ex99-3.htm

Lincoln Financial Group
Available-For-Sale ("AFS") Securities by Industry Classifications
(in millions)

	As of September 30, 2010											As of June 30, 2010
					Unrealized				%							Unrealized				%
	Amortized		Unrealized		Losses		Fair		Fair			Amortized		Unrealized		Losses		Fair		Fair
Fixed Maturity AFS Securities	Cost		Gains		and OTTI		Value		Value			Cost		Gains		and OTTI		Value		Value
Industry corporate bonds:
Financial services	$	8,420	$	633	$	127	$	8,926		12.7	%	$	8,287	$	429	$	158	$	8,558		12.8	%
Basic industry		2,411		257		19		2,649		3.8	%		2,255		187		32		2,410		3.6	%
Capital goods		3,290		366		5		3,651		5.2	%		3,328		283		27		3,584		5.4	%
Communications		3,013		366		21		3,358		4.8	%		2,913		258		26		3,145		4.7	%
Consumer cyclical		2,750		269		46		2,973		4.2	%		2,584		221		48		2,757		4.1	%
Consumer non-cyclical		7,205		964		7		8,162		11.6	%		6,859		745		3		7,601		11.3	%
Energy		4,474		580		5		5,049		7.2	%		4,391		393		56		4,728		7.1	%
Technology		1,295		161		-		1,456		2.1	%		1,220		132		-		1,352		2.0	%
Transportation		1,282		155		1		1,436		2.0	%		1,268		117		5		1,380		2.1	%
Industrial other		834		75		6		903		1.3	%		807		61		6		862		1.3	%
Utilities		9,695		1,086		20		10,761		15.3	%		9,588		800		30		10,358		15.4	%
Corporate asset-backed securities ("ABS"):
Collateralized debt obligations ("CDOs") (1)		128		16		11		133		0.2	%		129		14		15		128		0.2	%
Commercial real estate ("CRE") CDOs		47		-		19		28		0.0	%		49		-		20		29		0.0	%
Credit card (1)		834		44		6		872		1.2	%		833		37		6		864		1.3	%
Home equity		1,031		8		286		753		1.1	%		1,047		4		324		727		1.1	%
Manufactured housing		113		4		3		114		0.2	%		116		4		4		116		0.2	%
Auto loan		201		4		-		205		0.3	%		214		4		-		218		0.3	%
Other		226		26		1		251		0.4	%		228		19		2		245		0.4	%
Commercial mortgage-backed securities ("CMBS")
Non-agency backed		2,275		118		250		2,143		3.0	%		2,314		93		274		2,133		3.2	%
Collateralized mortgage and other obligations ("CMOs")
Agency backed		4,126		388		-		4,514		6.4	%		4,190		376		-		4,566		6.8	%
Non-agency backed		1,787		17		282		1,522		2.2	%		1,798		12		361		1,449		2.2	%
Mortgage pass through securities ("MPTS"):
Agency backed		3,165		148		-		3,313		4.7	%		3,273		151		-		3,424		5.1	%
Non-agency backed		2		-		-		2		0.0	%		63		1		4		60		0.1	%
Municipals:
Taxable		2,766		200		8		2,958		4.2	%		2,425		121		12		2,534		3.8	%
Tax-exempt		3		-		-		3		0.0	%		6		-		-		6		0.0	%
Government and government agencies:
United States		990		161		-		1,151		1.6	%		1,030		130		5		1,155		1.7	%
Foreign		1,416		157		6		1,567		2.2	%		1,354		99		15		1,438		2.1	%
Hybrid and redeemable preferred stock		1,523		67		142		1,448		2.1	%		1,320		22		197		1,145		1.7	%
Total fixed maturity AFS securities		65,302		6,270		1,271		70,301		100.0	%		63,889		4,713		1,630		66,972		100.0	%
Equity AFS Securities		174		35		4		205					356		17		127		246
Total AFS securities		65,476		6,305		1,275		70,506					64,245		4,730		1,757		67,218
Trading Securities (2)		2,361		389		39		2,711					2,333		326		51		2,608
Total AFS and trading securities	$	67,837	$	6,694	$	1,314	$	73,217				$	66,578	$	5,056	$	1,808	$	69,826

(1)	Includes amortized cost of $568 million ABS Credit Card assets that were reclassified from ABS credit-linked notes ("CLN") assets as a result of adopting ASU 2009-17 as of January 1, 2010. Refer to Note 4, "Variable Interest Entities," of our March 31, 2010
	Form 10-Q for further details.
(2)	Certain of our trading securities support our modified coinsurance arrangements ("Modco") and the investment results are passed directly to the reinsurers. Refer to the "Trading Securities" section of our 2009 Form 10-K for further details.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of September 30, 2010
(in millions)

	Prime Agency				Prime/Non-Agency				Alt-A				Subprime				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMOs and MPTS	$	7,827	$	7,291	$	1,029	$	1,186	$	495	$	603	$	-	$	-	$	9,351	$	9,080
ABS home equity		5		5		-		-		283		364		465		662		753		1,031
Total by type (1)(2)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111

Rating
AAA	$	7,815	$	7,281	$	283	$	285	$	131	$	139	$	198	$	206	$	8,427	$	7,911
AA		-		-		32		38		96		109		33		35		161		182
A		17		15		9		10		55		61		16		25		97		111
BBB		-		-		50		56		7		7		32		49		89		112
BB and below		-		-		655		797		489		651		186		347		1,330		1,795
Total by rating (1)(2)(3)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111

Origination Year
2004 and prior	$	2,578	$	2,392	$	300	$	319	$	292	$	328	$	230	$	283	$	3,400	$	3,322
2005		903		821		190		230		227		281		173		240		1,493		1,572
2006		282		258		207		225		209		283		60		136		758		902
2007		1,197		1,072		332		412		50		75		-		-		1,579		1,559
2008		314		288		-		-		-		-		-		-		314		288
2009		1,495		1,433		-		-		-		-		2		3		1,497		1,436
2010		1,063		1,032		-		-		-		-		-		-		1,063		1,032
Total by origination year (1)(2)	$	7,832	$	7,296	$	1,029	$	1,186	$	778	$	967	$	465	$	662	$	10,104	$	10,111

(1)	Does not include fair value of trading securities totaling $290 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $290 million in trading securities consisted of
	$260 million prime, $17 million Alt-A and $13 million subprime.
(2)	Does not include amortized cost of trading securities totaling $287 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $287 million in trading securities consisted of $251 million prime, $20 million Alt-A and $16 million subprime.
(3)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch Ratings ("Fitch"), Moody's Investors Service ("Moody's") and Standard & Poor's ("S&P")) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of September 30, 2010
(in millions)

Prime Agency and Non-Agency

	AAA (3)				AA (3)				A(3)				BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	2,823	$	2,643	$	27	$	33	$	26	$	25	$	1	$	2	$	1	$	8	$	2,878	$	2,711
2005		909		827		-		-		-		-		49		54		135		170		1,093		1,051
2006		296		271		5		5		-		-		-		-		188		207		489		483
2007		1,198		1,072		-		-		-		-		-		-		331		412		1,529		1,484
2008		314		288		-		-		-		-		-		-		-		-		314		288
2009		1,495		1,433		-		-		-		-		-		-		-		-		1,495		1,433
2010		1,063		1,032		-		-		-		-		-		-		-		-		1,063		1,032
Total by origination year (1)(2)	$	8,098	$	7,566	$	32	$	38	$	26	$	25	$	50	$	56	$	655	$	797	$	8,861	$	8,482

Alt-A

	AAA (3)				AA (3)					A(3)			BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	125	$	127	$	87	$	99	$	45	$	50	$	7	$	7	$	28	$	45	$	292	$	328
2005		6		12		-		-		10		11		-		-		211		258		227		281
2006		-		-		9		10		-		-		-		-		200		273		209		283
2007		-		-		-		-		-		-		-		-		50		75		50		75
Total by origination year (1)(2)	$	131	$	139	$	96	$	109	$	55	$	61	$	7	$	7	$	489	$	651	$	778	$	967

Subprime

	AAA (3)				AA (3)					A(3)			BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	153	$	157	$	28	$	30	$	8	$	17	$	2	$	6	$	39	$	73	$	230	$	283
2005		45		49		5		5		8		8		30		43		85		135		173		240
2006		-		-		-		-		-		-		-		-		60		136		60		136
2009		-		-		-		-		-		-		-		-		2		3		2		3
Total by origination year (1)(2)	$	198	$	206	$	33	$	35	$	16	$	25	$	32	$	49	$	186	$	347	$	465	$	662

(1)

Does not include fair value of trading securities totaling $290 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $290 million in trading securities consisted of

$260 million prime, $17 million Alt-A and $13 million subprime.

(2)

Does not include amortized cost of trading securities totaling $287 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $287 million in trading securities

consisted of $251 million prime, $20 million Alt-A and $16 million subprime.

(3)

Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody's and S&P) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the

major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Consumer Loan ABS
As of September 30, 2010
(in millions)

	Credit Card (1)				Auto Loans				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
Rating
AAA	$	846	$	808	$	205	$	201	$	1,051	$	1,009
BBB		26		26		-		-		26		26
Total by rating (1)(2)(3)	$	872	$	834	$	205	$	201	$	1,077	$	1,035

(1)

Includes amortized cost of $568 million ABS Credit Card assets that were reclassified from ABS CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010. Refer to Note 4, "Variable Interest Entities," of our March 31, 2010 Form 10-Q for further

details.

(2)

Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody’s and S&P) or are based on internal ratings for those securities where external ratings are not available. For securities where the ratings assigned by the major

rating agencies are not equivalent, the second highest of the three ratings assigned is used.

(3)

Does not include the fair value of trading securities totaling $3 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $3 million in trading securities consisted of

credit card securities.

Lincoln Financial Group
AFS Securities Backed by Pools of Commercial Mortgages
As of September 30, 2010
(in millions)

	Multiple Property				Single Property				CRE CDOs				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMBS	$	2,069	$	2,163	$	74	$	112	$	-	$	-	$	2,143	$	2,275
CRE CDOs		-		-		-		-		28		47		28		47
Total by type (1)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322

Rating
AAA	$	1,429	$	1,330	$	28	$	27	$	-	$	-	$	1,457	$	1,357
AA		269		267		8		10		-		-		277		277
A		136		142		13		13		5		6		154		161
BBB		101		113		6		6		15		18		122		137
BB and below		134		311		19		56		8		23		161		390
Total by rating (1)(2)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322

Origination Year
2004 and prior	$	1,335	$	1,339	$	43	$	44	$	8	$	9	$	1,386	$	1,392
2005		384		399		29		60		12		15		425		474
2006		150		209		2		8		8		23		160		240
2007		153		170		-		-		-		-		153		170
2010		47		46		-		-		-		-		47		46
Total by origination year (1)	$	2,069	$	2,163	$	74	$	112	$	28	$	47	$	2,171	$	2,322

	AAA (2)				AA (2)				A (2)				BBB (2)				BB & Below (2)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	974	$	927	$	237	$	238	$	76	$	81	$	28	$	30	$	71	$	116	$	1,386	$	1,392
2005		324		292		19		20		6		6		38		49		38		107		425		474
2006		84		75		11		9		8		7		25		27		32		122		160		240
2007		75		63		10		10		17		21		31		31		20		45		153		170
2010		-		-		-		-		47		46		-		-		-		-		47		46
Total by origination year (1)	$	1,457	$	1,357	$	277	$	277	$	154	$	161	$	122	$	137	$	161	$	390	$	2,171	$	2,322

(1)

Does not include the fair value of trading securities totaling $75 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $75 million in trading securities consisted of

$72 million CMBS and $3 million CRE CDOs.

(2)

rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
Commercial Mortgage Loan Portfolio, Net of Reserves
As of September 30, 2010
(in millions)

Property Type	Carrying Value		%			State Exposure	Carrying Value		%
Office building	$	2,330		34.3	%	CA	$	1,443		21.2	%
Industrial		1,818		26.7	%	TX		598		8.8	%
Retail		1,597		23.5	%	MD		427		6.3	%
Apartment		637		9.4	%	FL		314		4.6	%
Hotel/Motel		192		2.8	%	VA		309		4.5	%
Mixed use		131		1.9	%	TN		291		4.3	%
Other commercial		94		1.4	%	WA		278		4.1	%
Total	$	6,799		100.0	%	AZ		264		3.9	%
						NC		255		3.8	%
						GA		233		3.4	%
	Carrying					IL		217		3.2	%
Geographic Region	Value		%			PA		199		2.9	%
Pacific	$	1,825		26.9	%	NV		189		2.8	%
South Atlantic		1,672		24.6	%	OH		187		2.8	%
Mountain		641		9.4	%	IN		159		2.3	%
East North Central		641		9.4	%	MN		147		2.2	%
West South Central		631		9.3	%	NJ		135		2.0	%
Middle Atlantic		430		6.3	%	SC		120		1.8	%
East South Central		415		6.1	%	MA		116		1.7	%
West North Central		378		5.6	%	OR		104		1.5	%
New England		166		2.4	%	Other states under 2%		814		11.9	%
Total	$	6,799		100.0	%	Total	$	6,799		100.0	%

	Lincoln Financial Group
	Exposure to Monoline Insurers
	As of September 30, 2010
	(in millions)

										Total
						Total		Total		Unrealized		Total
		Direct		Insured		Amortized		Unrealized		Loss		Fair
		Exposure (1)		Bonds (2)		Cost		Gain		and OTTI		Value
Monoline Name
AMBAC		$	-	$	241	$	241	$	6	$	51	$	196
ASSURED GUARANTY LTD			30		-		30		-		18		12
FGIC			-		84		84		2		24		62
FSA			-		47		47		1		1		47
MBIA			12		145		157		19		13		163
MGIC			-		5		5		-		-		5
PMI GROUP INC			24		-		24		-		7		17
RADIAN GROUP INC			16		-		16		-		2		14
XL CAPITAL LTD			72		63		135		3		9		129
Total by Monoline insurer (3)		$	154	$	585	$	739	$	31	$	125	$	645

(1)	Additional direct exposure through credit default swaps with a notional value totaling $20 million is excluded from this table.
(2)	Additional indirect insured exposure through structured securities is excluded from this table.
(3)	Does not include the fair value of trading securities totaling $32 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $32 million in trading securities consisted
	of $12 million of direct exposure and $20 million of insured exposure. This table also excludes insured exposure totaling $11 million for a guaranteed investment tax credit partnership.