ex99-2.htm

6/30/2007		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:

*	Commissions and general & administrative expenses - during the fourth quarter of 2006 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.

*	During the fourth quarter of 2006 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.

	For the Quarter Ended June 30												For the Six Months Ended June 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change
*Income from Operations - By Segment*
Individual Life Insurance	$	176.4		$	147.1		$	29.3			19.9	%	$	343.0		$	216.1		$	126.9			58.7	%
Individual Annuities		130.1			89.0			41.1			46.2	%		251.1			155.5			95.6			61.5	%
Individual Markets		306.5			236.1			70.4			29.8	%		594.2			371.6			222.6			59.9	%
Defined Contribution		47.3			54.3			(7.0	)		-12.9	%		97.0			106.8			(9.8	)		-9.2	%
Executive Benefits		13.9			16.2			(2.3	)		-14.2	%		28.3			23.8			4.5			18.9	%
Group Protection		29.0			37.0			(8.0	)		-21.6	%		52.1			37.0			15.1			40.8	%
Employer Markets		90.1			107.6			(17.5	)		-16.3	%		177.4			167.6			9.8			5.8	%
Investment Management		11.3			12.0			(0.7	)		-5.8	%		27.5			27.3			0.2			0.7	%
Lincoln UK		11.7			9.9			1.8			18.2	%		22.5			20.6			1.9			9.2	%
Lincoln Financial Media		13.6			11.9			1.7			14.3	%		26.0			11.9			14.1			118.5	%
Other Operations		(46.6	)		(26.1	)		(20.5	)		-78.5	%		(81.8	)		(26.0	)		(55.8	)	NM
*Total Income from Operations ⁽¹⁾*		386.7			351.4			35.3			10.0	%		765.9			572.9			193.0			33.7	%

Realized gains (losses)		(4.9	)		(3.8	)		(1.1	)		-28.9	%		12.3			(8.0	)		20.3			253.8	%
Net gain (loss) on reinsurance
derivative/trading account securities		2.1			1.2			0.9			75.0	%		2.1			5.0			(2.9	)		-58.0	%
Reserve development/ amortization of related deferred gain		(7.9	)		0.2			(8.1	)	NM				(7.7	)		0.4			(8.1	)	NM
*Net Income*	$	376.0		$	349.0		$	27.0			7.7	%	$	772.4		$	570.2		$	202.2			35.5	%

*Earnings per share (diluted)*

*Income from Operations ⁽¹⁾*	$	1.41		$	1.25		$	0.16			12.8	%	$	2.76		$	2.49		$	0.27			10.8	%
Realized losses		(0.02	)		(0.02	)		-			-			0.04			(0.04	)		0.08			200.0	%
Net gain (loss) on reinsurance
derivative/trading account securities		0.01			-			0.01		NM				0.01			0.02			(0.01	)		-50.0	%
Reserve development/ amortization of related deferred gain		(0.03	)		-			(0.03	)	NM				(0.02	)		-			(0.02	)	NM
*Net Income*	$	1.37		$	1.23		$	0.14			11.4	%	$	2.79		$	2.47		$	0.32			13.0	%
																	-


*Operating Revenue- By Segment*
Individual Life Insurance	$	957.5		$	901.4		$	56.1			6.2	%	$	1,928.8		$	1,402.0		$	526.8			37.6	%
Individual Annuities		675.3			552.6			122.7			22.2	%		1,280.5			927.4			353.1			38.1	%
Individual Markets		1,632.8			1,454.0			178.8			12.3	%		3,209.3			2,329.4			879.9			37.8	%
Defined Contribution		252.1			248.9			3.2			1.3	%		498.8			498.1			0.7			0.1	%
Executive Benefits		114.9			101.2			13.7			13.5	%		226.6			158.4			68.2			43.1	%
Group Protection		391.0			354.9			36.1			10.2	%		751.4			354.9			396.5			111.7	%
Employer Markets		758.0			704.9			53.1			7.5	%		1,476.9			1,011.3			465.6			46.0	%
Investment Management		151.0			134.7			16.3			12.1	%		301.1			274.3			26.8			9.8	%
Lincoln UK		92.5			81.4			11.1			13.6	%		183.3			150.9			32.4			21.5	%
Lincoln Financial Media		57.6			57.7			(0.1	)		-0.2	%		125.1			57.7			67.4			116.8	%
Other Operations		45.3			67.6			(22.3	)		-33.0	%		85.4			99.3			(13.9	)		-14.0	%
*Total Operating Revenue*		2,737.2			2,500.3			236.9			9.5	%		5,381.1			3,922.8			1,458.3			37.2	%

Realized losses		(8.7	)		(6.7	)		(2.0	)		-29.9	%		17.8			(13.6	)		31.4			230.9	%
Gain (loss) on reinsurance
derivative/trading account securities		4.0			1.8			2.2		NM				3.8			7.7			(3.9	)		-50.6	%
Amortization of deferred gain-reserve development		7.8			0.3			7.5		NM				8.1			0.6			7.5		NM
*Total Revenue*	$	2,740.3		$	2,495.6		$	244.7			9.8	%	$	5,410.7		$	3,917.4		$	1,493.3			38.1	%

⁽¹⁾ Income from operations includes after-tax restructuring charges of $4.0 million, or 1 cent per share, and $6.2 million, or 2 cents per share, for the quarters ended June 30, 2007 and
2006, respectively, and $6.5 million, or 2 cents per share, for the six months ended June 30, 2007 and 2006, respectively.

*Operational Data by Segment*	For the Quarter Ended June 30												For the Six Months Ended June 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change

*Individual Markets*
Individual Annuities
Gross deposits	$	3.277		$	2.740		$	0.538			19.6	%	$	6.098		$	4.876		$	1.223			25.1	%
Net flows		1.138			0.699			0.439			62.8	%		1.893			1.469			0.424			28.9	%
Account values (gross)		73.038			61.070			11.969			19.6	%		73.038			61.070			11.968			19.6	%
Account values (net of reinsurance)		71.441			58.921			12.520			21.2	%		71.441			58.921			12.520			21.2	%
Individual Life Insurance
Sales (in millions) ⁽¹⁾		180.0			132.3			47.7			36.1	%		383.5			200.3			183.3			91.5	%
Life insurance in-force		512.195			490.027			22.168			4.5	%		512.195			490.027			22.168			4.5	%
Account values		27.465			25.479			1.986			7.8	%		27.465			25.479			1.986			7.8	%
*Employer Markets*
Defined Contribution
Gross deposits ⁽²⁾	$	1.273		$	1.159		$	0.114			9.8	%	$	2.760		$	2.400		$	0.360			15.0	%
Net flows		0.074			0.114			(0.040	)		-35.1	%		0.295			0.294			0.001			0.3	%
Account values - annuities		29.421			27.194			2.227			8.2	%		29.421			27.194			2.227			8.2	%
Alliance Mutual Funds		6.543			4.330			2.213			51.1	%		6.543			4.330			2.213			51.1	%
Account values including Alliance Mutual Funds		35.964			31.524			4.440			14.1	%		35.964			31.524			4.440			14.1	%
Executive Benefits
COLI/BOLI sales (in millions)		13.6			17.2			(3.6	)		-20.9	%		34.0			34.1			(0.1	)		-0.3	%
Life insurance in-force		14.809			15.373			(0.564	)		-3.7	%		14.809			15.373			(0.564	)		-3.7	%
Account values		4.353			4.228			0.125			3.0	%		4.353			4.228			0.125			3.0	%
Group Protection
Annualized sales (in millions)		62.0			45.3			16.7			36.8	%		122.7			45.3			77.4			170.8	%
Loss ratio⁽³⁾		70.8	%		64.7	%	NM			NM				71.8	%		64.7	%	NM			NM
*Investment Management Segment*
Retail sales	$	3.272		$	3.282		$	(0.010	)		-0.3	%	$	6.876		$	7.302		$	(0.426	)		-5.8	%
Retail net flows		(0.277	)		0.322			(0.598	)	NM				(0.044	)		1.627			(1.671	)		NM
Institutional in-flows		2.877			2.764			0.113			4.1	%		5.308			7.808			(2.500	)		-32.0	%
Institutional net flows		(0.148	)		0.687			(0.835	)	NM				(0.469	)		4.279			(4.748	)	NM
Total Sales and In-flows		6.150			6.046			0.103			1.7	%		12.184			15.110			(2.926	)		-19.4	%
Total Net Flows		(0.425	)		1.008			(1.433	)	NM				(0.513	)		5.906			(6.419	)	NM
Assets Under Management- Retail and Institutional		97.725			85.926			11.799			13.7	%		97.725			85.926			11.799			19.4	%
Assets Under Management - General Account		66.423			65.637			0.786			1.2	%		66.423			65.637			0.786			1.2	%
Assets Under Management - Total Segment		164.148			151.563			12.585			8.3	%		164.148			151.563			12.585			8.3	%
*Consolidated*
Domestic Retail Deposits	$	8.016		$	7.509		$	0.507			6.8	%	$	16.233		$	14.958		$	1.275			8.5	%
Domestic Retail Account Balances		177.871			153.137			24.734			16.2	%		177.871			153.137			24.734			16.2	%
Domestic Retail Net Flows		1.877			1.709			0.168			9.8	%		3.704			4.344			(0.640	)		-14.7	%
Domestic Deposits		10.706			9.907			0.798			8.1	%		21.242			22.143			(0.902	)		-4.1	%
Domestic Net Flows		1.702			2.349			(0.646	)		-27.5	%		3.256			8.537			(5.280	)		-61.8	%
Assets Under Management		245.063			212.495			32.568			15.3	%		245.063			212.495			32.568			15.3	%

⁽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.

	For the Quarter Ended June 30												For the Six Months Ended June 30
	2007			2006									2007			2006
	Amount			Amount			Change			% Change			Amount			Amount			Change			% Change

*Balance Sheet Assets - End of Period*	$	187,649.6		$	167,380.0		$	20,269.6			12.1	%	$	187,649.6		$	167,380.0		$	20,269.6			12.1	%

*Shareholders' Equity*
Beg of period (including AOCI)	$	12,032.2		$	6,338.2		$	5,694.0					$	12,201.0		$	6,384.4		$	5,816.6
End of period (including AOCI)		11,835.7			11,404.8			430.9						11,835.7			11,404.8			430.9
End of period (excluding AOCI)		11,686.4			11,439.8			246.6						11,686.4			11,439.8			246.6
Average equity (excluding AOCI)		11,529.4			11,311.3			218.2						11,504.8			8,633.1			2,871.8

Return on Equity
Net income/average equity (excluding AOCI)		13.0	%		12.3	%								13.4	%		13.2	%
Inc from operations/average equity (excluding AOCI)		13.4	%		12.4	%								13.3	%		13.3	%

*Return on Capital*
Inc from operations/average capital		10.8	%		10.1	%								10.7	%		11.0	%

*Common Stock Outstanding*
Average for the period - diluted		274.4			282.6			(8.2	)		-2.9	%		276.9			230.5			46.4			20.1	%
End of period - assuming conv of preferreds		271.6			281.8			(10.1	)		-3.6	%		271.6			281.8			(10.1	)		-3.6	%
End of period - diluted		274.5			285.0			(10.5	)		-3.7	%		274.5			285.0			(10.5	)		-3.7	%

Book value (including AOCI)	$	43.57		$	40.48		$	3.10			7.6	%	$	43.57		$	40.48		$	3.10			7.6	%
Book value (excluding AOCI)		43.02			40.60			2.42			6.0	%	$	43.02		$	40.60		$	2.42			6.0	%

*Cash Returned to Shareholders*
Share repurchase - dollar amount	$	-		$	502.6		$	(502.6	)				$	511.7		$	502.6		$	9.1
Dividends declared to shareholders		107.6			147.4			(39.9	)					214.3			214.9			(0.6	)
*Total Cash Returned to Shareholders*	$	107.6		$	650.0		$	(542.5	)				$	726.0		$	717.5		$	8.5

Share repurchase - number of shares		-			8.1			(8.060	)					7.215			8.060			(0.845	)
Dividend declared on common stock - per share	$	0.395		$	0.380		$	0.015			3.9	%	$	0.790		$	0.760		$	0.030			3.9	%
Dividend payout ratio ⁽¹⁾		28.8	%		30.9	%								28.3	%		30.8	%
Annualized yield⁽²⁾		2.2	%		2.7	%								2.2	%		2.7	%

*Comprehensive Income (Loss)*
Net income	$	376.0		$	349.0								$	772.4		$	570.2
Net unrealized gains (losses) on securities		(511.5	)		(371.7	)								(476.3	)		(648.1	)
Gains (losses) on derivatives		(11.4	)		16.4									(3.7	)		44.2
Foreign currency translation		13.0			38.8									16.2			45.1
Minimum pension liability adjustment		-			(3.5	)								-			(4.0	)
Funded status of employee benefit plans⁽⁴⁾		(0.5	)		-									(0.2	)		-
*Comprehensive Income*	$	(134.4	)	$	28.9								$	308.5		$	7.3

*Ratios:*
Debt to total capitalization ⁽³⁾		19.7	%		22.1	%								19.7	%		22.1	%
Debt to equity⁽³⁾		24.6	%		28.5	%								24.6	%		28.5	%


Ratings as of July 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

^[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.


	Three Months Ended													Six Months Ended
	June		Sept.		Dec.		March		June		%			June		June		%
	2006		2006		2006		2007		2007		Change			2006		2007		Change
Individual Markets
Individual Life Insurance
Sales by Product (millions)
Universal Life
Excluding MoneyGuard	$	97.5	$	119.9	$	177.6	$	166.2	$	145.0		48.7	%	$	180.9	$	311.1		72.0	%
MoneyGuard		7.5		8.3		7.8		7.4		9.9		32.0	%		15.2		17.3		13.8	%
Total		105.0		128.2		185.4		173.6		154.8		47.4	%		196.1		328.4		67.5	%
Variable universal life		15.7		13.0		22.1		20.6		17.3		10.2	%		32.1		37.8		17.8	%
Whole life		0.4		0.7		0.6		0.1		0.1		-75.0	%		1.6		0.2		-87.5	%
Term		11.3		10.7		10.0		9.3		7.8		-31.0	%		22.5		17.1		-24.0	%
*Total Sales by Product*	$	132.3	$	152.5	$	218.1	$	203.5	$	180.0		36.1	%	$	252.3	$	383.5		52.0	%

Individual Annuity Deposits
Fixed	$	0.644	$	0.818	$	0.855	$	0.661	$	0.791		22.8	%	$	1.205	$	1.452		20.5	%
Variable		1.867		1.658		2.061		2.000		2.295		22.9	%		3.533		4.295		21.6	%
Indexed annuities		0.228		0.244		0.245		0.160		0.191		-16.2	%		0.401		0.352		-12.2	%
*Total Individual Annuities*	$	2.739	$	2.720	$	3.161	$	2.821	$	3.277		19.6	%	$	5.138	$	6.098		18.7	%

Employer Markets
Defined Contribution
Fixed	$	0.242	$	0.268	$	0.183	$	0.299	$	0.233		-3.7	%	$	0.495	$	0.531		7.3	%
Variable		0.714		0.583		0.559		0.655		0.577		-19.2	%		1.383		1.232		-10.9	%
		0.955		0.851		0.742		0.953		0.809		-15.3	%		1.878		1.763		-6.1	%
Alliance Mutual Funds Deposits		0.204		0.235		0.357		0.533		0.464		127.5	%		0.522		0.997		91.0	%
*Total Annuity and Alliance Mutual Funds*	$	1.159	$	1.086	$	1.099	$	1.487	$	1.273		9.8	%	$	2.400	$	2.760		15.0	%

Executive Benefits
COLI/BOLI sales (millions)	$	17.2	$	16.3	$	32.5	$	20.4	$	13.6		-20.9	%	$	34.7	$	34.0		-2.0	%

Group Protection
Annualized Sales (millions)
Life	$	15.3	$	19.4	$	43.1	$	22.7	$	23.6		54.2	%	$	38.9	$	46.3		19.0	%
Disability		22.9		24.7		56.9		28.6		28.9		26.2	%		57.1		57.5		0.7	%
Dental		7.1		6.1		13.1		9.4		9.5		33.8	%		13.3		19.0		42.9	%

Investment Management
Sales and Inflows
Retail
Annuities	$	0.869	$	0.960	$	0.932	$	1.300	$	0.902		3.8	%	$	1.754	$	2.202		25.5	%
Mutual funds		1.370		1.151		1.768		1.753		1.896		38.4	%		2.699		3.649		35.2	%
Managed accounts & other		1.043		0.386		0.493		0.550		0.474		-54.6	%		2.849		1.025		-64.0	%
		3.282		2.497		3.192		3.603		3.272		-0.3	%		7.302		6.875		-5.8	%
Institutional		2.764		2.406		4.888		2.431		2.877		4.1	%		7.808		5.308		-32.0	%
*Total Sales and Inflows*	$	6.046	$	4.904	$	8.080	$	6.034	$	6.149		1.7	%	$	15.110	$	12.183		-19.4	%


Total Annuity & Alliance
Mutual Fund Deposits
Fixed Annuities
Individual	$	0.872	$	1.062	$	1.100	$	0.821	$	0.982		12.6	%	$	1.605	$	1.803		12.3	%
Employer Markets		0.242		0.268		0.183		0.299		0.233		-3.7	%		0.495		0.531		7.3	%
		1.114		1.330		1.283		1.120		1.215		9.1	%		2.100		2.334		11.1	%
Variable Annuities
Individual		1.867		1.658		2.061		2.000		2.295		22.9	%		3.533		4.295		21.6	%
Employer Markets		0.714		0.583		0.559		0.655		0.577		-19.2	%		1.383		1.232		-10.9	%
		2.581		2.241		2.619		2.655		2.872		11.3	%		4.916		5.527		12.4	%
Total Annuities		3.695		3.571		3.903		3.775		4.087		10.6	%		7.016		7.861		12.0	%
Alliance Mutual Funds		0.204		0.235		0.357		0.533		0.464		127.5	%		0.522		0.997		91.0	%
*Total Annuity and Alliance Mutual Funds*	$	3.898	$	3.806	$	4.259	$	4.308	$	4.550		16.7	%	$	7.538	$	8.858		17.5	%

⁽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.


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

Commissions	$	362.0		$	382.6		$	464.7		$	446.5		$	462.9			27.9	%	$	574.9		$	909.4			58.2	%

General and administrative expenses:
General and administrative expenses		374.1			400.6			434.4			392.2			434.5			16.1	%		661.8			826.7			24.9	%
Merger-related expenses		7.4			12.1			15.8			10.1			23.8			221.6	%		7.4			33.9		NM
Total general and administrative expenses
excluding Broker/Dealer		381.5			412.7			450.2			402.3			458.3			20.1	%		669.2			860.6			28.6	%

Restructuring charges		9.6			1.0			3.3			3.9			6.2			-35.4	%		9.9			10.0			1.0	%
Taxes, licenses and fees		47.3			50.3			48.0			66.1			52.5			11.0	%		80.8			118.6			46.8	%
Interest ⁽¹⁾		65.0			67.3			70.4			61.5			72.8			12.0	%		86.7			134.3			54.9	%
Total commissions and expenses incurred		865.4			914.0			1,036.6			980.2			1,052.7			21.6	%		1,421.5			2,032.9			43.0	%

Less: commissions and expenses capitalized		(391.6	)		(424.3	)		(517.9	)		(487.4	)		(504.9	)		-28.9	%		(636.1	)		(992.3	)		-56.0	%

Amortization:
DAC/VOBA Amortization ⁽³⁾		222.2			225.9			278.5			281.6			244.5			10.0	%		387.2			526.1			35.9	%
Amortization of intangibles		6.6			3.1			4.4			4.3			2.8			-57.6	%		8.6			7.1			-17.4	%
Total amortization		228.7			229.0			282.8			285.9			247.3			8.1	%		395.7			533.2			34.7	%

Broker/Dealer commissions and G&A		79.3			76.6			80.0			87.2			92.8			17.0	%		125.9			180.0			43.0	%

Total	$	781.9		$	795.3		$	881.5		$	865.9		$	887.9			13.6	%	$	1,307.0		$	1,753.8			34.2	%


Merger-related expenses:⁽²⁾
Severance and employee-related charges	$	12.8		$	8.4		$	6.2		$	3.0		$	6.6			-48.4	%	$	12.8		$	9.6			-25.0	%
Systems integration and related expenses		0.8			1.5			5.4			5.6			17.7		NM				0.8			23.3		NM
Other expenses		3.1			3.2			7.5			5.4			5.7			83.9	%		3.1			11.1			258.1	%
Total merger-related expenses	$	16.7		$	13.1		$	19.1		$	14.0		$	30.0			79.6	%	$	16.7		$	44.0			163.5	%

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⁾ In the second quarter of 2007, we recognized certain adjustments that reduced DAC amortization by $23 million.


	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Individual Life Insurance ⁽³⁾	$	901.4		$	895.3		$	958.4		$	971.4		$	957.5			6.2	%	$	1,402.0		$	1,928.8			37.6	%
Individual Annuities		552.6			596.5			637.3			605.1			675.3			22.2	%		927.4			1,280.5			38.1	%
Individual Markets		1,454.0			1,491.8			1,595.7			1,576.5			1,632.8			12.3	%		2,329.4			3,209.3			37.8	%
Defined Contribution		248.9			245.1			245.0			246.8			252.1			1.3	%		498.1			498.8			0.1	%
Executive Benefits		101.2			104.3			109.1			111.7			114.9			13.5	%		158.4			226.6			43.1	%
Group Protection		354.9			332.1			344.8			360.4			391.0			10.2	%		354.9			751.4			111.7	%
Employer Markets		704.9			681.5			698.9			718.9			758.0			7.5	%		1,011.3			1,476.9			46.0	%
Investment Management		134.7			140.4			148.9			150.2			151.0			12.1	%		274.3			301.1			9.8	%
Lincoln UK		81.4			72.3			84.8			90.7			92.5			13.6	%		150.9			183.3			21.5	%
Lincoln Financial Media		57.7			60.0			70.2			67.5			57.6			-0.2	%		57.7			125.1			116.8	%
Other Operations		67.6			51.4			45.6			40.0			45.3			-33.0	%		99.3			85.4			-14.0	%
*Total Operating Revenue*		2,500.3			2,497.4			2,644.1			2,643.8			2,737.2			9.5	%		3,922.8			5,381.1			37.2	%

Realized gains (losses) on investments and derivatives		(6.7	)		(5.8	)		12.8			26.4			(8.7	)		-29.9	%		(13.6	)		17.8			230.9	%
Net gain (loss) on reinsurance
derivative/trading account securities		1.8			(4.7	)		1.2			(0.2	)		4.0		NM				7.7			3.8			-50.6	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			7.8		NM				0.6			8.1		NM
*Total Revenue*	$	2,495.6		$	2,487.2		$	2,658.4		$	2,670.4		$	2,740.3			9.8	%	$	3,917.4		$	5,410.7			38.1	%

*Income from Operations ⁽¹⁾*
Individual Life Insurance	$	147.1		$	122.8		$	157.4		$	166.6		$	176.4			19.9	%	$	216.1		$	343.0			58.7	%
Individual Annuities		89.0			129.4			123.8			121.0			130.1			46.2	%		155.5			251.1			61.5	%
Individual Markets		236.1			252.2			281.1			287.6			306.5			29.8	%		371.6			594.2			59.9	%
Defined Contribution		54.3			52.5			44.6			49.7			47.3			-12.9	%		106.8			97.0			-9.2	%
Executive Benefits		16.2			12.8			12.7			14.4			13.9			-14.2	%		23.8			28.3			18.9	%
Group Protection		37.0			28.8			33.2			23.1			29.0			-21.6	%		37.0			52.1			40.8	%
Employer Markets		107.6			94.0			90.5			87.3			90.1			-16.3	%		167.6			177.4			5.8	%
Investment Management		12.0			13.4			14.4			16.2			11.3			-5.8	%		27.3			27.5			0.7	%
Lincoln UK		9.9			8.3			9.9			10.9			11.7			18.2	%		20.6			22.5			9.2	%
Lincoln Financial Media		11.9			14.6			17.5			12.4			13.6			14.3	%		11.9			26.0			118.5	%
Other Operations		(26.1	)		(11.5	)		(38.4	)		(35.2	)		(46.6	)		-78.5	%		(26.0	)		(81.8	)	NM
*Income from Operations ⁽¹⁾*		351.4			371.0			375.2			379.1			386.7			10.0	%		572.9			765.9			33.7	%

Realized gains (losses) on investments and derivatives		(3.8	)		(4.1	)		9.4			17.1			(4.9	)		-28.9	%		(8.0	)		12.3			253.8	%
Net gain (loss) on reinsurance
derivative/trading account securities		1.2			(3.1	)		0.1			-			2.1		NM				5.0			2.1			-58.0	%
Reserve development/ amortization of related deferred gain		0.2			0.2			0.2			0.2			(7.9	)	NM				0.4			(7.7	)	NM
Loss on early retirement of debt		-			-			(3.6	)		-			-		NM				-			-		NM
*Net Income*	$	349.0		$	364.1		$	381.3		$	396.5		$	376.0			7.7	%	$	570.2		$	772.4			35.5	%

*OTHER DATA*

	Three Months Ended															Six Months Ended
	June			Sept.			Dec.			March			June			June			June
	2006			2006			2006			2007			2007			2006			2007
*Shareholders' Equity*
Beg of period (including AOCI)	$	6,338.2		$	11,404.8		$	12,043.2		$	12,201.0		$	12,032.2		$	6,384.4		$	12,201.0
End of period (including AOCI)		11,404.8			12,043.2			12,201.0			12,032.2			11,835.7			11,404.8			11,835.7
End of period (excluding AOCI)		11,439.8			11,436.0			11,587.9			11,372.5			11,686.4			11,439.8			11,686.4
Average equity (excluding AOCI) ⁽²⁾		11,311.3			11,437.9			11,512.0			11,480.2			11,529.4			8,633.1			11,504.8

*Common Shares Outstanding*
Average for the period - diluted		282.6			282.4			280.4			279.5			274.4			230.5			276.9
End of period - diluted		285.0			281.3			280.2			274.0			274.5			285.0			274.5

*Per Share Data (Diluted)*
Net Income	$	1.23		$	1.29		$	1.36		$	1.42		$	1.37		$	2.47		$	2.79
Income from Operations ⁽¹⁾		1.24			1.31			1.34			1.36			1.41			2.49			2.76

*Shareholders' Equity Per Share*
Shareholders' Equity (including AOCI)	$	40.48		$	43.39		$	44.21		$	44.42		$	43.57		$	40.48		$	43.57
Shareholders' Equity (excluding AOCI)		40.60			41.20			41.99			41.98			43.02			40.60			43.02
Dividends declared (Common Stock)		0.380			0.380			0.395			0.395			0.395			0.760			0.790

*Return on Equity*
Net Income/Average Equity		12.3	%		12.7	%		13.2	%		13.8	%		13.0	%		13.2	%		13.4	%
Inc from Operations/Average Equity		12.4	%		13.0	%		13.0	%		13.2	%		13.4	%		13.3	%		13.3	%

*Market Value of Common Stock*
Highest price	$	60.52		$	63.47		$	66.72		$	71.18		$	74.72		$	60.52		$	74.72
Lowest price		54.30			53.94			61.74			64.29			66.90			52.00			64.29
*Closing price*	$	56.44		$	62.08		$	66.40		$	67.79		$	70.95		$	56.44		$	70.95

⁽¹⁾ Income from operations includes after-tax restructuring charges of $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, $2.5 million, or 1 cent per share, for the first quarter of 2007, and $4.0 million, or 1 cent per share, for the second quarter of 2007. Results for the first six months of 2007 and 2006 include after-tax restructuring charges of $6.5 million, or 2 cents per share, and $6.4 million, or 2 cents per share, respectively.
⁽²⁾Average equity was adjusted to reflect the merger with Jefferson-Pilot effective April 3, 2006.
⁽³⁾In the second quarter of 2007, we recognized certain adjustments that reduced operating revenue by $41 million. There were reductions to expenses that offset most of this reduction in revenue.


	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Revenue*
Premiums	$	454.3		$	425.7		$	448.1		$	458.9		$	488.9			7.6	%	$	532.7		$	947.8			77.9	%
Surrender charges		27.3			26.6			29.9			26.9			28.1			2.9	%		46.0			55.0			19.6	%
Mortality assessments ⁽¹⁾		294.7			294.9			295.9			311.2			299.6			1.7	%		440.9			610.8			38.5	%
Expense assessments ⁽¹⁾		370.1			357.8			432.3			441.0			429.9			16.2	%		679.6			871.0			28.2	%
Investment advisory fees		81.2			82.9			86.1			90.3			92.7			14.2	%		159.0			183.0			15.1	%
Communications revenue		57.5			59.8			69.6			67.2			57.4			-0.2	%		57.5			124.7			116.9	%
Net investment income		1,068.2			1,107.9			1,126.3			1,089.5			1,169.8			9.5	%		1,746.6			2,259.3			29.4	%
Other revenue and fees		128.2			123.1			137.2			140.1			152.2			18.7	%		223.0			292.3			31.1	%
Amortization of deferred gain		18.8			18.8			18.8			18.6			18.6			-1.1	%		37.5			37.2			-0.8	%
Amortization of deferred gain-reserve development		0.3			0.3			0.3			0.3			7.8		NM				0.6			8.1		NM
Realized gains (losses)		(5.0	)		(10.5	)		13.9			26.2			(4.7	)		6.0	%		(6.0	)		21.6		NM
*Total Revenue*		2,495.6			2,487.2			2,658.4			2,670.4			2,740.3			9.8	%		3,917.4			5,410.7			38.1	%

*Benefits and Expenses*
Insurance benefits ⁽¹⁾		589.3			566.2			562.2			588.8			655.8			11.3	%		789.7			1,244.7			57.6	%
Interest credited to contractholder funds		589.3			634.4			646.5			604.5			631.0			7.1	%		970.6			1,235.5			27.3	%
Communications expenses		29.8			31.4			36.9			41.2			31.1			4.4	%		29.8			72.3			142.6	%
Operating and acquisition expenses		669.5			677.6			763.1			738.4			762.6			13.9	%		1,139.4			1,501.0			31.7	%
Taxes, licenses and fees		47.3			50.3			48.0			66.1			52.5			11.0	%		80.8			118.6			46.8	%
Interest and debt expense		65.0			67.3			70.4			61.5			72.8			12.0	%		86.7			134.3			54.9	%
*Total Benefits and Expenses*		1,990.3			2,027.3			2,127.2			2,100.5			2,205.9			10.8	%		3,097.1			4,306.3			39.0	%


Income Before Federal Income Tax		505.3			459.9			531.3			569.9			534.5			5.8	%		820.3			1,104.4			34.6	%

Federal income taxes		156.3			95.8			149.9			173.4			158.5			1.4	%		250.2			332.0			32.7	%
*Net Income*	$	349.0		$	364.1		$	381.3		$	396.5		$	376.0			7.7	%	$	570.2		$	772.4			35.5	%


Roll Forward of Deferred Acquisition Costs	Three Months Ended																		Six Months Ended
& Value of Business Acquired	June			Sept.			Dec.			March			June						June			June
	2006			2006			2006			2007			2007						2006			2007
Balance at beginning of period	$	5,433.8		$	8,328.4		$	8,171.6		$	8,420.4		$	8,534.7					$	5,163.3		$	8,420.4
Cumulative effect of adoption of SOP 05-1		-			-			-			(66.1	)		-						-			(66.1	)
Deferral		391.6			424.3			517.9			487.4			504.9						636.1			992.3
Amortization ⁽¹⁾		(222.2	)		(225.9	)		(278.5	)		(281.6	)		(244.5	)					(387.2	)		(526.1	)
Included in Total Benefits and Expenses		169.4			198.4			239.5			205.8			260.4						249.0			466.2
Adjustment related to realized gains
on available-for-sale securities		(18.9	)		(8.9	)		(8.9	)		(17.9	)		(1.6	)					(29.8	)		(19.6	)
Adjustment related to unrealized (gains)
losses on available-for-sale securities		221.5			(359.8	)		(17.4	)		(25.5	)		290.8						415.7			265.3
Foreign currency translation adjustment		48.3			9.7			35.7			4.1			16.3						56.1			20.4
Business acquired		2,474.2			3.8			-			14.0			-						2,474.2			14.0
Balance at end of period	$	8,328.4		$	8,171.6		$	8,420.4		$	8,534.7		$	9,100.6					$	8,328.4		$	9,100.6

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	805.8		$	861.0		$	923.9		$	976.9		$	1,017.9					$	795.7		$	976.9
Cumulative effect of adoption of SOP 05-1		-			-			-			(2.0	)		-						-			(2.0	)
Deferral		69.1			71.0			77.9			77.2			125.8						100.2			203.0
Amortization		(37.4	)		(12.7	)		(42.8	)		(36.1	)		(46.0	)					(62.1	)		(82.1	)
Included in Expense Assessments		31.8			58.3			35.1			41.1			79.8						38.1			120.9
Adjustment related to realized gains
on available-for-sale securities		-			(0.1	)		-			-			(0.1	)					-			(0.1	)
Foreign currency translation adjustment		23.6			4.7			17.9			2.0			8.1						27.4			10.2
Balance at end of period	$	861.0		$	923.9		$	976.9		$	1,017.9		$	1,105.8					$	861.0		$	1,105.8

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	139.9		$	154.6		$	173.4		$	193.8		$	206.4					$	129.4		$	193.8
Cumulative effect of adoption of SOP 05-1		-			-			-			(2.8	)		-						-			(2.8	)
Deferral		19.9			22.2			28.4			23.7			27.4						35.6			51.1
Amortization		(5.2	)		(3.3	)		(7.9	)		(8.2	)		(8.7	)					(10.4	)		(17.0	)
Included in Income from Operations		14.7			18.9			20.5			15.5			18.7						25.2			34.1
Adjustment related to realized gains
on available-for-sale securities		-			(0.1	)		-			(0.1	)		-						-			(0.1	)
Balance at end of period	$	154.6		$	173.4		$	193.8		$	206.4		$	225.0					$	154.6		$	225.0

⁽¹⁾In the second quarter of 2007, we recognized certain admustments that reduced expense assessments by $26 million, reduced mortality assessments by $15 million, increased insurance benefits by $3 million and reduced DAC amortization by $23 million.

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

87.8

16.6

0.1

361.3

24.3

(1.2

)

488.9

Surrender charges

15.7

10.1

2.2

28.1

Mortality assessments

282.4

8.2

8.9

0.3

(0.3

)

299.6

Expense assessments

69.9

249.9

63.0

5.9

39.9

1.8

(0.5

)

429.9

Investment advisory fees

112.3

0.0

(19.6

)

92.7

Communications revenue

57.4

Net investment income

493.3

302.2

182.3

99.3

28.5

19.4

0.2

45.0

(0.5

)

1,169.8

Amortization of deferred gain

18.6

Other revenue and fees

8.3

96.4

4.6

1.3

1.2

38.7

15.5

(13.9

)

152.2

Total Operating Revenue

957.5

675.3

252.1

114.9

391.0

151.0

92.5

57.6

80.1

(34.8

)

2,737.2

Operating Expenses

Insurance benefits

263.0

31.8

33.3

265.7

34.4

8.2

(0.5

)

635.8

Interest credited to contractholder funds

254.0

189.9

104.6

50.3

37.9

(5.7

)

631.0

Communications expenses

31.1

Operating and acquisition expenses

144.5

272.5

76.3

10.2

71.1

129.1

40.2

3.7

43.4

(28.1

)

762.6

Taxes, licenses and fees

26.6

5.7

4.4

1.3

9.5

4.0

1.4

(0.5

)

0.0

52.5

Interest

0.1

0.3

72.8

(0.5

)

72.8

Total Operating Expenses

688.0

500.0

185.3

95.0

346.3

133.1

74.6

36.6

161.7

(34.8

)

2,185.9

Income (Loss) from Operations before Federal income taxes

269.4

175.3

66.8

19.9

44.7

17.9

18.0

21.1

(81.6

)

551.4

Federal income taxes

93.0

45.2

19.5

6.0

15.7

6.6

6.3

7.4

(35.1

)

164.6

Income from Operations

176.4

130.1

47.3

13.9

29.0

11.3

11.7

13.6

(46.6

)

386.7

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

89.9

15.3

328.9

19.9

0.3

454.3

Surrender charges

15.5

9.6

2.1

27.3

Mortality assessments

277.3

8.5

8.9

294.7

Expense assessments

93.0

182.7

54.7

4.9

34.7

370.1

Investment advisory fees

104.6

(23.5

)

81.2

Communications revenue

57.5

Net investment income

415.9

263.2

187.5

86.5

25.1

17.8

0.2

72.2

(0.2

)

1,068.2

Amortization of deferred gain

18.8

Other revenue and fees

9.7

81.8

4.6

1.3

0.8

30.0

5.2

(5.3

)

128.2

Total Operating Revenue

901.4

552.6

248.9

101.2

354.9

134.7

81.4

57.7

96.5

(28.9

)

2,500.3

Operating Expenses

Insurance benefits

256.0

45.3

0.0

30.4

226.0

27.5

4.1

589.3

Interest credited to contractholder funds

241.5

168.8

102.4

40.2

36.5

589.3

Communications expenses

29.8

Operating and acquisition expenses

155.4

212.0

66.7

5.9

64.0

114.0

38.9

7.7

33.9

(28.9

)

669.5

Taxes, licenses and fees

27.5

4.6

2.8

1.3

8.0

2.4

0.6

47.3

Interest

0.2

0.5

64.3

65.0

Total Operating Expenses

680.4

431.0

171.9

77.7

297.9

116.4

66.3

38.1

139.5

(28.9

)

1,990.3

Income (Loss) from Operations before Federal income taxes

221.0

121.5

77.0

23.5

56.9

18.3

15.1

19.6

(43.1

)

509.9

Federal income taxes

73.9

32.5

22.7

7.3

19.9

6.3

5.2

7.7

(17.0

)

158.6

Income from Operations

147.1

89.0

54.3

16.2

37.0

12.0

9.9

11.9

(26.1

)

351.4

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

175.6

29.4

0.7

692.7

48.5

0.9

947.8

Surrender charges

30.9

19.8

4.3

0.0

55.0

Mortality assessments

574.7

17.1

18.9

0.3

(0.3

)

610.8

Expense assessments

181.8

475.9

122.7

12.1

77.1

1.8

(0.5

)

871.0

Investment advisory fees

227.1

0.0

(44.2

)

183.0

Communications revenue

124.7

Net investment income

947.3

568.5

362.6

194.1

56.4

38.7

0.4

92.4

(1.2

)

2,259.3

Amortization of deferred gain

37.2

Other revenue and fees

18.5

186.8

9.2

2.6

2.3

74.0

0.1

23.0

(24.3

)

292.3

Total Operating Revenue

1,928.8

1,280.5

498.8

226.6

751.4

301.1

183.3

125.1

155.7

(70.4

)

5,381.1

Operating Expenses

Insurance benefits

509.0

53.2

66.4

512.3

70.4

13.9

(0.5

)

1,224.7

Interest credited to contractholder funds

505.7

356.4

209.0

95.1

74.9

(5.7

)

1,235.5

Communications expenses

72.3

Operating and acquisition expenses

332.8

520.0

142.8

21.4

139.7

249.6

78.1

9.1

70.6

(63.0

)

1,501.0

Taxes, licenses and fees

59.5

14.6

9.5

2.7

19.2

8.1

2.7

2.2

118.6

Interest

0.4

0.7

134.3

(1.2

)

134.3

Total Operating Expenses

1,406.9

944.6

361.3

185.7

671.2

257.7

148.6

84.9

295.8

(70.4

)

4,286.3

Income (Loss) from Operations before Federal income taxes

521.9

335.8

137.6

41.0

80.2

43.4

34.7

40.3

(140.1

)

1,094.7

Federal income taxes

178.9

84.7

40.6

12.7

28.1

15.9

12.1

14.2

(58.3

)

328.9

Income from Operations

343.0

251.1

97.0

28.3

52.1

27.5

22.5

26.0

(81.8

)

765.9

Individual Markets

Employer Markets

Life

Annuities

Defined

Contribution

Executive

Benefits

Group

Protection

Investment

Management

Lincoln UK

Lincoln

Financial

Media

Other

Operations

Consolidating

Adjustments

Consolidated

Operating Revenue

Premiums

141.0

24.6

1.1

328.9

36.5

0.6

532.7

Surrender charges

25.8

15.8

4.4

46.0

Mortality assessments

413.0

11.3

16.7

440.9

Expense assessments

147.4

350.8

110.3

8.2

62.7

0.3

679.6

Investment advisory fees

207.5

(48.5

)

159.0

Communications revenue

57.5

Net investment income

655.4

411.1

373.2

135.2

25.1

34.9

0.2

112.0

(0.3

)

1,746.6

Amortization of deferred gain

37.5

Other revenue and fees

19.4

125.1

10.2

2.7

0.8

66.7

0.1

7.2

(9.3

)

223.0

Total Operating Revenue

1,402.0

927.4

498.1

158.4

354.9

274.3

150.9

57.7

157.5

(58.1

)

3,922.8

Operating Expenses

Insurance benefits

376.3

65.7

63.2

226.0

52.9

5.8

789.7

Interest credited to contractholder funds

383.7

263.9

203.1

49.4

70.4

970.6

Communications expenses

29.8

Operating and acquisition expenses

271.9

379.2

137.0

9.4

64.0

225.3

66.5

7.7

36.9

(58.2

)

1,139.4

Taxes, licenses and fees

43.8

10.1

5.8

2.4

8.0

7.2

3.6

80.8

Interest

0.2

0.5

85.9

86.7

Total Operating Expenses

1,075.7

719.1

345.9

124.3

297.9

232.5

119.3

38.1

202.5

(58.2

)

3,097.1

Income (Loss) from Operations before Federal income taxes

326.3

208.3

152.2

34.0

56.9

41.8

31.6

19.6

(45.1

)

825.7

Federal income taxes

110.2

52.8

45.4

10.3

19.9

14.5

11.0

7.7

(19.1

)

252.7

Income from Operations

216.1

155.5

106.8

23.8

37.0

27.3

20.6

11.9

(26.0

)

572.9


	June			Sept.			Dec.			March			June
	2006			2006			2006			2007			2007
*ASSETS*
*Investments*
Corporate bonds	$	43,881.6		$	45,345.3		$	45,489.4		$	45,484.0		$	44,023.4
U.S. government bonds		287.6			291.6			263.4			244.3			248.1
Foreign government bonds		1,188.0			1,144.4			1,141.6			1,077.1			975.0
Asset and mortgage backed securities		8,370.3			8,765.1			8,691.3			9,186.2			9,946.2
State and municipal bonds		166.5			160.7			159.4			155.5			158.7
Preferred stocks - redeemable		130.1			117.8			108.3			108.4			95.5
Common stocks		458.8			506.3			525.5			503.8			487.9
Preferred stocks-equity		119.7			155.7			174.7			210.1			198.9
Total AFS Securities		54,602.6			56,486.9			56,553.7			56,969.5			56,133.8
Trading securities		3,109.0			3,172.5			3,036.3			2,909.7			2,818.3
Mortgage loans		7,741.2			7,580.5			7,384.3			7,416.0			7,310.8
Real estate		428.6			424.0			421.3			406.2			387.6
Policy loans		2,716.4			2,724.9			2,759.7			2,766.8			2,787.0
Other long-term investments		1,116.6			1,218.7			1,332.4			1,381.2			1,430.2
*Total Investments*		69,714.4			71,607.5			71,487.6			71,849.3			70,867.7

Cash and invested cash		1,499.8			1,108.3			1,620.6			900.0			988.6
Premiums and fees receivable		343.9			345.6			356.2			374.9			432.3
Accrued investment income		879.0			928.2			866.2			919.2			861.0
Amount recoverable from reinsurers		7,967.2			8,007.3			7,939.1			8,132.1			8,179.1
Deferred acquisition costs and VOBA		8,328.4			8,171.6			8,420.4			8,534.7			9,100.6
Goodwill		4,502.6			4,498.0			4,499.5			4,520.7			4,521.4
Other		3,049.6			2,703.1			2,770.4			2,948.1			3,201.8
Assets held in separate accounts		71,095.2			74,357.1			80,533.7			83,147.5			89,497.2
*Total Assets*	$	167,380.0		$	171,726.6		$	178,493.7		$	181,326.4		$	187,649.6

*LIABILITIES and SHAREHOLDERS' EQUITY*
*Liabilities*
Insurance and Investment Contract Liabilities:
Reserves	$	13,512.1		$	13,513.4		$	13,622.1		$	13,864.9		$	13,860.8
Unpaid claims		1,211.7			1,206.9			1,149.1			1,149.5			1,171.2
Premium deposit funds		21,198.4			20,708.6			20,541.4			20,115.8			20,201.6
Policyholders' funds		37,430.3			37,808.3			38,275.1			38,612.7			38,934.5
Total Insurance and Investment Contract Liabilities		73,352.5			73,237.2			73,587.7			73,743.0			74,168.1
		-			-			-			-			-
Short-term debt		561.0			559.2			657.6			492.8			230.1
Long-term debt - senior notes		2,329.1			2,330.4			2,231.0			2,483.4			2,382.4
Long-term debt - subordinated
Capital securities		1,071.8			1,071.9			1,072.0			1,570.7			1,570.8
Junior subordinated debentures issued to
affiliated trusts		330.5			332.5			154.6			154.6			154.6
Embedded derivative - modco		126.7			232.5			228.7			229.8			157.5
Deferred gain on indemnity reinsurance		797.8			778.7			759.6			740.7			734.3
Federal income taxes		563.8			911.1			977.9			1,147.6			924.6
Other liabilities		5,746.7			5,872.8			6,089.9			5,584.0			5,994.3
Liabilities related to separate accounts		71,095.2			74,357.1			80,533.7			83,147.5			89,497.2
*Total Liabilities*		155,975.2			159,683.5			166,292.7			169,294.2			175,814.0

Preferred Stock		0.5			0.5			0.5			0.5			0.5
Capital stock		7,425.7			7,448.7			7,450.7			7,318.5			7,362.1
Retained earnings (excl. cumulative effect adjustments)		4,013.7			3,986.7			4,136.7			4,109.8			4,380.1
Cumulative effect of adoption of FIN-48		-			-			-			(15.4	)		(15.4	)
Cumulative effect of adoption of SOP 05-1		-			-			-			(40.9	)		(40.9	)
Unrealized gains on investments		(151.5	)		478.0			492.8			528.1			16.6
Gains - derivatives		51.5			55.9			39.2			46.8			35.5
Foreign currency		128.5			136.5			165.1			168.4			181.4
Minimum pension liability		(63.6	)		(63.2	)		-			-			-
Funded status of employee benefit plans		-			-			(84.0	)		(83.6	)		(84.2	)
*Total Shareholders' Equity*		11,404.8			12,043.2			12,201.0			12,032.2			11,835.7

*Total Liabilities and Shareholders' Equity*	$	167,380.0		$	171,726.6		$	178,493.7		$	181,328.0		$	187,649.6

*Shareholders' Equity Per Share*	$	40.48		$	43.39		$	44.21		$	44.42		$	43.57

Book Value, Excluding AOCI	$	40.60		$	41.20		$	41.99		$	41.98		$	43.02
Common shares outstanding -assuming conv of
preferreds (in millions)		281.8			277.6			276.0			270.9			271.6

	Individual				Employer
	Markets				Markets
As of June 30, 2007	Annuities		Life		Defined Contribution		Executive Benefits		Group Protection		Investment Management		Lincoln UK		Lincoln Financial Media		Other Operations⁽¹⁾			Consolidated

*Assets*
Allocated Investments	$	17,690.9	$	28,519.7	$	11,461.9	$	6,349.9	$	1,892.5	$	-	$	1,177.4	$	-	$	3,775.5		$	70,867.7
DAC and VOBA		2,236.8		5,126.4		541.9		276.2		111.4		-		806.5		-		1.3			9,100.6
Goodwill		1,045.6		2,201.0		20.2		-		274.3		262.0		16.7		701.7		-			4,521.4
DSI and other intangibles		224.7		95.0		3.3		-		-		7.1		-		660.9		-			991.0
Amounts recoverable from reinsurers		788.7		1,821.4		-		3.6		29.5		-		73.8		-		5,462.1			8,179.1
Assets held in separate accounts		55,022.4		4,593.4		18,448.4		1,817.1		-		-		9,167.9		-		448.0			89,497.2

*Liabilities and Capital*
Insurance and Investment Contract Liabilities:
Insurance policy & claim reserves		367.8		5,748.3		-		1,758.7		1,232.1		-		1,147.8		-		4,777.3			15,032.1
Contractholder funds		17,831.9		24,079.3		10,934.5		4,340.1		14.7		-		428.3		-		1,507.3			59,136.1
Total Insurance and Inv Contract Liabilities		18,199.7		29,827.6		10,934.5		6,098.8		1,246.8		-		1,576.0		-		6,284.6			74,168.1

Allocated capital ⁽²⁾		3,530.2		7,810.4		896.1		507.6		927.8		305.5		380.9		1,166.5		(3,838.6	)		11,686.4



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
DSI and 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 ⁽³⁾		48,014.7		4,256.0		17,459.2		1,617.7		-		-		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⁾ Individual Markets-Life has been decreased by $784.3 and Employer Markets-Executive Benefits has been increased by $784.3 to correct previously reported values.

6/30/2007																			PAGE 12
*Individual Markets - Individual Life Insurance*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	89.9		$	87.0		$	93.5		$	87.7		$	87.8			-2.3	%	$	141.0		$	175.6			24.5	%
Surrender charges		15.5			18.3			16.1			15.2			15.7			1.3	%		25.8			30.9			19.8	%
Mortality assessments ⁽¹⁾		277.3			278.9			278.4			292.3			282.4			1.8	%		413.0			574.7			39.2	%
Expense assessments ⁽¹⁾		93.0			86.1			116.4			111.9			69.9			-24.8	%		147.4			181.8			23.3	%
Net investment income		415.9			414.4			441.1			454.0			493.3			18.6	%		655.4			947.3			44.5	%
Other revenue and fees		9.7			10.6			13.0			10.2			8.3			-14.4	%		19.4			18.5			-4.6	%
*Total Operating Revenue*		901.4			895.3			958.4			971.4			957.5			6.2	%		1,402.0			1,928.8			37.6	%

*Operating Expenses*
Insurance benefits ⁽¹⁾		256.0			261.1			249.1			246.0			263.0			2.7	%		376.3			509.0			35.3	%
Interest credited to contractholder funds		241.5			247.1			251.3			251.7			254.0			5.2	%		383.7			505.7			31.8	%
Operating and acquisition expenses		182.9			207.6			219.0			221.2			171.0			-6.5	%		315.7			392.3			24.3	%
*Total Operating Expenses*		680.4			715.7			719.4			718.9			688.0			1.1	%		1,075.7			1,406.9			30.8	%

Income from operations before Federal income taxes		221.0			179.6			239.1			252.5			269.4			21.9	%		326.3			521.9			59.9	%

Federal income taxes		73.9			56.8			81.7			85.9			93.0			25.8	%		110.2			178.9			62.3	%

*Income from Operations*	$	147.1		$	122.8		$	157.4		$	166.6		$	176.4			19.9	%	$	216.1		$	343.0			58.7	%

*Effective tax rate*		33.4	%		31.6	%		34.2	%		34.0	%		34.5	%					33.8	%		34.3	%

*Average equity*	$	7,051.8		$	7,223.9		$	7,292.7		$	7,557.8		$	7,790.5					$	5,158.9		$	7,674.1
*Return on average equity*		8.3	%		6.8	%		8.6	%		8.8	%		9.1	%					8.4	%		8.9	%


Operating and Acquisition Expenses
Commissions	$	151.2		$	167.1		$	226.5		$	227.1		$	211.7			40.0	%	$	218.0		$	438.8			101.3	%
General and administrative expenses		97.2			122.5			116.3			111.0			115.6			18.9	%		163.5			226.6			38.6	%
Taxes, licenses and fees		27.5			28.3			27.0			32.9			26.6			-3.4	%		43.8			59.5			35.8	%
Total commissions and expenses incurred		275.9			317.9			369.8			371.1			353.8			28.2	%		425.3			724.9			70.4	%
Less: commissions and expenses capitalized		(199.8	)		(226.6	)		(291.3	)		(288.9	)		(272.4	)		-36.3	%		(289.9	)		(561.3	)		-93.6	%
Amortization of DAC and VOBA		106.7			116.3			140.5			139.1			89.6			-16.1	%		180.3			228.7			26.8	%
Net Operating and Acquisition Expenses	$	182.9		$	207.6		$	219.0		$	221.2		$	171.0			-6.5	%	$	315.7		$	392.3			24.3	%

General and administrative expenses -
basis points on account values - Annualized		153			191			178			166			170			17			165			168			3




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	2,643.8		$	4,592.2		$	4,524.7		$	4,659.4		$	4,795.8					$	2,543.9		$	4,659.4
Deferral		199.8			226.6			291.3			288.9			272.4						289.9			561.3
Amortization ⁽¹⁾		(106.7	)		(116.3	)		(140.5	)		(139.1	)		(89.6	)					(180.3	)		(228.7	)
Included in Total Operating Expenses		93.0			110.3			150.8			149.8			182.8						109.6			332.6
Adjustment related to realized gains
on available-for-sale securities		(7.9	)		(3.8	)		(6.7	)		(12.5	)		(2.4	)					(11.3	)		(14.9	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		96.7			(174.0	)		(9.5	)		(0.9	)		150.2						183.4			149.3
Business acquired		1,766.6			-			-			-			-						1,766.6			-
Balance at end of period	$	4,592.2		$	4,524.7		$	4,659.4		$	4,795.8		$	5,126.4					$	4,592.2		$	5,126.4

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	344.3		$	375.3		$	415.9		$	449.5		$	490.6					$	342.6		$	449.5
Deferral		57.8			58.9			65.2			65.5			112.4						77.5			177.9
Amortization		(26.8	)		(18.3	)		(31.6	)		(24.4	)		(34.0	)					(44.8	)		(58.4	)
Included in Expense Assessments		31.0			40.6			33.6			41.0			78.4						32.7			119.5
Balance at end of period	$	375.3		$	415.9		$	449.5		$	490.6		$	569.0					$	375.3		$	569.0

6/30/2007														PAGE 13
*Individual Markets- Individual Life Insurance*
*Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended													Six Months Ended
	June		Sept.		Dec.		March		June		%			June		June		%
	2006		2006		2006		2007		2007		Change			2006		2007		Change
*Sales by Product(Millions)⁽¹⁾*
Universal Life
Excluding MoneyGuard	$	97.5	$	119.9	$	177.6	$	166.2	$	145.0		48.7	%	$	138.7	$	311.1		124.3	%
MoneyGuard		7.5		8.3		7.8		7.4		9.9		32.0	%		15.2		17.3		13.8	%
Total		105.0		128.2		185.4		173.6		154.8		47.4	%		154.0		328.4		113.2	%
Variable universal life		15.7		13.0		22.1		20.6		17.3		10.2	%		25.7		37.8		47.1	%
Whole life		0.4		0.7		0.6		0.1		0.1		-75.0	%		1.1		0.2		-81.8	%
Term		11.3		10.7		10.0		9.3		7.8		-31.0	%		19.5		17.1		-12.3	%
Total	$	132.3	$	152.5	$	218.1	$	203.5	$	180.0		36.1	%	$	200.3	$	383.5		91.5	%


*First-Year Paid Premiums (Millions)*
Universal Life
Excluding MoneyGuard	$	261.2	$	269.0	$	351.0	$	367.9	$	315.7		20.9	%	$	369.4	$	683.6		85.1	%
MoneyGuard		50.0		54.8		52.3		49.2		65.9		31.8	%		101.5		115.0		13.3	%
Total		311.2		323.9		403.2		417.1		381.6		22.6	%		470.9		798.7		69.6	%
Variable universal life		40.5		34.4		53.4		52.5		47.8		18.0	%		67.6		100.2		48.2	%
Whole life		9.5		12.0		16.5		8.4		10.1		6.3	%		17.8		18.5		3.9	%
Term		11.5		10.4		9.6		9.1		8.2		-28.7	%		20.1		17.2		-14.4	%
Total	$	372.7	$	380.6	$	482.7	$	487.0	$	447.7		20.1	%	$	576.4	$	934.6		62.1	%


*Life Insurance In-Force (Billions)*
Universal life & other	$	260.945	$	263.485	$	267.228	$	272.921	$	276.040		5.8	%	$	260.945	$	276.040		5.8	%
Term insurance		229.082		232.214		234.148		235.491		236.155		3.1	%		229.082		236.155		3.1	%
*Total Life Segment In-Force*	$	490.027	$	495.699	$	501.376	$	508.411	$	512.195		4.5	%	$	490.027	$	512.195		4.5	%

⁽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.

6/30/2007																						PAGE 14
*Individual Markets - Individual Life Insurance*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
Interest Sensitive Life-Balance Beginning-of-Period	$	11.913		$	21.285		$	21.516		$	21.890		$	22.228			86.6	%	$	11.809		$	21.890			85.4	%
Business acquired		9.150			-			-			-			-			-100.0	%		9.150			-			-100.0	%
Deposits		0.799			0.717			0.948			0.882			0.864			8.1	%		1.201			1.746			45.4	%
Withdrawals & deaths		(0.317	)		(0.275	)		(0.301	)		(0.264	)		(0.311	)		1.9	%		(0.499	)		(0.575	)		-15.2	%
Net flows		0.482			0.442			0.647			0.618			0.553			14.7	%		0.701			1.171			67.0	%
Policyholder assessments⁽⁶⁾		(0.492	)		(0.449	)		(0.516	)		(0.523	)		(0.507	)		-3.0	%		(0.740	)		(1.030	)		-39.2	%
Interest credited		0.232			0.239			0.242			0.243			0.243			4.7	%		0.365			0.486			33.2	%
*Interest Sensitive Life-Balance End-of-Period ⁽¹⁾*	$	21.285		$	21.516		$	21.890		$	22.228		$	22.517			5.8	%	$	21.285		$	22.517			5.8	%

Variable Universal Life-Balance Beginning of Period	$	2.355		$	4.194		$	4.305		$	4.600		$	4.696			99.4	%	$	2.242		$	4.600			105.2	%
Business acquired		1.918			-			-			-			-			-100.0	%		1.918			-			-100.0	%
Deposits		0.224			0.036			0.153			0.157			0.142			-36.6	%		0.311			0.299			-3.9	%
Withdrawals & deaths		(0.158	)		0.013			(0.073	)		(0.077	)		(0.109	)	NM				(0.207	)		(0.186	)		10.1	%
Net flows		0.066			0.049			0.080			0.080			0.033			-50.0	%		0.103			0.113			9.7	%
Policyholder assessments		(0.077	)		(0.076	)		(0.079	)		(0.079	)		(0.080	)		-3.9	%		(0.121	)		(0.159	)		-31.4	%
Investment income and change in market value		(0.068	)		0.137			0.294			0.095			0.299		NM				0.051			0.394		NM
*Variable Universal Life -Balance End-of-Period*	$	4.194		$	4.305		$	4.600		$	4.696		$	4.948			18.0	%	$	4.194		$	4.948			18.0	%

*Total Segment- Life Insurance Account Value Roll Forward*
Balance Beginning-of-Period	$	14.268		$	25.479		$	25.821		$	26.490		$	26.924			88.7	%	$	14.051		$	26.490			88.5	%
Business acquired		11.068			-			-			-			-			-100.0	%		11.068			-			-100.0	%
Deposits		1.023			0.753			1.101			1.039			1.005			-1.8	%		1.511			2.044			35.3	%
Withdrawals & deaths		(0.476	)		(0.262	)		(0.374	)		(0.341	)		(0.420	)		11.8	%		(0.706	)		(0.761	)		-7.8	%
Net flows		0.548			0.491			0.727			0.698			0.586			6.9	%		0.805			1.284			59.5	%
Policyholder assessments ⁽⁶⁾		(0.570	)		(0.524	)		(0.595	)		(0.602	)		(0.586	)		-2.8	%		(0.861	)		(1.188	)		-38.0	%
Investment income and change in market value		0.164			0.377			0.536			0.338			0.542			230.5	%		0.417			0.880			111.0	%
*Total Segment -Balance* *End-of-Period*	$	25.479		$	25.821		$	26.490		$	26.924		$	27.465			7.8	%	$	25.479		$	27.465			7.8	%

Life Product Spread Information ⁽²⁾
																Change									Change
*Interest Sensitive Products*																(Basis Points)									(Basis Points)
Net investment income ^{(3) (4) (5)}		6.22	%		6.08	%		6.44	%		6.48	%		6.99	%		77			6.34	%		6.74	%		40
Interest credited to policyholders		4.46	%		4.52	%		4.52	%		4.46	%		4.45	%		(1	)		4.47	%		4.45	%		(2	)
Spread ⁽³⁾⁽⁴⁾		1.76	%		1.57	%		1.92	%		2.02	%		2.54	%		78			1.87	%		2.28	%		41

*Traditional Products*
Net investment income ⁽³⁾		6.59	%		6.60	%		6.51	%		6.41	%		6.48	%		(11	)		5.34	%		6.45	%		111

⁽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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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 June 30, 2007, interest sensitive products represented approximately 82% 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 22 bps in the 2nd quarter of 2007, 21 bps in the 1st quarter of 2007, 12 bps in the 4th quarter of 2006, 20 bps in the 3rd quarter of 2006 and 13 bps in the 2nd quarter of 2006. There was an impact on traditional products of 14 bps in the 2nd quarter of 2007, 2 bps in the 1st quarter of 2007, 2 bps in the 4th quarter of 2006, 15 bps in the 3rd quarter of 2006 and 14 bps in the 2nd quarter of 2006.
⁽⁴⁾ The net investment income and spread above include earnings from alternative investments, such as limited partnerships. The impact on investment income yields from these investments was 70 bps in the 2nd quarter of 2007, 14 bps in the 1st quarter of 2007, 24 bps in the 4th quarter of 2006, -22 bps in the 3rd quarter of 2006 and 2 bps in the 2nd quarter of 2006.
⁽⁵⁾The net investment income and spread above is partially offset by amortization associated with prepayment fee income. The impact of this offset was 8 bps in the 2nd quarter of 2007.
⁽⁶⁾Interest sensitive policyholder assessments in the second quarter of 2007 includes +.017 related to certain adjustments.

6/30/2007																									PAGE 15
*Individual Markets - Individual Annuities*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	15.3		$	12.3		$	10.7		$	12.8		$	16.6			8.5	%	$	24.6		$	29.4			19.8	%
Surrender charges		9.6			6.6			12.3			9.7			10.1			5.2	%		15.8			19.8			25.5	%
Expense assessments		182.7			189.3			215.2			226.0			249.9			36.8	%		350.8			475.9			35.7	%
Net investment income		263.2			312.7			314.8			266.3			302.2			14.8	%		411.1			568.5			38.3	%
Other revenue and fees ⁽¹⁾		81.8			75.7			84.3			90.4			96.4			17.8	%		125.1			186.8			49.3	%
*Total Operating Revenue*		552.6			596.5			637.3			605.1			675.3			22.2	%		927.4			1,280.5			38.1	%

*Operating Expenses*
Insurance benefits		45.3			27.4			11.7			21.4			31.8			-29.8	%		65.7			53.2			-19.1	%
Interest credited to contractholder funds		168.8			208.2			211.7			166.5			189.9			12.5	%		263.9			356.4			35.1	%
Operating and acquisition expenses		216.9			227.3			252.6			256.7			278.4			28.4	%		389.4			535.0			37.4	%
*Total Operating Expenses*		431.0			462.9			476.0			444.6			500.0			16.0	%		719.1			944.6			31.4	%

Income from operations before Federal income taxes		121.5			133.6			161.4			160.5			175.3			44.3	%		208.3			335.8			61.2	%

Federal income taxes		32.5			4.2			37.6			39.5			45.2			39.1	%		52.8			84.7			60.4	%

*Income from Operations*	$	89.0		$	129.4		$	123.8		$	121.0		$	130.1			46.2	%	$	155.5		$	251.1			61.5	%

*Effective tax rate*		26.7	%		3.1	%		23.3	%		24.6	%		25.8	%					25.4	%		25.2	%

*Average equity*	$	3,269.2		$	3,310.4		$	3,388.1		$	3,442.3		$	3,491.1					$	2,506.6		$	3,466.7
*Return on average equity*		10.9	%		15.6	%		14.6	%		14.1	%		14.9	%					12.4	%		14.5	%

*Income from Operations - basis points on* average account values		58			84			76			72			73						30			72

Operating and Acquisition Expenses
Commissions	$	140.5		$	146.2		$	167.2		$	152.1		$	178.8			27.3	%	$	251.8		$	330.9			31.4	%
General and administrative expenses		69.8			81.8			80.9			69.5			82.4			18.1	%		136.0			151.9			11.6	%
Broker-dealer commissions and general and
administrative expenses		79.3			76.6			80.0			87.2			92.8			17.0	%		125.9			180.0			43.0	%
Taxes, licenses and fees		4.6			4.8			4.5			8.9			5.7			23.9	%		10.1			14.6			44.8	%
Total commissions and expenses incurred		294.2			309.4			332.6			317.7			359.7			22.3	%		523.7			677.4			29.4	%
Less: commissions and expenses capitalized		(150.0	)		(157.6	)		(181.8	)		(157.6	)		(189.3	)		-26.2	%		(272.7	)		(346.9	)		-27.2	%
Amortization of DAC and VOBA		72.7			75.6			101.7			96.6			108.0			48.6	%		138.5			204.5			47.7	%

Net Operating and Acquisition Expenses	$	216.9		$	227.3		$	252.6		$	256.7		$	278.4			28.4	%	$	389.4		$	535.0			37.4	%

General and administrative expenses - basis
points on gross account values - Annualized ⁽²⁾		45			53			50			41			46			1			49			44			(5	)




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	1,414.9		$	1,994.4		$	1,974.1		$	2,050.4		$	2,082.0					$	1,328.0		$	2,050.4
Cumulative effect of adoption of SOP 05-1		-			-			-			(27.2	)		-						-			(27.2	)
Deferral		150.0			157.6			181.8			157.6			189.3						272.7			346.9
Amortization		(72.7	)		(75.6	)		(101.7	)		(96.6	)		(108.0	)					(138.5	)		(204.5	)
Included in Total Operating Expenses		77.3			82.0			80.0			61.0			81.4						134.2			142.4
Adjustment related to realized gains
on available-for-sale securities		(4.1	)		(2.4	)		(1.1	)		(2.2	)		1.0						(6.8	)		(1.2	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		57.3			(103.6	)		(2.7	)		(14.0	)		72.4						90.0			58.4
Business acquired		448.9			3.8			-			14.0			-						448.9			14.0
Balance at end of period	$	1,994.4		$	1,974.1		$	2,050.4		$	2,082.0		$	2,236.8					$	1,994.4		$	2,236.8

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	78.1		$	84.8		$	94.6		$	100.9		$	104.6					$	72.0		$	100.9
Cumulative effect of adoption of SOP 05-1		-			-			-			(2.0	)		-						-			(2.0	)
Deferral		9.8			10.0			10.6			9.8			11.8						19.2			21.6
Amortization		(3.0	)		(0.1	)		(4.3	)		(3.9	)		(4.5	)					(6.3	)		(8.4	)
Included in Income from Operations		6.8			9.8			6.3			5.9			7.3						12.9			13.2
Adjustment related to realized gains
on available-for-sale securities		-			(0.1	)		-			-			(0.1	)					-			(0.1	)
Balance at end of period	$	84.8		$	94.6		$	100.9		$	104.6		$	111.9					$	84.8		$	111.9

Roll Forward of Deferred Sales Inducements

Balance at beginning of period	$	139.9		$	154.6		$	173.4		$	193.7		$	206.2					$	129.4		$	193.7
Cumulative effect of adoption of SOP 05-1		-			-			-			(2.8	)		-						-			(2.8	)
Deferral		19.9			22.2			28.2			23.7			27.3						35.6			50.9
Amortization		(5.2	)		(3.3	)		(7.9	)		(8.2	)		(8.7	)					(10.4	)		(17.0	)
Included in Income from Operations		14.7			18.9			20.3			15.4			18.5						25.2			33.9
Adjustment related to realized gains
on available-for-sale securities		-			(0.1	)		-			(0.1	)		(0.0	)					-			(0.1	)
Balance at end of period	$	154.6		$	173.4		$	193.7		$	206.2		$	224.7					$	154.6		$	224.7

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

6/30/2007																									PAGE 16
*Individual Markets - Individual Annuities*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]


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

*Fixed Annuities - Balance at Beginning of Period*	$	10.563		$	19.533		$	18.939		$	18.545		$	18.139			71.7	%	$	10.840		$	18.545			71.1	%

Business acquired		9.343			-			-			0.040			-			-100.0	%		9.343			0.040			-99.6	%
Gross deposits		0.872			1.062			1.100			0.821			0.982			12.6	%		1.343			1.803			34.3	%
Withdrawals & deaths		(1.037	)		(1.405	)		(1.162	)		(0.887	)		(0.892	)		14.0	%		(1.444	)		(1.779	)		-23.2	%
Net flows		(0.164	)		(0.344	)		(0.062	)		(0.066	)		0.090			154.9	%		(0.101	)		0.024			123.8	%
Transfer from (to) variable annuities		(0.395	)		(0.483	)		(0.561	)		(0.557	)		(0.560	)		-41.8	%		(0.847	)		(1.117	)		-31.9	%
Interest credited		0.166			0.211			0.201			0.153			0.172			3.6	%		0.262			0.325			24.0	%
Sales inducements deferred		0.020			0.022			0.028			0.024			0.027			35.0	%		0.036			0.051			41.7	%
*Fixed Annuities - Gross*		19.533			18.939			18.545			18.139			17.867			-8.5	%		19.533			17.867			-8.5	%
Reinsurance ceded		(2.149	)		(2.045	)		(1.812	)		(1.689	)		(1.598	)		25.6	%		(2.149	)		(1.598	)		25.6	%
*Fixed Annuities - Balance at End of Period ⁽¹⁾*	$	17.384		$	16.894		$	16.733		$	16.449		$	16.270			-6.4	%	$	17.384		$	16.270			-6.4	%

*Variable Annuities - Balance at Beginning* *of Period*	$	40.495		$	41.537		$	43.977		$	48.169		$	50.300			24.2	%	$	37.655		$	48.169			27.9	%

Business acquired		0.250			-			-			-			-			-100.0	%		0.250			-			-100.0	%
Gross deposits		1.867			1.658			2.061			2.000			2.295			22.9	%		3.533			4.295			21.6	%
Withdrawals & deaths		(1.004	)		(1.011	)		(1.107	)		(1.179	)		(1.247	)		-24.2	%		(1.962	)		(2.426	)		-23.6	%
Net flows		0.864			0.648			0.954			0.821			1.048			21.3	%		1.570			1.869			19.0	%
Transfer from (to) fixed annuities		0.395			0.483			0.560			0.556			0.560			41.8	%		0.847			1.117			31.9	%
Investment increase & change in market value		(0.467	)		1.309			2.678			0.754			3.263		NM				1.215			4.016			230.5	%
*Variable Annuities - Balance at End of Period ⁽²⁾*	$	41.537		$	43.977		$	48.169		$	50.300		$	55.171			32.8	%	$	41.537		$	55.171			32.8	%

*Total Annuities - Balance at Beginning of Period*	$	51.059		$	61.070		$	62.916		$	66.714		$	68.438			34.0	%	$	48.495		$	66.714			37.6	%

Business acquired		9.593			-			-			0.040			-			-100.0	%		9.593			0.040			-99.6	%
Gross deposits		2.740			2.720			3.161			2.821			3.277			19.6	%		4.876			6.098			25.1	%
Withdrawals & deaths		(2.040	)		(2.416	)		(2.269	)		(2.067	)		(2.139	)		-4.9	%		(3.407	)		(4.205	)		-23.4	%
Net flows		0.699			0.304			0.892			0.754			1.138			62.8	%		1.469			1.893			28.9	%
Transfers		-			-			(0.001	)		(0.001	)		-		NM				-			-		NM
Interest credited & change in market value		(0.301	)		1.520			2.879			0.907			3.435		NM				1.477			4.341			193.9	%
Sales inducements deferred		0.020			0.022			0.028			0.024			0.027			35.0	%		0.036			0.051			41.7	%
*Total Annuities - Gross*		61.070			62.916			66.714			68.438			73.038			19.6	%		61.070			73.038			19.6	%
Reinsurance ceded		(2.149	)		(2.045	)		(1.812	)		(1.689	)		(1.598	)		25.6	%		(2.149	)		(1.598	)		25.6	%
*Total Annuities (Net of Ceded) - Balance at End of Period*	$	58.921		$	60.872		$	64.902		$	66.749		$	71.441			21.2	%	$	58.921		$	71.441			21.2	%

*Variable Annuities Under Agreement - Included above*	$	0.173		$	0.169		$	0.170		$	0.163		$	0.164			-5.2	%	$	0.173		$	0.164			-5.2	%

*Incremental Deposits ⁽³⁾:*
Fixed annuities	$	0.861		$	1.058		$	1.086		$	0.815		$	0.976			13.4	%	$	1.322		$	1.791			35.5	%
Variable annuities		1.850			1.623			2.036			1.979			2.265			22.4	%		3.500			4.244			21.3	%
*Total Incremental Deposits*	$	2.711		$	2.681		$	3.122		$	2.794		$	3.241			19.5	%	$	4.822		$	6.034			25.1	%

⁽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.

6/30/2007																									PAGE 17
*Individual Markets - Individual Annuities*
*Account Values*
Unaudited [Billions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Fixed Annuities - excluding fixed portion of variable contracts*
Deposits	$	0.137		$	0.258		$	0.280		$	0.126		$	0.129			-5.8	%	$	0.159		$	0.255			60.4	%
Withdrawals		(0.805	)		(1.148	)		(0.943	)		(0.674	)		(0.677	)		15.9	%		(1.048	)		(1.351	)		-28.9	%
Net flows	$	(0.668	)	$	(0.890	)	$	(0.663	)	$	(0.548	)	$	(0.548	)		18.0	%	$	(0.890	)	$	(1.096	)		-23.1	%

Gross fixed contract account values	$	12.190		$	11.766		$	11.221		$	10.818		$	10.377			-14.9	%	$	12.190		$	10.377			-14.9	%
Reinsurance ceded		(2.149	)		(2.045	)		(1.812	)		(1.689	)		(1.598	)		25.6	%		(2.149	)		(1.598	)		25.6	%
Net Fixed Contract Account Values	$	10.041		$	9.721		$	9.409		$	9.129		$	8.779			-12.6	%	$	10.041		$	8.779			-12.6	%

*Indexed Annuities*
Deposits	$	0.228		$	0.244		$	0.245		$	0.160		$	0.191			-16.2	%	$	0.228		$	0.352			54.4	%
Withdrawals		(0.047	)		(0.068	)		(0.061	)		(0.063	)		(0.061	)		-29.8	%		(0.047	)		(0.123	)	NM
Net flows	$	0.181		$	0.177		$	0.184		$	0.098		$	0.130			-28.2	%	$	0.181		$	0.228			26.0	%

Indexed Annuity Account Values	$	3.210		$	3.454		$	3.711		$	3.844		$	4.033			25.6	%	$	3.210		$	4.033			25.6	%

*Fixed Portion of Variable Contracts*
Deposits	$	0.507		$	0.559		$	0.575		$	0.535		$	0.662			30.6	%	$	0.956		$	1.197			25.2	%
Withdrawals		(0.185	)		(0.190	)		(0.158	)		(0.151	)		(0.154	)		16.8	%		(0.349	)		(0.305	)		12.6	%
Net flows	$	0.322		$	0.370		$	0.417		$	0.384		$	0.508			57.8	%	$	0.607		$	0.892			47.0	%

Fixed Portion of Variable Contract Account Values	$	4.132		$	3.719		$	3.613		$	3.476		$	3.458			-16.3	%	$	4.132		$	3.458			-16.3	%

*Variable Annuities - including fixed portion of variable contracts*
Deposits	$	2.374		$	2.218		$	2.635		$	2.535		$	2.957			24.6	%	$	4.489		$	5.492			22.3	%
Withdrawals		(1.188	)		(1.200	)		(1.265	)		(1.330	)		(1.401	)		-17.9	%		(2.311	)		(2.731	)		-18.2	%
Net Flows	$	1.186		$	1.017		$	1.371		$	1.205		$	1.556			31.2	%	$	2.177		$	2.761			26.8	%

Variable Contract Account Values	$	45.669		$	47.697		$	51.782		$	53.776		$	58.629			28.4	%	$	45.669		$	58.629			28.4	%

*Average Daily Variable Annuity Account Values*	$	41.214		$	42.342		$	46.514		$	49.284		$	53.465			29.7	%	$	40.580		$	51.327			26.5	%

Individual Annuity Product Spread Information																Change									Change
																(Basis Point)									(Basis Point)
Net investment income ^{(1) (2) (3) (7)}		5.64	%		5.90	%		5.91	%		5.86	%		5.86	%		22			5.70	%		5.86	%		16
Interest credited to policyholders^{(4) (5) (6) (7)}		3.88	%		3.85	%		3.81	%		3.73	%		3.50	%		(38	)		3.89	%		3.61	%		(28	)
Spread ^{(1) (2) (3) (4) (6) (7)}		1.76	%		2.05	%		2.10	%		2.13	%		2.36	%		60			1.81	%		2.25	%		44

⁽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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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 8 bps in the second quarter of 2007, 5 bps in the first quarter of 2007, 10 bps in the fourth quarter of 2006, 7 bps in the third quarter of 2006 and 2 bps in the second quarter of 2006. The impact was 6 bps in the first six months of 2007 and 4 bps in the first six months 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 2007 spreads reflect a correction (a decrease) to interest credited to policyholders related to a correction to the opening balance sheet of JP that was finalized in the first quarter of 2007. The impact of this correction was 9 bps in the first quarter of 2007 and 5 bps in the first six months of 2007.

⁽⁶⁾ Interest credited and our spreads include the impact of changes in the fair value of the SFAS 133 forward starting option liability related to our indexed annuity products. The impact of these changes in fair value on our spreads was 24 bps in the second quarter of 2007, (10) bps in the first quarter of 2007, 10 bps in the fourth quarter of 2006, (16) bps in the third quarter of 2006 and (3) bps in the second quarter of 2006.

⁽⁷⁾ In the second quarter of 2007, we updated previously reported historical investment income yields, interest rate credited to policyholders and interest rate spreads to conform to the presentation in the second quarter of 2007. The impact of the changes on spreads ranged from 1 bp - 10 bps per quarter.

6/30/2007																									PAGE 18
*Employer Markets - Defined Contribution*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Surrender charges	$	2.1		$	1.7		$	1.5		$	2.0		$	2.2			4.8	%	$	4.4		$	4.3			-2.3	%
Expense assessments		54.7			54.0			58.4			59.8			63.0			15.2	%		110.3			122.7			11.2	%
Net investment income		187.5			184.6			180.6			180.3			182.3			-2.8	%		373.2			362.6			-2.8	%
Other revenue and fees		4.6			4.9			4.5			4.7			4.6			-			10.2			9.2			-9.8	%
*Total Operating Revenue*		248.9			245.1			245.0			246.8			252.1			1.3	%		498.1			498.8			0.1	%

*Operating Expenses*
Interest credited to contractholder funds		102.4			103.1			104.4			104.3			104.6			2.1	%		203.1			209.0			2.9	%
Operating and acquisition expenses		69.5			74.5			80.2			71.6			80.6			16.0	%		142.8			152.3			6.7	%
*Total Operating Expenses*		171.9			177.6			184.6			176.0			185.3			7.8	%		345.9			361.3			4.5	%

Income from operations before Federal income taxes		77.0			67.5			60.4			70.8			66.8			-13.2	%		152.2			137.6			-9.6	%

Federal income taxes		22.7			15.0			15.8			21.1			19.5			-14.1	%		45.4			40.6			-10.6	%

*Income from Operations*	$	54.3		$	52.5		$	44.6		$	49.7		$	47.3			-12.9	%	$	106.8		$	97.0			-9.2	%

*Effective tax rate*		29.4	%		22.3	%		26.2	%		29.8	%		29.2	%					29.8	%		29.5	%

*Average equity*	$	985.3		$	945.7		$	954.9		$	938.5		$	906.6					$	995.9		$	922.5
*Return on average equity*		22.0	%		22.2	%		18.7	%		21.2	%		20.9	%					21.5	%		21.0	%

*Income from Operations - basis points on*
*average account values*		69			66			54			58			53						68			56

Operating and Acquisition Expenses
Commissions	$	22.2		$	23.4		$	20.8		$	19.3		$	21.3			-4.1	%	$	48.4		$	40.6			-16.1	%
General and administrative expenses		47.2			56.4			56.5			49.9			54.9			16.3	%		96.9			104.7			8.0	%
Taxes, licenses and fees		2.8			1.3			1.9			5.1			4.4		NM				5.8			9.5			63.8	%
Total commissions and expenses incurred		72.3			81.1			79.2			74.2			80.6			11.5	%		151.1			154.8			2.4	%
Less: commissions and expenses capitalized		(22.6	)		(21.5	)		(18.5	)		(22.2	)		(22.5	)		0.4	%		(48.1	)		(44.6	)		7.3	%
Amortization of DAC and VOBA		19.8			14.9			19.4			19.6			22.5			13.6	%		39.9			42.1			5.5	%

Net Operating and Acquisition Expenses	$	69.5		$	74.5		$	80.2		$	71.6		$	80.6			16.0	%	$	142.8		$	152.3			6.7	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		60			71			68			59			62			2			62			60			(2	)



Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	517.2		$	564.0		$	503.8		$	497.6		$	489.4					$	454.9		$	497.6
Cumulative effect of adoption of SOP 05-1		-			-			-			(1.4	)		-						-			(1.4	)
Deferral		22.6			21.5			18.5			22.2			22.5						48.1			44.6
Amortization		(19.8	)		(14.9	)		(19.4	)		(19.6	)		(22.5	)					(39.9	)		(42.1	)
Included in Total Operating Expenses		2.7			6.6			(0.9	)		2.6			(0.0	)					8.2			2.6
Adjustment related to realized gains
on available-for-sale securities		(6.1	)		(2.0	)		(0.2	)		(2.1	)		(0.8	)					(10.6	)		(3.0	)
Adjustment related to unrealized (gains)
losses on available-for-sale securities		50.2			(64.8	)		(5.1	)		(7.2	)		53.3						111.5			46.1
Balance at end of period	$	564.0		$	503.8		$	497.6		$	489.4		$	541.9					$	564.0		$	541.9

⁽¹⁾ Includes distribution costs.

6/30/2007																			PAGE 19
*Employer Markets - Defined Contribution*
*Account Value Roll Forward*
Unaudited [Billions of Dollars]

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

*Fixed Annuities - Balance at Beginning of Period*	$	11.033		$	11.050		$	11.061		$	11.006		$	10.993			-0.4	%	$	11.009		$	11.006			-
Gross deposits⁽¹⁾		0.242			0.268			0.183			0.299			0.233			-3.7	%		0.495			0.531			7.3	%
Withdrawals & deaths		(0.345	)		(0.426	)		(0.340	)		(0.399	)		(0.376	)		-9.0	%		(0.673	)		(0.775	)		-15.1	%
Net flows		(0.103	)		(0.159	)		(0.157	)		(0.101	)		(0.143	)		-38.8	%		(0.178	)		(0.244	)		-36.7	%
Transfer from (to) variable annuities		0.030			0.049			(0.011	)		(0.017	)		(0.012	)	NM				0.044			(0.028	)	NM
Interest credited		0.090			0.121			0.112			0.104			0.102			13.3	%		0.175			0.206			17.9	%
*Fixed Annuities - Balance at End of Period⁽²⁾*	$	11.050		$	11.061		$	11.006		$	10.993		$	10.940			-1.0	%	$	11.050		$	10.940			-1.0	%

*Variable Annuities - Balance at Beginning of Period*	$	16.454		$	16.144		$	16.530		$	17.475		$	17.676			7.4	%	$	15.692		$	17.475			11.4	%
Gross deposits⁽¹⁾		0.714			0.583			0.559			0.655			0.577			-19.2	%		1.383			1.232			-11.0	%
Withdrawals & deaths		(0.647	)		(0.565	)		(0.669	)		(0.813	)		(0.747	)		-15.5	%		(1.322	)		(1.560	)		-17.9	%
Net flows		0.067			0.018			(0.110	)		(0.158	)		(0.170	)	NM				0.061			(0.328	)	NM
Transfer from (to) fixed annuities		(0.032	)		(0.046	)		0.008			0.004			0.007			121.9	%		(0.047	)		0.011			123.2	%
Investment increase & change in market value		(0.345	)		0.414			1.047			0.354			0.968		NM				0.438			1.322			202.0	%
*Variable Annuities - Balance at End of Period ⁽³⁾*	$	16.144		$	16.530		$	17.475		$	17.676		$	18.480			14.5	%	$	16.144		$	18.480			14.5	%

*Total Annuities - Balance at Beginning of Period*	$	27.487		$	27.194		$	27.591		$	28.482		$	28.669			4.3	%	$	26.701		$	28.482			6.7	%
Gross Deposits ⁽¹⁾		0.955			0.851			0.742			0.953			0.809			-15.3	%		1.878			1.763			-6.1	%
Withdrawals & deaths		(0.992	)		(0.992	)		(1.009	)		(1.212	)		(1.122	)		-13.1	%		(1.995	)		(2.334	)		-17.0	%
Net flows		(0.036	)		(0.141	)		(0.267	)		(0.259	)		(0.313	)	NM				(0.117	)		(0.571	)	NM
Transfers		(0.002	)		0.003			(0.002	)		(0.012	)		(0.005	)	NM				(0.003	)		(0.017	)	NM
Interest credited & change in market value		(0.255	)		0.535			1.160			0.458			1.070		NM				0.613			1.528			149.5	%
*Total Annuities - Balance at End of Period*	$	27.194		$	27.591		$	28.482		$	28.669		$	29.421			8.2	%	$	27.194		$	29.421			8.2	%

*Alliance Mutual Funds - Balance at Beginning of Period*	$	4.248		$	4.330		$	4.636		$	5.175		$	5.807			36.7	%	$	3.772		$	5.175			37.2	%
Plan/Participant Rollovers		0.021			0.057			0.168			0.279			0.217		NM				0.146			0.496			240.1	%
Additional contributions		0.183			0.178			0.189			0.254			0.247			35.0	%		0.376			0.501			33.4	%
Gross deposits		0.204			0.235			0.357			0.533			0.464			127.5	%		0.522			0.997			91.2	%
Withdrawals & deaths		(0.054	)		(0.057	)		(0.079	)		(0.054	)		(0.077	)		-42.6	%		(0.110	)		(0.131	)		-18.9	%
Net flows		0.150			0.178			0.277			0.480			0.387			158.0	%		0.412			0.866			110.5	%
Transfers		-			(0.015	)		0.003			0.005			0.040		NM				0.005			0.045		NM
Interest credited & change in market value		(0.068	)		0.143			0.259			0.147			0.310		NM				0.142			0.457			222.8	%
*Total Alliance Mutual Funds - Balance at End of Period ⁽⁴⁾*	$	4.330		$	4.636		$	5.175		$	5.807		$	6.543			51.1	%	$	4.330		$	6.543			51.1	%

*Total Defined Contribution Segment Account Values-*
*including Alliance Mutual Funds*
*Balance at Beginning of Period*	$	31.735		$	31.524		$	32.227		$	33.656		$	34.475			8.6	%	$	30.473		$	33.656			10.4	%
Gross deposits ⁽¹⁾		1.159			1.086			1.099			1.487			1.273			9.8	%		2.400			2.760			15.0	%
Withdrawals & deaths		(1.045	)		(1.049	)		(1.089	)		(1.266	)		(1.199	)		-14.7	%		(2.105	)		(2.465	)		-17.1	%
Net flows		0.114			0.037			0.010			0.221			0.074			-35.1	%		0.294			0.295			0.2	%
Transfers		(0.002	)		(0.012	)		0.000			(0.007	)		0.035		NM				0.003			0.028		NM
Interest credited & change in market value		(0.322	)		0.677			1.419			0.606			1.379		NM				0.754			1.985			163.2	%
*Total Defined Contribution Segment*
*Account Values-* *Balance at End of Period*	$	31.524		$	32.227		$	33.656		$	34.475		$	35.964			14.1	%	$	31.524		$	35.964			14.1	%

*Variable Annuities Under Agreement - Included above*		0.017			0.017			0.017			0.016			0.017			0.0	%		0.017			0.017			0.0	%


*Incremental Deposits⁽⁵⁾ :*
Fixed Annuities	$	0.226		$	0.253		$	0.173		$	0.282		$	0.224			-0.9	%	$	0.480		$	0.506			5.3	%
Variable Annuities		0.709			0.576			0.551			0.581			0.631			-11.0	%		1.363			1.211			-11.1	%
*Total Annuities Incremental Deposits*		0.935			0.829			0.724			0.862			0.855			-8.6	%		1.843			1.717			-6.8	%
Total Alliance Mutual Funds Incremental Deposits		0.204			0.235			0.357			0.533			0.464			127.5	%		0.522			0.997			91.0	%
*Total Defined Contribution Incremental Deposits*	$	1.139		$	1.064		$	1.080		$	1.396		$	1.318			15.7	%	$	2.365		$	2.714			14.8	%

⁽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.

6/30/2007																			PAGE 20
*Employer Markets - Defined Contribution*
*Supplemental Data*
Unaudited [Billions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Fixed Annuities - excluding fixed* *portion of variable contracts*
Deposits⁽¹⁾	$	0.121		$	0.157		$	0.093		$	0.198		$	0.146			20.7	%	$	0.256		$	0.344			34.4	%
Withdrawals		(0.114	)		(0.162	)		(0.118	)		(0.166	)		(0.140	)		-22.8	%		(0.222	)		(0.305	)		-37.4	%
Net Flows	$	0.008		$	(0.005	)	$	(0.024	)	$	0.032		$	0.006			-25.0	%	$	0.035		$	0.039		NM
											-			-						-			0.000
Fixed Contract Account Values	$	4.717		$	4.758		$	4.797		$	4.870		$	4.917			4.2	%	$	4.717		$	4.917			4.2	%

*Fixed Portion of Variable Contracts*
Deposits	$	0.120		$	0.111		$	0.090		$	0.100		$	0.087			-27.5	%	$	0.239		$	0.187			-21.8	%
Withdrawals		(0.231	)		(0.265	)		(0.222	)		(0.233	)		(0.236	)		-2.2	%		(0.452	)		(0.469	)		-3.8	%
Net Flows	$	(0.111	)	$	(0.154	)	$	(0.132	)	$	(0.133	)	$	(0.149	)		-34.2	%	$	(0.213	)	$	(0.282	)		-32.4	%

Fixed Portion of Variable Contract Account Values	$	6.333		$	6.303		$	6.210		$	6.123		$	6.023			-4.9	%	$	6.333		$	6.023			-4.9	%

*Variable Annuities - including fixed* *portion of variable contracts*
Deposits ⁽¹⁾	$	0.834		$	0.694		$	0.649		$	0.755		$	0.664			-20.4	%	$	1.622		$	1.419			-12.5	%
Withdrawals		(0.878	)		(0.830	)		(0.891	)		(1.046	)		(0.982	)		-11.8	%		(1.774	)		(2.029	)		-14.4	%
Net Flows	$	(0.044	)	$	(0.136	)	$	(0.242	)	$	(0.291	)	$	(0.319	)	NM			$	(0.152	)	$	(0.610	)	NM
																							-
Variable Contract Account Values	$	22.477		$	22.833		$	23.685		$	23.799		$	24.504			9.0	%	$	22.477		$	24.504			9.0	%

*Average Daily Variable Annuity Account Values*	$	16.270		$	16.116		$	17.164		$	17.582		$	18.377			13.0	%	$	16.223		$	17.982			10.8	%


Total Annuity based Retirement Plan Product Spread Information⁽²⁾																Change									Change
																(Basis Point)									(Basis Point)
Net investment income ⁽³⁾		6.31	%		6.39	%		6.23	%		6.20	%		6.13	%		(18	)		6.33	%		6.17	%		(16	)
Interest credited to policyholders		3.73	%		3.76	%		3.79	%		3.81	%		3.82	%		9			3.69	%		3.81	%		12
Spread ⁽³⁾		2.58	%		2.63	%		2.44	%		2.39	%		2.31	%		(27	)		2.64	%		2.36	%		(28	)

⁽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. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. 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 9 bps in the 2nd quarter of 2007, 3 bps in the 1st quarter of 2007, 4 bps in the 4th quarter of 2006, 13 bps in the 3rd quarter of 2006 and 12 bps in the 2nd quarter of 2006.

6/30/2007																									PAGE 21
*Employer Markets - Executive Benefits*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	0.0		$	0.3		$	3.3		$	0.6		$	0.1		NM			$	1.1		$	0.7			-36.4	%
Surrender charges		0.0			0.0			0.0			(0.0	)		0.0		NM				0.0			0.0		NM
Mortality assessments		8.5			7.2			8.5			8.9			8.2			-3.5	%		11.3			17.1			51.3	%
Expense assessments		4.9			4.5			5.5			6.2			5.9			20.4	%		8.2			12.1			47.6	%
Net investment income		86.5			91.0			90.5			94.8			99.3			14.8	%		135.2			194.1			43.6	%
Other revenue and fees		1.3			1.3			1.3			1.2			1.3			-			2.7			2.6			-3.7	%
*Total Operating Revenue*		101.2			104.3			109.1			111.7			114.9			13.5	%		158.4			226.6			43.1	%

*Operating Expenses*
Insurance benefits		30.4			35.6			39.7			33.1			33.3			9.5	%		63.2			66.4			5.1	%
Interest credited to contractholder funds		40.2			39.9			42.0			44.8			50.3			25.1	%		49.4			95.1			92.5	%
Operating and acquisition expenses		7.2			11.7			9.1			12.7			11.4			58.3	%		11.7			24.1			106.0	%
*Total Operating Expenses*		77.7			87.2			90.8			90.7			95.0			22.3	%		124.3			185.7			49.4	%

Income from operations before Federal income taxes		23.5			17.1			18.3			21.1			19.9			-15.3	%		34.0			41.0			20.6	%

Federal income taxes		7.3			4.3			5.6			6.6			6.0			-17.8	%		10.3			12.7			23.3	%

*Income from Operations*	$	16.2		$	12.8		$	12.7		$	14.4		$	13.9			-14.2	%	$	23.8		$	28.3			18.9	%

*Effective tax rate*		31.0	%		25.2	%		30.7	%		31.5	%		30.3	%					30.2	%		30.9	%

*Average equity*	$	524.8		$	519.8		$	528.2		$	539.3		$	527.2					$	429.7		$	533.3
*Return on average equity*		12.4	%		9.8	%		9.6	%		10.7	%		10.5	%					11.1	%		10.6	%


Operating and Acquisition Expenses
Commissions	$	8.1		$	7.1		$	11.2		$	6.5		$	6.8			-16.0	%	$	13.3		$	13.3
General and administrative expenses		2.8			6.2			4.8			4.0			4.2			50.0	%		6.5			8.2			26.2	%
Taxes, licenses and fees		1.3			1.4			1.3			1.5			1.3						2.4			2.7			12.5	%
Total commissions and expenses incurred		12.2			14.6			17.3			11.9			12.3			0.8	%		22.1			24.2			9.5	%
Less: commissions and expenses capitalized		(8.0	)		(6.7	)		(10.9	)		(6.9	)		(6.7	)		16.3	%		(13.7	)		(13.6	)		0.7	%
Amortization of DAC and VOBA		2.9			3.8			2.8			7.7			5.8			100.0	%		3.2			13.5		NM

Net Operating and Acquisition Expenses	$	7.2		$	11.7		$	9.1		$	12.7		$	11.4			58.3	%	$	11.7		$	24.1			106.0	%

General and administrative expenses - basis
points on account values - Annualized⁽¹⁾		16			36			27			23			24			8			23			23			-




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	119.0		$	274.1		$	258.0		$	265.3		$	260.5					$	113.6		$	265.3
Deferral		8.0			6.7			10.9			6.9			6.7						13.7			13.6
Amortization		(2.9	)		(3.8	)		(2.8	)		(7.7	)		(5.8	)					(3.2	)		(13.5	)
Included in Total Operating Expenses		5.1			2.9			8.2			(0.8	)		0.9						10.4			0.1
Adjustment related to realized gains
on available-for-sale securities		-			(0.7	)		(0.8	)		(0.5	)		(0.1	)					-			(0.6	)
Adjustment related to unrealized (gains) losses
on available-for-sale securities		7.6			(18.3	)		(0.1	)		(3.4	)		14.9						7.6			11.4
Business acquired		142.5			-			-			-			-						142.5			-
Balance at end of period	$	274.1		$	258.0		$	265.3		$	260.5		$	276.2					$	274.1		$	276.2

Roll Forward of Deferred Front-End Loads

Balance at beginning of period	$	18.9		$	19.7		$	20.3		$	21.7		$	22.0					$	17.9		$	21.7
Deferral		1.0			0.9			1.5			1.1			0.9						2.0			1.9
Amortization		(0.2	)		(0.3	)		(0.2	)		(0.8	)		(0.9	)					(0.2	)		(1.7	)
Included in Income from Operations		0.8			0.6			1.4			0.3			(0.1	)					1.8			0.2
Balance at end of period	$	19.7		$	20.3		$	21.7		$	22.0		$	21.9					$	19.7		$	21.9

⁽¹⁾ Includes distribution costs.

6/30/2007																								PAGE 23
*Employer Markets - Group Protection*
*Income Statements & Operational Data*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	328.9		$	304.1		$	315.9		$	331.3		$	361.3			9.9	%	$	328.9		$	692.7			110.6	%
Net investment income		25.1			27.1			28.0			27.9			28.5			13.5	%		25.1			56.4			124.7	%
Other revenue and fees		0.8			0.9			0.8			1.1			1.2			50.0	%		0.8			2.3			187.5	%
*Total Operating Revenue*		354.9			332.1			344.8			360.4			391.0			10.2	%		354.9			751.4			111.7	%

*Operating Expenses*
Insurance benefits		226.0			213.3			224.0			246.6			265.7			17.6	%		226.0			512.3			126.7	%
Operating and acquisition expenses		72.0			74.6			69.6			78.3			80.7			12.1	%		72.0			158.9			120.7	%
*Total Operating Expenses*		297.9			287.9			293.6			324.9			346.3			16.2	%		297.9			671.2			125.3	%

Income from operations before Federal income taxes		56.9			44.2			51.2			35.5			44.7			-21.4	%		56.9			80.2			40.9	%

Federal income taxes		19.9			15.5			17.9			12.4			15.7			-21.1	%		19.9			28.1			41.2	%

*Income from Operations*	$	37.0		$	28.8		$	33.2		$	23.1		$	29.0			-21.6	%	$	37.0		$	52.1			40.8	%

*Effective tax rate*		35.0	%		35.0	%		35.0	%		35.0	%		35.1	%					35.0	%		35.0	%

*Average equity*	$	861.0		$	896.8		$	913.4		$	915.1		$	917.5					$	861.0		$	916.3
*Return on average equity*		17.2	%		12.8	%		14.6	%		10.1	%		12.6	%					17.2	%		11.4	%

Operating and Acquisition Expenses
Commissions	$	37.3		$	36.0		$	36.8		$	39.4		$	41.4			11.0	%	$	37.3		$	80.8			116.6	%
General and administrative expenses		31.9			35.5			37.5			32.7			37.5			17.6	%		31.9			70.2			120.1	%
Taxes, licenses and fees		8.0			7.8			6.9			9.7			9.5			18.8	%		8.0			19.2			140.0	%
Total commissions and expenses incurred		77.1			79.3			81.2			81.8			88.4			14.7	%		77.1			170.2			120.8	%
Less commissions and expenses capitalized		(11.2	)		(11.3	)		(14.8	)		(11.2	)		(13.5	)		-20.5	%		(11.2	)		(24.7	)	NM
Amortization of DAC and VOBA		6.0			6.6			3.2			7.6			5.8			-3.3	%		6.0			13.4			123.3	%

Net Operating and Acquisition Expenses	$	72.0		$	74.6		$	69.6		$	78.3		$	80.7			12.1	%	$	72.0		$	158.9			120.7	%

General and administrative expenses as a
percentage of premiums		9.7	%		11.7	%		11.9	%		9.9	%		10.4	%	NM				9.7	%		10.1	%




Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	-		$	121.4		$	126.1		$	137.6		$	103.7					$	-		$	137.6
Cumulative effect of adoption of SOP 05-1		-			-			-			(37.5	)		-						-			(37.5	)
Deferral		11.2			11.3			14.8			11.2			13.5						11.2			24.7
Amortization		(6.0	)		(6.6	)		(3.2	)		(7.6	)		(5.8	)					(6.0	)		(13.4	)
Included in Total Operating Expenses		5.2			4.7			11.5			3.5			7.8						5.2			11.3
Business acquired		116.2			-			-			-			-						116.2			-
Balance at end of period	$	121.4		$	126.1		$	137.6		$	103.7		$	111.4					$	121.4		$	111.4

6/30/2007																			PAGE 24
*Employer Markets - Group Protection*
*Supplemental Data*
Unaudited [Millions of Dollars]

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

*Annualized Sales*
Life	$	15.3		$	19.4		$	43.1		$	22.7		$	23.6			54.2	%	$	15.3		$	46.3			202.6	%
Disability		22.9			24.7			56.9			28.6			28.9			26.2	%		22.9			57.5			151.1	%
Dental		7.1			6.1			13.1			9.4			9.5			33.8	%		7.1			19.0			167.6	%

*Premiums:*
Life	$	111.6		$	109.9		$	112.5		$	118.6		$	125.0			12.0	%	$	111.6		$	243.6			118.3	%
Disability		134.0			134.8			138.5			144.8			150.4			12.2	%		134.0			295.2			120.3	%
Dental		31.4			31.7			31.8			32.9			33.5			6.7	%		31.4			66.5			111.8	%
Other		51.9			27.8			33.2			35.0			52.5			1.2	%		51.9			87.5			68.6	%

Total	$	328.9		$	304.1		$	315.9		$	331.3		$	361.3			9.9	%	$	328.9		$	692.7			110.6	%

*Product Line Results:*
Life	$	13.5		$	9.8		$	13.6		$	8.6		$	10.0			-25.9	%	$	13.5		$	18.6			37.8	%
Disability		21.1			16.1			15.5			13.3			18.1			-14.2	%		21.1			31.4			48.8	%
Dental		1.4			2.2			3.0			0.2			(0.1	)	NM				1.4			0.1			-92.9	%
Other		1.0			0.7			1.1			0.9			1.0			-			1.0			1.9			90.0	%

Total	$	37.0		$	28.8		$	33.2		$	23.1		$	29.0			-21.6	%	$	37.0		$	52.1			40.8	%

*Loss Ratios:*
Life		67.8	%		72.3	%		69.0	%		75.0	%		73.9	%		9.0	%		67.8	%		74.4	%		9.7	%
Disability		59.4	%		64.5	%		69.3	%		69.5	%		66.4	%		11.7	%		59.4	%		67.9	%		14.3	%
Dental		76.3	%		71.7	%		68.7	%		79.2	%		79.3	%		3.9	%		76.2	%		79.2	%		4.0	%

Combined loss ratios		64.7	%		68.4	%		69.1	%		72.7	%		70.8	%		9.5	%		64.7	%		71.8	%		10.9	%

6/30/2007																			PAGE 25
*Investment Management*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Investment advisory fees - External	$	81.2		$	82.4		$	86.5		$	89.9		$	92.5			13.9	%	$	159.0		$	182.5			14.8	%
Investment advisory fees - Insurance-related		23.5			23.7			24.7			24.9			19.8			-15.7	%		48.6			44.7			-8.0	%
Other revenue and fees		30.0			34.3			37.7			35.3			38.7			29.0	%		66.7			74.0			10.9	%
*Operating Revenue*		134.7			140.4			148.9			150.2			151.0			12.1	%		274.3			301.1			9.8	%

*Operating Expenses*
Operating and administrative expenses		116.4			120.3			126.2			124.6			133.1			14.3	%		232.5			257.7			10.8	%
*Total Operating Expenses*		116.4			120.3			126.2			124.6			133.1			14.3	%		232.5			257.7			10.8	%

Income (Loss) from operations before Federal income taxes		18.3			20.1			22.7			25.6			17.9			-2.2	%		41.8			43.4			3.8	%

Federal income taxes		6.3			6.7			8.3			9.3			6.6			4.8	%		14.5			15.9			9.7	%

*Income (Loss) from Operations*	$	12.0		$	13.4		$	14.4		$	16.2		$	11.3			-5.8	%	$	27.3		$	27.5			0.7	%

*Effective tax rate*		34.4	%		33.1	%		36.5	%		36.4	%		36.8	%					34.7	%		36.6	%

*Pre-tax Operating Margin ⁽¹⁾*		13.6	%		14.3	%		15.2	%		17.0	%		11.8	%					15.2	%		14.4	%
*After-tax Operating Margin⁽²⁾*		8.9	%		9.6	%		9.7	%		10.8	%		7.5	%					10.0	%		9.1	%


Operating and Acquisition Expenses
General and administrative expenses	$	99.4		$	104.2		$	109.1		$	106.5		$	116.7			17.4	%	$	195.5		$	223.2			14.2	%
Depreciation and amortization		2.4			2.2			2.4			2.6			2.5			4.2	%		4.6			5.2			13.0	%
Sub-advisory fees		10.6			9.8			9.8			10.0			8.4			-20.8	%		21.6			18.4			-14.8	%
Total general and administrative expenses		112.4			116.2			121.3			119.1			127.7			13.6	%		221.7			246.8			11.3	%
Taxes, licenses and fees		2.4			2.7			3.5			4.1			4.0			66.7	%		7.2			8.1			12.5	%
Amortization of intangibles		1.6			1.4			1.4			1.4			1.4			-12.5	%		3.6			2.8			-22.2	%
Total expenses incurred	$	116.4		$	120.3		$	126.2		$	124.6		$	133.1			14.3	%	$	232.5		$	257.7			10.8	%

⁽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.

6/30/2007										PAGE 26
*Investment Management*
*Assets Under Management Roll Forward*
Unaudited [Billions of Dollars]


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

Retail Fixed - Balance-Beginning-of-Period	$	9.761		$	10.007		$	10.522		$	10.993		$	11.644			19.3	%	$	9.625		$	10.993			14.2	%
Sales ⁽¹⁾		1.034			0.981			1.091			1.365			1.494			44.5	%		1.984			2.860			44.2	%
Redemptions ⁽²⁾		(0.824	)		(0.810	)		(0.802	)		(0.910	)		(1.062	)		-28.9	%		(1.630	)		(1.971	)		-20.9	%
Transfers		0.030			0.012			0.028			0.014			(0.005	)	NM				(0.026	)		0.009			134.6	%
Net Flows		0.240			0.183			0.318			0.470			0.428			78.3	%		0.329			0.898			172.9	%
Net investment gains and change in market value		0.007			0.332			0.211			0.181			0.119		NM				0.053			0.300		NM
Transition of assets ⁽²⁾		-			-			(0.057	)		-			0.111		NM				-			0.111		NM
Balance at End-of-Period	$	10.007		$	10.522		$	10.993		$	11.644		$	12.303			22.9	%	$	10.007		$	12.303			22.9	%

Retail Equity - Balance-Beginning-of-Period	$	36.500		$	36.035		$	36.954		$	39.627		$	40.250			10.3	%	$	32.732		$	39.627			21.1	%
Sales ⁽¹⁾		2.249			1.516			2.101			2.238			1.788			-20.9	%		5.318			4.016			-24.5	%
Redemptions ⁽²⁾		(2.134	)		(1.984	)		(2.338	)		(2.455	)		(2.487	)		-16.5	%		(3.974	)		(4.942	)		-24.4	%
Transfers		(0.032	)		(0.016	)		(0.030	)		(0.020	)		0.004			112.5	%		(0.045	)		(0.015	)		66.7	%
Net Flows		0.082			(0.483	)		(0.267	)		(0.237	)		(0.704	)	NM				1.298			(0.942	)	NM
Net investment gains and change in market value		(0.547	)		1.402			3.074			0.861			2.190		NM				2.006			3.050			52.0	%
Transition of assets ⁽²⁾		-			-			(0.133	)		-			(3.150	)	NM				-			(3.150	)	NM
Balance at End-of-Period	$	36.035		$	36.954		$	39.627		$	40.250		$	38.586			7.1	%	$	36.035		$	38.586			7.1	%

Total Retail - Balance-Beginning-of-Period	$	46.261		$	46.042		$	47.476		$	50.620		$	51.895			12.2	%	$	42.357		$	50.620			19.5	%
Retail sales-Annuities		0.869			0.960			0.932			1.300			0.902			3.8	%		1.754			2.202			25.5	%
Retail sales-Mutual Funds		1.370			1.151			1.768			1.753			1.896			38.4	%		2.699			3.649			35.2	%
Retail sales-Managed Accounts & Other		1.043			0.386			0.493			0.550			0.474			-54.6	%		2.849			1.025			-64.0	%
Total Retail Sales⁽¹⁾		3.282			2.497			3.192			3.603			3.272			-0.3	%		7.302			6.876			-5.8	%
Redemptions ⁽²⁾		(2.959	)		(2.794	)		(3.140	)		(3.365	)		(3.548	)		-19.9	%		(5.604	)		(6.913	)		-23.4	%
Transfers		(0.002	)		(0.003	)		(0.002	)		(0.005	)		(0.001	)		50.0	%		(0.071	)		(0.006	)		91.5	%
Net Flows		0.322			(0.300	)		0.050			0.233			(0.277	)	NM				1.627			(0.044	)	NM
Net investment gains and change in market value		(0.540	)		1.733			3.285			1.041			2.309		NM				2.058			3.350			62.8	%
Transition of assets⁽²⁾		-			-			(0.190	)		-			(3.038	)	NM				-			(3.038	)	NM
Balance at End-of-Period	$	46.042		$	47.476		$	50.620		$	51.895		$	50.889			10.5	%	$	46.042		$	50.889			10.5	%


Institutional Fixed - Balance-Beginning-of-Period	$	17.262		$	18.154		$	19.387		$	22.841		$	23.469			36.0	%	$	14.699		$	22.841			55.4	%
Inflows ⁽¹⁾		1.634			1.133			3.644			1.560			1.557			-4.7	%		4.714			3.118			-33.9	%
Withdrawals/terminations		(0.750	)		(0.516	)		(0.487	)		(0.480	)		(1.271	)		-69.5	%		(1.197	)		(1.751	)		-46.3	%
Transfers		0.008			(0.002	)		0.001			0.000			(0.000	)	NM				0.011			0.000		NM
Net Flows		0.892			0.615			3.157			1.081			0.286			-67.9	%		3.528			1.367			-61.3	%
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			(0.780	)				NM				-			(0.780	)
Net investment gains and change in market value		0.001			0.618			0.297			0.328			(0.147	)	NM				(0.073	)		0.181		NM
Balance at End-of-Period	$	18.154		$	19.387		$	22.841		$	23.469		$	23.608			30.0	%	$	18.154		$	23.608			30.0	%

Institutional Equity - Balance-Beginning-of-Period	$	22.906		$	21.729		$	22.649		$	23.845		$	22.782			-0.5	%	$	20.576		$	23.845			15.9	%
Inflows⁽¹⁾		1.130			1.274			1.244			0.870			1.320			16.8	%		3.094			2.190			-29.2	%
Withdrawals/terminations		(1.327	)		(0.844	)		(1.734	)		(2.273	)		(1.753	)		-32.1	%		(2.335	)		(4.026	)		-72.4	%
Transfers		(0.008	)		0.001			(0.001	)		0.000			(0.000	)		100.0	%		(0.008	)		0.000			100.0	%
Net Flows		(0.205	)		0.431			(0.490	)		(1.402	)		(0.434	)	NM				0.751			(1.836	)	NM
Transition of assets⁽²⁾		-			-			-			-			(0.363	)	NM				-			(0.363	)	NM
Net investment gains and change in market value		(0.971	)		0.489			1.687			0.339			1.242			227.9	%		0.402			1.581			293.3	%
Balance at End-of-Period	$	21.729		$	22.649		$	23.845		$	22.782		$	23.228			6.9	%	$	21.729		$	23.228			6.9	%

Total Institutional - Balance-Beginning-of-Period	$	40.167		$	39.883		$	42.035		$	46.686		$	46.251			15.1	%	$	35.276		$	46.686			32.3	%
Inflows⁽¹⁾		2.764			2.406			4.888			2.431			2.877			4.1	%		7.808			5.308			-32.0	%
Withdrawals/terminations		(2.078	)		(1.360	)		(2.221	)		(2.753	)		(3.025	)		-45.6	%		(3.532	)		(5.778	)		-63.6	%
Transfers		0.000			(0.000	)		(0.000	)		0.001			(0.001	)	NM				0.003			0.000		NM
Net Flows		0.687			1.046			2.666			(0.321	)		(0.148	)	NM				4.279			(0.469	)	NM
Transfer of assets to an intercompany manager⁽³⁾		-			-			-			(0.780	)		(0.363	)	NM				-			(1.143	)	NM
Net investment gains and change in market value		(0.971	)		1.107			1.984			0.667			1.096			212.9	%		0.328			1.763		NM
Balance at End-of-Period	$	39.883		$	42.035		$	46.686		$	46.251		$	46.836			17.4	%	$	39.883		$	46.836			17.4	%

Total Retail and Institutional - At End-of-Period	$	85.926		$	89.511		$	97.307		$	98.146		$	97.725			13.7	%	$	85.926		$	97.725			13.7	%

General Account Assets-End-of-Period ⁽⁴⁾	$	65.637		$	67.410		$	67.437		$	67.658		$	66.423			1.2	%	$	65.637		$	66.423			1.2	%

Total Assets Under Management
At End-of-Period	$	151.563		$	156.921		$	164.743		$	165.803		$	164.148			8.3	%	$	151.563		$	164.148			8.3	%

Total Retail and Institutional - Net Flows ⁽²⁾	$	1.008		$	0.745		$	2.717		$	(0.088	)	$	(0.425	)	NM			$	5.906		$	(0.513	)	NM

Subadvised Assets, included in Assets
Under Management above
Retail	$	16.899		$	16.421		$	18.023		$	18.466		$	16.329			-3.4	%	$	16.899		$	16.329			-3.4	%
Institutional		4.593			4.560			4.648			4.645			4.594			-			4.593			4.594			-
Total Subadvised Assets	$	21.491		$	20.982		$	22.671		$	23.111		$	20.922			-2.6	%	$	21.491		$	20.922			-2.6	%

⁽¹⁾ Sales and in-flows include dividend reinvestments.

⁽²⁾ Reflects the restatement of $190M of 529 Plan Assets (that transitioned to Upromise in 4Q06) from Redemptions into Transition of Assets. Subsequent 529 Plan Assets which transitioned in 2Q07 are reflected as Transition of Assets.

⁽³⁾ Transfer does not impact LFG consolidated assets under management .

⁽⁴⁾ Balances for 4Q06 and the 1Q07 have been restated to reflect adjustments made to Jefferson Pilot separate accounts. The impact of these changes was $370 million and $366 million, respectively.

6/30/2007																			PAGE 27
*Lincoln UK*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Revenue*
Premiums	$	19.9		$	21.1		$	21.0		$	24.2		$	24.3			22.1	%	$	36.5		$	48.5			32.9	%
Mortality assessments		8.9			8.7			9.0			10.0			8.9			-			16.7			18.9			13.2	%
Expense assessments		34.7			23.9			36.8			37.1			39.9			15.0	%		62.7			77.1			23.0	%
Net investment income		17.8			18.6			18.0			19.3			19.4			9.0	%		34.9			38.7			10.9	%
Other revenue and fees		-			-			-			0.1			-		NM				0.1			0.1			-
*Total Operating Revenue*		81.4			72.3			84.8			90.7			92.5			13.6	%		150.9			183.3			21.5	%

*Operating Expenses*
Insurance benefits		27.5			25.0			30.4			36.0			34.4			25.1	%		52.9			70.4			33.1	%
Operating and acquisition expenses		38.9			34.5			39.1			38.0			40.2			3.3	%		66.5			78.1			17.4	%
*Total Operating Expenses*		66.3			59.5			69.5			74.0			74.6			12.5	%		119.3			148.6			24.6	%

Income from operations before Federal income taxes		15.1			12.8			15.3			16.7			18.0			19.2	%		31.6			34.7			9.8	%

Federal income taxes		5.2			4.5			5.4			5.9			6.3			21.2	%		11.0			12.1			10.0	%

*Income from Operations*	$	9.9		$	8.3		$	9.9		$	10.9		$	11.7			18.2	%	$	20.6		$	22.5			9.2	%

*Effective tax rate on*
*Income from Operations*		34.4	%		35.2	%		35.3	%		35.3	%		35.0	%					34.8	%		35.0	%

*Average equity*	$	417.8		$	406.0		$	392.3		$	384.8		$	382.7					$	422.4		$	383.8
*Return on average equity*		9.5	%		8.2	%		10.1	%		11.3	%		12.2	%					9.8	%		11.8	%

Operating and Acquisition Expenses

Commissions	$	1.1		$	1.4		$	1.1		$	1.0		$	1.0			-9.1	%	$	2.0		$	2.1			5.0	%
General and administrative expenses		23.9			25.1			27.9			26.5			26.7			11.7	%		46.6			53.2			14.2	%
Total commissions and expenses incurred		25.0			26.4			29.0			27.6			27.7			10.8	%		48.6			55.3			13.8	%
Less: commissions and expenses capitalized		(0.1	)		(0.6	)		(0.7	)		(0.6	)		(0.6	)	NM				(0.6	)		(1.2	)		-100.0	%
Amortization of DAC and VOBA		13.9			8.7			10.8			11.0			13.0			-6.5	%		18.4			24.0			30.4	%
																									NM
Net Operating and Acquisition Expenses	$	38.9		$	34.5		$	39.1		$	38.0		$	40.2			3.3	%	$	66.5		$	78.1			17.4	%


Roll Forward of Deferred Acquisition Costs & Value of Business Acquired

Balance at beginning of period	$	747.2		$	781.7		$	783.4		$	809.0		$	802.6					$	743.4		$	809.0
Deferral		0.1			0.6			0.7			0.6			0.6						0.6			1.2
Amortization		(13.9	)		(8.7	)		(10.8	)		(11.0	)		(13.0	)					(18.4	)		(24.0	)
Included in Total Benefits and Expenses		(13.8	)		(8.0	)		(10.1	)		(10.4	)		(12.4	)					(17.8	)		(22.8	)
Foreign currency translation adjustment		48.3			9.7			35.7			4.1			16.3						56.1			20.4
Balance at end of period	$	781.7		$	783.4		$	809.0		$	802.6		$	806.5					$	781.7		$	806.5

Roll Forward of Deferred Front-End Load

Balance at beginning of period	$	364.5		$	381.2		$	392.8		$	404.5		$	400.4					$	363.1		$	404.5
Deferral		0.5			0.8			0.6			0.9			0.7						1.6			1.6
Amortization		(7.4	)		6.1			(6.8	)		(7.0	)		(6.6	)					(10.8	)		(13.6	)
Included in Income from Operations		(6.9	)		6.9			(6.2	)		(6.1	)		(5.9	)					(9.2	)		(12.0	)
Foreign currency translation adjustment		23.6			4.7			17.9			2.0			8.1						27.4			10.2
Balance at end of period	$	381.2		$	392.8		$	404.5		$	400.4		$	402.6					$	381.2		$	402.6

6/30/2007																			PAGE 29
*Lincoln Financial Media*
*Income Statements*
Unaudited [Millions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
*Operating Results*
Communications revenues, net	$	57.5		$	59.8		$	70.0		$	67.2		$	57.4			-0.2	%	$	57.5		$	124.7			116.9	%
Cost of sales		7.6			10.3			15.2			17.0			7.7			1.3	%		7.6			24.7			225.0	%
Operating expenses		22.2			21.0			21.7			24.2			23.4			5.4	%		22.2			47.6			114.4	%
Station operating income		27.7			28.5			33.1			26.0			26.3			-5.1	%		27.7			52.3			88.8	%
Depreciation and amortization		6.0			2.7			2.6			4.2			2.7			-55.0	%		6.0			6.8			13.3	%
General and administrative expenses		1.8			1.4			1.2			1.3			1.0			-44.4	%		1.8			2.3			27.8	%
Taxes, licenses and fees		-			1.5			1.8			1.3			1.4		NM				-			2.7		NM
Net interest expense and other		0.3			0.3			0.3			0.1			0.2			-33.3	%		0.3			0.3

Income from operations before Federal income taxes		19.6			22.6			27.2			19.2			21.1			7.7	%		19.6			40.3			105.6	%

Federal income taxes		7.7			8.0			9.6			6.8			7.4			-3.9	%		7.7			14.2			84.4	%

*Income from Operations*	$	11.9		$	14.6		$	17.5		$	12.4		$	13.6			14.3	%	$	11.9		$	26.0			118.5	%

*Effective tax rate on*
*Income from Operations*		39.3	%		35.4	%		35.4	%		35.5	%		35.3	%					39.3	%		35.4	%




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

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

*Operating Revenue*
Premiums	$	0.3		$	0.9		$	3.8		$	2.1		$	(1.2	)	NM			$	0.6		$	0.9			50.0	%
Net investment income		72.1			59.6			53.1			46.7			44.5			-38.3	%		111.6			91.3			-18.2	%
Amortization of deferred gain on
indemnity reinsurance ⁽²⁾		18.8			18.8			18.8			18.6			18.6			-1.1	%		37.5			37.2			-0.8	%
Other revenue and fees		(0.1	)		(4.5	)		(4.9	)		(2.9	)		3.0		NM				(1.9	)		0.1			105.3	%
Inter-segment elimination of investment advisory fees		(23.5	)		(23.3	)		(25.2	)		(24.5	)		(19.6	)		16.6	%		(48.5	)		(44.2	)		8.9	%
*Total Operating Revenue*		67.6			51.4			45.6			40.0			45.3			-33.0	%		99.3			85.4			-14.0	%

*Operating Expenses*
Insurance benefits		4.1			3.9			7.3			5.7			7.7			87.8	%		5.8			13.4			131.0	%
Interest credited to contractholder funds		36.5			36.1			37.1			37.1			32.2			-11.8	%		70.4			69.3			-1.6	%
Operating and acquisition expenses		28.5			(7.3	)		33.8			16.9			34.9			22.5	%		27.3			51.7			89.4	%
Taxes, licenses and fees		0.6			2.6			1.2			2.7			(0.5	)	NM				3.6			2.2			-38.9	%
Interest		64.3			66.7			64.3			60.8			72.3			12.4	%		85.9			133.1			54.9	%
Inter-segment elimination of investment advisory fees		(23.5	)		(23.3	)		(25.2	)		(24.5	)		(19.6	)		16.6	%		(48.5	)		(44.2	)		8.9	%
*Total Operating Expenses*		110.6			78.8			118.6			98.6			126.9			14.7	%		144.3			225.5			56.3	%

Loss from operations before Federal income taxes		(43.1	)		(27.4	)		(73.0	)		(58.5	)		(81.6	)		-89.3	%		(45.1	)		(140.1	)	NM

Federal income taxes		(17.0	)		(15.9	)		(34.5	)		(23.3	)		(35.1	)	NM				(19.1	)		(58.3	)	NM

*Loss from Operations*	$	(26.1	)	$	(11.5	)	$	(38.4	)	$	(35.2	)	$	(46.6	)		-78.5	%	$	(26.0	)	$	(81.8	)	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.

6/30/2007																			PAGE 30
*Consolidated Domestic Deposits/Account Balances*
Unaudited [Billions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
Deposits - For the Period
Individual Markets - Fixed Annuities	$	0.872		$	1.062		$	1.100		$	0.821		$	0.982			12.6	%	$	1.343		$	1.803			34.3	%
Individual Markets - Variable Annuities		1.867			1.658			2.061			2.000			2.295			22.9	%		3.533			4.295			21.6	%
Individual Markets - Life Insurance		1.023			0.753			1.101			1.039			1.005			-1.8	%		1.511			2.044			35.3	%
Employer Markets - Fixed Annuities		0.242			0.268			0.183			0.299			0.233			-3.7	%		0.495			0.531			7.3	%
Employer Markets - Variable Products⁽¹⁾		0.918			0.818			0.916			1.188			1.041			13.4	%		1.905			2.229			17.0	%
Employer Markets - Executive Benefits		0.077			0.058			0.085			0.065			0.079			2.6	%		0.124			0.144			16.1	%
Inv Mgmt - Annuities		0.869			0.960			0.932			1.300			0.902			3.8	%		1.754			2.202			25.5	%
Inv Mgmt - Mutual Funds		1.370			1.151			1.768			1.753			1.896			38.4	%		2.699			3.649			35.2	%
Inv Mgmt - Managed Acct. & Other		1.043			0.386			0.493			0.550			0.474			-54.6	%		2.849			1.025			-64.0	%
Consolidating Adjustments		(0.773	)		(0.817	)		(0.833	)		(0.799	)		(0.890	)		-15.1	%		(1.254	)		(1.689	)		-34.7	%
Total Gross Retail Deposits		7.509			6.297			7.805			8.217			8.016			6.8	%		14.958			16.233			8.5	%

Inv Mgmt - Institutional		2.764			2.406			4.888			2.431			2.877			4.1	%		7.808			5.308			-32.0	%
Consolidating Adjustments		(0.365	)		(0.202	)		(0.109	)		(0.112	)		(0.188	)		48.5	%		(0.623	)		(0.299	)		52.0	%
Total Gross Deposits	$	9.907		$	8.501		$	12.584		$	10.536		$	10.706			8.1	%	$	22.143		$	21.242			-4.1	%

Account Balances - End of Period
Individual Markets - Fixed Annuities	$	17.384		$	16.894		$	16.733		$	16.449		$	16.270			-6.4	%	$	17.384		$	16.270			-6.4	%
Individual Markets - Variable Annuities		41.537			43.977			48.169			50.300			55.171			32.8	%		41.537			55.171			32.8	%
Individual Markets - Life Insurance		25.479			25.821			26.490			26.924			27.465			7.8	%		25.479			27.465			7.8	%
Employer Markets - Fixed Annuities		11.050			11.061			11.006			10.993			10.940			-1.0	%		11.050			10.940			-1.0	%
Employer Markets - Variable Products⁽¹⁾		20.475			21.166			22.650			23.482			25.024			22.2	%		20.475			25.024			22.2	%
Employer Markets - Executive Benefits		4.228			4.252			4.305			4.264			4.353			3.0	%		4.228			4.353			3.0	%
Inv Mgmt - Annuities		13.577			14.129			15.151			15.467			12.780			-5.9	%		13.577			12.780			-5.9	%
Inv Mgmt - Mutual Funds		16.654			17.068			17.875			18.747			19.894			19.5	%		16.654			19.894			19.5	%
Inv Mgmt - Managed Acct. & Other		15.812			16.279			17.594			17.681			18.215			15.2	%		15.812			18.215			15.2	%
Consolidating Adjustments		(13.057	)		(13.649	)		(14.687	)		(15.025	)		(12.240	)		6.3	%		(13.057	)		(12.240	)		6.3	%
Total Retail Account Balances		153.137			156.998			165.287			169.282			177.871			16.2	%		153.137			177.871			16.2	%

Inv Mgmt - Institutional		39.883			42.035			46.686			46.251			46.836			17.4	%		39.883			46.836			17.4	%
Consolidating Adjustments		(3.557	)		(3.510	)		(3.604	)		(2.829	)		(2.604	)		26.8	%		(3.557	)		(2.604	)		26.8	%
Total Account Balances	$	189.464		$	195.524		$	208.369		$	212.704		$	222.103			17.2	%	$	189.464		$	222.103			17.2	%

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

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

Individual Markets - Life	$	0.548		$	0.491		$	0.727		$	0.698		$	0.586			6.9	%	$	0.805		$	1.284			59.5	%
Individual Markets - Annuities		0.699			0.304			0.892			0.754			1.138			62.8	%		1.469			1.892			28.8	%
Employer Markets - Defined Contribution		0.114			0.037			0.010			0.221			0.074			-35.1	%		0.294			0.295			0.3	%
Employer Markets - Executive Benefits		0.035			(0.011	)		(0.007	)		(0.075	)		0.026			-25.7	%		0.075			(0.049	)	NM
Investment Management - Retail		0.322			(0.300	)		0.050			0.233			(0.277	)	NM				1.627			(0.044	)		NM
Consolidating Adjustments		(0.009	)		0.012			(0.092	)		(0.004	)		0.330		NM				0.074			0.326		NM
Total Retail Net Flows		1.709			0.532			1.580			1.827			1.877			9.8	%		4.344			3.704			-14.7	%

Investment Management - Institutional		0.687			1.046			2.666			(0.321	)		(0.148	)	NM				4.279			(0.469	)	NM
Consolidating Adjustments		(0.047	)		0.139			0.068			0.048			(0.026	)		44.7	%		(0.086	)		0.022		NM
Total Net Flows	$	2.349		$	1.717		$	4.315		$	1.554		$	1.702			-27.5	%	$	8.537		$	3.256			-61.9	%

⁽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.

6/30/2007							PAGE 31
*Consolidated Investment Data - Assets Managed*
Unaudited [Billions of Dollars]

	As of
	June		Sept.		Dec.		March		June		%
	2006		2006		2006		2007		2007		Change
Assets Managed by Source
LNC's Investments and Cash:
Fixed maturity securities -
available for sale	$	54.024	$	55.825	$	55.853	$	56.256	$	55.447		2.6	%
Equity securities - available for sale		0.579		0.662		0.700		0.714		0.687		18.7	%
Trading securities		3.109		3.172		3.036		2.910		2.818		-9.4	%
Other investments		12.003		11.948		11.898		11.970		11.916		-0.7	%
Total LNC Investments		69.714		71.608		71.488		71.849		70.868		1.7	%
Separate accounts		71.095		74.357		80.534		83.147		89.497		25.9	%
Cash and invested cash		1.500		1.108		1.621		0.900		0.989		-34.1	%
Total LNC		142.309		147.073		153.642		155.897		161.353		13.4	%

Non-affiliate assets managed		70.185		73.227		79.881		81.134		83.709		19.3	%

Total Assets Managed	$	212.495	$	220.300	$	233.523	$	237.031	$	245.063		15.3	%

Assets Managed by Advisor
Investment Management segment
(See page 26 for additional detail)	$	85.926	$	89.511	$	97.307	$	98.146	$	97.725		13.7	%
DLIA-Corp
(Assets managed internally-see page 26)		65.637		67.410		67.437		67.658		66.423		1.2	%
Lincoln UK		9.171		9.440		10.108		10.255		10.536		14.9	%
Domestic Policy Loans (excluding Lincoln UK)		2.712		2.720		2.755		2.763		2.783		2.6	%
Non-LNC Affiliates		49.049		51.219		55.916		58.209		67.596		37.8	%
Total Assets Managed	$	212.495	$	220.300	$	233.523	$	237.031	$	245.063		15.3	%

6/30/2007													PAGE 32
*Consolidated Investment Data*
Unaudited [Millions of Dollars]

	Three Months Ended
	June			Sept.			Dec.			March			June			%
	2006			2006			2006			2007			2007			Change
*Net Investment Income*

Fixed maturity AFS securities	$	829.0		$	824.8		$	841.7		$	843.8		$	847.1			2.2	%
Equity AFS securities		8.6			7.9			8.5			8.6			11.8			37.2	%
Trading securities		49.4			49.2			48.6			45.4			44.4			-10.1	%
Mortgage loans on real estate		135.0			137.8			128.5			130.6			131.8			-2.4	%
Real estate		13.2			13.3			20.6			15.2			12.5			-5.3	%
Policy loans		42.5			43.0			43.7			42.6			44.3			4.2	%
Invested cash		22.2			33.0			15.6			18.2			14.7			-33.8	%
Other investments		10.2			41.3			71.8			29.8			109.7		NM
Investment revenue		1,110.1			1,150.3			1,179.0			1,134.2			1,216.2			9.6	%
Investment expense		(41.9	)		(42.4	)		(52.6	)		(44.6	)		(46.3	)		-10.5	%

*Net Investment Income*	$	1,068.2		$	1,107.9		$	1,126.3		$	1,089.5		$	1,169.8			9.5	%

Mean Invested Assets (Amortized Cost)	$	70,933.3		$	70,646.9		$	70,451.4		$	69,905.7		$	70,062.2


Ratio of Net Investment Income Over Mean Invested Assets		6.02	%		6.27	%		6.39	%		6.23	%		6.68	%

	Three Months Ended
	June			Sept.			Dec.			March			June			%
	2006			2006			2006			2007			2007			Change
*Realized Investment Gains (Losses)*
Fixed maturities	$	8.2		$	6.7		$	10.6		$	44.2		$	(20.2	)	NM
Equity securities		(1.1	)		-			-			2.2			4.0		NM
Other gains (losses), net		6.5			(5.5	)		3.5			(0.1	)		9.4			44.6	%
Policyholders' interest		(1.4	)		2.0			7.6			(1.9	)		(0.2	)		85.7	%
Capital gains expense		-			-			-			-			-		NM
Sale of affiliate		-			-			-			-			-		NM
Total pretax gains (losses)		12.2			3.1			21.7			44.4			(7.0	)	NM
Amortization of DAC, VOBA and deferred
sales inducements		(18.9	)		(8.9	)		(8.9	)		(17.9	)		(1.6	)		91.5	%
Income taxes		(3.0	)		(1.7	)		3.4			9.3			(3.8	)		-26.7	%
Realized investment gains (losses), net of taxes	$	(3.8	)	$	(4.1	)	$	9.4		$	17.1		$	(4.9	)		-28.9	%

				As of June 30, 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)				$	58,263.1			98.8	%				$	58,889.8			98.8	%
Fixed Maturity Sec (Amortized Cost)					58,211.9			98.9	%					57,725.8			98.9	%

Equity Securities (Fair Value)					689.0			1.2	%					700.2			1.2	%
Equity Securities (Amortized Cost)					672.2			1.1	%					656.8			1.1	%

*% of Available-for-Sale Fixed Maturity Securities (Based on Fair Value)*
Treasuries and AAA								21.7	%								19.6	%
AA or better								31.9	%								28.1	%
BB or less								5.3	%								6.3	%

*General Account Investments*				As of June 30, 2007									As of December 31, 2006
				Amount			% of Total						Amount			% of Total
Fixed maturities- security sector:
Corporate bonds				$	44,023.4			79.4	%				$	45,489.4			81.4	%
U.S. government bonds					248.1			0.4	%					263.4			0.5	%
Foreign government bonds					975.0			1.8	%					1,141.6			2.0	%
Mortgage backed securities					9,946.2			17.9	%					8,691.3			15.6	%
State and municipal bonds					158.7			0.3	%					159.4			0.3	%
Preferred stocks - redeemable					95.5			0.2	%					108.3			0.2	%
Total				$	55,447.0			100.0	%				$	55,853.4			100.0	%

	As of
	June			Sept.			Dec.			March			June			%
	2006			2006			2006			2007			2007			Change
Composition of Investment Portfolio:
Securities available-for-sale, at fair value:
Fixed Maturity	$	54,024.1		$	55,824.9		$	55,853.4		$	56,255.6		$	55,447.0			2.6	%
Equity		578.5			662.0			700.2			713.9			686.8			18.7	%
Trading securities		3,109.0			3,172.5			3,036.3			2,909.7			2,818.3			-9.4	%
Mortgage loans on real estate & real estate		8,169.7			8,004.5			7,805.6			7,822.2			7,698.4			-5.8	%
Policy loans		2,716.4			2,724.9			2,759.7			2,766.8			2,787.0			2.6	%
Derivative Investments		279.6			349.4			415.3			412.6			375.9			34.4	%
Other investments		837.0			869.3			917.1			968.6			1,054.3			26.0	%
Total	$	69,714.4		$	71,607.5		$	71,487.6		$	71,849.3		$	70,867.7			1.7	%

Lincoln Statistical Report







					second Q U A R T E R










					2 0 0 7





The financial data in this document is dated July 31, 2007 and has not been updated since that date. LNC does not intend to update this document.

6/30/2007									PAGE 1
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]

6/30/2007						PAGE 2
*Financial Highlights*
Unaudited [in Billions]

6/30/2007								PAGE 3
*Financial Highlights*
Unaudited [Millions of Dollars, except Common Share Data]

6/30/2007									PAGE 5
*Consolidated Expense Detail*
Unaudited (In Millions)

Lincoln Financial Group
Statistical Report
Second 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

6/30/2007									PAGE 6
*Operating Results Summary*
Unaudited [Millions of Dollars, except Common Share Data]

6/30/2007									PAGE 7

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

6/30/2007					PAGE 10
*Consolidated Balance Sheet*
Unaudited [Millions of Dollars, except Common Share Data]

6/30/2007																									PAGE 22
*Employer Markets - Executive Benefits*
*Account Value Roll Forward and Supplemental Data*
Unaudited [Billions of Dollars]

	Three Months Ended																		Six Months Ended
	June			Sept.			Dec.			March			June			%			June			June			%
	2006			2006			2006			2007			2007			Change			2006			2007			Change
COLI/BOLI- Balance Beginning-of-Period	$	1.387		$	4.228		$	4.252		$	4.305		$	4.264			207.4	%	$	1.318		$	4.305			226.6	%
Business acquired		2.795			-			-			-			-			-100.0	%		2.795			-			-100.0	%
Deposits		0.077			0.058			0.085			0.065			0.079			2.6	%		0.124			0.144			16.1	%
Withdrawals & deaths		(0.042	)		(0.069	)		(0.092	)		(0.140	)		(0.053	)		-26.2	%		(0.049	)		(0.193	)	NM
Net flows		0.035			(0.011	)		(0.007	)		(0.075	)		0.026			-25.7	%		0.075			(0.049	)	NM
Policyholder assessments		(0.017	)		(0.016	)		(0.019	)		(0.018	)		(0.017	)					(0.026	)		(0.035	)		-34.6	%
Interest credited and change in market value		0.028			0.051			0.079			0.052			0.080			185.7	%		0.066			0.131			98.5	%
*COLI/BOLI-Balance End-of-Period*	$	4.228		$	4.252		$	4.305		$	4.264		$	4.353			3.0	%	$	4.228		$	4.353			3.0	%

*COLI/BOLI In-Force*	$	15.373		$	15.342		$	15.645		$	14.747		$	14.809			-3.7	%	$	15.373		$	14.809			-3.7	%


*Run Off Institutional Pensions Account Values -*
*Balance at End of Period*	$	2.707		$	2.711		$	2.720		$	2.734		$	2.729			0.8	%	$	2.707		$	2.729			0.8	%

6/30/2007																			PAGE 28
*Lincoln UK*
*Operational Data*
Unaudited [Billions of Dollars]

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

Unit Linked Assets
Balance-Beg-of-Period	$	7.754		$	7.857		$	8.118		$	8.757		$	8.906			14.9	%	$	7.320		$	8.757			19.6	%

Deposits		0.073			0.105			0.071			0.068			0.100			37.0	%		0.142			0.168			18.3	%
Withdrawals (including charges) and Deaths		(0.201	)		(0.218	)		(0.232	)		(0.240	)		(0.251	)		-24.9	%		(0.387	)		(0.491	)		-26.9	%
Net Flows		(0.128	)		(0.113	)		(0.161	)		(0.172	)		(0.151	)		-18.0	%		(0.245	)		(0.323	)		-31.8	%
Investment income and change in market value		(0.267	)		0.275			0.424			0.277			0.229			185.8	%		0.212			0.506			138.7	%
Foreign Currency Adjustment		0.500			0.098			0.376			0.045			0.183			-63.4	%		0.572			0.228		NM
Unit Linked Assets - End-of-Period	$	7.857		$	8.118		$	8.757		$	8.906		$	9.168			16.7	%	$	7.857		$	9.168			16.7	%

Individual Life In-force	$	18.289		$	18.464		$	19.345		$	19.307		$	19.605			7.2	%	$	18.289		$	19.605			7.2	%

Exchange Rate - Dollars to Pounds
For-the-Period		1.829			1.878			1.930			1.964			1.989			8.7	%		1.791			1.977			10.4	%
End-of-Period		1.849			1.872			1.958			1.968			2.008			8.6	%		1.849			2.008			8.6	%