Lincoln Financial Group
Table of Contents
Analyst Coverage	1
Notes	2
Consolidated Statements of Income (Loss)	3
Consolidated Balance Sheets	4
Earnings, Shares, Return on Equity and Return to Stockholder Highlights	5
Income (Loss) from Operations, Average Equity and ROE By Segment	6
Sources of Earnings	7
Select Earnings Drivers By Segment	8
Deposits, Net Flows and Account Balances By Segment	9
Sales By Segment	10
Operating Revenues and General and Administrative Expenses By Segment	11
Operating Commissions and Other Expenses	12
Interest Rate Yields and Spreads By Segment	13
Select Investment Data	14
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC	15
Select Liquidity and Ratings Agency Data	16
Select Earnings and Operational Data:
Annuities	17
Retirement Plan Services	18
Life Insurance	19
Group Protection	20
Other Operations and Discontinued Operations	21
DAC, VOBA, DSI and DFEL Roll Forwards:
Consolidated	22
Annuities	23
Retirement Plan Services, Life Insurance and Group Protection	24
Account Value Roll Forwards:
Annuities	25
Retirement Plan Services	26
Life Insurance	27
Select Non-GAAP to GAAP Reconciliations	28

	Lincoln Financial Group
	Analyst Coverage
	Firm	Analyst	Phone Number
	Bank of America Merrill Lynch	Seth Weiss	646-855-3783
	Barclays Capital	Jay Gelb	212-526-1561
	Citi Research	Erik Bass	212-816-5257
	Credit Suisse	Tom Gallagher	212-538-2010
	Deutsche Bank	Yaron Kinar	212-250-7927
	Dowling & Partners	Humphrey Lee	860-676-7351
	FBR Capital Markets	Randy Binner	703-312-1890
	J.P. Morgan Securities	Jimmy Bhullar	212-622-6397
	Janney Capital Markets	Bob Glasspiegel	860-724-1203
	Jefferies	Colin Devine	212-707-6327
	Keefe, Bruyette and Woods	Ryan Krueger	860-722-5930
	Macquarie Capital	Sean Dargan	212-231-0663
	Morgan Stanley	Nigel Dally	212-761-4132
	Raymond James and Associates	Steven Schwartz	312-612-7686
	RBC Capital	Eric Berg	212-618-7593
	UBS	Suneet Kamath	212-713-1355
	Wells Fargo Securities	John Hall	212-214-8032
	Investor Inquiries May Be Directed To
	Chris Giovanni, Senior Vice President, Investor Relations
	Email:  Christopher.Giovanni@lfg.com
	Voice:  484-583-1793
	Notes
	This list is provided for informational purposes only.  Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these
	or any other analysts.
	Lincoln Financial Group's Statistical Supplement will be available immediately after the release of earnings for each quarter through our Investor Relations website:
	www.lfg.com/investor.
Page 1

	Lincoln Financial Group
	Notes
	Computations
	The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.
	The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.
	If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market
	adjustment for deferred units of LNC stock in our deferred compensation plans.  In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted  EPS
	calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation.  In these periods, we would also exclude the deferred compensation adjustment.
	Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets.  ROE is calculated by dividing annualized net income (loss) (or
	income (loss) from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).  Management evaluates consolidated ROE by both including
	and excluding the effect of average goodwill.
	Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding assuming the conversion of our Series A preferred
	shares.  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.
	Pre-tax net margin is calculated by dividing income (loss) from operations before taxes by net revenue, which is defined as total operating revenues less interest credited.
	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of
	commercial paper outstanding.
	Sales as reported consist of the following:
	•  MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	• Single premium bank-owned universal life and variable universal life (“BOLI”) – 15% of single premium deposits;
	•  Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”), and corporate-owned UL and VUL (“COLI”) – first year commissionable
	premiums plus 5% of excess premiums received, including an adjustment for internal replacements of approximately 50% of commissionable premiums;
	•  Term – 100% of annualized first year premiums;
	•  Annuities – deposits from new and existing customers; and
	•  Group Protection – annualized first year premiums from new policies.
	Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales
	inducements (“DSI”) and deferred front-end loads (“DFEL”) and changes in other contract holder funds.
	Sources of Earnings are defined as follows:
	•  Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products
	less related expenses.
	•  Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product
	and level of insurance in force.
	•  Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
	•  Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.
Page 2a

	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.
	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:
	•  Realized gains and losses associated with the following (“excluded realized gain (loss)”):
	▪  Sales or disposals and impairments of securities;
	▪  Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain
	instruments”);
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders reflected within variable annuity net derivative results;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders accounted for at fair value, net of the change in the fair value of the derivatives
	we own to hedge them reflected within variable annuity net derivative results; and
	▪  Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to
	future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);
	•  Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”) reflected within variable annuity net derivative results;
	•  Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	•  Gains (losses) on early extinguishment of debt;
	• Losses from the impairment of intangible assets;
	•  Income (loss) from discontinued operations; and
	•  Income (loss) from the initial adoption of new accounting standards.
	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	• Excluded realized gain (loss);
	•  Revenue adjustments from the initial adoption of new accounting standards;
	•  Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	•  Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
	We use our prevailing federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns
	when reconciling our non-GAAP measures to the most comparable GAAP measure.
	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 operating revenues and income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
	Statistical Supplement is Dated
	The financial data in this document is dated April 29, 2015, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.
Page 2b

	Lincoln Financial Group
	Consolidated Statements of Income (Loss)
	Unaudited (millions of dollars, except per share data)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Revenues
	Insurance premiums	$	739	$	755	$	741	$	753	$	790	6.9%
	Fee income		1,098		1,134		1,216		1,224		1,222	11.3%
	Net investment income		1,208		1,207		1,212		1,232		1,187	-1.7%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(3)		(3)		(4)		(5)		(13)	NM
	Realized gain (loss), excluding OTTI		(15)		38		93		(101)		(35)	NM
	Total realized gain (loss)		(18)		35		89		(106)		(48)	NM
	Amortization of deferred gains on business
	sold through reinsurance		19		18		18		18		18	-5.3%
	Other revenues		130		133		135		565		135	3.8%
	Total revenues		3,176		3,282		3,411		3,686		3,304	4.0%
	Expenses
	Interest credited		633		636		631		632		625	-1.3%
	Benefits		1,078		1,079		1,117		1,403		1,236	14.7%
	Commissions and other expenses		971		963		995		1,150		1,013	4.3%
	Interest and debt expense		67		67		67		67		68	1.5%
	Total expenses		2,749		2,745		2,810		3,252		2,942	7.0%
	Income (loss) from continuing operations before taxes		427		537		601		434		362	-15.2%
	Federal income tax expense (benefit)		98		139		162		87		62	-36.7%
	Income (loss) from continuing operations		329		398		439		347		300	-8.8%
	Income (loss) from discontinued operations		-		-		-		1		-	NM
	Net income (loss)		329		398		439		348		300	-8.8%
	Adjustment for LNC stock units in our
	deferred compensation plans		(1)		1		2		-		(1)	0.0%
	Net income (loss) available to common
	stockholders – diluted	$	328	$	399	$	441	$	348	$	299	-8.8%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.21	$	1.48	$	1.65	$	1.32	$	1.15	-5.0%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	71,681	$	74,017	$	73,799	$	74,546	$	77,063	7.5%
	U.S. government bonds		388		396		402		435		452	16.5%
	Foreign government bonds		559		556		551		541		561	0.4%
	Mortgage-backed securities		4,944		4,929		4,931		4,796		4,674	-5.5%
	Asset-backed collateralized debt obligations		241		256		286		375		423	75.5%
	State and municipal bonds		4,204		4,395		4,419		4,593		4,705	11.9%
	Hybrid and redeemable preferred securities		971		962		960		954		935	-3.7%
	VIEs' fixed maturity securities		597		598		598		598		598	0.2%
	Equity securities		207		256		234		231		210	1.4%
	Total AFS securities		83,792		86,365		86,180		87,069		89,621	7.0%
	Trading securities		2,316		2,339		2,134		2,065		2,077	-10.3%
	Mortgage loans on real estate		7,089		7,096		7,466		7,574		7,654	8.0%
	Real estate		42		32		20		20		19	-54.8%
	Policy loans		2,687		2,683		2,677		2,670		2,664	-0.9%
	Derivative investments		1,044		1,142		1,439		1,860		2,095	100.7%
	Other investments		1,237		1,301		1,469		1,709		1,885	52.4%
	Total investments		98,207		100,958		101,385		102,967		106,015	8.0%
	Cash and invested cash		1,849		1,509		1,821		3,919		3,487	88.6%
	DAC and VOBA		8,454		8,149		8,372		8,207		8,156	-3.5%
	Premiums and fees receivable		504		465		448		473		452	-10.3%
	Accrued investment income		1,116		1,081		1,129		1,049		1,129	1.2%
	Reinsurance recoverables		5,984		6,007		5,906		5,730		5,598	-6.5%
	Funds withheld reinsurance assets		772		764		761		649		646	-16.3%
	Goodwill		2,273		2,273		2,273		2,273		2,273	0.0%
	Other assets		3,822		3,760		3,414		2,845		2,901	-24.1%
	Separate account assets		118,968		124,159		122,937		125,265		127,828	7.4%
	Total assets	$	241,949	$	249,125	$	248,446	$	253,377	$	258,485	6.8%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	18,997	$	19,460	$	19,553	$	20,057	$	20,468	7.7%
	Other contract holder funds		74,507		74,735		74,893		75,512		75,663	1.6%
	Short-term debt		-		250		250		250		250	NM
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 16 for details)		1,122		1,122		1,122		1,123		1,123	0.1%
	Financial		4,258		4,048		4,064		4,147		4,504	5.8%
	Reinsurance related embedded derivatives		135		155		141		150		165	22.2%
	Funds withheld reinsurance liabilities		843		842		806		764		717	-14.9%
	Deferred gain on business sold through reinsurance		226		208		190		171		153	-32.3%
	Payables for collateral on investments		3,519		3,571		3,853		4,409		5,046	43.4%
	VIEs' liabilities		22		10		17		13		5	-77.3%
	Other liabilities		4,866		5,114		5,168		5,776		6,340	30.3%
	Separate account liabilities		118,968		124,159		122,937		125,265		127,828	7.4%
	Total liabilities		227,463		233,674		232,994		237,637		242,262	6.5%
	Stockholders’ Equity
	Common stock		6,805		6,739		6,696		6,622		6,493	-4.6%
	Retained earnings		5,228		5,513		5,834		6,022		6,077	16.2%
	AOCI:
	Unrealized gain (loss) on AFS securities		2,523		3,282		2,996		3,297		3,776	49.7%
	Unrealized OTTI on AFS securities		(79)		(67)		(68)		(58)		(65)	17.7%
	Unrealized gain (loss) on derivative instruments		239		216		221		139		218	-8.8%
	Foreign currency translation adjustment		(10)		(10)		(10)		(3)		(4)	60.0%
	Funded status of employee benefit plans		(220)		(222)		(217)		(279)		(272)	-23.6%
	Total AOCI		2,453		3,199		2,922		3,096		3,653	48.9%
	Total stockholders’ equity		14,486		15,451		15,452		15,740		16,223	12.0%
	Total liabilities and stockholders’ equity	$	241,949	$	249,125	$	248,446	$	253,377	$	258,485	6.8%
Page 4b

	Lincoln Financial Group
	Earnings, Shares, Return on Equity and Return to Stockholder Highlights
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss)
	Income (loss) from operations	$	365	$	394	$	414	$	439	$	352	-3.6%
	Net income (loss)		329		398		439		348		300	-8.8%
	Earnings (Loss) Per Diluted Share
	Income (loss) from operations	$	1.34	$	1.47	$	1.56	$	1.67	$	1.35	0.7%
	Net income (loss)		1.21		1.48		1.65		1.32		1.15	-5.0%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	13,969	$	14,968	$	15,452	$	15,596	$	15,982	14.4%
	Average AOCI		2,008		2,826		3,061		3,009		3,374	68.0%
	Average equity, excluding AOCI	$	11,961	$	12,142	$	12,391	$	12,587	$	12,608	5.4%
	ROE
	Income (loss) from operations		12.2%		13.0%		13.4%		13.9%		11.2%
	Net income (loss)		11.0%		13.1%		14.2%		11.1%		9.5%
	Per Share
	Dividends declared during the period	$	0.16	$	0.16	$	0.16	$	0.20	$	0.20	25.0%
	Book value, including AOCI		54.94		59.24		59.48		61.35		64.14	16.7%
	Book value, excluding AOCI		45.63		46.97		48.23		49.29		49.70	8.9%
	Shares
	Repurchased during the period		3.0		3.1		2.8		3.6		6.0	102.2%
	Average for the period – diluted		272.1		268.9		266.8		263.0		260.6	-4.2%
	End-of-period – basic		263.7		260.8		259.8		256.6		252.9	-4.1%
	End-of-period – diluted		270.4		267.6		265.5		261.5		257.2	-4.9%
	Cash Returned to Common Stockholders
	Shares repurchased	$	150	$	150	$	150	$	200	$	350	133.3%
	Common dividends		42		42		42		42		51	21.4%
	Total cash returned to common stockholders	$	192	$	192	$	192	$	242	$	401	108.9%
Page 5

	Lincoln Financial Group
	Income (Loss) from Operations, Average Equity and ROE By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss) from Operations
	Annuities	$	216	$	227	$	245	$	237	$	239	10.6%
	Retirement Plan Services		39		39		40		42		35	-10.3%
	Life Insurance		120		148		150		193		111	-7.5%
	Group Protection		20		2		8		(7)		(6)	NM
	Other Operations		(30)		(22)		(29)		(26)		(27)	10.0%
	Income (loss) from operations	$	365	$	394	$	414	$	439	$	352	-3.6%
	Average Equity, Excluding AOCI
	Segment equity, excluding goodwill:
	Annuities	$	3,225	$	3,398	$	3,632	$	3,786	$	3,887	20.5%
	Retirement Plan Services		969		949		966		1,002		1,006	3.8%
	Life Insurance		5,989		6,088		6,226		6,204		6,226	4.0%
	Group Protection		1,157		1,186		1,208		1,227		1,241	7.3%
	Total segment equity, excluding goodwill		11,340		11,621		12,032		12,219		12,360	9.0%
	Other Operations and goodwill		621		521		359		368		248	-60.1%
	Total average equity, excluding AOCI	$	11,961	$	12,142	$	12,391	$	12,587	$	12,608	5.4%
	ROE
	Segment ROE, excluding goodwill:
	Annuities		26.8%		26.7%		27.0%		25.1%		24.6%
	Retirement Plan Services		16.1%		16.5%		16.6%		16.6%		14.0%
	Life Insurance		8.0%		9.7%		9.7%		12.5%		7.1%
	Group Protection		6.8%		0.6%		2.6%		-2.1%		-2.1%
	Consolidated ROE – income (loss) from operations		12.2%		13.0%		13.4%		13.9%		11.2%
Page 6

	Lincoln Financial Group
	Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Twelve Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change	12/31/13		12/31/14		Change
	Income (Loss) from Operations, Before Income Taxes
	Annuities	$	266	$	286	$	315	$	297	$	293	10.2%	$	927	$	1,163	25.5%
	Retirement Plan Services		53		54		55		49		48	-9.4%		190		211	11.1%
	Life Insurance		178		223		226		280		156	-12.4%		812		907	11.7%
	Group Protection		30		3		12		(10)		(10)	NM		109		35	-67.9%
	Other Operations		(46)		(34)		(45)		(40)		(44)	4.3%		(192)		(166)	13.5%
	Income (loss) from operations, before income taxes	$	481	$	532	$	563	$	576	$	443	-7.9%	$	1,846	$	2,150	16.5%
	Sources of Earnings, Before Income Taxes
	Investment spread	$	181	$	202	$	195	$	202	$	164	-9.4%	$	772	$	778	0.8%
	Mortality/morbidity		118		115		127		167		74	-37.3%		507		528	4.1%
	Fees on AUM		189		201		251		205		205	8.5%		649		846	30.4%
	VA riders		39		48		35		42		44	12.8%		110		164	49.1%
	Total sources of earnings, before income taxes		527		566		608		616		487	-7.6%		2,038		2,316	13.6%
	Other Operations		(46)		(34)		(45)		(40)		(44)	4.3%		(192)		(166)	13.5%
	Income (loss) from operations, before income taxes	$	481	$	532	$	563	$	576	$	443	-7.9%	$	1,846	$	2,150	16.5%
	Sources of Earnings, Before Income Taxes, % By Component
	Investment spread		34.2%		35.6%		32.1%		32.8%		33.8%			37.8%		33.6%
	Mortality/morbidity		22.5%		20.4%		20.9%		27.1%		15.2%			24.9%		22.8%
	Fees on AUM		35.9%		35.6%		41.3%		33.3%		42.0%			31.9%		36.5%
	VA riders		7.4%		8.4%		5.7%		6.8%		9.0%			5.4%		7.1%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%
Page 7

	Lincoln Financial Group
	Select Earnings Drivers By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Annuities
	Operating revenues	$	909	$	926	$	944	$	966	$	989	8.8%
	Average account values		115,282		118,268		121,260		121,079		122,877	6.6%
	Net flows		695		831		565		555		196	-71.8%
	Retirement Plan Services
	Operating revenues	$	271	$	270	$	272	$	277	$	273	0.7%
	Average account values		51,460		52,587		53,618		53,739		54,018	5.0%
	Net flows		(361)		366		50		(936)		115	131.9%
	Life Insurance
	Operating revenues	$	1,337	$	1,363	$	1,446	$	1,858	$	1,432	7.1%
	Average account values		40,333		40,895		41,371		41,858		42,468	5.3%
	Average in-force face amount		619,715		625,961		632,154		637,935		642,258	3.6%
	Net flows		829		919		934		1,096		888	7.1%
	Group Protection
	Operating revenues	$	610	$	621	$	598	$	616	$	605	-0.8%
	Non-medical earned premiums		533		528		528		541		535	0.4%
	Consolidated
	Operating revenues	$	3,233	$	3,286	$	3,363	$	3,834	$	3,394	5.0%
	Average account values		207,075		211,750		216,249		216,676		219,363	5.9%
	Net flows		1,163		2,116		1,549		715		1,199	3.1%
Page 8

	Lincoln Financial Group
	Deposits, Net Flows and Account Balances By Segment
	Unaudited (millions of dollars)
			As of or For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Deposits
	Annuities	$	3,379	$	3,566	$	3,453	$	3,381	$	2,990	-11.5%
	Retirement Plan Services		1,758		1,814		1,611		2,332		1,704	-3.1%
	Life Insurance		1,266		1,308		1,285		1,474		1,311	3.6%
	Total deposits	$	6,403	$	6,688	$	6,349	$	7,187	$	6,005	-6.2%
	Net Flows
	Annuities	$	695	$	831	$	565	$	555	$	196	-71.8%
	Retirement Plan Services		(361)		366		50		(936)		115	131.9%
	Life Insurance		829		919		934		1,096		888	7.1%
	Total net flows	$	1,163	$	2,116	$	1,549	$	715	$	1,199	3.1%
	Account Balances as of End-of-Period
	Annuities	$	116,784	$	121,192	$	120,270	$	122,041	$	124,254	6.4%
	Retirement Plan Services		51,851		53,748		53,362		53,539		54,632	5.4%
	Life Insurance		40,552		41,238		41,504		42,213		42,724	5.4%
	Total account balances	$	209,187	$	216,178	$	215,136	$	217,793	$	221,610	5.9%
	Average Account Balances
	Annuities	$	115,282	$	118,268	$	121,260	$	121,079	$	122,877	6.6%
	Retirement Plan Services		51,460		52,587		53,618		53,739		54,018	5.0%
	Life Insurance		40,333		40,895		41,371		41,858		42,468	5.3%
	Total average account balances	$	207,075	$	211,750	$	216,249	$	216,676	$	219,363	5.9%
Page 9

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Sales
	Annuities:
	Variable	$	2,947	$	3,173	$	3,226	$	3,175	$	2,697	-8.5%
	Fixed		432		393		227		206		293	-32.2%
	Total Annuities	$	3,379	$	3,566	$	3,453	$	3,381	$	2,990	-11.5%
	Retirement Plan Services:
	First year sales	$	432	$	661	$	429	$	1,190	$	382	-11.6%
	Recurring deposits		1,326		1,153		1,182		1,142		1,322	-0.3%
	Total Retirement Plan Services	$	1,758	$	1,814	$	1,611	$	2,332	$	1,704	-3.1%
	Life Insurance:
	UL:
	Excluding MoneyGuard® and IUL	$	21	$	24	$	27	$	26	$	20	-4.8%
	MoneyGuard®		34		40		43		47		40	17.6%
	IUL		18		15		18		24		15	-16.7%
	Total UL		73		79		88		97		75	2.7%
	VUL		46		56		44		52		45	-2.2%
	Term		23		23		23		21		19	-17.4%
	Total individual life insurance		142		158		155		170		139	-2.1%
	COLI and BOLI		3		14		5		22		14	NM
	Total Life Insurance	$	145	$	172	$	160	$	192	$	153	5.5%
	Group Protection:
	Life	$	31	$	29	$	34	$	112	$	25	-19.4%
	Disability		26		30		41		103		22	-15.4%
	Dental		7		14		19		35		9	28.6%
	Total Group Protection	$	64	$	73	$	94	$	250	$	56	-12.5%
Page 10

	Lincoln Financial Group
	Operating Revenues and General and Administrative Expenses By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Operating Revenues
	Annuities	$	909	$	926	$	944	$	966	$	989	8.8%
	Retirement Plan Services		271		270		272		277		273	0.7%
	Life Insurance		1,337		1,363		1,446		1,858		1,432	7.1%
	Group Protection		610		621		598		616		605	-0.8%
	Other Operations		106		106		103		117		95	-10.4%
	Total	$	3,233	$	3,286	$	3,363	$	3,834	$	3,394	5.0%
	General and Administrative Expenses,
	Net of Amounts Capitalized
	Annuities	$	110	$	110	$	109	$	126	$	109	-0.9%
	Retirement Plan Services		69		70		73		82		71	2.9%
	Life Insurance		103		109		99		124		108	4.9%
	Group Protection		60		65		66		75		67	11.7%
	Other Operations		14		17		18		35		14	0.0%
	Total	$	356	$	371	$	365	$	442	$	369	3.7%
	General and Administrative Expenses,
	Net of Amounts Capitalized, As a Percentage
	of Operating Revenues
	Annuities		12.1%		11.9%		11.5%		13.0%		11.1%
	Retirement Plan Services		25.5%		26.1%		26.7%		29.6%		25.9%
	Life Insurance		7.7%		8.0%		6.8%		6.7%		7.6%
	Group Protection		9.8%		10.5%		11.0%		12.3%		11.1%
	Other Operations		12.7%		15.3%		17.8%		29.7%		14.3%
	Total		11.0%		11.3%		10.9%		11.5%		10.9%
Page 11

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	404	$	419	$	411	$	501	$	416	3.0%
	Commissions		572		604		602		617		577	0.9%
	Media expenses		14		14		15		16		14	0.0%
	Taxes, licenses and fees		81		47		66		52		74	-8.6%
	Interest and debt expense		67		67		67		67		68	1.5%
	Expenses associated with reserve financing
	and unrelated letters of credit		17		17		18		16		19	11.8%
	Total operating commissions and other
	expenses incurred		1,155		1,168		1,179		1,269		1,168	1.1%
	Less Amounts Capitalized
	General and administrative expenses		(48)		(48)		(46)		(59)		(47)	2.1%
	Commissions		(310)		(331)		(329)		(345)		(296)	4.5%
	Taxes, licenses and fees		(8)		(6)		(7)		(8)		(8)	0.0%
	Total amounts capitalized		(366)		(385)		(382)		(412)		(351)	4.1%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		789		783		797		857		817	3.5%
	Amortization
	Amortization of DAC and VOBA		247		242		265		358		261	5.7%
	Amortization of intangibles		1		1		1		1		1	0.0%
	Total amortization		248		243		266		359		262	5.6%
	Total operating commissions and
	other expenses	$	1,037	$	1,026	$	1,063	$	1,216	$	1,079	4.1%
Page 12

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Annuities
	Earned rate on reserves		4.55%		4.49%		4.43%		4.31%		4.24%	(31)
	Prepayment and make whole premiums		0.08%		0.11%		0.11%		0.37%		0.20%	12
	Net investment income yield on reserves		4.63%		4.60%		4.54%		4.68%		4.44%	(19)
	Interest rate credited to contract holders		2.81%		2.79%		2.81%		2.75%		2.64%	(17)
	Interest rate spread		1.82%		1.81%		1.73%		1.93%		1.80%	(2)
	Retirement Plan Services
	Earned rate on reserves		4.89%		4.78%		4.77%		4.67%		4.65%	(24)
	Prepayment and make whole premiums		0.12%		0.12%		0.15%		0.33%		0.18%	6
	Net investment income yield on reserves		5.01%		4.90%		4.92%		5.00%		4.83%	(18)
	Interest rate credited to contract holders		3.06%		3.05%		3.04%		3.00%		3.02%	(4)
	Interest rate spread		1.95%		1.85%		1.88%		2.00%		1.81%	(14)
	Life Insurance
	Attributable to interest-sensitive products:
	Earned rate on reserves		5.46%		5.41%		5.39%		5.37%		5.34%	(12)
	Prepayment and make whole premiums		0.04%		0.16%		0.07%		0.29%		0.18%	14
	Alternative investments		0.18%		0.15%		0.28%		0.06%		0.05%	(13)
	Net investment income yield on reserves		5.68%		5.72%		5.74%		5.72%		5.57%	(11)
	Interest rate credited to contract holders		3.94%		3.96%		3.94%		3.96%		3.89%	(5)
	Interest rate spread		1.74%		1.76%		1.80%		1.76%		1.68%	(6)
	Attributable to traditional products:
	Earned rate on reserves		5.87%		5.48%		5.23%		5.54%		5.24%	(63)
	Prepayment and make whole premiums		0.22%		0.34%		0.18%		0.17%		0.15%	(7)
	Alternative investments		0.00%		0.00%		0.00%		-0.04%		0.00%	-
	Net investment income yield on reserves		6.09%		5.82%		5.41%		5.67%		5.39%	(70)
Page 13

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
		As of 3/31/14				As of 12/31/14				As of 3/31/15
		Amount		%		Amount		%		Amount		%
	AFS and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	71,681		83.3%	$	74,545		83.6%	$	77,063		84.0%
	U.S. government bonds		388		0.5%		435		0.5%		452		0.5%
	Foreign government bonds		559		0.6%		541		0.6%		561		0.6%
	Mortgage-backed securities		4,944		5.7%		4,796		5.4%		4,674		5.1%
	Asset-backed collateralized debt obligations		241		0.3%		375		0.4%		423		0.5%
	State and municipal bonds		4,204		4.9%		4,594		5.2%		4,705		5.1%
	Hybrid and redeemable preferred securities		971		1.1%		954		1.1%		935		1.0%
	VIEs’ fixed maturity securities		597		0.7%		598		0.7%		598		0.7%
	Equity securities		207		0.2%		231		0.3%		210		0.2%
	Total AFS securities		83,792		97.3%		87,069		97.8%		89,621		97.7%
	Trading securities		2,316		2.7%		2,065		2.2%		2,077		2.3%
	Total AFS and trading securities	$	86,108		100.0%	$	89,134		100.0%	$	91,698		100.0%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	79,876		99.8%	$	80,960		99.7%	$	82,579		99.8%
	Equity securities		186		0.2%		216		0.3%		192		0.2%
	Total AFS and trading securities	$	80,062		100.0%	$	81,176		100.0%	$	82,771		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				95.2%				95.0%				94.9%
	Below investment grade				4.8%				5.0%				5.1%
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Net Investment Income	$	1,208	$	1,207	$	1,212	$	1,232	$	1,187		-1.7%
	Average Invested Assets, at Amortized Cost		91,027		91,879		92,704		93,251		94,379		3.7%
	Net Investment Income Yield		5.31%		5.25%		5.23%		5.29%		5.03%		(28)
Page 14

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Realized Gain (Loss), Pre-Tax
	Total operating realized gain (loss)	$	40	$	40	$	42	$	43	$	43	7.5%
	Total excluded realized gain (loss)		(58)		(5)		47		(149)		(91)	-56.9%
	Total realized gain (loss), pre-tax	$	(18)	$	35	$	89	$	(106)	$	(48)	NM
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(17)	$	5	$	(16)	$	(19)	$	(10)	41.2%
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		(14)		16		26		(52)		(35)	NM
	GLB non-performance risk component		7		(9)		6		16		7	0.0%
	Total variable annuity net derivative results		(7)		7		32		(36)		(28)	NM
	Indexed annuity forward-starting option		(12)		(8)		9		(9)		(13)	-8.3%
	Gain (loss) on sale of subsidiaries/businesses		-		-		-		(28)		(1)	NM
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(36)	$	4	$	25	$	(92)	$	(52)	-44.4%
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(2)	$	(2)	$	(3)	$	(3)	$	(8)	NM
	Other realized gain (loss) related to
	certain investments		(2)		2		(1)		(1)		(9)	NM
	Gain (loss) on the mark-to-market
	on certain instruments		(13)		5		(12)		(15)		7	153.8%
	Total realized gain (loss) related
	to investments, after-tax	$	(17)	$	5	$	(16)	$	(19)	$	(10)	41.2%
Page 15

	Lincoln Financial Group
	Select Liquidity and Rating Agency Data
	Unaudited (millions of dollars)
		As of
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Leverage Ratio
	Short-term debt	$	-	$	250	$	250	$	250	$	250	NM
	Long-term debt		5,380		5,170		5,186		5,270		5,627	4.6%
	Total debt (1)		5,380		5,420		5,436		5,520		5,877	9.2%
	Less:
	Long-term operating debt (2)		1,122		1,122		1,122		1,123		1,123	0.1%
	75% of capital securities		909		909		909		909		909	0.0%
	Carrying value of fair value hedges		120		159		175		259		315	162.5%
	Total numerator	$	3,229	$	3,230	$	3,230	$	3,229	$	3,530	9.3%
	Stockholders’ equity, excluding AOCI	$	12,033	$	12,252	$	12,530	$	12,644	$	12,570	4.5%
	Total debt (1)		5,380		5,420		5,436		5,520		5,877	9.2%
	Total denominator	$	17,413	$	17,672	$	17,966	$	18,164	$	18,447	5.9%
	Leverage ratio		18.5%		18.3%		18.0%		17.8%		19.1%
	Holding Company Available Liquidity	$	562	$	573	$	572	$	554	$	786	39.9%
							Ratings as of April 29, 2015
												Standard
							A.M. Best		Fitch		Moody’s	& Poor’s
	Senior Debt Ratings						a-		BBB+		Baa1	A-
	Financial Strength Ratings
	Lincoln National Life Insurance Company						A+		A+		A1	AA-
	First Penn-Pacific Life Insurance Company						A		A+		A1	A-
	Lincoln Life & Annuity Company of New York						A+		A+		A1	AA-
	(1) Excludes obligations under capital leases of $83 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 and the senior note issued in September 2008 by our primary insurance subsidiary.
Page 16

	Lincoln Financial Group
	Annuities – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	45	$	42	$	39	$	47	$	79	75.6%
	Fee income		464		486		503		507		510	9.9%
	Net investment income		259		258		257		260		247	-4.6%
	Operating realized gain (loss)		39		40		42		42		43	10.3%
	Other revenues		102		100		103		110		110	7.8%
	Total operating revenues		909		926		944		966		989	8.8%
	Operating expenses:
	Interest credited		154		154		152		150		143	-7.1%
	Benefits		87		80		101		92		129	48.3%
	Commissions incurred		250		270		270		266		249	-0.4%
	Other expenses incurred		217		210		215		234		222	2.3%
	Amounts capitalized		(165)		(174)		(175)		(168)		(147)	10.9%
	Amortization		100		100		66		95		100	0.0%
	Total operating expenses		643		640		629		669		696	8.2%
	Income (loss) from operations before taxes		266		286		315		297		293	10.2%
	Federal income tax expense (benefit)		50		59		70		60		54	8.0%
	Income (loss) from operations	$	216	$	227	$	245	$	237	$	239	10.6%
	Effective Federal Income Tax Rate		18.7%		20.6%		22.1%		20.1%		18.2%
	Average Equity, Excluding Goodwill and AOCI	$	3,225	$	3,398	$	3,632	$	3,786	$	3,887	20.5%
	ROE, Excluding Goodwill		26.8%		26.7%		27.0%		25.1%		24.6%
	Return on Average Account Values		75		77		81		78		78	3
	Account Values
	Separate account values:
	Average	$	94,058	$	96,913	$	99,892	$	99,827	$	101,970	8.4%
	End-of-period		95,512		99,801		98,997		100,823		102,976	7.8%
	General account values:
	Average		21,224		21,355		21,368		21,252		20,907	-1.5%
	End-of-period		21,272		21,391		21,273		21,218		21,278	0.0%
Page 17

	Lincoln Financial Group
	Retirement Plan Services – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	61	$	62	$	62	$	62	$	62	1.6%
	Net investment income		207		204		207		213		208	0.5%
	Other revenues		3		4		3		2		3	0.0%
	Total operating revenues		271		270		272		277		273	0.7%
	Operating expenses:
	Interest credited		118		118		118		119		123	4.2%
	Commissions incurred		18		18		17		18		20	11.1%
	Other expenses incurred		80		76		81		91		80	0.0%
	Amounts capitalized		(8)		(6)		(8)		(9)		(7)	12.5%
	Amortization		10		10		9		9		9	-10.0%
	Total operating expenses		218		216		217		228		225	3.2%
	Income (loss) from operations before taxes		53		54		55		49		48	-9.4%
	Federal income tax expense (benefit)		14		15		15		7		13	-7.1%
	Income (loss) from operations	$	39	$	39	$	40	$	42	$	35	-10.3%
	Effective Federal Income Tax Rate		26.3%		26.9%		26.7%		16.0%		26.8%
	Average Equity, Excluding Goodwill and AOCI	$	969	$	949	$	966	$	1,002	$	1,006	3.8%
	ROE, Excluding Goodwill		16.1%		16.5%		16.6%		16.6%		14.0%
	Pre-tax Net Margin		34.5%		35.3%		35.5%		31.3%		32.1%
	Return on Average Account Values		30		30		30		31		26	(4)
	Average Account Values
	Separate account	$	15,122	$	15,221	$	15,471	$	15,218	$	15,275	1.0%
	Mutual fund		20,965		21,901		22,582		22,732		22,499	7.3%
	General account		15,373		15,465		15,565		15,789		16,244	5.7%
	Net Flows – Trailing Twelve Months	$	88	$	117	$	(52)	$	(881)	$	(405)	NM
Page 18

	Lincoln Financial Group
	Life Insurance – Select Earnings and Operational Data
	Unaudited (millions of dollars)
			As of or For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	132	$	139	$	153	$	133	$	149	12.9%
	Fee income		574		586		651		656		649	13.1%
	Net investment income		624		632		636		639		626	0.3%
	Operating realized gain (loss)		1		-		-		1		-	-100.0%
	Other revenues		6		6		6		429		8	33.3%
	Total operating revenues		1,337		1,363		1,446		1,858		1,432	7.1%
	Operating expenses:
	Interest credited		334		337		337		341		338	1.2%
	Benefits		541		519		550		825		650	20.1%
	Commissions incurred		163		173		172		182		162	-0.6%
	Other expenses incurred		182		177		173		196		185	1.6%
	Amounts capitalized		(178)		(187)		(189)		(206)		(179)	-0.6%
	Amortization		117		121		177		240		120	2.6%
	Total operating expenses		1,159		1,140		1,220		1,578		1,276	10.1%
	Income (loss) from operations before taxes		178		223		226		280		156	-12.4%
	Federal income tax expense (benefit)		58		75		76		87		45	-22.4%
	Income (loss) from operations	$	120	$	148	$	150	$	193	$	111	-7.5%
	Effective Federal Income Tax Rate		32.7%		33.4%		33.4%		31.0%		28.8%
	Average Equity, Excluding Goodwill and AOCI	$	5,989	$	6,088	$	6,226	$	6,204	$	6,226	4.0%
	ROE, Excluding Goodwill		8.0%		9.7%		9.7%		12.5%		7.1%
	Average Account Values	$	40,333	$	40,895	$	41,371	$	41,858	$	42,468	5.3%
	In-Force Face Amount
	UL and other	$	319,414	$	321,056	$	322,416	$	324,356	$	324,815	1.7%
	Term insurance		303,200		308,253		312,584		316,513		318,832	5.2%
	Total in-force face amount	$	622,614	$	629,309	$	635,000	$	640,869	$	643,647	3.4%
Page 19

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	562	$	574	$	550	$	567	$	561	-0.2%
	Net investment income		45		44		45		46		43	-4.4%
	Other revenues		3		3		3		3		1	-66.7%
	Total operating revenues		610		621		598		616		605	-0.8%
	Operating expenses:
	Interest credited		1		2		1		1		1	0.0%
	Benefits		423		463		428		460		440	4.0%
	Commissions incurred		66		68		68		70		66	0.0%
	Other expenses incurred		87		92		87		111		94	8.0%
	Amounts capitalized		(16)		(18)		(11)		(30)		(17)	-6.3%
	Amortization		19		11		13		14		31	63.2%
	Total operating expenses		580		618		586		626		615	6.0%
	Income (loss) from operations before taxes		30		3		12		(10)		(10)	NM
	Federal income tax expense (benefit)		10		1		4		(3)		(4)	NM
	Income (loss) from operations	$	20	$	2	$	8	$	(7)	$	(6)	NM
	Effective Federal Income Tax Rate		35.0%		34.9%		35.0%		35.0%		35.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,157	$	1,186	$	1,208	$	1,227	$	1,241	7.3%
	ROE, Excluding Goodwill		6.8%		0.6%		2.6%		-2.1%		-2.1%
	Loss Ratios by Product Line
	Life		76.1%		80.0%		75.9%		75.5%		77.7%
	Disability		73.6%		82.6%		80.8%		89.2%		79.7%
	Dental		74.0%		71.1%		70.8%		68.6%		73.0%
	Total non-medical		74.8%		80.3%		77.6%		81.0%		78.1%
	Medical		87.6%		89.0%		90.6%		87.7%		89.5%
Page 20

	Lincoln Financial Group
	Other Operations and Discontinued Operations - Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	-	$	-	$	-	$	5	$	-	NM
	Net investment income		73		70		68		75		63	-13.7%
	Amortization of deferred gain on
	business sold through reinsurance		18		18		18		18		18	0.0%
	Media revenues		15		17		17		19		14	-6.7%
	Other revenues		-		1		-		-		-	NM
	Total operating revenues		106		106		103		117		95	-10.4%
	Operating expenses:
	Interest credited		27		26		22		20		21	-22.2%
	Benefits		30		29		28		34		27	-10.0%
	Media expenses		14		14		15		16		14	0.0%
	Commissions and other expenses		14		4		16		20		9	-35.7%
	Interest and debt expenses		67		67		67		67		68	1.5%
	Total operating expenses		152		140		148		157		139	-8.6%
	Income (loss) from operations before taxes		(46)		(34)		(45)		(40)		(44)	4.3%
	Federal income tax expense (benefit)		(16)		(12)		(16)		(14)		(17)	-6.3%
	Income (loss) from operations	$	(30)	$	(22)	$	(29)	$	(26)	$	(27)	10.0%
	Discontinued Operations
	Gain (loss) on disposal before taxes	$	-	$	-	$	-	$	1	$	-	NM
	Federal income tax expense (benefit)		-		-		-		-		-	NM
	Gain (loss) on disposal	$	-	$	-	$	-	$	1	$	-	NM
Page 21

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	DAC and VOBA
	Balance as of beginning-of-period	$	8,886	$	8,454	$	8,149	$	8,372	$	8,207	-7.6%
	Business sold through reinsurance		-		-		2		-		-	NM
	Deferrals		366		385		382		412		351	-4.1%
	Operating amortization		(247)		(242)		(265)		(358)		(261)	-5.7%
	Deferrals, net of operating amortization		119		143		117		54		90	-24.4%
	Amortization associated with benefit ratio unlocking		(1)		(2)		1		(1)		(2)	-100.0%
	Adjustment related to realized (gains) losses		(8)		-		(27)		4		3	137.5%
	Adjustment related to unrealized (gains) losses		(542)		(446)		130		(222)		(142)	73.8%
	Balance as of end-of-period	$	8,454	$	8,149	$	8,372	$	8,207	$	8,156	-3.5%
	DSI
	Balance as of beginning-of-period	$	267	$	256	$	244	$	242	$	240	-10.1%
	Deferrals		3		4		3		3		7	133.3%
	Operating amortization		(10)		(10)		(8)		(9)		(9)	10.0%
	Deferrals, net of operating amortization		(7)		(6)		(5)		(6)		(2)	71.4%
	Adjustment related to realized (gains) losses		-		(1)		(3)		-		-	NM
	Adjustment related to unrealized (gains) losses		(4)		(5)		6		4		(3)	25.0%
	Balance as of end-of-period	$	256	$	244	$	242	$	240	$	235	-8.2%
	DFEL
	Balance as of beginning-of-period	$	1,938	$	1,707	$	1,520	$	1,523	$	1,401	-27.7%
	Deferrals		81		90		108		123		120	48.1%
	Operating amortization		(65)		(73)		(125)		(121)		(76)	-16.9%
	Deferrals, net of operating amortization		16		17		(17)		2		44	175.0%
	Adjustment related to realized (gains) losses		(2)		(2)		(1)		-		-	100.0%
	Adjustment related to unrealized (gains) losses		(245)		(202)		21		(124)		(123)	49.8%
	Balance as of end-of-period	$	1,707	$	1,520	$	1,523	$	1,401	$	1,322	-22.6%
Page 22

	Lincoln Financial Group
	Annuities – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	DAC and VOBA
	Balance as of beginning-of-period	$	2,770	$	2,784	$	2,810	$	2,951	$	3,063	10.6%
	Deferrals		165		174		175		168		147	-10.9%
	Operating amortization		(100)		(100)		(66)		(95)		(100)	0.0%
	Deferrals, net of operating amortization		65		74		109		73		47	-27.7%
	Amortization associated with benefit ratio unlocking		(1)		(2)		1		(1)		(2)	-100.0%
	Adjustment related to realized (gains) losses		(4)		6		(23)		9		7	275.0%
	Adjustment related to unrealized (gains) losses		(46)		(52)		54		31		(27)	41.3%
	Balance as of end-of-period	$	2,784	$	2,810	$	2,951	$	3,063	$	3,088	10.9%
	DSI
	Balance as of beginning-of-period	$	259	$	248	$	234	$	231	$	227	-12.4%
	Deferrals		2		1		1		2		5	150.0%
	Operating amortization		(10)		(9)		(7)		(9)		(9)	10.0%
	Deferrals, net of operating amortization		(8)		(8)		(6)		(7)		(4)	50.0%
	Adjustment related to realized (gains) losses		-		(1)		(3)		-		-	NM
	Adjustment related to unrealized (gains) losses		(3)		(5)		6		3		(2)	33.3%
	Balance as of end-of-period	$	248	$	234	$	231	$	227	$	221	-10.9%
	DFEL
	Balance as of beginning-of-period	$	265	$	264	$	262	$	263	$	266	0.4%
	Deferrals		8		8		9		10		8	0.0%
	Operating amortization		(7)		(9)		(6)		(7)		(8)	-14.3%
	Deferrals, net of operating amortization		1		(1)		3		3		-	-100.0%
	Adjustment related to realized (gains) losses		(2)		(1)		(2)		-		-	100.0%
	Balance as of end-of-period	$	264	$	262	$	263	$	266	$	266	0.8%
Page 23

	Lincoln Financial Group
	Retirement Plan Services, Life Insurance and Group Protection – DAC, VOBA and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	DAC and VOBA – Retirement Plan Services
	Balance as of beginning-of-period	$	173	$	165	$	135	$	147	$	148	-14.5%
	Deferrals		8		6		8		9		7	-12.5%
	Operating amortization		(10)		(10)		(9)		(9)		(9)	10.0%
	Deferrals, net of operating amortization		(2)		(4)		(1)		-		(2)	0.0%
	Adjustment related to unrealized (gains) losses		(6)		(26)		13		1		2	133.3%
	Balance as of end-of-period	$	165	$	135	$	147	$	148	$	148	-10.3%
	DAC and VOBA – Life Insurance
	Balance as of beginning-of-period	$	5,713	$	5,278	$	4,970	$	5,043	$	4,749	-16.9%
	Business sold through reinsurance		-		-		2		-		-	NM
	Deferrals		178		187		189		206		179	0.6%
	Operating amortization		(117)		(121)		(177)		(240)		(120)	-2.6%
	Deferrals, net of operating amortization		61		66		12		(34)		59	-3.3%
	Adjustment related to realized (gains) losses		(4)		(6)		(4)		(4)		(4)	0.0%
	Adjustment related to unrealized (gains) losses		(492)		(368)		63		(256)		(118)	76.0%
	Balance as of end-of-period	$	5,278	$	4,970	$	5,043	$	4,749	$	4,686	-11.2%
	DFEL – Life Insurance
	Balance as of beginning-of-period	$	1,673	$	1,443	$	1,258	$	1,259	$	1,135	-32.2%
	Deferrals		73		82		100		114		111	52.1%
	Operating amortization		(58)		(64)		(119)		(115)		(67)	-15.5%
	Deferrals, net of operating amortization		15		18		(19)		(1)		44	193.3%
	Adjustment related to realized (gains) losses		(1)		(1)		(1)		(1)		(1)	0.0%
	Adjustment related to unrealized (gains) losses		(244)		(202)		21		(122)		(122)	50.0%
	Balance as of end-of-period	$	1,443	$	1,258	$	1,259	$	1,135	$	1,056	-26.8%
	DAC and VOBA – Group Protection
	Balance as of beginning-of-period	$	230	$	227	$	234	$	232	$	248	7.8%
	Deferrals		16		18		11		30		17	6.3%
	Operating amortization		(19)		(11)		(13)		(14)		(31)	-63.2%
	Deferrals, net of operating amortization		(3)		7		(2)		16		(14)	NM
	Balance as of end-of-period	$	227	$	234	$	232	$	248	$	234	3.1%
Page 24

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	18,552	$	18,730	$	18,875	$	18,746	$	18,661	0.6%
	Gross deposits		432		393		227		206		293	-32.2%
	Withdrawals and deaths		(424)		(460)		(475)		(481)		(454)	-7.1%
	Net flows		8		(67)		(248)		(275)		(161)	NM
	Reinvested interest credited		168		211		118		188		146	-13.1%
	Sales inducements deferred		2		1		1		2		5	150.0%
	Balance as of end-of-period, gross		18,730		18,875		18,746		18,661		18,651	-0.4%
	Reinsurance ceded		(744)		(726)		(714)		(693)		(676)	9.1%
	Balance as of end-of-period, net	$	17,986	$	18,149	$	18,032	$	17,968	$	17,975	-0.1%
	Variable Annuities
	Balance as of beginning-of-period	$	97,298	$	98,798	$	103,043	$	102,238	$	104,073	7.0%
	Gross deposits		2,947		3,173		3,226		3,175		2,697	-8.5%
	Withdrawals and deaths		(2,260)		(2,275)		(2,413)		(2,345)		(2,340)	-3.5%
	Net flows		687		898		813		830		357	-48.0%
	Change in market value and reinvestment		813		3,347		(1,618)		1,005		1,849	127.4%
	Balance as of end-of-period, gross		98,798		103,043		102,238		104,073		106,279	7.6%
	Reinsurance ceded		-		-		-		-		-	NM
	Balance as of end-of-period, net	$	98,798	$	103,043	$	102,238	$	104,073	$	106,279	7.6%
	Total
	Balance as of beginning-of-period	$	115,850	$	117,528	$	121,918	$	120,984	$	122,734	5.9%
	Gross deposits		3,379		3,566		3,453		3,381		2,990	-11.5%
	Withdrawals and deaths		(2,684)		(2,735)		(2,888)		(2,826)		(2,794)	-4.1%
	Net flows		695		831		565		555		196	-71.8%
	Change in market value and reinvestment		981		3,558		(1,500)		1,193		1,995	103.4%
	Sales inducements deferred		2		1		1		2		5	150.0%
	Balance as of end-of-period, gross		117,528		121,918		120,984		122,734		124,930	6.3%
	Reinsurance ceded		(744)		(726)		(714)		(693)		(676)	9.1%
	Balance as of end-of-period, net	$	116,784	$	121,192	$	120,270	$	122,041	$	124,254	6.4%
Page 25

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Small Market
	Balance as of beginning-of-period	$	8,203	$	8,223	$	8,521	$	8,459	$	8,574	4.5%
	Gross deposits		470		409		449		485		453	-3.6%
	Withdrawals and deaths		(510)		(389)		(376)		(505)		(472)	7.5%
	Net flows		(40)		20		73		(20)		(19)	52.5%
	Transfers between fixed and variable accounts		-		-		1		7		2	NM
	Change in market value and reinvestment		60		278		(136)		128		119	98.3%
	Balance as of end-of-period	$	8,223	$	8,521	$	8,459	$	8,574	$	8,676	5.5%
	Mid – Large Market
	Balance as of beginning-of-period	$	26,468	$	26,708	$	28,107	$	28,062	$	28,067	6.0%
	Gross deposits		1,111		1,260		1,023		1,716		1,116	0.5%
	Withdrawals and deaths		(1,213)		(697)		(799)		(2,370)		(729)	39.9%
	Net flows		(102)		563		224		(654)		387	NM
	Transfers between fixed and variable accounts		9		7		(13)		(6)		(15)	NM
	Change in market value and reinvestment		333		829		(256)		665		601	80.5%
	Balance as of end-of-period	$	26,708	$	28,107	$	28,062	$	28,067	$	29,040	8.7%
	Multi-Fund®and Other
	Balance as of beginning-of-period	$	16,947	$	16,920	$	17,120	$	16,841	$	16,898	-0.3%
	Gross deposits		177		145		139		131		135	-23.7%
	Withdrawals and deaths		(396)		(362)		(386)		(393)		(388)	2.0%
	Net flows		(219)		(217)		(247)		(262)		(253)	-15.5%
	Change in market value and reinvestment		192		417		(32)		319		271	41.1%
	Balance as of end-of-period	$	16,920	$	17,120	$	16,841	$	16,898	$	16,916	0.0%
	Total
	Balance as of beginning-of-period	$	51,618	$	51,851	$	53,748	$	53,362	$	53,539	3.7%
	Gross deposits		1,758		1,814		1,611		2,332		1,704	-3.1%
	Withdrawals and deaths		(2,119)		(1,448)		(1,561)		(3,268)		(1,589)	25.0%
	Net flows		(361)		366		50		(936)		115	131.9%
	Transfers between fixed and variable accounts		9		7		(12)		1		(13)	NM
	Change in market value and reinvestment		585		1,524		(424)		1,112		991	69.4%
	Balance as of end-of-period	$	51,851	$	53,748	$	53,362	$	53,539	$	54,632	5.4%
Page 26

	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Interest-Sensitive Life
	Balance as of beginning-of-period	$	33,721	$	33,886	$	34,094	$	34,315	$	34,612	2.6%
	Deposits		869		890		934		1,029		921	6.0%
	Withdrawals and deaths		(292)		(253)		(259)		(256)		(299)	-2.4%
	Net flows		577		637		675		773		622	7.8%
	Contract holder assessments		(741)		(764)		(791)		(819)		(814)	-9.9%
	Reinvested interest credited		329		335		337		343		333	1.2%
	Balance as of end-of-period, gross		33,886		34,094		34,315		34,612		34,753	2.6%
	Reinsurance ceded		(804)		(797)		(793)		(784)		(782)	2.7%
	Balance as of end-of-period, net	$	33,082	$	33,297	$	33,522	$	33,828	$	33,971	2.7%
	VUL
	Balance as of beginning-of-period	$	8,094	$	8,354	$	8,842	$	8,854	$	9,263	14.4%
	Deposits		397		418		351		445		390	-1.8%
	Withdrawals and deaths		(145)		(136)		(92)		(122)		(124)	14.5%
	Net flows		252		282		259		323		266	5.6%
	Contract holder assessments		(112)		(118)		(119)		(128)		(130)	-16.1%
	Change in market value and reinvestment		120		324		(128)		214		236	96.7%
	Balance as of end-of-period, gross		8,354		8,842		8,854		9,263		9,635	15.3%
	Reinsurance ceded		(884)		(901)		(872)		(878)		(882)	0.2%
	Balance as of end-of-period, net	$	7,470	$	7,941	$	7,982	$	8,385	$	8,753	17.2%
	Total
	Balance as of beginning-of-period	$	41,815	$	42,240	$	42,936	$	43,169	$	43,875	4.9%
	Deposits		1,266		1,308		1,285		1,474		1,311	3.6%
	Withdrawals and deaths		(437)		(389)		(351)		(378)		(423)	3.2%
	Net flows		829		919		934		1,096		888	7.1%
	Contract holder assessments		(853)		(882)		(910)		(947)		(944)	-10.7%
	Change in market value and reinvestment		449		659		209		557		569	26.7%
	Balance as of end-of-period, gross		42,240		42,936		43,169		43,875		44,388	5.1%
	Reinsurance ceded		(1,688)		(1,698)		(1,665)		(1,662)		(1,664)	1.4%
	Balance as of end-of-period, net	$	40,552	$	41,238	$	41,504	$	42,213	$	42,724	5.4%
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	Lincoln Financial Group
	Select Non-GAAP to GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/14		6/30/14		9/30/14		12/31/14		3/31/15		Change
	Revenues
	Operating revenues	$	3,233	$	3,286	$	3,363	$	3,834	$	3,394	5.0%
	Excluded realized gain (loss)		(58)		(5)		47		(149)		(91)	-56.9%
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		1		1		1		1	0.0%
	Total revenues	$	3,176	$	3,282	$	3,411	$	3,686	$	3,304	4.0%
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(38)	$	(3)	$	31	$	(96)	$	(60)	-57.9%
	Benefit ratio unlocking		2		7		(6)		4		8	300.0%
	Net gain (loss), after-tax	$	(36)	$	4	$	25	$	(92)	$	(52)	-44.4%
	Net Income
	Income (loss) from operations	$	365	$	394	$	414	$	439	$	352	-3.6%
	Excluded realized gain (loss)		(38)		(3)		31		(96)		(60)	-57.9%
	Benefit ratio unlocking		2		7		(6)		4		8	300.0%
	Income (loss) from discontinued operations		-		-		-		1		-	NM
	Net income (loss)	$	329	$	398	$	439	$	348	$	300	-8.8%
	Earnings (Loss) Per Common Share – Diluted
	Income (loss) from operations	$	1.34	$	1.47	$	1.56	$	1.67	$	1.35	0.7%
	Excluded realized gain (loss)		(0.14)		(0.01)		0.11		(0.36)		(0.23)	-64.3%
	Benefit ratio unlocking		0.01		0.02		(0.02)		0.01		0.03	200.0%
	Net income (loss)	$	1.21	$	1.48	$	1.65	$	1.32	$	1.15	-5.0%
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