Policyholder Account Balances

3 Months Ended

Mar. 31, 2026

Policyholder Account Balance [Abstract]

Policyholder Account Balances

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


	As of March 31,		As of December 31,
	2026		2025
Variable Annuities	$	39,143	$	40,060
Fixed Annuities	28,974		28,728
UL and Other	35,723		35,986
Retirement Plan Services	23,694		23,843
Other (1)	8,149		7,628
Total policyholder account balances	$	135,683	$	136,245

(1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($3.5 billion as of March 31, 2026, and December 31, 2025) and funding agreements ($4.4 billion and $3.7 billion as of March 31, 2026, and December 31, 2025, respectively). 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 Three Months Ended March 31, 2026
	Variable Annuities			Fixed Annuities			UL and Other			Retirement Plan Services


Balance as of beginning-of-year	$	40,060		$	28,728		$	35,986		$	23,843
Gross deposits	1,869			718			837			880
Withdrawals	(920)			(616)			(403)			(1,279)
Policyholder assessments	(1)			(15)			(1,095)			(5)
Net transfers from (to) separate account	(651)			–			68			86
Interest credited	230			256			357			169
Change in fair value of embedded derivative
instruments and other	(1,444)			(97)			(27)			–

Balance as of end-of-period	$	39,143		$	28,974		$	35,723		$	23,694



Weighted-average crediting rate	2.3		%	3.6		%	4.0		%	2.8		%
Net amount at risk (1)(2)	$	2,652		$	425		$	292,048		$	3
Cash surrender value	37,757			27,669			32,385			23,657


	As of or For the Three Months Ended March 31, 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	1,369			873			865			811
Withdrawals	(612)			(947)			(445)			(1,330)
Policyholder assessments	–			(15)			(1,104)			(4)
Net transfers from (to) separate account	(287)			–			14			211
Interest credited	199			210			356			172
Change in fair value of embedded derivative
instruments and other	(1,566)			(45)			(65)			–

Balance as of end-of-period	$	34,370		$	26,039		$	36,220		$	23,479



Weighted-average crediting rate	2.3		%	3.2		%	3.9		%	2.9		%
Net amount at risk (1)(2)	$	2,518		$	255		$	299,107		$	4
Cash surrender value	33,108			24,935			32,645			23,443

(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.

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 March 31, 2026

	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%	5		–		–		–		4		9
2.01% - 3.00%	451		–		–		–		–		451
3.01% - 4.00%	1,088		–		–		–		–		1,088
4.01% and above	5		–		–		–		–		5
Other (1)	–		–		–		–		–		37,590
Total	$	1,549	$	–	$	–	$	–	$	4	$	39,143

Fixed Annuities
Up to 1.00%	$	136	$	676	$	412	$	120	$	2,184	$	3,528
1.01% - 2.00%	171		236		95		53		8,462		9,017
2.01% - 3.00%	1,271		85		1		2		62		1,421
3.01% - 4.00%	793		–		–		–		–		793
4.01% and above	155		–		–		–		–		155
Other (1)	–		–		–		–		–		14,060
Total	$	2,526	$	997	$	508	$	175	$	10,708	$	28,974

UL and Other
Up to 1.00%	$	266	$	–	$	242	$	32	$	716	$	1,256
1.01% - 2.00%	517		–		–		–		2,624		3,141
2.01% - 3.00%	6,172		8		156		–		–		6,336
3.01% - 4.00%	14,294		–		1		–		–		14,295
4.01% and above	3,402		–		–		–		–		3,402
Other (1)	–		–		–		–		–		7,293
Total	$	24,651	$	8	$	399	$	32	$	3,340	$	35,723

Retirement Plan Services
Up to 1.00%	$	686	$	681	$	551	$	3,838	$	6,548	$	12,304
1.01% - 2.00%	533		1,424		1,319		168		506		3,950
2.01% - 3.00%	1,582		25		489		3		–		2,099
3.01% - 4.00%	3,750		75		7		7		–		3,839
4.01% and above	1,502		–		–		–		–		1,502
Total	$	8,053	$	2,205	$	2,366	$	4,016	$	7,054	$	23,694


	As of March 31, 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%	$	9	$	–	$	–	$	–	$	–	$	9
1.01% - 2.00%	3		–		–		–		7		10
2.01% - 3.00%	495		–		–		–		–		495
3.01% - 4.00%	1,197		–		–		–		–		1,197
4.01% and above	7		–		–		–		–		7
Other (1)	–		–		–		–		–		32,652
Total	$	1,711	$	–	$	–	$	–	$	7	$	34,370

Fixed Annuities
Up to 1.00%	$	201	$	855	$	459	$	229	$	2,266	$	4,010
1.01% - 2.00%	223		202		146		161		5,908		6,640
2.01% - 3.00%	1,499		33		1		2		38		1,573
3.01% - 4.00%	930		–		–		–		–		930
4.01% and above	166		–		–		–		–		166
Other (1)	–		–		–		–		–		12,720
Total	$	3,019	$	1,090	$	606	$	392	$	8,212	$	26,039

UL and Other
Up to 1.00%	$	261	$	–	$	231	$	31	$	453	$	976
1.01% - 2.00%	541		–		–		–		2,976		3,517
2.01% - 3.00%	6,483		9		152		–		–		6,644
3.01% - 4.00%	14,972		–		1		–		–		14,973
4.01% and above	3,525		–		–		–		–		3,525
Other (1)	–		–		–		–		–		6,585
Total	$	25,782	$	9	$	384	$	31	$	3,429	$	36,220

Retirement Plan Services
Up to 1.00%	$	573	$	312	$	725	$	3,498	$	5,766	$	10,874
1.01% - 2.00%	477		996		1,847		451		662		4,433
2.01% - 3.00%	1,743		542		3		1		–		2,289
3.01% - 4.00%	4,193		107		8		11		–		4,319
4.01% and above	1,564		–		–		–		–		1,564
Total	$	8,550	$	1,957	$	2,583	$	3,961	$	6,428	$	23,479

(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.

Funding Agreements

The following summarizes the types of funding agreements issued by The Lincoln National Life Insurance Company (“LNL”):

FABN Program

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. LNL had funding agreements issued under the program totaling $1.9 billion as of March 31, 2026, compared to $1.5 billion as of December 31, 2025, with original maturities ranging from three to five years.

FABR Funding Agreements

LNL may issue funding agreements in connection with FABRs. Under an FABR, an unaffiliated and unconsolidated special-purpose entity enters into a repurchase agreement with a bank and uses the proceeds of the repurchase agreement to purchase funding agreements from LNL that are secured by portfolios of assets pledged to the special-purpose entity. LNL had secured funding agreements issued totaling $800 million as of March 31, 2026, and December 31, 2025, with original maturities of five years. See “Assets Pledged as Collateral” in Note 3 for information on pledged assets.

FHLB Funding Agreements

LNL is a member of the FHLB of Indianapolis (“FHLBI”) and, through membership, has the ability to issue funding agreements. We had FHLB funding agreements outstanding of $1.7 billion as of March 31, 2026, compared to $1.5 billion as of December 31, 2025, with original maturities of one year or less. The funding agreements are secured by a portfolio of assets pledged to the FHLB. See “Assets Pledged as Collateral” in Note 3 for information on pledged assets.