Segment Information

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

Segment Information

Segment Information

We provide products and services and report results through our Annuities, Life Insurance, Group Protection and Retirement Plan Services business segments. The accounting policies of the business segments and Other Operations are the same as those described in Note 1 in our 2024 Form 10-K. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our business segments and Other Operations reflect the manner by which our CODM views and manages the business. Our CODM is the Chief Executive Officer. A discussion of these segments and Other Operations is found in Note 19 in our 2024 Form 10-K.

Income (loss) from operations is the internal measure used by our CODM that explains the results of our ongoing operations in a manner that allows for a better understanding of the underlying trends by excluding items that are not necessarily indicative of current operating fundamentals or future performance, and, in most instances, decisions regarding these adjustments do not necessarily relate to the operations of the individual business segments. Income (loss) from operations is used by our CODM to evaluate financial performance, to assess the budgeting and forecasting process and to determine future resource allocation.

Income (loss) from operations is GAAP net income (loss) excluding the following items, as applicable:

•Items related to annuity product features, which include changes in MRBs, changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits, and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products (collectively, “net annuity product features”);

•Items related to life insurance product features, which include changes in the fair value of derivatives we hold as part of VUL hedging, changes in reserves resulting from benefit ratio unlocking associated with the impact of capital markets, and changes in the fair value of the embedded derivative liabilities of our IUL contracts and the associated index options we hold to hedge them (collectively, “net life insurance product features”);

•Credit loss-related adjustments on fixed maturity AFS securities, mortgage loans on real estate and reinsurance-related assets (“credit loss-related adjustments”);

•Changes in the fair value of equity securities and certain other investments, the impact of certain derivatives, and realized gains (losses) on sales, disposals and impairments of financial assets (collectively, “investment gains (losses)”);

•Changes in the fair value of reinsurance-related embedded derivatives, trading securities and mortgage loans on real estate electing the fair value option (“changes in the fair value of reinsurance-related embedded derivatives, trading securities and certain mortgage loans”);

•Income (loss) from the initial adoption of new accounting standards, accounting policy changes and new regulations, including changes in tax law;

•Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

•Losses from the impairment of intangible assets and gains (losses) on other non-financial assets;

•Income (loss) from discontinued operations;

•Other items, which include the following: certain legal and regulatory accruals; severance expense related to initiatives that realign the workforce; transaction, integration and other costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business, and certain other corporate initiatives; mark-to-market adjustment related to the LNC stock component of our deferred compensation plans (“deferred compensation mark-to-market adjustment”); gains (losses) on modification or early extinguishment of debt; and impacts from settlement or curtailment of defined benefit obligations; and

•Income tax benefit (expense) related to the above pre-tax items, including the effect of tax adjustments such as changes to deferred tax valuation allowances.

We use our prevailing corporate federal income tax rate of 21% and an estimated state income tax rate, where applicable, net of the impacts related to dividends-received deduction and foreign tax credits and any other permanent differences for events recognized differently in the consolidated financial statements and federal income tax returns.

We do not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance.

The tables below reconcile our internal measure of performance to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three Months Ended September 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	1,270	$	1,610	$	1,507	$	343	$	50	$	4,780
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	24		961		923		–		4		1,912
Interest credited	459		298		1		174		22		954
Commissions	327		119		132		30		3		611
General and administrative expenses	130		134		225		83		65		637
Interest and debt expense	–		–		–		–		79		79
Other (3)	(38)		74		38		3		4		81
Total operating expenses	902		1,586		1,319		290		177		4,274
Total federal income tax expense (benefit)	58		(1)		39		7		(28)		75
Total income (loss) from operations	310		25		149		46		(99)		431
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											410
Net life insurance product features, pre-tax											(22)
Credit loss-related adjustments, pre-tax											(38)
Investment gains (losses), pre-tax											(35)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(191)
Other items, pre-tax (6)(7)(8)(9)											(105)
Income tax benefit (expense) related to
the above pre-tax items											(5)
Total net income (loss)											$	445

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; expenses associated with reserve financing and letters of credit (“LOCs”); taxes, licenses and fees and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: DAC capitalization and amortization; taxes, licenses and fees; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

(4)    Includes changes in MRBs of $337 million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $30 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $43 million.

(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.

(6)    Includes certain legal accruals of $(9) million.

(7)    Includes severance expense related to initiatives to realign the workforce of $(5) million.

(8)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(55) million of transaction costs related to restructuring certain captive reinsurance subsidiaries and $(22) million related to Life Insurance segment persistency optimization.

(9)    Includes deferred compensation mark-to-market adjustment of $(14) million.

	For the Three Months Ended September 30, 2024
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	1,195	$	1,589	$	1,432	$	335	$	52	$	4,603
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	38		937		919		–		(3)		1,891
Interest credited	399		302		1		170		8		880
Commissions	285		120		114		28		–		547
General and administrative expenses	122		138		219		85		67		631
Interest and debt expense	–		–		–		–		86		86
Other (3)	(8)		71		42		3		(1)		107
Total operating expenses	836		1,568		1,295		286		157		4,142
Total federal income tax expense (benefit)	58		(1)		28		5		(21)		69
Total income (loss) from operations	301		22		109		44		(84)		392
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											(381)
Net life insurance product features, pre-tax											(125)
Credit loss-related adjustments, pre-tax											(88)
Investment gains (losses), pre-tax											(105)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(446)
Gains (losses) on other non-financial assets –
sale of subsidiaries/businesses, pre-tax (6)											(2)
Other items, pre-tax (7)(8)(9)											(19)
Income tax benefit (expense) related to
the above pre-tax items											246
Total net income (loss)											$	(528)

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

(4)    Includes changes in MRBs of $(666) million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $188 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $97 million.

(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.

(6)    Relates to the sale of our wealth management business.

(7)    Includes severance expense related to initiatives to realign the workforce of $(16) million.

(8)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(2) million related to the sale of our wealth management business.

(9)    Includes deferred compensation mark-to-market adjustment of $(1) million.

	For the Nine Months Ended September 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	3,682	$	4,798	$	4,566	$	1,001	$	143	$	14,190
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	84		2,919		2,830		–		14		5,847
Interest credited	1,317		874		1		518		49		2,759
Commissions	917		329		404		84		4		1,738
General and administrative expenses	381		397		674		251		189		1,892
Interest and debt expense	–		–		–		–		240		240
Other (3)	(63)		253		121		14		3		328
Total operating expenses	2,636		4,772		4,030		867		499		12,804
Total federal income tax expense (benefit)	160		(14)		113		18		(74)		203
Total income (loss) from operations	886		40		423		116		(282)		1,183
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											(277)
Net life insurance product features, pre-tax											(37)
Credit loss-related adjustments, pre-tax											(91)
Investment gains (losses), pre-tax											(218)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(266)
Other items, pre-tax (6)(7)(8)(9)(10)											(65)
Income tax benefit (expense) related to
the above pre-tax items											194
Total net income (loss)											$	423

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees; DAC capitalization and amortization and reimbursements to Other Operations from the Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

(4)    Includes changes in MRBs of $(33) million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(307) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $63 million.

(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.

(6)    Includes certain legal accruals of $(9) million.

(7)    Includes severance expense related to initiatives to realign the workforce of $(13) million.

(8)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(55) million of transaction costs related to restructuring certain captive reinsurance subsidiaries, $(22) million related to Life Insurance segment persistency optimization, $(20) million related to the sale of our wealth management business and $(18) million primarily related to the Bain Capital transaction.

(9)    Includes deferred compensation mark-to-market adjustment of $(22) million.

(10)    Includes gains on early extinguishment of debt of $94 million.

	For the Nine Months Ended September 30, 2024
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	3,673	$	4,640	$	4,299	$	984	$	118	$	13,714
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	105		2,886		2,790		–		12		5,793
Interest credited	1,129		894		3		505		24		2,555
Commissions	808		346		336		76		–		1,566
General and administrative expenses	358		421		653		253		187		1,872
Interest and debt expense	–		–		–		–		253		253
Other (3)	245		172		114		13		(10)		534
Total operating expenses	2,645		4,719		3,896		847		466		12,573
Total federal income tax expense (benefit)	171		(31)		85		17		(72)		170
Total income (loss) from operations	857		(48)		318		120		(276)		971
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											1,319
Net life insurance product features, pre-tax											(253)
Credit loss-related adjustments, pre-tax											(124)
Investment gains (losses), pre-tax											(416)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(51)
Gains (losses) on other non-financial assets –
sale of subsidiaries/businesses, pre-tax (6)											582
Other items, pre-tax (7)(8)(9)(10)											(238)
Income tax benefit (expense) related to
the above pre-tax items											(202)
Total net income (loss)											$	1,588

(1)    See table below for reconciliation of total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss).

(2)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Inter-segment expenses are included within the amounts shown.

(3)    Other operating expenses include: Annuities: DAC and VOBA capitalization and amortization; broker-dealer expenses; taxes, licenses and fees; expenses associated with reserve financing and LOCs and amortization of deferred loss on business sold through reinsurance. Life Insurance: DAC and VOBA capitalization and amortization; taxes, licenses and fees; expenses associated with reserve financing and LOCs; amortization of deferred loss on business sold through reinsurance and other intangible amortization. Group Protection: Taxes, licenses and fees; DAC capitalization and amortization; other intangible amortization and expenses associated with LOCs. Retirement Plan Services: DAC capitalization and amortization; taxes, licenses and fees and expenses associated with LOCs. Other Operations: Taxes, licenses and fees and reimbursements to Other Operations from the Life Insurance

segment for the use of proceeds from certain issuances of senior notes that were used as long-term structured solutions, net of expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs.

(4)    Includes changes in MRBs of $1,354 million; changes in the fair value of the related hedge instruments inclusive of income allocated to support the cost of hedging or future benefits of $(350) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $315 million.

(5)    Includes primarily changes in the fair value of the embedded derivative related to the fourth quarter 2023 reinsurance transaction. For more information, see Note 7.

(6)    Relates to the sale of our wealth management business.

(7)    Includes certain legal accruals of $(114) million primarily related to the settlement of cost of insurance litigation in the first quarter of 2024.

(8)    Includes severance expense related to initiatives to realign the workforce of $(72) million.

(9)    Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(39) million primarily related to the sale of our wealth management business.

(10)    Includes deferred compensation mark-to-market adjustment of $(13) million.

The tables below reconcile our total operating revenues to the GAAP measure presented in the Consolidated Statements of Comprehensive Income (Loss) (in millions):

	For the Three Months Ended September 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	1,270	$	1,610	$	1,507	$	343	$	50	$	4,780
Revenue adjustments from annuity and life
insurance product features	73		(34)		–		–		–		39
Credit loss-related adjustments	10		(17)		(2)		(1)		(28)		(38)
Investment gains (losses)	2		(17)		(1)		–		(19)		(35)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	–		(193)		–		–		2		(191)
Total revenues	$	1,355	$	1,349	$	1,504	$	342	$	5	$	4,555

	For the Three Months Ended September 30, 2024
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	1,195	$	1,589	$	1,432	$	335	$	52	$	4,603
Revenue adjustments from annuity and life
insurance product features	285		(136)		–		–		–		149
Credit loss-related adjustments	(44)		(8)		(2)		(14)		(20)		(88)
Investment gains (losses)	(43)		(24)		(1)		(6)		(31)		(105)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	(7)		(455)		–		–		16		(446)
Gains (losses) on other non-financial assets -
sale of subsidiaries/businesses	–		–		–		–		(2)		(2)
Total revenues	$	1,386	$	966	$	1,429	$	315	$	15	$	4,111

	For the Nine Months Ended September 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	3,682	$	4,798	$	4,566	$	1,001	$	143	$	14,190
Revenue adjustments from annuity and life
insurance product features	(244)		(81)		–		–		–		(325)
Credit loss-related adjustments	(10)		(18)		(5)		(10)		(48)		(91)
Investment gains (losses)	(6)		(150)		–		(6)		(56)		(218)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	10		(269)		–		–		(7)		(266)
Total revenues	$	3,431	$	4,280	$	4,561	$	986	$	32	$	13,290

	For the Nine Months Ended September 30, 2024
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	3,673	$	4,640	$	4,299	$	984	$	118	$	13,714
Revenue adjustments from annuity and life
insurance product features	(35)		(290)		–		–		–		(325)
Credit loss-related adjustments	(67)		4		(2)		(27)		(32)		(124)
Investment gains (losses)	(16)		(172)		(2)		(12)		(214)		(416)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	(9)		(47)		–		–		5		(51)
Gains (losses) on other non-financial assets -
sale of subsidiaries/businesses	–		–		–		–		582		582
Total revenues	$	3,546	$	4,135	$	4,295	$	945	$	459	$	13,380

Other business segment and Other Operations information (in millions) was as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2025		2024		2025		2024
Net Investment Income
Annuities	$	469	$	418	$	1,385	$	1,203
Life Insurance	687		623		1,950		1,817
Group Protection	98		87		281		261
Retirement Plan Services	257		253		760		744
Other Operations	33		35		102		79
Total net investment income	$	1,544	$	1,416	$	4,478	$	4,104