Exhibit 99.2

Lincoln Statistical Report







	first Q U A R T E R












		2 0 0 7



The financial data in this document is dated May 1, 2007 and has not been updated since that date. LNC does not intend to update this document.

Lincoln Financial Group
Statistical Report
First Quarter
2007

Table of Contents

LFG Analyst Coverage

Notes

Financial Highlights	1 - 4

Consolidated Expense Detail	5
Operating Results Summary	6
Consolidated Statements of Income	7

Consolidating Statements of Income from Operations	8-9
Consolidated Balance Sheet	10
Balance Sheet Data - Segment Highlights	11

Individual Markets
Individual Life Insurance
Income Statements & Operational Data	12
Operational Data	13
Account Value Roll Forward	14
Individual Annuities
Income Statements & Operational Data	15
Account Value Roll Forward	16
Account Values	17

Employer Markets
Defined Contribution
Income Statements & Operational Data	18
Account Value Roll Forward	19
Supplemental Data	20
Executive Benefits
Income Statements & Operational Data	21
Account Value Roll Forward and Supplemental Data	22
Group Protection
Income Statements & Operational Data	23
Supplemental Data	24

Investment Management
Income Statements	25
Assets Under Management Roll Forward	26

Lincoln UK
Income Statements	27
Operational Data	28

Lincoln Financial Media	29

Other Operations	29

Domestic Deposits / Account Balances / Net Flows	30

Investment Data
Assets Managed	31
Other Investment Data	32

3/31/2007 ii

NOTES

On April 3, 2006, LNC completed its previously announced merger with Jefferson Pilot Corporation ("JP"). Beginning with the second quarter of 2006, we are reporting results through the following segments: Individual Markets - Annuities, Individual Markets - Life Insurance, Employer Markets - Retirement Products, Employer Markets - Group Protection, Investment Management, Lincoln UK and Lincoln Financial Media. Historical information presented in this report has been restated to reflect the new organizational structure. As described below, certain reclassifications have been made to historically reported items to reflect the new reporting practices of LNC.

Definitions and Presentation

"Income from Operations," "Operating Revenue," "Return on Capital," and "Station Operating Income" are non-GAAP financial measures and do not replace GAAP revenue and net income (loss). Detailed reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are included in this statistical supplement.

*We exclude the after-tax effects of the following items from GAAP net income to arrive at income from operations:

* Realized gains and losses on investments and derivatives,

* Gains and losses related to reinsurance embedded derivatives/trading account securities,

* The cumulative effect of accounting changes,

* Reserve changes on business sold through reinsurance net of related deferred gain amortization,

* Gains and losses on the sale of subsidiaries and blocks of business, and

* Loss on early retirement of debt, including subordinated debt

NOTE: Income from operations is lower than previously reported as it now includes restructuring charges previously excluded in the determination of income from operations

*Operating revenue represents revenue excluding the following, as applicable:

* Realized gains or losses on investments and derivatives,

* Gains and losses related to reinsurance embedded derivatives/trading account securities,

* Gains and losses on the sale of subsidiaries and blocks of business, and

* Deferred gain amortization related to reserve changes on business sold through reinsurance

*Return on capital measures the effectiveness of LNC's use of its total capital, which includes equity (excluding accumulated other comprehensive income), debt, capital securities and junior subordinated debentures issued to affiliated trusts. Return on capital is calculated by dividing annualized income from operations (after adding back interest expense) by average capital. The difference between return on capital and return on shareholders' equity represents the effect of leveraging on LNC's consolidated results.

*Station operating income is calculated as communications revenues less operating costs and expenses before depreciation and amortization.

Income from operations, operating revenue, return on capital, and station operating income are internal measures used by LNC in the management of its operations. Management believes that these performance measures explain the results of operations of LNC's ongoing operations in a manner that allows for a better understanding of the underlying trends in LNC's current business because the excluded items are either unpredictable and/or not related to decisions regarding the underlying businesses.

*Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of LNC’s current business. These measures include deposits, sales, net flows, first year premium, inforce, spreads, and assets under management.

*Sales as reported consist of the following:

* Universal life ("UL"), including Moneyguard, and COLI - first year commissionable premium plus 5% of excess premium received, including UL internal replacements

* Whole life and term - first year paid premium

* Annuity - deposits from new and existing customers

* Group Protection - annualized first year premium from new policies

* Investment Management Retail Sales and Institutional Inflows - contributions, transfer in kind purchases, and reinvested dividends for new and existing accounts.

Reclassifications

Certain reclassifications have been made in the historical presentation of certain revenue and expense items. The principal reclassifications

consist of the following:

* Deferred Front End Loads ("DFEL") - capitalization and amortization of DFEL is reported as a component of expense assessments revenue. Depending on the segment, these had previously been reported as a component of either other revenue, benefits expense or DAC amortization.

* Investment Management Advisory Fees and General and Administrative Expenses - certain reclassifications have been made between revenue and expenses for such items as distribution fees and management fee waivers to conform to current industry practices.

* Commissions and general & administrative expenses - we reclassified certain distribution expenses to commissions which had previously been reported in general & administrative expenses. This change impacted the Individual Markets Life segment and is also reflected in our consolidated presentation.

* We made several reclassifications within our Other Operations income statement to separately present intersegment eliminations affecting revenues and expenses and we have also disclosed some additional line items. These changes were incorporated into all pages that reference Other Operations.

3/31/2007										PAGE 1
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]



	For the Quarter Ended March 31
	2007			2006
	Amount			Amount			Change			% Change
*Income from Operations - By Segment*
Individual Life Insurance	$	166.6		$	69.0		$	97.6			141.4	%
Individual Annuities		121.0			66.4			54.6			82.2	%
Individual Markets		287.6			135.4			152.2			112.4	%
Defined Contribution		49.7			52.5			(2.8	)		-5.3	%
Executive Benefits		14.4			7.5			6.9			92.0	%
Group Protection		23.1			-			23.1			NM
Employer Markets		87.3			60.0			27.3			45.5	%
Investment Management		16.2			15.3			0.9			5.9	%
Lincoln UK		10.9			10.7			0.2			1.9	%
Lincoln Financial Media		12.4			-			12.4			NM
Other Operations		(35.2	)		0.1			(35.3	)		NM
*Total Income from Operations* ⁽¹⁾		379.1			221.4			157.7			71.2	%

Realized gains (losses)		17.1			(4.2	)		21.3			NM
Net gain (loss) on reinsurance
derivative/trading account securities		-			3.8			(3.8	)		-100.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			-			-
*Net Income*	$	396.5		$	221.2		$	175.3			79.2	%

*Earnings per share (diluted)*

*Income from Operations* ⁽¹⁾	$	1.36		$	1.25		$	0.11			8.8	%
Realized losses		0.06			(0.03	)		0.09			300.0	%
Net gain (loss) on reinsurance
derivative/trading account securities		-			0.02			(0.02	)		-100.0	%
*Net Income*	$	1.42		$	1.24		$	0.18			14.5	%



*Operating Revenue- By Segment*
Individual Life Insurance	$	971.4		$	500.6		$	470.8			94.0	%
Individual Annuities		605.1			374.8			230.3			61.4	%
Individual Markets		1,576.5			875.4			701.1			80.1	%
Defined Contribution		246.8			249.2			(2.4	)		-1.0	%
Executive Benefits		111.7			57.2			54.5			95.3	%
Group Protection		360.4			-			360.4			NM
Employer Markets		718.9			306.4			412.5			134.6	%
Investment Management		150.2			139.6			10.6			7.6	%
Lincoln UK		90.7			69.5			21.2			30.5	%
Lincoln Financial Media		67.5			-			67.5			NM
Other Operations		40.0			31.7			8.3			26.2	%
*Total Operating Revenue*		2,643.8			1,422.6			1,221.2			85.8	%

Realized losses		26.4			(6.9	)		33.3			NM
Gain (loss) on reinsurance
derivative/trading account securities		(0.2	)		5.9			(6.1	)		NM
Amortization of deferred gain-reserve development		0.3			0.3			-			-
*Total Revenue*	$	2,670.4		$	1,421.8		$	1,248.6			87.8	%

⁽¹⁾ Income from operations includes after-tax restructuring charges of $2.5 million, or 1 cent per share, and $0.2 million, or -0- cents per share, for the quarters ended March 31, 2007 and 2006, respectively.

3/31/07

PAGE 2

*Financial Highlights*
Unaudited [in Billions]





*Operational Data by Segment*	For the Quarter Ended March 31
	2007			2006
	Amount			Amount		Change			% Change

*Individual Markets*
Individual Annuities
Gross deposits	$	2.821		$	2.136	$	0.685			32.1	%
Net flows		0.754			0.770		(0.015	)		-1.9	%
Account values (gross)		68.438			51.059		17.380			34.0	%
Account values (net of reinsurance)		66.749			48.857		17.892			36.6	%
Individual Life Insurance
Sales (in millions) ⁽¹⁾		203.5			67.9		135.6			199.7	%
Life insurance in-force		508.411			321.409		187.002			58.2	%
Account values		26.924			14.268		12.655			88.7	%
*Employer Markets*
Defined Contribution
Gross deposits ⁽²⁾	$	1.487		$	1.241	$	0.246			19.8	%
Net flows		0.221			0.181		0.040			22.1	%
Account values - annuities		28.669			27.487		1.182			4.3	%
Alliance Mutual Funds		5.807			4.248		1.559			36.7	%
Account values including Alliance Mutual Funds		34.475			31.735		2.741			8.6	%
Executive Benefits
COLI/BOLI sales (in millions)		20.4			16.9		3.5			20.7	%
Life insurance in-force		14.747			7.979		6.768			84.8	%
Account values		4.264			1.387		2.878			207.5	%
Group Protection
Annualized sales (in millions)		60.8			-		60.8			NM
Loss ratio⁽³⁾		72.7	%		-		NM			NM
*Investment Management Segment*
Retail deposits	$	3.603		$	4.019	$	(0.416	)		-10.4	%
Retail net flows		0.233			1.305		(1.073	)		-82.2	%
Institutional in-flows		2.431			5.044		(2.613	)		-51.8	%
Institutional net flows		(0.321	)		3.592		(3.914	)		NM
Total Deposits and In-flows		6.034			9.063		(3.029	)		-33.4	%
Total Net Flows		(0.088	)		4.898		(4.986	)		NM
Assets Under Management- Retail and Institutional		98.146			86.428		11.718			13.6	%
Assets Under Management - General Account		67.292			41.995		25.296			60.2	%
Assets Under Management - Total Segment		165.438			128.423		37.014			28.8	%
*Consolidated*
Domestic Retail Deposits	$	8.217		$	7.449	$	0.767			10.3	%
Domestic Retail Account Balances		169.282			129.225		40.057			31.0	%
Domestic Retail Net Flows		1.827			2.635		(0.807	)		-30.6	%
Domestic Deposits		10.536			12.236		(1.700	)		-13.9	%
Domestic Net Flows		1.554			6.188		(4.634	)		-74.9	%
Assets Under Management		237.031			182.995		54.036			29.5	%

⁽¹⁾Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, and COLI plus 5% of excess premium received, including UL internal replacements, and first year paid premiums for Whole life and Term products
⁽²⁾Includes deposits for Alliance Mutual Funds which are not included in separate account liabilities on our balance sheet.
⁽³⁾ Represents combined loss ratio for Life, Disability and Dental business.

PAGE 3

3/31/2007
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]


	For the Quarter Ended March 31
	2007			2006
	Amount			Amount			Change		% Change

*Balance Sheet Assets - End of Period*	$	181,326.4		$	128,472.0		$	52,854.4		41.1	%

*Shareholders' Equity*
Beg of period (including AOCI)	$	12,201.0		$	6,384.4		$	5,816.6
End of period (including AOCI)		12,032.2			6,338.2			5,694.0
End of period (excluding AOCI)		11,372.5			6,053.2			5,319.3
Average equity (excluding AOCI)		11,480.2			5,954.9			5,525.3

Return on Equity
Net income/average equity (excluding AOCI)		13.8	%		14.9	%
Inc from operations/average equity (excluding AOCI)		13.2	%		14.9	%

*Return on Capital*
Inc from operations/average capital		10.6	%		12.8	%

*Common Stock Outstanding*
Average for the period - diluted		279.5			177.9			101.5		57.1	%
End of period - assuming conv of preferreds		270.9			176.1			94.8		53.8	%
End of period - diluted		274.0			178.5			95.5		53.5	%

Book value (including AOCI)	$	44.42		$	35.99		$	8.43		23.4	%
Book value (excluding AOCI)		41.98			34.37			7.61		22.2	%

*Cash Returned to Shareholders*
Share repurchase - dollar amount	$	511.7		$	-		$	511.7
Dividends declared to shareholders		106.8			67.5			39.3
*Total Cash Returned to Shareholders*	$	618.5		$	67.5		$	551.0

Share repurchase - number of shares		7.215			-			7.215
Dividend declared on common stock - per share	$	0.395		$	0.380		$	0.015		3.9	%
Dividend payout ratio ⁽¹⁾		27.8	%		30.6	%
Annualized yield⁽²⁾		2.3	%		2.8	%

*Comprehensive Income (Loss)*
Net income	$	396.5		$	221.2
Net unrealized gains (losses) on securities		35.3			(276.4	)
Gains (losses) on derivatives		7.7			27.8
Foreign currency translation		3.2			6.3
Minimum pension liability adjustment		-			(0.6	)
Funded status of employee benefit plans⁽⁴⁾		0.4			-
*Comprehensive Income*	$	443.0		$	(21.7	)

*Ratios:*
Debt to total capitalization ⁽³⁾		21.9	%		18.1	%
Debt to equity⁽³⁾		28.1	%		22.2	%


Ratings as of April 30, 2007:
		A.M. Best			Fitch			Moody's		Standard & Poors

*Senior Debt Ratings:*		a			A			A3		A+

*Financial Strength Ratings:*
Lincoln National Life Insurance Company		A+			AA			Aa3		AA
First Penn-Pacific Life Insurance Company		A+			AA			A1		AA-
Lincoln Life & Annuity Company of New York		A+			AA			Aa3		AA
Jefferson-Pilot Life Insurance Company		A+			AA			Aa3		AA
Jefferson Pilot Financial Insurance Company		A+			AA			Aa3		AA
Jefferson Pilot LifeAmerica Insurance Company		A+			AA			N/R		AA

^[1] Indicated dividend divided by net income
^[2] Indicated dividend divided by the closing price
^[3]Equity used in calculation excludes accumulated other comprehensive income (loss). Capital securities are considered 25% debt and 75% equity.
⁽⁴⁾SFAS 158 was adopted effective December 31, 2006 which requires the disclosure of the funded status of our pension and post-retirement benefit plans on the balance sheet.

3/31/2007											PAGE 4
*Combined Production Data* ⁽¹⁾
Unaudited [in Billions]

	Three Months Ended
	March		June		Sept.		Dec.		March		%
	2006		2006		2006		2006		2007		Change
Individual Markets
Individual Life Insurance
Sales by Product (millions)
Universal Life
Excluding MoneyGuard	$	83.4	$	97.5	$	119.9	$	177.6	$	166.2		99.3	%
MoneyGuard		7.7		7.5		8.3		7.8		7.4		-3.9	%
Total		91.1		105.0		128.2		185.4		173.6		90.6	%
Variable universal life		16.4		15.7		13.0		22.1		20.6		25.6	%
Whole life		1.2		0.4		0.7		0.6		0.1		-91.7	%
Term		11.2		11.3		10.7		10.0		9.3		-17.0	%
*Total Sales by Product*	$	120.0	$	132.3	$	152.5	$	218.1	$	203.5		69.6	%

Individual Annuity Deposits
Fixed	$	0.560	$	0.644	$	0.818	$	0.855	$	0.661		18.0	%
Variable		1.666		1.867		1.658		2.061		2.000		20.0	%
Indexed annuities		0.173		0.228		0.244		0.245		0.160		-7.5	%
*Total Individual Annuities*	$	2.399	$	2.739	$	2.720	$	3.161	$	2.821		17.6	%

Employer Markets
Defined Contribution
Fixed	$	0.253	$	0.242	$	0.268	$	0.183	$	0.299		18.2	%
Variable		0.669		0.714		0.583		0.559		0.655		-2.1	%
		0.923		0.955		0.851		0.742		0.953		3.3	%
Alliance Mutual Funds Deposits		0.318		0.204		0.235		0.357		0.533		67.6	%
*Total Annuity and Alliance Mutual Funds*	$	1.241	$	1.159	$	1.086	$	1.099	$	1.487		19.8	%

Executive Benefits
COLI/BOLI sales (millions)	$	17.5	$	17.2	$	16.3	$	32.5	$	20.4		16.6	%

Group Protection
Annualized Sales (millions)
Life	$	23.6	$	15.3	$	19.4	$	43.1	$	22.7		-3.8	%
Disability		34.2		22.9		24.7		56.9		28.6		-16.4	%
Dental		6.2		7.1		6.1		13.1		9.4		51.6	%

Investment Management
Sales and Inflows
Retail
Annuities	$	0.885	$	0.869	$	0.960	$	0.932	$	1.300		46.9	%
Mutual funds		1.329		1.370		1.151		1.768		1.753		31.9	%
Managed accounts & other		1.806		1.043		0.386		0.493		0.550		-69.5	%
		4.019		3.282		2.497		3.192		3.603		-10.4	%
Institutional		5.044		2.764		2.406		4.888		2.431		-51.8	%
*Total Sales and Inflows*	$	9.063	$	6.046	$	4.904	$	8.080	$	6.034		-33.4	%


Total Annuity & Alliance
Mutual Fund Deposits
Fixed Annuities
Individual	$	0.733	$	0.872	$	1.062	$	1.100	$	0.821		12.0	%
Employer Markets		0.253		0.242		0.268		0.183		0.299		18.2	%
		0.986		1.114		1.330		1.283		1.120		13.6	%
Variable Annuities
Individual		1.666		1.867		1.658		2.061		2.000		20.0	%
Employer Markets		0.669		0.714		0.583		0.559		0.655		-2.1	%
		2.335		2.581		2.241		2.619		2.655		13.7	%
Total Annuities		3.322		3.695		3.571		3.903		3.775		13.6	%
Alliance Mutual Funds		0.318		0.204		0.235		0.357		0.533		67.6	%
*Total Annuity and Alliance Mutual Funds*	$	3.640	$	3.898	$	3.806	$	4.259	$	4.308		18.4	%

⁽¹⁾ This schedule combines the previously reported data for LNC and JP and does not reflect any adjustments that may have resulted had the April 4, 2006 merger been completed prior to the periods presented.

3/31/2007																PAGE 5
*Consolidated Expense Detail*
Unaudited (In Millions)

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

Commissions	$	212.9		$	362.0		$	382.6		$	464.7		$	446.5			109.7	%

General and administrative expenses:
General and administrative expenses		287.7			374.1			400.6			434.4			392.2			36.3	%
Merger-related expenses		-			7.4			12.1			15.8			10.1			NM
Total general and administrative expenses
excluding Broker/Dealer		287.7			381.5			412.7			450.2			402.3			39.8	%

Restructuring charges		0.3			9.6			1.0			3.3			3.9			NM
Taxes, licenses and fees		33.5			47.3			50.3			48.0			66.1			97.3	%
Interest ⁽¹⁾		21.7			65.0			67.3			70.4			61.5			183.4	%
Total commissions and expenses incurred		556.1			865.4			914.0			1,036.6			980.2			76.3	%

Less: commissions and expenses capitalized		(244.5	)		(391.6	)		(424.3	)		(517.9	)		(487.4	)		-99.3	%

Amortization:
DAC/VOBA Amortization		165.0			222.2			225.9			278.5			281.6			70.7	%
Amortization of intangibles		2.0			6.6			3.1			4.4			4.3			115.0	%
Total amortization		167.0			228.7			229.0			282.8			285.9			71.2	%

Broker/Dealer commissions and G&A		46.6			79.3			76.6			80.0			87.2			87.1	%

Total	$	525.1		$	781.9		$	795.3		$	881.5		$	865.9			64.9	%


Merger-related expenses:⁽²⁾
Severance and employee-related charges	$	-		$	12.8		$	8.4		$	6.2		$	3.0			NM
Systems integration and related expenses		-			0.8			1.5			5.4			5.6			NM
Other expenses		-			3.1			3.2			7.5			5.4			NM
Total merger-related expenses	$	-		$	16.7		$	13.1		$	19.1		$	14.0			NM

Note: The Consolidated Expense Detail data is presented on a GAAP basis.
⁽¹⁾Interest expense for the fourth quarter 2006 includes $5.6 million related to losses on early extinguishment of debt.
⁽²⁾ Represents merger-related expenses included in general and administrative expenses and restructuring charges.

3/31/2007																PAGE 6
*Operating Results Summary*
Unaudited [Millions of Dollars, except Common Share Data]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Individual Life Insurance	$	500.6		$	901.4		$	895.3		$	958.4		$	971.4			94.0	%
Individual Annuities		374.8			552.6			596.5			637.3			605.1			61.4	%
Individual Markets		875.4			1,454.0			1,491.8			1,595.7			1,576.5			80.1	%
Defined Contribution		249.2			248.9			245.1			245.0			246.8			-1.0	%
Executive Benefits		57.2			101.2			104.3			109.1			111.7			95.3	%
Group Protection		-			354.9			332.1			344.8			360.4			NM
Employer Markets		306.4			704.9			681.5			698.9			718.9			134.6	%
Investment Management		139.6			134.7			140.4			148.9			150.2			7.6	%
Lincoln UK		69.5			81.4			72.3			84.8			90.7			30.5	%
Lincoln Financial Media		-			57.7			60.0			70.2			67.5			NM
Other Operations		31.7			67.6			51.4			45.6			40.0			26.2	%
*Total Operating Revenue*		1,422.6			2,500.3			2,497.4			2,644.1			2,643.8			85.8	%

Realized gains (losses) on investments and derivatives		(6.9	)		(6.7	)		(5.8	)		12.8			26.4			NM
Net gain (loss) on reinsurance
derivative/trading account securities		5.9			1.8			(4.7	)		1.2			(0.2	)		NM
Gain on sale of subsidiaries/ businesses		-			-			-			-			-			NM
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3
*Total Revenue*	$	1,421.8		$	2,495.6		$	2,487.2		$	2,658.4		$	2,670.4			87.8	%

*Income from Operations* ⁽¹⁾
Individual Life Insurance	$	69.0		$	147.1		$	122.8		$	157.4		$	166.6			141.4	%
Individual Annuities		66.4			89.0			129.4			123.8			121.0			82.2	%
Individual Markets		135.4			236.1			252.2			281.1			287.6			112.4	%
Defined Contribution		52.5			54.3			52.5			44.6			49.7			-5.3	%
Executive Benefits		7.5			16.2			12.8			12.7			14.4			92.0	%
Group Protection		-			37.0			28.8			33.2			23.1			NM
Employer Markets		60.0			107.6			94.0			90.5			87.3			45.5	%
Investment Management		15.3			12.0			13.4			14.4			16.2			5.9	%
Lincoln UK		10.7			9.9			8.3			9.9			10.9			1.9	%
Lincoln Financial Media		-			11.9			14.6			17.5			12.4			NM
Other Operations		0.1			(26.1	)		(11.5	)		(38.4	)		(35.2	)		NM
*Income from Operations* ⁽¹⁾		221.4			351.4			371.0			375.2			379.1			71.2	%

Realized gains (losses) on investments and derivatives		(4.2	)		(3.8	)		(4.1	)		9.4			17.1			NM
Net gain (loss) on reinsurance
derivative/trading account securities		3.8			1.2			(3.1	)		0.1			-			NM
Gain on sale of subsidiaries/ businesses		-			-			-			-			-			NM
Reserve development/ amortization of related deferred gain		0.2			0.2			0.2			0.2			0.2
Loss on early retirement of debt		-			-			-			(3.6	)		-			NM
*Net Income*	$	221.2		$	349.0		$	364.1		$	381.3		$	396.5			79.2	%

*OTHER DATA*

		Three Months Ended
		March			June			Sept.			Dec.			March
		2006			2006			2006			2006			2007
*Shareholders' Equity*
Beg of period (including AOCI)	$	6,384.4		$	6,338.2		$	11,404.8		$	12,043.2		$	12,201.0
End of period (including AOCI)		6,338.2			11,404.8			12,043.2			12,201.0			12,032.2
End of period (excluding AOCI)		6,053.2			11,439.8			11,436.0			11,587.9			11,372.5
Average equity (excluding AOCI) ⁽²⁾		5,954.9			11,311.3			11,437.9			11,512.0			11,480.2

*Common Shares Outstanding*
Average for the period - diluted		177.9			282.6			282.4			280.4			279.5
End of period - diluted		178.5			285.0			281.3			280.2			274.0

*Per Share Data (Diluted)*
Net Income	$	1.24		$	1.23		$	1.29		$	1.36		$	1.42
Income from Operations ⁽¹⁾		1.25			1.24			1.31			1.34			1.36

*Shareholders' Equity Per Share*
Shareholders' Equity (including AOCI)	$	35.99		$	40.48		$	43.39		$	44.21		$	44.42
Shareholders' Equity (excluding AOCI)		34.37			40.60			41.20			41.99			41.98
Dividends declared (Common Stock)		0.380			0.380			0.380			0.395			0.395

*Return on Equity*
Net Income/Average Equity		14.9	%		12.3	%		12.7	%		13.2	%		13.8	%
Inc from Operations/Average Equity		14.9	%		12.4	%		13.0	%		13.0	%		13.2	%

*Market Value of Common Stock*
Highest price	$	57.97		$	60.52		$	63.47		$	66.72		$	71.18
Lowest price		52.00			54.30			53.94			61.74			64.29
*Closing price*	$	54.59		$	56.44		$	62.08		$	66.40		$	67.79

⁽¹⁾ Income from operations includes after-tax restructuring charges of $0.2 million, or -0- cents per share, for the first quarter of 2006, $6.2 million, or 2 cents per share, for the second quarter of 2006, $0.6 million, or -0- cents per share, for the third quarter of 2006, $2.1 million, or 1 cent per share, for the fourth quarter of 2006, and $2.5 million, or 1 cent per share, for the first quarter of 2007.
⁽²⁾Average equity was adjusted to reflect the merger with Jefferson-Pilot effective April 3, 2006.

3/31/2007																PAGE 7

*Consolidated Statements of Income*
Unaudited [Millions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Revenue*
Premiums	$	78.4		$	454.3		$	425.7		$	448.1		$	458.9			NM
Surrender charges		18.7			27.3			26.6			29.9			26.9			43.9	%
Mortality assessments		146.2			294.7			294.9			295.9			311.2			112.9	%
Expense assessments		309.5			370.1			357.8			432.3			441.0			42.5	%
Investment advisory fees		77.8			81.2			82.9			86.1			90.3			16.1	%
Communications revenue		-			57.5			59.8			69.6			67.2			NM
Net investment income		678.4			1,068.2			1,107.9			1,126.3			1,089.5			60.6	%
Other revenue and fees		94.8			128.2			123.1			137.2			140.1			47.8	%
Amortization of deferred gain		18.8			18.8			18.8			18.8			18.6			-1.1	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			0.3
Realized gains (losses)		(1.0	)		(5.0	)		(10.5	)		13.9			26.2			NM
*Total Revenue*		1,421.8			2,495.6			2,487.2			2,658.4			2,670.4			87.8	%

*Benefits and Expenses*
Insurance benefits		200.4			589.3			566.2			562.2			588.8			193.8	%
Interest credited to contractholder funds		381.3			589.3			634.4			646.5			604.5			58.5	%
Communications expenses		-			29.8			31.4			36.9			41.2			NM
Operating and acquisition expenses		469.9			669.5			677.6			763.1			738.4			57.1	%
Taxes, licenses and fees		33.5			47.3			50.3			48.0			66.1			97.3	%
Interest and debt expense		21.7			65.0			67.3			70.4			61.5			183.4	%
*Total Benefits and Expenses*		1,106.8			1,990.3			2,027.3			2,127.2			2,100.5			89.8	%


Income Before Federal Income Tax		315.0			505.3			459.9			531.3			569.9			80.9	%

Federal income taxes		93.9			156.3			95.8			149.9			173.4			84.7	%
*Net Income*	$	221.2		$	349.0		$	364.1		$	381.3		$	396.5			79.2	%


Roll Forward of Deferred Acquisition Costs		Three Months Ended
& Value of Business Acquired		March			June			Sept.			Dec.			March
		2006			2006			2006			2006			2007
Balance at beginning of period	$	5,163.3		$	5,433.8		$	8,328.4		$	8,171.6		$	8,420.4
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(66.1	)
Deferral		244.5			391.6			424.3			517.9			487.4
Amortization		(165.0	)		(222.2	)		(225.9	)		(278.5	)		(281.6	)
Included in Total Benefits and Expenses		79.6			169.4			198.4			239.5			205.8
Adjustment related to realized (gains) losses
on available-for-sale securities		(10.9	)		(18.9	)		(8.9	)		(8.9	)		(17.9	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		194.2			221.5			(359.8	)		(17.4	)		(25.5	)
Foreign currency translation adjustment		7.7			48.3			9.7			35.7			4.1
Business acquired		-			2,474.2			3.8			-			14.0
Balance at end of period	$	5,433.8		$	8,328.4		$	8,171.6		$	8,420.4		$	8,534.7

Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	795.7		$	805.8		$	861.0		$	923.9		$	976.9
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(2.0	)
Deferral		31.1			69.1			71.0			77.9			77.2
Amortization		(24.7	)		(37.4	)		(12.7	)		(42.8	)		(36.1	)
Included in Expense Assessments		6.4			31.8			58.3			35.1			41.1
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			(0.1	)		-			-
Foreign currency translation adjustment		3.8			23.6			4.7			17.9			2.0
Balance at end of period	$	805.8		$	861.0		$	923.9		$	976.9		$	1,017.9

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	129.4		$	139.9		$	154.6		$	173.4		$	193.8
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(2.8	)
Deferral		15.7			19.9			22.2			28.4			23.7
Amortization		(5.2	)		(5.2	)		(3.3	)		(7.9	)		(8.2	)
Included in Income from Operations		10.5			14.7			18.9			20.5			15.5
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			(0.1	)		-			(0.1	)
Balance at end of period	$	139.9		$	154.6		$	173.4		$	193.8		$	206.4

3/31/2007

PAGE 8

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended March 31, 2007

Individual Markets

Employer Markets

Lincoln

Defined

Executive

Group

Investment

Lincoln

Financial

Other

Consolidating

Life

Annuities

Contribution

Benefits

Protection

Management

Media

Operations

Adjustments

Consolidated

Operating Revenue

Premiums

87.7

12.8

0.6

331.3

24.2

2.1

458.9

Surrender charges

15.2

9.7

2.0

26.9

Mortality assessments

292.3

8.9

10.0

311.2

Expense assessments

111.9

226.0

59.8

6.2

37.1

441.0

Investment advisory fees

114.9

(24.5

)

90.3

Communications revenue

67.2

Net investment income

454.0

266.3

180.3

94.8

27.9

19.3

0.2

47.4

(0.7

)

1,089.5

Amortization of deferred gain

18.6

Other revenue and fees

10.2

90.4

4.7

1.2

1.1

35.3

0.1

7.5

(10.4

)

140.1

Total Operating Revenue

971.4

605.1

246.8

111.7

360.4

150.2

90.7

67.5

75.7

(35.6

)

2,643.8

Operating Expenses

Insurance benefits

246.0

21.4

33.1

246.6

36.0

5.7

588.8

Interest credited to

contractholder funds

251.7

166.5

104.3

44.8

37.1

604.5

Communications expenses

41.2

Operating and

acquisition expenses

188.3

247.5

66.5

11.2

68.6

120.5

38.0

5.4

27.2

(34.9

)

738.4

Taxes, licenses and fees

32.9

8.9

5.1

1.5

9.7

4.1

1.3

2.7

66.1

Interest

0.3

0.4

61.5

(0.7

)

61.5

Total Operating Expenses

718.9

444.6

176.0

90.7

324.9

124.6

74.0

48.3

134.2

(35.6

)

2,100.5

Income (Loss) from Operations before Federal income taxes

252.5

160.5

70.8

21.1

35.5

25.6

16.7

19.2

(58.5

)

543.4

Federal income taxes

85.9

39.5

21.1

6.6

12.4

9.3

5.9

6.8

(23.3

)

164.2

Income from Operations

166.6

121.0

49.7

14.4

23.1

16.2

10.9

12.4

(35.2

)

379.1

3/31/2007

PAGE 9

Consolidating Statements of Income from Operations

Unaudited [Millions of Dollars]

For the Quarter Ended March 31, 2006

Individual Markets

Employer Markets

Lincoln

Defined

Executive

Group

Investment

Lincoln

Financial

Other

Consolidating

Life

Annuities

Contribution

Benefits

Protection

Management

Media

Operations

Adjustments

Consolidated

Operating Revenue

Premiums

51.1

9.3

1.1

16.6

0.3

78.4

Surrender charges

10.3

6.2

2.3

18.7

Mortality assessments

135.6

2.8

7.8

146.2

Expense assessments

54.3

168.0

55.6

3.3

28.0

0.3

309.5

Investment advisory fees

102.9

(25.1

)

77.8

Communications revenue

Net investment income

239.5

148.0

185.7

48.7

17.0

39.7

(0.2

)

678.4

Amortization of deferred gain

18.8

Other revenue and fees

9.7

43.4

5.6

1.4

36.7

0.1

2.0

(4.0

)

94.8

Total Operating Revenue

500.6

374.8

249.2

57.2

139.6

69.5

61.0

(29.2

)

1,422.6

Operating Expenses

Insurance benefits

120.2

20.4

32.8

25.4

1.6

200.4

Interest credited to

contractholder funds

142.2

95.1

100.7

9.3

33.9

381.3

Communications expenses

Operating and acquisition

expenses

116.5

167.0

70.4

3.5

111.3

27.6

2.9

(29.2

)

469.9

Taxes, licenses and fees

16.3

5.4

2.9

1.1

4.8

3.0

33.5

Interest

0.1

21.5

21.7

Total Operating Expenses

395.3

288.1

174.0

46.7

116.1

53.0

63.0

(29.2

)

1,106.9

Income (Loss) from Operations

before Federal income taxes

105.3

86.7

75.2

10.5

23.5

16.5

(2.0

)

315.8

0.1

Federal income taxes

36.3

20.3

22.7

3.0

8.2

5.8

(2.2

)

94.4

Income from Operations

69.0

66.4

52.5

7.5

15.3

10.7

0.1

221.4

3/31/2007													PAGE 10
*Consolidated Balance Sheet*
Unaudited [Millions of Dollars, except Common Share Data]



	March			June			Sept.			Dec.			March
	2006			2006			2006			2006			2007
*ASSETS*
*Investments*
Corporate bonds	$	25,418.0		$	43,881.6		$	45,345.3		$	45,489.4		$	45,484.0
U.S. government bonds		173.4			287.6			291.6			263.4			244.3
Foreign government bonds		1,169.7			1,188.0			1,144.4			1,141.6			1,077.1
Mortgage backed securities		5,868.8			8,370.3			8,765.1			8,691.3			9,186.2
State and municipal bonds		126.0			166.5			160.7			159.4			155.5
Preferred stocks - redeemable		136.9			130.1			117.8			108.3			108.4
Common stocks		61.0			458.8			506.3			525.5			503.8
Preferred stocks-equity		115.0			119.7			155.7			174.7			210.1
Total AFS Securities		33,068.8			54,602.6			56,486.9			56,553.7			56,969.5
Trading securities		3,190.1			3,109.0			3,172.5			3,036.3			2,909.7
Mortgage loans		3,586.2			7,741.2			7,580.5			7,384.3			7,416.0
Real estate		180.4			428.6			424.0			421.3			406.2
Policy loans		1,860.4			2,716.4			2,724.9			2,759.7			2,766.8
Other long-term investments		687.5			1,116.6			1,218.7			1,332.4			1,381.2
*Total Investments*		42,573.2			69,714.4			71,607.5			71,487.6			71,849.3

Cash and invested cash		1,974.0			1,499.8			1,108.3			1,620.6			900.0
Premiums and fees receivable		363.2			343.9			345.6			356.2			374.9
Accrued investment income		532.1			879.0			928.2			866.2			919.2
Amount recoverable from reinsurers		6,899.4			7,967.2			8,007.3			7,939.1			8,132.1
Deferred acquisition costs and VOBA		5,433.7			8,328.4			8,171.6			8,420.4			8,534.7
Goodwill		1,194.4			4,502.6			4,498.0			4,499.5			4,520.7
Other		1,517.7			3,049.6			2,703.1			2,770.4			2,948.1
Assets held in separate accounts		67,984.2			71,095.2			74,357.1			80,533.7			83,147.5
*Total Assets*	$	128,472.0		$	167,380.0		$	171,726.6		$	178,493.7		$	181,326.4

*LIABILITIES and SHAREHOLDERS' EQUITY*
*Liabilities*
Insurance and Investment Contract Liabilities:
Reserves	$	10,657.2		$	13,512.1		$	13,513.4		$	13,622.1		$	13,864.9
Unpaid claims		981.3			1,211.7			1,206.9			1,149.1			1,149.5
Premium deposit funds		21,448.6			21,198.4			20,708.6			20,541.4			20,115.8
Policyholders' funds		13,991.5			37,430.3			37,808.3			38,275.1			38,612.7
Total Insurance and Investment Contract Liabilities		47,078.6			73,352.5			73,237.2			73,587.7			73,743.0
Short-term debt		10.6			561.0			559.2			657.6			492.8
Long-term debt - senior notes		998.5			2,329.1			2,330.4			2,231.0			2,483.4
Long-term debt - subordinated
Capital securities		-			1,071.8			1,071.9			1,072.0			1,570.7
Junior subordinated debentures issued to
affiliated trusts		332.3			330.5			332.5			154.6			154.6
Embedded derivative - modco		192.0			126.7			232.5			228.7			229.8
Deferred gain on indemnity reinsurance		816.9			797.8			778.7			759.6			740.7
Federal income taxes		-			563.8			911.1			977.9			1,147.6
Other liabilities		4,720.7			5,746.7			5,872.8			6,089.9			5,584.0
Liabilities related to separate accounts		67,984.2			71,095.2			74,357.1			80,533.7			83,147.5
*Total Liabilities*		122,133.8			155,975.2			159,683.5			166,292.7			169,294.2

Preferred Stock		0.5			0.5			0.5			0.5			0.5
Capital stock		1,817.5			7,425.7			7,448.7			7,450.7			7,318.5
Retained earnings (excl. cumulative effect adjustments)		4,235.2			4,013.7			3,986.7			4,136.7			4,109.8
Cumulative effect of adoption of FIN-48		-			-			-			-			(15.4	)
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(40.9	)
Unrealized gains on investments		220.2			(151.5	)		478.0			492.8			528.1
Gains - derivatives		35.2			51.5			55.9			39.2			46.8
Foreign currency		89.7			128.5			136.5			165.1			168.4
Minimum pension liability		(60.1	)		(63.6	)		(63.2	)		-			-
Funded status of employee benefit plan		-			-			-			(84.0	)		(83.6	)
*Total Shareholders' Equity*		6,338.2			11,404.8			12,043.2			12,201.0			12,032.2

*Total Liabilities and Shareholders' Equity*	$	128,472.0		$	167,380.0		$	171,726.6		$	178,493.7		$	181,326.4

*Shareholders' Equity Per Share*	$	35.99		$	40.48		$	43.39		$	44.21		$	44.42

Book Value, Excluding AOCI	$	34.37		$	40.60		$	41.20		$	41.99		$	41.98
Common shares outstanding -assuming conv of
preferreds (in millions)		176.1			281.8			277.6			276.0			270.9

3/31/2007																	PAGE 11

*Balance Sheet Data - Segment Highlights*
Unaudited [Millions of Dollars]



	Individual				Employer
	Markets				Markets
As of March 31, 2007	Annuities		Life		Defined Contribution		Executive Benefits		Group Protection		Investment Management		Lincoln UK		Lincoln Financial Media		Other Operations⁽¹⁾			Consolidated

*Assets*
Allocated Investments	$	18,388.4	$	28,476.8	$	11,873.0	$	6,101.3	$	1,871.0	$	-	$	1,171.5	$	-	$	3,967.4		$	71,849.3
DAC and VOBA		2,082.0		4,795.8		489.4		260.5		103.7		-		802.6		-		0.7			8,534.7
Goodwill		1,044.9		2,196.7		20.2		-		273.3		261.7		16.3		707.6		-			4,520.7
Other intangibles		206.2		96.0		0.2		-		-		7.9		-		661.2		-			971.5
Amounts recoverable from reinsurers		810.7		1,830.4		-		4.4		27.4		-		72.7		-		5,386.5			8,132.1
Assets held in separate accounts		50,151.7		5,159.3		17,661.0		833.0		-		-		8,906.3		-		436.2			83,147.5

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		409.7		5,793.0		-		1,767.2		1,207.2		-		1,127.4		-		4,710.0			15,014.4
Contractholder funds		17,800.8		23,701.3		10,969.3		3,981.1		15.4		-		428.5		-		1,832.1			58,728.6
Total Insurance and Inv Contract Liabilities		18,210.4		29,494.3		10,969.3		5,748.3		1,222.6		-		1,555.9		-		6,542.2			73,743.0

Allocated capital ⁽²⁾		3,452.0		7,770.5		917.1		546.9		907.1		303.6		384.6		1,157.7		(4,067.0	)		11,372.5



As of December 31, 2006

*Assets*
Allocated Investments	$	18,686.2	$	27,843.9	$	11,762.6	$	6,088.9	$	1,833.6	$	-	$	1,101.1	$	-	$	4,171.4		$	71,487.6
DAC and VOBA		2,050.4		4,659.4		497.6		265.3		137.6		-		809.0		-		1.3			8,420.4
Goodwill		1,031.6		2,181.3		20.2		-		281.0		261.7		16.2		707.6		-			4,499.5
Other intangibles		193.7		97.0		0.1		-		-		9.3		-		663.1		-			963.2
Amounts recoverable from reinsurers		836.9		1,817.7		-		5.3		27.5		-		70.2		-		5,181.5			7,939.1
Assets held in separate accounts		48,014.7		5,040.3		17,459.2		833.4		-		-		8,756.9		-		429.3			80,533.7

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		438.1		5,640.7		-		1,778.3		1,183.4		-		1,118.8		-		4,611.8			14,771.2
Contractholder funds		18,206.0		23,433.9		10,982.9		4,025.5		16.8		-		435.6		-		1,715.9			58,816.5
Total Insurance and Inv Contract Liabilities		18,644.1		29,074.6		10,982.9		5,803.8		1,200.2		-		1,554.4		-		6,327.7			73,587.7

Allocated capital ⁽²⁾		3,432.5		7,345.1		959.8		531.7		923.1		307.8		385.0		1,161.9		(3,458.9	)		11,587.9

⁽¹⁾Includes consolidating adjustments.
⁽²⁾ Allocated capital is based on internal economic capital models plus certain other items (principally intangibles including DAC and VOBA, goodwill and other items).

3/31/2007																PAGE 12
*Individual Markets - Individual Life Insurance*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Premiums	$	51.1		$	89.9		$	87.0		$	93.5		$	87.7			71.6	%
Surrender charges		10.3			15.5			18.3			16.1			15.2			47.6	%
Mortality assessments		135.6			277.3			278.9			278.4			292.3			115.6	%
Expense assessments		54.3			93.0			86.1			116.4			111.9			106.1	%
Net investment income		239.5			415.9			414.4			441.1			454.0			89.6	%
Other revenue and fees		9.7			9.7			10.6			13.0			10.2			5.2	%
*Total Operating Revenue*		500.6			901.4			895.3			958.4			971.4			94.0	%

*Operating Expenses*
Insurance benefits		120.2			256.0			261.1			249.1			246.0			104.7	%
Interest credited to contractholder funds		142.2			241.5			247.1			251.3			251.7			77.0	%
Operating and acquisition expenses		132.8			182.9			207.6			219.0			221.2			66.6	%
*Total Operating Expenses*		395.3			680.4			715.7			719.4			718.9			81.9	%

Income from operations before Federal income taxes		105.3			221.0			179.6			239.1			252.5			139.8	%

Federal income taxes		36.3			73.9			56.8			81.7			85.9			136.6	%

*Income from Operations*	$	69.0		$	147.1		$	122.8		$	157.4		$	166.6			141.4	%

*Effective tax rate*		34.5	%		33.4	%		31.6	%		34.2	%		34.0	%

*Average equity*	$	3,266.0		$	7,051.8		$	7,223.9		$	7,292.7		$	7,557.8
*Return on average equity*		8.5	%		8.3	%		6.8	%		8.6	%		8.8	%


Operating and Acquisition Expenses
Commissions	$	66.8		$	151.2		$	167.1		$	226.5		$	227.1			239.8	%
General and administrative expenses		66.3			97.2			122.5			116.3			111.0			67.5	%
Taxes, licenses and fees		16.3			27.5			28.3			27.0			32.9			101.7	%
Total commissions and expenses incurred		149.4			275.9			317.9			369.8			371.1			148.3	%
Less: commissions and expenses capitalized		(90.1	)		(199.8	)		(226.6	)		(291.3	)		(288.9	)		NM
Amortization of DAC and VOBA		73.6			106.7			116.3			140.5			139.1			89.1	%
Net Operating and Acquisition Expenses	$	132.8		$	182.9		$	207.6		$	219.0		$	221.2			66.5	%

General and administrative expenses -
basis points on account values - Annualized		187			153			191			178			166			(21	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	2,543.9		$	2,643.8		$	4,592.2		$	4,524.7		$	4,659.4
Deferral		90.1			199.8			226.6			291.3			288.9
Amortization		(73.6	)		(106.7	)		(116.3	)		(140.5	)		(139.1	)
Included in Total Operating Expenses		16.6			93.0			110.3			150.8			149.8
Adjustment related to realized (gains) losses
on available-for-sale securities		(3.4	)		(7.9	)		(3.8	)		(6.7	)		(12.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		86.7			96.7			(174.0	)		(9.5	)		(0.9	)
Business acquired		-			1,766.6			-			-			-
Other		-			-			-			-			-
Balance at end of period	$	2,643.8		$	4,592.2		$	4,524.7		$	4,659.4		$	4,795.8

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	342.6		$	344.3		$	375.3		$	415.9		$	449.5
Deferral		19.7			57.8			58.9			65.2			65.5
Amortization		(18.0	)		(26.8	)		(18.3	)		(31.6	)		(24.4	)
Included in Expense Assessments		1.7			31.0			40.6			33.6			41.0
Balance at end of period	$	344.3		$	375.3		$	415.9		$	449.5		$	490.6

3/31/2007											PAGE 13
*Individual Markets- Individual Life Insurance*
*Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March		June		Sept.		Dec.		March		%
	2006		2006		2006		2006		2007		Change
*Sales by Product(Millions)***⁽¹⁾
Universal Life
Excluding MoneyGuard	$	41.3	$	97.5	$	119.9	$	177.6	$	166.2		NM
MoneyGuard		7.7		7.5		8.3		7.8		7.4		-3.9	%
Total		49.0		105.0		128.2		185.4		173.6		254.3	%
Variable universal life		10.0		15.7		13.0		22.1		20.6		106.0	%
Whole life		0.7		0.4		0.7		0.6		0.1		-85.7	%
Term		8.2		11.3		10.7		10.0		9.3		13.4	%
Total	$	67.9	$	132.3	$	152.5	$	218.1	$	203.5		199.7	%



*First-Year Paid Premiums* *(Millions)*
Universal Life
Excluding MoneyGuard	$	108.2	$	261.2	$	269.0	$	351.0	$	367.9		240.0	%
MoneyGuard		51.5		50.0		54.8		52.3		49.2		-4.5	%
Total		159.7		311.2		323.9		403.2		417.1		161.2	%
Variable universal life		27.1		40.5		34.4		53.4		52.5		93.7	%
Whole life		8.3		9.5		12.0		16.5		8.4		1.2	%
Term		8.6		11.5		10.4		9.6		9.1		5.8	%
Total	$	203.7	$	372.7	$	380.6	$	482.7	$	487.0		139.1	%



*Life Insurance In-Force* *(Billions)*
Universal life & other	$	129.584	$	260.945	$	263.485	$	267.228	$	272.921		110.6	%
Term insurance		191.825		229.082		232.214		234.148		235.491		22.8	%
*Total Life Segment In-Force*	$	321.409	$	490.027	$	495.699	$	501.376	$	508.411		58.2	%



⁽¹⁾Sales for Individual Life Insurance consist of first year commissionable premium for Universal life ("UL"), including Moneyguard, including UL internal replacements, and first year paid premiums for Whole life and Term products.

3/31/2007																PAGE 14
*Individual Markets - Individual Life Insurance*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
Interest Sensitive Life-Balance Beginning-of-Period	$	11.809		$	11.913		$	21.285		$	21.516		$	21.890			85.4	%
Business acquired		-			9.150			-			-			-			NM
Deposits		0.401			0.799			0.717			0.948			0.882			120.0	%
Withdrawals & deaths		(0.182	)		(0.317	)		(0.275	)		(0.301	)		(0.264	)		-45.1	%
Net flows		0.219			0.482			0.442			0.647			0.618			182.2	%
Policyholder assessments		(0.248	)		(0.492	)		(0.449	)		(0.516	)		(0.523	)		NM
Interest credited		0.133			0.232			0.239			0.242			0.243			82.7	%
*Interest Sensitive Life-Balance End-of-* *Period* ⁽¹⁾	$	11.913		$	21.285		$	21.516		$	21.890		$	22.228			86.6	%

Variable Universal Life-Balance Beginning of Period	$	2.242		$	2.355		$	4.194		$	4.305		$	4.600			105.2	%
Business acquired		-			1.918			-			-			-			NM
Deposits		0.087			0.224			0.036			0.153			0.157			80.5	%
Withdrawals & deaths		(0.049	)		(0.158	)		0.013			(0.073	)		(0.077	)		NM
Net flows		0.038			0.066			0.049			0.080			0.080			110.5	%
Policyholder assessments		(0.044	)		(0.077	)		(0.076	)		(0.079	)		(0.079	)		-79.5	%
Investment income and change in market value		0.119			(0.068	)		0.137			0.294			0.095			-20.2	%
*Variable Universal Life -Balance End-* *of-Period*	$	2.355		$	4.194		$	4.305		$	4.600		$	4.696			99.4	%

*Total Segment- Life Insurance Account Value Roll Forward*
Balance Beginning-of-Period	$	14.051		$	14.268		$	25.479		$	25.821		$	26.490			88.5	%
Business acquired		-			11.068			-			-			-			NM
Deposits		0.488			1.023			0.753			1.101			1.039			112.9	%
Withdrawals & deaths		(0.231	)		(0.476	)		(0.262	)		(0.374	)		(0.341	)		-47.6	%
Net flows		0.257			0.548			0.491			0.727			0.698			171.6	%
Policyholder assessments		(0.292	)		(0.570	)		(0.524	)		(0.595	)		(0.602	)		NM
Investment income and change in market value		0.252			0.164			0.377			0.536			0.338			34.1	%
*Total Segment -Balance End-of-Period*	$	14.268		$	25.479		$	25.821		$	26.490		$	26.924			88.7	%


Life Product Spread Information ⁽²⁾
																	Change
*Interest Sensitive Products*																	(Basis Points	)
Net investment income ^{(3) (4)}		6.48	%		6.22	%		6.08	%		6.44	%		6.48	%		-
Interest credited to policyholders		4.60	%		4.46	%		4.52	%		4.52	%		4.46	%		(14	)
Spread ⁽³⁾⁽⁴⁾		1.88	%		1.76	%		1.57	%		1.92	%		2.02	%		14

*Traditional Products*
Net investment income ⁽³⁾		6.72	%		6.59	%		6.60	%		6.51	%		6.41	%		(31	)


⁽¹⁾ Includes universal life, interest sensitive life, and the fixed investment option of VUL products.
⁽²⁾ Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on traditional investment portfolios divided by average earning assets. As of March 31, 2007, interest sensitive products represented approximately 81% of total interest sensitive and traditional earning assets.
⁽³⁾ The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread for interest sensitive products was 21 bps in the 1st quarter of 2007, 12 bps in the 4th quarter of 2006, 20 bps in the 3rd quarter of 2006, 13 bps in the 2nd quarter of 2006 and 7 bps in the 1st quarter of 2006. There was an impact on traditional products of 2 bps in the 1st quarter of 2007, 2 bps in the 4th quarter of 2006, 15 bps in the 3rd quarter of 2006, 14 bps in the 2nd quarter of 2006 and 15 bps in the 1st quarter of 2006.
⁽⁴⁾ The net investment income and spread above includes incremental yield from special investments. The impact on investment income spreads was 14 bps in the 1st quarter of 2007, 24 bps in the 4th quarter of 2006, -22 bps in the 3rd quarter of 2006, 2 bps in the 2nd quarter of 2006 and 17 bps in the 1st quarter of 2006.

3/31/2007																PAGE 15
*Individual Markets - Individual Annuities*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Premiums	$	9.3		$	15.3		$	12.3		$	10.7		$	12.8			37.6	%
Surrender charges		6.2			9.6			6.6			12.3			9.7			56.5	%
Expense assessments		168.0			182.7			189.3			215.2			226.0			34.5	%
Net investment income		148.0			263.2			312.7			314.8			266.3			79.9	%
Other revenue and fees ⁽¹⁾		43.4			81.8			75.7			84.3			90.4			108.3	%
*Total Operating Revenue*		374.8			552.6			596.5			637.3			605.1			61.4	%

*Operating Expenses*
Insurance benefits		20.4			45.3			27.4			11.7			21.4			4.9	%
Interest credited to contractholder funds		95.1			168.8			208.2			211.7			166.5			75.1	%
Operating and acquisition expenses		172.6			216.9			227.3			252.6			256.7			48.7	%
*Total Operating Expenses*		288.1			431.0			462.9			476.0			444.6			54.3	%

Income from operations before Federal income taxes		86.7			121.5			133.6			161.4			160.5			85.1	%

Federal income taxes		20.3			32.5			4.2			37.6			39.5			94.6	%

*Income from Operations*	$	66.4		$	89.0		$	129.4		$	123.8		$	121.0			82.2	%

*Effective tax rate*		23.4	%		26.7	%		3.1	%		23.3	%		24.6	%

*Average equity*	$	1,744.1		$	3,269.2		$	3,310.4		$	3,388.1		$	3,442.3
*Return on average equity*		15.2	%		10.9	%		15.6	%		14.6	%		14.1	%

*Income from Operations - basis points on*
*average account values*		52			58			84			76			72

Operating and Acquisition Expenses
Commissions	$	111.3		$	140.5		$	146.2		$	167.2		$	152.1			36.7	%
General and administrative expenses		66.2			69.8			81.8			80.9			69.5			5.0	%
Broker-dealer commissions and general and
administrative expenses		46.6			79.3			76.6			80.0			87.2			87.1	%
Taxes, licenses and fees		5.4			4.6			4.8			4.5			8.9			64.8	%
Total commissions and expenses incurred		229.5			294.2			309.4			332.6			317.7			38.4	%
Less: commissions and expenses capitalized		(122.7	)		(150.0	)		(157.6	)		(181.8	)		(157.6	)		-28.4	%
Amortization of DAC and VOBA		65.8			72.7			75.6			101.7			96.6			46.8	%

Net Operating and Acquisition Expenses	$	172.6		$	216.9		$	227.3		$	252.6		$	256.7			48.7	%

General and administrative expenses - basis
points on gross account values - Annualized ⁽²⁾		52			45			53			50			41			(11	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	1,328.0		$	1,414.9		$	1,994.4		$	1,974.1		$	2,050.4
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(27.2	)
Deferral		122.7			150.0			157.6			181.8			157.6
Amortization		(65.8	)		(72.7	)		(75.6	)		(101.7	)		(96.6	)
Included in Total Operating Expenses		56.9			77.3			82.0			80.0			61.0
Adjustment related to realized (gains) losses
on available-for-sale securities		(2.7	)		(4.1	)		(2.4	)		(1.1	)		(2.2	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		32.7			57.3			(103.6	)		(2.7	)		(14.0	)
Business acquired		-			448.9			3.8			-			14.0
Balance at end of period	$	1,414.9		$	1,994.4		$	1,974.1		$	2,050.4		$	2,082.0

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	72.0		$	78.1		$	84.8		$	94.6		$	100.9
Cumulative effect of adoption of SOP 05-1														(2.0	)
Deferral		9.4			9.8			10.0			10.6			9.8
Amortization		(3.3	)		(3.0	)		(0.1	)		(4.3	)		(3.9	)
Included in Income from Operations		6.1			6.8			9.8			6.3			5.9
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			(0.1	)		-			-
Balance at end of period	$	78.1		$	84.8		$	94.6		$	100.9		$	104.6

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	129.4		$	139.9		$	154.6		$	173.4		$	193.7
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(2.8	)
Deferral		15.7			19.9			22.2			28.2			23.7
Amortization		(5.2	)		(5.2	)		(3.3	)		(7.9	)		(8.2	)
Included in Income from Operations		10.5			14.7			18.9			20.3			15.4
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			(0.1	)		-			(0.1	)
Balance at end of period	$	139.9		$	154.6		$	173.4		$	193.7		$	206.2

⁽¹⁾ Primarily broker-dealer revenue.
⁽²⁾ Includes distribution costs.

3/31/2007																PAGE 16
*Individual Markets - Individual Annuities*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

*Fixed Annuities - Balance at Beginning of Period*	$	10.840		$	10.563		$	19.533		$	18.939		$	18.545			71.1	%

Business acquired		-			9.343			-			-			0.040			NM
Gross deposits		0.471			0.872			1.062			1.100			0.821			74.3	%
Withdrawals & deaths		(0.408	)		(1.037	)		(1.405	)		(1.162	)		(0.887	)		NM
Net flows		0.063			(0.164	)		(0.344	)		(0.062	)		(0.066	)		NM
Transfer from (to) variable annuities		(0.451	)		(0.395	)		(0.483	)		(0.561	)		(0.557	)		-23.5	%
Interest credited		0.112			0.186			0.233			0.229			0.177			58.0	%
*Fixed Annuities - Gross*		10.563			19.533			18.939			18.545			18.139			71.7	%
Reinsurance ceded		(2.202	)		(2.149	)		(2.045	)		(1.812	)		(1.689	)		23.3	%
*Fixed Annuities-Balance at End of Period* ⁽¹⁾	$	8.362		$	17.384		$	16.894		$	16.733		$	16.449			96.7	%


*Variable Annuities - Balance at Beginning of Period*	$	37.655		$	40.495		$	41.537		$	43.977		$	48.169			27.9	%

Business acquired		-			0.250			-			-			-			NM
Gross deposits		1.665			1.867			1.658			2.061			2.000			20.1	%
Withdrawals & deaths		(0.959	)		(1.004	)		(1.011	)		(1.107	)		(1.179	)		-22.9	%
Net flows		0.706			0.864			0.648			0.954			0.821			16.3	%
Transfer from (to) fixed annuities		0.451			0.395			0.483			0.560			0.556			23.3	%
Investment increase & change in market value		1.682			(0.467	)		1.309			2.678			0.754			-55.2	%
*Variable Annuities-Balance at End of Period* ⁽²⁾	$	40.495		$	41.537		$	43.977		$	48.169		$	50.300			24.2	%


*Total Annuities - Balance at Beginning of Period*	$	48.495		$	51.059		$	61.070		$	62.916		$	66.714			37.6	%

Business acquired		-			9.593			-			-			0.040			NM
Gross deposits		2.136			2.740			2.720			3.161			2.821			32.1	%
Withdrawals & deaths		(1.366	)		(2.040	)		(2.416	)		(2.269	)		(2.067	)		-51.3	%
Net flows		0.770			0.699			0.304			0.892			0.754			-2.1	%
Transfers		-			-			-			(0.001	)		(0.001	)		NM
Interest credited & change in market value		1.794			(0.281	)		1.542			2.907			0.930			-48.2	%
*Total Annuities - Gross*		51.059			61.070			62.916			66.714			68.438			34.0	%
Reinsurance ceded		(2.202	)		(2.149	)		(2.045	)		(1.812	)		(1.689	)		23.3	%
*Total Annuities (Net of Ceded) -* *Balance at End of Period*	$	48.857		$	58.921		$	60.872		$	64.902		$	66.749			36.6	%


*Variable Annuities Under Agreement -* *Included above*	$	0.190		$	0.173		$	0.169		$	0.170		$	0.163			-14.2	%

*Incremental Deposits* ⁽³⁾:
Fixed annuities	$	0.461		$	0.861		$	1.058		$	1.086		$	0.815			76.8	%
Variable annuities		1.650			1.850			1.623			2.036			1.979			19.9	%
*Total Incremental Deposits*	$	2.111		$	2.711		$	2.681		$	3.122		$	2.794			32.4	%

⁽¹⁾ Includes fixed portion of variable annuities.
⁽²⁾Excludes the fixed portion of variable annuities.
⁽³⁾Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products.

3/31/2007																PAGE 17
*Individual Markets - Individual Annuities*
*Account Values*
Unaudited [Billions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits	$	0.021		$	0.137		$	0.258		$	0.280		$	0.126			NM
Withdrawals		(0.243	)		(0.805	)		(1.148	)		(0.943	)		(0.674	)		NM
Net flows	$	(0.222	)	$	(0.668	)	$	(0.890	)	$	(0.663	)	$	(0.548	)		NM

Gross fixed contract account values	$	6.745		$	12.190		$	11.766		$	11.221		$	10.818			60.4	%
Reinsurance ceded		(2.202	)		(2.149	)		(2.045	)		(1.812	)		(1.689	)		23.3	%
Net Fixed Contract Account Values	$	4.543		$	10.041		$	9.721		$	9.409		$	9.129			100.9	%


*Indexed Annuities*
Deposits	$	-		$	0.228		$	0.244		$	0.245		$	0.160			NM
Withdrawals		-			(0.047	)		(0.068	)		(0.061	)		(0.063	)		NM
Net flows	$	-		$	0.181		$	0.177		$	0.184		$	0.098			NM

Indexed Annuity Account Values	$	-		$	3.210		$	3.454		$	3.711		$	3.844			NM


*Fixed Portion of Variable Contracts*
Deposits	$	0.449		$	0.507		$	0.559		$	0.575		$	0.535			19.2	%
Withdrawals		(0.164	)		(0.185	)		(0.190	)		(0.158	)		(0.151	)		7.9	%
Net flows	$	0.285		$	0.322		$	0.370		$	0.417		$	0.384			34.7	%

Fixed Portion of Variable Contract Account Values	$	3.819		$	4.132		$	3.719		$	3.613		$	3.476			-9.0	%


*Variable Annuities - including fixed portion of variable contracts*
Deposits	$	2.114		$	2.374		$	2.218		$	2.635		$	2.535			19.9	%
Withdrawals		(1.123	)		(1.188	)		(1.200	)		(1.265	)		(1.330	)		-18.4	%
Net Flows	$	0.991		$	1.186		$	1.017		$	1.371		$	1.205			21.6	%

Variable Contract Account Values	$	44.314		$	45.669		$	47.697		$	51.782		$	53.776			21.4	%

*Average Daily Variable Annuity Account Values*	$	39.947		$	41.214		$	42.342		$	46.514		$	49.284			23.4	%


Individual Annuity Product Spread Information																	Change
																	(Basis Point)
Net investment income ^{(1) (2) (3)}		5.84	%		5.67	%		5.89	%		5.87	%		5.87	%		3
Interest credited to policyholders^{(4) (5)}		3.93	%		3.81	%		3.81	%		3.77	%		3.75	%		(18	)
Spread ^{(1) (2) (3) (4)}		1.91	%		1.86	%		2.08	%		2.10	%		2.12	%		21

⁽¹⁾For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.
⁽²⁾ The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 5 bps in the first quarter of 2007, 10 bps in the fourth quarter of 2006, 7 bps in the third quarter of 2006, 2 bps in the second quarter of 2006 and 9 bps in the first quarter of 2006.
⁽³⁾ We exclude the results of our indexed annuity hedge program from our calculation of spreads, the impact of which affects net investment income and interest credited in approximately equal and offsetting amounts.
⁽⁴⁾ The third quarter 2006 spreads have been updated to reflect a reclassification of surrender charges within interest credited. No income statement changes were made as a result of this reclassification because the impact was immaterial.
⁽⁵⁾ The first quarter 2007 spreads reflect a 9 basis point correction (a decrease) to interest credited to policyholders related to a correction to the opening balance of JP that was finalized in the first quarter of 2007.

3/31/2007																PAGE 18
*Employer Markets - Defined Contribution*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Surrender charges	$	2.3		$	2.1		$	1.7		$	1.5		$	2.0			-13.0	%
Expense assessments		55.6			54.7			54.0			58.4			59.8			7.6	%
Net investment income		185.7			187.5			184.6			180.6			180.3			-2.9	%
Other revenue and fees		5.6			4.6			4.9			4.5			4.7			-16.1	%
*Total Operating Revenue*		249.2			248.9			245.1			245.0			246.8			-1.0	%

*Operating Expenses*
Interest credited to contractholder funds		100.7			102.4			103.1			104.4			104.3			3.6	%
Operating and acquisition expenses		73.3			69.5			74.5			80.2			71.6			-2.3	%
*Total Operating Expenses*		174.0			171.9			177.6			184.6			176.0			1.1	%

Income from operations before Federal income taxes		75.2			77.0			67.5			60.4			70.8			-5.9	%

Federal income taxes		22.7			22.7			15.0			15.8			21.1			-7.0	%

*Income from Operations*	$	52.5		$	54.3		$	52.5		$	44.6		$	49.7			-5.3	%

*Effective tax rate*		30.2	%		29.4	%		22.3	%		26.2	%		29.8	%

*Average equity*	$	1,006.4		$	985.3		$	945.7		$	954.9		$	938.5
*Return on average equity*		20.9	%		22.0	%		22.2	%		18.7	%		21.2	%

*Income from Operations - basis points on*
*average account values*		67			69			66			54			58

Operating and Acquisition Expenses
Commissions	$	26.2		$	22.2		$	23.4		$	20.8		$	19.3			-26.3	%
General and administrative expenses		49.7			47.2			56.4			56.5			49.9			0.4	%
Taxes, licenses and fees		2.9			2.8			1.3			1.9			5.1			NM
Total commissions and expenses incurred		78.8			72.3			81.1			79.2			74.2			-5.8	%
Less: commissions and expenses capitalized		(25.5	)		(22.6	)		(21.5	)		(18.5	)		(22.2	)		12.9	%
Amortization of DAC and VOBA		20.0			19.8			14.9			19.4			19.6			-2.0	%

Net Operating and Acquisition Expenses	$	73.3		$	69.5		$	74.5		$	80.2		$	71.6			-2.3	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		64			60			71			68			59			(5	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	454.9		$	517.2		$	564.0		$	503.8		$	497.6
Cumulative effect of adoption of SOP 05-1		-			-			-			-			(1.4	)
Deferral		25.5			22.6			21.5			18.5			22.2
Amortization		(20.0	)		(19.8	)		(14.9	)		(19.4	)		(19.6	)
Included in Total Operating Expenses		5.5			2.7			6.6			(0.9	)		2.6
Adjustment related to realized (gains) losses
on available-for-sale securities		(4.4	)		(6.1	)		(2.0	)		(0.2	)		(2.1	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		61.2			50.2			(64.8	)		(5.1	)		(7.2	)
Business acquired		-			-			-			-			-
Other		-			-			-			-			-
Balance at end of period	$	517.2		$	564.0		$	503.8		$	497.6		$	489.4


⁽¹⁾ Includes distribution costs.

3/31/2007																PAGE 19
*Employer Markets - Defined Contribution*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]



	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

*Fixed Annuities - Balance at Beginning of Period*	$	11.009		$	11.033		$	11.050		$	11.061		$	11.006			-
Gross deposits⁽¹⁾		0.253			0.242			0.268			0.183			0.299			18.2	%
Withdrawals & deaths		(0.328	)		(0.345	)		(0.426	)		(0.340	)		(0.399	)		-21.6	%
Net flows		(0.075	)		(0.103	)		(0.159	)		(0.157	)		(0.101	)		-34.7	%
Transfer from (to) variable annuities		0.014			0.030			0.049			(0.011	)		(0.017	)		NM
Interest credited		0.085			0.090			0.121			0.112			0.104			22.4	%
*Fixed Annuities - Balance at End of Period*⁽²⁾	$	11.033		$	11.050		$	11.061		$	11.006		$	10.993			-0.4	%


*Variable Annuities - Balance at Beginning of Period*	$	15.692		$	16.454		$	16.144		$	16.530		$	17.475			11.4	%
Gross deposits⁽¹⁾		0.669			0.714			0.583			0.559			0.655			-2.1	%
Withdrawals & deaths		(0.676	)		(0.647	)		(0.565	)		(0.669	)		(0.813	)		-20.3	%
Net flows		(0.006	)		0.067			0.018			(0.110	)		(0.158	)		NM
Transfer from (to) fixed annuities		(0.015	)		(0.032	)		(0.046	)		0.008			0.004			126.7	%
Investment increase & change in market value		0.783			(0.345	)		0.414			1.047			0.354			-54.8	%
*Variable Annuities - Balance at End of Period* ⁽³⁾	$	16.454		$	16.144		$	16.530		$	17.475		$	17.676			7.4	%

*Total Annuities - Balance at Beginning of Period*	$	26.701		$	27.487		$	27.194		$	27.591		$	28.482			6.7	%
Gross Deposits ⁽¹⁾		0.923			0.955			0.851			0.742			0.953			3.3	%
Withdrawals & deaths		(1.004	)		(0.992	)		(0.992	)		(1.009	)		(1.212	)		-20.7	%
Net flows		(0.081	)		(0.036	)		(0.141	)		(0.267	)		(0.259	)		NM
Transfers		(0.001	)		(0.002	)		0.003			(0.002	)		(0.012	)		NM
Interest credited & change in market value		0.867			(0.255	)		0.535			1.160			0.458			-47.2	%
*Total Annuities - Balance at End of Period*	$	27.487		$	27.194		$	27.591		$	28.482		$	28.669			4.3	%

*Alliance Mutual Funds - Balance at Beginning of Period*	$	3.772		$	4.248		$	4.330		$	4.636		$	5.175			37.2	%
Plan/Participant Rollovers		0.125			0.021			0.057			0.168			0.279			123.2	%
Additional contributions		0.193			0.183			0.178			0.189			0.254			31.6	%
Gross deposits		0.318			0.204			0.235			0.357			0.533			67.6	%
Withdrawals & deaths		(0.056	)		(0.054	)		(0.057	)		(0.079	)		(0.054	)		3.6	%
Net flows		0.262			0.150			0.178			0.277			0.480			83.2	%
Transfers		0.005			-			(0.015	)		0.003			0.005			0.0	%
Interest credited & change in market value		0.209			(0.068	)		0.143			0.259			0.147			-29.7	%
*Total Alliance Mutual Funds -* *Balance at End of Period* ⁽⁴⁾	$	4.248		$	4.330		$	4.636		$	5.175		$	5.807			36.7	%


*Total Defined Contribution Segment Account Values-*
*including Alliance Mutual Funds*
*Balance at Beginning of Period*	$	30.473		$	31.735		$	31.524		$	32.227		$	33.656			10.4	%
Gross deposits ⁽¹⁾		1.241			1.159			1.086			1.099			1.487			19.8	%
Withdrawals & deaths		(1.060	)		(1.045	)		(1.049	)		(1.089	)		(1.266	)		-19.4	%
Net flows		0.181			0.114			0.037			0.010			0.221			22.1	%
Transfers		0.005			(0.002	)		(0.012	)		0.000			(0.007	)		NM
Interest credited & change in market value		1.077			(0.322	)		0.677			1.419			0.606			-43.7	%
*Total Defined Contribution Segment*
*Account Values- Balance at End of Period*	$	31.735		$	31.524		$	32.227		$	33.656		$	34.475			8.6	%

*Variable Annuities Under Agreement - Included above*		0.018			0.017			0.017			0.017			0.016			-11.1	%


*Incremental Deposits*⁽⁵⁾ :
Fixed Annuities	$	0.254		$	0.226		$	0.253		$	0.173		$	0.282			11.0	%
Variable Annuities		0.654			0.709			0.576			0.551			0.581			-11.2	%
*Total Annuities Incremental Deposits*		0.908			0.935			0.829			0.724			0.862			-5.1	%
Total Alliance Mutual Funds Incremental Deposits		0.318			0.204			0.235			0.357			0.533			67.6	%
*Total Defined Contribution Incremental Deposits*	$	1.226		$	1.139		$	1.064		$	1.080		$	1.396			13.9	%

⁽¹⁾ Gross deposits for the second quarter and full year 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger.
⁽²⁾Includes Fixed Annuity products offered under the Alliance mutual funds and the fixed portion of variable annuities.
⁽³⁾ Excludes the fixed portion of variable annuities.
⁽⁴⁾Represents amounts attributable to Alliance mutual fund net flows. Alliance mutual fund account values are not included in the separate accounts reported on our balance sheet.
⁽⁵⁾ Incremental Deposits represent gross deposits reduced by transfers from other Lincoln products.

3/31/2007																PAGE 20
*Employer Markets - Defined Contribution*
*Supplemental Data*
Unaudited [Billions of Dollars]



	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits⁽¹⁾	$	0.135		$	0.121		$	0.157		$	0.093		$	0.198			46.7	%
Withdrawals		(0.108	)		(0.114	)		(0.162	)		(0.118	)		(0.166	)		-53.7	%
Net Flows	$	0.027		$	0.008		$	(0.005	)	$	(0.024	)	$	0.032			18.5	%

Fixed Contract Account Values	$	4.690		$	4.717		$	4.758		$	4.797		$	4.870			3.8	%

*Fixed Portion of Variable Contracts*
Deposits	$	0.118		$	0.120		$	0.111		$	0.090		$	0.100			-15.3	%
Withdrawals		(0.220	)		(0.231	)		(0.265	)		(0.222	)		(0.233	)		-5.9	%
Net Flows	$	(0.102	)	$	(0.111	)	$	(0.154	)	$	(0.132	)	$	(0.133	)		-30.4	%

Fixed Portion of Variable Contract Account Values	$	6.343		$	6.333		$	6.303		$	6.210		$	6.123			-3.5	%

*Variable Annuities - including fixed portion of variable contracts*
Deposits ⁽¹⁾	$	0.788		$	0.834		$	0.694		$	0.649		$	0.755			-4.2	%
Withdrawals		(0.896	)		(0.878	)		(0.830	)		(0.891	)		(1.046	)		-16.7	%
Net Flows	$	(0.108	)	$	(0.044	)	$	(0.136	)	$	(0.242	)	$	(0.291	)		NM

Variable Contract Account Values	$	22.797		$	22.477		$	22.833		$	23.685		$	23.799			4.4	%

*Average Daily Variable Annuity Account Values*	$	16.177		$	16.270		$	16.116		$	17.164		$	17.582			8.7	%


Total Annuity based Retirement Plan Product Spread Information⁽²⁾																	Change
																	(Basis Point)
Net investment income ⁽³⁾		6.34	%		6.31	%		6.39	%		6.23	%		6.20	%		(14	)
Interest credited to policyholders		3.66	%		3.73	%		3.76	%		3.79	%		3.81	%		15
Spread ⁽³⁾		2.68	%		2.58	%		2.63	%		2.44	%		2.39	%		(29	)


⁽¹⁾ Gross deposits for the second quarter of 2006 include approximately $20 million and $110 million of fixed and variable annuity deposits, respectively, resulting from JP employee plan deposits into the LNC employee plan as a result of the merger.
⁽²⁾ For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values.
⁽³⁾ The net investment income and spread reported above includes earnings from commercial mortgage loan prepayment and bond make-whole premiums. The impact of these premiums on investment income and spread was 3 bps in the 1st quarter of 2007, 4 bps in the 4th quarter of 2006, 13 bps in the 3rd quarter of 2006, 12 bps in the 2nd quarter of 2006 and 15 bps in the 1st quarter of 2006.

3/31/2007																PAGE 21
*Employer Markets - Executive Benefits*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Premiums	$	1.1		$	0.0		$	0.3		$	3.3		$	0.6			-45.5	%
Surrender charges		0.0			0.0			0.0			0.0			(0.0	)		NM
Mortality assessments		2.8			8.5			7.2			8.5			8.9			217.9	%
Expense assessments		3.3			4.9			4.5			5.5			6.2			87.9	%
Net investment income		48.7			86.5			91.0			90.5			94.8			94.7	%
Other revenue and fees		1.4			1.3			1.3			1.3			1.2			-14.3	%
*Total Operating Revenue*		57.2			101.2			104.3			109.1			111.7			95.3	%

*Operating Expenses*
Insurance benefits		32.8			30.4			35.6			39.7			33.1			0.9	%
Interest credited to contractholder funds		9.3			40.2			39.9			42.0			44.8			NM
Operating and acquisition expenses		4.6			7.2			11.7			9.1			12.7			176.1	%
*Total Operating Expenses*		46.7			77.7			87.2			90.8			90.7			94.2	%

Income from operations before Federal income taxes		10.5			23.5			17.1			18.3			21.1			101.0	%

Federal income taxes		3.0			7.3			4.3			5.6			6.6			120.0	%

*Income from Operations*	$	7.5		$	16.2		$	12.8		$	12.7		$	14.4			92.0	%

*Effective tax rate*		28.5	%		31.0	%		25.2	%		30.7	%		31.5	%

*Average equity*	$	334.5		$	524.8		$	519.8		$	528.2		$	539.3
*Return on average equity*		9.0	%		12.4	%		9.8	%		9.6	%		10.7	%


Operating and Acquisition Expenses
Commissions	$	5.1		$	8.1		$	7.1		$	11.2		$	6.5			27.5	%
General and administrative expenses		3.7			2.8			6.2			4.8			4.0			8.1	%
Taxes, licenses and fees		1.1			1.3			1.4			1.3			1.5			36.4	%
Total commissions and expenses incurred		9.9			12.2			14.6			17.3			11.9			20.2	%
Less: commissions and expenses capitalized		(5.7	)		(8.0	)		(6.7	)		(10.9	)		(6.9	)		-21.1	%
Amortization of DAC and VOBA		0.3			2.9			3.8			2.8			7.7			NM

Net Operating and Acquisition Expenses	$	4.5		$	7.2		$	11.7		$	9.1		$	12.7			182.2	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		36			16			36			27			23			(13	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	113.6		$	119.0		$	274.1		$	258.0		$	265.3
Deferral		5.7			8.0			6.7			10.9			6.9
Amortization		(0.3	)		(2.9	)		(3.8	)		(2.8	)		(7.7	)
Included in Total Operating Expenses		5.4			5.1			2.9			8.2			(0.8	)
Adjustment related to realized (gains) losses
on available-for-sale securities		-			-			(0.7	)		(0.8	)		(0.5	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		-			7.6			(18.3	)		(0.1	)		(3.4	)
Business acquired		-			142.5			-			-			-
Other		-			-			-			-			-
Balance at end of period	$	119.0		$	274.1		$	258.0		$	265.3		$	260.5

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	17.9		$	18.9		$	19.7		$	20.3		$	21.7
Deferral		1.0			1.0			0.9			1.5			1.1
Amortization		(0.0	)		(0.2	)		(0.3	)		(0.2	)		(0.8	)
Included in Income from Operations		1.0			0.8			0.6			1.4			0.3
Balance at end of period	$	18.9		$	19.7		$	20.3		$	21.7		$	22.0

⁽¹⁾ Includes distribution costs.

3/31/2007													PAGE 22
*Employer Markets - Executive Benefits*
*Account Value Roll Forward and Supplemental Data*
Unaudited [Billions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
COLI/BOLI- Balance Beginning-of-Period	$	1.318		$	1.387		$	4.228		$	4.252		$	4.305			226.6	%
Business acquired		-			2.795			-			-			-			NM
Deposits		0.047			0.077			0.058			0.085			0.065			38.3	%
Withdrawals & deaths		(0.007	)		(0.042	)		(0.069	)		(0.092	)		(0.140	)		NM
Net flows		0.039			0.035			(0.011	)		(0.007	)		(0.075	)		NM
Policyholder assessments		(0.009	)		(0.017	)		(0.016	)		(0.019	)		(0.018	)		NM
Interest credited and change in market value		0.038			0.028			0.051			0.079			0.052			36.8	%
*COLI/BOLI-Balance End-of-Period*	$	1.387		$	4.228		$	4.252		$	4.305		$	4.264			207.4	%


*COLI/BOLI In-Force*	$	7.979		$	15.373		$	15.342		$	15.645		$	14.747			84.8	%


*Run Off Institutional Pensions Account Values -*
*Balance at End of Period*	$	2.753		$	2.707		$	2.711		$	2.720		$	2.734			-0.7	%

3/31/2007												PAGE 23
*Employer Markets - Group Protection*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended
	March		June			Sept.			Dec.			March			%
	2006		2006			2006			2006			2007			Change
*Operating Revenue*
Premiums	$	-	$	328.9		$	304.1		$	315.9		$	331.3			NM
Net investment income		-		25.1			27.1			28.0			27.9			NM
Other revenue and fees		-		0.8			0.9			0.8			1.1			NM
*Total Operating Revenue*		-		354.9			332.1			344.8			360.4			NM

*Operating Expenses*
Insurance benefits		-		226.0			213.3			224.0			246.6			NM
Operating and acquisition expenses		-		72.0			74.6			69.6			78.3			NM
*Total Operating Expenses*		-		297.9			287.9			293.6			324.9			NM

Income from operations before Federal income taxes		-		56.9			44.2			51.2			35.5			NM

Federal income taxes		-		19.9			15.5			17.9			12.4			NM

*Income from Operations*	$	-	$	37.0		$	28.8		$	33.2		$	23.1			NM

*Effective tax rate*				35.0	%		35.0	%		35.0	%		35.0	%

*Average equity*			$	861.0		$	896.8		$	913.4		$	915.1
*Return on average equity*				17.2	%		12.8	%		14.6	%		10.1	%

Operating and Acquisition Expenses
Commissions	$	-	$	37.3		$	36.0		$	36.8		$	39.4			NM
General and administrative expenses		-		31.9			35.5			37.5			32.7			NM
Taxes, licenses and fees		-		8.0			7.8			6.9			9.7			NM
Total commissions and expenses incurred		-		77.1			79.3			81.2			81.8			NM
Less commissions and expenses capitalized		-		(11.2	)		(11.3	)		(14.8	)		(11.2	)		NM
Amortization of DAC and VOBA		-		6.0			6.6			3.2			7.6			NM

Net Operating and Acquisition Expenses	$	-	$	72.0		$	74.6		$	69.6		$	78.3			NM

General and administrative expenses as a
percentage of premiums		-		9.7	%		11.7	%		11.9	%		9.9	%		NM


Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	-	$	-		$	121.4		$	126.1		$	137.6
Cumulative effect of adoption of SOP 05-1		-		-			-			-			(37.5	)
Deferral		-		11.2			11.3			14.8			11.2
Amortization		-		(6.0	)		(6.6	)		(3.2	)		(7.6	)
Included in Total Operating Expenses		-		5.2			4.7			11.5			3.5
Adjustment related to realized (gains) losses
on available-for-sale securities		-		-			-			-			-
Adjustment related to unrealized (gains) losses
on available-for-sale securities		-		-			-			-			-
Business acquired		-		116.2			-			-			-
Other		-		-			-			-			-
Balance at end of period	$	-	$	121.4		$	126.1		$	137.6		$	103.7

3/31/2007												PAGE 24
*Employer Markets - Group Protection*
*Supplemental Data*
Unaudited [Millions of Dollars]


	Three Months Ended
	March		June			Sept.			Dec.			March			%
	2006		2006			2006			2006			2007			Change

*Annualized Sales*
Life	$	-	$	15.3		$	19.4		$	43.1		$	22.7			NM
Disability		-		22.9			24.7			56.9			28.6			NM
Dental		-		7.1			6.1			13.1			9.4			NM

*Premiums:*
Life	$	-	$	111.6		$	109.9		$	112.5		$	118.6			NM
Disability		-		134.0			134.8			138.5			144.8			NM
Dental		-		31.4			31.7			31.8			32.9			NM
Other		-		51.9			27.8			33.2			35.0			NM

Total	$	-	$	328.9		$	304.1		$	315.9		$	331.3			NM

*Product Line Results:*
Life	$	-	$	13.5		$	9.8		$	13.6		$	8.6			NM
Disability		-		21.1			16.1			15.5			13.3			NM
Dental		-		1.4			2.2			3.0			0.2			NM
Other		-		1.0			0.7			1.1			0.9			NM

Total	$	-	$	37.0		$	28.8		$	33.2		$	23.1			NM

*Loss Ratios:*
Life		-		67.8	%		72.3	%		69.0	%		75.0	%		NM
Disability		-		59.4	%		64.5	%		69.3	%		69.5	%		NM
Dental		-		76.3	%		71.7	%		68.7	%		79.2	%		NM

Combined loss ratios		-		64.7	%		68.4	%		69.1	%		72.7	%		NM

3/31/2007													PAGE 25
*Investment Management*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Investment advisory fees - External	$	77.8		$	81.2		$	82.4		$	86.5		$	89.9			15.6	%
Investment advisory fees - Insurance-related		25.1			23.5			23.7			24.7			24.9			-0.8	%
Other revenue and fees		36.7			30.0			34.3			37.7			35.3			-3.8	%
*Operating Revenue*		139.6			134.7			140.4			148.9			150.2			7.6	%

*Operating Expenses*
Operating and administrative expenses		116.1			116.4			120.3			126.2			124.6			7.3	%
*Total Operating Expenses*		116.1			116.4			120.3			126.2			124.6			7.3	%

Income (Loss) from operations before Federal income taxes		23.5			18.3			20.1			22.7			25.6			8.9	%
Federal income taxes		8.2			6.3			6.7			8.3			9.3			13.4	%

*Income (Loss) from Operations*	$	15.3		$	12.0		$	13.4		$	14.4		$	16.2			5.9	%

*Effective tax rate*		34.9	%		34.4	%		33.1	%		36.5	%		36.4	%

*Pre-tax Operating Margin* ⁽¹⁾		16.8	%		13.6	%		14.3	%		15.2	%		17.0	%
*After-tax Operating Margin*⁽²⁾		11.0	%		8.9	%		9.6	%		9.7	%		10.8	%

Operating and Acquisition Expenses
General and administrative expenses	$	96.1		$	99.4		$	104.2		$	109.1		$	106.5			10.8	%
Depreciation and amortization		2.2			2.4			2.2			2.4			2.6			18.2	%
Sub-advisory fees		11.0			10.6			9.8			9.8			10.0			-9.1	%
Total general and administrative expenses		109.3			112.4			116.2			121.3			119.1			9.0	%
Taxes, licenses and fees		4.8			2.4			2.7			3.5			4.1			-14.6	%
Amortization of intangibles		2.0			1.6			1.4			1.4			1.4			-30.0	%
Total expenses incurred	$	116.1		$	116.4		$	120.3		$	126.2		$	124.6			7.3	%

⁽¹⁾ Pre-tax operating margin is calculated as Income (Loss) from Operations before Federal income taxes divided by Operating Revenue.
⁽²⁾ After-tax operating margin is calculated as Income (Loss) from Operations divided by Operating Revenue.

3/31/2007													PAGE 26
*Investment Management*
*Assets Under Management Roll Forward*
Unaudited [Billions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

Retail Fixed - Balance-Beginning-of-Period	$	9.625		$	9.761		$	10.007		$	10.522		$	10.993			14.2	%
Sales ⁽¹⁾		0.951			1.034			0.981			1.091			1.365			43.5	%
Redemptions		(0.805	)		(0.824	)		(0.810	)		(0.859	)		(0.910	)		-13.0	%
Transfers		(0.056	)		0.030			0.012			0.028			0.014			125.0	%
Net Flows		0.089			0.240			0.183			0.261			0.470			NM
Net investment gains and change in market value		0.046			0.007			0.332			0.211			0.181			293.5	%
Balance at End-of-Period	$	9.761		$	10.007		$	10.522		$	10.993		$	11.644			19.3	%

Retail Equity - Balance-Beginning-of-Period	$	32.732		$	36.500		$	36.035		$	36.954		$	39.627			21.1	%
Sales ⁽¹⁾		3.069			2.249			1.516			2.101			2.238			-27.1	%
Redemptions		(1.840	)		(2.134	)		(1.984	)		(2.472	)		(2.455	)		-33.4	%
Transfers		(0.013	)		(0.032	)		(0.016	)		(0.030	)		(0.020	)		-53.8	%
Net Flows		1.216			0.082			(0.483	)		(0.401	)		(0.237	)		NM
Net investment gains and change in market value		2.552			(0.547	)		1.402			3.074			0.861			-66.3	%
Balance at End-of-Period	$	36.500		$	36.035		$	36.954		$	39.627		$	40.250			10.3	%

Total Retail - Balance-Beginning-of-Period	$	42.357		$	46.261		$	46.042		$	47.476		$	50.620			19.5	%
Retail sales-Annuities		0.885			0.869			0.960			0.932			1.300			46.9	%
Retail sales-Mutual Funds		1.329			1.370			1.151			1.768			1.753			31.9	%
Retail sales-Managed Accounts & Other		1.806			1.043			0.386			0.493			0.550			-69.5	%
Total Retail Sales ⁽¹⁾		4.019			3.282			2.497			3.192			3.603			-10.4	%
Redemptions		(2.645	)		(2.959	)		(2.794	)		(3.330	)		(3.365	)		-27.2	%
Transfers		(0.069	)		(0.002	)		(0.003	)		(0.002	)		(0.005	)		92.8	%
Net Flows		1.305			0.322			(0.300	)		(0.140	)		0.233			-82.1	%
Net investment gains and change in market value		2.598			(0.540	)		1.733			3.285			1.041			-59.9	%
Balance at End-of-Period	$	46.261		$	46.042		$	47.476		$	50.620		$	51.895			12.2	%


Institutional Fixed - Balance-Beginning-of-Period	$	14.699		$	17.262		$	18.154		$	19.387		$	22.841			55.4	%
Inflows ⁽¹⁾		3.080			1.634			1.133			3.644			1.560			-49.4	%
Withdrawals/terminations		(0.447	)		(0.750	)		(0.516	)		(0.487	)		(0.480	)		-7.4	%
Transfers		0.002			0.008			(0.002	)		0.001			0.000			NM
Net Flows		2.636			0.892			0.615			3.157			1.081			-59.0	%
Transfer of assets to an intercompany manager ⁽³⁾		-			-			-			-			(0.780	)		NM
Net investment gains and change in market value		(0.074	)		0.001			0.618			0.297			0.328			NM
Balance at End-of-Period	$	17.262		$	18.154		$	19.387		$	22.841		$	23.469			36.0	%

Institutional Equity - Balance-Beginning-of-Period	$	20.576		$	22.906		$	21.729		$	22.649		$	23.845			15.9	%
Inflows⁽¹⁾		1.964			1.130			1.274			1.244			0.870			-55.7	%
Withdrawals/terminations		(1.008	)		(1.327	)		(0.844	)		(1.734	)		(2.273	)		NM
Transfers		-			(0.008	)		0.001			(0.001	)		0.000			NM
Net Flows		0.956			(0.205	)		0.431			(0.490	)		(1.402	)		NM
Net investment gains and change in market value		1.373			(0.971	)		0.489			1.687			0.339			-75.3	%
Balance at End-of-Period	$	22.906		$	21.729		$	22.649		$	23.845		$	22.782			-0.5	%

Total Institutional - Balance-Beginning-of-Period	$	35.276		$	40.167		$	39.883		$	42.035		$	46.686			32.3	%
Inflows ⁽¹⁾		5.044			2.764			2.406			4.888			2.431			-51.8	%
Withdrawals/terminations		(1.454	)		(2.078	)		(1.360	)		(2.221	)		(2.753	)		-89.3	%
Transfers		0.003			0.000			(0.000	)		(0.000	)		0.001			-66.7	%
Net Flows		3.592			0.687			1.046			2.666			(0.321	)		NM
Transfer of assets to an intercompany manager ⁽³⁾		-			-			-			-			(0.780	)		NM
Net investment gains and change in market value		1.299			(0.971	)		1.107			1.984			0.667			-48.7	%
Balance at End-of-Period	$	40.167		$	39.883		$	42.035		$	46.686		$	46.251			15.1	%

Total Retail and Institutional - At End-of-Period	$	86.428		$	85.926		$	89.511		$	97.307		$	98.146			13.6	%

General Account Assets-End-of-Period ⁽²⁾	$	41.995		$	65.637		$	67.410		$	67.066		$	67.292			60.2	%

Total Assets Under Management
At End-of-Period	$	128.423		$	151.563		$	156.921		$	164.373		$	165.438			28.8	%

Total Retail and Institutional - Net Flows	$	4.898		$	1.008		$	0.745		$	2.526		$	(0.088	)		NM

Subadvised Assets, included in Assets
Under Management above
Retail	$	17.320		$	16.899		$	16.421		$	18.023		$	18.466			6.6	%
Institutional		5.608			4.593			4.560			4.648			4.645			-17.2	%
Total Subadvised Assets	$	22.928		$	21.491		$	20.982		$	22.671		$	23.111			0.8	%

⁽¹⁾ Sales and in-flows include dividend reinvestments.
⁽²⁾ Balances reflect $26.1 billion of assets assumed as a result of the merger with Jefferson-Pilot on April 4, 2006.
⁽³⁾ Transfer does not impact LFG consolidated assets under management.

3/31/2007													PAGE 27
*Lincoln UK*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Revenue*
Premiums	$	16.6		$	19.9		$	21.1		$	21.0		$	24.2			45.8	%
Mortality assessments		7.8			8.9			8.7			9.0			10.0			28.2	%
Expense assessments		28.0			34.7			23.9			36.8			37.1			32.5	%
Net investment income		17.0			17.8			18.6			18.0			19.3			13.5	%
Other revenue and fees		0.1			-			-			-			0.1			-
*Total Operating Revenue*		69.5			81.4			72.3			84.8			90.7			30.5	%

*Operating Expenses*
Insurance benefits		25.4			27.5			25.0			30.4			36.0			41.7	%
Operating and acquisition expenses		27.6			38.9			34.5			39.1			38.0			37.7	%
*Total Operating Expenses*		53.0			66.3			59.5			69.5			74.0			39.6	%

Income from operations before Federal income taxes		16.5			15.1			12.8			15.3			16.7			1.2	%
Federal income taxes		5.8			5.2			4.5			5.4			5.9			1.7	%

*Income from Operations*	$	10.7		$	9.9		$	8.3		$	9.9		$	10.9			1.9	%

*Effective tax rate on*
*Income from Operations*		35.1	%		34.4	%		35.2	%		35.3	%		35.3	%

*Average equity*	$	427.0		$	417.8		$	406.0		$	392.3		$	384.8
*Return on average equity*		10.0	%		9.5	%		8.2	%		10.1	%		11.3	%


Operating and Acquisition Expenses

Commissions	$	0.9		$	1.1		$	1.4		$	1.1		$	1.0			11.1	%
General and administrative expenses		22.7			23.9			25.1			27.9			26.5			16.7	%
Total commissions and expenses incurred		23.6			25.0			26.4			29.0			27.6			16.9	%
Less: commissions and expenses capitalized		(0.5	)		(0.1	)		(0.6	)		(0.7	)		(0.6	)		-20.0	%
Amortization of DAC and VOBA		4.5			13.9			8.7			10.8			11.0			144.4	%

Net Operating and Acquisition Expenses	$	27.6		$	38.9		$	34.5		$	39.1		$	38.0			37.7	%


Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	743.4		$	747.2		$	781.7		$	783.4		$	809.0
Deferral		0.5			0.1			0.6			0.7			0.6
Amortization		(4.5	)		(13.9	)		(8.7	)		(10.8	)		(11.0	)
Included in Total Benefits and Expenses		(4.0	)		(13.8	)		(8.0	)		(10.1	)		(10.4	)
Foreign currency translation adjustment		7.7			48.3			9.7			35.7			4.1
Balance at end of period	$	747.2		$	781.7		$	783.4		$	809.0		$	802.6


Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	363.1		$	364.5		$	381.2		$	392.8		$	404.5
Deferral		1.0			0.5			0.8			0.6			0.9
Amortization		(3.4	)		(7.4	)		6.1			(6.8	)		(7.0	)
Included in Income from Operations		(2.4	)		(6.9	)		6.9			(6.2	)		(6.1	)
Foreign currency translation adjustment		3.8			23.6			4.7			17.9			2.0
Balance at end of period	$	364.5		$	381.2		$	392.8		$	404.5		$	400.4

3/31/2007													PAGE 28
*Lincoln UK*
*Operational Data*
Unaudited [Billions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

Unit Linked Assets
Balance-Beg-of-Period	$	7.320		$	7.754		$	7.857		$	8.118		$	8.757			19.6	%

Deposits		0.069			0.073			0.105			0.071			0.068			-1.4	%
Withdrawals (including charges) and Deaths		(0.186	)		(0.201	)		(0.218	)		(0.232	)		(0.240	)		-29.0	%
Net Flows		(0.118	)		(0.128	)		(0.113	)		(0.161	)		(0.172	)		-45.8	%
Investment income and change in market value		0.479			(0.267	)		0.275			0.424			0.277			-42.2	%
Foreign Currency Adjustment		0.072			0.500			0.098			0.376			0.045			-37.5	%
Unit Linked Assets - End-of-Period	$	7.754		$	7.857		$	8.118		$	8.757		$	8.906			14.9	%

Individual Life In-force	$	17.744		$	18.289		$	18.464		$	19.345		$	19.307			8.8	%

Exchange Rate - Dollars to Pounds
For-the-Period		1.754			1.829			1.878			1.930			1.964			12.0	%
End-of-Period		1.737			1.849			1.872			1.958			1.968			13.3	%

3/31/2007													PAGE 29
*Lincoln Financial Media*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
*Operating Results*
Communications revenues, net	$	-		$	57.5		$	59.8		$	70.0		$	67.2			NM
Cost of sales		-			7.6			10.3			15.2			17.0			NM
Operating expenses		-			22.2			21.0			21.7			24.2			NM
Station operating income		-			27.7			28.5			33.1			26.0			NM
Depreciation and amortization		-			6.0			2.7			2.6			4.2			NM
General and administrative expenses		-			1.8			1.4			1.2			1.3			NM
Taxes, licenses and fees		-			-			1.5			1.8			1.3			NM
Net interest expense and other		-			0.3			0.3			0.3			0.1			NM

Income from operations before Federal income taxes		-			19.6			22.6			27.2			19.2			NM

Federal income taxes		-			7.7			8.0			9.6			6.8			NM

*Income from Operations*	$	-		$	11.9		$	14.6		$	17.5		$	12.4			NM

*Effective tax rate on*
*Income from Operations*					39.3	%		35.4	%		35.4	%		35.5	%


*Other Operations* ⁽¹⁾
Unaudited [Millions of Dollars]

	Three Months Ended
		March			June			Sept.			Dec.			March			%
		2006			2006			2006			2006			2007			Change

*Operating Revenue*
Premiums	$	0.3		$	0.3		$	0.9		$	3.8		$	2.1			NM
Net investment income		39.6			72.1			59.6			53.1			46.7			17.9	%
Amortization of deferred gain on
indemnity reinsurance ⁽²⁾		18.8			18.8			18.8			18.8			18.6			-1.1	%
Other revenue and fees		(1.8	)		(0.1	)		(4.5	)		(4.9	)		(2.9	)		-61.1	%
Inter-segment elimination of investment advisory fees		(25.1	)		(23.5	)		(23.3	)		(25.2	)		(24.5	)		2.4	%
*Total Operating Revenue*		31.7			67.6			51.4			45.6			40.0			26.2	%

*Operating Expenses*
Insurance benefits		1.6			4.1			3.9			7.3			5.7			256.3	%
Interest credited to contractholder funds		33.9			36.5			36.1			37.1			37.1			9.4	%
Operating and acquisition expenses		(1.2	)		28.5			(7.3	)		33.8			16.9			NM
Taxes, licenses and fees		3.0			0.6			2.6			1.2			2.7			-10.0	%
Interest		21.5			64.3			66.7			64.3			60.8			182.8	%
Inter-segment elimination of investment advisory fees		(25.1	)		(23.5	)		(23.3	)		(25.2	)		(24.5	)		2.4	%
*Total Operating Expenses*		33.7			110.6			78.8			118.6			98.6			192.6	%

Income (loss) from operations before Federal income taxes		(2.0	)		(43.1	)		(27.4	)		(73.0	)		(58.5	)		NM

Federal income taxes		(2.2	)		(17.0	)		(15.9	)		(34.5	)		(23.3	)		NM

*Income (loss) from Operations*	$	0.1		$	(26.1	)	$	(11.5	)	$	(38.4	)	$	(35.2	)		NM


⁽¹⁾Includes eliminations of intercompany transactions.
⁽²⁾Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

3/31/2007													PAGE 30
*Consolidated Domestic Deposits/Account Balances*
Unaudited [Billions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	0.471		$	0.872		$	1.062		$	1.100		$	0.821			74.3	%
Individual Markets - Variable Annuities		1.665			1.867			1.658			2.061			2.000			20.1	%
Individual Markets - Life Insurance		0.488			1.023			0.753			1.101			1.039			112.9	%
Employer Markets - Fixed Annuities		0.253			0.242			0.268			0.183			0.299			18.2	%
Employer Markets - Variable Products⁽¹⁾		0.987			0.918			0.818			0.916			1.188			20.4	%
Employer Markets - Executive Benefits		0.047			0.077			0.058			0.085			0.065			38.3	%
Inv Mgmt - Annuities		0.885			0.869			0.960			0.932			1.300			46.9	%
Inv Mgmt - Mutual Funds		1.329			1.370			1.151			1.768			1.753			31.9	%
Inv Mgmt - Managed Acct. & Other		1.806			1.043			0.386			0.493			0.550			-69.5	%
Consolidating Adjustments		(0.481	)		(0.773	)		(0.817	)		(0.833	)		(0.799	)		-66.1	%
Total Gross Retail Deposits		7.449			7.509			6.297			7.805			8.217			10.3	%

Inv Mgmt - Institutional		5.044			2.764			2.406			4.888			2.431			-51.8	%
Consolidating Adjustments		(0.257	)		(0.365	)		(0.202	)		(0.109	)		(0.112	)		56.4	%
Total Gross Deposits	$	12.236		$	9.907		$	8.501		$	12.584		$	10.536			-13.9	%


Account Balances - End of Period
Individual Markets - Fixed Annuities	$	8.362		$	17.384		$	16.894		$	16.733		$	16.449			96.7	%
Individual Markets - Variable Annuities		40.495			41.537			43.977			48.169			50.300			24.2	%
Individual Markets - Life Insurance		14.268			25.479			25.821			26.490			26.924			88.7	%
Employer Markets - Fixed Annuities		11.033			11.050			11.061			11.006			10.993			-0.4	%
Employer Markets - Variable Products⁽¹⁾		20.702			20.475			21.166			22.650			23.482			13.4	%
Employer Markets - Executive Benefits		1.387			4.228			4.252			4.305			4.264			207.4	%
Inv Mgmt - Annuities		13.998			13.577			14.129			15.151			15.467			10.5	%
Inv Mgmt - Mutual Funds		17.101			16.654			17.068			17.875			18.747			9.6	%
Inv Mgmt - Managed Acct. & Other		15.162			15.812			16.279			17.594			17.681			16.6	%
Consolidating Adjustments		(13.282	)		(13.057	)		(13.649	)		(14.687	)		(15.025	)		-13.1	%
Total Retail Account Balances		129.225			153.137			156.998			165.287			169.282			31.0	%

Inv Mgmt - Institutional		40.167			39.883			42.035			46.686			46.251			15.1	%
Consolidating Adjustments		(3.573	)		(3.557	)		(3.510	)		(3.604	)		(2.829	)		20.8	%
Total Account Balances	$	165.820		$	189.464		$	195.524		$	208.369		$	212.704			28.3	%

*Total Domestic Net Flows*
Unaudited [Billions of Dollars]

	Three Months Ended
		March			June			Sept.			Dec.			March			%
For the Period Ended		2006			2006			2006			2006			2007			Change

Individual Markets - Life	$	0.257		$	0.548		$	0.491		$	0.727		$	0.698			171.6	%
Individual Markets - Annuities		0.770			0.699			0.304			0.892			0.754			-2.1	%
Employer Markets - Defined Contribution		0.181			0.114			0.037			0.010			0.221			22.1	%
Employer Markets - Executive Benefits		0.039			0.035			(0.011	)		(0.007	)		(0.075	)		NM
Investment Management - Retail		1.305			0.322			(0.300	)		(0.140	)		0.233			-82.1	%
Consolidating Adjustments		0.083			(0.009	)		0.012			(0.092	)		(0.004	)		NM
Total Retail Net Flows		2.635			1.709			0.532			1.390			1.827			-30.7	%

Investment Management - Institutional		3.592			0.687			1.046			2.666			(0.321	)		NM
Consolidating Adjustments		(0.039	)		(0.047	)		0.139			0.068			0.048			223.1	%
Total Net Flows	$	6.188		$	2.349		$	1.717		$	4.125		$	1.554			-74.9	%


(1) Includes amounts attributable to Alliance program mutual fund net flows.
Account values for the Alliance program are not included in the separate accounts reported on our balance sheet.

3/31/2007					PAGE 31
*Consolidated Investment Data - Assets Managed*
Unaudited [Billions of Dollars]

	As of
	March		June		Sept.		Dec.		March		%
	2006		2006		2006		2006		2007		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	32.893	$	54.024	$	55.825	$	55.853	$	56.256		71.0	%
Equity securities - available for sale		0.176		0.579		0.662		0.700		0.714		NM
Trading securities		3.190		3.109		3.172		3.036		2.910		-8.8	%
Other investments		6.314		12.003		11.948		11.898		11.970		89.6	%
Total LNC Investments		42.573		69.714		71.608		71.488		71.849		68.8	%
Separate accounts		67.984		71.095		74.357		80.534		83.147		22.3	%
Cash and invested cash		1.974		1.500		1.108		1.621		0.900		-54.4	%
Total LNC		112.531		142.309		147.073		153.642		155.897		38.5	%

Non-affiliate assets managed		70.464		70.185		73.227		79.881		81.134		15.1	%

Total Assets Managed	$	182.995	$	212.495	$	220.300	$	233.523	$	237.031		29.5	%

Assets Managed by Advisor
Investment Management segment
(See page 26 for additional detail)	$	86.428	$	85.926	$	89.511	$	97.307	$	98.146		13.6	%
DLIA-Corp
(Assets managed internally-see page 26)		41.995		65.637		67.410		67.066		67.292		60.2	%
Lincoln UK		8.986		9.171		9.440		10.108		10.255		14.1	%
Domestic Policy Loans (excluding Lincoln UK)		1.856		2.712		2.720		2.755		2.763		48.9	%
Non-LNC Affiliates		43.729		49.049		51.219		56.286		58.575		34.0	%
Total Assets Managed	$	182.995	$	212.495	$	220.300	$	233.523	$	237.031		29.5	%

3/31/2007										PAGE 32
*Consolidated Investment Data*
Unaudited [Millions of Dollars]

	Three Months Ended
	March			June			Sept.			Dec.			March			%
	2006			2006			2006			2006			2007			Change

*Net Investment Income*

Fixed maturity AFS securities	$	513.7		$	829.0		$	824.8		$	841.7		$	843.8			64.3	%
Equity AFS securities		2.1			8.6			7.9			8.5			8.6			NM
Trading securities		49.7			49.4			49.2			48.6			45.4			-8.7	%
Mortgage loans on real estate		67.2			135.0			137.8			128.5			130.6			94.3	%
Real estate		9.1			13.2			13.3			20.6			15.2			67.0	%
Policy loans		29.7			42.5			43.0			43.7			42.6			43.4	%
Invested cash		22.8			22.2			33.0			15.6			18.2			-20.2	%
Other investments		14.6			10.2			41.3			71.8			29.8			104.1	%
Investment revenue		708.8			1,110.1			1,150.3			1,179.0			1,134.2			60.0	%
Investment expense		(30.4	)		(41.9	)		(42.4	)		(52.6	)		(44.6	)		-46.7	%

*Net Investment Income*	$	678.3		$	1,068.2		$	1,107.9		$	1,126.3		$	1,089.5			60.6	%

Mean Invested Assets (Amortized Cost)	$	44,363.6		$	70,933.3		$	70,646.9		$	70,451.4		$	69,905.7


Ratio of Net Investment Income Over Mean Invested Assets		6.12	%		6.02	%		6.27	%		6.39	%		6.23	%

	Three Months Ended
		March			June			Sept.			Dec.			March			%
		2006			2006			2006			2006			2007			Change
*Realized Investment Gains (Losses)*
Fixed maturities	$	4.4		$	8.2		$	6.7		$	10.6		$	44.2			NM
Equity securities		0.2			(1.1	)		-			-			2.2			NM
Other gains (losses), net		3.5			6.5			(5.5	)		3.5			(0.1	)		NM
Policyholders' interest		(1.8	)		(1.4	)		2.0			7.6			(1.9	)		-5.6	%
Capital gains expense		(2.4	)		-			-			-			-			NM
Sale of affiliate		-			-			-			-			-			NM
Total pretax gains (losses)		3.9			12.2			3.1			21.7			44.4			NM
Amortization of DAC, VOBA and deferred
sales inducements		(10.9	)		(18.9	)		(8.9	)		(8.9	)		(17.9	)		-64.2	%
Income taxes		(2.9	)		(3.0	)		(1.7	)		3.4			9.3			NM
Realized investment gains (losses), net of taxes	$	(4.2	)	$	(3.8	)	$	(4.1	)	$	9.4		$	17.1			NM

					As of March 31, 2007									As of December 31, 2006
					Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities [Millions of Dollars]
Fixed Maturity Sec (Fair Value)				$	59,165.3			98.8	%				$	58,889.8			98.8	%
Fixed Maturity Sec (Amortized Cost)					57,951.2			98.9	%					57,725.8			98.9	%

Equity Securities (Fair Value)					713.9			1.2	%					700.2			1.2	%
Equity Securities (Amortized Cost)					655.4			1.1	%					656.8			1.1	%

*% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)*
Treasuries and AAA								19.9	%								19.6	%
AA or better								29.2	%								28.1	%
BB or less								5.6	%								6.3	%

*General Account Investments*					As of March 31, 2007									As of December 31, 2006
					Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	45,484.0			80.9	%				$	45,489.4			81.4	%
U.S. government bonds					244.3			0.4	%					263.4			0.5	%
Foreign government bonds					1,077.1			1.9	%					1,141.6			2.0	%
Mortgage backed securities					9,186.2			16.3	%					8,691.3			15.6	%
State and municipal bonds					155.5			0.3	%					159.4			0.3	%
Preferred stocks - redeemable					108.4			0.2	%					108.3			0.2	%
Total				$	56,255.6			100.0	%				$	55,853.4			100.0	%


	As of
		March			June			Sept.			Dec.			March			%
		2006			2006			2006			2006			2007			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	32,892.8		$	54,024.1		$	55,824.9		$	55,853.4		$	56,255.6			71.0	%
Equity		176.0			578.5			662.0			700.2			713.9			NM
Trading securities		3,190.1			3,109.0			3,172.5			3,036.3			2,909.7			-8.8	%
Mortgage loans on real estate & real estate		3,766.5			8,169.7			8,004.5			7,805.6			7,822.2			107.7	%
Policy loans		1,860.4			2,716.4			2,724.9			2,759.7			2,766.8			48.7	%
Derivative Investments		199.3			279.6			349.4			415.3			412.6			107.0	%
Other investments		488.2			837.0			869.3			917.1			968.6			98.4	%
Total	$	42,573.2		$	69,714.4		$	71,607.5		$	71,487.6		$	71,849.3			68.8	%