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					212-325-5069
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
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	Elyse Greenspan					212-214-8031
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 October 30, 2019
						Standard
		A.M Best	Fitch	Moody's		& Poor's
Senior Debt Ratings		a-	BBB+	Baa1		A-
Financial Strength Ratings
The 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-
Liberty Life Assurance Company of Boston		A				AA-
Investor Inquiries May Be Directed To:
Chris Giovanni, Senior Vice President, Investor Relations
Email:  Christopher.Giovanni@lfg.com
Phone:  484-583-1793
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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:

• Annuities and Retirement Plan Services – deposits from new and existing customers;

•  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; 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.

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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.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• 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 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 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 options”); and

▪ 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, as applicable:

• 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.

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Lincoln Financial Group

Notes

Management believes that the non-GAAP performance measures previously discussed 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 interest rate spreads for the Life Insurance segment have been restated to conform to the current year presentation.

Due to reporting a net loss for the three months ended September 30, 2019, basic shares were used in the diluted earnings per share calculation for that period as the use of diluted shares would have

resulted in a lower loss per share.

Statistical Supplement is Dated

The financial data in this document is dated October 30, 2019, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

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Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Revenues
Insurance premiums	$	1,323	$	1,336	$	1,446	$	1,398	$	1,325	0.2%	$	3,265	$	4,170	27.7%
Fee income		1,550		1,511		1,475		1,517		1,934	24.8%		4,475		4,925	10.1%
Net investment income		1,271		1,349		1,251		1,355		1,235	-2.8%		3,736		3,842	2.8%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(2)		(2)		(8)		(4)		(2)	0.0%		(5)		(14)	NM
Realized gain (loss), excluding OTTI		(53)		193		(354)		(113)		(9)	79.2%		(46)		(477)	NM
Total realized gain (loss)		(55)		191		(362)		(117)		(11)	80.0%		(51)		(491)	NM
Amortization of deferred gains on business
sold through reinsurance		-		8		8		8		8	NM		1		23	NM
Other revenues		175		136		147		149		147	-16.0%		467		444	-4.9%
Total revenues		4,264		4,531		3,965		4,310		4,638	8.8%		11,893		12,913	8.6%
Expenses
Interest credited		652		663		678		680		705	8.1%		1,954		2,063	5.6%
Benefits		1,626		2,142		1,757		1,852		2,502	53.9%		4,644		6,112	31.6%
Commissions and other expenses		1,367		1,162		1,176		1,272		1,552	13.5%		3,600		3,999	11.1%
Interest and debt expense		69		69		71		70		113	63.8%		228		254	11.4%
Strategic digitization expense		18		28		15		15		16	-11.1%		49		47	-4.1%
Total expenses		3,732		4,064		3,697		3,889		4,888	31.0%		10,475		12,475	19.1%
Income (loss) before taxes		532		467		268		421		(250)	NM		1,418		438	-69.1%
Federal income tax expense (benefit)		42		68		16		58		(89)	NM		176		(16)	NM
Net income (loss)		490		399		252		363		(161)	NM		1,242		454	-63.4%
Adjustment for LNC stock units in our
deferred compensation plans		-		(12)		-		-		(3)	NM		(6)		-	100.0%
Net income (loss) available to common
stockholders – diluted	$	490	$	387	$	252	$	363	$	(164)	NM	$	1,236	$	454	-63.3%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	2.24	$	1.80	$	1.22	$	1.79	$	(0.83)	NM	$	5.59	$	2.24	-59.9%
ROE, including AOCI
Net income (loss)		13.0%		10.9%		6.6%		8.3%		-3.4%			10.5%		3.5%
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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities:
Corporate bonds	$	80,080	$	80,348	$	83,208	$	84,790	$	87,910	9.8%
U.S. government bonds		409		417		423		430		438	7.1%
State and municipal bonds		5,218		5,345		5,569		5,669		5,800	11.2%
Foreign government bonds		459		448		453		440		444	-3.3%
Residential mortgage-backed securities		3,287		3,373		3,414		3,292		3,287	0.0%
Commercial mortgage-backed securities		748		804		885		965		1,033	38.1%
Asset-backed securities		2,347		2,696		3,484		3,542		4,172	77.8%
Hybrid and redeemable preferred securities		613		593		614		605		575	-6.2%
Total fixed maturity AFS securities		93,161		94,024		98,050		99,733		103,659	11.3%
Trading securities		1,440		1,950		3,314		4,522		4,691	225.8%
Equity securities		112		99		153		196		158	41.1%
Mortgage loans on real estate		12,561		13,260		13,997		15,090		15,947	27.0%
Policy loans		2,490		2,509		2,498		2,484		2,475	-0.6%
Derivative investments		706		1,107		981		1,510		2,201	211.8%
Other investments		2,216		2,267		2,752		2,845		3,389	52.9%
Total investments		112,686		115,216		121,745		126,380		132,520	17.6%
Cash and invested cash		1,460		2,345		1,593		3,314		2,939	101.3%
DAC and VOBA		10,014		10,264		9,441		8,588		7,492	-25.2%
Premiums and fees receivable		592		570		607		553		440	-25.7%
Accrued investment income		1,168		1,119		1,184		1,146		1,182	1.2%
Reinsurance recoverables		18,271		17,748		17,660		17,481		17,353	-5.0%
Funds withheld reinsurance assets		566		557		549		548		543	-4.1%
Goodwill		1,757		1,782		1,778		1,778		1,778	1.2%
Other assets		9,644		15,713		16,373		16,196		15,939	65.3%
Separate account assets		147,692		132,833		143,369		146,275		145,092	-1.8%
Total assets	$	303,850	$	298,147	$	314,299	$	322,259	$	325,278	7.1%
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Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	33,988	$	34,648	$	34,009	$	34,890	$	36,108	6.2%
Other contract holder funds		89,906		91,233		93,959		94,947		95,283	6.0%
Short-term debt		-		-		300		300		300	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		865		866		866		866		866	0.1%
Financial		4,939		4,973		4,706		4,755		5,204	5.4%
Reinsurance related embedded derivatives		20		3		177		310		339	NM
Funds withheld reinsurance liabilities		1,733		1,740		1,762		1,796		1,817	4.8%
Payables for collateral on investments		4,212		4,805		5,362		5,632		5,528	31.2%
Other liabilities		5,425		12,696		13,372		14,033		14,742	171.7%
Separate account liabilities		147,692		132,833		143,369		146,275		145,092	-1.8%
Total liabilities		288,780		283,797		297,882		303,804		305,279	5.7%
Stockholders’ Equity
Common stock		5,619		5,392		5,285		5,241		5,192	-7.6%
Retained earnings		8,615		8,551		8,679		8,878		8,559	-0.7%
AOCI:
Unrealized investment gains (losses)		1,138		729		2,773		4,658		6,572	NM
Foreign currency translation adjustment		(20)		(23)		(20)		(24)		(29)	-45.0%
Funded status of employee benefit plans		(282)		(299)		(300)		(298)		(295)	-4.6%
Total AOCI		836		407		2,453		4,336		6,248	NM
Total stockholders’ equity		15,070		14,350		16,417		18,455		19,999	32.7%
Total liabilities and stockholders’ equity	$	303,850	$	298,147	$	314,299	$	322,259	$	325,278	7.1%
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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											As of or For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss)
Net income (loss)	$	490	$	399	$	252	$	363	$	(161)	NM	$	1,242	$	454	-63.4%
Pre-tax adjusted income (loss) from operations		599		563		507		566		(104)	NM		1,650		969	-41.3%
After-tax adjusted income (loss) from operations (1)		510		475		441		478		(46)	NM		1,405		873	-37.9%
Adjusted operating tax rate		14.9%		15.6%		13.0%		15.5%		55.8%			14.8%		9.9%
Average Stockholders’ Equity
Average equity, including AOCI	$	15,124	$	14,710	$	15,384	$	17,436	$	19,227	27.1%	$	15,786	$	17,349	9.9%
Average AOCI		1,019		622		1,430		3,394		5,292	NM		1,929		3,372	74.8%
Average equity, excluding AOCI	$	14,105	$	14,088	$	13,954	$	14,042	$	13,935	-1.2%	$	13,857	$	13,977	0.9%
ROE, excluding AOCI
Net income (loss)		13.9%		11.3%		7.2%		10.4%		-4.6%			12.0%		4.3%
Adjusted income (loss) from operations		14.5%		13.5%		12.6%		13.6%		-1.3%			13.5%		8.3%
Per Share
Net income (loss) (diluted)	$	2.24	$	1.80	$	1.22	$	1.79	$	(0.83)	NM	$	5.59	$	2.24	-59.9%
Adjusted income (loss) from operations (diluted)		2.34		2.15		2.14		2.36		(0.25)	NM		6.33		4.30	-32.1%
Dividends declared during the period		0.33		0.37		0.37		0.37		0.37	12.1%		0.99		1.11	12.1%
Book value, including AOCI	$	70.17	$	69.71	$	80.88	$	91.92	$	100.84	43.7%	$	70.17	$	100.84	43.7%
Per share impact of AOCI		3.90		1.98		12.09		21.60		31.51	NM		3.90		31.51	NM
Book value, excluding AOCI	$	66.27	$	67.73	$	68.79	$	70.32	$	69.33	4.6%	$	66.27	$	69.33	4.6%
Shares
Repurchased during the period		2.7		9.1		3.9		2.3		2.5	-7.4%		4.1		8.7	112.2%
End-of-period – basic		214.8		205.9		203.0		200.8		198.3	-7.7%		214.8		198.3	-7.7%
End-of-period – diluted		217.4		209.0		204.2		202.2		200.7	-7.7%		217.4		200.7	-7.7%
Average for the period – diluted		218.5		215.0		206.0		202.9		201.6	-7.7%		221.1		203.1	-8.1%
(1) See reconciliation to net income (loss) on page 24.
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Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Cash Returned to Common Stockholders
Shares repurchased	$	175	$	535	$	240	$	150	$	150	-14.3%	$	275	$	540	96.4%
Common dividends		72		70		76		75		74	2.8%		216		225	4.2%
Total cash returned to common stockholders	$	247	$	605	$	316	$	225	$	224	-9.3%	$	491	$	765	55.8%
Leverage Ratio
Short-term debt	$	-	$	-	$	300	$	300	$	300	NM
Long-term debt		5,804		5,839		5,572		5,621		6,070	4.6%
Total debt (1)		5,804		5,839		5,872		5,921		6,370	9.8%
Less:
Operating debt (2)		865		866		866		866		866	0.1%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		155		189		222		270		331	113.5%
Total numerator	$	4,482	$	4,482	$	4,482	$	4,483	$	4,871	8.7%
Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,932	$	13,621	$	13,644	$	13,797	$	13,427	-3.6%
Add:  25% of capital securities		302		302		302		302		302	0.0%
Total numerator		4,482		4,482		4,482		4,483		4,871	8.7%
Total denominator	$	18,716	$	18,405	$	18,428	$	18,582	$	18,600	-0.6%
Leverage ratio		23.9%		24.4%		24.3%		24.1%		26.2%
Holding Company Available Liquidity	$	465	$	465	$	481	$	474	$	765	64.5%
(1) Excludes obligations under finance leases and certain financing arrangements of $413 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.
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Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	350	$	300	$	287	$	309	$	185	-47.1%	$	985	$	781	-20.7%
Retirement Plan Services		47		54		43		49		49	4.3%		146		141	-3.4%
Life Insurance		217		218		195		207		(318)	NM		574		85	-85.2%
Group Protection		79		64		70		86		78	-1.3%		173		233	34.7%
Other Operations		(94)		(73)		(88)		(85)		(98)	-4.3%		(228)		(271)	-18.9%
Adjusted income (loss) from operations, before
income taxes	$	599	$	563	$	507	$	566	$	(104)	NM	$	1,650	$	969	-41.3%
Income (Loss) from Operations, After-Tax
Annuities	$	302	$	258	$	250	$	266	$	169	-44.0%	$	844	$	686	-18.7%
Retirement Plan Services		40		45		39		42		44	10.0%		125		125	0.0%
Life Insurance		176		175		157		168		(245)	NM		470		79	-83.2%
Group Protection		63		50		55		68		61	-3.2%		137		184	34.3%
Other Operations		(71)		(53)		(60)		(66)		(75)	-5.6%		(171)		(201)	-17.5%
Adjusted income (loss) from operations	$	510	$	475	$	441	$	478	$	(46)	NM	$	1,405	$	873	-37.9%
	For the Three Months Ended											For the Trailing Twelve Months
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Sources of Earnings, Pre-Tax
Investment spread	$	169	$	161	$	151	$	164	$	(126)	NM	$	705	$	351	-50.2%
Mortality/morbidity		198		182		179		196		(119)	NM		645		438	-32.1%
Fees on AUM		264		274		243		269		262	-0.8%		1,017		1,044	2.7%
VA riders		62		19		22		22		(23)	NM		157		40	-74.5%
Total sources of earnings, before income taxes		693		636		595		651		(6)	NM		2,524		1,873	-25.8%
Other Operations		(94)		(73)		(88)		(85)		(98)	-4.3%		(292)		(343)	-17.5%
Adjusted income (loss) from operations, before
income taxes	$	599	$	563	$	507	$	566	$	(104)	NM	$	2,232	$	1,532	-31.4%
Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		24.4%		25.4%		25.5%		25.2%		1829.1%			27.9%		18.7%
Mortality/morbidity		28.5%		28.5%		30.1%		30.2%		1720.6%			25.6%		23.4%
Fees on AUM		38.2%		43.0%		40.7%		41.1%		-3785.1%			40.3%		55.8%
VA riders		8.9%		3.1%		3.7%		3.5%		335.4%			6.2%		2.1%
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 Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Annuities
Operating revenues	$	1,118	$	1,086	$	1,174	$	1,156	$	1,117	-0.1%	$	3,297	$	3,447	4.5%
Deposits		3,080		3,774		3,508		3,654		3,461	12.4%		8,589		10,623	23.7%
Net flows		(81)		675		492		377		253	NM		(814)		1,122	237.8%
Average account values		138,639		124,869		127,185		131,675		133,922	-3.4%		137,915		130,941	-5.1%
Retirement Plan Services
Operating revenues	$	294	$	300	$	293	$	299	$	298	1.4%	$	878	$	890	1.4%
Deposits		3,328		2,163		2,496		2,073		2,234	-32.9%		7,905		6,803	-13.9%
Net flows		1,411		173		(381)		307		272	-80.7%		2,373		199	-91.6%
Average account values		71,293		69,518		69,977		72,612		74,201	4.1%		69,477		72,166	3.9%
Life Insurance
Operating revenues	$	1,766	$	1,815	$	1,700	$	1,802	$	2,098	18.8%	$	5,106	$	5,600	9.7%
Deposits		1,523		1,863		1,537		1,683		1,685	10.6%		4,575		4,907	7.3%
Net flows		1,080		1,439		1,020		1,217		1,227	13.6%		3,240		3,464	6.9%
Average account values		50,201		50,088		50,355		51,495		52,050	3.7%		49,638		51,300	3.3%
Average in-force face amount		733,216		740,047		753,441		772,231		790,667	7.8%		727,793		772,113	6.1%
Group Protection
Operating revenues	$	1,128	$	1,139	$	1,138	$	1,155	$	1,137	0.8%	$	2,618	$	3,430	31.0%
Insurance premiums		1,011		1,018		1,023		1,032		1,024	1.3%		2,366		3,079	30.1%
Consolidated
Adjusted operating revenues (1)	$	4,362	$	4,394	$	4,362	$	4,470	$	4,700	7.7%	$	12,081	$	13,533	12.0%
Deposits		7,931		7,800		7,541		7,410		7,380	-6.9%		21,069		22,333	6.0%
Net flows		2,410		2,287		1,131		1,901		1,752	-27.3%		4,799		4,785	-0.3%
Average account values		260,133		244,475		247,517		255,782		260,173	0.0%		257,030		254,407	-1.0%
(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											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Sales
Annuities:
With guaranteed living benefits	$	1,416	$	1,347	$	1,060	$	1,241	$	1,243	-12.2%	$	4,361	$	3,543	-18.8%
Without guaranteed living benefits		774		1,122		864		1,115		1,191	53.9%		1,958		3,171	62.0%
Variable		2,190		2,469		1,924		2,356		2,434	11.1%		6,319		6,714	6.3%
Fixed		890		1,305		1,584		1,298		1,027	15.4%		2,270		3,909	72.2%
Total Annuities	$	3,080	$	3,774	$	3,508	$	3,654	$	3,461	12.4%	$	8,589	$	10,623	23.7%
Retirement Plan Services:
First-year sales	$	1,977	$	835	$	829	$	610	$	723	-63.4%	$	3,618	$	2,161	-40.3%
Recurring deposits		1,351		1,328		1,667		1,463		1,511	11.8%		4,287		4,642	8.3%
Total Retirement Plan Services	$	3,328	$	2,163	$	2,496	$	2,073	$	2,234	-32.9%	$	7,905	$	6,803	-13.9%
Life Insurance:
UL	$	9	$	14	$	11	$	15	$	11	22.2%	$	29	$	37	27.6%
MoneyGuard®		53		58		51		56		67	26.4%		168		174	3.6%
IUL		13		22		16		25		37	184.6%		41		79	92.7%
VUL		62		103		52		53		54	-12.9%		164		159	-3.0%
Term		26		33		30		37		37	42.3%		80		105	31.3%
Total individual life insurance		163		230		160		186		206	26.4%		482		554	14.9%
Executive Benefits		4		32		31		24		28	NM		20		81	NM
Total Life Insurance	$	167	$	262	$	191	$	210	$	234	40.1%	$	502	$	635	26.5%
Group Protection:
Life	$	69	$	100	$	64	$	42	$	131	89.9%	$	122	$	237	94.3%
Disability		73		123		42		40		96	31.5%		134		179	33.6%
Dental		16		49		13		13		15	-6.3%		52		40	-23.1%
Total Group Protection	$	158	$	272	$	119	$	95	$	242	53.2%	$	308	$	456	48.1%
Percent employee-paid		40.0%		42.1%		52.6%		45.8%		41.5%			42.3%		45.3%
Page 9

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Operating Revenues
Annuities	$	1,118	$	1,086	$	1,174	$	1,156	$	1,117	-0.1%	$	3,297	$	3,447	4.5%
Retirement Plan Services		294		300		293		299		298	1.4%		878		890	1.4%
Life Insurance		1,766		1,815		1,700		1,802		2,098	18.8%		5,106		5,600	9.7%
Group Protection		1,128		1,139		1,138		1,155		1,137	0.8%		2,618		3,430	31.0%
Other Operations		56		54		57		58		50	-10.7%		182		166	-8.8%
Total adjusted operating revenues	$	4,362	$	4,394	$	4,362	$	4,470	$	4,700	7.7%	$	12,081	$	13,533	12.0%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		116	$	120	$	117	$	126	$	118	1.7%	$	343	$	361	5.2%
Retirement Plan Services		75		78		75		76		73	-2.7%		226		223	-1.3%
Life Insurance		119		121		121		131		123	3.4%		350		376	7.4%
Group Protection		174		166		156		167		162	-6.9%		392		486	24.0%
Other Operations		34		33		40		37		25	-26.5%		91		103	13.2%
Total	$	518	$	518	$	509	$	537	$	501	-3.3%	$	1,402	$	1,549	10.5%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.4%		11.1%		10.0%		10.9%		10.6%			10.4%		10.5%
Retirement Plan Services		25.6%		25.8%		25.5%		25.4%		24.6%			25.8%		25.1%
Life Insurance		6.8%		6.7%		7.1%		7.3%		5.9%			6.9%		6.7%
Group Protection		15.3%		14.6%		13.7%		14.4%		14.1%			15.0%		14.1%
Other Operations		59.9%		59.8%		69.9%		64.3%		49.6%			50.2%		61.7%
Total		11.9%		11.8%		11.7%		12.0%		10.7%			11.6%		11.4%
(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											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	572	$	591	$	563	$	593	$	569	-0.5%	$	1,546	$	1,727	11.7%
Commissions		650		737		649		689		707	8.8%		1,869		2,045	9.4%
Taxes, licenses and fees		82		80		100		74		86	4.9%		240		260	8.3%
Interest and debt expense		69		69		71		70		71	2.9%		205		212	3.4%
Expenses associated with reserve financing
and unrelated letters of credit		21		22		22		22		22	4.8%		62		65	4.8%
Total adjusted operating commissions and other
expenses incurred		1,394		1,499		1,405		1,448		1,455	4.4%		3,922		4,309	9.9%
Less Amounts Capitalized
General and administrative expenses		(54)		(73)		(54)		(56)		(68)	-25.9%		(144)		(178)	-23.6%
Commissions		(313)		(406)		(326)		(348)		(374)	-19.5%		(894)		(1,046)	-17.0%
Taxes, licenses and fees		(9)		(59)		(15)		(15)		(14)	-55.6%		(29)		(42)	-44.8%
Total amounts capitalized		(376)		(538)		(395)		(419)		(456)	-21.3%		(1,067)		(1,266)	-18.7%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,018		961		1,010		1,029		999	-1.9%		2,855		3,043	6.6%
Amortization
Amortization of DAC, VOBA and other intangibles		420		308		209		280		601	43.1%		942		1,088	15.5%
Total adjusted operating commissions and
other expenses	$	1,438	$	1,269	$	1,219	$	1,309	$	1,600	11.3%	$	3,797	$	4,131	8.8%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Annuities
Earned rate on reserves		3.89%		3.92%		3.97%		4.09%		4.04%	15		3.86%		4.03%	17
Variable investment income on reserves (1)		0.13%		0.07%		0.05%		0.09%		0.09%	(4)		0.11%		0.08%	(3)
Net investment income yield on reserves		4.02%		3.99%		4.02%		4.18%		4.13%	11		3.97%		4.11%	14
Interest rate credited to contract holders		2.24%		2.31%		2.41%		2.35%		2.46%	22		2.26%		2.40%	14
Interest rate spread		1.78%		1.68%		1.61%		1.83%		1.67%	(11)		1.71%		1.71%	-
Base spreads excluding variable investment income		1.65%		1.61%		1.56%		1.74%		1.58%	(7)		1.60%		1.63%	3
Retirement Plan Services
Earned rate on reserves		4.19%		4.20%		4.18%		4.13%		4.13%	(6)		4.24%		4.15%	(9)
Variable investment income on reserves (1)		0.10%		0.06%		0.05%		0.07%		0.16%	6		0.11%		0.09%	(2)
Net investment income yield on reserves		4.29%		4.26%		4.23%		4.20%		4.29%	-		4.35%		4.24%	(11)
Interest rate credited to contract holders		2.90%		2.89%		2.92%		2.90%		2.90%	-		2.90%		2.91%	1
Interest rate spread		1.39%		1.37%		1.31%		1.30%		1.39%	-		1.45%		1.33%	(12)
Base spreads excluding variable investment income		1.29%		1.31%		1.26%		1.23%		1.23%	(6)		1.34%		1.24%	(10)
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.85%		4.92%		4.85%		4.87%		4.86%	1		4.93%		4.86%	(7)
Variable investment income on reserves (1)		0.38%		0.61%		0.06%		0.46%		-0.38%	(76)		0.27%		0.04%	(23)
Net investment income yield on reserves		5.23%		5.53%		4.91%		5.33%		4.48%	(75)		5.20%		4.90%	(30)
Interest rate credited to contract holders		3.72%		3.73%		3.69%		3.68%		3.71%	(1)		3.72%		3.69%	(3)
Interest rate spread		1.51%		1.80%		1.22%		1.65%		0.77%	(74)		1.48%		1.21%	(27)
Base spreads excluding variable investment income		1.13%		1.19%		1.16%		1.19%		1.15%	2		1.21%		1.17%	(4)
Total (2)
Earned rate (3)		4.37%		4.43%		4.33%		4.35%		4.39%	2		4.45%		4.36%	(9)
Variable investment income (1) (3)		0.29%		0.43%		0.06%		0.32%		-0.19%	(48)		0.22%		0.06%	(16)
Net investment income yield (3)		4.66%		4.86%		4.39%		4.67%		4.20%	(46)		4.67%		4.42%	(25)
(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											As of or For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	102	$	108	$	208	$	137	$	79	-22.5%	$	282	$	424	50.4%
Fee income		598		571		568		586		596	-0.3%		1,771		1,751	-1.1%
Net investment income		251		261		257		286		287	14.3%		743		831	11.8%
Operating realized gain (loss)		46		50		41		46		51	10.9%		142		137	-3.5%
Amortization of deferred gain		-		8		8		8		8	NM		-		23	NM
Other revenues		121		88		92		93		96	-20.7%		359		281	-21.7%
Total operating revenues		1,118		1,086		1,174		1,156		1,117	-0.1%		3,297		3,447	4.5%
Operating expenses:
Interest credited		145		150		162		163		183	26.2%		437		508	16.2%
Benefits		149		196		284		219		273	83.2%		477		775	62.5%
Commissions incurred		278		291		268		287		295	6.1%		787		850	8.0%
Other expenses incurred		233		241		230		244		240	3.0%		687		717	4.4%
Amounts capitalized		(147)		(176)		(147)		(161)		(175)	-19.0%		(401)		(484)	-20.7%
Amortization		110		84		90		95		116	5.5%		325		300	-7.7%
Total operating expenses		768		786		887		847		932	21.4%		2,312		2,666	15.3%
Income (loss) from operations before taxes		350		300		287		309		185	-47.1%		985		781	-20.7%
Federal income tax expense (benefit)		48		42		37		43		16	-66.7%		141		95	-32.6%
Income (loss) from operations	$	302	$	258	$	250	$	266	$	169	-44.0%	$	844	$	686	-18.7%
Effective Federal Income Tax Rate		13.6%		13.8%		12.8%		13.9%		8.4%			14.3%		12.2%
Average Equity, Excluding Goodwill and AOCI	$	5,045	$	5,000	$	4,785	$	4,741	$	4,846	-3.9%	$	5,001	$	4,791	-4.2%
ROE, Excluding Goodwill and AOCI		23.9%		20.7%		20.9%		22.5%		14.0%			22.5%		19.1%
Return on Average Account Values		87		83		79		81		51	(36)		82		70	(12)
Income (Loss) from Operations
Variable annuity		264		232		214		232		198	-25.0%		708		645	-8.9%
Fixed annuity		38		26		36		34		(29)	NM		136		41	-69.9%
Account Values
Variable annuity account values:
Average	$	118,838	$	112,615	$	113,785	$	117,254	$	118,680	-0.1%	$	118,271	$	116,593	-1.4%
End-of-period		119,430		108,536		116,514		119,005		118,424	-0.8%		119,430		118,424	-0.8%
Fixed annuity account values:
Average		19,801		12,254		13,400		14,421		15,242	-23.0%		19,644		14,348	-27.0%
End-of-period		19,855		12,743		13,944		14,839		15,611	-21.4%		19,855		15,611	-21.4%
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											As of or For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	65	$	62	$	61	$	62	$	63	-3.1%	$	194	$	187	-3.6%
Net investment income		223		232		226		231		229	2.7%		668		686	2.7%
Other revenues		6		6		6		6		6	0.0%		16		17	6.3%
Total operating revenues		294		300		293		299		298	1.4%		878		890	1.4%
Operating expenses:
Interest credited		140		142		145		145		147	5.0%		414		437	5.6%
Benefits		-		-		-		1		1	NM		1		1	0.0%
Commissions incurred		20		18		19		19		20	0.0%		60		60	0.0%
Other expenses incurred		83		86		85		83		80	-3.6%		250		248	-0.8%
Amounts capitalized		(5)		(6)		(5)		(5)		(5)	0.0%		(15)		(15)	0.0%
Amortization		9		6		6		7		6	-33.3%		22		18	-18.2%
Total operating expenses		247		246		250		250		249	0.8%		732		749	2.3%
Income (loss) from operations before taxes		47		54		43		49		49	4.3%		146		141	-3.4%
Federal income tax expense (benefit)		7		9		4		7		5	-28.6%		21		16	-23.8%
Income (loss) from operations	$	40	$	45	$	39	$	42	$	44	10.0%	$	125	$	125	0.0%
Effective Federal Income Tax Rate		15.9%		15.9%		8.5%		14.3%		9.3%			14.1%		10.8%
Average Equity, Excluding Goodwill and AOCI	$	1,316	$	1,356	$	1,402	$	1,429	$	1,447	10.0%	$	1,310	$	1,426	8.9%
ROE, Excluding Goodwill and AOCI		12.1%		13.3%		11.2%		11.7%		12.2%			12.8%		11.7%
Pre-tax Net Margin		30.7%		34.0%		29.1%		31.7%		32.4%			31.5%		31.1%
Return on Average Account Values		22		26		22		23		24	2		24		23	(1)
Net Flows by Market
Small Market		110		248		189		25		117	6.4%	$	42	$	330	NM
Mid - Large Market		1,573		264		(283)		532		436	-72.3%		3,137		685	-78.2%
Multi-Fund® and Other		(272)		(339)		(287)		(250)		(281)	-3.3%		(806)		(816)	-1.2%
Net Flows – Trailing Twelve Months	$	2,813	$	2,546	$	1,702	$	1,510	$	371	-86.8%	$	2,813	$	371	-86.8%
Page 14

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 Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	205	$	210	$	213	$	224	$	219	6.8%	$	606	$	656	8.3%
Fee income		886		881		844		868		1,275	43.9%		2,510		2,985	18.9%
Net investment income		671		719		643		707		601	-10.4%		1,979		1,952	-1.4%
Operating realized gain (loss)		(3)		-		(3)		(2)		(1)	66.7%		(5)		(5)	0.0%
Other revenues		7		5		3		5		4	-42.9%		16		12	-25.0%
Total operating revenues		1,766		1,815		1,700		1,802		2,098	18.8%		5,106		5,600	9.7%
Operating expenses:
Interest credited		352		357		354		355		360	2.3%		1,057		1,069	1.1%
Benefits		742		913		902		913		1,426	92.2%		2,431		3,240	33.3%
Commissions incurred		173		241		186		197		212	22.5%		519		595	14.6%
Other expenses incurred		202		210		212		214		215	6.4%		600		640	6.7%
Amounts capitalized		(199)		(318)		(220)		(232)		(246)	-23.6%		(596)		(697)	-16.9%
Amortization		279		194		71		148		449	60.9%		521		668	28.2%
Total operating expenses		1,549		1,597		1,505		1,595		2,416	56.0%		4,532		5,515	21.7%
Income (loss) from operations before taxes		217		218		195		207		(318)	NM		574		85	-85.2%
Federal income tax expense (benefit)		41		43		38		39		(73)	NM		104		6	-94.2%
Income (loss) from operations	$	176	$	175	$	157	$	168	$	(245)	NM	$	470	$	79	-83.2%
Effective Federal Income Tax Rate		18.7%		19.8%		19.6%		19.1%		22.9%			18.0%		6.0%
Average Equity, Excluding Goodwill and AOCI	$	8,047	$	8,147	$	8,399	$	8,697	$	8,601	6.9%	$	7,942	$	8,566	7.9%
ROE, Excluding Goodwill and AOCI		8.8%		8.6%		7.5%		7.7%		-11.4%			7.9%		1.2%
Average Account Values	$	50,201	$	50,088	$	50,355	$	51,495	$	52,050	3.7%	$	49,638	$	51,300	3.3%
In-Force Face Amount
UL and other	$	342,455	$	343,922	$	346,292	$	347,674	$	348,836	1.9%	$	342,455	$	348,836	1.9%
Term insurance		393,839		399,877		416,789		433,706		451,117	14.5%		393,839		451,117	14.5%
Total in-force face amount	$	736,294	$	743,799	$	763,081	$	781,380	$	799,953	8.6%	$	736,294	$	799,953	8.6%
Page 15

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,011	$	1,018	$	1,023	$	1,032	$	1,024	1.3%	$	2,366	$	3,079	30.1%
Net investment income		76		80		74		81		72	-5.3%		179		226	26.3%
Other revenues		41		41		41		42		41	0.0%		73		125	71.2%
Total operating revenues		1,128		1,139		1,138		1,155		1,137	0.8%		2,618		3,430	31.0%
Operating expenses:
Interest credited		1		2		1		1		2	100.0%		3		4	33.3%
Benefits		744		769		753		758		756	1.6%		1,686		2,267	34.5%
Commissions incurred		89		101		92		92		88	-1.1%		238		272	14.3%
Other expenses incurred		218		218		203		208		212	-2.8%		499		624	25.1%
Amounts capitalized		(25)		(39)		(23)		(20)		(29)	-16.0%		(55)		(72)	-30.9%
Amortization		22		24		42		30		30	36.4%		74		102	37.8%
Total operating expenses		1,049		1,075		1,068		1,069		1,059	1.0%		2,445		3,197	30.8%
Income (loss) from operations before taxes		79		64		70		86		78	-1.3%		173		233	34.7%
Federal income tax expense (benefit)		16		14		15		18		17	6.3%		36		49	36.1%
Income (loss) from operations	$	63	$	50	$	55	$	68	$	61	-3.2%	$	137	$	184	34.3%
Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%			21.0%		21.0%
Average Equity, Excluding Goodwill and AOCI	$	2,105	$	2,082	$	2,165	$	2,360	$	2,492	18.4%	$	1,605	$	2,339	45.7%
ROE, Excluding Goodwill and AOCI		11.9%		9.6%		10.1%		11.5%		9.9%			11.4%		10.5%
Loss Ratios by Product Line
Life		70.6%		70.8%		71.4%		71.2%		70.5%			68.0%		71.0%
Disability		75.8%		79.6%		75.4%		74.9%		76.4%			73.5%		75.6%
Dental		72.2%		70.6%		72.2%		75.0%		73.4%			73.4%		73.5%
Total		73.6%		75.8%		73.7%		73.6%		74.1%			71.4%		73.8%
Page 16

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Other Operations
Operating revenues:
Insurance premiums	$	4	$	-	$	2	$	5	$	3	-25.0%	$	12	$	10	-16.7%
Net investment income		50		57		51		50		46	-8.0%		167		147	-12.0%
Amortization of deferred gain on
business sold through reinsurance		-		-		-		-		-	NM		1		-	-100.0%
Other revenues		2		(3)		4		3		1	-50.0%		2		9	NM
Total operating revenues		56		54		57		58		50	-10.7%		182		166	-8.8%
Operating expenses:
Interest credited		14		13		15		15		14	0.0%		43		44	2.3%
Benefits		38		20		20		25		42	10.5%		85		88	3.5%
Commissions and other expenses		11		(3)		24		18		5	-54.5%		28		46	64.3%
Interest and debt expenses		69		69		71		70		71	2.9%		205		212	3.4%
Strategic digitization expense		18		28		15		15		16	-11.1%		49		47	-4.1%
Total operating expenses		150		127		145		143		148	-1.3%		410		437	6.6%
Income (loss) from operations before taxes		(94)		(73)		(88)		(85)		(98)	-4.3%		(228)		(271)	-18.9%
Federal income tax expense (benefit)		(23)		(20)		(28)		(19)		(23)	0.0%		(57)		(70)	-22.8%
Income (loss) from operations	$	(71)	$	(53)	$	(60)	$	(66)	$	(75)	-5.6%	$	(171)	$	(201)	-17.5%
Page 17

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	10,162	$	10,278	$	10,512	$	9,689	$	8,832	-13.1%	$	8,641	$	10,512	21.7%
Deferrals		387		550		406		427		459	18.6%		1,103		1,291	17.0%
Operating amortization		(424)		(311)		(209)		(279)		(604)	-42.5%		(959)		(1,092)	-13.9%
Deferrals, net of operating amortization		(37)		239		197		148		(145)	NM		144		199	38.2%
Amortization associated with benefit ratio unlocking		(5)		36		(25)		(7)		3	160.0%		1		(29)	NM
Business acquired		-		-		-		-		-	NM		30		-	-100.0%
Business sold through reinsurance		-		(278)		-		-		-	NM		-		-	NM
Adjustment related to realized gains (losses)		-		(38)		31		11		(9)	NM		(12)		33	NM
Adjustment related to unrealized gains (losses)		158		275		(1,026)		(1,009)		(950)	NM		1,474		(2,984)	NM
Balance as of end-of-period	$	10,278	$	10,512	$	9,689	$	8,832	$	7,731	-24.8%	$	10,278	$	7,731	-24.8%
DFEL
Balance as of beginning-of-period	$	2,294	$	2,442	$	2,769	$	2,203	$	1,647	-28.2%	$	1,445	$	2,769	91.6%
Deferrals		214		251		217		245		264	23.4%		624		732	17.3%
Operating amortization		(165)		(146)		(112)		(142)		(547)	NM		(393)		(803)	NM
Deferrals, net of operating amortization		49		105		105		103		(283)	NM		231		(71)	NM
Amortization associated with benefit ratio unlocking		(1)		4		(3)		(1)		-	100.0%		-		(5)	NM
Adjustment related to realized (gains) losses		(3)		(10)		3		(3)		(3)	0.0%		(11)		(4)	63.6%
Adjustment related to unrealized (gains) losses		103		228		(671)		(655)		(879)	NM		777		(2,207)	NM
Balance as of end-of-period	$	2,442	$	2,769	$	2,203	$	1,647	$	482	-80.3%	$	2,442	$	482	-80.3%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	6,190	$	6,117	$	5,914	$	5,676	$	5,727	-7.5%	$	6,190	$	5,727	-7.5%
Page 18

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Fixed Annuities
Balance as of beginning-of-period	$	20,722	$	21,116	$	21,666	$	22,941	$	23,836	15.0%	$	20,305	$	21,666	6.7%
Gross deposits		890		1,305		1,584		1,298		1,027	15.4%		2,270		3,909	72.2%
Full surrenders and deaths		(555)		(501)		(469)		(501)		(441)	20.5%		(1,445)		(1,411)	2.4%
Other contract benefits		(161)		(186)		(151)		(135)		(145)	9.9%		(469)		(431)	8.1%
Net flows		174		618		964		662		441	153.4%		356		2,067	NM
Contract holder assessments		(8)		(9)		(8)		(10)		(10)	-25.0%		(22)		(28)	-27.3%
Reinvested interest credited		228		(59)		319		243		181	-20.6%		477		743	55.8%
Balance as of end-of-period, gross		21,116		21,666		22,941		23,836		24,448	15.8%		21,116		24,448	15.8%
Reinsurance ceded		(1,261)		(8,923)		(8,997)		(8,997)		(8,837)	NM		(1,261)		(8,837)	NM
Balance as of end-of-period, net	$	19,855	$	12,743	$	13,944	$	14,839	$	15,611	-21.4%	$	19,855	$	15,611	-21.4%
Variable Annuities
Balance as of beginning-of-period	$	116,901	$	119,430	$	108,536	$	116,514	$	119,005	1.8%	$	117,479	$	108,536	-7.6%
Gross deposits		2,190		2,469		1,924		2,356		2,434	11.1%		6,319		6,714	6.3%
Full surrenders and deaths		(1,523)		(1,414)		(1,458)		(1,722)		(1,711)	-12.3%		(4,681)		(4,891)	-4.5%
Other contract benefits		(922)		(998)		(938)		(919)		(911)	1.2%		(2,808)		(2,768)	1.4%
Net flows		(255)		57		(472)		(285)		(188)	26.3%		(1,170)		(945)	19.2%
Contract holder assessments		(629)		(617)		(601)		(619)		(636)	-1.1%		(1,868)		(1,857)	0.6%
Change in market value and reinvestment		3,413		(10,334)		9,051		3,395		243	-92.9%		4,989		12,690	154.4%
Balance as of end-of-period, gross and net	$	119,430	$	108,536	$	116,514	$	119,005	$	118,424	-0.8%	$	119,430	$	118,424	-0.8%
Total
Balance as of beginning-of-period	$	137,623	$	140,546	$	130,202	$	139,455	$	142,841	3.8%	$	137,784	$	130,202	-5.5%
Gross deposits		3,080		3,774		3,508		3,654		3,461	12.4%		8,589		10,623	23.7%
Full surrenders and deaths		(2,078)		(1,915)		(1,927)		(2,223)		(2,152)	-3.6%		(6,126)		(6,302)	-2.9%
Other contract benefits		(1,083)		(1,184)		(1,089)		(1,054)		(1,056)	2.5%		(3,277)		(3,199)	2.4%
Net flows		(81)		675		492		377		253	NM		(814)		1,122	237.8%
Contract holder assessments		(637)		(626)		(609)		(629)		(646)	-1.4%		(1,890)		(1,885)	0.3%
Change in market value and reinvestment		3,641		(10,393)		9,370		3,638		424	-88.4%		5,466		13,433	145.8%
Balance as of end-of-period, gross		140,546		130,202		139,455		142,841		142,872	1.7%		140,546		142,872	1.7%
Reinsurance ceded		(1,261)		(8,923)		(8,997)		(8,997)		(8,837)	NM		(1,261)		(8,837)	NM
Balance as of end-of-period, net	$	139,285	$	121,279	$	130,458	$	133,844	$	134,035	-3.8%	$	139,285	$	134,035	-3.8%
Page 19

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
	General Account
	Balance as of beginning-of-period	$	19,046	$	19,511	$	19,766	$	19,914	$	20,076	5.4%	$	18,724	$	19,766	5.6%
	Gross deposits		704		489		458		393		469	-33.4%		1,557		1,319	-15.3%
	Withdrawals		(442)		(544)		(519)		(470)		(490)	-10.9%		(1,405)		(1,479)	-5.3%
	Net flows		262		(55)		(61)		(77)		(21)	NM		152		(160)	NM
	Transfers between fixed and variable accounts		65		169		70		97		136	109.2%		230		303	31.7%
	Contract holder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(8)		(8)	0.0%
	Reinvestment interest credited		141		144		142		145		149	5.7%		413		436	5.6%
	Balance as of end-of-period	$	19,511	$	19,766	$	19,914	$	20,076	$	20,337	4.2%	$	19,511	$	20,337	4.2%
	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	50,137	$	52,994	$	47,289	$	51,885	$	53,938	7.6%	$	48,645	$	47,289	-2.8%
	Gross deposits		2,624		1,674		2,038		1,680		1,765	-32.7%		6,348		5,484	-13.6%
	Withdrawals		(1,475)		(1,446)		(2,358)		(1,296)		(1,472)	0.2%		(4,127)		(5,125)	-24.2%
	Net flows		1,149		228		(320)		384		293	-74.5%		2,221		359	-83.8%
	Transfers between fixed and variable accounts		(134)		(170)		(210)		(141)		(190)	-41.8%		(366)		(542)	-48.1%
	Contract holder assessments		(53)		(52)		(51)		(52)		(54)	-1.9%		(158)		(158)	0.0%
	Change in market value and reinvestment		1,895		(5,711)		5,177		1,862		240	-87.3%		2,652		7,279	174.5%
	Balance as of end-of-period	$	52,994	$	47,289	$	51,885	$	53,938	$	54,227	2.3%	$	52,994	$	54,227	2.3%
	Total
	Balance as of beginning-of-period	$	69,183	$	72,505	$	67,055	$	71,799	$	74,014	7.0%	$	67,369	$	67,055	-0.5%
	Gross deposits		3,328		2,163		2,496		2,073		2,234	-32.9%		7,905		6,803	-13.9%
	Withdrawals		(1,917)		(1,990)		(2,877)		(1,766)		(1,962)	-2.3%		(5,532)		(6,604)	-19.4%
	Net flows		1,411		173		(381)		307		272	-80.7%		2,373		199	-91.6%
	Transfers between fixed and variable accounts		(69)		(1)		(140)		(44)		(54)	21.7%		(136)		(239)	-75.7%
	Contract holder assessments		(56)		(55)		(54)		(55)		(57)	-1.8%		(166)		(166)	0.0%
	Change in market value and reinvestment		2,036		(5,567)		5,319		2,007		389	-80.9%		3,065		7,715	151.7%
	Balance as of end-of-period	$	72,505	$	67,055	$	71,799	$	74,014	$	74,564	2.8%	$	72,505	$	74,564	2.8%
8	Page 20

Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
General Account
Balance as of beginning-of-period	$	36,955	$	37,054	$	37,289	$	37,275	$	37,438	1.3%	$	36,791	$	37,289	1.4%
Deposits		1,024		1,133		1,027		1,117		1,137	11.0%		3,137		3,281	4.6%
Withdrawals and deaths		(266)		(197)		(331)		(195)		(243)	8.6%		(896)		(770)	14.1%
Net flows		758		936		696		922		894	17.9%		2,241		2,511	12.0%
Contract holder assessments		(1,024)		(1,051)		(1,043)		(1,107)		(1,094)	-6.8%		(3,062)		(3,242)	-5.9%
Reinvested interest credited		365		350		333		348		344	-5.8%		1,084		1,024	-5.5%
Balance as of end-of-period, gross		37,054		37,289		37,275		37,438		37,582	1.4%		37,054		37,582	1.4%
Reinsurance ceded		(683)		(677)		(669)		(666)		(660)	3.4%		(683)		(660)	3.4%
Balance as of end-of-period, net	$	36,371	$	36,612	$	36,606	$	36,772	$	36,922	1.5%	$	36,371	$	36,922	1.5%
Separate Account
Balance as of beginning-of-period	$	14,420	$	15,102	$	13,735	$	15,346	$	15,941	10.5%	$	13,851	$	13,735	-0.8%
Deposits		499		730		510		566		548	9.8%		1,438		1,626	13.1%
Withdrawals and deaths		(177)		(227)		(186)		(271)		(215)	-21.5%		(439)		(673)	-53.3%
Net flows		322		503		324		295		333	3.4%		999		953	-4.6%
Contract holder assessments		(187)		(210)		(193)		(195)		(197)	-5.3%		(546)		(585)	-7.1%
Change in market value and reinvestment		547		(1,660)		1,480		495		59	-89.2%		798		2,033	154.8%
Balance as of end-of-period, gross		15,102		13,735		15,346		15,941		16,136	6.8%		15,102		16,136	6.8%
Reinsurance ceded		(886)		(758)		(832)		(844)		(829)	6.4%		(886)		(829)	6.4%
Balance as of end-of-period, net	$	14,216	$	12,977	$	14,514	$	15,097	$	15,307	7.7%	$	14,216	$	15,307	7.7%
Total
Balance as of beginning-of-period	$	51,375	$	52,156	$	51,024	$	52,621	$	53,379	3.9%	$	50,642	$	51,024	0.8%
Deposits		1,523		1,863		1,537		1,683		1,685	10.6%		4,575		4,907	7.3%
Withdrawals and deaths		(443)		(424)		(517)		(466)		(458)	-3.4%		(1,335)		(1,443)	-8.1%
Net flows		1,080		1,439		1,020		1,217		1,227	13.6%		3,240		3,464	6.9%
Contract holder assessments		(1,211)		(1,261)		(1,236)		(1,302)		(1,291)	-6.6%		(3,608)		(3,827)	-6.1%
Change in market value and reinvestment		912		(1,310)		1,813		843		403	-55.8%		1,882		3,057	62.4%
Balance as of end-of-period, gross		52,156		51,024		52,621		53,379		53,718	3.0%		52,156		53,718	3.0%
Reinsurance ceded		(1,569)		(1,435)		(1,501)		(1,510)		(1,489)	5.1%		(1,569)		(1,489)	5.1%
Balance as of end-of-period, net	$	50,587	$	49,589	$	51,120	$	51,869	$	52,229	3.2%	$	50,587	$	52,229	3.2%
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Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)
	As of 9/30/18				As of 12/31/18				As of 9/30/19
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities:
Corporate bonds	$	80,080		84.6%	$	80,348		83.7%	$	87,910		81.2%
U.S. government bonds		409		0.4%		417		0.4%		438		0.4%
State and municipal bonds		5,218		5.5%		5,345		5.6%		5,800		5.3%
Foreign government bonds		459		0.5%		448		0.5%		444		0.4%
Residential mortgage-backed securities		3,287		3.5%		3,373		3.5%		3,287		3.0%
Commercial mortgage-backed securities		748		0.8%		804		0.8%		1,033		1.0%
Asset-backed securities		2,347		2.5%		2,696		2.8%		4,172		3.8%
Hybrid and redeemable preferred securities		613		0.6%		593		0.6%		575		0.5%
Total fixed maturity AFS securities		93,161		98.4%		94,024		97.9%		103,659		95.6%
Trading securities		1,440		1.5%		1,950		2.0%		4,691		4.3%
Equity securities		112		0.1%		99		0.1%		158		0.1%
Total fixed maturity AFS, trading and equity securities	$	94,713		100.0%	$	96,073		100.0%	$	108,508		100.0%
Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	90,808		98.5%	$	92,429		98.0%	$	88,176		95.4%
Trading securities		1,300		1.4%		1,823		1.9%		4,093		4.4%
Equity securities		109		0.1%		116		0.1%		185		0.2%
Total fixed maturity AFS, trading and equity securities	$	92,217		100.0%	$	94,368		100.0%	$	92,454		100.0%
Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				96.1%				96.2%				96.4%
Below investment grade				3.9%				3.8%				3.6%
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Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	43	$	50	$	38	$	44	$	50	16.3%	$	137	$	132	-3.6%
Total excluded realized gain (loss)		(98)		141		(400)		(161)		(61)	37.8%		(188)		(623)	NM
Total realized gain (loss), pre-tax	$	(55)	$	191	$	(362)	$	(117)	$	(11)	80.0%	$	(51)	$	(491)	NM
Excluded Realized Gain (Loss) Net of
Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(77)	$	111	$	(316)	$	(128)	$	(49)	36.4%	$	(149)	$	(492)	NM
Benefit ratio unlocking		33		(167)		142		46		(2)	NM		32		186	NM
Net gain (loss), after-tax	$	(44)	$	(56)	$	(174)	$	(82)	$	(51)	-15.9%	$	(117)	$	(306)	NM
Realized Gain (Loss) Net of Benefit Ratio
Unlocking, After-Tax
Realized gain (loss) related to investments	$	(15)	$	(37)	$	(110)	$	(37)	$	(9)	40.0%	$	(21)	$	(155)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(19)		(53)		(15)		(19)		(65)	NM		(85)		(99)	-16.5%
GLB non-performance risk component		(5)		56		(27)		(2)		43	NM		2		14	NM
Total variable annuity net derivative results		(24)		3		(42)		(21)		(22)	8.3%		(83)		(85)	-2.4%
Indexed annuity forward-starting option		(5)		(22)		(22)		(24)		(20)	NM		(13)		(66)	NM
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(44)	$	(56)	$	(174)	$	(82)	$	(51)	-15.9%	$	(117)	$	(306)	NM
Components of Realized Gain (Loss)
Related to Investments, After-Tax
OTTI	$	(2)	$	(2)	$	(6)	$	(3)	$	(2)	0.0%	$	(4)	$	(11)	NM
Other realized gain (loss) related to certain investments		(7)		(13)		(15)		(7)		(12)	-67.4%		(34)		(33)	2.9%
Gain (loss) on the mark-to-market on equity investments		-		(15)		5		1		(14)	NM		2		(8)	NM
Gain (loss) on the mark-to-market on certain instruments		(6)		(7)		(94)		(28)		19	NM		15		(103)	NM
Total realized gain (loss) related
to investments, after-tax	$	(15)	$	(37)	$	(110)	$	(37)	$	(9)	40.0%	$	(21)	$	(155)	NM
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Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/18		12/31/18		3/31/19		6/30/19		9/30/19		Change	9/30/18		9/30/19		Change
Revenues
Total revenues	$	4,264	$	4,531	$	3,965	$	4,310	$	4,638	8.8%	$	11,893	$	12,913	8.6%
Less:
Excluded realized gain (loss)		(98)		141		(400)		(161)		(61)	37.8%		(188)		(623)	NM
Amortization of DFEL associated with
benefit ratio unlocking		-		(4)		3		1		(1)	NM		-		3	NM
Adjusted operating revenues	$	4,362	$	4,394	$	4,362	$	4,470	$	4,700	7.7%	$	12,081	$	13,533	12.0%
Net Income
Net income (loss)	$	490	$	399	$	252	$	363	$	(161)	NM	$	1,242	$	454	-63.4%
Less:
Excluded realized gain (loss), after-tax		(77)		111		(316)		(128)		(49)	36.4%		(149)		(492)	NM
Benefit ratio unlocking, after-tax		33		(167)		142		46		(2)	NM		32		186	NM
Net impact from the Tax Cuts and Jobs Act		32		-		-		-		-	-100.0%		19		-	-100.0%
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(8)		(20)		(15)		(33)		(31)	NM		(47)		(80)	-70.2%
Gain (loss) on early extinguishment of debt, after-tax		-		-		-		-		(33)	NM		(18)		(33)	-83.3%
Adjusted income (loss) from operations	$	510	$	475	$	441	$	478	$	(46)	NM	$	1,405	$	873	-37.9%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	2.24	$	1.80	$	1.22	$	1.79	$	(0.83)	NM	$	5.59	$	2.24	-59.9%
Less:
Excluded realized gain (loss), after-tax		(0.36)		0.53		(1.54)		(0.63)		(0.24)	33.3%		(0.68)		(2.42)	NM
Benefit ratio unlocking, after-tax		0.15		(0.78)		0.69		0.22		(0.01)	NM		0.14		0.91	NM
Net impact from the Tax Cuts and Jobs Act		0.15		-		-		-		-	-100.0%		0.09		-	-100.0%
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.04)		(0.10)		(0.07)		(0.16)		(0.16)	NM		(0.21)		(0.39)	-85.7%
Gain (loss) on early extinguishment of debt, after-tax		-		-		-		-		(0.17)	NM		(0.08)		(0.16)	-100.0%
Adjusted income (loss) from operations	$	2.34	$	2.15	$	2.14	$	2.36	$	(0.25)	NM	$	6.33	$	4.30	-32.1%
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