Policyholder Account Balances

6 Months Ended

Jun. 30, 2025

Policyholder Account Balance [Abstract]

Policyholder Account Balances

The following table reconciles policyholder account balances (in millions) to the Consolidated Balance Sheets:


	As of June 30,		As of December 31,
	2025		2024
Variable Annuities	$	37,026	$	35,267
Fixed Annuities	26,832		25,963
UL and Other	36,116		36,599
Retirement Plan Services	23,700		23,619
Other (1)	5,535		4,749
Total policyholder account balances	$	129,209	$	126,197

(1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($4.2 billion and $4.4 billion as of June 30, 2025, and December 31, 2024, respectively) and funding agreements, that are excluded from the following tables. See “Funding Agreements” below for more information.

The following table summarizes the balances and changes in policyholder account balances (in millions):


	As of or For the Six Months Ended June 30, 2025
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services


Balance as of beginning-of-year	$	35,267	$	25,963	$	36,599	$	23,619
Gross deposits	2,893		2,099		1,713		1,921
Withdrawals	(1,234)		(1,744)		(818)		(2,433)
Policyholder assessments	(1)		(30)		(2,205)		(8)
Net transfers from (to) separate account	(619)		–		63		254
Interest credited	403		438		715		347
Change in fair value of embedded derivative
instruments and other	317		106		49		–

Balance as of end-of-period	$	37,026	$	26,832	$	36,116	$	23,700



Weighted-average crediting rate	2.3%		3.3%		3.9%		3.0%
Net amount at risk (1) (2)	$	1,689	$	272	$	296,496	$	2
Cash surrender value	35,740		25,660		32,446		23,667


	As of or For the Six Months Ended June 30, 2024
	Variable Annuities			Fixed Annuities			UL and Other			Retirement Plan Services


Balance as of beginning-of-year	$	29,141		$	25,355		$	37,180		$	23,784
Gross deposits	2,102			2,646			1,743			1,636
Withdrawals	(413)			(2,602)			(753)			(2,275)
Policyholder assessments	(1)			(31)			(2,254)			(7)
Net transfers from (to) separate account	(146)			–			113			120
Interest credited	328			382			733			340
Change in fair value of embedded derivative
instruments and other	1,842			87			86			–

Balance as of end-of-period	$	32,853		$	25,837		$	36,848		$	23,598



Weighted-average crediting rate	2.1		%	3.0		%	4.0		%	2.9		%
Net amount at risk (1) (2)	$	2,135		$	221		$	299,869		$	3
Cash surrender value	31,650			24,762			33,114			23,570

(1) NAR is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For GLBs, the guaranteed minimum benefit is calculated based on the present value of GLB payments. Our variable annuity products may offer more than one type of guaranteed benefit rider to a policyholder. In instances where more than one guaranteed benefit rider exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.

(2) Calculation is based on total account balances and includes both policyholder account balances and separate account balances.

Funding Agreements

FABN Program

The Lincoln National Life Insurance Company (“LNL”) established a $5.0 billion funding agreement-backed notes (“FABN”) program in 2024 pursuant to which LNL may issue unsecured funding agreements to an unaffiliated and unconsolidated special purpose statutory trust (the “Trust”) that will then issue medium-term notes for which payment of interest and principal is secured by such funding agreement. Funding agreements issued to the Trust are reported in policyholder account balances on the Consolidated Balance Sheets, and the associated interest is reported within interest credited on the Consolidated Statements of Comprehensive Income (Loss). We had funding agreements issued under the program totaling $1.0 billion as of June 30, 2025, compared to none as of December 31, 2024.

The following table presents policyholder account balances (in millions) by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between the interest being credited to policyholders and the respective guaranteed contract minimums:


	As of June 30, 2025

	At Guaranteed Minimum		1-50 Basis Points Above		51-100 Basis Points Above		101-150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Range of Guaranteed
Minimum Crediting Rate
Variable Annuities
Up to 1.00%	$	–	$	–	$	–	$	–	$	–	$	–
1.01% - 2.00%	3		–		–		–		7		10
2.01% - 3.00%	486		–		–		–		–		486
3.01% - 4.00%	1,168		–		–		–		–		1,168
4.01% and above	7		–		–		–		–		7
Other (1)	–		–		–		–		–		35,355
Total	$	1,664	$	–	$	–	$	–	$	7	$	37,026

Fixed Annuities
Up to 1.00%	$	108	$	895	$	425	$	197	$	2,250	$	3,875
1.01% - 2.00%	215		206		136		119		6,646		7,322
2.01% - 3.00%	1,455		27		1		2		45		1,530
3.01% - 4.00%	873		–		–		–		–		873
4.01% and above	161		–		–		–		–		161
Other (1)	–		–		–		–		–		13,071
Total	$	2,812	$	1,128	$	562	$	318	$	8,941	$	26,832

UL and Other
Up to 1.00%	$	256	$	–	$	226	$	74	$	510	$	1,066
1.01% - 2.00%	535		–		6		–		2,891		3,432
2.01% - 3.00%	6,592		8		144		–		–		6,744
3.01% - 4.00%	14,610		–		1		–		–		14,611
4.01% and above	3,477		–		–		–		–		3,477
Other (1)	–		–		–		–		–		6,786
Total	$	25,470	$	8	$	377	$	74	$	3,401	$	36,116

Retirement Plan Services
Up to 1.00%	$	573	$	329	$	693	$	3,265	$	6,396	$	11,256
1.01% - 2.00%	472		944		1,851		507		662		4,436
2.01% - 3.00%	1,719		532		1		2		–		2,254
3.01% - 4.00%	4,079		102		7		11		–		4,199
4.01% and above	1,555		–		–		–		–		1,555
Total	$	8,398	$	1,907	$	2,552	$	3,785	$	7,058	$	23,700


	As of June 30, 2024
	At Guaranteed Minimum		1-50 Basis Points Above		51-100 Basis Points Above		101-150 Basis Points Above		Greater Than 150 Basis Points Above		Total
Range of Guaranteed
Minimum Crediting Rate
Variable Annuities
Up to 1.00%	$	–	$	–	$	–	$	–	$	–	$	–
1.01% - 2.00%	4		–		–		–		6		10
2.01% - 3.00%	539		–		–		–		–		539
3.01% - 4.00%	1,289		–		–		–		–		1,289
4.01% and above	9		–		–		–		–		9
Other (1)	–		–		–		–		–		31,006
Total	$	1,841	$	–	$	–	$	–	$	6	$	32,853

Fixed Annuities
Up to 1.00%	$	615	$	609	$	594	$	463	$	2,464	$	4,745
1.01% - 2.00%	304		133		279		329		4,301		5,346
2.01% - 3.00%	1,694		40		5		1		31		1,771
3.01% - 4.00%	1,059		–		–		–		–		1,059
4.01% and above	173		–		–		–		–		173
Other (1)	–		–		–		–		–		12,743
Total	$	3,845	$	782	$	878	$	793	$	6,796	$	25,837

UL and Other
Up to 1.00%	$	264	$	–	$	218	$	119	$	42	$	643
1.01% - 2.00%	544		–		–		–		3,186		3,730
2.01% - 3.00%	6,797		10		150		–		–		6,957
3.01% - 4.00%	15,432		–		1		–		–		15,433
4.01% and above	3,679		–		–		–		–		3,679
Other (1)	–		–		–		–		–		6,406
Total	$	26,716	$	10	$	369	$	119	$	3,228	$	36,848

Retirement Plan Services
Up to 1.00%	$	489	$	502	$	727	$	3,684	$	4,511	$	9,913
1.01% - 2.00%	509		1,648		1,382		1,154		220		4,913
2.01% - 3.00%	2,394		25		1		–		–		2,420
3.01% - 4.00%	4,667		57		5		5		–		4,734
4.01% and above	1,618		–		–		–		–		1,618
Total	$	9,677	$	2,232	$	2,115	$	4,843	$	4,731	$	23,598

(1) Consists of indexed account balances that include the fair value of embedded derivative instruments, non-life contingent payout annuity account balances, short-term dollar cost averaging annuities business and policy loans.