Lincoln Financial Group
Table of Contents
Fourth 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 (Loss)	7
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL	8
Consolidating Statements of Income (Loss) from Operations - Current Year - Quarter	9
Consolidating Statements of Income (Loss) from Operations - Prior Year - Quarter	10
Consolidating Statements of Income (Loss) from Operations - Current Year - Year-to-Date	11
Consolidating Statements of Income (Loss) 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 (Loss) from Operations and Operational Data	15
DAC, VOBA, DSI and DFEL 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 (Loss) from Operations, 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 (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards	24
Additional Operational Data	25
Account Value Roll Forwards	26
Group Protection:
Income (Loss) from Operations and Operational Data	27
Other Operations	28
Discontinued Operations	28
Consolidated Deposits, Net Flows and Account Balances	29
Consolidated Investment Data	30

12/31/2010
Lincoln Financial Group Analyst Coverage
Fourth Quarter 2010
Firm	Analyst	Phone Number
Bank of America - Merrill Lynch	Ed Spehar	212-449-4245
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 Giovanni	212-357-3560
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

12/31/2010				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 Financial Accounting Standards Board
			("FASB") Accounting Standars Codification ("ASC") (“embedded derivative reserves”), net of the change in the fair value of the derivatives
			we own to hedge the changes in the embedded derivative reserves, the net of which is referred to as “GLB net derivative results”; 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 the acceleration of our Series B preferred
stock discount as a result of redemption 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 equity measures how efficiently we generate profits from the resources provided by our net assets.  Return on equity is calculated
		by dividing annualized net income (loss) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").  Management
		evaluates return on equity by both including and excluding average goodwill within average equity.
	•	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, return on equity (including and excluding average goodwill within average equity), excluding AOCI,
using annualized income (loss) from operations 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.  In addition, we believe that our definitions of operating revenues and income (loss) from operations
will provide investors with a more valuable measure of our performance because it better reveals trends in our business.
	•	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 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.

12/31/2010																						PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)
	For the Three Months Ended December 31,												For the Years Ended December 31,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Income (Loss) from Operations - By Segment
Annuities	$	123.2		$	119.7		$	3.5			2.9	%	$	484.4		$	353.5		$	130.9			37.0	%
Defined Contribution		32.5			33.3			(0.8	)		-2.4	%		154.3			133.4			20.9			15.7	%
Total Retirement Solutions		155.7			153.0			2.7			1.8	%		638.7			486.9			151.8			31.2	%
Life Insurance		165.5			157.6			7.9			5.0	%		513.3			569.2			(55.9	)		-9.8	%
Group Protection		18.0			30.1			(12.1	)		-40.2	%		71.6			123.9			(52.3	)		-42.2	%
Total Insurance Solutions		183.5			187.7			(4.2	)		-2.2	%		584.9			693.1			(108.2	)		-15.6	%
Other Operations		(73.7	)		(43.5	)		(30.2	)		-69.4	%		(186.1	)		(236.9	)		50.8			21.4	%
Income (Loss) from Operations (1)		265.5			297.2			(31.7	)		-10.7	%		1,037.5			943.1			94.4			10.0	%
Excluded realized gain (loss), after-tax  (2) (3)		(77.8	)		(98.3	)		20.5			20.9	%		(95.1	)		(779.8	)		684.7			87.8	%
Benefit ratio unlocking, after-tax (2) (3)		10.7			7.6			3.1			40.8	%		10.4			88.8			(78.4	)		-88.3	%
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (3)		0.3			0.5			(0.2	)		-40	%		1.7			1.7			-			0.0	%
Gain (loss) on early extinguishment of debt, after-tax (3)		(3.1	)		-			(3.1	)	NM				(3.1	)		41.8			(44.9	)	NM
Impairment of intangibles, after-tax (3)		-			(108.8	)		108.8			100.0	%		-			(710.3	)		710.3			100.0	%
Income (loss) from discontinued operations, after-tax (4)		-			4.1			(4.1	)		-100.0	%		28.9			(70.0	)		98.9			141.3	%
Net Income (Loss)		195.6			102.3			93.3			91.2	%		980.3			(484.7	)		1,465.0		NM
Preferred stock dividends and accretion of discount		-			(18.2	)		18.2			100.0	%		(36.7	)		(34.5	)		(2.2	)		-6.4	%
Write-off of unamortized discount on preferred stock at liquidation		-			-			-		NM				(130.6	)		-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (5)		-			-			-		NM				(1.3	)		-			(1.3	)	NM
Minority interest adjustment (6)		-			-			-		NM				-			(0.1	)		0.1			100.0	%
Net Income (Loss) Available to Common Stockholders - Diluted	$	195.6		$	84.1		$	111.5			132.6	%	$	811.7		$	(519.3	)	$	1,331.0			256.3	%
Earnings Per Common Share - Diluted
Income (loss) from operations (1) (7)	$	0.82		$	0.90		$	(0.08	)		-8.9	%	$	3.13		$	3.18		$	(0.05	)		-1.6	%
Excluded realized gain (loss), after-tax  (2) (3) (7)		(0.24	)		(0.31	)		0.07			22.6	%		(0.31	)		(2.78	)		2.48			89.2	%
Benefit ratio unlocking, after-tax (2) (3) (7)		0.03			0.02			0.01			50.0	%		0.03			0.32			(0.28	)		-87.5	%
Income from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (3) (6)		-			-			-		NM				0.01			0.01			-			-
Gain (loss) on early extinguishment of debt, after-tax (3) (7)		(0.01	)		-			(0.01	)	NM				(0.01	)		0.15			(0.16	)	NM
Impairment of intangibles, after-tax (3) (7)		-			(0.35	)		0.35			100.0	%		-			(2.54	)		2.54			100.0	%
Write-off of unamortized discount on preferred stock at liquidation (7)		-			-			-		NM				(0.41	)		-			(0.41	)	NM
Income (loss) from discontinued operations, after-tax  (4) (7)		-			0.01			(0.01	)		-100.0	%		0.09			(0.25	)		0.34			136.3	%
Adjustment attributable to using different average diluted shares for income from operations as compared to net income (7)		-			-			-		NM				-			0.06			(0.06	)		-100.0	%
Net Income (Loss)	$	0.60		$	0.27		$	0.33			122.2	%	$	2.54		$	(1.85	)	$	4.39			237.3	%
Operating Revenues - By Segment
Annuities	$	719.9		$	628.9		$	91.0			14.5	%	$	2,654.7		$	2,301.3		$	353.4			15.4	%
Defined Contribution		257.3			243.7			13.6			5.6	%		987.7			926.3			61.4			6.6	%
Total Retirement Solutions		977.2			872.6			104.6			12.0	%		3,642.4			3,227.6			414.8			12.9	%
Life Insurance		1,217.4			1,126.3			91.1			8.1	%		4,589.6			4,295.3			294.3			6.9	%
Group Protection		464.3			433.6			30.7			7.1	%		1,831.1			1,712.5			118.6			6.9	%
Total Insurance Solutions		1,681.7			1,559.9			121.8			7.8	%		6,420.7			6,007.8			412.9			6.9	%
Other Operations		121.6			125.9			(4.3	)		-3.4	%		487.2			464.9			22.3			4.8	%
Total Operating Revenues		2,780.5			2,558.4			222.1			8.7	%		10,550.3			9,700.3			850.0			8.8	%
Excluded realized gain (loss), pre-tax (2)		(119.8	)		(156.6	)		36.8			23.5	%		(146.3	)		(1,199.9	)		1,053.6			87.8	%
Amortization income of DFEL associated with benefit ratio unlocking, pre-tax		0.5			-			0.5		NM				(0.1	)		(4.2	)		4.1			97.6	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.6			0.6			-			-			2.6			2.6			-			0.0	%
Total Revenues	$	2,661.8		$	2,402.4		$	259.4			10.8	%	$	10,406.5		$	8,498.8		$	1,907.7			22.4	%

(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 28 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.

12/31/2010																						PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)
	For the Three Months Ended December 31,												For the Years Ended December 31,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Retirement Solutions - Annuities
Gross deposits	$	2.590		$	2.461		$	0.129			5.2	%	$	10.667		$	10.362		$	0.305			2.9	%
Net flows		0.543			0.818			(0.275	)		-33.6	%		3.555			3.893			(0.338	)		-8.7	%
Account values (gross)		85.810			75.308			10.502			13.9	%		85.810			75.308			10.502			13.9	%
Account values (net of reinsurance)		84.848			74.281			10.567			14.2	%		84.848			74.281			10.567			14.2	%
Retirement Solutions - Defined Contribution
Gross deposits (1)	$	1.358		$	1.158		$	0.200			17.3	%	$	5.301		$	4.952		$	0.349			7.0	%
Net flows		(0.304	)		(0.062	)		(0.242	)	NM				(0.291	)		0.995			(1.286	)	NM
Account values - annuities		26.706			25.199			1.507			6.0	%		26.706			25.199			1.507			6.0	%
Alliance and Smart Future mutual funds		12.118			10.103			2.015			19.9	%		12.118			10.103			2.015			19.9	%
Total annuities and mutual fund account values		38.824			35.302			3.522			10.0	%		38.824			35.302			3.522			10.0	%
Insurance Solutions - Life Insurance
Sales (in millions)	$	205.8		$	194.8		$	11.0			5.6	%	$	636.6		$	609.9		$	26.7			4.4	%
Life insurance in force		562.991			540.605			22.386			4.1	%		562.991			540.605			22.386			4.1	%
Gross deposits		1.564			1.300			0.264			20.3	%		4.934			4.451			0.483			10.9	%
Net flows		1.080			0.761			0.319			41.9	%		3.057			2.419			0.638			26.4	%
Account values (net of reinsurance)		33.585			31.742			1.843			5.8	%		33.585			31.742			1.843			5.8	%
Insurance Solutions - Group Protection
Annualized sales (in millions)	$	156.0		$	166.8		$	(10.8	)		-6.5	%	$	352.7		$	360.4		$	(7.7	)		-2.1	%
Loss ratio (2)		75.5	%		69.3	%	NM			NM				76.2	%		69.1	%	NM			NM
Consolidated
Total deposits	$	5.512		$	4.919		$	0.593			12.1	%	$	20.902		$	19.765		$	1.137			5.8	%
Total account balances		157.257			141.325			15.932			11.3	%		157.257			141.325			15.932			11.3	%
Total net flows		1.319			1.517			(0.198	)		-13.1	%		6.321			7.307			(0.986	)		-13.5	%

(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.

12/31/2010																						PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)
	For the Three Months Ended December 31,												For the Years Ended December 31,
							Change												Change
	2010			2009			Amount			%			2010			2009			Amount			%
Balance Sheet Assets - End-of-Period	$	193,823.7		$	177,433.3		$	16,390.4			9.2	%	$	193,823.7		$	177,433.3		$	16,390.4			9.2	%
Stockholders' Equity
Beginning-of-period, including AOCI	$	13,557.5		$	11,655.5		$	1,902.0			16.3	%	$	11,700.2		$	7,976.8		$	3,723.4			46.7	%
End-of-period, including AOCI		12,805.8			11,700.2			1,105.6			9.4	%		12,805.8			11,700.2			1,105.6			9.4	%
End-of-period, excluding AOCI		12,058.1			11,961.6			96.5			0.8	%		12,058.1			11,961.6			96.5			0.8	%
Average equity, excluding AOCI		11,977.1			11,918.8			58.3			0.5	%		11,917.9			11,082.0			835.9			7.5	%
Return on Equity, Excluding AOCI
Income (loss) from operations with average equity:
Including goodwill		8.9	%		10.0	%								8.7	%		8.5	%
Excluding goodwill		11.9	%		13.4	%								11.7	%		11.9	%
Return on Capital
Income (loss) from operations/average capital		7.0	%		7.9	%								6.9	%		6.7	%
Common Shares Outstanding
Average for the period - basic		316.4			301.9			14.5			4.8	%		310.0			280.0			30.0			10.7	%
Average for the period - diluted		323.4			311.6			11.8			3.8	%		319.2			285.6			33.6			11.8	%
End-of-period - assuming conversion of preferreds (1)		315.9			302.4			13.5			4.5	%		315.9			302.4			13.5			4.5	%
End-of-period - diluted		324.0			311.8			12.2			3.9	%		324.0			311.8			12.2			3.9	%
Book value per common share, including AOCI (2)	$	40.54		$	36.02		$	4.52			12.5	%	$	40.54		$	36.02		$	4.52			12.5	%
Book value per common share, excluding AOCI (2)		38.17			36.89			1.28			3.5	%		38.17			36.89			1.28			3.5	%
Cash Returned to Common Stockholders
Warrant repurchase - dollar amount	$	-		$	-		$	-		NM			$	48.13		$	-		$	48.13		NM
Share repurchase - dollar amount		25.00			-			25.00		NM				25.00			-			25.00		NM
Common dividends declared		15.80			3.00			12.80		NM				25.20			11.60			13.60			117.2	%
Total Cash Returned to Common Stockholders	$	40.80		$	3.00		$	37.80		NM			$	98.33		$	11.60		$	86.73		NM
Stock issuance - number of shares		-			-			-		NM				14.14			46.00			(31.86	)		-69.3	%
Share repurchase - number of shares		1.05			-			1.05		NM				1.05			-			1.05		NM
Dividend declared on common stock - per share	$	0.050		$	0.010		$	0.040		NM			$	0.080		$	0.040		$	0.040			100.0	%
Dividend payout ratio		8.3	%		3.7	%								3.1	%		-2.2	%
Annualized yield (3)		0.7	%		0.2	%								0.3	%		0.2	%
Comprehensive Income (Loss)
Net income (loss)	$	195.6		$	102.3		$	93.3			91.2	%	$	980.3		$	(484.7	)	$	1,465.0		NM
Net unrealized gain (loss) on available-for-sale securities		(988.3	)		(77.5	)		(910.8	)	NM				1,022.4			2,703.9			(1,681.5	)		-62.2	%
Unrealized other-than-temporary impairment on available-for-sale securities		2.8			6.7			(3.9	)		-58.2	%		(13.8	)		(115.1	)		101.3			88.0	%
Net unrealized gain (loss) on derivative instruments		46.0			0.7			45.3		NM				(25.9	)		(115.7	)		89.8			77.6	%
Foreign currency translation adjustment		(1.8	)		(65.3	)		63.5			97.2	%		(2.3	)		(3.3	)		1.0			30.3	%
Funded status of employee benefit plans		27.5			94.4			(66.9	)		-70.9	%		28.7			72.2			(43.5	)		-60.2	%
Comprehensive Income (Loss)	$	(718.2	)	$	61.3		$	(779.5	)	NM			$	1,989.4		$	2,057.3		$	(67.9	)		-3.3	%
	As of December 31,
							Change
		2010			2009		Amount			%
Leverage Ratio
Short-term debt	$	351.4		$	349.9		$	1.5			0.4	%
Long-term debt		5,399.0			5,050.4			348.6			6.9	%
Total debt		5,750.4			5,400.3			350.1			6.5	%
Add:
Series B preferred stock liquidation value		-			950.0			(950.0	)		-100.0	%
Less:
Senior notes (4)		872.2			373.2			499.0			133.7	%
75% of capital securities		1,114.1			1,113.8			0.2			0.0	%
Carrying value of fair value hedge		55.3			53.9			1.5			2.7	%
Total numerator	$	3,708.8		$	4,809.4		$	(1,100.6	)		-22.9	%
Stockholders' equity, excluding AOCI	$	12,058.1		$	11,961.6		$	96.5			0.8	%
Total debt		5,750.4			5,400.3			350.1			6.5	%
Total denominator	$	17,808.5		$	17,361.9		$	446.6			2.6	%
Leverage Ratio		20.8	%		27.7	%
	Ratings as of February 2, 2011
										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)	These computations exclude Series B preferred stock balances as it is non-convertible.
(3)	Indicated dividend divided by the closing price.
(4)	Excludes the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain on increasing AG38 and XXX statutory reserves associated with secondary guarantee
	UL and term policies.

12/31/2010																									PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Commissions	$	421.2		$	379.7		$	390.0		$	408.3		$	437.1			3.8	%	$	1,543.3		$	1,615.1			4.7	%
General and Administrative Expenses
General and administrative expenses		350.2			307.0			330.1			336.2			440.0			25.6	%		1,280.3			1,413.3			10.4	%
Expenses associated with reserve financing and unrelated letters of credit ("LOCs")		1.5			3.8			8.1			12.4			9.7		NM				6.4			34.0		NM
Merger-related expenses		2.8			2.3			2.2			2.4			1.9			-32.1	%		16.4			8.8			-46.3	%
Total General and Administrative Expenses, Excluding Broker-Dealer		354.5			313.1			340.4			351.0			451.6			27.4	%		1,303.1			1,456.1			11.7	%
Communications expenses		12.9			13.8			14.5			14.9			16.0			24.0	%		52.5			59.2			12.8	%
Restructuring charges (recoveries) for expense initiatives		0.3			-			-			-			(1.2	)	NM				34.6			(1.2	)	NM
Taxes, licenses and fees		24.3			57.5			41.7			47.8			53.3			119.3	%		170.1			200.3			17.8	%
Interest and debt expense		68.1			68.1			69.0			74.5			74.3			9.1	%		261.7			285.9			9.2	%
Total Commissions and Expenses Incurred		881.3			832.2			855.6			896.5			1,031.1			17.0	%		3,365.3			3,615.4			7.4	%
Less: Commissions and Expenses Capitalized		(460.0	)		(385.1	)		(401.2	)		(412.1	)		(468.3	)		-1.8	%		(1,651.4	)		(1,666.7	)		-0.9	%
Total Expenses Incurred, Excluding Amortization and Broker-Dealer Expenses		421.3			447.1			454.4			484.4			562.8			33.6	%		1,713.9			1,948.7			13.7	%
Amortization
Amortization of DAC and VOBA, net of interest		260.9			258.1			296.9			194.3			332.5			27.4	%		1,041.7			1,081.8			3.8	%
Amortization of intangibles		1.0			1.0			1.1			1.0			1.1			10.0	%		4.2			4.2			0.0	%
Total Amortization		261.9			259.1			298.0			195.3			333.6			27.4	%		1,045.9			1,086.0			3.8	%
Broker-Dealer Commissions and Other Expenses		81.1			73.6			77.3			77.6			87.2			7.5	%		288.0			315.7			9.6	%
Total	$	764.3		$	779.8		$	829.7		$	757.3		$	983.6			28.7	%	$	3,047.8		$	3,350.4			9.9	%
Merger-Related Expenses (1)
Severance and employee-related charges	$	0.5		$	0.2		$	0.3		$	0.3		$	0.3			-40.0	%	$	2.1		$	1.1			-47.6	%
Systems integration and related expenses		1.4			2.0			1.7			2.0			1.5			7.1	%		10.6			7.2			-32.1	%
Other expenses		0.9			0.1			0.2			0.1			0.1			-88.9	%		3.8			0.5			-86.8	%
Total Merger-Related Expenses	$	2.8		$	2.3		$	2.2		$	2.4		$	1.9			-32.1	%	$	16.5		$	8.8			-46.7	%

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

12/31/2010																									PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Annuities	$	628.9		$	629.9		$	644.6		$	660.3		$	719.9			14.5	%	$	2,301.3		$	2,654.7			15.4	%
Defined Contribution		243.7			240.5			245.3			244.6			257.3			5.6	%		926.3			987.7			6.6	%
Total Retirement Solutions		872.6			870.4			889.9			904.9			977.2			12.0	%		3,227.6			3,642.4			12.9	%
Life Insurance		1,126.3			1,128.3			1,136.0			1,107.9			1,217.4			8.1	%		4,295.3			4,589.6			6.9	%
Group Protection		433.6			445.2			470.1			451.5			464.3			7.1	%		1,712.5			1,831.1			6.9	%
Total Insurance Solutions		1,559.9			1,573.5			1,606.1			1,559.4			1,681.7			7.8	%		6,007.8			6,420.7			6.9	%
Other Operations		125.9			123.4			120.6			121.6			121.6			-3.4	%		464.9			487.2			4.8	%
Total Operating Revenues		2,558.4			2,567.3			2,616.6			2,585.9			2,780.5			8.7	%		9,700.3			10,550.3			8.8	%
Excluded realized gain (loss), pre-tax (1)		(156.6	)		(40.9	)		(11.1	)		25.5			(119.8	)		23.5	%		(1,199.9	)		(146.3	)		87.8	%
Amortization of DFEL associated with benefit ratio unlocking, pre-tax		-			0.3			(1.6	)		0.7			0.5		NM				(4.2	)		(0.1	)		97.6	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.6			0.7			0.6			0.7			0.6			0.0	%		2.6			2.6			0.0	%
Total Revenues	$	2,402.4		$	2,527.4		$	2,604.5		$	2,612.8		$	2,661.8			10.8	%	$	8,498.8		$	10,406.5			22.4	%
Income (Loss) from Operations
Annuities	$	119.7		$	118.7		$	116.4		$	126.1		$	123.2			2.9	%	$	353.5		$	484.4			37.0	%
Defined Contribution		33.3			35.9			36.0			49.9			32.5			-2.4	%		133.4			154.3			15.7	%
Total Retirement Solutions		153.0			154.6			152.4			176.0			155.7			1.8	%		486.9			638.7			31.2	%
Life Insurance		157.6			136.7			151.2			59.9			165.5			5.0	%		569.2			513.3			-9.8	%
Group Protection		30.1			21.4			22.7			9.5			18.0			-40.2	%		123.9			71.6			-42.2	%
Total Insurance Solutions		187.7			158.1			173.9			69.4			183.5			-2.2	%		693.1			584.9			-15.6	%
Other Operations		(43.5	)		(36.6	)		(36.1	)		(39.7	)		(73.7	)		-69.4	%		(236.9	)		(186.1	)		21.4	%
Income (Loss) from Operations		297.2			276.1			290.2			205.7			265.5			-10.7	%		943.1			1,037.5			10.0	%
Excluded realized gain (loss), after-tax (1) (2)		(98.3	)		(26.5	)		(7.3	)		16.5			(77.8	)		20.9	%		(779.8	)		(95.1	)		87.8	%
Benefit ratio unlocking, after-tax (1) (2)		7.6			5.5			(30.9	)		25.1			10.7			40.8	%		88.8			10.4			-88.3	%
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (2)		0.5			0.4			0.5			0.5			0.3			-40.0	%		1.7			1.7			0.0	%
Gain (loss) on early extinguishment of debt, after-tax (2)		-			-			-			-			(3.1	)	NM				41.8			(3.1	)	NM
Impairment of intangibles, after-tax (2)		(108.8	)		-			-			-			-			100.0	%		(710.3	)		-			100.0	%
Income (loss) from discontinued operations, after-tax (3)		4.1			27.9			2.7			(1.7	)		-			-100.0	%		(70.0	)		28.9			141.3	%
Net Income (Loss)		102.3			283.4			255.2			246.1			195.6			91.2	%		(484.7	)		980.3		NM
Preferred stock dividends and accretion of discount		(18.2	)		(18.4	)		(18.3	)		-			-			100.0	%		(34.5	)		(36.7	)		-6.4	%
Write-off of unamortized discount on preferred stock at redemption		-			-			(130.6	)		-			-		NM				-			(130.6	)	NM
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (4)		-			-			(1.9	)		(1.0	)		-		NM				-			(1.3	)	NM
Minority interest adjustment (5)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to Common Stockholders - Diluted	$	84.1		$	265.0		$	104.4		$	245.1		$	195.6			132.6	%	$	(519.3	)	$	811.7			256.3	%
Stockholders' Equity
Beginning-of-period, including AOCI	$	11,655.5		$	11,700.2		$	12,368.5		$	12,637.3		$	13,557.5					$	7,976.8		$	11,700.2
End-of-period, including AOCI		11,700.2			12,368.5			12,637.3			13,557.5			12,805.8						11,700.2			12,805.8
End-of-period, excluding AOCI		11,961.6			12,066.3			11,699.4			11,896.0			12,058.1						11,961.6			12,058.1
Average Stockholders' Equity
Average equity, including average AOCI	$	11,677.8		$	12,034.3		$	12,502.9		$	13,097.4		$	13,181.7					$	9,473.1		$	12,704.1
Average AOCI		(241.0	)		20.4			620.0			1,299.7			1,204.6						(1,608.9	)		786.2
Average equity, excluding AOCI		11,918.8			12,013.9			11,882.9			11,797.7			11,977.1						11,082.0			11,917.9
Average goodwill		3,054.9			3,013.5			3,013.5			3,016.5			3,019.4						3,161.0			3,015.7
Average equity, excluding AOCI and goodwill	$	8,863.9		$	9,000.4		$	8,869.4		$	8,781.2		$	8,957.7					$	7,921.0		$	8,902.2
Restructuring Charges (Recoveries), After-Tax	$	0.2		$	-		$	-		$	-		$	(0.8	)				$	22.5		$	(0.8	)
Common Shares Outstanding
Average for the period - basic		301.9			302.2			304.5			316.7			316.4						280.0			310.0
Average for the period - diluted		311.6			312.1			314.6			325.7			323.4						285.6			319.2
End-of-period - diluted		311.8			313.0			325.9			324.3			324.0						311.8			324.0
Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations (6)	$	0.90		$	0.83		$	0.86		$	0.63		$	0.82					$	3.18		$	3.13
Net income (loss) (6)		0.27			0.85			0.33			0.75			0.60						(1.85	)		2.54
Restructuring charges		(0.00	)		-			-			-			0.00						0.08			0.00
Stockholders' Equity Per Common Share
Stockholders' equity, including AOCI (7)	$	36.02		$	38.19		$	39.89		$	42.78		$	40.54					$	36.02		$	40.54
Stockholders' equity, excluding AOCI (7)		36.89			37.19			36.93			37.54			38.17						36.89			38.17
Dividends declared (common stock)		0.010			0.010			0.010			0.010			0.050						0.040			0.080
Return on Equity, Excluding AOCI
Net income (loss) with average equity including goodwill		3.4	%		9.4	%		8.6	%		8.3	%		6.5	%					-4.4	%		8.2	%
Income (loss) from operations with average equity including goodwill		10.0	%		9.2	%		9.8	%		7.0	%		8.9	%					8.5	%		8.7	%
Income (loss) from operations with average equity excluding goodwill		13.4	%		12.3	%		13.1	%		9.4	%		11.9	%					11.9	%		11.7	%
Market Value of Common Shares
Highest price	$	28.10		$	30.74		$	33.55		$	26.83		$	29.12					$	28.10		$	33.55
Lowest price		21.99			22.52			23.86			20.65			23.17						4.90			20.65
Closing price		24.88			30.70			24.29			23.92			27.81						24.88			27.81

(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 28 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.

12/31/2010																									PAGE 6
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Components of Operating Realized Gain (Loss)
Indexed annuity net derivatives results (1)	$	-		$	0.4		$	(0.7	)	$	0.7		$	0.8		NM			$	0.3		$	1.2			300.0	%
GLB (2)		15.9			15.0			16.3			17.5			19.2			20.8	%		53.9			68.0			26.2	%
Total operating realized gain (loss), pre-tax		15.9			15.4			15.6			18.2			20.0			25.8	%		54.2			69.2			27.7	%
Federal income tax expense (benefit) (3)		5.6			5.3			5.6			6.3			7.0			25.0	%		18.9			24.2			28.0	%
Total operating realized gain (loss), after-tax	$	10.3		$	10.1		$	10.0		$	11.9		$	13.0			26.2	%	$	35.3		$	45.0			27.5	%
Components of Excluded Realized Gain (Loss)
Realized gain (loss) related to certain investments (4)	$	(126.6	)	$	(55.0	)	$	(5.1	)	$	(26.1	)	$	(94.2	)		25.6	%	$	(538.0	)	$	(180.4	)		66.5	%
Gain (loss) on certain derivative instruments, including those associated with our consolidated VIEs, and trading securities (5)		(14.0	)		12.6			(45.8	)		105.6			2.5			117.9	%		36.2			74.9			106.9	%
GLB net derivatives results (6)		2.8			11.9			10.8			(7.7	)		(21.5	)	NM				(501.2	)		(6.5	)		98.7	%
GDB derivatives results (7)		(21.7	)		(13.0	)		25.7			(45.8	)		(19.4	)		10.6	%		(200.9	)		(52.5	)		73.9	%
Indexed annuity forward-starting option (8)		2.9			2.6			3.3			(0.5	)		12.8		NM				3.0			18.2		NM
Gain (loss) on sale of subsidiaries/businesses		-			-			-			-			-		NM				1.0			-			-100.0	%
Total excluded realized gain (loss), pre-tax		(156.6	)		(40.9	)		(11.1	)		25.5			(119.8	)		23.5	%		(1,199.9	)		(146.3	)		87.8	%
Federal income tax expense (benefit) (3)		(58.3	)		(14.4	)		(3.8	)		9.0			(42.0	)		28.0	%		(420.1	)		(51.2	)		87.8	%
Total excluded realized gain (loss), after-tax	$	(98.3	)	$	(26.5	)	$	(7.3	)	$	16.5		$	(77.8	)		20.9	%	$	(779.8	)	$	(95.1	)		87.8	%
Total Realized Gain (Loss), After-Tax	$	(88.0	)	$	(16.4	)	$	2.7		$	28.4		$	(64.8	)		26.4	%	$	(744.5	)	$	(50.1	)		93.3	%
Components of GLB Net Derivatives Results
Net valuation premium, net of reinsurance	$	34.8		$	25.8		$	27.7		$	29.8		$	32.7			-6.0	%	$	115.6		$	116.0			0.3	%
Change in reserves hedged:
Unlocking		(240.8	)		-			-			14.7			36.3			115.1	%		(266.5	)		51.0			119.1	%
Other		644.6			190.0			(1,402.0	)		218.3			1,196.4			85.6	%		3,064.4			202.7			-93.4	%
Change in market value of derivative assets		(548.9	)		(198.0	)		1,248.5			(214.3	)		(1,198.5	)	NM				(2,934.2	)		(362.3	)		87.7	%
Hedge program effectiveness (ineffectiveness)		(145.1	)		(8.0	)		(153.5	)		18.7			34.2			123.6	%		(136.3	)		(108.6	)		20.3	%
Change in reserves not hedged (NPR component)		54.1			(0.9	)		151.0			(40.7	)		(95.1	)	NM				(546.3	)		14.3			102.6	%
Change in derivative assets not hedged (NPR component)		4.7			(1.0	)		(8.1	)		3.8			0.1			-97.9	%		14.8			(5.2	)	NM
Associated amortization expense of DAC, VOBA, DSI and DFEL:
Unlocking		43.5			4.7			5.2			(21.9	)		(10.4	)	NM				(176.1	)		(22.4	)		87.3	%
Other amortization		10.8			(8.7	)		(11.5	)		2.6			17.0			57.4	%		227.1			(0.6	)	NM
GLB net derivatives results, pre-tax	$	2.8		$	11.9		$	10.8		$	(7.7	)	$	(21.5	)	NM			$	(501.2	)	$	(6.5	)		98.7	%
Components of Benefit Ratio Unlocking (3)
GLB benefit ratio unlocking, after-tax	$	1.1		$	0.6		$	(3.0	)	$	2.8		$	1.2			9.1	%	$	7.8		$	1.6			-79.5	%
GDB benefit ratio unlocking, after-tax		6.5			4.9			(27.9	)		22.3			9.5			46.2	%		81.0			8.8			-89.1	%
Total benefit ratio unlocking, after-tax	$	7.6		$	5.5		$	(30.9	)	$	25.1		$	10.7			40.8	%	$	88.8		$	10.4			-88.3	%
GDB Benefit Ratio Unlocking, Net of Derivative Results (3)
GDB benefit ratio unlocking, after-tax	$	6.5		$	4.9		$	(27.9	)	$	22.3		$	9.5			46.2	%	$	81.0		$	8.8			-89.1	%
GDB derivatives results, after-tax		(10.5	)		(8.4	)		16.6			(29.7	)		(12.6	)		-20.0	%		(130.6	)		(34.1	)		73.9	%
GDB benefit ratio unlocking, net of derivative results, after-tax	$	(4.0	)	$	(3.5	)	$	(11.3	)	$	(7.4	)	$	(3.1	)		22.5	%	$	(49.6	)	$	(25.3	)		49.0	%

(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)	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)	See page 30 for detail.
(5)	Represents changes in the fair values of certain derivative investments (including the credit default swaps and contingent forwards associated with 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.
(6)	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.
(7)	Represents the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(8)	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.

12/31/2010																									PAGE 7
Consolidated Statements of Income (Loss)
Unaudited (in millions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Revenues
Insurance premiums	$	523.8		$	531.8		$	551.4		$	537.7		$	555.4			6.0	%	$	2,064.2		$	2,176.3			5.4	%
Surrender charges		40.6			42.7			34.5			32.1			30.6			-24.6	%		152.4			139.9			-8.2	%
Mortality assessments		317.8			317.9			325.3			319.9			324.4			2.1	%		1,299.0			1,287.5			-0.9	%
Expense assessments		406.9			427.5			433.4			417.5			528.1			29.8	%		1,471.0			1,806.5			22.8	%
Net investment income		1,122.3			1,106.1			1,119.8			1,132.3			1,182.7			5.4	%		4,177.5			4,540.9			8.7	%
Realized gain (loss):
Total other-than-temporary impairment losses on securities		(88.6	)		(75.9	)		(11.6	)		(98.5	)		(53.7	)		39.4	%		(666.9	)		(239.7	)		64.1	%
Portion of loss recognized in other comprehensive income		15.4			23.5			-			53.0			11.6			-24.7	%		274.8			88.1			-67.9	%
Net other-than-temporary impairment losses on
securities recognized in earnings		(73.2	)		(52.4	)		(11.6	)		(45.5	)		(42.1	)		42.5	%		(392.1	)		(151.6	)		61.3	%
Realized gain (loss), excluding other-than-temporary
impairment losses on securities		(67.5	)		26.9			16.1			89.2			(57.7	)		-47.9	%		(753.6	)		74.5			109.9	%
Total realized gain (loss) (1)		(140.7	)		(25.5	)		4.5			43.7			(99.8	)		29.1	%		(1,145.7	)		(77.1	)		93.3	%
Amortization of deferred gains on business sold
through reinsurance		20.3			18.9			18.6			18.8			18.8			-7.4	%		76.0			75.1			-1.2	%
Other revenues and fees		111.4			108.0			117.0			110.8			121.7			9.2	%		404.4			457.5			13.1	%
Total Revenues		2,402.4			2,527.4			2,604.5			2,612.8			2,661.9			10.8	%		8,498.8			10,406.6			22.4	%
Benefits and Expenses
Interest credited		614.9			617.7			613.0			621.8			632.0			2.8	%		2,462.9			2,484.5			0.9	%
Benefits		763.9			779.2			839.2			925.0			787.1			3.0	%		2,835.8			3,330.5			17.4	%
Underwriting, acquisition, insurance and other expenses		694.6			713.7			753.1			688.5			911.4			31.2	%		2,794.0			3,066.7			9.8	%
Interest and debt expense		68.1			68.1			69.0			74.5			79.1			16.2	%		197.4			290.7			47.3	%
Impairment of intangibles		127.8			-			-			-			-			-100.0	%		729.5			-			-100.0	%
Total Benefits and Expenses		2,269.3			2,178.7			2,274.3			2,309.8			2,409.6			6.2	%		9,019.6			9,172.4			1.7	%
Income (loss) from continuing operations before taxes		133.1			348.7			330.2			303.0			252.3			89.6	%		(520.8	)		1,234.2		NM
Federal income tax expense (benefit)		34.9			93.2			77.7			55.2			56.7			62.5	%		(106.1	)		282.8		NM
Income (Loss) from Continuing Operations		98.2			255.5			252.5			247.8			195.6			99.2	%		(414.7	)		951.4		NM
Income (loss) from discontinued operations, net of federal income taxes (2)		4.1			27.9			2.7			(1.7	)		-			-100.0	%		(70.0	)		28.9			141.3	%
Net Income (Loss)		102.3			283.4			255.2			246.1			195.6			91.2	%		(484.7	)		980.3		NM
Preferred stock dividends and accretion of discount		(18.2	)		(18.4	)		(18.3	)		-			-			100.0	%		(34.5	)		(36.7	)		-6.4	%
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	)		(1.0	)		-		NM				-			(1.3	)	NM
Minority interest adjustment (4)		-			-			-			-			-		NM				(0.1	)		-			100.0	%
Net Income (Loss) Available to Common Stockholders - Diluted	$	84.1		$	265.0		$	104.4		$	245.1		$	195.6			132.6	%	$	(519.3	)	$	811.7		NM
Earnings (Loss) Per Common Share (Diluted) (5)
Income (loss) from continuing operations	$	0.26		$	0.76		$	0.32		$	0.76		$	0.60			133.5	%	$	(1.60	)	$	2.45			253.1	%
Income (loss) from discontinued operations, net of federal income taxes (2)		0.01			0.09			0.01			(0.01	)		-			-100.0	%		(0.25	)		0.09			136.4	%
Net Income (Loss)	$	0.27		$	0.85		$	0.33		$	0.75		$	0.60			122.2	%	$	(1.85	)	$	2.54			237.3	%

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the loss on disposition.  See Discontinued Operations on page 28 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.

12/31/2010																			PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL
Unaudited (in millions)
	For the Three Months Ended															For the Years Ended
	Dec.			March			June			Sept.			Dec.			Dec.			Dec.
DAC and VOBA	2009			2010			2010			2010			2010			2009			2010
Balance as of beginning-of-period	$	9,182.3		$	9,509.6		$	9,195.1		$	8,534.5		$	7,918.5		$	11,403.3		$	9,509.6
Business sold through reinsurance		-			-			-			-			-			(292.9	)		-
Deferrals		460.0			385.1			401.2			412.1			468.3			1,651.4			1,666.7
Amortization, net of interest:
Unlocking		12.7			43.3			21.7			62.8			(9.7	)		(60.3	)		118.1
Amortization, net of interest, excluding unlocking		(273.6	)		(301.4	)		(318.6	)		(257.1	)		(322.8	)		(981.4	)		(1,199.9	)
Deferrals, net of amortization included in operating
underwriting, acquisition, insurance and other expenses		199.1			127.0			104.3			217.8			135.8			609.7			584.9
Amortization, net of interest, associated with benefit
ratio unlocking		(1.1	)		(1.8	)		7.7			(5.8	)		(2.2	)		(10.7	)		(2.1	)
Adjustment related to realized (gains) losses		82.1			(8.6	)		(26.6	)		4.8			(27.1	)		190.7			(57.5	)
Adjustment related to unrealized (gains) losses		47.2			(431.1	)		(746.0	)		(832.8	)		905.3			(2,390.5	)		(1,104.6	)
Balance as of End-of-Period	$	9,509.6		$	9,195.1		$	8,534.5		$	7,918.5		$	8,930.3		$	9,509.6		$	8,930.3
DSI
Balance as of beginning-of-period	$	305.0		$	323.3		$	299.4		$	288.6		$	268.7		$	262.7		$	323.3
Deferrals		21.1			19.5			17.7			16.2			12.1			76.3			65.5
Amortization, net of interest:
Unlocking		2.5			2.1			2.2			3.5			(3.8	)		4.3			4.0
Amortization, net of interest, excluding unlocking		(6.3	)		(15.0	)		(14.2	)		(13.9	)		(14.4	)		(31.3	)		(57.5	)
Deferrals, net of amortization included in operating
insurance benefits or interest credited		17.3			6.6			5.7			5.8			(6.1	)		49.3			12.0
Amortization, net of interest, associated with benefit
ratio unlocking		(0.1	)		(0.2	)		1.0			(0.9	)		(0.3	)		(0.5	)		(0.4	)
Adjustment related to realized (gains) losses		2.0			(1.9	)		(2.6	)		(3.9	)		(0.3	)		12.8			(8.7	)
Adjustment related to unrealized (gains) losses		(0.9	)		(28.4	)		(14.9	)		(20.9	)		23.6			(1.0	)		(40.6	)
Balance as of End-of-Period	$	323.3		$	299.4		$	288.6		$	268.7		$	285.6		$	323.3		$	285.6
DFEL
Balance as of beginning-of-period	$	1,220.3		$	1,337.6		$	1,345.3		$	1,307.8		$	1,301.7		$	1,019.4		$	1,337.6
Business sold through reinsurance		-			-			-			-			-			(11.0	)		-
Deferrals		151.6			135.2			134.1			141.4			135.6			495.6			546.3
Amortization, net of interest:
Unlocking		(2.0	)		(7.0	)		(7.8	)		9.8			(19.3	)		(38.5	)		(24.3	)
Amortization, net of interest, excluding unlocking		(34.4	)		(44.0	)		(47.5	)		(35.2	)		(46.3	)		(132.1	)		(173.0	)
Deferrals, net of amortization included in operating
expense assessments		115.2			84.2			78.8			116.0			70.0			325.0			349.0
Amortization, net of interest, associated with benefit
ratio unlocking		-			(0.3	)		1.6			(0.7	)		(0.5	)		4.1			0.1
Adjustment related to realized gains (losses)		2.8			(1.3	)		(2.8	)		0.2			(3.6	)		(0.9	)		(7.5	)
Adjustment related to unrealized gains (losses)		(0.7	)		(74.9	)		(115.1	)		(121.6	)		134.5			1.0			(177.1	)
Balance as of End-of-Period	$	1,337.6		$	1,345.3		$	1,307.8		$	1,301.7		$	1,502.1		$	1,337.6		$	1,502.1

12/31/2010												PAGE 9
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended December 31, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	17.6	$	-	$	112.1	$	424.2	$	1.4		$	555.3
Surrender charges		7.2		0.7		22.6		-		-			30.5
Mortality assessments		-		-		324.3		-		-			324.3
Expense assessments		292.2		52.3		183.1		-		-			527.6
Net investment income		295.1		199.9		567.9		38.1		81.7			1,182.7
Operating realized gain (loss) (2)		19.9		0.1		-		-		-			20.0
Amortization of deferred gain on business sold
through reinsurance		-		-		-		-		18.2			18.2
Other revenues and fees		87.9		4.3		7.4		2.0		20.3			121.9
Total Operating Revenues		719.9		257.3		1,217.4		464.3		121.6			2,780.5
Operating Expenses
Interest credited		188.9		109.4		302.9		-		30.3			631.5
Benefits		47.2		0.1		400.7		323.8		34.0			805.8
Underwriting, acquisition, insurance and other expenses		328.9		102.9		267.8		112.8		96.7			909.1
Interest and debt expense		-		-		-		-		74.3			74.3
Total Operating Expenses		565.0		212.4		971.4		436.6		235.3			2,420.7
Income (loss) from operations before federal income taxes		154.9		44.9		246.0		27.7		(113.7	)		359.8
Federal income tax expense (benefit)		31.7		12.4		80.5		9.7		(40.0	)		94.3
Income (Loss) from Operations	$	123.2	$	32.5	$	165.5	$	18.0	$	(73.7	)	$	265.5

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

12/31/2010													PAGE 10
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended December 31, 2009
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life		Group		Other
	Annuities		Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	11.9	$	-		$	115.2	$	396.4	$	0.4		$	523.9
Surrender charges		9.3		0.9			30.5		-		-			40.7
Mortality assessments		-		-			317.6		-		-			317.6
Expense assessments		230.1		48.8			127.4		-		-			406.3
Net investment income		281.2		190.6			528.2		35.7		86.5			1,122.2
Operating realized gain (loss) (2)		15.8		0.1			-		-		-			15.9
Amortization of deferred gain on business sold
through reinsurance		-		-			1.4		-		18.3			19.7
Other revenues and fees		80.6		3.3			6.0		1.5		20.7			112.1
Total Operating Revenues		628.9		243.7			1,126.3		433.6		125.9			2,558.4
Operating Expenses
Interest credited		172.5		111.1			297.7		0.7		32.8			614.8
Benefits		47.5		(0.2	)		374.6		281.1		79.0			782.0
Underwriting, acquisition, insurance and other expenses		266.0		83.4			221.9		105.4		19.7			696.4
Interest and debt expense		-		-			-		-		68.1			68.1
Total Operating Expenses		486.0		194.3			894.2		387.2		199.6			2,161.3
Income (loss) from operations before federal income taxes		142.9		49.4			232.1		46.4		(73.7	)		397.1
Federal income tax expense (benefit)		23.2		16.1			74.5		16.3		(30.2	)		99.9
Income (Loss) from Operations	$	119.7	$	33.3		$	157.6	$	30.1	$	(43.5	)	$	297.2

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

12/31/2010												PAGE 11
Consolidating Statements of Income (Loss) From Operations
For the Year Ended December 31, 2010
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	53.0	$	-	$	439.4	$	1,682.3	$	1.5		$	2,176.2
Surrender charges		36.7		3.2		100.0		-		-			139.9
Mortality assessments		-		-		1,287.4		-		-			1,287.4
Expense assessments		1,061.4		197.5		546.7		-					1,805.6
Net investment income		1,119.3		769.2		2,185.8		141.0		325.6			4,540.9
Operating realized gain (loss) (2)		68.8		0.4		-		-		-			69.2
Amortization of deferred gain on business sold
through reinsurance		-		-		-		-		72.5			72.5
Other revenues and fees		315.5		17.4		30.3		7.8		87.6			458.6
Total Operating Revenues		2,654.7		987.7		4,589.6		1,831.1		487.2			10,550.3
Operating Expenses
Interest credited		725.5		440.0		1,198.1		0.6		119.8			2,484.0
Benefits		174.7		2.1		1,734.8		1,299.0		138.6			3,349.2
Underwriting, acquisition, insurance and other expenses		1,168.2		331.4		907.7		421.6		235.6			3,064.5
Interest and debt expense		-		-		-		-		285.9			285.9
Total Operating Expenses		2,068.4		773.5		3,840.6		1,721.2		779.9			9,183.6
Income (loss) from operations before federal income taxes		586.3		214.2		749.0		109.9		(292.7	)		1,366.7
Federal income tax expense (benefit)		101.9		59.9		235.7		38.3		(106.6	)		329.2
Income (Loss) from Operations	$	484.4	$	154.3	$	513.3	$	71.6	$	(186.1	)	$	1,037.5

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

12/31/2010								PAGE 12
Consolidating Statements of Income (Loss) From Operations
For the Year Ended December 31, 2009
Unaudited (in millions)
	Retirement Solutions					Insurance Solutions
			Defined			Life			Group		Other
	Annuities		Contribution			Insurance			Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	88.8	$	-		$	392.5		$	1,579.0	$	4.0		$	2,064.3
Surrender charges		36.4		4.5			111.6			-		-			152.5
Mortality assessments		-		-			1,298.8			0.1		-			1,298.9
Expense assessments		804.2		178.3			491.0			-		-			1,473.5
Net investment income		1,037.0		731.5			1,974.5			127.4		307.1			4,177.5
Operating realized gain (loss) (2)		53.8		0.4			-			-		-			54.2
Amortization of deferred gain on business sold
through reinsurance		-		-			-			-		73.4			73.4
Other revenues and fees		281.1		11.6			26.9			6.0		80.4			406.0
Total Operating Revenues		2,301.3		926.3			4,295.3			1,712.5		464.9			9,700.3
Operating Expenses
Interest credited		682.4		445.5			1,184.2			2.3		148.0			2,462.4
Benefits		241.8		(3.0	)		1,374.0			1,117.4		257.6			2,987.8
Underwriting, acquisition, insurance and other expenses		983.0		300.3			923.0			402.0		177.8			2,786.1
Interest and debt expense		-		-			-			-		261.7			261.7
Total Operating Expenses		1,907.2		742.8			3,481.2			1,521.7		845.1			8,498.0
Income (loss) from operations before federal income taxes		394.1		183.5			814.1			190.8		(380.2	)		1,202.3
Federal income tax expense (benefit)		40.6		50.1			244.9			66.9		(143.3	)		259.2
Income (Loss) from Operations	$	353.5	$	133.4		$	569.2		$	123.9	$	(236.9	)	$	943.1

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

12/31/2010													PAGE 13
Consolidated Balance Sheets and Selected Share Data
Unaudited (millions of dollars)
	As of
	Dec.			March			June			Sept.			Dec.
	2009			2010			2010			2010			2010
ASSETS
Investments:
Corporate bonds	$	45,380.5		$	47,284.8		$	50,245.6		$	52,907.1		$	51,740.5
U.S. Government bonds		194.2			198.3			209.0			218.1			164.8
Foreign government bonds		504.9			456.1			472.3			525.4			508.3
Mortgage-backed securities		11,103.3			11,365.4			11,605.9			11,493.7			10,890.4
Asset-backed securities		479.8			161.4			157.4			161.0			173.8
State and municipal bonds		1,967.6			2,198.1			2,539.9			2,961.3			3,155.4
Hybrid and redeemable preferred securities		1,188.0			1,216.7			1,160.9			1,448.7			1,397.0
VIEs' fixed maturity securities		-			579.5			581.4			585.3			583.7
Equity securities		278.4			310.0			245.9			205.3			197.2
Total available-for-sale securities		61,096.7			63,770.3			67,218.3			70,505.9			68,811.1
Trading securities		2,504.6			2,532.5			2,607.6			2,710.9			2,596.4
Mortgage loans on real estate		7,177.8			7,012.5			6,881.6			6,798.8			6,752.1
Real estate		173.8			200.6			218.2			218.9			202.1
Policy loans		2,897.8			2,902.8			2,901.8			2,879.1			2,864.7
Derivative investments		1,010.1			992.4			1,988.9			1,903.9			1,076.0
Other investments		1,057.2			1,046.4			1,136.8			1,096.5			1,037.7
Total investments		75,918.0			78,457.5			82,953.2			86,114.0			83,340.1
Cash and invested cash		4,024.7			3,444.7			3,699.6			3,546.7			2,741.4
DAC and VOBA		9,509.6			9,195.1			8,534.5			7,918.5			8,930.3
Premiums and fees receivable		320.9			397.4			316.6			308.2			334.6
Accrued investment income		889.2			940.0			945.4			988.7			932.8
Reinsurance recoverables		6,425.9			6,520.1			6,659.6			6,667.8			6,526.8
Goodwill		3,013.5			3,013.5			3,013.5			3,019.4			3,019.4
Other assets		3,831.4			3,223.9			3,162.8			3,350.9			3,368.2
Separate account assets		73,500.1			76,429.2			70,844.1			78,575.7			84,630.1
Total Assets	$	177,433.3		$	181,621.4		$	180,129.3		$	190,489.9		$	193,823.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	15,957.9		$	16,015.9		$	17,477.5		$	17,295.4		$	16,338.8
Other contract holder funds		64,148.0			64,706.3			65,462.6			66,902.9			67,598.7
Short-term debt		349.9			101.2			99.4			101.0			351.4
Long-term debt		5,050.4			5,060.3			5,864.7			5,943.2			5,399.0
Reinsurance related embedded derivatives		30.5			46.6			92.4			132.0			101.5
Funds withheld reinsurance liabilities		1,260.6			1,216.4			1,196.2			1,135.6			1,149.5
Deferred gain on indemnity reinsurance		543.4			524.7			505.9			487.1			468.3
Payables for collateral on investments		1,906.7			1,827.7			2,376.2			2,567.0			1,659.0
VIEs' liabilities		-			142.0			187.5			156.5			132.1
Other liabilities		2,985.6			3,182.6			3,385.5			3,636.0			3,189.5
Separate account liabilities		73,500.1			76,429.2			70,844.1			78,575.7			84,630.1
Total liabilities		165,733.1			169,252.9			167,492.0			176,932.4			181,017.9
Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.4
Series B preferred stock		806.3			812.8			-			-			-
Common stock		7,839.9			7,845.3			8,188.2			8,141.9			8,124.2
Retained earnings		3,315.0			3,407.8			3,510.8			3,753.7			3,933.5
AOCI:
Net unrealized gain (loss) on available-for-sale securities		49.4			600.6			1,267.2			2,060.1			1,071.8
Unrealized other-than-temporary impairment on available-
for-sale securities		(115.1	)		(113.9	)		(110.4	)		(131.7	)		(128.9	)
Net unrealized gain (loss) on derivative instruments		11.4			21.0			(13.9	)		(60.5	)		(14.5	)
Foreign currency translation adjustment		2.9			1.7			1.5			2.4			0.6
Funded status of employee benefit plans		(210.0	)		(207.2	)		(206.5	)		(208.8	)		(181.3	)
Total accumulated other comprehensive income (loss)		(261.4	)		302.2			937.9			1,661.5			747.7
Total stockholders' equity		11,700.2			12,368.5			12,637.3			13,557.5			12,805.8
Total Liabilities and Stockholders' Equity	$	177,433.3		$	181,621.4		$	180,129.3		$	190,489.9		$	193,823.7
Share Data Per Common Share
Stockholders' equity per share (1)	$	36.02		$	38.19		$	39.89		$	42.78		$	40.54
Book value, excluding AOCI (1)		36.89			37.19			36.93			37.54			38.17
Common shares outstanding - assuming conversion of
Series A preferred shares (in millions)		302.4			302.6			316.8			316.9			315.9

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

12/31/2010												PAGE 14
Balance Sheet Data - Segment Highlights
Unaudited (in millions)
	Retirement Solutions				Insurance Solutions
As of December 31, 2010			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)	$	22,957.0	$	14,131.6	$	38,248.2	$	2,684.3	$	8,060.4		$	86,081.5
DAC and VOBA		2,250.5		359.9		6,144.8		175.0		0.1			8,930.3
Goodwill		439.8		20.2		2,188.5		274.3		96.6			3,019.4
DSI and other intangibles		283.6		3.9		81.0		-		118.1			486.6
Reinsurance recoverables		495.7		-		2,014.0		45.1		3,972.0			6,526.8
Separate account assets		64,782.4		13,916.9		5,749.3		-		181.5			84,630.1
Liabilities and Capital
Future contract benefits		1,198.9		1.5		7,553.7		1,606.8		5,977.9			16,338.8
Other contract holder funds		20,642.6		12,773.1		32,436.0		269.1		1,477.9			67,598.7
Allocated capital (3)		2,989.7		1,076.6		8,385.0		1,180.3		(1,573.5	)		12,058.1

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		7,105.3		1,446.3		5,964.7			15,957.9
Other contract holder funds		19,565.6		12,239.8		30,616.8		193.1		1,532.6			64,147.9
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).

12/31/2010																									PAGE 15
Retirement Solutions - Annuities
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.				%
	2009			2010			2010			2010			2010			Change			2009			2010				Change
Operating Revenues
Insurance premiums (1)	$	11.9		$	9.9		$	9.8		$	15.7		$	17.6			47.9	%	$	88.8		$	53.0				-40.3	%
Surrender charges		9.3			10.9			9.6			9.0			7.2			-22.6	%		36.4			36.7				0.8	%
Expense assessments		230.1			249.2			260.1			259.9			292.2			27.0	%		804.2			1,061.4				32.0	%
Net investment income		281.2			270.8			271.5			281.9			295.1			4.9	%		1,037.0			1,119.3				7.9	%
Operating realized gain (loss) (2)		15.8			15.3			15.5			18.1			19.9			25.9	%		53.8			68.8				27.9	%
Other revenues and fees (3)		80.6			73.8			78.1			75.7			87.9			9.1	%		281.1			315.5				12.2	%
Total Operating Revenues		628.9			629.9			644.6			660.3			719.9			14.5	%		2,301.3			2,654.7				15.4	%
Operating Expenses
Interest credited		172.5			176.2			176.9			183.5			188.9			9.5	%		682.4			725.5				6.3	%
Benefits (1)		47.5			43.8			40.7			43.0			47.2			-0.6	%		241.8			174.7				-27.8	%
Underwriting, acquisition, insurance and other expenses		266.0			259.8			282.0			297.5			328.9			23.6	%		983.0			1,168.2				18.8	%
Total Operating Expenses		486.0			479.8			499.6			524.0			565.0			16.3	%		1,907.2			2,068.4				8.5	%
Income (loss) from operations before federal income taxes		142.9			150.1			145.0			136.3			154.9			8.4	%		394.1			586.3				48.8	%
Federal income tax expense (benefit)		23.2			31.4			28.6			10.2			31.7			36.6	%		40.6			101.9				151.0	%
Income (Loss) from Operations	$	119.7		$	118.7		$	116.4		$	126.1		$	123.2			2.9	%	$	353.5		$	484.4				37.0	%
Effective Tax Rate		16.2	%		20.9	%		19.7	%		7.5	%		20.5	%					10.3	%		17.4	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	2,785.6		$	2,858.3		$	2,979.7		$	2,968.9		$	2,949.9					$	2,926.3		$	2,939.2
Average goodwill		439.8			439.8			439.8			439.8			439.8						514.8			439.8
Average equity, excluding goodwill	$	2,345.8		$	2,418.5		$	2,539.9		$	2,529.1		$	2,510.1					$	2,411.5		$	2,499.4
Return on Equity, Excluding AOCI
Including goodwill		17.2	%		16.6	%		15.6	%		17.0	%		16.7	%					12.1	%		16.5	%
Excluding goodwill		20.4	%		19.6	%		18.3	%		19.9	%		19.6	%					14.7	%		19.4	%
Income (Loss) from Operations - Basis Points on
Average Account Values - Annualized		65			63			60			65			59			(6	)		54			62				8
Operating Realized Gain (Loss) (2)
Indexed annuity net derivatives results (4)	$	-		$	0.4		$	(0.7	)	$	0.7		$	0.8		NM			$	0.4		$	1.2				200.0	%
GLB (5)		15.8			14.9			16.2			17.4			19.1			20.9	%		53.4			67.6				26.6	%
Total Operating Realized Gain (Loss)	$	15.8		$	15.3		$	15.5		$	18.1		$	19.9			25.9	%	$	53.8		$	68.8				27.9	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	161.1		$	150.0		$	176.7		$	189.1		$	180.9			12.3	%	$	628.2		$	696.7				10.9	%
General and administrative expenses		85.8			78.0			82.1			85.6			90.8			5.8	%		316.2			336.5				6.4	%
Inter-segment reimbursement associated with reserve
financing and LOC expenses (6)		0.1			-			0.2			-			(1.0	)	NM				0.5			(0.8	)		NM
Broker-dealer commissions and general and
administrative expenses		81.1			73.6			77.3			77.6			87.2			7.5	%		288.0			315.7				9.6	%
Taxes, licenses and fees		4.0			9.1			6.1			3.4			5.6			40.0	%		22.7			24.2				6.6	%
Total commissions and expenses incurred		332.1			310.7			342.4			355.7			363.5			9.5	%		1,255.6			1,372.3				9.3	%
Less: commissions and expenses capitalized		(157.2	)		(131.6	)		(164.5	)		(171.3	)		(156.1	)		0.7	%		(623.7	)		(623.5	)			0.0	%
Amortization of DAC and VOBA, net of interest		91.1			80.7			104.1			113.1			121.5			33.4	%		351.1			419.4				19.5	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	266.0		$	259.8		$	282.0		$	297.5		$	328.9			23.6	%	$	983.0		$	1,168.2				18.8	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized (7)		46			41			43			44			43			(3	)		48			43				(5	)

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income (loss) from operations.
(3)	Other revenues and fees consists primarily of fees attributable to broker-dealer services that are subject to market volatility.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Represents reimbursements to Retirement Solutions - Annuities from the Insurance Solutions - Life Insurance segment for reserve financing, net of expenses incurred by
	Retirement Solutions - Annuities for its use of LOCs.  The inter-segment amounts are not reported on our Consolidated Statements of Income.
(7)	Includes distribution costs.

12/31/2010																			PAGE 16
Retirement Solutions - Annuities
DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended															For the Years Ended
	Dec.			March			June			Sept.			Dec.			Dec.			Dec.
DAC and VOBA	2009			2010			2010			2010			2010			2009			2010
Balance as of beginning-of-period	$	2,286.6		$	2,381.0		$	2,285.0		$	2,156.5		$	1,934.2		$	2,976.9		$	2,381.0
Deferrals		157.2			131.6			164.5			171.3			156.1			623.7			623.5
Amortization, net of interest:
Unlocking		16.2			59.4			27.5			16.2			12.8			8.5			115.9
Amortization, net of interest, excluding unlocking		(107.3	)		(140.1	)		(131.6	)		(129.3	)		(134.3	)		(359.6	)		(535.3	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		66.1			50.9			60.4			58.2			34.6			272.6			204.1
Amortization, net of interest, associated with benefit ratio unlocking		(0.9	)		(1.3	)		7.2			(5.3	)		(2.2	)		(9.0	)		(1.6	)
Adjustment related to realized (gains) losses		43.9			(11.5	)		(20.1	)		(19.2	)		(4.9	)		74.4			(55.7	)
Adjustment related to unrealized (gains) losses		(14.7	)		(134.1	)		(176.0	)		(256.0	)		288.8			(933.9	)		(277.3	)
Balance as of End-of-Period	$	2,381.0		$	2,285.0		$	2,156.5		$	1,934.2		$	2,250.5		$	2,381.0		$	2,250.5

DSI
Balance as of beginning-of-period	$	302.4		$	320.6		$	296.9		$	286.3		$	266.7		$	260.7		$	320.6
Deferrals		21.0			19.4			17.7			16.1			12.0			75.4			65.2
Amortization, net of interest:
Unlocking		2.6			2.1			2.2			3.5			(3.7	)		4.3			4.1
Amortization, net of interest, excluding unlocking		(6.4	)		(15.0	)		(14.1	)		(13.8	)		(14.1	)		(31.0	)		(57.0	)
Deferrals, net of amortization included in operating interest credited		17.2			6.5			5.8			5.8			(5.8	)		48.7			12.3
Amortization, net of interest, associated with benefit ratio unlocking		(0.1	)		(0.2	)		1.0			(0.9	)		(0.3	)		(0.5	)		(0.4	)
Adjustment related to realized (gains) losses		2.0			(1.9	)		(2.6	)		(3.8	)		(0.4	)		12.7			(8.7	)
Adjustment related to unrealized (gains) losses		(0.9	)		(28.1	)		(14.8	)		(20.7	)		23.4			(1.0	)		(40.2	)
Balance as of End-of-Period	$	320.6		$	296.9		$	286.3		$	266.7		$	283.6		$	320.6		$	283.6

DFEL
Balance as of beginning-of-period	$	162.2		$	182.1		$	191.0		$	201.2		$	210.0		$	130.3		$	182.1
Deferrals		17.6			17.0			20.0			18.7			18.9			56.3			74.6
Amortization, net of interest:
Unlocking		0.9			1.1			(1.2	)		4.0			(3.8	)		(4.1	)		0.1
Amortization, net of interest, excluding unlocking		1.8			(5.5	)		(5.8	)		(5.7	)		(5.7	)		3.2			(22.7	)
Deferrals, net of amortization included in operating expense assessments		20.3			12.6			13.0			17.0			9.4			55.4			52.0
Amortization, net of interest, associated with benefit ratio unlocking		-			(0.3	)		1.6			(0.7	)		(0.5	)		4.1			0.1
Adjustment related to realized gains (losses)		(0.4	)		(1.3	)		(2.6	)		(5.2	)		1.8			(7.6	)		(7.3	)
Adjustment related to unrealized gains (losses)		-			(2.1	)		(1.8	)		(2.3	)		1.3			(0.1	)		(4.9	)
Balance as of End-of-Period	$	182.1		$	191.0		$	201.2		$	210.0		$	222.0		$	182.1		$	222.0

12/31/2010																									PAGE 17
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of beginning-of-period	$	19.766		$	19.940		$	20.042		$	20.397		$	21.075			6.6	%	$	17.655		$	19.940			12.9	%
Gross deposits		1.195			1.138			1.501			1.774			1.155			-3.3	%		6.355			5.568			-12.4	%
Withdrawals and deaths		(0.523	)		(0.486	)		(0.456	)		(0.485	)		(0.593	)		-13.4	%		(2.435	)		(2.020	)		17.0	%
Net flows		0.672			0.652			1.045			1.289			0.562			-16.4	%		3.920			3.548			-9.5	%
Transfers to variable annuities		(0.726	)		(0.772	)		(0.801	)		(0.882	)		(0.942	)		-29.8	%		(2.476	)		(3.397	)		-37.2	%
Interest credited		0.207			0.203			0.093			0.255			0.245			18.4	%		0.766			0.796			3.9	%
Sales inducements deferred		0.021			0.019			0.018			0.016			0.012			-42.9	%		0.075			0.065			-13.3	%
Balance as of End-of-Period (Gross)		19.940			20.042			20.397			21.075			20.952			5.1	%		19.940			20.952			5.1	%
Reinsurance ceded		(1.027	)		(1.011	)		(0.994	)		(0.978	)		(0.962	)		6.3	%		(1.027	)		(0.962	)		6.3	%
Balance as of End-of-Period (Net of Ceded)	$	18.913		$	19.031		$	19.403		$	20.097		$	19.990			5.7	%	$	18.913		$	19.990			5.7	%
Variable Annuities (2)
Balance as of beginning-of-period	$	52.429		$	55.368		$	57.815		$	53.921		$	60.132			14.7	%	$	40.925		$	55.368			35.3	%
Gross deposits		1.266			1.138			1.322			1.204			1.435			13.3	%		4.007			5.099			27.3	%
Withdrawals and deaths		(1.120	)		(1.215	)		(1.214	)		(1.209	)		(1.454	)		-29.8	%		(4.034	)		(5.092	)		-26.2	%
Net flows		0.146			(0.077	)		0.108			(0.005	)		(0.019	)	NM				(0.027	)		0.007			125.9	%
Transfers from fixed annuities		0.726			0.772			0.800			0.882			0.942			29.8	%		2.475			3.396			37.2	%
Investment increase and change in market value		2.067			1.752			(4.802	)		5.334			3.803			84.0	%		11.995			6.087			-49.3	%
Balance as of End-of-Period	$	55.368		$	57.815		$	53.921		$	60.132		$	64.858			17.1	%	$	55.368		$	64.858			17.1	%
Total Annuities
Balance as of beginning-of-period	$	72.195		$	75.308		$	77.857		$	74.318		$	81.207			12.5	%	$	58.580		$	75.308			28.6	%
Gross deposits		2.461			2.276			2.823			2.978			2.590			5.2	%		10.362			10.667			2.9	%
Withdrawals and deaths		(1.643	)		(1.701	)		(1.670	)		(1.694	)		(2.047	)		-24.6	%		(6.469	)		(7.112	)		-9.9	%
Net flows		0.818			0.575			1.153			1.284			0.543			-33.6	%		3.893			3.555			-8.7	%
Transfers between fixed and variable accounts		-			-			(0.001	)		-			-		NM				(0.001	)		(0.001	)		0.0	%
Interest credited and change in market value		2.274			1.955			(4.709	)		5.589			4.048			78.0	%		12.761			6.883			-46.1	%
Sales inducements deferred		0.021			0.019			0.018			0.016			0.012			-42.9	%		0.075			0.065			-13.3	%
Balance as of End-of-Period (Gross)		75.308			77.857			74.318			81.207			85.810			13.9	%		75.308			85.810			13.9	%
Reinsurance ceded		(1.027	)		(1.011	)		(0.994	)		(0.978	)		(0.962	)		6.3	%		(1.027	)		(0.962	)		6.3	%
Balance as of End-of-Period (Net of Ceded)	$	74.281		$	76.846		$	73.324		$	80.229		$	84.848			14.2	%	$	74.281		$	84.848			14.2	%
Variable Annuities Under Agreement - Included Above	$	0.082		$	0.082		$	0.071		$	0.074		$	0.076			-7.3	%	$	0.082		$	0.076			-7.3	%
Incremental Deposits (3)
Fixed annuities	$	1.194		$	1.137		$	1.500		$	1.772		$	1.154			-3.4	%	$	6.349		$	5.563			-12.4	%
Variable annuities		1.263			1.134			1.319			1.198			1.431			13.3	%		3.995			5.082			27.2	%
Total Incremental Deposits	$	2.457		$	2.271		$	2.819		$	2.970		$	2.585			5.2	%	$	10.344		$	10.645			2.9	%

(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.

12/31/2010																									PAGE 18
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.082		$	0.087		$	0.115		$	0.104		$	0.068			-17.1	%	$	0.979		$	0.374			-61.8	%
Withdrawals and deaths		(0.299	)		(0.264	)		(0.243	)		(0.256	)		(0.336	)		-12.4	%		(1.307	)		(1.099	)		15.9	%
Net flows	$	(0.217	)	$	(0.177	)	$	(0.128	)	$	(0.152	)	$	(0.268	)		-23.5	%	$	(0.328	)	$	(0.725	)	NM
Gross fixed contract account values	$	9.102		$	9.015		$	8.977		$	8.915		$	8.740			-4.0	%	$	9.102		$	8.740			-4.0	%
Reinsurance ceded		(1.027	)		(1.011	)		(0.994	)		(0.978	)		(0.962	)		6.3	%		(1.027	)		(0.962	)		6.3	%
Net fixed contract account values	$	8.075		$	8.004		$	7.983		$	7.937		$	7.778			-3.7	%	$	8.075		$	7.778			-3.7	%
Indexed Annuities
Deposits	$	0.318		$	0.324		$	0.522		$	0.854		$	0.327			2.8	%	$	2.182		$	2.027			-7.1	%
Withdrawals and deaths		(0.120	)		(0.124	)		(0.111	)		(0.130	)		(0.167	)		-39.2	%		(0.636	)		(0.532	)		16.4	%
Net flows	$	0.198		$	0.200		$	0.411		$	0.724		$	0.160			-19.2	%	$	1.546		$	1.495			-3.3	%
Indexed Annuity Account Values	$	6.839		$	7.131		$	7.524		$	8.389		$	8.680			26.9	%	$	6.839		$	8.680			26.9	%
Fixed Portion of Variable Contracts
Deposits	$	0.795		$	0.727		$	0.864		$	0.817		$	0.759			-4.5	%	$	3.194		$	3.167			-0.8	%
Withdrawals and deaths		(0.103	)		(0.098	)		(0.102	)		(0.099	)		(0.090	)		12.6	%		(0.493	)		(0.389	)		21.1	%
Net flows	$	0.692		$	0.629		$	0.762		$	0.718		$	0.669			-3.3	%	$	2.701		$	2.778			2.9	%
Fixed Portion of Variable Contract Account Values	$	3.999		$	3.896		$	3.896		$	3.771		$	3.532			-11.7	%	$	3.999		$	3.532			-11.7	%
Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	2.060		$	1.865		$	2.186		$	2.021		$	2.194			6.5	%	$	7.201		$	8.266			14.8	%
Withdrawals and deaths		(1.222	)		(1.313	)		(1.316	)		(1.308	)		(1.544	)		-26.4	%		(4.527	)		(5.481	)		-21.1	%
Net flows	$	0.838		$	0.552		$	0.870		$	0.713		$	0.650			-22.4	%	$	2.674		$	2.785			4.2	%
Variable Contract Account Values	$	59.367		$	61.711		$	57.817		$	63.903		$	68.390			15.2	%	$	59.367		$	68.390			15.2	%
Average Daily Variable Annuity Separate Account Values	$	54.013		$	55.809		$	56.788		$	57.255		$	62.832			16.3	%	$	46.551		$	58.188			25.0	%

12/31/2010																									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 Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			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)	5.59		%	5.63		%	5.47		%	5.48		%	5.46		%	(13		)	5.50		%	5.50		%	-
Commercial mortgage loan prepayment and bond make whole premiums		0.08	%		0.02	%		0.09	%		0.13	%		0.26	%		18			0.03	%		0.13	%		10
Alternative investments		0.00	%		0.00	%		0.00	%		0.00	%		0.01	%		1			0.00	%		0.01	%		1
Net investment income yield on reserves		5.67	%		5.65	%		5.56	%		5.61	%		5.73	%		6			5.53	%		5.64	%		11
Interest rate credited to contract holders		3.65	%		3.52	%		3.51	%		3.57	%		3.47	%		(18	)		3.77	%		3.52	%		(25	)
Interest rate spread		2.02	%		2.13	%		2.05	%		2.04	%		2.26	%		24			1.76	%		2.12	%		36
Variable Annuity Expense Assessments
(in millions) (3)	$	287.4		$	300.8		$	314.8		$	318.0		$	354.4			23.3	%	$	1,001.5		$	1,288.0			28.6	%
GLB Expense Assessments (in millions) (4)	$	58.9		$	63.6		$	67.6		$	71.6		$	76.5			29.9	%	$	212.1		$	279.3			31.7	%
Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income from operations (5)	$	18.6		$	22.8		$	24.0		$	25.3		$	26.6			43.0	%	$	69.2		$	98.7			42.6	%
Attributed fee excluded from operating revenues and income from operations (6)		37.9			28.9			30.8			32.8			35.7			-5.8	%		128.3			128.2			-0.1	%
Total Attributed Fees on GLB	$	56.5		$	51.7		$	54.8		$	58.1		$	62.3			10.3	%	$	197.5		$	226.9			14.9	%
GLB Account Values by Type
Guaranteed withdrawal benefits (7)	$	23.500		$	25.179		$	24.421		$	27.760		$	30.339			29.1	%	$	23.500		$	30.339			29.1	%
Guaranteed income benefits (8)		9.333			9.851			9.374			10.470			11.379			21.9	%		9.333			11.379			21.9	%
Total GLB Account Values	$	32.833		$	35.030		$	33.795		$	38.230		$	41.718			27.1	%	$	32.833		$	41.718			27.1	%

(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 and twelve months ended December 31, 2009, reduced our yields by approximately 5 bps and 20 bps,
	respectively.  There was no impact for periods in 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 (6) 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.

12/31/2010																									PAGE 20
Retirement Solutions - Defined Contribution
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Surrender charges	$	0.9		$	1.1		$	0.7		$	0.7		$	0.7			-22.2	%	$	4.5		$	3.2			-28.9	%
Expense assessments		48.8			49.1			48.7			47.4			52.3			7.2	%		178.3			197.5			10.8	%
Net investment income		190.6			186.2			191.2			191.9			199.9			4.9	%		731.5			769.2			5.2	%
Operating realized gain (loss) (1)		0.1			0.1			0.1			0.1			0.1			0.0	%		0.4			0.4			0.0	%
Other revenues and fees (2)		3.3			4.0			4.6			4.5			4.3			30.3	%		11.6			17.4			50.0	%
Total Operating Revenues		243.7			240.5			245.3			244.6			257.3			5.6	%		926.3			987.7			6.6	%
Operating Expenses
Interest credited		111.1			110.4			110.0			110.2			109.4			-1.5	%		445.5			440.0			-1.2	%
Benefits		(0.2	)		2.0			0.1			(0.1	)		0.1			150.0	%		(3.0	)		2.1			170.0	%
Underwriting, acquisition, insurance and other expenses		83.4			77.9			85.1			65.5			102.9			23.4	%		300.3			331.4			10.4	%
Total Operating Expenses		194.3			190.3			195.2			175.6			212.4			9.3	%		742.8			773.5			4.1	%
Income (loss) from operations before federal income taxes		49.4			50.2			50.1			69.0			44.9			-9.1	%		183.5			214.2			16.7	%
Federal income tax expense (benefit)		16.1			14.3			14.1			19.1			12.4			-23.0	%		50.1			59.9			19.6	%
Income (Loss) from Operations	$	33.3		$	35.9		$	36.0		$	49.9		$	32.5			-2.4	%	$	133.4		$	154.3			15.7	%
Effective Tax Rate		32.6	%		28.5	%		28.1	%		27.7	%		27.6	%					27.3	%		28.0	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,040.8		$	1,058.1		$	1,045.7		$	1,032.4		$	1,047.8					$	1,031.4		$	1,046.0
Average goodwill		20.2			20.2			20.2			20.2			20.2						20.2			20.2
Average equity, excluding goodwill	$	1,020.6		$	1,037.9		$	1,025.5		$	1,012.2		$	1,027.6					$	1,011.2		$	1,025.8
Return on Equity, Excluding AOCI
Including goodwill		12.8	%		13.6	%		13.8	%		19.3	%		12.4	%					12.9	%		14.8	%
Excluding goodwill		13.1	%		13.8	%		14.0	%		19.7	%		12.7	%					13.2	%		15.0	%
Income (Loss) from Operations - Basis Points on Average Account Values - Annualized		38			40			40			55			34			(4	)		42			42			-
Operating Realized Gain (Loss) (1)
GLB (3)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.4		$	0.4			0.0	%
Total Operating Realized Gain (Loss)	$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.4		$	0.4			0.0	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	18.1		$	16.3		$	15.8		$	15.2		$	17.2			-5.0	%	$	64.0		$	64.5			0.8	%
General and administrative expenses		59.2			52.9			57.6			60.1			71.3			20.4	%		219.8			241.9			10.1	%
Taxes, licenses and fees		2.9			3.8			3.1			2.9			3.2			10.3	%		12.2			13.0			6.6	%
Total commissions and expenses incurred		80.2			73.0			76.5			78.2			91.7			14.3	%		296.0			319.4			7.9	%
Less: commissions and expenses capitalized		(17.9	)		(15.9	)		(15.0	)		(15.1	)		(20.8	)		-16.2	%		(68.6	)		(66.8	)		2.6	%
Amortization of DAC and VOBA, net of interest		21.1			20.8			23.6			2.4			32.0			51.7	%		72.9			78.8			8.1	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	83.4		$	77.9		$	85.1		$	65.5		$	102.9			23.4	%	$	300.3		$	331.4			10.4	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized (4)		68			59			64			67			75			7			69			66			(3	)
DAC and VOBA
Balance as of beginning-of-period	$	550.4		$	537.7		$	462.1		$	375.2		$	277.4					$	883.3		$	537.7
Deferrals		17.9			15.9			15.0			15.1			20.8						68.6			66.8
Amortization, net of interest:
Unlocking		0.1			(1.4	)		(3.6	)		17.3			(8.2	)					5.8			4.1
Amortization, net of interest, excluding unlocking		(21.2	)		(19.4	)		(20.0	)		(19.7	)		(23.8	)					(78.7	)		(82.9	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		(3.2	)		(4.9	)		(8.6	)		12.7			(11.2	)					(4.3	)		(12.0	)
Amortization, net of interest, associated with benefit ratio unlocking		(0.2	)		(0.4	)		0.5			(0.5	)		-						(1.7	)		(0.4	)
Adjustment related to realized (gains) losses		0.8			0.4			(2.0	)		0.9			0.9						11.2			0.2
Adjustment related to unrealized (gains) losses		(10.1	)		(70.7	)		(76.8	)		(110.9	)		92.8						(350.8	)		(165.6	)
Balance as of End-of-Period	$	537.7		$	462.1		$	375.2		$	277.4		$	359.9					$	537.7		$	359.9
DSI
Balance as of beginning-of-period	$	2.6		$	2.7		$	2.5		$	2.3		$	1.9					$	2.0		$	2.7
Deferrals		0.1			0.1			-			-			0.1						1.0			0.2
Amortization, net of interest:
Unlocking		-			-			-			-			(0.2	)					0.1			(0.2	)
Amortization, net of interest, excluding unlocking		(0.1	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)					(0.5	)		(0.4	)
Deferrals, net of amortization included in operating interest credited		-			-			(0.1	)		(0.1	)		(0.2	)					0.6			(0.4	)
Adjustment related to realized (gains) losses		0.1			-			-			-			-						0.1			-
Adjustment related to unrealized (gains) losses		-			(0.2	)		(0.1	)		(0.3	)		0.3						-			(0.3	)
Balance as of End-of-Period	$	2.7		$	2.5		$	2.3		$	1.9		$	2.0					$	2.7		$	2.0

(1)	Included in income from operations.
(2)	Other revenues and fees consist primarily of mutual fund account program fees for mid-to-large employers.
(3)	See note (2) on page 6 for details.
(4)	Includes distribution costs.

12/31/2010																									PAGE 21
Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities (1)
Balance as of beginning-of-period	$	12.158		$	12.246		$	12.420		$	12.580		$	12.734			4.7	%	$	11.638			12.246			5.2	%
Gross deposits		0.299			0.316			0.327			0.349			0.340			13.7	%		1.342			1.332			-0.7	%
Withdrawals and deaths		(0.368	)		(0.341	)		(0.406	)		(0.455	)		(0.477	)		-29.6	%		(1.404	)		(1.679	)		-19.6	%
Net flows		(0.069	)		(0.025	)		(0.079	)		(0.106	)		(0.137	)		-98.6	%		(0.062	)		(0.347	)	NM
Transfers from variable annuities		0.044			0.090			0.130			0.148			0.072			63.6	%		0.228			0.440			93.0	%
Interest credited		0.113			0.109			0.109			0.112			0.110			-2.7	%		0.442			0.440			-0.5	%
Balance as of End-of-Period	$	12.246		$	12.420		$	12.580		$	12.734		$	12.779			4.4	%	$	12.246		$	12.779			4.4	%
Variable Annuities (2)
Balance as of beginning-of-period	$	12.620		$	12.953		$	13.250		$	11.967		$	12.956			2.7	%	$	10.588		$	12.953			22.3	%
Gross deposits		0.413			0.441			0.362			0.368			0.443			7.3	%		1.586			1.614			1.8	%
Withdrawals and deaths		(0.589	)		(0.637	)		(0.527	)		(0.473	)		(0.521	)		11.5	%		(1.888	)		(2.158	)		-14.3	%
Net flows		(0.176	)		(0.196	)		(0.165	)		(0.105	)		(0.078	)		55.7	%		(0.302	)		(0.544	)		-80.1	%
Transfers to fixed annuities		(0.012	)		(0.022	)		(0.047	)		(0.079	)		(0.021	)		-75.0	%		(0.176	)		(0.169	)		4.0	%
Investment increase and change in market value		0.521			0.515			(1.071	)		1.173			1.070			105.4	%		2.843			1.687			-40.7	%
Balance as of End-of-Period	$	12.953		$	13.250		$	11.967		$	12.956		$	13.927			7.5	%	$	12.953		$	13.927			7.5	%
Total Annuities
Balance as of beginning-of-period	$	24.778		$	25.199		$	25.670		$	24.547		$	25.690			3.7	%	$	22.226		$	25.199			13.4	%
Gross deposits		0.712			0.757			0.689			0.717			0.783			10.0	%		2.928			2.946			0.6	%
Withdrawals and deaths		(0.957	)		(0.978	)		(0.933	)		(0.928	)		(0.998	)		-4.3	%		(3.292	)		(3.837	)		-16.6	%
Net flows		(0.245	)		(0.221	)		(0.244	)		(0.211	)		(0.215	)		12.2	%		(0.364	)		(0.891	)	NM
Transfers between fixed and variable accounts		0.032			0.068			0.083			0.069			0.051			59.4	%		0.052			0.271		NM
Interest credited and change in market value		0.634			0.624			(0.962	)		1.285			1.180			86.1	%		3.285			2.127			-35.3	%
Balance as of End-of-Period	$	25.199		$	25.670		$	24.547		$	25.690		$	26.706			6.0	%	$	25.199		$	26.706			6.0	%
Alliance and Smart Future Mutual Funds (3)
Balance as of beginning-of-period	$	9.544		$	10.103		$	11.029		$	10.493		$	11.398			19.4	%	$	6.652		$	10.103			51.9	%
Plan/participant rollovers		0.086			0.103			0.267			0.147			0.188			118.6	%		0.552			0.705			27.7	%
Additional contributions		0.360			0.447			0.418			0.398			0.387			7.5	%		1.472			1.650			12.1	%
Gross deposits		0.446			0.550			0.685			0.545			0.575			28.9	%		2.024			2.355			16.4	%
Withdrawals and deaths		(0.263	)		(0.220	)		(0.259	)		(0.612	)		(0.664	)	NM				(0.665	)		(1.755	)	NM
Net flows		0.183			0.330			0.426			(0.067	)		(0.089	)	NM				1.359			0.600			-55.8	%
Transfers		(0.032	)		(0.063	)		(0.071	)		(0.059	)		(0.058	)		-81.3	%		(0.043	)		(0.251	)	NM
Other (4)		-			0.186			-			-			-		NM				-			0.186		NM
Interest credited and change in market value		0.408			0.473			(0.891	)		1.031			0.867			112.5	%		2.135			1.480			-30.7	%
Balance as of End-of-Period	$	10.103		$	11.029		$	10.493		$	11.398		$	12.118			19.9	%	$	10.103		$	12.118			19.9	%
Total Annuities and Mutual Funds
Balance as of beginning-of-period	$	34.322		$	35.302		$	36.699		$	35.040		$	37.088			8.1	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.158			1.307			1.374			1.262			1.358			17.3	%		4.952			5.301			7.0	%
Withdrawals and deaths		(1.220	)		(1.198	)		(1.192	)		(1.540	)		(1.662	)		-36.2	%		(3.957	)		(5.592	)		-41.3	%
Net flows		(0.062	)		0.109			0.182			(0.278	)		(0.304	)	NM				0.995			(0.291	)	NM
Transfers		-			0.005			0.012			0.010			(0.007	)	NM				0.009			0.020			122.2	%
Other (4)		-			0.186			-			-			-		NM				-			0.186		NM
Interest credited and change in market value		1.042			1.097			(1.853	)		2.316			2.047			96.4	%		5.420			3.607			-33.5	%
Balance as of End-of-Period	$	35.302		$	36.699		$	35.040		$	37.088		$	38.824			10.0	%	$	35.302		$	38.824			10.0	%
Variable Annuities Under Agreement - Included Above	$	0.009		$	0.009		$	0.008		$	0.009		$	0.010			11.1	%	$	0.009		$	0.010			11.1	%
Incremental Deposits (5)
Fixed annuities	$	0.298		$	0.315		$	0.325		$	0.348		$	0.338			13.4	%	$	1.337		$	1.326			-0.8	%
Variable annuities		0.413			0.440			0.362			0.368			0.442			7.0	%		1.585			1.612			1.7	%
Total annuities incremental deposits		0.711			0.755			0.687			0.716			0.780			9.7	%		2.922			2.938			0.5	%
Total Alliance mutual funds incremental deposits		0.446			0.550			0.686			0.545			0.575			28.9	%		2.024			2.356			16.4	%
Total Incremental Deposits	$	1.157		$	1.305		$	1.373		$	1.261		$	1.355			17.1	%	$	4.946		$	5.294			7.0	%

(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.

12/31/2010																						PAGE 22
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Total Micro - Small Segment
Balance as of beginning-of-period	$	5.785		$	5.863		$	5.966		$	5.544		$	5.954			2.9	%	$	4.888		$	5.863			19.9	%
Gross deposits		0.305			0.342			0.265			0.277			0.358			17.4	%		1.157			1.242			7.3	%
Withdrawals and deaths		(0.420	)		(0.422	)		(0.334	)		(0.291	)		(0.330	)		21.4	%		(1.273	)		(1.377	)		-8.2	%
Net flows		(0.115	)		(0.080	)		(0.069	)		(0.014	)		0.028			124.3	%		(0.116	)		(0.135	)		-16.4	%
Transfers between fixed and variable accounts		0.002			(0.001	)		-			(0.001	)		0.006			200.0	%		(0.002	)		0.004			300.0	%
Investment increase and change in market value		0.191			0.184			(0.353	)		0.425			0.408			113.6	%		1.093			0.664			-39.2	%
Balance as of End-of-Period	$	5.863		$	5.966		$	5.544		$	5.954		$	6.396			9.1	%	$	5.863		$	6.396			9.1	%
Total Mid - Large Segment
Balance as of beginning-of-period	$	12.972		$	13.653		$	14.767		$	14.384		$	15.398			18.7	%	$	9.540		$	13.653			43.1	%
Gross deposits		0.650			0.769			0.920			0.800			0.819			26.0	%		2.954			3.308			12.0	%
Withdrawals and deaths		(0.407	)		(0.350	)		(0.455	)		(0.858	)		(0.895	)	NM				(1.110	)		(2.558	)	NM
Net flows		0.243			0.419			0.465			(0.058	)		(0.076	)	NM				1.844			0.750			-59.3	%
Transfers between fixed and variable accounts		(0.001	)		0.006			0.012			0.011			(0.013	)	NM				0.012			0.016			33.3	%
Other (1)		-			0.186			-			-			-		NM				-			0.186			NM
Investment increase and change in market value		0.439			0.503			(0.860	)		1.061			0.898			104.6	%		2.257			1.602			-29.0	%
Balance as of End-of-Period	$	13.653		$	14.767		$	14.384		$	15.398		$	16.207			18.7	%	$	13.653		$	16.207			18.7	%
Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period	$	15.565		$	15.786		$	15.966		$	15.112		$	15.736			1.1	%	$	14.450		$	15.786			9.2	%
Gross deposits		0.203			0.196			0.189			0.185			0.181			-10.8	%		0.841			0.751			-10.7	%
Withdrawals and deaths		(0.393	)		(0.426	)		(0.403	)		(0.391	)		(0.437	)		-11.2	%		(1.574	)		(1.657	)		-5.3	%
Net flows		(0.190	)		(0.230	)		(0.214	)		(0.206	)		(0.256	)		-34.7	%		(0.733	)		(0.906	)		-23.6	%
Transfers between fixed and variable accounts		(0.001	)		-			-			-			-			100.0	%		(0.001	)		-			100.0	%
Investment increase and change in market value		0.412			0.410			(0.640	)		0.830			0.741			79.9	%		2.070			1.341			-35.2	%
Balance as of End-of-Period	$	15.786		$	15.966		$	15.112		$	15.736		$	16.221			2.8	%	$	15.786		$	16.221			2.8	%
Total Annuities and Mutual Funds (2)
Balance as of beginning-of-period	$	34.322		$	35.302		$	36.699		$	35.040		$	37.088			8.1	%	$	28.878		$	35.302			22.2	%
Gross deposits		1.158			1.307			1.374			1.262			1.358			17.3	%		4.952			5.301			7.0	%
Withdrawals and deaths		(1.220	)		(1.198	)		(1.192	)		(1.540	)		(1.662	)		-36.2	%		(3.957	)		(5.592	)		-41.3	%
Net flows		(0.062	)		0.109			0.182			(0.278	)		(0.304	)	NM				0.995			(0.291	)	NM
Transfers between fixed and variable accounts		-			0.005			0.012			0.010			(0.007	)	NM				0.009			0.020			122.2	%
Other (1)		-			0.186			-			-			-		NM				-			0.186
Investment increase and change in market value		1.042			1.097			(1.853	)		2.316			2.047			96.4	%		5.420			3.607			-33.5	%
Balance as of End-of-Period	$	35.302		$	36.699		$	35.040		$	37.088		$	38.824			10.0	%	$	35.302		$	38.824			10.0	%

(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.

12/31/2010																									PAGE 23
Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.224		$	0.236		$	0.250		$	0.272		$	0.259			15.6	%	$	1.011		$	1.017			0.6	%
Withdrawals and deaths		(0.201	)		(0.174	)		(0.245	)		(0.291	)		(0.300	)		-49.3	%		(0.667	)		(1.010	)		-51.4	%
Net flows	$	0.023		$	0.062		$	0.005		$	(0.019	)	$	(0.041	)	NM			$	0.344		$	0.007			-98.0	%
Fixed Contract Account Values	$	6.139		$	6.324		$	6.466		$	6.571		$	6.629			8.0	%	$	6.139		$	6.629			8.0	%
Fixed Portion of Variable Contracts
Deposits	$	0.075		$	0.080		$	0.077		$	0.077		$	0.081			8.0	%	$	0.331		$	0.315			-4.8	%
Withdrawals and deaths		(0.167	)		(0.167	)		(0.162	)		(0.163	)		(0.177	)		-6.0	%		(0.737	)		(0.669	)		9.2	%
Net flows	$	(0.092	)	$	(0.087	)	$	(0.085	)	$	(0.086	)	$	(0.096	)		-4.3	%	$	(0.406	)	$	(0.354	)		12.8	%
Fixed Portion of Variable Contract Account Values	$	6.107		$	6.096		$	6.114		$	6.163		$	6.150			0.7	%	$	6.107		$	6.150			0.7	%
Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	0.488		$	0.521		$	0.439		$	0.445		$	0.524			7.4	%	$	1.917		$	1.929			0.6	%
Withdrawals and deaths		(0.756	)		(0.804	)		(0.689	)		(0.636	)		(0.698	)		7.7	%		(2.625	)		(2.827	)		-7.7	%
Net flows	$	(0.268	)	$	(0.283	)	$	(0.250	)	$	(0.191	)	$	(0.174	)		35.1	%	$	(0.708	)	$	(0.898	)		-26.8	%
Variable Contract Account Values	$	19.060		$	19.346		$	18.081		$	19.119		$	20.077			5.3	%	$	19.060		$	20.077			5.3	%
Average Daily Variable Annuity Separate Account Values	$	12.726		$	12.909		$	12.855		$	12.471		$	13.485			6.0	%	$	11.315		$	12.930			14.3	%
																(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)		5.72	%		5.71	%		5.73	%		5.71	%		5.68	%		(4	)		5.76	%		5.70	%		(6	)
Commercial mortgage loan prepayment and bond make whole premiums		0.08	%		0.01	%		0.04	%		0.04	%		0.20	%		12			0.04	%		0.08	%		4
Alternative investments		0.02	%		0.02	%		0.02	%		0.01	%		0.04	%		2			0.01	%		0.02	%		1
Net investment income yield on reserves		5.82	%		5.74	%		5.79	%		5.76	%		5.92	%		10			5.81	%		5.80	%		(1	)
Interest rate credited to contract holders		3.63	%		3.58	%		3.51	%		3.47	%		3.42	%		(21	)		3.70	%		3.49	%		(21	)
Interest rate spread		2.19	%		2.16	%		2.28	%		2.29	%		2.50	%		31			2.11	%		2.31	%		20

(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 and twelve months ended December 31, 2009, reduced our yields by
	approximately 6 bps and 13 bps, respectively.  There was no impact for periods in 2010.

12/31/2010																									PAGE 24
Insurance Solutions - Life Insurance
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	115.2		$	112.3		$	107.5		$	107.5		$	112.1			-2.7	%	$	392.5		$	439.4			11.9	%
Surrender charges		30.5			30.8			24.1			22.5			22.6			-25.9	%		111.6			100.0			-10.4	%
Mortality assessments		317.6			317.9			325.3			319.9			324.3			2.1	%		1,298.8			1,287.4			-0.9	%
Expense assessments		127.4			128.7			125.9			109.0			183.1			43.7	%		491.0			546.7			11.3	%
Net investment income		528.2			530.1			545.0			542.8			567.9			7.5	%		1,974.5			2,185.8			10.7	%
Amortization of deferred loss on business sold throughreinsurance		1.4			-			-			-			-			-100.0	%		-			-		NM
Other revenues and fees		6.0			8.5			8.2			6.2			7.4			23.3	%		26.9			30.3			12.6	%
Total Operating Revenues		1,126.3			1,128.3			1,136.0			1,107.9			1,217.4			8.1	%		4,295.3			4,589.6			6.9	%
Operating Expenses
Interest credited		297.7			296.9			298.8			299.5			302.9			1.7	%		1,184.2			1,198.1			1.2	%
Benefits		374.6			398.9			374.2			561.0			400.7			7.0	%		1,374.0			1,734.8			26.3	%
Underwriting, acquisition, insurance and other expenses		221.9			230.5			241.8			167.6			267.8			20.7	%		923.0			907.7			-1.7	%
Total Operating Expenses		894.2			926.3			914.8			1,028.1			971.4			8.6	%		3,481.2			3,840.6			10.3	%
Income (loss) from operations before federal income taxes		232.1			202.0			221.2			79.8			246.0			6.0	%		814.1			749.0			-8.0	%
Federal income tax expense (benefit)		74.5			65.3			70.0			19.9			80.5			8.1	%		244.9			235.7			-3.8	%
Income (Loss) from Operations	$	157.6		$	136.7		$	151.2		$	59.9		$	165.5			5.0	%	$	569.2		$	513.3			-9.8	%
Effective Tax Rate		32.1	%		32.3	%		31.6	%		24.9	%		32.7	%					30.1	%		31.5	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	8,348.8		$	8,254.0		$	8,405.0		$	8,433.9		$	8,403.4					$	8,154.6		$	8,374.1
Average goodwill		2,188.5			2,188.5			2,188.5			2,188.5			2,188.5						2,188.5			2,188.5
Average equity, excluding goodwill	$	6,160.3		$	6,065.5		$	6,216.5		$	6,245.4		$	6,214.9					$	5,966.1		$	6,185.6
Return on Equity, Excluding AOCI
Including goodwill		7.6	%		6.6	%		7.2	%		2.8	%		7.9	%					7.0	%		6.1	%
Excluding goodwill		10.2	%		9.0	%		9.7	%		3.8	%		10.7	%					9.5	%		8.3	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	197.8		$	167.1		$	150.3		$	156.4		$	190.4			-3.7	%	$	675.6		$	664.2			-1.7	%
General and administrative expenses		121.4			103.2			105.2			110.5			132.4			9.1	%		450.7			451.3			0.1	%
Expenses associated with reserve financing		1.4			4.2			7.7			13.2			12.1		NM				5.8			37.2		NM
Taxes, licenses and fees		28.5			32.2			27.2			31.1			37.6			31.9	%		115.4			128.1			11.0	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%		4.0			4.0			0.0	%
Total commissions and expenses incurred		350.1			307.7			291.4			312.2			373.5			6.7	%		1,251.5			1,284.8			2.7	%
Less: commissions and expenses capitalized		(264.2	)		(223.0	)		(208.2	)		(213.0	)		(270.7	)		-2.5	%		(899.6	)		(914.9	)		-1.7	%
Amortization of DAC and VOBA, net of interest		136.0			145.8			158.6			68.4			165.0			21.3	%		571.1			537.8			-5.8	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	221.9		$	230.5		$	241.8		$	167.6		$	267.8			20.7	%	$	923.0		$	907.7			-1.7	%
General and Administrative Expenses - Basis Points on Average Account Values - Annualized		154			129			131			137			160			6			146			140			(6	)
DAC and VOBA
Balance as of beginning-of-period	$	6,189.4		$	6,427.9		$	6,285.0		$	5,836.9		$	5,538.6					$	7,399.4		$	6,427.9
Business sold through reinsurance		-			-			-			-			-						(292.9	)		-
Deferrals		264.2			223.0			208.2			213.0			270.7						899.6			914.9
Amortization, net of interest:
Unlocking		(3.7	)		(14.7	)		(2.1	)		29.2			(14.2	)					(74.6	)		(1.8	)
Other amortization, net of interest, excluding unlocking		(132.3	)		(131.1	)		(156.5	)		(97.6	)		(150.8	)					(496.5	)		(536.0	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		128.2			77.2			49.6			144.6			105.7						328.5			377.1
Adjustment related to realized (gains) losses		38.3			2.5			(4.5	)		23.1			(23.0	)					101.1			(1.9	)
Adjustment related to unrealized (gains) losses		72.0			(222.6	)		(493.2	)		(466.0	)		523.5						(1,108.2	)		(658.3	)
Balance as of End-of-Period	$	6,427.9		$	6,285.0		$	5,836.9		$	5,538.6		$	6,144.8					$	6,427.9		$	6,144.8
DFEL
Balance as of beginning-of-period	$	1,057.8		$	1,155.2		$	1,154.0		$	1,106.3		$	1,091.4					$	888.7		$	1,155.2
Business sold through reinsurance		-			-			-			-			-						(11.0	)		-
Deferrals		133.8			118.3			114.1			122.7			116.6						439.2			471.7
Amortization, net of interest:
Unlocking		(3.0	)		(8.1	)		(6.6	)		5.8			(15.4	)					(34.5	)		(24.3	)
Other amortization, net of interest, excluding unlocking		(36.0	)		(38.5	)		(41.7	)		(29.5	)		(40.7	)					(135.4	)		(150.4	)
Deferrals, net of amortization included in operating expense assessments		94.8			71.7			65.8			99.0			60.5						269.3			297.0
Adjustment related to realized gains (losses)		3.1			0.1			(0.4	)		5.3			(5.3	)					6.7			(0.3	)
Adjustment related to unrealized gains (losses)		(0.5	)		(73.0	)		(113.1	)		(119.2	)		133.3						1.5			(172.0	)
Balance as of End-of-Period	$	1,155.2		$	1,154.0		$	1,106.3		$	1,091.4		$	1,279.9					$	1,155.2		$	1,279.9

12/31/2010																									PAGE 25
Insurance Solutions - Life Insurance
Additional Operational Data
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	117.7		$	90.1		$	78.2		$	77.3		$	107.1			-9.0	%	$	396.3		$	352.7			-11.0	%
MoneyGuard®		23.3			18.5			23.0			26.5			40.5			73.8	%		67.0			108.5			61.9	%
Total		141.0			108.6			101.2			103.8			147.6			4.7	%		463.3			461.2			-0.5	%
VUL		13.3			7.7			9.7			10.8			14.8			11.3	%		36.1			43.0			19.1	%
COLI and BOLI (1)		20.7			6.8			10.3			17.8			28.0			35.3	%		51.5			62.9			22.1	%
Term		19.8			19.5			18.6			16.0			15.4			-22.2	%		59.0			69.5			17.8	%
Total	$	194.8		$	142.6		$	139.8		$	148.4		$	205.8			5.6	%	$	609.9		$	636.6			4.4	%
First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	329.5		$	262.5		$	231.1		$	235.9		$	339.2			2.9	%	$	1,014.5		$	1,068.7			5.3	%
MoneyGuard®		154.4			122.4			153.9			177.4			259.9			68.3	%		444.5			713.6			60.5	%
Total		483.9			384.9			385.0			413.3			599.1			23.8	%		1,459.0			1,782.3			22.2	%
VUL		38.6			17.1			23.3			30.3			37.5			-2.8	%		94.1			108.2			15.0	%
COLI and BOLI (1)		46.9			11.9			23.7			59.9			164.0			249.7	%		148.8			259.5			74.4	%
Term		19.8			19.5			18.6			16.0			15.4			-22.2	%		59.0			69.5			17.8	%
Total	$	589.2		$	433.4		$	450.6		$	519.5		$	816.0			38.5	%	$	1,760.9		$	2,219.5			26.0	%
Life Insurance In Force
UL and other	$	291.879		$	292.204		$	293.013		$	294.171		$	297.837			2.0	%	$	291.879		$	297.837			2.0	%
Term insurance		248.726			254.115			259.450			262.583			265.154			6.6	%		248.726			265.154			6.6	%
Total	$	540.605		$	546.319		$	552.463		$	556.754		$	562.991			4.1	%	$	540.605		$	562.991			4.1	%
																(Basis Point)									(Basis Point)
Interest-Sensitive Products Interest Rate Spreads(2)																Change									Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (3)		5.88	%		5.82	%		5.91	%		5.93	%		5.84	%		(4	)		5.93	%		5.87	%		(6	)
Commercial mortgage loan prepayment and bond make-whole premiums		0.07	%		0.05	%		0.07	%		0.03	%		0.21	%		14			0.04	%		0.09	%		5
Alternative investments		0.05	%		0.18	%		0.19	%		0.11	%		0.18	%		13			-0.25	%		0.17	%		42
Net investment income yield on reserves		6.00	%		6.05	%		6.17	%		6.07	%		6.23	%		23			5.72	%		6.13	%		41
Interest rate credited to contract holders		4.25	%		4.18	%		4.18	%		4.15	%		4.14	%		(11	)		4.23	%		4.16	%		(7	)
Interest rate spread		1.75	%		1.87	%		1.99	%		1.92	%		2.09	%		34			1.49	%		1.97	%		48
Traditional Products Interest Rate Spreads(4)
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses		6.01	%		6.23	%		6.11	%		5.99	%		6.17	%		16			5.99	%		6.12	%		13
Commercial mortgage loan prepayment and bond make-whole premiums		0.00	%		0.00	%		0.04	%		0.12	%		0.12	%		12			0.01	%		0.07	%		6
Alternative investments		0.01	%		0.02	%		0.01	%		0.01	%		0.03	%		2			0.00	%		0.02	%		2
Net investment income yield on reserves		6.02	%		6.25	%		6.16	%		6.12	%		6.32	%		30			6.00	%		6.21	%		21

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	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.
(3)	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 December 31, 2009, March 31, 2010, June 30, 2010, and December 31, 2010 reduced our yields by approximately
	13 bps, 11 bps, 2 bps, and 1 bp, respectively.  There was no impact for the three months ended September 30, 2010.  The increased cash and short-term investment balances for the
	year ended December 31, 2009 and 2010 reduced yields by approximately 8 bps and 2 bps, respectively.
(4)	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
	December 31, 2010, interest-sensitive products represented approximately 88% of total interest-sensitive and traditional earning assets.

12/31/2010																									PAGE 26
Insurance Solutions - Life Insurance
Account Value Roll Forwards
Unaudited (billions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Interest-Sensitive Life (1)
Balance as of beginning-of-period		27.825			28.192			28.355			28.584			28.794			3.5	%		27.502			28.192			2.5	%
Deposits		1.067			0.910			0.911			0.983			1.324			24.1	%		3.621			4.128			14.0	%
Withdrawals and deaths		(0.296	)		(0.367	)		(0.314	)		(0.384	)		(0.318	)		-7.4	%		(1.462	)		(1.383	)		5.4	%
Net flows		0.771			0.543			0.597			0.599			1.006			30.5	%		2.159			2.745			27.1	%
Contract holder assessments		(0.698	)		(0.673	)		(0.663	)		(0.687	)		(0.734	)		-5.2	%		(2.631	)		(2.757	)		-4.8	%
Interest credited		0.294			0.293			0.295			0.298			0.299			1.7	%		1.162			1.185			2.0	%
Balance as of End-of-Period (Gross)		28.192			28.355			28.584			28.794			29.365			4.2	%		28.192			29.365			4.2	%
Reinsurance ceded		(0.917	)		(0.911	)		(0.903	)		(0.899	)		(0.888	)		3.2	%		(0.917	)		(0.888	)		3.2	%
Balance as of End-of-Period (Net of Ceded)	$	27.275		$	27.444		$	27.681		$	27.895		$	28.477			4.4	%	$	27.275		$	28.477			4.4	%
VUL
Balance as of beginning-of-period	$	5.176		$	5.287		$	5.467		$	5.027		$	5.562			7.5	%	$	4.251		$	5.287			24.4	%
Deposits		0.233			0.167			0.152			0.247			0.240			3.0	%		0.830			0.806			-2.9	%
Withdrawals and deaths		(0.243	)		(0.108	)		(0.099	)		(0.121	)		(0.166	)		31.7	%		(0.570	)		(0.494	)		13.3	%
Net flows		(0.010	)		0.059			0.053			0.126			0.074		NM				0.260			0.312			20.0	%
Contract holder assessments		(0.092	)		(0.090	)		(0.089	)		(0.090	)		(0.092	)		0.0	%		(0.365	)		(0.361	)		1.1	%
Investment income and change in market value		0.213			0.211			(0.404	)		0.499			0.418			96.2	%		1.141			0.724			-36.5	%
Balance as of End-of-Period (Gross)		5.287			5.467			5.027			5.562			5.962			12.8	%		5.287			5.962			12.8	%
Reinsurance ceded		(0.820	)		(0.837	)		(0.743	)		(0.803	)		(0.854	)		-4.1	%		(0.820	)		(0.854	)		-4.1	%
Balance as of End-of-Period (Net of Ceded)	$	4.467		$	4.630		$	4.284		$	4.759		$	5.108			14.3	%	$	4.467		$	5.108			14.3	%
Total Life Insurance
Balance as of beginning-of-period	$	33.001		$	33.479		$	33.822		$	33.611		$	34.356			4.1	%	$	31.753		$	33.479			5.4	%
Deposits		1.300			1.077			1.063			1.230			1.564			20.3	%		4.451			4.934			10.9	%
Withdrawals and deaths		(0.539	)		(0.475	)		(0.413	)		(0.505	)		(0.484	)		10.2	%		(2.032	)		(1.877	)		7.6	%
Net flows		0.761			0.602			0.650			0.725			1.080			41.9	%		2.419			3.057			26.4	%
Contract holder assessments		(0.790	)		(0.763	)		(0.752	)		(0.777	)		(0.826	)		-4.6	%		(2.996	)		(3.118	)		-4.1	%
Investment income and change in market value		0.507			0.504			(0.109	)		0.797			0.717			41.4	%		2.303			1.909			-17.1	%
Balance as of End-of-Period (Gross)		33.479			33.822			33.611			34.356			35.327			5.5	%		33.479			35.327			5.5	%
Reinsurance ceded		(1.737	)		(1.748	)		(1.646	)		(1.702	)		(1.742	)		-0.3	%		(1.737	)		(1.742	)		-0.3	%
Balance as of End-of-Period (Net of Ceded)	$	31.742		$	32.074		$	31.965		$	32.654		$	33.585			5.8	%	$	31.742		$	33.585			5.8	%

(1) Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.

12/31/2010																									PAGE 27
Insurance Solutions - Group Protection
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	396.4		$	409.9		$	433.7		$	414.5		$	424.2			7.0	%	$	1,579.0		$	1,682.3			6.5	%
Mortality assessments		-			-			-			-			-		NM				0.1			-			-100.0	%
Net investment income		35.7			33.6			34.3			35.0			38.1			6.7	%		127.4			141.0			10.7	%
Other revenues and fees		1.5			1.7			2.1			2.0			2.0			33.3	%		6.0			7.8			30.0	%
Total Operating Revenues		433.6			445.2			470.1			451.5			464.3			7.1	%		1,712.5			1,831.1			6.9	%
Operating Expenses
Interest credited		0.7			0.5			0.1			-			-			-100.0	%		2.3			0.6			(0.7	)
Benefits		281.1			310.7			334.1			330.4			323.8			15.2	%		1,117.4			1,299.0			16.3	%
Underwriting, acquisition, insurance and other expenses		105.4			101.1			101.3			106.4			112.8			7.0	%		402.0			421.6			4.9	%
Total Operating Expenses		387.2			412.3			435.5			436.8			436.6			12.8	%		1,521.7			1,721.2			13.1	%
Income (loss) from operations before federal income taxes		46.4			32.9			34.6			14.7			27.7			-40.3	%		190.8			109.9			-42.4	%
Federal income tax expense (benefit)		16.3			11.5			11.9			5.2			9.7			-40.5	%		66.9			38.3			-42.8	%
Income (Loss) from Operations	$	30.1		$	21.4		$	22.7		$	9.5		$	18.0			-40.2	%	$	123.9		$	71.6			-42.2	%
Effective Tax Rate		35.1	%		35.0	%		34.4	%		35.4	%		35.0	%					35.1	%		34.8	%
Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,061.7		$	1,075.0		$	1,107.7		$	1,138.2		$	1,163.2					$	1,045.2		$	1,121.0
Average goodwill		274.3			274.3			274.3			274.3			274.3						274.3			274.3
Average equity, excluding goodwill	$	787.4		$	800.7		$	833.4		$	863.9		$	888.9					$	770.9		$	846.7
Return on Equity, Excluding AOCI
Including goodwill		11.3	%		8.0	%		8.2	%		3.3	%		6.2	%					11.9	%		6.4	%
Excluding goodwill		15.3	%		10.7	%		10.9	%		4.4	%		8.1	%					16.1	%		8.5	%
Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	44.5		$	46.9		$	46.9		$	47.5		$	48.7			9.4	%	$	175.6		$	190.0			8.2	%
General and administrative expenses		60.0			46.8			49.3			51.1			61.1			1.8	%		203.7			208.3			2.3	%
Taxes, licenses and fees		9.1			10.9			8.0			10.2			9.8			7.7	%		36.2			38.9			7.5	%
Total commissions and expenses incurred		113.6			104.6			104.2			108.8			119.6			5.3	%		415.5			437.2			5.2	%
Less: commissions and expenses capitalized		(20.8	)		(14.6	)		(13.5	)		(12.7	)		(20.6	)		1.0	%		(59.3	)		(61.4	)		-3.5	%
Amortization of DAC and VOBA, net of interest		12.6			11.1			10.6			10.3			13.8			9.5	%		45.8			45.8			0.0	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	105.4		$	101.1		$	101.3		$	106.4		$	112.8			7.0	%	$	402.0		$	421.6			4.9	%
General and Administrative Expenses as a Percentage of Premiums		15.1	%		11.4	%		11.4	%		12.3	%		14.4	%					12.9	%		12.4	%
DAC and VOBA
Balance as of beginning-of-period	$	151.2		$	159.5		$	163.0		$	165.9		$	168.3					$	145.9		$	159.5
Deferrals		20.9			14.6			13.5			12.7			20.6						59.4			61.4
Amortization, net of interest		(12.6	)		(11.1	)		(10.6	)		(10.3	)		(13.9	)					(45.8	)		(45.9	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		8.3			3.5			2.9			2.4			6.7						13.6			15.5
Balance as of End-of-Period	$	159.5		$	163.0		$	165.9		$	168.3		$	175.0					$	159.5		$	175.0
Annualized Sales by Product Line
Life	$	67.2		$	24.0		$	23.4		$	23.9		$	60.7			-9.7	%	$	142.4		$	132.0			-7.3	%
Disability		78.3			28.8			28.2			28.3			68.6			-12.4	%		169.6			153.9			-9.3	%
Dental		21.3			10.3			13.6			16.2			26.7			25.4	%		48.4			66.8			38.0	%
Total	$	166.8		$	63.1		$	65.2		$	68.4		$	156.0			-6.5	%	$	360.4		$	352.7			-2.1	%
Insurance Premiums by Product Line
Life	$	152.1		$	157.2		$	160.3		$	158.4		$	163.2			7.3	%	$	584.1		$	639.1			9.4	%
Disability		174.1			178.3			181.7			181.9			184.8			6.1	%		692.2			726.7			5.0	%
Dental		37.7			39.5			40.8			42.6			44.2			17.2	%		148.6			167.1			12.4	%
Other		32.5			34.9			50.9			31.6			32.0			-1.5	%		154.1			149.4			-3.0	%
Total	$	396.4		$	409.9		$	433.7		$	414.5		$	424.2			7.0	%	$	1,579.0		$	1,682.3			6.5	%
Income (Loss) from Operations by Product Line
Life	$	13.3		$	3.4		$	16.1		$	4.8		$	12.4			-6.8	%	$	42.4		$	36.7			-13.4	%
Disability		15.6			18.6			6.6			4.0			4.5			-71.2	%		78.9			33.7			-57.3	%
Dental		1.1			(1.8	)		(1.4	)		(0.6	)		(0.2	)	NM				(2.1	)		(4.0	)		-90.5	%
Other		0.1			1.2			1.4			1.3			1.3		NM				4.7			5.2			10.6	%
Total	$	30.1		$	21.4		$	22.7		$	9.5		$	18.0			-40.2	%	$	123.9		$	71.6			-42.2	%
Loss Ratios by Product Line
Life		69.6	%		82.4	%		69.7	%		79.2	%		72.0	%					72.0	%		75.8	%
Disability		67.5	%		65.5	%		78.6	%		79.2	%		78.2	%					64.0	%		75.4	%
Dental		76.6	%		86.1	%		84.4	%		79.3	%		76.8	%					81.7	%		81.5	%
Combined Loss Ratios		69.3	%		74.8	%		75.5	%		79.2	%		75.5	%					69.1	%		76.2	%

12/31/2010																									PAGE 28
Other Operations
Unaudited (in millions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Operating Revenues
Insurance premiums	$	0.4		$	(0.3	)	$	0.3		$	0.1		$	1.4			250.0	%	$	4.0		$	1.5			-62.5	%
Net investment income		86.5			85.4			77.8			80.7			81.7			-5.5	%		307.1			325.6			6.0	%
Amortization of deferred gain on business sold through reinsurance (1)		18.3			18.2			18.0			18.1			18.2			-0.5	%		73.4			72.5			-1.2	%
Other revenues and fees		4.0			4.6			6.4			3.1			(1.4	)	NM				12.6			12.7			0.8	%
Communications revenues		16.7			15.5			18.1			19.6			21.7			29.9	%		67.8			74.9			10.5	%
Total Operating Revenues		125.9			123.4			120.6			121.6			121.6			-3.4	%		464.9			487.2			4.8	%
Operating Expenses
Interest credited		32.8			33.6			28.1			27.8			30.3			-7.6	%		148.0			119.8			-19.1	%
Benefits		79.0			34.1			35.3			35.2			34.0			-57.0	%		257.6			138.6			-46.2	%
Underwriting, acquisition, insurance and other expenses		27.0			27.7			38.7			31.3			85.0			214.8	%		141.6			182.7			29.0	%
Inter-segment reimbursement associated with reserve financing and LOC expenses (2)		-			(0.4	)		0.2			(0.8	)		(1.4	)	NM				0.1			(2.4	)	NM
Taxes, licenses and fees		(20.2	)		1.5			(2.7	)		0.2			(2.9	)		85.6	%		(16.5	)		(3.9	)		76.4	%
Interest and debt expenses		68.1			68.1			69.0			74.5			74.3			9.1	%		261.7			285.9			9.2	%
Communications expenses		12.9			13.8			14.5			14.9			16.0			24.0	%		52.6			59.2			12.5	%
Total Operating Expenses		199.6			178.4			183.1			183.1			235.3			17.9	%		845.1			779.9			-7.7	%
Income (Loss) from operations before federal income taxes		(73.7	)		(55.0	)		(62.5	)		(61.5	)		(113.7	)		-54.3	%		(380.2	)		(292.7	)		23.0	%
Federal income tax expense (benefit)		(30.2	)		(18.4	)		(26.4	)		(21.8	)		(40.0	)		-32.5	%		(143.3	)		(106.6	)		25.6	%
Income (Loss) From Operations	$	(43.5	)	$	(36.6	)	$	(36.1	)	$	(39.7	)	$	(73.7	)		-69.4	%	$	(236.9	)	$	(186.1	)		21.4	%
Run Off Institutional Pensions Account Values - Balance at End-of-Period	$	1.911		$	1.909		$	1.891		$	1.881		$	1.869			-2.2	%	$	1.911		$	1.869			-2.2	%
Discontinued Operations
Unaudited (in millions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
		2009			2010			2010			2010			2010		Change				2009			2010		Change
Discontinued Operations Before Disposal
Income (loss) from discontinued operations before federal income taxes	$	7.2		$	(16.9	)	$	4.2		$	-		$	-			-100.0	%	$	74.7		$	(12.7	)	NM
Federal income tax expense (benefit)		4.1			(2.6	)		1.5			-			-			-100.0	%		30.7			(1.1	)	NM
Income (Loss) From Discontinued Operations Before Disposal		3.1			(14.3	)		2.7			-			-			-100.0	%		44.0			(11.6	)	NM
Disposal
Gain (loss) on disposal before federal income taxes		1.0			64.8			-			1.2			-			-100.0	%		(219.3	)		66.0			130.1	%
Federal income tax expense (benefit)		-			22.6			-			2.9			-		NM				(105.3	)		25.5			124.2	%
Gain (Loss) on Disposal		1.0			42.2			-			(1.7	)		-			-100.0	%		(114.0	)		40.5			135.5	%
Income (Loss) From Discontinued Operations	$	4.1		$	27.9		$	2.7		$	(1.7	)	$	-			-100.0	%	$	(70.0	)	$	28.9			141.3	%

(1)	Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.
(2)	Represents reimbursements to Other Operations from the Insurance Solutions - Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as
	long-term structured solutions, net of expenses incurred by Other Operations for its use of LOCs.  The inter-segment amounts are not reported on our Consolidated Statements of Income.

12/31/2010																									PAGE 29
Consolidated Deposits, Net Flows and Account Balances
Unaudited (in billions)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.195		$	1.138		$	1.501		$	1.774		$	1.155			-3.3	%	$	6.355		$	5.568			-12.4	%
Defined Contribution - fixed annuities		0.299			0.316			0.327			0.349			0.340			13.7	%		1.342			1.332			-0.7	%
Annuities - variable annuities		1.266			1.138			1.322			1.204			1.435			13.3	%		4.007			5.099			27.3	%
Defined Contribution - variable products (2)		0.859			0.991			1.047			0.913			1.018			18.5	%		3.610			3.969			9.9	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		1.067			0.910			0.911			0.983			1.324			24.1	%		3.621			4.128			14.0	%
VUL		0.233			0.167			0.152			0.247			0.240			3.0	%		0.830			0.806			-2.9	%
Total Deposits	$	4.919		$	4.660		$	5.260		$	5.470		$	5.512			12.1	%		19.765			20.902			5.8	%
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)	$	0.672		$	0.652		$	1.045		$	1.289		$	0.562			-16.4	%	$	3.920		$	3.548			-9.5	%
Defined Contribution - fixed annuities		(0.069	)		(0.025	)		(0.079	)		(0.106	)		(0.137	)		-98.6	%		(0.062	)		(0.347	)	NM
Annuities - variable annuities		0.146			(0.077	)		0.108			(0.005	)		(0.019	)	NM				(0.027	)		0.007			125.9	%
Defined Contribution - variable products (2)		0.007			0.134			0.261			(0.172	)		(0.167	)	NM				1.057			0.056			-94.7	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.771			0.543			0.597			0.599			1.006			30.5	%		2.159			2.745			27.1	%
VUL		(0.010	)		0.059			0.053			0.126			0.074		NM				0.260			0.312			20.0	%
Total Net Flows	$	1.517		$	1.286		$	1.985		$	1.731		$	1.319			-13.1	%		7.307			6.321			-13.5	%
	As of
	Dec.			March			June			Sept.			Dec.			%
	2009			2010			2010			2010			2010			Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)	$	18.913		$	19.031		$	19.403		$	20.097		$	19.990			5.7	%
Defined Contribution - fixed annuities		12.246			12.420			12.580			12.734			12.779			4.4	%
Annuities - variable annuities		55.368			57.815			53.921			60.132			64.858			17.1	%
Defined Contribution - variable products (2)		23.056			24.279			22.460			24.354			26.045			13.0	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		27.275			27.444			27.681			27.895			28.477			4.4	%
VUL		4.467			4.630			4.284			4.759			5.108			14.3	%
Total Account Balances	$	141.325		$	145.619		$	140.329		$	149.971		$	157.257			11.3	%

(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.

12/31/2010																									PAGE 30
Consolidated Investment Data
Unaudited (millions of dollars)
	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2009			2010			2010			2010			2010			Change			2009			2010			Change
Net Investment Income
Available-for-sale fixed maturity securities	$	903.4		$	905.5		$	918.2		$	946.6		$	972.6			7.7	%	$	3,487.6		$	3,742.9			7.3	%
Available-for-sale equity securities		2.2			1.8			1.2			1.2			1.5			-31.8	%		7.5			5.7			-24.0	%
Available-for-sale VIEs' fixed maturity securities		-			3.8			3.8			3.5			3.1		NM				-			14.2		NM
Trading securities		40.2			39.4			39.2			39.1			39.4			-2.0	%		158.8			157.1			-1.1	%
Mortgage loans on real estate		118.2			112.8			111.3			105.7			111.6			-5.6	%		471.6			441.4			-6.4	%
Real estate		8.1			6.6			5.4			6.2			6.4			-21.0	%		19.0			24.6			29.5	%
Policy loans		43.2			42.1			43.4			41.4			42.0			-2.8	%		171.6			168.9			-1.6	%
Invested cash		1.6			1.4			1.8			2.3			1.8			12.5	%		15.0			7.3			-51.3	%
Other investments		36.5			22.4			26.1			16.6			33.3			-8.8	%		(39.8	)		98.4		NM
Investment income		1,153.4			1,135.8			1,150.4			1,162.6			1,211.7			5.1	%		4,291.3			4,660.5			8.6	%
Investment expense		(31.1	)		(29.7	)		(30.6	)		(30.3	)		(29.0	)		6.8	%		(113.8	)		(119.6	)		-5.1	%
Net Investment Income	$	1,122.3		$	1,106.1		$	1,119.8		$	1,132.3		$	1,182.7			5.4	%	$	4,177.5		$	4,540.9			8.7	%
Average Invested Assets (Amortized Cost)	$	74,731.7		$	75,458.8		$	76,978.3		$	78,516.9		$	79,383.3					$	72,359.2		$	77,584.3
Net investment income yield on invested assets		6.01	%		5.86	%		5.82	%		5.77	%		5.96	%					5.77	%		5.85	%
Realized Gain (Loss) Related to Investments
Available-for-sale fixed maturity securities:
Gross gains	$	51.5		$	49.8		$	34.6		$	11.8		$	10.9			-78.8	%	$	161.4		$	107.1			-33.6	%
Gross losses		(129.3	)		(83.6	)		(29.4	)		(61.3	)		(73.7	)		43.0	%		(708.6	)		(248.0	)		65.0	%
Equity securities:
Gross gains		1.5			0.1			5.4			3.3			-			-100.0	%		5.6			8.8			57.1	%
Gross losses		(10.9	)		(3.5	)		-			-			-			100.0	%		(27.3	)		(3.5	)		87.2	%
Gain (loss) on other investments		(72.0	)		(21.6	)		(8.0	)		(3.3	)		(19.8	)		72.5	%		(130.4	)		(52.7	)		59.6	%
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds and funds withheld reinsurance liabilities		32.6			3.8			(7.7	)		23.4			(11.6	)	NM				161.3			7.9			-95.1	%
Total realized gain (loss) on investments, pre-tax		(126.6	)		(55.0	)		(5.1	)		(26.1	)		(94.2	)		25.6	%		(538.0	)		(180.4	)		66.5	%
Federal income tax expense (benefit) (1)		(44.3	)		(19.3	)		(1.8	)		(9.1	)		(33.0	)		25.5	%		(188.3	)		(63.2	)		66.4	%
Total, After-Tax	$	(82.3	)	$	(35.7	)	$	(3.3	)	$	(17.0	)	$	(61.2	)		25.6	%	$	(349.7	)	$	(117.2	)		66.5	%
				As of December 31, 2009									As of December 31, 2010
				Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)				$	63,320.8			99.6	%				$	71,208.1			99.7	%
Fixed maturity securities (amortized cost)					63,097.0			99.4	%					68,084.2			99.7	%
Equity securities (fair value)					280.5			0.4	%					199.3			0.3	%
Equity securities (amortized cost)					383.7			0.6	%					180.8			0.3	%
% of Available-for-Sale Fixed Maturity Securities, Based on Fair Value
Treasuries and AAA								19.3	%								18.1	%
AA or better								27.3	%								28.2	%
BB or less								6.9	%								5.7	%
General Account Investments				As of December 31, 2009									As of December 31, 2010
				Amount			% of Total						Amount			% of Total
Fixed Maturities - Security Sector:
Corporate bonds				$	45,380.5			74.6	%				$	51,740.5			75.4	%
U.S. Government bonds					194.2			0.3	%					164.8			0.2	%
Foreign government bonds					504.9			0.8	%					508.3			0.7	%
Mortgage-backed securities					11,103.3			18.3	%					10,890.4			15.9	%
Asset-backed securities					479.8			0.8	%					173.8			0.3	%
State and municipal bonds					1,967.6			3.2	%					3,155.4			4.6	%
Hybrid and redeemable preferred securities					1,188.0			2.0	%					1,397.0			2.0	%
VIEs' fixed maturity securities					-			0.0	%					583.7			0.9	%
Total				$	60,818.3			100.0	%				$	68,613.9			100.0	%
	As of
Composition of Investment Portfolio		Dec. 2009			March 2010			June 2010			Sept. 2010			Dec. 2010		% Change
Available-for-sale securities, at fair value:
Fixed maturity	$	60,818.3		$	62,880.8		$	66,391.0		$	69,715.3		$	68,030.2			11.9	%
Equity		278.4			310.0			245.9			205.3			197.2			-29.2	%
VIEs' fixed maturity		-			579.5			581.4			585.3			583.7		NM
Trading securities		2,504.6			2,532.5			2,607.6			2,710.9			2,596.4			3.7	%
Mortgage loans on real estate and real estate		7,351.6			7,213.1			7,099.8			7,017.7			6,954.2			-5.4	%
Policy loans		2,897.8			2,902.8			2,901.8			2,879.1			2,864.7			-1.1	%
Derivative investments		1,010.1			992.4			1,988.9			1,903.9			1,076.0			6.5	%
Other investments		1,057.2			1,046.4			1,136.8			1,096.5			1,037.7			-1.8	%
Total	$	75,918.0		$	78,457.5		$	82,953.2		$	86,114.0		$	83,340.1			9.8	%

(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.