
	As of March 31, 2026

	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	76,595	$	600	$	8,873	$	38	$	68,284
U.S. government bonds	951		5		37		–		919
State and municipal bonds	2,503		14		393		–		2,124
Foreign government bonds	241		15		54		–		202
RMBS	2,195		39		165		6		2,063
CMBS	2,774		7		112		–		2,669
ABS	17,931		94		256		66		17,703
Hybrid and redeemable preferred securities	234		11		8		1		236
Total fixed maturity AFS securities	$	103,424	$	785	$	9,898	$	111	$	94,200


	As of December 31, 2025
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	76,318	$	834	$	8,054	$	53	$	69,045
U.S. government bonds	892		9		32		–		869
State and municipal bonds	2,514		18		385		–		2,147
Foreign government bonds	261		16		51		–		226
RMBS	2,237		45		154		6		2,122
CMBS	2,586		15		99		–		2,502
ABS	16,412		137		217		50		16,282
Hybrid and redeemable preferred securities	242		21		7		1		255
Total fixed maturity AFS securities	$	101,462	$	1,095	$	8,999	$	110	$	93,448


	Amortized Cost		Fair Value
Due in one year or less	$	5,047	$	4,995
Due after one year through five years	20,597		20,161
Due after five years through ten years	12,503		11,999
Due after ten years	42,377		34,610
Subtotal	80,524		71,765
Structured securities (RMBS, CMBS, ABS)	22,900		22,435
Total fixed maturity AFS securities	$	103,424	$	94,200

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:


	As of March 31, 2026

	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	23,311	$	3,669	$	29,704	$	5,204	$	53,015	$	8,873
U.S. government bonds	558		31		36		6		594		37
State and municipal bonds	625		163		965		230		1,590		393
Foreign government bonds	12		2		122		52		134		54
RMBS	569		48		766		117		1,335		165
CMBS	1,048		28		940		84		1,988		112
ABS	8,793		81		2,856		175		11,649		256
Hybrid and redeemable
preferred securities	45		2		54		6		99		8
Total fixed maturity AFS securities	$	34,961	$	4,024	$	35,443	$	5,874	$	70,404	$	9,898

Total number of fixed maturity AFS securities in an unrealized loss position											7,330


	As of December 31, 2025
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	16,727	$	3,366	$	31,404	$	4,688	$	48,131	$	8,054
U.S. government bonds	427		27		36		5		463		32
State and municipal bonds	582		166		995		219		1,577		385
Foreign government bonds	10		2		135		49		145		51
RMBS	345		39		838		115		1,183		154
CMBS	577		19		956		80		1,533		99
ABS	3,453		37		3,107		180		6,560		217
Hybrid and redeemable
preferred securities	22		2		54		5		76		7
Total fixed maturity AFS securities	$	22,143	$	3,658	$	37,525	$	5,341	$	59,668	$	8,999

Total number of fixed maturity AFS securities in an unrealized loss position											6,089

(1) As of March 31, 2026, and December 31, 2025, we recognized $5 million and $12 million of gross unrealized losses, respectively, in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:


	As of March 31, 2026

	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	3,606	$	1,070	577
Six months or greater, but less than nine months	904		449		210
Nine months or greater, but less than twelve months	311		165		61
Twelve months or greater	4,935		2,285		868
Total	$	9,756	$	3,969	1,716


	As of December 31, 2025
	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	2,355	$	839	445
Six months or greater, but less than nine months	351		163		65
Nine months or greater, but less than twelve months	302		119		99
Twelve months or greater	5,214		2,195		902
Total	$	8,222	$	3,316	1,511

Our gross unrealized losses on fixed maturity AFS securities increased by $899 million for the three months ended March 31, 2026. As discussed further below, we do not believe the unrealized loss position as of March 31, 2026, required an impairment recognized in earnings as: (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of March 31, 2026, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities.

As of March 31, 2026, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to rising interest rates and widening credit spreads since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security.

Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of March 31, 2026, and December 31, 2025, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of March 31, 2026, and December 31, 2025, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.0 billion and $3.1 billion, respectively, and a fair value of $2.9 billion. Based upon the analysis discussed above, we believe that as of March 31, 2026, and December 31, 2025, we would have recovered the amortized cost of each corporate bond.

As of March 31, 2026, the unrealized losses associated with our mortgage-backed securities and asset-backed securities (“ABS”) were attributable primarily to rising interest rates and widening credit spreads since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security.

As of March 31, 2026, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security.

We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:


	As of or For the Three Months Ended March 31, 2026
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	53	$	6	$	50	$	1	$	110
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	2		–		–		–		2
Additions (reductions) for securities for which
credit losses were previously recognized	7		–		18		–		25
Reductions for disposed securities	(1)		–		(2)		–		(3)
Reductions for securities charged off	(23)		–		–		–		(23)
Balance as of end-of-period (2)	$	38	$	6	$	66	$	1	$	111


	As of or For the Three Months Ended March 31, 2025
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	14	$	7	$	24	$	1	$	46
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	7		–		8		–		15
Additions (reductions) for securities for which
credit losses were previously recognized	2		(1)		12		–		13
Reductions for disposed securities	–		–		–		–		–
Reductions for securities charged off	–		–		–		–		–
Balance as of end-of-period (2)	$	23	$	6	$	44	$	1	$	74

(2) As of March 31, 2026 and 2025, accrued investment income on fixed maturity AFS securities totaled $954 million and $911 million, respectively, and was excluded from the estimate of credit losses.


	As of March 31, 2026						As of December 31, 2025
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,596	$	4,992	$	22,588	$	17,636	$	4,628	$	22,264
30 to 59 days past due	4		89		93		1		93		94
60 to 89 days past due	–		29		29		5		34		39
90 or more days past due	36		168		204		35		144		179
Allowance for credit losses	(116)		(64)		(180)		(113)		(69)		(182)
Unamortized premium (discount)	(4)		126		122		(4)		115		111
Mark-to-market gains (losses) (1)	(32)		1		(31)		(33)		–		(33)
Total carrying value	$	17,484	$	5,341	$	22,825	$	17,527	$	4,945	$	22,472

(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of March 31, 2026, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $19 million, respectively. As of December 31, 2025, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $20 million, respectively. As of March 31, 2026, and December 31, 2025, there were no such mortgage loans on real estate that were more than 90 days past due and still accruing interest. For additional information, see “Fair Value Option” in Note 13.

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements where the investment results are passed directly to the reinsurers:

We use loan-to-value (“LTV”) and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:


	As of March 31, 2026
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2026	$	427	1.64	$	30	1.38	$	1	1.61	$	458
2025	1,331		1.81	166		1.41	11		1.20	1,508
2024	1,487		1.68	57		1.41	1		2.06	1,545
2023	1,309		1.87	32		1.39	1		1.17	1,342
2022	1,647		2.23	65		1.64	3		1.21	1,715
2021 and prior	10,970		2.73	85		2.35	9		1.60	11,064
Total	$	17,171		$	435		$	26		$	17,632


	As of December 31, 2025
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2025	$	1,322	1.81	$	182	1.41	$	11	1.20	$	1,515
2024	1,496		1.68	66		1.41	1		2.01	1,563
2023	1,332		1.86	33		1.38	1		1.17	1,366
2022	1,706		2.21	76		1.59	5		1.83	1,787
2021	2,208		3.66	37		1.70	26		4.36	2,271
2020 and prior	9,098		2.53	46		1.38	27		1.94	9,171
Total	$	17,162		$	440		$	71		$	17,673

We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:


	As of March 31, 2026
	Performing		Nonperforming		Total
Origination Year
2026	$	393	$	1	$	394
2025	1,810		11		1,821
2024	1,651		74		1,725
2023	419		21		440
2022	406		35		441
2021 and prior	553		30		583
Total	$	5,232	$	172	$	5,404


	As of December 31, 2025
	Performing		Nonperforming		Total
Origination Year
2025	$	1,650	$	4	$	1,654
2024	1,776		64		1,840
2023	440		21		461
2022	425		33		458
2021	381		14		395
2020 and prior	194		12		206
Total	$	4,866	$	148	$	5,014

In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value.


	As of or For the Three Months Ended March 31, 2026
	Commercial		Residential		Total
Balance as of beginning-of-year	$	113	$	69	$	182
Additions (reductions) from provision for credit loss
expense (1)	3		(5)		(2)
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Reductions for mortgage loans on real estate charged off	–		–		–
Balance as of end-of-period (2)	$	116	$	64	$	180


	As of or For the Three Months Ended March 31, 2025
	Commercial		Residential		Total
Balance as of beginning-of-year	$	99	$	53	$	152
Additions (reductions) from provision for credit loss
expense (1)	(1)		3		2
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Reductions for mortgage loans on real estate charged off	–		–		–
Balance as of end-of-period (2)	$	98	$	56	$	154

(1) We recognized less than $1 million and $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended March 31, 2026 and 2025, respectively.

(2) Accrued investment income on mortgage loans on real estate totaled $113 million and $101 million as of March 31, 2026 and 2025, respectively, and was excluded from the estimate of credit losses.

As of March 31, 2026, and December 31, 2025, alternative investments included investments in 380 and 384 different partnerships, respectively, and represented approximately 3% of total investments. These amounts do not include alternative investments that support funds withheld and modified coinsurance reinsurance agreements where the investment results are passed directly to the reinsurers.

Details underlying credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:


	For the Three Months Ended March 31,
	2026		2025










Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(8)	$	(9)
RMBS	–		1
ABS	(16)		(20)
Total credit loss benefit (expense)	$	(24)	$	(28)

The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:


	As of March 31, 2026				As of December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	6,373	$	6,373	$	7,809	$	7,809
Securities pledged under securities lending agreements (2)	183		177		145		139

Investments pledged for FHLB lending program (3)	–		–		–		–
Total payables for collateral on investments	$	6,556	$	6,550	$	7,954	$	7,948

(1) We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information.

(2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

(3) Our pledged investments for Federal Home Loan Bank (“FHLB”) related to the lending program are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. Lincoln National Corporation guarantees the obligations of certain reinsurance subsidiaries under certain repurchase agreements. As of March 31, 2026 and December 31, 2025, we were not participating in any open repurchase agreements.


	For the Three Months Ended March 31,
	2026		2025
Collateral payable for derivative investments	$	(1,436)	$	(1,655)
Securities pledged under securities
lending agreements	38		10
Securities pledged under repurchase agreements	–		57
Investments pledged for FHLB lending program	–		(150)
Total increase (decrease) in payables for
collateral on investments	$	(1,398)	$	(1,738)

We have elected not to offset our securities lending transactions in the consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:


	As of March 31, 2026
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total


Securities Lending
Corporate bonds	$	175	$	–	$	–	$	–	$	175

Foreign government bonds	4		–		–		–		4
Equity securities	4		–		–		–		4
Total gross secured borrowings	$	183	$	–	$	–	$	–	$	183


	As of December 31, 2025
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	130	$	–	$	–	$	–	$	130
Foreign government bonds	5		–		–		–		5
Equity securities	10		–		–		–		10
Total gross secured borrowings	$	145	$	–	$	–	$	–	$	145

We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of March 31, 2026, we had not received any collateral and, therefore, had not sold or repledged any collateral under these agreements.

We also accept collateral from derivative counterparties in the form of securities that we are permitted to sell or re-pledge. As of March 31, 2026, the fair value of this collateral received that we are permitted to sell or re-pledge was $1.6 billion, and we had re-pledged $31 million of this collateral to cover our collateral requirements.

We pledge assets as collateral in connection with derivative, securities lending and repurchase agreements, funding agreements issued pursuant to funding agreement backed repurchase agreements (“FABRs”), membership obligations with the FHLB and regulatory

deposits. See “Payables for Collateral on Investments” above and “Funding Agreements – FABR Funding Agreements” in Note 10 for additional information. Assets pledged as collateral at carrying value as reported on the Consolidated Balance Sheets were as follows:


	As of March 31, 2026		As of December 31, 2025
Fixed maturity AFS securities	$	3,642	$	3,578
Trading securities	14		14
Equity securities	4		10
Mortgage loans on real estate	1,666		1,217
Other investments	50		71
Cash and invested cash	356		65
Total assets pledged as collateral	$	5,732	$	4,955

As of March 31, 2026, our investment commitments were $4.3 billion, which included $3.0 billion of limited partnerships (“LPs”), $831 million of mortgage loans on real estate, $285 million of private placement securities and $210 million of asset-backed variable interest entities (“VIEs”).

As of March 31, 2026, our most significant investments in one issuer were our investments in securities issued by the Federal National Mortgage Association and the U.S. Treasury with a fair value of $932 million and $900 million, respectively, or 1% of total investments. As of December 31, 2025, our most significant investments in one issuer were our investments in securities issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation with a fair value of $951 million and $595 million, respectively, or 1% and less than 1% of total investments, respectively.