern Time on November 4, 2021 through 12:00 p.m. Eastern Time on November 11, 2021. To access the re-broadcast, dial: (855) 859-2056 (Domestic) or (404) 537-3406 (International). Enter conference code 1045829.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $322 billion in end-of-period account values as of

September 30, 2021. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Explanatory Notes on Use of Non-GAAP Measures

Management believes that adjusted income from operations (adjusted operating income), adjusted operating return on equity, adjusted operating revenues, and adjusted operating EPS better explain the results of the company’s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company’s current business because the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management also believes that using book value excluding accumulated other comprehensive income (“AOCI”) enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. 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.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Reports for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: www.lfg.com/investor.

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (including and excluding average goodwill within average equity), excluding AOCI, using annualized adjusted income (loss) from operations are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (“ROE”), as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), revenues and ROE, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

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

| · | Realized gains and losses associated with the following (“excluded realized gain (loss)”): | | --- | --- | | o | Sales or disposals and impairments of financial assets; | | --- | --- | | o | Changes in the fair value of equity securities; | | --- | --- | | o | 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”); | | --- | --- | | o | Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities; | | --- | --- | | o | 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; | | --- | --- | | o | Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and | | --- | --- | | o | 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; | | --- | --- | | · | Acquisition and integration costs related to mergers and acquisitions; 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

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 deferred front-end loads (“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. | | --- | --- |

Adjusted Operating Return on Equity

Adjusted operating return on equity measures how efficiently we generate profits from the resources provided by our net assets. | · | It is calculated by dividing annualized adjusted income (loss) from operations by average equity, excluding accumulated other comprehensive income (loss) ("AOCI"). | | --- | --- | | · | Management evaluates return on equity by both including and excluding average goodwill within average equity. | | --- | --- |

Definition of Notable Items

Adjusted income (loss) from operations, excluding notable items, is a non-GAAP measure that excludes items which, in management’s view, do not reflect the company’s normal, ongoing operations. | · | We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition. | | --- | --- |

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI is calculated based upon a non-GAAP financial measure. | · | It is calculated by dividing (a) stockholders' equity, excluding AOCI by (b) common shares outstanding. | | --- | --- | | · | We provide book value per share excluding AOCI to enable investors to analyze the amount of our net worth that is primarily attributable 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. | | --- | --- |

Special Note

Sales

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 – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received; | | --- | --- | | · | Term – 100% of annualized first-year premiums; and | | --- | --- | | · | Group Protection – annualized first-year premiums from new policies. | | --- | --- |

Lincoln National Corporation

Reconciliation of Net Income to Adjusted Income from Operations

| | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | For the | | | | For the | | | | | (in millions, except per share data) | Three Months Ended | | | | Nine Months Ended | | | | | | September 30, | | | | September 30, | | | | | | 2021 | | 2020 | | 2021 | | 2020 | | | | | | | | | | | | | Total Revenues | $ | 5,241 | $ | 5,361 | $ | 14,627 | $ | 13,303 | | Less: | | | | | | | | | | Excluded realized gain (loss) | | 36 | | 572 | | (245) | | (198) | | Amortization of DFEL associated with benefit ratio unlocking | | - | | 1 | | 2 | | (6) | | Total Adjusted Operating Revenues | $ | 5,205 | $ | 4,788 | $ | 14,870 | $ | 13,507 | | | | | | | | | | | | Net Income (Loss) Available to Common | | | | | | | | | | Stockholders – Diluted | $ | 318 | $ | 393 | $ | 1,185 | $ | 340 | | Less: | | | | | | | | | | Adjustment for deferred units of LNC stock in our | | | | | | | | | | deferred compensation plans (1) | | - | | (5) | | - | | (16) | | Net Income (Loss) | | 318 | | 398 | | 1,185 | | 356 | | Less: | | | | | | | | | | Excluded realized gain (loss), after-tax | | 29 | | 452 | | (193) | | (156) | | Benefit ratio unlocking, after-tax | | (12) | | 83 | | 119 | | 17 | | Acquisition and integration costs related to mergers | | | | | | | | | | and acquisitions, after-tax | | - | | (4) | | - | | (12) | | Gain (loss) on modification or early extinguishment | | | | | | | | | | of debt, after-tax | | (6) | | - | | (6) | | (12) | | Total adjustments | | 11 | | 531 | | (80) | | (163) | | Adjusted Income (Loss) from Operations | $ | 307 | $ | (133) | $ | 1,265 | $ | 519 | | | | | | | | | | | | Earnings (Loss) Per Common Share – Diluted (2) | | | | | | | | | | Net income (loss) | $ | 1.68 | $ | 2.01 | $ | 6.19 | $ | 1.74 | | Adjusted income (loss) from operations | | 1.62 | | (0.72) | | 6.62 | | 2.57 | | | | | | | | | | | | Average Stockholders' Equity | | | | | | | | | | Average equity, including average AOCI | $ | 21,458 | $ | 21,140 | $ | 21,091 | $ | 19,309 | | Average AOCI | | 7,164 | | 7,566 | | 7,043 | | 5,689 | | Average equity, excluding AOCI | | 14,294 | | 13,574 | | 14,048 | | 13,620 | | Average goodwill | | 1,778 | | 1,778 | | 1,778 | | 1,778 | | Average equity, excluding AOCI and goodwill | $ | 12,516 | $ | 11,796 | $ | 12,270 | $ | 11,842 | | | | | | | | | | | | Return on Equity, Including AOCI | | | | | | | | | | Net income (loss) with average equity including goodwill | | 5.9% | | 7.5% | | 7.5% | | 2.5% | | | | | | | | | | | | Adjusted Operating Return on Equity, Excluding AOCI | | | | | | | | | | Adjusted income (loss) from operations with average equity | | | | | | | | | | including goodwill | | 8.6% | | -3.9% | | 12.0% | | 5.1% | | Adjusted income (loss) from operations with average equity | | | | | | | | | | excluding goodwill | | 9.8% | | -4.5% | | 13.7% | | 5.8% | | | | | | | | | | | | (1) If the effect of equity classification would result in a more dilutive EPS, the numerator used in the calculation of our diluted EPS is | | | | | | | | | | adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans. | | | | | | | | | | | | | | | | | | | | (2) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted | | | | | | | | | | diluted EPS calculations, as the use of diluted shares would result in a lower loss per share. | | | | | | | | | | | | | | | | | | |

Lincoln National Corporation

Reconciliation of Book Value per Share

| | | | | | | --- | --- | --- | --- | --- | | | | | | | | | As of September 30, | | | | | | 2021 | | 2020 | | | Book value per share, including AOCI | $ | 113.77 | $ | 111.51 | | Per share impact of AOCI | | 36.81 | | 40.41 | | Book value per share, excluding AOCI | | 76.96 | | 71.10 |

Lincoln National Corporation

Digest of Earnings

| | | | | | | --- | --- | --- | --- | --- | | | | | | | | | For the | | | | | (in millions, except per share data) | Three Months Ended | | | | | | September 30, | | | | | | 2021 | | 2020 | | | | | | | | | Revenues | $ | 5,241 | $ | 5,361 | | | | | | | | Net Income (Loss) | $ | 318 | $ | 398 | | Adjustment for deferred units of LNC stock in our | | | | | | deferred compensation plans (1) | | - | | (5) | | Net Income (Loss) Available to Common | | | | | | Stockholders – Diluted | $ | 318 | $ | 393 | | | | | | | | Earnings (Loss) Per Common Share – Basic | $ | 1.70 | $ | 2.06 | | Earnings (Loss) Per Common Share – Diluted | | 1.68 | | 2.01 | | | | | | | | Average Shares – Basic | 187,276,859 | | 193,250,727 | | | Average Shares – Diluted | 189,091,067 | | 195,356,425 | | | | | | | | | | For the | | | | | | Nine Months Ended | | | | | | September 30, | | | | | | 2021 | | 2020 | | | | | | | | | Revenues | $ | 14,627 | $ | 13,303 | | | | | | | | Net Income (Loss) | $ | 1,185 | $ | 356 | | Adjustment for deferred units of LNC stock in our | | | | | | deferred compensation plans (1) | | - | | (16) | | Net Income (Loss) Available to Common | | | | | | Stockholders – Diluted | $ | 1,185 | $ | 340 | | | | | | | | Earnings (Loss) Per Common Share – Basic | $ | 6.25 | $ | 1.84 | | Earnings (Loss) Per Common Share – Diluted | | 6.19 | | 1.74 | | | | | | | | Average Shares – Basic | 189,665,059 | | 193,849,829 | | | Average Shares – Diluted | 191,258,501 | | 195,940,941 | | | | | | | | | | | | | | | | | | | | | (1) If the effect of equity classification would result in a more dilutive EPS, the numerator used in the calculation of our diluted EPS is | | | | | | adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our deferred compensation plans. | | | | | | | | | | | | | | | | |

Forward Looking Statements — Cautionary Language

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

| · | The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition; | | --- | --- | | · | Further deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels and claims experience; | | --- | --- | | · | Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures; | | --- | --- | | · | The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations; | | --- | --- | | · | Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees; | | --- | --- | | · | The impact of U.S. federal tax reform legislation on our business, earnings and capital; | | --- | --- | | · | The impact of Regulation Best Interest or other regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker-dealers that could affect our distribution model; | | --- | --- | | · | Actions taken by reinsurers to raise rates on in-force business; | | --- | --- | | · | Further declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, estimated gross profits and demand for our products; | | --- | --- | | · | Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities; | | --- | --- | | · | The impact of the implementation of the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act relating to the regulation of derivatives transactions; | | --- | --- | | · | The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings; | | --- | --- | | · | A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”); and an increase in liabilities related to guaranteed benefit features of our subsidiaries’ variable annuity products; | | --- | --- | | · | Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates; | | --- | --- | | · | A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings; | | --- | --- | | · | Changes in accounting principles that may affect our business, results of operations and financial condition; | | --- | --- | | · | Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition; | | --- | --- | | · | Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity; | | --- | --- | | · | Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets; | | --- | --- | | · | Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems; | | --- | --- | | · | The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items; | | --- | --- | | · | The adequacy and collectability of reinsurance that we have obtained; | | --- | --- | | · | Future pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance; | | --- | --- | | · | Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products; | | --- | --- | | · | The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and | | --- | --- | | · | The unanticipated loss of key management, financial planners or wholesalers. | | --- | --- |

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

The reporting of Risk Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

		3Q21 - Stat Supp

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	Lincoln Financial Group
	Table of Contents


	Analyst Coverage and Credit Ratings	1
	Notes	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 | | | | | | | | | Analyst Coverage and Credit Ratings | | | | | | | | | | | | | | | | | | | | | | | | | | | Firm | Analyst | | | | Phone Number | | | | Autonomous Research U.S., L.P. | Erik Bass | | | | | 646-561-6248 | | | Bank of America Merrill Lynch | Joshua Shanker | | | | | 646-855-5716 | | | Barclays | Tracy Benguigui | | | | | 212-526-1561 | | | Credit Suisse | Andrew Kligerman | | | | | 212-325-5069 | | | Dowling & Partners | Humphrey Lee | | | | | 860-676-7324 | | | Evercore | Thomas Gallagher | | | | | 212-446-9439 | | | J.P. Morgan Securities | Jimmy Bhullar | | | | | 212-622-6397 | | | Keefe, Bruyette & Woods, Inc. | Ryan Krueger | | | | | 860-722-5930 | | | Morgan Stanley | Nigel Dally | | | | | 212-761-4132 | | | Piper Sandler & Co. | John Barnidge | | | | | 312-281-3412 | | | RBC Capital Markets | Mark Dwelle | | | | | 804-782-4008 | | | UBS | Brian Meredith | | | | | 212-713-2492 | | | Wells Fargo | Elyse Greenspan | | | | | 212-214-8031 | | | | | | | | | | | | This list is provided for informational purposes only. Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these | | | | | | | | | or any other analysts. | | | | | | | | | | | | | | | | | | | | Ratings as of November 3, 2021 | | | | | | | | | | | | | Standard | | | | | A.M Best | Fitch | Moody's | | & Poor's | | | Senior Debt Ratings | | a- | BBB+ | Baa1 | | A- | | | Financial Strength Ratings | | | | | | | | | The Lincoln National Life Insurance Company | | A+ | A+ | A1 | | AA- | | | First Penn-Pacific Life Insurance Company | | A | A+ | A1 | | A- | | | Lincoln Life & Annuity Company of New York | | A+ | A+ | A1 | | AA- | | | | | | | | | | | | Investor Inquiries May Be Directed To: | | | | | | | | | Albert Copersino, Vice President, Investor Relations | | | | | | | | | Email: Albert.Copersino@lfg.com | | | | | | | | | Phone: 203-257-4493 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 1 | | | | | | |

|  |  |

| --- | --- | | | 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. | | | • If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market | | | adjustment for deferred units of LNC stock in our deferred compensation plans. 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 – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess | | | premium received; | | | • 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 2a |


	Lincoln Financial Group
	Notes


	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.

	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;
	• Acquisition and integration costs related to mergers and acquisitions; 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.




	Page 2b


	Lincoln Financial Group
	Notes


	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.

	Due to reporting a net loss from operations for the three months ended September 30, 2020, basic shares were used in the diluted earnings per share calculation as the use of diluted shares would have
	resulted in a lower loss per share.

	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 November 3, 2021, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

























	Page 2c


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Revenues
Insurance premiums	$	1,293	$	1,364	$	1,406	$	1,398	$	1,394	7.8%	$	4,008	$	4,198	4.7%
Fee income		1,815		1,559		1,592		1,670		1,996	10.0%		4,812		5,258	9.3%
Net investment income		1,458		1,505		1,510		1,584		1,576	8.1%		4,005		4,670	16.6%
Realized gain (loss)		629		(470)		(181)		(2)		85	-86.5%		(43)		(97)	NM
Amortization of deferred gains on business
sold through reinsurance		11		9		9		9		9	-18.2%		32		27	-15.6%
Other revenues		155		168		198		192		181	16.8%		489		571	16.8%
Total revenues		5,361		4,135		4,534		4,851		5,241	-2.2%		13,303		14,627	10.0%

Expenses
Interest credited		732		734		737		737		750	2.5%		2,189		2,224	1.6%
Benefits		2,484		1,966		2,226		1,930		2,122	-14.6%		6,710		6,278	-6.4%
Commissions and other expenses		1,599		1,258		1,231		1,326		1,906	19.2%		3,807		4,462	17.2%
Interest and debt expense		66		65		65		65		73	10.6%		218		204	-6.4%
Strategic digitization expense		20		23		13		21		22	10.0%		45		57	26.7%
Total expenses		4,901		4,046		4,272		4,079		4,873	-0.6%		12,969		13,225	2.0%
Income (loss) before taxes		460		89		262		772		368	-20.0%		334		1,402	NM
Federal income tax expense (benefit)		62		(54)		37		130		50	-19.4%		(22)		217	NM
Net income (loss)		398		143		225		642		318	-20.1%		356		1,185	232.9%
Adjustment for LNC stock units in our
deferred compensation plans		(5)		-		-		-		-	100.0%		(16)		-	100.0%
Net income (loss) available to common
stockholders – diluted	$	393	$	143	$	225	$	642	$	318	-19.1%	$	340	$	1,185	248.5%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	2.01	$	0.74	$	1.16	$	3.34	$	1.68	-16.4%	$	1.74	$	6.19	255.7%

ROE, including AOCI
Net income (loss)		7.5%		2.6%		4.3%		12.4%		5.9%			2.5%		7.5%






Page 3


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

	As of
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	98,717	$	102,789	$	96,570	$	101,003	$	100,862	2.2%
U.S. government bonds		496		484		444		444		443	-10.7%
State and municipal bonds		6,774		6,921		6,625		6,919		6,901	1.9%
Foreign government bonds		436		470		485		464		512	17.4%
Residential mortgage-backed securities		3,203		3,076		3,077		3,027		2,935	-8.4%
Commercial mortgage-backed securities		1,430		1,505		1,516		1,578		1,594	11.5%
Asset-backed securities		6,590		7,184		7,996		8,177		8,303	26.0%
Hybrid and redeemable preferred securities		606		615		600		603		535	-11.7%
Total fixed maturity AFS securities, net of allowance for credit losses		118,252		123,044		117,313		122,215		122,085	3.2%
Trading securities		4,633		4,501		4,365		4,232		4,191	-9.5%
Equity securities		122		129		123		174		243	99.2%
Mortgage loans on real estate, net of allowance for credit losses		16,541		16,763		17,255		17,586		17,730	7.2%
Policy loans		2,527		2,426		2,502		2,410		2,379	-5.9%
Derivative investments		3,236		3,109		3,453		4,548		4,828	49.2%
Other investments		4,204		3,984		3,548		3,950		4,069	-3.2%
Total investments		149,515		153,956		148,559		155,115		155,525	4.0%
Cash and invested cash		2,595		1,708		1,350		2,389		2,614	0.7%
DAC and VOBA		6,307		5,812		7,665		6,261		5,965	-5.4%
Premiums and fees receivable		498		486		653		583		584	17.3%
Accrued investment income		1,320		1,257		1,301		1,254		1,297	-1.7%
Reinsurance recoverables, net of allowance for credit losses		16,610		16,496		16,289		15,981		15,729	-5.3%
Funds withheld reinsurance assets		539		530		528		527		526	-2.4%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		15,667		15,960		17,298		17,465		17,367	10.9%
Separate account assets		152,975		167,965		171,339		178,795		175,667	14.8%
Total assets	$	347,804	$	365,948	$	366,760	$	380,148	$	377,052	8.4%
		`




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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | Consolidated Balance Sheets | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of | | | | | | | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | | | LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | Future contract benefits | $ | 40,089 | $ | 40,814 | $ | 39,591 | $ | 40,250 | $ | 40,641 | 1.4% | | | Other contract holder funds | | 102,568 | | 105,405 | | 107,002 | | 108,778 | | 109,297 | 6.6% | | | Short-term debt | | - | | - | | 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 | | 866 | 0.0% | | | Financial | | 5,848 | | 5,816 | | 5,428 | | 5,468 | | 5,457 | -6.7% | | | Reinsurance related embedded derivatives | | 334 | | 392 | | 244 | | 328 | | 304 | -9.0% | | | Funds withheld reinsurance liabilities | | 1,910 | | 1,946 | | 1,976 | | 2,027 | | 2,078 | 8.8% | | | Payables for collateral on investments | | 6,435 | | 6,222 | | 7,597 | | 8,199 | | 8,379 | 30.2% | | | Other liabilities | | 15,230 | | 13,823 | | 12,824 | | 13,392 | | 12,893 | -15.3% | | | Separate account liabilities | | 152,975 | | 167,965 | | 171,339 | | 178,795 | | 175,667 | 14.8% | | | Total liabilities | | 326,255 | | 343,249 | | 347,167 | | 358,403 | | 355,882 | 9.1% | | | | | | | | | | | | | | | | | Stockholders’ Equity | | | | | | | | | | | | | | Common stock | | 5,093 | | 5,082 | | 5,057 | | 5,021 | | 4,956 | -2.7% | | | Retained earnings | | 8,647 | | 8,686 | | 8,775 | | 9,245 | | 9,365 | 8.3% | | | AOCI: | | | | | | | | | | | | | | Unrealized investment gains (losses) | | 8,153 | | 9,209 | | 6,040 | | 7,756 | | 7,128 | -12.6% | | | Foreign currency translation adjustment | | (21) | | (12) | | (10) | | (10) | | (14) | 33.3% | | | Funded status of employee benefit plans | | (323) | | (266) | | (269) | | (267) | | (265) | 18.0% | | | Total AOCI | | 7,809 | | 8,931 | | 5,761 | | 7,479 | | 6,849 | -12.3% | | | Total stockholders’ equity | | 21,549 | | 22,699 | | 19,593 | | 21,745 | | 21,170 | -1.8% | | | Total liabilities and stockholders’ equity | $ | 347,804 | $ | 365,948 | $ | 366,760 | $ | 380,148 | $ | 377,052 | 8.4% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Income (Loss)
Net income (loss)	$	398	$	143	$	225	$	642	$	318	-20.1%	$	356	$	1,185	232.9%
Pre-tax adjusted income (loss) from operations		(212)		393		421		729		354	267.0%		541		1,504	178.0%
After-tax adjusted income (loss) from operations (1)		(133)		346		350		608		307	NM		519		1,265	143.7%
Adjusted operating tax rate		37.2%		12.0%		16.8%		16.5%		13.3%			4.1%		15.9%

Average Stockholders’ Equity
Average equity, including AOCI	$	21,140	$	22,124	$	21,146	$	20,669	$	21,458	1.5%	$	19,309	$	21,091	9.2%
Average AOCI		7,566		8,370		7,346		6,620		7,164	-5.3%		5,689		7,043	23.8%
Average equity, excluding AOCI	$	13,574	$	13,754	$	13,800	$	14,049	$	14,294	5.3%	$	13,620	$	14,048	3.1%

ROE, Excluding AOCI
Net income (loss)		11.7%		4.2%		6.5%		18.3%		8.9%			3.5%		11.2%
Adjusted income (loss) from operations		-3.9%		10.1%		10.2%		17.3%		8.6%			5.1%		12.0%

Per Share
Net income (loss) (diluted)	$	2.01	$	0.74	$	1.16	$	3.34	$	1.68	-16.4%	$	1.74	$	6.19	255.7%
Adjusted income (loss) from operations (diluted)		(0.72)		1.78		1.82		3.17		1.62	NM		2.57		6.62	157.6%
Dividends declared during the period		0.40		0.42		0.42		0.42		0.42	5.0%		1.20		1.26	5.0%

Book value, including AOCI	$	111.51	$	118.02	$	102.50	$	115.00	$	113.77	2.0%	$	111.51	$	113.77	2.0%
Per share impact of AOCI		40.41		46.43		30.14		39.55		36.81	-8.9%		40.41		36.81	-8.9%
Book value, excluding AOCI	$	71.10	$	71.59	$	72.36	$	75.45	$	76.96	8.2%	$	71.10	$	76.96	8.2%

Shares
Repurchased during the period		-		1.1		1.9		2.2		3.1	NM		3.8		7.2	89.5%
End-of-period – basic		193.3		192.3		191.1		189.1		186.1	-3.7%		193.3		186.1	-3.7%
End-of-period – diluted		195.3		193.7		192.5		191.4		188.1	-3.7%		195.3		188.1	-3.7%
Average for the period – diluted		195.4		193.9		193.1		192.2		189.1	-3.2%		195.9		191.3	-2.3%

(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)

											For the Nine Months Ended
		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Cash Returned to Common Stockholders
Shares repurchased	-	$	50	$	105	$	150	$	200	NM	$	225	$	455	102.2%
Common dividends	77		77		81		80		79	2.6%		233		240	3.0%
Total cash returned to common stockholders	77	$	127	$	186	$	230	$	279	262.3%	$	458	$	695	51.7%

Leverage Ratio
Short-term debt	-	$	-	$	300	$	300	$	300	NM
Long-term debt	6,714		6,682		6,294		6,334		6,323	-5.8%
Total debt (1)	6,714		6,682		6,594		6,634		6,623	-1.4%
Less:
Operating debt (2)	866		866		866		866		866	0.0%
25% of capital securities and subordinated notes	302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items	428		395		306		345		333	-22.2%
Total numerator	5,118	$	5,119	$	5,120	$	5,121	$	5,122	0.1%

Stockholders’ equity, excluding unrealized
investment gains (losses)	13,396	$	13,490	$	13,553	$	13,989	$	14,042	4.8%
Add: 25% of capital securities and subordinated
notes	302		302		302		302		302	0.0%
Total numerator	5,118		5,119		5,120		5,121		5,122	0.1%
Total denominator	18,816	$	18,911	$	18,975	$	19,412	$	19,466	3.5%

Leverage ratio	27.2%		27.1%		27.0%		26.4%		26.3%

Holding Company Available Liquidity	756	$	754	$	758	$	762	$	754	-0.3%

(1) Excludes obligations under finance leases and certain financing arrangements of 499 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

All values are in US Dollars.

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Segment and Sources of Earnings | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Income (Loss) from Operations, Pre-Tax | | | | | | | | | | | | | | | | | | | Annuities | $ | 220 | $ | 338 | $ | 350 | $ | 380 | $ | 403 | 83.2% | $ | 794 | $ | 1,133 | 42.7% | | | Retirement Plan Services | | 58 | | 57 | | 70 | | 74 | | 72 | 24.1% | | 135 | | 216 | 60.0% | | | Life Insurance | | (400) | | 177 | | 130 | | 317 | | 113 | 128.3% | | (244) | | 560 | NM | | | Group Protection | | 8 | | (54) | | (33) | | 59 | | (40) | NM | | 108 | | (15) | NM | | | Other Operations | | (98) | | (125) | | (96) | | (101) | | (194) | -98.0% | | (252) | | (390) | -54.8% | | | Adjusted income (loss) from operations, before | | | | | | | | | | | | | | | | | | | income taxes | $ | (212) | $ | 393 | $ | 421 | $ | 729 | $ | 354 | 267.0% | $ | 541 | $ | 1,504 | 178.0% | | | | | | | | | | | | | | | | | | | | | | Income (Loss) from Operations, After-Tax | | | | | | | | | | | | | | | | | | | Annuities | $ | 196 | $ | 289 | $ | 290 | $ | 323 | $ | 338 | 72.4% | $ | 694 | $ | 951 | 37.0% | | | Retirement Plan Services | | 50 | | 49 | | 57 | | 62 | | 60 | 20.0% | | 119 | | 178 | 49.6% | | | Life Insurance | | (311) | | 144 | | 107 | | 255 | | 93 | 129.9% | | (177) | | 455 | NM | | | Group Protection | | 6 | | (42) | | (26) | | 46 | | (32) | NM | | 85 | | (12) | NM | | | Other Operations | | (74) | | (94) | | (78) | | (78) | | (152) | NM | | (202) | | (307) | -52.0% | | | Adjusted income (loss) from operations | $ | (133) | $ | 346 | $ | 350 | $ | 608 | $ | 307 | NM | $ | 519 | $ | 1,265 | 143.7% | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Trailing Twelve Months | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Sources of Earnings, Pre-Tax | | | | | | | | | | | | | | | | | | | Investment spread | $ | (119) | $ | 147 | $ | 130 | $ | 228 | $ | 152 | 227.7% | $ | 244 | $ | 658 | 169.7% | | | Mortality/morbidity | | (208) | | 47 | | 39 | | 219 | | 21 | 110.1% | | 160 | | 327 | 104.4% | | | Fees on AUM | | 321 | | 308 | | 332 | | 363 | | 381 | 18.7% | | 1,132 | | 1,381 | 22.0% | | | VA riders | | (108) | | 16 | | 16 | | 20 | | (6) | 94.4% | | (86) | | 47 | 154.7% | | | Total sources of earnings, before income taxes | | (114) | | 518 | | 517 | | 830 | | 548 | NM | | 1,450 | | 2,413 | 66.4% | | | Other Operations | | (98) | | (125) | | (96) | | (101) | | (194) | -98.0% | | (343) | | (516) | -50.4% | | | Adjusted income (loss) from operations, before | | | | | | | | | | | | | | | | | | | income taxes | $ | (212) | $ | 393 | $ | 421 | $ | 729 | $ | 354 | 267.0% | $ | 1,107 | $ | 1,897 | 71.4% | | | | | | | | | | | | | | | | | | | | | | Sources of Earnings, Pre-Tax, Percentage By Component | | | | | | | | | | | | | | | | | | | Investment spread | | 103.7% | | 28.5% | | 25.2% | | 27.5% | | 27.7% | | | 16.8% | | 27.3% | | | | Mortality/morbidity | | 181.6% | | 9.1% | | 7.5% | | 26.4% | | 3.9% | | | 11.1% | | 13.6% | | | | Fees on AUM | | -279.5% | | 59.4% | | 64.1% | | 43.6% | | 69.4% | | | 78.0% | | 57.2% | | | | VA riders | | 94.2% | | 3.0% | | 3.2% | | 2.5% | | -1.0% | | | -5.9% | | 1.9% | | | | 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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Annuities
Operating revenues	$	1,126	$	1,163	$	1,204	$	1,249	$	1,267	12.5%	$	3,292	$	3,720	13.0%
Deposits		2,539		2,510		2,814		3,209		2,707	6.6%		8,751		8,729	-0.3%
Net flows		(283)		(644)		(776)		(297)		(841)	NM		303		(1,913)	NM
Average account values		144,368		150,875		160,099		166,034		169,581	17.5%		138,903		165,234	19.0%

Retirement Plan Services
Operating revenues	$	311	$	323	$	327	$	333	$	328	5.5%	$	889	$	989	11.2%
Deposits		2,374		2,557		2,640		2,789		2,411	1.6%		7,459		7,839	5.1%
Net flows		362		340		347		517		(21)	NM		(175)		843	NM
Average account values		79,644		83,889		89,589		94,096		96,723	21.4%		76,797		93,448	21.7%

Life Insurance
Operating revenues	$	2,127	$	1,928	$	1,939	$	2,029	$	2,325	9.3%	$	5,587	$	6,293	12.6%
Deposits		1,537		1,476		1,219		1,278		1,324	-13.9%		4,414		3,822	-13.4%
Net flows		1,156		996		793		879		871	-24.7%		3,142		2,544	-19.0%
Average account values		54,570		56,419		58,008		59,056		59,642	9.3%		53,376		58,902	10.4%
Average in-force face amount		870,505		886,005		900,973		916,600		935,096	7.4%		853,355		917,556	7.5%

Group Protection
Operating revenues	$	1,184	$	1,184	$	1,254	$	1,247	$	1,243	5.0%	$	3,608	$	3,743	3.7%
Insurance premiums		1,052		1,049		1,119		1,107		1,107	5.2%		3,231		3,333	3.2%

Consolidated
Adjusted operating revenues (1)	$	4,788	$	4,655	$	4,762	$	4,903	$	5,205	8.7%	$	13,507	$	14,870	10.1%
Deposits		6,450		6,543		6,673		7,276		6,442	-0.1%		20,624		20,390	-1.1%
Net flows		1,235		692		364		1,099		9	-99.3%		3,270		1,474	-54.9%
Average account values		278,582		291,183		307,696		319,186		325,946	17.0%		269,076		317,584	18.0%

(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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Sales
Annuities:
With guaranteed living benefits	$	541	$	507	$	638	$	742	$	773	42.9%	$	2,551	$	2,153	-15.6%
Without guaranteed living benefits		1,911		1,921		2,090		2,283		1,592	-16.7%		4,756		5,965	25.4%
Variable		2,452		2,428		2,728		3,025		2,365	-3.5%		7,307		8,118	11.1%
Fixed		87		82		86		184		342	293.1%		1,444		611	-57.7%
Total Annuities	$	2,539	$	2,510	$	2,814	$	3,209	$	2,707	6.6%	$	8,751	$	8,729	-0.3%

Retirement Plan Services:
First-year sales	$	870	$	1,107	$	694	$	1,102	$	745	-14.4%	$	2,564	$	2,541	-0.9%
Recurring deposits		1,504		1,450		1,946		1,687		1,666	10.8%		4,895		5,298	8.2%
Total Retirement Plan Services	$	2,374	$	2,557	$	2,640	$	2,789	$	2,411	1.6%	$	7,459	$	7,839	5.1%

Life Insurance:
UL	$	3	$	3	$	2	$	2	$	2	-33.3%	$	17	$	6	-64.7%
MoneyGuard®		35		22		16		23		26	-25.7%		106		65	-38.7%
IUL		24		22		16		18		22	-8.3%		69		55	-20.3%
VUL		60		30		22		27		40	-33.3%		157		89	-43.3%
Term		28		32		30		35		42	50.0%		100		106	6.0%
Total individual life insurance		150		109		86		105		132	-12.0%		449		321	-28.5%
Executive Benefits		36		6		28		21		34	-5.6%		66		85	28.8%
Total Life Insurance	$	186	$	115	$	114	$	126	$	166	-10.8%	$	515	$	406	-21.2%

Group Protection:
Life	$	24	$	144	$	41	$	37	$	22	-8.3%	$	121	$	101	-16.5%
Disability		17		291		28		37		20	17.6%		106		85	-19.8%
Dental		8		15		5		5		6	-25.0%		29		16	-44.8%
Total Group Protection	$	49	$	450	$	74	$	79	$	48	-2.0%	$	256	$	202	-21.1%
Percent employee-paid		58.9%		28.4%		66.7%		56.3%		50.1%			56.3%		58.6%






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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Operating Revenues
Annuities	$	1,126	$	1,163	$	1,204	$	1,249	$	1,267	12.5%	$	3,292	$	3,720	13.0%
Retirement Plan Services		311		323		327		333		328	5.5%		889		989	11.2%
Life Insurance		2,127		1,928		1,939		2,029		2,325	9.3%		5,587		6,293	12.6%
Group Protection		1,184		1,184		1,254		1,247		1,243	5.0%		3,608		3,743	3.7%
Other Operations		40		57		38		45		42	5.0%		131		125	-4.6%
Total segment operating revenues	$	4,788	$	4,655	$	4,762	$	4,903	$	5,205	8.7%	$	13,507	$	14,870	10.1%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities	$	111	$	126	$	116	$	121	$	115	3.6%	$	343	$	352	2.6%
Retirement Plan Services		69		78		69		73		70	1.4%		210		213	1.4%
Life Insurance		118		126		118		126		121	2.5%		355		365	2.8%
Group Protection		155		164		158		161		163	5.2%		461		482	4.6%
Other Operations		34		71		44		46		143	NM		85		233	174.1%
Total	$	487	$	565	$	505	$	527	$	612	25.7%	$	1,454	$	1,645	13.1%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		9.9%		10.8%		9.7%		9.6%		9.1%			10.4%		9.5%
Retirement Plan Services		22.3%		24.2%		21.2%		21.9%		21.5%			23.6%		21.5%
Life Insurance		5.5%		6.5%		6.1%		6.2%		5.2%			6.4%		5.8%
Group Protection		13.1%		13.8%		12.5%		13.0%		13.1%			12.8%		12.9%
Other Operations		83.7%		125.8%		115.6%		100.8%		345.5%			65.3%		186.3%
Total		10.2%		12.1%		10.6%		10.7%		11.8%			10.8%		11.1%

(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 Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Operating Commissions and | | | | | | | | | | | | | | | | | | | Other Expenses Incurred | | | | | | | | | | | | | | | | | | | General and administrative expenses | $ | 537 | $ | 638 | $ | 556 | $ | 579 | $ | 662 | 23.3% | $ | 1,610 | $ | 1,797 | 11.6% | | | Commissions | | 611 | | 625 | | 616 | | 652 | | 656 | 7.4% | | 1,937 | | 1,924 | -0.7% | | | Taxes, licenses and fees | | 85 | | 73 | | 87 | | 86 | | 79 | -7.1% | | 254 | | 252 | -0.8% | | | Interest and debt expense | | 66 | | 65 | | 65 | | 65 | | 66 | 0.0% | | 203 | | 196 | -3.4% | | | Expenses associated with reserve financing | | | | | | | | | | | | | | | | | | | and letters of credit | | 24 | | 25 | | 25 | | 25 | | 26 | 8.3% | | 69 | | 76 | 10.1% | | | Total adjusted operating commissions and other | | | | | | | | | | | | | | | | | | | expenses incurred | | 1,323 | | 1,426 | | 1,349 | | 1,407 | | 1,489 | 12.5% | | 4,073 | | 4,245 | 4.2% | | | | | | | | | | | | | | | | | | | | | | Less Amounts Capitalized | | | | | | | | | | | | | | | | | | | General and administrative expenses | | (50) | | (73) | | (51) | | (52) | | (50) | 0.0% | | (156) | | (152) | 2.6% | | | Commissions | | (272) | | (250) | | (233) | | (261) | | (253) | 7.0% | | (924) | | (745) | 19.4% | | | Taxes, licenses and fees | | (11) | | (9) | | (8) | | (11) | | (9) | 18.2% | | (37) | | (29) | 21.6% | | | Total amounts capitalized | | (333) | | (332) | | (292) | | (324) | | (312) | 6.3% | | (1,117) | | (926) | 17.1% | | | Total expenses incurred, net of amounts | | | | | | | | | | | | | | | | | | | capitalized, excluding amortization | | 990 | | 1,094 | | 1,057 | | 1,083 | | 1,177 | 18.9% | | 2,956 | | 3,319 | 12.3% | | | | | | | | | | | | | | | | | | | | | | Amortization | | | | | | | | | | | | | | | | | | | Amortization of DAC, VOBA and other intangibles | | 680 | | 218 | | 247 | | 317 | | 821 | 20.7% | | 1,134 | | 1,386 | 22.2% | | | Total operating commissions and other expenses | $ | 1,670 | $ | 1,312 | $ | 1,304 | $ | 1,400 | $ | 1,998 | 19.6% | $ | 4,090 | $ | 4,705 | 15.0% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 11 | | | | | | | | | | | | | | | | |


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended											For the Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Annuities
Earned rate on reserves		3.63%		3.42%		3.27%		3.10%		3.07%	(56)		3.69%		3.15%	(54)
Variable investment income on reserves (1)		0.09%		0.15%		0.11%		0.24%		0.28%	19		0.07%		0.21%	14
Net investment income yield on reserves		3.72%		3.57%		3.38%		3.34%		3.35%	(37)		3.76%		3.36%	(40)
Interest rate credited to contract holders		2.12%		1.97%		2.02%		1.97%		1.90%	(22)		2.22%		1.97%	(25)
Interest rate spread		1.60%		1.60%		1.36%		1.37%		1.45%	(15)		1.54%		1.39%	(15)
Base spreads excluding variable investment income		1.51%		1.45%		1.25%		1.13%		1.17%	(34)		1.47%		1.18%	(29)

Retirement Plan Services
Earned rate on reserves		3.82%		3.68%		3.64%		3.60%		3.56%	(26)		3.87%		3.60%	(27)
Variable investment income on reserves (1)		0.10%		0.21%		0.17%		0.21%		0.22%	12		0.07%		0.20%	13
Net investment income yield on reserves		3.92%		3.89%		3.81%		3.81%		3.78%	(14)		3.94%		3.80%	(14)
Interest rate credited to contract holders		2.81%		2.78%		2.68%		2.69%		2.65%	(16)		2.85%		2.67%	(18)
Interest rate spread		1.11%		1.11%		1.13%		1.12%		1.13%	2		1.09%		1.13%	4
Base spreads excluding variable investment income		1.01%		0.90%		0.96%		0.91%		0.91%	(10)		1.02%		0.93%	(9)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.76%		4.71%		4.71%		4.68%		4.64%	(12)		4.77%		4.68%	(9)
Variable investment income on reserves (1)		0.76%		0.95%		1.05%		1.38%		1.23%	47		0.12%		1.22%	110
Net investment income yield on reserves		5.52%		5.66%		5.76%		6.06%		5.87%	35		4.89%		5.90%	101
Interest rate credited to contract holders		3.75%		3.83%		3.76%		3.78%		3.76%	1		3.79%		3.77%	(2)
Interest rate spread		1.77%		1.83%		2.00%		2.28%		2.11%	34		1.10%		2.13%	103
Base spreads excluding variable investment income		1.01%		0.88%		0.95%		0.90%		0.88%	(13)		0.98%		0.91%	(7)

Total (2)
Earned rate (3)		4.09%		4.04%		3.96%		3.94%		3.93%	(16)		4.15%		3.94%	(21)
Variable investment income (1) (3)		0.45%		0.56%		0.59%		0.78%		0.72%	27		0.10%		0.70%	60
Net investment income yield (3)		4.54%		4.60%		4.55%		4.72%		4.65%	11		4.25%		4.64%	39

(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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	17	$	29	$	32	$	27	$	30	76.5%	$	92	$	89	-3.3%
Fee income		608		626		652		679		690	13.5%		1,768		2,022	14.4%
Net investment income		334		343		328		352		371	11.1%		929		1,052	13.2%
Operating realized gain (loss)		57		54		50		53		49	-14.0%		160		152	-5.0%
Amortization of deferred gain		8		5		6		6		7	-12.5%		24		19	-20.8%
Other revenues		102		106		136		132		120	17.6%		319		386	21.0%
Total operating revenues		1,126		1,163		1,204		1,249		1,267	12.5%		3,292		3,720	13.0%
Operating expenses:
Interest credited		198		191		199		199		210	6.1%		582		608	4.5%
Benefits		261		138		141		135		135	-48.3%		558		411	-26.3%
Commissions incurred		248		255		275		297		276	11.3%		805		849	5.5%
Other expenses incurred		232		252		255		264		258	11.2%		703		776	10.4%
Amounts capitalized		(118)		(117)		(127)		(144)		(113)	4.2%		(431)		(384)	10.9%
Amortization		85		106		111		118		98	15.3%		281		327	16.4%
Total operating expenses		906		825		854		869		864	-4.6%		2,498		2,587	3.6%
Income (loss) from operations before taxes		220		338		350		380		403	83.2%		794		1,133	42.7%
Federal income tax expense (benefit)		24		49		60		57		65	170.8%		100		182	82.0%
Income (loss) from operations	$	196	$	289	$	290	$	323	$	338	72.4%	$	694	$	951	37.0%

Effective Federal Income Tax Rate		11.1%		14.5%		17.2%		15.0%		16.1%			12.6%		16.1%

Average Equity, Excluding Goodwill and AOCI	$	5,394	$	5,405	$	5,071	$	5,077	$	5,282	-2.1%	$	5,094	$	5,143	1.0%

ROE, Excluding Goodwill and AOCI		14.5%		21.4%		22.9%		25.5%		25.6%			18.2%		24.7%

Return on Average Account Values		54		77		72		78		80	26		67		77	10

Income (Loss) from Operations
Variable annuity		176		254		261		293		287	63.1%		615		840	36.6%
Fixed annuity		20		35		29		30		51	155.0%		79		111	40.5%

Account Values - Average
Variable account values	$	127,011	$	133,630	$	142,990	$	149,066	$	152,660	20.2%	$	121,700	$	148,225	21.8%
Fixed account values		17,357		17,245		17,109		16,968		16,921	-2.5%		17,203		17,009	-1.1%

Account Values - End of Period
Variable account values with GLBs	$	77,084	$	83,377	$	84,155	$	86,901	$	84,320	9.4%	$	77,084	$	84,320	9.4%
Variable account values without GLBs		50,501		56,936		60,002		64,495		65,223	29.2%		50,501		65,223	29.2%
Fixed account values		17,263		17,205		16,966		16,911		16,804	-2.7%		17,263		16,804	-2.7%

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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	65	$	69	$	71	$	74	$	75	15.4%	$	184	$	220	19.6%
Net investment income		240		246		248		250		245	2.1%		686		742	8.2%
Other revenues		6		8		8		9		8	33.3%		19		27	42.1%
Total operating revenues		311		323		327		333		328	5.5%		889		989	11.2%
Operating expenses:
Interest credited		155		157		155		155		153	-1.3%		458		462	0.9%
Benefits		1		-		1		1		1	0.0%		2		2	0.0%
Commissions incurred		19		20		21		20		21	10.5%		56		63	12.5%
Other expenses incurred		74		86		77		79		78	5.4%		233		236	1.3%
Amounts capitalized		(4)		(5)		(5)		(4)		(5)	-25.0%		(16)		(15)	6.3%
Amortization		8		8		8		8		8	0.0%		21		25	19.0%
Total operating expenses		253		266		257		259		256	1.2%		754		773	2.5%
Income (loss) from operations before taxes		58		57		70		74		72	24.1%		135		216	60.0%
Federal income tax expense (benefit)		8		8		13		12		12	50.0%		16		38	137.5%
Income (loss) from operations	$	50	$	49	$	57	$	62	$	60	20.0%	$	119	$	178	49.6%

Effective Federal Income Tax Rate		13.7%		14.6%		18.9%		16.7%		16.8%			12.0%		17.4%

Average Equity, Excluding Goodwill and AOCI	$	1,441	$	1,480	$	1,526	$	1,535	$	1,492	3.5%	$	1,422	$	1,518	6.8%

ROE, Excluding Goodwill and AOCI		13.8%		13.2%		14.9%		16.1%		16.1%			11.2%		15.7%

Pre-tax Net Margin		36.8%		34.4%		40.4%		41.5%		41.2%			31.3%		41.0%

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

Net Flows by Market
Small Market		113		66		(28)		106		(43)	NM	$	284	$	35	-87.7%
Mid - Large Market		500		587		680		755		423	-15.4%		206		1,858	NM
Multi-Fund® and Other		(251)		(313)		(305)		(344)		(401)	-59.8%		(665)		(1,050)	-57.9%

Net Flows – Trailing Twelve Months	$	248	$	166	$	(158)	$	1,566	$	1,183	NM	$	248	$	1,183	NM





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 Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Income (Loss) from Operations | | | | | | | | | | | | | | | | | | | Operating revenues: | | | | | | | | | | | | | | | | | | | Insurance premiums | $ | 223 | $ | 274 | $ | 253 | $ | 258 | $ | 256 | 14.8% | $ | 676 | $ | 767 | 13.5% | | | Fee income | | 1,141 | | 861 | | 867 | | 915 | | 1,230 | 7.8% | | 2,865 | | 3,014 | 5.2% | | | Net investment income | | 761 | | 787 | | 809 | | 852 | | 832 | 9.3% | | 2,035 | | 2,493 | 22.5% | | | Operating realized gain (loss) | | - | | (1) | | (2) | | (2) | | - | NM | | (5) | | (4) | 20.0% | | | Amortization of deferred gain on | | | | | | | | | | | | | | | | | | | business sold through reinsurance | | 3 | | 4 | | 3 | | 3 | | 3 | 0.0% | | 9 | | 8 | -11.1% | | | Other revenues | | (1) | | 3 | | 9 | | 3 | | 4 | NM | | 7 | | 15 | 114.3% | | | Total operating revenues | | 2,127 | | 1,928 | | 1,939 | | 2,029 | | 2,325 | 9.3% | | 5,587 | | 6,293 | 12.6% | | | Operating expenses: | | | | | | | | | | | | | | | | | | | Interest credited | | 369 | | 375 | | 370 | | 372 | | 375 | 1.6% | | 1,116 | | 1,117 | 0.1% | | | Benefits | | 1,428 | | 1,120 | | 1,173 | | 999 | | 976 | -31.7% | | 3,465 | | 3,148 | -9.1% | | | Commissions incurred | | 171 | | 152 | | 120 | | 130 | | 153 | -10.5% | | 535 | | 403 | -24.7% | | | Other expenses incurred | | 209 | | 204 | | 194 | | 208 | | 201 | -3.8% | | 614 | | 604 | -1.6% | | | Amounts capitalized | | (202) | | (168) | | (138) | | (154) | | (175) | 13.4% | | (620) | | (468) | 24.5% | | | Amortization | | 552 | | 68 | | 90 | | 157 | | 682 | 23.6% | | 721 | | 929 | 28.8% | | | Total operating expenses | | 2,527 | | 1,751 | | 1,809 | | 1,712 | | 2,212 | -12.5% | | 5,831 | | 5,733 | -1.7% | | | Income (loss) from operations before taxes | | (400) | | 177 | | 130 | | 317 | | 113 | 128.3% | | (244) | | 560 | NM | | | Federal income tax expense (benefit) | | (89) | | 33 | | 23 | | 62 | | 20 | 122.5% | | (67) | | 105 | 256.7% | | | Income (loss) from operations | $ | (311) | $ | 144 | $ | 107 | $ | 255 | $ | 93 | 129.9% | $ | (177) | $ | 455 | NM | | | | | | | | | | | | | | | | | | | | | | Effective Federal Income Tax Rate | | 22.2% | | 18.6% | | 17.7% | | 19.7% | | 17.6% | | | 27.2% | | 18.8% | | | | | | | | | | | | | | | | | | | | | | | Average Equity, Excluding Goodwill and AOCI | $ | 8,854 | $ | 8,788 | $ | 8,909 | $ | 9,035 | $ | 9,245 | 4.4% | $ | 8,876 | $ | 9,063 | 2.1% | | | | | | | | | | | | | | | | | | | | | | ROE, Excluding Goodwill and AOCI | | -14.1% | | 6.5% | | 4.8% | | 11.3% | | 4.0% | | | -2.7% | | 6.7% | | | | | | | | | | | | | | | | | | | | | | | Average Account Values | $ | 54,570 | $ | 56,419 | $ | 58,008 | $ | 59,056 | $ | 59,642 | 9.3% | $ | 53,376 | $ | 58,902 | 10.4% | | | | | | | | | | | | | | | | | | | | | | In-Force Face Amount | | | | | | | | | | | | | | | | | | | UL and other | $ | 358,897 | $ | 358,554 | $ | 358,044 | $ | 357,670 | $ | 357,624 | -0.4% | $ | 358,897 | $ | 357,624 | -0.4% | | | Term insurance | | 519,173 | | 535,387 | | 549,960 | | 567,525 | | 587,372 | 13.1% | | 519,173 | | 587,372 | 13.1% | | | Total in-force face amount | $ | 878,070 | $ | 893,941 | $ | 908,004 | $ | 925,195 | $ | 944,996 | 7.6% | $ | 878,070 | $ | 944,996 | 7.6% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,052	$	1,049	$	1,119	$	1,107	$	1,107	5.2%	$	3,231	$	3,333	3.2%
Net investment income		88		91		91		95		91	3.4%		239		276	15.5%
Other revenues		44		44		44		45		45	2.3%		138		134	-2.9%
Total operating revenues		1,184		1,184		1,254		1,247		1,243	5.0%		3,608		3,743	3.7%
Operating expenses:
Interest credited		1		1		1		1		1	0.0%		4		4	0.0%
Benefits		875		920		970		877		971	11.0%		2,580		2,818	9.2%
Commissions incurred		80		95		91		87		88	10.0%		264		266	0.8%
Other expenses incurred		194		227		208		210		209	7.7%		591		626	5.9%
Amounts capitalized		(9)		(41)		(21)		(21)		(19)	NM		(50)		(61)	-22.0%
Amortization		35		36		38		34		33	-5.7%		111		105	-5.4%
Total operating expenses		1,176		1,238		1,287		1,188		1,283	9.1%		3,500		3,758	7.4%
Income (loss) from operations before taxes		8		(54)		(33)		59		(40)	NM		108		(15)	NM
Federal income tax expense (benefit)		2		(12)		(7)		13		(8)	NM		23		(3)	NM
Income (loss) from operations	$	6	$	(42)	$	(26)	$	46	$	(32)	NM	$	85	$	(12)	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	$	2,678	$	2,711	$	2,718	$	2,731	$	2,759	3.0%	$	2,636	$	2,736	3.8%

ROE, Excluding Goodwill and AOCI		0.9%		-6.3%		-3.8%		6.8%		-4.6%			4.3%		-0.6%

Loss Ratios by Product Line
Life		91.9%		93.4%		101.0%		79.6%		105.1%			84.5%		95.2%
Disability		78.9%		86.2%		78.8%		79.0%		77.7%			78.7%		78.5%
Dental		70.1%		67.3%		76.8%		81.6%		75.7%			61.7%		78.0%
Total		83.2%		87.8%		86.8%		79.3%		87.8%			79.8%		84.7%








Page 16

| | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Other Operations – Select Earnings and Operational Data | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Other Operations | | | | | | | | | | | | | | | | | | | Operating revenues: | | | | | | | | | | | | | | | | | | | Insurance premiums | $ | 2 | $ | 11 | $ | 2 | $ | 6 | $ | 1 | -50.0% | $ | 9 | $ | 9 | 0.0% | | | Net investment income | | 35 | | 38 | | 34 | | 35 | | 37 | 5.7% | | 116 | | 107 | -7.8% | | | Other revenues | | 3 | | 8 | | 2 | | 4 | | 4 | 33.3% | | 6 | | 9 | 50.0% | | | Total operating revenues | | 40 | | 57 | | 38 | | 45 | | 42 | 5.0% | | 131 | | 125 | -4.6% | | | Operating expenses: | | | | | | | | | | | | | | | | | | | Interest credited | | 9 | | 8 | | 12 | | 10 | | 10 | 11.1% | | 31 | | 32 | 3.2% | | | Benefits | | 33 | | 40 | | 15 | | 25 | | 21 | -36.4% | | 80 | | 59 | -26.3% | | | Commissions and other expenses | | 10 | | 46 | | 29 | | 25 | | 117 | NM | | 24 | | 171 | NM | | | Interest and debt expense | | 66 | | 65 | | 65 | | 65 | | 66 | 0.0% | | 203 | | 196 | -3.4% | | | Strategic digitization expense | | 20 | | 23 | | 13 | | 21 | | 22 | 10.0% | | 45 | | 57 | 26.7% | | | Total operating expenses | | 138 | | 182 | | 134 | | 146 | | 236 | 71.0% | | 383 | | 515 | 34.5% | | | Income (loss) from operations before taxes | | (98) | | (125) | | (96) | | (101) | | (194) | -98.0% | | (252) | | (390) | -54.8% | | | Federal income tax expense (benefit) | | (24) | | (31) | | (18) | | (23) | | (42) | -75.0% | | (50) | | (83) | -66.0% | | | Income (loss) from operations | $ | (74) | $ | (94) | $ | (78) | $ | (78) | $ | (152) | NM | $ | (202) | $ | (307) | -52.0% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 17 | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | DAC, VOBA and DSI | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 7,241 | $ | 6,520 | $ | 6,025 | $ | 7,884 | $ | 6,472 | -10.6% | $ | 7,928 | $ | 6,025 | -24.0% | | | Business acquired (sold) through reinsurance | | - | | - | | - | | - | | - | NM | | (10) | | - | 100.0% | | | Cumulative effect from adoption of new | | | | | | | | | | | | | | | | | | | accounting standard | | - | | - | | - | | - | | - | NM | | 5 | | - | -100.0% | | | Deferrals | | 334 | | 333 | | 295 | | 325 | | 312 | -6.6% | | 1,123 | | 932 | -17.0% | | | Operating amortization | | (679) | | (212) | | (244) | | (314) | | (820) | -20.8% | | (1,126) | | (1,378) | -22.4% | | | Deferrals, net of operating amortization | | (345) | | 121 | | 51 | | 11 | | (508) | -47.2% | | (3) | | (446) | NM | | | Amortization associated with benefit ratio unlocking | | (10) | | (30) | | (6) | | (11) | | 4 | 140.0% | | 52 | | (13) | NM | | | Adjustment related to realized (gains) losses | | (198) | | 87 | | 50 | | (10) | | 10 | 105.1% | | (106) | | 51 | 148.1% | | | Adjustment related to unrealized (gains) losses | | (168) | | (673) | | 1,764 | | (1,402) | | 191 | 213.7% | | (1,346) | | 552 | 141.0% | | | Balance as of end-of-period | $ | 6,520 | $ | 6,025 | $ | 7,884 | $ | 6,472 | $ | 6,169 | -5.4% | $ | 6,520 | $ | 6,169 | -5.4% | | | | | | | | | | | | | | | | | | | | | | DFEL | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 433 | $ | 392 | $ | 401 | $ | 559 | $ | 433 | 0.0% | $ | 650 | $ | 401 | -38.3% | | | Cumulative effect from adoption of new | | | | | | | | | | | | | | | | | | | accounting standard | | - | | - | | - | | - | | - | NM | | 4 | | - | -100.0% | | | Deferrals | | 263 | | 249 | | 231 | | 240 | | 251 | -4.6% | | 754 | | 722 | -4.2% | | | Operating amortization | | (424) | | (120) | | (131) | | (179) | | (522) | -23.1% | | (695) | | (831) | -19.6% | | | Deferrals, net of operating amortization | | (161) | | 129 | | 100 | | 61 | | (271) | -68.3% | | 59 | | (109) | NM | | | Amortization associated with benefit ratio unlocking | | (1) | | (4) | | (1) | | (2) | | 1 | 200.0% | | 5 | | (2) | NM | | | Adjustment related to realized (gains) losses | | (14) | | 9 | | 1 | | (2) | | (8) | 42.9% | | 16 | | (10) | NM | | | Adjustment related to unrealized (gains) losses | | 135 | | (125) | | 58 | | (183) | | 241 | 78.5% | | (342) | | 116 | 133.9% | | | Balance as of end-of-period | $ | 392 | $ | 401 | $ | 559 | $ | 433 | $ | 396 | 1.0% | $ | 392 | $ | 396 | 1.0% | | | | | | | | | | | | | | | | | | | | | | DAC, VOBA, DSI and DFEL | | | | | | | | | | | | | | | | | | | Balance as of End-of-Period, After-Tax | $ | 4,841 | $ | 4,443 | $ | 5,787 | $ | 4,771 | $ | 4,561 | -5.8% | $ | 4,841 | $ | 4,561 | -5.8% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 18 | | | | | | | | | | | | | | | | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Annuities – Account Value Roll Forwards | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Fixed Annuities | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 25,801 | $ | 25,572 | $ | 25,405 | $ | 25,008 | $ | 24,840 | -3.7% | $ | 25,384 | $ | 25,405 | 0.1% | | | Gross deposits | | 87 | | 82 | | 86 | | 184 | | 342 | 293.1% | | 1,444 | | 611 | -57.7% | | | Full surrenders and deaths | | (399) | | (400) | | (494) | | (482) | | (489) | -22.6% | | (1,183) | | (1,464) | -23.8% | | | Other contract benefits | | (135) | | (145) | | (141) | | (115) | | (163) | -20.7% | | (434) | | (419) | 3.5% | | | Net flows | | (447) | | (463) | | (549) | | (413) | | (310) | 30.6% | | (173) | | (1,272) | NM | | | Contract holder assessments | | (16) | | (19) | | (25) | | (22) | | (20) | -25.0% | | (44) | | (66) | -50.0% | | | Reinvested interest credited | | 234 | | 315 | | 177 | | 267 | | 132 | -43.6% | | 405 | | 575 | 42.0% | | | Balance as of end-of-period, gross | | 25,572 | | 25,405 | | 25,008 | | 24,840 | | 24,642 | -3.6% | | 25,572 | | 24,642 | -3.6% | | | Reinsurance ceded | | (8,309) | | (8,200) | | (8,042) | | (7,929) | | (7,838) | 5.7% | | (8,309) | | (7,838) | 5.7% | | | Balance as of end-of-period, net | $ | 17,263 | $ | 17,205 | $ | 16,966 | $ | 16,911 | $ | 16,804 | -2.7% | $ | 17,263 | $ | 16,804 | -2.7% | | | | | | | | | | | | | | | | | | | | | | Variable Annuities | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 121,713 | $ | 127,585 | $ | 140,313 | $ | 144,157 | $ | 151,396 | 24.4% | $ | 125,492 | $ | 140,313 | 11.8% | | | Gross deposits | | 2,452 | | 2,428 | | 2,728 | | 3,025 | | 2,365 | -3.5% | | 7,307 | | 8,118 | 11.1% | | | Full surrenders and deaths | | (1,384) | | (1,600) | | (1,901) | | (1,871) | | (1,875) | -35.5% | | (4,054) | | (5,647) | -39.3% | | | Other contract benefits | | (904) | | (1,009) | | (1,054) | | (1,038) | | (1,021) | -12.9% | | (2,777) | | (3,112) | -12.1% | | | Net flows | | 164 | | (181) | | (227) | | 116 | | (531) | NM | | 476 | | (641) | NM | | | Contract holder assessments | | (648) | | (666) | | (684) | | (705) | | (723) | -11.6% | | (1,890) | | (2,112) | -11.7% | | | Change in market value and reinvestment | | 6,356 | | 13,575 | | 4,755 | | 7,828 | | (592) | NM | | 3,507 | | 11,990 | 241.9% | | | Balance as of end-of-period, gross | | 127,585 | | 140,313 | | 144,157 | | 151,396 | | 149,550 | 17.2% | | 127,585 | | 149,550 | 17.2% | | | Reinsurance ceded | | - | | - | | - | | - | | (7) | NM | | - | | (7) | NM | | | Balance as of end-of-period, net | $ | 127,585 | $ | 140,313 | $ | 144,157 | $ | 151,396 | $ | 149,543 | 17.2% | $ | 127,585 | $ | 149,543 | 17.2% | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 147,514 | $ | 153,157 | $ | 165,718 | $ | 169,165 | $ | 176,236 | 19.5% | $ | 150,876 | $ | 165,718 | 9.8% | | | Gross deposits | | 2,539 | | 2,510 | | 2,814 | | 3,209 | | 2,707 | 6.6% | | 8,751 | | 8,729 | -0.3% | | | Full surrenders and deaths | | (1,783) | | (2,000) | | (2,395) | | (2,353) | | (2,364) | -32.6% | | (5,237) | | (7,111) | -35.8% | | | Other contract benefits | | (1,039) | | (1,154) | | (1,195) | | (1,153) | | (1,184) | -14.0% | | (3,211) | | (3,531) | -10.0% | | | Net flows | | (283) | | (644) | | (776) | | (297) | | (841) | NM | | 303 | | (1,913) | NM | | | Contract holder assessments | | (664) | | (685) | | (709) | | (727) | | (743) | -11.9% | | (1,934) | | (2,178) | -12.6% | | | Change in market value and reinvestment | | 6,590 | | 13,890 | | 4,932 | | 8,095 | | (460) | NM | | 3,912 | | 12,565 | 221.2% | | | Balance as of end-of-period, gross | | 153,157 | | 165,718 | | 169,165 | | 176,236 | | 174,192 | 13.7% | | 153,157 | | 174,192 | 13.7% | | | Reinsurance ceded | | (8,309) | | (8,200) | | (8,042) | | (7,929) | | (7,845) | 5.6% | | (8,309) | | (7,845) | 5.6% | | | Balance as of end-of-period, net | $ | 144,848 | $ | 157,518 | $ | 161,123 | $ | 168,307 | $ | 166,347 | 14.8% | $ | 144,848 | $ | 166,347 | 14.8% | | | | | | | | | | | | | | | | | | | | | | Page 19 | | | | | | | | | | | | | | | | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Retirement Plan Services – Account Value Roll Forwards | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | General Account | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 21,672 | $ | 22,316 | $ | 22,916 | $ | 23,008 | $ | 22,995 | 6.1% | $ | 20,558 | $ | 22,916 | 11.5% | | | Gross deposits | | 568 | | 731 | | 490 | | 424 | | 504 | -11.3% | | 1,994 | | 1,417 | -28.9% | | | Withdrawals | | (477) | | (533) | | (583) | | (590) | | (647) | -35.6% | | (1,793) | | (1,820) | -1.5% | | | Net flows | | 91 | | 198 | | (93) | | (166) | | (143) | NM | | 201 | | (403) | NM | | | Transfers between fixed and variable accounts | | 402 | | 247 | | 35 | | 3 | | 149 | -62.9% | | 1,112 | | 188 | -83.1% | | | Contract holder assessments | | (4) | | (3) | | (3) | | (3) | | (3) | 25.0% | | (10) | | (10) | 0.0% | | | Reinvestment interest credited | | 155 | | 158 | | 153 | | 153 | | 154 | -0.6% | | 455 | | 461 | 1.3% | | | Balance as of end-of-period | $ | 22,316 | $ | 22,916 | $ | 23,008 | $ | 22,995 | $ | 23,152 | 3.7% | $ | 22,316 | $ | 23,152 | 3.7% | | | | | | | | | | | | | | | | | | | | | | Separate Account and Mutual Funds | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 54,886 | $ | 58,255 | $ | 65,391 | $ | 68,149 | $ | 72,913 | 32.8% | $ | 58,131 | $ | 65,391 | 12.5% | | | Gross deposits | | 1,806 | | 1,826 | | 2,150 | | 2,365 | | 1,907 | 5.6% | | 5,465 | | 6,422 | 17.5% | | | Withdrawals | | (1,535) | | (1,684) | | (1,710) | | (1,682) | | (1,785) | -16.3% | | (5,841) | | (5,176) | 11.4% | | | Net flows | | 271 | | 142 | | 440 | | 683 | | 122 | -55.0% | | (376) | | 1,246 | NM | | | Transfers between fixed and variable accounts | | (436) | | (326) | | (141) | | (43) | | (154) | 64.7% | | (1,205) | | (338) | 72.0% | | | Contract holder assessments | | (50) | | (59) | | (62) | | (65) | | (66) | -32.0% | | (153) | | (193) | -26.1% | | | Change in market value and reinvestment | | 3,584 | | 7,379 | | 2,521 | | 4,189 | | (361) | NM | | 1,858 | | 6,348 | 241.7% | | | Balance as of end-of-period | $ | 58,255 | $ | 65,391 | $ | 68,149 | $ | 72,913 | $ | 72,454 | 24.4% | $ | 58,255 | $ | 72,454 | 24.4% | | | | | | | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | | | | | | | Balance as of beginning-of-period | $ | 76,558 | $ | 80,571 | $ | 88,307 | $ | 91,157 | $ | 95,908 | 25.3% | $ | 78,689 | $ | 88,307 | 12.2% | | | Gross deposits | | 2,374 | | 2,557 | | 2,640 | | 2,789 | | 2,411 | 1.6% | | 7,459 | | 7,839 | 5.1% | | | Withdrawals | | (2,012) | | (2,217) | | (2,293) | | (2,272) | | (2,432) | -20.9% | | (7,634) | | (6,996) | 8.4% | | | Net flows | | 362 | | 340 | | 347 | | 517 | | (21) | NM | | (175) | | 843 | NM | | | Transfers between fixed and variable accounts | | (34) | | (79) | | (106) | | (40) | | (5) | 85.3% | | (93) | | (150) | -61.3% | | | Contract holder assessments | | (54) | | (62) | | (65) | | (68) | | (69) | -27.8% | | (163) | | (203) | -24.5% | | | Change in market value and reinvestment | | 3,739 | | 7,537 | | 2,674 | | 4,342 | | (207) | NM | | 2,313 | | 6,809 | 194.4% | | | Balance as of end-of-period | $ | 80,571 | $ | 88,307 | $ | 91,157 | $ | 95,908 | $ | 95,606 | 18.7% | $ | 80,571 | $ | 95,606 | 18.7% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 20 | | | | | | | | | | | | | | | | |


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
General Account
Balance as of beginning-of-period	$	38,034	$	38,080	$	38,136	$	38,053	$	38,013	-0.1%	$	38,141	$	38,136	0.0%
Deposits		966		1,028		899		895		894	-7.5%		2,926		2,689	-8.1%
Withdrawals and deaths		(230)		(282)		(296)		(243)		(237)	-3.0%		(873)		(776)	11.1%
Net flows		736		746		603		652		657	-10.7%		2,053		1,913	-6.8%
Contract holder assessments		(1,079)		(1,088)		(1,073)		(1,074)		(1,086)	-0.6%		(3,227)		(3,235)	-0.2%
Reinvested interest credited		389		398		387		382		385	-1.0%		1,113		1,155	3.8%
Balance as of end-of-period, gross		38,080		38,136		38,053		38,013		37,969	-0.3%		38,080		37,969	-0.3%
Reinsurance ceded		(646)		(640)		(636)		(628)		(620)	4.0%		(646)		(620)	4.0%
Balance as of end-of-period, net	$	37,434	$	37,496	$	37,417	$	37,385	$	37,349	-0.2%	$	37,434	$	37,349	-0.2%

Separate Account
Balance as of beginning-of-period	$	17,351	$	18,671	$	21,078	$	21,983	$	23,361	34.6%	$	17,646	$	21,078	19.4%
Deposits		571		448		320		383		430	-24.7%		1,488		1,133	-23.9%
Withdrawals and deaths		(151)		(198)		(130)		(156)		(216)	-43.0%		(399)		(502)	-25.8%
Net flows		420		250		190		227		214	-49.0%		1,089		631	-42.1%
Contract holder assessments		(217)		(209)		(197)		(203)		(211)	2.8%		(632)		(611)	3.3%
Change in market value and reinvestment		1,117		2,366		912		1,354		(114)	NM		568		2,152	278.9%
Balance as of end-of-period, gross		18,671		21,078		21,983		23,361		23,250	24.5%		18,671		23,250	24.5%
Reinsurance ceded		(874)		(969)		(990)		(1,044)		(1,018)	-16.5%		(874)		(1,018)	-16.5%
Balance as of end-of-period, net	$	17,797	$	20,109	$	20,993	$	22,317	$	22,232	24.9%	$	17,797	$	22,232	24.9%

Total
Balance as of beginning-of-period	$	55,385	$	56,751	$	59,214	$	60,036	$	61,374	10.8%	$	55,787	$	59,214	6.1%
Deposits		1,537		1,476		1,219		1,278		1,324	-13.9%		4,414		3,822	-13.4%
Withdrawals and deaths		(381)		(480)		(426)		(399)		(453)	-18.9%		(1,272)		(1,278)	-0.5%
Net flows		1,156		996		793		879		871	-24.7%		3,142		2,544	-19.0%
Contract holder assessments		(1,296)		(1,297)		(1,270)		(1,277)		(1,297)	-0.1%		(3,859)		(3,846)	0.3%
Change in market value and reinvestment		1,506		2,764		1,299		1,736		271	-82.0%		1,681		3,307	96.7%
Balance as of end-of-period, gross		56,751		59,214		60,036		61,374		61,219	7.9%		56,751		61,219	7.9%
Reinsurance ceded		(1,520)		(1,609)		(1,626)		(1,672)		(1,638)	-7.8%		(1,520)		(1,638)	-7.8%
Balance as of end-of-period, net	$	55,231	$	57,605	$	58,410	$	59,702	$	59,581	7.9%	$	55,231	$	59,581	7.9%




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| | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | Select Investment Data | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of 9/30/20 | | | | As of 12/31/20 | | | | As of 9/30/21 | | | | | | | Amount | | % | | Amount | | % | | Amount | | % | | | | Fixed Maturity AFS, Trading and Equity Securities, at Fair Value | | | | | | | | | | | | | | | Fixed maturity AFS securities, net of allowance for credit losses: | | | | | | | | | | | | | | | Corporate bonds | $ | 98,717 | | 80.1% | $ | 102,789 | | 80.5% | $ | 100,862 | | 79.7% | | | U.S. government bonds | | 496 | | 0.4% | | 484 | | 0.4% | | 443 | | 0.4% | | | State and municipal bonds | | 6,774 | | 5.5% | | 6,921 | | 5.4% | | 6,901 | | 5.5% | | | Foreign government bonds | | 436 | | 0.4% | | 470 | | 0.4% | | 512 | | 0.4% | | | Residential mortgage-backed securities | | 3,203 | | 2.6% | | 3,076 | | 2.4% | | 2,935 | | 2.3% | | | Commercial mortgage-backed securities | | 1,430 | | 1.2% | | 1,505 | | 1.2% | | 1,594 | | 1.3% | | | Asset-backed securities | | 6,590 | | 5.4% | | 7,184 | | 5.6% | | 8,303 | | 6.6% | | | Hybrid and redeemable preferred securities | | 606 | | 0.5% | | 615 | | 0.5% | | 535 | | 0.4% | | | Total fixed maturity AFS securities, net of allowance for credit losses | | 118,252 | | 96.1% | | 123,044 | | 96.4% | | 122,085 | | 96.6% | | | Trading securities | | 4,633 | | 3.8% | | 4,501 | | 3.5% | | 4,191 | | 3.2% | | | Equity securities | | 122 | | 0.1% | | 129 | | 0.1% | | 243 | | 0.2% | | | Total fixed maturity AFS securities, net of allowance for credit losses, and trading and | | | | | | | | | | | | | | | equity securities | $ | 123,007 | | 100.0% | $ | 127,674 | | 100.0% | $ | 126,519 | | 100.0% | | | | | | | | | | | | | | | | | | Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost | | | | | | | | | | | | | | | Fixed maturity AFS securities | $ | 101,885 | | 95.8% | $ | 104,174 | | 96.1% | $ | 107,459 | | 96.4% | | | Trading securities | | 4,296 | | 4.1% | | 4,072 | | 3.8% | | 3,828 | | 3.4% | | | Equity securities | | 140 | | 0.1% | | 132 | | 0.1% | | 216 | | 0.2% | | | Total fixed maturity AFS, trading and equity securities | $ | 106,321 | | 100.0% | $ | 108,378 | | 100.0% | $ | 111,503 | | 100.0% | | | | | | | | | | | | | | | | | | Percentage of Fixed Maturity AFS Securities, at Amortized Cost | | | | | | | | | | | | | | | Investment grade | | | | 95.9% | | | | 95.9% | | | | 96.3% | | | Below investment grade | | | | 4.1% | | | | 4.1% | | | | 3.7% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 22 | | | | | | | | | | | | |

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | Lincoln Financial Group | | | | | | | | | | | | | | | | | | | Realized Gain (Loss), After-DAC | | | | | | | | | | | | | | | | | | | Unaudited (millions of dollars) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | | | | | | | | | | For the Nine Months Ended | | | | | | | | 9/30/20 | | 12/31/20 | | 3/31/21 | | 6/30/21 | | 9/30/21 | | Change | 9/30/20 | | 9/30/21 | | Change | | | Components of Realized Gain (Loss), Pre-Tax | | | | | | | | | | | | | | | | | | | Total adjusted operating realized gain (loss) | $ | 57 | $ | 53 | $ | 48 | $ | 51 | $ | 49 | -14.0% | $ | 155 | $ | 148 | -4.5% | | | Total excluded realized gain (loss) | | 572 | | (523) | | (229) | | (53) | | 36 | -93.7% | | (198) | | (245) | -23.7% | | | Total realized gain (loss), pre-tax | $ | 629 | $ | (470) | $ | (181) | $ | (2) | $ | 85 | -86.5% | $ | (43) | $ | (97) | NM | | | | | | | | | | | | | | | | | | | | | | Components of Excluded Realized Gain (Loss), After-Tax | | | | | | | | | | | | | | | | | | | Credit loss benefit (expense) on mortgage loans on | | | | | | | | | | | | | | | | | | | real estate | $ | 50 | $ | (6) | $ | 17 | $ | 8 | $ | 28 | -44.0% | $ | (79) | $ | 53 | 167.1% | | | Credit loss benefit (expense) on other financial assets | | (1) | | (2) | | (1) | | (3) | | (9) | NM | | (17) | | (13) | 23.5% | | | Realized gain (loss) related to certain financial assets | | (5) | | (7) | | 1 | | (5) | | (4) | 20.0% | | (28) | | (9) | 67.9% | | | Realized gain (loss) on equity securities | | 3 | | 13 | | 8 | | 16 | | 3 | 0.0% | | (10) | | 28 | NM | | | Realized gain (loss) on the mark-to-market on certain | | | | | | | | | | | | | | | | | | | instruments | | (6) | | 2 | | 19 | | (2) | | 8 | 233.3% | | 32 | | 26 | -18.8% | | | Realized gain (loss) related to financial assets, after-tax | | 41 | | - | | 44 | | 14 | | 26 | -36.6% | | (102) | | 85 | 183.3% | | | Variable annuity net derivative results: | | | | | | | | | | | | | | | | | | | Hedge program performance, including unlocking | | | | | | | | | | | | | | | | | | | for GLB reserves hedged and benefit ratio unlocking | | 12 | | (9) | | (42) | | 13 | | (4) | NM | | (555) | | (32) | 94.2% | | | GLB non-performance risk component | | 464 | | (240) | | (144) | | (1) | | (2) | NM | | 532 | | (148) | NM | | | Total variable annuity net derivative results | | 476 | | (249) | | (186) | | 12 | | (6) | NM | | (23) | | (180) | NM | | | Indexed annuity forward-starting option | | 18 | | 12 | | 17 | | 8 | | (3) | NM | | (14) | | 21 | 250.0% | | | Excluded realized gain (loss), including | | | | | | | | | | | | | | | | | | | benefit ratio unlocking, after-tax | | 535 | | (237) | | (125) | | 34 | | 17 | -96.8% | | (139) | | (74) | 46.8% | | | Less: benefit ratio unlocking, after-tax | | 83 | | 177 | | 55 | | 77 | | (12) | NM | | 17 | | 119 | -30.0% | | | Total excluded realized gain (loss), after-tax | $ | 452 | $ | (414) | | (180) | $ | (43) | $ | 29 | -93.6% | $ | (156) | $ | (193) | 9.1% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Page 23 | | | | | | | | | | | | | | | | |

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

	For the Three Months Ended											For the Nine Months Ended
	9/30/20		12/31/20		3/31/21		6/30/21		9/30/21		Change	9/30/20		9/30/21		Change
Revenues
Total revenues	$	5,361	$	4,135	$	4,534	$	4,851	$	5,241	-2.2%	$	13,303	$	14,627	10.0%
Less:
Excluded realized gain (loss)		572		(523)		(229)		(53)		36	-93.7%		(198)		(245)	-23.7%
Amortization of DFEL associated with
benefit ratio unlocking		1		3		1		1		-	-100.0%		(6)		2	133.3%
Adjusted operating revenues	$	4,788	$	4,655	$	4,762	$	4,903	$	5,205	8.7%	$	13,507	$	14,870	10.1%

Net Income
Net income (loss)	$	398	$	143	$	225	$	642	$	318	-20.1%	$	356	$	1,185	232.9%
Less:
Excluded realized gain (loss), after-tax		452		(414)		(180)		(43)		29	-93.6%		(156)		(193)	-23.7%
Benefit ratio unlocking, after-tax		83		177		55		77		(12)	NM		17		119	NM
Net impact from the Tax Cuts and Jobs Act		-		37		-		-		-	NM		-		-	NM
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(4)		(3)		-		-		-	100.0%		(12)		-	100.0%
Gain (loss) on modification or early extinguishment
of debt, after-tax		-		-		-		-		(6)	NM		(12)		(6)	50.0%
Total adjustments		531		(203)		(125)		34		11	-97.9%		(163)		(80)	50.9%
Adjusted income (loss) from operations	$	(133)	$	346	$	350	$	608	$	307	NM	$	519	$	1,265	143.7%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	2.01	$	0.74	$	1.16	$	3.34	$	1.68	-16.4%	$	1.74	$	6.19	255.7%
Less:
Excluded realized gain (loss), after-tax		2.32		(2.12)		(0.94)		(0.22)		0.15	-93.5%		(0.80)		(1.01)	-26.3%
Benefit ratio unlocking, after-tax		0.43		0.91		0.28		0.39		(0.06)	NM		0.09		0.61	NM
Net impact from the Tax Cuts and Jobs Act		-		0.19		-		-		-	NM		-		-	NM
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.02)		(0.02)		-		-		-	100.0%		(0.06)		-	100.0%
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	$	(0.72)	$	1.78	$	1.82	$	3.17	$	1.62	NM	$	2.57	$	6.62	157.6%




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