Lincoln Financial Group
Available-For-Sale ("AFS") Securities by Industry Classifications
(in millions)
	As of December 31, 2010											As of September 30, 2010
					Unrealized				%							Unrealized				%
	Amortized		Unrealized		Losses		Fair		Fair			Amortized		Unrealized		Losses		Fair		Fair
Fixed Maturity AFS Securities	Cost		Gains		and OTTI		Value		Value			Cost		Gains		and OTTI		Value		Value
Industry corporate bonds:
Financial services	$	8,377	$	437	$	148	$	8,666		12.7	%	$	8,420	$	633	$	127	$	8,926		12.7	%
Basic industry		2,478		204		20		2,662		3.9	%		2,411		257		19		2,649		3.8	%
Capital goods		3,425		243		45		3,623		5.3	%		3,290		366		5		3,651		5.2	%
Communications		3,050		251		32		3,269		4.8	%		3,013		366		21		3,358		4.8	%
Consumer cyclical		2,772		185		47		2,910		4.2	%		2,750		269		46		2,973		4.2	%
Consumer non-cyclical		7,259		628		20		7,867		11.5	%		7,205		964		7		8,162		11.6	%
Energy		4,533		428		17		4,944		7.2	%		4,474		580		5		5,049		7.2	%
Technology		1,414		108		9		1,513		2.2	%		1,295		161		-		1,456		2.1	%
Transportation		1,379		116		3		1,492		2.2	%		1,282		155		1		1,436		2.0	%
Industrial other		884		53		10		927		1.4	%		834		75		6		903		1.3	%
Utilities		9,800		708		62		10,446		15.2	%		9,695		1,086		20		10,761		15.3	%
Corporate asset-backed securities ("ABS"):
Collateralized debt obligations ("CDOs")		128		22		8		142		0.2	%		128		16		11		133		0.2	%
Commercial real estate ("CRE") CDOs		46		-		14		32		0.0	%		47		-		19		28		0.0	%
Credit card		831		33		4		860		1.3	%		834		44		6		872		1.2	%
Home equity		1,002		6		268		740		1.1	%		1,031		8		286		753		1.1	%
Manufactured housing		110		3		4		109		0.2	%		113		4		3		114		0.2	%
Auto loan		162		2		-		164		0.2	%		201		4		-		205		0.3	%
Other		211		21		1		231		0.3	%		226		26		1		251		0.4	%
Commercial mortgage-backed securities ("CMBS")
Non-agency backed		2,144		95		186		2,053		3.0	%		2,275		118		250		2,143		3.0	%
Collateralized mortgage and other obligations ("CMOs")
Agency backed		3,975		308		1		4,282		6.2	%		4,126		388		-		4,514		6.4	%
Non-agency backed		1,718		16		259		1,475		2.1	%		1,787		17		282		1,522		2.2	%
Mortgage pass through securities ("MPTS"):
Agency backed		2,978		106		5		3,079		4.5	%		3,165		148		-		3,313		4.7	%
Non-agency backed		2		-		-		2		0.0	%		2		-		-		2		0.0	%
Municipals:
Taxable		3,219		27		94		3,152		4.6	%		2,766		200		8		2,958		4.2	%
Tax-exempt		3		-		-		3		0.0	%		3		-		-		3		0.0	%
Government and government agencies:
United States		931		120		2		1,049		1.5	%		990		161		-		1,151		1.6	%
Foreign		1,438		94		7		1,525		2.2	%		1,416		157		6		1,567		2.2	%
Hybrid and redeemable preferred stock		1,476		56		135		1,397		2.0	%		1,523		67		142		1,448		2.1	%
Total fixed maturity AFS securities		65,745		4,270		1,401		68,614		100.0	%		65,302		6,270		1,271		70,301		100.0	%
Equity AFS Securities		179		25		7		197					174		35		4		205
Total AFS securities		65,924		4,295		1,408		68,811					65,476		6,305		1,275		70,506
Trading Securities (1)		2,340		297		41		2,596					2,361		389		39		2,711
Total AFS and trading securities	$	68,264	$	4,592	$	1,449	$	71,407				$	67,837	$	6,694	$	1,314	$	73,217

(1) Certain of our trading securities support our modified coinsurance arrangements ("Modco") and the investment results are passed directly to the reinsurers.  Refer to the "Trading Securities" section of our 2009 Form 10-K for further details.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of December 31, 2010
(in millions)
	Prime Agency				Prime/Non-Agency				Alt-A				Subprime				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMOs and MPTS	$	7,361	$	6,954	$	1,000	$	1,135	$	477	$	584	$	-	$	-	$	8,838	$	8,673
ABS home equity		5		5		-		-		274		352		461		645		740		1,002
Total by type (1)(2)	$	7,366	$	6,959	$	1,000	$	1,135	$	751	$	936	$	461	$	645	$	9,578	$	9,675
Rating
AAA	$	7,349	$	6,944	$	255	$	256	$	123	$	131	$	191	$	200	$	7,918	$	7,531
AA		-		-		31		37		89		102		31		34		151		173
A		17		15		9		10		54		61		16		24		96		110
BBB		-		-		48		53		7		7		44		61		99		121
BB and below		-		-		657		779		478		635		179		326		1,314		1,740
Total by rating (1)(2)(3)	$	7,366	$	6,959	$	1,000	$	1,135	$	751	$	936	$	461	$	645	$	9,578	$	9,675
Origination Year
2004 and prior	$	2,389	$	2,236	$	273	$	289	$	280	$	314	$	221	$	274	$	3,163	$	3,113
2005		860		804		185		221		224		275		177		239		1,446		1,539
2006		267		246		196		219		198		273		62		130		723		868
2007		1,151		1,043		346		406		49		74		-		-		1,546		1,523
2008		290		268		-		-		-		-		-		-		290		268
2009		1,367		1,331		-		-		-		-		1		2		1,368		1,333
2010		1,042		1,031		-		-		-		-		-		-		1,042		1,031
Total by origination year (1)(2)	$	7,366	$	6,959	$	1,000	$	1,135	$	751	$	936	$	461	$	645	$	9,578	$	9,675

(1)	Does not include fair value of trading securities totaling $279 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $279 million in trading securities consisted of $250 million prime, $16 million Alt-A and $13 million subprime.
(2)	Does not include amortized cost of trading securities totaling $279 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $279 million in trading securities consisted of $245 million prime, $19 million Alt-A and $15 million subprime.
(3)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch Ratings ("Fitch"), Moody's Investors Service ("Moody's") and Standard & Poor's ("S&P")) or are based on internal ratings for those securities where external ratings are not available.  For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Residential Mortgages
As of December 31, 2010
(in millions)
Prime Agency and Non-Agency
	AAA (3)				AA (3)				A(3)				BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	2,608	$	2,458	$	26	$	32	$	26	$	25	$	1	$	3	$	1	$	7	$	2,662	$	2,525
2005		866		810		-		-		-		-		47		50		132		165		1,045		1,025
2006		280		258		5		5		-		-		-		-		178		202		463		465
2007		1,151		1,044		-		-		-		-		-		-		346		405		1,497		1,449
2008		290		268		-		-		-		-		-		-		-		-		290		268
2009		1,367		1,331		-		-		-		-		-		-		-		-		1,367		1,331
2010		1,042		1,031		-		-		-		-		-		-		-		-		1,042		1,031
Total by origination year (1)(2)	$	7,604	$	7,200	$	31	$	37	$	26	$	25	$	48	$	53	$	657	$	779	$	8,366	$	8,094
Alt-A
	AAA (3)				AA (3)				A (3)				BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	117	$	119	$	83	$	95	$	44	$	50	$	7	$	7	$	29	$	43	$	280	$	314
2005		6		12		-		-		10		11		-		-		208		252		224		275
2006		-		-		6		7		-		-		-		-		192		266		198		273
2007		-		-		-		-		-		-		-		-		49		74		49		74
Total by origination year (1)(2)	$	123	$	131	$	89	$	102	$	54	$	61	$	7	$	7	$	478	$	635	$	751	$	936
Subprime
	AAA (3)				AA (3)				A (3)				BBB (3)				BB & Below (3)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	147	$	152	$	25	$	29	$	8	$	16	$	2	$	6	$	39	$	71	$	221	$	274
2005		44		48		6		5		8		8		42		55		77		123		177		239
2006		-		-		-		-		-		-		-		-		62		130		62		130
2009		-		-		-		-		-		-		-		-		1		2		1		2
Total by origination year (1)(2)	$	191	$	200	$	31	$	34	$	16	$	24	$	44	$	61	$	179	$	326	$	461	$	645

(1)	Does not include fair value of trading securities totaling $279 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $279 million in trading securities consisted of $250 million prime, $16 million Alt-A and $13 million subprime.
(2)	Does not include amortized cost of trading securities totaling $279 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $279 million in trading securities consisted of $245 million prime, $19 million Alt-A and $15 million subprime.
(3)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody's and S&P) or are based on internal ratings for those securities where external ratings are not available.  For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
AFS Securities Backed by Pools of Consumer Loan ABS
As of December 31, 2010
(in millions)
	Credit Card (1)				Auto Loans				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
Rating
AAA	$	838	$	809	$	164	$	162	$	1,002	$	971
BBB		22		22		-		-		22		22
Total by rating (1)(2)(3)	$	860	$	831	$	164	$	162	$	1,024	$	993

(1)	Includes amortized cost of $570 million ABS Credit Card assets that were reclassified from ABS CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010.  Refer to Note 4, "Variable Interest Entities," of our March 31, 2010 Form 10-Q for further details.
(2)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody’s and S&P) or are based on internal ratings for those securities where external ratings are not available.  For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.
(3)	Does not include the fair value of trading securities totaling $3 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $3 million in trading securities consisted of credit card securities.

Lincoln Financial Group
AFS Securities Backed by Pools of Commercial Mortgages
As of December 31, 2010
(in millions)
	Multiple Property				Single Property				CRE CDOs				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost
Type
CMBS	$	1,983	$	2,035	$	70	$	109	$	-	$	-	$	2,053	$	2,144
CRE CDOs		-		-		-		-		32		46		32		46
Total by type (1)	$	1,983	$	2,035	$	70	$	109	$	32	$	46	$	2,085	$	2,190
Rating
AAA	$	1,348	$	1,268	$	25	$	24	$	-	$	-	$	1,373	$	1,292
AA		259		257		9		10		-		-		268		267
A		140		146		12		13		5		5		157		164
BBB		96		100		5		6		14		18		115		124
BB and below		140		264		19		56		13		23		172		343
Total by rating (1)(2)	$	1,983	$	2,035	$	70	$	109	$	32	$	46	$	2,085	$	2,190
Origination Year
2004 and prior	$	1,249	$	1,239	$	40	$	41	$	8	$	9	$	1,297	$	1,289
2005		378		367		28		60		12		14		418		441
2006		150		205		2		8		12		23		164		236
2007		154		170		-		-		-		-		154		170
2010		52		54		-		-		-		-		52		54
Total by origination year (1)	$	1,983	$	2,035	$	70	$	109	$	32	$	46	$	2,085	$	2,190

	AAA (2)				AA (2)				A(2)				BBB (2)				BB & Below (2)				Total
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
Origination Year
2004 and prior	$	897	$	859	$	238	$	237	$	72	$	75	$	22	$	22	$	68	$	96	$	1,297	$	1,289
2005		313		287		20		20		5		6		41		49		39		79		418		441
2006		81		74		10		10		8		7		22		22		43		123		164		236
2007		74		64		-		-		28		30		30		31		22		45		154		170
2010		8		8		-		-		44		46		-		-		-		-		52		54
Total by origination year (1)	$	1,373	$	1,292	$	268	$	267	$	157	$	164	$	115	$	124	$	172	$	343	$	2,085	$	2,190

(1)	Does not include the fair value of trading securities totaling $70 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $70 million in trading securities consisted of $67 million CMBS and $3 million CRE CDOs.
(2)	Credit ratings shown are based on ratings provided by the major credit rating agencies (Fitch, Moody’s and S&P) or are based on internal ratings for those securities where external ratings are not available.  For securities where the ratings assigned by the major rating agencies are not equivalent, the second highest of the three ratings assigned is used.

Lincoln Financial Group
Commercial Mortgage Loan Portfolio, Net of Reserves
As of December 31, 2010
(in millions)
Property Type	Carrying Value		%			State Exposure	Carrying Value		%
Office building	$	2,296		34.0	%	CA	$	1,451		21.4	%
Industrial		1,804		26.7	%	TX		586		8.6	%
Retail		1,593		23.6	%	MD		421		6.2	%
Apartment		664		9.8	%	VA		329		4.9	%
Hotel/Motel		166		2.5	%	FL		309		4.6	%
Mixed use		130		1.9	%	TN		301		4.5	%
Other commercial		99		1.5	%	WA		287		4.3	%
Total	$	6,752		100.0	%	NC		255		3.8	%
						AZ		250		3.7	%
						GA		230		3.4	%
	Carrying					PA		201		3.0	%
Geographic Region	Value		%			IL		200		3.0	%
Pacific	$	1,841		27.2	%	NV		188		2.8	%
South Atlantic		1,677		24.8	%	OH		184		2.7	%
Mountain		619		9.2	%	MN		155		2.3	%
West South Central		619		9.2	%	IN		153		2.3	%
East North Central		613		9.1	%	NJ		134		2.0	%
East South Central		433		6.4	%	SC		118		1.7	%
Middle Atlantic		429		6.4	%	MA		113		1.7	%
West North Central		381		5.6	%	OR		103		1.5	%
New England		140		2.1	%	Other states under 2%		784		11.6	%
Total	$	6,752		100.0	%	Total	$	6,752		100.0	%

Lincoln Financial Group
Exposure to Monoline Insurers
As of December 31, 2010
(in millions)
									Total
					Total		Total		Unrealized		Total
	Direct		Insured		Amortized		Unrealized		Loss		Fair
	Exposure (1)		Bonds (2)		Cost		Gain		and OTTI		Value
Monoline Name
AMBAC	$	-	$	222	$	222	$	4	$	45	$	181
ASSURED GUARANTY LTD		30		-		30		-		18		12
FGIC		-		78		78		1		18		61
FSA		-		44		44		1		1		44
MBIA		12		142		154		13		13		154
MGIC		-		5		5		-		1		4
PMI GROUP INC		24		-		24		-		6		18
RADIAN GROUP INC		16		-		16		-		1		15
XL CAPITAL LTD		72		63		135		1		10		126
Total by Monoline insurer (3)	$	154	$	554	$	708	$	20	$	113	$	615

(1)	Additional direct exposure through credit default swaps with a notional value totaling $20 million is excluded from this table.
(2)	Additional indirect insured exposure through structured securities is excluded from this table.
(3)	Does not include the fair value of trading securities totaling $30 million, which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers.  The $30 million in trading securities consisted of $11 million of direct exposure and $19 million of insured exposure.  This table also excludes insured exposure totaling $10 million for a guaranteed investment tax credit partnership.