Lincoln Financial Group
Table of Contents
Analyst Coverage	1
Notes	2
Consolidated Statements of Income (Loss)	3
Consolidated Balance Sheets	4
Earnings, Shares, Return on Equity and Return to Stockholder Highlights	5
Income (Loss) from Operations, Average Equity and ROE By Segment	6
Sources of Earnings	7
Select Earnings Drivers By Segment	8
Deposits, Net Flows and Account Balances By Segment	9
Sales By Segment	10
Operating Revenues and General and Administrative Expenses By Segment	11
Operating Commissions and Other Expenses	12
Interest Rate Yields and Spreads By Segment	13
Select Investment Data	14
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC	15
Select Liquidity and Ratings Agency Data	16
Select Earnings and Operational Data:
Annuities	17
Retirement Plan Services	18
Life Insurance	19
Group Protection	20
Other Operations	21
DAC, VOBA, DSI and DFEL Roll Forwards:
Consolidated	22
Annuities	23
Retirement Plan Services, Life Insurance and Group Protection	24
Account Value Roll Forwards:
Annuities	25
Retirement Plan Services	26
Life Insurance	27
Select Non-GAAP to GAAP Reconciliations	28

	Lincoln Financial Group
	Analyst Coverage
	Firm	Analyst	Phone Number
	Bank of America Merrill Lynch	Seth Weiss	646-855-3783
	Barclays Capital	Jay Gelb	212-526-1561
	Citi Research	Erik Bass	212-816-5257
	Credit Suisse	Tom Gallagher	212-538-2010
	Deutsche Bank	Yaron Kinar	212-250-7927
	FBR Capital Markets	Randy Binner	703-312-1890
	Goldman Sachs and Company	Christopher Giovanni	212-357-3560
	J.P. Morgan Securities	Jimmy Bhullar	212-622-6397
	Janney Capital Markets	Bob Glasspiegel	860-724-1203
	Keefe, Bruyette and Woods	Ryan Krueger	860-722-5930
	Macquarie Capital	Sean Dargan	212-231-0663
	Morgan Stanley	Nigel Dally	212-761-4132
	Raymond James and Associates	Steven Schwartz	312-612-7686
	RBC Capital	Eric Berg	212-618-7593
	Scotia Capital	Joanne Smith	212-225-5071
	Sterne, Agee and Leach, Inc.	John Nadel	212-338-4717
	UBS	Suneet Kamath	212-713-1355
	Wells Fargo Securities	John Hall	212-214-8032
	Investor Inquiries May Be Directed To
	Jim Sjoreen, Senior 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 Supplement will be available immediately after the release of earnings for each quarter through our Investor Relations website:
	www.lfg.com/investor.
Page 1

	Lincoln Financial Group
	Notes
	Computations
	The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.
	The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.
	If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market
	adjustment for deferred units of LNC stock in our deferred compensation plans.  In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted  EPS
	calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation.  In these periods, we would also exclude the deferred compensation adjustment.
	Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets.  ROE is calculated by dividing annualized net income (loss) (or
	income (loss) from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).  Management evaluates consolidated ROE by both including
	and excluding the effect of average goodwill.
	Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding assuming the conversion of our 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.
	Pre-tax net margin is calculated by dividing income (loss) from operations before taxes by net revenue, which is defined as total operating revenues less interest credited.
	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of
	commercial paper outstanding.
	Sales as reported consist of the following:
	•  MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	• Single premium bank-owned universal life and variable universal life (“BOLI”) – 15% of single premium deposits;
	•  Universal life (“UL”), variable universal life (“VUL”), and corporate-owned UL and VUL (“COLI”) – first year commissionable premiums plus 5% of excess premiums received, including an
	adjustment for internal replacements of approximately 50% of commissionable premiums;
	•  Term – 100% of annualized first year premiums;
	•  Annuities – deposits from new and existing customers; and
	•  Group Protection – annualized first year premiums from new policies.
	Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales
	inducements (“DSI”) and deferred front-end loads (“DFEL”) and changes in other contract holder funds.
	Sources of Earnings are defined as follows:
	•  Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products
	less related expenses.
	•  Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product
	and level of insurance in force.
	•  Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
	•  Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.
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	Lincoln Financial Group
	Notes
	Non-GAAP Performance Measures
	Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.
	We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:
	•  Realized gains and losses associated with the following (“excluded realized gain (loss)”):
	▪  Sales or disposals;
	▪ Impairments of securities;
	▪  Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain
	instruments”);
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders reflected within variable annuity net derivative results;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders accounted for at fair value, net of the change in the fair value of the derivatives
	we own to hedge them reflected within variable annuity 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 at fair value (“indexed annuity forward-starting option”);
	•  Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”) reflected within variable annuity net derivative results;
	•  Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	•  Gains (losses) on early extinguishment of debt;
	• Losses from the impairment of intangible assets;
	•  Income (loss) from discontinued operations; and
	•  Income (loss) from the initial adoption of new accounting standards.
	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	• Excluded realized gain (loss);
	•  Revenue adjustments from the initial adoption of new accounting standards;
	•  Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	•  Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
	We use our prevailing 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.
	Management believes that the non-GAAP performance measures discussed above explain the results of our ongoing businesses in a manner that allows for a better understanding of the
	underlying trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the
	business segments, and, in many instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.  In addition, we believe that our
	definitions of operating revenues and income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
	Statistical Supplement is Dated
	The financial data in this document is dated July 30, 2014, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.
Page 2b

	Lincoln Financial Group
	Consolidated Statements of Income (Loss)
	Unaudited (millions of dollars, except per share data)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Revenues
	Insurance premiums	$	674	$	672	$	687	$	739	$	755	12.0%	$	1,328	$	1,494	12.5%
	Fee income		983		1,032		1,095		1,098		1,134	15.4%		1,941		2,232	15.0%
	Net investment income		1,213		1,180		1,211		1,208		1,207	-0.5%		2,363		2,415	2.2%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(19)		(19)		(18)		(3)		(3)	84.2%		(33)		(7)	78.8%
	Realized gain (loss), excluding OTTI		2		(9)		(12)		(15)		38	NM		(43)		23	153.5%
	Total realized gain (loss)		(17)		(28)		(30)		(18)		35	NM		(76)		16	121.1%
	Amortization of deferred gains on business
	sold through reinsurance		19		19		18		19		18	-5.3%		37		37	0.0%
	Other revenues		127		134		141		130		133	4.7%		245		263	7.3%
	Total revenues		2,999		3,009		3,122		3,176		3,282	9.4%		5,838		6,457	10.6%
	Expenses
	Interest credited		627		627		639		633		636	1.4%		1,244		1,269	2.0%
	Benefits		991		945		968		1,078		1,079	8.9%		1,950		2,157	10.6%
	Commissions and other expenses		898		928		980		971		963	7.2%		1,792		1,934	7.9%
	Interest and debt expense		65		67		68		67		67	3.1%		129		134	3.9%
	Total expenses		2,581		2,567		2,655		2,749		2,745	6.4%		5,115		5,494	7.4%
	Income (loss) from continuing operations before taxes		418		442		467		427		537	28.5%		723		963	33.2%
	Federal income tax expense (benefit)		101		105		116		98		139	37.6%		167		236	41.3%
	Net income (loss)		317		337		351		329		398	25.6%		556		727	30.8%
	Adjustment for LNC stock units in our
	deferred compensation plans		-		-		-		(1)		1	NM		-		-	NM
	Net income (loss) available to common
	stockholders – diluted	$	317	$	337	$	351	$	328	$	399	25.9%	$	556	$	727	82.2%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.15	$	1.23	$	1.29	$	1.21	$	1.48	28.7%	$	2.01	$	2.69	33.8%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	67,938	$	68,525	$	68,937	$	71,681	$	74,017	8.9%
	U.S. government bonds		408		368		367		388		396	-2.9%
	Foreign government bonds		564		576		549		559		556	-1.4%
	Mortgage-backed securities		5,961		5,445		5,078		4,944		4,929	-17.3%
	Asset-backed collateralized debt obligations		165		194		225		241		256	55.2%
	State and municipal bonds		4,048		3,976		3,918		4,204		4,395	8.6%
	Hybrid and redeemable preferred securities		1,151		1,051		1,004		971		962	-16.4%
	VIEs' fixed maturity securities		698		699		697		597		598	-14.3%
	Equity securities		209		185		201		207		256	22.5%
	Total AFS securities		81,142		81,019		80,976		83,792		86,365	6.4%
	Trading securities		2,391		2,354		2,282		2,316		2,339	-2.2%
	Mortgage loans on real estate		7,033		7,127		7,210		7,089		7,096	0.9%
	Real estate		60		56		47		42		32	-46.7%
	Policy loans		2,700		2,679		2,677		2,687		2,683	-0.6%
	Derivative investments		1,683		1,114		881		1,044		1,142	-32.1%
	Other investments		1,158		1,219		1,218		1,237		1,301	12.3%
	Total investments		96,167		95,568		95,291		98,207		100,958	5.0%
	Cash and invested cash		2,574		2,650		2,364		1,849		1,509	-41.4%
	DAC and VOBA		8,214		8,500		8,886		8,454		8,149	-0.8%
	Premiums and fees receivable		430		427		420		504		465	8.1%
	Accrued investment income		1,052		1,111		1,029		1,116		1,081	2.8%
	Reinsurance recoverables		6,385		6,528		6,041		5,984		6,007	-5.9%
	Funds withheld reinsurance assets		788		782		776		772		764	-3.0%
	Goodwill		2,273		2,273		2,273		2,273		2,273	0.0%
	Other assets		2,655		2,709		2,730		3,822		3,760	41.6%
	Separate account assets		102,783		109,376		117,135		118,968		124,159	20.8%
	Total assets	$	223,321	$	229,924	$	236,945	$	241,949	$	249,125	11.6%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	18,214	$	18,138	$	17,251	$	18,997	$	19,460	6.8%
	Other contract holder funds		73,830		74,106		74,548		74,507		74,735	1.2%
	Short-term debt		506		503		501		-		250	-50.6%
	Long-term debt by rating agency leverage definitions:
	Operating (see note (1) on page 16 for details)		1,122		1,122		1,122		1,122		1,122	0.0%
	Financial		3,928		4,243		4,198		4,258		4,048	3.1%
	Reinsurance related embedded derivatives		131		121		108		135		155	18.3%
	Funds withheld reinsurance liabilities		926		898		867		843		842	-9.1%
	Deferred gain on business sold through reinsurance		282		263		245		226		208	-26.2%
	Payables for collateral on investments		4,252		3,553		3,238		3,519		3,571	-16.0%
	VIEs' liabilities		101		67		27		22		10	-90.1%
	Other liabilities		3,929		4,145		4,253		4,866		5,114	30.2%
	Separate account liabilities		102,783		109,376		117,135		118,968		124,159	20.8%
	Total liabilities		210,004		216,535		223,493		227,463		233,674	11.3%
	Stockholders’ Equity
	Common stock		6,937		6,886		6,876		6,805		6,739	-2.9%
	Retained earnings		4,487		4,753		5,013		5,228		5,513	22.9%
	AOCI:
	Unrealized gain (loss) on AFS securities		2,033		1,870		1,609		2,523		3,282	61.4%
	Unrealized OTTI on AFS securities		(84)		(84)		(78)		(79)		(67)	20.2%
	Unrealized gain (loss) on derivative instruments		259		270		256		239		216	-16.6%
	Foreign currency translation adjustment		(5)		(5)		(5)		(10)		(10)	-100.0%
	Funded status of employee benefit plans		(310)		(301)		(219)		(220)		(222)	28.4%
	Total AOCI		1,893		1,750		1,563		2,453		3,199	69.0%
	Total stockholders’ equity		13,317		13,389		13,452		14,486		15,451	16.0%
	Total liabilities and stockholders’ equity	$	223,321	$	229,924	$	236,945	$	241,949	$	249,125	11.6%
Page 4b

	Lincoln Financial Group
	Earnings, Shares, Return on Equity and Return to Stockholder Highlights
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss)
	Income (loss) from operations	$	351	$	367	$	382	$	365	$	394	12.3%	$	635	$	759	19.5%
	Net income (loss)		317		337		351		329		398	25.6%		556		727	30.8%
	Earnings (Loss) Per Diluted Share
	Income (loss) from operations	$	1.27	$	1.34	$	1.40	$	1.34	$	1.47	15.7%	$	2.29	$	2.80	22.3%
	Net income (loss)		1.15		1.23		1.29		1.21		1.48	28.7%		2.01		2.69	33.8%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	14,089	$	13,353	$	13,421	$	13,969	$	14,968	6.2%	$	14,504	$	14,469	-0.2%
	Average AOCI		2,737		1,821		1,656		2,008		2,826	3.3%		3,216		2,417	-24.8%
	Average equity, excluding AOCI	$	11,352	$	11,532	$	11,765	$	11,961	$	12,142	7.0%	$	11,288	$	12,052	6.8%
	ROE
	Income (loss) from operations		12.4%		12.7%		13.0%		12.2%		13.0%			11.3%		12.6%
	Net income (loss)		11.2%		11.7%		11.9%		11.0%		13.1%			9.9%		12.1%
	Per Share
	Dividends declared during the period	$	0.12	$	0.12	$	0.16	$	0.16	$	0.16	33.3%	$	0.24	$	0.32	33.3%
	Book value, including AOCI		50.37		51.04		51.17		54.94		59.24	17.6%		50.37		59.24	17.6%
	Book value, excluding AOCI		43.21		44.37		45.23		45.63		46.97	8.7%		43.21		46.97	8.7%
	Shares
	Repurchased during the period		4.3		2.3		2.0		3.0		3.1	-28.9%		7.7		6.1	-21.2%
	Average for the period – diluted		275.7		273.7		272.8		272.1		268.9	-2.5%		277.1		270.5	-2.4%
	End-of-period – assuming conversion of preferred		264.4		262.3		262.9		263.7		260.8	-1.4%		264.4		260.8	-1.4%
	End-of-period – diluted		273.9		272.5		272.2		270.4		267.6	-2.3%		273.9		267.6	-2.3%
	Cash Returned to Common Stockholders
	Shares repurchased	$	150	$	100	$	100	$	150	$	150	0.0%	$	250	$	300	20.0%
	Common dividends		32		32		31		42		42	31.3%		65		84	29.2%
	Total cash returned to common stockholders	$	182	$	132	$	131	$	192	$	192	5.5%	$	315	$	384	21.9%
Page 5

	Lincoln Financial Group
	Income (Loss) from Operations, Average Equity and ROE By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss) from Operations
	Annuities	$	195	$	198	$	199	$	216	$	227	16.4%	$	353	$	443	25.5%
	Retirement Plan Services		39		33		34		39		39	0.0%		75		78	4.0%
	Life Insurance		135		140		157		120		148	9.6%		247		268	8.5%
	Group Protection		22		23		11		20		2	-90.9%		37		21	-43.2%
	Other Operations		(40)		(27)		(19)		(30)		(22)	45.0%		(77)		(51)	33.8%
	Income (loss) from operations	$	351	$	367	$	382	$	365	$	394	12.3%	$	635	$	759	19.5%
	Average Equity, Excluding AOCI
	Segment equity, excluding goodwill:
	Annuities	$	2,978	$	3,009	$	3,079	$	3,225	$	3,398	14.1%	$	2,978	$	3,311	11.2%
	Retirement Plan Services		970		983		979		969		949	-2.2%		939		959	2.1%
	Life Insurance		6,125		6,196		6,058		5,989		6,088	-0.6%		6,062		6,038	-0.4%
	Group Protection		1,062		1,083		1,121		1,157		1,186	11.7%		1,049		1,171	11.6%
	Total segment equity, excluding goodwill		11,135		11,271		11,237		11,340		11,621	4.4%		11,028		11,479	4.1%
	Other Operations and goodwill		217		261		528		621		521	140.1%		260		573	120.4%
	Total average equity, excluding AOCI	$	11,352	$	11,532	$	11,765	$	11,961	$	12,142	7.0%	$	11,288	$	12,052	6.8%
	ROE
	Segment ROE, excluding goodwill:
	Annuities		26.1%		26.3%		25.9%		26.8%		26.7%			23.7%		26.7%
	Retirement Plan Services		16.2%		13.5%		13.7%		16.1%		16.5%			15.9%		16.3%
	Life Insurance		8.8%		9.1%		10.4%		8.0%		9.7%			8.1%		8.9%
	Group Protection		8.4%		8.6%		3.9%		6.8%		0.6%			7.0%		3.7%
	Consolidated ROE – income (loss) from operations		12.4%		12.7%		13.0%		12.2%		13.0%			11.3%		12.6%
Page 6

	Lincoln Financial Group
	Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Twelve Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	12/31/12		12/31/13		Change
	Income (Loss) from Operations, Before Income Taxes
	Annuities	$	243	$	239	$	252	$	266	$	286	17.7%	$	716	$	927	29.5%
	Retirement Plan Services		54		44		44		53		54	0.0%		168		190	13.1%
	Life Insurance		201		210		234		178		223	10.9%		838		812	-3.1%
	Group Protection		34		36		17		30		3	-91.2%		111		109	-1.8%
	Other Operations		(61)		(42)		(34)		(46)		(34)	44.3%		(264)		(192)	27.3%
	Income (loss) from operations, before income taxes	$	471	$	487	$	513	$	481	$	532	13.0%	$	1,569	$	1,846	17.7%
	Sources of Earnings, Before Income Taxes
	Investment spread	$	206	$	189	$	198	$	181	$	202	-1.9%	$	765	$	772	0.9%
	Mortality/morbidity		130		139		134		118		115	-11.5%		515		507	-1.6%
	Fees on AUM		167		181		177		189		201	20.4%		502		649	29.3%
	VA riders		29		20		38		39		48	65.5%		51		110	115.7%
	Total sources of earnings, before income taxes		532		529		547		527		566	6.4%		1,833		2,038	11.2%
	Other Operations		(61)		(42)		(34)		(46)		(34)	44.3%		(264)		(192)	27.3%
	Total operating earnings, before income taxes	$	471	$	487	$	513	$	481	$	532	13.0%	$	1,569	$	1,846	17.7%
	Sources of Earnings, Before Income Taxes, % By Component
	Investment spread		38.5%		35.8%		36.2%		34.2%		35.6%			41.7%		37.8%
	Mortality/morbidity		24.5%		26.2%		24.4%		22.5%		20.4%			28.1%		24.9%
	Fees on AUM		31.5%		34.2%		32.5%		35.9%		35.6%			27.4%		31.9%
	VA riders		5.5%		3.8%		6.9%		7.4%		8.4%			2.8%		5.4%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%
Page 7

	Lincoln Financial Group
	Select Earnings Drivers By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Annuities
	Operating revenues	$	817	$	842	$	886	$	909	$	926	13.3%	$	1,594	$	1,835	15.1%
	Average account values		103,561		106,490		111,995		115,282		118,268	14.2%		101,572		116,788	15.0%
	Net flows		1,703		1,235		1,190		695		831	-51.2%		2,588		1,526	-41.0%
	Retirement Plan Services
	Operating revenues	$	271	$	269	$	271	$	271	$	270	-0.4%	$	531	$	541	1.9%
	Average account values		47,078		48,344		50,496		51,460		52,587	11.7%		46,209		52,053	12.6%
	Net flows		337		219		(107)		(361)		366	8.6%		681		5	-99.3%
	Life Insurance
	Operating revenues	$	1,284	$	1,301	$	1,344	$	1,337	$	1,363	6.2%	$	2,525	$	2,700	6.9%
	Average account values		38,231		38,801		39,636		40,333		40,895	7.0%		37,951		40,614	7.0%
	Average in-force face amount		597,542		604,585		612,477		619,715		625,961	4.8%		594,923		622,838	4.7%
	Net flows		889		862		1,112		829		919	3.4%		1,736		1,748	0.7%
	Group Protection
	Operating revenues	$	575	$	561	$	575	$	610	$	621	8.0%	$	1,125	$	1,231	9.4%
	Non-medical earned premiums		482		494		502		533		528	9.5%		957		1,061	10.9%
	Consolidated
	Operating revenues	$	3,049	$	3,073	$	3,187	$	3,233	$	3,286	7.8%	$	5,978	$	6,519	9.0%
	Average account values		188,870		193,635		202,127		207,075		211,750	12.1%		185,732		209,455	12.8%
	Net flows		2,929		2,316		2,195		1,163		2,116	-27.8%		5,005		3,279	-34.5%
Page 8

	Lincoln Financial Group
	Deposits, Net Flows and Account Balances By Segment
	Unaudited (millions of dollars)
			As of or For the Three Months Ended										As of or For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Deposits
	Annuities	$	4,181	$	3,640	$	3,733	$	3,379	$	3,566	-14.7%	$	7,400	$	6,945	-6.1%
	Retirement Plan Services		1,617		1,860		1,643		1,758		1,814	12.2%		3,284		3,572	8.8%
	Life Insurance		1,253		1,230		1,445		1,266		1,308	4.4%		2,494		2,574	3.2%
	Total deposits	$	7,051	$	6,730	$	6,821	$	6,403	$	6,688	-5.1%	$	13,178	$	13,091	-0.7%
	Net Flows
	Annuities	$	1,703	$	1,235	$	1,190	$	695	$	831	-51.2%	$	2,588	$	1,526	-41.0%
	Retirement Plan Services		337		219		(107)		(361)		366	8.6%		681		5	-99.3%
	Life Insurance		889		862		1,112		829		919	3.4%		1,736		1,748	0.7%
	Total net flows	$	2,929	$	2,316	$	2,195	$	1,163	$	2,116	-27.8%	$	5,005	$	3,279	-34.5%
	Account Balances as of End-of-Period
	Annuities	$	103,093	$	108,699	$	115,090	$	116,784	$	121,192	17.6%	$	103,093	$	121,192	17.6%
	Retirement Plan Services		47,097		49,309		51,618		51,851		53,748	14.1%		47,097		53,748	14.1%
	Life Insurance		38,446		39,157		40,113		40,552		41,238	7.3%		38,446		41,238	7.3%
	Total account balances	$	188,636	$	197,165	$	206,821	$	209,187	$	216,178	14.6%	$	188,636	$	216,178	14.6%
	Average Account Balances
	Annuities	$	103,561	$	106,490	$	111,995	$	115,282	$	118,268	14.2%	$	101,572	$	116,788	15.0%
	Retirement Plan Services		47,078		48,344		50,496		51,460		52,587	11.7%		46,209		52,053	12.6%
	Life Insurance		38,231		38,801		39,636		40,333		40,895	7.0%		37,951		40,614	7.0%
	Total average account balances	$	188,870	$	193,635	$	202,127	$	207,075	$	211,750	12.1%	$	185,732	$	209,455	12.8%
Page 9

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Sales
	Annuities:
	Variable	$	3,917	$	3,407	$	3,454	$	2,947	$	3,173	-19.0%	$	6,856	$	6,120	-10.7%
	Fixed		264		233		279		432		393	48.9%		544		825	51.7%
	Total Annuities	$	4,181	$	3,640	$	3,733	$	3,379	$	3,566	-14.7%	$	7,400	$	6,945	-6.1%
	Retirement Plan Services:
	First year sales	$	520	$	766	$	566	$	432	$	661	27.3%	$	966	$	1,093	13.2%
	Recurring deposits		1,097		1,094		1,077		1,326		1,153	5.0%		2,318		2,479	6.9%
	Total Retirement Plan Services	$	1,617	$	1,860	$	1,643	$	1,758	$	1,814	12.2%	$	3,284	$	3,572	8.8%
	Life Insurance:
	UL:
	Excluding MoneyGuard® and indexed UL	$	30	$	32	$	29	$	21	$	24	-20.0%	$	60	$	45	-25.0%
	MoneyGuard®		51		44		46		34		40	-21.6%		99		73	-26.3%
	Indexed UL		11		17		19		18		15	36.4%		20		33	65.0%
	Total UL		92		93		94		73		79	-14.1%		179		151	-15.6%
	VUL		32		36		51		46		56	75.0%		55		101	83.6%
	Term		23		24		26		23		23	0.0%		39		47
	Total individual life insurance		147		153		171		142		158	7.5%		273		299
	COLI and BOLI		39		15		16		3		14	-64.1%		65		18	-72.3%
	Total Life Insurance	$	186	$	168	$	187	$	145	$	172	-7.5%	$	338	$	317	-6.2%
	Group Protection:
	Life	$	33	$	43	$	128	$	31	$	29	-12.1%	$	64	$	60	-6.3%
	Disability		42		47		108		26		30	-28.6%		74		56	-24.3%
	Dental		20		17		32		7		14	-30.0%		29		21	-27.6%
	Total Group Protection	$	95	$	107	$	268	$	64	$	73	-23.2%	$	167	$	137	-18.0%
Page 10

	Lincoln Financial Group
	Operating Revenues and General and Administrative Expenses By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Operating Revenues
	Annuities	$	817	$	842	$	886	$	909	$	926	13.3%	$	1,594	$	1,835	15.1%
	Retirement Plan Services		271		269		271		271		270	-0.4%		531		541	1.9%
	Life Insurance		1,284		1,301		1,344		1,337		1,363	6.2%		2,525		2,700	6.9%
	Group Protection		575		561		575		610		621	8.0%		1,125		1,231	9.4%
	Other Operations		102		100		111		106		106	3.9%		203		212	4.4%
	Total	$	3,049	$	3,073	$	3,187	$	3,233	$	3,286	7.8%	$	5,978	$	6,519	9.0%
	General and Administrative Expenses,
	Net of Amounts Capitalized
	Annuities	$	101	$	106	$	116	$	110	$	110	8.9%	$	197	$	221	12.2%
	Retirement Plan Services		72		71		80		69		70	-2.8%		138		140	1.4%
	Life Insurance		103		105		114		103		109	5.8%		201		212	5.5%
	Group Protection		63		61		70		60		65	3.2%		118		125	5.9%
	Other Operations		32		7		25		14		17	-46.9%		59		29	-50.8%
	Total	$	371	$	350	$	405	$	356	$	371	0.0%	$	713	$	727	2.0%
	General and Administrative Expenses,
	Net of Amounts Capitalized, As a Percentage
	of Operating Revenues
	Annuities		12.3%		12.6%		13.1%		12.1%		11.9%			12.4%		12.0%
	Retirement Plan Services		26.6%		26.2%		29.4%		25.5%		26.1%			26.1%		25.8%
	Life Insurance		8.0%		8.1%		8.5%		7.7%		8.0%			8.0%		7.8%
	Group Protection		11.0%		10.9%		12.1%		9.8%		10.5%			10.5%		10.2%
	Other Operations		32.4%		6.3%		22.1%		12.7%		15.3%			29.0%		14.0%
	Total		12.2%		11.4%		12.7%		11.0%		11.3%			11.9%		11.2%
Page 11

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	426	$	406	$	493	$	404	$	419	-1.6%	$	822	$	823	0.1%
	Commissions		570		564		605		572		604	6.0%		1,085		1,178	8.6%
	Media expenses		15		15		16		14		14	-6.7%		29		29	0.0%
	Taxes, licenses and fees		52		70		48		81		47	-9.6%		120		128	6.7%
	Interest and debt expense		65		67		68		67		67	3.1%		129		134	3.9%
	Expenses associated with reserve financing
	and unrelated letters of credit		16		16		16		17		17	6.3%		32		35	9.4%
	Total operating commissions and other
	expenses incurred		1,144		1,138		1,246		1,155		1,168	2.1%		2,217		2,327	5.0%
	Less Amounts Capitalized
	General and administrative expenses		(55)		(56)		(88)		(48)		(48)	12.7%		(109)		(96)	11.9%
	Commissions		(339)		(321)		(349)		(310)		(331)	2.4%		(619)		(640)	-3.4%
	Taxes, licenses and fees		(10)		(7)		(8)		(8)		(6)	40.0%		(20)		(15)	25.0%
	Total amounts capitalized		(404)		(384)		(445)		(366)		(385)	4.7%		(748)		(751)	-0.4%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		740		754		801		789		783	5.8%		1,469		1,576	7.3%
	Amortization
	Amortization of DAC and VOBA		221		239		245		247		242	9.5%		448		489	9.2%
	Amortization of intangibles		1		1		1		1		1	0.0%		2		2	0.0%
	Total amortization		222		240		246		248		243	9.5%		450		491	9.1%
	Total operating commissions and
	other expenses	$	962	$	994	$	1,047	$	1,037	$	1,026	6.7%	$	1,919	$	2,067	7.7%
Page 12

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Annuities
	Earned rate on reserves		4.66%		4.54%		4.55%		4.55%		4.49%	(17)		4.73%		4.52%	(21)
	Prepayment and make whole premiums		0.37%		0.10%		0.17%		0.08%		0.11%	(26)		0.23%		0.09%	(14)
	Net investment income yield on reserves		5.03%		4.64%		4.72%		4.63%		4.60%	(43)		4.96%		4.61%	(35)
	Interest rate credited to contract holders		2.85%		2.86%		2.91%		2.81%		2.79%	(6)		2.81%		2.80%	(1)
	Interest rate spread		2.18%		1.78%		1.81%		1.82%		1.81%	(37)		2.15%		1.81%	(34)
	Retirement Plan Services
	Earned rate on reserves		5.01%		4.97%		4.85%		4.89%		4.78%	(23)		5.01%		4.84%	(17)
	Prepayment and make whole premiums		0.24%		0.18%		0.21%		0.12%		0.12%	(12)		0.17%		0.12%	(5)
	Net investment income yield on reserves		5.25%		5.15%		5.06%		5.01%		4.90%	(35)		5.18%		4.96%	(22)
	Interest rate credited to contract holders		3.11%		3.12%		3.08%		3.06%		3.05%	(6)		3.13%		3.06%	(7)
	Interest rate spread		2.14%		2.03%		1.98%		1.95%		1.85%	(29)		2.05%		1.90%	(15)
	Life Insurance
	Attributable to interest-sensitive products:
	Earned rate on reserves		5.57%		5.54%		5.48%		5.46%		5.41%	(16)		5.59%		5.44%	(15)
	Prepayment and make whole premiums		0.15%		0.08%		0.16%		0.04%		0.16%	1		0.09%		0.10%	1
	Alternative investments		0.18%		0.14%		0.13%		0.18%		0.15%	(3)		0.09%		0.16%	7
	Net investment income yield on reserves		5.90%		5.76%		5.77%		5.68%		5.72%	(18)		5.77%		5.70%	(7)
	Interest rate credited to contract holders		3.92%		3.93%		3.96%		3.94%		3.96%	4		3.92%		3.95%	3
	Interest rate spread		1.98%		1.83%		1.81%		1.74%		1.76%	(22)		1.85%		1.75%	(10)
	Attributable to traditional products:
	Earned rate on reserves		5.60%		5.57%		5.59%		5.87%		5.48%	(12)		5.66%		5.68%	2
	Prepayment and make whole premiums		0.12%		0.03%		0.37%		0.22%		0.34%	22		0.09%		0.28%	19
	Net investment income yield on reserves		5.72%		5.60%		5.96%		6.09%		5.82%	10		5.75%		5.96%	21
Page 13

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
								As of 6/30/13				As of 12/31/13				As of 6/30/14
								Amount		%		Amount		%		Amount		%
	AFS and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds							$	67,938		81.3%	$	68,937		82.8%	$	74,017		83.4%
	U.S. government bonds								408		0.5%		367		0.5%		396		0.5%
	Foreign government bonds								564		0.7%		549		0.7%		556		0.6%
	Mortgage-backed securities								5,961		7.1%		5,078		6.1%		4,929		5.6%
	Asset-backed collateralized debt obligations								165		0.2%		225		0.3%		256		0.3%
	State and municipal bonds								4,048		4.8%		3,918		4.7%		4,395		5.0%
	Hybrid and redeemable preferred securities								1,151		1.4%		1,004		1.2%		962		1.1%
	VIEs’ fixed maturity securities								698		0.8%		697		0.8%		598		0.7%
	Equity securities								209		0.3%		201		0.2%		256		0.3%
	Total AFS securities								81,142		97.1%		80,976		97.3%		86,365		97.5%
	Trading securities								2,391		2.9%		2,282		2.7%		2,339		2.6%
	Total AFS and trading securities							$	83,533		100.0%	$	83,258		100.0%	$	88,704		100.1%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities							$	78,237		99.8%	$	79,062		99.8%	$	80,697		99.7%
	Equity securities								192		0.2%		182		0.2%		235		0.3%
	Total AFS and trading securities							$	78,429		100.0%	$	79,244		100.0%	$	80,932		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade										94.7%				95.3%				95.1%
	Below investment grade										5.3%				4.7%				4.9%
		For the Three Months Ended												For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change		6/30/13		6/30/14		Change
	Net Investment Income	$	1,213	$	1,180	$	1,211	$	1,208	$	1,207		-0.5%	$	2,363	$	2,415		2.2%
	Average Invested Assets, at Amortized Cost		89,009		89,910		90,395		91,027		91,879		3.2%		88,350		91,453		3.5%
	Net Investment Income Yield		5.45%		5.25%		5.36%		5.31%		5.25%		(20)		5.35%		5.28%		(7)
Page 14

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Realized Gain (Loss), Pre-Tax
	Total operating realized gain (loss)	$	34	$	37	$	36	$	40	$	40	17.6%	$	66	$	79	19.7%
	Total excluded realized gain (loss)		(51)		(65)		(66)		(58)		(5)	90.2%		(142)		(63)	55.6%
	Total realized gain (loss), pre-tax	$	(17)	$	(28)	$	(30)	$	(18)	$	35	NM	$	(76)	$	16	121.1%
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(22)	$	(7)	$	2	$	(17)	$	5	122.7%	$	(26)	$	(11)	57.7%
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		5		6		(12)		(14)		16	220.0%		7		1	-85.7%
	GLB non-performance risk component		(16)		(22)		(15)		7		(9)	43.8%		(51)		(2)	96.1%
	Total variable annuity net derivative results		(11)		(16)		(27)		(7)		7	163.6%		(44)		(1)	97.7%
	Indexed annuity forward-starting option		(2)		(7)		(6)		(12)		(8)	NM		(10)		(21)	NM
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(35)	$	(30)	$	(31)	$	(36)	$	4	111.4%	$	(80)	$	(33)	58.8%
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(12)	$	(12)	$	(12)	$	(2)	$	(2)	84.2%	$	(21)	$	(5)	78.8%
	Other realized gain (loss) related to
	certain investments		(4)		(9)		(4)		(2)		2	153.4%		(5)		2	134.1%
	Gain (loss) on the mark-to-market
	on certain instruments		(6)		14		18		(13)		5	183.3%		-		(8)	NM
	Total realized gain (loss) related
	to investments, after-tax	$	(22)	$	(7)	$	2	$	(17)	$	5	122.7%	$	(26)	$	(11)	57.7%
Page 15

	Lincoln Financial Group
	Select Liquidity and Rating Agency Data
	Unaudited (millions of dollars)
		As of
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change
	Leverage Ratio
	Short-term debt	$	506	$	503	$	501	$	-	$	250	-50.6%
	Long-term debt		5,050		5,365		5,320		5,380		5,170	2.4%
	Total debt		5,556		5,868		5,821		5,380		5,420	-2.4%
	Less:
	Long-term operating debt (1)		1,122		1,122		1,122		1,122		1,122	0.0%
	75% of capital securities		908		908		909		909		909	0.1%
	Carrying value of fair value hedges		139		105		59		120		159	14.4%
	Total numerator	$	3,387	$	3,733	$	3,731	$	3,229	$	3,230	-4.6%
	Stockholders’ equity, excluding AOCI	$	11,424	$	11,639	$	11,889	$	12,033	$	12,252	7.2%
	Total debt		5,556		5,868		5,821		5,380		5,420	-2.4%
	Total denominator	$	16,980	$	17,507	$	17,710	$	17,413	$	17,672	4.1%
	Leverage ratio		19.9%		21.3%		21.1%		18.5%		18.3%
	Holding Company Available Liquidity	$	693	$	1,041	$	1,186	$	562	$	573	-17.3%
							Ratings as of July 30, 2014
												Standard
							A.M. Best		Fitch		Moody’s	& Poor’s
	Senior Debt Ratings						a-		BBB+		Baa1	A-
	Financial Strength Ratings
	Lincoln National Life Insurance Company						A+		A+		A1	AA-
	First Penn-Pacific Life Insurance Company						A		A+		A1	A-
	Lincoln Life & Annuity Company of New York						A+		A+		A1	AA-
	(1) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
	on increasing statutory reserves associated with secondary guarantee UL and term policies and the senior note issued in September 2008 by our primary insurance subsidiary.
Page 16

	Lincoln Financial Group
	Annuities – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	24	$	30	$	28	$	45	$	42	75.0%	$	57	$	87	52.6%
	Fee income		391		417		454		464		486	24.3%		760		950	25.0%
	Net investment income		273		254		260		259		258	-5.5%		530		517	-2.5%
	Operating realized gain (loss)		33		36		36		39		40	21.2%		64		78	21.9%
	Other revenues		96		105		108		102		100	4.2%		183		203	10.9%
	Total operating revenues		817		842		886		909		926	13.3%		1,594		1,835	15.1%
	Operating expenses:
	Interest credited		157		153		161		154		154	-1.9%		310		308	-0.6%
	Benefits		62		78		68		87		80	29.0%		128		166	29.7%
	Commissions incurred		274		250		267		250		270	-1.5%		503		521	3.6%
	Other expenses incurred		202		213		234		217		210	4.0%		397		427	7.6%
	Amounts capitalized		(213)		(181)		(193)		(165)		(174)	18.3%		(376)		(339)	9.8%
	Amortization		92		90		97		100		100	8.7%		196		201	2.6%
	Total operating expenses		574		603		634		643		640	11.5%		1,158		1,284	10.9%
	Income (loss) from operations before taxes		243		239		252		266		286	17.7%		436		551	26.4%
	Federal income tax expense (benefit)		48		41		53		50		59	22.9%		83		108	30.1%
	Income (loss) from operations	$	195	$	198	$	199	$	216	$	227	16.4%	$	353	$	443	25.5%
	Effective Federal Income Tax Rate		19.8%		17.2%		21.0%		18.7%		20.6%			19.0%		19.7%
	Average Equity, Excluding Goodwill and AOCI	$	2,978	$	3,009	$	3,079	$	3,225	$	3,398	14.1%	$	2,978	$	3,311	11.2%
	ROE, Excluding Goodwill		26.1%		26.3%		25.9%		26.8%		26.7%			23.7%		26.7%
	Return on Average Account Values		75		74		71		75		77	2		70		76	6
	Account Values
	Separate account values:
	Average	$	82,301	$	85,151	$	90,711	$	94,058	$	96,913	17.8%	$	80,406	$	95,493	18.8%
	End-of-period		81,764		87,415		93,822		95,512		99,801	22.1%		81,764		99,801	22.1%
	General account values:
	Average		21,260		21,339		21,284		21,224		21,355	0.4%		21,166		21,295	0.6%
	End-of-period		21,329		21,284		21,268		21,272		21,391	0.3%		21,329		21,391	0.3%
Page 17

	Lincoln Financial Group
	Retirement Plan Services – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	58	$	59	$	60	$	61	$	62	6.9%	$	114	$	122	7.0%
	Net investment income		211		207		208		207		204	-3.3%		413		411	-0.5%
	Other revenues		2		3		3		3		4	100.0%		4		8	100.0%
	Total operating revenues		271		269		271		271		270	-0.4%		531		541	1.9%
	Operating expenses:
	Interest credited		117		118		118		118		118	0.9%		233		236	1.3%
	Benefits		-		-		-		-		-	NM		1		-	-100.0%
	Commissions incurred		18		18		18		18		18	0.0%		36		37	2.8%
	Other expenses incurred		79		78		89		80		76	-3.8%		155		155	0.0%
	Amounts capitalized		(7)		(7)		(9)		(8)		(6)	14.3%		(16)		(14)	12.5%
	Amortization		10		18		11		10		10	0.0%		20		20	0.0%
	Total operating expenses		217		225		227		218		216	-0.5%		429		434	1.2%
	Income (loss) from operations before taxes		54		44		44		53		54	0.0%		102		107	4.9%
	Federal income tax expense (benefit)		15		11		10		14		15	0.0%		27		29	7.4%
	Income (loss) from operations	$	39	$	33	$	34	$	39	$	39	0.0%	$	75	$	78	4.0%
	Effective Federal Income Tax Rate		27.1%		24.1%		24.3%		26.3%		26.9%			27.2%		26.6%
	Average Equity, Excluding Goodwill and AOCI	$	970	$	983	$	979	$	969	$	949	-2.2%	$	939	$	959	2.1%
	ROE, Excluding Goodwill		16.2%		13.5%		13.7%		16.1%		16.5%			15.9%		16.3%
	Pre-tax Net Margin		34.9%		29.0%		28.9%		34.5%		35.3%			34.4%		34.9%
	Return on Average Account Values		33		27		27		30		30	(3)		32		30	(2)
	Average Account Values
	Separate account	$	14,311	$	14,481	$	14,920	$	15,122	$	15,221	6.4%	$	14,141	$	15,172	7.3%
	Mutual fund		17,797		18,741		20,316		20,965		21,901	23.1%		17,179		21,458	24.9%
	General account		14,970		15,122		15,260		15,373		15,465	3.3%		14,889		15,423	3.6%
	Net Flows – Trailing Twelve Months	$	1,261	$	1,249	$	793	$	88	$	117	-90.7%	$	1,261	$	117	-90.7%
Page 18

	Lincoln Financial Group
	Life Insurance – Select Earnings and Operational Data
	Unaudited (millions of dollars)
			As of or For the Three Months Ended										As of or For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	119	$	125	$	129	$	132	$	139	16.8%	$	232	$	271	16.8%
	Fee income		534		556		581		574		586	9.7%		1,066		1,160	8.8%
	Net investment income		625		615		627		624		632	1.1%		1,211		1,256	3.7%
	Operating realized gain (loss)		-		1		-		1		-	NM		2		1	-50.0%
	Other revenues		6		4		7		6		6	0.0%		14		12	-14.3%
	Total operating revenues		1,284		1,301		1,344		1,337		1,363	6.2%		2,525		2,700	6.9%
	Operating expenses:
	Interest credited		325		329		332		334		337	3.7%		644		671	4.2%
	Benefits		500		476		496		541		519	3.8%		1,005		1,060	5.5%
	Commissions incurred		146		157		174		163		173	18.5%		285		336	17.9%
	Other expenses incurred		168		183		194		182		177	5.4%		337		360	6.8%
	Amounts capitalized		(166)		(175)		(204)		(178)		(187)	-12.7%		(322)		(365)	-13.4%
	Amortization		110		121		118		117		121	10.0%		208		238	14.4%
	Total operating expenses		1,083		1,091		1,110		1,159		1,140	5.3%		2,157		2,300	6.6%
	Income (loss) from operations before taxes		201		210		234		178		223	10.9%		368		400	8.7%
	Federal income tax expense (benefit)		66		70		77		58		75	13.6%		121		132	9.1%
	Income (loss) from operations	$	135	$	140	$	157	$	120	$	148	9.6%	$	247	$	268	8.5%
	Effective Federal Income Tax Rate		33.0%		33.4%		32.8%		32.7%		33.4%			32.9%		33.1%
	Average Equity, Excluding Goodwill and AOCI	$	6,125	$	6,196	$	6,058	$	5,989	$	6,088	-0.6%	$	6,062	$	6,038	-0.4%
	ROE, Excluding Goodwill		8.8%		9.1%		10.4%		8.0%		9.7%			8.1%		8.9%
	Average Account Values	$	38,231	$	38,801	$	39,636	$	40,333	$	40,895	7.0%	$	37,951	$	40,614	7.0%
	In-Force Face Amount
	UL and other	$	314,093	$	315,763	$	318,444	$	319,414	$	321,056	2.2%	$	314,093	$	321,056	2.2%
	Term insurance		286,939		292,375		298,373		303,200		308,253	7.4%		286,939		308,253	7.4%
	Total in-force face amount	$	601,032	$	608,138	$	616,817	$	622,614	$	629,309	4.7%	$	601,032	$	629,309	4.7%
Page 19

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	531	$	516	$	529	$	562	$	574	8.1%	$	1,039	$	1,135	9.2%
	Net investment income		42		41		43		45		44	4.8%		81		89	9.9%
	Other revenues		2		4		3		3		3	50.0%		5		7	40.0%
	Total operating revenues		575		561		575		610		621	8.0%		1,125		1,231	9.4%
	Operating expenses:
	Interest credited		1		1		1		1		2	100.0%		1		2	100.0%
	Benefits		397		382		396		423		463	16.6%		781		886	13.4%
	Commissions incurred		62		62		65		66		68	9.7%		125		135	8.0%
	Other expenses incurred		90		90		116		87		92	2.2%		170		179	5.3%
	Amounts capitalized		(18)		(20)		(38)		(16)		(18)	0.0%		(33)		(34)	-3.0%
	Amortization		9		10		18		19		11	22.2%		24		30	25.0%
	Total operating expenses		541		525		558		580		618	14.2%		1,068		1,198	12.2%
	Income (loss) from operations before taxes		34		36		17		30		3	-91.2%		57		33	-42.1%
	Federal income tax expense (benefit)		12		13		6		10		1	-91.7%		20		12	-40.0%
	Income (loss) from operations	$	22	$	23	$	11	$	20	$	2	-90.9%	$	37	$	21	-43.2%
	Effective Federal Income Tax Rate		35.0%		35.0%		34.9%		35.0%		34.9%			35.0%		35.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,062	$	1,083	$	1,121	$	1,157	$	1,186	11.7%	$	1,049	$	1,171	11.6%
	ROE, Excluding Goodwill		8.4%		8.6%		3.9%		6.8%		0.6%			7.0%		3.7%
	Loss Ratios by Product Line
	Life		77.1%		74.2%		79.3%		76.1%		80.0%			78.6%		78.0%
	Disability		70.1%		73.2%		70.7%		73.6%		82.6%			69.6%		78.2%
	Dental		74.1%		71.5%		70.2%		74.0%		71.1%			75.7%		72.6%
	Total non-medical		73.5%		73.4%		74.3%		74.8%		80.3%			74.1%		77.5%
	Medical		88.8%		88.3%		88.5%		87.6%		89.0%			89.0%		88.4%
Page 20

	Lincoln Financial Group
	Other Operations – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	-	$	-	$	-	$	-	$	-	NM	$	1	$	-	-100.0%
	Net investment income		63		63		73		73		70	11.1%		129		143	10.9%
	Amortization of deferred gain on
	business sold through reinsurance		18		18		18		18		18	0.0%		36		36	0.0%
	Media revenues		19		18		18		15		17	-10.5%		35		32	-8.6%
	Other revenues		2		1		2		-		1	-50.0%		2		1	-50.0%
	Total operating revenues		102		100		111		106		106	3.9%		203		212	4.4%
	Operating expenses:
	Interest credited		28		26		27		27		26	-7.1%		55		52	-5.5%
	Benefits		29		29		28		30		29	0.0%		56		59	5.4%
	Media expenses		15		15		16		14		14	-6.7%		29		29	0.0%
	Commissions and other expenses		26		5		6		14		4	-84.6%		52		17	-67.3%
	Interest and debt expenses		65		67		68		67		67	3.1%		129		134	3.9%
	Total operating expenses		163		142		145		152		140	-14.1%		321		291	-9.3%
	Income (loss) from operations before taxes		(61)		(42)		(34)		(46)		(34)	44.3%		(118)		(79)	33.1%
	Federal income tax expense (benefit)		(21)		(15)		(15)		(16)		(12)	42.9%		(41)		(28)	31.7%
	Income (loss) from operations	$	(40)	$	(27)	$	(19)	$	(30)	$	(22)	45.0%	$	(77)	$	(51)	33.8%
Page 21

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	DAC and VOBA
	Balance as of beginning-of-period	$	6,936	$	8,214	$	8,500	$	8,886	$	8,454	21.9%	$	6,667	$	8,886	33.3%
	Business sold through reinsurance		-		2		2		-		-	NM		-		-	NM
	Deferrals		404		384		445		366		385	-4.7%		748		751	0.4%
	Operating amortization		(221)		(239)		(245)		(247)		(242)	-9.5%		(448)		(489)	-9.2%
	Deferrals, net of operating amortization		183		145		200		119		143	-21.9%		300		262	-12.7%
	Amortization associated with benefit ratio unlocking		1		(3)		(2)		(1)		(2)	NM		(2)		(2)	0.0%
	Adjustment related to realized (gains) losses		(11)		(7)		6		(8)		-	100.0%		(7)		(9)	-28.6%
	Adjustment related to unrealized (gains) losses		1,105		149		180		(542)		(446)	NM		1,256		(988)	NM
	Balance as of end-of-period	$	8,214	$	8,500	$	8,886	$	8,454	$	8,149	-0.8%	$	8,214	$	8,149	-0.8%
	DSI
	Balance as of beginning-of-period	$	249	$	266	$	267	$	267	$	256	2.8%	$	253	$	267	5.5%
	Deferrals		3		2		3		3		4	33.3%		5		6	20.0%
	Operating amortization		(9)		(2)		(10)		(10)		(10)	-11.1%		(21)		(20)	4.8%
	Deferrals, net of operating amortization		(6)		-		(7)		(7)		(6)	0.0%		(16)		(14)	12.5%
	Adjustment related to realized (gains) losses		(1)		-		-		-		(1)	0.0%		(1)		(1)	0.0%
	Adjustment related to unrealized (gains) losses		24		1		7		(4)		(5)	NM		30		(8)	NM
	Balance as of end-of-period	$	266	$	267	$	267	$	256	$	244	-8.3%	$	266	$	244	-8.3%
	DFEL
	Balance as of beginning-of-period	$	1,351	$	1,819	$	1,861	$	1,938	$	1,707	26.4%	$	1,373	$	1,938	41.2%
	Deferrals		81		75		81		81		90	11.1%		164		171	4.3%
	Operating amortization		(44)		(68)		(62)		(65)		(73)	-65.9%		(99)		(138)	-39.4%
	Deferrals, net of operating amortization		37		7		19		16		17	-54.1%		65		33	-49.2%
	Adjustment related to realized (gains) losses		(1)		(1)		-		(2)		(2)	-100.0%		(1)		(4)	NM
	Adjustment related to unrealized (gains) losses		432		36		58		(245)		(202)	NM		382		(447)	NM
	Balance as of end-of-period	$	1,819	$	1,861	$	1,938	$	1,707	$	1,520	-16.4%	$	1,819	$	1,520	-16.4%
Page 22

	Lincoln Financial Group
	Annuities – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	DAC and VOBA
	Balance as of beginning-of-period	$	2,196	$	2,507	$	2,609	$	2,770	$	2,784	26.8%	$	2,092	$	2,770	32.4%
	Deferrals		213		181		193		165		174	-18.3%		376		339	-9.8%
	Operating amortization		(92)		(90)		(97)		(100)		(100)	-8.7%		(196)		(201)	-2.6%
	Deferrals, net of operating amortization		121		91		96		65		74	-38.8%		180		138	-23.3%
	Amortization associated with benefit ratio unlocking		1		(2)		(2)		(1)		(2)	NM		(1)		(2)	-100.0%
	Adjustment related to realized (gains) losses		(9)		(3)		11		(4)		6	166.7%		(1)		2	300.0%
	Adjustment related to unrealized (gains) losses		198		16		56		(46)		(52)	NM		237		(98)	NM
	Balance as of end-of-period	$	2,507	$	2,609	$	2,770	$	2,784	$	2,810	12.1%	$	2,507	$	2,810	12.1%
	DSI
	Balance as of beginning-of-period	$	246	$	262	$	261	$	259	$	248	0.8%	$	249	$	259	4.0%
	Deferrals		2		2		2		2		1	-50.0%		5		3	-40.0%
	Operating amortization		(9)		(5)		(11)		(10)		(9)	0.0%		(21)		(19)	9.5%
	Deferrals, net of operating amortization		(7)		(3)		(9)		(8)		(8)	-14.3%		(16)		(16)	0.0%
	Adjustment related to realized (gains) losses		(1)		-		-		-		(1)	0.0%		(1)		(1)	0.0%
	Adjustment related to unrealized (gains) losses		24		2		7		(3)		(5)	NM		30		(8)	NM
	Balance as of end-of-period	$	262	$	261	$	259	$	248	$	234	-10.7%	$	262	$	234	-10.7%
	DFEL
	Balance as of beginning-of-period	$	261	$	262	$	263	$	265	$	264	1.1%	$	258	$	265	2.7%
	Deferrals		6		7		8		8		8	33.3%		11		16	45.5%
	Operating amortization		(4)		(5)		(6)		(7)		(9)	NM		(9)		(16)	-77.8%
	Deferrals, net of operating amortization		2		2		2		1		(1)	NM		2		-	-100.0%
	Adjustment related to realized (gains) losses		(2)		(1)		-		(2)		(1)	50.0%		-		(3)	NM
	Adjustment related to unrealized (gains) losses		1		-		-		-		-	-100.0%		2		-	-100.0%
	Balance as of end-of-period	$	262	$	263	$	265	$	264	$	262	0.0%	$	262	$	262	0.0%
Page 23

	Lincoln Financial Group
	Retirement Plan Services, Life Insurance and Group Protection – DAC, VOBA and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	DAC and VOBA – Retirement Plan Services
	Balance as of beginning-of-period	$	69	$	162	$	160	$	173	$	165	139.1%	$	102	$	173	69.6%
	Deferrals		7		7		9		8		6	-14.3%		16		14	-12.5%
	Operating amortization		(10)		(18)		(11)		(10)		(10)	0.0%		(20)		(20)	0.0%
	Deferrals, net of operating amortization		(3)		(11)		(2)		(2)		(4)	-33.3%		(4)		(6)	-50.0%
	Adjustment related to unrealized (gains) losses		96		9		15		(6)		(26)	NM		64		(32)	NM
	Balance as of end-of-period	$	162	$	160	$	173	$	165	$	135	-16.7%	$	162	$	135	-16.7%
	DAC and VOBA – Life Insurance
	Balance as of beginning-of-period	$	4,480	$	5,344	$	5,520	$	5,713	$	5,278	17.8%	$	4,281	$	5,713	33.5%
	Business sold through reinsurance		-		2		2		-		-	NM		-		-	NM
	Deferrals		166		175		204		178		187	12.7%		322		365	13.4%
	Operating amortization		(110)		(121)		(118)		(117)		(121)	-10.0%		(208)		(238)	-14.4%
	Deferrals, net of operating amortization		56		54		86		61		66	17.9%		114		127	11.4%
	Adjustment related to realized (gains) losses		(1)		(4)		(5)		(4)		(6)	NM		(5)		(10)	-100.0%
	Adjustment related to unrealized (gains) losses		809		124		110		(492)		(368)	NM		954		(860)	NM
	Balance as of end-of-period	$	5,344	$	5,520	$	5,713	$	5,278	$	4,970	-7.0%	$	5,344	$	4,970	-7.0%
	DFEL – Life Insurance
	Balance as of beginning-of-period	$	1,090	$	1,556	$	1,597	$	1,673	$	1,443	32.4%	$	1,115	$	1,673	50.0%
	Deferrals		75		68		73		73		82	9.3%		152		155	2.0%
	Operating amortization		(40)		(63)		(55)		(58)		(64)	-60.0%		(89)		(122)	-37.1%
	Deferrals, net of operating amortization		35		5		18		15		18	-48.6%		63		33	-47.6%
	Adjustment related to realized (gains) losses		-		(1)		(1)		(1)		(1)	NM		(1)		(2)	-100.0%
	Adjustment related to unrealized (gains) losses		431		37		59		(244)		(202)	NM		379		(446)	NM
	Balance as of end-of-period	$	1,556	$	1,597	$	1,673	$	1,443	$	1,258	-19.2%	$	1,556	$	1,258	-19.2%
	DAC and VOBA – Group Protection
	Balance as of beginning-of-period	$	192	$	201	$	211	$	230	$	227	18.2%	$	192	$	230	19.8%
	Deferrals		18		20		37		16		18	0.0%		33		34	3.0%
	Operating amortization		(9)		(10)		(18)		(19)		(11)	-22.2%		(24)		(30)	-25.0%
	Deferrals, net of operating amortization		9		10		19		(3)		7	-22.2%		9		4	-55.6%
	Balance as of end-of-period	$	201	$	211	$	230	$	227	$	234	16.4%	$	201	$	234	16.4%
Page 24

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	18,539	$	18,494	$	18,457	$	18,552	$	18,730	1.0%	$	18,438	$	18,552	0.6%
	Gross deposits		264		233		279		432		393	48.9%		544		825	51.7%
	Withdrawals and deaths		(462)		(462)		(440)		(424)		(460)	0.4%		(897)		(884)	1.4%
	Net flows		(198)		(229)		(161)		8		(67)	66.2%		(353)		(59)	83.3%
	Reinvested interest credited		150		190		254		168		211	40.7%		404		379	-6.2%
	Sales inducements deferred		3		2		2		2		1	-66.7%		5		3	-40.0%
	Balance as of end-of-period, gross		18,494		18,457		18,552		18,730		18,875	2.1%		18,494		18,875	2.1%
	Reinsurance ceded		(796)		(779)		(759)		(744)		(726)	8.8%		(796)		(726)	8.8%
	Balance as of end-of-period, net	$	17,698	$	17,678	$	17,793	$	17,986	$	18,149	2.5%	$	17,698	$	18,149	2.5%
	Variable Annuities
	Balance as of beginning-of-period	$	83,687	$	85,395	$	91,021	$	97,298	$	98,798	18.1%	$	78,906	$	97,298	23.3%
	Gross deposits		3,917		3,407		3,454		2,947		3,173	-19.0%		6,856		6,120	-10.7%
	Withdrawals and deaths		(2,016)		(1,943)		(2,103)		(2,260)		(2,275)	-12.8%		(3,915)		(4,535)	-15.8%
	Net flows		1,901		1,464		1,351		687		898	-52.8%		2,941		1,585	-46.1%
	Change in market value and reinvestment		(193)		4,162		4,926		813		3,347	NM		3,548		4,160	17.2%
	Balance as of end-of-period, gross		85,395		91,021		97,298		98,798		103,043	20.7%		85,395		103,043	20.7%
	Reinsurance ceded		-		-		(1)		-		-	NM		-		-	NM
	Balance as of end-of-period, net	$	85,395	$	91,021	$	97,297	$	98,798	$	103,043	20.7%	$	85,395	$	103,043	20.7%
	Total
	Balance as of beginning-of-period	$	102,226	$	103,889	$	109,478	$	115,850	$	117,528	15.0%	$	97,344	$	115,850	19.0%
	Gross deposits		4,181		3,640		3,733		3,379		3,566	-14.7%		7,400		6,945	-6.1%
	Withdrawals and deaths		(2,478)		(2,405)		(2,543)		(2,684)		(2,735)	-10.4%		(4,812)		(5,419)	-12.6%
	Net flows		1,703		1,235		1,190		695		831	-51.2%		2,588		1,526	-41.0%
	Change in market value and reinvestment		(43)		4,352		5,180		981		3,558	NM		3,952		4,539	14.9%
	Sales inducements deferred		3		2		2		2		1	-66.7%		5		3	-40.0%
	Balance as of end-of-period, gross		103,889		109,478		115,850		117,528		121,918	17.4%		103,889		121,918	17.4%
	Reinsurance ceded		(796)		(779)		(760)		(744)		(726)	8.8%		(796)		(726)	8.8%
	Balance as of end-of-period, net	$	103,093	$	108,699	$	115,090	$	116,784	$	121,192	17.6%	$	103,093	$	121,192	17.6%
Page 25

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Small Market
	Balance as of beginning-of-period	$	7,373	$	7,377	$	7,695	$	8,203	$	8,223	11.5%	$	7,001	$	8,203	17.2%
	Gross deposits		366		362		548		470		409	11.7%		773		879	13.7%
	Withdrawals and deaths		(369)		(375)		(434)		(510)		(389)	-5.4%		(779)		(899)	-15.4%
	Net flows		(3)		(13)		114		(40)		20	NM		(6)		(20)	NM
	Transfers between fixed and variable accounts		1		-		8		-		-	-100.0%		(13)		-	100.0%
	Change in market value and reinvestment		6		331		386		60		278	NM		395		338	-14.4%
	Balance as of end-of-period	$	7,377	$	7,695	$	8,203	$	8,223	$	8,521	15.5%	$	7,377	$	8,521	15.5%
	Mid – Large Market
	Balance as of beginning-of-period	$	22,776	$	23,486	$	25,059	$	26,468	$	26,708	17.3%	$	21,050	$	26,468	25.7%
	Gross deposits		1,093		1,338		945		1,111		1,260	15.3%		2,193		2,371	8.1%
	Withdrawals and deaths		(542)		(881)		(884)		(1,213)		(697)	-28.6%		(1,075)		(1,910)	-77.7%
	Net flows		551		457		61		(102)		563	2.2%		1,118		461	-58.8%
	Transfers between fixed and variable accounts		7		(14)		(1)		9		7	0.0%		19		16	-15.8%
	Change in market value and reinvestment		152		1,130		1,349		333		829	NM		1,299		1,162	-10.5%
	Balance as of end-of-period	$	23,486	$	25,059	$	26,468	$	26,708	$	28,107	19.7%	$	23,486	$	28,107	19.7%
	Multi-Fund®and Other
	Balance as of beginning-of-period	$	16,293	$	16,234	$	16,555	$	16,947	$	16,920	3.8%	$	15,880	$	16,947	6.7%
	Gross deposits		158		160		150		177		145	-8.2%		318		322	1.3%
	Withdrawals and deaths		(369)		(385)		(432)		(396)		(362)	1.9%		(749)		(758)	-1.2%
	Net flows		(211)		(225)		(282)		(219)		(217)	-2.8%		(431)		(436)	-1.2%
	Change in market value and reinvestment		152		546		674		192		417	174.3%		785		609	-22.4%
	Balance as of end-of-period	$	16,234	$	16,555	$	16,947	$	16,920	$	17,120	5.5%	$	16,234	$	17,120	5.5%
	Total
	Balance as of beginning-of-period	$	46,442	$	47,097	$	49,309	$	51,618	$	51,851	11.6%	$	43,931	$	51,618	17.5%
	Gross deposits		1,617		1,860		1,643		1,758		1,814	12.2%		3,284		3,572	8.8%
	Withdrawals and deaths		(1,280)		(1,641)		(1,750)		(2,119)		(1,448)	-13.1%		(2,603)		(3,567)	-37.0%
	Net flows		337		219		(107)		(361)		366	8.6%		681		5	-99.3%
	Transfers between fixed and variable accounts		8		(14)		7		9		7	-12.5%		6		16	166.7%
	Change in market value and reinvestment		310		2,007		2,409		585		1,524	NM		2,479		2,109	-14.9%
	Balance as of end-of-period	$	47,097	$	49,309	$	51,618	$	51,851	$	53,748	14.1%	$	47,097	$	53,748	14.1%
Page 26

	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Interest-Sensitive Life
	Balance as of beginning-of-period	$	32,817	$	33,108	$	33,366	$	33,721	$	33,886	3.3%	$	32,432	$	33,721	4.0%
	Deposits		966		938		1,017		869		890	-7.9%		1,964		1,759	-10.4%
	Withdrawals and deaths		(247)		(255)		(208)		(292)		(253)	-2.4%		(435)		(545)	-25.3%
	Net flows		719		683		809		577		637	-11.4%		1,529		1,214	-20.6%
	Contract holder assessments		(748)		(752)		(785)		(741)		(764)	-2.1%		(1,491)		(1,505)	-0.9%
	Reinvested interest credited		320		327		331		329		335	4.7%		638		664	4.1%
	Balance as of end-of-period, gross		33,108		33,366		33,721		33,886		34,094	3.0%		33,108		34,094	3.0%
	Reinsurance ceded		(819)		(813)		(809)		(804)		(797)	2.7%		(819)		(797)	2.7%
	Balance as of end-of-period, net	$	32,289	$	32,553	$	32,912	$	33,082	$	33,297	3.1%	$	32,289	$	33,297	3.1%
	VUL
	Balance as of beginning-of-period	$	6,859	$	6,972	$	7,453	$	8,094	$	8,354	21.8%	$	6,523	$	8,094	24.1%
	Deposits		287		292		428		397		418	45.6%		530		815	53.8%
	Withdrawals and deaths		(117)		(113)		(125)		(145)		(136)	-16.2%		(323)		(281)	13.0%
	Net flows		170		179		303		252		282	65.9%		207		534	158.0%
	Contract holder assessments		(113)		(104)		(119)		(112)		(118)	-4.4%		(198)		(230)	-16.2%
	Change in market value and reinvestment		56		406		457		120		324	NM		440		444	0.9%
	Balance as of end-of-period, gross		6,972		7,453		8,094		8,354		8,842	26.8%		6,972		8,842	26.8%
	Reinsurance ceded		(815)		(849)		(893)		(884)		(901)	-10.6%		(815)		(901)	-10.6%
	Balance as of end-of-period, net	$	6,157	$	6,604	$	7,201	$	7,470	$	7,941	29.0%	$	6,157	$	7,941	29.0%
	Total
	Balance as of beginning-of-period	$	39,676	$	40,080	$	40,819	$	41,815	$	42,240	6.5%	$	38,955	$	41,815	7.3%
	Deposits		1,253		1,230		1,445		1,266		1,308	4.4%		2,494		2,574	3.2%
	Withdrawals and deaths		(364)		(368)		(333)		(437)		(389)	-6.9%		(758)		(826)	-9.0%
	Net flows		889		862		1,112		829		919	3.4%		1,736		1,748	0.7%
	Contract holder assessments		(861)		(856)		(904)		(853)		(882)	-2.4%		(1,689)		(1,735)	-2.7%
	Change in market value and reinvestment		376		733		788		449		659	75.3%		1,078		1,108	2.8%
	Balance as of end-of-period, gross		40,080		40,819		41,815		42,240		42,936	7.1%		40,080		42,936	7.1%
	Reinsurance ceded		(1,634)		(1,662)		(1,702)		(1,688)		(1,698)	-3.9%		(1,634)		(1,698)	-3.9%
	Balance as of end-of-period, net	$	38,446	$	39,157	$	40,113	$	40,552	$	41,238	7.3%	$	38,446	$	41,238	7.3%
Page 27

	Lincoln Financial Group
	Select Non-GAAP to GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Six Months Ended
		6/30/13		9/30/13		12/31/13		3/31/14		6/30/14		Change	6/30/13		6/30/14		Change
	Revenues
	Operating revenues	$	3,049	$	3,073	$	3,187	$	3,233	$	3,286	7.8%	$	5,978	$	6,519	9.0%
	Excluded realized gain (loss)		(51)		(65)		(66)		(58)		(5)	90.2%		(142)		(63)	55.6%
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		1		1		1		1	0.0%		2		1	-50.0%
	Total revenues	$	2,999	$	3,009	$	3,122	$	3,176	$	3,282	9.4%	$	5,838	$	6,457	10.6%
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(33)	$	(43)	$	(43)	$	(38)	$	(3)	90.9%	$	(92)	$	(42)	54.3%
	Benefit ratio unlocking		(2)		13		12		2		7	NM		12		9	-25.0%
	Net gain (loss), after-tax	$	(35)	$	(30)	$	(31)	$	(36)	$	4	111.4%	$	(80)	$	(33)	58.8%
	Net Income
	Income (loss) from operations	$	351	$	367	$	382	$	365	$	394	12.3%	$	635	$	759	19.5%
	Excluded realized gain (loss)		(33)		(43)		(43)		(38)		(3)	90.9%		(92)		(42)	54.3%
	Benefit ratio unlocking		(2)		13		12		2		7	NM		12		9	-25.0%
	Income (loss) from reserve changes (net of related
	amortization) on business sold through reinsurance		1		-		-		-		-	-100.0%		1		1	0.0%
	Net income (loss)	$	317	$	337	$	351	$	329	$	398	25.6%	$	556	$	727	30.8%
	Earnings (Loss) Per Common Share – Diluted
	Income (loss) from operations	$	1.27	$	1.34	$	1.40	$	1.34	$	1.47	15.7%	$	2.29	$	2.80	22.3%
	Excluded realized gain (loss)		(0.11)		(0.16)		(0.15)		(0.14)		(0.01)	90.9%		(0.32)		(0.14)	56.3%
	Benefit ratio unlocking		(0.01)		0.05		0.04		0.01		0.02	300.0%		0.04		0.03	-25.0%
	Net income (loss)	$	1.15	$	1.23	$	1.29	$	1.21	$	1.48	28.7%	$	2.01	$	2.69	33.8%
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