8-K

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

August 1, 2018

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,  PA19087

(Address of principal executive offices)  (Zip Code)

(484) 583-1400

(Registrant’s telephone number, including area code)

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))

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 August 1, 2018, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarterJune 30, 2018, 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 June 30, 2018, 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

(c) Exhibits. 

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

June 30, 2018
Exhibit Number	Description
99.1	Press release dated August 1, 2018, announcing Lincoln National Corporation’s financial results for the quarterended June 30, 2018.
99.2	Lincoln National Corporation Statistical Supplement for the quarter endedJune 30, 2018.
99.3	Second Quarter 2018 Financial Results Presentation.

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press release dated August 1, 2018, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2018.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended June 30, 2018.
99.3	Second Quarter 2018 Financial Results Presentation.

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/ Christine A. Janofsky
Name:	Christine A. Janofsky
Title:	Senior Vice President and
	Chief Accounting Officer

Date:  August 1, 2018

EX-99.1

FOR IMMEDIATE RELEASE

Lincoln Financial Group Reports SECOND QUARTER 2018 Results

_______________________________________

Net income EPS of $1.70, down 6% and net income ROE, including AOCI, of 9.9%

Adjusted operating EPS of $2.02, up9%  and adjusted operating ROE, excluding AOCI, of 13.1%

Book value per share (BVPS), including AOCI, of $69.85,  down 3%; BVPS, excluding AOCI, of $64.32, up 8%  

Resumed share buybacks; $100 million of share repurchases in the second quarter

Radnor, PA, August 1, 2018–  Lincoln Financial Group (NYSE: LNC) today reported net income for the second quarter of 2018 of $385 million, or $1.70 per diluted share available to common stockholders, compared to net income in the second quarter of 2017 of $411 million, or $1.81 per diluted share available to common stockholders. Second quarter adjusted income from operations was $454 million, or $2.02 per diluted share available to common stockholders, compared to $419 million, or $1.85 per diluted share available to common stockholders, in the second quarter of 2017.

“In the second quarter, adjusted operating EPS was up 9% and we achieved a 13% ROE, as every business segment reported revenue and earnings growth,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “We continue to see significant momentum in annuity sales and are already benefitting from our recent Liberty acquisition.  The strength of our capital position enabled us to resume share repurchases during the quarter, which we expect to accelerate in subsequent quarters.”

	As of or For the				As of or For the
	Quarter Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share data)	2018			2017	2018		2017
Net Income (Loss)	$	385	$	411	$	752	$	846
Net Income (Loss) Available to Common Stockholders		377		412		742		847
Net Income (Loss) Per Diluted Share Available to Common Stockholders		1.70		1.81		3.34		3.70
Revenues		4,020		3,577		7,629		7,077
Adjusted Income (Loss) from Operations		454		419		895		860
Adjusted Income (Loss) from Operations per Diluted Share Available to Common Stockholders		2.02		1.85		3.99		3.77
Average Diluted Shares		221.6		227.3		221.9		228.7
ROE, Including AOCI (Net Income)		9.9%		10.6%		9.3%		11.2%
Adjusted Operating ROE, Excluding AOCI (Income from Operations)		13.1%		12.7%		13.0%		13.1%
Book Value per Share, Including AOCI	$	69.85	$	71.98	$	69.85	$	71.98
Book Value per Share, Excluding AOCI		64.32		59.78		64.32		59.78

Operating Highlights – Second Quarter 2018 versusSecond Quarter 2017

· Double-digit increase in income from operations across all business segments

· Adjusted operating EPS up 19%when normalizing for variable investment income in both periods

· Adjusted operating revenues of $4.1 billion, up 12%

· G&A expense ratio of 11.5%, a 30 basis point improvement

· Annuity sales of $3.0 billion, up 50%

· Retirement Plan Services net flows of $499 million, up 19%

· Group Protection after-tax margin of 5.3%

There were no notable items in the current quarter or in the prior-year quarter.

Second Quarter 2018 – Segment Results

Annuities

The Annuities segment reported income from operations of $275 million, up 10% compared to the prior-year period driven by higher fee income from account value growth and lower expenses.  

Total annuity deposits of $3.0 billion were up 50% from the prior-year quarter as both variable and fixed annuities benefitted from product and distribution expansion. Variable annuity sales were up 30% versus the prior-year quarter, and fixed annuity sales increased 136% over the same period.

Net outflows improved to $126 million compared to outflows of $887 million in the prior-year period driven by growth in deposits. When combined with favorable equity market performance, average account values of $137 billion increased 5% from the prior-year quarter.

Retirement Plan Services

Retirement Plan Services reported income from operations of $43 million, up 16% compared to the prior-year quarter. This increase is attributable to a lower reported tax rate as a result of tax reform, higher fee income and lower expenses.

Total deposits for the quarter of $2.2 billion were up 12% versus the prior-year period, as a result of growth in both first-year sales and recurring deposits.

Net flows totaled $499 million in the quarter compared to $421 million in the prior-year quarter. When combined with favorable equity market performance, average account values for the quarter increased 11% to $69 billion.

Life Insurance

Life Insurance reported income from operations of $150 million, up 13% versus the prior-year quarter. This increase is attributable to a lower reported tax rate as a result of tax reform and lower expenses, partially offset by lower variable investment income.

Total Life Insurance sales were $162 million in the quarter driven by a diverse product mix. The prior-year quarter totaled $197 million driven by accelerated MoneyGuard® sales ahead of pricing adjustments.    

Total Life Insurance in-force of $730 billion grew 4% over the prior-year quarter, and average account values of $50 billion increased 6% over the same period.

Group Protection

Group Protection income from operations was $45 million in the quarter versus $35 million in the prior-year period. The increase in earnings was attributable to the acquisition of the Liberty Mutual group benefits business.

The acquisition resulted in a combined non-medical loss ratio of 73%, which increased from the prior-year quarter, reflecting the differing loss characteristics of the two blocks. Underlying claim results remain favorable.

Group Protection sales were $94 million in the quarter compared to $88 million in the prior-year quarter. Employee-paid sales represented 40% of total sales, in line with the prior-year period.

Non-medical earned premiums were $846 million, up 71% from the prior-year quarter driven by both the acquisition and continued growth.

Other Operations

Other Operations reported a loss from operations of $59 million versus a loss of $37 million in the prior-year quarter.

Realized Gains and Losses / Impacts to Net Income

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

· A $40 million variable annuity net derivative loss.

· A $35 million acquisition and integration expense.  

· A $9 million gain from general account investments.

Unrealized Gains and Losses

The company reported a net unrealized gain of $3.0 billion, pre-tax, on its available-for-sale securities at June 30, 2018. This compares to a net unrealized gain of $6.8 billion at June 30, 2017, with the year-over-year decline primarily driven by an increase in interest rates.  

Capital

The quarter’s average diluted share count of 221.6 million was down 3% from the second quarter of 2017, the result of repurchasing 6.0 million shares of stock at a cost of $425 million since June 30, 2017.  

Book Value

As of June 20, 2018, book value per share, including accumulated other comprehensive income (“AOCI”), of $69.85 decreased 3% from a year ago. Book value per share, excluding AOCI, of $64.32 increased 8% from the prior-year period.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income from operations, adjusted operating return on equity (“ROE”) and book value per share, excluding AOCI to net income, ROE and book value per share, including AOCI calculated in accordance with GAAP.

This press release may contain statements that are forward-looking, and actual results may differ materially, especially given the current economic and capital market conditions. Please see the Forward Looking Statements – Cautionary Language that follow for additional factors that may cause actual results to differ materially from our current expectations.

For other financial information, please refer to the company’s  second quarter 2018 statistical supplement available on its website,  www.lfg.com/earnings.  

Earnings Conference Call Information

Lincoln Financial Group will discuss the company’s  second quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, August 2, 2018. The live webcast and slide presentation will be available on the Lincoln Financial Investor Relations website atwww.lfg.com/webcast.  Please register at least 15 minutes prior to the event to download and install any necessary streaming media software. Interested persons may also listen to the call by dialing the following numbers:

Dial:	(866) 394-4575 (Domestic)
	(678) 509-7536 (International)
	Ask for the Lincoln National Conference Call.

Audio replay will begin by 1:00 p.m. Eastern Time on August 2, 2018, and it will remain available through 1:00 p.m. Eastern Time on August 9, 2018. To access the re-broadcast:

(855) 859-2056 (Domestic)

(404) 537-3406 (International)

Enter conference code: 3873748

A replay of the call will also be available by 1:00 p.m. Eastern Time on August 2, 2018 at www.lfg.com/webcast.  

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $256 billion in assets under management as of June  30, 2018. Lincoln Financial Group is a committed corporate citizen and was named one of the Forbes Best Employers for 2018, is a member of the Dow Jones Sustainability Index North America, and received a perfect score of 100 percent on the 2018 Corporate Equality Index. Learn more at:  www.LincolnFinancial.com. Follow us onFacebook,  Twitter,  LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com.

Contacts:	Chris Giovanni	Scott Sloat
	(484) 583-1793	(484) 583-1625
	Investor Relations	Media Relations
	InvestorRelations@LFG.com	scott.sloat@LFG.com

Explanatory Notes on Use of Non-GAAP Measures

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

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

Definitions of Non-GAAP Measures Used in this Press Release

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

Adjusted Income (Loss) from Operations

We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at adjusted income (loss) from operations:

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

o Sale or disposal of securities;

o Impairments of securities;

o Change in the fair value of derivative investments, embedded derivatives within certain reinsurance arrangements and our trading securities;

o Change in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities, which is referred to as “GDB derivatives results”;  

o Change in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders within our variable annuities accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) (“embedded derivative reserves”), net of the change in the fair value of the derivatives we own to hedge the changes in the embedded derivative reserves, the net of which is referred to as “GLB net derivative results”;  

o 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 under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”);

o Changes in the fair value of equities securities;

· Change in reserves accounted for under the Financial Services - Insurance - Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);

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

· Gain (loss) on early extinguishment of debt;

· Losses from the impairment of intangible assets;

· Income (loss) from discontinued operations;

· Acquisition and integration costs related to mergers and acquisitions; and

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

Adjusted Operating Revenues

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

· Excluded realized gain (loss);

· Amortization of deferred front-end loads (“DFEL”) arising from changes in GDB and GLB benefit ratio unlocking;

· Amortization of deferred gains arising from the reserve charges on business sold through reinsurance;

· Revenue adjustments from the initial adoption of new accounting standards.

Adjusted Operating Return on Equity

Adjusted return on equity measures how efficiently we generate profits from the resources provided by our net assets.

· It is calculated by dividing annualized adjusted income (loss) from operations by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).

· Management evaluates return on equity by both including and excluding average goodwill within average equity.

Definition of Notable Items

Adjusted income (loss) from operations, excluding notable items is a non-GAAP measure that excludes items which, in management’s view, do not reflect the company’s normal, ongoing operations. 

· We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition. 

Book Value Per Share Excluding AOCI

Book value per share excluding AOCI is calculated based upon a non-GAAP financial measure.

· It is calculated by dividing (a) stockholders’ equity excluding AOCI by (b) common shares outstanding.

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

· Management believes book value per share excluding AOCI is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

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

Special Note

Sales

Sales as reported consist of the following:

· MoneyGuard® – 15% of total expected premium deposits;

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

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

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

· Annuities – deposits from new and existing customers; and

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

Lincoln National Corporation

Reconciliation of Net Income to Adjusted Income from Operations

(in millions, except per share data)	For the				For the
	Quarter Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Total Revenues	$	4,020	$	3,577	$	7,629	$	7,077
Less:
Excluded realized gain (loss)		(53)		(52)		(89)		(132)
Amortization of DFEL on benefit ratio unlocking		-		-		(1)		2
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance		-		-		-		1
Total Adjusted Operating Revenues	$	4,073	$	3,629	$	7,719	$	7,206
Net Income (Loss) Available to Common
Stockholders – Diluted	$	377	$	412	$	742	$	847
Less:
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(8)		1		(10)		1
Net Income (Loss)		385		411		752		846
Less (2):
Excluded realized gain (loss)		(41)		(34)		(69)		(85)
Benefit ratio unlocking		7		26		(3)		71
Net impact from the Tax Cuts and Jobs Act		-		-		(13)		-
Acquisition and integration costs related to mergers						-		-
and acquisitions, after-tax		(35)		-		(39)		-
Gain (loss) on early extinguishment of debt		-		-		(19)		-
Adjusted Income (Loss) from Operations	$	454	$	419	$	895	$	860
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.70	$	1.81	$	3.34	$	3.70
Adjusted income (loss) from operations		2.02		1.85		3.99		3.77
Average Stockholders’ Equity
Average equity, including average AOCI	$	15,581	$	15,485	$	16,117	$	15,105
Average AOCI		1,717		2,279		2,384		1,993
Average equity, excluding AOCI		13,864		13,206		13,733		13,112
Average goodwill		1,559		2,273		1,463		2,273
Average equity, excluding AOCI and goodwill	$	12,305	$	10,933	$	12,270	$	10,839
Return on Equity, Including AOCI
Net income (loss) with average equity including goodwill		9.9%		10.6%		9.3%		11.2%
Return on Equity, Excluding AOCI
Adjusted income (loss) from operations with average equity
including goodwill		13.1%		12.7%		13.0%		13.1%
Adjusted income (loss) from operations with average equity
excluding goodwill		14.8%		15.3%		14.6%		15.9%
(1) 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 if the effect of equity classification would result in a more dilutive EPS.
(2) We use our prevailing federal income tax rates of 21% and 35%, where applicable, 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.

Lincoln National Corporation

Reconciliation of Notable Items

		For the			For the
		Quarter Ended			Six Months Ended
		June 30,			June 30,
	2018		2017		2018	2017
Adjusted Operating EPS, as Reported	$	2.02	$	1.85	$           3.99	$           3.77
Notable items:
Taxes		-		-	-	0.19
Total notable items		-		-	-	0.19
Adjusted Operating EPS, Excluding Notable Items	$	2.02	$	1.85	$           3.99	$           3.58

Lincoln National Corporation

Reconciliation of Variable Investment Income

		For the				For the
		Quarter Ended				Six Months Ended
		June 30,				June 30,
	2018		2017		2018		2017
Adjusted Operating EPS, as Reported	$	2.02	$	1.85	$	3.99	$	3.77
Variable investment income relative to long-term average		(0.08)		0.08		(0.11)		0.10
Adjusted Operating EPS, Excluding Variable Investment
Investment Income Relative to Long-Term Average	$	2.10	$	1.77	$	4.10	$	3.67

Lincoln National Corporation

Reconciliation of Book Value per Share

	As of June 30,
	2018		2017
Book value per share, including AOCI	$	69.85	$	71.98
Per share impact of AOCI		5.53		12.20
Book value per share, excluding AOCI		64.32		59.78

Lincoln National Corporation

Digest of Earnings

(in millions, except per share data)	For the
	Quarter Ended
	June 30,
	2018		2017
Revenues	$	4,020	$	3,577
Net Income (Loss)	$	385	$	411
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(8)		1
Net Income (Loss) Available to Common
Stockholders – Diluted	$	377	$	412
Earnings (Loss) per Common Share – Basic	$	1.76	$	1.84
Earnings (Loss) per Common Share – Diluted		1.70		1.81
Average Shares – Basic	217,997,297		223,555,299
Average Shares – Diluted	221,604,586		227,313,882
	For the
	Six Months Ended
	June 30,
	2018		2017
Revenues	$	7,629	$	7,077
Net Income (Loss)	$	752	$	846
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(10)		1
Net Income (Loss) Available to Common
Stockholders – Diluted	$	742	$	847
Earnings (Loss) per Common Share – Basic	$	3.45	$	3.77
Earnings (Loss) per Common Share – Diluted		3.34		3.70
Average Shares – Basic	218,182,118		224,581,848
Average Shares – Diluted	221,945,054		228,702,989
(1) 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 if the effect of equity classification would be more dilutive to our diluted EPS.

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, and may contain words like: “believe,”“anticipate,”“expect,”“estimate,”“project,”“will,”“shall” 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 involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:

· Deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels, claims experience and the level of pension benefit costs, funding and investment results;

· Adverse global capital and credit market conditions could 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;

· Because of our holding company structure, the inability of our subsidiaries to pay dividends to the holding company in sufficient amounts 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 recently enacted U.S. Federal tax reform legislation on our business, earnings and capital; and the effect of the Fifth Circuit Court of Appeal’s decision vacating the Department of Labor’s (“DOL”) fiduciary regulation as well as any “best interest” standards of care adopted by the Securities and Exchange Commission (“SEC”) or other state regulators;  

· 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, estimated gross profits and demand for our products;

· Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;

· Uncertainty about the effect of continuing promulgation and implementation of rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us, the economy and the financial services sector in particular;

· 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 in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”); and an increase in liabilities related to guaranteed benefit features of our subsidiaries’ variable annuity products;

· Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;

· A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings;

· Changes in accounting principles generally accepted in the United States (“GAAP”), that may result in unanticipated changes to our net income;

· 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 investments in our portfolios, as well as counterparties to which we are exposed to credit risk requiring that we realize losses on investments;

· Inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others;

· Interruption in telecommunication, information technology or other operational systems, or failure to safeguard the confidentiality or privacy of sensitive data on such systems from cyberattacks or other breaches of our data security systems;

· The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including the successful implementation of integration strategies or the achievement of anticipated synergies and operational efficiencies related to an acquisition;  

· The adequacy and collectability of reinsurance that we have purchased;

· Acts of terrorism, a pandemic, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance;

· Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;

· The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and

· The unanticipated loss of key management, financial planners or wholesalers.

The risks included here are not exhaustive. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed 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

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

	Lincoln Financial Group
	Analyst Coverage and Credit Ratings
	Firm	Analyst				Phone Number
	Autonomous Research U.S., L.P.	Erik Bass				646-561-6248
	B. Riley FBR	Randy Binner				703-312-1890
	Bank of America Merrill Lynch	Jay Cohen				646-855-5716
	Barclays Capital	Jay Gelb				212-526-1561
	Citi Research	Suneet Kamath				212-816-3457
	Credit Suisse	Andrew Kligerman				212-325-5069
	Deutsche Bank	Joshua Shanker				212-250-7127
	Dowling & Partners	Humphrey Lee				860-676-7324
	Evercore	Thomas Gallagher				212-446-9439
	Goldman Sachs	Alex Scott				917-343-7160
	J.P. Morgan Securities	Jimmy Bhullar				212-622-6397
	Janney Montgomery Scott	Bob Glasspiegel				860-724-1203
	Keefe, Bruyette & Woods, Inc.	Ryan Krueger				860-722-5930
	Morgan Stanley	Nigel Dally				212-761-4132
	RBC Capital Markets	Mark Dwelle				804-782-4008
	Sandler O’Neill & Partners, L.P.	John Barnidge				312-281-3412
	UBS	John Nadel				212-713-4299
	This list is provided for informational purposes only.  Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these
	or any other analysts.
			Ratings as of August 1st, 2018
						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-
	Liberty Life Assurance Company of Boston		A			AA-
	Investor Inquiries May Be Directed To:
	Chris Giovanni, Senior Vice President, Investor Relations
	Email:  Christopher.Giovanni@lfg.com
	Phone:  484-583-1793
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 adjusted income (loss)
	from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).  Management evaluates consolidated ROE by both including and excluding the effect
	of average goodwill.
	• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding.  We provide book value per share, excluding AOCI, to enable
	investors to analyze the amount of our net worth that is attributable primarily to our business operations.  Management believes book value per share excluding AOCI is useful to investors because
	it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.  Book value per share is the most directly comparable GAAP measure.
	• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.
	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial
	paper outstanding.
	Sales as reported consist of the following:
	•  MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	•  Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;
	•  Executive Benefits – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess
	premium received;
	•  Term – 100% of annualized first-year premiums;
	•  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.
Page 2a

	Lincoln Financial Group
	Notes
	Sources of Earnings are defined as follows:
	•  Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related
	expenses.
	•  Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level
	of insurance in force.
	•  Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
	•  Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.
	Non-GAAP Performance Measures
	Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.
	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at adjusted 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 our variable annuities;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed living benefit ("GLB") riders reflected within variable annuity net derivative results;
	▪  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 the fair value of equity securities
	•  Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);
	•  Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	•  Gains (losses) on early extinguishment of debt;
	• Losses from the impairment of intangible assets;
	•  Income (loss) from discontinued operations;
	•  Acquisition and integration costs related to mergers and acquisitions; and
	•  Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.
	Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	• Excluded realized gain (loss);
	•  Revenue adjustments from the initial adoption of new accounting standards;
	•  Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	•  Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
Page 2b

	Lincoln Financial Group
	Notes
	We use our prevailing federal income tax rates of 21% and 35%, where applicable, 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 adjusted operating revenues and adjusted
	income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
	Prior year net flows have been restated to conform to the current year presentation, which has been modified to be consistent across our business segments.
	Statistical Supplement is Dated
	The financial data in this document is dated August 1, 2018, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.
Page 2c

	Lincoln Financial Group
	Consolidated Statements of Income (Loss)
	Unaudited (millions of dollars, except per share data)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Revenues
	Insurance premiums	$	801	$	774	$	874	$	777	$	1,165	45.4%	$	1,608	$	1,943	20.8%
	Fee income		1,393		1,401		1,471		1,456		1,470	5.5%		2,747		2,926	6.5%
	Net investment income		1,262		1,239		1,252		1,233		1,232	-2.4%		2,499		2,465	-1.4%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(4)		(8)		(2)		(2)		(1)	75.0%		(8)		(3)	62.5%
	Realized gain (loss), excluding OTTI		(6)		(48)		(63)		14		(6)	-16.7%		(41)		8	119.5%
	Total realized gain (loss)		(10)		(56)		(65)		12		(7)	30.0%		(49)		5	110.2%
	Amortization of deferred gains on business
	sold through reinsurance		4		-		-		-		-	-100.0%		22		-	-100.0%
	Other revenues		127		153		137		131		160	26.0%		250		290	16.0%
	Total revenues		3,577		3,511		3,669		3,609		4,020	12.4%		7,077		7,629	7.8%
	Expenses
	Interest credited		646		647		650		653		647	0.2%		1,293		1,300	0.5%
	Benefits		1,287		1,261		1,321		1,358		1,661	29.1%		2,578		3,019	17.1%
	Commissions and other expenses		1,034		1,020		1,108		1,057		1,177	13.8%		2,048		2,234	9.1%
	Interest and debt expense		63		63		63		91		68	7.9%		127		159	25.2%
	Strategic digitization expense		14		10		10		15		16	14.3%		23		31	34.8%
	Impairment of intangibles		-		-		905		-		-	NM		-		-	NM
	Total expenses		3,044		3,001		4,057		3,174		3,569	17.2%		6,069		6,743	11.1%
	Income (loss) from continuing operations before taxes		533		510		(388)		435		451	-15.4%		1,008		886	-12.1%
	Federal income tax expense (benefit)		122		92		(1,204)		68		66	-45.9%		162		134	-17.3%
	Net income (loss)		411		418		816		367		385	-6.3%		846		752	-11.1%
	Adjustment for LNC stock units in our
	deferred compensation plans		1		-		2		(2)		(8)	NM		1		(10)	NM
	Net income (loss) available to common
	stockholders – diluted	$	412	$	418	$	818	$	365	$	377	-8.5%	$	847	$	742	-12.4%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.81	$	1.87	$	3.67	$	1.64	$	1.70	-6.1%	$	3.70	$	3.34	-9.7%
	ROE, including AOCI
	Net income (loss)		10.6%		10.3%		19.4%		8.8%		9.9%			11.2%		9.3%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	81,598	$	82,319	$	83,190	$	80,680	$	81,059	-0.7%
	U.S. government bonds		578		574		567		401		422	-27.0%
	Foreign government bonds		455		455		451		440		471	3.5%
	Mortgage-backed securities		4,028		4,037		4,065		4,037		4,121	2.3%
	Asset-backed collateralized debt obligations		703		694		808		875		1,119	59.2%
	State and municipal bonds		5,010		5,049		5,119		5,000		5,248	4.8%
	Hybrid and redeemable preferred securities		642		639		640		626		620	-3.4%
	AFS Equity securities		275		302		246		-		-	-100.0%
	Total AFS securities		93,289		94,069		95,086		92,059		93,060	-0.2%
	Trading securities		1,678		1,665		1,620		1,553		1,450	-13.6%
	Equity securities		-		-		-		112		112	NM
	Mortgage loans on real estate		10,023		10,382		10,762		11,047		12,217	21.9%
	Real estate		23		11		11		11		11	-52.2%
	Policy loans		2,416		2,417		2,399		2,389		2,508	3.8%
	Derivative investments		1,054		960		915		827		584	-44.6%
	Other investments		2,156		2,210		2,296		2,049		2,065	-4.2%
	Total investments		110,639		111,714		113,089		110,047		112,007	1.2%
	Cash and invested cash		1,978		1,965		1,628		2,257		1,775	-10.3%
	DAC and VOBA		8,555		8,543		8,403		9,289		9,904	15.8%
	Premiums and fees receivable		365		370		396		480		574	57.3%
	Accrued investment income		1,082		1,137		1,078		1,137		1,119	3.4%
	Reinsurance recoverables		5,228		5,062		4,907		5,009		17,979	243.9%
	Funds withheld reinsurance assets		607		602		593		576		572	-5.8%
	Goodwill		2,273		2,273		1,368		1,368		1,750	-23.0%
	Other assets		5,099		5,507		6,082		6,313		8,921	75.0%
	Separate account assets		135,825		139,612		144,219		142,761		144,231	6.2%
	Total assets	$	271,651	$	276,785	$	281,763	$	279,237	$	298,832	10.0%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	22,293	$	22,547	$	22,887	$	22,923	$	33,718	51.2%
	Other contract holder funds		79,216		79,623		80,209		80,710		88,698	12.0%
	Short-term debt		450		450		450		250		-	-100.0%
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 6 for details)		865		865		865		865		865	0.0%
	Financial		4,036		4,035		4,029		4,783		4,961	22.9%
	Reinsurance related embedded derivatives		53		63		57		34		25	-52.8%
	Funds withheld reinsurance liabilities		1,862		1,807		1,761		1,726		1,711	-8.1%
	Deferred gain on business sold through reinsurance		2		2		1		1		1	-50.0%
	Payables for collateral on investments		4,952		4,968		4,417		4,265		4,699	-5.1%
	Other liabilities		6,101		6,499		5,546		4,934		4,746	-22.2%
	Separate account liabilities		135,825		139,612		144,219		142,761		144,231	6.2%
	Total liabilities		255,655		260,471		264,441		263,252		283,655	11.0%
	Stockholders’ Equity
	Common stock		5,774		5,717		5,693		5,700		5,674	-1.7%
	Retained earnings		7,511		7,738		8,399		8,052		8,302	10.5%
	AOCI:
	Unrealized investment gains (losses)		3,003		3,149		3,501		2,533		1,502	-50.0%
	Foreign currency translation adjustment		(20)		(16)		(14)		(9)		(18)	10.0%
	Funded status of employee benefit plans		(272)		(274)		(257)		(291)		(283)	-4.0%
	Total AOCI		2,711		2,859		3,230		2,233		1,201	-55.7%
	Total stockholders’ equity		15,996		16,314		17,322		15,985		15,177	-5.1%
	Total liabilities and stockholders’ equity	$	271,651	$	276,785	$	281,763	$	279,237	$	298,832	10.0%
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 Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss)
	Net income (loss)	$	411	$	418	$	816	$	367	$	385	-6.3%	$	846	$	752	-11.1%
	Pre-tax adjusted income (loss) from operations		544		566		581		512		540	-0.7%		1,030		1,051	2.0%
	After-tax adjusted income (loss) from operations (1)		419		454		440		441		454	8.4%		860		895	4.1%
	Adjusted operating tax rate		23.0%		19.8%		24.3%		13.9%		15.9%			16.5%		14.8%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	15,485	$	16,155	$	16,818	$	16,653	$	15,581	0.6%	$	15,105	$	16,117	6.7%
	Average AOCI		2,279		2,785		3,044		3,052		1,717	-24.7%		1,993		2,384	19.6%
	Average equity, excluding AOCI	$	13,206	$	13,370	$	13,774	$	13,601	$	13,864	5.0%	$	13,112	$	13,733	4.7%
	ROE, excluding AOCI
	Net income (loss)		12.4%		12.5%		23.7%		10.8%		11.1%			12.9%		10.9%
	Adjusted income (loss) from operations		12.7%		13.6%		12.8%		13.0%		13.1%			13.1%		13.0%
	Per Share
	Net income (loss) (diluted)	$	1.81	$	1.87	$	3.67	$	1.64	$	1.70	-6.1%	$	3.70	$	3.34	-9.7%
	Adjusted income (loss) from operations (diluted)		1.85		2.03		1.98		1.97		2.02	9.2%		3.77		3.99	5.8%
	Dividends declared during the period		0.29		0.29		0.33		0.33		0.33	13.8%		0.58		0.66	13.8%
	Book value, including AOCI	$	71.98	$	74.31	$	79.43	$	73.09	$	69.85	-3.0%	$	71.98	$	69.85	-3.0%
	Per share impact of AOCI		12.20		13.02		14.81		10.21		5.53	-54.7%		12.20		5.53	-54.7%
	Book value, excluding AOCI	$	59.78	$	61.29	$	64.62	$	62.88	$	64.32	7.6%	$	59.78	$	64.32	7.6%
	Shares
	Repurchased during the period		3.0		2.8		1.7		-		1.5	-50.0%		5.9		1.5	-74.6%
	End-of-period – basic		222.2		219.5		218.1		218.7		217.3	-2.2%		222.2		217.3	-2.2%
	End-of-period – diluted		226.0		222.7		221.3		222.4		220.7	-2.3%		226.0		220.7	-2.3%
	Average for the period – diluted		227.3		223.9		221.9		222.3		221.6	-2.5%		228.7		221.9	-3.0%
	(1) See reconciliation to net income (loss) on page 24.
Page 5

	Lincoln Financial Group
	Key Stakeholder Metrics
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Cash Returned to Common Stockholders
	Shares repurchased	$	200	$	200	$	125	$	-	$	100	-50.0%	$	400	$	100	-75.0%
	Common dividends		65		64		64		72		72	10.8%		131		144	9.9%
	Total cash returned to common stockholders	$	265	$	264	$	189	$	72	$	172	-35.1%	$	531	$	244	-54.0%
	Leverage Ratio
	Short-term debt	$	450	$	450	$	450	$	250	$	-	-100.0%
	Long-term debt		4,901		4,900		4,894		5,648		5,826	18.9%
	Total debt (1)		5,351		5,350		5,344		5,898		5,826	8.9%
	Less:
	Operating debt (2)		865		865		865		865		865	0.0%
	25% of capital securities		302		302		302		302		302	0.0%
	Carrying value of fair value hedges and other items		263		261		254		200		178	-32.3%
	Total numerator	$	3,921	$	3,922	$	3,923	$	4,531	$	4,481	14.3%
	Stockholders’ equity, excluding unrealized
	investment gains (losses)	$	12,993	$	13,165	$	13,821	$	13,452	$	13,675	5.2%
	Add:  25% of capital securities		302		302		302		302		302	0.0%
	Total numerator		3,921		3,922		3,923		4,531		4,481	14.3%
	Total denominator	$	17,216	$	17,389	$	18,046	$	18,285	$	18,458	7.2%
	Leverage ratio		22.8%		22.6%		21.7%		24.8%		24.3%
	Holding Company Available Liquidity	$	523	$	569	$	605	$	1,063	$	484	-7.5%
	(1) Excludes obligations under capital leases of $327 million that are reported in other liabilities on our Consolidated Balance Sheets.
	(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
	on increasing statutory reserves associated with secondary guarantee UL and term policies.
Page 6

	Lincoln Financial Group
	Segment and Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended											As of or For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss) from Operations, Pre-Tax
	Annuities	$	310	$	350	$	333	$	313	$	322	3.9%	$	590	$	635	7.6%
	Retirement Plan Services		50		48		57		48		51	2.0%		98		99	1.0%
	Life Insurance		194		175		223		172		185	-4.6%		381		357	-6.3%
	Group Protection		53		63		31		37		57	7.5%		64		94	46.9%
	Other Operations		(63)		(70)		(63)		(58)		(75)	-19.0%		(103)		(134)	-30.1%
	Adjusted income (loss) from operations, before
	income taxes	$	544	$	566	$	581	$	512	$	540	-0.7%	$	1,030	$	1,051	2.0%
	Income (Loss) from Operations, After-Tax
	Annuities	$	251	$	277	$	265	$	267	$	275	9.6%	$	532	$	542	1.9%
	Retirement Plan Services		37		35		41		43		43	16.2%		74		86	16.2%
	Life Insurance		133		121		152		144		150	12.8%		263		294	11.8%
	Group Protection		35		41		20		29		45	28.6%		42		74	76.2%
	Other Operations		(37)		(20)		(38)		(42)		(59)	-59.5%		(51)		(101)	-98.0%
	Adjusted income (loss) from operations	$	419	$	454	$	440	$	441	$	454	8.4%	$	860	$	895	4.1%
			For the Three Months Ended										For the Trailing Twelve Months
			6/30/17		9/30/17		12/31/17		3/31/18		6/30/18	Change	6/30/17		6/30/18		Change
	Sources of Earnings, Pre-Tax
	Investment spread	$	186	$	188	$	202	$	161	$	172	-7.5%	$	763	$	724	-5.1%
	Mortality/morbidity		158		156		156		132		159	0.6%		599		604	0.8%
	Fees on AUM		230		280		249		247		256	11.3%		881		1,031	17.0%
	VA riders		33		12		37		30		28	-15.2%		134		107	-20.1%
	Total sources of earnings, before income taxes		607		636		644		570		615	1.3%		2,377		2,466	3.7%
	Other Operations		(63)		(70)		(63)		(58)		(75)	-19.0%		(242)		(269)	-11.2%
	Adjusted income (loss) from operations, before
	income taxes	$	544	$	566	$	581	$	512	$	540	-0.7%	$	2,135	$	2,197	2.9%
	Sources of Earnings, Pre-Taxes, Percentage By Component
	Investment spread		30.7%		29.6%		31.4%		28.2%		28.0%			32.1%		29.4%
	Mortality/morbidity		26.0%		24.6%		24.2%		23.1%		26.0%			25.2%		24.5%
	Fees on AUM		37.8%		43.9%		38.6%		43.4%		41.5%			37.1%		41.8%
	VA riders		5.5%		1.9%		5.8%		5.3%		4.5%			5.6%		4.3%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%
Page 7

	Lincoln Financial Group
	Select Earnings Drivers By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Annuities
	Operating revenues	$	1,076	$	1,073	$	1,167	$	1,073	$	1,106	2.8%	$	2,138	$	2,180	2.0%
	Deposits		1,991		1,916		2,787		2,526		2,983	49.8%		4,008		5,509	37.5%
	Net flows		(887)		(841)		(222)		(606)		(126)	85.8%		(1,643)		(732)	55.4%
	Average account values		130,321		132,304		135,417		138,290		136,741	4.9%		128,990		137,532	6.6%
	Retirement Plan Services
	Operating revenues	$	290	$	291	$	302	$	292	$	292	0.7%	$	571	$	584	2.3%
	Deposits		1,978		1,908		2,426		2,360		2,217	12.1%		4,229		4,577	8.2%
	Net flows		421		442		440		463		499	18.5%		562		962	71.2%
	Average account values		61,728		63,665		66,212		68,249		68,534	11.0%		60,613		68,437	12.9%
	Life Insurance
	Operating revenues	$	1,655	$	1,614	$	1,684	$	1,660	$	1,680	1.5%	$	3,260	$	3,340	2.5%
	Deposits		1,543		1,462		1,896		1,534		1,517	-1.7%		2,959		3,051	3.1%
	Net flows		1,101		1,064		1,443		1,076		1,084	-1.5%		2,025		2,160	6.7%
	Average account values		46,842		47,547		48,481		49,165		49,548	5.8%		46,495		49,357	6.2%
	Average in-force face amount		701,592		708,148		715,924		722,585		727,577	3.7%		698,676		725,081	3.8%
	Group Protection
	Operating revenues	$	541	$	564	$	554	$	553	$	937	73.2%	$	1,082	$	1,490	37.7%
	Non-medical earned premiums		494		500		509		508		846	71.3%		988		1,354	37.0%
	Consolidated
	Adjusted operating revenues (1)	$	3,629	$	3,607	$	3,775	$	3,645	$	4,073	12.2%	$	7,206	$	7,719	7.1%
	Deposits		5,512		5,286		7,109		6,420		6,717	21.9%		11,196		13,137	17.3%
	Net flows		635		665		1,661		933		1,457	129.4%		944		2,390	153.2%
	Average account values		238,891		243,516		250,110		255,704		254,823	6.7%		236,098		255,326	8.1%
	(1) See reconciliation to total revenues on page 24.
Page 8

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Sales
	Annuities:
	With guaranteed living benefits	$	1,007	$	959	$	1,504	$	1,447	$	1,496	48.6%	$	1,913	$	2,943	53.8%
	Without guaranteed living benefits		607		573		638		587		598	-1.5%		1,156		1,185	2.5%
	Variable		1,614		1,532		2,142		2,034		2,094	29.7%		3,069		4,128	34.5%
	Fixed		377		384		645		492		889	135.8%		939		1,381	47.1%
	Total Annuities	$	1,991	$	1,916	$	2,787	$	2,526	$	2,983	49.8%	$	4,008	$	5,509	37.5%
	Retirement Plan Services:
	First-year sales	$	737	$	672	$	1,166	$	800	$	841	14.1%	$	1,537	$	1,641	6.8%
	Recurring deposits		1,241		1,236		1,260		1,560		1,376	10.9%		2,692		2,936	9.1%
	Total Retirement Plan Services	$	1,978	$	1,908	$	2,426	$	2,360	$	2,217	12.1%	$	4,229	$	4,577	8.2%
	Life Insurance:
	UL	$	14	$	10	$	11	$	10	$	10	-28.6%	$	31	$	19	-38.7%
	MoneyGuard®		80		65		64		56		57	-28.8%		139		115	-17.3%
	IUL		16		19		17		14		14	-12.5%		34		28	-17.6%
	VUL		50		45		63		58		46	-8.0%		86		104	20.9%
	Term		28		29		30		25		29	3.6%		55		54	-1.8%
	Total individual life insurance		188		168		185		163		156	-17.0%		345		320	-7.2%
	Executive Benefits		9		10		57		10		6	-33.3%		33		16	-51.5%
	Total Life Insurance	$	197	$	178	$	242	$	173	$	162	-17.8%	$	378	$	336	-11.1%
	Group Protection:
	Life	$	28	$	33	$	95	$	23	$	31	10.7%	$	51	$	53	3.9%
	Disability		32		35		108		21		38	18.8%		55		59	7.3%
	Dental		28		26		62		11		25	-10.7%		39		37	-5.1%
	Total Group Protection	$	88	$	94	$	265	$	55	$	94	6.8%	$	145	$	149	2.8%
	Percent employee-paid		40.7%		44.7%		48.0%		53.4%		39.9%			45.6%		44.9%
Page 9

	Lincoln Financial Group
	Operating Revenues and General and Administrative Expenses By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Operating Revenues
	Annuities	$	1,076	$	1,073	$	1,167	$	1,073	$	1,106	2.8%	$	2,138	$	2,180	2.0%
	Retirement Plan Services		290		291		302		292		292	0.7%		571		584	2.3%
	Life Insurance		1,655		1,614		1,684		1,660		1,680	1.5%		3,260		3,340	2.5%
	Group Protection		541		564		554		553		937	73.2%		1,082		1,490	37.7%
	Other Operations		67		65		68		67		58	-13.4%		155		125	-19.4%
	Total adjusted operating revenues	$	3,629	$	3,607	$	3,775	$	3,645	$	4,073	12.2%	$	7,206	$	7,719	7.1%
	General and Administrative Expenses,
	Net of Amounts Capitalized (1)
	Annuities	$	120	$	114	$	121	$	116	$	111	-7.5%	$	232	$	227	-2.2%
	Retirement Plan Services		79		77		80		76		75	-5.1%		154		151	-1.9%
	Life Insurance		126		125		133		118		113	-10.3%		246		230	-6.5%
	Group Protection		77		85		90		80		140	81.8%		149		220	47.7%
	Other Operations		26		29		31		28		28	7.7%		49		57	16.3%
	Total	$	428	$	430	$	455	$	418	$	467	9.1%	$	830	$	885	6.6%
	General and Administrative Expenses,
	Net of Amounts Capitalized, as a Percentage
	of Operating Revenues
	Annuities		11.1%		10.6%		10.3%		10.8%		10.0%			10.8%		10.4%
	Retirement Plan Services		27.2%		26.5%		26.5%		25.9%		25.7%			26.9%		25.8%
	Life Insurance		7.6%		7.8%		7.9%		7.1%		6.7%			7.5%		6.9%
	Group Protection		14.2%		15.1%		16.2%		14.5%		14.9%			13.8%		14.8%
	Other Operations		40.8%		42.1%		47.7%		42.0%		50.2%			31.7%		45.7%
	Total		11.8%		11.9%		12.1%		11.5%		11.5%			11.5%		11.5%
	(1) See page 11 for general and administrative expenses capitalized.
Page 10

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	475	$	479	$	519	$	460	$	515	8.4%	$	921	$	975	5.9%
	Commissions		576		555		623		596		623	8.2%		1,131		1,219	7.8%
	Taxes, licenses and fees		64		57		60		78		79	23.4%		134		158	17.9%
	Interest and debt expense		63		63		63		68		68	7.9%		127		136	7.1%
	Expenses associated with reserve financing
	and unrelated letters of credit		21		20		21		20		21	0.0%		42		41	-2.4%
	Total adjusted operating commissions and other
	expenses incurred		1,199		1,174		1,286		1,222		1,306	8.9%		2,355		2,529	7.4%
	Less Amounts Capitalized
	General and administrative expenses		(47)		(49)		(64)		(42)		(48)	-2.1%		(91)		(90)	1.1%
	Commissions		(280)		(254)		(308)		(289)		(292)	-4.3%		(541)		(582)	-7.6%
	Taxes, licenses and fees		(11)		(10)		(16)		(11)		(10)	9.1%		(22)		(21)	4.5%
	Total amounts capitalized		(338)		(313)		(388)		(342)		(350)	-3.6%		(654)		(693)	-6.0%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		861		861		898		880		956	11.0%		1,701		1,836	7.9%
	Amortization
	Amortization of DAC, VOBA and other intangibles		244		221		276		259		262	7.4%		482		521	8.1%
	Total adjusted operating commissions and
	other expenses	$	1,105	$	1,082	$	1,174	$	1,139	$	1,218	10.2%	$	2,183	$	2,357	8.0%
Page 11

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Annuities
	Earned rate on reserves		3.99%		3.94%		3.93%		3.87%		3.84%	(15)		4.03%		3.85%	(18)
	Variable investment income on reserves (1)		0.20%		0.33%		0.31%		0.08%		0.13%	(7)		0.15%		0.11%	(4)
	Net investment income yield on reserves		4.19%		4.27%		4.24%		3.95%		3.97%	(22)		4.18%		3.96%	(22)
	Interest rate credited to contract holders		2.37%		2.29%		2.27%		2.32%		2.23%	(14)		2.40%		2.27%	(13)
	Interest rate spread		1.82%		1.98%		1.97%		1.63%		1.74%	(8)		1.78%		1.69%	(9)
	Base spreads excluding variable investment income		1.62%		1.65%		1.66%		1.55%		1.61%	(1)		1.63%		1.58%	(5)
	Retirement Plan Services
	Earned rate on reserves		4.30%		4.31%		4.33%		4.28%		4.25%	(5)		4.33%		4.27%	(6)
	Variable investment income on reserves (1)		0.17%		0.15%		0.33%		0.09%		0.12%	(5)		0.13%		0.10%	(3)
	Net investment income yield on reserves		4.47%		4.46%		4.66%		4.37%		4.37%	(10)		4.46%		4.37%	(9)
	Interest rate credited to contract holders		2.91%		2.93%		2.91%		2.90%		2.90%	(1)		2.92%		2.90%	(2)
	Interest rate spread		1.56%		1.53%		1.75%		1.47%		1.47%	(9)		1.54%		1.47%	(7)
	Base spreads excluding variable investment income		1.39%		1.38%		1.42%		1.38%		1.35%	(4)		1.41%		1.37%	(4)
	Life Insurance – Interest-Sensitive
	Earned rate on reserves		5.05%		5.06%		5.06%		4.98%		4.98%	(7)		5.08%		4.98%	(10)
	Variable investment income on reserves (1)		0.44%		0.27%		0.27%		0.27%		0.16%	(28)		0.39%		0.21%	(18)
	Net investment income yield on reserves		5.49%		5.33%		5.33%		5.25%		5.14%	(35)		5.47%		5.19%	(28)
	Interest rate credited to contract holders		3.82%		3.83%		3.87%		3.83%		3.80%	(2)		3.83%		3.81%	(2)
	Interest rate spread		1.67%		1.50%		1.46%		1.42%		1.34%	(33)		1.64%		1.38%	(26)
	Base spreads excluding variable investment income		1.23%		1.23%		1.19%		1.15%		1.18%	(5)		1.25%		1.17%	(8)
	Total (2)
	Earned rate (3)		4.57%		4.52%		4.53%		4.50%		4.46%	(11)		4.59%		4.48%	(11)
	Variable investment income (1) (3)		0.35%		0.28%		0.29%		0.23%		0.17%	(18)		0.30%		0.20%	(10)
	Net investment income yield (3)		4.92%		4.80%		4.82%		4.73%		4.63%	(29)		4.89%		4.68%	(21)
	Interest rate credited to contract holders		3.22%		3.19%		3.21%		3.20%		3.16%	(6)		3.24%		3.18%	(6)
	Interest rate spread		1.70%		1.61%		1.61%		1.53%		1.47%	(23)		1.65%		1.50%	(15)
	Base spreads excluding variable investment income		1.35%		1.33%		1.32%		1.30%		1.30%	(5)		1.35%		1.30%	(5)
	(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
	(2) Includes the results of all of our business segments and Other Operations.
	(3) Includes investment yields on reserves and surplus.
Page 12

	Lincoln Financial Group
	Annuities – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	106	$	82	$	162	$	70	$	109	2.8%	$	230	$	180	-21.7%
	Fee income		553		574		585		586		587	6.1%		1,086		1,173	8.0%
	Net investment income		263		260		258		249		244	-7.2%		519		493	-5.0%
	Operating realized gain (loss)		45		44		44		48		48	6.7%		90		96	6.7%
	Other revenues		109		113		118		120		118	8.3%		213		238	11.7%
	Total operating revenues		1,076		1,073		1,167		1,073		1,106	2.8%		2,138		2,180	2.0%
	Operating expenses:
	Interest credited		145		145		144		148		144	-0.7%		292		291	-0.3%
	Benefits		174		135		224		145		183	5.2%		366		329	-10.1%
	Commissions incurred		222		216		254		244		265	19.4%		446		509	14.1%
	Other expenses incurred		224		220		234		232		222	-0.9%		438		454	3.7%
	Amounts capitalized		(98)		(90)		(126)		(120)		(134)	-36.7%		(194)		(254)	-30.9%
	Amortization		99		97		104		111		104	5.1%		200		216	8.0%
	Total operating expenses		766		723		834		760		784	2.3%		1,548		1,545	-0.2%
	Income (loss) from operations before taxes		310		350		333		313		322	3.9%		590		635	7.6%
	Federal income tax expense (benefit)		59		73		68		46		47	-20.3%		58		93	60.3%
	Income (loss) from operations	$	251	$	277	$	265	$	267	$	275	9.6%	$	532	$	542	1.9%
	Effective Federal Income Tax Rate		19.2%		20.8%		20.3%		14.7%		14.6%			9.9%		14.6%
	Average Equity, Excluding Goodwill and AOCI	$	4,769	$	4,982	$	5,093	$	4,954	$	5,002	4.9%	$	4,672	$	4,978	6.5%
	ROE, Excluding Goodwill and AOCI		21.0%		22.3%		20.9%		21.6%		22.0%			22.8%		21.8%
	Return on Average Account Values		77		84		78		77		81	4		82		79	(3)
	Income (Loss) from Operations
	Variable annuity		205		224		217		220		225	9.8%		445		444	-0.2%
	Fixed annuity		46		53		48		47		50	8.7%		87		98	12.6%
	Account Values
	Variable annuity account values:
	Average	$	110,832	$	112,888	$	115,981	$	118,782	$	117,177	5.7%	$	109,592	$	117,974	7.6%
	End-of-period		111,570		114,270		117,479		116,172		116,901	4.8%		111,570		116,901	4.8%
	Fixed annuity account values:
	Average		19,489		19,416		19,436		19,508		19,564	0.4%		19,398		19,558	0.8%
	End-of-period		19,459		19,394		19,537		19,457		19,655	1.0%		19,459		19,655	1.0%
Page 13

	Lincoln Financial Group
	Retirement Plan Services – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	62	$	63	$	64	$	64	$	64	3.2%	$	121	$	129	6.6%
	Net investment income		224		223		233		222		222	-0.9%		441		444	0.7%
	Other revenues		4		5		5		6		6	50.0%		9		11	22.2%
	Total operating revenues		290		291		302		292		292	0.7%		571		584	2.3%
	Operating expenses:
	Interest credited		134		136		136		137		137	2.2%		265		274	3.4%
	Benefits		-		-		-		-		-	NM		1		1	0.0%
	Commissions incurred		19		19		20		19		21	10.5%		38		40	5.3%
	Other expenses incurred		89		86		89		85		83	-6.7%		172		167	-2.9%
	Amounts capitalized		(8)		(6)		(7)		(4)		(6)	25.0%		(15)		(10)	33.3%
	Amortization		6		8		7		7		6	0.0%		12		13	8.3%
	Total operating expenses		240		243		245		244		241	0.4%		473		485	2.5%
	Income (loss) from operations before taxes		50		48		57		48		51	2.0%		98		99	1.0%
	Federal income tax expense (benefit)		13		13		16		5		8	-38.5%		24		13	-45.8%
	Income (loss) from operations	$	37	$	35	$	41	$	43	$	43	16.2%	$	74	$	86	16.2%
	Effective Federal Income Tax Rate		27.5%		27.9%		28.5%		11.4%		15.1%			25.0%		13.3%
	Average Equity, Excluding Goodwill and AOCI	$	1,218	$	1,218	$	1,227	$	1,312	$	1,302	6.9%	$	1,204	$	1,307	8.5%
	ROE, Excluding Goodwill and AOCI		12.0%		11.5%		13.3%		13.0%		13.3%			12.2%		13.1%
	Pre-tax Net Margin		32.2%		31.3%		34.4%		31.0%		32.8%			32.1%		31.9%
	Return on Average Account Values		24		22		25		25		25	1		24		25	1
	Net Flows by Market
	Small Market		137		183		279		(79)		12	-91.2%	$	(230)	$	(67)	70.9%
	Mid - Large Market		536		503		455		834		730	36.2%		1,285		1,564	21.7%
	Multi-Fund®and Other		(252)		(244)		(294)		(292)		(243)	3.6%		(493)		(535)	-8.5%
	Net Flows – Trailing Twelve Months	$	1,089	$	1,412	$	1,444	$	1,766	$	1,844	69.3%	$	1,089	$	1,844	69.3%
Page 14

	Lincoln Financial Group
	Life Insurance – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	199	$	191	$	199	$	196	$	205	3.0%	$	384	$	401	4.4%
	Fee income		778		764		821		805		819	5.3%		1,538		1,624	5.6%
	Net investment income		672		655		659		658		650	-3.3%		1,329		1,308	-1.6%
	Operating realized gain (loss)		(3)		(3)		(3)		(1)		(2)	33.3%		(7)		(2)	71.4%
	Other revenues		9		7		8		2		8	-11.1%		16		9	-43.8%
	Total operating revenues		1,655		1,614		1,684		1,660		1,680	1.5%		3,260		3,340	2.5%
	Operating expenses:
	Interest credited		349		350		355		354		351	0.6%		698		705	1.0%
	Benefits		807		808		779		849		840	4.1%		1,604		1,690	5.4%
	Commissions incurred		190		176		193		180		166	-12.6%		365		345	-5.5%
	Other expenses incurred		209		205		216		201		198	-5.3%		409		399	-2.4%
	Amounts capitalized		(219)		(201)		(228)		(204)		(193)	11.9%		(418)		(397)	5.0%
	Amortization		125		101		146		108		133	6.4%		221		241	9.0%
	Total operating expenses		1,461		1,439		1,461		1,488		1,495	2.3%		2,879		2,983	3.6%
	Income (loss) from operations before taxes		194		175		223		172		185	-4.6%		381		357	-6.3%
	Federal income tax expense (benefit)		61		54		71		28		35	-42.6%		118		63	-46.6%
	Income (loss) from operations	$	133	$	121	$	152	$	144	$	150	12.8%	$	263	$	294	11.8%
	Effective Federal Income Tax Rate		31.6%		30.8%		32.0%		16.2%		18.9%			31.0%		17.6%
	Average Equity, Excluding Goodwill and AOCI	$	6,762	$	6,798	$	6,804	$	7,826	$	7,954	17.6%	$	6,672	$	7,890	18.3%
	ROE, Excluding Goodwill and AOCI		7.9%		7.1%		8.9%		7.4%		7.5%			7.9%		7.5%
	Average Account Values	$	46,842	$	47,547	$	48,481	$	49,165	$	49,548	5.8%	$	46,495	$	49,357	6.2%
	In-Force Face Amount
	UL and other	$	337,971	$	338,753	$	341,044	$	340,862	$	341,663	1.1%	$	337,971	$	341,663	1.1%
	Term insurance		366,628		372,943		379,108		384,154		388,475	6.0%		366,628		388,475	6.0%
	Total in-force face amount	$	704,599	$	711,696	$	720,152	$	725,016	$	730,138	3.6%	$	704,599	$	730,138	3.6%
Page 15

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	494	$	500	$	509	$	508	$	846	71.3%	$	988	$	1,354	37.0%
	Net investment income		43		41		41		40		63	46.5%		87		103	18.4%
	Other revenues		4		23		4		5		28	NM		7		33	NM
	Total operating revenues		541		564		554		553		937	73.2%		1,082		1,490	37.7%
	Operating expenses:
	Interest credited		-		-		1		1		1	NM		1		2	100.0%
	Benefits		326		334		341		326		617	89.3%		676		943	39.5%
	Commissions incurred		62		62		69		66		83	33.9%		125		149	19.2%
	Other expenses incurred		99		107		120		105		176	77.8%		196		281	43.4%
	Amounts capitalized		(13)		(16)		(26)		(13)		(17)	-30.8%		(27)		(30)	-11.1%
	Amortization		14		14		18		31		20	42.9%		47		51	8.5%
	Total operating expenses		488		501		523		516		880	80.3%		1,018		1,396	37.1%
	Income (loss) from operations before taxes		53		63		31		37		57	7.5%		64		94	46.9%
	Federal income tax expense (benefit)		18		22		11		8		12	-33.3%		22		20	-9.1%
	Income (loss) from operations	$	35	$	41	$	20	$	29	$	45	28.6%	$	42	$	74	76.2%
	Effective Federal Income Tax Rate		35.0%		35.0%		35.0%		21.0%		21.0%			35.0%		21.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,044	$	1,054	$	1,078	$	1,102	$	1,610	54.2%	$	1,055	$	1,356	28.5%
	ROE, Excluding Goodwill and AOCI		13.3%		15.6%		7.5%		10.5%		11.2%			7.9%		10.9%
	Loss Ratios by Product Line
	Life		66.1%		55.8%		66.2%		63.2%		68.0%			69.3%		66.1%
	Disability		65.4%		69.5%		67.8%		61.9%		76.4%			67.1%		71.6%
	Dental		68.7%		68.0%		67.5%		74.7%		73.4%			71.0%		74.0%
	Total non-medical		66.1%		63.7%		67.1%		64.3%		73.1%			68.5%		69.8%
Page 16

	Lincoln Financial Group
	Other Operations – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	2	$	1	$	3	$	3	$	5	150.0%	$	5	$	8	60.0%
	Net investment income		60		60		61		64		53	-11.7%		123		117	-4.9%
	Amortization of deferred gain on
	business sold through reinsurance		4		-		-		-		-	-100.0%		21		-	-100.0%
	Other revenues		1		4		4		-		-	-100.0%		6		-	-100.0%
	Total operating revenues		67		65		68		67		58	-13.4%		155		125	-19.4%
	Operating expenses:
	Interest credited		18		15		14		15		14	-22.2%		36		29	-19.4%
	Benefits		27		36		26		19		28	3.7%		54		47	-13.0%
	Commissions and other expenses		8		11		18		8		7	-12.5%		18		16	-11.1%
	Interest and debt expenses		63		63		63		68		68	7.9%		127		136	7.1%
	Strategic digitization expense		14		10		10		15		16	14.3%		23		31	34.8%
	Total operating expenses		130		135		131		125		133	2.3%		258		259	0.4%
	Income (loss) from operations before taxes		(63)		(70)		(63)		(58)		(75)	-19.0%		(103)		(134)	-30.1%
	Federal income tax expense (benefit)		(26)		(50)		(25)		(16)		(16)	38.5%		(52)		(33)	36.5%
	Income (loss) from operations	$	(37)	$	(20)	$	(38)	$	(42)	$	(59)	-59.5%	$	(51)	$	(101)	-98.0%
Page 17

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	DAC, VOBA and DSI
	Balance as of beginning-of-period	$	9,274	$	8,794	$	8,779	$	8,641	$	9,538	2.8%	$	9,377	$	8,641	-7.8%
	Deferrals		342		319		397		353		363	6.1%		668		716	7.2%
	Operating amortization		(250)		(232)		(284)		(267)		(269)	-7.6%		(494)		(535)	-8.3%
	Deferrals, net of operating amortization		92		87		113		86		94	2.2%		174		181	4.0%
	Amortization associated with benefit ratio unlocking		(6)		(7)		(6)		5		1	116.7%		(17)		6	135.3%
	Business acquired		-		-		-		-		30	NM		-		30	NM
	Adjustment related to realized (gains) losses		(10)		1		(1)		(5)		(7)	30.0%		(14)		(12)	14.3%
	Adjustment related to unrealized (gains) losses		(556)		(96)		(244)		811		506	191.0%		(726)		1,316	281.3%
	Balance as of end-of-period	$	8,794	$	8,779	$	8,641	$	9,538	$	10,162	15.6%	$	8,794	$	10,162	15.6%
	DFEL
	Balance as of beginning-of-period	$	1,796	$	1,443	$	1,545	$	1,445	$	1,877	4.5%	$	1,874	$	1,445	-22.9%
	Deferrals		196		187		203		203		207	5.6%		365		410	12.3%
	Operating amortization		(94)		(98)		(118)		(107)		(121)	-28.7%		(176)		(227)	-29.0%
	Deferrals, net of operating amortization		102		89		85		96		86	-15.7%		189		183	-3.2%
	Amortization associated with benefit ratio unlocking		(1)		(1)		(1)		1		-	100.0%		(2)		1	150.0%
	Adjustment related to realized (gains) losses		(4)		(3)		(2)		(4)		(4)	0.0%		(8)		(8)	0.0%
	Adjustment related to unrealized (gains) losses		(450)		17		(182)		339		335	174.4%		(610)		673	210.3%
	Balance as of end-of-period	$	1,443	$	1,545	$	1,445	$	1,877	$	2,294	59.0%	$	1,443	$	2,294	59.0%
	DAC, VOBA, DSI and DFEL
	Balance as of End-of-Period, After-Tax	$	4,778	$	4,702	$	4,677	$	6,052	$	6,216	30.1%	$	4,778	$	6,216	30.1%
Page 18

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	20,027	$	20,021	$	20,014	$	20,305	$	20,315	1.4%	$	19,723	$	20,305	3.0%
	Gross deposits		377		384		645		492		889	135.8%		939		1,381	47.1%
	Full surrenders and deaths		(404)		(420)		(396)		(399)		(490)	-21.3%		(747)		(890)	-19.1%
	Other contract benefits		(143)		(148)		(167)		(152)		(157)	-9.8%		(274)		(308)	-12.4%
	Net flows		(170)		(184)		82		(59)		242	242.4%		(82)		183	NM
	Contract holder assessments		(7)		(7)		(8)		(7)		(8)	-14.3%		(13)		(15)	-15.4%
	Reinvested interest credited		171		184		217		76		173	1.2%		393		249	-36.6%
	Balance as of end-of-period, gross		20,021		20,014		20,305		20,315		20,722	3.5%		20,021		20,722	3.5%
	Reinsurance ceded		(562)		(620)		(768)		(858)		(1,067)	-89.9%		(562)		(1,067)	-89.9%
	Balance as of end-of-period, net	$	19,459	$	19,394	$	19,537	$	19,457	$	19,655	1.0%	$	19,459	$	19,655	1.0%
	Variable Annuities
	Balance as of beginning-of-period	$	109,475	$	111,570	$	114,270	$	117,479	$	116,172	6.1%	$	105,766	$	117,479	11.1%
	Gross deposits		1,614		1,532		2,142		2,034		2,094	29.7%		3,069		4,128	34.5%
	Full surrenders and deaths		(1,474)		(1,374)		(1,492)		(1,614)		(1,545)	-4.8%		(2,913)		(3,158)	-8.4%
	Other contract benefits		(857)		(815)		(954)		(967)		(917)	-7.0%		(1,717)		(1,885)	-9.8%
	Net flows		(717)		(657)		(304)		(547)		(368)	48.7%		(1,561)		(915)	41.4%
	Contract holder assessments		(590)		(599)		(615)		(619)		(620)	-5.1%		(1,169)		(1,238)
	Change in market value and reinvestment		3,402		3,956		4,128		(141)		1,717	-49.5%		8,534		1,575	-81.5%
	Balance as of end-of-period, gross and net	$	111,570	$	114,270	$	117,479	$	116,172	$	116,901	4.8%	$	111,570	$	116,901	4.8%
	Total
	Balance as of beginning-of-period	$	129,502	$	131,591	$	134,284	$	137,784	$	136,487	5.4%	$	125,489	$	137,784	9.8%
	Gross deposits		1,991		1,916		2,787		2,526		2,983	49.8%		4,008		5,509	37.5%
	Full surrenders and deaths		(1,878)		(1,794)		(1,888)		(2,013)		(2,035)	-8.4%		(3,660)		(4,048)	-10.6%
	Other contract benefits		(1,000)		(963)		(1,121)		(1,119)		(1,074)	-7.4%		(1,991)		(2,193)	-10.1%
	Net flows		(887)		(841)		(222)		(606)		(126)	85.8%		(1,643)		(732)	55.4%
	Contract holder assessments		(597)		(606)		(623)		(626)		(628)	-5.2%		(1,182)		(1,253)	-6.0%
	Change in market value and reinvestment		3,573		4,140		4,345		(65)		1,890	-47.1%		8,927		1,824	-79.6%
	Balance as of end-of-period, gross		131,591		134,284		137,784		136,487		137,623	4.6%		131,591		137,623	4.6%
	Reinsurance ceded		(562)		(620)		(768)		(858)		(1,067)	-89.9%		(562)		(1,067)	-89.9%
	Balance as of end-of-period, net	$	131,029	$	133,664	$	137,016	$	135,629	$	136,556	4.2%	$	131,029	$	136,556	4.2%
Page 19

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	General Account
	Balance as of beginning-of-period	$	18,192	$	18,413	$	18,626	$	18,724	$	18,856	3.6%	$	17,883	$	18,724	4.7%
	Gross deposits		557		415		494		459		394	-29.3%		1,267		853	-32.7%
	Withdrawals		(427)		(395)		(545)		(520)		(443)	-3.7%		(961)		(963)	-0.2%
	Net flows		130		20		(51)		(61)		(49)	NM		306		(110)	NM
	Transfers between fixed and variable accounts		(40)		59		14		60		104	NM		(40)		164	NM
	Contract holder assessments		(2)		(2)		(2)		(3)		(3)	-50.0%		(5)		(5)	0.0%
	Reinvestment interest credited		133		136		137		136		138	3.8%		269		273	1.5%
	Balance as of end-of-period	$	18,413	$	18,626	$	18,724	$	18,856	$	19,046	3.4%	$	18,413	$	19,046	3.4%
	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	42,541	$	44,155	$	46,203	$	48,645	$	48,854	14.8%	$	40,551	$	48,645	20.0%
	Gross deposits		1,421		1,493		1,932		1,901		1,823	28.3%		2,962		3,724	25.7%
	Withdrawals		(1,130)		(1,071)		(1,441)		(1,377)		(1,275)	-12.8%		(2,706)		(2,652)	2.0%
	Net flows		291		422		491		524		548	88.3%		256		1,072	NM
	Transfers between fixed and variable accounts		(23)		(88)		(61)		(119)		(112)	NM		(31)		(231)	NM
	Contract holder assessments		(49)		(50)		(52)		(52)		(52)	-6.1%		(95)		(105)	-10.5%
	Change in market value and reinvestment		1,395		1,764		2,064		(144)		899	-35.6%		3,474		756	-78.2%
	Balance as of end-of-period	$	44,155	$	46,203	$	48,645	$	48,854	$	50,137	13.5%	$	44,155	$	50,137	13.5%
	Total
	Balance as of beginning-of-period	$	60,733	$	62,568	$	64,829	$	67,369	$	67,710	11.5%	$	58,434	$	67,369	15.3%
	Gross deposits		1,978		1,908		2,426		2,360		2,217	12.1%		4,229		4,577	8.2%
	Withdrawals		(1,557)		(1,466)		(1,986)		(1,897)		(1,718)	-10.3%		(3,667)		(3,615)	1.4%
	Net flows		421		442		440		463		499	18.5%		562		962	71.2%
	Transfers between fixed and variable accounts		(63)		(29)		(47)		(59)		(8)	87.3%		(71)		(67)	5.6%
	Contract holder assessments		(51)		(52)		(54)		(55)		(55)	-7.8%		(100)		(110)	-10.0%
	Change in market value and reinvestment		1,528		1,900		2,201		(8)		1,037	-32.1%		3,743		1,029	-72.5%
	Balance as of end-of-period	$	62,568	$	64,829	$	67,369	$	67,710	$	69,183	10.6%	$	62,568	$	69,183	10.6%
Page 20

	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	General Account
	Balance as of beginning-of-period	$	36,295	$	36,454	$	36,576	$	36,791	$	36,855	1.5%	$	36,272	$	36,791	1.4%
	Deposits		1,115		1,070		1,152		1,040		1,073	-3.8%		2,158		2,112	-2.1%
	Withdrawals and deaths		(316)		(310)		(281)		(318)		(312)	1.3%		(720)		(629)	12.6%
	Net flows		799		760		871		722		761	-4.8%		1,438		1,483	3.1%
	Contract holder assessments		(995)		(999)		(1,030)		(1,019)		(1,018)	-2.3%		(1,964)		(2,037)	-3.7%
	Reinvested interest credited		355		361		374		361		357	0.6%		708		718	1.4%
	Balance as of end-of-period, gross		36,454		36,576		36,791		36,855		36,955	1.4%		36,454		36,955	1.4%
	Reinsurance ceded		(734)		(726)		(719)		(700)		(693)	5.6%		(734)		(693)	5.6%
	Balance as of end-of-period, net	$	35,720	$	35,850	$	36,072	$	36,155	$	36,262	1.5%	$	35,720	$	36,262	1.5%
	Separate Account
	Balance as of beginning-of-period	$	11,772	$	12,296	$	12,916	$	13,851	$	13,987	18.8%	$	11,058	$	13,851	25.3%
	Deposits		428		392		744		494		444	3.7%		801		939	17.2%
	Withdrawals and deaths		(126)		(88)		(172)		(140)		(121)	4.0%		(214)		(262)	-22.4%
	Net flows		302		304		572		354		323	7.0%		587		677	15.3%
	Contract holder assessments		(165)		(163)		(174)		(179)		(179)	-8.5%		(317)		(358)	-12.9%
	Change in market value and reinvestment		387		479		537		(39)		289	-25.3%		968		250	-74.2%
	Balance as of end-of-period, gross		12,296		12,916		13,851		13,987		14,420	17.3%		12,296		14,420	17.3%
	Reinsurance ceded		(836)		(851)		(875)		(861)		(868)	-3.8%		(836)		(868)	-3.8%
	Balance as of end-of-period, net	$	11,460	$	12,065	$	12,976	$	13,126	$	13,552	18.3%	$	11,460	$	13,552	18.3%
	Total
	Balance as of beginning-of-period	$	48,067	$	48,750	$	49,492	$	50,642	$	50,842	5.8%	$	47,330	$	50,642	7.0%
	Deposits		1,543		1,462		1,896		1,534		1,517	-1.7%		2,959		3,051	3.1%
	Withdrawals and deaths		(442)		(398)		(453)		(458)		(433)	2.0%		(934)		(891)	4.6%
	Net flows		1,101		1,064		1,443		1,076		1,084	-1.5%		2,025		2,160	6.7%
	Contract holder assessments		(1,160)		(1,162)		(1,204)		(1,198)		(1,197)	-3.2%		(2,281)		(2,395)	-5.0%
	Change in market value and reinvestment		742		840		911		322		646	-12.9%		1,676		968	-42.2%
	Balance as of end-of-period, gross		48,750		49,492		50,642		50,842		51,375	5.4%		48,750		51,375	5.4%
	Reinsurance ceded		(1,570)		(1,577)		(1,594)		(1,561)		(1,561)	0.6%		(1,570)		(1,561)	0.6%
	Balance as of end-of-period, net	$	47,180	$	47,915	$	49,048	$	49,281	$	49,814	5.6%	$	47,180	$	49,814	5.6%
Page 21

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
		As of 6/30/17				As of 12/31/17				As of 6/30/18
		Amount		%		Amount		%		Amount		%
	AFS, Equity and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	81,598		85.9%	$	83,190		85.9%	$	81,059		85.7%
	U.S. government bonds		578		0.6%		567		0.6%		422		0.4%
	Foreign government bonds		455		0.5%		451		0.5%		471		0.5%
	Mortgage-backed securities		4,028		4.2%		4,065		4.2%		4,121		4.4%
	Asset-backed collateralized debt obligations		703		0.7%		808		0.8%		1,119		1.2%
	State and municipal bonds		5,010		5.3%		5,119		5.3%		5,248		5.5%
	Hybrid and redeemable preferred securities		642		0.7%		640		0.7%		620		0.7%
	AFS Equity securities		275		0.3%		246		0.3%		-		0.0%
	Total AFS securities		93,289		98.2%		95,086		98.3%		93,060		98.4%
	Trading securities		1,678		1.8%		1,620		1.7%		1,450		1.5%
	Equity securities		-		0.0%		-		0.0%		112		0.1%
	Total AFS, Equity and trading securities	$	94,967		100.0%	$	96,706		100.0%	$	94,622		100.0%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	87,665		99.7%	$	88,418		99.7%	$	91,387		99.9%
	Equity securities		262		0.3%		247		0.3%		110		0.1%
	Total AFS and trading securities	$	87,927		100.0%	$	88,665		100.0%	$	91,497		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				95.5%				95.6%				95.9%
	Below investment grade				4.5%				4.4%				4.1%
Page 22

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Realized Gain (Loss), Pre-Tax
	Total adjusted operating realized gain (loss)	$	42	$	41	$	41	$	47	$	46	9.5%	$	83	$	94	13.3%
	Total excluded realized gain (loss)		(52)		(97)		(106)		(35)		(53)	-1.9%		(132)		(89)	32.6%
	Total realized gain (loss), pre-tax	$	(10)	$	(56)	$	(65)	$	12	$	(7)	30.0%	$	(49)	$	5	110.2%
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(34)	$	(63)	$	(69)	$	(28)	$	(41)	-20.6%	$	(85)	$	(69)	18.8%
	Benefit ratio unlocking		26		30		28		(10)		7	-73.1%		71		(3)	NM
	Net gain (loss), after-tax	$	(8)	$	(33)	$	(41)	$	(38)	$	(34)	NM	$	(14)	$	(72)	NM
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(13)	$	(13)	$	(23)	$	(15)	$	9	169.2%	$	(15)	$	(6)	60.0%
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		17		(5)		(7)		(25)		(42)	NM		27		(67)	NM
	GLB non-performance risk component		(8)		(16)		(9)		5		2	125.0%		(18)		7	138.9%
	Total variable annuity net derivative results		9		(21)		(16)		(20)		(40)	NM		9		(60)	NM
	Indexed annuity forward-starting option		(4)		1		(2)		(3)		(3)	25.0%		(8)		(6)	25.0%
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(8)	$	(33)	$	(41)	$	(38)	$	(34)	NM	$	(14)	$	(72)	NM
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(3)	$	(5)	$	(1)	$	(2)	$	(1)	69.6%	$	(5)	$	(2)	60.0%
	Other realized gain (loss) related to certain investments		(9)		(8)		(14)		(15)		(11)	-19.3%		(15)		(26)	-73.3%
	Gain (loss) on the mark-to-market on equity investments		-		-		-		-		2	NM		-		1	NM
	Gain (loss) on the mark-to-market on certain instruments		(1)		-		(8)		2		19	NM		5		21	NM
	Total realized gain (loss) related
	to investments, after-tax	$	(13)	$	(13)	$	(23)	$	(15)	$	9	169.2%	$	(15)	$	(6)	60.0%
Page 23

	Lincoln Financial Group
	Select GAAP to Non-GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/17		9/30/17		12/31/17		3/31/18		6/30/18		Change	6/30/17		6/30/18		Change
	Revenues
	Total revenues	$	3,577	$	3,511	$	3,669	$	3,609	$	4,020	12.4%	$	7,077	$	7,629	7.8%
	Less:
	Excluded realized gain (loss)		(52)		(97)		(106)		(35)		(53)	-1.9%		(132)		(89)	32.6%
	Amortization of DFEL on benefit ratio unlocking		-		1		-		(1)		-	NM		2		(1)	NM
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		-		-		-		-		-	NM		1		-	-100.0%
	Adjusted operating revenues	$	3,629	$	3,607	$	3,775	$	3,645	$	4,073	12.2%	$	7,206	$	7,719	7.1%
	Net Income
	Net income (loss)	$	411	$	418	$	816	$	367	$	385	-6.3%	$	846	$	752	-11.1%
	Less:
	Excluded realized gain (loss)		(34)		(63)		(69)		(28)		(41)	-20.6%		(85)		(69)	18.8%
	Benefit ratio unlocking		26		30		28		(10)		7	-73.1%		71		(3)	NM
	Net impact from the Tax Cuts and Jobs Act		-		-		1,322		(13)		-	NM		-		(13)	NM
	Impairment of intangibles		-		-		(905)		-		-	NM		-		-	NM
	Acquisition and integration costs related to
	mergers and acquisitions, after-tax		-		-		-		(4)		(35)	NM		-		(39)	NM
	Gain (loss) on early extinguishment of debt		-		(3)		-		(19)		-	NM		-		(19)	NM
	Adjusted income (loss) from operations	$	419	$	454	$	440	$	441	$	454	8.4%	$	860	$	895	4.1%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.81	$	1.87	$	3.67	$	1.64	$	1.70	-6.1%	$	3.70	$	3.34	-9.7%
	Less:
	Excluded realized gain (loss)		(0.16)		(0.28)		(0.31)		(0.13)		(0.19)	-18.8%		(0.38)		(0.32)	15.8%
	Benefit ratio unlocking		0.12		0.13		0.13		(0.04)		0.03	-75.0%		0.31		(0.01)	NM
	Net impact from the Tax Cuts and Jobs Act		-		-		5.96		(0.06)		-	NM		-		(0.06)	NM
	Impairment of intangibles		-		-		(4.08)		-		-	NM		-		-	NM
	Acquisition and integration costs related to mergers
	and acquisitions, after-tax		-		-		-		(0.02)		(0.16)	NM		-		(0.18)	NM
	Gain (loss) on early extinguishment of debt		-		(0.01)		-		(0.08)		-	NM		-		(0.08)	NM
	Adjustment attributable to using different average
	diluted shares for adjusted income from operations
	as compared to net income		-		-		(0.01)		-		-	NM		-		-	NM
	Adjusted income (loss) from operations	$	1.85	$	2.03	$	1.98	$	1.97	$	2.02	9.2%	$	3.77	$	3.99	5.8%
Page 24

EX-99.3

©2018 Lincoln National CorporationChris Giovanni484-583-1793Christopher.Giovanni@LFG.comSECOND QUARTER 2018 EARNINGS This document is dated August 1, 2018,it may not be accurate after such date and LNC does notundertake to update or keep it accurate after such date.

$8.2B$8.7B$11.9B$2.0B$6.0B$10.0B$14.0B201620172Q18 annualized$(1.6)B $(2.7)B $(0.5)B ..SalesNet flows51%26%23%VA w/ GLBVA w/o GLBFA50%20%30%ANNUITIES SALES MOMENTUM ACCELERATING4Q16 sales of $1.8B2Q18 sales of $3.0B28%of 2Q sales from new products and distributionForecasted industry growth5-10%1Source: LIMRA 2018-2020 Individual Annuity Sales Forecast, 2018.

69%31%Capital markets²Insurance risks³~65%~35%LIBERTY INTEGRATION PROGRESSING AHEAD OF EXPECTATIONSFuture201711  Exclude the impact of notable items. 2  Capital markets include fees on AUM and investment spread. 3  Insurance risks predominately include mortality / morbidity. •Earnings of $45M in 2Q18, up 29% –After-tax margin of 5.3%–Favorablerisk results on both the Lincoln and Liberty blocks of business–Good persistency and solid premium growth –Includes 2 months of Liberty •Liberty performing ahead of expectations–Remain confident in executing repricing program  –Potential for upside to $100M expense savings target

32%38%30%38%31%31%Fees on AUMInvestment spreadInsurance risks²ALL-WEATHER BUSINESS MIX RESULTS IN BALANCED EARNINGS201712013170%69%1  Excludes the impact of notable items. 2  Insurance risks predominately include mortality / morbidity.

ALL-WEATHER BUSINESS MIX ENABLES CONSISTENT GROWTH Past5 years 3 years out1 Drivers Capital markets performance EPS growth Capital markets performance EPS growth Equity markets: Average S&P500 +13% 5% +3% ~1% Interestrates: Average 10-year 2.2% (3)% 3.0% ~1% Net benefitfrom capital markets 2% 2% = earnings growth•Total targeted adjusted annual EPS growth of 8-10% is based on the total contribution from net flows / premiums, margin / expense improvement, capital markets, and buybacks as previously disclosed 1  Scenario analysis reflects current interest rate environment and equity market returns well below the 25-year historic growthrate of 9.6%. This scenario does not reflect LNC’s long-term assumptions.  

MONEYGUARD®WELL POSITIONED AND DRIVING SOLID RESULTS•We know we will pay a benefit •Multi-benefit design reduces policyholder behavior risk•Capped benefits •80% of in-force sold since 2006•Priced to reflect reliable industry experience •Majority of claims related to deaths or acceleration of death benefitScenarios Stat reserves Required  reserves  Reserve sufficiency Current baseline2 $10.1B $8.2B $1.9B Morbidity: +25% +0.5 1.4 Mortality: -25%  +0.4 1.5 Lapse rate: 0%  +0.3 1.6 All 3 stress scenarios combined +1.7 0.2 •Stress scenarios impact earnings, not reserves •Milliman compared key current MoneyGuard® pricing assumptions to traditional LTC products1–MoneyGuard® assumptions are generally in line with or more conservative than current rational pricing assumptions being used for traditional LTC products –MoneyGuard® is better equipped to handle adverse experience than traditional LTC productsStressscenarios1  Lincoln engaged an independent third party, Milliman, a leading actuarial consulting firm in the LTC industry, to perform a high-level comparison of key pricing assumptions and product risks when considering differences in product design for Lincoln’s MoneyGuard® product to those typical for traditional LTC products in the industry. This work was prepared solely to provide assistance to Lincoln. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. Any such recipient should be aided by its own actuary or other qualified professional when reviewing the Milliman work product.As of 12/31/2017.

STRONG CAPITAL POSITION WILL ENABLE ACTIVE DEPLOYMENT0%100%200%300%400%500%2Q18•40 % point impact from tax reform –20 % points less than original guidance•Implementation of C1 factor changes remains fluid–2019 at the earliest•Resumed buybacks in 2Q18–Repurchased $100M in 2Q18–Expect pace of buybacks to increase in 2H18–Dividend reviewed annually in 3Q18•Strong FCF supports capital management–$850-950M annually–Expect more than $2B towards buybacks, dividends and M&A in 2018•Well positioned balance sheet –$9.1B statutory capital–RBC ratio ended 2Q18 at ~460%–BIG exposure of 4.1%, lowest in over a decadeBuybacksresumed in$1002Qmillion|Lowest BIG exposure in over a decade14.1%~460%1  Below investment grade is abbreviated as BIG.2  Free cash flow is abbreviated as FCF. 

APPENDIX

Certain statements made in this presentation 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 statementthat is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "project," "will," "shall" 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 involve risks and uncertainties that may cause actual results to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:•Deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefitliabilities, premium levels, claims experience and the level of pension benefit costs, funding and investment results; •Adverse global capital and credit market conditions could affect our ability to raise capital, if necessary, and may cause ustorealize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which mayreduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;•Because of our holding company structure, the inability of our subsidiaries to pay dividends to the holding company in sufficient amounts 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 thepayment of revenue sharing and 12b-1 distribution fees; the impact of recently enacted U.S. Federal tax reform legislation on our business, earnings and capital; and the effect of the Fifth Circuit Court of Appeal’s decision vacating the Department of Labor’s (“DOL”) fiduciary regulation as well as any “bestinterest” standards of care adopted by the Securities and Exchange Commission (“SEC”) or other state regulators•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,estimated gross profits and demand for our products;•Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities; •Uncertainty about the effect of continuing promulgation and implementation of rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us, the economy and the financial services sector in particular; •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 in the equity markets causing a reduction in the sales of our subsidiaries' products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs ("DAC"); value of business acquired ("VOBA") deferred sales inducements ("DSI") and deferred front-end loads ("DFEL"); and an increase in liabilities related to guaranteed benefit features of our subsidiaries' variable annuity products;FORWARD LOOKING STATEMENTS –CAUTIONARY LANGUAGE

•Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates; •A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries' products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings; •Changes in accounting principles generally accepted in the United States ("GAAP"), that may result in unanticipated changes to our net income;•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 investments in our portfolios, as well as counterparties to which we are exposed to credit risk requiring that we realize losses on investments; •Inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others;•Interruption in telecommunication, information technology or other operational systems, or failure to safeguard the confidentiality or privacy of sensitive data on such systems from cyberattacks or other breaches of our data security systems;•The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including the successful implementation of integration strategies or the achievement of anticipated synergies and operational efficiencies related to an acquisition;•The adequacy and collectability of reinsurance that we have purchased;•Acts of terrorism, a pandemic, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance; •Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affectthe 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 included here are not exhaustive. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in arapidly 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 usein connection with any marketing, advertising or promotional activities.A reconciliation of any measures not shown in accordance with GAAP can be found in our press release dated August 1, 2018.FORWARD LOOKING STATEMENTS –CAUTIONARY LANGUAGE (CONTINUED)