Lincoln Financial Group
Table of Contents
Second Quarter 2010
Lincoln Financial Group Analyst Coverage	i
Notes	ii-iii
Financial Highlights	1 - 3
Consolidated Operating Expense Detail	4
Selected Financial Results Summary	5
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking	6
Consolidated Statements of Income	7
Consolidated Roll Forwards of DAC, VOBA, DFEL and DSI	8
Consolidating Statements of Income from Operations - Current Year - Quarter	9
Consolidating Statements of Income from Operations - Prior Year - Quarter	10
Consolidating Statements of Income from Operations - Current Year - Year-to-Date	11
Consolidating Statements of Income from Operations - Prior Year - Year-to-Date	12
Consolidated Balance Sheets and Selected Share Data	13
Balance Sheet Data - Segment Highlights	14
Retirement Solutions
Annuities:
Income Statements and Operational Data	15
DAC, VOBA, DFEL and DSI Roll Forwards	16
Account Value Roll Forwards and Information	17
Account Value Information	18
Interest Rate Spread Information, GLB Expense Assessments, GLB Attributed Fee
and GLB Account Values by Type	19
Defined Contribution:
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards	20
Account Value Roll Forwards and Information	21
Account Value Roll Forwards by Product	22
Account Value and Interest Rate Spread Information	23
Insurance Solutions
Life Insurance:
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards	24
Operational Data and Account Value Roll Forwards	25
Group Protection:
Income Statements and Operational Data	26
Other Operations	27
Discontinued Operations	27
Consolidated Deposits, Account Balances and Net Flows	28
Consolidated Investment Data	29

6/30/2010		i
Lincoln Financial Group Analyst Coverage
Second Quarter 2010
Firm	Analyst		Phone Number
Bank of America - Merrill Lynch	Ed Spehar		212-449-4245
Barclays Capital	Eric Berg		212-526-2805
Citigroup	Colin Devine		212-816-1682
Credit Suisse	Tom Gallagher		212-538-2010
Deutsche Bank	Darin Arita		212-250-7321
Dowling and Partners	Sean Rourke		860-676-8600
FBR Capital Markets	Randy Binner		703-312-1890
Goldman Sachs and Company	Christopher Neczypor		212-357-8512
JP Morgan Securities	Jimmy Bhullar		212-622-6397
Keefe, Bruyette and Woods	Jeff Schuman		860-722-5902
Langen McAlenney	Bob Glasspiegel		860-724-1203
Macquarie Securities	Mark Finkelstein		312-425-4079
Morgan Stanley	Nigel Dally		212-761-4132
Raymond James and Associates	Steven Schwartz		312-612-7686
Sandler O'Neil and Partners	Edward Shields		312-281-3487
Sanford C. Bernstein & Co.	Suneet Kamath		212-756-4587
Sterne, Agee and Leach, Inc.	John Nadel		212-338-4717
UBS	Andrew Kligerman		212-713-2492
Wells Fargo Securities	John Hall		212-214-8032
Investor Inquiries May Be Directed To
Jim Sjoreen, Vice President, Investor Relations
Email: Jim.Sjoreen@lfg.com
Voice: (484) 583-1420
Fax: (484) 583-3962
Notes
This list is provided for informational purposes only.  Lincoln Financial Group does not endorse the analyses, conclusions, or recommendations contained in any report issued by these or any other analysts.
Lincoln Financial Group's Statistical Report will be available immediately after the release of earnings for each quarter through our Investor Relations website:  www.LincolnFinancial.com/investor

6/30/2010				ii
NOTES
Definitions and Presentation
"Income (loss) from operations," "operating revenues" and "return on capital" are non-GAAP financial measures and do not replace GAAP
revenues, net income (loss) and return on stockholders' equity.  Detailed reconciliations of these non-GAAP financial measures to the most directly
comparable GAAP financial measure are included in this statistical supplement.
•	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:
	•	Realized gains and losses associated with the following ("excluded realized gain (loss)"):
		•	Sale or disposal of securities;
		•	Impairments of securities;
		•	Change in the fair value of derivative investments, embedded derivatives within certain reinsurance arrangements and our trading securities;
		•	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";
		•	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 FASB 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”; and
		•	Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract
			holder index allocations applicable to future reset periods for our indexed annuity products accounted for under the Derivatives and Hedging
			and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”).
	•	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 the initial adoption of new accounting standards;
	•	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; and
	•	Income (loss) from discontinued operations.
Income (loss) from operations available to common stockholders is net income (loss) available to common stockholders (used in the calculation of
earnings (loss) per share) in accordance with GAAP, excluding the after-tax effects of the items above and any acceleration of our Series B preferred
stock discount as a result of repayment prior to five years from the date of issuance.
	•	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 changes on business sold through reinsurance; and
		•	Revenue adjustments from the initial adoption of new accounting standards.
	•	Return on capital measures the effectiveness of our use of total capital, which includes equity (excluding accumulated other
		comprehensive income), debt, capital securities and junior subordinated debentures issued to affiliated trusts.  Return on capital is
		calculated by dividing annualized income (loss) from operations (after adding back interest expense) by average capital.  The difference
		between return on capital and return on stockholders' equity represents the effect of leveraging on our consolidated results.
Income (loss) from operations, operating revenues and return on capital are financial measures we use to evaluate and assess our results.  Our
management and Board of Directors believe that these performance measures explain the results of our ongoing businesses in a manner that
allows for a better understanding of the underlying trends in our 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.
	•	Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of our
		current business.  These measures include deposits, sales, net flows, first-year premiums, in force and spreads.
	•	Sales as reported consist of the following:
		•	Universal life ("UL") (excluding linked-benefit products) and variable universal life ("VUL"), including corporate-owned life
			insurance ("COLI") and bank-owned life insurance ("BOLI") - first year commissionable premiums plus 5% of excess premiums
			received, including an adjustment for internal replacements at approximately 50% of target;
		•	Whole life and term - 100% of first year paid premiums;
		•	Linked-benefit - 15% of premium deposits;
		•	Annuities - deposits from new and existing customers;
		•	Group Protection - annualized first year premiums from new policies; and
Our roll forwards of deferred acquisition costs ("DAC") and value of business acquired ("VOBA"), deferred sales inducements ("DSI") and DFEL
disclose the net impact of prospective and retrospective unlocking on amortization for these items.  This information helps explain a
source of volatility in amortization.

		iii
	•	Prospective unlocking - In the third quarter of each year, we review and update our assumptions used in projecting our future estimated
		gross profits ("EGPs") used to amortize DAC, VOBA, DFEL, DSI and the calculations of embedded derivatives and reserves for
		annuity and life insurance products with certain guarantees.  We may also have prospective unlocking if we experience long-term
		or significant deviations from expected equity market returns requiring a change to best estimate projections of EGPs and reversion
		to the mean ("RTM") prospective unlocking of DAC, VOBA, DFEL, DSI and other contract holder funds.  These updates to assumptions
		result in unlocking that represent an increase or decrease to our carrying value of DAC, VOBA, DFEL and DSI based upon our updated view of
		future EGPs.  The various assumptions that are reviewed include investment margins, mortality, retention and rider utilization.  In addition, in
		the third quarter of each year during our annual prospective unlocking review, we may identify and implement actuarial modeling refinements
		which can result in prospective and retrospective unlocking impacts that impact DAC, VOBA, DSI, DFEL and embedded derivatives and
		reserves for annuity and life products with living and death benefit guarantee reserves.
	•	Retrospective unlocking - On a quarterly basis, we “true-up” our models for actual gross profits and in-force experience for the period.
		To the extent that actual experience differs from previously expected, a positive or negative retrospective adjustment to the
		amortization of DAC, VOBA, DSI and DFEL is recorded.  This update to the models may generate a change in the amortization rate
		which results in a catch-up to the cumulative amortization, by recalculating the DAC, VOBA, DSI and DFEL balances assuming that
		the revised amortization rate had been used since issue.
Book value per share excluding accumulated other comprehensive income ("AOCI") is calculated based upon a non-GAAP financial measure. It is
calculated by dividing (a) stockholders' equity excluding AOCI and Series B preferred stock balances as it is non-convertible (issued and sold to the
U.S. Treasury in connection with the Troubled Asset Relief Program Capital Purchase Program as part of the Emergency Economic Stabilization Act
of 2008), by (b) common shares outstanding, assuming conversion of Series A preferred shares.  We provide book value per share excluding AOCI
to enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. We believe 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 operating margin is calculated as income (loss) from operations before federal income taxes divided by operating revenues.  After-tax operating
margin is calculated as income (loss) from operations divided by operating revenues.
We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently
in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
Effective April 30, 2010, we amended our non-director deferred compensation plans to allow participants the option to diversify from LNC stock to
other investment alternatives and to be settled in shares or cash at the participant’s discretion.  As a result of the amendment, we reclassified the cost
basis of deferred units of LNC stock from common stock to other liabilities on our Consolidated Balance Sheet.  Consequently changes in the value of
our stock are recorded in underwriting, acquisition, insurance and other expenses on our Consolidated Statement of Income (Loss). When calculating
our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude the shares from our calculation, unless the
effect of assuming it will be settled in shares ("equity classification") would be more dilutive to our diluted EPS.  The numerator used in the calculation
of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in our non-director
deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
Throughout the document, "after-DAC" refers to the associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract
holder funds and funds withheld reinsurance liabilities.
Reclassifications
In addition to the items discussed above, certain amounts reported in prior periods have been reclassed to the presentation adopted in the current period.
These reclassifications had no effect on net income, income from operations or stockholders' equity in the prior period.

6/30/2010																						PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)
	For the Three Months Ended June 30,												For the Six Months Ended June 30,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Income (Loss) from Operations - By Segment
Annuities	$	116.4		$	65.4		$	51.0			78.0	%	$	235.1		$	139.3		$	95.8			68.8	%
Defined Contribution		36.0			27.7			8.3			30.0	%		71.9			57.5			14.4			25.0	%
Total Retirement Solutions		152.4			93.1			59.3			63.7	%		307.0			196.8			110.2			56.0	%
Life Insurance		151.2			132.9			18.3			13.8	%		287.9			275.1			12.8			4.7	%
Group Protection		22.7			33.6			(10.9	)		-32.4	%		44.1			59.3			(15.2	)		-25.6	%
Total Insurance Solutions		173.9			166.5			7.4			4.4	%		332.0			334.4			(2.4	)		-0.7	%
Other Operations		(36.1	)		(52.3	)		16.2			31.0	%		(72.7	)		(160.8	)		88.1			54.8	%
Income from Operations (1)		290.2			207.3			82.9			40.0	%		566.3			370.4			195.9			52.9	%
Excluded realized gain (loss), after-tax  (2) (3)		(7.3	)		(296.8	)		289.5			97.5	%		(33.8	)		(433.2	)		399.4			92.2	%
Benefit ratio unlocking, after-tax (2) (3)		(30.9	)		80.9			(111.8	)	NM				(25.4	)		28.9			(54.3	)	NM
Income from reserve changes (net of related amortization)
on business sold through reinsurance, after-tax (3)		0.5			0.4			0.1			25	%		0.9			0.8			0.1			12.5	%
Gain on early extinguishment of debt, after-tax (3)		-			-			-		NM				-			41.8			(41.8	)		-100.0	%
Impairment of intangibles, after-tax (3)		-			0.6			(0.6	)		-100.0	%		-			(602.9	)		602.9			100.0	%
Income from discontinued operations, after-tax (4)		2.7			(153.8	)		156.5			101.8	%		30.6			(146.1	)		176.7			120.9	%
Net Income (Loss)		255.2			(161.4	)		416.6			258.1	%		538.6			(740.3	)		1,278.9			172.8	%
Preferred stock dividends and accretion of discount		(18.3	)		-			(18.3	)	NM				(36.7	)		-			(36.7	)	NM
Write-off of unamortized discount on preferred stock
at liquidation		(130.6	)		-			(130.6	)	NM				(130.6	)		-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our
non-director deferred compensation plans (5)		(1.9	)		-			(1.9	)	NM				(1.9	)		-			(1.9	)	NM
Minority interest adjustment (6)		-			-			-		NM				-			(0.1	)		0.1			100.0	%
Net Income (Loss) Available to Common
Stockholders - Diluted	$	104.4		$	(161.4	)	$	265.8			164.7	%	$	369.4		$	(740.4	)	$	1,109.8			149.9	%

Earnings Per Common Share - Diluted
Income from operations (1) (7)	$	0.86		$	0.79		$	0.07			8.9	%	$	1.68		$	1.42		$	0.26			18.3	%
Excluded realized gain (loss), after-tax  (2) (3) (7)		(0.02	)		(1.13	)		1.11			98.2	%		(0.10	)		(1.68	)		1.58			94.0	%
Benefit ratio unlocking, after-tax (2) (3) (7)		(0.10	)		0.31			(0.41	)	NM				(0.08	)		0.11			(0.19	)	NM
Gain on early extinguishment of debt, after-tax (3) (7)		-			-			-		NM				-			0.16			(0.16	)		-100.0	%
Impairment of intangibles, after-tax (3) (7)		-			0.00			(0.00	)	NM				-			(2.34	)		2.34			100.0	%
Write-off of unamortized discount on preferred stock
at liquidation (7)		(0.41	)		-			(0.41	)	NM				(0.42	)		-			(0.42	)	NM
Income (loss) from discontinued operations,
after-tax  (4) (7)		0.01			(0.59	)		0.60			101.7	%		0.10			(0.57	)		0.66			117.3	%
Adjustment attributable to using different average diluted
shares for income from operations as compared to net
income (7)		-			-			-		NM				-			0.02			(0.02	)		-10	%
Net Income (Loss)	$	0.33		$	(0.62	)	$	0.95			153.2	%	$	1.18		$	(2.87	)	$	4.05			141.1	%

Operating Revenues - By Segment
Annuities	$	644.6		$	552.5		$	92.1			16.7	%	$	1,274.5		$	1,074.2		$	200.3	18.6	%
Defined Contribution		245.3			223.5			21.8			9.8	%		485.8			442.0			43.8	9.9	%
Total Retirement Solutions		889.9			776.0			113.9			14.7	%		1,760.3			1,516.2			244.1	16.1	%
Life Insurance		1,135.5			1,002.2			133.3			13.3	%		2,263.3			2,078.4			184.9	8.9	%
Group Protection		470.1			442.9			27.2			6.1	%		915.3			864.3			51.0	5.9	%
Total Insurance Solutions		1,605.6			1,445.1			160.5			11.1	%		3,178.6			2,942.7			235.9	8.0	%
Other Operations		121.0			115.4			5.6			4.9	%		244.9			220.8			24.1	10.9	%
Total Operating Revenues		2,616.5			2,336.5			280.0			12.0	%		5,183.8			4,679.7			504.1	10.8	%
Excluded realized gain (loss), pre-tax (2)		(11.1	)		(454.6	)		443.5			97.6	%		(52.0	)		(662.2	)		610.2	92.1	%
Amortization income of DFEL associated with benefit
ratio unlocking, pre-tax		(1.6	)		(0.2	)		(1.4	)	NM				(1.3	)		(4.3	)		3.0	69.8	%
Amortization of deferred gains arising from reserve
changes on business sold through reinsurance,
pre-tax		0.7			0.7			-			-			1.4			1.3			0.1	7.7	%
Total Revenues	$	2,604.5		$	1,882.4		$	722.1			38.4	%	$	5,131.9		$	4,014.5		$	1,117.4	27.8	%

(1)	Income from operations includes restructuring charges.  See page 5 for detail.
(2)	See page 6 for detail.
(3)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
	financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(4)	Includes discontinued operations and the loss on disposal.  See Discontinued Operations on page 27 for details.
(5)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of
	LNC stock in our non-director deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(6)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(7)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would
	have been anti-dilutive.  This same concept applies to our income from operations as well.

6/30/2010																						PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)
	For the Three Months Ended June 30,												For the Six Months Ended June 30,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Retirement Solutions - Annuities
Gross deposits	$	2.823		$	2.625		$	0.198			7.5	%	$	5.099		$	4.813		$	0.286			5.9	%
Net flows		1.153			1.035			0.118			11.4	%		1.728			1.465			0.263			18.0	%
Account values (gross)		74.318			64.119			10.199			15.9	%		74.318			64.119			10.199			15.9	%
Account values (net of reinsurance)		73.324			63.054			10.270			16.3	%		73.324			63.054			10.270			16.3	%
Retirement Solutions - Defined Contribution
Gross deposits (1)		1.374			1.130			0.244			21.6	%		2.681			2.691			(0.010	)		-0.4	%
Net flows		0.182			0.256			(0.074	)		-28.9	%		0.291			0.912			(0.621	)		-68.1	%
Account values - annuities		24.547			23.172			1.375			5.9	%		24.547			23.172			1.375			5.9	%
Alliance and Smart Future mutual funds		10.493			8.155			2.338			28.7	%		10.493			8.155			2.338			28.7	%
Total annuities and mutual fund account values		35.040			31.327			3.713			11.9	%		35.040			31.327			3.713			11.9	%
Insurance Solutions - Life Insurance
Sales (in millions)	$	139.8		$	123.7		$	16.1			13.0	%	$	282.4		$	268.9		$	13.5			5.0	%
Life insurance in force		552.463			527.533			24.930			4.7	%		552.463			527.533			24.930			4.7	%
Account values (net of reinsurance)		31.965			30.622			1.343			4.4	%		31.965			30.622			1.343			4.4	%
Insurance Solutions - Group Protection
Annualized sales (in millions)		65.2			59.5			5.7			9.6	%		128.3			113.8			14.5			12.7	%
Loss ratio (2)		75.5	%		68.2	%	NM			NM				75.1	%		69.5	%	NM			NM
Consolidated
Total deposits	$	5.260		$	4.775		$	0.485			10.2	%	$	9.920		$	9.582		$	0.338			3.5	%
Total account balances		140.329			125.003			15.326			12.3	%		140.329			125.003			15.326			12.3	%
Total net flows		1.985			1.831			0.154			8.4	%		3.271			3.474			(0.203	)		-5.8	%

(1)	Includes deposits for mutual funds. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets,
	as we do not have any ownership interest in them.
(2)	Represents combined loss ratio for life, disability and dental businesses.

6/30/2010																						PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)
	For the Three Months Ended June 30,												For the Six Months Ended June 30,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Balance Sheet Assets - End-of-Period	$	180,129.3		$	167,044.4		$	13,084.9			7.8	%	$	180,129.3		$	167,044.4		$	13,084.9			7.8	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	12,368.5		$	7,323.5		$	5,045.0			68.9	%	$	11,700.2		$	7,976.7		$	3,723.5			46.7	%
End-of-period (including AOCI)		12,637.3			9,074.9			3,562.4			39.3	%		12,637.3			9,074.9			3,562.4			39.3	%
End-of-period (excluding AOCI)		11,699.4			10,782.3			917.1			8.5	%		11,699.4			10,782.3			917.1			8.5	%
Average equity (excluding AOCI)		11,882.9			10,540.5			1,342.4			12.7	%		11,948.4			10,540.0			1,408.4			13.4	%
Return on Equity
Net income (loss)/average equity (excluding AOCI)		8.6	%		-6.1	%								9.0	%		-14.0	%
Income from operations/average equity
(excluding AOCI)		9.8	%		7.9	%								9.5	%		7.0	%
Return on Capital
Income from operations/average capital		7.7	%		6.2	%								7.5	%		5.6	%
Common Shares Outstanding
Average for the period - basic		304.5			260.1			44.4			17.1	%		303.4			257.8			45.6			17.7	%
Average for the period - diluted		314.6			262.4			52.2			19.9	%		313.4			260.1			53.3			20.5	%
End-of-period - assuming conversion of preferreds (1)		316.8			302.3			14.5			4.8	%		316.8			302.3			14.5			4.8	%
End-of-period - diluted		325.9			304.2			21.7			7.1	%		325.9			304.2			21.7			7.1	%
Book value per common share (including AOCI)	$	39.89		$	30.02		$	9.87			32.9	%	$	39.89		$	30.02		$	9.87			32.9	%
Book value per common share (excluding AOCI)		36.93			35.67			1.26			3.5	%		36.93			35.67			1.26			3.5	%
Cash Returned to Common Stockholders
Common dividends declared	$	3.2		$	3.0			0.2			6.7	%	$	6.2		$	5.6			0.6			10.7	%
Stock issuance - number of shares		14.14			46.00			(31.86	)		-69.3	%		14.14			46.00			(31.86	)		-69.3	%
Dividend declared on common stock - per share	$	0.010		$	0.010		$	-			0.0	%	$	0.020		$	0.020		$	-			0.0	%
Dividend payout ratio		3.0	%		-1.6	%								1.7	%		-0.7	%
Annualized yield (2)		0.2	%		0.2	%								0.2	%		0.2	%
Comprehensive Income (Loss)
Net income (loss)	$	255.2		$	(161.4	)	$	416.6			258.1	%	$	538.6		$	(740.3	)	$	1,278.9			172.8	%
Net unrealized gain (loss) on available-for-sale securities		666.6			1,250.8			(584.2	)		-46.7	%		1,217.8			1,205.7			12.1			1.0	%
Unrealized other-than-temporary impairment on
available-for-sale securities		3.5			(42.5	)		46.0			108.2	%		4.7			(117.7	)		122.4			104.0	%
Net unrealized gain (loss) on derivative instruments		(34.9	)		(4.1	)		(30.8	)	NM				(25.3	)		(73.4	)		48.1			65.5	%
Foreign currency translation adjustment		(0.2	)		68.3			(68.5	)	NM				(1.4	)		85.3			(86.7	)	NM
Funded status of employee benefit plans		0.7			(4.7	)		5.4			114.9	%		3.5			(3.7	)		7.2			194.6	%
Comprehensive Income	$	890.9		$	1,106.4		$	(215.5	)		-19.5	%	$	1,737.9		$	355.9		$	1,382.0		NM
Leverage Ratio (3)		25.3	%		23.4	%								25.3	%		23.4	%
	Ratings as of July 28, 2010
										Standard &
	A.M. Best			Fitch			Moody's			Poor's
Senior Debt Ratings		a-		BBB			Baa2				A-
Financial Strength Ratings
Lincoln National Life Insurance Company		A+			A+			A2			AA-
First Penn-Pacific Life Insurance Company		A+			A+			A2			A+
Lincoln Life & Annuity Company of New York		A+			A+			A2			AA-

(1)	The holders of our Series B preferred stock have no right to exchange or convert such shares into any other securities, therefore these shares have not been converted
	in this calculation.
(2)	Indicated dividend divided by the closing price.
(3)	The numerator in this calculation is arrived at by adding our total debt, $5,964, excluding 75% of our capital securities, $1,114, and all of our $373 million senior note,
	which is net of the unamortized discount, issued in October 2007 because the proceeds were reinvested in a pool of long-term assets. The denominator in this
	calculation is arrived at by adding the numerator, $4,477, plus our stockholders' equity, excluding AOCI, $11,699, plus 75% of our capital securities, plus all of our
	$373 million senior note.

6/30/2010																									PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Commissions	$	358.2		$	403.9		$	421.2		$	379.7		$	390.0			8.9	%	$	718.2		$	769.7			7.2	%
General and Administrative Expenses
General and administrative expenses		311.4			317.3			351.7			310.8			338.2			8.6	%		617.7			649.0			5.1	%
Merger-related expenses		4.4			2.5			2.8			2.3			2.2			-50.0	%		11.1			4.5			-59.5	%
Total General and Administrative
Expenses, Excluding
Broker-Dealer		315.8			319.8			354.5			313.1			340.4			7.8	%		628.8			653.5			3.9	%
Communications expenses		13.5			13.2			12.9			13.8			14.5			7.4	%		26.4			28.3			7.2	%
Restructuring charges associated with merger-
related cost saving initiatives		-			0.1			-			-			-		NM				-			-		NM
Restructuring charges for expense
initiatives		28.6			0.5			0.3			-			-			-100.0	%		33.7			-			-100.0	%
Taxes, licenses and fees		43.0			48.2			24.3			57.5			41.7			-3.0	%		97.6			99.2			1.6	%
Interest and debt expense		60.9			68.0			68.1			68.1			69.0			13.3	%		125.6			137.1			9.2	%
Total Commissions and
Expenses Incurred		820.0			853.7			881.3			832.2			855.6			4.3	%		1,630.3			1,687.8			3.5	%
Less: Commissions and
Expenses Capitalized		(385.4	)		(422.5	)		(460.0	)		(385.1	)		(401.2	)		-4.1	%		(768.9	)		(786.3	)		-2.3	%
Total Expenses Incurred, Excluding
Amortization and Broker-
Dealer Expenses		434.6			431.2			421.3			447.1			454.4			4.6	%		861.4			901.5			4.7	%
Amortization
Amortization of DAC and VOBA,
net of interest		231.7			311.4			260.9			258.1			296.9			28.1	%		469.3			555.0			18.3	%
Amortization of intangibles		1.0			1.1			1.0			1.0			1.1			10.0	%		2.1			2.1			0.0	%
Total Amortization		232.7			312.5			261.9			259.1			298.0			28.1	%		471.4			557.1			18.2	%
Broker-Dealer Commissions
and Other Expenses		69.2			73.6			81.1			73.6			77.3			11.7	%		133.2			150.9			13.3	%
Total	$	736.5		$	817.3		$	764.3		$	779.8		$	829.7			12.7	%	$	1,466.0		$	1,609.5			9.8	%
Merger-Related Expenses (1)
Severance and employee-related
charges	$	0.6		$	0.3		$	0.5		$	0.2		$	0.3			-50.0	%	$	1.3		$	0.5			-61.5	%
Systems integration and related
expenses		2.6			1.5			1.4			2.0			1.7			-34.6	%		7.7			3.7			-51.9	%
Other expenses		1.2			0.8			0.9			0.1			0.2			-83.3	%		2.1			0.3			-85.7	%
Total Merger-Related Expenses	$	4.4		$	2.6		$	2.8		$	2.3		$	2.2			-50.0	%	$	11.1		$	4.5			-59.5	%

(1) Represents merger-related expenses included in general and administrative expenses and restructuring charges.

6/30/2010																									PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Annuities	$	552.5		$	598.2		$	628.9		$	629.9		$	644.6			16.7	%	$	1,074.2		$	1,274.5			18.6	%
Defined Contribution		223.5			240.6			243.7			240.5			245.3			9.8	%		442.0			485.8			9.9	%
Total Retirement Solutions		776.0			838.8			872.6			870.4			889.9			14.7	%		1,516.2			1,760.3			16.1	%
Life Insurance		1,002.2			1,089.1			1,125.9			1,127.8			1,135.5			13.3	%		2,078.4			2,263.3			8.9	%
Group Protection		442.9			414.6			433.6			445.2			470.1			6.1	%		864.3			915.3			5.9	%
Total Insurance Solutions		1,445.1			1,503.7			1,559.5			1,573.0			1,605.6			11.1	%		2,942.7			3,178.6			8.0	%
Other Operations		115.4			119.6			126.4			123.9			121.0			4.9	%		220.8			244.9			10.9	%
Total Operating Revenues		2,336.5			2,462.1			2,558.5			2,567.3			2,616.5			12.0	%		4,679.7			5,183.8			10.8	%
Excluded realized gain (loss), pre-tax (1)		(454.6	)		(381.1	)		(156.6	)		(40.9	)		(11.1	)		97.6	%		(662.2	)		(52.0	)		92.1	%
Amortization of DFEL associated with benefit
ratio unlocking, pre-tax		(0.2	)		0.2			-			0.3			(1.6	)	NM				(4.3	)		(1.3	)		69.8	%
Amortization of deferred gains arising from
reserve changes on business sold
through reinsurance, pre-tax		0.7			0.7			0.5			0.7			0.7			0.0	%		1.3			1.4			7.7	%
Total Revenues	$	1,882.4		$	2,081.9		$	2,402.4		$	2,527.4		$	2,604.5			38.4	%	$	4,014.5		$	5,131.9			27.8	%
Income (Loss) from Operations
Annuities	$	65.4		$	94.5		$	119.7		$	118.7		$	116.4			78.0	%	$	139.3		$	235.1			68.8	%
Defined Contribution		27.7			42.6			33.3			35.9			36.0			30.0	%		57.5			71.9			25.0	%
Total Retirement Solutions		93.1			137.1			153.0			154.6			152.4			63.7	%		196.8			307.0			56.0	%
Life Insurance		132.9			136.5			157.6			136.7			151.2			13.8	%		275.1			287.9			4.7	%
Group Protection		33.6			34.5			30.1			21.4			22.7			-32.4	%		59.3			44.1			-25.6	%
Total Insurance Solutions		166.5			171.0			187.7			158.1			173.9			4.4	%		334.4			332.0			-0.7	%
Other Operations		(52.3	)		(32.6	)		(43.5	)		(36.6	)		(36.1	)		31.0	%		(160.8	)		(72.7	)		54.8	%
Income from Operations		207.3			275.5			297.2			276.1			290.2			40.0	%		370.4			566.3			52.9	%
Excluded realized gain (loss), after-
tax (1) (2)		(296.8	)		(248.3	)		(98.3	)		(26.5	)		(7.3	)		97.5	%		(433.2	)		(33.8	)		92.2	%
Benefit ratio unlocking, after-tax (1) (2)		80.9			52.3			7.6			5.5			(30.9	)	NM				28.9			(25.4	)	NM
Income from reserve changes (net of related
amortization) on business sold through
reinsurance, after-tax (2)		0.4			0.4			0.5			0.4			0.5			25.0	%		0.8			0.9			12.5	%
Gain on early extinguishment of
debt, after-tax (2)		-			-			-			-			-		NM				41.8			-			-100.0	%
Impairment of intangibles, after-tax (2)		0.6			1.4			(108.8	)		-			-			-100.0	%		(602.9	)		-			100.0	%
Income (loss) from discontinued
operations, after-tax (3)		(153.8	)		72.0			4.1			27.9			2.7			101.8	%		(146.1	)		30.6			120.9	%
Net Income (Loss)		(161.4	)		153.3			102.3			283.4			255.2			258.1	%		(740.3	)		538.6			172.8	%
Preferred stock dividends and
accretion of discount		-			(16.3	)		(18.2	)		(18.4	)		(18.3	)	NM				-			(36.7	)	NM
Write-off of unamortized discount on preferred stock
preferred stock at liquidation		-			-			-			-			(130.6	)	NM				-			(130.6	)	NM
Adjustment for deferred units of LNC stock
in our non-director deferred
compensation plans (4)		-			-			-			-			(1.9	)	NM				-			(1.9	)	NM
Minority interest adjustment (5)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to Common
Stockholders - Diluted	$	(161.4	)	$	137.0		$	84.1		$	265.0		$	104.4			164.7	%	$	(740.4	)	$	369.4			149.9	%
Stockholders' Equity
Beginning-of-period (including AOCI)	$	7,323.5		$	9,074.9		$	11,655.5		$	11,700.2		$	12,368.5					$	7,976.7		$	11,700.2
End-of-period (including AOCI)		9,074.9			11,655.5			11,700.2			12,368.5			12,637.3						9,074.9			12,637.3
End-of-period (excluding AOCI)		10,782.3			11,876.0			11,961.6			12,066.3			11,699.4						10,782.3			11,699.4
Average equity (excluding AOCI)		10,540.5			11,329.1			11,918.8			12,013.9			11,882.9						10,540.0			11,948.4
Restructuring Charges, After-Tax	$	18.6		$	0.4		$	0.2		$	0.0		$	0.0					$	21.9		$	0.0
Common Shares Outstanding
Average for the period - basic		260.1			301.8			301.9			302.2			304.5						257.8			303.4
Average for the period - diluted		262.4			310.0			311.6			312.1			314.6						260.1			313.4
End-of-period - diluted		304.2			311.8			311.8			313.0			325.9						304.2			325.9
Earnings (Loss) Per Common Share - Diluted
Income from operations (6)	$	0.79		$	0.84		$	0.90		$	0.83		$	0.86					$	1.42		$	1.68
Net income (loss) (6)		(0.62	)		0.44			0.27			0.85			0.33						(2.87	)		1.18
Restructuring charges		(0.07	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)					0.08			(0.00	)
Stockholders' Equity Per Common Share
Stockholders' equity (including AOCI) (7)	$	30.02		$	35.91		$	36.02		$	38.19		$	39.89					$	30.02		$	39.89
Stockholders' equity (excluding AOCI) (7)		35.67			36.64			36.89			37.19			36.93						35.67			36.93
Dividends declared (common stock)		0.010			0.010			0.010			0.010			0.010						0.020			0.020
Return on Equity
Net income (loss)/average equity		-6.1	%		5.4	%		3.4	%		9.4	%		8.6	%					-14.0	%		9.0	%
Income from operations/average equity		7.9	%		9.7	%		10.0	%		9.2	%		9.8	%					7.0	%		9.5	%
Market Value of Common Shares
Highest price	$	19.99		$	27.82		$	28.10		$	30.74		$	33.55					$	25.59		$	33.55
Lowest price		5.52			14.34			21.99			22.52			23.86						4.90			22.52
Closing price		17.21			25.91			24.88			30.70			24.29						17.21			24.29

(1)	See page 6 for detail.
(2)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial
	statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(3)	Includes discontinued operations and the loss on disposal.  See Discontinued Operations on page 27 for details.
(4)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in
	our non-director deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(5)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(6)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been
	anti-dilutive.  This same concept applies to our income from operations as well.
(7)	These computations exclude Series B preferred stock balances as it is non-convertible.

6/30/2010													PAGE 6
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking
Unaudited (millions of dollars)
	For the Three Months Ended																			For the Six Months Ended
	June			Sept.			Dec.			March				June			%			June			June			%
	2009			2009			2009			2010				2010			Change			2009			2010			Change
Components of Operating Realized Gain (Loss)
Indexed annuity net derivatives results (1)	$	0.2		$	0.3		$	-		$	0.4			$	(0.7	)	NM			$	(0.1	)	$	(0.3	)	NM
GLB (2)		11.5			14.7			15.8			15.0				16.3			41.7	%		23.3			31.3		34.3	%
Total operating realized gain (loss), pre-tax		11.7			15.0			15.8			15.4				15.6			33.3	%		23.2			31.0		33.6	%
Federal income tax expense (benefit) (8)		4.1			5.2			5.5			5.3				5.6			36.6	%		8.2			10.9		32.9	%
Total operating realized
gain (loss),after-tax	$	7.6		$	9.8		$	10.3		$	10.1			$	10.0			31.6	%	$	15.0		$	20.1		34.0	%
Components of Excluded Realized Gain (Loss)
Realized gain (loss) related to certain
investments (3)		(154.3	)		(123.5	)		(126.6	)		(55.0	)			(5.1	)		96.7	%		(287.9	)		(60.1	)	79.1	%
Gain (loss) on certain derivative instruments, including those
associated with our consolidated VIEs, and
trading securities (4)		(13.4	)		58.4			(14.0	)		12.6				(45.8	)	NM				(8.1	)		(33.2	)	NM
GLB net derivatives results (5)		(150.5	)		(227.9	)		2.8			11.9				10.8			107.2	%		(276.1	)		22.7		108.2	%
GDB derivatives results (6)		(140.8	)		(84.2	)		(21.7	)		(13.0	)			25.7			118.3	%		(95.0	)		12.7		113.4	%
Indexed annuity forward-starting option (7)		3.4			(3.9	)		2.9			2.6				3.3			-2.9	%		3.9			5.9		51.3	%
Gain (loss) on sale of subsidiaries/businesses		1.0			-			-			-				-			-100.0	%		1.0			-		-100.0	%
Total excluded realized gain (loss), pre-tax		(454.6	)		(381.1	)		(156.6	)		(40.9	)			(11.1	)		97.6	%		(662.2	)		(52.0	)	92.1	%
Federal income tax expense (benefit) (8)		(157.8	)		(132.8	)		(58.3	)		(14.4	)			(3.8	)		97.6	%		(229.0	)		(18.2	)	92.1	%
Total excluded realized
gain (loss), after-tax	$	(296.8	)	$	(248.3	)	$	(98.3	)	$	(26.5	)		$	(7.3	)		97.5	%	$	(433.2	)	$	(33.8	)	92.2	%
Components of GLB Net Derivatives Results
Net valuation premium, net of reinsurance	$	27.4		$	31.2		$	34.8		$	25.8			$	27.7			1.1	%	$	49.6		$	53.5		7.9	%
Change in reserves hedged:
Unlocking		-			(25.7	)		(240.8	)		-				-		NM				-			-		NM
Other		1,977.7			208.9			644.6			190.0				(1,402.0	)	NM				2,210.9			(1,212.0	)	NM
Change in market value of derivative assets		(1,846.3	)		(241.1	)		(548.9	)		(198.0	)			1,248.5			167.6	%		(2,144.4	)		1,050.5		149.0	%
Hedge program
effectiveness (ineffectiveness)		131.4			(57.9	)		(145.1	)		(8.0	)			(153.5	)	NM				66.5			(161.5	)	NM
Change in reserves not hedged (NPR
component)		(333.0	)		(212.0	)		54.1			(0.9	)			151.0			145.3	%		(388.4	)		150.1		138.6	%
Change in derivative assets not hedged
(NPR component)		17.0			5.0			4.7			(1.0	)			(8.1	)	NM				5.1			(9.1	)	NM
Associated amortization expense of DAC, VOBA,
DSI and DFEL:
Unlocking		(83.7	)		(76.5	)		43.5			4.7				5.2			106.2	%		(143.1	)		9.9		106.9	%
Other amortization		90.4			82.3			10.8			(8.7	)			(11.5	)	NM				134.2			(20.2	)	NM
GLB net derivatives results, pre-tax	$	(150.5	)	$	(227.9	)	$	2.8		$	11.9			$	10.8			107.2	%	$	(276.1	)	$	22.7		108.2	%
Components of Benefit Ratio Unlocking (8)
GLB benefit ratio unlocking, after-tax	$	6.2		$	3.6		$	1.1		$	0.6			$	(3.0	)	NM			$	3.1		$	(2.4	)	NM
GDB benefit ratio unlocking, after-tax		74.7			48.7			6.5			4.9				(27.9	)	NM				25.8			(23.0	)	NM
Total benefit ratio unlocking, after-tax	$	80.9		$	52.3		$	7.6		$	5.5			$	(30.9	)	NM			$	28.9		$	(25.4	)	NM
GDB Benefit Ratio Unlocking, Net of Derivative Results (8)
GDB benefit ratio unlocking, after-tax	$	74.7		$	48.7		$	6.5		$	4.9			$	(27.9	)	NM			$	25.8		$	(23.0	)	NM
GDB derivatives results, after-tax		(92.8	)		(55.6	)		(10.5	)		(8.4	)			16.6			117.9	%		(64.5	)		8.2		112.7	%
GDB benefit ratio unlocking, net of
derivative results, after-tax	$	(18.1	)	$	(6.9	)	$	(4.0	)	$	(3.5	)		$	(11.3	)		37.6	%	$	(38.7	)	$	(14.8	)	61.8	%

(1)	Represents the net difference between the change in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded
	derivative liabilities of our indexed annuity products.  The change in the fair value of the liability for the embedded derivative represents the amount that is credited to
	the indexed annuity contract.
(2)	Represents the "risk/profit margin" portion of the attributed GLB rider fees. We have certain GLB variable annuity riders with GWB and GIB features that are
	embedded derivatives.  We attribute to the embedded derivative the portion of total fees collected from the contract holder that relates to the GLB riders
	(the “attributed fees”).  These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract (the “net
	valuation premium”) plus a margin that a theoretical market participant would include for risk/profit (the “risk/profit margin”).  We include the net valuation
	premium of the GLB attributed rider fees in excluded realized gain (loss).  For our Retirement Solutions – Annuities and Retirement Solutions –  Defined Contribution
	segments, the total fees collected from the contract holders in excess of the GLB attributed fees are reported in insurance fees.
(3)	See page 29 for detail.
(4)	Represents changes in the fair values of certain derivative investments (including the credit default swaps and contingent forwards associated with our consolidated
	VIEs), total return swaps (embedded derivatives that are theoretically included in our various modified coinsurance and coinsurance with funds withheld
	reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements) and trading securities.
(5)	Represents the net valuation premium, the change in the fair value of the embedded derivative liabilities of our GLB products, the change in the fair value of the
	derivative instruments we own to hedge the embedded derivative, the cost of purchasing the derivative instruments, and the associated changes to DAC, VOBA,
	DSI, and DFEL.
(6)	Represents the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(7)	Represents changes in the fair value of 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.
(8)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
	financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.

6/30/2010																									PAGE 7
Consolidated Statements of Income
Unaudited (in millions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Revenues
Insurance premiums	$	541.8		$	490.4		$	523.8		$	531.8		$	551.4			1.8	%	$	1,050.0		$	1,083.2			3.2	%
Surrender charges		36.8			43.2			40.6			42.7			34.5			-6.2	%		68.6			77.2			12.5	%
Mortality assessments		320.0			317.1			317.8			317.9			325.3			1.7	%		664.1			643.2			-3.1	%
Expense assessments		333.9			405.3			406.9			427.5			433.4			29.8	%		659.0			860.9			30.6	%
Net investment income		970.6			1,071.3			1,122.3			1,106.1			1,119.8			15.4	%		1,983.9			2,225.9			12.2	%
Realized gain (loss):
Total other-than-temporary
impairment losses on
securities		(220.1	)		(147.5	)		(88.7	)		(75.9	)		(11.6	)		94.7	%		(430.7	)		(87.5	)		79.7	%
Portion of loss
recognized in other
comprehensive income		102.5			67.8			15.4			23.5			-			-100.0	%		191.6			23.5			-87.7	%
Net other-than-temporary impairment
losses on securities
recognized in earnings		(117.6	)		(79.7	)		(73.3	)		(52.4	)		(11.6	)		90.1	%		(239.1	)		(64.0	)		73.2	%
Realized gain (loss), excluding
other-than-temporary
impairment losses on
securities		(325.3	)		(286.4	)		(67.5	)		26.9			16.1			101.4	%		(399.9	)		43.0			110.8	%
Total realized gain (loss) (1)		(442.9	)		(366.1	)		(140.8	)		(25.5	)		4.5			101.0	%		(639.0	)		(21.0	)		96.7	%
Amortization of deferred gains
on business sold
through reinsurance		18.3			18.4			20.3			18.9			18.6			1.6	%		37.3			37.5			0.5	%
Other revenues and fees		103.9			102.3			111.5			108.0			117.0			12.6	%		190.6			225.0			18.0	%
Total Revenues		1,882.4			2,081.9			2,402.4			2,527.4			2,604.5			38.4	%		4,014.5			5,131.9			27.8	%
Benefits and Expenses
Interest credited		606.9			614.2			614.9			617.7			613.0			1.0	%		1,233.8			1,230.7			-0.3	%
Benefits		574.6			577.2			763.9			779.2			839.2			46.0	%		1,494.7			1,618.4			8.3	%
Underwriting, acquisition,
insurance and other
expenses		694.5			761.4			694.6			713.7			753.1			8.4	%		1,338.0			1,466.8			9.6	%
Interest and debt expense		60.9			68.0			68.1			68.1			69.0			13.3	%		61.2			137.1			124.0	%
Impairment of intangibles		(0.6	)		(1.4	)		127.8			-			-			100.0	%		603.1			-			-100.0	%
Total Benefits and
Expenses		1,936.3			2,019.4			2,269.3			2,178.7			2,274.3			17.5	%		4,730.8			4,453.0			-5.9	%
Income (loss) from continuing
operations before taxes		(53.9	)		62.5			133.1			348.7			330.2		NM				(716.3	)		678.9			194.8	%
Federal income tax expense
(benefit)		(46.3	)		(18.8	)		34.9			93.2			77.7			267.8	%		(122.1	)		170.9			240.0	%
Income (Loss) from Continuing
Operations		(7.6	)		81.3			98.2			255.5			252.5		NM				(594.2	)		508.0			185.5	%
Income (loss) from discontinued
operations, net of federal income
tax  expense (benefit) (2)		(153.8	)		72.0			4.1			27.9			2.7			101.8	%		(146.1	)		30.6			120.9	%
Net Income (Loss)		(161.4	)		153.3			102.3			283.4			255.2			258.1	%		(740.3	)		538.6			172.8	%
Preferred stock dividends
and accretion of discount		-			(16.3	)		(18.2	)		(18.4	)		(18.3	)	NM				-			(36.7	)	NM
Write-off of unamortized discount on preferred
stock at liquidation		-			-			-			-			(130.6	)	NM				-			(130.6	)	NM
Adjustment for deferred units of LNC stock
in our non-director deferred
compensation plans (3)		-			-			-			-			(1.9	)	NM				-			(1.9	)	NM
Minority interest
adjustment (4)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to
Common Stockholders -
Diluted	$	(161.4	)	$	137.0		$	84.1		$	265.0		$	104.4			164.7	%	$	(740.4	)	$	369.4			253.8	%
Earnings (Loss) Per Common Share (Diluted) (5)
Income (loss) from
continuing operations	$	(0.03	)	$	0.21		$	0.26		$	0.76		$	0.32		NM			$	(2.30	)	$	1.08			147.0	%
Income (loss) from discontinued operations,
net of federal income tax
expense (benefit) (2)		(0.59	)		0.23			0.01			0.09			0.01			101.5	%		(0.57	)		0.10			117.3	%
Net Income (Loss)	$	(0.62	)	$	0.44		$	0.27		$	0.85		$	0.33			153.2	%	$	(2.87	)	$	1.18			141.1	%

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the loss on disposition.  See Discontinued Operations on page 27 for additional details.
(3)	The numerator used in the calculation of our diluted EPS is adjusted down for the removal of the favorable mark-to-market adjustment for deferred units of LNC stock in
	our non-director deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.
(4)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(5)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been
	anti-dilutive.

6/30/2010										PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL
Unaudited (in millions)
	For the Three Months Ended															For the Six Months Ended
	June			Sept.			Dec.			March			June			June			June
DAC and VOBA	2009			2009			2009			2010			2010			2009			2010
Balance as of beginning-of-period	$	11,399.4		$	10,455.9		$	9,182.3		$	9,509.6		$	9,195.1		$	11,403.3		$	9,509.6
Business sold through reinsurance		-			-			-			-			-			(292.9	)		-
Deferrals		385.4			422.5			460.0			385.1			401.2			768.9			786.3
Amortization, net of interest:
Unlocking		(0.5	)		(39.9	)		12.7			43.3			21.7			(33.1	)		65.0
Amortization, net of interest,
excluding unlocking		(231.2	)		(271.5	)		(273.6	)		(301.4	)		(318.6	)		(436.2	)		(620.0	)
Deferrals, net of amortization included in
operating underwriting, acquisition,
insurance and other expenses		153.7			111.1			199.1			127.0			104.3			299.6			231.3
Amortization, net of interest, associated
with benefit ratio unlocking		(18.9	)		(12.1	)		(1.1	)		(1.8	)		7.7			2.5			5.9
Adjustment related to realized (gains) losses		70.5			31.2			82.1			(8.6	)		(26.6	)		77.3			(35.2	)
Adjustment related to unrealized
(gains) losses		(1,148.8	)		(1,403.8	)		47.2			(431.1	)		(746.0	)		(1,033.9	)		(1,177.1	)
Balance as of End-of-Period	$	10,455.9		$	9,182.3		$	9,509.6		$	9,195.1		$	8,534.5		$	10,455.9		$	8,534.5
DSI
Balance as of beginning-of-period	$	279.4		$	289.1		$	305.0		$	323.3		$	299.4		$	262.7		$	323.3
Deferrals		19.2			20.1			21.1			19.5			17.7			35.1			37.2
Amortization, net of interest:
Unlocking		(0.1	)		3.6			2.5			2.1			2.2			(1.9	)		4.3
Amortization, net of interest,
excluding unlocking		(9.9	)		(10.2	)		(6.3	)		(15.0	)		(14.2	)		(14.8	)		(29.2	)
Deferrals, net of amortization included in
operating insurance benefits or
interest credited		9.2			13.5			17.3			6.6			5.7			18.4			12.3
Amortization, net of interest, associated
with benefit ratio unlocking		(1.7	)		(1.1	)		(0.1	)		(0.2	)		1.0			0.8			0.8
Adjustment related to realized (gains) losses		2.9			3.1			2.0			(1.9	)		(2.6	)		7.7			(4.5	)
Adjustment related to unrealized
(gains) losses		(0.7	)		0.4			(0.9	)		(28.4	)		(14.9	)		(0.5	)		(43.3	)
Balance as of End-of-Period	$	289.1		$	305.0		$	323.3		$	299.4		$	288.6		$	289.1		$	288.6
DFEL
Balance as of beginning-of-period	$	1,076.2		$	1,160.8		$	1,220.3		$	1,337.6		$	1,345.3		$	1,019.4		$	1,337.6
Business sold through reinsurance		-			-			-			-			-			(11.0	)		-
Deferrals		112.5			124.0			151.6			135.2			134.1			220.1			269.3
Amortization, net of interest:
Unlocking		(0.9	)		(30.7	)		(2.0	)		(7.0	)		(7.8	)		(5.8	)		(14.8	)
Amortization, net of interest,
excluding unlocking		(28.3	)		(36.6	)		(34.4	)		(44.0	)		(47.5	)		(61.3	)		(91.5	)
Deferrals, net of amortization included
in operating expense assessments		83.3			56.7			115.2			84.2			78.8			153.0			163.0
Amortization, net of interest, associated
with benefit ratio unlocking		0.2			(0.2	)		-			(0.3	)		1.6			4.3			1.3
Adjustment related to realized gains (losses)		0.9			2.2			2.8			(1.3	)		(2.8	)		(5.8	)		(4.1	)
Adjustment related to unrealized
gains (losses)		0.2			0.8			(0.7	)		(74.9	)		(115.1	)		0.9			(190.0	)
Balance as of End-of-Period	$	1,160.8		$	1,220.3		$	1,337.6		$	1,345.3		$	1,307.8		$	1,160.8		$	1,307.8

6/30/2010												PAGE 9
Consolidating Statements of Income From Operations
For the Quarter Ended June 30, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	9.8	$	-	$	107.5	$	433.7	$	0.3		$	551.3
Surrender charges		9.6		0.7		24.1		-		-			34.4
Mortality assessments		-		-		325.3		-		-			325.3
Expense assessments		260.1		48.7		125.9		-		-			434.7
Net investment income		271.5		191.2		545.0		34.3		77.8			1,119.8
Operating realized gain (loss) (2)		15.5		0.1		-		-		-			15.6
Amortization of deferred gain on business sold through reinsurance		-		-		-		-		18.0			18.0
Other revenues and fees		78.1		4.6		7.7		2.1		24.9			117.4
Total Operating Revenues		644.6		245.3		1,135.5		470.1		121.0			2,616.5
Operating Expenses
Interest credited		176.9		110.0		298.8		0.1		28.1			613.9
Benefits		40.7		0.1		374.2		334.1		35.3			784.4
Underwriting, acquisition, insurance and other expenses		282.0		85.1		241.3		101.3		51.1			760.8
Interest and debt expense		-		-		-		-		69.0			69.0
Total Operating Expenses		499.6		195.2		914.3		435.5		183.5			2,228.1
Income (loss) from operations before federal income tax expense (benefit)		145.0		50.1		221.2		34.6		(62.5	)		388.4
Federal income tax expense (benefit)		28.6		14.1		70.0		11.9		(26.4	)		98.2
Income (Loss) from Operations	$	116.4	$	36.0	$	151.2	$	22.7	$	(36.1	)	$	290.2

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

6/30/2010														PAGE 10
Consolidating Statements of Income From Operations
For the Quarter Ended June 30, 2009
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life			Group		Other
	Annuities		Contribution			Insurance			Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	32.5	$	-		$	93.3		$	413.3	$	2.7		$	541.8
Surrender charges		8.9		1.3			26.7			-		-			36.9
Mortality assessments		-		-			320.0			-		-			320.0
Expense assessments		187.3		43.4			103.0			-		-			333.7
Net investment income		243.9		175.6			453.3			28.1		69.8			970.7
Operating realized gain (loss) (2)		11.6		0.1			-			-		-			11.7
Amortization of deferred gain on business sold through reinsurance		-		-			(0.7	)		-		18.4			17.7
Other revenues and fees		68.3		3.1			6.6			1.5		24.5			104.0
Total Operating Revenues		552.5		223.5			1,002.2			442.9		115.4			2,336.5
Operating Expenses
Interest credited		170.4		112.0			290.8			0.5		31.4			605.1
Benefits		67.0		(0.7	)		323.0			292.7		36.0			718.0
Underwriting, acquisition, insurance and other expenses		238.5		73.9			191.7			98.0		73.4			675.5
Interest and debt expense		-		-			-			-		60.9			60.9
Total Operating Expenses		475.9		185.2			805.5			391.2		201.7			2,059.5
Income (loss) from operations before federal income tax expense (benefit)		76.6		38.3			196.7			51.7		(86.3	)		277.0
Federal income tax expense (benefit)		11.2		10.6			63.8			18.1		(34.0	)		69.7
Income (Loss) from Operations	$	65.4	$	27.7		$	132.9		$	33.6	$	(52.3	)	$	207.3

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

6/30/2010												PAGE 11
Consolidating Statements of Income From Operations
For the Six Months Ended June 30, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	19.7	$	-	$	219.8	$	843.6	$	-		$	1,083.1
Surrender charges		20.5		1.8		54.9		-		-			77.2
Mortality assessments		-		-		643.2		-		-			643.2
Expense assessments		509.3		97.8		254.6		-					861.7
Net investment income		542.3		377.4		1,075.1		67.9		163.2			2,225.9
Operating realized gain (loss) (2)		30.8		0.2		-		-		-			31.0
Amortization of deferred gain on business sold through reinsurance		-		-		-		-		36.2			36.2
Other revenues and fees		151.9		8.6		15.7		3.8		45.5			225.5
Total Operating Revenues		1,274.5		485.8		2,263.3		915.3		244.9			5,183.8
Operating Expenses
Interest credited		353.1		220.4		595.7		0.6		61.7			1,231.5
Benefits		84.5		2.1		773.1		644.8		69.4			1,573.9
Underwriting, acquisition, insurance and other expenses		541.8		163.0		471.3		202.4		94.2			1,472.7
Interest and debt expense		-		-		-		-		137.1			137.1
Total Operating Expenses		979.4		385.5		1,840.1		847.8		362.4			4,415.2
Income (loss) from operations before federal income tax expense (benefit)		295.1		100.3		423.2		67.5		(117.5	)		768.6
Federal income tax expense (benefit)		60.0		28.4		135.3		23.4		(44.8	)		202.3
Income (Loss) from Operations	$	235.1	$	71.9	$	287.9	$	44.1	$	(72.7	)	$	566.3

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

6/30/2010															PAGE 12
Consolidating Statements of Income From Operations
For the Six Months Ended June 30, 2009
Unaudited (in millions)
	Retirement Solutions						Insurance Solutions
				Defined			Life			Group		Other
	Annuities			Contribution			Insurance			Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	59.6		$	-		$	183.8		$	803.1	$	3.5		$	1,050.0
Surrender charges		18.1			2.3			48.3			-		-			68.7
Mortality assessments		-			-			664.1			-		-			664.1
Expense assessments		359.8			83.0			219.5			-		-			662.3
Net investment income		484.3			351.1			951.0			58.2		139.4			1,984.0
Operating realized gain (loss) (2)		23.1			0.1			-			-		-			23.2
Amortization of deferred gain on business sold through reinsurance		-			-			(0.7	)		-		36.8			36.1
Other revenues and fees		129.3			5.5			12.4			3.0		41.1			191.3
Total Operating Revenues		1,074.2			442.0			2,078.4			864.3		220.8			4,679.7
Operating Expenses
Interest credited		334.1			223.5			593.6			1.1		82.3			1,234.6
Benefits		142.8			(2.6	)		678.7			574.7		142.6			1,536.2
Underwriting, acquisition, insurance and other expenses		458.1			146.4			415.7			197.3		122.8			1,340.3
Interest and debt expense		-			-			-			-		125.6			125.6
Total Operating Expenses		935.0			367.3			1,688.0			773.1		473.3			4,236.7
Income (loss) from operations before federal income tax expense (benefit)		139.2			74.7			390.4			91.2		(252.5	)		443.0
Federal income tax expense (benefit)		(0.1	)		17.2			115.3			31.9		(91.7	)		72.6
Income (Loss) from Operations	$	139.3		$	57.5		$	275.1		$	59.3	$	(160.8	)	$	370.4

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

6/30/2010													PAGE 13
Consolidated Balance Sheets and Selected Share Data
Unaudited (millions of dollars)
	As of
	June			Sept.			Dec.			March			June
	2009			2009			2009			2010			2010
ASSETS
Investments:
Corporate bonds	$	42,489.5		$	46,304.6		$	45,860.3		$	47,446.2		$	50,403.0
U.S. Government bonds		221.2			221.7			194.2			198.3			209.0
Foreign government bonds		479.8			492.9			504.9			456.1			472.3
Mortgage-backed securities		9,889.7			10,946.9			11,103.3			11,365.4			11,605.9
State and municipal bonds		906.6			1,464.9			1,967.6			2,198.1			2,539.9
VIEs' fixed maturity securities		-			-			-			579.5			581.4
Preferred stocks - redeemable		1,063.0			1,235.2			1,188.0			1,216.7			1,160.9
Common stocks		171.9			211.6			198.4			222.3			190.2
Preferred stocks - equity		64.4			71.4			80.0			87.7			55.7
Total available-for-sale securities		55,286.1			60,949.2			61,096.7			63,770.3			67,218.3
Trading securities		2,316.7			2,547.9			2,504.6			2,532.5			2,607.6
Mortgage loans on real estate		7,468.3			7,276.7			7,177.8			7,012.5			6,881.6
Real estate		159.2			154.3			173.8			200.6			218.2
Policy loans		2,896.9			2,893.0			2,897.8			2,902.8			2,901.8
Derivative investments		1,233.8			1,282.0			1,010.1			992.4			1,988.9
Other investments		1,187.1			1,079.6			1,057.2			1,046.4			1,136.8
Total investments		70,548.1			76,182.7			75,918.0			78,457.5			82,953.2
Cash and invested cash		2,399.5			3,159.0			4,024.7			3,444.7			3,699.6
DAC and VOBA		10,455.9			9,182.3			9,509.6			9,195.1			8,534.5
Premiums and fees receivable		400.2			323.4			320.9			397.4			316.6
Accrued investment income		881.5			943.2			889.2			940.0			945.4
Reinsurance recoverables		7,729.3			7,664.1			6,425.9			6,520.1			6,659.6
Reinsurance related embedded derivatives		45.8			-			-			-			-
Goodwill		3,096.4			3,096.4			3,013.5			3,013.5			3,013.5
Other assets		10,396.8			10,827.1			3,831.4			3,223.9			3,162.8
Separate account assets		61,090.9			70,111.0			73,500.1			76,429.2			70,844.1
Total Assets	$	167,044.4		$	181,489.2		$	177,433.3		$	181,621.4		$	180,129.3
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	16,127.5		$	15,970.2		$	15,287.4		$	15,269.9		$	16,663.7
Other contract holder funds		62,427.6			63,956.3			64,818.5			65,452.3			66,276.4
Short-term debt		454.5			400.2			349.9			101.2			99.4
Long-term debt		4,775.1			4,788.6			5,050.4			5,060.3			5,864.7
Reinsurance related embedded derivatives		-			39.1			30.5			46.6			92.4
Funds withheld reinsurance liabilities		1,222.3			1,219.8			1,260.6			1,216.4			1,196.2
Deferred gain on indemnity reinsurance		529.1			510.8			543.4			524.7			505.9
Payables for collateral on investments		1,712.1			2,239.8			1,906.7			1,827.7			2,376.2
VIEs' liabilities		-			-			-			142.0			187.5
Other liabilities		9,630.4			10,597.9			2,985.6			3,182.6			3,385.5
Separate account liabilities		61,090.9			70,111.0			73,500.1			76,429.2			70,844.1
Total liabilities		157,969.5			169,833.7			165,733.1			169,252.9			167,492.0
Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.4
Series B preferred stock		-			799.9			806.3			812.8			-
Common stock		7,681.5			7,841.7			7,839.9			7,845.3			8,188.2
Retained earnings		3,100.4			3,234.0			3,315.0			3,407.8			3,510.8
Accumulated other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities		(1,448.8	)		126.8			49.4			600.6			1,267.2
Unrealized other-than-temporary impairment on available-for-sale securities		(117.7	)		(121.8	)		(115.1	)		(113.9	)		(110.4	)
Net unrealized gain (loss) on derivative instruments		53.7			10.8			11.4			21.0			(13.9	)
Foreign currency translation adjustment		91.5			68.2			2.9			1.7			1.5
Funded status of employee benefit plans		(286.1	)		(304.5	)		(210.0	)		(207.2	)		(206.5	)
Total accumulated other comprehensive income (loss)		(1,707.4	)		(220.5	)		(261.4	)		302.2			937.9
Total stockholders' equity		9,074.9			11,655.5			11,700.2			12,368.5			12,637.3
Total Liabilities and Stockholders' Equity	$	167,044.4		$	181,489.2		$	177,433.3		$	181,621.4		$	180,129.3
Share Data Per Common Share
Stockholders' equity per share (1)	$	30.02		$	35.91		$	36.02		$	38.19		$	39.89
Book value, excluding AOCI (1)		35.67			36.64			36.89			37.19			36.93
Common shares outstanding - assuming conversion of
Series A preferred shares (in millions)		302.3			302.3			302.4			302.6			316.8

(1) These computations exclude Series B preferred stock balances as it is non-convertible.

6/30/2010												PAGE 14
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
As of June 30, 2010			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)	$	24,386.6	$	13,822.3	$	37,418.6	$	2,498.0	$	8,527.3		$	86,652.8
DAC and VOBA		2,156.5		375.2		5,836.9		165.9		0.0			8,534.5
Goodwill		439.8		20.2		2,188.5		274.3		90.7			3,013.5
DSI and other intangibles		286.3		4.2		83.0		-		118.2			491.7
Reinsurance recoverables		582.2		-		1,934.3		41.5		4,101.6			6,659.6
Separate account assets		53,849.4		11,958.7		4,861.7		-		174.3			70,844.1
Liabilities and Capital
Future contract benefits		2,529.3		9.3		6,612.7		1,523.6		5,988.8			16,663.7
Other contract holder funds		20,057.3		12,574.5		31,897.8		219.9		1,526.9			66,276.4
Allocated capital (3)		3,027.8		1,045.9		8,446.0		1,130.5		(1,950.8	)		11,699.4
As of December 31, 2009
Assets
Allocated investments and cash and invested cash (2)	$	21,113.4	$	13,053.4	$	35,072.6	$	2,296.1	$	8,407.2		$	79,942.7
DAC and VOBA		2,381.0		537.7		6,427.9		159.5		3.5			9,509.6
Goodwill		439.8		20.2		2,188.5		274.3		90.7			3,013.5
DSI and other intangibles		320.6		4.6		85.0		-		118.2			528.4
Reinsurance recoverables		531.8		-		1,870.8		39.9		3,983.4			6,425.9
Separate accounts assets		55,286.9		12,949.6		5,088.3		-		175.3			73,500.1
Liabilities and Capital
Future contract benefits		1,439.0		2.6		6,434.7		1,446.3		5,964.8			15,287.4
Other contract holder funds		19,565.6		12,239.8		31,287.4		193.1		1,532.6			64,818.5
Allocated capital (3)		2,785.0		1,070.6		8,144.1		1,065.1		(1,103.2	)		11,961.6

(1)	Includes inter-segment eliminations.
(2)	Includes inter-segment cash management balances our segments utilize to borrow money to meet their short-term needs and also to invest short-term funds with
	other segments. These balances eliminate in consolidation.
(3)	Allocated capital is based on internal economic capital models plus certain other items (principally intangibles, including DAC and VOBA, goodwill and other items).

6/30/2010																									PAGE 15
Retirement Solutions - Annuities
Income Statements and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums (1)	$	32.5		$	17.3		$	11.9		$	9.9		$	9.8			-69.8	%	$	59.6		$	19.7			-66.9	%
Surrender charges		8.9			9.0			9.3			10.9			9.6			7.9	%		18.1			20.5			13.3	%
Expense assessments		187.3			214.3			230.1			249.2			260.1			38.9	%		359.8			509.3			41.6	%
Net investment income		243.9			271.5			281.2			270.8			271.5			11.3	%		484.3			542.3			12.0	%
Operating realized gain
(loss) (2)		11.6			14.9			15.8			15.3			15.5			33.6	%		23.1			30.8			33.3	%
Other revenues and fees (3)		68.3			71.2			80.6			73.8			78.1			14.3	%		129.3			151.9			17.5	%
Total Operating
Revenues		552.5			598.2			628.9			629.9			644.6			16.7	%		1,074.2			1,274.5			18.6	%
Operating Expenses
Interest credited		170.4			175.9			172.5			176.2			176.9			3.8	%		334.1			353.1			5.7	%
Benefits (1)		67.0			51.5			47.5			43.8			40.7			-39.3	%		142.8			84.5			-40.8	%
Underwriting, acquisition, insurance
and other expenses		238.5			258.8			266.0			259.8			282.0			18.2	%		458.1			541.8			18.3	%
Total Operating
Expenses		475.9			486.2			486.0			479.8			499.6			5.0	%		935.0			979.4			4.7	%
Income from operations before
federal income tax expense		76.6			112.0			142.9			150.1			145.0			89.3	%		139.2			295.1			112.0	%
Federal income tax
expense (benefit)		11.2			17.5			23.2			31.4			28.6			155.4	%		(0.1	)		60.0		NM
Income from
Operations	$	65.4		$	94.5		$	119.7		$	118.7		$	116.4			78.0	%	$	139.3		$	235.1			68.8	%
Effective Tax Rate		14.6	%		15.6	%		16.2	%		20.9	%		19.7	%					-0.1	%		20.3	%
Average Equity	$	2,912.1		$	2,814.2		$	2,785.6		$	2,858.3		$	2,979.7					$	3,052.8		$	2,919.0
Return on Average Equity		9.0	%		13.4	%		17.2	%		16.6	%		15.6	%					9.1	%		16.1	%
Income from Operations - Basis
Points on Average Account
Values - Annualized		42			55			65			63			60			18			47			62			15
Operating Realized Gain (Loss) (2)
Indexed annuity net
derivatives results (4)	$	0.2		$	0.4		$	-		$	0.4		$	(0.7	)	NM			$	-		$	(0.3	)	NM
GLB (5)		11.4			14.5			15.8			14.9			16.2			42.1	%		23.1			31.1			34.6	%
Total Operating Realized
Gain (Loss)	$	11.6		$	14.9		$	15.8		$	15.3		$	15.5			33.6	%	$	23.1		$	30.8			33.3	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	157.2		$	185.3		$	161.1		$	150.0		$	176.7			12.4	%	$	281.8		$	326.7			15.9	%
General and
administrative expenses		76.2			82.5			85.9			78.0			82.3			8.0	%		148.3			160.3			8.1	%
Broker-dealer commissions and general
and administrative expenses		69.2			73.6			81.1			73.6			77.3			11.7	%		133.2			150.9			13.3	%
Taxes, licenses and fees		6.7			6.3			4.0			9.1			6.1			-9.0	%		12.4			15.2			22.6	%
Total commissions and
expenses incurred		309.3			347.7			332.1			310.7			342.4			10.7	%		575.7			653.1			13.4	%
Less: commissions and
expenses capitalized		(158.2	)		(181.0	)		(157.2	)		(131.6	)		(164.5	)		-4.0	%		(285.5	)		(296.1	)		-3.7	%
Amortization of DAC and
VOBA, net of interest		87.4			92.1			91.1			80.7			104.1			19.1	%		167.9			184.8			10.1	%
Total Underwriting,  Acquisition, Insurance
Other Expenses	$	238.5		$	258.8		$	266.0		$	259.8		$	282.0			18.2	%	$	458.1		$	541.8			18.3	%
General and Administrative Expenses - Basis Points on
Average Account Values -
Annualized (6)		49			48			47			41			43			(6	)		50			42			(8	)

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income from operations.
(3)	Primarily broker-dealer revenues.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Includes distribution costs.

6/30/2010																			PAGE 16
Retirement Solutions - Annuities
DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended															For the Six Months Ended
	June			Sept.			Dec.			March			June			June			June
DAC and VOBA	2009			2009			2009			2010			2010			2009			2010
Balance as of beginning-of-period	$	3,056.6		$	2,698.1		$	2,286.6		$	2,381.0		$	2,285.0		$	2,976.9		$	2,381.0
Deferrals		158.2			181.0			157.2			131.6			164.5			285.5			296.1
Amortization, net of interest:
Unlocking		5.0			5.1			16.2			59.4			27.5			(12.8	)		86.9
Amortization, net of interest, excluding
unlocking		(92.4	)		(97.2	)		(107.3	)		(140.1	)		(131.6	)		(155.1	)		(271.7	)
Deferrals, net of amortization included in
operating underwriting, acquisition,
insurance and other expenses		70.8			88.9			66.1			50.9			60.4			117.6			111.3
Amortization, net of interest, associated
with benefit ratio unlocking		(16.9	)		(11.0	)		(0.9	)		(1.3	)		7.2			2.9			5.9
Adjustment related to
realized (gains) losses		22.5			26.2			43.9			(11.5	)		(20.1	)		4.3			(31.6	)
Adjustment related to
unrealized (gains) losses		(434.9	)		(515.6	)		(14.7	)		(134.1	)		(176.0	)		(403.6	)		(310.1	)
Balance as of End-of-Period	$	2,698.1		$	2,286.6		$	2,381.0		$	2,285.0		$	2,156.5		$	2,698.1		$	2,156.5
DSI
Balance as of beginning-of-period	$	277.2		$	286.6		$	302.4		$	320.6		$	296.9		$	260.7		$	320.6
Deferrals		18.7			20.0			21.0			19.4			17.7			34.4			37.1
Amortization, net of interest:
Unlocking		(0.2	)		3.6			2.6			2.1			2.2			(1.8	)		4.3
Amortization, net of interest, excluding
unlocking		(9.7	)		(10.2	)		(6.4	)		(15.0	)		(14.1	)		(14.7	)		(29.1	)
Deferrals, net of amortization included
in operating interest credited		8.8			13.4			17.2			6.5			5.8			17.9			12.3
Amortization, net of interest, associated
with benefit ratio unlocking		(1.7	)		(1.1	)		(0.1	)		(0.2	)		1.0			0.8			0.8
Adjustment related to
realized (gains) losses		2.9			3.1			2.0			(1.9	)		(2.6	)		7.6			(4.5	)
Adjustment related to
unrealized (gains) losses		(0.6	)		0.4			(0.9	)		(28.1	)		(14.8	)		(0.4	)		(42.9	)
Balance as of End-of-Period	$	286.6		$	302.4		$	320.6		$	296.9		$	286.3		$	286.6		$	286.3
DFEL
Balance as of beginning-of-period	$	134.5		$	146.5		$	162.2		$	182.1		$	191.0		$	130.3		$	182.1
Deferrals		12.3			15.8			17.6			17.0			20.0			22.9			37.0
Amortization, net of interest:
Unlocking		(0.2	)		(2.8	)		0.9			1.1			(1.2	)		(2.2	)		(0.1	)
Amortization, net of interest, excluding
unlocking		1.1			1.0			1.8			(5.5	)		(5.8	)		0.4			(11.3	)
Deferrals, net of amortization included
in operating expense assessments		13.2			14.0			20.3			12.6			13.0			21.1			25.6
Amortization, net of interest, associated
with benefit ratio unlocking		0.2			(0.2	)		-			(0.3	)		1.6			4.3			1.3
Adjustment related to
realized gains (losses)		(1.4	)		1.8			(0.4	)		(1.3	)		(2.6	)		(9.2	)		(3.9	)
Adjustment related to
unrealized gains (losses)		-			0.1			-			(2.1	)		(1.8	)		-			(3.9	)
Balance as of End-of-Period	$	146.5		$	162.2		$	182.1		$	191.0		$	201.2		$	146.5		$	201.2

6/30/2010																									PAGE 17
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of
beginning-of-period	$	17.854		$	18.596		$	19.766		$	19.940		$	20.042			12.3	%	$	17.655		$	19.940			12.9	%
Gross deposits		1.774			2.025			1.195			1.138			1.501			-15.4	%		3.135			2.639			-15.8	%
Withdrawals and deaths		(0.646	)		(0.501	)		(0.523	)		(0.486	)		(0.456	)		29.4	%		(1.411	)		(0.942	)		33.2	%
Net flows		1.128			1.524			0.672			0.652			1.045			-7.4	%		1.724			1.697			-1.6	%
Transfers to variable annuities		(0.582	)		(0.610	)		(0.726	)		(0.772	)		(0.801	)		-37.6	%		(1.140	)		(1.573	)		-38.0	%
Interest credited		0.177			0.237			0.207			0.203			0.093			-47.5	%		0.323			0.296			-8.4	%
Sales inducements deferred		0.019			0.019			0.021			0.019			0.018			-5.3	%		0.034			0.037			8.8	%
Balance as of
End-of-Period (Gross)		18.596			19.766			19.940			20.042			20.397			9.7	%		18.596			20.397			9.7	%
Reinsurance ceded		(1.065	)		(1.049	)		(1.027	)		(1.011	)		(0.994	)		6.7	%		(1.065	)		(0.994	)		6.7	%
Balance as of
End-of-Period
(Net of Ceded)	$	17.531		$	18.717		$	18.913		$	19.031		$	19.403			10.7	%	$	17.531		$	19.403			10.7	%
Variable Annuities (2)
Balance as of
beginning-of-period	$	39.301		$	45.523		$	52.429		$	55.368		$	57.815			47.1	%	$	40.925		$	55.368			35.3	%
Gross deposits		0.851			1.063			1.266			1.138			1.322			55.3	%		1.678			2.460			46.6	%
Withdrawals and deaths		(0.944	)		(0.977	)		(1.120	)		(1.215	)		(1.214	)		-28.6	%		(1.937	)		(2.429	)		-25.4	%
Net flows		(0.093	)		0.086			0.146			(0.077	)		0.108			216.1	%		(0.259	)		0.031			112.0	%
Transfers from fixed annuities		0.582			0.609			0.726			0.772			0.800			37.5	%		1.140			1.572			37.9	%
Investment increase and
change in market value		5.733			6.211			2.067			1.752			(4.802	)	NM				3.717			(3.050	)	NM
Balance as of
End-of-Period	$	45.523		$	52.429		$	55.368		$	57.815		$	53.921			18.4	%	$	45.523		$	53.921			18.4	%
Total Annuities
Balance as of
beginning-of-period	$	57.155		$	64.119		$	72.195		$	75.308		$	77.857			36.2	%	$	58.580		$	75.308			28.6	%
Gross deposits		2.625			3.088			2.461			2.276			2.823			7.5	%		4.813			5.099			5.9	%
Withdrawals and deaths		(1.590	)		(1.478	)		(1.643	)		(1.701	)		(1.670	)		-5.0	%		(3.348	)		(3.371	)		-0.7	%
Net flows		1.035			1.610			0.818			0.575			1.153			11.4	%		1.465			1.728			18.0	%
Transfers between fixed
and variable accounts		-			(0.001	)		-			-			(0.001	)	NM				-			(0.001	)	NM
Interest credited and
change in market value		5.910			6.448			2.274			1.955			(4.709	)	NM				4.040			(2.754	)	NM
Sales inducements deferred		0.019			0.019			0.021			0.019			0.018			-5.3	%		0.034			0.037			8.8	%
Balance as of End-
of-Period (Gross)		64.119			72.195			75.308			77.857			74.318			15.9	%		64.119			74.318			15.9	%
Reinsurance ceded		(1.065	)		(1.049	)		(1.027	)		(1.011	)		(0.994	)		6.7	%		(1.065	)		(0.994	)		6.7	%
Balance as of End-of-Period
(Net of Ceded)	$	63.054		$	71.146		$	74.281		$	76.846		$	73.324			16.3	%	$	63.054		$	73.324			16.3	%
Variable Annuities Under Agreement -
Included Above	$	0.076		$	0.082		$	0.082		$	0.082		$	0.071			-6.6	%	$	0.076		$	0.071			-6.6	%
Incremental Deposits (3)
Fixed annuities	$	1.774		$	2.023		$	1.194		$	1.137		$	1.500			-15.4	%	$	3.132		$	2.637			-15.8	%
Variable annuities		0.849			1.059			1.263			1.134			1.319			55.4	%		1.673			2.453			46.6	%
Total Incremental
Deposits	$	2.623		$	3.082		$	2.457		$	2.271		$	2.819			7.5	%	$	4.805		$	5.090			5.9	%

(1)	Includes the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Represents gross deposits reduced by transfers from other Lincoln products.

6/30/2010																									PAGE 18
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion
of Variable Contracts
Deposits	$	0.248		$	0.414		$	0.082		$	0.087		$	0.115			-53.6	%	$	0.483		$	0.202			-58.2	%
Withdrawals and deaths		(0.328	)		(0.283	)		(0.299	)		(0.264	)		(0.243	)		25.9	%		(0.725	)		(0.507	)		30.1	%
Net flows	$	(0.080	)	$	0.131		$	(0.217	)	$	(0.177	)	$	(0.128	)		-60.0	%	$	(0.242	)	$	(0.305	)		-26.0	%
Gross fixed contract
account values	$	8.981		$	9.219		$	9.102		$	9.015		$	8.977			0.0	%	$	8.981		$	8.977			0.0	%
Reinsurance ceded		(1.065	)		(1.049	)		(1.027	)		(1.011	)		(0.994	)		6.7	%		(1.065	)		(0.994	)		6.7	%
Net fixed contract
account values	$	7.916		$	8.170		$	8.075		$	8.004		$	7.983			0.8	%	$	7.916		$	7.983			0.8	%
Indexed Annuities
Deposits	$	0.651		$	0.846		$	0.318		$	0.324		$	0.522			-19.8	%	$	1.018		$	0.846			-16.9	%
Withdrawals and deaths		(0.187	)		(0.115	)		(0.120	)		(0.124	)		(0.111	)		40.6	%		(0.401	)		(0.235	)		41.4	%
Net flows	$	0.464		$	0.731		$	0.198		$	0.200		$	0.411			-11.4	%	$	0.617		$	0.611			-1.0	%
Indexed Annuity
Account Values	$	5.716		$	6.557		$	6.839		$	7.131		$	7.524			31.6	%	$	5.716		$	7.524			31.6	%
Fixed Portion of Variable Contracts
Deposits	$	0.875		$	0.765		$	0.795		$	0.727		$	0.864			-1.3	%	$	1.634		$	1.591			-2.6	%
Withdrawals and deaths		(0.131	)		(0.104	)		(0.103	)		(0.098	)		(0.102	)		22.1	%		(0.286	)		(0.200	)		30.1	%
Net flows	$	0.744		$	0.661		$	0.692		$	0.629		$	0.762			2.4	%	$	1.348		$	1.391			3.2	%
Fixed Portion of Variable Contract
Account Values	$	3.899		$	3.990		$	3.999		$	3.896		$	3.896			-0.1	%	$	3.899		$	3.896			-0.1	%
Variable Annuities, Including Fixed Portion
of Variable Contracts
Deposits	$	1.726		$	1.829		$	2.060		$	1.865		$	2.186			26.7	%	$	3.312		$	4.051			22.3	%
Withdrawals and deaths		(1.075	)		(1.082	)		(1.222	)		(1.313	)		(1.316	)		-22.4	%		(2.223	)		(2.629	)		-18.3	%
Net flows	$	0.651		$	0.747		$	0.838		$	0.552		$	0.870			33.6	%	$	1.089		$	1.422			30.6	%
Variable Contract
Account Values	$	49.422		$	56.419		$	59.367		$	61.711		$	57.817			17.0	%	$	49.422		$	57.817			17.0	%
Average Daily Variable Annuity
Separate Account Values	$	43.828		$	49.135		$	54.013		$	55.809		$	56.788			29.6	%	$	41.445		$	56.301			35.8	%

6/30/2010														PAGE 19
Retirement Solutions - Annuities
Interest Rate Spread Information, GLB Expense Assessments,
GLB Attributed Fee and GLB Account Values by Type
Unaudited (billions of dollars)
		For the Three Months Ended																			For the Six Months Ended
		June			Sept.			Dec.			March				June			%			June			June			%
		2009			2009			2009			2010				2010			Change			2009			2010			Change
																		(Basis Point)									(Basis Point)
Interest Rate Spread (1)																		Change									Change
Fixed maturity securities, mortgage loans on real estate and
	other, net of investment expenses (2)		5.44	%		5.68	%		5.59	%		5.63	%			5.47	%		3			5.36	%		5.54	%		18
Commercial mortgage loan prepayment and bond make
	whole premiums		0.01	%		0.02	%		0.08	%		0.02	%			0.09	%		8			0.01	%		0.06	%		5
Alternative investments			0.00	%		0.01	%		0.00	%		0.00	%			0.00	%		-			-0.01	%		0.00	%		1
	Net investment income yield on reserves		5.45	%		5.71	%		5.67	%		5.65	%			5.56	%		11			5.36	%		5.60	%		24
	Interest rate credited to contract holders		3.81	%		3.80	%		3.65	%		3.52	%			3.51	%		(30	)		3.83	%		3.51	%		(32	)
	Interest rate spread		1.64	%		1.91	%		2.02	%		2.13	%			2.05	%		41			1.53	%		2.09	%		56
Variable Annuity Expense Assessments
	(in millions) (3)	$	234.6		$	265.7		$	287.4		$	300.8			$	314.8			34.2	%	$	448.5		$	615.7			37.3	%
GLB Expense Assessments (in millions) (4)		$	50.6		$	54.7		$	58.9		$	63.6			$	67.6			33.6	%	$	98.5		$	131.2			33.2	%
Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income
	from operations (5)	$	16.9		$	17.5		$	18.6		$	22.8			$	24.0			42.0	%	$	33.1		$	46.8			41.4	%
Attributed fee excluded from operating revenues and
	income from operations (6)		30.6			34.3			37.9			28.9				30.8			0.7	%		56.1			59.7			6.4	%
	Total Attributed Fees on GLB	$	47.5		$	51.8		$	56.5		$	51.7			$	54.8			15.4	%	$	89.2		$	106.5			19.4	%
GLB Account Values by Type
Guaranteed withdrawal benefits (7)		$	17.973		$	21.462		$	23.500		$	25.179			$	24.421			35.9	%	$	17.973		$	24.421			35.9	%
Guaranteed income benefits (8)			7.708			8.835			9.333			9.851				9.374			21.6	%		7.708			9.374			21.6	%
	Total GLB Account Values	$	25.681		$	30.297		$	32.833		$	35.030			$	33.795			31.6	%	$	25.681		$	33.795			31.6	%

(1)	For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average invested
	assets on reserves.  We exclude net investment income earned on investments supporting statutory surplus, reverse repurchase agreement interest expense and
	inter-segment cash management account interest expense from our yield and spread calculations.  The average crediting rate is calculated using interest credited before
	DSI amortization, plus the immediate annuity reserve change (included within benefits), divided by average fixed account values net of co-insured account values.  Fixed
	account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained
	under these agreements.
(2)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term strategy during recent volatile markets.  The
	increased cash and short-term investment balances for the three months ended June 30, 2009, September 30, 2009, and December 31, 2009 and the six months ended
	June 30, 2009 reduced our yields by approximately 33 bps, 3 bps, 5 bps, and 37 bps, respectively.  There was no impact for the three months ended March 31, 2010
	and June 30, 2010.
(3)	Comprised of the variable annuity expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of
	attributed fees on GLB, as described in note (5) and note (6) and disclosed above.
(4)	Comprised of the GLB expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of attributed fees
	on GLB, as described in note (5) and note (6) and disclosed above.
(5)	Includes the risk/profit margin portion of the GLB attributed rider fees in operating realized gain (loss) and the amount reported in expense assessments.  See note (2)
	on page 6 for further discussion.
(6)	Includes the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss).  See note (5) on page 6 for further discussion.
(7)	Guaranteed withdrawal benefits include features that offer the contract holder a guarantee equal to the initial deposit (or contract value, if elected after issue), adjusted
	for any subsequent purchase payments or withdrawals.
(8)	For our guaranteed income benefits, we offer other product riders allowing variable annuity contract holders access and control during the income distribution phase of
	their contract.  This added flexibility allows the contract holder to access the account value for transfers, additional withdrawals and other service features, such as
	portfolio rebalancing.

6/30/2010																									PAGE 20
Retirement Solutions - Defined Contribution
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Surrender charges	$	1.3		$	1.3		$	0.9		$	1.1		$	0.7			-46.2	%	$	2.3		$	1.8			-21.7	%
Expense assessments		43.4			46.5			48.8			49.1			48.7			12.2	%		83.0			97.8			17.8	%
Net investment income		175.6			189.8			190.6			186.2			191.2			8.9	%		351.1			377.4			7.5	%
Operating realized
gain (loss) (1)		0.1			0.1			0.1			0.1			0.1			0.0	%		0.1			0.2			100.0	%
Other revenues and fees		3.1			2.9			3.3			4.0			4.6			48.4	%		5.5			8.6			56.4	%
Total Operating
Revenues		223.5			240.6			243.7			240.5			245.3			9.8	%		442.0			485.8			9.9	%
Operating Expenses
Interest credited		112.0			110.9			111.1			110.4			110.0			-1.8	%		223.5			220.4			-1.4	%
Benefits		(0.7	)		(0.3	)		(0.2	)		2.0			0.1			114.3	%		(2.6	)		2.1			180.8	%
Underwriting, acquisition, insurance
and other expenses		73.9			70.6			83.4			77.9			85.1			15.2	%		146.4			163.0			11.3	%
Total Operating
Expenses		185.2			181.2			194.3			190.3			195.2			5.4	%		367.3			385.5			5.0	%
Income from operations before federal
income tax expense		38.3			59.4			49.4			50.2			50.1			30.8	%		74.7			100.3			34.3	%
Federal income tax expense		10.6			16.8			16.1			14.3			14.1			33.0	%		17.2			28.4			65.1	%
Income from
Operations	$	27.7		$	42.6		$	33.3		$	35.9		$	36.0			30.0	%	$	57.5		$	71.9			25.0	%
Effective Tax Rate		27.7	%		28.3	%		32.6	%		28.5	%		28.1	%					23.0	%		28.3	%
Average Equity	$	1,050.0		$	1,025.2		$	1,040.8		$	1,058.1		$	1,045.7					$	1,029.9		$	1,051.9
Return on Average Equity		10.6	%		16.6	%		12.8	%		13.6	%		13.8	%					11.2	%		13.7	%
Income from Operations - Basis Points on Average Account
Values - Annualized		37			52			38			40			40			3			39			40			1
Operating Realized Gain (Loss) (1)
GLB (2)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.1		$	0.2			100.0	%
Total Operating Realized
Gain (Loss)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.1		$	0.2			100.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	15.5		$	16.4		$	18.1		$	16.3		$	15.8			1.9	%	$	29.5		$	32.1			8.8	%
General and
administrative expenses		53.7			53.3			59.2			52.9			57.6			7.3	%		107.3			110.5			3.0	%
Taxes, licenses and fees		3.0			2.7			2.9			3.8			3.1			3.3	%		6.6			6.9			4.5	%
Total commissions and
expenses incurred		72.2			72.4			80.2			73.0			76.5			6.0	%		143.4			149.5			4.3	%
Less: commissions and
expenses capitalized		(17.0	)		(15.4	)		(17.9	)		(15.9	)		(15.0	)		11.8	%		(35.3	)		(30.9	)		12.5	%
Amortization of DAC and
VOBA, net of interest		18.7			13.6			21.1			20.8			23.6			26.2	%		38.3			44.4			15.9	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	73.9		$	70.6		$	83.4		$	77.9		$	85.1			15.2	%	$	146.4		$	163.0			11.3	%
General and Administrative Expenses -
Basis Points on Average Account
Values - Annualized (3)		71			65			68			59			64			(7	)		73			62			(11	)
DAC and VOBA
Balance as of
beginning-of-period	$	918.2		$	762.7		$	550.4		$	537.7		$	462.1					$	883.3		$	537.7
Deferrals		17.0			15.4			17.9			15.9			15.0						35.3			30.9
Amortization, net of interest:
Unlocking		0.1			7.8			0.1			(1.4	)		(3.6	)					(2.2	)		(5.0	)
Amortization, net of interest,
excluding unlocking		(18.8	)		(21.4	)		(21.2	)		(19.4	)		(20.0	)					(36.1	)		(39.4	)
Deferrals, net of amortization included
in operating underwriting,
acquisition, insurance and
other expenses		(1.7	)		1.8			(3.2	)		(4.9	)		(8.6	)					(3.0	)		(13.5	)
Amortization, net of interest, associated
with benefit ratio unlocking		(2.0	)		(1.1	)		(0.2	)		(0.4	)		0.5						(0.4	)		0.1
Adjustment related to
realized (gains) losses		5.6			2.3			0.8			0.4			(2.0	)					8.2			(1.6	)
Adjustment related to
unrealized (gains) losses		(157.4	)		(215.3	)		(10.1	)		(70.7	)		(76.8	)					(125.4	)		(147.5	)
Balance as of End-
of-Period	$	762.7		$	550.4		$	537.7		$	462.1		$	375.2					$	762.7		$	375.2
DSI
Balance as of
beginning-of-period	$	2.2		$	2.5		$	2.6		$	2.7		$	2.5					$	2.0		$	2.7
Deferrals		0.4			0.2			0.1			0.1			-						0.6			0.1
Amortization, net of interest:
Unlocking		-			0.1			-			-			-						-			-
Amortization, net of interest,
excluding unlocking		(0.1	)		(0.2	)		(0.1	)		(0.1	)		(0.1	)					(0.1	)		(0.2	)
Deferrals, net of amortization included
in operating
interest credited		0.3			0.1			-			-			(0.1	)					0.5			(0.1	)
Adjustment related to
realized (gains) losses		-			-			0.1			-			-						-			-
Adjustment related to
unrealized (gains) losses		-			-			-			(0.2	)		(0.1	)					-			(0.3	)
Balance as of End-
of-Period	$	2.5		$	2.6		$	2.7		$	2.5		$	2.3					$	2.5		$	2.3

(1)	Included in income from operations.
(2)	See note (2) on page 6 for details.
(3)	Includes distribution costs.

6/30/2010																									PAGE 21
Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of
beginning-of-period	$	11.924		$	12.070		$	12.158		$	12.246		$	12.420			4.2	%	$	11.638			12.246			5.2	%
Gross deposits		0.328			0.306			0.299			0.316			0.327			-0.3	%		0.737			0.643			-12.8	%
Withdrawals and deaths		(0.326	)		(0.327	)		(0.368	)		(0.341	)		(0.406	)		-24.5	%		(0.709	)		(0.747	)		-5.4	%
Net flows		0.002			(0.021	)		(0.069	)		(0.025	)		(0.079	)	NM				0.028			(0.104	)	NM
Transfers from variable
annuities		0.037			(0.003	)		0.044			0.090			0.130			251.4	%		0.187			0.220			17.6	%
Interest credited		0.107			0.112			0.113			0.109			0.109			1.9	%		0.217			0.218			0.5	%
Balance as of
End-of-Period	$	12.070		$	12.158		$	12.246		$	12.420		$	12.580			4.2	%	$	12.070		$	12.580			4.2	%
Variable Annuities (2)
Balance as of
beginning-of-period	$	9.721		$	11.102		$	12.620		$	12.953		$	13.250			36.3	%	$	10.588		$	12.953			22.3	%
Gross deposits		0.368			0.387			0.413			0.441			0.362			-1.6	%		0.786			0.803			2.2	%
Withdrawals and deaths		(0.416	)		(0.471	)		(0.589	)		(0.637	)		(0.527	)		-26.7	%		(0.828	)		(1.164	)		-40.6	%
Net flows		(0.048	)		(0.084	)		(0.176	)		(0.196	)		(0.165	)	NM				(0.042	)		(0.361	)	NM
Transfers to fixed
annuities		(0.019	)		0.021			(0.012	)		(0.022	)		(0.047	)	NM				(0.185	)		(0.069	)		62.7	%
Investment increase and
change in market value		1.448			1.581			0.521			0.515			(1.071	)	NM				0.741			(0.556	)	NM
Balance as of
End-of-Period	$	11.102		$	12.620		$	12.953		$	13.250		$	11.967			7.8	%	$	11.102		$	11.967			7.8	%
Total Annuities
Balance as of
beginning-of-period	$	21.645		$	23.172		$	24.778		$	25.199		$	25.670			18.6	%	$	22.226		$	25.199			13.4	%
Gross deposits		0.696			0.693			0.712			0.757			0.689			-1.0	%		1.523			1.446			-5.1	%
Withdrawals and deaths		(0.742	)		(0.798	)		(0.957	)		(0.978	)		(0.933	)		-25.7	%		(1.537	)		(1.911	)		-24.3	%
Net flows		(0.046	)		(0.105	)		(0.245	)		(0.221	)		(0.244	)	NM				(0.014	)		(0.465	)	NM
Transfers between fixed
and variable accounts		0.018			0.018			0.032			0.068			0.083		NM				0.002			0.151		NM
Interest credited and
change in market value		1.555			1.693			0.634			0.624			(0.962	)	NM				0.958			(0.338	)	NM
Balance as of
End-of-Period	$	23.172		$	24.778		$	25.199		$	25.670		$	24.547			5.9	%	$	23.172		$	24.547			5.9	%
Alliance and Smart Future Mutual Funds (3)
Balance as of
beginning-of-period	$	6.848		$	8.155		$	9.544		$	10.103		$	11.029			61.1	%	$	6.652		$	10.103			51.9	%
Plan/participant rollovers		0.071			0.057			0.086			0.103			0.267			276.1	%		0.409			0.370			-9.5	%
Additional contributions		0.363			0.353			0.360			0.447			0.418			15.2	%		0.759			0.865			14.0	%
Gross deposits		0.434			0.410			0.446			0.550			0.685			57.8	%		1.168			1.235			5.7	%
Withdrawals and deaths		(0.132	)		(0.161	)		(0.263	)		(0.220	)		(0.259	)		-96.2	%		(0.242	)		(0.479	)		-97.9	%
Net flows		0.302			0.249			0.183			0.330			0.426			41.1	%		0.926			0.756			-18.4	%
Transfers		(0.008	)		(0.003	)		(0.032	)		(0.063	)		(0.071	)	NM				(0.008	)		(0.134	)	NM
Other (4)		-			-			-			0.186			-		NM				-			0.186		NM
Interest credited and
change in market value		1.013			1.143			0.408			0.473			(0.891	)	NM				0.585			(0.418	)	NM
Balance as of
End-of-Period	$	8.155		$	9.544		$	10.103		$	11.029		$	10.493			28.7	%	$	8.155		$	10.493			28.7	%
Total Annuities and Mutual Funds
Balance as of
beginning-of-period	$	28.493		$	31.327		$	34.322		$	35.302		$	36.699			28.8	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.130			1.103			1.158			1.307			1.374			21.6	%		2.691			2.681			-0.4	%
Withdrawals and deaths		(0.874	)		(0.959	)		(1.220	)		(1.198	)		(1.192	)		-36.4	%		(1.779	)		(2.390	)		-34.3	%
Net flows		0.256			0.144			(0.062	)		0.109			0.182			-28.9	%		0.912			0.291			-68.1	%
Transfers		0.010			0.015			-			0.005			0.012			20.0	%		(0.006	)		0.017		NM
Other (4)		-			-			-			0.186			-		NM				-			0.186		NM
Interest credited and
change in market value		2.568			2.836			1.042			1.097			(1.853	)	NM				1.543			(0.756	)	NM
Balance as of
End-of-Period	$	31.327		$	34.322		$	35.302		$	36.699		$	35.040			11.9	%	$	31.327		$	35.040			11.9	%
Variable Annuities Under Agreement -
Included Above	$	0.008		$	0.009		$	0.009		$	0.009		$	0.008			0.0	%	$	0.008		$	0.008			0.0	%
Incremental Deposits (5)
Fixed annuities	$	0.327		$	0.305		$	0.298		$	0.315		$	0.325			-0.6	%	$	0.734		$	0.640			-12.8	%
Variable annuities		0.367			0.387			0.413			0.440			0.362			-1.4	%		0.784			0.802			2.3	%
Total annuities
incremental deposits		0.694			0.692			0.711			0.755			0.687			-1.0	%		1.518			1.442			-5.0	%
Total Alliance mutual funds
incremental deposits		0.434			0.410			0.446			0.550			0.686			58.1	%		1.168			1.236			5.8	%
Total Incremental
Deposits	$	1.128		$	1.102		$	1.157		$	1.305		$	1.373			21.7	%	$	2.686		$	2.678			-0.3	%

(1)	Includes fixed annuity products offered under our mutual fund products and the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Includes mutual fund account values and other third party trustee-held assets as mentioned in note (4). These items are not included in the separate accounts
	reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.
(4)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward. Effective
	January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.
(5)	Represents gross deposits reduced by transfers from other Lincoln products.

6/30/2010																									PAGE 22
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Total Micro - Small Segment
Balance as of
beginning-of-period	$	4.710		$	5.234		$	5.785		$	5.863		$	5.966			26.7	%	$	4.888		$	5.863			19.9	%
Gross deposits		0.256			0.290			0.305			0.342			0.265			3.5	%		0.562			0.607			8.0	%
Withdrawals and deaths		(0.268	)		(0.319	)		(0.420	)		(0.422	)		(0.334	)		-24.6	%		(0.534	)		(0.756	)		-41.6	%
Net flows		(0.012	)		(0.029	)		(0.115	)		(0.080	)		(0.069	)	NM				0.028			(0.149	)	NM
Transfers between fixed
and variable accounts		-			-			0.002			(0.001	)		-		NM				(0.004	)		(0.001	)		75.0	%
Investment increase and
change in market value		0.536			0.580			0.191			0.184			(0.353	)	NM				0.322			(0.169	)	NM
Balance as of
End-of-Period	$	5.234		$	5.785		$	5.863		$	5.966		$	5.544			5.9	%	$	5.234		$	5.544			5.9	%
Total Mid - Large Segment
Balance as of
beginning-of-period	$	9.920		$	11.425		$	12.972		$	13.653		$	14.767			48.9	%	$	9.540		$	13.653			43.1	%
Gross deposits		0.661			0.617			0.650			0.769			0.920			39.2	%		1.688			1.689			0.1	%
Withdrawals and deaths		(0.211	)		(0.259	)		(0.407	)		(0.350	)		(0.455	)	NM				(0.445	)		(0.805	)		-80.9	%
Net flows		0.450			0.358			0.243			0.419			0.465			3.3	%		1.243			0.884			-28.9	%
Transfers between fixed
and variable accounts		0.010			0.016			(0.001	)		0.006			0.012			20.0	%		(0.003	)		0.018		NM
Other (1)		-			-			-			0.186			-		NM				-			0.186
Investment increase and
change in market value		1.045			1.173			0.439			0.503			(0.860	)	NM				0.645			(0.357	)	NM
Balance as of
End-of-Period	$	11.425		$	12.972		$	13.653		$	14.767		$	14.384			25.9	%	$	11.425		$	14.384			25.9	%
Total Multi-Fund® and Other Variable Annuities
Balance as of
beginning-of-period	$	13.863		$	14.668		$	15.565		$	15.786		$	15.966			15.2	%	$	14.450		$	15.786			9.2	%
Gross deposits		0.213			0.196			0.203			0.196			0.189			-11.3	%		0.441			0.385			-12.7	%
Withdrawals and deaths		(0.395	)		(0.381	)		(0.393	)		(0.426	)		(0.403	)		-2.0	%		(0.800	)		(0.829	)		-3.6	%
Net flows		(0.182	)		(0.185	)		(0.190	)		(0.230	)		(0.214	)		-17.6	%		(0.359	)		(0.444	)		-23.7	%
Transfers between fixed
and variable accounts		-			(0.001	)		(0.001	)		-			-		NM				0.001			-			-100.0	%
Investment increase and
change in market value		0.987			1.083			0.412			0.410			(0.640	)	NM				0.576			(0.230	)	NM
Balance as of
End-of-Period	$	14.668		$	15.565		$	15.786		$	15.966		$	15.112			3.0	%	$	14.668		$	15.112			3.0	%
Total Annuities and Mutual Funds (2)
Balance as of
beginning-of-period	$	28.493		$	31.327		$	34.322		$	35.302		$	36.699			28.8	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.130			1.103			1.158			1.307			1.374			21.6	%		2.691			2.681			-0.4	%
Withdrawals and deaths		(0.874	)		(0.959	)		(1.220	)		(1.198	)		(1.192	)		-36.4	%		(1.779	)		(2.390	)		-34.3	%
Net flows		0.256			0.144			(0.062	)		0.109			0.182			-28.9	%		0.912			0.291			-68.1	%
Transfers between fixed
and variable accounts		0.010			0.015			-			0.005			0.012			20.0	%		(0.006	)		0.017		NM
Other (1)		-			-			-			0.186			-		NM				-			0.186
Investment increase and
change in market value		2.568			2.836			1.042			1.097			(1.853	)	NM				1.543			(0.756	)	NM
Balance as of
End-of-Period	$	31.327		$	34.322		$	35.302		$	36.699		$	35.040			11.9	%	$	31.327		$	35.040			11.9	%

(1)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward.
	Effective January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.
(2)	Includes mutual fund account values and other third party trustee-held assets as mentioned in note (1). These items are not included in the separate accounts
	reported on our Consolidated Balance Sheets, as we do not have any ownership interest in them.

6/30/2010																									PAGE 23
Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable
Contracts
Deposits	$	0.244		$	0.227		$	0.224		$	0.236		$	0.250			2.5	%	$	0.560		$	0.486			-13.2	%
Withdrawals and deaths		(0.132	)		(0.149	)		(0.201	)		(0.174	)		(0.245	)		-85.6	%		(0.316	)		(0.419	)		-32.6	%
Net flows	$	0.112		$	0.078		$	0.023		$	0.062		$	0.005			-95.5	%	$	0.244		$	0.067			-72.5	%
Fixed Contract
Account Values	$	5.879		$	6.030		$	6.139		$	6.324		$	6.466			10.0	%	$	5.879		$	6.466			10.0	%
Fixed Portion of Variable Contracts
Deposits	$	0.084		$	0.079		$	0.075		$	0.080		$	0.077			-8.3	%	$	0.177		$	0.157			-11.3	%
Withdrawals and deaths		(0.194	)		(0.178	)		(0.167	)		(0.167	)		(0.162	)		16.5	%		(0.393	)		(0.329	)		16.3	%
Net flows	$	(0.110	)	$	(0.099	)	$	(0.092	)	$	(0.087	)	$	(0.085	)		22.7	%	$	(0.216	)	$	(0.172	)		20.4	%
Fixed Portion of Variable Contract
Account Values	$	6.191		$	6.128		$	6.107		$	6.096		$	6.114			-1.2	%	$	6.191		$	6.114			-1.2	%
Variable Annuities, Including Fixed Portion of
Variable Contracts
Deposits	$	0.452		$	0.466		$	0.488		$	0.521		$	0.439			-2.9	%	$	0.963		$	0.960			-0.3	%
Withdrawals and deaths		(0.610	)		(0.649	)		(0.756	)		(0.804	)		(0.689	)		-13.0	%		(1.221	)		(1.493	)		-22.3	%
Net flows	$	(0.158	)	$	(0.183	)	$	(0.268	)	$	(0.283	)	$	(0.250	)		-58.2	%	$	(0.258	)	$	(0.533	)	NM
Variable Contract
Account Values	$	17.293		$	18.748		$	19.060		$	19.346		$	18.081			4.6	%	$	17.293		$	18.081			4.6	%
Average Daily Variable Annuity Separate
Account Values	$	10.768		$	11.881		$	12.726		$	12.909		$	12.855			19.4	%	$	10.309		$	12.882			25.0	%
																(Basis Point)									(Basis Point)
Interest Rate Spread (1)																Change									Change
Fixed maturity securities, mortgage loans on
real estate and other, net of
investment expenses (2)		5.79	%		5.85	%		5.72	%		5.71	%		5.73	%		(6)			5.74	%		5.71	%		(3)
Commercial mortgage loan prepayment and bond make-
whole premiums		0.01	%		0.08	%		0.08	%		0.01	%		0.04	%		3			0.01	%		0.03	%		2
Alternative investments		-0.02	%		0.03	%		0.02	%		0.02	%		0.02	%		4			-0.01	%		0.02	%		3
Net investment income
yield on reserves		5.78	%		5.96	%		5.82	%		5.74	%		5.79	%		1			5.74	%		5.76	%		2
Interest rate credited to
contract holders		3.73	%		3.66	%		3.63	%		3.58	%		3.51	%		(22)			3.76	%		3.55	%		(21)
Interest rate spread		2.05	%		2.30	%		2.19	%		2.16	%		2.28	%		23			1.98	%		2.21	%		23

(1)	For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by
	average invested assets on reserves. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations.
	The average crediting rate is calculated as interest credited before DSI amortization, plus the immediate annuity reserve change (included within benefits),
	divided by the average fixed account values, including the fixed portion of variable annuities.
(2)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile
	markets. The increased cash and short-term investment balances for the three months ended June 2009, September 2009, and December 2009 and the six
	months ended June 2009 reduced our yields by approximately 18 bps, 11 bps, 6 bps, and 17 bps respectively. There was no impact for the three months
	ended March and June 2010.

6/30/2010																									PAGE 24
Insurance Solutions - Life Insurance
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	93.3		$	93.5		$	115.2		$	112.3		$	107.5			15.2	%	$	183.8		$	219.8			19.6	%
Surrender charges		26.7			32.8			30.5			30.8			24.1			-9.7	%		48.3			54.9			13.7	%
Mortality assessments		320.0			317.1			317.6			317.9			325.3			1.7	%		664.1			643.2			-3.1	%
Expense assessments		103.0			144.1			127.4			128.7			125.9			22.2	%		219.5			254.6			16.0	%
Net investment income		453.3			495.3			528.2			530.1			545.0			20.2	%		951.0			1,075.1			13.0	%
Amortization of deferred loss on business
sold through reinsurance		(0.7	)		(0.7	)		1.4			-			-			100.0	%		(0.7	)		-			100.0	%
Other revenues and fees		6.6			7.0			5.6			8.0			7.7			16.7	%		12.4			15.7			26.6	%
Total Operating
Revenues		1,002.2			1,089.1			1,125.9			1,127.8			1,135.5			13.3	%		2,078.4			2,263.3			8.9	%
Operating Expenses
Interest credited		290.8			292.9			297.7			296.9			298.8			2.8	%		593.6			595.7			0.4	%
Benefits		323.0			320.7			374.6			398.9			374.2			15.9	%		678.7			773.1			13.9	%
Underwriting, acquisition, insurance
and other expenses		191.7			283.9			221.5			230.0			241.3			25.9	%		415.7			471.3			13.4	%
Total Operating
Expenses		805.5			897.5			893.8			925.8			914.3			13.5	%		1,688.0			1,840.1			9.0	%
Income from operations before
federal income tax expense		196.7			191.6			232.1			202.0			221.2			12.5	%		390.4			423.2			8.4	%
Federal income tax expense		63.8			55.1			74.5			65.3			70.0			9.7	%		115.3			135.3			17.3	%
Income from
Operations	$	132.9		$	136.5		$	157.6		$	136.7		$	151.2			13.8	%	$	275.1		$	287.9			4.7	%
Effective Tax Rate		32.4	%		28.8	%		32.1	%		32.3	%		31.6	%					29.5	%		32.0	%
Average Equity	$	8,064.5		$	8,053.3		$	8,348.8		$	8,254.0		$	8,405.0					$	8,108.1		$	8,329.5
Return on Average Equity		6.6	%		6.8	%		7.6	%		6.6	%		7.2	%					6.8	%		6.9	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	141.9		$	159.0		$	197.8		$	167.1		$	150.3			5.9	%	$	318.8		$	317.4			-0.4	%
General and
administrative expenses		109.5			112.5			122.4			106.9			112.4			2.6	%		219.7			219.3			-0.2	%
Taxes, licenses and fees		22.9			30.7			28.5			32.2			27.2			18.8	%		56.2			59.4			5.7	%
Amortization of sales
force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%		2.0			2.0			0.0	%
Total commissions and
expenses incurred		275.3			303.2			349.7			307.2			290.9			5.7	%		596.7			598.1			0.2	%
Less: commissions and
expenses capitalized		(197.5	)		(213.4	)		(264.2	)		(223.0	)		(208.2	)		-5.4	%		(422.0	)		(431.2	)		-2.2	%
Amortization of DAC and
VOBA, net of interest		113.9			194.1			136.0			145.8			158.6			39.2	%		241.0			304.4			26.3	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	191.7		$	283.9		$	221.5		$	230.0		$	241.3			25.9	%	$	415.7		$	471.3			13.4	%
General and Administrative Expenses - Basis
Points on Average Account
Values - Annualized		144			145			155			134			140			(4	)		140			137			(3	)
DAC and VOBA
Balance as of
beginning-of-period	$	7,280.9		$	6,846.9		$	6,189.4		$	6,427.9		$	6,285.0					$	7,399.4		$	6,427.9
Business sold through
reinsurance		-			-			-			-			-						(292.9	)		-
Deferrals		197.5			213.4			264.2			223.0			208.2						422.0			431.2
Amortization, net of interest:
Unlocking		(5.5	)		(52.8	)		(3.7	)		(14.7	)		(2.1	)					(18.1	)		(16.8	)
Other amortization, net of interest,
excluding unlocking		(108.4	)		(141.3	)		(132.3	)		(131.1	)		(156.5	)					(222.9	)		(287.6	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance
and other expenses		83.6			19.3			128.2			77.2			49.6						181.0			126.8
Adjustment related to
realized (gains) losses		41.1			1.7			38.3			2.5			(4.5	)					61.1			(2.0	)
Adjustment related to
unrealized (gains) losses		(558.7	)		(678.5	)		72.0			(222.6	)		(493.2	)					(501.7	)		(715.8	)
Balance as of
End-of-Period	$	6,846.9		$	6,189.4		$	6,427.9		$	6,285.0		$	5,836.9					$	6,846.9		$	5,836.9
DFEL
Balance as of
beginning-of-period	$	941.4		$	1,014.0		$	1,057.8		$	1,155.2		$	1,154.0					$	888.7		$	1,155.2
Business sold through
reinsurance		-			-			-			-			-						(11.0	)		-
Deferrals		100.3			108.2			133.8			118.3			114.1						197.2			232.4
Amortization, net of interest:
Unlocking		(0.7	)		(27.9	)		(3.0	)		(8.1	)		(6.6	)					(3.6	)		(14.7	)
Other amortization, net of interest,
excluding unlocking		(29.6	)		(37.7	)		(36.0	)		(38.5	)		(41.7	)					(61.7	)		(80.2	)
Deferrals, net of amortization included in operating
expense assessments		70.0			42.6			94.8			71.7			65.8						131.9			137.5
Adjustment related to
realized gains (losses)		2.4			0.3			3.1			0.1			(0.4	)					3.3			(0.3	)
Adjustment related to
unrealized gains (losses)		0.2			0.9			(0.5	)		(73.0	)		(113.1	)					1.1			(186.1	)
Balance as of
End-of-Period	$	1,014.0		$	1,057.8		$	1,155.2		$	1,154.0		$	1,106.3					$	1,014.0		$	1,106.3

6/30/2010																									PAGE 25
Insurance Solutions - Life Insurance
Operational Data and Account Value Roll Forwards
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	84.9		$	91.0		$	117.7		$	90.1		$	78.2			-7.9	%	$	187.5		$	168.3			-10.2	%
MoneyGuard®		14.3			18.4			23.3			18.5			23.0			60.8	%		25.4			41.5			63.4	%
Total		99.2			109.4			141.0			108.6			101.2			2.0	%		212.9			209.8			-1.5	%
VUL		7.1			6.7			13.3			7.7			9.7			36.6	%		16.1			17.4			8.1	%
COLI and BOLI (1)		4.7			14.4			20.7			6.8			10.3			119.1	%		16.3			17.1			4.9	%
Term		12.7			15.7			19.8			19.5			18.6			46.5	%		23.6			38.1			61.4	%
Total	$	123.7		$	146.2		$	194.8		$	142.6		$	139.8			13.0	%	$	268.9		$	282.4			5.0	%
First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	216.2		$	238.3		$	329.5		$	262.5		$	231.1			6.9	%	$	446.7		$	493.6			10.5	%
MoneyGuard®		94.9			122.1			154.4			122.4			153.9			62.2	%		168.0			276.3			64.5	%
Total		311.1			360.4			483.9			384.9			385.0			23.8	%		614.7			769.9			25.2	%
VUL		20.1			10.2			38.6			17.1			23.3			15.9	%		45.3			40.4			-10.8	%
COLI and BOLI (1)		16.1			33.8			46.9			11.9			23.7			47.2	%		68.1			35.6			-47.7	%
Term		12.7			15.7			19.8			19.5			18.6			46.5	%		23.6			38.1			61.4	%
Total	$	360.0		$	420.1		$	589.2		$	433.4		$	450.6			25.2	%	$	751.7		$	884.0			17.6	%
Life Insurance In Force
UL and other	$	288.632		$	289.124		$	291.879		$	292.204		$	293.013			1.5	%	$	288.632		$	293.013			1.5	%
Term insurance		238.901			242.889			248.726			254.115			259.450			8.6	%		238.901			259.450			8.6	%
Total	$	527.533		$	532.013		$	540.605		$	546.319		$	552.463			4.7	%	$	527.533		$	552.463			4.7	%
Interest-Sensitive Life (2)
Balance as of
beginning-of-period	$	27.617		$	27.709		$	27.825		$	28.192		$	28.355			2.7	%	$	27.502		$	28.192			2.5	%
Deposits		0.840			0.899			1.067			0.910			0.911			8.5	%		1.655			1.821			10.0	%
Withdrawals and deaths		(0.391	)		(0.417	)		(0.296	)		(0.367	)		(0.314	)		19.7	%		(0.749	)		(0.681	)		9.1	%
Net flows		0.449			0.482			0.771			0.543			0.597			33.0	%		0.906			1.140			25.8	%
Contract holder assessments		(0.645	)		(0.657	)		(0.698	)		(0.673	)		(0.663	)		-2.8	%		(1.276	)		(1.336	)		-4.7	%
Interest credited		0.288			0.291			0.294			0.293			0.295			2.4	%		0.577			0.588			1.9	%
Balance as of End-
of-Period (Gross)		27.709			27.825			28.192			28.355			28.584			3.2	%		27.709			28.584			3.2	%
Reinsurance ceded		(0.930	)		(0.923	)		(0.917	)		(0.911	)		(0.903	)		2.9	%		(0.930	)		(0.903	)		2.9	%
Balance as of End-of-Period
(Net of Ceded)	$	26.779		$	26.902		$	27.275		$	27.444		$	27.681			3.4	%	$	26.779		$	27.681			3.4	%
VUL
Balance as of
beginning-of-period	$	3.992		$	4.562		$	5.176		$	5.287		$	5.467			36.9	%	$	4.251		$	5.287			24.4	%
Deposits		0.180			0.174			0.233			0.167			0.152			-15.6	%		0.423			0.319			-24.6	%
Withdrawals and deaths		(0.089	)		(0.095	)		(0.243	)		(0.108	)		(0.099	)		-11.2	%		(0.232	)		(0.207	)		10.8	%
Net flows		0.091			0.079			(0.010	)		0.059			0.053			-41.8	%		0.191			0.112			-41.4	%
Contract holder assessments		(0.088	)		(0.091	)		(0.092	)		(0.090	)		(0.089	)		-1.1	%		(0.182	)		(0.179	)		1.6	%
Investment income and
change in market value		0.567			0.626			0.213			0.211			(0.404	)	NM				0.302			(0.193	)	NM
Balance as of End-
of-Period (Gross)		4.562			5.176			5.287			5.467			5.027			10.2	%		4.562			5.027			10.2	%
Reinsurance ceded		(0.719	)		(0.807	)		(0.820	)		(0.837	)		(0.743	)		-3.3	%		(0.719	)		(0.743	)		-3.3	%
Balance as of End-of-Period
(Net of Ceded)	$	3.843		$	4.369		$	4.467		$	4.630		$	4.284			11.5	%	$	3.843		$	4.284			11.5	%
Total Life Insurance
Balance as of
beginning-of-period	$	31.609		$	32.271		$	33.001		$	33.479		$	33.822			7.0	%	$	31.753		$	33.479			5.4	%
Deposits		1.020			1.073			1.300			1.077			1.063			4.2	%		2.078			2.140			3.0	%
Withdrawals and deaths		(0.480	)		(0.512	)		(0.539	)		(0.475	)		(0.413	)		14.0	%		(0.981	)		(0.888	)		9.5	%
Net flows		0.540			0.561			0.761			0.602			0.650			20.4	%		1.097			1.252			14.1	%
Contract holder assessments		(0.733	)		(0.748	)		(0.790	)		(0.763	)		(0.752	)		-2.6	%		(1.458	)		(1.515	)		-3.9	%
Investment income and
change in market value		0.855			0.917			0.507			0.504			(0.109	)	NM				0.879			0.395			-55.1	%
Balance as of End-
of-Period (Gross)		32.271			33.001			33.479			33.822			33.611			4.2	%		32.271			33.611			4.2	%
Reinsurance ceded		(1.649	)		(1.730	)		(1.737	)		(1.748	)		(1.646	)		0.2	%		(1.649	)		(1.646	)		0.2	%
Balance as of End-of-Period
(Net of Ceded)	$	30.622		$	31.271		$	31.742		$	32.074		$	31.965			4.4	%	$	30.622		$	31.965			4.4	%

											(Basis Point)						(Basis Point)
Interest-Sensitive Products Interest Rate Spreads(3)											Change						Change
Fixed maturity securities,
mortgage loans on real
estate and other, net of
investment expenses (4)	6.03	%	5.97	%	5.88	%	5.82	%	5.91	%		(12)	5.93	%	5.86	%		(7)
Commercial mortgage loan
prepayment and
bond make-whole premiums	0.06	%	0.04	%	0.07	%	0.05	%	0.07	%		1	0.03	%	0.06	%		3
Alternative investments	-0.71	%	-0.29	%	0.05	%	0.18	%	0.19	%		90	-0.38	%	0.19	%		57
Net investment income
yield on reserves	5.38	%	5.72	%	6.00	%	6.05	%	6.17	%		79	5.58	%	6.11	%		53
Interest rate credited to
contract holders	4.20	%	4.22	%	4.25	%	4.18	%	4.18	%		(2)	4.22	%	4.18	%		(4)
Interest rate spread	1.18	%	1.50	%	1.75	%	1.87	%	1.99	%		81	1.36	%	1.93	%		57
Traditional Products Interest Rate Spreads(5)
Fixed maturity securities,
mortgage loans on real
estate and other, net of
investment expenses	5.96	%	5.98	%	6.01	%	6.23	%	6.11	%		15	5.98	%	6.18	%		20
Commercial mortgage loan
prepayment and
bond make-whole premiums	0.01	%	0.01	%	0.00	%	0.00	%	0.04	%		3	0.01	%	0.02	%		1
Alternative investments	-0.01	%	0.02	%	0.01	%	0.02	%	0.01	%		2	-0.01	%	0.01	%		2
Net investment income
yield on reserves	5.96	%	6.01	%	6.02	%	6.25	%	6.16	%		20	5.98	%	6.21	%		23

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.
(3)	For the interest-sensitive life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning
	assets.  We exclude net investment income earned on investments supporting statutory surplus and reverse repurchase agreement interest expense from our yield and spread
	calculations.  The average crediting rate is calculated using interest credited on life products divided by average fixed account values.
(4)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets.  The increased
	cash and short-term investment balances for the three months ended September 2009, December 2009, March 2010 and June 2010 reduced our yields by approximately 4 bps,
	13 bps, 11 bps, 2 bps, respectively.  The increased cash and short-term investment balances for the six months ended June 2009 and June 2010 reduced yields by approximately
	6 bps and 7 bps, respectively.  There was no impact for the three months ended June 2009.
(5)	For the traditional life products, the yield on earning assets is calculated as net investment income on traditional investment portfolios divided by average earning assets.  As of
	June 30, 2010, interest-sensitive products represented approximately 87% of total interest-sensitive and traditional earning assets.

6/30/2010																									PAGE 26
Insurance Solutions - Group Protection
Income Statements and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	413.3		$	379.5		$	396.4		$	409.9		$	433.7			4.9	%	$	803.1		$	843.6			5.0	%
Mortality assessments		-			0.1			-			-			-		NM				-			-		NM
Net investment income		28.1			33.5			35.7			33.6			34.3			22.1	%		58.2			67.9			16.7	%
Other revenues and fees		1.5			1.5			1.5			1.7			2.1			40.0	%		3.0			3.8			26.7	%
Total Operating Revenues		442.9			414.6			433.6			445.2			470.1			6.1	%		864.3			915.3			5.9	%
Operating Expenses
Interest credited		0.5			0.5			0.7			0.5			0.1			-80.0	%		1.1			0.6			(0.5	)
Benefits		292.7			261.6			281.1			310.7			334.1			14.1	%		574.7			644.8			12.2	%
Underwriting, acquisition, insurance
and other expenses		98.0			99.3			105.4			101.1			101.3			3.4	%		197.3			202.4			2.6	%
Total Operating Expenses		391.2			361.4			387.2			412.3			435.5			11.3	%		773.1			847.8			9.7	%
Income from operations before federal
income tax expense		51.7			53.2			46.4			32.9			34.6			-33.1	%		91.2			67.5			-26.0	%
Federal income tax expense		18.1			18.7			16.3			11.5			11.9			-34.3	%		31.9			23.4			-26.6	%
Income
from Operations	$	33.6		$	34.5		$	30.1		$	21.4		$	22.7			-32.4	%	$	59.3		$	44.1			-25.6	%
Effective Tax Rate		35.0	%		35.2	%		35.1	%		35.0	%		34.4	%					35.0	%		34.7	%
Average Equity	$	1,047.5		$	1,056.8		$	1,061.7		$	1,075.0		$	1,107.7					$	1,031.1		$	1,091.4
Return on Average Equity		12.8	%		13.1	%		11.3	%		8.0	%		8.2	%					11.5	%		8.1	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	43.6		$	43.3		$	44.5		$	46.9		$	46.9			7.6	%	$	87.8		$	93.8			6.8	%
General and
administrative expenses		48.2			48.1			60.0			46.9			49.3			2.3	%		95.6			96.2			0.6	%
Taxes, licenses and fees		7.3			9.3			9.1			10.9			8.0			9.6	%		17.8			18.9			6.2	%
Total commissions and
expenses incurred		99.1			100.7			113.6			104.7			104.2			5.1	%		201.2			208.9			3.8	%
Less: commissions and
expenses capitalized		(12.5	)		(12.8	)		(20.8	)		(14.6	)		(13.5	)		-8.0	%		(25.7	)		(28.1	)		-9.3	%
Amortization of DAC and
VOBA, net of interest		11.4			11.4			12.6			11.0			10.6			-7.0	%		21.8			21.6			-0.9	%
Total Underwriting, Acquisition, Insurance
and Other Expenses	$	98.0		$	99.3		$	105.4		$	101.1		$	101.3			3.4	%	$	197.3		$	202.4			2.6	%
General and Administrative Expenses as a
Percentage of Premiums		11.7	%		12.7	%		15.1	%		11.4	%		11.4	%					11.9	%		11.4	%
DAC and VOBA
Balance as of
beginning-of-period	$	148.7		$	149.8		$	151.2		$	159.5		$	163.0					$	145.9		$	159.5
Deferrals		12.5			12.8			20.9			14.6			13.5						25.7			28.1
Amortization, net of interest		(11.4	)		(11.4	)		(12.6	)		(11.1	)		(10.6	)					(21.8	)		(21.7	)
Deferrals, net of amortization
included in operating
underwriting, acquisition, insurance
and other expenses		1.1			1.4			8.3			3.5			2.9						3.9			6.4
Balance as of End-
of-Period	$	149.8		$	151.2		$	159.5		$	163.0		$	165.9					$	149.8		$	165.9
Annualized Sales by Product Line
Life	$	21.1		$	31.4		$	67.2		$	24.0		$	23.4			10.9	%	$	43.8		$	47.4			8.2	%
Disability		29.3			38.5			78.3			28.8			28.2			-3.8	%		52.8			57.0			8.0	%
Dental		9.1			9.9			21.3			10.3			13.6			49.5	%		17.2			23.9			39.0	%
Total	$	59.5		$	79.8		$	166.8		$	63.1		$	65.2			9.6	%	$	113.8		$	128.3			12.7	%
Insurance Premiums by Product Line
Life	$	147.4		$	142.2		$	152.1		$	157.2		$	160.3			8.8	%	$	289.8		$	317.5			9.6	%
Disability		171.1			173.0			174.1			178.3			181.7			6.2	%		345.2			360.0			4.3	%
Dental		37.2			36.2			37.7			39.5			40.8			9.7	%		74.6			80.3			7.6	%
Other		57.6			28.1			32.5			34.9			50.9			-11.6	%		93.5			85.8			-8.2	%
Total	$	413.3		$	379.5		$	396.4		$	409.9		$	433.7			4.9	%	$	803.1		$	843.6			5.0	%
Income from Operations by Product Line
Life	$	12.5		$	16.0		$	13.3		$	3.4		$	16.1			28.8	%	$	13.2		$	19.5			47.7	%
Disability		20.7			17.3			15.6			18.6			6.6			-68.1	%		45.9			25.2			-45.1	%
Dental		(1.5	)		(0.6	)		1.1			(1.8	)		(1.4	)		6.7	%		(2.6	)		(3.2	)		-23.1	%
Other		1.9			1.8			0.1			1.2			1.4			-26.3	%		2.8			2.6			-7.1	%
Total	$	33.6		$	34.5		$	30.1		$	21.4		$	22.7			-32.4	%	$	59.3		$	44.1			-25.6	%
Loss Ratios by Product Line
Life		70.3	%		66.6	%		69.6	%		82.4	%		69.7	%					75.8	%		76.0	%
Disability		62.4	%		66.8	%		67.5	%		65.5	%		78.6	%					60.8	%		72.1	%
Dental		86.1	%		79.7	%		76.6	%		86.1	%		84.4	%					85.2	%		85.3	%
Combined Loss Ratios		68.2	%		68.1	%		69.3	%		74.8	%		75.5	%					69.5	%		75.1	%

6/30/2010																									PAGE 27
Other Operations
Unaudited (in millions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	2.7		$	0.1		$	0.4		$	(0.3	)	$	0.3			-88.9	%	$	3.5		$	-			-100.0	%
Net investment income		69.8			81.1			86.5			85.4			77.8			11.5	%		139.4			163.2			17.1	%
Amortization of deferred gain
on business sold
through reinsurance (1)		18.4			18.3			18.3			18.2			18.0			-2.2	%		36.8			36.2			-1.6	%
Other revenues and fees		5.4			2.9			4.5			5.1			6.8			25.9	%		7.2			11.9			65.3	%
Communications revenues		19.1			17.2			16.7			15.5			18.1			-5.2	%		33.9			33.6			-0.9	%
Total Operating Revenues		115.4			119.6			126.4			123.9			121.0			4.9	%		220.8			244.9			10.9	%
Operating Expenses
Interest credited		31.4			32.9			32.8			33.6			28.1			-10.5	%		82.3			61.7			-25.0	%
Benefits		36.0			36.0			79.0			34.1			35.3			-1.9	%		142.6			69.4			-51.3	%
Underwriting, acquisition, insurance
and other expenses		56.8			24.3			27.5			27.8			39.3			-30.8	%		91.8			67.1			-26.9	%
Taxes, licenses and fees		3.1			(0.9	)		(20.2	)		1.5			(2.7	)	NM				4.6			(1.2	)	NM
Interest and debt expenses		60.9			68.0			68.1			68.1			69.0			13.3	%		125.6			137.1			9.2	%
Communications expenses		13.5			13.3			12.9			13.8			14.5			7.4	%		26.4			28.3			7.2	%
Total Operating Expenses		201.7			173.6			200.1			178.9			183.5			-9.0	%		473.3			362.4			-23.4	%
Loss from operations before
federal income tax benefit		(86.3	)		(54.0	)		(73.7	)		(55.0	)		(62.5	)		27.6	%		(252.5	)		(117.5	)		53.5	%
Federal income tax benefit		(34.0	)		(21.4	)		(30.2	)		(18.4	)		(26.4	)		22.4	%		(91.7	)		(44.8	)		51.1	%
Loss From Operations	$	(52.3	)	$	(32.6	)	$	(43.5	)	$	(36.6	)	$	(36.1	)		31.0	%	$	(160.8	)	$	(72.7	)		54.8	%
Run Off Institutional Pensions Account Values -
Balance at End-of-Period	$	1.928		$	1.931		$	1.911		$	1.909		$	1.891			-1.9	%	$	1.928		$	1.891			-1.9	%
Discontinued Operations
Unaudited (in millions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Discontinued Operations Before Disposal
Income from discontinued
operations before
federal income tax expense	$	27.0		$	27.3		$	7.2		$	(16.9	)	$	4.2			-84.4	%	$	40.2		$	(12.7	)	NM
Federal income tax expense		10.8			10.3			4.1			(2.6	)		1.5			-86.1	%		16.3			(1.1	)	NM
Income (Loss) From
Discontinued Operations
Before Disposal		16.2			17.0			3.1			(14.3	)		2.7			-83.3	%		23.9			(11.6	)	NM
Disposal
Gain (loss) on disposal before
federal income tax
expense (benefit)		(237.0	)		16.7			1.0			64.8			-			100.0	%		(237.0	)		64.8			127.3	%
Federal income tax
expense (benefit)		(67.0	)		(38.3	)		-			22.6			-			100.0	%		(67.0	)		22.6			133.7	%
Gain (Loss) on Disposal		(170.0	)		55.0			1.0			42.2			-			100.0	%		(170.0	)		42.2			124.8	%
Income (Loss) From
Discontinued
Operations	$	(153.8	)	$	72.0		$	4.1		$	27.9		$	2.7			101.8	%	$	(146.1	)	$	30.6			120.9	%

(1) Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

6/30/2010																									PAGE 28
Consolidated Deposits, Net Flows and Account Balances
Unaudited (in billions)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.774		$	2.025		$	1.195		$	1.138		$	1.501			-15.4	%	$	3.135		$	2.639			-15.8	%
Defined Contribution -
fixed annuities		0.328			0.306			0.299			0.316			0.327			-0.3	%		0.737			0.643			-12.8	%
Annuities - variable annuities		0.851			1.063			1.266			1.138			1.322			55.3	%		1.678			2.460			46.6	%
Defined Contribution -
variable products (2)		0.802			0.797			0.859			0.991			1.047			30.5	%		1.954			2.038			4.3	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.840			0.899			1.067			0.910			0.911			8.5	%		1.655			1.821			10.0	%
VUL		0.180			0.174			0.233			0.167			0.152			-15.6	%		0.423			0.319			-24.6	%
Total Deposits	$	4.775		$	5.264		$	4.919		$	4.660		$	5.260			10.2	%		9.582			9.920			3.5	%
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.128		$	1.524		$	0.672		$	0.652		$	1.045			-7.4	%	$	1.724		$	1.697			-1.6	%
Defined Contribution -
fixed annuities		0.002			(0.021	)		(0.069	)		(0.025	)		(0.079	)	NM				0.028			(0.104	)	NM
Annuities - variable annuities		(0.093	)		0.086			0.146			(0.077	)		0.108			216.1	%		(0.259	)		0.031			112.0	%
Defined Contribution -
variable products (2)		0.254			0.165			0.007			0.134			0.261			2.8	%		0.884			0.395			-55.3	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.449			0.482			0.771			0.543			0.597			33.0	%		0.906			1.140			25.8	%
VUL		0.091			0.079			(0.010	)		0.059			0.053			-41.8	%		0.191			0.112			-41.4	%
Total Net Flows	$	1.831		$	2.315		$	1.517		$	1.286		$	1.985			8.4	%		3.474			3.271			-5.8	%
	As of
	June			Sept.			Dec.			March			June			%
	2009			2009			2009			2010			2010			Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)	$	17.531		$	18.717		$	18.913		$	19.031		$	19.403			10.7	%
Defined Contribution -
fixed annuities		12.070			12.158			12.246			12.420			12.580			4.2	%
Annuities - variable annuities		45.523			52.429			55.368			57.815			53.921			18.4	%
Defined Contribution -
variable products (2)		19.257			22.164			23.056			24.279			22.460			16.6	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		26.779			26.902			27.275			27.444			27.681			3.4	%
VUL		3.843			4.369			4.467			4.630			4.284			11.5	%
Total Account Balances	$	125.003		$	136.739		$	141.325		$	145.619		$	140.329			12.3	%

(1)	Includes fixed portion of variable annuities.
(2)	Includes amounts attributable to mutual fund net flows. Mutual fund account values are not included in the separate accounts reported on our Consolidated
	Balance Sheets, as we do not have any ownership interest in them.

6/30/2010																									PAGE 29
Consolidated Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2009			2009			2009			2010			2010			Change			2009			2010			Change
Net Investment Income
Available-for-sale fixed
maturity securities	$	854.6		$	904.7		$	903.4		$	905.5		$	918.2			7.4	%	$	1,679.5		$	1,823.7			8.6	%
Available-for-sale equity
securities		1.8			1.8			2.2			1.8			1.2			-33.3	%		3.5			3.0			-14.3	%
Available-for-sale VIEs'
fixed maturity securities		-			-			-			3.8			3.8		NM				-			7.6		NM
Trading securities		39.0			40.0			40.2			39.4			39.2			0.5	%		78.6			78.6			0.0	%
Mortgage loans on real estate		120.0			114.2			118.2			112.8			111.3			-7.3	%		239.2			224.1			-6.3	%
Real estate		3.5			3.6			8.1			6.6			5.4			54.3	%		7.3			12.0			64.4	%
Policy loans		42.2			41.9			43.2			42.1			43.4			2.8	%		86.5			85.5			-1.2	%
Invested cash		4.1			1.0			1.6			1.4			1.8			-56.1	%		12.4			3.2			-74.2	%
Other investments		(67.4	)		(6.7	)		36.5			22.4			26.1			138.7	%		(69.6	)		48.5			169.7	%
Investment income		997.8			1,100.5			1,153.4			1,135.8			1,150.4			15.3	%		2,037.4			2,286.2			12.2	%
Investment expense		(27.2	)		(29.2	)		(31.1	)		(29.7	)		(30.6	)		-12.5	%		(53.5	)		(60.3	)		-12.7	%
Net Investment Income	$	970.6		$	1,071.3		$	1,122.3		$	1,106.1		$	1,119.8			15.4	%	$	1,983.9		$	2,225.9			12.2	%
Average Invested Assets
(Amortized Cost)	$	71,331.0		$	73,791.1		$	74,731.7		$	75,458.8		$	76,978.3					$	70,457.1		$	76,218.6
Net investment income
yield on invested assets		5.44	%		5.81	%		6.01	%		5.86	%		5.82	%					5.63	%		5.84	%
Realized Gain (Loss) Related to Investments
Available-for-sale fixed maturity securities:
Gross gains	$	32.8		$	23.4		$	51.5		$	49.8		$	34.6			5.5	%	$	86.5		$	84.4			-2.4	%
Gross losses		(172.1	)		(165.9	)		(129.3	)		(83.6	)		(29.4	)		82.9	%		(413.4	)		(113.0	)		72.7	%
Equity securities:
Gross gains		0.5			0.5			1.5			0.1			5.4		NM				3.7			5.5			48.6	%
Gross losses		(6.0	)		(7.8	)		(10.9	)		(3.5	)		-			100.0	%		(8.7	)		(3.5	)		59.8	%
Gain (loss) on other
investments		(57.9	)		1.6			(72.0	)		(21.6	)		(8.0	)		86.2	%		(60.0	)		(29.6	)		50.7	%
Associated amortization of DAC,
VOBA, DSI, DFEL and
changes in other contract
holder funds and funds withheld
reinsurance liabilities		48.4			24.7			32.6			3.8			(7.7	)	NM				104.0			(3.9	)	NM
Total realized gain (loss)
on investments, pre-tax		(154.3	)		(123.5	)		(126.6	)		(55.0	)		(5.1	)		96.7	%		(287.9	)		(60.1	)		79.1	%
Income taxes (1)		(54.0	)		(43.3	)		(44.3	)		(19.3	)		(1.8	)		96.7	%		(100.7	)		(21.1	)		79.0	%
Total, After-Tax	$	(100.3	)	$	(80.2	)	$	(82.3	)	$	(35.7	)	$	(3.3	)		96.7	%	$	(187.2	)	$	(39.0	)		79.2	%
				As of June 30, 2010									As of December 31, 2009
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)				$	69,577.9			99.6	%				$	63,320.8			99.6	%
Fixed maturity securities (amortized cost)					66,221.3			99.5	%					63,097.0			99.4	%
Equity securities (fair value)					248.0			0.4	%					280.5			0.4	%
Equity securities (amortized cost)					357.8			0.5	%					383.7			0.6	%
% of Available-for-Sale Fixed Maturity Securities,
Based on Fair Value
Treasuries and AAA								19.8	%								19.3	%
AA or better								28.9	%								27.3	%
BB or less								5.8	%								6.9	%
General Account Investments				As of June 30, 2010									As of December 31, 2009
				Amount				% of Total					Amount				% of Total
Fixed Maturities - Security Sector:
Corporate bonds				$	50,403.0			75.3	%				$	45,860.3			75.4	%
U.S. Government bonds					209.0			0.3	%					194.2			0.3	%
Foreign government bonds					472.3			0.7	%					504.9			0.8	%
Mortgage-backed securities					11,605.9			17.3	%					11,103.3			18.3	%
State and municipal bonds					2,539.9			3.8	%					1,967.6			3.2	%
Preferred stocks - redeemable					1,160.9			1.7	%					1,188.0			2.0	%
VIEs					581.4			0.9	%					-			0.0	%
Total				$	66,972.4			100.0	%				$	60,818.3			100.0	%
	As of
Composition of Investment Portfolio	June 2009			Sept. 2009			Dec. 2009			March 2010			June 2010			% Change
Available-for-sale securities, at fair value:
Fixed maturity	$	55,049.8		$	60,666.2		$	60,818.3		$	62,880.8		$	66,391.0			20.6	%
Equity		236.3			283.0			278.4			310.0			245.9			4.1	%
VIEs' fixed maturity		-			-			-			579.5			581.4		NM
Trading securities		2,316.7			2,547.9			2,504.6			2,532.5			2,607.6			12.6	%
Mortgage loans on real estate and real estate		7,627.5			7,431.0			7,351.6			7,213.1			7,099.8			-6.9	%
Policy loans		2,896.9			2,893.0			2,897.8			2,902.8			2,901.8			0.2	%
Derivative investments		1,233.8			1,282.0			1,010.1			992.4			1,988.9			61.2	%
Other investments		1,187.1			1,079.6			1,057.2			1,046.4			1,136.8			-4.2	%
Total	$	70,548.1		$	76,182.7		$	75,918.0		$	78,457.5		$	82,953.2			17.6	%

(1)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
	financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.