8-K

UNITED STATES
‎SECURITIES AND EXCHANGE COMMISSION
‎Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

August 5, 2020

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation             

(Exact name of registrant as specified in its charter)

Indiana	1-6028	35-1140070
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 583-1400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

__________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange

__________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   [ ]

‎

Item 2.02. Results of Operations and Financial Condition.

On August 5, 2020, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2020, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The Company’s statistical supplement for the quarter ended June 30, 2020, is attached as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), except as otherwise expressly stated in such filing.

Item 7.01. Regulation FD Disclosure.

On August 5, 2020, in connection with the Company’s second quarter 2020 earnings conference call scheduled for August 6, 2020, the Company made available on its website a supplemental second quarter 2020 earnings and investment portfolio presentation, a copy of which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.

This presentation is being furnished under this Item 7.01 and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section. The information in Exhibit 99.3 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

The following exhibits are being furnished with this Form 8-K.

Exhibit Number	Description
99.1	Press release dated August 5, 2020, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2020. ‎
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended June 30, 2020. ‎
99.3	Second Quarter 2020 Earnings and Investment Portfolio Supplement dated August 5, 2020. ‎

‎

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LINCOLN NATIONAL CORPORATION
By	/s/ Christine A. Janofsky
Name:	Christine A. Janofsky
Title:	Senior Vice President and
	Chief Accounting Officer

Date: August 5, 2020

EX-99.1

FOR IMMEDIATE RELEASE

Lincoln Financial Group reports second Quarter 2020 Results

_______________________________________

v Net loss EPS of $(0.49) and adjusted operating EPS of $0.97

v Results included elevated claims experience from COVID-19 estimated to be $(0.65) to $(0.75) and below targeted alternative investment income of $(0.62)

v General and administrative expenses improved 7%

v Holding company available liquidity of $774 million

Radnor, PA, August 5, 2020 –  Lincoln Financial Group (NYSE: LNC) today reported net loss for the second quarter of 2020 of $(94) million, or $(0.49) per diluted share available to common stockholders, compared to net income in the second quarter of 2019 of $363 million, or $1.79 per diluted share available to common stockholders. Second quarter adjusted income from operations was $187 million, or $0.97 per diluted share available to common stockholders, compared to adjusted income from operations of $478 million, or $2.36 per diluted share available to common stockholders, in the second quarter of 2019.

“Second quarter results were impacted by elevated claims experience from COVID-19 and negative returns within our alternative investment portfolio, consistent with our expectations,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “Based on what we know today, we expect earnings to recover to more normal levels in the third quarter, excluding potential impacts from our annual assumption review. During these unpredictable times, we remain focused on further improving our already strong balance sheet, achieving appropriate returns on capital, and executing initiatives to improve productivity and lower expenses, which will drive long-term shareholder value.”

	As of or For the				As of or For the
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share data)	2020		2019		2020		2019
Net Income (Loss)	$	(94)	$	363	$	(42)	$	616
Net Income (Loss) Available to Common Stockholders		(94)		363		(52)		616
Net Income (Loss) per Diluted Share Available to Common Stockholders(1)		(0.49)		1.79		(0.27)		3.01
Revenues		3,517		4,310		7,942		8,275
Adjusted Income (Loss) from Operations		187		478		652		919
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders		0.97		2.36		3.27		4.50
Average Diluted Shares		193.8		202.9		196.2		204.4
Return on Equity (ROE), Including Accumulated Other Comprehensive
Income (AOCI) (Net Income)		-2.0%		8.3%		-0.5%		7.5%
Adjusted Operating ROE, Excluding AOCI (Income from Operations)		5.5%		13.6%		9.6%		13.1%
Book Value per Share, Including AOCI	$	107.28	$	91.92	$	107.28	$	91.92
Book Value per Share, Excluding AOCI		69.38		70.32		69.38		70.32

1 Due to reporting a net loss for the three and six months ended June 30, 2020, basic shares were used in the diluted EPS calculation for these periods as the use of diluted shares would have resulted in a lower loss per share.

Operating Highlights – Second Quarter 2020 vs Second Quarter 2019

· Positive net flows in Annuities of $58 million

· Retirement Plan Services deposits of $2.3 billion, up 11%

· Life Insurance expense ratio improved 20 basis points

· Group Protection insurance premiums of $1.1 billion, up 5%

There were no notable items within adjusted income from operations for the current quarter or the prior-year quarter.

Second Quarter 2020 – Segment Results

Annuities

Annuities reported income from operations of $237 million compared to $266 million in the prior-year quarter. This decrease was primarily driven by negative returns within the company’s alternative investment portfolio.

Total annuity deposits of $2.5 billion were down 31% from the prior-year quarter. Variable annuity sales were down 6% versus the prior-year quarter as growth in products without guaranteed living benefits was more than offset by a decline in guaranteed living benefit sales. Fixed annuity sales decreased 77% over the same period due to product actions taken to respond to lower interest rates.

Net flows were $58 million in the quarter, driven by sales growth from variable annuities without guarantees. Average account values of $134 billion were up 2% over the prior-year quarter and end-of-period account values increased 4%.

Retirement Plan Services

Retirement Plan Services reported income from operations of $30 million compared to $42 million in the prior-year quarter driven primarily by negative returns within the company’s alternative investment portfolio.

Total deposits for the quarter of $2.3 billion were up 11% driven by 36% growth in first-year sales and a 1% increase in recurring deposits.

Net outflows totaled $1.2 billion in the quarter compared to $307 million of positive flows in the prior-year quarter as the current quarter included two large case terminations. Average account values of $74 billion were up 1% over the prior-year quarter and end-of-period account values increased 3%.

Life Insurance

Life Insurance reported a loss from operations of $37 million compared to income from operations of $168 million in the prior-year quarter. This decrease was driven primarily by mortality related to COVID-19, which was consistent with the company’s previously stated expectations, and negative returns within the company’s alternative investment portfolio.

Total Life Insurance sales were $159 million compared to $210 million in the prior-year quarter. Growth in VUL was offset by declines in other life insurance products.

Total Life Insurance in-force of $863 billion grew 10% over the prior-year quarter, and average account values of $53 billion increased 2% over the same period.

Group Protection

Group Protection income from operations was $39 million in the quarter compared to $68 million in the prior-year period. The decrease was primarily driven by unfavorable risk results, including impacts from COVID-19, and negative returns within the company’s alternative investment portfolio.

The total loss ratio was 78% in the current quarter compared to 74% in the prior-year quarter driven by unfavorable life and disability experience, partially offset by favorable dental experience.

Group Protection sales were $105 million, up 11% compared to the prior-year quarter driven by an increase in life and disability sales. Employee-paid sales represented 52% of total sales. Insurance premiums of $1.1 billion were up 5%.

Other Operations

Other Operations reported a loss from operations of $82 million versus a loss of $66 million in the prior-year quarter.

Realized Gains and Losses / Impacts to Net Income

Realized gains/losses and impacts to net income (after-tax) in the quarter were primarily driven by:

· A $150 million loss primarily as a result of the variable annuity GLB non-performance risk and accounting associated with the company’s modified coinsurance arrangements.

· A $79 million increase on current expected credit loss, or “CECL,” reserves.

Unrealized Gains and Losses

The company reported a net unrealized gain of $14.7 billion, pre-tax, on its available-for-sale securities at June 30, 2020. This compares to a net unrealized gain of $8.5 billion at June 30, 2019, with the year-over-year increase primarily driven by lower treasury rates.

Share Count

The quarter’s average diluted share count of 193.8 million was down 4% from the second quarter of 2019, the result of repurchasing 8.0 million shares of stock since June 30, 2019. No shares were repurchased in the quarter.

Book Value

As of June 30, 2020, book value per share, including AOCI, increased 17% from the prior-year period to $107.28. Book value per share, excluding AOCI, decreased 1%from the prior-year period to $69.38.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income from operations, adjusted operating ROE and BVPS, excluding AOCI, to net income, ROE and BVPS, including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s second quarter 2020 statistical supplement and earnings and investment portfolio supplement available on its website, http://www.lfg.com/investor.  

Lincoln Financial Group will discuss the company’s second quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, August 6, 2020. The conference call will be broadcast live through the company website at www.lfg.com/webcast. Please log on at least fifteen minutes prior to the call to register and download any necessary streaming media software. To participate via phone: (866) 394-4575 (U.S./Canada) or (678) 509-7536 (International). Ask for the Lincoln National Conference Call.

A replay of the call will be available by 1:00 p.m. Eastern Time on August 6, 2020 at www.lfg.com/webcast. Audio replay will be available from 1:00 p.m. Eastern Time on August 6, 2020 through 12:00 p.m. Eastern Time on August 13, 2020. To access the re-broadcast, dial: (855) 859-2056 (Domestic) or (404) 537-3406 (International). Enter conference code: 5964583.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $270 billion in end-of-period account values as of June 30, 2020. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, we earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index, and rank among Forbes’ World’s Best Employers, Best Large Employers, Best Employers for Diversity, Best Employers for Women and JUST 100, and Newsweek’s Most Responsible Companies. Learn more at: www.LincolnFinancial.com.  Follow us on Facebook,  Twitter,  LinkedIn, and Instagram.  Sign up for email alerts at http://newsroom.lfg.com.

Contacts:	Chris Giovanni	Scott Sloat
	(484) 583-1793	(484) 583-1625
	Investor Relations	Media Relations
	InvestorRelations@LFG.com	scott.sloat@LFG.com

Explanatory Notes on Use of Non-GAAP Measures

Management believes that adjusted income from operations (adjusted operating income), adjusted operating return on equity, adjusted operating revenues, and adjusted operating EPS better explain the results of the company’s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company’s current business because the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management also believes that using book value excluding accumulated other comprehensive income (“AOCI”) enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. 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.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Reports for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: www.lfg.com/investor.  

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (including and excluding average goodwill within average equity), excluding AOCI, using annualized adjusted income (loss) from operations are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted operating revenues and adjusted operating return on equity (“ROE”), as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), revenues and ROE, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

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

· Realized gains and losses associated with the following (“excluded realized gain (loss)”):

o Sales or disposals and impairments of financial assets;

o Changes in the fair value of equity securities;

o 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”);

o Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities;

o 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;

o Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

o Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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”);

· 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

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 deferred front-end loads (“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.

Adjusted Operating Return on Equity

Adjusted operating return on equity measures how efficiently we generate profits from the resources provided by our net assets.

· It is calculated by dividing annualized adjusted income (loss) from operations by average equity, excluding accumulated other comprehensive income (loss) ("AOCI").

· Management evaluates return on equity by both including and excluding average goodwill within average equity.

Definition of Notable Items

Adjusted income (loss) from operations, excluding notable items, is a non-GAAP measure that excludes items which, in management’s view, do not reflect the company’s normal, ongoing operations.

· We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI is calculated based upon a non-GAAP financial measure.

· It is calculated by dividing (a) stockholders' equity, excluding AOCI by (b) common shares outstanding.

· We provide book value per share excluding AOCI to enable investors to analyze the amount of our net worth that is primarily attributable 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.

Special Note

Sales

Sales as reported consist of the following:

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

· MoneyGuard® – 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.

Lincoln National Corporation

Reconciliation of Net Income to Adjusted Income from Operations

	For the				For the
(in millions, except per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Total Revenues	$	3,517	$	4,310	$	7,942	$	8,275
Less:
Excluded realized gain (loss)		(694)		(161)		(770)		(562)
Amortization of DFEL on benefit ratio unlocking		2		1		(7)		4
Total Adjusted Operating Revenues	$	4,209	$	4,470	$	8,719	$	8,833
Net Income (Loss) Available to Common
Stockholders – Diluted	$	(94)	$	363	$	(52)	$	616
Less:
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		-		(10)		-
Net Income (Loss)		(94)		363		(42)		616
Less:
Excluded realized gain (loss), after-tax		(548)		(128)		(609)		(443)
Benefit ratio unlocking, after-tax		282		46		(67)		188
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(3)		(33)		(6)		(48)
Gain (loss) on early extinguishment of debt, after-tax		(12)		-		(12)		-
Total adjustments		(281)		(115)		(694)		(304)
Adjusted Income (Loss) from Operations	$	187	$	478	$	652	$	919
Earnings (Loss) Per Common Share – Diluted
Net income (loss)(2)	$	(0.49)	$	1.79	$	(0.27)	$	3.01
Adjusted income (loss) from operations		0.97		2.36		3.27		4.50
Average Stockholders' Equity
Average equity, including average AOCI	$	18,653	$	17,436	$	18,393	$	16,410
Average AOCI		5,164		3,394		4,751		2,412
Average equity, excluding AOCI		13,489		14,042		13,642		13,998
Average goodwill		1,778		1,778		1,778		1,779
Average equity, excluding AOCI and goodwill	$	11,711	$	12,264	$	11,864	$	12,219
Return on Equity, Including AOCI
Net income (loss) with average equity including goodwill		-2.0%		8.3%		-0.5%		7.5%
Adjusted Operating Return on Equity, Excluding AOCI
Adjusted income (loss) from operations with average equity
including goodwill		5.5%		13.6%		9.6%		13.1%
Adjusted income (loss) from operations with average equity
excluding goodwill		6.4%		15.6%		11.0%		15.0%
(1) 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 if the effect of equity classification would result in a more dilutive EPS.
(2) Due to reporting a net loss for the three and six months ended June 30, 2020, basic shares were used in the diluted EPS calculation for
these periods as the use of diluted shares would have resulted in a lower loss per share.

Lincoln National Corporation

Reconciliation of Book Value per Share

	As of June 30,
	2020		2019
Book value per share, including AOCI	$	107.28	$	91.92
Per share impact of AOCI		37.90		21.60
Book value per share, excluding AOCI		69.38		70.32

Lincoln National Corporation

Digest of Earnings

	For the
(in millions, except per share data)	Three Months Ended
	June 30,
	2020		2019
Revenues	$	3,517	$	4,310
Net Income (Loss)	$	(94)	$	363
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		-		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	(94)	$	363
Earnings (Loss) per Common Share – Basic	$	(0.49)	$	1.80
Earnings (Loss) per Common Share – Diluted (2)		(0.49)		1.79
Average Shares – Basic	193,228,547		201,498,137
Average Shares – Diluted	193,776,452		202,905,913
	For the
	Six Months Ended
	June 30,
	2020		2019
Revenues	$	7,942	$	8,275
Net Income (Loss)	$	(42)	$	616
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(10)		-
Net Income (Loss) Available to Common
Stockholders – Diluted	$	(52)	$	616
Earnings (Loss) per Common Share – Basic	$	(0.22)	$	3.03
Earnings (Loss) per Common Share – Diluted (2)		(0.27)		3.01
Average Shares – Basic	194,152,672		202,886,733
Average Shares – Diluted	196,236,491		204,426,073
(1) 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 if the effect of equity classification would be more dilutive to our diluted EPS.
(2) Due to reporting a net loss for the three and six months ended June 30, 2020, basic shares were used in the diluted EPS calculation for
these periods as the use of diluted shares would have resulted in a lower loss per share.

Forward Looking Statements — Cautionary Language

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: "anticipate," "believe," "estimate," "expect," "project," "shall," "will," and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln's businesses, prospective services or products, future performance or financial results, and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

· The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition;

· Further deterioration in general economic and business conditions that may affect account values, investment results, guaranteed benefit liabilities, premium levels and claims experience;

· Adverse global capital and credit market conditions could affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;

· Because of our holding company structure, the inability of our subsidiaries to pay dividends to the holding company in sufficient amounts could harm the holding company’s ability to meet its obligations;

· Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries' products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees; the impact of U.S. federal tax reform legislation on our business, earnings and capital; and the impact of any “best interest” standards of care adopted by the Securities and Exchange Commission (“SEC”) or other regulations adopted by federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker dealers;

· Actions taken by reinsurers to raise rates on in-force business;

· Further declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, estimated gross profits and demand for our products;

· Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;

· Uncertainty about the effect of continuing promulgation and implementation of rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us, the economy and the financial services sector in particular;

· The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;

· A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries' products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs ("DAC"), value of business acquired ("VOBA"), deferred sales inducements ("DSI") and deferred front-end loads ("DFEL"); and an increase in liabilities related to guaranteed benefit features of our subsidiaries' variable annuity products;

· Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;

· A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries' products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings;

· Changes in accounting principles that may affect our financial statements;

· Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;

· Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity;

· Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk requiring that we realize losses on financial assets;

· Inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others;

· Interruption in telecommunication, information technology or other operational systems, or failure to safeguard the confidentiality or privacy of sensitive data on such systems from cyberattacks or other breaches of our data security systems;

· The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including the successful implementation of integration strategies or the achievement of anticipated synergies and operational efficiencies related to an acquisition; 

· The adequacy and collectability of reinsurance that we have purchased;

· The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19 or other pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance;

· Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;

· The unknown effect on our subsidiaries' businesses resulting from evolving market preferences and the changing demographics of our client base; and

· The unanticipated loss of key management, financial planners or wholesalers.

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K and our Form 10-Q for the quarter ended March 31, 2020, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

The reporting of Risk Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

EX-99.2

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	Joshua Shanker					646-855-5716
Citi Research	Suneet Kamath					212-816-3457
Credit Suisse	Andrew Kligerman					212-325-5069
Dowling & Partners	Humphrey Lee					860-676-7324
Evercore	Thomas Gallagher					212-446-9439
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
Piper Sandler & Co.	John Barnidge					312-281-3412
RBC Capital Markets	Mark Dwelle					804-782-4008
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 August 5, 2020
						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-
Lincoln Life Assurance Company of Boston		A+				AA-
Investor Inquiries May Be Directed To:
Chris Giovanni, Senior Vice President, Corporate Treasurer
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 net loss is experienced, shares used in the diluted EPS calculation represent

 basic shares, as the use of diluted shares would result in a lower loss per share.

• 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.

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.

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 financial assets;

▪ Changes in the fair value of equity 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; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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”);

• 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.

Page 2b

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.

Due to reporting a net loss for the three months ended September 30, 2019, and the three and six months ended June 30, 2020, basic shares were used in the diluted earnings per share calculation

for those periods 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 August 5, 2020, 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											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Revenues
Insurance premiums	$	1,398	$	1,325	$	1,344	$	1,373	$	1,342	-4.0%	$	2,845	$	2,715	-4.6%
Fee income		1,517		1,934		1,572		1,539		1,458	-3.9%		2,991		2,997	0.2%
Net investment income		1,355		1,235		1,381		1,375		1,172	-13.5%		2,606		2,547	-2.3%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(4)		(2)		(1)		-		-	100.0%		(12)		-	100.0%
Realized gain (loss), excluding OTTI		(113)		(9)		(118)		(24)		(647)	NM		(468)		(671)	-43.4%
Total realized gain (loss)		(117)		(11)		(119)		(24)		(647)	NM		(480)		(671)	-39.8%
Amortization of deferred gains on business
sold through reinsurance		8		8		7		11		11	37.5%		15		22	46.7%
Other revenues		149		147		159		151		181	21.5%		298		332	11.4%
Total revenues		4,310		4,638		4,344		4,425		3,517	-18.4%		8,275		7,942	-4.0%
Expenses
Interest credited		680		705		717		725		732	7.6%		1,358		1,457	7.3%
Benefits		1,852		2,502		1,768		2,501		1,725	-6.9%		3,610		4,227	17.1%
Commissions and other expenses		1,272		1,552		1,288		1,085		1,123	-11.7%		2,446		2,207	-9.8%
Interest and debt expense		70		113		72		68		84	20.0%		141		152	7.8%
Strategic digitization expense		15		16		18		12		14	-6.7%		31		26	-16.1%
Total expenses		3,889		4,888		3,863		4,391		3,678	-5.4%		7,586		8,069	6.4%
Income (loss) before taxes		421		(250)		481		34		(161)	NM		689		(127)	NM
Federal income tax expense (benefit)		58		(89)		50		(18)		(67)	NM		73		(85)	NM
Net income (loss)		363		(161)		431		52		(94)	NM		616		(42)	NM
Adjustment for LNC stock units in our
deferred compensation plans		-		(3)		(1)		(23)		-	NM		-		(10)	NM
Net income (loss) available to common
stockholders – diluted	$	363	$	(164)	$	430	$	29	$	(94)	NM	$	616	$	(52)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM
ROE, including AOCI
Net income (loss)		8.3%		-3.4%		8.7%		1.1%		-2.0%			7.5%		-0.5%
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowances for
credit losses ("ACL"):
Corporate bonds	$	84,790	$	87,910	$	88,716	$	85,797	$	95,390	12.5%
U.S. government bonds		430		438		435		482		504	17.2%
State and municipal bonds		5,669		5,800		5,884		5,906		6,393	12.8%
Foreign government bonds		440		444		393		389		436	-0.9%
Residential mortgage-backed securities		3,292		3,287		3,241		3,271		3,272	-0.6%
Commercial mortgage-backed securities		965		1,033		1,083		1,119		1,226	27.0%
Asset-backed securities		3,542		4,172		4,889		5,086		5,716	61.4%
Hybrid and redeemable preferred securities		605		575		559		556		582	-3.8%
Total fixed maturity AFS securities, net of ACL		99,733		103,659		105,200		102,606		113,519	13.8%
Trading securities		4,522		4,691		4,673		4,019		4,651	2.9%
Equity securities		196		158		103		83		87	-55.6%
Mortgage loans on real estate, net of ACL		15,090		15,947		16,339		16,791		16,578	9.9%
Policy loans		2,484		2,475		2,477		2,571		2,551	2.7%
Derivative investments		1,510		2,201		1,911		4,417		2,957	95.8%
Other investments		2,845		3,389		2,994		4,765		4,574	60.8%
Total investments		126,380		132,520		133,697		135,252		144,917	14.7%
Cash and invested cash		3,314		2,939		2,563		6,202		4,201	26.8%
DAC and VOBA		8,588		7,492		7,694		9,212		7,012	-18.4%
Premiums and fees receivable		553		440		465		562		490	-11.4%
Accrued investment income		1,146		1,182		1,148		1,185		1,168	1.9%
Reinsurance recoverables, net of ACL		17,481		17,353		17,144		16,923		16,866	-3.5%
Reinsurance related embedded derivatives		-		-		-		137		-	NM
Funds withheld reinsurance assets		548		543		536		535		535	-2.4%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		16,196		15,939		16,170		16,246		15,905	-1.8%
Separate account assets		146,275		145,092		153,566		130,617		146,787	0.4%
Total assets	$	322,259	$	325,278	$	334,761	$	318,649	$	339,659	5.4%
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	34,890	$	36,108	$	36,420	$	37,100	$	38,604	10.6%
Other contract holder funds		94,947		95,283		98,018		99,508		100,537	5.9%
Short-term debt		300		300		300		-		-	-100.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		866		866		866		866	0.0%
Financial		4,755		5,204		5,201		5,882		5,870	23.4%
Reinsurance related embedded derivatives		310		339		327		-		245	-21.0%
Funds withheld reinsurance liabilities		1,796		1,817		1,810		1,843		1,867	4.0%
Payables for collateral on investments		5,632		5,528		5,082		8,434		7,031	24.8%
Other liabilities		14,033		14,742		13,482		17,824		17,121	22.0%
Separate account liabilities		146,275		145,092		153,566		130,617		146,787	0.4%
Total liabilities		303,804		305,279		315,072		302,074		318,928	5.0%
Stockholders’ Equity
Common stock		5,241		5,192		5,162		5,071		5,081	-3.1%
Retained earnings		8,878		8,559		8,854		8,500		8,327	-6.2%
AOCI:
Unrealized investment gains (losses)		4,658		6,572		6,017		3,348		7,668	64.6%
Foreign currency translation adjustment		(24)		(29)		(17)		(27)		(28)	-16.7%
Funded status of employee benefit plans		(298)		(295)		(327)		(317)		(317)	-6.4%
Total AOCI		4,336		6,248		5,673		3,004		7,323	68.9%
Total stockholders’ equity		18,455		19,999		19,689		16,575		20,731	12.3%
Total liabilities and stockholders’ equity	$	322,259	$	325,278	$	334,761	$	318,649	$	339,659	5.4%
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											As of or For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss)
Net income (loss)	$	363	$	(161)	$	431	$	52	$	(94)	NM	$	616	$	(42)	NM
Pre-tax adjusted income (loss) from operations		566		(104)		566		558		195	-65.5%		1,073		752	-29.9%
After-tax adjusted income (loss) from operations (1)		478		(46)		482		465		187	-60.9%		919		652	-29.1%
Adjusted operating tax rate		15.5%		55.8%		14.8%		16.5%		4.0%			14.4%		13.3%
Average Stockholders’ Equity
Average equity, including AOCI	$	17,436	$	19,227	$	19,844	$	18,132	$	18,653	7.0%	$	16,410	$	18,393	12.1%
Average AOCI		3,394		5,292		5,961		4,338		5,164	52.2%		2,412		4,751	97.0%
Average equity, excluding AOCI	$	14,042	$	13,935	$	13,883	$	13,794	$	13,489	-3.9%	$	13,998	$	13,642	-2.5%
ROE, Excluding AOCI
Net income (loss)		10.4%		-4.6%		12.4%		1.5%		-2.8%			8.8%		-0.6%
Adjusted income (loss) from operations		13.6%		-1.3%		13.9%		13.5%		5.5%			13.1%		9.6%
Per Share
Net income (loss) (diluted)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM
Adjusted income (loss) from operations (diluted)		2.36		(0.25)		2.41		2.24		0.97	-58.9%		4.50		3.27	-27.3%
Dividends declared during the period		0.37		0.37		0.40		0.40		0.40	8.1%		0.74		0.80	8.1%
Book value, including AOCI	$	91.92	$	100.84	$	100.11	$	85.79	$	107.28	16.7%	$	91.92	$	107.28	16.7%
Per share impact of AOCI		21.60		31.51		28.84		15.55		37.90	75.5%		21.60		37.90	75.5%
Book value, excluding AOCI	$	70.32	$	69.33	$	71.27	$	70.24	$	69.38	-1.3%	$	70.32	$	69.38	-1.3%
Shares
Repurchased during the period		2.3		2.5		1.7		3.8		-	-100.0%		6.2		3.8	-38.7%
End-of-period – basic		200.8		198.3		196.7		193.2		193.2	-3.8%		200.8		193.2	-3.8%
End-of-period – diluted		202.2		200.7		199.2		195.0		194.0	-4.1%		202.2		194.0	-4.1%
Average for the period – diluted		202.9		201.6		200.0		197.3		193.8	-4.5%		204.4		196.2	-4.0%
(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											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Cash Returned to Common Stockholders
Shares repurchased	$	150	$	150	$	100	$	225	$	-	-100.0%	$	390	$	225	-42.3%
Common dividends		75		74		73		79		77	2.7%		150		156	4.0%
Total cash returned to common stockholders	$	225	$	224	$	173	$	304	$	77	-65.8%	$	540	$	381	-29.4%
Leverage Ratio
Short-term debt	$	300	$	300	$	300	$	-	$	-	-100.0%
Long-term debt		5,621		6,070		6,067		6,748		6,736	19.8%
Total debt (1)		5,921		6,370		6,367		6,748		6,736	13.8%
Less:
Operating debt (2)		866		866		866		866		866	0.0%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		270		331		278		459		451	67.0%
Total numerator	$	4,483	$	4,871	$	4,921	$	5,121	$	5,117	14.1%
Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,797	$	13,427	$	13,672	$	13,227	$	13,063	-5.3%
Add:  25% of capital securities		302		302		302		302		302	0.0%
Total numerator		4,483		4,871		4,921		5,121		5,117	14.1%
Total denominator	$	18,582	$	18,600	$	18,895	$	18,650	$	18,482	-0.5%
Leverage ratio		24.1%		26.2%		26.0%		27.5%		27.7%
Holding Company Available Liquidity	$	474	$	765	$	702	$	760	$	774	63.3%
(1) Excludes obligations under finance leases and certain financing arrangements of $456 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											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	309	$	185	$	312	$	302	$	272	-12.0%	$	596	$	574	-3.7%
Retirement Plan Services		49		49		54		45		33	-32.7%		92		78	-15.2%
Life Insurance		207		(318)		222		209		(52)	NM		403		157	-61.0%
Group Protection		86		78		68		50		49	-43.0%		155		100	-35.5%
Other Operations		(85)		(98)		(90)		(48)		(107)	-25.9%		(173)		(157)	9.2%
Adjusted income (loss) from operations, before
income taxes	$	566	$	(104)	$	566	$	558	$	195	-65.5%	$	1,073	$	752	-29.9%
Income (Loss) from Operations, After-Tax
Annuities	$	266	$	169	$	269	$	261	$	237	-10.9%	$	517	$	498	-3.7%
Retirement Plan Services		42		44		47		40		30	-28.6%		81		69	-14.8%
Life Insurance		168		(245)		179		171		(37)	NM		325		134	-58.8%
Group Protection		68		61		54		40		39	-42.6%		123		79	-35.8%
Other Operations		(66)		(75)		(67)		(47)		(82)	-24.2%		(127)		(128)	-0.8%
Adjusted income (loss) from operations	$	478	$	(46)	$	482	$	465	$	187	-60.9%	$	919	$	652	-29.1%
	For the Three Months Ended											For the Trailing Twelve Months
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Sources of Earnings, Pre-Tax
Investment spread	$	164	$	(126)	$	173	$	151	$	39	-76.2%	$	646	$	237	-63.3%
Mortality/morbidity		196		(119)		189		165		15	-92.3%		754		250	-66.8%
Fees on AUM		269		262		275		290		245	-8.9%		1,049		1,072	2.2%
VA riders		22		(23)		19		-		3	-86.4%		126		(1)	NM
Total sources of earnings, before income taxes		651		(6)		656		606		302	-53.6%		2,575		1,558	-39.5%
Other Operations		(85)		(98)		(90)		(48)		(107)	-25.9%		(340)		(344)	-1.2%
Adjusted income (loss) from operations, before
income taxes	$	566	$	(104)	$	566	$	558	$	195	-65.5%	$	2,235	$	1,214	-45.7%
Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		25.2%		1829.1%		26.4%		25.0%		12.7%			25.1%		15.2%
Mortality/morbidity		30.2%		1720.6%		28.8%		27.3%		4.8%			29.3%		16.1%
Fees on AUM		41.1%		-3785.1%		42.0%		47.8%		81.3%			40.7%		68.8%
VA riders		3.5%		335.4%		2.8%		-0.1%		1.2%			4.9%		-0.1%
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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Annuities
Operating revenues	$	1,156	$	1,117	$	1,153	$	1,129	$	1,037	-10.3%	$	2,330	$	2,166	-7.0%
Deposits		3,654		3,461		3,902		3,697		2,515	-31.2%		7,162		6,211	-13.3%
Net flows		377		253		729		528		58	-84.6%		869		585	-32.7%
Average account values		131,675		133,922		137,817		137,922		134,197	1.9%		129,437		136,114	5.2%
Retirement Plan Services
Operating revenues	$	299	$	298	$	310	$	297	$	282	-5.7%	$	592	$	579	-2.2%
Deposits		2,073		2,234		2,663		2,779		2,307	11.3%		4,568		5,086	11.3%
Net flows		307		272		422		671		(1,207)	NM		(74)		(536)	NM
Average account values		72,612		74,201		76,478		75,845		73,611	1.4%		71,228		75,187	5.6%
Life Insurance
Operating revenues	$	1,802	$	2,098	$	1,838	$	1,821	$	1,639	-9.0%	$	3,502	$	3,460	-1.2%
Deposits		1,683		1,685		2,413		1,450		1,428	-15.2%		3,221		2,878	-10.6%
Net flows		1,217		1,227		1,957		963		1,023	-15.9%		2,237		1,986	-11.2%
Average account values		51,495		52,050		53,243		52,866		52,693	2.3%		50,925		52,780	3.6%
Average in-force face amount		772,231		790,667		814,865		836,488		853,071	10.5%		762,836		844,779	10.7%
Group Protection
Operating revenues	$	1,155	$	1,137	$	1,158	$	1,224	$	1,199	3.8%	$	2,293	$	2,424	5.7%
Insurance premiums		1,032		1,024		1,035		1,094		1,086	5.2%		2,055		2,179	6.0%
Consolidated
Adjusted operating revenues (1)	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%
Deposits		7,410		7,380		8,978		7,926		6,250	-15.7%		14,951		14,175	-5.2%
Net flows		1,901		1,752		3,108		2,162		(126)	NM		3,032		2,035	-32.9%
Average account values		255,782		260,173		267,538		266,633		260,501	1.8%		251,590		264,081	5.0%
(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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Sales
Annuities:
With guaranteed living benefits	$	1,241	$	1,243	$	1,428	$	1,185	$	824	-33.6%	$	2,301	$	2,008	-12.7%
Without guaranteed living benefits		1,115		1,191		1,298		1,454		1,392	24.8%		1,979		2,846	43.8%
Variable		2,356		2,434		2,726		2,639		2,216	-5.9%		4,280		4,854	13.4%
Fixed		1,298		1,027		1,176		1,058		299	-77.0%		2,882		1,357	-52.9%
Total Annuities	$	3,654	$	3,461	$	3,902	$	3,697	$	2,515	-31.2%	$	7,162	$	6,211	-13.3%
Retirement Plan Services:
First-year sales	$	610	$	723	$	1,227	$	867	$	827	35.6%	$	1,438	$	1,694	17.8%
Recurring deposits		1,463		1,511		1,436		1,912		1,480	1.2%		3,130		3,392	8.4%
Total Retirement Plan Services	$	2,073	$	2,234	$	2,663	$	2,779	$	2,307	11.3%	$	4,568	$	5,086	11.3%
Life Insurance:
UL	$	15	$	11	$	20	$	9	$	5	-66.7%	$	26	$	14	-46.2%
MoneyGuard®		56		67		124		34		36	-35.7%		107		70	-34.6%
IUL		25		37		76		21		23	-8.0%		41		44	7.3%
VUL		53		54		107		44		55	3.8%		105		98	-6.7%
Term		37		37		39		35		36	-2.7%		67		72	7.5%
Total individual life insurance		186		206		366		143		155	-16.7%		346		298	-13.9%
Executive Benefits		24		28		81		26		4	-83.3%		55		30	-45.5%
Total Life Insurance	$	210	$	234	$	447	$	169	$	159	-24.3%	$	401	$	328	-18.2%
Group Protection:
Life	$	42	$	131	$	108	$	50	$	47	11.9%	$	107	$	98	-8.4%
Disability		40		96		140		42		47	17.5%		82		89	8.5%
Dental		13		15		49		10		11	-15.4%		25		20	-20.0%
Total Group Protection	$	95	$	242	$	297	$	102	$	105	10.5%	$	214	$	207	-3.3%
Percent employee-paid		45.8%		41.5%		37.6%		59.9%		51.6%			49.6%		55.7%
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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Operating Revenues
Annuities	$	1,156	$	1,117	$	1,153	$	1,129	$	1,037	-10.3%	$	2,330	$	2,166	-7.0%
Retirement Plan Services		299		298		310		297		282	-5.7%		592		579	-2.2%
Life Insurance		1,802		2,098		1,838		1,821		1,639	-9.0%		3,502		3,460	-1.2%
Group Protection		1,155		1,137		1,158		1,224		1,199	3.8%		2,293		2,424	5.7%
Other Operations		58		50		54		38		52	-10.3%		116		90	-22.4%
Total segment operating revenues	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		126	$	118	$	132	$	120	$	111	-11.9%	$	243	$	232	-4.5%
Retirement Plan Services		76		73		78		72		68	-10.5%		150		141	-6.0%
Life Insurance		131		123		145		121		116	-11.5%		253		238	-5.9%
Group Protection		167		162		174		154		153	-8.4%		323		304	-5.9%
Other Operations		37		25		43		(4)		55	48.6%		78		51	-34.6%
Total	$	537	$	501	$	572	$	463	$	503	-6.3%	$	1,047	$	966	-7.7%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.9%		10.6%		11.4%		10.7%		10.7%			10.4%		10.7%
Retirement Plan Services		25.4%		24.6%		25.3%		24.4%		24.3%			25.4%		24.3%
Life Insurance		7.3%		5.9%		7.9%		6.7%		7.1%			7.2%		6.9%
Group Protection		14.4%		14.1%		15.0%		12.5%		12.7%			14.1%		12.6%
Other Operations		64.3%		49.6%		81.8%		-10.0%		107.5%			67.1%		57.1%
Total		12.0%		10.7%		12.7%		10.3%		12.0%			11.9%		11.1%
(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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	593	$	569	$	663	$	520	$	554	-6.6%	$	1,157	$	1,073	-7.3%
Commissions		689		707		867		706		621	-9.9%		1,338		1,327	-0.8%
Taxes, licenses and fees		74		86		87		90		79	6.8%		174		169	-2.9%
Interest and debt expense		70		71		72		68		68	-2.9%		141		137	-2.8%
Expenses associated with reserve financing
and unrelated letters of credit		22		22		23		23		23	4.5%		44		45	2.3%
Total adjusted operating commissions and other
expenses incurred		1,448		1,455		1,712		1,407		1,345	-7.1%		2,854		2,751	-3.6%
Less Amounts Capitalized
General and administrative expenses		(56)		(68)		(91)		(57)		(51)	8.9%		(110)		(107)	2.7%
Commissions		(348)		(374)		(523)		(362)		(291)	16.4%		(674)		(652)	3.3%
Taxes, licenses and fees		(15)		(14)		(26)		(13)		(13)	13.3%		(30)		(26)	13.3%
Total amounts capitalized		(419)		(456)		(640)		(432)		(355)	15.3%		(814)		(785)	3.6%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,029		999		1,072		975		990	-3.8%		2,040		1,966	-3.6%
Amortization
Amortization of DAC, VOBA and other intangibles		280		601		261		247		207	-26.1%		488		455	-6.8%
Total operating commissions and other expenses	$	1,309	$	1,600	$	1,333	$	1,222	$	1,197	-8.6%	$	2,528	$	2,421	-4.2%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Annuities
Earned rate on reserves		4.09%		4.04%		3.84%		3.73%		3.69%	(40)		4.03%		3.71%	(32)
Variable investment income on reserves (1)		0.09%		0.09%		0.20%		0.03%		0.10%	1		0.07%		0.06%	(1)
Net investment income yield on reserves		4.18%		4.13%		4.04%		3.76%		3.79%	(39)		4.10%		3.77%	(33)
Interest rate credited to contract holders		2.35%		2.46%		2.47%		2.31%		2.26%	(9)		2.37%		2.28%	(9)
Interest rate spread		1.83%		1.67%		1.57%		1.45%		1.53%	(30)		1.73%		1.49%	(24)
Base spreads excluding variable investment income		1.74%		1.58%		1.37%		1.42%		1.43%	(31)		1.66%		1.43%	(23)
Retirement Plan Services
Earned rate on reserves		4.13%		4.13%		4.07%		3.95%		3.85%	(28)		4.16%		3.90%	(26)
Variable investment income on reserves (1)		0.07%		0.16%		0.24%		0.05%		0.06%	(1)		0.06%		0.06%	-
Net investment income yield on reserves		4.20%		4.29%		4.31%		4.00%		3.91%	(29)		4.22%		3.96%	(26)
Interest rate credited to contract holders		2.90%		2.90%		2.89%		2.87%		2.86%	(4)		2.91%		2.88%	(3)
Interest rate spread		1.30%		1.39%		1.42%		1.13%		1.05%	(25)		1.31%		1.08%	(23)
Base spreads excluding variable investment income		1.23%		1.23%		1.18%		1.08%		0.99%	(24)		1.25%		1.02%	(23)
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.87%		4.86%		4.84%		4.77%		4.78%	(9)		4.86%		4.77%	(9)
Variable investment income on reserves (1)		0.46%		-0.38%		0.33%		0.31%		-0.72%	(118)		0.26%		-0.21%	(47)
Net investment income yield on reserves		5.33%		4.48%		5.17%		5.08%		4.06%	(127)		5.12%		4.56%	(56)
Interest rate credited to contract holders		3.68%		3.71%		3.71%		3.80%		3.81%	13		3.68%		3.80%	12
Interest rate spread		1.65%		0.77%		1.46%		1.28%		0.25%	(140)		1.44%		0.76%	(68)
Base spreads excluding variable investment income		1.19%		1.15%		1.13%		0.97%		0.97%	(22)		1.18%		0.97%	(21)
Total (2)
Earned rate (3)		4.35%		4.39%		4.33%		4.29%		4.06%	(29)		4.33%		4.18%	(15)
Variable investment income (1) (3)		0.32%		-0.19%		0.28%		0.19%		-0.34%	(66)		0.20%		-0.08%	(28)
Net investment income yield (3)		4.67%		4.20%		4.61%		4.48%		3.72%	(95)		4.53%		4.10%	(43)
(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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	137	$	79	$	78	$	53	$	22	-83.9%	$	345	$	75	-78.3%
Fee income		586		596		606		593		567	-3.2%		1,154		1,160	0.5%
Net investment income		286		287		309		326		270	-5.6%		544		595	9.4%
Operating realized gain (loss)		46		51		53		54		49	6.5%		87		104	19.5%
Amortization of deferred gain		8		8		7		8		8	0.0%		15		16	6.7%
Other revenues		93		96		100		95		121	30.1%		185		216	16.8%
Total operating revenues		1,156		1,117		1,153		1,129		1,037	-10.3%		2,330		2,166	-7.0%
Operating expenses:
Interest credited		163		183		190		192		192	17.8%		325		384	18.2%
Benefits		219		273		163		170		127	-42.0%		503		297	-41.0%
Commissions incurred		287		295		322		311		246	-14.3%		555		558	0.5%
Other expenses incurred		244		240		257		250		221	-9.4%		475		470	-1.1%
Amounts capitalized		(161)		(175)		(198)		(191)		(122)	24.2%		(308)		(313)	-1.6%
Amortization		95		116		107		95		101	6.3%		184		196	6.5%
Total operating expenses		847		932		841		827		765	-9.7%		1,734		1,592	-8.2%
Income (loss) from operations before taxes		309		185		312		302		272	-12.0%		596		574	-3.7%
Federal income tax expense (benefit)		43		16		43		41		35	-18.6%		79		76	-3.8%
Income (loss) from operations	$	266	$	169	$	269	$	261	$	237	-10.9%	$	517	$	498	-3.7%
Effective Federal Income Tax Rate		13.9%		8.4%		13.9%		13.4%		12.9%			13.4%		13.2%
Average Equity, Excluding Goodwill and AOCI	$	4,741	$	4,846	$	4,883	$	4,887	$	5,002	5.5%	$	4,763	$	4,945	3.8%
ROE, Excluding Goodwill and AOCI		22.5%		14.0%		22.0%		21.4%		19.0%			21.7%		20.2%
Return on Average Account Values		81		51		78		76		71	(10)		80		73	(7)
Income (Loss) from Operations
Variable annuity		232		198		233		232		207	-10.8%		447		439	-1.8%
Fixed annuity		34		(29)		36		29		30	-11.8%		70		59	-15.7%
Account Values
Variable annuity account values:
Average	$	117,254	$	118,680	$	121,632	$	120,972	$	116,861	-0.3%	$	115,531	$	118,979	3.0%
End-of-period		119,005		118,424		125,492		108,689		121,712	2.3%		119,005		121,712	2.3%
Fixed annuity account values:
Average		14,421		15,242		16,185		16,950		17,336	20.2%		13,906		17,135	23.2%
End-of-period		14,839		15,611		16,636		17,208		17,349	16.9%		14,839		17,349	16.9%
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 Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	62	$	63	$	66	$	61	$	58	-6.5%	$	123	$	119	-3.3%
Net investment income		231		229		239		229		218	-5.6%		457		447	-2.2%
Other revenues		6		6		5		7		6	0.0%		12		13	8.3%
Total operating revenues		299		298		310		297		282	-5.7%		592		579	-2.2%
Operating expenses:
Interest credited		145		147		148		150		153	5.5%		290		303	4.5%
Benefits		1		1		1		-		1	0.0%		1		1	0.0%
Commissions incurred		19		20		20		19		18	-5.3%		39		37	-5.1%
Other expenses incurred		83		80		86		82		77	-7.2%		167		159	-4.8%
Amounts capitalized		(5)		(5)		(7)		(6)		(6)	-20.0%		(10)		(12)	-20.0%
Amortization		7		6		8		7		6	-14.3%		13		13	0.0%
Total operating expenses		250		249		256		252		249	-0.4%		500		501	0.2%
Income (loss) from operations before taxes		49		49		54		45		33	-32.7%		92		78	-15.2%
Federal income tax expense (benefit)		7		5		7		5		3	-57.1%		11		9	-18.2%
Income (loss) from operations	$	42	$	44	$	47	$	40	$	30	-28.6%	$	81	$	69	-14.8%
Effective Federal Income Tax Rate		14.3%		9.3%		13.7%		11.3%		10.1%			11.6%		10.8%
Average Equity, Excluding Goodwill and AOCI	$	1,429	$	1,447	$	1,440	$	1,415	$	1,410	-1.3%	$	1,415	$	1,413	-0.1%
ROE, Excluding Goodwill and AOCI		11.7%		12.2%		13.0%		11.2%		8.5%			11.5%		9.8%
Pre-tax Net Margin		31.7%		32.4%		33.6%		30.4%		25.8%			30.4%		28.3%
Return on Average Account Values		23		24		25		21		16	(7)		23		18	(5)
Net Flows by Market
Small Market		25		117		118		141		30	20.0%	$	213	$	171	-19.7%
Mid - Large Market		532		436		651		790		(1,084)	NM		249		(294)	NM
Multi-Fund® and Other		(250)		(281)		(347)		(260)		(153)	38.8%		(536)		(413)	22.9%
Net Flows – Trailing Twelve Months	$	1,510	$	371	$	620	$	1,672	$	158	-89.5%	$	1,510	$	158	-89.5%
Page 14

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	224	$	219	$	228	$	224	$	230	2.7%	$	438	$	454	3.7%
Fee income		868		1,275		898		893		830	-4.4%		1,710		1,723	0.8%
Net investment income		707		601		706		697		577	-18.4%		1,351		1,274	-5.7%
Operating realized gain (loss)		(2)		(1)		(1)		(3)		(2)	0.0%		(5)		(5)	0.0%
Amortization of deferred gain on
business sold through reinsurance		-		-		-		3		3	NM		-		6	NM
Other revenues		5		4		7		7		1	-80.0%		8		8	0.0%
Total operating revenues		1,802		2,098		1,838		1,821		1,639	-9.0%		3,502		3,460	-1.2%
Operating expenses:
Interest credited		355		360		364		371		375	5.6%		709		746	5.2%
Benefits		913		1,426		942		954		1,084	18.7%		1,814		2,037	12.3%
Commissions incurred		197		212		337		191		173	-12.2%		383		364	-5.0%
Other expenses incurred		214		215		256		209		195	-8.9%		426		405	-4.9%
Amounts capitalized		(232)		(246)		(397)		(216)		(202)	12.9%		(452)		(418)	7.5%
Amortization		148		449		114		103		66	-55.4%		219		169	-22.8%
Total operating expenses		1,595		2,416		1,616		1,612		1,691	6.0%		3,099		3,303	6.6%
Income (loss) from operations before taxes		207		(318)		222		209		(52)	NM		403		157	-61.0%
Federal income tax expense (benefit)		39		(73)		43		38		(15)	NM		78		23	-70.5%
Income (loss) from operations	$	168	$	(245)	$	179	$	171	$	(37)	NM	$	325	$	134	-58.8%
Effective Federal Income Tax Rate		19.1%		22.9%		19.2%		18.1%		28.9%			19.3%		14.5%
Average Equity, Excluding Goodwill and AOCI	$	8,697	$	8,601	$	8,502	$	8,798	$	8,977	3.2%	$	8,548	$	8,888	4.0%
ROE, Excluding Goodwill and AOCI		7.7%		-11.4%		8.4%		7.8%		-1.6%			7.6%		3.0%
Average Account Values	$	51,495	$	52,050	$	53,243	$	52,866	$	52,693	2.3%	$	50,925	$	52,780	3.6%
In-Force Face Amount
UL and other	$	347,674	$	348,836	$	357,726	$	356,889	$	357,690	2.9%	$	347,674	$	357,690	2.9%
Term insurance		433,706		451,117		472,050		486,311		505,251	16.5%		433,706		505,251	16.5%
Total in-force face amount	$	781,380	$	799,953	$	829,776	$	843,200	$	862,941	10.4%	$	781,380	$	862,941	10.4%
Page 15

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,032	$	1,024	$	1,035	$	1,094	$	1,086	5.2%	$	2,055	$	2,179	6.0%
Net investment income		81		72		81		81		69	-14.8%		154		151	-1.9%
Other revenues		42		41		42		49		44	4.8%		84		94	11.9%
Total operating revenues		1,155		1,137		1,158		1,224		1,199	3.8%		2,293		2,424	5.7%
Operating expenses:
Interest credited		1		2		1		2		1	0.0%		3		3	0.0%
Benefits		758		756		768		862		843	11.2%		1,511		1,706	12.9%
Commissions incurred		92		88		95		87		97	5.4%		184		183	-0.5%
Other expenses incurred		208		212		232		200		198	-4.8%		411		397	-3.4%
Amounts capitalized		(20)		(29)		(38)		(19)		(23)	-15.0%		(43)		(42)	2.3%
Amortization		30		30		32		42		34	13.3%		72		77	6.9%
Total operating expenses		1,069		1,059		1,090		1,174		1,150	7.6%		2,138		2,324	8.7%
Income (loss) from operations before taxes		86		78		68		50		49	-43.0%		155		100	-35.5%
Federal income tax expense (benefit)		18		17		14		10		10	-44.4%		32		21	-34.4%
Income (loss) from operations	$	68	$	61	$	54	$	40	$	39	-42.6%	$	123	$	79	-35.8%
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	$	2,360	$	2,492	$	2,554	$	2,601	$	2,628	11.4%	$	2,262	$	2,615	15.6%
ROE, Excluding Goodwill and AOCI		11.5%		9.9%		8.4%		6.1%		5.9%			10.9%		6.0%
Loss Ratios by Product Line
Life		71.2%		70.5%		65.7%		79.4%		82.6%			71.3%		81.0%
Disability		74.9%		76.4%		80.5%		78.3%		78.7%			75.2%		78.5%
Dental		75.0%		73.4%		70.7%		74.6%		40.2%			73.6%		57.7%
Total		73.6%		74.1%		74.4%		78.5%		77.8%			73.6%		78.1%
Page 16

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Other Operations
Operating revenues:
Insurance premiums	$	5	$	3	$	4	$	2	$	5	0.0%	$	7	$	7	0.0%
Net investment income		50		46		46		42		38	-24.0%		100		80	-20.0%
Other revenues		3		1		4		(6)		9	200.0%		9		3	-66.7%
Total operating revenues		58		50		54		38		52	-10.3%		116		90	-22.4%
Operating expenses:
Interest credited		15		14		14		12		11	-26.7%		30		23	-23.3%
Benefits		25		42		23		16		30	20.0%		46		46	0.0%
Commissions and other expenses		18		5		17		(22)		36	100.0%		41		15	-63.4%
Interest and debt expenses		70		71		72		68		68	-2.9%		141		137	-2.8%
Strategic digitization expense		15		16		18		12		14	-6.7%		31		26	-16.1%
Total operating expenses		143		148		144		86		159	11.2%		289		247	-14.5%
Income (loss) from operations before taxes		(85)		(98)		(90)		(48)		(107)	-25.9%		(173)		(157)	9.2%
Federal income tax expense (benefit)		(19)		(23)		(23)		(1)		(25)	-31.6%		(46)		(29)	37.0%
Income (loss) from operations	$	(66)	$	(75)	$	(67)	$	(47)	$	(82)	-24.2%	$	(127)	$	(128)	-0.8%
Page 17

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	9,689	$	8,832	$	7,731	$	7,928	$	9,457	-2.4%	$	10,512	$	7,928	-24.6%
Business acquired (sold) through reinsurance		-		-		-		(10)		-	NM		-		(10)	NM
Cumulative effect from adoption of new
accounting standard		-		-		-		5		-	NM		-		5	NM
Deferrals		427		459		643		435		355	-16.9%		832		790	-5.0%
Operating amortization		(279)		(604)		(262)		(243)		(204)	26.9%		(488)		(447)	8.4%
Deferrals, net of operating amortization		148		(145)		381		192		151	2.0%		344		343	-0.3%
Amortization associated with benefit ratio unlocking		(7)		3		(16)		66		(4)	42.9%		(32)		62	293.8%
Adjustment related to realized (gains) losses		11		(9)		22		58		33	200.0%		42		91	116.7%
Adjustment related to unrealized (gains) losses		(1,009)		(950)		(190)		1,218		(2,396)	NM		(2,034)		(1,178)	42.1%
Balance as of end-of-period	$	8,832	$	7,731	$	7,928	$	9,457	$	7,241	-18.0%	$	8,832	$	7,241	-18.0%
DFEL
Balance as of beginning-of-period	$	2,203	$	1,647	$	482	$	650	$	1,379	-37.4%	$	2,769	$	650	-76.5%
Cumulative effect from adoption of new
accounting standards		-		-		-		4		-	NM		-		4	NM
Deferrals		245		264		368		240		252	2.9%		462		492	6.5%
Operating amortization		(142)		(547)		(163)		(160)		(111)	21.8%		(255)		(270)	-5.9%
Deferrals, net of operating amortization		103		(283)		205		80		141	36.9%		207		222	7.2%
Amortization associated with benefit ratio unlocking		(1)		-		(2)		8		(2)	-100.0%		(4)		6	250.0%
Adjustment related to realized (gains) losses		(3)		(3)		3		17		12	NM		-		29	NM
Adjustment related to unrealized (gains) losses		(655)		(879)		(38)		620		(1,097)	-67.5%		(1,325)		(478)	63.9%
Balance as of end-of-period	$	1,647	$	482	$	650	$	1,379	$	433	-73.7%	$	1,647	$	433	-73.7%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,676	$	5,727	$	5,750	$	6,382	$	5,378	-5.2%	$	5,676	$	5,378	-5.2%
Page 18

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Fixed Annuities
Balance as of beginning-of-period	$	22,941	$	23,836	$	24,448	$	25,384	$	25,740	12.2%	$	21,666	$	25,384	17.2%
Gross deposits		1,298		1,027		1,176		1,058		299	-77.0%		2,882		1,357	-52.9%
Full surrenders and deaths		(501)		(441)		(355)		(400)		(384)	23.4%		(970)		(784)	19.2%
Other contract benefits		(135)		(145)		(170)		(156)		(143)	-5.9%		(286)		(299)	-4.5%
Net flows		662		441		651		502		(228)	NM		1,626		274	-83.1%
Contract holder assessments		(10)		(10)		(11)		(13)		(16)	-60.0%		(18)		(28)	-55.6%
Reinvested interest credited		243		181		296		(133)		305	25.5%		562		171	-69.6%
Balance as of end-of-period, gross		23,836		24,448		25,384		25,740		25,801	8.2%		23,836		25,801	8.2%
Reinsurance ceded		(8,997)		(8,837)		(8,748)		(8,532)		(8,452)	6.1%		(8,997)		(8,452)	6.1%
Balance as of end-of-period, net	$	14,839	$	15,611	$	16,636	$	17,208	$	17,349	16.9%	$	14,839	$	17,349	16.9%
Variable Annuities
Balance as of beginning-of-period	$	116,514	$	119,005	$	118,424	$	125,492	$	108,689	-6.7%	$	108,536	$	125,492	15.6%
Gross deposits		2,356		2,434		2,726		2,639		2,216	-5.9%		4,280		4,854	13.4%
Full surrenders and deaths		(1,722)		(1,711)		(1,642)		(1,602)		(1,068)	38.0%		(3,180)		(2,670)	16.0%
Other contract benefits		(919)		(911)		(1,006)		(1,011)		(862)	6.2%		(1,857)		(1,873)	-0.9%
Net flows		(285)		(188)		78		26		286	200.4%		(757)		311	141.1%
Contract holder assessments		(619)		(636)		(638)		(632)		(611)	1.3%		(1,221)		(1,243)	-1.8%
Change in market value and reinvestment		3,395		243		7,628		(16,197)		13,349	293.2%		12,447		(2,847)	NM
Balance as of end-of-period, gross		119,005		118,424		125,492		108,689		121,713	2.3%		119,005		121,713	2.3%
Reinsurance ceded		-		-		-		-		(1)	NM		-		(1)	NM
Balance as of end-of-period, gross and net	$	119,005	$	118,424	$	125,492	$	108,689	$	121,712	2.3%	$	119,005	$	121,712	2.3%
Total
Balance as of beginning-of-period	$	139,455	$	142,841	$	142,872	$	150,876	$	134,429	-3.6%	$	130,202	$	150,876	15.9%
Gross deposits		3,654		3,461		3,902		3,697		2,515	-31.2%		7,162		6,211	-13.3%
Full surrenders and deaths		(2,223)		(2,152)		(1,997)		(2,002)		(1,452)	34.7%		(4,150)		(3,454)	16.8%
Other contract benefits		(1,054)		(1,056)		(1,176)		(1,167)		(1,005)	4.6%		(2,143)		(2,172)	-1.4%
Net flows		377		253		729		528		58	-84.6%		869		585	-32.7%
Contract holder assessments		(629)		(646)		(649)		(645)		(627)	0.3%		(1,239)		(1,271)	-2.6%
Change in market value and reinvestment		3,638		424		7,924		(16,330)		13,654	275.3%		13,009		(2,676)	NM
Balance as of end-of-period, gross		142,841		142,872		150,876		134,429		147,514	3.3%		142,841		147,514	3.3%
Reinsurance ceded		(8,997)		(8,837)		(8,748)		(8,532)		(8,453)	6.0%		(8,997)		(8,453)	6.0%
Balance as of end-of-period, net	$	133,844	$	134,035	$	142,128	$	125,897	$	139,061	3.9%	$	133,844	$	139,061	3.9%
Page 19

Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
General Account
Balance as of beginning-of-period	$	19,914	$	20,076	$	20,337	$	20,558	$	21,335	7.1%	$	19,766	$	20,558	4.0%
Gross deposits		393		469		663		609		817	107.9%		850		1,426	67.8%
Withdrawals		(470)		(490)		(682)		(565)		(752)	-60.0%		(989)		(1,317)	-33.2%
Net flows		(77)		(21)		(19)		44		65	184.4%		(139)		109	178.4%
Transfers between fixed and variable accounts		97		136		94		587		124	27.8%		168		711	NM
Contract holder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(6)		(6)	0.0%
Reinvestment interest credited		145		149		149		149		151	4.1%		287		300	4.5%
Balance as of end-of-period	$	20,076	$	20,337	$	20,558	$	21,335	$	21,672	7.9%	$	20,076	$	21,672	7.9%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	51,885	$	53,938	$	54,227	$	58,131	$	48,301	-6.9%	$	47,289	$	58,131	22.9%
Gross deposits		1,680		1,765		2,000		2,170		1,490	-11.3%		3,718		3,660	-1.6%
Withdrawals		(1,296)		(1,472)		(1,559)		(1,543)		(2,762)	NM		(3,653)		(4,305)	-17.8%
Net flows		384		293		441		627		(1,272)	NM		65		(645)	NM
Transfers between fixed and variable accounts		(141)		(190)		(171)		(610)		(161)	-14.2%		(352)		(771)	NM
Contract holder assessments		(52)		(54)		(55)		(54)		(49)	5.8%		(103)		(103)	0.0%
Change in market value and reinvestment		1,862		240		3,689		(9,793)		8,067	NM		7,039		(1,726)	NM
Balance as of end-of-period	$	53,938	$	54,227	$	58,131	$	48,301	$	54,886	1.8%	$	53,938	$	54,886	1.8%
Total
Balance as of beginning-of-period	$	71,799	$	74,014	$	74,564	$	78,689	$	69,636	-3.0%	$	67,055	$	78,689	17.3%
Gross deposits		2,073		2,234		2,663		2,779		2,307	11.3%		4,568		5,086	11.3%
Withdrawals		(1,766)		(1,962)		(2,241)		(2,108)		(3,514)	-99.0%		(4,642)		(5,622)	-21.1%
Net flows		307		272		422		671		(1,207)	NM		(74)		(536)	NM
Transfers between fixed and variable accounts		(44)		(54)		(77)		(23)		(37)	15.9%		(184)		(60)	67.4%
Contract holder assessments		(55)		(57)		(58)		(57)		(52)	5.5%		(109)		(109)	0.0%
Change in market value and reinvestment		2,007		389		3,838		(9,644)		8,218	NM		7,326		(1,426)	NM
Balance as of end-of-period	$	74,014	$	74,564	$	78,689	$	69,636	$	76,558	3.4%	$	74,014	$	76,558	3.4%
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Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
General Account
Balance as of beginning-of-period	$	37,275	$	37,438	$	37,582	$	38,141	$	38,054	2.1%	$	37,289	$	38,141	2.3%
Deposits		1,117		1,137		1,525		996		964	-13.7%		2,144		1,960	-8.6%
Withdrawals and deaths		(195)		(243)		(156)		(380)		(263)	-34.9%		(527)		(643)	-22.0%
Net flows		922		894		1,369		616		701	-24.0%		1,617		1,317	-18.6%
Contract holder assessments		(1,107)		(1,094)		(1,184)		(1,075)		(1,073)	3.1%		(2,148)		(2,148)	0.0%
Reinvested interest credited		348		344		374		372		352	1.1%		680		724	6.5%
Balance as of end-of-period, gross		37,438		37,582		38,141		38,054		38,034	1.6%		37,438		38,034	1.6%
Reinsurance ceded		(666)		(660)		(656)		(649)		(646)	3.0%		(666)		(646)	3.0%
Balance as of end-of-period, net	$	36,772	$	36,922	$	37,485	$	37,405	$	37,388	1.7%	$	36,772	$	37,388	1.7%
Separate Account
Balance as of beginning-of-period	$	15,346	$	15,941	$	16,136	$	17,646	$	14,782	-3.7%	$	13,735	$	17,646	28.5%
Deposits		566		548		888		454		464	-18.0%		1,077		918	-14.8%
Withdrawals and deaths		(271)		(215)		(300)		(107)		(142)	47.6%		(457)		(249)	45.5%
Net flows		295		333		588		347		322	9.2%		620		669	7.9%
Contract holder assessments		(195)		(197)		(230)		(204)		(211)	-8.2%		(388)		(415)	-7.0%
Change in market value and reinvestment		495		59		1,152		(3,007)		2,458	NM		1,974		(549)	NM
Balance as of end-of-period, gross		15,941		16,136		17,646		14,782		17,351	8.8%		15,941		17,351	8.8%
Reinsurance ceded		(844)		(829)		(876)		(712)		(830)	1.7%		(844)		(830)	1.7%
Balance as of end-of-period, net	$	15,097	$	15,307	$	16,770	$	14,070	$	16,521	9.4%	$	15,097	$	16,521	9.4%
Total
Balance as of beginning-of-period	$	52,621	$	53,379	$	53,718	$	55,787	$	52,836	0.4%	$	51,024	$	55,787	9.3%
Deposits		1,683		1,685		2,413		1,450		1,428	-15.2%		3,221		2,878	-10.6%
Withdrawals and deaths		(466)		(458)		(456)		(487)		(405)	13.1%		(984)		(892)	9.3%
Net flows		1,217		1,227		1,957		963		1,023	-15.9%		2,237		1,986	-11.2%
Contract holder assessments		(1,302)		(1,291)		(1,414)		(1,279)		(1,284)	1.4%		(2,536)		(2,563)	-1.1%
Change in market value and reinvestment		843		403		1,526		(2,635)		2,810	233.3%		2,654		175	-93.4%
Balance as of end-of-period, gross		53,379		53,718		55,787		52,836		55,385	3.8%		53,379		55,385	3.8%
Reinsurance ceded		(1,510)		(1,489)		(1,532)		(1,361)		(1,476)	2.3%		(1,510)		(1,476)	2.3%
Balance as of end-of-period, net	$	51,869	$	52,229	$	54,255	$	51,475	$	53,909	3.9%	$	51,869	$	53,909	3.9%
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Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)
	As of 6/30/19				As of 12/31/19				As of 6/30/20
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities, net of ACL:
Corporate bonds	$	84,790		81.2%	$	88,716		80.7%	$	95,390		80.7%
U.S. government bonds		430		0.4%		435		0.4%		504		0.4%
State and municipal bonds		5,669		5.4%		5,884		5.4%		6,393		5.4%
Foreign government bonds		440		0.4%		393		0.4%		436		0.4%
Residential mortgage-backed securities		3,292		3.2%		3,241		2.9%		3,272		2.8%
Commercial mortgage-backed securities		965		0.9%		1,083		1.0%		1,226		1.0%
Asset-backed securities		3,542		3.4%		4,889		4.4%		5,716		4.8%
Hybrid and redeemable preferred securities		605		0.6%		559		0.5%		582		0.5%
Total fixed maturity AFS securities, net of ACL		99,733		95.5%		105,200		95.7%		113,519		96.0%
Trading securities		4,522		4.3%		4,673		4.2%		4,651		3.9%
Equity securities		196		0.2%		103		0.1%		87		0.1%
Total fixed maturity AFS securities, net of ACL, and trading and equity securities	$	104,451		100.0%	$	109,976		100.0%	$	118,257		100.0%
Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	91,190		95.4%	$	94,295		95.8%	$	98,817		95.9%
Trading securities		4,227		4.4%		4,005		4.1%		4,096		4.0%
Equity securities		205		0.2%		123		0.1%		112		0.1%
Total fixed maturity AFS, trading and equity securities	$	95,622		100.0%	$	98,423		100.0%	$	103,025		100.0%
Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				96.1%				96.3%				95.8%
Below investment grade				3.9%				3.7%				4.2%
Page 22

Lincoln Financial Group
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	44	$	50	$	52	$	51	$	47	6.8%	$	82	$	99	20.7%
Total excluded realized gain (loss)		(161)		(61)		(171)		(75)		(694)	NM		(562)		(770)	-37.0%
Total realized gain (loss), pre-tax	$	(117)	$	(11)	$	(119)	$	(24)	$	(647)	NM	$	(480)	$	(671)	-39.8%
Reconciliation of Excluded Realized Gain (Loss)
Net of Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(128)	$	(49)	$	(135)	$	(60)	$	(548)	NM	$	(443)	$	(609)	-37.5%
Benefit ratio unlocking		46		(2)		91		(349)		282	NM		188		(67)	NM
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(82)	$	(51)	$	(44)	$	(409)	$	(266)	NM	$	(255)	$	(676)	NM
Components of Excluded Realized Gain (Loss) Net
of Benefit Ratio Unlocking, After-Tax
Credit loss expense on mortgage loans on real estate	$	-	$	-	$	-	$	(51)	$	(79)	NM	$	-	$	(130)	NM
Credit loss expense on other financial assets		-		-		-		(16)		(1)	NM		-		(17)	NM
OTTI		(3)		(2)		(1)		-		-	100.0%		(9)		-	100.0%
Realized gain (loss) related to certain financial assets		(7)		(12)		(8)		14		(36)	NM		(21)		(22)	-4.8%
Realized gain (loss) on equity securities		1		(14)		3		(15)		2	100.0%		6		(12)	NM
Realized gain (loss) on the mark-to-market on certain
instruments		(28)		19		9		38		(1)	96.4%		(122)		36	129.5%
Realized gain (loss) related to financial assets, after-tax		(37)		(9)		3		(30)		(115)	NM		(146)		(145)	0.7%
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(19)		(65)		2		(496)		(71)	NM		(33)		(568)	NM
GLB non-performance risk component		(2)		43		(55)		147		(79)	NM		(30)		69	NM
Total variable annuity net derivative results		(21)		(22)		(53)		(349)		(150)	NM		(63)		(499)	NM
Indexed annuity forward-starting option		(24)		(20)		6		(30)		(1)	95.8%		(46)		(32)	30.4%
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(82)	$	(51)	$	(44)	$	(409)	$	(266)	NM	$	(255)	$	(676)	NM
Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Revenues
Total revenues	$	4,310	$	4,638	$	4,344	$	4,425	$	3,517	-18.4%	$	8,275	$	7,942	-4.0%
Less:
Excluded realized gain (loss)		(161)		(61)		(171)		(75)		(694)	NM		(562)		(770)	-37.0%
Amortization of DFEL associated with
benefit ratio unlocking		1		(1)		2		(9)		2	100.0%		4		(7)	NM
Adjusted operating revenues	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%
Net Income
Net income (loss)	$	363	$	(161)	$	431	$	52	$	(94)	NM	$	616	$	(42)	NM
Less:
Excluded realized gain (loss), after-tax		(128)		(49)		(135)		(60)		(548)	NM		(443)		(609)	-37.5%
Benefit ratio unlocking, after-tax		46		(2)		91		(349)		282	NM		188		(67)	NM
Net impact from the Tax Cuts and Jobs Act		-		-		17		-		-	NM		-		-	NM
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(33)		(31)		(24)		(4)		(3)	90.9%		(48)		(6)	87.5%
Gain (loss) on early extinguishment of debt, after-tax		-		(33)		-		-		(12)	NM		-		(12)	NM
Total adjustments		(115)		(115)		(51)		(413)		(281)	NM		(303)		(694)	NM
Adjusted income (loss) from operations	$	478	$	(46)	$	482	$	465	$	187	-60.9%	$	919	$	652	-29.1%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM
Less:
Excluded realized gain (loss), after-tax		(0.63)		(0.24)		(0.68)		(0.30)		(2.85)	NM		(2.17)		(3.13)	-44.2%
Benefit ratio unlocking, after-tax		0.22		(0.01)		0.46		(1.77)		1.46	NM		0.92		(0.35)	NM
Net impact from the Tax Cuts and Jobs Act		-		-		0.08		-		-	NM		-		-	NM
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.16)		(0.16)		(0.12)		(0.02)		(0.01)	93.8%		(0.24)		(0.04)	83.3%
Gain (loss) on early extinguishment of debt, after-tax		-		(0.17)		-		-		(0.06)	NM		-		(0.06)	NM
Adjustment attributable to using different average
diluted shares for adjusted income from operations
as compared to net loss		-		-		-		-		-	NM		-		0.04	NM
Adjusted income (loss) from operations	$	2.36	$	(0.25)	$	2.41	$	2.24	$	0.97	-58.9%	$	4.50	$	3.27	-27.3%
Page 24

EX-99.3

This document may not be accurate after its date, and LNC does not undertake to update or keep it accurate after such date. Second Quarter 2020 Earnings & Investment Portfolio Supplement August 5, 2020

Forward looking statements –cautionary language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:•The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19, and uncertainty surrounding the length and severity of future impacts on the global economy and on our business, results of operations and financial condition;•Further deterioration in general economic and business conditions that may affect account values, investment results, guaranteedbenefit liabilities, premium levels and claims experience;•Adverse global capital and credit market conditions could affect our ability to raise capital, if necessary, and may cause ustorealize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;•Because of our holding company structure, the inability of our subsidiaries to pay dividends to the holding company in sufficient amounts could harm the holding company’s ability to meet its obligations;•Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees; the impact of U.S. federal tax reform legislation on our business, earnings and capital; and the impact of any “best interest” standards of care adopted by the Securities and Exchange Commission (“SEC”) or other regulations adopted by federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker-dealers;•Actions taken by reinsurers to raise rates on in-force business;•Further declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses, estimated gross profits and demand for our products;•Rapidly increasing interest rates causing contract holders to surrender life insurance and annuity policies, thereby causing realized investment losses, and reduced hedge performance related to variable annuities;•Uncertainty about the effect of continuing promulgation and implementation of rules and regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act on us, the economy and the financial services sector in particular;•The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;•A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; an acceleration of the net amortization of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”); and an increase in liabilities related to guaranteed benefit features of our subsidiaries’ variable annuity products;

Forward looking statements –cautionary language (contd.)•Ineffectiveness of our risk management policies and procedures, including various hedging strategies used to offset the effect of changes in the value of liabilities due to changes in the level and volatility of the equity markets and interest rates;•A deviation in actual experience regarding future persistency, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products, in establishing related insurance reserves and in the net amortization of DAC, VOBA, DSI and DFEL, which may reduce future earnings;•Changes in accounting principles that may affect our financial statements;•Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;•Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity;•Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;•Inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others;•Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems from cyberattacks or other breaches of our data security systems;•The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items, including the successful implementation of integration strategies or the achievement of anticipated synergies and operational efficiencies related to an acquisition;•The adequacy and collectability of reinsurance that we have purchased;•The continuation of the COVID-19 pandemic, or future outbreaks of COVID-19 or other pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely affect our businesses and the cost and availability of reinsurance;•Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affectthe level of premiums and fees that our subsidiaries can charge for their products;•The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and•The unanticipated loss of key management, financial planners or wholesalers.The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K and our Form 10-Q for the quarter ended March 31, 2020, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this presentation.The reporting of Risk Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for usein connection with any marketing, advertising or promotional activities.

Special note regarding data•All information regarding LNC’s investment portfolio excludes assets related to certain modified coinsurance (“Modco”) transactions. The Modcoinvestment portfolio has counterparty protections in place including investment guidelines, as well as additional support through over-collateralization and a letter of credit that were established to meet LNC’s risk management objectives.

2Q20 earnings summary Item2Q192Q20CommentaryAdjusted income from operations EPS(1)  $2.36$0.97ImpactsCOVID-19(2)  -$(0.65-0.75)•Results slightly above previously communicated expectation of ~$9M after-tax impact for every 10K COVID-19 related deaths in the U.S. Alternative investment income(3)  $0.09$(0.62)•Results consistent with expectations for negative returns given decline in equity markets in 1Q20 and one quarter lag in reporting: -7% quarterly return in 2Q20Earnings results largely impacted by COVID-19 and alternative investments, as expected (1) See Appendix for a reconciliation of this non-GAAP financial measure to its most comparable GAAP measure. (2) COVID-19 includes impacts to the Life Insurance and Group Protection businesses.  (3) Alternative investment income impact is relative to 10 percent pre-tax annualized return target.

Continuing to maintain already strong balance sheet Data as of 6/30/20.Strong RBC ratio of ~444%Prefunded debt maturities until2023High-quality portfolio96%investment grade

Strong long-term alternative returns supported by diversification Diversified alternative investment strategy markets Mezzanine 15% Buyout -Large 14% Buyout -Medium 12% Growth Equity 11% Infrastructure 8% Buyout -Small 8% Energy 6% Real Estate 5% Power Generation 4% Other 4% Hedge Funds 13% (PE)–250+ private equity limited partnerships across 10 strategies–2,100+ private equity investments • Hedge funds–20 hedge funds across 6 sub-strategies Alternative portfolio annualized return of 9.7% (2012 to 2019) 15.0% 9.2% 12.0% 7.5% 6.4% 12.2% 14.0% 1.2% 2.6% -7.0% -10% -5% 0% 5% 10% 15% 20% 2012 2013 2014 2015 2016 2017 2018 2019 1Q20 2Q20 1Q20 represents 12/31/19 to 3/31/20. 2Q20 represents 3/31/20 to 6/30/20. •Solid long-term results with expected variability from year to year • Shifted the mix towards higher returning private equity • Expect strong recovery in 3Q returns driven by a rebound in 2Q equity Private equity Quarterly Return Avg. Private equity 87% PE as % of Alts 70% 62% 65% 67% 79% 84% 87% 88% 88% 87% Data as of 6/30/20.

 Managing credit risk more defensively New money allocation and de-risking actions reduced BBB-and BIG exposure BBB-as % of rated assets 9.3% 7.9% 7.4% 1Q15 1Q20 2Q20 BIG as % of rated assets 4.9% 4.3% 4.2% 1Q15 1Q20 2Q20 De-risking based on name by name scenario analysis Book value of sales since 1Q15 $5.2 $1.0 $0 $2 $4 $6 $8 1Q15 - 2Q20 1Q15-1Q20 2Q20 $6.2B ~90% of sales were rated BBB-and below ~70% of sales were rated BBB-and below 1Q15 represents as of 3/31/15. 1Q20 represents as of 3/31/20. 1Q15-1Q20 represents 1/1/15 to 3/31/20. 2Q20 represents 3/31/20 to6/30/20 or as of 6/30/20.

Appendix

Investment portfolio: Diversified and high-quality Diversified across asset classes, sectors and issuers Mortgage Loans13%Financials13%Consumer Non-Cyclical12%Utilities11%Structured8%Other(1)  6%Capital Goods6%Energy5%Consumer Cyclical4%Municipal4%Basic Industry4%Communications4%Technology4%Transportation3%Industrial Other2%Alts, 1% $120B invested assets High-quality portfolio NAIC 1(AAA-A)59%NAIC 2 (BBB)37%NAIC 3-6 (Below investment grade)4%96% investment grade(2) (1) Other asset classes primarily include: quasi-sovereign, cash/collateral, and UST/agency. (2) As a % of rated assets including rated CML assets where CM1=NAIC 1, CM2=NAIC 2, CM3=NAIC 3. Data as of 6/30/20.

Other asset classes in focus Energy: $5.6BMidstream 43% Independent 25% Integrated 21% Oil Field Services 8% Refining, 3% •4.7% of total invested assets with an average market value to book value of 108%•Approximately 65% in sub-sectors generally less impacted by energy pricesConsumer cyclical: $5.4B Retailer35%Auto21%Consumer Cyclical Services18%Leisure11%Restaurants9%Lodging3%Gaming2%Home Construction1% •4.5% of total invested assets with an average market value to book value of 113% •91% investment grade; well diversified with 145 issuers and average position size of $37M Data as of 6/30/20.

 Other asset classes in focus Collateralized loan obligations (CLO): $4.2B AAA 70% AA 27% A 3% •100% of CLO holdings are NAIC 1; only 3% or ~$130M are A rated• Average market value to book value of 99% Commercial mortgage loans (CML): $15.3B Apartment 33% Office 25% Industrial 19% Retail 17% Mixed Use/ Other 5% Hotel, <1% •48% LTV and 2.4x debt service coverage•85% CM1 rated; minimal CM3 rated: 0.2% •Loan modifications are <4% of the portfolio and primarily in retail •90% of the loan modifications are from principal and interest to interest only Data as of 6/30/20.

Reconciliation Net income EPS to adjusted income from operations EPS For the Quarter Ended June 30, 2019 2020Earnings (Loss) Per Common Share (Diluted)Net income (loss) EPS(1)1.79$ (0.49)$ Less:Excluded realized gain (loss), after-tax(0.63) (2.85) Benefit ratio unlocking, after-tax0.22 1.46 Acquisition and integration costs related to mergers and acquisitions, after-tax(0.16) (0.01) Gain (loss) on early extinguishment of debt, after-tax- (0.06) Adjusted income (loss) from operations EPS2.36$ 0.97$ (1) Due to reporting a net loss for the three months ended June 30, 2020, 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.

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DEI	Aug. 05, 2020
Cover [Abstract]
Document Type	8-K
Document Period End Date	Aug. 05, 2020
Entity Registrant Name	Lincoln National Corporation
Entity Incorporation, State or Country Code	IN
Entity File Number	1-6028
Entity Tax Identification Number	35-1140070
Entity Address, Address Line Two	150 N. Radnor Chester Road
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	484
Local Phone Number	583-1400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	LNC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000059558
Amendment Flag	false