UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549  

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2026

OR

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

For the transition period from _________ to _________.

Commission File Number: 1-6028  

_______________________________________________________________________________________________________

LINCOLN NATIONAL CORPORATION

(Exact name of registrant as specified in its charter)

_______________________________________________________________________________________________________  

Indiana	35-1140070
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
150 N. Radnor-Chester Road, Suite A305, Radnor, Pennsylvania	19087
(Address of principal executive offices)	(Zip Code)

(484) 583-1400  

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

_____________________________________________________________________________________________________

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
Depositary Shares, each representing a 1/1000th interest in a share of 9.000% Non-Cumulative Preferred Stock, Series D	LNC PRD	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐   No  ☒  

As of July 24, 2026, there were 191,447,336 shares of the registrant’s common stock outstanding.

—————————————————————————————————————————————————————

Lincoln National Corporation

Table of Contents

		Page
PART I
Item 1.	Financial Statements:
	Consolidated Balance Sheets as of June 30, 2026 (Unaudited) and December 31, 2025	1
	Unaudited Consolidated Statements of Comprehensive Income (Loss) for the three and six months
	ended June 30, 2026 and 2025	2
	Unaudited Consolidated Statements of Stockholders’ Equity for the three and six months
	ended June 30, 2026 and 2025	3
	Unaudited Consolidated Statements of Cash Flows for the six months
	ended June 30, 2026 and 2025	4
	Notes to Unaudited Consolidated Financial Statements:
	Note 1 – Nature of Operations and Basis of Presentation	5
	Note 2 – New Accounting Standards	6
	Note 3 – Investments	6
	Note 4 – Variable Interest Entities	16
	Note 5 – Derivative Instruments	17
	Note 6 – DAC, VOBA, DSI and DFEL	26
	Note 7 – Reinsurance	29
	Note 8 – MRBs	30
	Note 9 – Separate Accounts	31
	Note 10 – Policyholder Account Balances	32
	Note 11 – Future Contract Benefits	36
	Note 12 – Debt	41
	Note 13 – Fair Value of Financial Instruments	43
	Note 14 – Contingencies and Commitments	58
	Note 15 – Shares and Stockholders’ Equity	63
	Note 16 – Segment Information	66
	Note 17 – Realized Gain (Loss)	74
	Note 18 – Federal Income Taxes	75
	Note 19 – Subsequent Event	75
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	76
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	128
Item 4.	Controls and Procedures	128
PART II
Item 1.	Legal Proceedings	129
Item 1A.	Risk Factors	129
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	129
Item 5.	Other Information	129
Item 6.	Exhibits	129
	Exhibit Index for the Report on Form 10-Q	130
	Signatures	131

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

LINCOLN NATIONAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

	As of		As of
	June 30,		December 31,
	2026		2025
	(Unaudited)
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value (amortized cost:
2026 - $103,761; 2025 - $101,462 allowance for credit losses: 2026 - $139; 2025 - $110)	$	95,085	$	93,448
Trading securities	1,515		1,676
Equity securities	456		636
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2026 - $195; 2025 - $199)	23,406		22,472
Policy loans	2,596		2,626
Derivative investments	11,382		9,945
Other investments	8,870		8,105
Total investments	143,310		138,908
Cash and invested cash	10,165		9,502
Deferred acquisition costs, value of business acquired and deferred sales inducements	12,918		12,827
Reinsurance recoverables, net of allowance for credit losses	27,225		28,012
Deposit assets, net of allowance for credit losses	33,619		33,690
Market risk benefit assets	5,077		4,753
Accrued investment income	1,169		1,122
Goodwill	1,144		1,144
Other assets	6,918		7,154
Separate account assets	188,252		180,092
Total assets	$	429,797	$	417,204
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	139,510	$	136,245
Future contract benefits	42,177		42,077
Funds withheld reinsurance liabilities	16,808		17,922
Market risk benefit liabilities	895		1,118
Deferred front-end loads	8,059		7,586
Payables for collateral on investments	9,232		7,954
Short-term debt	400		400
Long-term debt	6,465		5,866
Other liabilities	6,650		7,038
Separate account liabilities	188,252		180,092
Total liabilities	418,448		406,298
Contingencies and Commitments (See Note 14)
Stockholders’ Equity
Preferred stock – 10,000,000 shares authorized:
Series C preferred stock – 20,000 shares authorized, issued and outstanding
as of June 30, 2026, and December 31, 2025	493		493
Series D preferred stock – 20,000 shares authorized, issued and outstanding
as of June 30, 2026, and December 31, 2025	493		493
Common stock – 800,000,000 shares authorized; 191,425,371 and 190,051,477 shares
issued and outstanding as of June 30, 2026, and December 31, 2025, respectively	5,619		5,592
Retained earnings	9,322		8,386
Accumulated other comprehensive income (loss)	(4,578)		(4,058)
Total stockholders’ equity	11,349		10,906
Total liabilities and stockholders’ equity	$	429,797	$	417,204

See accompanying Notes to Consolidated Financial Statements

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LINCOLN NATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions, except per share data)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Revenues
Insurance premiums	$	1,715	$	1,682	$	3,388	$	3,358
Fee income	1,406		1,348		2,783		2,721
Net investment income	1,625		1,471		3,230		2,934
Realized gain (loss)	(406)		(641)		60		(631)
Other revenues	202		184		387		353
Total revenues	4,542		4,044		9,848		8,735
Expenses
Benefits	1,920		1,994		3,975		4,062
Policyholder liability remeasurement (gain) loss	(54)		(88)		(100)		(146)
Interest credited	1,024		916		2,023		1,805
Market risk benefit (gain) loss	(1,460)		(940)		(473)		353
Commissions and other expenses	1,387		1,327		2,862		2,695
Interest and debt expense	82		(13)		164		67
Total expenses	2,899		3,196		8,451		8,836
Income (loss) before taxes	1,643		848		1,397		(101)
Federal income tax expense (benefit)	311		149		237		(78)
Net income (loss)	1,332		699		1,160		(23)
Other comprehensive income (loss), net of tax:
Unrealized investment gain (loss)	279		328		(658)		851
Market risk benefit non-performance risk gain (loss)	(404)		(350)		38		(32)
Policyholder liability discount rate remeasurement gain (loss)	14		(64)		100		(175)
Foreign currency translation adjustment	–		10		(2)		15
Funded status of employee benefit plans	–		(10)		2		(15)
Total other comprehensive income (loss), net of tax	(111)		(86)		(520)		644
Comprehensive income (loss)	$	1,221	$	613	$	640	$	621
Net Income (Loss) Available to Common Stockholders
Net income (loss)	$	1,332	$	699	$	1,160	$	(23)
Preferred stock dividends declared	(11)		(11)		(46)		(46)
Net income (loss) available to common stockholders	$	1,321	$	688	$	1,114	$	(69)
Net Income (Loss) Per Common Share
Basic	$	6.85	$	3.88	$	5.79	$	(0.39)
Diluted	6.72		3.80		5.65		(0.39)
Cash Dividends Declared Per Common Share	$	0.45	$	0.45	$	0.90	$	0.90

See accompanying Notes to Consolidated Financial Statements

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LINCOLN NATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in millions)

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Preferred Stock
Balance as of beginning-of-period	$	986	$	986	$	986	$	986
Balance as of end-of-period	986		986		986		986
Common Stock
Balance as of beginning-of-period	5,602		4,703		5,592		4,674
Issuance of common stock	–		825		–		825
Stock compensation/issued for benefit plans	17		17		27		46
Balance as of end-of-period	5,619		5,545		5,619		5,545
Retained Earnings
Balance as of beginning-of-period	8,091		6,810		8,386		7,645
Net income (loss)	1,332		699		1,160		(23)
Preferred stock dividends declared	(11)		(11)		(46)		(46)
Common stock dividends declared	(90)		(89)		(178)		(167)
Balance as of end-of-period	9,322		7,409		9,322		7,409
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period	(4,467)		(4,306)		(4,058)		(5,036)
Other comprehensive income (loss), net of tax	(111)		(86)		(520)		644
Balance as of end-of-period	(4,578)		(4,392)		(4,578)		(4,392)
Total stockholders’ equity as of end-of-period	$	11,349	$	9,548	$	11,349	$	9,548

See accompanying Notes to Consolidated Financial Statements

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LINCOLN NATIONAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Six Months Ended June 30,
	2026		2025
Cash Flows from Operating Activities
Net income (loss)	$	1,160	$	(23)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities:
Realized (gain) loss	(60)		631
Market risk benefit (gain) loss	(473)		353
Sales and maturities (purchases) of trading securities, net	128		583
Early extinguishment of debt (gain) loss	–		(94)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales inducements
and deferred front-end loads	386		326
Accrued investment income	(47)		(36)
Insurance liabilities and reinsurance-related balances	(1,259)		(559)
Accrued expenses	(174)		(156)
Federal income tax accruals	221		(123)
Other	(302)		(161)
Net cash provided by (used in) operating activities	(420)		741
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities	(9,401)		(6,793)
Sales and maturities of available-for-sale securities and equity securities	7,483		5,795
Purchases of other investments	(918)		(686)
Sales and repayments of other investments	536		584
Issuance of mortgage loans on real estate	(2,834)		(1,933)
Repayment and maturities of mortgage loans on real estate	1,647		1,075
Repayment (issuance) of policy loans, net	30		(76)
Net change in collateral on investments, certain derivatives and related settlements	2,684		(306)
Other	(103)		28
Net cash provided by (used in) investing activities	(876)		(2,312)
Cash Flows from Financing Activities
Payment of long-term debt, including current maturities	(150)		(300)
Issuance of long-term debt, net of issuance costs	744		–
Payment related to early extinguishment of debt	–		(421)
Payment related to sale-leaseback transactions	(2)		(4)
Proceeds from certain financing arrangements	–		33
Payment related to certain financing arrangements	(75)		(84)
Policyholder account balances:
Deposits	9,695		9,623
Withdrawals	(7,023)		(6,250)
Transfers from (to) separate accounts, net	(985)		(303)
Issuance of common stock	–		825
Common stock issued for benefit plans	(27)		(7)
Dividends paid to preferred stockholders	(46)		(46)
Dividends paid to common stockholders	(172)		(153)
Net cash provided by (used in) financing activities	1,959		2,913
Net increase (decrease) in cash and invested cash	663		1,342
Cash and invested cash as of beginning-of-year	9,502		5,801
Cash and invested cash as of end-of-period	$	10,165	$	7,143

See accompanying Notes to Consolidated Financial Statements

4

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LINCOLN NATIONAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Nature of Operations and Basis of Presentation

Nature of Operations

Lincoln National Corporation and its subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments: Annuities, Life Insurance, Group Protection and Retirement Plan Services. In addition, we include financial results for operations that are not directly related to our business segments in Other Operations. The collective group of businesses uses “Lincoln Financial” as its marketing identity. Through our business segments, we sell a wide range of wealth accumulation, wealth protection, group protection and retirement products and solutions. These products primarily include variable annuities, fixed annuities (including indexed), registered index-linked annuities (“RILA”), universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL and VUL, indexed universal life insurance (“IUL”), term life insurance, group life, disability and dental and employer-sponsored retirement plans and services. For more information on our segments and the products and solutions we provide, see Note 16.

Basis of Presentation

The accompanying unaudited consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for the Securities and Exchange Commission (“SEC”) Quarterly Report on Form 10-Q, including Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The information contained in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”), should be read in connection with the reading of these interim unaudited consolidated financial statements.

Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized in our 2025 Form 10-K.

In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the Company’s results. Interim results for the six months ended June 30, 2026, are not necessarily indicative of the results that may be expected for the full year ending December 31, 2026. All material inter-company accounts and transactions have been eliminated in consolidation.

Certain amounts presented in the consolidated financial statements for the prior period in this report have been reclassified to conform to the presentation adopted in the current year.

We present disaggregated disclosures in the Notes below for long-duration insurance balances, applying the level of aggregation by segment as follows:

Segment	Level of Aggregation
Annuities	Variable Annuities
	Fixed Annuities
	Payout Annuities
Life Insurance	Traditional Life
	UL and Other
Group Protection	Group Protection
Retirement Plan Services	Retirement Plan Services

The variable annuities level of aggregation includes RILA products, which are indexed variable annuities. The fixed annuities level of aggregation represents deferred fixed annuities. We have excluded amounts reported in Other Operations from our disaggregated disclosures that are attributable to the indemnity reinsurance agreements with Protective Life Insurance Company (“Protective”) and Swiss Re Life & Health America, Inc. (“Swiss Re”) as these contracts are fully reinsured, run-off institutional pension business in the form of group annuity and the results of certain disability income business.

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2. New Accounting Standards

Future Adoption of Accounting Standards

The following table provides a description of future adoptions of Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board that may have an impact on the consolidated financial statements when adopted. ASUs not listed below were assessed and determined to be either not applicable or insignificant in presentation or amount.

Standard	Description	Effective Date	Effect on Financial Statements or Other Significant Matters
ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40)	This ASU requires disclosure of specified information about certain costs and expenses, including employee compensation, depreciation and intangible asset amortization.	January 1, 2027 (Annual Filings) and January 1, 2028 (Quarterly Filings)	We are evaluating the impact of this ASU to the consolidated financial statements.
ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Topic 350-40): Targeted Improvements to the Accounting for Internal-Use Software	This ASU removes all references to prescriptive and sequential software development stages (referred to as “project stages”) and requires capitalization of software costs when both of the following occur: (i) management has authorized and committed to funding the software project; and (ii) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”).	January 1, 2028	We are evaluating the impact of this ASU to the consolidated financial statements.

3. Investments

Fixed Maturity AFS Securities

The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity available-for-sale (“AFS”) securities (in millions) were as follows:

	As of June 30, 2026
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	75,626	$	625	$	8,305	$	45	$	67,901
U.S. government bonds	1,001		3		42		–		962
State and municipal bonds	2,437		13		383		–		2,067
Foreign government bonds	240		14		51		–		203
RMBS	2,080		36		157		6		1,953
CMBS	3,002		5		116		3		2,888
ABS	19,161		91		270		84		18,898
Hybrid and redeemable preferred securities	214		8		8		1		213
Total fixed maturity AFS securities	$	103,761	$	795	$	9,332	$	139	$	95,085

    

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	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

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of June 30, 2026, were as follows:

	Amortized Cost		Fair Value
Due in one year or less	$	5,574	$	5,516
Due after one year through five years	19,711		19,252
Due after five years through ten years	12,545		12,077
Due after ten years	41,688		34,501
Subtotal	79,518		71,346
Structured securities (RMBS, CMBS, ABS)	24,243		23,739
Total fixed maturity AFS securities	$	103,761	$	95,085

Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations.

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 June 30, 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	$	23,365	$	3,339	$	29,373	$	4,966	$	52,738	$	8,305
U.S. government bonds	815		36		43		6		858		42
State and municipal bonds	623		153		970		230		1,593		383
Foreign government bonds	12		2		125		49		137		51
RMBS	505		37		777		120		1,282		157
CMBS	1,297		32		917		84		2,214		116
ABS	6,416		81		2,654		189		9,070		270
Hybrid and redeemable
preferred securities	44		2		54		6		98		8
Total fixed maturity AFS securities	$	33,077	$	3,682	$	34,913	$	5,650	$	67,990	$	9,332
Total number of fixed maturity AFS securities in an unrealized loss position											6,980

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	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 June 30, 2026, and December 31, 2025, we recognized $3 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 June 30, 2026
	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	2,187	$	627	396
Six months or greater, but less than nine months	471		171		118
Nine months or greater, but less than twelve months	909		434		209
Twelve months or greater	5,133		2,314		867
Total	$	8,700	$	3,546	1,590

	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

(1) We may reflect a security in more than one aging category based on various purchase dates.

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Our gross unrealized losses on fixed maturity AFS securities increased by $333 million for the six months ended June 30, 2026. As discussed further below, we do not believe the unrealized loss position as of June 30, 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 June 30, 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 June 30, 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 June 30, 2026, and December 31, 2025, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of June 30, 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 June 30, 2026, and December 31, 2025, we would have recovered the amortized cost of each corporate bond.

As of June 30, 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 June 30, 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.

Credit Loss Impairment on Fixed Maturity AFS Securities

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 June 30, 2026
	Corporate Bonds		RMBS		CMBS		ABS		Hybrids		Total
Balance as of beginning-of-period	$	38	$	6	$	–	$	66	$	1	$	111
Additions from purchases of PCD debt securities (1)	–		–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	9		–		3		–		–		12
Additions (reductions) for securities for which
credit losses were previously recognized	4		–		–		18		–		22
Reductions for disposed securities	(2)		–		–		–		–		(2)
Reductions for securities charged off	(4)		–		–		–		–		(4)
Balance as of end-of-period (2)	$	45	$	6	$	3	$	84	$	1	$	139

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	As of or For the Six Months Ended June 30, 2026
	Corporate Bonds		RMBS		CMBS		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	11		–		3		–		–		14
Additions (reductions) for securities for which
credit losses were previously recognized	12		–		–		36		–		48
Reductions for disposed securities	(3)		–		–		(2)		–		(5)
Reductions for securities charged-off	(28)		–		–		–		–		(28)
Balance as of end-of-period (2)	$	45	$	6	$	3	$	84	$	1	$	139

	As of or For the Three Months Ended June 30, 2025
	Corporate Bonds		RMBS		CMBS		ABS		Hybrids		Total
Balance as of beginning-of-period	$	23	$	6	$	–	$	44	$	1	$	74
Additions from purchases of PCD debt securities (1)	–		–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	17		–		–		–		–		17
Additions (reductions) for securities for which
credit losses were previously recognized	4		(1)		–		(1)		–		2
Reductions for securities charged off	(8)		–		–		–		–		(8)
Balance as of end-of-period (2)	$	36	$	5	$	–	$	43	$	1	$	85

	As of or For the Six Months Ended June 30, 2025
	Corporate Bonds		RMBS		CMBS		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	25		–		–		8		–		33
Additions (reductions) for securities for which
credit losses were previously recognized	5		(2)		–		11		–		14
Reductions for securities charged off	(8)		–		–		–		–		(8)
Balance as of end-of-period (2)	$	36	$	5	$	–	$	43	$	1	$	85

(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

(2) As of June 30, 2026 and 2025, accrued investment income on fixed maturity AFS securities totaled $932 million and $886 million, respectively, and was excluded from the estimate of credit losses.

Losses from debt instrument modifications were $2 million and $13 million for the three months ended June 30, 2026 and 2025, respectively, and $3 million and $18 million for the six months ended June 30, 2026 and 2025, respectively, reported in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

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Mortgage Loans on Real Estate

The following provides the current and past due composition of our mortgage loans on real estate (in millions):

	As of June 30, 2026						As of December 31, 2025
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,623	$	5,472	$	23,095	$	17,636	$	4,628	$	22,264
30 to 59 days past due	–		112		112		1		93		94
60 to 89 days past due	2		31		33		5		34		39
90 or more days past due	79		164		243		35		144		179
Allowance for credit losses	(111)		(66)		(177)		(113)		(69)		(182)
Unamortized premium (discount)	(6)		139		133		(4)		115		111
Mark-to-market gains (losses) (1)	(31)		(2)		(33)		(33)		–		(33)
Total carrying value	$	17,556	$	5,850	$	23,406	$	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 June 30, 2026 and December 31, 2025, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status were $30 million and $20 million, respectively. As of June 30, 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:

	As of  June 30, 2026		As of  December 31, 2025
Commercial mortgage loans on real estate	$	49	$	5
Residential mortgage loans on real estate	169		148
Total	$	218	$	153

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 June 30, 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	$	888	1.63	$	104	1.38	$	2	1.42	$	994
2025	1,326		1.81	161		1.41	11		1.18	1,498
2024	1,485		1.68	54		1.41	1		2.06	1,540
2023	1,304		1.87	25		1.40	1		1.17	1,330
2022	1,639		2.24	61		1.65	4		1.21	1,704
2021 and prior	10,559		2.73	56		2.67	17		1.66	10,632
Total	$	17,201		$	461		$	36		$	17,698

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	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 June 30, 2026
	Performing		Nonperforming		Total
Origination Year
2026	$	1,188	$	2	$	1,190
2025	1,698		16		1,714
2024	1,554		62		1,616
2023	389		20		409
2022	384		42		426
2021 and prior	536		27		563
Total	$	5,749	$	169	$	5,918

	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

Credit Losses on Mortgage Loans on Real Estate

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.

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Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:

	As of or For the Three Months Ended June 30, 2026
	Commercial		Residential		Total
Balance as of beginning-of-period	$	116	$	64	$	180
Additions (reductions) from provision for credit loss
expense (1)	5		2		7
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Reductions for mortgage loans on real estate charged off	(10)		–		(10)
Balance as of end-of-period (2)	$	111	$	66	$	177

	As of or For the Six Months Ended June 30, 2026
	Commercial		Residential		Total
Balance as of beginning-of-year	$	113	$	69	$	182
Additions (reductions) from provision for credit loss
expense (1)	8		(3)		5
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Reductions for mortgage loans on real estate charged off	(10)		–		(10)
Balance as of end-of-period (2)	$	111	$	66	$	177

	As of or For the Three Months Ended June 30, 2025
	Commercial		Residential		Total
Balance as of beginning-of-period	$	98	$	56	$	154
Additions (reductions) from provision for credit loss
expense (1)	(1)		9		8
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-period (2)	$	97	$	65	$	162

	As of or For the Six Months Ended June 30, 2025
	Commercial		Residential		Total
Balance as of beginning-of-year	$	99	$	53	$	152
Additions (reductions) from provision for credit loss
expense (1)	(2)		12		10
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-period (2)	$	97	$	65	$	162

(1) We recognized $1 million and less than $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2026 and 2025, respectively, and $1 million and less than $1 million for the six months ended June 30, 2026 and 2025, respectively.

(2) Accrued investment income on mortgage loans on real estate totaled $119 million and $107 million as of June 30, 2026 and 2025, respectively, and was excluded from the estimate of credit losses.

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Alternative Investments 

As of June 30, 2026, and December 31, 2025, alternative investments included investments in 375 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.

Impairments on Fixed Maturity AFS Securities

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 June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(11)	$	(21)	$	(20)	$	(30)
RMBS	–		1		–		2
CMBS	(3)		–		(3)		–
ABS	(18)		1		(34)		(19)
Total credit loss benefit (expense)	$	(32)	$	(19)	$	(57)	$	(47)

Payables for Collateral on Investments

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 June 30, 2026				As of December 31, 2025
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	9,051	$	9,051	$	7,809	$	7,809
Securities pledged under securities lending agreements (2)	181		174		145		139
Total payables for collateral on investments	$	9,232	$	9,225	$	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.

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 June 30, 2026 and December 31, 2025, we were not participating in any open repurchase agreements.

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Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:

	For the Six Months Ended June 30,
	2026		2025
Collateral payable for derivative investments	$	1,242	$	(2,210)
Securities pledged under securities
lending agreements	36		(2)
Securities pledged under repurchase agreements	–		418
Investments pledged for FHLB lending program	–		240
Total increase (decrease) in payables for
collateral on investments	$	1,278	$	(1,554)

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 June 30, 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	5		–		–		–		5
Equity securities	1		–		–		–		1
Total gross secured borrowings	$	181	$	–	$	–	$	–	$	181

	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 June 30, 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 June 30, 2026, the fair value of this collateral received that we are permitted to sell or re-pledge was $2.2 billion, and we had re-pledged $59 million of this collateral to cover our collateral requirements.

Assets Pledged as Collateral

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 Federal Home Loan Bank (“FHLB”) and regulatory deposits. See “Payables for Collateral on Investments” above and “Funding Agreements – FABR Funding

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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  June 30, 2026		As of  December 31, 2025
Fixed maturity AFS securities	$	4,040	$	3,578
Trading securities	13		14
Equity securities	1		10
Mortgage loans on real estate	1,592		1,217
Other investments	74		71
Cash and invested cash	53		65
Total assets pledged as collateral	$	5,773	$	4,955

Investment Commitments

As of June 30, 2026, our investment commitments were $4.3 billion, which included $3.0 billion of limited partnerships (“LPs”), $703 million of mortgage loans on real estate, $400 million of asset-backed variable interest entities (“VIEs”) and $224 million of private placement securities.

Concentrations of Financial Instruments

As of June 30, 2026, our most significant investments in one issuer were our investments in securities issued by the U.S. Treasury and the Federal National Mortgage Association with a fair value of $943 million and $902 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.

As of June 30, 2026, and December 31, 2025, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $13.9 billion and $14.2 billion, respectively, or 10% of total investments and our investments in securities in the consumer non-cyclical industry with a fair value of $13.1 billion and $13.2 billion, respectively, or 9% of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

4. Variable Interest Entities

Consolidated VIEs

Asset information (dollars in millions) for the consolidated VIEs included on the Consolidated Balance Sheets was as follows:

	As of June 30, 2026					As of December 31, 2025
	Number of Instruments	Notional/Par Amounts		Carrying Value		Number of Instruments	Notional/Par Amounts		Carrying Value
Assets
Asset-backed VIE	1	$	600	$	600	1	$	210	$	210

There were no gains or losses for consolidated VIEs recognized on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025.

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Unconsolidated VIEs

Structured Securities

Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our ABS, residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”). We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on the Consolidated Balance Sheets. For information about these structured securities, see Note 3.

Limited Partnerships and Limited Liability Companies

We invest in certain LPs and limited liability companies (“LLCs”) that we have concluded are VIEs. Our exposure to loss is limited to the capital we invest in the LPs and LLCs. We do not hold any substantive kick-out or participation rights in the LPs and LLCs, and we do not receive any performance fees or decision maker fees from the LPs and LLCs. Based on our analysis of the LPs and LLCs, other than the asset-backed VIE discussed above, we are not the primary beneficiary of the VIEs as we do not have the power to direct the most significant activities of the LPs and LLCs. The carrying amounts of our investments in the LPs and LLCs are recognized in other investments on the Consolidated Balance Sheets and were $5.8 billion as of June 30, 2026, and December 31, 2025.

Sponsored Investment Funds

We invest in certain closed-end funds that we have concluded are VIEs as the equity holders lack power through voting rights to direct the activities of the entity that most significantly impact its economic performance. We determined that we are not the primary beneficiary of the VIEs as we do not have the power to influence the decisions that are most impactful to the performance of the VIE, and we do not receive all of the economics of the VIE. Our exposure to loss is limited to the capital we invest in the funds. The carrying amounts of our investments in these funds are recognized in equity securities on the Consolidated Balance Sheets and were $164 million and $135 million as of June 30, 2026, and December 31, 2025, respectively.

5. Derivative Instruments

We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, basis risk, commodity risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities.

Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies.

See Note 13 for additional disclosures related to the fair value of our derivative instruments.

Interest Rate Contracts

We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Forward-Starting Interest Rate Swaps

We use forward-starting interest rate swaps to hedge the interest rate exposure within our annuity, life insurance and retirement products.

Interest Rate Cap Corridors

We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain annuity contracts and life insurance products. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor.

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Interest Rate Futures

We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity and RILA products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Interest Rate Swap Agreements

We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity and RILA products.

We also use interest rate swap agreements designated and qualifying as cash flow hedges to hedge the interest rate risk of floating-rate bond coupon payments on certain variable-rate long-term debt and other variable-rate bonds held by replicating a fixed-rate bond.

Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the fair value of certain fixed-rate long-term debt and fixed maturity securities due to interest rate risks.

Bond Forwards and Treasury and Reverse Treasury Locks

We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use bond forwards and reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the anticipated purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities.

Foreign Currency Contracts

We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include:

Foreign Currency Swaps

We use foreign currency swaps to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange one currency for another at specified dates in the future at a specified exchange rate.

We also use foreign currency swaps designated and qualifying as cash flow and fair value hedges to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies.

Foreign Currency Forwards

We use foreign currency forwards to hedge foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency forward is a contractual agreement to exchange one currency for another at specified dates in the future at a specified current exchange rate.

Equity Market Contracts

We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include:

Call Options Based on the S&P 500® Index and Other Indices

We use call options to hedge the liability exposure on certain options in variable annuity, RILA, fixed indexed annuity, IUL and VUL products.

Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500 Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use call options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period.

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Consumer Price Index Swaps

We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception.

Equity Futures

We use equity futures contracts to hedge the liability exposure on certain options in variable annuity and RILA products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price.

Put Options

We use put options to hedge the liability exposure on certain options in variable annuity, RILA and VUL products. Put options are contracts that require the buyers to pay at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount.

Total Return Swaps

We use total return swaps to hedge the liability exposure on certain options in variable annuity, RILA and VUL products.

In addition, we use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest.

Credit Contracts

We use derivative instruments as part of our credit risk management strategy that are economic hedges and include:

Credit Default Swaps – Buying Protection

We use credit default swaps (“CDSs”) to hedge the liability exposure on certain options in variable annuity products.

We buy CDSs to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

CDSs – Selling Protection

We use CDSs to hedge the liability exposure on certain options in variable annuity products.

We sell CDSs to offer credit protection to policyholders and investors. The CDSs hedge the policyholders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A CDS allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring.

Embedded Derivatives

We have embedded derivatives that include:

RILA, Fixed Indexed Annuity and IUL Contracts Embedded Derivatives

Our RILA, fixed indexed annuity and IUL contracts permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500® Index or other indices. Policyholders may elect to rebalance index options at renewal dates. At the end of each indexed term, which can be up to six years, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We use options that are highly correlated to the portfolio allocation decisions of our policyholders, such that we are economically hedged with respect to equity returns for the current reset period.

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Reinsurance-Related Embedded Derivatives

We have certain modified coinsurance and coinsurance with funds withheld reinsurance agreements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance agreements.

Primary Risks Managed by Derivatives

We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows:

	As of June 30, 2026						As of December 31, 2025
	Notional Amounts		Fair Value				Notional Amounts		Fair Value
			Asset		Liability				Asset		Liability
Qualifying Hedges
Cash flow hedges:
Interest rate contracts (1)	$	1,645	$	6	$	14	$	1,300	$	12	$	7
Foreign currency contracts (1)	5,069		426		106		4,922		380		125
Total cash flow hedges	6,714		432		120		6,222		392		132
Fair value hedges:
Interest rate contracts (1)	833		2		–		833		1		–
Foreign currency contracts (1)	25		–		1		25		–		2
Total fair value hedges	858		2		1		858		1		2
Non-Qualifying Hedges
Interest rate contracts (1)	87,638		76		362		84,814		64		321
Foreign currency contracts (1)	421		14		3		289		12		4
Equity market contracts (1)	169,439		16,889		5,607		238,623		15,560		5,685
Credit contracts (1)	86		–		–		17		–		–
Embedded derivatives:
Reinsurance-related (2)	–		–		182		–		–		289
RILA, fixed indexed annuity
and IUL contracts (3)	–		1,437		16,856		–		1,369		15,115
Total derivative instruments	$	265,156	$	18,850	$	23,131	$	330,823	$	17,398	$	21,548

(1) These asset and liability balances are presented on a gross basis. Amounts are reported in derivative investments and other liabilities on the Consolidated Balance Sheets after the evaluation for right of offset subject to master netting agreements.

(2) Reported in funds withheld reinsurance liabilities on the Consolidated Balance Sheets.

(3) Reported in policyholder account balances and deposit assets on the Consolidated Balance Sheets.

The maturity of the notional amounts of derivative instruments (in millions) was as follows:

	Remaining Life as of June 30, 2026
	Less Than 1 Year		1 - 5 Years		6 - 10 Years		11 - 30 Years		Over 30 Years		Total
Interest rate contracts (1)	$	17,298	$	27,809	$	15,570	$	26,829	$	2,610	$	90,116
Foreign currency contracts (2)	272		1,814		1,663		1,724		42		5,515
Equity market contracts	106,674		51,527		9,094		6		2,138		169,439
Credit contracts	–		86		–		–		–		86
Total derivative instruments
with notional amounts	$	124,244	$	81,236	$	26,327	$	28,559	$	4,790	$	265,156

(1) As of June 30, 2026, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was November 27, 2030.

(2) As of June 30, 2026, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was June 16, 2061.

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The following amounts (in millions) were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges:

	Amortized Cost of the Hedged Assets (Liabilities)				Cumulative Fair Value Hedging Adjustment Included in the Amortized Cost of the Hedged Assets (Liabilities)
	As of  June 30, 2026		As of  December 31, 2025		As of  June 30, 2026		As of  December 31, 2025
Line Item in the Consolidated Balance Sheets in
which the Hedged Item is Included
Fixed maturity AFS securities, at fair value (1)	$	637	$	645	$	14	$	21
Long-term debt (2)	(983)		(989)		(108)		(114)

(1) Includes $21 million of unamortized adjustments from discontinued hedges as of June 30, 2026, and December 31, 2025.

(2) Includes $(270) million and $(278) million of unamortized adjustments from discontinued hedges as of June 30, 2026, and December 31, 2025, respectively.

The change in our unrealized gain (loss) on derivative instruments within accumulated other comprehensive income (loss) (“AOCI”) (in millions) was as follows:

	For the Six Months Ended June 30,
	2026		2025
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	450	$	638
Other comprehensive income (loss):
Unrealized holding gains (losses):
Cash flow hedges:
Interest rate contracts	(13)		37
Foreign currency contracts	9		169
Change in foreign currency exchange rate adjustment	87		(474)
Income tax benefit (expense)	(19)		57
Less:
Reclassification adjustment for gains (losses)
included in net income (loss):
Cash flow hedges:
Interest rate contracts (1)	–		1
Interest rate contracts (2)	4		8
Foreign currency contracts (1)	31		27
Foreign currency contracts (3)	1		3
Income tax benefit (expense)	(8)		(8)
Balance as of end-of-period	$	486	$	396

(1) The OCI offset is reported within net investment income on the Consolidated Statements of Comprehensive Income (Loss).

(2) The OCI offset is reported within interest and debt expense on the Consolidated Statements of Comprehensive Income (Loss).

(3) The OCI offset is reported within realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

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The effects of qualifying and non-qualifying hedges (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:

Gain (Loss) Recognized in Income For the Three Months Ended June 30,

2026

2025

Realized Gain (Loss)

Net Investment Income

Interest and Debt Expense

Realized Gain (Loss)

Net Investment Income

Interest and Debt Expense

Total Line Items in which the

Effects of Fair Value or

Cash Flow Hedges are Recorded

$

(406)

$

1,625

$

82

$

(641)

$

1,471

$

(13)

Qualifying Hedges

Gain or (loss) on fair value hedging

relationships:

Interest rate contracts:

Hedged items

–

(4)

–

–

3

(1)

Derivatives designated as hedging

instruments

–

4

–

–

(3)

1

Foreign currency contracts:

Hedged items

–

–

–

–

2

–

Derivatives designated as hedging

instruments

–

–

–

–

(2)

–

Gain or (loss) on cash flow hedging

relationships:

Interest rate contracts:

Amount of gain or (loss) reclassified

from AOCI into income

–

–

2

–

1

4

Foreign currency contracts:

Amount of gain or (loss) reclassified

from AOCI into income

–

15

–

–

12

–

Non-Qualifying Hedges

Interest rate contracts

(44)

–

–

(96)

–

–

Foreign currency contracts

–

–

–

(3)

–

–

Equity market contracts

3,801

–

–

1,185

–

–

Credit contracts

(1)

–

–

1

–

–

Embedded derivatives:

Reinsurance-related

(90)

–

–

(2)

–

–

RILA, fixed indexed annuity

and IUL contracts

(3,450)

–

–

(2,073)

–

–

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Gain (Loss) Recognized in Income For the Six Months Ended June 30,

2026

2025

Realized Gain (Loss)

Net Investment Income

Interest and Debt Expense

Realized Gain (Loss)

Net Investment Income

Interest and Debt Expense

Total Line Items in which the

Effects of Fair Value or

Cash Flow Hedges are Recorded

$

60

$

3,230

$

164

$

(631)

$

2,934

$

67

Qualifying Hedges

Gain or (loss) on fair value hedging

relationships:

Interest rate contracts:

Hedged items

–

(5)

(2)

–

14

(17)

Derivatives designated as hedging

instruments

–

5

2

–

(14)

17

Foreign currency contracts:

Hedged items

–

(1)

–

–

3

–

Derivatives designated as hedging

instruments

–

1

–

–

(3)

–

Gain or (loss) on cash flow hedging

relationships:

Interest rate contracts:

Amount of gain or (loss) reclassified

from AOCI into income

–

–

4

–

1

8

Foreign currency contracts:

Amount of gain or (loss) reclassified

from AOCI into income

1

31

–

3

27

–

Non-Qualifying Hedges

Interest rate contracts

(18)

–

–

(13)

–

–

Foreign currency contracts

2

–

–

(5)

–

–

Equity market contracts

2,805

–

–

41

–

–

Credit contracts

(1)

–

–

2

–

–

Embedded derivatives:

Reinsurance-related

107

–

–

(110)

–

–

RILA, fixed indexed annuity

and IUL contracts

(1,866)

–

–

(419)

–

–

As of June 30, 2026, $67 million of the deferred net gains (losses) on derivative instruments in AOCI were expected to be reclassified to earnings during the next 12 months. The reclassification is impacted by both interest rates and foreign currency forward rates, as the cash flow hedges affecting the reclassification include interest rate swaps and foreign currency swaps.

For the six months ended June 30, 2026 and 2025, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period.

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Information related to our CDSs for which we are the seller (dollars in millions) was as follows:

	As of June 30, 2026
	Maturity	Reason for Entering	Name of Recourse	Credit Rating of Underlying Obligation (1)	Number of Instruments	Fair Value (2)		Maximum Potential Payout (3)
Credit Contract Type
Basket CDSs	6/20/2031	(4)	(5)	BBB+	1	$	2	$	86

(1)    Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings.

(2)    Third-party valuation specialists are used to determine the market value of our CDSs.

(3)    Represents the maximum potential amount of future payments (undiscounted) we could be required to make under the CDSs, assuming the value of the underlying referenced securities was reduced to zero.

(4)    CDSs were entered into in order to hedge the liability exposure on certain variable annuity products.

(5)    Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract.

As of December 31, 2025, we did not have any exposure related to CDSs for which we are the seller.

Credit Risk

We are exposed to credit losses in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or non-performance risk. The non-performance risk is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure, less collateral held. As of June 30, 2026, the non-performance risk adjustment was zero. The credit risk associated with such agreements is minimized by entering into agreements with financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under nearly all of our ISDA agreements, our insurance subsidiaries have agreed to maintain certain financial strength ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. We did not have any exposure as of June 30, 2026, or December 31, 2025.

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The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows:

	As of June 30, 2026				As of December 31, 2025
	Collateral Posted by Counterparty		Collateral Posted to Counterparty		Collateral Posted by Counterparty		Collateral Posted to Counterparty
S&P Credit Rating of Counterparty
AA-	$	2,407	$	(2)	$	2,868	$	(4)
A+	5,660		(5)		4,612		(15)
A	63		–		64		–
A-	894		–		240		–
Total cash collateral	$	9,024	$	(7)	$	7,784	$	(19)

Balance Sheet Offsetting

Information related to the effects of offsetting on the Consolidated Balance Sheets (in millions) was as follows:

	As of June 30, 2026
	Derivative Instruments		Embedded Derivative Instruments		Total
Financial Assets
Gross amount of recognized assets	$	17,387	$	1,437	$	18,824
Gross amounts offset	(6,005)		–		(6,005)
Net amount of assets	11,382		1,437		12,819
Gross amounts not offset:
Cash collateral	(9,024)		–		(9,024)
Non-cash collateral (1)	(2,358)		–		(2,358)
Net amount	$	–	$	1,437	$	1,437
Financial Liabilities
Gross amount of recognized liabilities	$	89	$	17,038	$	17,127
Gross amounts offset	(27)		–		(27)
Net amount of liabilities	62		17,038		17,100
Gross amounts not offset:
Cash collateral	(7)		–		(7)
Non-cash collateral (2)	(55)		–		(55)
Net amount	$	–	$	17,038	$	17,038

(1) Excludes excess non-cash collateral received of $1.8 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

(2) Excludes excess non-cash collateral pledged of $59 million, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

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	As of December 31, 2025
	Derivative Instruments		Embedded Derivative Instruments		Total
Financial Assets
Gross amount of recognized assets	$	15,940	$	1,369	$	17,309
Gross amounts offset	(5,995)		–		(5,995)
Net amount of assets	9,945		1,369		11,314
Gross amounts not offset:
Cash collateral	(7,784)		–		(7,784)
Non-cash collateral (1)	(2,161)		–		(2,161)
Net amount	$	–	$	1,369	$	1,369
Financial Liabilities
Gross amount of recognized liabilities	$	150	$	15,404	$	15,554
Gross amounts offset	(90)		–		(90)
Net amount of liabilities	60		15,404		15,464
Gross amounts not offset:
Cash collateral	(19)		–		(19)
Non-cash collateral	(28)		–		(28)
Net amount	$	13	$	15,404	$	15,417

(1) Excludes excess non-cash collateral received of $1.6 billion, as the collateral offset is limited to the net estimated fair value of derivatives after application of netting arrangements.

6. DAC, VOBA, DSI and DFEL

The following table reconciles deferred acquisition costs (“DAC”), value of business acquired (“VOBA”) and deferred sales inducements (“DSI”) (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2026		2025
DAC, VOBA and DSI
Variable Annuities	$	4,158	$	4,112
Fixed Annuities	525		478
Traditional Life	1,279		1,308
UL and Other	6,448		6,421
Group Protection	193		198
Retirement Plan Services	305		304
Other Operations	10		6
Total DAC, VOBA and DSI	$	12,918	$	12,827

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The following table reconciles deferred front-end loads (“DFEL”) (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2026		2025
DFEL
Variable Annuities	$	259	$	264
UL and Other	7,699		7,265
Other Operations (1)	101		57
Total DFEL	$	8,059	$	7,586

(1) Represents DFEL reported in Other Operations attributable to the indemnity reinsurance agreement with Protective that is excluded from the following tables. We reported $101 million and $57 million of ceded DFEL in reinsurance recoverables on the Consolidated Balance Sheets as of June 30, 2026, and December 31, 2025, respectively.

The following tables summarize the changes in DAC (in millions):

	As of or For the Six Months Ended June 30, 2026
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	4,008	$	452	$	1,281	$	6,057	$	198	$	242
Deferrals	270		85		45		213		60		9
Amortization	(219)		(36)		(71)		(167)		(65)		(9)
Balance as of end-of-period	$	4,059	$	501	$	1,255	$	6,103	$	193	$	242

	As of or For the Six Months Ended June 30, 2025
	Variable Annuities		Fixed Annuities		Traditional Life		UL and Other		Group Protection		Retirement Plan Services
Balance as of beginning-of-year	$	3,851	$	394	$	1,335	$	5,916	$	178	$	242
Deferrals	264		26		45		198		67		9
Amortization	(195)		(31)		(72)		(158)		(59)		(10)
Balance as of end-of-period	$	3,920	$	389	$	1,308	$	5,956	$	186	$	241

DAC amortization expense of $285 million and $567 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $262 million and $525 million, respectively, was recorded for the corresponding periods in 2025.

The following tables summarize the changes in VOBA (in millions):

	As of or For the Six Months Ended June 30, 2026
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	12	$	27	$	339
Amortization	(1)		(3)		(19)
Balance as of end-of-period	$	11	$	24	$	320

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	As of or For the Six Months Ended June 30, 2025
	Fixed Annuities		Traditional Life		UL and Other
Balance as of beginning-of-year	$	13	$	35	$	375
Amortization	(1)		(4)		(18)
Balance as of end-of-period	$	12	$	31	$	357

VOBA amortization expense of $11 million and $23 million was recorded in commissions and other expenses on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $11 million and $23 million, respectively, was recorded for the corresponding periods in 2025. No additions or write-offs were recorded for each respective period.

The following tables summarize the changes in DSI (in millions):

	As of or For the Six Months Ended June 30, 2026
	Variable Annuities		Fixed Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	104	$	14	$	25	$	62
Deferrals	–		–		1		2
Amortization	(5)		(1)		(1)		(1)
Balance as of end-of-period	$	99	$	13	$	25	$	63

	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	$	113	$	16	$	27	$	42
Deferrals	–		–		–		10
Amortization	(5)		(1)		(1)		(1)
Balance as of end-of-period	$	108	$	15	$	26	$	51

DSI amortization expense of $4 million and $8 million was recorded in interest credited on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $4 million and $8 million, respectively, was recorded for the corresponding periods in 2025.

The following tables summarize the changes in DFEL (in millions):

	As of or For the Six Months Ended June 30, 2026				As of or For the Six Months Ended June 30, 2025
	Variable Annuities		UL and Other		Variable Annuities		UL and Other
Balance as of beginning-of-year	$	264	$	7,265	$	273	$	6,406
Deferrals	7		627		7		573
Amortization	(12)		(193)		(12)		(183)
Balance as of end-of-period	259		7,699		268		6,796
Less: reinsurance recoverables	–		217		–		233
Balance as of end-of-period, net of reinsurance	$	259	$	7,482	$	268	$	6,563

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DFEL amortization of $104 million and $205 million was recorded in fee income on the Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2026, respectively, and $91 million and $195 million, respectively, was recorded for the corresponding periods in 2025.

7. Reinsurance

Fortitude Re

Effective October 1, 2023, we entered into two reinsurance agreements with Fortitude Reinsurance Company Ltd. (“Fortitude Re”), an authorized Bermuda reinsurer with reciprocal jurisdiction reinsurer status in Indiana, to reinsure certain blocks of in-force UL with secondary guarantees (“ULSG”), MoneyGuard® and fixed annuity products, including group pension annuities. Fortitude Re represents our largest reinsurance exposure as of June 30, 2026, and December 31, 2025.

The first agreement was structured as a coinsurance treaty between us and Fortitude Re for the ULSG and fixed annuities blocks. As significant insurance risk was transferred for ULSG products and life-contingent annuities, amounts recoverable from Fortitude Re were $10.5 billion and $10.6 billion as of June 30, 2026, and December 31, 2025, respectively. We reported a deferred loss on the transaction of $2.4 billion and $2.5 billion as of June 30, 2026, and December 31, 2025, respectively. We amortized $23 million and $47 million of the deferred loss during the three and six months ended June 30, 2026, respectively, and $23 million and $46 million for the three and six months ended June 30, 2025, respectively. Annuities that are not life-contingent do not contain significant insurance risk; therefore, we reported deposit assets for these contracts of $2.2 billion and $2.4 billion as of June 30, 2026, and December 31, 2025, respectively.

The second agreement was structured as coinsurance with funds withheld for the MoneyGuard block; however, as we retained significant insurance risk under the agreement, we reported deposit assets of $8.7 billion and $8.5 billion as of June 30, 2026, and December 31, 2025, respectively. In this coinsurance with funds withheld reinsurance agreement, we as the ceding company withhold, and therefore retain, the assets backing the deposit assets. We held investments with a carrying value of $7.8 billion and $8.9 billion in support of reserves associated with the Fortitude Re transaction in a funds withheld arrangement as of June 30, 2026, and December 31, 2025, respectively, which consisted of the following (in millions):

	As of June 30,		As of December 31,
	2026		2025
Fixed maturity AFS securities	$	6,379	$	7,325
Derivative investments	19		21
Other investments	1,291		1,388
Cash and invested cash	6		88
Accrued investment income	78		88
Other assets	3		–
Total	$	7,776	$	8,910

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8. MRBs

The following table reconciles market risk benefits (“MRBs”) (in millions) to MRB assets and MRB liabilities on the Consolidated Balance Sheets:

	As of June 30, 2026						As of December 31, 2025
	Assets		Liabilities		Net (Assets) Liabilities		Assets		Liabilities		Net (Assets) Liabilities
Variable Annuities	$	4,979	$	726	$	(4,253)	$	4,655	$	940	$	(3,715)
Fixed Annuities	50		167		117		51		175		124
Retirement Plan Services	48		2		(46)		47		3		(44)
Total MRBs	$	5,077	$	895	$	(4,182)	$	4,753	$	1,118	$	(3,635)

The following table summarizes the balances of and changes in net MRB (assets) liabilities (in millions):

	As of or For the Six Months Ended June 30, 2026						As of or For the Six Months Ended June 30, 2025
	Variable Annuities		Fixed Annuities		Retirement Plan Services		Variable Annuities		Fixed Annuities		Retirement Plan Services
Balance as of beginning-of-year	$	(3,715)	$	124	$	(44)	$	(3,804)	$	32	$	(42)
Less: Effect of cumulative changes in
non-performance risk	366		(35)		1		(153)		(33)		–
Balance as of beginning-of-year, before the effect
of changes in non-performance risk	(4,081)		159		(45)		(3,651)		65		(42)
Issuances	2		2		–		10		–		–
Attributed fees collected	749		15		4		734		16		3
Benefit payments	(13)		–		–		(14)		–		–
Effect of changes in interest rates	(278)		(14)		–		175		35		(2)
Effect of changes in equity markets	(1,218)		(2)		(4)		(792)		–		(3)
Effect of changes in equity index volatility	28		–		–		35		3		–
In-force updates and other changes in MRBs (1)	226		3		–		185		13		2
Balance as of end-of-period, before the effect of
changes in non-performance risk	(4,585)		163		(45)		(3,318)		132		(42)
Effect of cumulative changes in
non-performance risk	332		(46)		(1)		(102)		(42)		–
Balance as of end-of-period	(4,253)		117		(46)		(3,420)		90		(42)
Less: Ceded MRB assets (liabilities)	(387)		–		–		(339)		–		–
Balance as of end-of-period, net of reinsurance	$	(3,866)	$	117	$	(46)	$	(3,081)	$	90	$	(42)
Weighted-average age of policyholders (years)	74		71		64		73		70		63
Net amount at risk (2)	$	1,594	$	438	$	2	$	1,689	$	272	$	2

(1) Consists primarily of changes in MRB assets and liabilities due to aggregation impacts related to fund performance and other assumptions and the impact of changes in actual to expected policyholder behavior.

(2) Net amount at risk (“NAR”) is the current guaranteed minimum benefit in excess of the current account balance as of the balance sheet date. For guaranteed living benefits (“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 feature exists in a contract, the guaranteed benefit rider that provides the highest NAR is used in the calculation.

See “MRBs” in Note 13 for details related to our fair value judgments, assumptions, inputs and valuation methodology.

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9. Separate Accounts

The following table presents the fair value of separate account assets (in millions) reported on the Consolidated Balance Sheets by major investment category:

	As of June 30,		As of December 31,
	2026		2025
Mutual funds and collective investment trusts:
Equity funds:
Domestic	$	88,904	$	84,274
International	19,978		18,262
Other equity funds	1,718		1,505
Balanced funds	47,390		46,561
Bond funds	24,757		24,164
Money market funds	2,130		2,096
Other funds	1,595		1,491
Exchange-traded funds	285		323
Fixed maturity AFS securities	178		164
Cash and invested cash	38		35
Other investments	1,279		1,217
Total separate account assets	$	188,252	$	180,092

The following table reconciles separate account liabilities (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2026		2025
Variable Annuities	$	126,196	$	122,945
UL and Other	37,869		34,038
Retirement Plan Services	24,121		23,047
Other Operations (1)	66		62
Total separate account liabilities	$	188,252	$	180,092

(1) Represents separate account liabilities reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($55 million and $53 million as of June 30, 2026, and December 31, 2025, respectively) that are excluded from the following tables.

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The following table summarizes the balances of and changes in separate account liabilities (in millions):

	As of or For the Six Months Ended June 30, 2026						As of or For the Six Months Ended June 30, 2025
	Variable Annuities		UL and Other		Retirement Plan Services		Variable Annuities		UL and Other		Retirement Plan Services
Balance as of beginning-of-year	$	122,945	$	34,038	$	23,047	$	117,998	$	28,841	$	21,541
Gross deposits	2,582		1,290		1,010		2,831		787		1,177
Withdrawals	(9,383)		(400)		(1,904)		(7,683)		(480)		(1,805)
Policyholder assessments	(1,340)		(508)		(97)		(1,299)		(494)		(91)
Change in market performance	9,680		3,603		2,111		7,290		2,025		1,451
Net transfers from (to) general account	1,712		(154)		(46)		908		(63)		(53)
Balance as of end-of-period	$	126,196	$	37,869	$	24,121	$	120,045	$	30,616	$	22,220
Cash surrender value	$	124,787	$	35,499	$	24,107	$	118,658	$	25,814	$	22,205

10. 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,
	2026		2025
Variable Annuities	$	42,568	$	40,060
Fixed Annuities	29,418		28,728
UL and Other	35,690		35,986
Retirement Plan Services	23,419		23,843
Other (1)	8,415		7,628
Total policyholder account balances	$	139,510	$	136,245

(1) Represents policyholder account balances reported primarily in Other Operations attributable to the indemnity reinsurance agreements with Protective ($3.3 billion and $3.5 billion as of June 30, 2026, and December 31, 2025, respectively) and funding agreements ($4.8 billion and $3.7 billion as of June 30, 2026, and December 31, 2025, respectively) that are excluded from the following tables. See “Funding Agreements” below for more information.

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

	As of or For the Six Months Ended June 30, 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	3,552			1,327			1,637			1,781
Withdrawals	(1,934)			(1,258)			(759)			(2,749)
Policyholder assessments	(3)			(30)			(2,170)			(9)
Net transfers from (to) separate account	(1,353)			–			154			217
Interest credited	469			523			721			336
Change in fair value of embedded derivative
instruments and other	1,777			128			121			–
Balance as of end-of-period	$	42,568		$	29,418		$	35,690		$	23,419
Weighted-average crediting rate	2.3		%	3.6		%	4.0		%	2.8		%
Net amount at risk (1)(2)	$	1,594		$	438		$	289,590		$	2
Cash surrender value	41,161			28,116			32,285			23,383

	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

(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.

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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, 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%	433		–		–		–		–		433
3.01% - 4.00%	1,067		–		–		–		–		1,067
4.01% and above	4		–		–		–		–		4
Other (1)	–		–		–		–		–		41,055
Total	$	1,509	$	–	$	–	$	–	$	4	$	42,568
Fixed Annuities
Up to 1.00%	$	125	$	635	$	396	$	122	$	2,146	$	3,424
1.01% - 2.00%	153		241		78		42		8,628		9,142
2.01% - 3.00%	1,251		61		1		2		64		1,379
3.01% - 4.00%	772		–		–		–		–		772
4.01% and above	152		–		–		–		–		152
Other (1)	–		–		–		–		–		14,549
Total	$	2,453	$	937	$	475	$	166	$	10,838	$	29,418
UL and Other
Up to 1.00%	$	271	$	–	$	246	$	32	$	630	$	1,179
1.01% - 2.00%	507		–		–		–		2,584		3,091
2.01% - 3.00%	6,042		18		157		–		–		6,217
3.01% - 4.00%	14,291		–		1		–		–		14,292
4.01% and above	3,369		–		–		–		–		3,369
Other (1)	–		–		–		–		–		7,542
Total	$	24,480	$	18	$	404	$	32	$	3,214	$	35,690
Retirement Plan Services
Up to 1.00%	$	650	$	612	$	625	$	4,169	$	6,358	$	12,414
1.01% - 2.00%	517		1,275		1,278		157		502		3,729
2.01% - 3.00%	1,584		25		439		3		–		2,051
3.01% - 4.00%	3,685		54		7		5		–		3,751
4.01% and above	1,474		–		–		–		–		1,474
Total	$	7,910	$	1,966	$	2,349	$	4,334	$	6,860	$	23,419

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	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

(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.

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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 $2.4 billion as of June 30, 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 June 30, 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 $1.6 billion as of June 30, 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.

11. Future Contract Benefits

The following table reconciles future contract benefits (in millions) to the Consolidated Balance Sheets:

	As of June 30,		As of December 31,
	2026		2025
Payout Annuities (1)	$	1,991	$	2,037
Traditional Life (1)	3,704		3,755
Group Protection (2)	5,781		5,836
UL and Other (3)	18,686		17,948
Other Operations (4)	8,843		9,179
Other (5)	3,172		3,322
Total future contract benefits	$	42,177	$	42,077

(1) See “LFPB” below for further information.

(2) See “Liability for Future Claims” below for further information.

(3) See “Additional Liabilities for Other Insurance Benefits” below for further information.

(4) Represents future contract benefits reported in Other Operations primarily attributable to the indemnity reinsurance agreements with Protective ($5.2 billion and $5.4 billion as of June 30, 2026, and December 31, 2025, respectively) and Swiss Re ($2.0 billion as of June 30, 2026, and December 31, 2025) that are excluded from the following tables.

(5) Represents other miscellaneous reserves that are not representative of long-duration contracts, primarily related to participating traditional life insurance contracts and incurred but not reported and in course of settlement life insurance liabilities, and are excluded from the following tables.

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LFPB

The liability for future policy benefits (“LFPB”) represents reserves associated with our limited payment life-contingent annuities and non-participating traditional life insurance contracts (i.e., term insurance). The reserve is the net of present value of expected future policy benefits less present value of expected net premiums as summarized in the following table (in millions, except years):

	As of or For the Six Months Ended June 30, 2026				As of or For the Six Months Ended June 30, 2025
	Payout Annuities		Traditional Life		Payout Annuities		Traditional Life
Present Value of Expected Net Premiums
Balance as of beginning-of-year	$	–	$	5,351	$	–	$	5,873
Less: Effect of cumulative changes in discount
rate assumptions	–		(90)		–		(275)
Beginning balance at original discount rate	–		5,441		–		6,148
Effect of actual variances from expected experience (1)	–		(18)		–		(62)
Adjusted balance as of beginning-of-year	–		5,423		–		6,086
Issuances	–		140		–		141
Interest accrual	–		112		–		124
Net premiums collected	–		(355)		–		(384)
Flooring impact of LFPB	–		(19)		–		(7)
Ending balance at original discount rate	–		5,301		–		5,960
Effect of cumulative changes in discount
rate assumptions	–		(174)		–		(154)
Balance as of end-of-period	$	–	$	5,127	$	–	$	5,806
Present Value of Expected Future Policy Benefits
Balance as of beginning-of-year	$	2,037	$	9,106	$	2,009	$	9,647
Less: Effect of cumulative changes in discount
rate assumptions	(182)		(144)		(251)		(438)
Beginning balance at original discount rate (2)	2,219		9,250		2,260		10,085
Effect of actual variances from expected experience (1)	(3)		(46)		(6)		(82)
Adjusted balance as of beginning-of-year	2,216		9,204		2,254		10,003
Issuances	51		140		46		141
Interest accrual	44		184		44		199
Benefit payments	(106)		(406)		(97)		(430)
Ending balance at original discount rate (2)	2,205		9,122		2,247		9,913
Effect of cumulative changes in discount
rate assumptions	(214)		(291)		(208)		(240)
Balance as of end-of-period	$	1,991	$	8,831	$	2,039	$	9,673
Net balance as of end-of-period	$	1,991	$	3,704	$	2,039	$	3,867
Less: Reinsurance recoverables	1,368		246		1,467		345
Net balance as of end-of-period, net of reinsurance	$	623	$	3,458	$	572	$	3,522
Weighted-average duration of future policyholder
benefit liability (years)	8		8		9		8

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(1) For the six months ended June 30, 2026, the Traditional Life actual to expected reserve impact on expected net premiums did not have any significantly different actual experience compared to expected attributable to either mortality or policyholder behavior; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to mortality and policyholder behavior, which favorably impacted the liability by $36 million and $10 million, respectively. For the six months ended June 30, 2025, the Traditional Life actual to expected reserve impact on expected net premiums was attributable primarily to policyholder behavior and mortality, which unfavorably impacted the liability by $43 million and $19 million, respectively; and the actual to expected reserve impact on expected future policy benefits was attributable primarily to policyholder behavior and mortality, which favorably impacted the liability by $57 million and $25 million, respectively. For the six months ended June 30, 2026 and 2025, Payout Annuities did not have any significantly different actual experience compared to expected.

(2) Includes deferred profit liability within Payout Annuities of $101 million, $92 million, $70 million and $62 million as of June 30, 2026, December 31, 2025, June 30, 2025 and December 31, 2024, respectively.

The following table summarizes the discounted and undiscounted expected future gross premiums and expected future benefit payments (in millions):

	As of June 30, 2026				As of June 30, 2025
	Undiscounted		Discounted		Undiscounted		Discounted
Payout Annuities
Expected future gross premiums	$	–	$	–	$	–	$	–
Expected future benefit payments	3,221		1,991		3,385		2,039
Traditional Life
Expected future gross premiums	12,831		8,815		13,683		9,422
Expected future benefit payments	12,787		8,831		14,050		9,673

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Payout Annuities
Gross premiums	$	34	$	25	$	51	$	48
Interest accretion	22		22		44		44
Traditional Life
Gross premiums	375		312		678		626
Interest accretion	36		38		72		75

The following table summarizes the weighted-average interest rates:

	For the Six Months Ended June 30,
	2026		2025
Payout Annuities
Interest accretion rate	4.0	%	4.0	%
Current discount rate	5.3	%	5.2	%
Traditional Life
Interest accretion rate	5.0	%	5.0	%
Current discount rate	5.0	%	4.8	%

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Liability for Future Claims

The liability for future claims represents reserves associated with our group long-term disability and life waiver products. The following table summarizes the balances of and changes in liability for future claims (in millions, except years):

	Group Protection
	As of or For the Six Months Ended June 30,
	2026		2025
Balance as of beginning-of-year	$	5,836	$	5,628
Less: Effect of cumulative changes in discount
rate assumptions	(363)		(550)
Beginning balance at original discount rate	6,199		6,178
Effect of actual variances from expected experience (1)	(111)		(178)
Adjusted beginning-of-year balance	6,088		6,000
New incidence	753		808
Interest	108		100
Benefit payments	(748)		(724)
Ending balance at original discount rate	6,201		6,184
Effect of cumulative changes in discount
rate assumptions	(420)		(425)
Balance as of end-of-period	5,781		5,759
Less: Reinsurance recoverables	121		122
Balance as of end-of-period, net of reinsurance	$	5,660	$	5,637
Weighted-average duration of liability for future
claims (years)	5		5

(1) Generally, the experience exhibited for the Group Protection business relates to morbidity and, to a lesser extent, mortality. Group Protection long-duration products have limited exposure to lapse risk, as the liabilities for future claims are limited to those associated with claim reserves. For the six months ended June 30, 2026 and 2025, morbidity comprised substantially all of the favorable effect of actual variances from expected experience, as our claims experience was more favorable than assumed.

The following table summarizes the discounted and undiscounted expected future benefit payments (in millions):

	As of June 30, 2026				As of June 30, 2025
	Undiscounted		Discounted		Undiscounted		Discounted
Group Protection
Expected future benefit payments	$	7,557	$	5,781	$	7,447	$	5,759

The following table summarizes the gross premiums and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Group Protection
Gross premiums	$	909	$	926	$	1,823	$	1,859
Interest accretion	53		50		108		100

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The following table summarizes the weighted-average interest rates:

	For the Six Months Ended June 30,
	2026		2025
Group Protection
Interest accretion rate	3.7	%	3.4	%
Current discount rate	5.1	%	4.8	%

Additional Liabilities for Other Insurance Benefits

Additional liabilities for other insurance benefits represent reserves associated with our UL and VUL contracts with secondary guarantees, including MoneyGuard®. The following table summarizes the balances of and changes in additional liabilities for other insurance benefits (in millions, except years):

	UL and Other
	As of or For the Six Months Ended June 30,
	2026		2025
Balance as of beginning-of-year	$	17,948	$	16,062
Less: Effect of cumulative changes in shadow
balance in AOCI	(2,191)		(2,673)
Balance as of beginning-of-year, excluding
shadow balance in AOCI	20,139		18,735
Effect of actual variances from expected experience (1)(2)	107		117
Adjusted beginning-of-year balance	20,246		18,852
Interest accrual	499		461
Net assessments collected	567		616
Benefit payments	(608)		(532)
Balance as of end-of-period, excluding shadow
balance in AOCI	20,704		19,397
Effect of cumulative changes in shadow
balance in AOCI	(2,018)		(2,408)
Balance as of end-of-period	18,686		16,989
Less: Reinsurance recoverables	5,652		5,385
Balance as of end-of-period, net of reinsurance	$	13,034	$	11,604
Weighted-average duration of additional liabilities
for other insurance benefits (years)	16		16

(1) For the six months ended June 30, 2026 and 2025, the actual to expected reserve impact was attributable primarily to mortality, which unfavorably impacted the liability by $107 million and $116 million, respectively.

(2) For the six months ended June 30, 2026 and 2025, the effect of actual variances from expected experience, net of reinsurance, was $41 million and $35 million, respectively.

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The following table summarizes the gross assessments and interest accretion (in millions) recognized in insurance premiums and benefits, respectively, on the Consolidated Statements of Comprehensive Income (Loss):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
UL and Other
Gross assessments	$	564	$	787	$	1,345	$	1,487
Interest accretion	251		233		499		461

The following table summarizes the weighted-average interest rates:

	For the Six Months Ended June 30,
	2026		2025
UL and Other
Interest accretion rate	5.4	%	5.4	%

12. Debt

Changes in long-term debt, excluding current portion, (in millions) were as follows:

	For the Six
	Months Ended
	June 30, 2026
Balance as of beginning-of-year	$	5,866
Refinance variable-rate term loan (1)	100
Issuance of 6.800% Subordinated Notes, due 2056 (2)	500
Unamortized discounts	8
Unamortized debt issuance costs	(3)
Unamortized adjustments from discontinued hedges	(8)
Fair value hedge on interest rate swap agreements	2
Balance as of end-of-period	$	6,465

(1) On March 30, 2026, we refinanced our $150 million variable-rate term loan due 2027 into a $250 million variable-rate term loan due March 30, 2031. The term loan uses a Secured Overnight Financing Rate-based interest rate, plus an applicable credit spread of 125 basis points as of June 30, 2026.

(2) On June 29, 2026, we issued $500 million aggregate principal amount of 6.800% Fixed-to-Fixed Reset Rate Subordinated Notes due July 15, 2056 (“6.800% Subordinated Notes”). Beginning on July 15, 2036, and on each of the subsequent five-year anniversaries thereof, the interest rate will reset to the five-year Treasury rate as of the applicable reset interest determination date plus 240 basis points.

The priority ranking of our outstanding long-term debt is as follows: (i) unsecured senior debt, which consists of our outstanding senior notes and our variable-rate term loan, (ii) our subordinated notes, including the newly issued 6.800% Subordinated Notes, then (iii) our outstanding capital securities.

Credit Facility

On March 27, 2026, we entered into an amended and restated credit agreement with a syndicate of banks, which amended and restated our existing five-year revolving amended and restated credit agreement dated as of December 21, 2023. The credit agreement, which is unsecured, allows for the issuance of letters of credit (“LOCs”) and borrowing of up to $2.0 billion and has a commitment termination date of March 27, 2031. The LOCs under the credit facility are used primarily to satisfy reserve credit requirements of (i) our domestic insurance companies for which reserve credit is provided by our affiliated reinsurance companies and (ii) certain ceding companies of our

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legacy reinsurance business. Lincoln National Corporation guarantees the obligations of its subsidiaries under the credit agreement. As of June 30, 2026, there were $61 million of LOCs issued, and no amount was drawn on the issued LOCs.

The credit agreement, as currently in effect, contains:

•Customary terms and conditions, including covenants restricting our ability to incur liens, merge or consolidate with another entity where we are not the surviving entity and dispose of all or substantially all of our assets;

•Financial covenants including maintenance of a minimum consolidated net worth equal to the sum of $9.932 billion plus 50% of the aggregate net proceeds of equity issuances received by us after December 31, 2025, all as more fully set forth in the agreement; and a debt-to-capital ratio as defined in accordance with the agreement not to exceed 0.35 to 1.00;

•A cap on secured non-operating indebtedness and non-operating indebtedness of our subsidiaries equal to 7.5% of total capitalization, as defined in accordance with the agreement; and

•Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default.

Upon an event of default, the credit agreement, as currently in effect, provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of June 30, 2026, we were in compliance with all such covenants.

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13. Fair Value of Financial Instruments

Financial Instruments Carried at Fair Value

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:

	As of June 30, 2026
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	64,503	$	3,398	$	67,901
U.S. government bonds	893		69		–		962
State and municipal bonds	–		2,067		–		2,067
Foreign government bonds	–		203		–		203
RMBS	–		1,953		–		1,953
CMBS	–		2,771		117		2,888
ABS	–		13,866		5,032		18,898
Hybrid and redeemable preferred securities	29		104		80		213
Trading securities	–		1,327		188		1,515
Equity securities (1)	31		231		30		292
Mortgage loans on real estate	–		–		195		195
Derivative investments (2)	–		17,351		62		17,413
Other investments – short-term investments	–		245		5		250
MRB assets	–		–		5,077		5,077
Other assets:
Ceded MRBs	–		–		2		2
Indexed annuity ceded embedded derivatives	–		–		1,437		1,437
Separate account assets	348		187,904		–		188,252
Total assets	$	1,301	$	292,594	$	15,623	$	309,518
Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts	$	–	$	–	$	(16,856)	$	(16,856)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives	–		154		(336)		(182)
MRB liabilities	–		–		(895)		(895)
Other liabilities:
Ceded MRBs	–		–		(389)		(389)
Derivative liabilities (2)	–		(5,977)		(116)		(6,093)
Total liabilities	$	–	$	(5,823)	$	(18,592)	$	(24,415)

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	As of December 31, 2025
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair
	(Level 1)		(Level 2)		(Level 3)		Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	65,132	$	3,913	$	69,045
U.S. government bonds	849		20		–		869
State and municipal bonds	–		2,147		–		2,147
Foreign government bonds	–		226		–		226
RMBS	–		2,122		–		2,122
CMBS	–		2,417		85		2,502
ABS	–		12,698		3,584		16,282
Hybrid and redeemable preferred securities	32		140		83		255
Trading securities	–		1,347		329		1,676
Equity securities (1)	234		234		33		501
Mortgage loans on real estate	–		–		199		199
Derivative investments (2)	–		16,001		28		16,029
Other investments – short-term investments	–		193		1		194
MRB assets	–		–		4,753		4,753
Other assets:
Ceded MRBs	–		–		2		2
Indexed annuity ceded embedded derivatives	–		–		1,369		1,369
Separate account assets	383		179,709		–		180,092
Total assets	$	1,498	$	282,386	$	14,379	$	298,263
Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts	$	–	$	–	$	(15,115)	$	(15,115)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives	–		145		(434)		(289)
MRB liabilities	–		–		(1,118)		(1,118)
Other liabilities:
Ceded MRBs	–		–		(359)		(359)
Derivative liabilities (2)	–		(6,008)		(136)		(6,144)
Total liabilities	$	–	$	(5,863)	$	(17,162)	$	(23,025)

(1) Total investments included in the fair value hierarchy exclude certain closed-end funds that are measured at estimated fair value using the NAV per share (or its equivalent) practical expedient. The estimated fair value of such investments was $164 million and $135 million as of June 30, 2026, and December 31, 2025, respectively.

(2) Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

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The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.

	For the Three Months Ended June 30, 2026
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	3,282	$	(12)	$	1	$	184	$	(57)	$	3,398
CMBS	103		1		(1)		42		(28)		117
ABS	4,153		(18)		(32)		1,068		(139)		5,032
Hybrid and redeemable preferred
securities	82		–		(1)		(1)		–		80
Trading securities	223		–		–		(35)		–		188
Equity securities	33		(3)		–		–		–		30
Mortgage loans on real estate	198		(2)		–		(1)		–		195
Other investments – short-term
investments	28		–		–		5		(28)		5
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,332		139		–		(34)		–		1,437
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(13,444)	$	(3,589)	$	–	$	177	$	–	$	(16,856)
Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(252)		(84)		–		–		–		(336)
Other liabilities:
Ceded MRBs (3)	(329)		(60)		–		–		–		(389)
Derivative liabilities, net (4)	(65)		11		–		–		–		(54)

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	For the Three Months Ended June 30, 2025
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	2,813	$	(24)	$	5	$	30	$	89	$	2,913
RMBS	8		–		–		67		(7)		68
CMBS	30		–		–		18		(7)		41
ABS	2,618		–		(12)		410		(39)		2,977
Hybrid and redeemable preferred
securities	81		–		–		1		–		82
Trading securities	281		3		–		(4)		–		280
Equity securities	35		(2)		–		(4)		54		83
Mortgage loans on real estate	232		(1)		2		(1)		–		232
Other investments – short-term
investments	15		–		–		9		–		24
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,092		73		–		71		–		1,236
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(10,807)	$	(2,146)	$	–	$	(136)	$	–	$	(13,089)
Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(323)		14		–		–		–		(309)
Other liabilities:
Ceded MRBs (3)	(314)		(27)		–		–		–		(341)
Derivative liabilities, net (4)	(109)		(6)		–		–		–		(115)

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	For the Six Months Ended June 30, 2026
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	3,913	$	(26)	$	(29)	$	317	$	(777)	$	3,398
CMBS	85		1		(2)		70		(37)		117
ABS	3,584		(25)		(71)		1,675		(131)		5,032
Hybrid and redeemable preferred
securities	83		–		(2)		(1)		–		80
Trading securities	329		(2)		–		(117)		(22)		188
Equity securities	33		(6)		–		3		–		30
Mortgage loans on real estate	199		(1)		(1)		(2)		–		195
Other investments – short-term
investments	1		–		–		32		(28)		5
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,369		120		–		(52)		–		1,437
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(15,115)	$	(1,986)	$	–	$	245	$	–	$	(16,856)
Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(434)		98		–		–		–		(336)
Other liabilities:
Ceded MRBs (3)	(359)		(30)		–		–		–		(389)
Derivative liabilities, net (4)	(108)		12		–		42		–		(54)

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	For the Six Months Ended June 30, 2025
					Gains		Issuances,		Transfers
	Beginning		Items		(Losses)		Sales,		Into or		Ending
	Asset		Included		in		Maturities,		Out		Asset
	(Liability)		in		OCI		Settlements,		of		(Liability)
	Fair		Net		and		Calls,		Level 3,		Fair
	Value		Income		Other (1)		Net		Net		Value
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	2,702	$	(37)	$	3	$	134	$	111	$	2,913
RMBS	1		–		–		74		(7)		68
CMBS	8		–		–		40		(7)		41
ABS	2,092		(21)		5		883		18		2,977
Hybrid and redeemable preferred
securities	63		–		–		19		–		82
Trading securities	259		5		–		(4)		20		280
Equity securities	34		(8)		–		3		54		83
Mortgage loans on real estate	232		(2)		4		(2)		–		232
Other investments – short-term
investments	23		–		–		1		–		24
Other assets:
Ceded MRBs (3)	2		–		–		–		–		2
Indexed annuity ceded embedded
derivatives (4)	1,115		50		–		71		–		1,236
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)	$	(12,449)	$	(472)	$	–	$	(168)	$	–	$	(13,089)
Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)	(234)		(75)		–		–		–		(309)
Other liabilities:
Ceded MRBs (3)	(381)		40		–		–		–		(341)
Derivative liabilities, net (4)	(136)		21		–		–		–		(115)

(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

(2) Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(3) Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(4) Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

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The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:

	For the Three Months Ended June 30, 2026
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	338	$	(50)	$	(20)	$	(84)	$	–	$	184
CMBS	42		–		–		–		–		42
ABS	1,213		–		–		(105)		(40)		1,068
Hybrid and redeemable preferred
securities	–		–		(1)		–		–		(1)
Trading securities	–		(20)		(7)		(8)		–		(35)
Equity securities	5		(5)		–		–		–		–
Mortgage loans on real estate	1		–		–		(2)		–		(1)
Other investments – short-term investments	5		–		–		–		–		5
Other assets – indexed annuity ceded
embedded derivatives	–		–		–		(34)		–		(34)
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(402)	$	–	$	–	$	579	$	–	$	177

	For the Three Months Ended June 30, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	414	$	(241)	$	(6)	$	(127)	$	(10)	$	30
RMBS	67		–		–		–		–		67
CMBS	33		(15)		–		–		–		18
ABS	574		(41)		–		(82)		(41)		410
Hybrid and redeemable preferred
securities	1		–		–		–		–		1
Trading securities	11		(10)		–		(5)		–		(4)
Equity securities	7		(11)		–		–		–		(4)
Mortgage loans on real estate	1		–		–		(2)		–		(1)
Other investments – short-term investments	9		–		–		–		–		9
Other assets – indexed annuity ceded
embedded derivatives	67		–		–		4		–		71
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(425)	$	–	$	–	$	289	$	–	$	(136)

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	For the Six Months Ended June 30, 2026
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	600	$	(64)	$	(20)	$	(176)	$	(23)	$	317
CMBS	70		–		–		–		–		70
ABS	2,006		–		–		(267)		(64)		1,675
Hybrid and redeemable preferred
securities	–		–		(1)		–		–		(1)
Trading securities	–		(32)		(7)		(12)		(66)		(117)
Equity securities	8		(5)		–		–		–		3
Mortgage loans on real estate	1		–		–		(3)		–		(2)
Derivative investments	42		–		–		–		–		42
Other investments – short-term investments	33		–		(1)		–		–		32
Other assets – indexed annuity ceded
embedded derivatives	–		–		–		(52)		–		(52)
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(761)	$	–	$	–	$	1,006	$	–	$	245

	For the Six Months Ended June 30, 2025
	Issuances		Sales		Maturities		Settlements		Calls		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	665	$	(286)	$	(6)	$	(229)	$	(10)	$	134
RMBS	74		–		–		–		–		74
CMBS	55		(15)		–		–		–		40
ABS	1,163		(41)		(10)		(172)		(57)		883
Hybrid and redeemable preferred
securities	21		(2)		–		–		–		19
Trading securities	57		(52)		–		(9)		–		(4)
Equity securities	15		(12)		–		–		–		3
Mortgage loans on real estate	1		(1)		–		(2)		–		(2)
Other investments – short-term investments	11		–		(10)		–		–		1
Other assets – indexed annuity ceded
embedded derivatives	93		–		–		(22)		–		71
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts	$	(656)	$	–	$	–	$	488	$	–	$	(168)

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The following summarizes changes in unrealized gains (losses) included in net income (loss) related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Investments:
Trading securities (1)	$	–	$	3	$	(2)	$	–
Equity securities (1)	(2)		(1)		(5)		(7)
Mortgage loans on real estate (1)	(2)		(1)		(1)		(2)
Derivative investments, net (1)	(4)		(6)		(26)		(6)
MRBs, net (2)	1,454		933		460		(367)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives (1)	(84)		14		98		(75)
Embedded derivatives – indexed annuity
and IUL contracts, net (1)	365		206		733		375

(1) Included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

(2) Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	(7)	$	(7)	$	(45)	$	(17)
CMBS	(1)		–		(2)		–
ABS	(30)		(6)		(69)		10
Hybrid and redeemable preferred
securities	(1)		–		(1)		–
Mortgage loans on real estate	–		2		–		4

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The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:

	For the Three Months Ended June 30, 2026						For the Three Months Ended June 30, 2025
	Transfers		Transfers				Transfers		Transfers
	Into		Out of				Into		Out of
	Level 3		Level 3		Total		Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	–	$	(57)	$	(57)	$	90	$	(1)	$	89
RMBS	–		–		–		–		(7)		(7)
CMBS	–		(28)		(28)		–		(7)		(7)
ABS	17		(156)		(139)		13		(52)		(39)
Equity securities	–		–		–		54		–		54
Other investments – short-term investments	–		(28)		(28)		–		–		–

	For the Six Months Ended June 30, 2026						For the Six Months Ended June 30, 2025
	Transfers		Transfers				Transfers		Transfers
	Into		Out of				Into		Out of
	Level 3		Level 3		Total		Level 3		Level 3		Total
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	56	$	(833)	$	(777)	$	112	$	(1)	$	111
RMBS	–		–		–		–		(7)		(7)
CMBS	–		(37)		(37)		–		(7)		(7)
ABS	41		(172)		(131)		70		(52)		18
Trading securities	–		(22)		(22)		20		–		20
Equity securities	–		–		–		54		–		54
Other investments – short-term investments	–		(28)		(28)		–		–		–

Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and six months ended June 30, 2026 and 2025, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available.

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The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of June 30, 2026:

								Weighted
								Average
	Fair		Valuation	Significant	Assumption or			Input
	Value		Technique	Unobservable Inputs	Input Ranges			Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	439	Discounted cash flow	Liquidity/duration adjustment (2)	0.0%	–	7.9%	2.0%
CMBS	40		Discounted cash flow	Liquidity/duration adjustment (2)	2.0%	–	2.1%	2.0%
Hybrid and redeemable
preferred securities	39		Discounted cash flow	Liquidity/duration adjustment (2)	1.7%	–	1.8%	1.7%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5%	–	4.5%	4.5%
MRB assets	5,077		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.3%	–	2.0%	1.6%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.0%
Other assets:
Ceded MRBs (11)	2
Indexed annuity
ceded embedded
derivatives	1,437		Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(16,770)	Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
MRB liabilities	(895)		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.3%	–	2.0%	1.6%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.0%
Other liabilities – ceded
MRBs (11)	(389)

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The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2025:

								Weighted
								Average
	Fair		Valuation	Significant	Assumption or			Input
	Value		Technique	Unobservable Inputs	Input Ranges			Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds	$	706	Discounted cash flow	Liquidity/duration adjustment (2)	0.0%	–	6.2%	1.4%
ABS	8		Discounted cash flow	Liquidity/duration adjustment (2)	1.1%	–	1.1%	1.1%
CMBS	41		Discounted cash flow	Liquidity/duration adjustment (2)	1.8%	–	1.9%	1.8%
Hybrid and redeemable
preferred securities	40		Discounted cash flow	Liquidity/duration adjustment (2)	1.6%	–	1.9%	1.7%
Equity securities	4		Discounted cash flow	Liquidity/duration adjustment (2)	4.5%	–	4.5%	4.5%
MRB assets	4,753		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.2%	–	1.6%	1.3%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.1%
Other assets:
Ceded MRBs (11)	2
Indexed annuity
ceded embedded
derivatives	1,369		Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(15,031)	Discounted cash flow	Lapse (3)	0.0%	–	9.0%	(10)
				Mortality (7)			(9)	(10)
MRB liabilities	(1,118)		Discounted cash flow	Lapse (3)	1.0%	–	30.0%	(10)
				Utilization of GLB withdrawals (4)	85.0%	–	100.0%	93.0%
				Claims utilization factor (5)	50.0%	–	100.0%	(10)
				Premiums utilization factor (5)	80.0%	–	115.0%	(10)
				Non-performance risk (6)	0.2%	–	1.6%	1.3%
				Mortality (7)			(9)	(10)
				Volatility (8)	1.0%	–	27.0%	15.1%
Other liabilities – ceded
MRBs (11)	(359)

(1) Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

(2) The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

(3) The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period.

(4) The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

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(5) The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal.

(6) The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption.

(7) The mortality input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

(8) The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account balance assigned to each index.

(9) The mortality is based on a combination of company and industry experience, adjusted for improvement factors.

(10) A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.

(11) The fair value inputs for ceded MRBs are consistent with those used to value MRB assets and liabilities.

From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.

The embedded derivative liability associated with Fortitude Re was excluded from the above table. As discussed in Note 7, this embedded derivative liability was created through a coinsurance with funds withheld reinsurance agreement where the investments supporting the reinsurance agreement were withheld by us and continue to be reported on the Consolidated Balance Sheets. This reinsurance-related embedded derivative is valued as a total return swap with reference to the fair value of the investments held by us. Accordingly, the unobservable inputs utilized in the valuation of the reinsurance-related embedded derivative are a component of the investments supporting the reinsurance agreement that are reported on the Consolidated Balance Sheets.

Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows:

•Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement.

•Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse or mortality inputs would have resulted in a decrease in the fair value measurement.

•MRBs – Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement, except for policies with guaranteed death benefit (“GDB”) riders only, in which case an increase in mortality inputs would have resulted in an increase in the fair value measurement.

For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input would not have affected the other inputs.

As part of our ongoing valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary.

Fair Value Option

Mortgage loans on real estate, net of allowance for credit losses, as reported on the Consolidated Balance Sheets, includes mortgage loans on real estate for which the fair value option was elected. The fair value option allows us to elect fair value as an alternative measurement for mortgage loans not otherwise reported at fair value. We have made these elections for certain mortgage loans associated with modified coinsurance agreements to help mitigate the inconsistency in earnings that would otherwise result from the use of embedded derivatives included with these loans. Changes in fair value are reflected in realized gain (loss) on the Consolidated Statement of Comprehensive Income (Loss). Changes in fair value due to instrument-specific credit risk are estimated using changes in credit spreads and quality ratings for the period reported. Mortgage loans on real estate for which the fair value option was elected are valued using third-party pricing services. We have procedures in place to review the valuations each quarter to ensure they are reasonable, including utilizing a separate third party to reperform the valuation for a selection of mortgage loans on an annual basis. Due to lack of observable inputs, mortgage loans electing the fair value option are classified as Level 3 within the fair value hierarchy.

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The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:

	As of June 30,		As of December 31,
	2026		2025
Fair value	$	195	$	199
Aggregate contractual principal	229		231

For information on current and past due composition and accruing status for loans where we have elected the fair value option, see Note 3.

Financial Instruments Not Carried at Fair Value

The following summarizes the fair value by the fair value hierarchy levels and the carrying amount of our financial instruments not carried at fair value (in millions):

	As of June 30, 2026
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount
Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	22,347	$	22,347	$	23,211
Other investments	–		741		6,508		7,249		7,249
Policy loans	–		2,596		–		2,596		2,596
Liabilities
Policyholder account balances – certain investment
contracts	$	–	$	–	$	(35,886)	$	(35,886)	$	(44,055)
Policyholder account balances – funding agreements	–		(4,810)		–		(4,810)		(4,833)
Short-term debt	–		(399)		–		(399)		(400)
Long-term debt	–		(6,091)		–		(6,091)		(6,465)
Funds withheld reinsurance-related liabilities – excluding
embedded derivatives	–		–		(16,626)		(16,626)		(16,626)

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	As of December 31, 2025
	Asset (Liability) Measurement in the						Total
	Fair Value Hierarchy						Fair		Carrying
	(Level 1)		(Level 2)		(Level 3)		Value		Amount
Assets
Investments:
Mortgage loans on real estate	$	–	$	–	$	21,756	$	21,756	$	22,273
Other investments	–		962		5,759		6,721		6,721
Policy loans	–		2,626		–		2,626		2,626
Liabilities
Policyholder account balances – certain investment
contracts	$	–	$	–	$	(36,710)	$	(36,710)	$	(43,793)
Policyholder account balances – funding agreements	–		(3,778)		–		(3,778)		(3,749)
Short-term debt	–		(399)		–		(399)		(400)
Long-term debt	–		(5,605)		–		(5,605)		(5,866)
Funds withheld reinsurance-related liabilities – excluding
embedded derivatives	–		–		(17,633)		(17,633)		(17,633)

The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on the Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown above are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.

Mortgage Loans on Real Estate

The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on internal quality rating, maturity and future income. The ratings for mortgages in good standing are based on occupancy, debt-service coverage, LTV and forecasted tenancy. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 3 within the fair value hierarchy.

Other Investments

The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments include primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also include FHLB stock, which is carried at cost and periodically evaluated for impairment based on ultimate recovery of par value, and the investments in corporate-owned universal life insurance and variable universal life insurance, which are recorded at cash surrender value and not required to be included in the table above. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

Policy Loans

The carrying value for policy loans is the unpaid principal balance. Policy loans are fully collateralized by the cash surrender value of underlying insurance policies. As a result, the carrying value of the policy loans approximates the fair value. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

Policyholder Account Balances – Certain Investment Contracts

Policyholder account balances include account balances of certain investment contracts that exclude significant mortality or morbidity risk. The fair value of the account balances of certain investment contracts is based on a discounted cash flow model as of the balance

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sheet date. The inputs used to measure the fair value of these policyholder account balances are classified as Level 3 within the fair value hierarchy.

Policyholder Account Balances – Funding Agreements

The fair value of funding agreements issued under the FABN program is based on quoted market prices. The fair value of secured funding agreements issued under FABRs and funding agreements issued to FHLB is based on a discounted cash flow model as of the balance sheet date. The inputs used to measure the fair value of funding agreements are classified as Level 2 within the fair value hierarchy. For more information on funding agreements, see Note 10.

Short-Term and Long-Term Debt

The fair value of short-term and long-term debt is based on quoted market prices. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy.

Funds Withheld Reinsurance Liabilities

Funds withheld reinsurance liabilities includes our obligation to pay reinsurers under coinsurance with funds withheld and modified coinsurance arrangements where the Company is the cedant. This liability includes embedded derivatives, which are total return swaps with contractual returns that are attributable to the Company’s reinsurance agreements. The embedded derivatives are carried at fair value and thus excluded from the preceding table. The inputs used to measure the remaining balance are classified as Level 3 within the fair value hierarchy.

14. Contingencies and Commitments

Contingencies

Regulatory and Litigation Matters

Regulatory bodies, such as state insurance departments, the SEC, the Financial Industry Regulatory Authority, tax authorities and other regulatory bodies regularly make inquiries and conduct examinations, investigations or audits concerning our compliance with, among other things, insurance laws, securities laws, tax laws, laws governing the activities of broker-dealers and registered investment advisers and unclaimed property laws. Tax-related matters can include disputes with taxing authorities, ongoing audits, evaluation of filing positions and any potential assessments related thereto.

LNC is involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding verdicts obtained in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value.

Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.

We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of June 30, 2026.

For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these

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cases, the estimate reflects the reasonably possible loss or range of loss. As of June 30, 2026, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $70 million, after-tax. Any estimate is not an indication of expected loss, if any, or of the Company’s maximum possible loss exposure on such matters.

For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews.

Among other matters, we are presently engaged in litigation, including relating to cost of insurance rates (“Cost of Insurance and Other Litigation”), as described below. No accrual has been made for some of these matters. Although a loss is believed to be reasonably possible for these matters, for some of these matters, we are not able to estimate a reasonably possible amount or range of potential liability. An adverse outcome in one or more of these matters may have a material impact on the consolidated financial statements, but, based on information currently known, management does not believe those cases are likely to have such an impact.

Cost of Insurance and Other Litigation

Cost of Insurance Litigation

Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company, filed in the U.S. District Court for the District of Connecticut, No. 3:16-cv-00827, is a putative class action that was served on LNL on June 8, 2016. Plaintiff is the owner of a universal life insurance policy who alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who owned policies containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on behalf of all such policyholders. On January 11, 2019, the court dismissed plaintiff’s complaint in its entirety. In response, plaintiff filed a motion for leave to amend the complaint, which, on September 25, 2023, the court granted in part and denied in part. Plaintiff filed an amended complaint on October 10, 2023. On March 7, 2024, the parties entered into a provisional settlement agreement that encompasses policies that are at issue in this case, which also includes all policies at issue in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company, TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, each of which are described below. The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the provisional settlement. On June 16, 2025, the court granted final approval of the provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the Iwanski, TVPX ARS INC. and Vida cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). As of June 30, 2026, the total provisional settlement amount of $147.5 million, pre-tax, remains accrued.

Iwanski v. First Penn-Pacific Life Insurance Company (“FPP”), No. 2:18-cv-01573, filed in the U.S. District Court for the Eastern District of Pennsylvania is a putative class action that was filed on April 13, 2018. Plaintiff alleges that defendant FPP breached the terms of his life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued by FPP containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a provisional settlement agreement that encompasses all policies at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York (both discussed below). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the provisional settlement. On June 16, 2025, the court granted final approval of the Glover provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the Iwanski, TVPX ARS INC. and Vida cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). A motion has been filed to stay the proceedings in this matter pending the completion of the settlement approval process in Glover.

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TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company, filed in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:18-cv-02989, is a putative class action that was filed on July 17, 2018. Plaintiff alleges that LNL charged more for non-guaranteed cost of insurance than permitted by the policy. Plaintiff seeks to represent all universal life and variable universal life policyholders who own policies issued by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on behalf of all such policyholders. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a provisional settlement agreement that encompasses all policies at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company (discussed above) and Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York (discussed below). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the provisional settlement. On June 16, 2025, the court granted final approval of the Glover provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the Iwanski, TVPX ARS INC. and Vida cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida). A motion has been filed to stay the proceedings in this matter pending the completion of the settlement approval process in Glover.

Vida Longevity Fund, LP v. Lincoln Life & Annuity Company of New York, pending in the U.S. District Court for the Southern District of New York, No. 1:19-cv-06004, is a putative class action that was filed on June 27, 2019. Plaintiff alleges that Lincoln Life & Annuity Company of New York (“LLANY”) charged more for non-guaranteed cost of insurance than was permitted by the policies. On March 31, 2022, the court issued an order granting plaintiff’s motion for class certification and certified a class of all current or former owners of six universal life insurance products issued by LLANY that were assessed a cost of insurance charge any time on or after June 27, 2013. Plaintiff seeks damages on behalf of the class. On April 19, 2023, LLANY filed a motion for summary judgment. On March 7, 2024, the parties in Glover v. Connecticut General Life Insurance Company and The Lincoln National Life Insurance Company (discussed above) entered into a provisional settlement agreement that encompasses all policies at issue in this case, as the Glover case is inclusive of all policies in this case, as well as in the lawsuits captioned Iwanski v. First Penn-Pacific Life Insurance Company and TVPX ARS INC., as Securities Intermediary for Consolidated Wealth Management, LTD. v. The Lincoln National Life Insurance Company (both discussed above). The Glover plaintiffs’ motion for preliminary approval of the provisional settlement was filed on March 8, 2024, and on September 4, 2024, the court granted preliminary approval of the provisional settlement. On March 29, 2024, the court issued its summary judgment decision, granting LLANY’s motion in part and denying it in part, and entering summary judgment against twenty-two policyholders that the court determined were not economically harmed. On June 25, 2024, the court granted LLANY’s April 12, 2024, motion to stay proceedings in this matter pending the completion of the approval process in Glover. On December 16, 2024, the court heard oral argument on the issue of whether to grant final approval of the Glover provisional settlement. On June 16, 2025, the court granted final approval of the Glover provisional settlement and on June 18, 2025, entered final judgment and dismissed the case. On July 16, 2025, plaintiffs in the Iwanski, TVPX ARS INC. and Vida cases appealed the final approval of the provisional settlement to the U.S. Court of Appeals for the Second Circuit. The provisional settlement, which is subject to the outcome of the appeal, consists of a $147.5 million pre-tax cash payment for Glover class members (inclusive of all policyholders in Iwanski, TVPX ARS INC. and Vida).

Angus v. The Lincoln National Life Insurance Company, pending in the U.S. District Court for the Eastern District of Pennsylvania, No. 2:22-cv-01878, is a putative class action filed on May 13, 2022. Plaintiff alleges that defendant LNL breached the terms of her life insurance policy by deducting non-guaranteed cost of insurance charges in excess of what is permitted by the policies. Plaintiff seeks to represent all owners of universal life insurance policies issued or insured by LNL or its predecessors containing non-guaranteed cost of insurance provisions that are similar to those of plaintiff’s policy and seeks damages on their behalf. Breach of contract is the only cause of action asserted. On August 26, 2022, LNL filed a motion to dismiss. We are vigorously defending this matter.

EFG Bank AG, Cayman Branch, et al. v. The Lincoln National Life Insurance Company, No. 17-cv-02592-GJP (E.D. Pa.), filed on February 1, 2017; Brighton Trustees, LLC, et al. v. The Lincoln National Life Insurance Company, No. 2:23-cv-2251-GJP (E.D. Pa.), filed on April 20, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on June 12, 2023); and Ryan K. Crayne, on behalf of and as trustee for Carlton Peak Trust v. The Lincoln National Life Insurance Company, No. 2:24-cv-00053-GJP, filed on November 17, 2023 (and transferred to the U.S. District Court for the Eastern District of Pennsylvania on January 4, 2024) are consolidated civil actions pending in the Eastern District of Pennsylvania. In each case other than Crayne, plaintiffs purport to own universal life insurance policies or interests in universal life insurance policies originally issued by Jefferson-Pilot (now LNL). In Crayne, plaintiffs purport to own litigation claims concerning universal life policies originally issued by Jefferson-Pilot (now LNL). Among other things, plaintiffs in each case allege that LNL breached the terms of policyholders’ contracts when it increased non-guaranteed cost of insurance rates beginning in 2016 (or, in Brighton Trustees, in 2016 and 2017). On April 28, 2026, we entered into an agreement with plaintiffs in each case on certain material terms of settlement, subject to final documentation. The parties fully executed a final settlement agreement and release dated May 19, 2026, in settlement of all claims in all three cases. The cases were dismissed by stipulation on May 22, 2026.

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Other Litigation

Henry Morgan et al. v. Lincoln National Corporation d/b/a Lincoln Financial Group, et al, filed in the District Court of the 14th Judicial District of Dallas County, Texas, No. DC-23-02492, is a putative class action that was filed on February 22, 2023. Plaintiffs Henry Morgan, Susan Smith, Charles Smith, Laura Seale, Terri Cogburn, Laura Baesel, Kathleen Walton, Terry Warner, and Toni Hale (“Plaintiffs”) allege on behalf of a putative class that Lincoln National Corporation d/b/a Lincoln Financial Group, LNL and LLANY (together, “Lincoln”), FMR, LLC, and Fidelity Product Services, LLC (“Fidelity”) created and marketed misleading and deceptive insurance products with attributes of investment products. The putative class comprises all individuals and entities who purchased Lincoln OptiBlend products that allocated account monies to the 1-Year Fidelity AIM Dividend Participation Account, between January 1, 2020, to December 31, 2022. Plaintiffs assert the following claims individually and on behalf of the class, (1) violations of the Texas Deceptive Trade Practices Act against Lincoln; (2) common-law fraud against Lincoln; (3) negligent misrepresentation against Lincoln and Fidelity; and (4) aiding and abetting fraud against Fidelity. Plaintiffs allege they suffered damages from “a missed investment return of approximately 5-6%” and mitigation damages. They seek actual, consequential and punitive damages, as well as pre-judgment and post-judgment interest, attorney’s fees and litigation costs. On March 31, 2023, the Lincoln defendants filed a notice of removal removing the action from the 14th Judicial District of Dallas County, Texas, to the United States District Court for the Northern District of Texas, Dallas Division. On May 8, 2023, the Lincoln defendants and the Fidelity defendants filed motions to dismiss, which remain pending. We are vigorously defending this matter.

Donald C. Meade v. Lincoln National Corporation, Ellen Cooper, Dennis Glass, and Randal Freitag (“Defendants”), No. 2:24-cv-01704, pending in the U.S. District Court for the Eastern District of Pennsylvania, is a putative class action that was filed on April 23, 2024. On June 24, 2024, Local 295 IBT Employer Group Pension Trust Fund (“Local 295”) filed a motion for appointment as lead plaintiff. On October 23, 2024, the court granted this motion. Local 295 seeks to represent persons and entities that purchased or otherwise acquired Lincoln National Corporation common stock between December 8, 2021, and November 2, 2022, inclusive (the “Class Period”). On December 23, 2024, plaintiff filed an amended complaint. Plaintiff alleges claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, and under SEC Rule 10b-5. Plaintiff alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts that plaintiff alleges Defendants knew, or recklessly disregarded, at the time the statements were made, about the Company’s business, operations, and prospects with respect to its Guaranteed Universal Life policies and their lapse rates. The action seeks unspecified compensatory damages and reasonable costs and expenses incurred in this action, including counsel fees and expert fees, together with equitable/injunctive relief or such other relief as the court may deem just and proper. On February 21, 2025, Defendants filed a motion to dismiss. On July 24, 2025, the court granted Defendants’ motion to dismiss and dismissed the amended complaint without prejudice. Plaintiff was given 14 days from the date of the court’s order to file a second amended complaint. On August 7, 2025, plaintiff informed the court that it would pursue its appellate rights and would not file a second amended complaint. On August 28, 2025, the court entered an Order of Judgment granting Defendants’ motion to dismiss and directing that the amended complaint be dismissed with prejudice. On September 25, 2025, plaintiff filed a Notice to Appeal to the United States Court of Appeals for the Third Circuit in respect of the court’s order of July 24, 2025, and Order of Judgment of August 28, 2025 (including as to all prior opinions and orders that have merged into that order). We are vigorously defending this matter.

In Re Lincoln National Corporation Stockholder Derivative Litigation, No. 2:24-cv-02713, is the matter name for the following two civil actions that were consolidated for all purposes on September 26, 2024, by the U.S. District Court for the Eastern District of Pennsylvania: Lawrence Hollin, derivatively on behalf of Nominal Defendant Lincoln National Corporation v. Ellen G. Cooper, Dennis R. Glass, Randal J. Freitag, Deirdre P Connelly, William H. Cunningham, Reginald E. Davis, Eric G. Johnson, Gary C. Kelly, M. Leanne Lachman, Dale LeFebvre, Janet Liang, Michael F. Mee, Lynn M. Utter and Patrick S. Pittard (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. 2:24-cv-02713 (E.D. Pa.), filed on June 20, 2024; and Robert R. Wiersum, derivatively on behalf of Lincoln National Corporation v. Ellen G. Cooper, Dennis R. Glass, Randal J. Freitag, Deirdre P Connelly, William H. Cunningham, Reginald E. Davis, Eric G. Johnson, Gary C. Kelly, M. Leanne Lachman, Dale LeFebvre, Janet Liang, Michael F. Mee, Lynn M. Utter and Patrick S. Pittard (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. 2:24-cv-03251 (E.D. Pa.), filed on July 23, 2024. By the same September 26, 2024, order, the court directed, among other things, that all proceedings and deadlines in this consolidated case be stayed until 30 days after resolution of all motions to dismiss (including the exhaustion of all related appeals) in the Meade matter discussed above. Plaintiffs bring this complaint for, inter alia, alleged breaches of fiduciary duties between November 4, 2020, at latest, through the date of filing and allege violations of the federal securities laws caused by the issuance of allegedly materially false and misleading statements issued, or caused to be issued, by the Individual Defendants in the Company’s SEC filings and other public statements. Plaintiffs allege that the Company thereby suffered loss, injury and damage. Among other relief, plaintiffs seek, in favor of the Company, damages sustained by the Company, punitive damages and attorney’s fees, an accounting for all damages to the Company and an unspecified order directing the Company to improve existing corporate governance and internal procedures. The Individual Defendants are vigorously defending these consolidated matters.

In Re Lincoln National Corporation Shareholder Derivative Litigation, No. CV-2024-0011319, is the matter name for the following two civil actions that were consolidated for all purposes on February 28, 2025, by the Court of Common Pleas of Delaware County, Pennsylvania: Anthony Morgan, derivatively on behalf of Nominal Defendant Lincoln National Corporation v. Ellen G. Cooper, Deirdre P. Connelly, William H. Cunningham, Reginald Davis, Eric C. [G.] Johnson, Gary C. Kelly, M. Leanne Lachman, Dale LeFebvre, Janet Liang, Lynn M. Utter, Dennis Glass and Randal Freitag (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. CV-2024-011319 (Court of Common Pleas of Delaware County, Pennsylvania) filed on December 31, 2024; and Harry Rosenthal, derivatively on behalf of Nominal

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Defendant Lincoln National Corporation v. Ellen G. Cooper, Deirdre P Connelly, William H. Cunningham, Reginald Davis, Eric C. [G.] Johnson, Gary C. Kelly, M. Leanne Lachman, Dale LeFebvre, Janet Liang, Lynn M. Utter, Dennis Glass and Randal Freitag (“Individual Defendants”) and Lincoln National Corporation (“Nominal Defendant”), No. CV-2025-00146 (Court of Common Pleas of Delaware County, Pennsylvania) filed on January 3, 2025. By the same February 28, 2025, order, the court directed, among other things, that all proceedings and deadlines in this consolidated case be stayed until 30 days after resolution of all motions to dismiss (including the exhaustion of all related appeals) in the Meade matter discussed above. Plaintiffs bring this verified stockholder derivative complaint purportedly on behalf of Nominal Defendant Lincoln National Corporation against the Individual Defendants, inter alia, for alleged breaches of fiduciary duties for allegedly failing to comply with federal securities laws, by the issuance of allegedly materially false and misleading statements in the Company’s SEC filings and other public statements. Plaintiffs allege claims against the Individual Defendants for breach of fiduciary duties and for unjust enrichment. Plaintiffs allege, inter alia, that the Individual Defendants failed to disclose to investors: (i) that the Company was experiencing a decline in its VUL business; (ii) that, as a result, the goodwill associated with the life insurance business was overstated; (iii) that, as a result, the Company’s policy lapse assumptions were outdated; (iv) that, as a result, the Company’s reserves were overstated; (v) that, as a result, the Company’s reported financial results and financial statements were misstated; and (vi) that, as a result, the Individual Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis. Plaintiffs allege that the Company thereby suffered loss, injury and damage. Among other relief, the action seeks specifically, in favor of the Company: damages sustained by the Company; a direction by the court for the Company to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with all applicable laws and to protect the Company and its shareholders; restitution from the Individual Defendants, and each of them, and an order for the disgorgement of all profits, benefits and other compensation obtained by the Individual Defendants; the costs and disbursements of the action, including reasonable attorneys’ fees, accountants’ and experts’ fees, costs and expenses; and such other and further relief as the court deems just and proper. The Individual Defendants are vigorously defending this matter.

Tax Assessment Proceeding

Lincoln National Life Insurance Company v. Township of Radnor, originally pending in the Court of Common Pleas of Delaware County, Pennsylvania Civil Division, No. 2022-001894, started as a de novo appeal filed by LNL on March 21, 2022, regarding a September 30, 2021, Notice of Tax Assessment issued by the Township of Radnor (the “Township”) to LNL for additional business privilege tax for the years 2014-2019/2020 estimate. The assessment was based on an audit undertaken by a third-party auditor and consultant to the Township, following a periodic business review of LNL undertaken by the same individual in 2018. The assessment is comprised of taxes, interest and penalties for the period in question. LNL filed a motion for summary judgment that was denied by the court. The trial of this matter was held in the fourth quarter of 2024. On July 16, 2025, the trial court entered judgment in favor of LNL. On August 15, 2025, the Township filed a notice of appeal in the Commonwealth Court of Pennsylvania.

Reinsurance Disputes

Certain reinsurers have in the past sought, and may in the future seek, rate increases on certain yearly renewable term agreements. We may initiate legal proceedings, as necessary, under these agreements in order to protect our contractual rights. Additionally, reinsurers have in the past initiated, and may in the future initiate, legal proceedings against us.

State Guaranty Fund Assessments

State guaranty associations levy assessments on insurance companies doing business within their jurisdictions to cover policyholder losses from insolvent or impaired insurance companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We accrue the cost of future guaranty fund assessments based on estimates of insurance company insolvencies provided by the National Organization of Life & Health Insurance Guaranty Associations and the amount of premiums written in each state.

PHL Variable Insurance Company, a Connecticut-domiciled life insurer, and its subsidiaries Concord Re, Inc. and Palisado Re, Inc., (collectively, “PHL”) has been in a court-supervised rehabilitation proceeding since May 20, 2024. As reported to the Connecticut Superior Court on December 31, 2025, the Connecticut Insurance Commissioner, acting in the capacity of the rehabilitator for PHL, has determined that a rehabilitation plan is not feasible and that any resolution of PHL’s liabilities is expected to require a liquidation order with a finding of insolvency in order to trigger state guaranty association coverage. As of June 30, 2026, we have not recorded a liability specific to PHL because the amount and timing of any assessments are not reasonably estimable.

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15. Shares and Stockholders’ Equity

Preferred Shares

Preferred stock authorized, issued and outstanding (number of shares) was as follows:

	As of June 30, 2026			As of December 31, 2025
	Shares Authorized	Shares Issued	Shares Outstanding	Shares Authorized	Shares Issued	Shares Outstanding
9.250% Fixed Rate Reset Non-Cumulative
Preferred Stock, Series C	20,000	20,000	20,000	20,000	20,000	20,000
9.000% Non-Cumulative Preferred Stock,   Series D	20,000	20,000	20,000	20,000	20,000	20,000
Not designated	9,960,000	–	–	9,960,000	–	–
Total preferred shares	10,000,000	40,000	40,000	10,000,000	40,000	40,000

The per share and aggregate dividends declared for preferred stock by series (in millions except per share data) was as follows:

	For the Three Months Ended June 30,
	2026				2025
	Dividend		Aggregate		Dividend		Aggregate
Series	Per Share		Dividend		Per Share		Dividend
Series C	$	–	$	–	$	–	$	–
Series D	562.50		11		562.50		11
Total	$	562.50	$	11	$	562.50	$	11

	For the Six Months Ended June 30,
	2026				2025
	Dividend		Aggregate		Dividend		Aggregate
Series	Per Share		Dividend		Per Share		Dividend
Series C	$	1,156.25	$	23	$	1,156.25	$	23
Series D	1,125.00		23		1,125.00		23
Total	$	2,281.25	$	46	$	2,281.25	$	46

Common Shares

The changes in our common stock (number of shares) were as follows:

	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2026	2025	2026	2025
Common Stock
Balance as of beginning-of-period	191,209,768	170,695,166	190,051,477	170,380,646
Issuance of common stock	–	18,759,497	–	18,759,497
Stock compensation/issued for benefit   plans	215,603	116,241	1,373,894	430,761
Balance as of end-of-period	191,425,371	189,570,904	191,425,371	189,570,904

Our common stock is without par value.

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Issuance of Common Stock

On June 5, 2025, we closed our purchase agreement (the “Purchase Agreement”) with Bain Capital Prairie, LLC (the “Buyer”), a newly formed subsidiary of Bain Capital, under which we agreed to sell shares representing 9.9% of our outstanding common stock on a post-issuance basis to the Buyer. Under the final terms, we issued 18,759,497 shares of common stock at $44.00 per share, based on a 25% premium to the 30-day volume-weighted average price as of April 8, 2025, for aggregate consideration of $825 million.

The Purchase Agreement provides for, among other things, certain limitations on the Buyer’s and certain of its affiliates’ ability to transfer common stock, purchase additional common stock, and take certain other actions with respect to the Company and its common stock, and an agreement that the Buyer and certain of its affiliates will, subject to certain limitations, vote common stock they beneficially own in favor of the matters recommended for approval by the Company’s board of directors (the “Board”). The Purchase Agreement also grants the Buyer the right to designate one observer to be present in a nonvoting capacity at all meetings of the Board and, following the first anniversary of the closing of the transaction, the right to replace such observer with a voting member of the Board, in each case subject to the Buyer’s satisfaction of certain conditions and approval of the Board.

Earnings Per Share

The calculation of earnings per share (“EPS”) was as follows (in millions except per share data):

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Net income (loss) available to common stockholders – basic	$	1,321	$	688	$	1,114	$	(69)
Deferred units of LNC stock in our
deferred compensation plans (1)	–		–		(5)		–
Net income (loss) available to common
stockholders – diluted	$	1,321	$	688	$	1,109	$	(69)
Weighted-average shares, as used in basic calculation	192,862,677		177,175,326		192,379,752		174,264,554
Incremental common shares from assumed exercise or
issuance of stock-based incentive compensation awards	2,818,598		2,773,060		3,348,918		2,769,320
Average deferred compensation shares (1)	737,319		654,279		731,584		–
Weighted-average shares, as used in diluted calculation (2)	196,418,594		180,602,665		196,460,254		177,033,874
Net income (loss) per share:
Basic	$	6.85	$	3.88	$	5.79	$	(0.39)
Diluted	6.72		3.80		5.65		(0.39)

(1)    We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to all or a portion of their deferral amounts. This obligation is settled in either cash or LNC stock pursuant to the applicable plan document. We exclude deferred units of LNC stock that are antidilutive from our diluted EPS calculation.

(2)     Due to reporting a net loss for the six months ended June 30, 2025, basic shares were used in the diluted EPS calculation for this period as the use of diluted shares would have resulted in a lower loss per share.

In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above.

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AOCI

The following summarizes the components and changes in AOCI (in millions):

	As of or For the Six Months Ended June 30,
	2026		2025
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain
Other Investments
Balance as of beginning-of-year	$	(4,413)	$	(6,239)
Unrealized holding gains (losses)	(786)		1,083
Change in foreign currency exchange rate adjustment	(92)		483
Change in future contract benefits and policyholder account balances,
net of reinsurance	(155)		(297)
Income tax benefit (expense)	218		(268)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	(153)		(117)
Income tax benefit (expense)	32		25
Balance as of end-of-period	$	(5,107)	$	(5,146)
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	450	$	638
Unrealized holding gains (losses)	(4)		206
Change in foreign currency exchange rate adjustment	87		(474)
Income tax benefit (expense)	(19)		57
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	36		39
Income tax benefit (expense)	(8)		(8)
Balance as of end-of-period	$	486	$	396
Market Risk Benefit Non-Performance Risk Gain (Loss)
Balance as of beginning-of-year	$	(262)	$	146
OCI before reclassification	47		(42)
Income tax benefit (expense)	(9)		10
Balance as of end-of-period	$	(224)	$	114
Policyholder Liability Discount Rate Remeasurement Gain (Loss)
Balance as of beginning-of-year	$	480	$	744
OCI before reclassification	127		(222)
Income tax benefit (expense)	(27)		47
Balance as of end-of-period	$	580	$	569
Foreign Currency Translation Adjustment
Balance as of beginning-of-year	$	(18)	$	(29)
OCI before reclassification	(2)		15
Balance as of end-of-period	$	(20)	$	(14)
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(295)	$	(296)
OCI before reclassification	2		(15)
Balance as of end-of-period	$	(293)	$	(311)

    

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The following summarizes the reclassifications out of AOCI (in millions) and the associated line item on the Consolidated Statements of Comprehensive Income (Loss):

	For the Six Months Ended June 30,
	2026		2025
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Reclassification	$	(204)	$	(143)	Realized gain (loss)
Associated change in future contract benefits	51		26		Benefits
Reclassification before income tax benefit (expense)	(153)		(117)		Income (loss) before taxes
Income tax benefit (expense)	32		25		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(121)	$	(92)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Interest rate contracts	$	–	$	1	Net investment income
Interest rate contracts	4		8		Interest and debt expense
Foreign currency contracts	31		27		Net investment income
Foreign currency contracts	1		3		Realized gain (loss)
Reclassification before income tax benefit (expense)	36		39		Income (loss) before taxes
Income tax benefit (expense)	(8)		(8)		Federal income tax expense (benefit)
Reclassification, net of income tax	$	28	$	31	Net income (loss)

16. 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 2025 Form 10-K. We also have Other Operations, which includes the financial results for operations that are not directly related to the business segments. Our business segments and Other Operations reflect the manner by which our chief operating decision maker (“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 2025 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;

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•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 the separate account dividends-received deduction, 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.

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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 June 30, 2026
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	1,341	$	1,572	$	1,576	$	353	$	84	$	4,926
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	47		894		971		–		9		1,921
Interest credited	513		293		1		169		48		1,024
Commissions	329		112		133		30		1		605
General and administrative expenses	135		134		238		91		60		658
Interest and debt expense	–		–		–		–		82		82
Other (3)	(22)		75		47		6		2		108
Total operating expenses	1,002		1,508		1,390		296		202		4,398
Total federal income tax expense (benefit)	52		7		39		8		(28)		78
Total income (loss) from operations	287		57		147		49		(90)		450
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											1,497
Net life insurance product features, pre-tax											(50)
Credit loss-related adjustments, pre-tax											(37)
Investment gains (losses), pre-tax											(197)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(85)
Other items, pre-tax (6)(7)											(12)
Income tax benefit (expense) related to
the above pre-tax items											(234)
Total net income (loss)											$	1,332

(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; amortization of deferred loss on business sold through reinsurance; expenses associated with reserve financing and LOCs; 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: DAC capitalization and amortization; expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs net of 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; and taxes, licenses and fees.

(4) Includes changes in MRBs of $1,450 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 $(115) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $162 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 severance expense related to initiatives to realign the workforce of $(11) million.

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

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	For the Three Months Ended June 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	1,214	$	1,602	$	1,538	$	331	$	41	$	4,726
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	32		956		913		–		7		1,908
Interest credited	439		289		1		174		13		916
Commissions	292		111		139		28		–		570
General and administrative expenses	126		133		227		83		57		626
Interest and debt expense	–		–		–		–		81		81
Other (3)	(13)		79		39		4		(1)		108
Total operating expenses	876		1,568		1,319		289		157		4,209
Total federal income tax expense (benefit)	51		2		46		5		(25)		79
Total income (loss) from operations	287		32		173		37		(91)		438
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											405
Net life insurance product features, pre-tax											(58)
Credit loss-related adjustments, pre-tax											(25)
Investment gains (losses), pre-tax											(81)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											14
Other items, pre-tax (6)(7)(8)(9)											75
Income tax benefit (expense) related to
the above pre-tax items											(69)
Total net income (loss)											$	699

(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: 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 $932 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 $(605) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $78 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 severance expense related to initiatives to realign the workforce of $(2) million.

(7) Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives of $(18) million primarily related to the Bain Capital transaction.

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

(9) Includes gain on early extinguishment of debt of $94 million.

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	For the Six Months Ended June 30, 2026
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	2,624	$	3,200	$	3,129	$	699	$	142	$	9,794
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	71		1,869		1,965		–		17		3,922
Interest credited	1,008		585		1		339		90		2,023
Commissions	668		224		268		59		2		1,221
General and administrative expenses	268		263		468		181		122		1,302
Interest and debt expense	–		–		–		–		164		164
Other (3)	(64)		153		99		12		7		207
Total operating expenses	1,951		3,094		2,801		591		402		8,839
Total federal income tax expense (benefit)	111		8		69		16		(59)		145
Total income (loss) from operations	562		98		259		92		(201)		810
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											802
Net life insurance product features, pre-tax											(28)
Credit loss-related adjustments, pre-tax											(57)
Investment gains (losses), pre-tax											(239)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											94
Gains (losses) on other non-financial
assets, pre-tax											(6)
Other items, pre-tax (6)(7)(8)											(123)
Income tax benefit (expense) related to
the above pre-tax items											(93)
Total net income (loss)											$	1,160

(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; amortization of deferred loss on business sold through reinsurance; expenses associated with reserve financing and LOCs; 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: taxes, licenses and fees; DAC capitalization and amortization; and expenses associated with LOCs. Other Operations: taxes, licenses and fees; expenses incurred by Other Operations for its access to a financing facility and issuance of LOCs net of 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; and DAC capitalization and amortization.

(4) Includes changes in MRBs of $453 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 $62 million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $287 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 $(122) million.

(7) Includes severance expense related to initiatives to realign the workforce of $(18) million.

(8) Includes deferred compensation mark-to-market adjustment of $17 million.

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	For the Six Months Ended June 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating Revenues (1)	$	2,412	$	3,188	$	3,059	$	658	$	94	$	9,411
Operating Expenses (2)
Benefits and policyholder liability
remeasurement	60		1,958		1,908		–		11		3,937
Interest credited	858		576		–		344		27		1,805
Commissions	590		210		272		55		–		1,127
General and administrative expenses	251		263		449		168		125		1,256
Interest and debt expense	–		–		–		–		161		161
Other (3)	(25)		179		83		11		(2)		246
Total operating expenses	1,734		3,186		2,712		578		322		8,532
Total federal income tax expense (benefit)	101		(14)		73		9		(42)		127
Total income (loss) from operations	577		16		274		71		(186)		752
Reconciliation of total income (loss) from
operations to net income (loss):
Net annuity product features, pre-tax (4)											(687)
Net life insurance product features, pre-tax											(15)
Credit loss-related adjustments, pre-tax											(53)
Investment gains (losses), pre-tax											(183)
Changes in the fair value of
reinsurance-related embedded
derivatives, trading securities and
certain mortgage loans, pre-tax (5)											(76)
Other items, pre-tax (6)(7)(8)(9)											40
Income tax benefit (expense) related to
the above pre-tax items											199
Total net income (loss)											$	(23)

(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: taxes, licenses and fees; DAC capitalization and amortization; 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 $(370) 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 $(337) million; and changes in the fair value of the embedded derivative liabilities and the associated index options for our indexed annuity products of $20 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 severance expense related to initiatives to realign the workforce of $(8) million.

(7) Includes transaction, integration and other costs related to mergers, acquisitions, divestitures and certain other corporate initiatives consisting of $(20) million related to the sale of our wealth management business and $(18) million primarily related to the Bain Capital transaction.

(8) Includes deferred compensation mark-to-market adjustment of $(8) million.

(9) Includes gain on early extinguishment of debt of $94 million.

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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 June 30, 2026
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	1,341	$	1,572	$	1,576	$	353	$	84	$	4,926
Revenue adjustments from annuity and life
insurance product features	46		(111)		–		–		–		(65)
Credit loss-related adjustments	(17)		1		(2)		(1)		(18)		(37)
Investment gains (losses)	12		(172)		–		1		(38)		(197)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	1		(85)		–		–		(1)		(85)
Total revenues	$	1,383	$	1,205	$	1,574	$	353	$	27	$	4,542

	For the Three Months Ended June 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	1,214	$	1,602	$	1,538	$	331	$	41	$	4,726
Revenue adjustments from annuity and life
insurance product features	(526)		(64)		–		–		–		(590)
Credit loss-related adjustments	(2)		(2)		–		(7)		(14)		(25)
Investment gains (losses)	(2)		(25)		–		(3)		(51)		(81)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	–		13		–		–		1		14
Total revenues	$	684	$	1,524	$	1,538	$	321	$	(23)	$	4,044

	For the Six Months Ended June 30, 2026
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	2,624	$	3,200	$	3,129	$	699	$	142	$	9,794
Revenue adjustments from annuity and life
insurance product features	348		(86)		–		–		–		262
Credit loss-related adjustments	(21)		–		(1)		(3)		(32)		(57)
Investment gains (losses)	7		(223)		–		1		(24)		(239)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	(1)		100		–		–		(5)		94
Gains (losses) on other non-financial assets	–		–		–		–		(6)		(6)
Total revenues	$	2,957	$	2,991	$	3,128	$	697	$	75	$	9,848

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	For the Six Months Ended June 30, 2025
	Annuities		Life Insurance		Group Protection		Retirement Plan Services		Other Operations		Total
Operating revenues	$	2,412	$	3,188	$	3,059	$	658	$	94	$	9,411
Revenue adjustments from annuity and life
insurance product features	(317)		(47)		–		–		–		(364)
Credit loss-related adjustments	(19)		(1)		(2)		(9)		(22)		(53)
Investment gains (losses)	(8)		(133)		1		(6)		(37)		(183)
Changes in the fair value of reinsurance-
related embedded derivatives, trading
securities and certain mortgage loans	10		(76)		–		–		(10)		(76)
Total revenues	$	2,078	$	2,931	$	3,058	$