EXHIBIT 99.1

Lincoln Statistical Report

First Quarter

2004

Lincoln Financial Group

This document is dated May 5, 2004. It may not be accurate after such date and LNC

does not undertake to update or keep it accurate after such date.

Lincoln Financial Group

Statistical Report

First Quarter

2004

Table of Contents

LFG Analyst Coverage

Notes
Financial Highlights	1 - 4
Eleven-Year Summary	5
Quarterly Summary	6
Reconciliation of Business Segments to Consolidated Income Statement	7 - 8
Statement of Consolidated Income	9 - 10
Reconciliation of Business Segments to Consolidated Balance Sheets	11 - 12
Five-Year Comparative Balance Sheet	13
Quarterly Balance Sheet	14
Lincoln Retirement
Income Statement & Operational Data	15 - 16
Account Value Roll Forward	17 - 18
Life Insurance
Income Statement	19 - 20
Operational Data	21
Account Value Roll Forward	22 - 23
Investment Management
Income Statement	24 - 25
Assets Under Management Roll Forward	26 - 27
Lincoln UK
Income Statement	28 - 29
Operational Data	30
Other Operations	31
Consolidated
Domestic Retail Deposits / Account Balances	32
Total Domestic Net Flows	32
Assets Managed	33
Investment Data	34
Common Stock / Debt Information	35

3/31/2004 ii

NOTES

Definitions and Presentation

• Income from Operations represents net income excluding the after-tax effects of the items below, as applicable. Income from Operations is an internal measure used by LNC in the management of its operations. Management believes that this performance measure explains the results of operations of the LNC’s ongoing operations in a manner that allows for a better understanding of the underlying trends in LNC’s current business.

• Realized gains or losses on investments and derivatives,

• Restructuring charges,

• Gains (losses) related to reinsurance embedded derivatives/trading account assets,

• The cumulative effect of accounting changes,

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

• Gains (losses) on the sale of subsidiaries and blocks of business,

• Certain other items

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

• Realized gains or losses on investments and derivatives,

• Gains (losses) related to reinsurance embedded derivatives/trading account assets,

• Gains (losses) on the sale of subsidiaries and blocks of business,

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

• Certain other items

• Return on capital measures the effectiveness of LNC’s use of its total capital, which includes equity (excluding accumulated other comprehensive income), debt and junior subordinated debentures issued to affiliated trusts. Return on capital is calculated by dividing 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.

• Accumulated other comprehensive income (“AOCI”) represents unrealized gains (losses) on investments, net gain on derivative instruments, foreign currency translation adjustments and minimum pension liability adjustments, net of tax.

• Certain operating and statistical measures are included in this report to provide supplemental data that indicate trends in LNC’s current business. These measures include deposits, net flows, first year premium, inforce, spread, and assets under management.

• Certain reclassifications have been made to the prior periods presented to conform to the March 31, 2004 presentation.

Accounting Changes

• Effective January 1, 2004 LNC Implemented the Statement of Position 03-1, “Accounting and reporting by Insurance Enterprises for certain nontraditional long-duration contracts and for Separate Accounts (“the SOP”). Among other things, the SOP establishes standards for computing reserves for products with guaranteed benefits such as GMDB and for certain riders for Universal Life contracts. The effects of implementing the SOP, including any related effects on DAC from changes in estimated gross profits resulting from implementing the provisions of the SOP are to be recorded as a cumulative effect adjustment. In the first quarter of 2004, LNC recorded a cumulative effect adjustment of $24.5 million ($21.8 million in Lincoln Retirement and $2.7 million in Life Insurance segments) upon implementation of the SOP.

3/31/2004 PAGE 1

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended March 31
	2004 Amount		2003 Amount		Change		% Change
Net Income		130.5		41.6		88.9	213.8	%
Less:
Realized gains (losses) on investments		(7.9)		(58.2)		50.4
Gains (losses) on derivatives		(2.5)		(1.2)		(1.3)
Net gain (loss) on reinsurance derivative/trading account securities		(2.7)		—		(2.7)
Reserve development/ amortization of related deferred gain		0.2		(0.1)		0.3
Restructuring charges		(7.5)		(3.6)		(3.9)
Cumulative effect of accounting change		(24.5)		—		(24.5)
Income from Operations		175.3		104.8		70.6	67.4	%
Net Income - By Segment
Lincoln Retirement		71.8		6.9		64.9	942.8	%
Life Insurance		67.5		48.5		19.0	39.2	%
Investment Management		10.0		1.0		9.0	857.4	%
Lincoln UK		5.9		6.8		(0.9)	(13.2)	%
Corporate & Other		(24.8)		(21.7)		(3.2)
Total		130.5		41.6		88.9	213.8	%
Income from Operations - By Segment
Lincoln Retirement		102.2		57.4		44.8	78.0	%
Life Insurance		74.8		60.7		14.1	23.2	%
Investment Management		12.5		1.3		11.2	845.5	%
Lincoln UK		6.2		6.8		(0.6)	(8.8)	%
Corporate & Other		(20.3)		(21.5)		1.2
Total		175.3		104.8		70.6	67.4	%
Earnings per share (diluted)
Net Income	$	0.72	$	0.23	$	0.49	210.1	%
Less:
Realized gains (losses) on investments	$	(0.04)	$	(0.32)	$	0.28
Gains (losses) on derivatives	$	(0.01)	$	(0.01)
Net Gain (loss) on reinsurance derivative/trading account securities	$	(0.02)			$	(0.02)
Reserve development/ amortization of related deferred gain
Restructuring charges	$	(0.04)	$	(0.02)	$	(0.02)
Cumulative effect of accounting change	$	(0.14)			$	(0.14)
Income from Operations	$	0.97	$	0.59	$	0.22	37.5	%
Operational Data by Segment (Billions, except where noted):
Lincoln Retirement
Gross Deposits		2.223		1.424		0.799	56.1	%
Net Flows		0.712		0.095		0.616	646.6	%
Account Values (Gross)		58.900		47.086		11.814	25.1	%
Account Values (Net of Reinsurance)		56.549		45.011		11.539	25.6	%
Life Insurance Segment
First Year Premium- Retail (in millions)		195.566		170.704		24.862	14.6	%
First Year Premium- COLI (in millions)		14.226		10.571		3.655	34.6	%
First Year Premium- Total (in millions)		209.792		181.275		28.517	15.7	%
In-force		287.007		259.666		27.341	10.5	%
Account Values		13.606		12.233		1.372	11.2	%
Investment Management Segment
Retail Deposits		2.451		1.141		1.310	114.8	%
Retail Net Flows		0.969		0.014		0.955	6762.1	%
Institutional In-flows		2.623		1.086		1.537	141.5	%
Institutional Net Flows		1.661		0.330		1.331	403.9	%
Total Net Flows		2.629		0.344		2.286	665.2	%
Assets Under Management- Retail and Inst’l		67.075		45.718		21.357	46.7	%
Assets Under Management- Insurance Assets		44.006		42.130		1.876	4.5	%
Assets Under Management- Total Segment		111.081		87.848		23.233	26.4	%
Consolidated
Domestic Retail Deposits		4.905		2.880		2.025	70.3	%
Domestic Retail Account Balances		94.133		74.546		19.586	26.3	%
Domestic Retail Net Flows		1.832		0.568		1.264	222.7	%
Domestic Deposits		7.509		3.913		3.596	91.9	%
Domestic Net Flows		3.530		0.868		2.663	306.9	%
Assets Under Management		149.292		114.920		34.372	29.9	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 2

Financial Highlights

Unaudited [Millions of Dollars, except Common Share Data]

	For the Quarter Ended March 31
	2004 Amount			2003 Amount			Change			% Change
Revenue		1,259.0			1,099.3			159.7		14.5	%
Less:
Realized gains (losses) on investments		(12.0	)		(89.6	)		77.5		86.6	%
Gains (losses) on derivatives		(3.8	)		(1.9	)		(2.0	)
Gain (loss) on reinsurance derivative/trading account securities		(4.2	)		—			(4.2	)
Amortization of deferred gain-reserve development		0.3			(0.2	)		0.5
Operating Revenue		1,278.8			1,191.0			87.8		7.4	%
Revenue - By Segment
Lincoln Retirement		516.5			397.8			118.7		29.8	%
Life Insurance		479.2			457.5			21.6		4.7	%
Investment Management		132.9			102.1			30.8		30.2	%
Lincoln UK		75.8			68.9			6.9		10.0	%
Corporate & Other		54.7			73.0			(18.3	)	(25.1	)%
Total		1,259.0			1,099.3			159.7		14.5	%
Operating Revenue- By Segment
Lincoln Retirement		528.0			475.5			52.5		11.0	%
Life Insurance		483.4			470.7			12.7		2.7	%
Investment Management		135.2			102.5			32.7		31.9	%
Lincoln UK		76.1			68.9			7.2		10.5	%
Corporate & Other		56.1			73.3			(17.2	)	(23.4	)%
Total		1,278.8			1,191.0			87.8		7.4	%
Balance Sheet Assets - End of Period		109,869.9			92,497.6			17,372.3		18.8	%
Shareholders’ Equity
Beg of Period (including AOCI)		5,811.6			5,347.5			464.1
End of Period (including AOCI)		6,143.5			5,450.0			693.5
End of Period (excluding AOCI)		5,004.2			4,610.5			393.7
Average Equity (excluding AOCI)		5,016.8			4,682.0			334.8
Return on Equity
Net Income/Average Equity (excluding AOCI)		10.4	%		3.6	%		6.8	%
Inc from Operations/Average Equity (excluding AOCI)		14.0	%		8.9	%		5.0	%
Return on Capital
Inc from Operations/Average Capital		11.5	%		7.6	%		3.9	%
Common Stock Outstanding
Average for the Period - Diluted		181.2			178.3			2.9		1.6	%
End of Period - Assuming Conv of Pref.		178.8			177.7			1.0		0.6	%
End of Period - Diluted		181.4			178.4			3.1		1.7	%
Book Value (including AOCI)	$	34.36		$	30.66		$	3.70		12.1	%
Book Value (excluding AOCI)	$	27.99		$	25.94		$	2.05		7.9	%
Cash Returned to Shareholders
Share Repurchase - dollar amount		64.8			0.0			64.8
Dividends Declared to Shareholders		62.5			59.3			3.1
Total Cash Returned to Shareholders		127.2			59.3			67.9
Share Repurchase - number of shares		1.369			—			1.369
Dividend Declared on Common Stock - per share	$	0.350		$	0.335		$	0.015		4.5	%
	For the Quarter Ended March 31
	2004 Amount			2003 Amount
Comprehensive Income
Net Income		130.5			41.6
Foreign Currency Translation		19.9			(11.0	)
Net Unrealized Gains (Losses) on Securities		244.9			118.7
Gains (Losses) on Derivatives		6.9			(3.4	)
Minimum Pension Liability Adjustment		(1.5	)		0.6
Comprehensive Income		400.7			146.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 3

Financial Highlights

Unaudited [Millions of Dollars]

	For the Quarter Ended March 31
	2004 Amount		2003 Amount		Change		% Change
Consolidated Condensed Statements of Income
Revenue:
Insurance Premiums and Fees	459.2		403.2		56.1		13.9	%
Investment Advisory Fees	62.7		44.2		18.5		42.0	%
Net Investment Income	677.5		654.6		22.9		3.5	%
Realized Gains (Losses) on Investments	(12.0	)	(89.6	)	77.5
Gains (Losses) on Derivatives	(3.8	)	(1.9	)	(2.0	)
Gain on Reinsurance Derivative/Trading Account Securities	(4.2	)	—		(4.2	)
Amortization of Deferred Gain on Indemnity Reinsurance	17.9		18.4		(0.5	)	(2.6	)%
Other	61.8		70.4		—
Total Revenue	1,259.0		1,099.3		159.7		14.5	%
Benefits and Expenses:
Benefits	583.3		609.7		(26.4	)	(4.3	)%
Underwriting, Acquisition, Insurance and Other Expenses	467.1		454.1		9.2		2.0	%
Total Benefits and Expenses	1,050.4		1,063.9		(13.5	)	(1.3	)%
Income before Federal Taxes	208.6		35.4		173.2
Federal Income Taxes	53.7		(6.1	)	59.8
Income before Accounting Changes	155.0		41.6		113.4
Cumulative Effect of Accounting Changes	(24.5	)	—		(24.5	)
Net Income	130.5		41.6		88.9		213.7	%
Income before Tax and Cumulative Effect of Accounting Changes By Segment
Lincoln Retirement	120.3		(13.3	)	133.6
Life Insurance	103.4		68.7		34.6
Investment Management	14.4		1.9		12.5
Lincoln UK	9.2		10.6		(1.4	)
Corporate and Other	(38.6	)	(32.5	)	(6.1	)
Income before Tax and Cumulative Effect of Accounting Changes	208.6		35.4		173.2
Pre-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	(9.4	)	(77.8	)	68.4
Life Insurance	(3.9	)	(13.2	)	9.2
Investment Management	(2.3	)	(0.4	)	(1.9	)
Lincoln UK	(0.4	)	(0.0	)	(0.3	)
Corporate and Other	0.1		(0.0	)	0.2
Pre-Tax Realized Gains (Losses) on Investments and Derivatives	(15.9	)	(91.4	)	75.6
After-Tax Realized Gains (Losses) by Segment*
Lincoln Retirement	(6.1	)	(50.5	)	44.4
Life Insurance	(2.6	)	(8.6	)	6.0
Investment Management	(1.5	)	(0.3	)	(1.2	)
Lincoln UK	(0.3	)	(0.0	)	(0.2	)
Corporate and Other	0.1		(0.0	)	0.1
After-Tax Realized Gains (Losses) on Investments and Derivatives	(10.3	)	(59.4	)	49.1

* Includes both realized gains (losses) on investments and gains (losses) on derivatives.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 4

Financial Highlights

Unaudited [Millions of Dollars]

	As of
	March 2004 Amount		December 2003 Amount		Change		% Change
Consolidated Condensed Balance Sheets
Assets:
Investments:
Available for Sale Securities:
Fixed Maturities	33,666.6		32,769.5		897.1		2.7	%
Equities	197.5		199.1		(1.5	)	(0.8	)%
Trading Securities	3,191.3		3,120.1		71.2		2.3	%
Mortgage Loans on Real Estate	3,988.5		4,195.0		(206.6	)	(4.9	)%
Real Estate	104.8		112.9		(8.1	)	(7.2	)%
Policy Loans	1,876.7		1,924.4		(47.7	)	(2.5	)%
Other Long-Term Investments	476.3		456.7		19.6		4.3	%
Total Investments	43,501.7		42,777.6		724.0		1.7	%
Assets Held in Separate Accounts	48,557.9		46,565.2		1,992.8		4.3	%
Other Assets	17,810.3		17,402.1		408.2		2.3	%
Total Assets	109,869.9		106,744.9		3,125.0		2.9	%
Liabilities and Shareholders’ Equity
Liabilities:
Insurance and Investment Contract Liabilities	47,572.3		47,318.1		254.3		0.5	%
Liabilities Related to Separate Accounts	48,557.9		46,565.2		1,992.8		4.3	%
Other Liabilities	7,596.1		7,050.0		546.1		7.7	%
Total Liabilities	103,726.4		100,933.2		2,793.1		2.8	%
Shareholders’ Equity:
Net Unrealized Gains on Securities and Derivatives	1,067.0		815.1		251.8		30.9	%
Minimum Pension Liability Adjustment	(56.6	)	(55.1	)	(1.5	)	(2.7	)%
Foreign Currency Translation Adjustment	128.9		109.0		19.9		18.3	%
Other Shareholders’ Equity	5,004.2		4,942.6		61.7		1.2	%
Total Shareholders’ Equity	6,143.5		5,811.6		331.9		5.7	%
Total Liabilities and Shareholders’ Equity	109,869.9		106,744.9		3,125.0		2.9	%
	As of
	March 2004 Amount		December 2003 Amount		Change		% Change
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	3,147.1		2,939.7		207.4		7.1	%
Deferral	198.7		658.7		(460.0	)	(69.8	)%
Amortization	(108.8	)	(337.2	)	228.3		67.7	%
Included in Total Benefits and Expenses	89.9		321.6		(231.7	)	(72.0	)%
Adjustment related to realized (gains) losses on available-for-sale securities	(17.6	)	(50.2	)	32.5		64.8	%
Adjustment related to unrealized (gains) losses on available-for-sale securities	(201.0	)	(126.1	)	(74.9	)	(59.4	)%
Foreign currency translation adjustment	19.9		62.0		(42.1	)	(67.9	)%
Cumulative effect of accounting change	(39.3	)	—		(39.3	)
Balance at end-of-period	2,999.0		3,147.1		(148.1	)	(4.7	)%
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	1,196.5		1,250.1		(53.6	)	(4.3	)%
Amortization	(24.8	)	(80.2	)	55.4		69.1	%
Foreign currency translation adjustment	8.9		26.6		(17.7	)	(66.7	)%
Cumulative effect of accounting change	(0.6	)
Balance at end-of-period	1,180.0		1,196.5		(16.5	)	(1.4	)%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 5

Eleven-Year Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Year Ended December 31	2003			2002			2001			2000			1999			1998			1997			1996			1995			1994			1993			Ten-year compound annual growth
Revenue
Lincoln Retirement		2,054.7			1,787.7			1,968.3			2,133.7			2,115.8			2,068.1			2,023.0			1,805.0			1,877.1			1,506.2			1,603.8		2.5	%
Life Insurance		1,905.5			1,785.0			1,840.6			1,819.0			1,760.4			1,378.5			544.8			549.2			514.9			466.2			477.5		14.8	%
Investment Management		474.4			413.1			451.2			513.7			514.9			509.6			459.1			410.5			290.5
Lincoln UK		273.5			277.2			290.7			433.8			446.6			439.7			427.3			393.2			351.5			216.0			174.9		4.6	%
Corporate & Other		575.8			372.4			1,827.3			1,946.9			1,966.0			1,691.1			1,444.3			1,575.6			1,552.5			1,744.1			2,680.9
Total Revenue		5,283.9			4,635.5			6,378.0			6,847.1			6,803.7			6,087.1			4,898.5			4,733.6			4,586.5			3,932.5			4,937.1		0.7	%
Net Income
Lincoln Retirement		300.5			53.7			265.1			354.7			291.5			273.8			263.3			204.3			248.8			142.4			127.1		9.0	%
Life Insurance		252.1			206.1			229.3			246.0			211.5			127.5			39.1			51.8			40.6			34.2			37.8		20.9	%
Investment Management		30.2			(1.4	)		(9.0	)		17.9			51.6			44.4			25.1			25.0			27.4
Lincoln UK		42.9			37.7			66.8			(15.1	)		(18.2	)		71.7			(106.8	)		66.0			45.7			18.5			12.6
Corporate & Other		(113.7	)		(247.3	)		(6.6	)		(18.2	)		(76.1	)		(7.6	)		(198.4	)		9.3			(61.0	)		(29.6	)		(101.1	)
Total Net Inc from Cont Oper		511.9			48.8			545.7			585.3			460.4			509.8			22.2			356.4			301.4			165.5			76.4		21.0	%
Discontinued Operations		—			—			—			—			—			—			911.8			157.2			180.8			184.4			242.5
Total Net Income		511.9			48.8			545.7			585.3			460.4			509.8			934.0			513.6			482.2			349.9			318.9		4.8	%
Income from Operations
Lincoln Retirement		331.9			183.4			316.2			358.1			299.4			262.4			223.0			174.6			175.2			142.4			127.1		10.1	%
Life Insurance		264.5			269.0			275.3			256.7			212.0			149.2			39.9			41.2			35.4			34.2			37.8		21.5	%
Investment Management		34.5			1.8			(6.1	)		25.0			61.0			43.9			18.1			18.6			20.6
Lincoln UK		43.6			34.6			58.1			59.2			(13.9	)		70.9			(108.3	)		66.0			45.9			17.2			11.9		13.9	%
Corporate & Other		(81.8	)		(57.2	)		1.0			(16.0	)		(83.1	)		4.0			(223.3	)		(1.7	)		(136.2	)		24.8			20.8
Total Income from Cont Oper		592.8			431.6			644.4			683.0			475.5			530.4			(50.6	)		298.8			140.8			218.6			197.6		11.6	%
Discontinued Operations		—			—			—			—			—			—			110.1			135.3			165.6			171.1			145.9
Income from Operations		592.8			431.6			644.4			683.0			475.5			530.4			59.4			434.1			306.5			389.7			343.5		5.6	%
OTHER DATA
Assets		106,744.9			93,184.6			98,041.6			99,870.6			103,095.7			93,836.3			77,174.7			71,713.4			63,257.7			48,864.8			47,825.1		8.4	%
Shareholders’ Equity
Including AOCI		5,811.6			5,347.5			5,303.8			4,980.6			4,263.9			5,387.9			4,982.9			4,470.0			4,378.1			3,042.1			4,072.3		3.6	%
Excluding AOCI		4,942.6			4,612.9			5,130.6			4,946.6			4,699.5			4,785.5			4,500.7			3,990.6			3,669.2			3,353.1			3,157.6		4.6	%
Average Equity (excluding AOCI)		4,756.7			4,983.3			5,057.1			4,831.4			4,786.2			4,636.3			4,172.7			3,851.7			3,400.3			3,288.6			3,009.0		4.7	%
Common Shares Outstanding (millions)
End of - Period - Diluted		180.7			178.5			189.3			193.2			197.0			203.4			204.7			209.5			210.3			208.3			208.3
Average for the Period - Diluted		179.4			184.6			191.5			193.0			200.4			203.3			208.0			208.0			210.7			208.7			206.1
Per Share Data (Diluted)
Net Income from Continuing Operations	$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	0.11		$	1.71		$	1.43		$	0.79		$	0.37		22.6	%
Net Income	$	2.85		$	0.26		$	2.85		$	3.03		$	2.30		$	2.51		$	4.49		$	2.47		$	2.29		$	1.68		$	1.55		6.3	%
Income (Loss) from Continuing Operations	$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		($	0.24	)	$	1.44		$	0.67		$	1.05		$	0.96		13.2	%
Income from Operations	$	3.30		$	2.34		$	3.37		$	3.54		$	2.37		$	2.61		$	0.29		$	2.09		$	1.45		$	1.87		$	1.67		7.1	%
Shareholders’ Equity Per Share
Shareholders’ Equity (Including AOCI)	$	32.56		$	30.10		$	28.32		$	26.05		$	21.76		$	26.59		$	24.63		$	21.50		$	20.95		$	14.67		$	19.69		5.2	%
Shareholders’ Equity (Excluding accum AOCI)	$	27.69		$	25.97		$	27.39		$	25.88		$	23.98		$	23.62		$	22.25		$	19.19		$	17.55		$	16.17		$	15.27		6.1	%
Dividends Declared (Common Stock)	$	1.36		$	1.30		$	1.24		$	1.18		$	1.12		$	1.06		$	1.00		$	0.94		$	0.875		$	0.830		$	0.775		5.7	%
Return on Equity
Net Income/Average Equity		10.8	%		1.0	%		10.8	%		12.1	%		9.6	%		11.0	%		22.4	%		13.3	%		15.5	%		10.6	%		10.6	%
Inc from Operations/Average Equity		12.5	%		8.7	%		12.7	%		14.1	%		9.9	%		11.4	%		1.4	%		11.3	%		9.8	%		11.8	%		11.4	%
Market Value of Common Stock
High for the Year	$	41.32		$	53.65		$	52.75		$	56.38		$	57.50		$	49.44		$	39.06		$	28.50		$	26.88		$	22.19		$	24.13
Low for the Year	$	24.73		$	25.15		$	38.00		$	22.63		$	36.00		$	33.50		$	24.50		$	20.38		$	17.31		$	17.31		$	17.34
Close for the Year	$	40.37		$	31.58		$	48.57		$	47.31		$	40.00		$	40.91		$	39.06		$	26.25		$	26.88		$	17.50		$	21.75		6.4	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 6

Quarterly Summary

Unaudited [Millions of Dollars, except Common Share Data]

For the Quarter Ended	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004
Revenue
Lincoln Retirement		453.0			442.6			440.7			451.4			397.8			486.4			536.3			634.2			516.5
Life Insurance		423.9			439.8			441.6			479.6			457.5			474.0			468.9			505.0			479.2
Investment Management		107.3			106.1			97.5			102.2			102.1			116.4			121.7			134.3			132.9
Lincoln UK		53.2			80.5			91.8			51.8			68.9			60.2			67.3			77.1			75.8
Corporate & Other		88.5			88.5			91.8			103.6			73.0			76.1			74.8			351.9			54.7
Total Revenue		1,126.0			1,157.5			1,163.4			1,188.6			1,099.3			1,213.2			1,268.8			1,702.6			1,259.0
Net Income
Lincoln Retirement		46.6			9.2			(7.0	)		5.0			6.9			81.7			102.0			109.9			71.8
Life Insurance		43.5			56.7			46.4			59.5			48.5			65.6			55.8			82.2			67.5
Investment Management		2.1			(0.8	)		(3.9	)		1.1			1.0			4.6			6.3			18.2			10.0
Lincoln UK		10.3			9.3			0.2			17.9			6.8			12.4			11.5			12.2			5.9
Corporate & Other		(16.8	)		(25.8	)		(172.1	)		(32.6	)		(21.7	)		(21.6	)		(42.4	)		(28.1	)		(24.8	)
Total Net Income		85.6			48.5			(136.4	)		51.0			41.6			142.7			133.3			194.3			130.5
Income from Operations
Lincoln Retirement		79.4			46.8			21.8			35.4			57.4			86.1			94.3			94.1			102.2
Life Insurance		70.4			72.8			62.7			63.1			60.7			71.8			58.7			73.4			74.8
Investment Management		3.1			(0.3	)		(3.0	)		2.1			1.3			4.5			9.7			19.0			12.5
Lincoln UK		13.8			6.1			(0.6	)		15.3			6.8			12.4			11.3			13.0			6.2
Corporate & Other		(13.6	)		(8.9	)		(18.8	)		(15.9	)		(21.5	)		(21.5	)		(18.0	)		(20.8	)		(20.3	)
Income from Operations		153.1			116.4			62.1			100.0			104.8			153.3			156.0			178.7			175.3
OTHER DATA
Assets		97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9			109,869.9
Shareholders’ Equity
Beg of Period (including AOCI)		5,303.8			5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4			5,811.6
End of Period (including AOCI)		5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4			5,811.6			6,143.5
End of Period (excluding AOCI)		5,174.7			5,020.3			4,591.8			4,612.9			4,610.5			4,699.8			4,790.6			4,942.6			5,004.2
Average Equity (excluding AOCI)		5,179.8			5,165.8			4,944.0			4,643.6			4,682.0			4,672.0			4,784.5			4,888.2			5,016.8
Common Shares Outstanding
Average for the Period - Diluted		190.0			188.5			183.2			178.4			178.3			179.2			179.9			180.4			181.2
End of Period - Diluted		190.2			186.1			178.2			178.5			178.4			179.5			179.9			180.7			181.4
Per Share Data (Diluted)
Net Income	$	0.45		$	0.26		($	0.74	)	$	0.29		$	0.23		$	0.80		$	0.74		$	1.08		$	0.72
Income from Operations	$	0.81		$	0.62		$	0.34		$	0.56		$	0.59		$	0.86		$	0.87		$	0.99		$	0.97
Shareholders’ Equity Per Share
Shareholders’ Equity (including AOCI)		27.53			29.01			30.64			30.10			30.66			32.68			31.34			32.56			34.36
Shareholders’ Equity (excluding AOCI)		27.54			27.21			25.87			25.97			25.94			26.41			26.87			27.69			27.99
Dividends Declared (Common Stock)		0.320			0.320			0.320			0.335			0.335			0.335			0.335			0.350			0.350
Return on Equity
Net Income/Average Equity		6.6	%		3.8	%		(11.0	%)		4.4	%		3.6	%		12.2	%		11.1	%		15.9	%		10.4	%
Inc from Operations/Average Equity		11.8	%		9.0	%		5.0	%		8.6	%		8.9	%		13.1	%		13.0	%		14.6	%		14.0	%
Market Value of Common Stock
Highest Price	$	53.650		$	52.540		$	42.080		$	35.950		$	35.700		$	37.500		$	38.640		$	41.320		$	48.870
Lowest Price	$	47.200		$	40.750		$	29.120		$	25.150		$	24.730		$	27.870		$	34.630		$	35.410		$	40.060
Closing Price	$	50.730		$	42.000		$	30.550		$	31.580		$	28.000		$	35.630		$	35.380		$	40.370		$	47.320

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 7

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended March 31	Lincoln Retirement				Life Insurance				Investment Management				Lincoln UK
	Mar 2004		Mar 2003		Mar 2004		Mar 2003		Mar 2004		Mar 2003		Mar 2004		Mar 2003
Revenue
Life and annuity premiums	6.5		5.5		47.8		47.8						17.6		12.0
Surrender charges	5.9		6.9		13.8		11.4
Mortality assessments					128.5		129.7						9.6		9.1
Expense assessments	137.3		97.6		49.8		48.3						24.2		21.6
Health premiums													0.5		0.7
Investment advisory fees									89.3		68.3
Other revenue and fees	(0.8	)	(1.4	)	7.8		5.8		33.7		22.0		5.8		10.3
Net investment income	379.0		367.0		235.7		227.6		12.2		12.1		18.5		15.2
Realized gains (losses) on investments	(5.7	)	(76.8	)	(3.9	)	(12.7	)	(2.3	)	(0.4	)	(0.4	)	(0.0	)
Gains (losses) on derivatives	(3.7	)	(1.0	)	(0.0	)	(0.5	)
Gain (loss) on reins. derivative/trading account securities	(2.1	)			(0.3	)
Total Revenue	516.5		397.8		479.2		457.5		132.9		102.1		75.8		68.9
Operating Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	54.1		65.0		97.4		103.8						25.8		16.2
Div accum & div to policyholders					18.5		14.4
Interest credited to policy bal.	207.8		220.1		144.8		150.1
Health policy benefits													3.2		2.0
Def. sales inducements net of amortization	(9.0	)	(3.3	)
Total insurance benefits	252.8		281.8		260.7		268.3						29.0		18.2
Underwriting, acquisition, insurance and other expenses:
Commissions	102.9		66.8		31.4		32.4						0.6		1.1
Other volume related expenses	38.8		14.0		46.5		54.2
Operating and administrative expenses	51.7		54.0		38.5		40.6		111.1		95.2		23.0		18.3
Restructuring charges	1.8				2.7		5.5		1.5
Taxes, licenses and fees	5.2		5.7		12.4		14.4		3.9		3.0
Subtotal	200.5		140.4		131.6		147.1		116.5		98.2		23.5		19.4
Deferral of acquisition costs	(101.9	)	(43.6	)	(83.7	)	(91.0	)					(1.5	)	(0.8	)
DAC amortization	41.5		30.1		48.7		47.0						12.5		18.6
DAC deferral net of amortization	(60.4	)	(13.5	)	(35.0	)	(44.0	)					11.0		17.7
PVIF amortization	3.3		2.3		18.5		17.4						3.0		3.0
Other intangibles amortization									2.0		2.0
Total underwriting, acquisition, insurance and other expenses	143.4		129.2		115.1		120.5		118.5		100.2		37.6		40.1
Interest
Benefits and Expenses	396.2		411.0		375.8		388.8		118.5		100.2		66.6		58.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	120.3		(13.3	)	103.4		68.7		14.4		1.9		9.2		10.6
Federal income taxes	26.7		(20.1	)	33.1		20.2		4.3		0.8		3.2		3.8
Income Before Cumulative Effect of Accounting Change	93.6		6.9		70.3		48.5		10.0		1.0		5.9		6.8
Cumulative effect of accounting change	(21.8	)			(2.7	)
Net Income	71.8		6.9		67.5		48.5		10.0		1.0		5.9		6.8
Less:
Restructuring charges	(1.2	)			(1.8	)	(3.6	)	(1.0	)
Realized gains (losses) on investments	(3.7	)	(50.3	)	(2.6	)	(8.1	)	(1.5	)	(0.3	)	(0.3	)	(0.0	)
Gains (losses) on derivatives	(2.4	)	(0.2	)	(0.0	)	(0.5	)
Net gain (loss) on reinsurance derivative/trading account securities	(1.4	)			(0.2	)
Reserve development on business sold through reinsurance/ amortization of deferred gain
Cumulative effect of accounting change	(21.8	)			(2.7	)
Income from Operations	102.2		57.4		74.8		60.7		12.5		1.3		6.2		6.8

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

Reconciliation of Business Segments to Consolidated Income Statement

Unaudited [Millions of Dollars]

For the Quarter Ended March 31	Corporate and Other Operations				Consolidating Adjustments				Consolidated
	Mar 2004		Mar 2003		Mar 2004		Mar 2003		Mar 2004		Mar 2003
Revenue
Life and annuity premiums									72.0		65.3
Surrender charges					0.5		0.6		20.2		18.9
Mortality assessments	(0.1	)							137.9		138.9
Expense assessments	0.1		0.0		14.1		9.6		225.5		177.1
Health premiums	3.0		2.3						3.6		3.0
Investment advisory fees					(26.5	)	(24.1	)	62.7		44.2
Amortization of deferred gain	17.9		18.4						17.9		18.4
Amortization of deferred gain-reserve development	0.3		(0.2	)					0.3		(0.2	)
Other revenue and fees	150.1		105.5		(135.2	)	(71.6	)	61.4		70.6
Net investment income	32.6		33.6		(0.5	)	(1.0	)	677.5		654.6
Realized gains (losses) on investments	0.3		0.4						(12.0	)	(89.6	)
Gains (losses) on derivatives	(0.2	)	(0.4	)					(3.8	)	(1.9	)
Gain (loss) on reins. derivative/trading account securities	(1.9	)							(4.2	)
Total Revenue	202.2		159.5		(147.5	)	(86.5	)	1,259.0		1,099.3
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	2.7		2.0						179.9		187.1
Div accum & div to policyholders									18.5		14.4
Interest credited to policy bal.	31.2		32.5		6.6		6.6		390.4		409.3
Health policy benefits	0.3		0.3						3.5		2.3
Reserve developments on Reins. business sold
Def. sales inducements net of amortization									(9.0	)	(3.3	)
Total insurance benefits	34.2		34.8		6.6		6.6		583.3		609.7
Underwriting, acquisition, insurance and other expenses:
Commissions	23.7		18.2		10.5		7.3		169.1		125.7
Other volume related expenses	55.5		51.1		(31.0	)	(47.7	)	109.9		71.5
Operating and administrative expenses	90.6		56.0		(127.5	)	(46.3	)	187.4		217.8
Restructuring charges	5.5								11.5		5.5
Taxes, licenses and fees	8.0		7.6						29.5		30.6
Subtotal	183.3		132.9		(148.0	)	(86.8	)	507.4		451.2
Deferral of acquisition costs					(11.7	)	(8.8	)	(198.7	)	(144.3	)
DAC amortization	0.1		0.1		6.1		3.5		108.8		99.2
DAC deferral net of amortization	0.1		0.1		(5.6	)	(5.3	)	(89.9	)	(45.1	)
PVIF amortization									24.8		22.7
Other intangibles amortization									2.0		2.0
Total underwriting, acquisition, insurance and other expenses	183.4		132.9		(153.6	)	(92.1	)	444.3		430.8
Interest	23.3		24.3		(0.5	)	(1.0	)	22.8		23.3
Total Benefits and Expenses	240.8		192.0		(147.5	)	(86.5	)	1,050.4		1,063.9
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	(38.6	)	(32.5	)	(0.0	)	0.0		208.6		35.4
Federal income taxes	(13.7	)	(10.8	)					53.7		(6.1	)
Income Before Cumulative Effect of Accounting Change	(24.8	)	(21.7	)	(0.0	)	0.0		155.0		41.6
Cumulative effect of accounting change									(24.5	)
Net Income	(24.8	)	(21.7	)	(0.0	)	0.0		130.5		41.6
Less:
Restructuring charges	(3.6	)							(7.5	)	(3.6	)
Realized gains (losses) on investments	0.2		0.5						(7.9	)	(58.2	)
Gains (losses) on derivatives	(0.1	)	(0.5	)					(2.5	)	(1.2	)
Net gain (loss) on reinsurance derivative/trading account securities	(1.2	)							(2.7	)
Reserve development on business sold through reinsurance/ amortization of related deferred gain	0.2		(0.1	)					0.2		(0.1	)
Cumulative effect of accounting change									(24.5	)
Income from Operations	(20.3	)	(21.5	)	(0.0	)	0.0		175.3		104.8

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 8

3/31/2004 PAGE 9

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Life and annuity premiums	1,183.0		1,403.3		1,363.4		295.6		277.0
Surrender charges	110.2		114.7		101.5		87.8		84.7
Mortality assessments	496.4		496.5		533.3		530.3		550.5
Expense assessments	896.0		1,013.1		880.1		792.7		782.3
Health premiums	698.5		409.8		340.6		20.3		4.0
Investment advisory fees	223.8		213.1		197.2		183.3		205.0
Amortization of deferred gain					20.4		75.2		72.3
Amortization of deferred gain-reserve development							(0.8	)	3.6
Other revenue and fees	344.5		441.1		328.7		299.5		309.7
Net investment income	2,842.5		2,784.1		2,708.7		2,631.9		2,638.5
Earnings in unconsolidated affiliates	5.8		(0.4	)	5.7		(0.6	)
Realized gains (losses) on investments	3.0		(28.3	)	(92.4	)	(280.9	)	(16.7	)
Gains (losses) on derivatives					(9.3	)	1.2		(2.5	)
Gain (loss) on reinsurance derivative/trading account securities									4.1
Mark-to-market adjustment on reclassification from AFS to trading account securities									371.5
Total Revenue	6,803.7		6,847.1		6,378.0		4,635.5		5,283.9
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	1,546.6		1,546.4		1,517.9		811.3		683.7
Div accum & div to policyholders	88.4		87.6		83.7		76.0		81.6
Interest credited to policy bal.	1,510.4		1,474.2		1,506.0		1,617.1		1,617.0
Health policy benefits	659.7		449.0		302.1		49.7		14.1
Reserve developments on reins. business sold							305.4		32.1
Def. sales inducements net of amortization					(12.1	)	(12.6	)	(14.1	)
Total insurance benefits	3,805.0		3,557.2		3,397.7		2,846.9		2,414.4
Underwriting, acquisition, insurance and other expenses:
Commissions	961.0		919.1		860.3		579.4		576.1
Other volume related expenses	197.1		253.8		184.8		256.8		328.4
Operating and administrative expenses	1,165.3		1,208.4		1,114.5		928.0		894.4
Restructuring charges	27.4		104.9		38.0		(2.2	)	53.8
Loss on early retirement of subordinated debt									5.6
Taxes, licenses and fees	77.9		107.5		122.9		106.8		107.4
Par policyholder interests	3.3		1.1
Foreign exchange	1.9		(2.9	)	(1.4	)	0.3		(0.0	)
Subtotal	2,433.8		2,592.0		2,319.1		1,869.0		1,965.8
Deferral of acquisition costs					(701.0	)	(612.4	)	(639.6	)
DAC amortization					366.8		344.4		318.0
DAC deferral net of amortization	(314.6	)	(427.5	)	(334.2	)	(268.0	)	(321.6	)
PVIF amortization	102.5		132.6		113.1		136.5		80.2
Other intangibles amortization	18.0		17.7		12.1		8.2		7.9
Total underwriting, acquisition, insurance and other expenses	2,239.7		2,314.9		2,110.1		1,745.8		1,732.4
Goodwill amortization	49.2		45.1		43.4
Interest	133.7		139.5		121.0		96.6		89.5
Total Benefits and Expenses	6,227.6		6,056.7		5,672.1		4,689.3		4,236.3
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	576.1		790.5		705.9		(53.8	)	1,047.6
Federal income taxes	115.7		205.2		144.7		(102.6	)	280.4
Income Before Cumulative Effect of Accounting Change	460.4		585.3		561.2		48.8		767.2
Cumulative effect of accounting change					(15.6	)			(255.2	)
Net Income	460.4		585.3		545.7		48.8		511.9
Less:
Restructuring charges	(18.9	)	(80.2	)	(24.7	)	2.0		(35.0	)
Realized gains (losses) on investments	3.8		(17.5	)	(68.7	)	(177.2	)	(11.0	)
Gains (losses) on derivatives					(4.9	)	0.8		(1.6	)
Net gain (loss) on reinsurance derivative/trading account securities									2.7
Reserve development on business sold through reinsurance/ amortization of deferred gain							(199.1	)	(18.5	)
Gain on sale of subsidiaries					15.0		(9.4	)
Loss on early retirement of subordinated debt									(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities									241.5
Cumulative effect of accounting change					(15.6	)			(255.2	)
Income from Operations	475.5		683.0		644.4		431.6		592.8
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year					3,070.5		2,866.8		2,939.7
Deferral					701.0		612.4		639.6
Amortization					(366.8	)	(344.4	)	(318.0	)
Included in Total Benefits and Expenses					334.2		268.0		321.6
Adjustment related to realized (gains) losses on available-for-sale securities					112.9		115.0		(50.2	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(187.2	)	(338.6	)	(126.1	)
Foreign currency translation adjustment					(16.0	)	56.9		62.0
Disposition of business					(425.9	)
Other					(21.7	)	(28.4	)
Balance at end-of-year					2,866.7		2,939.8		3,147.1
Roll Forward of Present Value of In-Force
Balance at beginning-of-year					1,483.3		1,362.5		1,250.1
Amortization					(113.1	)	(136.5	)	(80.2	)
Foreign currency translation adjustment					(7.0	)	24.1		26.6
Other					(0.7	)
Balance at end-of-year					1,362.5		1,250.1		1,196.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 10

Statement of Consolidated Income

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue
Life and annuity premiums	74.7		68.7		71.6		80.7		65.3		65.9		69.1		76.6		72.0
Surrender charges	20.2		21.3		22.8		23.5		18.9		21.3		21.5		23.0		20.2
Mortality assessments	130.4		130.5		134.1		135.3		138.9		135.6		137.9		138.1		137.9
Expense assessments	203.9		208.0		193.2		187.6		177.1		190.9		198.5		215.9		225.5
Health premiums	2.4		8.3		(9.6	)	19.1		3.0		0.1		0.4		0.5		3.6
Investment advisory fees	48.0		47.8		42.9		44.7		44.2		49.4		53.2		58.3		62.7
Amortization of deferred gain	24.2		22.0		22.1		6.9		18.4		18.2		18.3		17.4		17.9
Amortization of deferred gain-reserve development					(1.4	)	0.5		(0.2	)	(0.2	)	3.7		0.3		0.3
Other revenue and fees	70.8		75.1		72.1		81.5		70.6		74.5		82.9		81.7		61.4
Net investment income	654.8		657.4		652.4		667.3		654.6		660.2		664.4		659.2		677.5
Earnings in unconsolidated affiliates			(0.6	)
Realized gains (losses) on investments	(103.5	)	(81.5	)	(37.1	)	(58.9	)	(89.6	)	(1.7	)	9.8		64.8		(12.0	)
Gains (losses) on derivatives	0.1		0.4		0.3		0.3		(1.9	)	(1.0	)	9.1		(8.8	)	(3.8	)
Gain (loss) on reinsurance derivative/trading account securities															4.1		(4.2	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															371.5
Total Revenue	1,126.0		1,157.5		1,163.4		1,188.6		1,099.3		1,213.2		1,268.8		1,702.6		1,259.0
Benefits and Expenses
Ins. benefits paid or provided:
Life and annuity policy benefits	176.1		191.5		229.7		214.0		187.1		155.1		227.1		114.5		179.9
Div accum & div to policyholders	17.8		18.2		17.2		22.8		14.4		17.6		15.9		33.8		18.5
Interest credited to policy bal.	406.2		382.5		417.4		411.1		409.3		406.3		405.6		395.7		390.4
Health policy benefits	3.3		33.9		7.3		5.1		2.3		14.2		(41.5	)	39.1		3.5
Reserve developments on reins. business sold			22.2		270.0		13.2						32.1
Def. sales inducements net of amortization	(3.0	)	(3.5	)	(2.9	)	(3.2	)	(3.3	)	(2.4	)	(2.8	)	(5.6	)	(9.0	)
Total insurance benefits	600.4		644.9		938.7		663.0		609.7		590.8		636.4		577.5		583.3
Underwriting, acquisition, insurance and other expenses:
Commissions	144.2		148.6		124.6		162.0		125.7		132.9		144.1		173.5		169.1
Other volume related expenses	54.7		65.5		63.9		72.6		71.5		65.4		90.5		101.0		109.9
Operating and administrative expenses	220.7		219.4		228.1		259.7		217.8		235.5		209.8		231.4		187.4
Restructuring charges			1.6		(2.1	)	(1.7	)	5.5		13.5		19.8		15.0		11.5
Loss on early retirement of subordinated debt													5.6
Taxes, licenses and fees	36.6		23.5		24.1		22.6		30.6		23.1		26.4		27.3		29.5
Foreign exchange	0.0		0.6		0.4		(0.6	)	(0.0	)
Subtotal	456.2		459.2		439.1		514.6		451.2		470.3		496.2		548.1		507.4
Deferral of acquisition costs	(144.6	)	(152.0	)	(152.4	)	(163.4	)	(144.3	)	(136.9	)	(160.9	)	(197.4	)	(198.7	)
DAC amortization	70.1		100.0		112.9		61.5		99.2		62.8		65.9		90.1		108.8
DAC deferral net of amortization	(74.5	)	(52.1	)	(39.5	)	(101.9	)	(45.1	)	(74.2	)	(95.0	)	(107.3	)	(89.9	)
PVIF amortization	21.3		31.9		40.2		43.0		22.7		13.6		29.6		14.4		24.8
Other intangibles amortization	2.2		2.0		2.0		2.0		2.0		2.0		2.0		2.0		2.0
Total underwriting, acquisition, insurance and other expenses	405.2		441.0		441.8		457.7		430.8		411.7		432.8		457.1		444.3
Interest	24.8		24.6		23.7		23.5		23.3		23.0		21.0		22.2		22.8
Total Benefits and Expenses	1,030.4		1,110.5		1,404.1		1,144.2		1,063.9		1,025.5		1,090.2		1,056.8		1,050.4
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	95.5		46.9		(240.7	)	44.4		35.4		187.7		178.7		645.7		208.6
Federal income taxes	9.9		(1.6	)	(104.3	)	(6.6	)	(6.1	)	45.0		45.4		196.2		53.7
Income Before Cumulative Effect of Accounting Change	85.6		48.5		(136.4	)	51.0		41.6		142.7		133.3		449.6		155.0
Cumulative effect of accounting change															(255.2	)	(24.5	)
Net Income	85.6		48.5		(136.4	)	51.0		41.6		142.7		133.3		194.3		130.5
Less:
Restructuring charges			(1.0	)	1.3		1.7		(3.6	)	(8.8	)	(12.9	)	(9.8	)	(7.5	)
Realized gains (losses) on investments	(67.6	)	(52.7	)	(23.6	)	(33.3	)	(58.2	)	(1.1	)	6.4		42.0		(7.9	)
Gains (losses) on derivatives	0.1		0.3		0.1		0.2		(1.2	)	(0.6	)	5.9		(5.7	)	(2.5	)
Net gain on Reinsurance derivative/trading account securities															2.7		(2.7	)
Reserve development on business sold through reinsurance/ amortization of deferred gain			(14.4	)	(176.4	)	(8.2	)	(0.1	)	(0.1	)	(18.5	)	0.2		0.2
Gain on sale of subsidiaries							(9.4	)
Loss on early retirement of subordinated debt													(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															241.5
Cumulative effect of accounting change															(255.2	)	(24.5	)
Income from Operations	153.1		116.4		62.1		100.0		104.8		153.3		156.0		178.7		175.3
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period	2,866.8		3,093.4		3,031.6		2,840.7		2,939.7		2,884.5		2,660.3		2,879.7		3,147.1
Deferral	144.6		152.0		152.4		163.4		144.3		136.9		160.9		197.4		198.7
Amortization	(70.1	)	(100.0	)	(112.9	)	(61.5	)	(99.2	)	(62.8	)	(65.9	)	(90.1	)	(108.8	)
Included in Total Benefits and Expenses	74.5		52.1		39.5		101.9		45.1		74.2		95.0		107.3		89.9
Adjustment related to realized (gains) losses on available-for-sale securities	41.9		32.5		22.9		17.8		30.0		8.3		(60.6	)	(27.9	)	(17.6	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	114.9		(152.1	)	(267.1	)	(34.2	)	(119.4	)	(334.0	)	182.2		145.2		(201.1	)
Foreign currency translation adjustment	(12.2	)	41.7		13.8		13.7		(10.9	)	27.2		2.8		42.8		19.9
Disposition of business
Other	7.5		(35.7	)	(0.0	)	(0.0	)									(39.3	)
Balance at end-of-period	3,093.4		3,031.6		2,840.7		2,939.8		2,884.5		2,660.3		2,879.7		3,147.1		2,999.0
Roll Forward of Present Value of In-Force
Balance at beginning-of-period	1,362.5		1,336.1		1,321.4		1,286.9		1,250.1		1,223.1		1,220.8		1,192.5		1,196.5
Amortization	(21.3	)	(31.9	)	(40.2	)	(43.0	)	(22.7	)	(13.6	)	(29.6	)	(14.4	)	(24.8	)
Foreign currency translation adjustment	(5.1	)	17.4		5.7		6.1		(4.3	)	11.2		1.3		18.4		8.9
Other			(0.1	)			0.1										(0.6	)
Balance at end-of-period	1,336.1		1,321.4		1,286.9		1,250.1		1,223.1		1,220.8		1,192.5		1,196.5		1,180.0

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 11

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement				Life Insurance				Investment Management		Lincoln UK
	Mar 2004		Dec 2003		Mar 2004		Dec 2003		Mar 2004	Dec 2003	Mar 2004	Dec 2003
ASSETS
Investments
Corporate bonds	13,264.5		13,111.1		8,638.3		8,365.3		508.3	518.1	708.7	697.8
U.S. government bonds	53.8		51.8		71.5		68.8		0.0	0.0	20.3	20.0
Foreign government bonds	297.6		275.9		178.9		158.1		4.0	4.0	355.9	342.1
Asset/mortgage backed securities	3,303.1		3,168.4		1,573.9		1,390.6		77.2	65.3
State and municipal bonds	96.0		89.2		51.7		50.0		1.2	1.2
Preferred stocks-redeemable	37.5		35.4		25.5		24.0
Common stocks	—		—		0.0		0.0				47.9	50.2
Preferred stocks-equity	43.5		43.4		14.7		14.3		2.8	2.8
Total AFS Securities	17,096.1		16,775.3		10,554.6		10,071.2		593.5	591.5	1,132.8	1,110.1
Trading Securities	1,193.9		1,195.9
Mortgage loans	2,096.7		2,201.7		1,505.0		1,577.0		71.9	75.0	0.1	0.3
Real estate			—								0.2	0.2
Policy loans	441.2		446.4		1,429.0		1,471.5				6.5	6.6
Allocated investments	3,688.9		3,577.8		1,261.7		1,223.4		111.0	102.8
Other long-term investments	36.3		33.4		16.5		14.9
Total Investments	24,553.1		24,230.4		14,766.7		14,358.0		776.5	769.3	1,139.6	1,117.2
Notes receivable from LNC	408.6		271.3		219.9		202.6		39.6	45.5
Cash and invested cash	(60.1	)	(120.2	)	(45.1	)	(25.4	)	80.5	89.1	169.5	160.2
Property and equipment	8.5		7.5		2.1		2.8		36.9	38.2	19.7	19.5
Premium and fees receivable	8.8		9.8		17.7		33.2		54.1	51.3
Accrued investment income	241.9		243.9		185.7		174.0		8.9	8.5	27.5	21.6
Assets held in separate accounts	36,017.0		34,459.0		1,848.5		1,795.8				6,528.0	6,390.3
Federal income tax recoverable
Amount recoverable from reinsurers	1,340.2		1,348.6		1,064.4		1,026.8
Deferred acquisition costs	748.7		854.6		1,534.8		1,578.3				629.6	620.7
Other intangible assets	53.9		45.2						31.9	33.9
Present value of in-force	109.4		113.2		790.1		808.6				280.5	274.7
Goodwill	64.1		64.1		855.1		855.1		300.7	300.7	15.3	14.8
Other	135.6		130.6		404.9		429.9		204.4	224.5	77.9	65.7
Total Assets	63,629.6		61,657.9		21,645.0		21,239.8		1,533.5	1,561.1	8,887.6	8,684.7
	Corporate and Other Operations				Consolidating Adjustments						Consolidated
	Mar 2004		Dec 2003		Mar 2004		Dec 2003				Mar 2004	Dec 2003
ASSETS
Investments
Corporate bonds	3,089.5		3,176.2								26,209.2	25,868.5
U.S. government bonds	88.6		85.2								234.2	225.8
Foreign government bonds	484.6		414.5								1,321.0	1,194.6
Asset/mortgage backed securities	662.8		571.4								5,617.0	5,195.6
State and municipal bonds	15.2		12.3								164.1	152.8
Preferred stocks-redeemable	57.9		72.7								120.9	132.2
Common stocks	49.4		48.1								97.4	98.4
Preferred stocks-equity	39.1		40.1								100.2	100.7
Total AFS Securities	4,487.2		4,420.5								33,864.1	32,968.6
Trading securities	1,997.4		1,924.3								3,191.3	3120.1
Mortgage loans	314.7		341.0								3,988.5	4,195.0
Real estate	104.5		112.7								104.8	112.9
Policy loans											1,876.7	1,924.4
Allocated investments	(5,061.6	)	(4,904.0	)							—	—
Other long-term investments	423.6		408.5								476.3	456.7
Total Investments	2,265.8		2,302.9		—		—				43,501.7	42,777.6
Investments In Consolidated Subs	5,242.8		5,058.0		(5,242.8	)	(5,058.0	)			—	—
Notes receivable from LNC	(519.8	)	(382.7	)	(148.3	)	(136.6	)			—	—
Cash and invested cash	2,110.7		1,607.5		—		—				2,255.5	1,711.2
Property and equipment	162.3		167.2		—		—				229.5	235.2
Premium and fees receivable	256.9		257.8		—		—				337.5	352.1
Accrued investment income	83.9		74.7		—		—				547.9	522.7
Assets held in separate accounts	—		—		4,164.4		3,920.0				48,557.9	46,565.2
Federal income tax recoverable	—		—		—		45.9				—	45.9
Amount recoverable from reinsurers	5,694.6		5,712.7		(233.6	)	(248.9	)			7,865.7	7,839.2
Deferred acquisition costs	1.7		1.8		84.2		91.8				2,999.0	3,147.1
Other intangible assets	—		—		—		—				85.8	79.1
Present value of in-force	—		—		—		—				1,180.0	1,196.5
Goodwill	—		—		—		—				1,235.2	1,234.7
Other	348.6		290.5		(97.2	)	(102.9	)			1,074.2	1,038.3
Total Assets	15,647.5		15,090.1		(1,473.3	)	(1,488.7	)			109,869.9	106,744.9

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 12

Reconciliation of Business Segments to Consolidated Balance Sheets

Unaudited [Millions of Dollars]

	Lincoln Retirement				Life Insurance				Investment Management		Lincoln UK
LIABILITIES and SHAREHOLDERS’ EQUITY	Mar 2004		Dec 2003		Mar 2004		Dec 2003		Mar 2004	Dec 2003	Mar 2004		Dec 2003
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	2,582.6		2,598.1		14,831.9		14,690.4				1,437.5		1,400.3
Health reserves					0.3		0.3				50.2		49.2
Unpaid claims - life and health	49.4		50.8		132.2		112.0				51.6		49.3
Unearned premiums					0.0		0.0
Premium deposit funds	21,094.8		21,050.4		18.5		18.4				29.4		29.5
Participating policyholders’ funds					171.1		155.1
Other policyholders’ funds					680.2		673.0
Liability related to separate accounts	36,017.0		34,459.0		1,848.5		1,795.8				6,528.0		6,390.3
Total Insurance and Inv Contract Liabilities	59,743.8		58,158.3		17,682.9		17,445.1				8,096.8		7,918.6
Federal income taxes	438.7		346.6		236.4		167.3		23.5	28.1	23.9		19.0
Notes payable to LNC	1.3		1.0				8.5
Embedded derivative - modco	111.9		85.2		(0.0	)	(0.3	)
Other liabilities	179.0		159.3		447.2		487.2		880.2	904.3	240.6		227.9
Deferred gain on indemnity reinsurance
Total Liabilities	60,474.8		58,750.4		18,366.4		18,107.8		903.7	932.3	8,361.3		8,165.5
Net unrealized gains (losses) on securities	595.7		465.6		317.5		235.1		2.9	2.9	30.1		26.8
Gains (losses) on derivatives	10.4		8.2		12.8		12.1
Foreign currency translation adjustment	—		—		—		—		1.4	1.0	109.5		90.1
Other shareholders’ equity	2,548.8		2,433.7		2,948.3		2,884.7		625.4	624.8	434.0		448.1
Minimum pension liability adjustment											(47.3	)	(45.8	)
Shareholders’ Equity	3,154.8		2,907.5		3,278.6		3,131.9		629.8	628.7	526.3		519.2
Total Liabilities and S/Hs’ Equity	63,629.6		61,657.9		21,645.0		21,239.8		1,533.5	1,561.1	8,887.6		8,684.7
	Corporate and Other Operations				Consolidating Adjustments						Consolidated
LIABILITIES and SHAREHOLDERS’ EQUITY	Mar 2004		Dec 2003		Mar 2004		Dec 2003				Mar 2004		Dec 2003
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves	2,123.4		2,123.4		(92.9	)	(93.9	)			20,882.5		20,718.3
Health reserves	2,771.5		2,782.0		—		—				2,822.1		2,831.5
Unpaid claims - life and health	848.7		848.9		(5.1	)	(2.6	)			1,076.8		1,058.4
Unearned premiums	104.3		104.5		—		—				104.3		104.5
Premium deposit funds	133.9		133.7		550.7		537.4				21,827.4		21,769.3
Participating policyholders’ funds	—		—		—		—				171.1		155.1
Other policyholders’ funds	7.9		7.9		—		—				688.1		680.9
Liability related to separate accounts	—		—		4,164.4		3,920.0				48,557.9		46,565.2
Total Insurance and Inv Contract Liabilities	5,989.6		6,000.2		4,617.1		4,360.9				96,130.3		93,883.2
Federal income taxes	(615.1	)	(607.6	)	0.8		46.7				108.1		—
Short-term debt	38.0		44.4		—		(0.4	)			38.0		44.0
Long-term debt	1,317.7		1,117.5		—		—				1,317.7		1,117.5
Junior subordinated debentures issued to affiliated trusts	344.7		341.3		—		—				344.7		341.3
Notes payable to LNC	147.5		126.8		(148.8	)	(136.2	)			—		—
Embedded derivative - modco	328.7		267.3		—		—				440.6		352.3
Other liabilities	3,392.2		3,192.3		(698.8	)	(700.9	)			4,440.4		4,270.1
Deferred gain on indemnity reinsurance	906.6		924.8		—		—				906.6		924.8
Total Liabilities	11,849.9		11,407.1		3,770.3		3,570.1				103,726.4		100,933.2
Net unrealized gains (losses) on securities	91.7		57.5		(0.0	)	5.2				1,038.0		793.1
Gains (losses) on derivatives	5.8		1.8		—		—				29.0		22.1
Foreign currency translation adjustment	10.4		10.4		7.5		7.5				128.9		109.0
Other shareholders’ equity	3,698.9		3,622.6		(5,251.1	)	(5,071.5	)			5,004.2		4,942.6
Minimum pension liability adjustment	(9.3	)	(9.3	)	—		—				(56.6	)	(55.1	)
Shareholders’ Equity	3,797.6		3,683.1		(5,243.6	)	(5,058.8	)			6,143.5		5,811.6
Total Liabilities and S/Hs’ Equity	15,647.5		15,090.1		(1,473.3	)	(1,488.7	)			109,869.9		106,744.9

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 13

Five Year Comparative Balance Sheet

Unaudited [Millions of Dollars except Common Share Data]

	1999			2000		2001			2002			2003
ASSETS
Investments
Corporate bonds		21,119.5			21,249.7		23,105.1			25,934.7			25,868.5
U.S. government bonds		538.3			542.9		410.5			513.6			225.8
Foreign government bonds		1,447.5			1,321.1		1,174.7			1,110.2			1,194.6
Mortgage backed securities		4,404.0			4,160.4		3,524.7			5,015.5			5,195.6
State and municipal bonds		14.7			14.6		44.7			114.4			152.8
Preferred stocks-redeemable		164.7			161.2		85.9			79.0			132.2
Common stocks		514.5			436.6		319.3			228.0			98.4
Preferred stocks-equity		89.5			113.1		151.2			109.2			100.7
Total AFS Securities		28,292.6			27,999.5		28,816.1			33,104.7			32,968.6
Trading securities													3,120.1
Mortgage loans		4,735.4			4,663.0		4,535.5			4,205.5			4,195.0
Real estate		256.2			282.0		267.9			279.7			112.9
Policy loans		1,892.4			1,960.9		1,939.7			1,945.6			1,924.4
Other long-term investments		401.8			463.3		553.8			464.4			456.7
Total Investments		35,578.4			35,368.6		36,113.1			39,999.9			42,777.6
Invest in unconsol affiliates		25.8			6.4		8.1
Cash and invested cash		1,895.9			1,927.4		3,095.5			1,690.5			1,711.2
Property and equipment		203.8			228.2		257.5			242.1			235.2
Premiums and fees receivable		259.6			296.7		400.1			212.9			352.1
Accrued investment income		533.2			546.4		563.5			536.7			522.7
Assets held in separate accounts		53,654.2			50,579.9		44,833.4			36,178.3			46,565.2
Federal income taxes recoverable		345.0			234.1		55.5			317.7			45.9
Amounts recoverable from reinsurers		3,954.3			3,747.7		6,030.4			7,280.0			7,839.2
Deferred acquisition costs		2,800.3			3,070.5		2,866.8			2,939.7			3,147.1
Other intangible assets		92.3			73.7		68.6			73.0			79.1
Present value of in-force		1,654.2			1,483.3		1,362.5			1,250.1			1,196.5
Goodwill		1,423.0			1,286.0		1,211.8			1,233.2			1,234.7
Other		675.7			1,021.6		1,174.9			1,230.3			1,038.3
Total Assets		103,095.7			99,870.6		98,041.6			93,184.6			106,744.9
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Investment Contract Liabilities:
Life and annuity reserves		17,071.4			17,841.2		17,917.0			19,950.3			20,718.3
Health reserves		2,507.8			2,523.8		2,537.9			2,689.0			2,831.5
Unpaid claims-life and health		1,269.8			1,316.6		1,087.5			778.4			1,058.4
Unearned premiums		75.8			46.5		66.9			141.2			104.5
Premium deposit funds		19,624.1			17,715.5		18,585.0			20,518.8			21,769.3
Participating policyholders’ funds		132.0			139.4		100.2			156.7			155.1
Other policyholders’ funds		472.6			522.2		562.7			610.9			680.9
Liability related to separate accounts		53,654.2			50,579.9		44,833.4			36,178.3			46,565.2
Total Ins and Inv Contr Liabilities		94,807.7			90,685.1		85,690.6			81,023.6			93,883.2
Federal income taxes
Short-term debt		460.2			312.9		350.2			153.0			44.0
Long-term debt		712.0			712.2		861.8			1,119.2			1,117.5
Junior subordinated debentures issued to affiliated trusts		745.0			745.0		474.7			392.7			341.3
Embedded derivative - modco													352.3
Other liabilities		2,107.0			2,434.7		4,216.1			4,171.5			4,270.1
Deferred gain on indemnity reinsurance							1,144.5			977.1			924.8
Total Liabilities		98,831.9			94,890.0		92,737.8			87,837.2			100,933.2
Unrealized gains (losses)-cont op.		(465.7	)		12.0		217.2			781.6			815.1
Foreign currency		30.1			22.0		(8.0	)		50.8			109.0
Minimum pension liability adjustment							(36.0	)		(97.8	)		(55.1	)
S/Hs’ equity-other		4,699.5			4,946.6		5,130.6			4,612.9			4,942.6
Cumulative effect of accounting change
Total Shareholders’ Equity		4,263.9			4,980.6		5,303.8			5,347.5			5,811.6
Total Liabilities and Shareholders’ Equity		103,095.7			99,870.6		98,041.6			93,184.6			106,744.9
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	23.98		$	25.88	$	27.39		$	25.97		$	27.69
Common shares outstanding (in millions)		196.0			191.2		187.3			177.6			178.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 14

Quarterly Balance Sheet

Unaudited [Millions of Dollars, except Common Share Data]

	Mar 2002			Jun 2002			Sep 2002			Dec 2002			Mar 2003			Jun 2003			Sep 2003			Dec 2003			Mar 2004
ASSETS
Investments
Corporate bonds		23,470.4			23,993.6			25,484.6			25,934.7			26,936.1			28,419.3			28,286.3			25,868.5			26,209.2
U.S. government bonds		429.1			441.6			495.3			513.6			537.0			561.9			522.5			225.8			234.2
Foreign government bonds		1,180.1			1,120.1			1,038.6			1,110.2			1,206.6			1,349.4			1,352.9			1,194.6			1,321.0
Mortgage backed securities		3,613.9			4,031.0			4,843.7			5,015.5			4,960.1			4,754.9			4,992.7			5,195.6			5,617.0
State and municipal bonds		62.6			58.8			97.8			114.4			134.9			150.4			164.0			152.8			164.1
Preferred stocks - redeemable		84.6			79.6			76.8			79.0			112.0			118.5			65.6			132.2			120.9
Common stocks		284.4			267.7			237.2			228.0			145.0			146.6			131.8			98.4			97.4
Preferred stocks-equity		154.2			151.8			160.3			109.2			104.5			110.7			111.2			100.7			100.2
Total AFS Securities		29,279.2			30,144.1			32,434.3			33,104.7			34,136.2			35,611.8			35,626.9			32,968.6			33,864.1
Trading securities																							3120.1			3,191.3
Mortgage loans		4,448.2			4,395.4			4,285.2			4,205.5			4,235.5			4,314.3			4,151.5			4,195.0			3,988.5
Real estate		258.2			258.7			286.4			279.7			242.0			240.3			249.8			112.9			104.8
Policy loans		1,918.0			1,906.1			1,899.0			1,945.6			1,928.8			1,919.6			1,910.5			1,924.4			1,876.7
Other long-term investments		459.6			456.0			457.7			464.4			465.7			505.6			484.7			456.7			476.3
Total Investments		36,363.1			37,160.1			39,362.6			39,999.9			41,008.4			42,591.6			42,423.3			42,777.6			43,501.7
Invest in unconsol affiliates		8.1			7.5
Cash and invested cash		1,699.5			2,265.4			1,599.9			1,690.5			1,635.5			1,945.8			1,960.6			1,711.2			2,255.5
Property and equipment		266.4			253.5			252.7			242.1			239.4			239.1			237.3			235.2			229.5
Premiums and fees receivable		376.3			461.4			577.2			212.9			194.0			396.0			306.5			352.1			337.5
Accrued investment income		577.1			556.3			568.2			536.7			567.2			555.1			560.2			522.7			547.9
Assets held in separate accounts		44,916.7			40,579.6			34,069.0			36,178.3			34,775.2			39,942.8			41,283.4			46,565.2			48,557.9
Federal income taxes recoverable		593.4			483.4			340.7			317.7			89.1			—						45.9
Amount recoverable from reinsurers		6,096.3			6,509.9			7,094.5			7,280.0			7,323.5			7,377.1			7,537.9			7,839.2			7,865.7
Deferred acquisition costs		3,093.4			3,031.6			2,840.7			2,939.7			2,884.5			2,660.3			2,879.7			3,147.1			2,999.0
Other intangible assets		69.4			70.9			71.8			73.0			74.2			74.7			75.5			79.1			85.8
Present value of in-force		1,336.1			1,321.4			1,286.9			1,250.1			1,223.1			1,220.8			1,192.5			1,196.5			1,180.0
Goodwill		1,211.5			1,212.4			1,232.7			1,233.2			1,233.0			1,233.6			1,233.7			1,234.7			1,235.2
Other		1,280.9			1,200.6			1,187.1			1,230.3			1,250.6			1,295.9			1,134.9			1,038.3			1,074.2
Total Assets		97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9			109,869.9
LIABILITIES and SHAREHOLDERS’ EQUITY
Liabilities
Insurance and Inv Contract Liabilities:
Life and annuity reserves		18,014.6			18,611.2			19,142.5			19,950.3			20,025.6			20,194.5			20,459.2			20,718.3			20,882.5
Health reserves		2,492.4			2,176.1			2,448.3			2,689.0			2,689.9			2,703.3			2,657.9			2,831.5			2,822.1
Unpaid claims - life and health		1,153.6			1,086.1			1,100.9			778.4			763.1			997.1			1,041.2			1,058.4			1,076.8
Unearned premiums		66.5			154.3			185.8			141.2			141.1			24.0			26.9			104.5			104.3
Premium deposit funds		18,669.6			19,157.8			20,054.4			20,518.8			21,070.5			21,437.7			21,680.2			21,769.3			21,827.4
Participating policyholders’ funds		98.6			91.9			90.5			156.7			166.3			193.8			179.2			155.1			171.1
Other policyholders’ funds		571.9			584.7			595.7			610.9			607.1			621.8			671.5			680.9			688.1
Liab related to separate accounts		44,916.7			40,579.6			34,069.0			36,178.3			34,775.2			39,942.8			41,283.4			46,565.2			48,557.9
Total Ins and Inv Contr Liabilities		85,983.9			82,441.8			77,687.1			81,023.6			80,238.8			86,115.0			87,999.6			93,883.2			96,130.3
Federal income taxes																	72.0			37.1						108.1
Short-term debt		510.2			211.0			120.0			153.0			125.4			83.4			76.5			44.0			38.0
Long-term debt		861.8			1,112.3			1,118.1			1,119.2			1,118.6			1,121.4			1,118.5			1,117.5			1,317.7
Junior subordinated debentures issued to affiliated trusts		376.2			380.0			390.6			392.7			390.8			397.1			333.6			341.3			344.7
Notes payable to LNC		(0.0	)		0.0			(0.0	)		(0.0	)		0.2			(0.0	)		0.0			(0.0	)		0.0
Embedded derivative - modco																							352.3			440.6
Other liabilities		3,864.6			4,501.1			4,661.9			4,171.5			4,214.8			4,989.0			4,724.8			4,270.1			4,440.4
Deferred gain on indemnity reinsurance		1,118.6			1,115.2			1,069.5			977.1			959.0			938.9			949.0			924.8			906.6
Total Liabilities		92,715.3			89,761.4			85,047.1			87,837.2			87,047.6			93,716.9			95,239.1			100,933.2			103,726.4
Unrealized gns (losses)-  inv.		31.8			325.7			817.5			753.3			872.0			1,117.8			804.5			793.1			1,038.0
Gains (losses)-derivatives*		22.6			22.7			27.3			28.3			25.0			28.8			23.2			22.1			29.0
Foreign currency		(20.8	)		22.0			35.4			50.8			39.8			68.4			67.0			109.0			128.9
Minimum pension liability adj		(35.2	)		(37.8	)		(35.2	)		(97.8	)		(97.2	)		(98.8	)		(99.0	)		(55.1	)		(56.6	)
S/Hs’ equity-other		5,174.7			5,020.3			4,591.8			4,612.9			4,610.5			4,699.8			4,790.6			4,942.6			5,004.2
Total Shareholders’ Equity		5,173.2			5,352.8			5,436.8			5,347.5			5,450.0			5,815.9			5,586.4			5,811.6			6,143.5
Total Liabilities and Shareholders’ Equity		97,888.5			95,114.2			90,483.9			93,184.6			92,497.6			99,532.8			100,825.5			106,744.9			109,869.9
Shareholders’ Equity Per Share
Book Value, Excluding AOCI	$	27.54		$	27.21		$	25.87		$	25.97		$	25.94		$	26.41		$	26.87		$	27.69		$	27.99
Common shares outstanding (in millions)		187.9			184.5			177.5			177.6			177.7			178.0			178.3			178.5			178.8

* Cumulative effect of accounting change recorded upon the adoption of FAS 133 in the 1st quarter of 2001 is a component of gains (losses) on derivatives in the 1st quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 15

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	65.2		64.3		77.5		47.4		21.9
Surrender charges	37.9		41.8		31.2		31.2		28.9
Expense assessments	501.3		591.3		508.6		446.2		441.9
Other revenue and fees	14.5		11.0		16.7		3.3		8.7
Net investment income	1,509.1		1,430.5		1,399.1		1,457.5		1,483.7
Realized gains (losses) on investments	(12.1	)	(5.2	)	(64.5	)	(196.6	)	(12.5	)
Gains (losses) on derivatives					(0.3	)	(1.2	)	(6.6	)
Gain (loss) on reinsurance derivative/trading account securities									2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									86.0
Total Revenue	2,115.8		2,133.7		1,968.3		1,787.7		2,054.7
Operating Benefits and Expenses
Benefits paid or provided:
Benefits	259.1		254.7		263.9		314.1		181.5
Interest credited to policy bal.	925.2		866.1		863.8		903.8		867.7
Def. sales inducements net of amortization					(12.1	)	(12.6	)	(14.1	)
Total insurance benefits	1,184.3		1,120.8		1,115.7		1,205.3		1,035.1
Underwriting, acquisition, insurance and other expenses
Commissions	341.4		326.8		336.3		320.8		318.5
Other volume related expenses	42.8		52.0		49.7		64.6		67.5
Operating and administrative expenses	208.6		206.6		231.8		231.3		226.2
Restructuring charges					2.0		1.6		20.1
Taxes, licenses and fees	0.3		9.3		13.7		11.5		17.7
Subtotal	593.2		594.8		633.6		629.8		650.0
Deferral of acquisition costs					(227.8	)	(229.0	)	(223.4	)
DAC amortization					124.4		155.4		120.4
DAC deferral net of amortization	(47.7	)	(37.5	)	(103.4	)	(73.6	)	(103.0	)
PVIF amortization	15.3		24.2		14.7		31.8		9.5
Total underwriting, acquisition, insurance and other expenses	560.8		581.5		544.9		587.9		556.5
Goodwill amortization	2.0		(0.6	)	1.2
Total Benefits and Expenses	1,747.1		1,701.7		1,661.8		1,793.3		1,591.7
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	368.7		432.0		306.5		(5.6	)	463.0
Federal income taxes	77.2		77.3		34.1		(59.3	)	98.9
Income Before Cumulative Effect of Accounting Change	291.5		354.7		272.4		53.7		364.1
Cumulative effect of accounting change					(7.3	)			(63.6	)
Net Income	291.5		354.7		265.1		53.7		300.5
Less:
Restructuring charges					(1.3	)	(1.0	)	(13.1	)
Realized gains (losses) on investments	(7.9	)	(3.4	)	(42.3	)	(127.8	)	(8.2	)
Gains (losses) on derivatives					(0.2	)	(0.8	)	(4.3	)
Net gain (loss) on reinsurance derivative/trading account securities									1.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									55.9
Cumulative effect of accounting change					(7.3	)			(63.6	)
Income from Operations	299.4		358.1		316.2		183.4		331.9
Effective tax rate on Income from Operations	21.4	%	18.1	%	15.3	%	5.4	%	19.7	%
Revenue	2,115.8		2,133.7		1,968.3		1,787.7		2,054.7
Less:
Realized gains (losses) on investments	(12.1	)	(5.2	)	(64.5	)	(196.6	)	(12.5	)
Gains (losses) on derivatives					(0.3	)	(1.2	)	(6.6	)
Gain (loss) on reinsurance derivative/trading account securities									2.8
Mark-to-market adjustment on reclassification from AFS to trading account securities									86.0
Operating Revenue	2,128.0		2,138.9		2,033.1		1,985.5		1,985.1
Average capital	1,562.0		1,602.9		1,831.4		2,339.6		2,400.3
Net Income return on average capital	18.7	%	22.1	%	14.5	%	2.3	%	12.5	%
Income from operations return on average capital	19.2	%	22.3	%	17.3	%	7.8	%	13.8	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period					812.5		894.3		824.7
Deferral					227.8		229.0		223.4
Amortization					(124.4	)	(155.4	)	(120.4	)
Included in Total Benefits and Expenses					103.4		73.6		103.0
Adjustment related to realized (gains) losses on available-for-sale securities					68.2		73.0		(18.7	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(90.0	)	(201.3	)	(54.3	)
Other*					0.2		(14.8	)	—
Balance at end-of-period					894.3		824.7		854.6
Roll Forward of Present Value of In-Force
Balance at beginning-of-period					169.2		154.5		122.7
Amortization					(14.7	)	(31.8	)	(9.5	)
Balance at end-of-period					154.5		122.7		113.2

* Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 Page 16

Lincoln Retirement

Income Statements & Operational Data

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue
Premiums	12.2		13.1		13.4		8.7		5.5		3.0		7.8		5.6		6.5
Surrender charges	7.9		7.2		8.7		7.4		6.9		8.5		7.4		6.2		5.9
Expense assessments	121.0		120.7		103.9		100.6		97.6		104.3		115.2		124.8		137.3
Other revenue and fees	5.8		(1.3	)	(4.0	)	2.7		(1.4	)	1.3		8.3		0.5		(0.8	)
Net investment income	356.6		359.1		363.5		378.3		367.0		369.8		377.4		369.5		379.0
Realized gains (losses) on investments	(50.5	)	(56.2	)	(43.8	)	(46.1	)	(76.8	)	0.9		18.6		44.7		(5.7	)
Gains (losses) on derivatives	0.0		(0.1	)	(1.1	)	(0.1	)	(1.0	)	(1.5	)	1.7		(5.8	)	(3.7	)
Gain (loss) on reinsurance derivative/trading account securities															2.8		(2.1	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															86.0
Total Revenue	453.0		442.6		440.7		451.4		397.8		486.4		536.3		634.2		516.5
Benefits and Expenses
Benefits paid or provided:
Benefits	55.4		72.5		107.8		78.4		65.0		34.8		44.6		37.1		54.1
Interest credited to policy balances	226.1		221.8		224.2		231.7		220.1		217.1		216.5		214.0		207.8
Def. sales inducements net of amortization	(3.0	)	(3.5	)	(2.9	)	(3.2	)	(3.3	)	(2.4	)	(2.8	)	(5.6	)	(9.0	)
Total insurance benefits	278.5		290.9		329.1		306.9		281.8		249.5		258.2		245.5		252.8
Underwriting, acquisition, insurance and other expenses:
Commissions	82.4		82.5		83.0		72.8		66.8		74.2		80.7		96.8		102.9
Other volume related expenses	10.0		16.9		19.6		18.1		14.0		14.7		16.1		22.8		38.8
Operating and administrative expenses	54.6		53.8		53.0		69.9		54.0		56.6		57.0		58.5		51.7
Restructuring charges			1.6								6.2		8.4		5.5		1.8
Taxes, licenses and fees	4.7		4.2		3.0		(0.5	)	5.7		4.3		3.7		4.0		5.2
Subtotal	151.8		159.0		158.6		160.4		140.4		156.0		166.0		187.6		200.5
Deferral of acquisition costs	(58.4	)	(56.8	)	(62.9	)	(50.9	)	(43.6	)	(47.4	)	(58.9	)	(73.5	)	(101.9	)
DAC amortization	32.3		47.7		47.0		28.4		30.1		27.2		31.6		31.5		41.5
DAC deferral net of amortization	(26.1	)	(9.1	)	(16.0	)	(22.5	)	(13.5	)	(20.2	)	(27.2	)	(42.0	)	(60.4	)
PVIF amortization	3.8		3.9		4.1		20.0		2.3		2.1		3.3		1.8		3.3
Total underwriting, acquisition, insurance and other expenses	129.5		153.8		146.7		157.9		129.2		137.9		142.1		147.4		143.4
Total Benefits and Expenses	408.0		444.7		475.8		464.8		411.0		387.4		400.3		392.9		396.2
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	45.1		(2.2	)	(35.1	)	(13.4	)	(13.3	)	99.0		135.9		241.4		120.3
Federal income taxes	(1.5	)	(11.3	)	(28.0	)	(18.4	)	(20.1	)	17.3		33.9		67.9		26.7
Income Before Cumulative Effect of Accounting Change	46.6		9.2		(7.0	)	5.0		6.9		81.7		102.0		173.5		93.6
Cumulative effect of accounting change															(63.6	)	(21.8	)
Net Income	46.6		9.2		(7.0	)	5.0		6.9		81.7		102.0		109.9		71.8
Less:
Restructuring charges			(1.0	)							(4.0	)	(5.5	)	(3.6	)	(1.2	)
Realized gains (losses) on investments	(32.8	)	(36.6	)	(28.0	)	(30.4	)	(50.3	)	1.0		12.1		29.1		(3.7	)
Gains (losses) on derivatives	0.0		0.1		(0.8	)	(0.0	)	(0.2	)	(1.4	)	1.1		(3.8	)	(2.4	)
Net gain (loss) on reinsurance derivative/trading account securities															1.8		(1.4	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															55.9
Cumulative effect of accounting change															(63.6	)	(21.8	)
Income from Operations	79.4		46.8		21.8		35.4		57.4		86.1		94.3		94.1		102.2
Effective tax rate on Income from Operations	16.9	%	16.0	%	(121.8	%)	(8.1	%)	11.0	%	18.6	%	24.0	%	21.1	%	23.5	%
Revenue	453.0		442.6		440.7		451.4		397.8		486.4		536.3		634.2		516.5
Less:
Realized gains (losses) on investments	(50.5	)	(56.2	)	(43.8	)	(46.1	)	(76.8	)	0.9		18.6		44.7		(5.7	)
Gains (losses) on derivatives	0.0		(0.1	)	(1.1	)	(0.1	)	(1.0	)	(1.5	)	1.7		(5.8	)	(3.7	)
Gain (loss) on reinsurance derivative/trading account securities															2.8		(2.1	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															86.0
Operating Revenue	503.5		498.8		485.6		497.6		475.5		487.0		516.0		506.6		528.0
Average capital	2,046.1		2,396.3		2,411.1		2,504.9		2,526.7		2,262.3		2,386.7		2,425.4		2,532.6
Net Income return on average capital	9.1	%	1.5	%	(1.2	%)	0.8	%	1.1	%	14.4	%	17.1	%	18.1	%	11.3	%
Income from operations return on average capital	15.5	%	7.8	%	3.6	%	5.7	%	9.1	%	15.2	%	15.8	%	15.5	%	16.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	894.3		1,009.4		942.7		816.0		824.7		786.2		616.3		721.7		854.6
Deferral	58.4		56.8		62.9		50.9		43.6		47.4		58.9		73.5		101.9
Amortization	(32.3	)	(47.7	)	(47.0	)	(28.4	)	(30.1	)	(27.2	)	(31.6	)	(31.5	)	(41.5	)
Included in Total Benefits and Expenses	26.1		9.1		16.0		22.5		13.5		20.2		27.2		42.0		60.4
Adjustment related to realized (gains) losses on available-for-sale securities	25.7		20.9		10.3		16.1		21.8		7.9		(31.8	)	(16.7	)	(10.2	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	78.2		(96.6	)	(153.1	)	(29.9	)	(73.9	)	(197.9	)	109.9		107.6		(113.9	)
Other*	(14.8	)
Cumulative effect of accounting change																	(42.3	)
Balance at end-of-quarter	1,009.4		942.7		816.0		824.7		786.2		616.3		721.7		854.6		748.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	154.5		150.7		146.8		142.7		122.7		120.4		118.3		115.0		113.2
Amortization	(3.8	)	(3.9	)	(4.1	)	(20.0	)	(2.3	)	(2.1	)	(3.3	)	(1.8	)	(3.3	)
Cumulative effect of accounting change																	(0.6	)
Balance at end-of-quarter	150.7		146.8		142.7		122.7		120.4		118.3		115.0		113.2		109.4

* Includes the transfer of the Legacy Life block of business to the Life Insurance segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 Page 17

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Fixed Annuities- Bal Beg-of-Year	18.111		18.210		16.615		18.004		20.087
Gross Deposits	2.563		2.074		3.342		3.672		3.125
Withdrawals (incl charges) & deaths	(2.521	)	(3.283	)	(2.448	)	(2.637	)	(2.074	)
Net flows	0.042		(1.209	)	0.894		1.035		1.051
Transfer from (to) var annuities	(0.783	)	(1.329	)	(0.428	)	0.108		(0.817	)
Interest credited	0.840		0.944		0.923		0.940		0.899
Acq of new business/companies
Fixed Annuities-Gross	18.210		16.615		18.004		20.087		21.220
Reinsurance Ceded	(1.419	)	(1.221	)	(1.514	)	(2.003	)	(2.353	)
Fixed Annuities-Bal End -of-Year	16.791		15.394		16.491		18.085		18.868
Fixed Annuities Incremental Deposits *	2.310		1.918		3.213		3.600		3.067
Variable Annuities-Bal Beg-of-Year	33.358		41.493		39.427		34.638		27.438
Gross Deposits	2.553		3.165		3.067		2.743		3.119
Withdrawals (incl charges) & deaths	(3.760	)	(4.830	)	(3.856	)	(3.325	)	(3.162	)
Net flows	(1.207	)	(1.665	)	(0.789	)	(0.582	)	(0.044	)
Transfer from (to) fixed annuities	0.787		1.320		0.428		(0.122	)	0.809
Invest inc & change in mkt value	8.555		(1.721	)	(4.428	)	(6.497	)	7.583
Acq(sale) of new business/companies
Var Annuities-Bal End-of-Year	41.493		39.427		34.638		27.438		35.786
Variable Annuities Incremental Deposits *	2.409		2.667		2.624		2.569		3.019
Total Annuities - Bal Beg-of-Year	51.469		59.703		56.042		52.642		47.525
Gross Deposits	5.116		5.239		6.409		6.415		6.244
Withdrawals (incl charges) & deaths	(6.281	)	(8.113	)	(6.304	)	(5.962	)	(5.236	)
Net flows	(1.165	)	(2.874	)	0.105		0.453		1.007
Transfers	0.004		(0.009	)			(0.013	)	(0.008	)
Interest credited & change in mkt value	9.395		(0.777	)	(3.505	)	(5.558	)	8.482
Acq of new business/companies
Total Gross Annuities-Bal End-of-Year	59.703		56.042		52.642		47.525		57.007
Reinsurance Ceded	(1.419	)	(1.221	)	(1.514	)	(2.003	)	(2.353	)
Total Annuities (Net of Ceded) - Bal End-of-Year	58.284		54.821		51.128		45.522		54.654
Total Annuities Incremental Deposits *	4.719		4.585		5.837		6.169		6.086
Var Ann Under Agree - Included above	0.719		0.941		1.077		1.186		2.166

*  Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	0.709		0.459		1.712		1.844		1.415
Withdrawals	(1.367	)	(2.271	)	(1.604	)	(1.473	)	(0.934	)
Net Flows	(0.658	)	(1.812	)	0.108		0.371		0.481
Gross Fixed Account Values							10.475		11.440
Reinsurance Ceded							(2.003	)	(2.353	)
Net Fixed Account Values							8.473		9.087
Variable Annuities - including fixed portion of variable contracts
Deposits	4.407		4.780		4.697		4.571		4.829
Withdrawals	(4.915	)	(5.842	)	(4.700	)	(4.489	)	(4.302	)
Net Flows	(0.508	)	(1.062	)	(0.003	)	0.082		0.527
Variable Account Values							37.050		45.567
Fixed Portion of Variable Contracts
Deposits	1.853		1.615		1.630		1.828		1.710
Withdrawals	(1.154	)	(1.012	)	(0.844	)	(1.164	)	(1.140	)
Net Flows	0.699		0.603		0.786		0.664		0.570
Fixed Portion of Variable Account Values							9.612		9.781
Average Daily Variable Account Values	35.932		41.776		35.573		30.826		30.372
Annuity Product Spread Information (1)
Net Investment Income (2)	7.22	%	7.38	%	7.38	%	6.98	%	6.41	%
Interest Credited to Policyholders	5.13	%	5.24	%	5.33	%	4.87	%	4.25	%
Spread (2)	2.09	%	2.14	%	2.05	%	2.11	%	2.16	%

(1) For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

(2) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread was 0.06% in 2003 and 0.07% in 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 18

Lincoln Retirement

Annuity Account Value Rollforward

Unaudited [Billions of Dollars]

	Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Fixed Annuities-Bal Beg-of-Quarter	16.599		16.697		17.317		18.004		18.178		18.680		19.562		20.087		20.612		20.864		21.132		21.220
Gross Deposits	0.668		0.896		1.218		0.906		0.853		1.091		0.822		0.776		0.778		0.778		0.792		0.817
Withdrawals (incl charges) & deaths	(0.574	)	(0.525	)	(0.562	)	(0.730	)	(0.551	)	(0.825	)	(0.531	)	(0.524	)	(0.501	)	(0.492	)	(0.557	)	(0.571	)
Net flows	0.094		0.372		0.656		0.176		0.302		0.265		0.291		0.253		0.277		0.286		0.235		0.246
Transfer from (to) var annuities	(0.222	)	0.021		(0.213	)	(0.232	)	(0.032	)	0.379		(0.007	)	0.046		(0.250	)	(0.243	)	(0.369	)	(0.399	)
Interest credited	0.226		0.228		0.244		0.230		0.231		0.238		0.240		0.226		0.226		0.225		0.223		0.213
Fixed Annuities-Gross	16.697		17.317		18.004		18.178		18.680		19.562		20.087		20.612		20.864		21.132		21.220		21.280
Reinsurance Ceded	(1.146	)	(1.266	)	(1.514	)	(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)	(2.350	)
Fixed Annuities-Bal End-of-Quarter	15.551		16.051		16.491		16.534		16.910		17.650		18.085		18.537		18.696		18.868		18.868		18.930
Fixed Annuities Incremental Deposits *	0.611		0.873		1.193		0.881		0.839		1.072		0.808		0.753		0.768		0.767		0.779		0.795
Variable Annuities-Bal Beg-of-Quarter	34.733		36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709		35.786
Gross Deposits	0.703		0.684		0.793		0.808		0.787		0.603		0.545		0.648		0.584		0.800		1.087		1.407
Withdrawals (incl charges) & deaths	(0.993	)	(0.795	)	(0.818	)	(0.896	)	(0.866	)	(0.800	)	(0.763	)	(0.806	)	(0.762	)	(0.809	)	(0.786	)	(0.941	)
Net flows	(0.290	)	(0.111	)	(0.025	)	(0.088	)	(0.079	)	(0.197	)	(0.217	)	(0.158	)	(0.178	)	(0.009	)	0.300		0.465
Transfer from (to) fixed annuities	0.227		(0.023	)	0.213		0.234		0.032		(0.388	)	0.000		(0.048	)	0.249		0.243		0.365		0.400
Invest inc & change in mkt value	2.291		(6.321	)	3.944		0.366		(3.897	)	(4.679	)	1.713		(0.759	)	3.912		1.018		3.412		0.968
Var Annuities-Bal End-of-Quarter	36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709		35.786		37.619
Variable Annuities Incremental Deposits *	0.612		0.604		0.725		0.725		0.744		0.573		0.528		0.629		0.560		0.776		1.053		1.370
Total Annuities - Bal Beg-of-Quarter	51.332		53.658		47.824		52.643		53.329		49.886		45.504		47.525		47.086		51.321		52.841		57.007
Gross Deposits	1.371		1.580		2.011		1.714		1.640		1.694		1.368		1.424		1.363		1.578		1.879		2.223
Withdrawals (incl charges) & deaths	(1.567	)	(1.320	)	(1.380	)	(1.626	)	(1.417	)	(1.626	)	(1.294	)	(1.329	)	(1.263	)	(1.301	)	(1.343	)	(1.512	)
Net flows	(0.196	)	0.261		0.631		0.088		0.223		0.068		0.074		0.095		0.099		0.277		0.536		0.712
Transfers	0.005		(0.002	)			0.002		0.000		(0.009	)	(0.006	)	(0.002	)	(0.002	)	0.001		(0.004	)	0.001
Interest credited & change in mkt value	2.517		(6.093	)	4.188		0.596		(3.666	)	(4.441	)	1.953		(0.532	)	4.137		1.243		3.634		1.181
Total Gross Annuities - Bal End-of-Quarter	53.658		47.824		52.643		53.329		49.886		45.504		47.525		47.086		51.321		52.841		57.007		58.900
Reinsurance Ceded	(1.146	)	(1.266	)	(1.514	)	(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)	(2.350	)
Total Annuities (Net of Ceded) - Bal End-of-Qtr	52.512		46.558		51.129		51.684		48.116		43.591		45.522		45.011		49.152		50.577		54.654		56.549
Total Annuities Incremental Deposits *	1.223		1.477		1.918		1.606		1.583		1.645		1.336		1.382		1.328		1.543		1.833		2.165
Var Ann Under Agree - Included above	0.975		0.907		1.077		1.207		1.175		1.083		1.186		1.355		1.637		1.820		2.166		2.463
*  Incremental Deposits represent gross deposits reduced by transfers from other Lincoln Retirement products.
Fixed Annuities - excluding fixed portion of variable contracts
Deposits	0.329		0.489		0.734		0.505		0.430		0.559		0.351		0.368		0.356		0.344		0.347		0.365
Withdrawals	(0.356	)	(0.340	)	(0.352	)	(0.463	)	(0.267	)	(0.516	)	(0.228	)	(0.208	)	(0.235	)	(0.238	)	(0.253	)	(0.269	)
Net Flows	(0.027	)	0.149		0.382		0.042		0.163		0.042		0.123		0.160		0.121		0.106		0.094		0.096
Gross Fixed Account Values							9.761		10.048		10.219		10.475		10.759		11.001		11.226		11.440		11.649
Reinsurance Ceded							(1.645	)	(1.770	)	(1.913	)	(2.003	)	(2.075	)	(2.169	)	(2.264	)	(2.353	)	(2.350	)
Net Fixed Account Values							8.116		8.278		8.306		8.473		8.684		8.832		8.962		9.087		9.299
Variable Annuities - including fixed portion of variable contracts
Deposits	1.042		1.091		1.277		1.209		1.210		1.135		1.017		1.056		1.007		1.234		1.532		1.859
Withdrawals	(1.211	)	(0.979	)	(1.028	)	(1.163	)	(1.150	)	(1.109	)	(1.066	)	(1.121	)	(1.028	)	(1.063	)	(1.090	)	(1.243	)
Net Flows	(0.169	)	0.112		0.249		0.046		0.060		0.026		(0.049	)	(0.065	)	(0.022	)	0.172		0.442		0.616
Variable Account Values							43.568		39.839		35.286		37.050		36.327		40.320		41.616		45.567		47.251
Fixed Portion of Variable Contracts
Deposits	0.339		0.407		0.484		0.401		0.423		0.532		0.472		0.408		0.422		0.434		0.445		0.452
Withdrawals	(0.218	)	(0.184	)	(0.210	)	(0.267	)	(0.284	)	(0.309	)	(0.303	)	(0.316	)	(0.266	)	(0.254	)	(0.304	)	(0.302	)
Net Flows	0.121		0.223		0.274		0.134		0.139		0.223		0.169		0.093		0.156		0.180		0.141		0.151
Fixed Portion of Variable Account Values							8.418		8.632		9.344		9.612		9.853		9.864		9.906		9.781		9.631
Average Daily Variable Account Values	36.499		34.399		33.216		34.341		33.502		28.023		27.431		26.907		29.195		31.490		33.897		37.160
Annuity Product Spread Information (1)
Net Investment Income (2)(3)	7.45	%	7.33	%	7.26	%	7.15	%	7.11	%	6.87	%	6.89	%	6.61	%	6.49	%	6.42	%	6.13	%	6.43	%
Interest Credited to Policyholders	5.29	%	5.34	%	5.28	%	5.14	%	4.92	%	4.76	%	4.72	%	4.42	%	4.29	%	4.20	%	4.09	%	3.97	%
Spread (2)(3)	2.16	%	1.99	%	1.98	%	2.01	%	2.18	%	2.11	%	2.17	%	2.19	%	2.20	%	2.22	%	2.04	%	2.46	%

(1) For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on annuity products less bonus credits and excess DCA interest, divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.

(2) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread was 0.07% in the 1st quarter of 2004, 0.03% in the 4th quarter of 2003, and 0.00% in the 1st quarter of 2003.

(3) The first quarter 2004 includes income from contingent interest received, which contributed $13.0 million to net investment income or 27 bps to the yield and spread.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 19

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	235.8		227.3		212.4		203.8		194.9
Surrender charges	66.3		66.4		66.1		54.1		53.6
Mortality assessments	444.6		465.2		499.4		501.5		516.7
Expense assessments	165.8		191.8		191.4		199.5		201.8
Other revenue and fees	9.8		14.2		17.9		23.7		28.0
Net investment income	840.1		871.5		910.2		899.1		911.1
Realized gains (losses) on investments	(2.2	)	(17.4	)	(57.6	)	(98.2	)	3.6
Gains (losses) on derivatives					0.7		1.5		(3.6	)
Gain (loss) on reinsurance derivative/trading account securities									(0.6	)
Total Revenue	1,760.4		1,819.0		1,840.6		1,785.0		1,905.5
Benefits and Expenses
Benefits paid or provided:
Benefits	430.4		411.5		418.6		427.4		416.0
Div accum & div to policyholders	81.5		80.8		78.5		76.0		81.6
Interest credited to policy bal.	493.8		525.4		569.9		598.6		598.2
Total insurance benefits	1,005.8		1,017.8		1,067.0		1,101.9		1,095.8
Underwriting, acquisition, insurance and other expenses:
Commissions	163.4		152.8		142.1		139.8		141.8
Other volume related expenses	185.6		200.9		176.4		190.4		208.3
Operating and administrative expenses	171.2		169.4		166.8		162.2		166.2
Restructuring Charges					5.4				19.5
Taxes, licenses and fees	51.8		48.5		49.2		53.2		62.2
Par policyholder interests	3.3		1.1
Subtotal	575.2		572.6		539.9		545.6		598.0
Deferral of acquisition costs					(324.8	)	(336.5	)	(370.8	)
DAC amortization					95.0		105.8		135.5
DAC deferral net of amortization	(235.0	)	(286.5	)	(229.8	)	(230.7	)	(235.2	)
PVIF amortization	58.8		103.7		75.9		73.9		81.4
Total underwriting, acquisition, insurance and other expenses	399.1		389.8		385.9		388.8		444.2
Goodwill amortization	23.4		23.7		23.7
Total Benefits and Expenses	1,428.2		1,431.4		1,476.6		1,490.8		1,540.1
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	332.2		387.6		364.0		294.2		365.4
Federal income taxes	120.6		141.6		129.2		88.1		113.9
Income Before Cumulative Effect of Accounting Change	211.5		246.0		234.8		206.1		251.5
Cumulative effect of accounting changes					(5.5	)			0.6
Net Income	211.5		246.0		229.3		206.1		252.1
Less:
Restructuring charges					(3.5	)			(12.7	)
Realized gains (losses) on investments	(0.5	)	(10.7	)	(38.5	)	(63.8	)	2.3
Gains (losses) on derivatives					1.6		1.0		(2.3	)
Net gain (loss) on reinsurance derivative/trading account securities									(0.4	)
Cumulative effect of accounting change					(5.5	)			0.6
Income from Operations	212.0		256.7		275.3		269.0		264.5
Effective tax rate on Income from Operations	36.6	%	36.6	%	35.4	%	31.2	%	31.4	%
Revenue	1760.4		1,819.0		1,840.6		1,785.0		1,905.5
Less:
Realized gains (losses) on investments	(2.2	)	(17.4	)	(57.6	)	(98.2	)	3.6
Gains (losses) on derivatives					0.7		1.5		(3.6	)
Gain (loss) on reinsurance derivative/trading account securities									(0.6	)
Operating Revenue	1,762.6		1,836.4		1,897.5		1,881.7		1,906.1
Average capital	2,712.3		2,641.3		2,734.4		2,846.3		2,849.9
Net Income return on average capital	7.8	%	9.3	%	8.4	%	7.2	%	8.8	%
Income from operations return on average capital	7.8	%	9.7	%	10.1	%	9.4	%	9.3	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-period					1,079.3		1,265.7		1,424.5
Deferral					324.8		336.5		370.8
Amortization					(95.0	)	(105.8	)	(135.5	)
Included in Total Benefits and Expenses					229.8		230.7		235.2
Adjustment related to realized (gains) losses on available-for-sale securities					43.0		39.7		(31.9	)
Adjustment related to unrealized (gains) losses on available-for-sale securities					(89.0	)	(130.9	)	(49.5	)
Other*					2.5		19.3
Balance at end-of-period					1,265.7		1,424.5		1,578.3
Roll Forward of Present Value of In-Force
Balance at beginning-of-period					1,040.5		964.0		890.1
Amortization					(75.9	)	(73.9	)	(81.4	)
Other					(0.7	)	(0.0	)
Balance at end-of-period					964.0		890.1		808.6

* Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 20

Life Insurance Segment

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue
Premiums	51.1		47.6		48.6		56.4		47.8		49.7		45.2		52.2		47.9
Surrender charges	11.7		13.5		13.4		15.5		11.4		12.4		13.7		16.1		13.8
Mortality assessments	123.9		123.9		126.3		127.3		129.7		128.4		130.2		128.4		128.5
Expense assessments	46.9		47.2		49.2		56.3		48.3		49.6		48.9		55.0		49.8
Other revenue and fees	5.7		6.7		5.1		6.2		5.8		7.3		6.4		8.4		7.8
Net investment income	226.0		225.7		224.1		223.3		227.6		229.0		226.4		228.1		235.7
Realized gains (losses) on investments	(41.4	)	(25.4	)	(25.9	)	(5.5	)	(12.7	)	(2.6	)	(1.7	)	20.5		(3.9	)
Gains (losses) on derivatives	0.0		0.6		0.7		0.1		(0.5	)	0.3		(0.3	)	(3.1	)	(0.0	)
Gain (loss) on reinsurance derivative/trading account securities															(0.6	)	(0.3	)
Total Revenue	423.9		439.8		441.6		479.6		457.5		474.0		468.9		505.0		479.2
Benefits and Expenses
Benefits paid or provided:
Benefits	104.1		103.6		105.2		114.6		103.8		110.5		118.5		83.2		97.4
Div accum & div to policyholders	17.8		18.2		17.2		22.8		14.4		17.6		15.9		33.8		18.5
Interest credited to policy bal.	146.3		148.9		152.6		150.7		150.1		149.8		150.7		147.5		144.8
Total insurance benefits	268.1		270.8		275.1		288.0		268.3		277.9		285.1		264.5		260.7
Underwriting, acquisition, insurance and other expenses:
Commissions	34.6		34.8		31.8		38.6		32.4		30.7		34.4		44.3		31.4
Other volume related expenses	42.7		43.6		45.8		58.3		54.2		43.2		48.3		62.6		46.5
Operating and administrative expenses	38.2		38.2		41.1		44.7		40.6		38.5		41.7		45.4		38.5
Restructuring charges									5.5		7.3		2.5		4.2		2.7
Taxes, licenses and fees	13.2		15.3		13.2		11.5		14.4		13.8		16.1		18.0		12.4
Subtotal	128.6		132.0		131.8		153.2		147.1		133.4		143.0		174.4		131.6
Deferral of acquisition costs	(74.3	)	(82.2	)	(78.6	)	(101.4	)	(91.0	)	(79.7	)	(88.0	)	(112.1	)	(83.7	)
DAC amortization	22.1		23.6		23.9		36.3		47.0		29.5		21.1		38.0		48.7
DAC deferral net of amortization	(52.3	)	(58.6	)	(54.8	)	(65.1	)	(44.0	)	(50.2	)	(66.9	)	(74.1	)	(35.0	)
PVIF amortization	16.9		16.3		23.3		17.4		17.4		17.2		26.9		19.9		18.5
Total underwriting, acquisition, insurance and other expenses	93.2		89.6		100.4		105.5		120.5		100.4		103.0		120.2		115.1
Total Benefits and Expenses	361.3		360.4		375.5		393.6		388.8		378.3		388.1		384.8		375.8
Income Before Federal Income Tax and Cumulative Effect of Accounting Change	62.6		79.4		66.1		86.0		68.7		95.7		80.8		120.3		103.4
Federal income taxes	19.1		22.7		19.7		26.5		20.2		30.1		24.9		38.7		33.1
Income Before Cumulative Effect of Accounting Change	43.5		56.7		46.4		59.5		48.5		65.6		55.8		81.6		70.3
Cumulative effect of accounting change															0.6		(2.7	)
Net Income	43.5		56.7		46.4		59.5		48.5		65.6		55.8		82.2		67.5
Less:
Restructuring charges									(3.6	)	(4.7	)	(1.6	)	(2.7	)	(1.8	)
Realized gains (losses) on investments	(26.9	)	(16.4	)	(16.9	)	(3.6	)	(8.1	)	(1.9	)	(1.1	)	13.4		(2.6	)
Gains (losses) on derivatives	0.0		0.3		0.6		0.1		(0.5	)	0.4		(0.2	)	(2.0	)	(0.0	)
Net gain (loss) on reinsurance derivative/trading account securities															(0.4	)	(0.2	)
Cumulative effect of accounting change															0.6		(2.7	)
Income from Operations	70.4		72.8		62.7		63.1		60.7		71.8		58.7		73.4		74.8
Effective tax rate on Income from Operations	32.3	%	30.1	%	31.3	%	31.0	%	30.6	%	31.8	%	31.1	%	31.8	%	32.2	%
Revenue	423.9		439.8		441.6		479.6		457.5		474.0		468.9		505.0		479.2
Less:
Realized gains (losses) on investments	(41.4	)	(25.4	)	(25.9	)	(5.5	)	(12.7	)	(2.6	)	(1.7	)	20.5		(3.9	)
Gains (losses) on derivatives	0.0		0.6		0.7		0.1		(0.5	)	0.3		(0.3	)	(3.1	)	(0.0	)
Gain (loss) on reinsurance derivative/trading account securities															(0.6	)	(0.3	)
Operating Revenue	465.3		464.6		466.8		485.0		470.7		476.2		470.8		488.2		483.4
Average capital	2,805.9		2,870.1		2,857.6		2,851.5		2,864.2		2,792.7		2,849.0		2,893.7		2,927.4
Net Income return on average capital	6.2	%	7.9	%	6.5	%	8.3	%	6.8	%	9.4	%	7.8	%	11.4	%	9.2	%
Income from operations return on average capital	10.0	%	10.1	%	8.8	%	8.8	%	8.5	%	10.3	%	8.2	%	10.1	%	10.2	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-quarter	1,265.6		1,385.3		1,404.9		1,362.2		1,424.5		1,447.7		1,381.3		1,483.4		1,578.3
Deferral	74.3		82.2		78.6		101.4		91.0		79.7		88.0		112.1		83.7
Amortization	(22.1	)	(23.6	)	(23.9	)	(36.3	)	(47.0	)	(29.5	)	(21.1	)	(38.0	)	(48.7	)
Included in Total Benefits and Expenses	52.3		58.6		54.8		65.1		44.0		50.2		66.9		74.1		35.0
Adjustment related to realized (gains) losses on available-for-sale securities	15.8		11.2		11.7		1.0		7.0		(0.3	)	(27.6	)	(11.0	)	(3.8	)
Adjustment related to unrealized (gains) losses on available-for-sale securities	34.0		(51.9	)	(109.3	)	(3.7	)	(27.9	)	(116.3	)	62.8		31.9		(77.6	)
Other*	17.6		1.7														3.0
Balance at end-of-quarter	1,385.3		1,404.9		1,362.2		1,424.5		1,447.7		1,381.3		1,483.4		1,578.3		1,534.8
Roll Forward of Present Value of In-Force
Balance at beginning-of-quarter	964.0		947.1		930.7		907.4		890.1		872.7		855.5		828.5		808.6
Amortization	(16.9	)	(16.3	)	(23.3	)	(17.4	)	(17.4	)	(17.2	)	(26.9	)	(19.9	)	(18.5	)
Other			(0.1	)			0.1
Balance at end-of-quarter	947.1		930.7		907.4		890.1		872.7		855.5		828.5		808.6		790.1

* Includes the transfer of the Legacy Life block of business from the Lincoln Retirement segment in the first quarter of 2002. The first quarter of 2004 reflects the DAC unlocking resulting from the implementation of SOP 03-1.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 21

Life Insurance Segment

Operational Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999	2000	2001	2002	2003
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	229.4	195.1	184.7	356.9	417.0
MoneyGuard	113.5	94.1	107.9	138.4	224.7
Total	342.9	289.3	292.7	495.3	641.6
Variable Universal Life	142.2	218.7	228.6	134.5	79.4
Whole Life	23.9	22.4	26.3	30.3	34.4
Term	45.9	41.9	30.8	32.3	40.2
Total Retail	555.0	572.3	578.4	692.3	795.7
Corporate Owned Life Insurance (COLI)	14.7	87.0	47.3	88.1	125.7
Total	569.7	659.3	625.6	780.4	921.3
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	188.3	200.6	196.1	201.7	230.0
Lincoln Financial Distributors	367.9	444.7	413.0	556.3	625.6
Other*	13.5	14.0	16.6	22.4	65.8
Total by Distribution	569.7	659.3	625.6	780.4	921.3
Life Insurance In-Force (Billions)
Universal Life & Other	109.288	115.872	121.168	126.016	129.623
Term Insurance	85.701	100.130	113.226	127.880	151.717
Total Life Segment In-Force	194.988	216.002	234.394	253.896	281.340

For the Quarter Ended	Jun 2001	Sep 2001	Dec 2001	Mar 2002	Jun 2002	Sep 2002	Dec 2002	Mar 2003	Jun 2003	Sep 2003	Dec 2003	Mar 2004
First Year Premiums by Product (Millions)
Universal Life
Excluding MoneyGuard	46.8	36.2	65.7	57.4	63.8	98.0	137.8	84.5	93.8	114.2	124.5	95.7
MoneyGuard	23.2	31.3	31.9	29.0	35.1	34.9	39.3	46.3	48.9	58.2	71.4	56.2
Total	70.0	67.4	97.5	86.4	98.9	132.9	177.1	130.8	142.7	172.3	195.9	151.9
Variable Universal Life	52.2	50.1	70.2	39.0	42.4	26.1	27.0	24.4	14.1	16.6	24.4	22.5
Whole Life	5.1	6.7	10.4	5.2	6.4	7.7	11.0	6.5	7.1	8.5	12.3	10.8
Term	7.2	8.1	9.1	8.7	8.1	7.3	8.1	9.1	9.6	10.5	10.9	10.5
Total Retail	134.6	132.4	187.2	139.4	155.8	174.0	223.2	170.7	173.5	208.0	243.5	195.6
Corporate Owned Life Insurance (COLI)	21.0	5.1	14.2	6.9	46.6	7.8	26.8	10.6	61.8	23.7	29.6	14.2
Total	155.6	137.4	201.3	146.3	202.4	181.8	249.9	181.3	235.3	231.7	273.1	209.8
First Year Premiums by Distribution (Millions)
Lincoln Financial Advisors	48.2	41.8	68.0	41.5	48.3	46.9	64.9	42.1	48.4	66.9	72.6	51.3
Lincoln Financial Distributors	104.0	90.4	129.5	100.9	151.6	132.7	171.1	131.6	146.6	156.1	191.2	147.8
Other*	3.4	5.2	3.8	3.8	2.6	2.2	13.9	7.5	40.2	8.7	9.4	10.6
Total by Distribution	155.6	137.4	201.3	146.3	202.4	181.8	249.9	181.3	235.3	231.7	273.1	209.8
Insurance In-Force (Billions)
Universal Life & Other	118.007	119.029	121.168	122.316	123.674	124.085	126.016	126.414	127.276	127.855	129.623	129.669
Term Insurance	105.265	108.723	113.226	117.752	121.076	123.945	127.880	133.251	139.191	145.480	151.717	157.338
Total Segment In-Force	223.272	227.751	234.394	240.068	244.750	248.030	253.896	259.666	266.467	273.335	281.340	287.007

* Other consists of distribution arrangements with third-party intermediaries.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 22

Life Insurance Segment

Life Insurance Account Value Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Universal Life-Bal Beg-of-Year	6.259		6.650		6.976		7.508		8.211
Deposits	1.017		0.955		1.043		1.332		1.532
Withdrawals & deaths	(0.452	)	(0.426	)	(0.319	)	(0.426	)	(0.437	)
Net flows	0.564		0.528		0.724		0.906		1.095
Policyholder assessments	(0.544	)	(0.584	)	(0.598	)	(0.648	)	(0.702	)
Interest credited	0.370		0.382		0.405		0.428		0.427
Acq of new business/transfers between segments							0.018
Universal Life-Bal End of Year (1)	6.650		6.976		7.508		8.211		9.030
Variable Universal Life-Bal Beg-of-Year	1.200		1.605		1.808		1.746		1.690
Deposits	0.326		0.607		0.584		0.504		0.448
Withdrawals & deaths	(0.099	)	(0.132	)	(0.251	)	(0.193	)	(0.208	)
Net flows	0.228		0.475		0.332		0.311		0.240
Policyholder assessments	(0.084	)	(0.141	)	(0.170	)	(0.186	)	(0.191	)
Invest inc & chg in mkt value	0.370		(0.130	)	(0.225	)	(0.313	)	0.457
Acq of new business/transfers between segments	(0.110	)					0.132
Variable Universal Life-Bal End-of-Year	1.605		1.808		1.746		1.690		2.195
Interest Sensitive Whole Life - Bal Beg-of-Year	1.784		1.963		2.062		2.123		2.186
Deposits	0.355		0.322		0.307		0.301		0.279
Withdrawals & deaths	(0.162	)	(0.168	)	(0.200	)	(0.199	)	(0.236	)
Net flows	0.193		0.154		0.107		0.103		0.043
Policyholder assessments	(0.168	)	(0.168	)	(0.164	)	(0.167	)	(0.159	)
Interest credited	0.109		0.113		0.118		0.127		0.125
Acq of new business/transfers between segments	0.045
Int Sensitive Whole Life-Bal End -of -Year	1.963		2.062		2.123		2.186		2.195
Total Segment- Life Insurance Account Values
Bal Beg-of-Year	9.243		10.217		10.847		11.377		12.086
Deposits	1.698		1.884		1.934		2.138		2.259
Withdrawals & deaths	(0.713	)	(0.727	)	(0.771	)	(0.818	)	(0.881	)
Net flows	0.985		1.158		1.163		1.320		1.377
Policyholder assessments	(0.795	)	(0.893	)	(0.931	)	(1.002	)	(1.053	)
Invest inc & change in market value	0.849		0.364		0.299		0.241		1.009
Acq of new business/transfers between segments	(0.065	)					0.150
Total Segment -Bal End-of-Year	10.217		10.847		11.377		12.086		13.420
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)					7.63	%	7.30	%	6.97	%
Interest Credited to Policyholders					5.86	%	5.77	%	5.36	%
Spread (3)					1.77	%	1.53	%	1.61	%
Traditional Products
Net Investment Income (3)					7.49	%	7.42	%	6.99	%

(1) Includes fixed investment option of VUL products.

(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of year ends 2001, 2002, and 2003, interest sensitive products represented 86%, 87%, and 88%, respectively, of total interest sensitive and traditional non-par earning assets.

(3) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread for interest sensitive products was 0.03% in 2003, 0.04% in 2002, and 0.06% in 2001. The impact for traditional products was 0.06% in 2003, 0.05% in 2002, and 0.13% in 2001.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 23

Life Insurance Segment

Life Insurance Account Value Roll Forward

Unaudited [Billions of Dollars]

	Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Universal Life-Bal Beg-of-Quarter	7.063		7.216		7.315		7.508		7.622		7.838		7.987		8.211		8.359		8.542		8.782		9.030
Deposits	0.270		0.233		0.314		0.248		0.364		0.310		0.410		0.316		0.350		0.426		0.440		0.342
Withdrawals & deaths	(0.071	)	(0.085	)	(0.073	)	(0.097	)	(0.096	)	(0.108	)	(0.125	)	(0.107	)	(0.101	)	(0.117	)	(0.113	)	(0.117	)
Net flows	0.199		0.147		0.241		0.150		0.268		0.201		0.286		0.210		0.249		0.309		0.327		0.225
Policyholder assessments	(0.147	)	(0.150	)	(0.153	)	(0.158	)	(0.158	)	(0.162	)	(0.170	)	(0.168	)	(0.171	)	(0.178	)	(0.185	)	(0.183	)
Interest credited	0.100		0.102		0.105		0.104		0.106		0.110		0.108		0.106		0.106		0.108		0.106		0.103
Acq of new business/transfers between segments	—		—		—		0.0				—		—		—		—		—		—		—
Universal Life-Bal End-of-Quarter (1)	7.216		7.315		7.508		7.622		7.838		7.987		8.211		8.359		8.542		8.782		9.030		9.175
Variable Universal Life-Bal Beg of Quarter	1.633		1.766		1.527		1.746		1.919		1.776		1.575		1.690		1.689		1.930		1.991		2.195
Deposits	0.138		0.124		0.186		0.129		0.147		0.102		0.126		0.118		0.114		0.093		0.123		0.106
Withdrawals & deaths	(0.060	)	(0.055	)	(0.088	)	(0.055	)	(0.057	)	(0.034	)	(0.047	)	(0.036	)	(0.050	)	(0.048	)	(0.074	)	(0.073	)
Net flows	0.078		0.069		0.098		0.074		0.090		0.068		0.079		0.082		0.064		0.045		0.049		0.032
Policyholder assessments	(0.041	)	(0.042	)	(0.045	)	(0.047	)	(0.046	)	(0.046	)	(0.047	)	(0.049	)	(0.048	)	(0.046	)	(0.049	)	(0.048	)
Invest inc & chg in mkt value	0.096		(0.266	)	0.166		0.013		(0.186	)	(0.224	)	0.083		(0.034	)	0.225		0.062		0.204		0.070
Acq of new business/transfers between segments	—		—		—		0.1				—		—		—		—		—		—		—
Variable Universal Life -Bal End-of-Quarter	1.766		1.527		1.746		1.919		1.776		1.575		1.690		1.689		1.930		1.991		2.195		2.249
Interest Sensitive Whole Life - Bal Beg-of-Quarter	2.068		2.084		2.096		2.123		2.126		2.145		2.164		2.186		2.185		2.191		2.185		2.195
Deposits	0.069		0.077		0.105		0.063		0.066		0.073		0.100		0.051		0.062		0.067		0.098		0.054
Withdrawals & deaths	(0.043	)	(0.054	)	(0.061	)	(0.051	)	(0.039	)	(0.045	)	(0.063	)	(0.046	)	(0.050	)	(0.066	)	(0.073	)	(0.063	)
Net flows	0.027		0.022		0.044		0.012		0.026		0.027		0.037		0.005		0.012		0.001		0.026		(0.009	)
Policyholder assessments	(0.040	)	(0.041	)	(0.047	)	(0.042	)	(0.039	)	(0.040	)	(0.046	)	(0.036	)	(0.038	)	(0.039	)	(0.047	)	(0.036	)
Interest credited	0.030		0.030		0.030		0.033		0.032		0.031		0.031		0.030		0.032		0.032		0.031		0.032
Acq of new business/transfers between segments	—		—		—		—				—		—		—		—		—		—		—
Int Sensitive Whole Life-Bal End-of-Quarter	2.084		2.096		2.123		2.126		2.145		2.164		2.186		2.185		2.191		2.185		2.195		2.182
Total Segment- Life Insurance Account Values
Bal Beg-of-Quarter	10.764		11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958		13.420
Deposits	0.477		0.434		0.605		0.440		0.577		0.484		0.636		0.486		0.526		0.586		0.661		0.501
Withdrawals & deaths	(0.173	)	(0.195	)	(0.222	)	(0.204	)	(0.192	)	(0.187	)	(0.234	)	(0.190	)	(0.202	)	(0.231	)	(0.259	)	(0.254	)
Net flows	0.304		0.239		0.383		0.236		0.385		0.297		0.402		0.296		0.324		0.355		0.402		0.248
Policyholder assessments	(0.228	)	(0.232	)	(0.246	)	(0.246	)	(0.244	)	(0.248	)	(0.263	)	(0.252	)	(0.257	)	(0.262	)	(0.280	)	(0.267	)
Invest inc & change in market value	0.226		(0.134	)	0.301		0.151		(0.049	)	(0.082	)	0.222		0.103		0.363		0.202		0.341		0.205
Acq of new business/transfers between segments	—		—		—		0.1				—		—		—		—		—		—		—
Total Segment - Bal End-of-Quarter	11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958		13.420		13.606
Life Product Spread Information (2)
Interest Sensitive Products
Net Investment Income (3)(4)	7.60	%	7.73	%	7.60	%	7.47	%	7.39	%	7.26	%	7.15	%	7.21	%	7.09	%	6.90	%	6.73	%	6.84	%
Interest Credited to Policyholders	5.87	%	5.85	%	5.90	%	5.82	%	5.83	%	5.82	%	5.63	%	5.56	%	5.43	%	5.37	%	5.12	%	4.97	%
Spread (3)(4)	1.74	%	1.89	%	1.70	%	1.65	%	1.56	%	1.44	%	1.52	%	1.65	%	1.65	%	1.53	%	1.61	%	1.87	%
Traditional Products
Net Investment Income (3)(4)	7.33	%	7.95	%	7.51	%	7.42	%	7.37	%	7.58	%	7.28	%	7.16	%	7.13	%	6.99	%	6.72	%	7.33	%

(1) Includes fixed investment option of VUL products.

(2) Interest Sensitive Products - For the life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. The average crediting rate is calculated using interest credited on life products divided by average fixed account values. Traditional Products - the yield on earning assets is calculated as net investment income on non-par investment portfolios divided by average earning assets. As of March 31, 2004, interest sensitive products represented 88% of total interest sensitive and traditional non-par earning assets.

(3) The net investment income and spread reported above includes earnings from mortgage loan prepayments and make-wholes. The impact of prepayments and make-wholes on investment income and spread for interest sensitive products was 0.07% in the 1st quarter of 2004, 0.01% in the 4th quarter of 2003, and 0.01% in the 1st quarter of 2003. There was no impact for traditional products during the 1st quarter of 2004, an impact of 0.10% in the 4th quarter of 2003, and no impact during the 1st quarter of 2003.

(4) The first quarter 2004 includes income from contingent interest received, which contributed $6.5 million to net investment income or 25 bps to the yield and spread on Interest Sensitive Products and $2.4 million to net investment income or 72 bps to the yield and spread on Traditional Products.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 24

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Investment advisory fees - External	248.6		231.6		197.2		183.3		205.0
Investment advisory fees - Insurance Assets	103.0		112.4		105.0		97.7		101.2
Other revenue and fees	106.6		115.9		99.2		87.0		117.9
Net investment income	56.9		57.7		53.6		50.5		49.9
Realized gains (losses) on investments	(0.1	)	(3.9	)	(3.7	)	(5.4	)	0.4
Total Revenue	514.9		513.7		451.2		413.1		474.4
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses	369.6		424.9		410.2		393.2		414.6
Restructuring Charges	12.5		7.1		0.6		(0.4	)	7.1
Taxes, licenses and fees	10.3		11.6		16.8		13.0		10.3
Subtotal	392.4		443.6		427.5		405.8		431.9
Other intangibles amortization	17.7		16.3		10.8		8.2		7.9
Total underwriting, acquisition, insurance and other expenses	410.1		459.9		438.3		414.0		439.8
Goodwill amortization	16.2		16.2		16.2
Total Benefits and Expenses	426.3		476.1		454.6		414.0		439.8
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	88.6		37.6		(3.3	)	(0.9	)	34.6
Federal income taxes	37.0		19.8		5.5		0.5		4.5
Income Before Cumulative Effect of Accounting Change	51.6		17.9		(8.9	)	(1.4	)	30.2
Cumulative effect of accounting change					(0.1	)
Net Income	51.6		17.9		(9.0	)	(1.4	)	30.2
Less:
Realized gains (losses) on investments	(0.1	)	(2.5	)	(2.4	)	(3.5	)	0.3
Gains (losses) on derivatives
Restructuring charges	(9.2	)	(4.6	)	(0.4	)	0.3		(4.6	)
Cumulative effect of accounting change					(0.1	)
Income from Operations	61.0		25.0		(6.1	)	1.8		34.5
Net Income - before
- Goodwill Amortization	67.9		34.1		7.3		(1.4	)	30.2
- Goodwill & Intang. Amort.	79.4		44.7		14.3		3.9		35.3
Income from Operations -before
- Goodwill Amortization	77.2		41.3		10.1		1.8		34.5
- before Goodwill & Intang. Amort	88.7		51.8		17.1		7.2		39.7
Revenue	514.9		513.7		451.2		413.1		474.4
Less:
Realized gains (losses) on investments	(0.1	)	(3.9	)	(3.7	)	(5.4	)	0.4
Operating Revenue	515.0		517.6		454.9		418.5		474.0
Average Capital (Securities at Cost)	593.7		582.0		557.0		581.2		602.4
Net Income return on average capital	8.7	%	3.1	%	(1.6	%)	(0.2	%)	5.0	%
Inc. from oper. return on average capital	10.3	%	4.3	%	(1.1	%)	0.3	%	5.7	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 25

Investment Management

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue
Investment advisory fees - External	48.0		47.8		42.9		44.7		44.2		49.4		53.2		58.3		62.7
Investment advisory fees - Insurance Assets	25.0		24.3		24.1		24.2		24.1		25.4		25.5		26.2		26.5
Other revenue and fees	23.0		22.0		19.9		22.1		22.0		29.5		29.5		36.9		33.7
Net investment income	12.8		12.7		12.4		12.7		12.1		12.1		13.2		12.5		12.2
Realized gains (losses) on investments	(1.5	)	(0.7	)	(1.8	)	(1.5	)	(0.4	)	0.1		0.2		0.5		(2.3	)
Total Revenue	107.3		106.1		97.5		102.2		102.1		116.4		121.7		134.3		132.9
Benefits and Expenses
Underwriting, acquisition, insurance and other expenses:
Operating and administrative expenses	97.2		100.8		99.4		95.8		95.2		104.4		101.6		113.3		111.1
Restructuring charges					(0.4	)							5.3		1.7		1.5
Taxes, licenses and fees	4.6		4.2		1.9		2.4		3.0		2.8		2.4		2.1		3.9
Subtotal	101.8		105.0		100.9		98.2		98.2		107.2		109.3		117.1		116.5
Other intangibles amortization	2.2		2.0		2.0		2.0		2.0		2.0		2.0		2.0		2.0
Total underwriting, acquisition, insurance and other expenses	103.9		107.0		102.9		100.2		100.2		109.2		111.3		119.1		118.5
Total Benefits and Expenses	103.9		107.0		102.9		100.2		100.2		109.2		111.3		119.1		118.5
Income from Before Federal Income Tax and Cumulative Effect of Accounting Change	3.4		(1.0	)	(5.4	)	2.0		1.9		7.2		10.3		15.2		14.4
Federal income taxes	1.3		(0.2	)	(1.5	)	0.9		0.8		2.6		4.0		(3.0	)	4.3
Income Before Cumulative Effect of Accounting Change	2.1		(0.8	)	(3.9	)	1.1		1.0		4.6		6.3		18.2		10.0
Cumulative effect of accounting change
Net Income	2.1		(0.8	)	(3.9	)	1.1		1.0		4.6		6.3		18.2		10.0
Less:
Realized gains (losses) on investments	(1.0	)	(0.4	)	(1.2	)	(0.9	)	(0.3	)	0.0		0.1		0.3		(1.5	)
Restructuring charges					0.3		0.0						(3.5	)	(1.1	)	(1.0	)
Income from Operations	3.1		(0.3	)	(3.0	)	2.1		1.3		4.5		9.7		19.0		12.5
Net Income -before
Intangible Amortization	3.5		0.6		(2.6	)	2.4		2.4		5.8		7.6		19.5		11.3
Income from Operations -before
Intangible Amortization	4.5		1.0		(1.7	)	3.4		2.6		5.8		11.0		20.3		13.8
Revenue	107.3		106.1		97.5		102.2		102.1		116.4		121.7		134.3		132.9
Less:
Realized gains (losses) on investments	(1.5	)	(0.7	)	(1.8	)	(1.5	)	(0.4	)	0.1		0.2		0.5		(2.3	)
Gains (losses) on derivatives
Operating Revenue	108.9		106.7		99.3		103.6		102.5		116.3		121.4		133.8		135.2
Average Capital (Securities at Cost)	562.7		587.2		586.3		588.8		597.7		588.6		600.4		623.0		634.2
Net Income return on average capital	1.5	%	(0.5	)%	(2.6	)%	0.8	%	0.7	%	3.1	%	4.2	%	11.7	%	6.3	%
Income from operations return on average capital	2.2	%	(0.2	)%	(2.0	)%	1.4	%	0.9	%	3.1	%	6.4	%	12.2	%	7.9	%

3/31/2004 PAGE 26

Investment Management

Assets Under Management Rollforward

Unaudited [Billions of Dollars]

	1999		2000		2001		2002		2003
Retail Fixed - Bal Beg-of-Year	8.218		7.422		6.605		7.118		7.631
Fund Sales	0.991		0.769		0.876		1.218		1.792
Redemptions	(1.424	)	(1.401	)	(1.051	)	(1.182	)	(1.442	)
Net Money Market	(0.111	)	(0.207	)	(0.046	)	(0.050	)	(0.028	)
Transfers	0.177		(0.168	)	0.405		0.206		(0.168	)
Net Flows(1)	(0.367	)	(1.007	)	0.184		0.192		0.154
Market	(0.429	)	0.096		0.330		0.321		0.401
Acquisitions/addition of Assets Under Administration(1)			0.094
Balance End-of-Year(1)	7.422		6.605		7.118		7.631		8.186
Retail Equity - Bal Beg-of-Year	22.081		23.384		21.525		17.990		14.917
Fund Sales	3.270		4.116		2.817		4.477		3.791
Redemptions	(4.972	)	(4.431	)	(2.838	)	(3.690	)	(2.830	)
Net Money Market	(0.001	)	0.001
Transfers	(0.144	)	(0.178	)	(0.538	)	(0.173	)	0.156
Net Flows(1)	(1.847	)	(0.492	)	(0.560	)	0.614		1.117
Market	3.150		(1.709	)	(2.975	)	(3.688	)	4.854
Acquisitions/addition of Assets Under Administration(1)			0.342
Balance at End-of-Year(1)	23.384		21.525		17.990		14.917		20.887
Total Retail - Bal Beg-of-Year	30.299		30.807		28.129		25.108		22.547
Retail Sales-Annuities	1.561		1.782		1.701		2.751		2.151
Retail Sales-Mutual Funds	2.151		2.577		1.523		1.829		2.315
Retail Sales-Managed Acct. & Other	0.549		0.525		0.469		1.115		1.116
Total Retail Sales	4.261		4.885		3.693		5.695		5.583
Redemptions	(6.396	)	(5.832	)	(3.889	)	(4.873	)	(4.272	)
Net Money Market	(0.112	)	(0.206	)	(0.046	)	(0.050	)	(0.028	)
Transfers	0.033		(0.346	)	(0.133	)	0.033		(0.012	)
Net Flows(1)	(2.214	)	(1.500	)	(0.375	)	0.806		1.271
Market	2.721		(1.613	)	(2.646	)	(3.366	)	5.255
Acquisitions/addition of Assets Under Administration(1)			0.435
Balance at End-of-Year(1)	30.807		28.129		25.108		22.547		29.073
Institutional Fixed - Bal Beg-of-Year	6.955		6.936		6.111		5.489		7.237
Inflows	2.001		0.771		0.643		2.281		1.937
Withdrawals/Terminations	(1.700	)	(1.973	)	(1.229	)	(1.146	)	(1.226	)
Transfers	(0.001	)	(0.005	)	0.017		0.004		0.005
Net Flows	0.300		(1.207	)	(0.569	)	1.139		0.716
Market	(0.319	)	0.382		(0.053	)	0.608		0.447
Balance at End-of-Year	6.936		6.111		5.489		7.237		8.399
Institutional Equity - Bal Beg-of-Year	24.236		23.632		19.114		17.815		16.711
Inflows	5.249		2.730		3.183		2.913		3.922
Withdrawals/Terminations	(7.800	)	(7.209	)	(2.879	)	(1.991	)	(2.178	)
Transfers	0.012		(0.008	)	0.035		0.045		0.018
Net Flows	(2.539	)	(4.486	)	0.338		0.967		1.762
Market	1.935		(0.031	)	(1.637	)	(2.071	)	6.849
Balance at End-of-Year	23.632		19.114		17.815		16.711		25.322
Total Institutional - Bal Beg-of-Year	31.191		30.568		25.225		23.305		23.948
Inflows	7.250		3.501		3.826		5.194		5.859
Withdrawals/Terminations	(9.500	)	(9.182	)	(4.109	)	(3.137	)	(3.404	)
Transfers	0.011		(0.013	)	0.052		0.050		0.023
Net Flows	(2.239	)	(5.693	)	(0.231	)	2.106		2.478
Market	1.616		0.351		(1.690	)	(1.463	)	7.296
Balance at End-of-Year	30.568		25.225		23.305		23.948		33.722
Total Retail/Institutional - At End-of-Year	61.375		53.355		48.412		46.495		62.794
Insurance Assets - At End-of-Year	35.934		35.686		38.119		41.104		43.024
Total Assets Under Management At End-of-Year	97.309		89.041		86.531		87.599		105.818
(1)    Retail assets under management have been restated to include assets under administration beginning in January of 2000. Assets Under Administration were 1.038 billion at December 31, 2003.
Net Flows from Assets Under Administration:			0.018		0.081		0.263		0.195

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 27

Investment Management

Assets Under Management Roll Forward

Unaudited [Billions of Dollars]

	Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Retail Fixed - Bal-Beg-of-Qtr	6.747		6.764		7.203		7.118		7.086		7.167		7.514		7.631		7.907		8.190		8.083		8.186
Fund Sales	0.203		0.207		0.218		0.292		0.272		0.325		0.328		0.424		0.469		0.443		0.456		0.513
Redemptions	(0.285	)	(0.262	)	(0.242	)	(0.289	)	(0.306	)	(0.277	)	(0.311	)	(0.327	)	(0.318	)	(0.435	)	(0.361	)	(0.418	)
Net Money Market	(0.030	)	0.005		(0.031	)	(0.003	)	(0.002	)	(0.009	)	(0.035	)	0.001		(0.006	)	(0.008	)	(0.014	)	(0.036	)
Transfers	(0.002	)	0.388		(0.027	)	(0.041	)	0.021		0.134		0.092		0.062		(0.055	)	(0.086	)	(0.088	)	(0.035	)
Net Flows(1)	(0.114	)	0.338		(0.083	)	(0.041	)	(0.015	)	0.174		0.074		0.159		0.090		(0.087	)	(0.008	)	0.024
Market	0.131		0.101		(0.002	)	0.009		0.096		0.174		0.043		0.117		0.193		(0.020	)	0.111		0.103
Balance at End-of-Qtr(1)	6.764		7.203		7.118		7.086		7.167		7.514		7.631		7.907		8.190		8.083		8.186		8.313
Retail Equity - Bal-Beg-of-Qtr	18.255		19.756		15.873		17.990		18.255		16.613		13.705		14.917		14.286		16.906		17.961		20.887
Fund Sales	0.681		0.638		0.580		0.908		1.084		1.140		1.345		0.717		0.813		1.051		1.210		1.938
Redemptions	(0.666	)	(0.653	)	(0.607	)	(0.791	)	(0.881	)	(1.137	)	(0.881	)	(0.803	)	(0.612	)	(0.706	)	(0.710	)	(0.992	)
Net Money Market
Transfers	(0.047	)	(0.441	)	0.019		0.014		(0.022	)	(0.128	)	(0.036	)	(0.059	)	0.011		0.112		0.092		(0.002	)
Net Flows(1)	(0.032	)	(0.456	)	(0.008	)	0.130		0.182		(0.126	)	0.428		(0.145	)	0.213		0.457		0.592		0.944
Market	1.532		(3.427	)	2.125		0.134		(1.824	)	(2.782	)	0.784		(0.486	)	2.408		0.598		2.334		0.715
Balance at End-of-Qtr(1)	19.756		15.873		17.990		18.255		16.613		13.705		14.917		14.286		16.906		17.961		20.887		22.546
Total Retail - Bal-Beg-of-Qtr	25.003		26.520		23.076		25.108		25.340		23.779		21.219		22.547		22.193		25.096		26.044		29.073
Retail Sales-Annuities	0.403		0.434		0.323		0.589		0.601		0.756		0.806		0.488		0.528		0.573		0.562		0.753
Retail Sales-Mutual Funds	0.355		0.336		0.348		0.452		0.562		0.416		0.399		0.450		0.558		0.644		0.663		0.905
Retail Sales-Managed Acct. & Other	0.127		0.074		0.127		0.159		0.194		0.293		0.469		0.202		0.196		0.277		0.441		0.793
Total Retail Sales	0.885		0.845		0.798		1.200		1.356		1.465		1.673		1.141		1.282		1.494		1.666		2.451
Redemptions	(0.951	)	(0.915	)	(0.850	)	(1.081	)	(1.186	)	(1.414	)	(1.192	)	(1.130	)	(0.930	)	(1.141	)	(1.071	)	(1.409	)
Net Money Market	(0.030	)	0.005		(0.031	)	(0.003	)	(0.002	)	(0.009	)	(0.035	)	0.001		(0.006	)	(0.008	)	(0.014	)	(0.036	)
Transfers	(0.049	)	(0.053	)	(0.009	)	(0.027	)	(0.001	)	0.006		0.056		0.003		(0.044	)	0.025		0.004		(0.037	)
Net Flows(1)	(0.146	)	(0.118	)	(0.091	)	0.089		0.167		0.048		0.502		0.014		0.302		0.370		0.584		0.969
Market	1.663		(3.326	)	2.123		0.143		(1.728	)	(2.608	)	0.826		(0.369	)	2.601		0.578		2.444		0.818
Balance at End-of-Qtr(1)	26.520		23.076		25.108		25.340		23.779		21.219		22.547		22.193		25.096		26.044		29.073		30.859
Institutional Fixed - Bal-Beg-of-Qtr	5.890		5.809		5.640		5.489		6.018		6.844		7.207		7.237		7.605		7.753		8.077		8.399
Inflows	0.233		0.020		0.080		0.804		0.663		0.530		0.283		0.592		0.126		0.556		0.663		0.806
Withdrawals/Terminations	(0.112	)	(0.493	)	(0.192	)	(0.239	)	(0.161	)	(0.308	)	(0.438	)	(0.308	)	(0.188	)	(0.226	)	(0.503	)	(0.218	)
Transfers	0.010		0.001		0.002		(0.001	)	0.000		0.007		(0.002	)	0.002		0.003		(0.000	)	(0.000	)	0.005
Net Flows	0.131		(0.472	)	(0.109	)	0.565		0.503		0.229		(0.157	)	0.286		(0.059	)	0.330		0.160		0.593
Market	(0.212	)	0.302		(0.041	)	(0.036	)	0.323		0.134		0.187		0.083		0.207		(0.006	)	0.163		0.036
Balance at End-of-Qtr	5.809		5.640		5.489		6.018		6.844		7.207		7.237		7.605		7.753		8.077		8.399		9.028
Institutional Equity - Bal-Beg-of-Qtr	17.313		18.407		16.242		17.815		18.644		18.120		14.937		16.711		15.920		19.607		21.008		25.322
Inflows	0.823		0.863		0.615		0.672		0.569		0.631		1.040		0.494		0.727		1.386		1.315		1.817
Withdrawals/Terminations	(0.501	)	(0.555	)	(0.624	)	(0.512	)	(0.635	)	(0.523	)	(0.322	)	(0.459	)	(0.381	)	(0.921	)	(0.419	)	(0.762	)
Transfers	(0.008	)	0.009		0.016		0.006		0.018		0.011		0.010		0.008		0.002		0.003		0.005		0.012
Net Flows	0.313		0.317		0.007		0.167		(0.047	)	0.119		0.728		0.044		0.348		0.469		0.901		1.068
Market	0.780		(2.482	)	1.567		0.661		(0.476	)	(3.302	)	1.046		(0.835	)	3.339		0.932		3.413		0.798
Balance at End-of-Qtr	18.407		16.242		17.815		18.644		18.120		14.937		16.711		15.920		19.607		21.008		25.322		27.188
Total Institutional - Bal-Beg-of-Qtr	23.203		24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085		33.722
Inflows	1.056		0.883		0.696		1.476		1.232		1.162		1.323		1.086		0.853		1.943		1.978		2.623
Withdrawals/Terminations	(0.613	)	(1.048	)	(0.816	)	(0.751	)	(0.796	)	(0.831	)	(0.760	)	(0.767	)	(0.568	)	(1.147	)	(0.922	)	(0.980	)
Transfers	0.002		0.010		0.018		0.006		0.019		0.017		0.008		0.010		0.005		0.003		0.005		0.017
Net Flows	0.445		(0.155	)	(0.103	)	0.731		0.455		0.348		0.572		0.330		0.289		0.799		1.061		1.661
Market	0.568		(2.180	)	1.526		0.625		(0.153	)	(3.168	)	1.233		(0.752	)	3.546		0.926		3.576		0.834
Balance at End-of-Qtr	24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085		33.722		36.216
Total Retail/Inst - At End-of-Qtr	50.737		44.958		48.412		50.002		48.742		43.362		46.495		45.718		52.456		55.129		62.794		67.075
Insurance Assets-End-of-Qtr	36.018		37.337		38.119		37.171		38.476		40.416		41.104		42.130		43.857		42.984		43.024		44.006
Total Assets Under Management At End-of-Qtr	86.755		82.295		86.531		87.172		87.218		83.778		87.599		87.848		96.313		98.113		105.818		111.081
(1)    Retail assets under management include assets under administration, which were 1.082 billion at March 31, 2004.
Net Flows from Assets Under Administration:	0.013		0.007		0.034		0.090		0.061		0.045		0.068		0.068		0.059		0.038		0.031		0.036

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 28

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Revenue
Premiums	145.1		148.4		46.1		50.6		62.2
Mortality assessments	27.1		31.4		33.9		32.4		35.7
Expense assessments	182.3		178.1		134.8		105.3		93.9
Other revenue and fees	13.8		2.6		(1.4	)	24.9		18.6
Net investment income	75.3		70.3		64.8		62.1		64.1
Realized gains (losses) on investments	3.0		3.2		12.4		1.9		(1.1	)
Total Revenue	446.6		433.8		290.7		277.2		273.5
Benefits and Expenses
Benefits paid or provided:
Benefits	306.2		178.5		83.4		84.2		98.6
Underwriting, acquisition, insurance and other expenses:
Commissions	54.5		37.7		10.8		6.1		3.8
Operating and administrative expenses	153.0		142.5		82.5		77.0		78.3
Restructuring charges	10.0		99.4				(1.7	)
Subtotal	217.4		279.5		93.2		81.4		82.1
Deferral of acquisition costs					(4.2	)	(3.4	)	(3.5	)
DAC amortization					35.9		50.0		42.4
DAC deferral net of amortization	(12.4	)	(7.2	)	31.7		46.5		39.1
PVIF amortization	28.4		4.7		22.5		30.8		(10.7	)
Total underwriting, acquisition, insurance and other expenses	233.5		277.0		147.4		158.7		110.4
Goodwill amortization	7.0		4.0		0.6
Total Benefits and Expenses	546.7		459.6		231.5		242.9		209.0
Federal income taxes	(81.8	)	(10.6	)	(7.6	)	(3.4	)	21.6
Net Income	(18.2	)	(15.1	)	66.8		37.7		42.9
Less:
Realized gains (losses) on investments	2.1		2.3		8.7		1.3		(0.7	)
Restructuring charges	(6.5	)	(76.5	)			1.7
Income from Operations	(13.9	)	59.2		58.1		34.6		43.6
Effective tax rate on Income from Operations	85.1	%	15.9	%	(24.2	)%	(12.8	)%	33.4	%
Revenue	446.6		433.8		290.7		277.2		273.5
Less:
Realized gains (losses) on investments	3.0		3.2		12.4		1.9		(1.1	)
Operating Revenue	443.6		430.6		278.2		275.4		274.5
Average capital	520.4		494.0		593.8		549.9		478.9
Net Income return on average capital	(3.5	)%	(3.1	)%	11.3	%	6.9	%	9.0	%
Income from operations return on average capital	(2.7	)%	12.0	%	9.8	%	6.3	%	9.1	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year					635.0		587.3		597.6
Deferral					4.2		3.4		3.5
Amortization					(35.9	)	(50.0	)	(42.4	)
Included in Total Benefits and Expenses					(31.7	)	(46.5	)	(39.0	)
Foreign currency translation adjustment					(16.0	)	56.8		62.0
Balance at end-of-year					587.3		597.6		620.7
Roll Forward of Present Value of In-Force
Balance at beginning-of-year					273.6		244.0		237.3
Amortization					(22.5	)	(30.8	)	10.7
Foreign currency translation adjustment					(7.0	)	24.1		26.7
Balance at end-of-year					244.0		237.3		274.7

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 29

Lincoln UK

Income Statements

Unaudited [Millions of Dollars]

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue
Premiums	12.1		12.1		12.4		14.2		12.7		13.8		16.5		19.3		18.1
Mortality assessments	6.5		8.3		8.7		8.9		9.1		9.2		8.7		8.7		9.6
Expense assessments	25.3		27.8		29.4		22.8		21.6		24.5		23.2		24.6		24.2
Other revenue and fees	(0.2	)	12.5		24.5		(11.9	)	10.3		(3.9	)	2.6		9.6		5.8
Net investment income	14.7		15.3		15.6		16.6		15.2		16.7		16.0		16.2		18.5
Realized gains (losses) on investments	(5.1	)	4.5		1.2		1.2		(0.0	)			0.3		(1.3	)	(0.4	)
Total Revenue	53.2		80.5		91.8		51.8		68.9		60.2		67.3		77.1		75.8
Benefits and Expenses
Benefits paid or provided:
Benefits	18.3		19.0		23.8		23.1		18.2		24.3		22.7		33.3		29.0
Underwriting, acquisition, insurance and other expenses:
Commissions	1.3		1.9		1.6		1.3		1.1		0.8		1.0		0.8		0.6
Operating and administrative expenses	17.3		18.9		20.2		20.6		18.3		20.5		19.6		20.0		23.0
Restructuring charges							(1.7	)
Subtotal	18.6		20.9		21.8		20.2		19.4		21.3		20.6		20.8		23.5
Deferral of acquisition costs	(0.9	)	(1.0	)	(0.9	)	(0.6	)	(0.8	)	(0.8	)	(0.2	)	(1.6	)	(1.5	)
DAC amortization	6.7		20.9		33.8		(11.5	)	18.6		1.9		7.3		14.7		12.5
DAC deferral net of amortization	5.8		19.9		33.0		(12.1	)	17.7		1.2		7.1		13.1		11.0
PVIF amortization	0.7		11.7		12.8		5.5		3.0		(5.7	)	(0.7	)	(7.3	)	3.0
Total underwriting, acquisition, insurance and other expenses	25.0		52.5		67.6		13.6		40.1		16.8		27.0		26.6		37.6
Total Benefits and Expenses	43.3		71.5		91.4		36.7		58.3		41.1		49.6		59.9		66.6
Federal income taxes	(0.5	)	(0.3	)	0.2		(2.8	)	3.8		6.6		6.1		5.1		3.2
Net Income	10.3		9.3		0.2		17.9		6.8		12.4		11.5		12.2		5.9
Less:
Realized gains (losses) on investments	(3.6	)	3.2		0.9		0.8		(0.0	)			0.2		(0.9	)	(0.3	)
Restructuring charges							1.7
Income from Operations	13.8		6.1		(0.6	)	15.3		6.8		12.4		11.3		13.0		6.2
Effective tax rate on Income from Operations	7.2	%	(37.0	)%	25.4	%	(26.1	)%	35.5	%	34.7	%	35.0	%	29.5	%	35.0	%
Revenue	53.2		80.5		91.8		51.8		68.9		60.2		67.3		77.1		75.8
Less:
Realized gains (losses) on investments	(5.1	)	4.5		1.2		1.2		(0.0	)			0.3		(1.3	)	(0.4	)
Operating Revenue	58.3		75.9		90.6		50.6		68.9		60.2		67.0		78.4		76.1
Average capital	585.2		544.9		525.3		544.0		532.6		487.9		452.2		443.1		447.9
Net Income return on average capital	7.0	%	6.8	%	0.2	%	13.2	%	5.1	%	10.2	%	10.2	%	11.0	%	5.3	%
Income from operations return on average capital	9.5	%	4.5	%	(0.5	)%	11.3	%	5.1	%	10.2	%	10.0	%	11.8	%	5.5	%
Roll Forward of Deferred Acquisition Costs
Balance at beginning-of-year	587.3		569.4		591.0		571.8		597.6		569.1		595.1		590.9		620.7
Deferral	0.9		1.0		0.9		0.6		0.8		0.8		0.2		1.6		1.5
Amortization	(6.7	)	(20.9	)	(33.8	)	11.5		(18.6	)	(1.9	)	(7.3	)	(14.7	)	(12.5	)
Included in Total Benefits and Expenses	(5.8	)	(19.9	)	(33.0	)	12.1		(17.7	)	(1.1	)	(7.1	)	(13.1	)	(11.0	)
Foreign currency translation adjustment	(12.2	)	41.6		13.8		13.7		(10.8	)	27.2		2.8		42.8		19.9
Balance at end-of-year	569.4		591.0		571.8		597.6		569.1		595.1		590.9		620.7		629.6
Roll Forward of Present Value of In-Force
Balance at beginning-of-year	244.0		238.3		243.9		236.8		237.4		230.1		247.0		249.0		274.7
Amortization	(0.7	)	(11.7	)	(12.8	)	(5.5	)	(3.0	)	5.7		0.7		7.3		(3.0	)
Foreign currency translation adjustment	(5.1	)	17.4		5.7		6.1		(4.3	)	11.2		1.3		18.4		8.9
Balance at end-of-year	238.3		243.9		236.8		237.4		230.1		247.0		249.0		274.7		280.5

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 30

Lincoln UK

Operational Data

Unaudited [Billions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Unit Linked Assets - Beg-of-Year	6.265		7.220		6.441		5.607		5.079
Deposits	0.537		0.554		0.481		0.453		0.392
Withdrawals (incl. chgs) & Deaths	(0.566	)	(0.644	)	(0.529	)	(0.519	)	(0.614	)
Net Flows	(0.029	)	(0.090	)	(0.048	)	(0.066	)	(0.222	)
Inv Inc & Chg in Mkt Val	1.154		(0.154	)	(0.617	)	(1.004	)	0.918
Foreign Currency Adjustment	(0.170	)	(0.536	)	(0.169	)	0.542		0.616
Unit Linked Assets - End-of-Year	7.220		6.441		5.607		5.079		6.390
Individual Life In-force	25.698		24.290		20.878		18.896		20.393
Exchange Rate - Dollars to Pounds
For-the-Period	1.617		1.518		1.441		1.503		1.638
End-of-Period	1.615		1.493		1.456		1.610		1.786

For the Quarter Ended	Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Unit Linked Assets Balance-Beg-of-Quarter	5.677		5.768		5.218		5.607		5.618		5.520		4.825		5.079		4.748		5.468		5.692		6.390
Deposits	0.111		0.128		0.111		0.114		0.115		0.119		0.104		0.094		0.090		0.113		0.095		0.083
Withdrawals (incl. chgs) & Deaths	(0.131	)	(0.136	)	(0.115	)	(0.127	)	(0.137	)	(0.126	)	(0.129	)	(0.153	)	(0.137	)	(0.152	)	(0.172	)	(0.172	)
Net Flows	(0.020	)	(0.009	)	(0.004	)	(0.013	)	(0.022	)	(0.006	)	(0.025	)	(0.059	)	(0.047	)	(0.039	)	(0.077	)	(0.090	)
Inv Inc & Chg in Mkt Val	0.115		(0.768	)	0.457		0.141		(0.479	)	(0.812	)	0.146		(0.184	)	0.549		0.205		0.348		0.020
Foreign Currency Adjustment	(0.004	)	0.226		(0.063	)	(0.117	)	0.403		0.123		0.133		(0.087	)	0.218		0.059		0.427		0.207
Unit Linked Assets - End-of-Quarter	5.768		5.218		5.607		5.618		5.520		4.825		5.079		4.748		5.468		5.692		6.390		6.528
Individual Life In-force	21.519		21.299		20.878		20.010		20.401		19.815		18.896		18.512		19.138		19.258		20.393		20.522
Exchange Rate - Dollars to Pounds
For-the-Quarter	1.421		1.442		1.448		1.423		1.464		1.555		1.570		1.605		1.618		1.615		1.714		1.836
End-of-Quarter	1.415		1.474		1.456		1.426		1.532		1.569		1.610		1.580		1.656		1.664		1.786		1.844

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 31

Other Operations

Unaudited [Millions of Dollars]

For the Year Ended December 31									1999		2000		2001		2002		2003
Revenue									1,966.0		1,946.9		1,827.3		372.4		575.8
Less:
Realized gains (losses) on investments									14.4		(5.0	)	8.2		25.6		(7.1	)
Gains (losses) on derivatives													(9.7	)	0.9		7.6
Gain (loss) on reinsurance derivative/trading account securities																	1.9
Amortization of deferred gain-reserve development															(0.8	)	3.6
Gain on sale of reinsurance subsidiaries													12.8		(8.3	)
Mark-to-market adjustment on reclassification from AFS to trading account securities																	285.5
Operating Revenue									1,951.6		1,951.9		1,815.9		355.0		284.2
Operating Revenue by Source:
Lincoln Financial Advisors									317.0		377.5		360.7		318.0		316.9
Lincoln Financial Distributors									107.5		119.9		113.4		127.3		140.9
Total Distribution									424.4		497.4		474.0		445.4		457.8
Reinsurance									1,824.1		1,770.6		1,699.4
Amortization of deferred gain on indemnity reinsurance*													20.4		75.2		72.3
Other [Including Consolidating Adjustments]									(296.9	)	(316.0	)	(377.9	)	(165.6	)	(245.8	)
Total Operating Revenue									1,951.6		1,951.9		1,815.9		355.0		284.2
Income (Loss)
Net Loss									(76.1	)	(18.2	)	(6.6	)	(247.3	)	(113.7	)
Less:
Restructuring charges									(3.2	)	1.0		(19.5	)	1.1		(4.7	)
Realized gains (losses) on investments									10.2		(3.2	)	5.9		16.7		(4.7	)
Gains (losses) on derivatives													(6.3	)	0.6		5.0
Net gain (loss) on reinsurance derivative/trading account securities																	1.3
Gain on sale of reinsurance subsidiaries													15.0		(9.4	)
Reserve development/ amortization of deferred gain															(199.1	)	(18.5	)
Loss on early retirement of subordinated debt																	(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities																	185.6
Cumulative effect of accounting change													(2.7	)			(192.2	)
Operating Income (Loss)									(83.1	)	(16.0	)	1.0		(57.2	)	(81.8	)
Income (Loss) from Operations by Source:
Lincoln Financial Advisors									(20.8	)	(15.4	)	(20.1	)	(31.4	)	(33.2	)
Lincoln Financial Distributors									(14.0	)	(19.6	)	(33.2	)	(35.2	)	(33.4	)
Total Distribution									(34.8	)	(35.0	)	(53.3	)	(66.6	)	(66.6	)
Reinsurance									40.1		122.5		128.8
Amortization of deferred gain on indemnity reinsurance*													12.9		48.9		47.0
LNC Financing									(83.5	)	(84.9	)	(77.9	)	(43.0	)	(56.7	)
Other Corporate									(5.0	)	(18.6	)	(9.5	)	3.5		(5.4	)
Income (Loss) from Operations									(83.1	)	(16.0	)	1.0		(57.2	)	(81.8	)
For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Revenue	88.5		88.5		91.8		103.6		73.0		76.1		74.8		351.9		54.7
Less:
Realized gains (losses) on investments	(4.9	)	(3.8	)	33.2		1.2		0.4		(0.2	)	(7.6	)	0.3		0.3
Gains (losses) on derivatives	0.1		(0.1	)	0.6		0.3		(0.4	)	0.2		7.7		0.2		(0.2	)
Gain (loss) on reinsurance derivative/trading account securities															1.9		(1.9	)
Amort. of deferred gain-reserve development					(1.4	)	0.5		(0.2	)	(0.2	)	3.7		0.3		0.3
Gain on sale of reinsurance subsidiaries							(8.3	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															285.5
Operating Revenue	93.3		92.4		59.4		109.8		73.3		76.3		70.9		63.7		56.1
Operating Revenue by Source:
Lincoln Financial Advisors	75.9		78.1		74.4		89.6		69.4		75.3		76.7		95.5		92.0
Lincoln Financial Distributors	29.4		29.3		31.8		36.9		35.4		29.4		32.2		43.9		57.5
Total Distribution	105.3		107.4		106.2		126.5		104.8		104.6		108.9		139.5		149.6
Reinsurance
Amortization of deferred gain on indemnity reinsurance*	24.1		22.1		22.1		6.9		18.4		18.2		18.3		17.4		17.9
Other [Including Consolidating Adjustments]	(36.0	)	(37.1	)	(68.9	)	(23.6	)	(49.9	)	(46.6	)	(56.2	)	(93.1	)	(111.3	)
Total Operating Revenue	93.3		92.4		59.4		109.8		73.3		76.3		70.9		63.7		56.1
Income (Loss)
Net Income (Loss)	(16.8	)	(25.8	)	(172.1	)	(32.6	)	(21.7	)	(21.6	)	(42.4	)	(28.1	)	(24.8	)
Less:
Restructuring charges					1.1		0.0						(2.4	)	(2.4	)	(3.6	)
Realized gains (losses) on investments	(3.3	)	(2.4	)	21.6		0.8		0.5		(0.4	)	(4.9	)	0.1		0.2
Gains (losses) on derivatives	0.1		(0.1	)	0.4		0.2		(0.5	)	0.4		5.0		0.1		(0.1	)
Net gain (loss) on reinsurance derivative/trading account securities															1.3		(1.2	)
Gain on sale of reinsurance subsidiaries							(9.4	)
Reserve development/ amortization of deferred gain			(14.4	)	(176.4	)	(8.2	)	(0.1	)	(0.1	)	(18.5	)	0.2		0.2
Loss on early retirement of subordinated debt													(3.7	)
Mark-to-market adjustment on reclassification from AFS to trading account securities															185.6
Cumulative effect—reinsurance embedded derivative acctg.															(192.2	)
Income (Loss) from Operations	(13.6	)	(8.9	)	(18.8	)	(15.9	)	(21.5	)	(21.5	)	(18.0	)	(20.8	)	(20.3	)
Income from Operations by Source:
Lincoln Financial Advisors	(10.1	)	(8.7	)	(8.9	)	(3.7	)	(10.4	)	(7.4	)	(7.4	)	(8.0	)	(8.7	)
Lincoln Financial Distributors	(6.6	)	(7.6	)	(13.1	)	(8.0	)	(8.1	)	(10.7	)	(7.5	)	(7.1	)	(4.6	)
Total Distribution	(16.6	)	(16.3	)	(22.0	)	(11.7	)	(18.4	)	(18.1	)	(15.0	)	(15.1	)	(13.3	)
Reinsurance
Amortization of deferred gain on indemnity reinsurance*	15.7		14.4		14.4		4.5		11.9		11.9		11.9		11.3		11.6
LNC Financing	(8.2	)	(10.2	)	(11.0	)	(13.5	)	(15.3	)	(14.4	)	(13.3	)	(13.7	)	(14.6	)
Other Corporate	(4.4	)	3.2		(0.2	)	4.9		0.3		(0.8	)	(1.5	)	(3.4	)	(4.0	)
Income(Loss) from Operations	(13.6	)	(8.9	)	(18.8	)	(15.9	)	(21.5	)	(21.5	)	(18.0	)	(20.8	)	(20.3	)

* The amortization of deferred gain on sale of reinsurance business represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 32

Consolidated Domestic Deposits/Account Balances

Unaudited [Billions of Dollars]

Deposits - For the Year	1999		2000		2001		2002		2003
Lincoln Retirement - Fixed Annuities	2.563		2.074		3.342		3.672		3.125
Lincoln Retirement - Variable Annuities	2.553		3.165		3.067		2.743		3.119
Lincoln Retirement - Life Insurance	0.017		0.014		0.012
Life Insurance Segment - Life Insurance	1.698		1.884		1.934		2.138		2.259
Inv Mgmt - Annuities	1.561		1.782		1.701		2.751		2.151
Inv Mgmt - Mutual Funds(1)	2.151		2.577		1.523		1.829		2.315
Inv Mgmt - Managed Acct. & Other	0.549		0.525		0.469		1.115		1.116
Consolidating Adjustments	(0.499	)	(0.765	)	(0.608	)	(1.576	)	(0.864	)
Total Gross Retail Deposits	10.593		11.256		11.439		12.671		13.222
Investment Management Segment-Instit.	7.250		3.501		3.826		5.194		5.859
Consolidating Adjustments			(0.152	)	(0.207	)	(0.232	)	(0.150	)
Total Gross Deposits	17.843		14.605		15.058		17.634		18.931
Account Balances - End of Year
Lincoln Retirement - Fixed Annuities	16.791		15.394		16.491		18.085		18.868
Lincoln Retirement - Variable Annuities	41.493		39.427		34.638		27.438		35.786
Lincoln Retirement - Life Insurance	0.155		0.160		0.149
Life Insurance Segment - Life Insurance	10.217		10.847		11.377		12.086		13.420
Inv Mgmt - Annuities	15.557		13.527		11.835		9.981		12.691
Inv Mgmt - Mutual Funds(1)	13.633		13.260		11.554		10.296		12.614
Inv Mgmt - Managed Acct. & Other	1.618		1.342		1.719		2.270		3.768
Consolidating Adjustments	(9.175	)	(7.757	)	(6.676	)	(5.123	)	(6.553	)
Total Retail Account Balances	90.289		86.200		81.088		75.033		90.593
Investment Management Segment-Instit.	30.568		25.225		23.305		23.948		33.722
Consolidating Adjustments	(1.014	)	(1.434	)	(1.211	)	(0.924	)	(1.183	)
Total Account Balances	119.843		109.991		103.181		98.057		123.132

Deposits - For the Quarter	Jun 2001		Sep 2001		Dec 2001		Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Lincoln Retirement - Fixed Annuities	0.668		0.896		1.218		0.906		0.853		1.091		0.822		0.776		0.778		0.778		0.792		0.817
Lincoln Retirement - Variable Annuities	0.703		0.684		0.793		0.808		0.787		0.603		0.545		0.648		0.584		0.800		1.087		1.407
Lincoln Retirement - Life Insurance	0.004		0.003		0.002
Life Insurance Segment - Life Insurance	0.477		0.434		0.605		0.440		0.577		0.484		0.636		0.486		0.526		0.586		0.661		0.501
Inv Mgmt - Annuities	0.403		0.434		0.323		0.589		0.601		0.756		0.806		0.488		0.528		0.573		0.562		0.753
Inv Mgmt - Mutual Funds(1)	0.355		0.336		0.348		0.452		0.562		0.416		0.399		0.450		0.558		0.644		0.663		0.905
Inv Mgmt - Managed Acct. & Other	0.127		0.074		0.127		0.159		0.194		0.293		0.469		0.202		0.196		0.277		0.441		0.793
Consolidating Adjustments	(0.110	)	(0.193	)	(0.159	)	(0.280	)	(0.333	)	(0.437	)	(0.525	)	(0.171	)	(0.211	)	(0.288	)	(0.193	)	(0.271	)
Total Gross Retail Deposits	2.627		2.669		3.258		3.074		3.240		3.206		3.151		2.880		2.960		3.370		4.012		4.905
Investment Management Segment-Instit.	1.056		0.883		0.696		1.476		1.232		1.162		1.323		1.086		0.853		1.943		1.978		2.623
Consolidating Adjustments	(0.037	)	(0.069	)	(0.035	)	(0.046	)	(0.069	)	(0.040	)	(0.076	)	(0.053	)	(0.025	)	(0.025	)	(0.047	)	(0.020	)
Total Gross Deposits	3.646		3.483		3.918		4.505		4.403		4.328		4.398		3.913		3.788		5.288		5.943		7.509
Account Balances - End of Quarter
Lincoln Retirement - Fixed Annuities	15.551		16.051		16.491		16.534		16.910		17.650		18.085		18.537		18.696		18.868		18.868		18.930
Lincoln Retirement - Variable Annuities	36.961		30.506		34.638		35.150		31.206		25.942		27.438		26.474		30.457		31.709		35.786		37.619
Lincoln Retirement - Life Insurance	0.157		0.134		0.149
Life Insurance Segment - Life Insurance	11.066		10.939		11.377		11.667		11.759		11.726		12.086		12.233		12.663		12.958		13.420		13.606
Inv Mgmt - Annuities	12.532		10.714		11.835		11.920		10.896		9.327		9.981		9.660		11.002		11.392		12.691		13.294
Inv Mgmt - Mutual Funds(1)	12.214		10.727		11.554		11.599		11.036		10.072		10.296		10.241		11.356		11.615		12.614		13.199
Inv Mgmt - Managed Acct. & Other	1.774		1.635		1.719		1.821		1.847		1.820		2.270		2.292		2.737		3.037		3.768		4.366
Consolidating Adjustments	(7.092	)	(6.002	)	(6.676	)	(6.640	)	(6.000	)	(4.940	)	(5.123	)	(4.891	)	(5.628	)	(5.792	)	(6.553	)	(6.881	)
Total Retail Account Balances	83.163		74.705		81.088		82.051		77.654		71.597		75.033		74.546		81.283		83.787		90.593		94.133
Investment Management Segment - Instit.	24.216		21.881		23.305		24.661		24.963		22.143		23.948		23.526		27.360		29.085		33.722		36.216
Consolidating Adjustments	(1.300	)	(1.066	)	(1.211	)	(1.186	)	(1.045	)	(0.866	)	(0.924	)	(0.933	)	(1.049	)	(1.044	)	(1.183	)	(1.176	)
Total Account Balances	106.080		95.520		103.181		105.527		101.573		92.874		98.057		97.140		107.595		111.828		123.132		129.173

Total Domestic Net Flows

Unaudited [Billions of Dollars]

For the Year	1999		2000		2001		2002		2003
Lincoln Retirement	(1.165	)	(2.874	)	0.105		0.453		1.007
Life Insurance Segment	0.985		1.158		1.163		1.320		1.377
Investment Management Segment-Retail(1)	(2.214	)	(1.500	)	(0.375	)	0.806		1.271
Consolidating Adjustments	1.276		1.022		0.035		(0.082	)	0.064
Total Retail Net Flows	(1.118	)	(2.194	)	0.927		2.496		3.719
Investment Management Segment-Institutional	(2.239	)	(5.693	)	(0.231	)	2.106		2.478
Consolidating Adjustments			0.035		(0.015	)	0.005		(0.002	)
Total Net Flows	(3.357	)	(7.853	)	0.681		4.608		6.195

For the Quarter	Jun 2001		Sep 2001		Dec 2001		Mar 2002	Jun 2002		Sep 2002	Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Lincoln Retirement	(0.196	)	0.261		0.631		0.088	0.223		0.068	0.074		0.095		0.099		0.277		0.536		0.712
Life Insurance Segment	0.304		0.239		0.383		0.236	0.385		0.297	0.402		0.296		0.324		0.355		0.402		0.248
Investment Management Segment-Retail(1)	(0.146	)	(0.118	)	(0.091	)	0.089	0.167		0.048	0.502		0.014		0.302		0.370		0.584		0.969
Consolidating Adjustments	0.042		(0.002	)	(0.169	)	0.009	(0.038	)	0.133	(0.187	)	0.162		(0.003	)	(0.038	)	(0.058	)	(0.096	)
Total Retail Net Flows	0.004		0.380		0.754		0.423	0.737		0.545	0.791		0.568		0.723		0.965		1.464		1.832
Investment Management Segment-Instit.	0.445		(0.155	)	(0.103	)	0.731	0.455		0.348	0.572		0.330		0.289		0.799		1.061		1.661
Consolidating Adjustments	0.018		(0.030	)	0.016		0.022	(0.026	)	0.008	0.001		(0.030	)	0.009		0.035		(0.017	)	0.038
Total Net Flows	0.467		0.195		0.667		1.176	1.166		0.901	1.364		0.868		1.021		1.799		2.508		3.530

NOTE: Excludes amounts reported as Assets Under Management - Insurance Assets

(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on page 26.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 33

Consolidated Investment Data - Assets Managed

Unaudited [Billions of Dollars]

For the Year Ended December 31	1999	2000	2001	2002	2003
Assets Managed by Source
LNC’s Investments and Cash
Fixed maturity securities - available for sale	27.689	27.450	28.346	32.767	32.769
Equity securities - available for sale	0.604	0.550	0.470	0.337	0.199
Trading securities					3.120
Other investments	7.286	7.369	7.297	6.895	6.689
Total LNC Investments(1)	35.578	35.369	36.113	40.000	42.778
Separate accounts	53.654	50.580	44.833	36.178	46.565
Cash and invested cash	1.896	1.927	3.095	1.691	1.711
Discontinued operations
Total LNC	91.128	87.876	84.042	77.869	91.054
Non-affiliate assets managed	49.314	41.861	38.421	38.052	49.587
Total Assets Managed	140.443	129.737	122.463	115.921	140.641
Assets Managed by Advisor
Investment Management segment(1)	61.375	53.355	48.412	46.495	62.794
(See page 27 for additional detail)
DLIA-Corp	35.934	35.686	38.119	41.104	43.024
(Assets managed internally-see page 27)
Lincoln (UK)	8.589	7.873	6.847	6.351	7.668
Policy Loans (within business units)	1.892	1.961	1.940	1.946	1.924
Non-LNC Affiliates	32.653	30.862	27.145	20.026	25.231
Total Assets Managed	140.443	129.737	122.463	115.921	140.641

For the Quarter Ended	Jun 2001	Sep 2001	Dec 2001	Mar 2002	Jun 2002	Sep 2002	Dec 2002	Mar 2003	Jun 2003	Sep 2003	Dec 2003	Mar 2004
Assets Managed by Source
LNC’s Investments and Cash:
Fixed maturity securities - available for sale	27.874	28.932	28.346	28.841	29.725	32.037	32.767	33.887	35.355	35.384	32.769	33.667
Equity securities - available for sale	0.534	0.478	0.470	0.439	0.419	0.397	0.337	0.249	0.257	0.243	0.199	0.198
Trading securities											3.120	3.191
Other investments	7.388	7.379	7.297	7.084	7.016	6.928	6.895	6.872	6.980	6.796	6.689	6.446
Total LNC Investments(1)	35.796	36.788	36.113	36.363	37.160	39.363	40.000	41.008	42.592	42.423	42.778	43.502
Separate accounts	47.140	39.480	44.833	44.917	40.580	34.069	36.178	34.775	39.943	41.283	46.565	48.558
Cash and invested cash	1.502	1.996	3.095	1.700	2.265	1.600	1.691	1.635	1.946	1.961	1.711	2.256
Total LNC	84.438	78.264	84.042	82.979	80.005	75.031	77.869	77.419	84.480	85.667	91.054	94.315
Non-affiliate assets managed	40.109	35.889	38.421	39.853	39.531	35.650	38.052	37.501	42.917	45.176	49.587	54.977
Total Assets Managed	124.547	114.153	122.463	122.832	119.536	110.682	115.921	114.920	127.397	130.844	140.641	149.292
Assets Managed by Advisor
Investment Management segment(1)	50.737	44.958	48.412	50.002	48.742	43.362	46.495	45.718	52.456	55.129	62.794	67.075
(See page 27 for additional detail)
DLIA-Corp	36.018	37.337	38.119	37.171	38.476	40.416	41.104	42.130	43.857	42.984	43.024	44.006
(Assets managed internally-see page 27)
Lincoln (UK)	7.027	6.474	6.847	6.772	6.753	6.068	6.351	5.962	6.726	6.887	7.668	7.837
Policy Loans (within business units)	1.947	1.943	1.940	1.918	1.906	1.899	1.946	1.929	1.920	1.910	1.924	1.877
Non-LNC Affiliates	28.818	23.442	27.145	26.970	23.659	18.937	20.026	19.181	22.439	23.933	25.231	28.497
Total Assets Managed	124.547	114.153	122.463	122.832	119.536	110.682	115.921	114.920	127.397	130.844	140.641	149.292

(1) Retail assets under management have been restated to include assets under administration beginning in January of 2000. See details on page 26.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 34

Consolidated Investment Data

Unaudited [Millions of Dollars]

For the Year Ended December 31	1999		2000		2001		2002		2003
Net Investment Income
Fixed maturity AFS securities	2,232.9		2,148.7		2,121.0		2,117.0		2,113.2
Equity AFS securities	20.1		19.5		17.6		15.4		12.3
Trading securities									46.5
Mortgage loans on real estate	369.2		373.8		374.5		356.8		338.3
Real estate	64.1		51.8		49.5		47.4		43.9
Policy loans	116.5		125.0		125.3		134.5		123.2
Invested cash	110.3		87.2		68.4		37.6		7.8
Other investments	51.8		66.8		69.4		16.3		48.8
Investment revenue	2,964.8		2,872.8		2,825.9		2,725.0		2,734.0
Investment expense	(122.4	)	(88.7	)	(117.1	)	(93.1	)	(95.4	)
Net Investment Income	2,842.5		2,784.1		2,708.7		2,631.9		2,638.5
Gross-up of Tax Exempt Income	8.1		7.8		7.2		7.5		7.7
Adjusted Net Invest Income	2,850.5		2,791.9		2,715.9		2,639.4		2,646.2
Mean Invested Assets (Amortized Cost)	39,027.5		37,471.3		37,616.9		38,828.5		41,042.8
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets	7.30	%	7.45	%	7.22	%	6.80	%	6.45	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments	3.8		(17.5	)	(68.7	)	(177.2	)	(11.0	)
Gains(Losses) on Derivatives					(4.9	)	0.8		(1.6	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)	(1,018.1	)	477.7		183.7		557.6		39.8
Incr (Decr) on Derivatives					21.4		24.4		(6.3	)
Securities Available-for-Sale [Billions of Dollars]
Fixed Maturity Sec (Fair Value)	27.689		27.450		28.346		32.767		35.887
Fixed Maturity Sec (Amortized Cost)	28.357		27.373		27.956		31.103		33.743
Equity Securities (Fair Value)	0.604		0.550		0.470		0.337		0.201
Equity Securities (Amortized Cost)	0.481		0.458		0.444		0.334		0.176
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA	22.8	%	22.1	%	17.2	%	20.1	%	22.8	%
AA or better	29.8	%	29.2	%	23.6	%	25.8	%	29.3	%
BB or less	8.0	%	6.7	%	8.3	%	6.6	%	6.8	%

For the Quarter Ended	Mar 2002		Jun 2002		Sep 2002		Dec 2002		Mar 2003		Jun 2003		Sep 2003		Dec 2003		Mar 2004
Net Investment Income
Fixed maturity AFS securities	522.5		523.8		533.6		537.0		542.3		546.8		536.6		487.5		493.0
Equity AFS securities	3.4		4.3		2.7		5.1		2.8		2.9		3.9		2.7		2.4
Trading securities															46.5		47.5
Mortgage loans on real estate	89.5		90.2		90.8		86.4		81.6		84.3		94.5		77.9		100.4
Real estate	12.3		11.9		10.0		13.2		10.7		10.0		10.0		13.2		7.6
Policy loans	30.2		31.1		31.1		42.0		30.9		30.6		30.9		30.8		29.2
Invested cash	12.4		9.1		7.9		8.2		4.5		(1.7	)	3.2		1.7		3.5
Other investments	7.8		9.8		(1.2	)	(0.1	)	8.2		10.7		8.9		20.9		15.0
Investment revenue	678.1		680.2		675.0		691.7		681.0		683.5		688.2		681.3		698.6
Investment expense	(23.3	)	(22.8	)	(22.7	)	(24.4	)	(26.3	)	(23.3	)	(23.8	)	(22.1	)	(21.0	)
Net Investment Income	654.8		657.4		652.4		667.3		654.6		660.2		664.4		659.2		677.5
Gross-up of Tax Exempt Income	1.5		2.0		1.5		2.6		1.7		1.8		2.3		1.8		1.7
Adjusted Net Invest Income	656.3		659.4		653.9		669.9		656.4		662.0		666.8		661.0		679.3
Mean Invested Assets (Amortized Cost)	38,169.9		38,235.5		39,175.8		39,733.1		40,342.2		40,966.9		41,597.9		41,999.1		42,615.7
Ratio of Adjusted Net Invest Inc
Over Mean Invested Assets	6.88	%	6.90	%	6.68	%	6.74	%	6.51	%	6.46	%	6.41	%	6.30	%	6.38	%
Investment Gains (Losses)
Realized Gains (Losses) on Investments	(67.6	)	(52.7	)	(23.6	)	(33.3	)	(58.2	)	(1.1	)	6.4		42.0		(7.9	)
Gains (Losses) on Derivatives	0.1		0.3		0.1		0.2		(1.2	)	(0.6	)	5.9		(5.7	)	(2.5	)
Incr (Decr) in Unreal Gains on Sec
Avail-for-Sale (after DAC/Tax)	(163.9	)	293.8		491.9		(64.3	)	118.7		245.9		(313.4	)	(11.4	)	244.9
Incr (Decr) on Derivatives	1.2		0.0		4.6		1.0		(3.4	)	3.8		(5.6	)	(1.1	)	6.9
Securities Available-for-Sale and Trading [Billions of Dollars]
Fixed Maturity Sec (Fair Value)	28.841		29.725		32.037		32.767		33.887		35.355		35.384		35.887		36.856
Fixed Maturity Sec (Amortized Cost)	27.801		28.335		30.431		31.103		31.905		32.257		32.896		33.743		34.031
Equity Securities (Fair Value)	0.439		0.419		0.397		0.337		0.249		0.257		0.243		0.201		0.200
Equity Securities (Amortized Cost)	0.398		0.374		0.374		0.334		0.247		0.244		0.223		0.176		0.171
% of Fixed Maturity Securities (Based on Fair Value)
Treasuries and AAA	17.8	%	18.2	%	20.0	%	20.1	%	20.3	%	19.5	%	20.4	%	22.8	%	23.4	%
AA or better	24.7	%	25.0	%	26.7	%	25.8	%	25.8	%	25.1	%	26.4	%	29.3	%	29.6	%
BB or less	7.5	%	6.4	%	6.6	%	6.6	%	6.6	%	6.6	%	6.9	%	6.8	%	6.9	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

3/31/2004 PAGE 35

Common Stock / Debt Information

Unaudited [Dollars per Share, except Percentages]

For the Year Ended December 31

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Common Stock [1]

Highest Price

24.125

22.188

26.875

28.500

39.063

49.438

57.500

56.375

52.750

53.650

41.320

Lowest Price

17.344

17.313

17.313

20.375

24.500

33.500

36.000

22.625

38.000

25.150

24.730

Closing Price

21.750

17.500

26.875

26.250

39.063

40.907

40.000

47.313

48.570

31.580

40.370

Dividend Payout Ratio [2]

52.6

%

51.0

%

39.7

%

38.2

%

22.8

%

43.9

%

50.5

%

38.3

%

44.9

%

273.5

%

49.1

%

Yield [3]

3.8

%

4.9

%

3.4

%

3.7

%

2.7

%

2.7

%

2.9

%

2.6

%

2.6

%

4.2

%

3.5

%

Preferred Stock Dividend (Millions)

17.212

17.119

8.644

0.112

0.106

0.100

0.089

0.078

0.071

0.061

0.057

Debt: (End of Period)

Senior Debt Ratings

A.M. Best

a

a

a

a-

Fitch

AA-

AA-

AA-

AA-

AA-

A+

A+

A+

A+

A

A

Moody’s

A2

A1

A2

A2

A2

A2

A2

A3

A3

A3

A3

Standard and Poors

A+

A+

A

A

A

A-

A-

A-

A-

A-

A-

Claims Paying Ratings:

Lincoln Life - A.M. Best

A+

A+

A+

A+

A+

A

A

A

A

A+

A+

Lincoln Life - Fitch

AAA

AAA

AA+

AA+

AA+

AA+

AA+

AA

AA

AA

AA

Lincoln Life - Moody’s

A1

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Lincoln Life - Standard & Poors

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

First Penn - A.M. Best*

A+

A+

A+

A+

A+

A

A

A

A

A+

A+

First Penn - Fitch

AA+

AA+

AA+

AA

AA

AA

AA

First Penn - Moody’s

A1

A1

A1

A1

A1

A1

A1

First Penn - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

LLA of New York - A.M. Best*

A+

A+

A

A

A

A

A+

A+

LLA of New York - Fitch*

AA+

AA+

AA+

AA

AA

AA

AA

LLA of New York - Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

LLA of New York - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

Ratios

Debt to Total Capitalization [4]

21.1

%

19.9

%

22.8

%

18.8

%

17.0

%

21.2

%

23.2

%

20.8

%

21.3

%

23.4

%

20.7

%

Debt to Equity [4]

26.7

%

24.9

%

29.5

%

23.1

%

20.5

%

26.9

%

30.3

%

26.3

%

27.0

%

30.5

%

26.1

%

For the Quarter Ended

Jun 2001

Sep 2001

Dec 2001

Mar 2002

Jun 2002

Sep 2002

Dec 2002

Mar 2003

Jun 2003

Sep 2003

Dec 2003

Mar 2004

Common Stock:

Highest Price

52.300

52.750

49.450

53.650

52.540

42.080

35.950

35.700

37.500

38.640

41.320

48.870

Lowest Price

41.280

41.000

40.000

47.200

40.750

29.120

25.150

24.730

27.870

34.630

35.410

40.060

Closing Price

51.750

46.630

48.570

50.730

42.000

30.550

31.580

28.000

35.630

35.380

40.370

47.320

Yield [3]

2.4

%

2.6

%

2.6

%

2.5

%

3.0

%

4.2

%

4.2

%

4.8

%

3.8

%

3.8

%

3.5

%

3.0

%

Preferred Stock Dividend (Millions)

0.018

0.017

0.017

0.016

0.015

0.015

0.015

0.014

0.016

0.014

0.014

0.013

Debt: (End of Period)

Senior Debt Ratings

A.M. Best

a

a

a

a

a

a

a

a

a

a

a-

a-

Fitch

A+

A+

A+

A+

A+

A

A

A

A

A

A

A

Moody’s

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

A3

Standard and Poors

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

A-

Claims Paying Ratings:

Lincoln Life - A.M. Best

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

A+

Lincoln Life - Fitch

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

Lincoln Life - Moody’s

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Aa3

Lincoln Life - Standard & Poors

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

First Penn - A.M. Best*

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

A+

First Penn - Fitch

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

First Penn - Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

First Penn - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

LLA of New York - A.M. Best*

A

A

A

A

A+

A+

A+

A+

A+

A+

A+

A+

LLA of New York - Fitch*

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

AA

LLA of New York - Moody’s

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

A1

LLA of New York - Standard & Poors*

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

AA-

Ratios

Debt to Total Capitalization [4]

21.1

%

21.0

%

21.3

%

22.5

%

22.5

%

23.0

%

23.4

%

23.1

%

22.3

%

21.5

%

20.7

%

22.8

%

Debt to Equity [4]

26.7

%

26.6

%

27.0

%

29.1

%

29.0

%

29.9

%

30.5

%

30.0

%

28.7

%

27.5

%

26.1

%

29.5

%

  * Rating based on affiliation with Lincoln Life

[1] Stock prices include 2-for-1 splits in June 1993 and June 1999

[2] Indicated dividend divided by net income

[3] Indicated dividend divided by the closing price

[4] Equity used in calculation excludes accumulated other comprehensive income(loss). Junior subordinated debentures issued to affiliated trusts (hybrid securities) are considered 50% debt and 50% equity.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.