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

	Lincoln Financial Group
	Analyst Coverage and Credit Ratings
	Firm	Analyst				Phone Number
	Autonomous Research U.S., L.P.	Erik Bass				646-561-6248
	B. Riley FBR	Randy Binner				703-312-1890
	Bank of America Merrill Lynch	Jay Cohen				646-855-5716
	Barclays Capital	Jay Gelb				212-526-1561
	Citi Research	Suneet Kamath				212-816-3457
	Credit Suisse	Andrew Kligerman				212-325-4630
	Deutsche Bank	Joshua Shanker				212-250-7127
	Dowling & Partners	Humphrey Lee				860-676-7324
	Evercore	Thomas Gallagher				212-446-9439
	Goldman Sachs	Alex Scott				917-343-7160
	J.P. Morgan Securities	Jimmy Bhullar				212-622-6397
	Janney Montgomery Scott	Bob Glasspiegel				860-724-1203
	Keefe, Bruyette & Woods, Inc.	Ryan Krueger				860-722-5930
	Morgan Stanley	Nigel Dally				212-761-4132
	RBC Capital Markets	Mark Dwelle				804-782-4008
	Sandler O’Neill & Partners, L.P.	John Barnidge				312-281-3412
	UBS	John Nadel				212-713-4299
	Wells Fargo	Sean Dargan				212-214-1416
	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.
			Ratings as of May 2nd, 2018
						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-
	Investor Inquiries May Be Directed To:
	Chris Giovanni, Senior Vice President, Investor Relations
	Email:  Christopher.Giovanni@lfg.com
	Phone:  484-583-1793
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 adjusted 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.  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.  Management believes 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 net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted 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;
	•  Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;
	•  Executive Benefits – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess
	premium received;
	•  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.
Page 2a

	Lincoln Financial Group
	Notes
	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.
	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 adjusted income (loss) from operations:
	•  Realized gains and losses associated with the following (“excluded realized gain (loss)”):
	▪  Sales or disposals and 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 our variable annuities;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed living benefit ("GLB") riders reflected within variable annuity net derivative results;
	▪  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 the fair value of equity securities
	•  Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);
	•  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;
	•  Acquisition and integration costs related to mergers and acquisitions; and
	•  Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.
	Adjusted 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.
Page 2b

	Lincoln Financial Group
	Notes
	We use our prevailing federal income tax rates of 21% and 35%, where applicable, 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 adjusted operating revenues and adjusted
	income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
	Prior year net flows have been restated to conform to the current year presentation, which has been modified to be consistent across our business segments.
	Statistical Supplement is Dated
	The financial data in this document is dated May 2, 2018, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.
Page 2c

	Lincoln Financial Group
	Consolidated Statements of Income (Loss)
	Unaudited (millions of dollars, except per share data)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Revenues
	Insurance premiums	$	807	$	801	$	774	$	874	$	777	-3.7%
	Fee income		1,354		1,393		1,401		1,471		1,456	7.5%
	Net investment income		1,238		1,262		1,239		1,252		1,233	-0.4%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(4)		(4)		(8)		(2)		(2)	50.0%
	Realized gain (loss), excluding OTTI		(35)		(6)		(48)		(63)		14	134.3%
	Total realized gain (loss)		(39)		(10)		(56)		(65)		12	130.8%
	Amortization of deferred gains on business
	sold through reinsurance		18		4		-		-		-	-100.0%
	Other revenues		122		127		153		137		131	7.4%
	Total revenues		3,500		3,577		3,511		3,669		3,609	3.1%
	Expenses
	Interest credited		647		646		647		650		653	0.9%
	Benefits		1,290		1,287		1,261		1,321		1,358	5.3%
	Commissions and other expenses		1,015		1,034		1,020		1,108		1,057	4.1%
	Interest and debt expense		64		63		63		63		91	42.2%
	Strategic digitization expense		9		14		10		10		15	66.7%
	Impairment of intangibles		-		-		-		905		-	NM
	Total expenses		3,025		3,044		3,001		4,057		3,174	4.9%
	Income (loss) from continuing operations before taxes		475		533		510		(388)		435	-8.4%
	Federal income tax expense (benefit)		40		122		92		(1,204)		68	70.0%
	Net income (loss)		435		411		418		816		367	-15.6%
	Adjustment for LNC stock units in our
	deferred compensation plans		-		1		-		2		(2)	NM
	Net income (loss) available to common
	stockholders – diluted	$	435	$	412	$	418	$	818	$	365	-16.1%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.89	$	1.81	$	1.87	$	3.67	$	1.64	-13.2%
	ROE, including AOCI
	Net income (loss)		11.8%		10.6%		10.3%		19.4%		8.8%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	79,841	$	81,598	$	82,319	$	83,190	$	80,680	1.1%
	U.S. government bonds		576		578		574		567		401	-30.4%
	Foreign government bonds		456		455		455		451		440	-3.5%
	Mortgage-backed securities		4,008		4,028		4,037		4,065		4,037	0.7%
	Asset-backed collateralized debt obligations		776		703		694		808		875	12.8%
	State and municipal bonds		4,826		5,010		5,049		5,119		5,000	3.6%
	Hybrid and redeemable preferred securities		619		642		639		640		626	1.1%
	AFS Equity securities		276		275		302		246		-	-100.0%
	Total AFS securities		91,378		93,289		94,069		95,086		92,059	0.7%
	Trading securities		1,703		1,678		1,665		1,620		1,553	-8.8%
	Equity securities		-		-		-		-		112	NM
	Mortgage loans on real estate		10,001		10,023		10,382		10,762		11,047	10.5%
	Real estate		24		23		11		11		11	-54.2%
	Policy loans		2,432		2,416		2,417		2,399		2,389	-1.8%
	Derivative investments		991		1,054		960		915		827	-16.5%
	Other investments		2,104		2,156		2,210		2,296		2,049	-2.6%
	Total investments		108,633		110,639		111,714		113,089		110,047	1.3%
	Cash and invested cash		1,923		1,978		1,965		1,628		2,257	17.4%
	DAC and VOBA		9,030		8,555		8,543		8,403		9,289	2.9%
	Premiums and fees receivable		465		365		370		396		480	3.2%
	Accrued investment income		1,124		1,082		1,137		1,078		1,137	1.2%
	Reinsurance recoverables		5,333		5,228		5,062		4,907		5,009	-6.1%
	Funds withheld reinsurance assets		610		607		602		593		576	-5.6%
	Goodwill		2,273		2,273		2,273		1,368		1,368	-39.8%
	Other assets		5,119		5,099		5,507		6,082		6,313	23.3%
	Separate account assets		132,958		135,825		139,612		144,219		142,761	7.4%
	Total assets	$	267,468	$	271,651	$	276,785	$	281,763	$	279,237	4.4%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	22,202	$	22,293	$	22,547	$	22,887	$	22,923	3.2%
	Other contract holder funds		79,078		79,216		79,623		80,209		80,710	2.1%
	Short-term debt		200		450		450		450		250	25.0%
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 6 for details)		865		865		865		865		865	0.0%
	Financial		4,268		4,036		4,035		4,029		4,783	12.1%
	Reinsurance related embedded derivatives		50		53		63		57		34	-32.0%
	Funds withheld reinsurance liabilities		1,961		1,862		1,807		1,761		1,726	-12.0%
	Deferred gain on business sold through reinsurance		6		2		2		1		1	-83.3%
	Payables for collateral on investments		5,086		4,952		4,968		4,417		4,265	-16.1%
	Other liabilities		5,821		6,101		6,499		5,546		4,934	-15.2%
	Separate account liabilities		132,958		135,825		139,612		144,219		142,761	7.4%
	Total liabilities		252,495		255,655		260,471		264,441		263,252	4.3%
	Stockholders’ Equity
	Common stock		5,839		5,774		5,717		5,693		5,700	-2.4%
	Retained earnings		7,287		7,511		7,738		8,399		8,052	10.5%
	AOCI:
	Unrealized investment gains (losses)		2,139		3,003		3,149		3,501		2,533	18.4%
	Foreign currency translation adjustment		(25)		(20)		(16)		(14)		(9)	64.0%
	Funded status of employee benefit plans		(267)		(272)		(274)		(257)		(291)	-9.0%
	Total AOCI		1,847		2,711		2,859		3,230		2,233	20.9%
	Total stockholders’ equity		14,973		15,996		16,314		17,322		15,985	6.8%
	Total liabilities and stockholders’ equity	$	267,468	$	271,651	$	276,785	$	281,763	$	279,237	4.4%
Page 4b

	Lincoln Financial Group
	Earnings, Shares and Return on Equity
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss)
	Net income (loss)	$	435	$	411	$	418	$	816	$	367	-15.6%
	Pre-tax adjusted income (loss) from operations		485		544		566		581		512	5.6%
	After-tax adjusted income (loss) from operations (1)		442		419		454		440		441	-0.2%
	Adjusted operating tax rate		8.9%		23.0%		19.8%		24.3%		13.9%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	14,725	$	15,485	$	16,155	$	16,818	$	16,653	13.1%
	Average AOCI		1,706		2,279		2,785		3,044		3,052	78.9%
	Average equity, excluding AOCI	$	13,019	$	13,206	$	13,370	$	13,774	$	13,601	4.5%
	ROE, excluding AOCI
	Net income (loss)		13.4%		12.4%		12.5%		23.7%		10.8%
	Adjusted income (loss) from operations		13.6%		12.7%		13.6%		12.8%		13.0%
	Per Share
	Net income (loss) (diluted)	$	1.89	$	1.81	$	1.87	$	3.67	$	1.64	-13.2%
	Adjusted income (loss) from operations (diluted)		1.92		1.85		2.03		1.98		1.97	2.6%
	Dividends declared during the period		0.29		0.29		0.29		0.33		0.33	13.8%
	Book value, including AOCI	$	66.58	$	71.98	$	74.31	$	79.43	$	73.09	9.8%
	Per share impact of AOCI		8.21		12.20		13.02		14.81		10.21	24.4%
	Book value, excluding AOCI	$	58.37	$	59.78	$	61.29	$	64.62	$	62.88	7.7%
	Shares
	Repurchased during the period		2.9		3.0		2.8		1.7		-	-100.0%
	End-of-period – basic		224.9		222.2		219.5		218.1		218.7	-2.8%
	End-of-period – diluted		228.9		226.0		222.7		221.3		222.4	-2.8%
	Average for the period – diluted		230.1		227.3		223.9		221.9		222.3	-3.4%
	(1) See reconciliation to net income (loss) on page 24.
Page 5

	Lincoln Financial Group
	Key Stakeholder Metrics
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Cash Returned to Common Stockholders
	Shares repurchased	$	200	$	200	$	200	$	125	$	-	-100.0%
	Common dividends		66		65		64		64		72	9.1%
	Total cash returned to common stockholders	$	266	$	265	$	264	$	189	$	72	-72.9%
	Leverage Ratio
	Short-term debt	$	200	$	450	$	450	$	450	$	250	25.0%
	Long-term debt		5,133		4,901		4,900		4,894		5,648	10.0%
	Total debt (1)		5,333		5,351		5,350		5,344		5,898	10.6%
	Less:
	Operating debt (2)		865		865		865		865		865	0.0%
	25% of capital securities		302		302		302		302		302	0.0%
	Carrying value of fair value hedges		246		263		261		254		200	-18.7%
	Total numerator	$	3,920	$	3,921	$	3,922	$	3,923	$	4,531	15.6%
	Stockholders’ equity, excluding unrealized
	investment gains (losses)	$	12,834	$	12,993	$	13,165	$	13,821	$	13,452	4.8%
	Add:  25% of capital securities		302		302		302		302		302	0.0%
	Total numerator		3,920		3,921		3,922		3,923		4,531	15.6%
	Total denominator	$	17,056	$	17,216	$	17,389	$	18,046	$	18,285	7.2%
	Leverage ratio		23.0%		22.8%		22.6%		21.7%		24.8%
	Holding Company Available Liquidity	$	551	$	523	$	569	$	605	$	1,063	92.9%
	(1) Excludes obligations under capital leases of $276 million that are reported in other liabilities on our Consolidated Balance Sheets.
	(2) 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.
Page 6

	Lincoln Financial Group
	Segment and Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss) from Operations, Pre-Tax
	Annuities	$	280	$	310	$	350	$	333	$	313	11.8%
	Retirement Plan Services		48		50		48		57		48	0.0%
	Life Insurance		187		194		175		223		172	-8.0%
	Group Protection		11		53		63		31		37	236.4%
	Other Operations		(41)		(63)		(70)		(63)		(58)	-41.5%
	Adjusted income (loss) from operations, before
	income taxes	$	485	$	544	$	566	$	581	$	512	5.6%
	Income (Loss) from Operations, After-Tax
	Annuities	$	281	$	251	$	277	$	265	$	267	-5.0%
	Retirement Plan Services		37		37		35		41		43	16.2%
	Life Insurance		130		133		121		152		144	10.8%
	Group Protection		7		35		41		20		29	NM
	Other Operations		(13)		(37)		(20)		(38)		(42)	NM
	Adjusted income (loss) from operations	$	442	$	419	$	454	$	440	$	441	-0.2%
			For the Three Months Ended										For the Trailing Twelve Months
			3/31/17		6/30/17		9/30/17		12/31/17		3/31/18	Change	3/31/17		3/31/18		Change
	Sources of Earnings, Pre-Tax
	Investment spread	$	172	$	186	$	188	$	202	$	161	-6.4%	$	736	$	739	0.4%
	Mortality/morbidity		115		158		156		156		132	14.8%		559		603	7.9%
	Fees on AUM		209		230		280		249		247	18.2%		872		1,005	15.3%
	VA riders		30		33		12		37		30	0.0%		137		112	-18.2%
	Total sources of earnings, before income taxes		526		607		636		644		570	8.4%		2,304		2,459	6.7%
	Other Operations		(41)		(63)		(70)		(63)		(58)	-41.5%		(224)		(256)	-14.3%
	Adjusted income (loss) from operations, before
	income taxes	$	485	$	544	$	566	$	581	$	512	5.6%	$	2,080	$	2,203	5.9%
	Sources of Earnings, Pre-Taxes, Percentage By Component
	Investment spread		32.5%		30.7%		29.6%		31.4%		28.2%			31.9%		30.0%
	Mortality/morbidity		21.9%		26.0%		24.6%		24.2%		23.1%			24.3%		24.5%
	Fees on AUM		39.9%		37.8%		43.9%		38.6%		43.4%			37.9%		40.9%
	VA riders		5.7%		5.5%		1.9%		5.8%		5.3%			5.9%		4.6%
	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
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Annuities
	Operating revenues	$	1,061	$	1,076	$	1,073	$	1,167	$	1,073	1.1%
	Deposits		2,016		1,991		1,916		2,787		2,526	25.3%
	Net flows		(757)		(887)		(841)		(222)		(606)	19.9%
	Average account values		127,644		130,321		132,304		135,417		138,290	8.3%
	Retirement Plan Services
	Operating revenues	$	282	$	290	$	291	$	302	$	292	3.5%
	Deposits		2,252		1,978		1,908		2,426		2,360	4.8%
	Net flows		141		421		442		440		463	228.4%
	Average account values		59,530		61,728		63,665		66,212		68,249	14.6%
	Life Insurance
	Operating revenues	$	1,606	$	1,655	$	1,614	$	1,684	$	1,660	3.4%
	Deposits		1,414		1,543		1,462		1,896		1,534	8.5%
	Net flows		924		1,101		1,064		1,443		1,076	16.5%
	Average account values		46,147		46,842		47,547		48,481		49,165	6.5%
	Average in-force face amount		695,759		701,592		708,148		715,924		722,585	3.9%
	Group Protection
	Operating revenues	$	541	$	541	$	564	$	554	$	553	2.2%
	Non-medical earned premiums		495		494		500		509		508	2.6%
	Consolidated
	Adjusted operating revenues (1)	$	3,578	$	3,629	$	3,607	$	3,775	$	3,645	1.9%
	Deposits		5,682		5,512		5,286		7,109		6,420	13.0%
	Net flows		308		635		665		1,661		933	202.9%
	Average account values		233,321		238,891		243,516		250,110		255,704	9.6%
	(1) See reconciliation to total revenues on page 24.
Page 8

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Sales
	Annuities:
	With guaranteed living benefits	$	905	$	1,007	$	959	$	1,504	$	1,447	59.9%
	Without guaranteed living benefits		549		607		573		638		587	6.9%
	Variable		1,454		1,614		1,532		2,142		2,034	39.9%
	Fixed		562		377		384		645		492	-12.5%
	Total Annuities	$	2,016	$	1,991	$	1,916	$	2,787	$	2,526	25.3%
	Retirement Plan Services:
	First-year sales	$	800	$	737	$	672	$	1,166	$	800	0.0%
	Recurring deposits		1,452		1,241		1,236		1,260		1,560	7.4%
	Total Retirement Plan Services	$	2,252	$	1,978	$	1,908	$	2,426	$	2,360	4.8%
	Life Insurance:
	UL	$	17	$	14	$	10	$	11	$	10	-41.2%
	MoneyGuard®		60		80		65		64		56	-6.7%
	IUL		18		16		19		17		14	-22.2%
	VUL		36		50		45		63		58	61.1%
	Term		27		28		29		30		25	-7.4%
	Total individual life insurance		158		188		168		185		163	3.2%
	Executive Benefits		23		9		10		57		10	-56.5%
	Total Life Insurance	$	181	$	197	$	178	$	242	$	173	-4.4%
	Group Protection:
	Life	$	23	$	28	$	33	$	95	$	23	0.0%
	Disability		23		32		35		108		21	-8.7%
	Dental		11		28		26		62		11	0.0%
	Total Group Protection	$	57	$	88	$	94	$	265	$	55	-3.5%
	Percent employee-paid		53.3%		40.7%		44.7%		48.0%		53.4%
Page 9

	Lincoln Financial Group
	Operating Revenues and General and Administrative Expenses By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Operating Revenues
	Annuities	$	1,061	$	1,076	$	1,073	$	1,167	$	1,073	1.1%
	Retirement Plan Services		282		290		291		302		292	3.5%
	Life Insurance		1,606		1,655		1,614		1,684		1,660	3.4%
	Group Protection		541		541		564		554		553	2.2%
	Other Operations		88		67		65		68		67	-23.9%
	Total adjusted operating revenues	$	3,578	$	3,629	$	3,607	$	3,775	$	3,645	1.9%
	General and Administrative Expenses,
	Net of Amounts Capitalized (1)
	Annuities	$	112	$	120	$	114	$	121	$	116	3.6%
	Retirement Plan Services		75		79		77		80		76	1.3%
	Life Insurance		120		126		125		133		118	-1.7%
	Group Protection		73		77		85		90		80	9.6%
	Other Operations		22		26		29		31		28	27.3%
	Total	$	402	$	428	$	430	$	455	$	418	4.0%
	General and Administrative Expenses,
	Net of Amounts Capitalized, as a Percentage
	of Operating Revenues
	Annuities		10.6%		11.1%		10.6%		10.3%		10.8%
	Retirement Plan Services		26.6%		27.2%		26.5%		26.5%		25.9%
	Life Insurance		7.5%		7.6%		7.8%		7.9%		7.1%
	Group Protection		13.4%		14.2%		15.1%		16.2%		14.5%
	Other Operations		24.8%		40.8%		42.1%		47.7%		42.0%
	Total		11.2%		11.8%		11.9%		12.1%		11.5%
	(1) See page 11 for general and administrative expenses capitalized.
Page 10

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	446	$	475	$	479	$	519	$	460	3.1%
	Commissions		555		576		555		623		596	7.4%
	Taxes, licenses and fees		70		64		57		60		78	11.4%
	Interest and debt expense		64		63		63		63		68	6.3%
	Expenses associated with reserve financing
	and unrelated letters of credit		21		21		20		21		20	-4.8%
	Total adjusted operating commissions and other
	expenses incurred		1,156		1,199		1,174		1,286		1,222	5.7%
	Less Amounts Capitalized
	General and administrative expenses		(44)		(47)		(49)		(64)		(42)	4.5%
	Commissions		(261)		(280)		(254)		(308)		(289)	-10.7%
	Taxes, licenses and fees		(11)		(11)		(10)		(16)		(11)	0.0%
	Total amounts capitalized		(316)		(338)		(313)		(388)		(342)	-8.2%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		840		861		861		898		880	4.8%
	Amortization
	Amortization of DAC and VOBA		237		243		220		275		258	8.9%
	Amortization of intangibles		1		1		1		1		1	0.0%
	Total amortization		238		244		221		276		259	8.8%
	Total adjusted operating commissions and
	other expenses	$	1,078	$	1,105	$	1,082	$	1,174	$	1,139	5.7%
Page 11

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Annuities
	Earned rate on reserves		4.06%		3.99%		3.94%		3.93%		3.87%	(19)
	Variable investment income on reserves (1)		0.11%		0.20%		0.33%		0.31%		0.08%	(3)
	Net investment income yield on reserves		4.17%		4.19%		4.27%		4.24%		3.95%	(22)
	Interest rate credited to contract holders		2.43%		2.37%		2.29%		2.27%		2.32%	(11)
	Interest rate spread		1.74%		1.82%		1.98%		1.97%		1.63%	(11)
	Base spreads excluding variable investment income		1.63%		1.62%		1.65%		1.66%		1.55%	(8)
	Retirement Plan Services
	Earned rate on reserves		4.37%		4.30%		4.31%		4.33%		4.28%	(9)
	Variable investment income on reserves (1)		0.08%		0.17%		0.15%		0.33%		0.09%	1
	Net investment income yield on reserves		4.45%		4.47%		4.46%		4.66%		4.37%	(8)
	Interest rate credited to contract holders		2.93%		2.91%		2.93%		2.91%		2.90%	(3)
	Interest rate spread		1.52%		1.56%		1.53%		1.75%		1.47%	(5)
	Base spreads excluding variable investment income		1.44%		1.39%		1.38%		1.42%		1.38%	(6)
	Life Insurance – Interest-Sensitive
	Earned rate on reserves		5.11%		5.05%		5.06%		5.06%		4.98%	(13)
	Variable investment income on reserves (1)		0.34%		0.44%		0.27%		0.27%		0.27%	(7)
	Net investment income yield on reserves		5.45%		5.49%		5.33%		5.33%		5.25%	(20)
	Interest rate credited to contract holders		3.85%		3.82%		3.83%		3.87%		3.83%	(2)
	Interest rate spread		1.60%		1.67%		1.50%		1.46%		1.42%	(18)
	Base spreads excluding variable investment income		1.26%		1.23%		1.23%		1.19%		1.15%	(11)
	Total (2)
	Earned rate (3)		4.61%		4.57%		4.52%		4.53%		4.50%	(11)
	Variable investment income (1) (3)		0.26%		0.35%		0.28%		0.29%		0.23%	(3)
	Net investment income yield (3)		4.87%		4.92%		4.80%		4.82%		4.73%	(14)
	Interest rate credited to contract holders		3.26%		3.22%		3.19%		3.21%		3.20%	(6)
	Interest rate spread		1.61%		1.70%		1.61%		1.61%		1.53%	(8)
	Base spreads excluding variable investment income		1.35%		1.35%		1.33%		1.32%		1.30%	(5)
	(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
	(2) Includes the results of all of our business segments and Other Operations.
	(3) Includes investment yields on reserves and surplus.
Page 12

	Lincoln Financial Group
	Annuities – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	124	$	106	$	82	$	162	$	70	-43.5%
	Fee income		533		553		574		585		586	9.9%
	Net investment income		256		263		260		258		249	-2.7%
	Operating realized gain (loss)		45		45		44		44		48	6.7%
	Other revenues		103		109		113		118		120	16.5%
	Total operating revenues		1,061		1,076		1,073		1,167		1,073	1.1%
	Operating expenses:
	Interest credited		147		145		145		144		148	0.7%
	Benefits		193		174		135		224		145	-24.9%
	Commissions incurred		224		222		216		254		244	8.9%
	Other expenses incurred		213		224		220		234		232	8.9%
	Amounts capitalized		(97)		(98)		(90)		(126)		(120)	-23.7%
	Amortization		101		99		97		104		111	9.9%
	Total operating expenses		781		766		723		834		760	-2.7%
	Income (loss) from operations before taxes		280		310		350		333		313	11.8%
	Federal income tax expense (benefit)		(1)		59		73		68		46	NM
	Income (loss) from operations	$	281	$	251	$	277	$	265	$	267	-5.0%
	Effective Federal Income Tax Rate		-0.4%		19.2%		20.8%		20.3%		14.7%
	Average Equity, Excluding Goodwill and AOCI	$	4,575	$	4,769	$	4,982	$	5,093	$	4,954	8.3%
	ROE, Excluding Goodwill and AOCI		24.6%		21.0%		22.3%		20.9%		21.6%
	Return on Average Account Values		88		77		84		78		77	(11)
	Account Values
	Variable annuity account values:
	Average	$	108,337	$	110,832	$	112,888	$	115,981	$	118,782	9.6%
	End-of-period		109,475		111,570		114,270		117,479		116,172	6.1%
	Fixed annuity account values:
	Average		19,307		19,489		19,416		19,436		19,508	1.0%
	End-of-period		19,455		19,459		19,394		19,537		19,457	0.0%
Page 13

	Lincoln Financial Group
	Retirement Plan Services – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	59	$	62	$	63	$	64	$	64	8.5%
	Net investment income		218		224		223		233		222	1.8%
	Other revenues		5		4		5		5		6	20.0%
	Total operating revenues		282		290		291		302		292	3.5%
	Operating expenses:
	Interest credited		132		134		136		136		137	3.8%
	Benefits		-		-		-		-		-	NM
	Commissions incurred		19		19		19		20		19	0.0%
	Other expenses incurred		85		89		86		89		85	0.0%
	Amounts capitalized		(8)		(8)		(6)		(7)		(4)	50.0%
	Amortization		6		6		8		7		7	16.7%
	Total operating expenses		234		240		243		245		244	4.3%
	Income (loss) from operations before taxes		48		50		48		57		48	0.0%
	Federal income tax expense (benefit)		11		13		13		16		5	-54.5%
	Income (loss) from operations	$	37	$	37	$	35	$	41	$	43	16.2%
	Effective Federal Income Tax Rate		22.4%		27.5%		27.9%		28.5%		11.4%
	Average Equity, Excluding Goodwill and AOCI	$	1,191	$	1,218	$	1,218	$	1,227	$	1,312	10.2%
	ROE, Excluding Goodwill and AOCI		12.5%		12.0%		11.5%		13.3%		13.0%
	Pre-tax Net Margin		31.9%		32.2%		31.3%		34.4%		31.0%
	Return on Average Account Values		25		24		22		25		25	-
	Net Flows by Market
	Small Market		(367)		137		183		279		(79)	78.5%
	Mid - Large Market		749		536		503		455		834	11.3%
	Multi-Fund®and Other		(241)		(252)		(244)		(294)		(292)	-21.2%
	Net Flows – Trailing Twelve Months	$	694	$	1,089	$	1,412	$	1,444	$	1,766	154.5%
Page 14

	Lincoln Financial Group
	Life Insurance – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	185	$	199	$	191	$	199	$	196	5.9%
	Fee income		760		778		764		821		805	5.9%
	Net investment income		658		672		655		659		658	0.0%
	Operating realized gain (loss)		(4)		(3)		(3)		(3)		(1)	75.0%
	Other revenues		7		9		7		8		2	-71.4%
	Total operating revenues		1,606		1,655		1,614		1,684		1,660	3.4%
	Operating expenses:
	Interest credited		349		349		350		355		354	1.4%
	Benefits		797		807		808		779		849	6.5%
	Commissions incurred		174		190		176		193		180	3.4%
	Other expenses incurred		201		209		205		216		201	0.0%
	Amounts capitalized		(199)		(219)		(201)		(228)		(204)	-2.5%
	Amortization		97		125		101		146		108	11.3%
	Total operating expenses		1,419		1,461		1,439		1,461		1,488	4.9%
	Income (loss) from operations before taxes		187		194		175		223		172	-8.0%
	Federal income tax expense (benefit)		57		61		54		71		28	-50.9%
	Income (loss) from operations	$	130	$	133	$	121	$	152	$	144	10.8%
	Effective Federal Income Tax Rate		30.3%		31.6%		30.8%		32.0%		16.2%
	Average Equity, Excluding Goodwill and AOCI	$	6,581	$	6,762	$	6,798	$	6,804	$	7,826	18.9%
	ROE, Excluding Goodwill and AOCI		7.9%		7.9%		7.1%		8.9%		7.4%
	Average Account Values	$	46,147	$	46,842	$	47,547	$	48,481	$	49,165	6.5%
	In-Force Face Amount
	UL and other	$	337,338	$	337,971	$	338,753	$	341,044	$	340,862	1.0%
	Term insurance		361,247		366,628		372,943		379,108		384,154	6.3%
	Total in-force face amount	$	698,585	$	704,599	$	711,696	$	720,152	$	725,016	3.8%
Page 15

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	495	$	494	$	500	$	509	$	508	2.6%
	Net investment income		43		43		41		41		40	-7.0%
	Other revenues		3		4		23		4		5	66.7%
	Total operating revenues		541		541		564		554		553	2.2%
	Operating expenses:
	Interest credited		-		-		-		1		1	NM
	Benefits		351		326		334		341		326	-7.1%
	Commissions incurred		63		62		62		69		66	4.8%
	Other expenses incurred		96		99		107		120		105	9.4%
	Amounts capitalized		(13)		(13)		(16)		(26)		(13)	0.0%
	Amortization		33		14		14		18		31	-6.1%
	Total operating expenses		530		488		501		523		516	-2.6%
	Income (loss) from operations before taxes		11		53		63		31		37	236.4%
	Federal income tax expense (benefit)		4		18		22		11		8	100.0%
	Income (loss) from operations	$	7	$	35	$	41	$	20	$	29	NM
	Effective Federal Income Tax Rate		35.0%		35.0%		35.0%		35.0%		21.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,065	$	1,044	$	1,054	$	1,078	$	1,102	3.5%
	ROE, Excluding Goodwill and AOCI		2.6%		13.3%		15.6%		7.5%		10.5%
	Loss Ratios by Product Line
	Life		72.5%		66.1%		55.8%		66.2%		63.2%
	Disability		68.9%		65.4%		69.5%		67.8%		61.9%
	Dental		73.3%		68.7%		68.0%		67.5%		74.7%
	Total non-medical		71.0%		66.1%		63.7%		67.1%		64.3%
Page 16

	Lincoln Financial Group
	Other Operations – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	3	$	2	$	1	$	3	$	3	0.0%
	Net investment income		63		60		60		61		64	1.6%
	Amortization of deferred gain on
	business sold through reinsurance		18		4		-		-		-	-100.0%
	Other revenues		4		1		4		4		-	-100.0%
	Total operating revenues		88		67		65		68		67	-23.9%
	Operating expenses:
	Interest credited		18		18		15		14		15	-16.7%
	Benefits		28		27		36		26		19	-32.1%
	Commissions and other expenses		10		8		11		18		8	-20.0%
	Interest and debt expenses		64		63		63		63		68	6.3%
	Strategic digitization expense		9		14		10		10		15	66.7%
	Total operating expenses		129		130		135		131		125	-3.1%
	Income (loss) from operations before taxes		(41)		(63)		(70)		(63)		(58)	-41.5%
	Federal income tax expense (benefit)		(28)		(26)		(50)		(25)		(16)	42.9%
	Income (loss) from operations	$	(13)	$	(37)	$	(20)	$	(38)	$	(42)	NM
Page 17

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	DAC, VOBA, and DSI
	Balance as of beginning-of-period	$	9,377	$	9,274	$	8,794	$	8,779	$	8,641	-7.8%
	Deferrals		325		342		319		397		353	8.6%
	Operating amortization		(244)		(250)		(232)		(284)		(267)	-9.4%
	Deferrals, net of operating amortization		81		92		87		113		86	6.2%
	Amortization associated with benefit ratio unlocking		(11)		(6)		(7)		(6)		5	145.5%
	Adjustment related to realized (gains) losses		(5)		(10)		1		(1)		(5)	0.0%
	Adjustment related to unrealized (gains) losses		(168)		(556)		(96)		(244)		811	NM
	Balance as of end-of-period	$	9,274	$	8,794	$	8,779	$	8,641	$	9,538	2.8%
	DFEL
	Balance as of beginning-of-period	$	1,874	$	1,796	$	1,443	$	1,545	$	1,445	-22.9%
	Deferrals		169		196		187		203		203	20.1%
	Operating amortization		(82)		(94)		(98)		(118)		(107)	-30.5%
	Deferrals, net of operating amortization		87		102		89		85		96	10.3%
	Amortization associated with benefit ratio unlocking		(1)		(1)		(1)		(1)		1	200.0%
	Adjustment related to realized (gains) losses		(4)		(4)		(3)		(2)		(4)	0.0%
	Adjustment related to unrealized (gains) losses		(160)		(450)		17		(182)		339	NM
	Balance as of end-of-period	$	1,796	$	1,443	$	1,545	$	1,445	$	1,877	4.5%
	DAC, VOBA, DSI, and DFEL Balance as
	of End-of-Period, After-Tax	$	4,861	$	4,778	$	4,702	$	4,677	$	6,052	24.5%
Page 18

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	19,723	$	20,027	$	20,021	$	20,014	$	20,305	3.0%
	Gross deposits		562		377		384		645		492	-12.5%
	Full surrenders and deaths		(343)		(404)		(420)		(396)		(399)	-16.3%
	Other contract benefits		(131)		(143)		(148)		(167)		(152)	-16.0%
	Net flows		88		(170)		(184)		82		(59)	NM
	Contract holder assessments		(6)		(7)		(7)		(8)		(7)	-16.7%
	Reinvested interest credited		222		171		184		217		76	-65.8%
	Balance as of end-of-period, gross		20,027		20,021		20,014		20,305		20,315	1.4%
	Reinsurance ceded		(572)		(562)		(620)		(768)		(858)	-50.0%
	Balance as of end-of-period, net	$	19,455	$	19,459	$	19,394	$	19,537	$	19,457	0.0%
	Variable Annuities
	Balance as of beginning-of-period	$	105,766	$	109,475	$	111,570	$	114,270	$	117,479	11.1%
	Gross deposits		1,454		1,614		1,532		2,142		2,034	39.9%
	Full surrenders and deaths		(1,439)		(1,474)		(1,374)		(1,492)		(1,614)	-12.2%
	Other contract benefits		(860)		(857)		(815)		(954)		(967)	-12.4%
	Net flows		(845)		(717)		(657)		(304)		(547)	35.3%
	Contract holder assessments		(578)		(590)		(599)		(615)		(619)	-7.1%
	Change in market value and reinvestment		5,132		3,402		3,956		4,128		(141)	NM
	Balance as of end-of-period, gross and net	$	109,475	$	111,570	$	114,270	$	117,479	$	116,172	6.1%
	Total
	Balance as of beginning-of-period	$	125,489	$	129,502	$	131,591	$	134,284	$	137,784	9.8%
	Gross deposits		2,016		1,991		1,916		2,787		2,526	25.3%
	Full surrenders and deaths		(1,782)		(1,878)		(1,794)		(1,888)		(2,013)	-13.0%
	Other contract benefits		(991)		(1,000)		(963)		(1,121)		(1,119)	-12.9%
	Net flows		(757)		(887)		(841)		(222)		(606)	19.9%
	Contract holder assessments		(584)		(597)		(606)		(623)		(626)	-7.2%
	Change in market value and reinvestment		5,354		3,573		4,140		4,345		(65)	NM
	Balance as of end-of-period, gross		129,502		131,591		134,284		137,784		136,487	5.4%
	Reinsurance ceded		(572)		(562)		(620)		(768)		(858)	-50.0%
	Balance as of end-of-period, net	$	128,930	$	131,029	$	133,664	$	137,016	$	135,629	5.2%
Page 19

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	General Account
	Balance as of beginning-of-period	$	17,883	$	18,192	$	18,413	$	18,626	$	18,724	4.7%
	Gross deposits		710		557		415		494		459	-35.4%
	Withdrawals		(536)		(427)		(395)		(545)		(520)	3.0%
	Net flows		174		130		20		(51)		(61)	NM
	Transfers between fixed and variable accounts		1		(40)		59		14		60	NM
	Contract holder assessments		(2)		(2)		(2)		(2)		(3)	-50.0%
	Reinvestment interest credited		136		133		136		137		136	0.0%
	Balance as of end-of-period	$	18,192	$	18,413	$	18,626	$	18,724	$	18,856	3.6%
	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	40,551	$	42,541	$	44,155	$	46,203	$	48,645	20.0%
	Gross deposits		1,542		1,421		1,493		1,932		1,901	23.3%
	Withdrawals		(1,575)		(1,130)		(1,071)		(1,441)		(1,377)	12.6%
	Net flows		(33)		291		422		491		524	NM
	Transfers between fixed and variable accounts		(8)		(23)		(88)		(61)		(119)	NM
	Contract holder assessments		(48)		(49)		(50)		(52)		(52)	-8.3%
	Change in market value and reinvestment		2,079		1,395		1,764		2,064		(144)	NM
	Balance as of end-of-period	$	42,541	$	44,155	$	46,203	$	48,645	$	48,854	14.8%
	Total
	Balance as of beginning-of-period	$	58,434	$	60,733	$	62,568	$	64,829	$	67,369	15.3%
	Gross deposits		2,252		1,978		1,908		2,426		2,360	4.8%
	Withdrawals		(2,111)		(1,557)		(1,466)		(1,986)		(1,897)	10.1%
	Net flows		141		421		442		440		463	228.4%
	Transfers between fixed and variable accounts		(7)		(63)		(29)		(47)		(59)	NM
	Contract holder assessments		(50)		(51)		(52)		(54)		(55)	-10.0%
	Change in market value and reinvestment		2,215		1,528		1,900		2,201		(8)	NM
	Balance as of end-of-period	$	60,733	$	62,568	$	64,829	$	67,369	$	67,710	11.5%
Page 20

	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	General Account
	Balance as of beginning-of-period	$	36,272	$	36,295	$	36,454	$	36,576	$	36,791	1.4%
	Deposits		1,042		1,115		1,070		1,152		1,040	-0.2%
	Withdrawals and deaths		(403)		(316)		(310)		(281)		(318)	21.1%
	Net flows		639		799		760		871		722	13.0%
	Contract holder assessments		(969)		(995)		(999)		(1,030)		(1,019)	-5.2%
	Reinvested interest credited		353		355		361		374		361	2.3%
	Balance as of end-of-period, gross		36,295		36,454		36,576		36,791		36,855	1.5%
	Reinsurance ceded		(738)		(734)		(726)		(719)		(700)	5.1%
	Balance as of end-of-period, net	$	35,557	$	35,720	$	35,850	$	36,072	$	36,155	1.7%
	Separate Account
	Balance as of beginning-of-period	$	11,058	$	11,772	$	12,296	$	12,916	$	13,851	25.3%
	Deposits		372		428		392		744		494	32.8%
	Withdrawals and deaths		(87)		(126)		(88)		(172)		(140)	-60.9%
	Net flows		285		302		304		572		354	24.2%
	Contract holder assessments		(152)		(165)		(163)		(174)		(179)	-17.8%
	Change in market value and reinvestment		581		387		479		537		(39)	NM
	Balance as of end-of-period, gross		11,772		12,296		12,916		13,851		13,987	18.8%
	Reinsurance ceded		(824)		(836)		(851)		(875)		(861)	-4.5%
	Balance as of end-of-period, net	$	10,948	$	11,460	$	12,065	$	12,976	$	13,126	19.9%
	Total
	Balance as of beginning-of-period	$	47,330	$	48,067	$	48,750	$	49,492	$	50,642	7.0%
	Deposits		1,414		1,543		1,462		1,896		1,534	8.5%
	Withdrawals and deaths		(490)		(442)		(398)		(453)		(458)	6.5%
	Net flows		924		1,101		1,064		1,443		1,076	16.5%
	Contract holder assessments		(1,121)		(1,160)		(1,162)		(1,204)		(1,198)	-6.9%
	Change in market value and reinvestment		934		742		840		911		322	-65.5%
	Balance as of end-of-period, gross		48,067		48,750		49,492		50,642		50,842	5.8%
	Reinsurance ceded		(1,562)		(1,570)		(1,577)		(1,594)		(1,561)	0.1%
	Balance as of end-of-period, net	$	46,505	$	47,180	$	47,915	$	49,048	$	49,281	6.0%
Page 21

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
		As of 3/31/17				As of 12/31/17				As of 3/31/18
		Amount		%		Amount		%		Amount		%
	AFS, Equity and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	79,841		85.8%	$	83,190		85.9%	$	80,680		86.1%
	U.S. government bonds		576		0.6%		567		0.6%		401		0.4%
	Foreign government bonds		456		0.5%		451		0.5%		440		0.5%
	Mortgage-backed securities		4,008		4.3%		4,065		4.2%		4,037		4.3%
	Asset-backed collateralized debt obligations		776		0.8%		808		0.8%		875		0.9%
	State and municipal bonds		4,826		5.2%		5,119		5.3%		5,000		5.3%
	Hybrid and redeemable preferred securities		619		0.7%		640		0.7%		626		0.7%
	AFS Equity securities		276		0.3%		246		0.3%		-		0.0%
	Total AFS securities		91,378		98.2%		95,086		98.3%		92,059		98.2%
	Trading securities		1,703		1.8%		1,620		1.7%		1,553		1.7%
	Equity securities		-		0.0%		-		0.0%		112		0.1%
	Total AFS, Equity and trading securities	$	93,081		100.0%	$	96,706		100.0%	$	93,724		100.0%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	87,337		99.7%	$	88,418		99.7%	$	88,659		99.9%
	Equity securities		263		0.3%		247		0.3%		112		0.1%
	Total AFS and trading securities	$	87,600		100.0%	$	88,665		100.0%	$	88,771		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				95.4%				95.6%				95.7%
	Below investment grade				4.6%				4.4%				4.3%
Page 22

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Realized Gain (Loss), Pre-Tax
	Total adjusted operating realized gain (loss)	$	41	$	42	$	41	$	41	$	47	14.6%
	Total excluded realized gain (loss)		(80)		(52)		(97)		(106)		(35)	56.3%
	Total realized gain (loss), pre-tax	$	(39)	$	(10)	$	(56)	$	(65)	$	12	130.8%
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(52)	$	(34)	$	(63)	$	(69)	$	(28)	46.2%
	Benefit ratio unlocking		45		26		30		28		(10)	NM
	Net gain (loss), after-tax	$	(7)	$	(8)	$	(33)	$	(41)	$	(38)	NM
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(1)	$	(13)	$	(13)	$	(23)	$	(15)	NM
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		9		17		(5)		(7)		(25)	NM
	GLB non-performance risk component		(9)		(8)		(16)		(9)		5	155.6%
	Total variable annuity net derivative results		-		9		(21)		(16)		(20)	NM
	Indexed annuity forward-starting option		(6)		(4)		1		(2)		(3)	50.0%
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	(7)	$	(8)	$	(33)	$	(41)	$	(38)	NM
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(3)	$	(3)	$	(5)	$	(1)	$	(2)	39.2%
	Other realized gain (loss) related to certain investments		(6)		(9)		(8)		(14)		(15)	NM
	Gain (loss) on the mark-to-market on certain instruments		8		(1)		-		(8)		2	-75.0%
	Total realized gain (loss) related
	to investments, after-tax	$	(1)	$	(13)	$	(13)	$	(23)	$	(15)	NM
Page 23

	Lincoln Financial Group
	Select GAAP to Non-GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended
		3/31/17		6/30/17		9/30/17		12/31/17		3/31/18		Change
	Revenues
	Total revenues	$	3,500	$	3,577	$	3,511	$	3,669	$	3,609	3.1%
	Less:
	Excluded realized gain (loss)		(80)		(52)		(97)		(106)		(35)	56.3%
	Amortization of DFEL on benefit ratio unlocking		1		-		1		-		(1)	NM
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		-		-		-		-	-100.0%
	Adjusted operating revenues	$	3,578	$	3,629	$	3,607	$	3,775	$	3,645	1.9%
	Net Income
	Net income (loss)	$	435	$	411	$	418	$	816	$	367	-15.6%
	Less:
	Excluded realized gain (loss)		(52)		(34)		(63)		(69)		(28)	46.2%
	Benefit ratio unlocking		45		26		30		28		(10)	NM
	Net impact from the Tax Cuts and Jobs Act		-		-		-		1,322		(13)	NM
	Impairment of intangibles		-		-		-		(905)		-	NM
	Acquisition and integration costs related to mergers and acquisitions, after-tax		-		-		-		-		(4)	NM
	Gain (loss) on early extinguishment of debt		-		-		(3)		-		(19)	NM
	Adjusted income (loss) from operations	$	442	$	419	$	454	$	440	$	441	-0.2%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	1.89	$	1.81	$	1.87	$	3.67	$	1.64	-13.2%
	Less:
	Excluded realized gain (loss)		(0.22)		(0.16)		(0.28)		(0.31)		(0.13)	40.9%
	Benefit ratio unlocking		0.19		0.12		0.13		0.13		(0.04)	NM
	Net impact from the Tax Cuts and Jobs Act		-		-		-		5.96		(0.06)	NM
	Impairment of intangibles		-		-		-		(4.08)		-	NM
	Acquisition and integration costs related to mergers and acquisitions, after-tax		-		-		-		-		(0.02)	NM
	Gain (loss) on early extinguishment of debt		-		-		(0.01)		-		(0.08)	NM
	Adjustment attributable to using different average
	diluted shares for adjusted income from operations
	as compared to net income		-		-		-		(0.01)		-	NM
	Adjusted income (loss) from operations	$	1.92	$	1.85	$	2.03	$	1.98	$	1.97	2.6%
Page 24