リンカーンナショナルの適時開示・決算・その他

UNITED STATES
‎SECURITIES AND EXCHANGE COMMISSION
‎Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

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

November 1, 2023

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
Depositary Shares, each representing a ‎1/1000th interest in a share of 9.000% ‎Non-Cumulative Preferred Stock, Series D	LNC PRD	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. [ ]

‎

Item 2.02. Results of Operations and Financial Condition.

On November 1, 2023, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2023, 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, 2023, 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 Number	Description
99.1	Press release dated November 1, 2023, announcing Lincoln National Corporation’s financial results for the quarter ended September 30, 2023.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended September 30, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

‎

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/ Adam Cohen
				Name:	Adam Cohen
				Title:	Senior Vice President and Chief
					Accounting Officer

Date: November 1, 2023

EX-99.1 2 lnc-20231101xex99_1.htm EX-99.1 3Q23 - Press Release

FOR IMMEDIATE RELEASE

LINCOLN FINANCIAL GROUP REPORTS THIRD QUARTER 2023 RESULTS

____________________________________

Radnor, PA, November 1, 2023: Lincoln Financial Group (NYSE: LNC) today reported financial results for the third quarter ended September 30, 2023.

Net income available to common stockholders of $4.79 per diluted share

Adjusted operating income available to common stockholders of $0.23 per diluted share and

included:

Net unfavorable notable items of $0.84 per diluted share related to the company’s annual review of reserve assumptions and

An additional unfavorable impact of $0.41 per diluted share primarily related to items impacting the Life Insurance business

Group Protection earnings were impacted by higher life severity and weaker disability incidence, though underlying margin expansion remains on track

Sequential sales growth in Retail Solutions businesses and strong sales pipeline in Workplace Solutions businesses heading into the fourth quarter

Expenses increased year-over-year, pressuring earnings across all four business segments

Favorable credit experience this quarter as credit portfolio continues to be 97% above investment grade

Estimated RBC ratio was stable and ended the quarter in the 375 - 385% range

Significant progress made towards expected close of Fortitude Re transaction

“Our earnings this quarter did not meet our expectations and reflect that our progress will not always be linear, but I am confident in our path forward,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group. “Our group business, which produced notably strong performance in the first half of the year, delivered lower than anticipated results this quarter largely driven by higher severity in group life. Across the enterprise, expenses are elevated and are a critical area of focus and opportunity as we look forward. We achieved sequential sales growth in our Retail Solutions businesses and have strong sales pipelines in all four of our businesses heading into the fourth quarter.”

“Additionally, this year’s annual assumption review was comprehensive, and I feel confident in our go-forward assumptions. Our risk-based capital position was stable in the quarter as we continue to be focused on executing on our strategy to rebuild capital.”

The company reported net income available to common stockholders for the third quarter of 2023 of $819 million, or $4.79 per diluted share, compared to a net loss available to common stockholders in the third quarter of 2022 of $1.8 billion, or $10.47 per diluted share. Third quarter adjusted income from operations available to common stockholders was $39 million, or $0.23 per diluted share, compared to adjusted loss from operations available to common stockholders of $2.0 billion, or $(11.49) per diluted share, in the third quarter of 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)	2023		2022 (2)		2023		2022 (2)
Net Income (Loss)	$	853	$	(1,776)	$	483	$	545
Net Income (Loss) Available to Common Stockholders		819		(1,777)		410		537
Net Income (Loss) per Diluted Share Available to Common Stockholders (1)		4.79		(10.47)		2.40		3.10
Revenues		4,203		4,672		10,946		14,969
Adjusted Income (Loss) from Operations		73		(1,949)		715		(1,301)
Adjusted Income (Loss) from Operations Available to Common Stockholders		39		(1,950)		642		(1,309)
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders (1)		0.23		(11.49)		3.77		(7.63)
Average Basic Shares		169.6		169.7		169.5		171.6
Average Diluted Shares		170.9		171.1		170.6		173.4
Net Income (Loss) Return on Equity ("ROE")		75.7%		NM		11.6%		6.2%
Adjusted Income (Loss) from Operations Available to Common Stockholders,
Excluding AOCI and Preferred Stock ROE		1.5%		-73.1%		8.6%		-16.2%
Adjusted Income (Loss) from Operations ROE		1.4%		-60.7%		9.3%		-13.3%
Book Value per Share (BVPS), Including AOCI	$	13.04	$	16.45	$	13.04	$	16.45
Book Value per Share, Excluding AOCI		63.03		57.46		63.03		57.46
Adjusted Book Value per Share		63.53		68.53		63.53		68.53

(1) 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.
(2) Prior year numbers have been adjusted to reflect LDTI accounting.

The current quarter’s adjusted income from operations available to common stockholders included net unfavorable notable items of $144 million, $0.84 per share, related to the company’s annual review of reserve assumptions. As adjusted for the adoption of long-duration targeted improvements, or LDTI, the prior-year quarter included net unfavorable notable items of $2.1 billion, or $12.47 per share, related to the company’s annual review of reserve assumptions.

In addition to the impact of unfavorable notable items, this quarter’s adjusted income from operations available to common stockholders included an unfavorable impact of $0.41 per diluted share consisting of:

$0.13 per diluted share from alternative investment income below long-term targeted levels,

$0.13 per diluted share related to unclaimed property identified by a process enhancement largely impacting Life Insurance,

$0.09 per diluted share related to a Life Insurance surrender benefit program that concluded this quarter, and

$0.06 per diluted share related to legal accruals.

The prior-year quarter included an unfavorable impact of $0.62 per diluted share from alternative investment income below long-term targeted levels, and no impact from the other items listed.

Third Quarter 2023 – Segment Results

Annuities

Annuities reported income from operations of $248 million, down 10% compared to the prior-year quarter. The decrease was primarily due to higher expenses. Current quarter income from operations included net unfavorable notable items of $12 million related to the company’s annual review of reserve assumptions, while prior-year results included net favorable notable items of $1 million related to the company’s annual review of reserve assumptions.

Total annuity sales of $2.7 billion were down 16% from the prior-year quarter; however, sequentially, total annuity sales increased by 6% driven by higher fixed and traditional variable annuity sales. Net outflows were $874 million in the quarter compared to net inflows of $322 million in the prior-year quarter.

Average account balances, net of reinsurance, for the quarter of $151 billion were up 4% from the prior-year quarter. Variable annuities with living benefits represented 44% of total annuity account balances, net of reinsurance, a decrease of 3 percentage points compared to the prior-year quarter. RILA represented 17% of total annuity account balances, net of reinsurance, an increase of 4 percentage points compared to the prior-year quarter.

Life Insurance

Life Insurance reported a loss from operations of $173 million compared to a loss from operations of $2.2 billion in the prior-year quarter. Current quarter income from operations included net unfavorable notable items of $156 million related to the company’s annual review of reserve assumptions, while prior-year results included net unfavorable notable items of $2.1 billion related to the company’s annual review of reserve assumptions.

Total Life sales of $144 million were down 16% from the prior-year quarter; sequentially, total Life sales were up 17%, driven largely by executive benefits sales.

Group Protection

Group Protection reported income from operations of $68 million in the quarter compared to income from operations of $12 million in the prior-year quarter. The increase was primarily driven by improved disability underwriting results. Current quarter income from operations included net favorable notable items of $24 million related to the company’s annual review of reserve assumptions, compared to an unfavorable $12 million in the prior year.

The total loss ratio was 75% in the current quarter compared to 81% in the prior-year quarter with the improvement driven by lower disability incidence.

Insurance premiums of $1.3 billion in the quarter were up 4% compared to the prior-year quarter. Group Protection sales for the quarter were $71 million, down 19% compared to the prior-year quarter, partially offset by 26% growth in supplemental health sales.

Retirement Plan Services

Retirement Plan Services reported income from operations of $43 million, down 9% compared to the prior-year quarter. The decrease was primarily driven by higher expenses, partially offset by higher fee and spread income. The current quarter and prior-year quarter included no notable items related to the company’s annual review of reserve assumptions.

Total deposits for the quarter of $2.7 billion were down 13% compared to the prior-year quarter. Net outflows totaled $272 million for the quarter while trailing-twelve-months’ net inflows were $515 million.

Average account balances for the quarter of $96 billion were up 9% from the prior-year quarter.

Other Operations

Other Operations reported a loss from operations of $113 million versus a loss of $112 million in the prior-year quarter.

Third Quarter Highlights - Realized Gains, Losses, and Other / Impacts to Net Income

Realized gains/losses and other impacts to net income (after-tax) in the quarter were primarily driven by:

$1.0 billion gain from annuity product market risk benefits and the associated hedging programs, primarily driven by the rise in interest rates.

$369 million after-tax impairment of fixed maturity available-for-sale (AFS) securities in an unrealized loss position for the three months ended September 30, 2023, resulting from the company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $164 million, after-tax, as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement with Fortitude Re in the second quarter of 2023 and will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes.

Unrealized Gains and Losses

The company reported a net unrealized loss of $14.2 billion, pre-tax, on its available-for-sale securities as of September 30, 2023. This compares to a net unrealized loss of $13.5 billion, pre-tax, as of September 30, 2022, with the year-over-year decrease primarily driven by higher treasury rates.

Capital and Liquidity

Holding company available liquidity was $455 million as of September 30, 2023, compared to $756 million in the prior-year quarter due to the payment of a $500 million debt maturity.

As of September 30, 2023, the estimated RBC ratio was in the 375-385% range.

Versus the prior-year period, as of September 30, 2023, book value per share, including AOCI, decreased 21% to $13.04, book value per share, excluding AOCI, increased 10% to $63.03, and adjusted book value per share decreased 7% to $63.53.

There was no negative impact to statutory capital related to the annual review of reserve assumptions.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income from operations ROE, book value per share, excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, net income (loss) ROE and book value per share, 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 2023 statistical supplement available on its website http://www.lincolnfinancial.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 2, 2023.

The conference call will be broadcast live through the company website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the conference call to download and install any necessary streaming media software. A replay of the call will be available by 1:00 p.m. Eastern Time on November 2, 2023 at www.lincolnfinancial.com/webcast.

About Lincoln Financial Group

Lincoln Financial Group helps people to plan, protect and retire with confidence. As of Dec. 31, 2022, approximately 16 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection and retirement plan services. As of September 30, 2023, the company had $290 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

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Explanatory Notes on Use of Non-GAAP Measures

Management believes that adjusted income (loss) from operations (or adjusted operating income), adjusted income (loss) from operations available to common stockholders, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income (loss) from operations ROE, adjusted operating revenues, and adjusted income (loss) from operations per diluted share available to common stockholders 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 as 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”), and adjusted book value per share 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 are unpredictable and can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and 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 income (loss) from operations available to common stockholders, adjusted operating revenues, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE and adjusted income (loss) from operations ROE (in each case including and excluding the effect of average goodwill), book value per share, excluding AOCI, and adjusted book value per share are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, adjusted operating revenues, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income (loss) from operations ROE, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, revenues, net income (loss) ROE and book value per share, including AOCI, 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:

Items related to annuity product features, which include changes in MRBs, including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with the hedge program (collectively, “net annuity product features”);

Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);

Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);

Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);

Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);

Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

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

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

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

Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

Income (loss) from discontinued operations.

Adjusted Income (Loss) from Operations Available to Common Stockholders

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred units of LNC stock in our deferred compensation plans.

Adjusted Operating Revenues

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

Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the embedded derivative liabilities of our indexed annuity and IUL contracts and the associated index options we hold to hedge them (collectively, “revenue adjustments from annuity and life insurance product features”);

Credit loss-related adjustments;

Investment gains (losses);

Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans;

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

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

Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE

Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE 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 available to common stockholders by average stockholders’ equity, excluding AOCI and preferred stock.

Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates.

Management evaluates ROE by both including and excluding the effect of average goodwill.

Adjusted Income (Loss) from Operations ROE

Adjusted income (loss) from operations ROE is calculated based upon a non-GAAP financial measure.

It is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity.

Management evaluates ROE by both including and excluding the effect of average goodwill.

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 and preferred stock, 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.

Adjusted Book Value Per Share

Adjusted book value per share is calculated based upon a non-GAAP financial measure.

It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts by (b) common shares outstanding.

We provide adjusted book value per share to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations.

Management believes adjusted book value per share is useful to investors because it eliminates the effect of market movements that are unpredictable that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

Book value per share is the most directly comparable GAAP measure.

Other Definitions

Notable Items

Notable items are 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.

Holding Company Available Liquidity

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.

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

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

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

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,
	2023		2022		2023		2022
Net Income (Loss) Available to Common
Stockholders – Diluted	$	819	$	(1,777)	$	410	$	537
Less:
Preferred stock dividends declared		(34)		-		(71)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		(1)		(2)		(8)
Net Income (Loss)		853		(1,776)		483		545
Less:
Net annuity product features, after-tax		1,045		893		850		2,591
Net life insurance product features, after-tax		85		20		(133)		16
Credit loss-related adjustments, after-tax		(21)		(104)		(41)		(96)
Investment gains (losses), after-tax (2)		(306)		10		(880)		5
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax		(23)		(12)		(21)		(36)
Impairment of intangibles		-		(634)		-		(634)
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax (3)		-		-		(7)		-
Total adjustments		780		173		(232)		1,846
Adjusted Income (Loss) from Operations	$	73	$	(1,949)	$	715	$	(1,301)

Earnings (Loss) Per Common Share – Diluted (4)
Net income (loss)	$	4.79	$	(10.47)	$	2.40	$	3.10
Adjusted income (loss) from operations		0.23		(11.49)		3.77		(7.63)

Stockholders’ Equity, Average
Stockholders’ equity	$	4,509	$	6,057	$	5,567	$	11,645
Less:
Preferred stock		986		-		986		-
AOCI		(6,792)		(4,610)		(5,425)		852
Stockholders’ equity, excluding AOCI and preferred stock		10,315		10,667		10,006		10,793
MRB-related impacts		986		(2,177)		(95)		(2,359)
GLB and GDB hedge instruments gains (losses) (5)		(1,519)		N/A		(921)		N/A
Adjusted average stockholders' equity	$	10,848	$	12,844	$	11,022	$	13,152

Return on Equity
Net income (loss) ROE		75.7%		NM		11.6%		6.2%
Adjusted income (loss) from operations available to common stockholders,
excluding AOCI and preferred stock ROE		1.5%		-73.1%		8.6%		-16.2%
Adjusted income (loss) from operations ROE		1.4%		-60.7%		9.3%		-13.3%

(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2) Includes a $493 million and $369 million after-tax impairment of fixed maturity AFS securities in an unrealized loss position for the three
months ended June 30, 2023 and September 30,2023, respectively, resulting from the Company's intent to sell these securities as part of
the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction,
there are additional fixed maturity AFS securities in an unrealized gain position of approximately $164 million after-tax as of September
30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market
value upon entry into the agreement in the second quarter and recognized additional impairment of certain of these securities during
the third quarter due to market fluctuations. The Company will recognize a gain for any securities in an unrealized gain position at the
time when the transaction closes.
(3) Includes costs pertaining to the Fortitude Re reinsurance transaction.

(4) 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.
(5) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted
stockholders’ equity to align to the updated hedge program.

Lincoln National Corporation

Reconciliation of Book Value per Share


	As of September 30,
	2023		2022
Book Value Per Common Share
Book value per share	$	13.04	$	16.45
Less:
AOCI		(49.99)		(41.01)
Book value per share, excluding AOCI		63.03		57.46
Less:
MRB-related gains (losses)		9.11		(11.07)
GLB and GDB hedge instruments gains (losses) (1)		(9.61)		N/A
Adjusted book value per share	$	63.53	$	68.53

(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted
stockholders’ equity to align to the updated hedge program.

Lincoln National Corporation

Digest of Earnings



	For the
(in millions, except per share data)	Three Months Ended
	September 30,
	2023		2022

Revenues	$	4,203	$	4,672

Net Income (Loss)	$	853	$	(1,776)
Preferred stock dividends declared		(34)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		(1)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	819	$	(1,777)

Earnings (Loss) Per Common Share – Basic	$	4.82	$	(10.46)
Earnings (Loss) Per Common Share – Diluted (2)		4.79		(10.47)

Average Shares – Basic	169,645,881		169,706,526
Average Shares – Diluted	170,890,502		171,095,360

	For the
	Nine Months Ended
	September 30,
	2023		2022

Revenues	$	10,946	$	14,969

Net Income (Loss)	$	483	$	545
Preferred stock dividends declared		(71)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(2)		(8)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	410	$	537

Earnings (Loss) Per Common Share – Basic	$	2.43	$	3.18
Earnings (Loss) Per Common Share – Diluted (2)		2.40		3.10

Average Shares – Basic	169,529,509		171,647,108
Average Shares – Diluted	170,625,444		173,396,079



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

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:

Weak general economic and business conditions that may affect demand for our products, account balances, 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 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;

The impact of new and emerging privacy regulations that may lead to increased compliance costs and reputation risk;

Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;

Actions taken by reinsurers to raise rates on in-force business;

Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;

Rapidly increasing interest rates causing policyholders to surrender life insurance and annuity policies, thereby causing realized investment losses;

The impact of the implementation of the provisions of the European Market Infrastructure Regulation 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; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits, of our subsidiaries’ variable annuity products;

Ineffectiveness of our risk management policies and procedures, including our various hedging strategies;

A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings;

Changes in accounting principles that may affect our consolidated financial statements;

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 inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative;

The adequacy and collectability of reinsurance that we have obtained;

Pandemics, acts of terrorism, war or other human-caused and natural catastrophes that may adversely impact liabilities for policyholder claims, affect our businesses and increase 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.

EX-99.2 3 lnc-20231101xex99_2.htm EX-99.2 3Q23 - Stat Supp

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	Lincoln Financial Group
	Table of Contents


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

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein beginning on page 22.

Adjusted Income (Loss) From Operations

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

• Items related to annuity product features, which include changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”), changes in the fair value

of the derivative instruments we hold to hedge guaranteed living benefits (“GLB”) and guaranteed death benefits (“GDB”) riders, net of fee income allocated to support the cost of hedging them,

and changes in the fair value of the embedded derivative liabilities of our indexed annuity contracts and the associated index options we hold to hedge them, including collateral expense associated with

the hedge program (collectively, “net annuity product features”);

• Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of variable universal life insurance (“VUL”) hedging, changes in reserves resulting

from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our indexed universal life insurance (“IUL”) contracts

and the associated index options we hold to hedge them (collectively, “net life insurance product features”);

• Credit loss-related adjustments on fixed maturity available for sale (“AFS”) securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);

• Changes in the fair value of equity securities, certain derivatives, certain other investments and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment

gains (losses)”);

• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-

related embedded derivatives, trading securities and certain mortgage loans”);

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

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

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

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

• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

• Income (loss) from discontinued operations.

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred

units of LNC stock in our deferred compensation plans.

Adjusted Operating Revenues

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

• Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them, and changes in the fair value of the

embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them (“revenue adjustments from annuity and

life insurance product features”);

• Credit loss-related adjustments;

• Investment gains (losses);

• Changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans;

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

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

Management believes that the non-GAAP performance measures discussed above 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 (loss)

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

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures, Continued

Stockholders’ Equity, Excluding AOCI and Preferred Stock

Stockholders’ equity, excluding AOCI is stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates market movements that are

unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Stockholders’ equity is the most directly comparable GAAP measure.

Adjusted Stockholders’ Equity

For presented periods prior to January 1, 2023, adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts. For periods beginning on or after January 1, 2023,

adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts and GLB and GDB hedged instruments gains (losses), to align to updates made to our variable

annuity hedge program effective January 1, 2023. Management believes this metric is useful to investors because it eliminates the effect of market movements that are unpredictable and can fluctuate significantly

from period to period, primarily related to changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable GAAP measure.

Book Value per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI and preferred stock, 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 are unpredictable and 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.

Adjusted Book Value per Share

Adjusted book value per share is calculated by dividing stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts, by common shares outstanding. We provide adjusted book value per share

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

the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates. Book value per share is the most directly

comparable GAAP measure.

Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE

Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE is calculated by dividing annualized adjusted income (loss) from operations available

to common stockholders by average stockholders’ equity, excluding AOCI and preferred stock. Management believes this metric is useful to investors because it eliminates the effect of market movements

on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.

Adjusted Income (Loss) From Operations ROE

Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity.

related to changes in equity markets and interest rates. Net income (loss) ROE is the most directly comparable GAAP measure.

Management believes that the non-GAAP measures discussed above allow 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.

Computations

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

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

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

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

• 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.

Page 1b

Lincoln Financial Group

Notes

Definitions

outstanding.

Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. See adjusted income (loss) from operations ROE and adjusted income (loss) from

operations available to common stockholders, excluding AOCI and preferred stock ROE metrics on page 1b for further information on how these metrics are calculated. Management evaluates consolidated

ROE by both including and excluding the effect of average goodwill.

Indexed variable annuity (“IVA”) is also referred to as registered indexed-linked annuity (“RILA”).

Sales as reported consist of the following:

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

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

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

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

single premium deposits;

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

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

Statistical Supplement is Dated

This document is dated November 1, 2023, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

Page 1c

Lincoln Financial Group

Credit Ratings

Ratings as of November 1, 2023

Standard

AM Best

Fitch

Moody's

& Poor's

Senior Debt Ratings

bbb+

BBB+

Baa2

BBB+

Financial Strength Ratings

The Lincoln National Life Insurance Company

A+

First Penn-Pacific Life Insurance Company

A+

A-

Lincoln Life & Annuity Company of New York

A+

Investor Inquiries May Be Directed To:

Adam Cohen, Investor Relations

Email: InvestorRelations@lfg.com

Phone: 800-237-2920

Page 2

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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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Revenues
Insurance premiums	$	1,548	$	1,564	$	1,579	$	1,612	$	1,566	1.2%	$	4,523	$	4,757	5.2%
Fee income		1,381		1,354		1,379		1,365		1,363	-1.3%		4,249		4,107	-3.3%
Net investment income		1,295		1,412		1,466		1,508		1,494	15.4%		4,105		4,468	8.8%
Realized gain (loss)		249		(692)		(828)		(1,784)		(453)	NM		1,531		(3,066)	NM
Amortization of deferred gain on business
sold through reinsurance		10		10		9		9		15	50.0%		31		34	9.7%
Other revenues		189		193		209		219		218	15.3%		530		646	21.9%
Total revenues		4,672		3,841		3,814		2,929		4,203	-10.0%		14,969		10,946	-26.9%

Expenses
Benefits		2,149		2,220		2,291		2,192		2,152	0.1%		6,259		6,635	6.0%
Interest credited		726		744		785		808		831	14.5%		2,133		2,424	13.6%
Market risk benefit (gain) loss		(798)		(1,567)		619		(2,023)		(1,428)	-78.9%		(1,679)		(2,832)	-68.7%
Policyholder liability remeasurement (gain) loss		2,692		(52)		(118)		(110)		159	-94.1%		2,818		(68)	NM
Commissions and other expenses		1,280		1,385		1,300		1,335		1,335	4.3%		3,741		3,970	6.1%
Interest and debt expense		71		77		83		84		84	18.3%		205		250	22.0%
Spark program expense		44		49		24		41		36	-18.2%		118		101	-14.4%
Impairment of intangibles		634		-		-		-		-	-100.0%		634		-	-100.0%
Total expenses		6,798		2,856		4,984		2,327		3,169	-53.4%		14,229		10,480	-26.3%
Income (loss) before taxes		(2,126)		985		(1,170)		602		1,034	148.6%		740		466	-37.0%
Federal income tax expense (benefit)		(350)		173		(289)		91		181	151.7%		195		(17)	NM
Net income (loss)		(1,776)		812		(881)		511		853	148.0%		545		483	-11.4%
Preferred stock dividends declared		-		-		(25)		(11)		(34)	NM		-		(71)	NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(1)		(5)		(3)		2		-	100.0%		(8)		(2)	75.0%
Net income (loss) available to common
stockholders – diluted	$	(1,777)	$	807	$	(909)	$	502	$	819	146.1%	$	537	$	410	-23.6%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	(10.47)	$	4.73	$	(5.37)	$	2.94	$	4.79	145.7%	$	3.10	$	2.40	-22.6%





Page 3


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

	As of
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	77,446	$	79,023	$	80,448	$	79,307	$	76,001	-1.9%
U.S. government bonds		384		379		383		371		373	-2.9%
State and municipal bonds		5,089		5,070		5,257		5,074		4,770	-6.3%
Foreign government bonds		338		318		309		281		273	-19.2%
Residential mortgage-backed securities		2,048		2,009		2,050		2,015		1,928	-5.9%
Commercial mortgage-backed securities		1,549		1,674		1,671		1,684		1,701	9.8%
Asset-backed securities		10,347		10,904		11,458		11,793		12,393	19.8%
Hybrid and redeemable preferred securities		371		359		360		365		365	-1.6%
Total fixed maturity AFS securities, net of allowance for credit losses		97,572		99,736		101,936		100,890		97,804	0.2%
Trading securities		3,580		3,498		3,266		2,943		2,788	-22.1%
Equity securities		427		427		414		403		383	-10.3%
Mortgage loans on real estate, net of allowance for credit losses		18,066		18,301		18,327		18,460		18,751	3.8%
Policy loans		2,347		2,359		2,383		2,423		2,428	3.5%
Derivative investments		3,456		3,594		4,005		5,155		5,790	67.5%
Other investments		3,812		3,739		3,892		4,195		4,551	19.4%
Total investments		129,260		131,654		134,223		134,469		132,495	2.5%
Cash and invested cash		1,472		3,343		3,766		3,768		2,529	71.8%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,140		12,235		12,277		12,316		12,341	1.7%
Reinsurance recoverables, net of allowance for credit losses		19,460		19,443		19,309		19,030		18,389	-5.5%
Market risk benefit assets		2,428		2,807		3,445		3,906		4,108	69.2%
Accrued investment income		1,283		1,253		1,277		1,277		1,372	6.9%
Goodwill		1,144		1,144		1,144		1,144		1,144	0.0%
Other assets		18,435		18,802		19,280		19,456		20,223	9.7%
Separate account assets		137,295		143,536		148,421		153,246		145,810	6.2%
Total assets	$	322,917	$	334,217	$	343,142	$	348,612	$	338,411	4.8%






Page 4a


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

	As of
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	111,732	$	114,435	$	116,167	$	117,598	$	117,210	4.9%
Future contract benefits		38,087		38,826		39,757		39,711		39,362	3.3%
Market risk benefit liabilities		2,756		2,078		1,976		1,548		1,385	-49.7%
Deferred front-end loads		4,834		5,052		5,250		5,450		5,653	16.9%
Payables for collateral on investments		6,865		6,712		6,803		7,062		8,046	17.2%
Short-term debt		500		500		500		500		-	-100.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		867		867		867		867		867	0.0%
Financial		5,092		5,088		5,107		5,087		5,038	-1.1%
Other liabilities		12,106		12,021		11,562		11,724		11,841	-2.2%
Separate account liabilities		137,295		143,536		148,421		153,246		145,810	6.2%
Total liabilities		320,134		329,115		336,410		342,793		335,212	4.7%

Stockholders’ Equity
Preferred stock		-		986		986		986		986	NM
Common stock		4,534		4,544		4,560		4,575		4,591	1.3%
Retained earnings		5,189		5,924		4,940		5,362		6,102	17.6%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(9,677)		(8,528)		(6,754)		(7,267)		(10,163)	-5.0%
Market risk benefit non-performance risk gain (loss)		2,175		1,741		2,766		1,842		998	-54.1%
Policyholder liability discount rate remeasurement gain (loss)		806		747		545		657		1,021	26.7%
Foreign currency translation adjustment		(47)		(34)		(31)		(26)		(32)	31.9%
Funded status of employee benefit plans		(197)		(278)		(280)		(310)		(304)	-54.3%
Total accumulated other comprehensive income (loss)		(6,940)		(6,352)		(3,754)		(5,104)		(8,480)	-22.2%
Total stockholders’ equity		2,783		5,102		6,732		5,819		3,199	14.9%
Total liabilities and stockholders’ equity	$	322,917	$	334,217	$	343,142	$	348,612	$	338,411	4.8%







Page 4b


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

	As of or For the Three Months Ended											As of or For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Income (Loss)
Net income (loss)	$	(1,776)	$	812	$	(881)	$	511	$	853	148.0%	$	545	$	483	-11.4%
Pre-tax adjusted income (loss) from operations		(2,513)		127		310		403		47	101.9%		(1,765)		760	143.1%
After-tax adjusted income (loss) from operations (1)		(1,949)		134		288		354		73	103.7%		(1,301)		715	155.0%
Adjusted operating tax rate		22.5%		-5.5%		7.2%		12.2%		-56.2%			26.3%		5.9%
Adjusted income (loss) from operations available to
common stockholders		(1,950)		129		260		343		39	102.0%		(1,309)		642	149.1%

ROE
Net income (loss) ROE		NM		82.3%		-59.6%		32.6%		75.7%			6.2%		11.6%
Adjusted income (loss) from operations available to
common stockholders, excluding AOCI and preferred
stock ROE		-73.1%		5.1%		10.4%		14.1%		1.5%			-16.2%		8.6%
Adjusted income (loss) from operations ROE		-60.7%		4.6%		9.3%		12.4%		1.4%			-13.3%		9.3%

Per Common Share
Net income (loss) (diluted)	$	(10.47)	$	4.73	$	(5.37)	$	2.94	$	4.79	145.7%	$	3.10	$	2.40	-22.6%
Adjusted income (loss) from operations (diluted) (2)		(11.49)		0.76		1.52		2.02		0.23	102.0%		(7.63)		3.77	149.4%
Dividends declared during the period		0.45		0.45		0.45		0.45		0.45	0.0%		1.35		1.35	0.0%

Book Value Per Common Share
Book value per share	$	16.45	$	24.32	$	33.89	$	28.49	$	13.04	-20.7%	$	16.45	$	13.04	-20.7%
Book value per share, excluding AOCI (3)		57.46		61.86		56.04		58.58		63.03	9.7%		57.46		63.03	9.7%
Adjusted book value per share (3)		68.53		65.72		66.05		64.37		63.53	-7.3%		68.53		63.53	-7.3%

Common Shares
Repurchased during the period		1.0		-		-		-		-	-100.0%		8.7		-	-100.0%
End-of-period – basic		169.2		169.2		169.5		169.6		169.7	0.3%		169.2		169.7	0.3%
Average for the period – basic		169.7		169.2		169.4		169.6		169.6	-0.1%		171.6		169.5	-1.2%
End-of-period – diluted		170.7		170.5		170.5		170.0		171.0	0.2%		170.7		171.0	0.2%
Average for the period – diluted		171.1		170.6		170.5		169.9		170.9	-0.1%		173.4		170.6	-1.6%

(1) See reconciliation to net income (loss) on page 22.
(2) See reconciliation to earnings (loss) per common share - diluted on page 23.
(3) See reconciliation to stockholders’ equity and book value per common share on page 24.

Page 5


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

	As of or For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Cash Returned to Common Stockholders
Shares repurchased	$	50	$	-	$	-	$	-	$	-	-100.0%	$	550	$	-	-100.0%
Common dividends		77		76		76		76		76	-1.3%		234		229	-2.1%
Total cash returned to common stockholders	$	127	$	76	$	76	$	76	$	76	-40.2%	$	784	$	229	-70.8%

Cash Returned to Preferred Stockholders - Dividends	$	-	$	-	$	25	$	11	$	34	NM	$	-	$	71	NM

Leverage Ratio
Short-term debt	$	500	$	500	$	500	$	500	$	-	-100.0%
Long-term debt		5,959		5,955		5,974		5,954		5,905	-0.9%
Total debt (1)		6,459		6,455		6,474		6,454		5,905	-8.6%
Preferred stock		-		986		986		986		986	NM
Total debt and preferred stock		6,459		7,441		7,460		7,440		6,891	6.7%
Less:
Operating debt (2)		867		867		867		867		867	0.0%
Pre-funding of upcoming debt maturities		300		500		500		500		-	-100.0%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
50% of preferred stock		-		493		493		493		493	NM
Carrying value of fair value hedges and other items		169		164		182		161		111	-34.3%
Total numerator	$	4,821	$	5,115	$	5,116	$	5,117	$	5,118	6.2%

Adjusted stockholders’ equity (3)	$	11,595	$	11,120	$	11,197	$	10,918	$	10,778	-7.0%
Add:
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
50% of preferred stock		-		493		493		493		493	NM
Total numerator		4,821		5,115		5,116		5,117		5,118	6.2%
Total denominator	$	16,718	$	17,030	$	17,108	$	16,830	$	16,691	-0.2%

Leverage ratio (4)		28.8%		30.0%		29.9%		30.4%		30.7%

Holding Company Available Liquidity	$	756	$	960	$	954	$	957	$	455	-39.8%

(1) Excludes obligations under finance leases and certain financing arrangements of $631 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.
(3) See reconciliation to stockholders’ equity on page 24.
(4) The leverage ratio as of June 30, 2023 and September 30, 2023, was impacted by the denominator including a $493 million and $369 million after-tax impairment of fixed maturity AFS
securities in an unrealized loss position, respectively, resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction.
Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $164 million,
after-tax, as of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into
the agreement in the second quarter and recognized additional impairment of certain of these securities during the third quarter due to higher interest rates. The Company will recognize
a gain for any securities in an unrealized gain position at the time when the transaction closes.

Page 6


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Annuities
Operating revenues	$	1,113	$	1,125	$	1,141	$	1,190	$	1,197	7.5%	$	3,356	$	3,528	5.1%
Deposits		3,232		3,198		3,164		2,560		2,737	-15.3%		8,635		8,461	-2.0%
Net flows		322		152		(331)		(1,108)		(874)	NM		(489)		(2,312)	NM
Average account balances, net of reinsurance		144,858		142,099		146,331		148,260		151,312	4.5%		152,008		148,613	-2.2%
Alternative investment income (1)		(4)		1		3		6		4	195.6%		6		13	102.4%

Life Insurance
Operating revenues	$	1,623	$	1,688	$	1,757	$	1,760	$	1,723	6.2%	$	5,059	$	5,241	3.6%
Deposits		1,406		1,605		1,320		1,333		1,272	-9.5%		4,216		3,927	-6.9%
Net flows		1,002		1,149		852		932		821	-18.1%		2,974		2,605	-12.4%
Average account balances, net of reinsurance		47,663		47,963		49,100		50,049		50,130	5.2%		49,394		49,760	0.7%
Average in-force face amount		1,037,952		1,061,415		1,075,614		1,081,795		1,085,253	4.6%		1,011,299		1,080,887	6.9%
Alternative investment income (1)		(51)		9		46		68		44	186.3%		38		158	NM

Group Protection
Operating revenues	$	1,333	$	1,346	$	1,388	$	1,400	$	1,388	4.1%	$	3,958	$	4,176	5.5%
Insurance premiums		1,200		1,213		1,251		1,263		1,251	4.3%		3,556		3,765	5.9%
Alternative investment income (1)		(2)		1		2		3		2	181.3%		4		7	63.1%

Retirement Plan Services
Operating revenues	$	316	$	325	$	328	$	334	$	327	3.5%	$	949	$	988	4.1%
Deposits		3,091		2,973		3,209		2,897		2,700	-12.6%		9,928		8,806	-11.3%
Net flows		805		51		535		201		(272)	NM		2,645		464	-82.5%
Average account balances		88,196		87,987		91,457		94,099		96,473	9.4%		91,624		93,897	2.5%
Alternative investment income (1)		(2)		1		2		3		2	200.3%		4		7	97.8%

Consolidated
Adjusted operating revenues (2)	$	4,421	$	4,531	$	4,657	$	4,730	$	4,673	5.7%	$	13,433	$	14,060	4.7%
Deposits		7,729		7,776		7,693		6,790		6,709	-13.2%		22,779		21,194	-7.0%
Net flows		2,129		1,352		1,056		25		(325)	NM		5,130		757	-85.2%
Average account balances, net of reinsurance		280,717		278,049		286,888		292,408		297,915	6.1%		293,026		292,270	-0.3%
Alternative investment income (1)		(61)		12		53		80		53	186.8%		54		185	244.6%

(1) Excludes alternative investment income on investments supporting our modified coinsurance agreements as we have a limited economic interest in the investments.
(2) See reconciliation to total revenues on page 23.

Page 7


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Sales
Annuities:
Indexed variable (RILA)	$	1,246	$	1,211	$	1,147	$	1,123	$	1,069	-14.2%	$	3,515	$	3,339	-5.0%
Other variable without GLBs		374		303		255		341		359	-4.0%		1,399		954	-31.8%
Other variable with GLBs		475		432		445		494		530	11.6%		1,689		1,470	-13.0%
Total variable		2,095		1,946		1,847		1,958		1,958	-6.5%		6,603		5,763	-12.7%
Fixed		1,167		1,264		1,317		624		770	-34.0%		2,066		2,712	31.3%
Total Annuities	$	3,262	$	3,210	$	3,164	$	2,582	$	2,728	-16.4%	$	8,669	$	8,475	-2.2%

Life Insurance:
IUL/UL	$	40	$	41	$	34	$	28	$	23	-42.5%	$	93	$	85	-8.6%
MoneyGuard®		22		26		21		23		27	22.7%		69		71	2.9%
VUL		36		49		30		34		29	-19.4%		114		93	-18.4%
Term		47		39		30		26		23	-51.1%		138		79	-42.8%
Executive Benefits		26		31		15		12		42	61.5%		104		69	-33.7%
Total Life Insurance	$	171	$	186	$	130	$	123	$	144	-15.8%	$	518	$	397	-23.4%

Group Protection:
Life	$	41	$	141	$	82	$	54	$	30	-26.8%	$	157	$	167	6.4%
Disability		37		195		40		36		32	-13.5%		143		107	-25.2%
Dental		10		20		6		6		9	-10.0%		21		21	0.0%
Total Group Protection	$	88	$	356	$	128	$	96	$	71	-19.3%	$	321	$	295	-8.1%
Percent employee-paid		49.4%		35.7%		70.3%		54.8%		48.8%			51.6%		60.1%

Retirement Plan Services:
First-year sales	$	991	$	1,059	$	736	$	819	$	464	-53.2%	$	3,399	$	2,019	-40.6%
Recurring deposits		2,100		1,914		2,473		2,078		2,236	6.5%		6,529		6,787	4.0%
Total Retirement Plan Services	$	3,091	$	2,973	$	3,209	$	2,897	$	2,700	-12.6%	$	9,928	$	8,806	-11.3%







Page 8


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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Operating Revenues
Annuities	$	1,113	$	1,125	$	1,141	$	1,190	$	1,197	7.5%	$	3,356	$	3,528	5.1%
Life Insurance		1,623		1,688		1,757		1,760		1,723	6.2%		5,059		5,241	3.6%
Group Protection		1,333		1,346		1,388		1,400		1,388	4.1%		3,958		4,176	5.5%
Retirement Plan Services		316		325		328		334		327	3.5%		949		988	4.1%
Other Operations		36		47		43		46		38	5.6%		111		127	14.4%
Total segment operating revenues	$	4,421	$	4,531	$	4,657	$	4,730	$	4,673	5.7%	$	13,433	$	14,060	4.7%

General and Administrative Expenses,
Net of Amounts Capitalized
Annuities	$	118	$	110	$	123	$	135	$	138	16.9%	$	338	$	396	17.2%
Life Insurance		132		123		134		136		138	4.5%		365		407	11.5%
Group Protection		182		173		191		191		191	4.9%		513		573	11.7%
Retirement Plan Services		75		75		79		81		81	8.0%		213		241	13.1%
Other Operations		70		212		38		75		70	0.0%		165		184	11.5%
Total	$	577	$	693	$	565	$	618	$	618	7.1%	$	1,594	$	1,801	13.0%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.6%		9.8%		10.8%		11.3%		11.5%			10.1%		11.2%
Life Insurance		8.2%		7.3%		7.6%		7.7%		8.0%			7.2%		7.8%
Group Protection		13.7%		12.9%		13.8%		13.6%		13.8%			13.0%		13.7%
Retirement Plan Services		23.7%		23.2%		24.0%		24.3%		24.9%			22.5%		24.4%
Other Operations		193.6%		457.7%		90.0%		162.1%		177.3%			148.6%		142.7%
Total		13.1%		15.3%		12.1%		13.1%		13.2%			11.9%		12.8%









Page 9

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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	634	$	750	$	617	$	672	$	672	6.0%	$	1,755	$	1,961	11.7%
Commissions		660		654		615		617		603	-8.6%		1,967		1,835	-6.7%
Taxes, licenses and fees		81		88		94		81		96	18.5%		258		271	5.0%
Interest and debt expense		71		77		83		84		84	18.3%		205		250	22.0%
Expenses associated with reserve financing
and letters of credit		27		28		30		27		28	3.7%		80		86	7.5%
Total adjusted operating commissions and other
expenses incurred		1,473		1,597		1,439		1,481		1,483	0.7%		4,265		4,403	3.2%

Less Amounts Capitalized
General and administrative expenses		(57)		(57)		(52)		(54)		(54)	5.3%		(161)		(160)	0.6%
Commissions		(283)		(287)		(241)		(240)		(223)	21.2%		(829)		(705)	15.0%
Taxes, licenses and fees		(9)		(10)		(9)		(8)		(8)	11.1%		(29)		(25)	13.8%
Total amounts capitalized		(349)		(354)		(302)		(302)		(285)	18.3%		(1,019)		(890)	12.7%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,124		1,243		1,137		1,179		1,198	6.6%		3,246		3,513	8.2%

Amortization
Amortization of DAC, VOBA and other intangibles		265		266		268		271		270	1.9%		793		806	1.6%
Total operating commissions and other expenses	$	1,389	$	1,509	$	1,405	$	1,450	$	1,468	5.7%	$	4,039	$	4,319	6.9%













Page 10


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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	57	$	52	$	38	$	54	$	24	-57.9%	$	112	$	116	3.6%
Fee income (1)		574		556		540		546		557	-3.0%		1,791		1,644	-8.2%
Net investment income		348		389		421		437		451	29.6%		1,075		1,309	21.8%
Amortization of deferred gain on
business sold through reinsurance		6		6		5		5		11	83.3%		19		22	15.8%
Other revenues		128		122		137		148		154	20.3%		359		437	21.7%
Total operating revenues		1,113		1,125		1,141		1,190		1,197	7.5%		3,356		3,528	5.1%
Operating expenses:
Benefits		79		72		63		69		45	-43.0%		179		177	-1.1%
Interest credited		224		248		278		306		330	47.3%		646		914	41.5%
Policyholder liability remeasurement (gain) loss		1		-		(1)		(1)		19	NM		3		17	NM
Commissions incurred		254		240		240		240		238	-6.3%		777		719	-7.5%
Other expenses incurred		251		242		251		257		276	10.0%		748		785	4.9%
Amounts capitalized		(117)		(103)		(98)		(100)		(102)	12.8%		(346)		(300)	13.3%
Amortization		108		107		108		109		109	0.9%		322		324	0.6%
Total operating expenses		800		806		841		880		915	14.4%		2,329		2,636	13.2%
Income (loss) from operations before taxes		313		319		300		310		282	-9.9%		1,027		892	-13.1%
Federal income tax expense (benefit)		38		44		26		39		34	-10.5%		141		98	-30.5%
Income (loss) from operations	$	275	$	275	$	274	$	271	$	248	-9.8%	$	886	$	794	-10.4%

Effective Federal Income Tax Rate		12.3%		13.7%		8.6%		12.6%		12.0%			13.7%		11.1%

Return on Average Account Balances		76		77		75		73		66	(10)		78		71	(7)

Account Balances, Net of Reinsurance – End-of-Period
Indexed variable (RILA) account balances	$	17,735	$	20,130	$	21,841	$	24,407	$	25,006	41.0%	$	17,735	$	25,006	41.0%
Other variable account balances without GLBs		39,985		41,742		42,983		44,381		42,196	5.5%		39,985		42,196	5.5%
Other variable account balances with GLBs		64,057		65,877		67,274		68,460		64,754	1.1%		64,057		64,754	1.1%
Fixed account balances		14,810		14,989		15,053		14,828		14,694	-0.8%		14,810		14,694	-0.8%
Total account balances	$	136,587	$	142,738	$	147,151	$	152,076	$	146,650	7.4%		136,587		146,650	7.4%
Percent variable account balances with GLBs		46.9%		46.2%		45.7%		45.0%		44.2%			46.9%		44.2%

Fee Income, Gross of Hedge Allowance (1)	$	760	$	738	$	745	$	750	$	758	-0.3%	$	2,373	$	2,253	-5.1%
Net Investment Income, Net of Reinsurance (2)		299		337		376		396		409	36.8%		889		1,181	32.8%
Interest Credited, Net of Reinsurance (2)		183		202		224		247		270	47.5%		528		742	40.5%

(1) Fee income is reported net of the hedge allowance, which represents fees allocated to net annuity product features to support the cost of hedging.
(2) Net investment income and interest credited are both reported gross of reinsurance. Reinsurance impacts are settled through other revenues.

Page 11


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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	289	$	297	$	285	$	293	$	289	0.0%	$	849	$	867	2.1%
Fee income		745		735		776		753		739	-0.8%		2,260		2,269	0.4%
Net investment income		585		650		687		707		689	17.8%		1,937		2,083	7.5%
Operating realized gain (loss)		(2)		(2)		(2)		(2)		(2)	0.0%		(5)		(5)	0.0%
Amortization of deferred gain on
business sold through reinsurance		4		4		4		4		4	0.0%		13		12	-7.7%
Other revenues		2		4		7		5		4	100.0%		5		15	200.0%
Total operating revenues		1,623		1,688		1,757		1,760		1,723	6.2%		5,059		5,241	3.6%
Operating expenses:
Benefits		1,041		1,079		1,152		1,073		1,129	8.5%		2,992		3,354	12.1%
Interest credited		329		325		328		325		325	-1.2%		984		978	-0.6%
Policyholder liability remeasurement (gain) loss		2,708		(2)		(13)		14		183	-93.2%		2,855		183	-93.6%
Commissions incurred		177		189		148		143		129	-27.1%		509		421	-17.3%
Other expenses incurred		208		210		216		216		215	3.4%		609		647	6.2%
Amounts capitalized		(202)		(217)		(174)		(170)		(152)	24.8%		(588)		(496)	15.6%
Amortization		120		122		123		124		123	2.5%		360		371	3.1%
Total operating expenses		4,381		1,706		1,780		1,725		1,952	-55.4%		7,721		5,458	-29.3%
Income (loss) from operations before taxes		(2,758)		(18)		(23)		35		(229)	91.7%		(2,662)		(217)	91.8%
Federal income tax expense (benefit)		(587)		(9)		(10)		2		(56)	90.5%		(577)		(64)	88.9%
Income (loss) from operations	$	(2,171)	$	(9)	$	(13)	$	33	$	(173)	92.0%	$	(2,085)	$	(153)	92.7%

Effective Federal Income Tax Rate		21.3%		52.0%		45.0%		6.6%		24.2%			21.7%		29.3%

Average Account Balances, Net of Reinsurance	$	47,663	$	47,963	$	49,100	$	50,049	$	50,130	5.2%	$	49,394	$	49,760	0.7%

In-Force Face Amount
UL and other	$	362,098	$	363,884	$	364,101	$	364,633	$	364,586	0.7%	$	362,098	$	364,586	0.7%
Term insurance		689,101		707,747		715,495		719,361		721,927	4.8%		689,101		721,927	4.8%
Total in-force face amount	$	1,051,199	$	1,071,631	$	1,079,596	$	1,083,994	$	1,086,513	3.4%	$	1,051,199	$	1,086,513	3.4%





Page 12


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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,200	$	1,213	$	1,251	$	1,263	$	1,251	4.3%	$	3,556	$	3,765	5.9%
Net investment income		83		81		85		85		84	1.2%		253		254	0.4%
Other revenues		50		52		52		52		53	6.0%		149		157	5.4%
Total operating revenues		1,333		1,346		1,388		1,400		1,388	4.1%		3,958		4,176	5.5%
Operating expenses:
Benefits		994		1,030		1,037		1,019		979	-1.5%		3,003		3,036	1.1%
Interest credited		1		1		1		1		1	0.0%		4		4	0.0%
Policyholder liability remeasurement (gain) loss		(22)		(48)		(100)		(121)		(39)	-77.3%		(55)		(260)	NM
Commissions incurred		101		103		106		112		109	7.9%		291		327	12.4%
Other expenses incurred		235		223		248		246		245	4.3%		669		737	10.2%
Amounts capitalized		(23)		(29)		(25)		(28)		(26)	-13.0%		(70)		(79)	-12.9%
Amortization		32		33		32		33		33	3.1%		97		98	1.0%
Total operating expenses		1,318		1,313		1,299		1,262		1,302	-1.2%		3,939		3,863	-1.9%
Income (loss) from operations before taxes		15		33		89		138		86	NM		19		313	NM
Federal income tax expense (benefit)		3		7		18		29		18	NM		4		66	NM
Income (loss) from operations	$	12	$	26	$	71	$	109	$	68	NM	$	15	$	247	NM

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

Loss Ratios by Product Line
Life		71.8%		74.8%		80.4%		71.6%		76.8%			81.1%		76.3%
Disability		87.7%		85.7%		71.4%		70.7%		74.1%			85.0%		72.1%
Dental		72.0%		74.0%		76.4%		76.9%		75.9%			73.3%		76.4%
Total		81.0%		81.1%		75.0%		71.3%		75.2%			83.0%		73.8%










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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	64	$	63	$	64	$	65	$	66	3.1%	$	199	$	195	-2.0%
Net investment income		244		253		255		259		251	2.9%		723		765	5.8%
Other revenues		8		9		9		10		10	25.0%		27		28	3.7%
Total operating revenues		316		325		328		334		327	3.5%		949		988	4.1%
Operating expenses:
Interest credited		161		161		167		168		165	2.5%		469		501	6.8%
Commissions incurred		20		21		21		21		22	10.0%		58		65	12.1%
Other expenses incurred		83		83		89		90		90	8.4%		237		267	12.7%
Amounts capitalized		(6)		(5)		(5)		(5)		(5)	16.7%		(15)		(15)	0.0%
Amortization		5		4		5		5		5	0.0%		14		13	-7.1%
Total operating expenses		263		264		277		279		277	5.3%		763		831	8.9%
Income (loss) from operations before taxes		53		61		51		55		50	-5.7%		186		157	-15.6%
Federal income tax expense (benefit)		6		9		8		8		7	16.7%		27		24	-11.1%
Income (loss) from operations	$	47	$	52	$	43	$	47	$	43	-8.5%	$	159	$	133	-16.4%

Effective Federal Income Tax Rate		12.3%		15.0%		16.4%		14.9%		13.9%			14.1%		15.1%

Return on Average Account Balances		21		24		19		20		18	(3)		23		19	(4)

Pre-tax Net Margin		34.2%		37.1%		31.8%		33.5%		31.2%			38.6%		32.2%

Net Flows by Market
Small Market	$	157	$	174	$	148	$	99	$	21	-86.6%	$	121	$	267	120.7%
Mid - Large Market		899		298		711		408		83	-90.8%		3,303		1,202	-63.6%
Multi-Fund® and Other		(251)		(421)		(324)		(306)		(376)	-49.8%		(779)		(1,005)	-29.0%

Net Flows – Trailing Twelve Months	$	2,199	$	2,696	$	2,304	$	1,592	$	515	-76.6%	$	2,199	$	515	-76.6%

Base Spreads, Excluding Variable Investment Income (1)		1.05%		1.18%		1.14%		1.18%		1.10%	5		0.96%		1.14%	18

(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums.





Page 14


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Other Operations
Operating revenues:
Insurance premiums	$	2	$	2	$	5	$	2	$	1	-50.0%	$	6	$	8	33.3%
Net investment income		35		39		35		38		37	5.7%		117		110	-6.0%
Other revenues		(1)		6		3		6		-	100.0%		(12)		9	175.0%
Total operating revenues		36		47		43		46		38	5.6%		111		127	14.4%
Operating expenses:
Benefits		20		19		20		14		17	-15.0%		47		53	12.8%
Interest credited		9		8		10		9		9	0.0%		30		27	-10.0%
Policyholder liability remeasurement (gain) loss		-		2		-		1		(5)	NM		2		(3)	NM
Commissions and other expenses		28		160		13		32		39	39.3%		44		84	90.9%
Interest and debt expense		71		77		83		84		84	18.3%		205		250	22.0%
Spark program expense		44		49		24		41		36	-18.2%		118		101	-14.4%
Total operating expenses		172		315		150		181		180	4.7%		446		512	14.8%
Income (loss) from operations before taxes		(136)		(268)		(107)		(135)		(142)	-4.4%		(335)		(385)	-14.9%
Federal income tax expense (benefit)		(24)		(58)		(20)		(29)		(29)	-20.8%		(59)		(79)	-33.9%
Income (loss) from operations	$	(112)	$	(210)	$	(87)	$	(106)	$	(113)	-0.9%	$	(276)	$	(306)	-10.9%


















Page 15

A close-up of a logo

Description automatically generated with low confidence


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
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	12,050	$	12,140	$	12,235	$	12,277	$	12,316	2.2%	$	11,896	$	12,235	2.8%
Deferrals		350		357		306		304		289	-17.4%		1,024		899	-12.2%
Operating amortization		(260)		(262)		(264)		(265)		(264)	-1.5%		(780)		(793)	-1.7%
Balance as of end-of-period	$	12,140	$	12,235	$	12,277	$	12,316	$	12,341	1.7%	$	12,140	$	12,341	1.7%

DFEL
Balance as of beginning-of-period	$	4,623	$	4,834	$	5,052	$	5,250	$	5,450	17.9%	$	4,225	$	5,052	19.6%
Deferrals		273		284		267		271		277	1.5%		800		814	1.8%
Operating amortization		(62)		(66)		(69)		(71)		(74)	-19.4%		(191)		(213)	-11.5%
Balance as of end-of-period	$	4,834	$	5,052	$	5,250	$	5,450	$	5,653	16.9%	$	4,834	$	5,653	16.9%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,772	$	5,675	$	5,551	$	5,424	$	5,284	-8.5%	$	5,772	$	5,284	-8.5%





















Page 16


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Traditional Variable Annuities
Balance as of beginning-of-period	$	110,777	$	104,050	$	107,627	$	110,264	$	112,848	1.9%	$	138,907	$	107,627	-22.5%
Gross deposits		849		735		700		835		889	4.7%		3,088		2,424	-21.5%
Full surrenders and deaths		(1,255)		(1,168)		(1,527)		(1,543)		(1,559)	-24.2%		(4,102)		(4,629)	-12.8%
Other contract benefits		(972)		(1,086)		(979)		(993)		(984)	-1.2%		(3,067)		(2,955)	3.7%
Net flows		(1,378)		(1,519)		(1,806)		(1,701)		(1,654)	-20.0%		(4,081)		(5,160)	-26.4%
Policyholder assessments		(637)		(618)		(623)		(626)		(630)	1.1%		(1,981)		(1,878)	5.2%
Change in market value and reinvestment		(4,712)		5,714		5,066		4,911		(3,607)	23.5%		(28,795)		6,368	122.1%
Balance as of end-of-period, gross		104,050		107,627		110,264		112,848		106,957	2.8%		104,050		106,957	2.8%
Account balances reinsured		(8)		(8)		(7)		(7)		(7)	12.5%		(8)		(7)	12.5%
Balance as of end-of-period, net	$	104,042	$	107,619	$	110,257	$	112,841	$	106,950	2.8%	$	104,042	$	106,950	2.8%

Indexed Variable Annuities (RILA)
Balance as of beginning-of-period	$	16,827	$	17,735	$	20,130	$	21,841	$	24,407	45.0%	$	16,906	$	20,130	19.1%
Gross deposits		1,246		1,211		1,147		1,123		1,069	-14.2%		3,515		3,339	-5.0%
Full surrenders and deaths		(47)		(42)		(65)		(78)		(105)	NM		(132)		(248)	-87.9%
Other contract benefits		(13)		(22)		(35)		(23)		(20)	-53.8%		(37)		(78)	NM
Net flows		1,186		1,147		1,047		1,022		944	-20.4%		3,346		3,013	-10.0%
Policyholder assessments		(1)		(1)		(1)		(2)		(2)	-100.0%		(4)		(6)	-50.0%
Change in market value and reinvestment		62		90		125		163		190	206.5%		164		478	191.5%
Change in fair value of embedded derivative instruments		(339)		1,159		540		1,383		(533)	-57.2%		(2,677)		1,391	152.0%
Balance as of end-of-period, gross	$	17,735	$	20,130	$	21,841	$	24,407	$	25,006	41.0%	$	17,735	$	25,006	41.0%













Page 17a


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Fixed Annuities
Balance as of beginning-of-period	$	22,099	$	22,670	$	23,365	$	24,019	$	23,813	7.8%	$	22,552	$	23,365	3.6%
Gross deposits		1,137		1,252		1,317		602		779	-31.5%		2,032		2,698	32.8%
Full surrenders and deaths		(489)		(547)		(728)		(864)		(782)	-59.9%		(1,366)		(2,374)	-73.8%
Other contract benefits		(134)		(181)		(161)		(167)		(161)	-20.1%		(420)		(489)	-16.4%
Net flows		514		524		428		(429)		(164)	NM		246		(165)	NM
Policyholder assessments		(10)		(12)		(15)		(14)		(13)	-30.0%		(38)		(41)	-7.9%
Reinvested interest credited		134		143		154		159		158	17.9%		389		470	20.8%
Change in fair value of embedded derivative instruments		(67)		40		87		78		(113)	-68.7%		(479)		52	110.9%
Balance as of end-of-period, gross		22,670		23,365		24,019		23,813		23,681	4.5%		22,670		23,681	4.5%
Account balances reinsured		(7,860)		(8,376)		(8,966)		(8,985)		(8,987)	-14.3%		(7,860)		(8,987)	-14.3%
Balance as of end-of-period, net	$	14,810	$	14,989	$	15,053	$	14,828	$	14,694	-0.8%	$	14,810	$	14,694	-0.8%

Total
Balance as of beginning-of-period	$	149,703	$	144,455	$	151,122	$	156,124	$	161,068	7.6%	$	178,365	$	151,122	-15.3%
Gross deposits		3,232		3,198		3,164		2,560		2,737	-15.3%		8,635		8,461	-2.0%
Full surrenders and deaths		(1,791)		(1,757)		(2,320)		(2,485)		(2,446)	-36.6%		(5,600)		(7,251)	-29.5%
Other contract benefits		(1,119)		(1,289)		(1,175)		(1,183)		(1,165)	-4.1%		(3,524)		(3,522)	0.1%
Net flows		322		152		(331)		(1,108)		(874)	NM		(489)		(2,312)	NM
Policyholder assessments		(648)		(631)		(639)		(642)		(645)	0.5%		(2,023)		(1,925)	4.8%
Change in market value, reinvestment and interest credited		(4,516)		5,947		5,345		5,233		(3,259)	27.8%		(28,242)		7,316	125.9%
Change in fair value of embedded derivative instruments		(406)		1,199		627		1,461		(646)	-59.1%		(3,156)		1,443	145.7%
Balance as of end-of-period, gross		144,455		151,122		156,124		161,068		155,644	7.7%		144,455		155,644	7.7%
Account balances reinsured		(7,868)		(8,384)		(8,973)		(8,992)		(8,994)	-14.3%		(7,868)		(8,994)	-14.3%
Balance as of end-of-period, net	$	136,587	$	142,738	$	147,151	$	152,076	$	146,650	7.4%	$	136,587	$	146,650	7.4%










Page 17b


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
General Account
Balance as of beginning-of-period	$	37,791	$	37,691	$	37,694	$	37,533	$	37,458	-0.9%	$	38,200	$	37,694	-1.3%
Gross deposits		963		1,110		926		907		915	-5.0%		2,811		2,749	-2.2%
Withdrawals and deaths		(284)		(328)		(393)		(323)		(378)	-33.1%		(916)		(1,095)	-19.5%
Net flows		679		782		533		584		537	-20.9%		1,895		1,654	-12.7%
Transfers between general and separate accounts		(12)		(14)		32		44		14	216.7%		16		90	NM
Policyholder assessments		(1,123)		(1,138)		(1,128)		(1,120)		(1,124)	-0.1%		(3,357)		(3,373)	-0.5%
Reinvested interest credited		377		374		373		371		370	-1.9%		1,120		1,114	-0.5%
Change in fair value of embedded derivative instruments		(21)		(1)		29		46		(38)	-81.0%		(183)		38	120.8%
Balance as of end-of-period, gross		37,691		37,694		37,533		37,458		37,217	-1.3%		37,691		37,217	-1.3%
Account balances reinsured		(5,575)		(5,558)		(5,525)		(5,527)		(5,503)	1.3%		(5,575)		(5,503)	1.3%
Balance as of end-of-period, net	$	32,116	$	32,136	$	32,008	$	31,931	$	31,714	-1.3%	$	32,116	$	31,714	-1.3%

Separate Account
Balance as of beginning-of-period	$	20,327	$	19,382	$	20,920	$	22,162	$	23,409	15.2%	$	24,785	$	20,920	-15.6%
Gross deposits		443		495		394		426		357	-19.4%		1,405		1,178	-16.2%
Withdrawals and deaths		(120)		(128)		(75)		(78)		(73)	39.2%		(326)		(227)	30.4%
Net flows		323		367		319		348		284	-12.1%		1,079		951	-11.9%
Transfers between general and separate accounts		12		14		(32)		(44)		(12)	NM		(16)		(88)	NM
Policyholder assessments		(236)		(244)		(238)		(238)		(238)	-0.8%		(694)		(714)	-2.9%
Change in market value and reinvestment		(1,044)		1,401		1,193		1,181		(801)	23.3%		(5,772)		1,573	127.3%
Balance as of end-of-period, gross		19,382		20,920		22,162		23,409		22,642	16.8%		19,382		22,642	16.8%
Account balances reinsured		(4,209)		(4,421)		(4,606)		(4,805)		(4,632)	-10.0%		(4,209)		(4,632)	-10.0%
Balance as of end-of-period, net	$	15,173	$	16,499	$	17,556	$	18,604	$	18,010	18.7%	$	15,173	$	18,010	18.7%

Total
Balance as of beginning-of-period	$	58,118	$	57,073	$	58,614	$	59,695	$	60,867	4.7%	$	62,985	$	58,614	-6.9%
Gross deposits		1,406		1,605		1,320		1,333		1,272	-9.5%		4,216		3,927	-6.9%
Withdrawals and deaths		(404)		(456)		(468)		(401)		(451)	-11.6%		(1,242)		(1,322)	-6.4%
Net flows		1,002		1,149		852		932		821	-18.1%		2,974		2,605	-12.4%
Policyholder assessments		(1,359)		(1,382)		(1,366)		(1,358)		(1,362)	-0.2%		(4,051)		(4,087)	-0.9%
Change in market value and reinvestment		(667)		1,775		1,566		1,552		(431)	35.4%		(4,652)		2,687	157.8%
Change in fair value of embedded derivative instruments		(21)		(1)		29		46		(38)	-81.0%		(183)		38	120.8%
Balance as of end-of-period, gross		57,073		58,614		59,695		60,867		59,859	4.9%		57,073		59,859	4.9%
Account balances reinsured		(9,784)		(9,979)		(10,131)		(10,332)		(10,135)	-3.6%		(9,784)		(10,135)	-3.6%
Balance as of end-of-period, net	$	47,289	$	48,635	$	49,564	$	50,535	$	49,724	5.1%	$	47,289	$	49,724	5.1%


Page 18


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
General Account
Balance as of beginning-of-period	$	24,917	$	25,276	$	25,138	$	24,994	$	24,430	-2.0%	$	23,579	$	25,138	6.6%
Gross deposits		994		787		701		616		709	-28.7%		3,225		2,026	-37.2%
Withdrawals		(873)		(1,119)		(1,113)		(981)		(1,168)	-33.8%		(2,459)		(3,262)	-32.7%
Net flows		121		(332)		(412)		(365)		(459)	NM		766		(1,236)	NM
Transfers between fixed and variable accounts		79		36		103		(363)		(38)	NM		474		(297)	NM
Policyholder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(10)		(10)	0.0%
Reinvested interest credited		162		161		168		167		169	4.3%		467		504	7.9%
Balance as of end-of-period	$	25,276	$	25,138	$	24,994	$	24,430	$	24,099	-4.7%	$	25,276	$	24,099	-4.7%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	61,782	$	59,064	$	63,592	$	67,985	$	72,156	16.8%	$	75,465	$	63,592	-15.7%
Gross deposits		2,097		2,186		2,508		2,281		1,991	-5.1%		6,703		6,780	1.1%
Withdrawals		(1,413)		(1,803)		(1,561)		(1,715)		(1,804)	-27.7%		(4,824)		(5,080)	-5.3%
Net flows		684		383		947		566		187	-72.7%		1,879		1,700	-9.5%
Transfers between fixed and variable accounts		(42)		(55)		(104)		370		42	200.0%		(438)		306	169.9%
Policyholder assessments		(57)		(57)		(58)		(60)		(62)	-8.8%		(181)		(178)	1.7%
Change in market value and reinvestment		(3,303)		4,257		3,608		3,295		(2,489)	24.6%		(17,661)		4,414	125.0%
Balance as of end-of-period	$	59,064	$	63,592	$	67,985	$	72,156	$	69,834	18.2%	$	59,064	$	69,834	18.2%

Total
Balance as of beginning-of-period	$	86,699	$	84,340	$	88,730	$	92,979	$	96,586	11.4%	$	99,044	$	88,730	-10.4%
Gross deposits		3,091		2,973		3,209		2,897		2,700	-12.6%		9,928		8,806	-11.3%
Withdrawals		(2,286)		(2,922)		(2,674)		(2,696)		(2,972)	-30.0%		(7,283)		(8,342)	-14.5%
Net flows		805		51		535		201		(272)	NM		2,645		464	-82.5%
Transfers between fixed and variable accounts		37		(19)		(1)		7		4	-89.2%		36		9	-75.0%
Policyholder assessments		(60)		(60)		(61)		(63)		(65)	-8.3%		(191)		(188)	1.6%
Change in market value and reinvestment		(3,141)		4,418		3,776		3,462		(2,320)	26.1%		(17,194)		4,918	128.6%
Balance as of end-of-period	$	84,340	$	88,730	$	92,979	$	96,586	$	93,933	11.4%	$	84,340	$	93,933	11.4%







Page 19

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Description automatically generated with low confidence


Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)

	As of 9/30/22				As of 12/31/22				As of 9/30/23
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld
Investments and Allowance for Credit Losses, at Amortized Cost (1)
Industry corporate bonds:
Financial services	$	17,609		15.9%	$	17,696		15.9%	$	16,923		15.1%
Basic industry		4,353		3.9%		4,336		3.9%		4,163		3.7%
Capital goods		7,408		6.7%		7,347		6.6%		7,070		6.3%
Communications		4,235		3.8%		4,237		3.8%		4,331		3.9%
Consumer cyclical		5,990		5.4%		5,969		5.4%		5,926		5.3%
Consumer non-cyclical		17,116		15.6%		17,035		15.3%		17,372		15.6%
Energy		4,853		4.4%		4,760		4.3%		4,503		4.0%
Technology		5,511		5.0%		5,544		5.0%		5,679		5.1%
Transportation		3,538		3.2%		3,621		3.3%		3,690		3.3%
Industrial other		2,248		2.0%		2,327		2.1%		2,298		2.1%
Utilities		13,975		12.7%		14,108		12.7%		14,317		12.9%
Government-related entities		1,801		1.6%		1,820		1.6%		1,798		1.6%
Residential mortgage-backed securities ("RMBS")
Agency backed		1,867		1.7%		1,845		1.7%		1,803		1.6%
Non-agency backed		370		0.3%		362		0.3%		381		0.3%
Commercial mortgage-backed securities ("CMBS")		1,789		1.6%		1,918		1.7%		1,963		1.8%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		8,194		7.4%		8,466		7.6%		9,202		8.2%
Other ABS		3,068		2.8%		3,269		2.9%		3,957		3.5%
Municipals		5,411		4.9%		5,410		4.9%		5,247		4.7%
United States and foreign government		788		0.8%		753		0.7%		744		0.7%
Hybrid and redeemable preferred securities		372		0.3%		364		0.3%		361		0.3%
Total fixed maturity AFS securities, net of modified coinsurance and funds withheld investments
and allowance for credit losses, at amortized cost		110,496		100.0%		111,187		100.0%		111,728		100.0%
Trading Securities, Net of Modified Coinsurance and Funds Withheld Investments		543				541				670
Equity Securities, Net of Modified Coinsurance and Funds Withheld Investments		325				312				295
Total fixed maturity AFS, trading and equity securities, net of modified coinsurance and funds
withheld investments and allowance for credit losses, at amortized cost		111,364				112,040				112,693
Modified coinsurance and funds withheld investments		4,049				3,861				2,806
Total fixed maturity AFS, trading and equity securities	$	115,413			$	115,901			$	115,499

(1) Net investment income and net gains (losses) related to assets held by us to support certain modified coinsurance and funds withheld agreements are included in periodic payments to
or from the reinsurers, resulting in the economic benefits of these assets flowing to the reinsurers. Accordingly, these assets have been excluded from summaries provided on page 20 and
page 21 as we have a limited economic interest in the assets.

Page 20


Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)

	As of 9/30/22				As of 12/31/22				As of 9/30/23
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Modified Coinsurance and Funds Withheld Investments
and Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	62,791		56.8%	$	63,461		57.1%	$	65,612		58.7%
NAIC 2 (BBB)		43,862		39.7%		43,890		39.4%		42,676		38.2%
Total investment grade		106,653		96.5%		107,351		96.5%		108,288		96.9%

NAIC 3 (BB)		2,197		2.0%		2,096		1.9%		1,598		1.4%
NAIC 4 (B)		1,597		1.5%		1,679		1.5%		1,729		1.6%
NAIC 5 (CCC and lower)		47		0.0%		59		0.1%		97		0.1%
NAIC 6 (in or near default)		2		0.0%		2		0.0%		16		0.0%
Total below investment grade		3,843		3.5%		3,836		3.5%		3,440		3.1%
Total	$	110,496		100.0%	$	111,187		100.0%	$	111,728		100.0%

Commercial Mortgage Loans, Net of Modified Coinsurance and Funds Withheld Investments,
at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,443		82.1%	$	13,270		80.4%	$	13,451		79.6%
CM2 (BBB)		2,881		17.6%		3,137		19.0%		3,387		20.0%
CM3-7 (BB and lower)		41		0.3%		91		0.6%		69		0.4%
Total	$	16,365		100.0%	$	16,498		100.0%	$	16,907		100.0%

Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, Net of Modified
Coinsurance and Funds Withheld Investments, at Amortized Cost (1)(2)
AAA-A	$	76,234		60.1%	$	76,731		60.1%	$	79,063		61.5%
BBB		46,743		36.8%		47,027		36.8%		46,063		35.8%
BB and lower		3,884		3.1%		3,927		3.1%		3,509		2.7%
Total	$	126,861		100.0%	$	127,685		100.0%	$	128,635		100.0%

(1) Ratings are based upon the designations determined and provided by the National Association of Insurance Commissioners (“NAIC”) or based upon ratings from credit rating
agencies to derive the NAIC designation.
(2) CM ratings reflect the risk-based capital risk category for commercial mortgage loans. Letter ratings are assumed NAIC equivalent ratings where NAIC 1 = CM1, NAIC 2 = CM2
and NAIC 3-6 = CM3-7.




Page 21

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Description automatically generated with low confidence


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

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Net Income
Net income (loss) available to common stockholders –
diluted	$	(1,777)	$	807	$	(909)	$	502	$	819	146.1%	$	537	$	410	-23.6%
Less:
Preferred stock dividends declared		-		-		(25)		(11)		(34)	NM		-		(71)	NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(1)		(5)		(3)		2		-	100.0%		(8)		(2)	75.0%
Net income (loss)		(1,776)		812		(881)		511		853	148.0%		545		483	-11.4%
Less:
Net annuity product features, after-tax		893		674		(1,018)		822		1,045	17.0%		2,591		850	-67.2%
Net life insurance product features, after-tax		20		6		(95)		(123)		85	NM		16		(133)	NM
Credit loss-related adjustments, after-tax		(104)		(8)		(18)		(3)		(21)	79.8%		(96)		(41)	57.3%
Investment gains (losses), after-tax (1)		10		11		(45)		(528)		(306)	NM		5		(880)	NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax		(12)		(5)		7		(4)		(23)	-91.7%		(36)		(21)	41.7%
Impairment of intangibles		(634)		-		-		-		-	100.0%		(634)		-	100.0%
Transaction and integration costs related to mergers,											NM					NM
acquisitions and divestitures, after-tax (2)		-		-		-		(7)		-	NM		-		(7)	NM
Total adjustments		173		678		(1,169)		157		780	NM		1,846		(232)	NM
Adjusted income (loss) from operations	$	(1,949)	$	134	$	288	$	354	$	73	103.7%	$	(1,301)	$	715	155.0%

(1) Includes a $493 million and $369 million after-tax impairment of fixed maturity AFS securities in an unrealized loss position for the three months ended June 30, 2023 and
September 30, 2023, respectively, resulting from the Company's intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the
investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $164 million, after-tax, as
of September 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement
in the second quarter and recognized additional impairment of certain of these securities during the third quarter due to higher interest rates. The Company will recognize a gain for any
securities in an unrealized gain position at the time when the transaction closes.
(2) Includes costs pertaining to the Fortitude Re reinsurance transaction.






Page 22


Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Revenues
Total revenues	$	4,672	$	3,841	$	3,814	$	2,929	$	4,203	-10.0%	$	14,969	$	10,946	-26.9%
Less:
Revenue adjustments from annuity
and life insurance product features		386		(689)		(773)		(1,123)		(14)	NM		1,697		(1,908)	NM
Credit loss-related adjustments		(133)		(9)		(22)		(5)		(27)	80.0%		(122)		(53)	56.2%
Investment gains (losses)		13		14		(57)		(668)		(400)	NM		6		(1,126)	NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax		(15)		(6)		9		(5)		(29)	-91.7%		(46)		(27)	41.7%
Adjusted operating revenues	$	4,421	$	4,531	$	4,657	$	4,730	$	4,673	5.7%	$	13,433	$	14,060	4.7%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	(10.47)	$	4.73	$	(5.37)	$	2.94	$	4.79	145.7%	$	3.10	$	2.40	-22.6%
Less:
Net annuity product features, after-tax		5.26		3.95		(6.03)		4.84		6.11	16.2%		14.94		4.98	-66.7%
Net life insurance product features, after-tax		0.11		0.03		(0.56)		(0.73)		0.50	NM		0.09		(0.78)	NM
Credit loss-related adjustments, after-tax		(0.61)		(0.04)		(0.10)		(0.02)		(0.12)	80.3%		(0.55)		(0.25)	54.5%
Investment gains (losses), after-tax		0.06		0.06		(0.26)		(3.11)		(1.79)	NM		0.03		(5.16)	NM
Changes in the fair value of reinsurance-related
embedded derivatives, trading securities and certain
mortgage loans, after-tax		(0.07)		(0.03)		0.04		(0.02)		(0.14)	-100.0%		(0.21)		(0.12)	42.9%
Impairment of intangibles		(3.73)		-		-		-		-	100.0%		(3.65)		-	100.0%
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		-		-		(0.04)		-	NM		-		(0.04)	NM
Adjustment attributable to using different average
diluted shares for adjusted income (loss) from
operations as compared to net income (loss) (1)		-		-		0.02		-		-	NM		0.08		-	-100.0%
Adjusted income (loss) from operations	$	(11.49)	$	0.76	$	1.52	$	2.02	$	0.23	102.0%	$	(7.63)	$	3.77	149.4%

(1) In periods where net income (loss) or adjusted income (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. Due to reporting adjusted income (loss) from operations per common share on a different share basis than net income (loss) per
common share, we have included an adjustment to reconcile the two metrics.


Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended											For the Nine Months Ended
	9/30/22		12/31/22		3/31/23		6/30/23		9/30/23		Change	9/30/22		9/30/23		Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	2,783	$	5,102	$	6,732	$	5,819	$	3,199	14.9%	$	2,783	$	3,199	14.9%
Less:
Preferred stock		-		986		986		986		986	NM		-		986	NM
AOCI		(6,940)		(6,352)		(3,754)		(5,104)		(8,480)	-22.2%		(6,940)		(8,480)	-22.2%
Stockholders’ equity, excluding AOCI and preferred
stock		9,723		10,468		9,500		9,937		10,693	10.0%		9,723		10,693	10.0%
MRB-related impacts		(1,872)		(652)		(1,158)		426		1,545	182.5%		(1,872)		1,545	182.5%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		(539)		(1,407)		(1,630)			N/A		(1,630)
Adjusted stockholders' equity	$	11,595	$	11,120	$	11,197	$	10,918	$	10,778	-7.0%	$	11,595		10,778	-7.0%

Stockholders’ Equity, Average
Stockholders' equity	$	6,057	$	3,943	$	5,917	$	6,276	$	4,509	-25.6%	$	11,645	$	5,567	-52.2%
Less:
Preferred stock		-		493		986		986		986	NM		-		986	NM
AOCI		(4,610)		(6,646)		(5,053)		(4,429)		(6,792)	-47.3%		852		(5,425)	NM
Stockholders’ equity, excluding AOCI and preferred
stock		10,667		10,096		9,984		9,719		10,315	-3.3%		10,793		10,006	-7.3%
MRB-related impacts		(2,177)		(1,262)		(905)		(366)		986	145.3%		(2,359)		(95)	96.0%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		(269)		(973)		(1,519)			N/A		(921)
Adjusted average stockholders' equity	$	12,844	$	11,358	$	11,158	$	11,058	$	10,848	-15.5%	$	13,152	$	11,022	-16.2%

Book Value Per Common Share
Book value per share	$	16.45	$	24.32	$	33.89	$	28.49	$	13.04	-20.7%	$	16.45	$	13.04	-20.7%
Less:
AOCI		(41.01)		(37.54)		(22.15)		(30.09)		(49.99)	-21.9%		(41.01)		(49.99)	-21.9%
Book value per share, excluding AOCI		57.46		61.86		56.04		58.58		63.03	9.7%		57.46		63.03	9.7%
Less:
MRB-related gains (losses)		(11.07)		(3.86)		(6.83)		2.51		9.11	182.3%		(11.07)		9.11	182.3%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		(3.18)		(8.30)		(9.61)			N/A		(9.61)
Adjusted book value per share	$	68.53	$	65.72	$	66.05	$	64.37	$	63.53	-7.3%	$	68.53	$	63.53	-7.3%

(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted stockholders' equity to align to the
updated hedge program.

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