Quarterly Results of Operations

12 Months Ended

Dec. 31, 2022

Quarterly Results of Operations [Abstract]

Quarterly Results of Operations

24. Quarterly Results of Operations (Unaudited)

As further described in Note 1, the previously reported financial information for all quarters in 2022 and 2021 has been restated and is reflected in the tables that follow.  See “Restatement of Previously Issued Consolidated Financial Statements – Description of Misstatements” in Note 1 for a description of the restatement adjustments.  The unaudited interim financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented.  Restated amounts are computed independently for each quarter presented; therefore, the sum of the quarterly amounts may not equal the total amount for the respective year due to rounding.

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As Restated
	As of		As of			As of
	March 31,		June 30,		September 30,
	2021		2021			2021
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: $104,684, $105,530 and $106,752 at March 31, 2021,
June 30, 2021 and September 30, 2021, respectively; allowance for credit
losses: $14, $9 and $17 at March 31, 2021, June 30, 2021 and
September 30, 2021, respectively)	$	115,695	$	120,452		$	120,794
Trading securities		4,287		4,154			4,114
Equity securities		142		191			260
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: $874, $818 and $792 at March 31, 2021, June 30,
2021 and September 30, 2021, respectively)		17,159		17,487			17,633
Policy loans		2,487		2,395			2,364
Derivative investments		3,482		4,729			5,075
Other investments		3,023		3,221			3,302
Total investments		146,275		152,629			153,542
Cash and invested cash		1,086		1,914			2,194
Deferred acquisition costs and value of business acquired		7,606		6,207			5,918
Accrued investment income		1,255		1,215			1,251
Reinsurance recoverables, net of allowance for credit losses		18,583		18,257			18,207
Goodwill		1,778		1,778			1,778
Other assets		21,930		22,871			22,941
Separate account assets		171,339		178,795			175,667
Total assets	$	369,852	$	383,666		$	381,498
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	38,941	$	39,621		$	40,016
Other contract holder funds		106,461		108,249			108,765
Short-term debt		568		457			483
Long-term debt		2,332		2,332			2,333
Payables for collateral on investments		7,593		8,192			8,378
Other liabilities		20,415		21,934			22,308
Separate account liabilities		171,339		178,795			175,667
Total liabilities		347,649		359,580			357,950
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,919		11,930			11,940
Retained earnings		4,444		4,595			4,664
Accumulated other comprehensive income (loss)		5,840		7,561			6,944
Total stockholder’s equity		22,203		24,086			23,548
Total liabilities and stockholder’s equity	$	369,852	$	383,666		$	381,498

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As Restated
	As of		As of			As of
	March 31,		June 30,		September 30,
	2022		2022			2022
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: $106,939, $108,963 and $110,323 at March 31, 2022,
June 30, 2022 and September 30, 2022, respectively; allowance for credit
losses: $20, $12 and $18 at March 31, 2022, June 30, 2022 and
September 30, 2022, respectively)	$	109,889	$	102,954		$	97,391
Trading securities		4,313		3,760			3,527
Equity securities		393		412			427
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: $537, $528 and $495 at March 31, 2022, June 30,
2022 and September 30, 2022, respectively)		17,795		17,830			17,975
Policy loans		2,325		2,355			2,333
Derivative investments		4,574		3,167			3,398
Other investments		3,521		3,782			3,620
Total investments		142,810		134,260			128,671
Cash and invested cash		1,722		1,277			1,291
Deferred acquisition costs and value of business acquired		8,689		11,832			13,765
Accrued investment income		1,209		1,196			1,238
Reinsurance recoverables, net of allowance for credit losses		22,870		23,554			24,256
Goodwill		1,778		1,778			1,144
Other assets		22,284		20,447			21,560
Separate account assets		168,879		145,791			137,295
Total assets	$	370,241	$	340,135		$	329,220
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	39,186	$	38,735		$	41,162
Other contract holder funds		112,399		114,652			117,756
Short-term debt		737		698			771
Long-term debt		2,311		2,267			2,267
Payables for collateral on investments		8,905		7,525			6,855
Other liabilities		19,524		17,378			16,635
Separate account liabilities		168,879		145,791			137,295
Total liabilities		351,941		327,046			322,741
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,948		12,020			12,114
Retained earnings		4,799		4,962			2,398
Accumulated other comprehensive income (loss)		1,553		(3,893	)		(8,033	)
Total stockholder’s equity		18,300		13,089			6,479
Total liabilities and stockholder’s equity	$	370,241	$	340,135		$	329,220

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	As Restated
	For the Three Months Ended
	March 31,			June 30,		September 30,				December 31,
	2021			2021			2021			2021
Revenues
Insurance premiums	$	1,324		$	1,334		$	1,341		$	1,360
Fee income		1,529			1,603			1,931			1,567
Net investment income		1,446			1,509			1,510			1,374
Realized gain (loss)		212			(169	)		(32	)		700
Amortization of deferred gain on business sold through
reinsurance		7			7			8			10
Other revenues		170			162			149			176
Total revenues		4,688			4,446			4,907			5,187
Expenses
Interest credited		738			740			742			691
Benefits		2,183			1,848			1,839			2,169
Commissions and other expenses		1,171			1,260			1,841			1,276
Interest and debt expense		29			28			29			28
Spark program expense		13			21			22			31
Total expenses		4,134			3,897			4,473			4,195
Income (loss) before taxes		554			549			434			992
Federal income tax expense (benefit)		97			83			65			176
Net income (loss)		457			466			369			816
Other comprehensive income (loss), net of tax		(3,181	)		1,721			(617	)		(400	)
Comprehensive income (loss)	$	(2,724	)	$	2,187		$	(248	)	$	416

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	As Restated
	For the Three Months Ended
	March 31,			June 30,		September 30,				December 31,
	2022			2022			2022			2022
Revenues
Insurance premiums	$	1,406		$	1,436		$	1,496		$	1,503
Fee income		1,502			1,446			1,438			1,397
Net investment income		1,352			1,338			1,241			1,343
Realized gain (loss)		257			70			11			(124	)
Amortization of deferred gain on business sold through
reinsurance		10			10			9			8
Other revenues		154			133			162			172
Total revenues		4,681			4,433			4,357			4,299
Expenses
Interest credited		691			701			717			740
Benefits		2,199			2,051			4,498			2,053
Commissions and other expenses		1,191			1,077			1,205			1,326
Interest and debt expense		29			31			36			41
Spark program expense		31			44			44			48
Impairment of intangibles		-			-			634			-
Total expenses		4,141			3,904			7,134			4,208
Income (loss) before taxes		540			529			(2,777	)		91
Federal income tax expense (benefit)		82			86			(488	)		(14	)
Net income (loss)		458			443			(2,289	)		105
Other comprehensive income (loss), net of tax		(4,991	)		(5,446	)		(4,140	)		960
Comprehensive income (loss)	$	(4,533	)	$	(5,003	)	$	(6,429	)	$	1,065

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Unaudited, in millions)

	As Restated
	For the Three Months Ended
	March 31,			June 30,		September 30,
	2021			2021			2021
Common Stock
Balance as of beginning-of-period	$	11,853		$	11,919		$	11,930
Capital contribution from Lincoln National Corporation		65			-			-
Stock compensation/issued for benefit plans		1			11			10
Balance as of end-of-period		11,919			11,930			11,940
Retained Earnings
Balance as of beginning-of-period		4,167			4,444			4,595
Net income (loss)		457			466			369
Dividends paid to Lincoln National Corporation		(180	)		(315	)		(300	)
Balance as of end-of-period		4,444			4,595			4,664
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		9,021			5,840			7,561
Other comprehensive income (loss), net of tax		(3,181	)		1,721			(617	)
Balance as of end-of-period		5,840			7,561			6,944
Total stockholder’s equity as of end-of-period	$	22,203		$	24,086		$	23,548

	As Restated
	For the Three Months Ended
	March 31,			June 30,		September 30,
	2022			2022			2022
Common Stock
Balance as of beginning-of-period	$	11,950		$	11,948		$	12,020
Capital contribution from Lincoln National Corporation		-			65			80
Stock compensation/issued for benefit plans		(2	)		7			14
Balance as of end-of-period		11,948			12,020			12,114
Retained Earnings
Balance as of beginning-of-period		4,366			4,799			4,962
Net income (loss)		458			443			(2,289	)
Dividends paid to Lincoln National Corporation		(25	)		(280	)		(275	)
Balance as of end-of-period		4,799			4,962			2,398
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		6,544			1,553			(3,893	)
Other comprehensive income (loss), net of tax		(4,991	)		(5,446	)		(4,140	)
Balance as of end-of-period		1,553			(3,893	)		(8,033	)
Total stockholder’s equity as of end-of-period	$	18,300		$	13,089		$	6,479

‎

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	As Restated
	Three			Six			Nine
	Months			Months			Months
	Ended			Ended			Ended
	March 31,			June 30,			September 30,
	2021			2021			2021
Cash Flows from Operating Activities
Net income (loss)	$	457		$	923		$	1,292
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(212	)		(43	)		(11	)
Sales and maturities (purchases) of trading securities, net		118			230			239
Amortization of deferred gain (loss) on business sold through reinsurance		(7	)		(14	)		(22	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		50			106			325
Premiums and fees receivable		(163	)		(98	)		(99	)
Accrued investment income		(51	)		(11	)		(44	)
Insurance liabilities and reinsurance-related balances		(263	)		5			(301	)
Accrued expenses		(35	)		35			200
Federal income tax accruals		97			167			233
Cash management agreement		(182	)		(1,223	)		(1,367	)
Other		(203	)		(219	)		(226	)
Net cash provided by (used in) operating activities		(394	)		(142	)		219
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(3,803	)		(8,212	)		(11,776	)
Sales of available-for-sale securities and equity securities		592			1,277			1,441
Maturities of available-for-sale securities		1,862			4,570			6,897
Purchases of alternative investments		(163	)		(360	)		(504	)
Sales and repayments of alternative investments		54			128			258
Issuance of mortgage loans on real estate		(868	)		(1,609	)		(2,188	)
Repayment and maturities of mortgage loans on real estate		398			846			1,267
Repayment (issuance) of policy loans, net		(76	)		16			47
Net change in collateral on investments, derivatives and related settlements		987			1,704			2,132
Other		(30	)		(67	)		(181	)
Net cash provided by (used in) investing activities		(1,047	)		(1,707	)		(2,607	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65			65			65
Payment of long-term debt, including current maturities		(60	)		(60	)		(60	)
Issuance (payment) of short-term debt		71			(40	)		(14	)
Proceeds from certain financing arrangements		-			50			50
Deposits of fixed account values, including the fixed portion of variable		3,136			6,370			9,138
Withdrawals of fixed account values, including the fixed portion of variable		(1,764	)		(3,260	)		(4,935	)
Transfers from (to) separate accounts, net		(130	)		(255	)		(254	)
Common stock issued for benefit plans		(10	)		(11	)		(12	)
Dividends paid to Lincoln National Corporation		(180	)		(495	)		(795	)
Other		(63	)		(63	)		(63	)
Net cash provided by (used in) financing activities		1,065			2,301			3,120
Net increase (decrease) in cash, invested cash and restricted cash		(376	)		452			732
Cash, invested cash and restricted cash as of beginning-of-year		1,462			1,462			1,462
Cash, invested cash and restricted cash as of end-of-period	$	1,086		$	1,914		$	2,194

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	As Restated
	Three			Six			Nine
	Months			Months			Months
	Ended			Ended			Ended
	March 31,			June 30,			September 30,
	2022			2022			2022
Cash Flows from Operating Activities
Net income (loss)	$	458		$	900		$	(1,389	)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(257	)		(327	)		(338	)
Sales and maturities (purchases) of trading securities, net		(189	)		109			164
Amortization of deferred gain (loss) on business sold through reinsurance		(10	)		(20	)		(29	)
Impairment of intangibles		-			-			634
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		24			(10	)		3
Premiums and fees receivable		(91	)		(71	)		(2	)
Accrued investment income		(44	)		(40	)		(77	)
Insurance liabilities and reinsurance-related balances		299			81			2,311
Accrued expenses		(229	)		(340	)		(375	)
Federal income tax accruals		82			192			(308	)
Cash management agreement		872			2,427			2,803
Other		(3	)		224			478
Net cash provided by (used in) operating activities		912			3,125			3,875
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(3,910	)		(8,090	)		(11,961	)
Sales of available-for-sale securities and equity securities		105			236			1,231
Maturities of available-for-sale securities		1,566			3,165			4,339
Purchases of alternative investments		(141	)		(300	)		(453	)
Sales and repayments of alternative investments		130			181			380
Issuance of mortgage loans on real estate		(539	)		(1,366	)		(1,924	)
Repayment and maturities of mortgage loans on real estate		716			1,422			1,866
Repayment (issuance) of policy loans, net		25			(6	)		16
Net change in collateral on investments, derivatives and related settlements		(242	)		(2,322	)		(3,667	)
Other		(76	)		(93	)		(83	)
Net cash provided by (used in) investing activities		(2,366	)		(7,173	)		(10,256	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		-			65			145
Payment of long-term debt, including current maturities		-			(40	)		(40	)
Issuance (payment) of short-term debt		(347	)		(385	)		(313	)
Payment related to sale-leaseback transactions		(4	)		(47	)		(52	)
Proceeds from certain financing arrangements		-			53			53
Deposits of fixed account values, including the fixed portion of variable		3,041			6,892			11,049
Withdrawals of fixed account values, including the fixed portion of variable		(1,873	)		(3,334	)		(4,970	)
Transfers from (to) separate accounts, net		70			116			71
Common stock issued for benefit plans		(17	)		(21	)		(21	)
Dividends paid to Lincoln National Corporation		(25	)		(305	)		(580	)
Other		-			-			(1	)
Net cash provided by (used in) financing activities		845			2,994			5,341
Net increase (decrease) in cash, invested cash and restricted cash		(609	)		(1,054	)		(1,040	)
Cash, invested cash and restricted cash as of beginning-of-year		2,331			2,331			2,331
Cash, invested cash and restricted cash as of end-of-period	$	1,722		$	1,277		$	1,291

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of March 31, 2021
	As
	Previously		Restatement			As
	Reported		Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2021 - $104,684; allowance for credit losses: 2021 - $14)	$	115,695	$	-		$	115,695
Trading securities		4,308		(21	)		4,287
Equity securities		121		21			142
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2021 - $874)		17,159		-			17,159
Policy loans		2,487		-			2,487
Derivative investments		3,453		29			3,482
Other investments		3,024		(1	)		3,023
Total investments		146,247		28			146,275
Cash and invested cash		1,086		-			1,086
Deferred acquisition costs and value of business acquired		7,606		-			7,606
Accrued investment income		1,255		-			1,255
Reinsurance recoverables, net of allowance for credit losses		18,583		-			18,583
Goodwill		1,778		-			1,778
Other assets		22,344		(414	)		21,930
Separate account assets		171,339		-			171,339
Total assets	$	370,238	$	(386	)	$	369,852
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	38,940	$	1		$	38,941
Other contract holder funds		106,461		-			106,461
Short-term debt		568		-			568
Long-term debt		2,332		-			2,332
Payables for collateral on investments		7,593		-			7,593
Other liabilities		20,795		(380	)		20,415
Separate account liabilities		171,339		-			171,339
Total liabilities		348,028		(379	)		347,649
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,919		-			11,919
Retained earnings		4,451		(7	)		4,444
Accumulated other comprehensive income (loss)		5,840		-			5,840
Total stockholder’s equity		22,210		(7	)		22,203
Total liabilities and stockholder’s equity	$	370,238	$	(386	)	$	369,852

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of June 30, 2021
	As
	Previously		Restatement			As
	Reported		Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2021 - $105,530; allowance for credit losses: 2021 - $9)	$	120,452	$	-		$	120,452
Trading securities		4,175		(21	)		4,154
Equity securities		170		21			191
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2021 - $818)		17,487		-			17,487
Policy loans		2,395		-			2,395
Derivative investments		4,547		182			4,729
Other investments		3,223		(2	)		3,221
Total investments		152,449		180			152,629
Cash and invested cash		1,914		-			1,914
Deferred acquisition costs and value of business acquired		6,207		-			6,207
Accrued investment income		1,215		-			1,215
Reinsurance recoverables, net of allowance for credit losses		18,257		-			18,257
Goodwill		1,778		-			1,778
Other assets		23,513		(642	)		22,871
Separate account assets		178,795		-			178,795
Total assets	$	384,128	$	(462	)	$	383,666
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	39,620	$	1		$	39,621
Other contract holder funds		108,249		-			108,249
Short-term debt		457		-			457
Long-term debt		2,332		-			2,332
Payables for collateral on investments		8,192		-			8,192
Other liabilities		22,394		(460	)		21,934
Separate account liabilities		178,795		-			178,795
Total liabilities		360,039		(459	)		359,580
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,930		-			11,930
Retained earnings		4,598		(3	)		4,595
Accumulated other comprehensive income (loss)		7,561		-			7,561
Total stockholder’s equity		24,089		(3	)		24,086
Total liabilities and stockholder’s equity	$	384,128	$	(462	)	$	383,666

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of September 30, 2021
	As
	Previously		Restatement			As
	Reported		Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2021 - $106,752; allowance for credit losses: 2021 - $17)	$	120,794	$	-		$	120,794
Trading securities		4,135		(21	)		4,114
Equity securities		239		21			260
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2021 - $792)		17,633		-			17,633
Policy loans		2,364		-			2,364
Derivative investments		4,828		247			5,075
Other investments		3,305		(3	)		3,302
Total investments		153,298		244			153,542
Cash and invested cash		2,194		-			2,194
Deferred acquisition costs and value of business acquired		5,917		1			5,918
Accrued investment income		1,251		-			1,251
Reinsurance recoverables, net of allowance for credit losses		18,207		-			18,207
Goodwill		1,778		-			1,778
Other assets		23,564		(623	)		22,941
Separate account assets		175,667		-			175,667
Total assets	$	381,876	$	(378	)	$	381,498
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	40,016	$	-		$	40,016
Other contract holder funds		108,762		3			108,765
Short-term debt		483		-			483
Long-term debt		2,333		-			2,333
Payables for collateral on investments		8,378		-			8,378
Other liabilities		22,683		(375	)		22,308
Separate account liabilities		175,667		-			175,667
Total liabilities		358,322		(372	)		357,950
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,940		-			11,940
Retained earnings		4,670		(6	)		4,664
Accumulated other comprehensive income (loss)		6,944		-			6,944
Total stockholder’s equity		23,554		(6	)		23,548
Total liabilities and stockholder’s equity	$	381,876	$	(378	)	$	381,498

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of March 31, 2022
	As
	Previously		Restatement			As
	Reported		Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2022 - $106,939; allowance for credit losses: 2022 - $20)	$	109,921	$	(32	)	$	109,889
Trading securities		4,334		(21	)		4,313
Equity securities		340		53			393
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2022 - $537)		17,795		-			17,795
Policy loans		2,325		-			2,325
Derivative investments		4,840		(266	)		4,574
Other investments		3,527		(6	)		3,521
Total investments		143,082		(272	)		142,810
Cash and invested cash		1,722		-			1,722
Deferred acquisition costs and value of business acquired		8,688		1			8,689
Accrued investment income		1,209		-			1,209
Reinsurance recoverables, net of allowance for credit losses		22,870		-			22,870
Goodwill		1,778		-			1,778
Other assets		22,490		(206	)		22,284
Separate account assets		168,879		-			168,879
Total assets	$	370,718	$	(477	)	$	370,241
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	39,186	$	-		$	39,186
Other contract holder funds		112,387		12			112,399
Short-term debt		737		-			737
Long-term debt		2,311		-			2,311
Payables for collateral on investments		8,905		-			8,905
Other liabilities		20,484		(960	)		19,524
Separate account liabilities		168,879		-			168,879
Total liabilities		352,889		(948	)		351,941
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		11,948		-			11,948
Retained earnings		4,330		469			4,799
Accumulated other comprehensive income (loss)		1,551		2			1,553
Total stockholder’s equity		17,829		471			18,300
Total liabilities and stockholder’s equity	$	370,718	$	(477	)	$	370,241

‎

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of June 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2022 - $108,963; allowance for credit losses: 2022 - $12)	$	103,002		$	(48	)	$	102,954
Trading securities		3,778			(18	)		3,760
Equity securities		345			67			412
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2022 - $528)		17,830			-			17,830
Policy loans		2,355			-			2,355
Derivative investments		3,370			(203	)		3,167
Other investments		3,758			24			3,782
Total investments		134,438			(178	)		134,260
Cash and invested cash		1,277			-			1,277
Deferred acquisition costs and value of business acquired		11,832			-			11,832
Accrued investment income		1,196			-			1,196
Reinsurance recoverables, net of allowance for credit losses		23,554			-			23,554
Goodwill		1,778			-			1,778
Other assets		20,569			(122	)		20,447
Separate account assets		145,791			-			145,791
Total assets	$	340,435		$	(300	)	$	340,135
LIABILITIES AND STOCKHOLDER’S EQUITY
Liabilities
Future contract benefits	$	38,735		$	-		$	38,735
Other contract holder funds		114,634			18			114,652
Short-term debt		698			-			698
Long-term debt		2,267			-			2,267
Payables for collateral on investments		7,525			-			7,525
Other liabilities		18,158			(780	)		17,378
Separate account liabilities		145,791			-			145,791
Total liabilities		327,808			(762	)		327,046
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		12,020			-			12,020
Retained earnings		4,506			456			4,962
Accumulated other comprehensive income (loss)		(3,899	)		6			(3,893	)
Total stockholder’s equity		12,627			462			13,089
Total liabilities and stockholder’s equity	$	340,435		$	(300	)	$	340,135

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions, except share data)

	As of September 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
ASSETS
Investments:
Fixed maturity available-for-sale securities, at fair value
(amortized cost: 2022 - $110,323; allowance for credit losses: 2022 - $18)	$	97,391		$	-		$	97,391
Trading securities		3,527			-			3,527
Equity securities		427			-			427
Mortgage loans on real estate, net of allowance for credit losses
(portion at fair value: 2022 - $495)		17,975			-			17,975
Policy loans		2,333			-			2,333
Derivative investments		3,624			(226	)		3,398
Other investments		3,627			(7	)		3,620
Total investments		128,904			(233	)		128,671
Cash and invested cash		1,291			-			1,291
Deferred acquisition costs and value of business acquired		13,757			8			13,765
Accrued investment income		1,238			-			1,238
Reinsurance recoverables, net of allowance for credit losses		24,256			-			24,256
Goodwill		1,144			-			1,144
Other assets		21,848			(288	)		21,560
Separate account assets		137,295			-			137,295
Total assets	$	329,733		$	(513	)	$	329,220
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Future contract benefits	$	41,162		$	-		$	41,162
Other contract holder funds		117,729			27			117,756
Short-term debt		771			-			771
Long-term debt		2,267			-			2,267
Payables for collateral on investments		6,855			-			6,855
Other liabilities		17,629			(994	)		16,635
Separate account liabilities		137,295			-			137,295
Total liabilities		323,708			(967	)		322,741
Contingencies and Commitments (See Note 13)
Stockholder’s Equity
Common stock – 10,000,000 shares authorized, issued and outstanding		12,114			-			12,114
Retained earnings		1,944			454			2,398
Accumulated other comprehensive income (loss)		(8,033	)		-			(8,033	)
Total stockholder’s equity		6,025			454			6,479
Total liabilities and stockholder’s equity	$	329,733		$	(513	)	$	329,220

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	March 31, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,330		$	(6	)	$	1,324
Fee income		1,524			5			1,529
Net investment income		1,447			(1	)		1,446
Realized gain (loss)		211			1			212
Amortization of deferred gain on business sold through reinsurance		7			-			7
Other revenues		170			-			170
Total revenues		4,689			(1	)		4,688
Expenses
Interest credited		731			7			738
Benefits		2,182			1			2,183
Commissions and other expenses		1,171			-			1,171
Interest and debt expense		29			-			29
Spark program expense		13			-			13
Total expenses		4,126			8			4,134
Income (loss) before taxes		563			(9	)		554
Federal income tax expense (benefit)		99			(2	)		97
Net income (loss)		464			(7	)		457
Other comprehensive income (loss), net of tax		(3,181	)		-			(3,181	)
Comprehensive income (loss)	$	(2,717	)	$	(7	)	$	(2,724	)

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	June 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,328		$	6		$	1,334
Fee income		1,600			3			1,603
Net investment income		1,510			(1	)		1,509
Realized gain (loss)		(172	)		3			(169	)
Amortization of deferred gain on business sold through reinsurance		7			-			7
Other revenues		162			-			162
Total revenues		4,435			11			4,446
Expenses
Interest credited		732			8			740
Benefits		1,848			-			1,848
Commissions and other expenses		1,262			(2	)		1,260
Interest and debt expense		28			-			28
Spark program expense		21			-			21
Total expenses		3,891			6			3,897
Income (loss) before taxes		544			5			549
Federal income tax expense (benefit)		82			1			83
Net income (loss)		462			4			466
Other comprehensive income (loss), net of tax		1,721			-			1,721
Comprehensive income (loss)	$	2,183		$	4		$	2,187

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	September 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,341		$	-		$	1,341
Fee income		1,927			4			1,931
Net investment income		1,511			(1	)		1,510
Realized gain (loss)		(24	)		(8	)		(32	)
Amortization of deferred gain on business sold through reinsurance		8			-			8
Other revenues		149			-			149
Total revenues		4,912			(5	)		4,907
Expenses
Interest credited		744			(2	)		742
Benefits		1,840			(1	)		1,839
Commissions and other expenses		1,839			2			1,841
Interest and debt expense		29			-			29
Spark program expense		22			-			22
Total expenses		4,474			(1	)		4,473
Income (loss) before taxes		438			(4	)		434
Federal income tax expense (benefit)		66			(1	)		65
Net income (loss)		372			(3	)		369
Other comprehensive income (loss), net of tax		(617	)		-			(617	)
Comprehensive income (loss)	$	(245	)	$	(3	)	$	(248	)

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	December 31, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,360		$	-		$	1,360
Fee income		1,561			6			1,567
Net investment income		1,376			(2	)		1,374
Realized gain (loss)		74			626			700
Amortization of deferred gain on business sold through reinsurance		18			(8	)		10
Other revenues		176			-			176
Total revenues		4,565			622			5,187
Expenses
Interest credited		686			5			691
Benefits		2,169			-			2,169
Commissions and other expenses		1,274			2			1,276
Interest and debt expense		28			-			28
Spark program expense		31			-			31
Total expenses		4,188			7			4,195
Income (loss) before taxes		377			615			992
Federal income tax expense (benefit)		46			130			176
Net income (loss)		331			485			816
Other comprehensive income (loss), net of tax		(400	)		-			(400	)
Comprehensive income (loss)	$	(69	)	$	485		$	416

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	March 31, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,406		$	-		$	1,406
Fee income		1,502			-			1,502
Net investment income		1,353			(1	)		1,352
Realized gain (loss)		266			(9	)		257
Amortization of deferred gain on business sold through reinsurance		18			(8	)		10
Other revenues		151			3			154
Total revenues		4,696			(15	)		4,681
Expenses
Interest credited		691			-			691
Benefits		2,199			-			2,199
Commissions and other expenses		1,192			(1	)		1,191
Interest and debt expense		29			-			29
Spark program expense		31			-			31
Total expenses		4,142			(1	)		4,141
Income (loss) before taxes		554			(14	)		540
Federal income tax expense (benefit)		85			(3	)		82
Net income (loss)		469			(11	)		458
Other comprehensive income (loss), net of tax		(4,993	)		2			(4,991	)
Comprehensive income (loss)	$	(4,524	)	$	(9	)	$	(4,533	)

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	June 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,436		$	-		$	1,436
Fee income		1,446			-			1,446
Net investment income		1,309			29			1,338
Realized gain (loss)		82			(12	)		70
Amortization of deferred gain on business sold through reinsurance		18			(8	)		10
Other revenues		163			(30	)		133
Total revenues		4,454			(21	)		4,433
Expenses
Interest credited		701			-			701
Benefits		2,051			-			2,051
Commissions and other expenses		1,081			(4	)		1,077
Interest and debt expense		31			-			31
Spark program expense		44			-			44
Total expenses		3,908			(4	)		3,904
Income (loss) before taxes		546			(17	)		529
Federal income tax expense (benefit)		90			(4	)		86
Net income (loss)		456			(13	)		443
Other comprehensive income (loss), net of tax		(5,450	)		4			(5,446	)
Comprehensive income (loss)	$	(4,994	)	$	(9	)	$	(5,003	)

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	September 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,496		$	-		$	1,496
Fee income		1,438			-			1,438
Net investment income		1,272			(31	)		1,241
Realized gain (loss)		5			6			11
Amortization of deferred gain on business sold through reinsurance		17			(8	)		9
Other revenues		135			27			162
Total revenues		4,363			(6	)		4,357
Expenses
Interest credited		717			-			717
Benefits		4,498			-			4,498
Commissions and other expenses		1,208			(3	)		1,205
Interest and debt expense		36			-			36
Spark program expense		44			-			44
Impairment of intangibles		634			-			634
Total expenses		7,137			(3	)		7,134
Income (loss) before taxes		(2,774	)		(3	)		(2,777	)
Federal income tax expense (benefit)		(487	)		(1	)		(488	)
Net income (loss)		(2,287	)		(2	)		(2,289	)
Other comprehensive income (loss), net of tax		(4,134	)		(6	)		(4,140	)
Comprehensive income (loss)	$	(6,421	)	$	(8	)	$	(6,429	)

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)

	For the Three Months Ended
	December 31, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Revenues
Insurance premiums	$	1,503		$	-		$	1,503
Fee income		1,397			-			1,397
Net investment income		1,336			7			1,343
Realized gain (loss)		(152	)		28			(124	)
Amortization of deferred gain on business sold through reinsurance		16			(8	)		8
Other revenues		172			-			172
Total revenues		4,272			27			4,299
Expenses
Interest credited		740			-			740
Benefits		2,053			-			2,053
Commissions and other expenses		1,318			8			1,326
Interest and debt expense		41			-			41
Spark program expense		48			-			48
Total expenses		4,200			8			4,208
Income (loss) before taxes		72			19			91
Federal income tax expense (benefit)		(17	)		3			(14	)
Net income (loss)		89			16			105
Other comprehensive income (loss), net of tax		960			-			960
Comprehensive income (loss)	$	1,049		$	16		$	1,065

‎

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Unaudited, in millions)

	For the Three Months Ended
	March 31, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-year	$	11,853		$	-		$	11,853
Capital contribution from Lincoln National Corporation		65			-			65
Stock compensation/issued for benefit plans		1			-			1
Balance as of end-of-period		11,919			-			11,919
Retained Earnings
Balance as of beginning-of-year		4,167			-			4,167
Net income (loss)		464			(7	)		457
Dividends paid to Lincoln National Corporation		(180	)		-			(180	)
Balance as of end-of-period		4,451			(7	)		4,444
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-year		9,021			-			9,021
Other comprehensive income (loss), net of tax		(3,181	)		-			(3,181	)
Balance as of end-of-period		5,840			-			5,840
Total stockholder’s equity as of end-of-period	$	22,210		$	(7	)	$	22,203

	For the Three Months Ended
	June 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-period	$	11,919		$	-		$	11,919
Capital contribution from Lincoln National Corporation		-			-			-
Stock compensation/issued for benefit plans		11			-			11
Balance as of end-of-period		11,930			-			11,930
Retained Earnings
Balance as of beginning-of-period		4,451			(7	)		4,444
Net income (loss)		462			4			466
Dividends paid to Lincoln National Corporation		(315	)		-			(315	)
Balance as of end-of-period		4,598			(3	)		4,595
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		5,840			-			5,840
Other comprehensive income (loss), net of tax		1,721			-			1,721
Balance as of end-of-period		7,561			-			7,561
Total stockholder’s equity as of end-of-period	$	24,089		$	(3	)	$	24,086

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Unaudited, in millions)

	For the Three Months Ended
	September 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-period	$	11,930		$	-		$	11,930
Capital contribution from Lincoln National Corporation		-			-			-
Stock compensation/issued for benefit plans		10			-			10
Balance as of end-of-period		11,940			-			11,940
Retained Earnings
Balance as of beginning-of-period		4,598			(3	)		4,595
Net income (loss)		372			(3	)		369
Dividends paid to Lincoln National Corporation		(300	)		-			(300	)
Balance as of end-of-period		4,670			(6	)		4,664
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		7,561			-			7,561
Other comprehensive income (loss), net of tax		(617	)		-			(617	)
Balance as of end-of-period		6,944			-			6,944
Total stockholder’s equity as of end-of-period	$	23,554		$	(6	)	$	23,548

	For the Three Months Ended
	March 31, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-year	$	11,950		$	-		$	11,950
Capital contribution from Lincoln National Corporation		-			-			-
Stock compensation/issued for benefit plans		(2	)		-			(2	)
Balance as of end-of-period		11,948			-			11,948
Retained Earnings
Balance as of beginning-of-year		3,886			480			4,366
Net income (loss)		469			(11	)		458
Dividends paid to Lincoln National Corporation		(25	)		-			(25	)
Balance as of end-of-period		4,330			469			4,799
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-year		6,544			-			6,544
Other comprehensive income (loss), net of tax		(4,993	)		2			(4,991	)
Balance as of end-of-period		1,551			2			1,553
Total stockholder’s equity as of end-of-period	$	17,829		$	471		$	18,300

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDER’S EQUITY

(Unaudited, in millions)

	For the Three Months Ended
	June 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-period	$	11,948		$	-		$	11,948
Capital contribution from Lincoln National Corporation		65			-			65
Stock compensation/issued for benefit plans		7			-			7
Balance as of end-of-period		12,020			-			12,020
Retained Earnings
Balance as of beginning-of-period		4,330			469			4,799
Net income (loss)		456			(13	)		443
Dividends paid to Lincoln National Corporation		(280	)		-			(280	)
Balance as of end-of-period		4,506			456			4,962
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		1,551			2			1,553
Other comprehensive income (loss), net of tax		(5,450	)		4			(5,446	)
Balance as of end-of-period		(3,899	)		6			(3,893	)
Total stockholder’s equity as of end-of-period	$	12,627		$	462		$	13,089

	For the Three Months Ended
	September 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Common Stock
Balance as of beginning-of-period	$	12,020		$	-		$	12,020
Capital contribution from Lincoln National Corporation		80			-			80
Stock compensation/issued for benefit plans		14			-			14
Balance as of end-of-period		12,114			-			12,114
Retained Earnings
Balance as of beginning-of-period		4,506			456			4,962
Net income (loss)		(2,287	)		(2	)		(2,289	)
Dividends paid to Lincoln National Corporation		(275	)		-			(275	)
Balance as of end-of-period		1,944			454			2,398
Accumulated Other Comprehensive Income (Loss)
Balance as of beginning-of-period		(3,899	)		6			(3,893	)
Other comprehensive income (loss), net of tax		(4,134	)		(6	)		(4,140	)
Balance as of end-of-period		(8,033	)		-			(8,033	)
Total stockholder’s equity as of end-of-period	$	6,025		$	454		$	6,479

‎

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Three Months Ended
	March 31, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	464		$	(7	)	$	457
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(211	)		(1	)		(212	)
Sales and maturities (purchases) of trading securities, net		98			20			118
Amortization of deferred gain (loss) on business sold through reinsurance		(7	)		-			(7	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		50			-			50
Premiums and fees receivable		(169	)		6			(163	)
Accrued investment income		(51	)		-			(51	)
Insurance liabilities and reinsurance-related balances		(265	)		2			(263	)
Accrued expenses		(35	)		-			(35	)
Federal income tax accruals		99			(2	)		97
Cash management agreement		(182	)		-			(182	)
Other		(204	)		1			(203	)
Net cash provided by (used in) operating activities		(413	)		19			(394	)
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(3,783	)		(20	)		(3,803	)
Sales of available-for-sale securities and equity securities		592			-			592
Maturities of available-for-sale securities		1,862			-			1,862
Purchases of alternative investments		(163	)		-			(163	)
Sales and repayments of alternative investments		54			-			54
Issuance of mortgage loans on real estate		(869	)		1			(868	)
Repayment and maturities of mortgage loans on real estate		398			-			398
Repayment (issuance) of policy loans, net		(76	)		-			(76	)
Net change in collateral on investments, derivatives and related settlements		987			-			987
Other		(30	)		-			(30	)
Net cash provided by (used in) investing activities		(1,028	)		(19	)		(1,047	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65			-			65
Payment of long-term debt, including current maturities		(60	)		-			(60	)
Issuance (payment) of short-term debt		71			-			71
Deposits of fixed account values, including the fixed portion of variable		3,132			4			3,136
Withdrawals of fixed account values, including the fixed portion of variable		(1,768	)		4			(1,764	)
Transfers from (to) separate accounts, net		(122	)		(8	)		(130	)
Common stock issued for benefit plans		(10	)		-			(10	)
Dividends paid to Lincoln National Corporation		(180	)		-			(180	)
Other		(63	)		-			(63	)
Net cash provided by (used in) financing activities		1,065			-			1,065
Net increase (decrease) in cash, invested cash and restricted cash		(376	)		-			(376	)
Cash, invested cash and restricted cash as of beginning-of-year		1,462			-			1,462
Cash, invested cash and restricted cash as of end-of-period	$	1,086		$	-		$	1,086

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Six Months Ended
	June 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	926		$	(3	)	$	923
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(39	)		(4	)		(43	)
Sales and maturities (purchases) of trading securities, net		210			20			230
Amortization of deferred gain (loss) on business sold through reinsurance		(14	)		-			(14	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		109			(3	)		106
Premiums and fees receivable		(98	)		-			(98	)
Accrued investment income		(11	)		-			(11	)
Insurance liabilities and reinsurance-related balances		(3	)		8			5
Accrued expenses		35			-			35
Federal income tax accruals		167			-			167
Cash management agreement		(1,223	)		-			(1,223	)
Other		(219	)		-			(219	)
Net cash provided by (used in) operating activities		(160	)		18			(142	)
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(8,192	)		(20	)		(8,212	)
Sales of available-for-sale securities and equity securities		1,277			-			1,277
Maturities of available-for-sale securities		4,570			-			4,570
Purchases of alternative investments		(360	)		-			(360	)
Sales and repayments of alternative investments		128			-			128
Issuance of mortgage loans on real estate		(1,611	)		2			(1,609	)
Repayment and maturities of mortgage loans on real estate		846			-			846
Repayment (issuance) of policy loans, net		16			-			16
Net change in collateral on investments, derivatives and related settlements		1,704			-			1,704
Other		(67	)		-			(67	)
Net cash provided by (used in) investing activities		(1,689	)		(18	)		(1,707	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65			-			65
Payment of long-term debt, including current maturities		(60	)		-			(60	)
Issuance (payment) of short-term debt		(40	)		-			(40	)
Proceeds from certain financing arrangements		50			-			50
Deposits of fixed account values, including the fixed portion of variable		6,367			3			6,370
Withdrawals of fixed account values, including the fixed portion of variable		(3,283	)		23			(3,260	)
Transfers from (to) separate accounts, net		(229	)		(26	)		(255	)
Common stock issued for benefit plans		(11	)		-			(11	)
Dividends paid to Lincoln National Corporation		(495	)		-			(495	)
Other		(63	)		-			(63	)
Net cash provided by (used in) financing activities		2,301			-			2,301
Net increase (decrease) in cash, invested cash and restricted cash		452			-			452
Cash, invested cash and restricted cash as of beginning-of-year		1,462			-			1,462
Cash, invested cash and restricted cash as of end-of-period	$	1,914		$	-		$	1,914

‎

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Nine Months Ended
	September 30, 2021
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	1,298		$	(6	)	$	1,292
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(16	)		5			(11	)
Sales and maturities (purchases) of trading securities, net		219			20			239
Amortization of deferred gain (loss) on business sold through reinsurance		(22	)		-			(22	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		325			-			325
Premiums and fees receivable		(99	)		-			(99	)
Accrued investment income		(44	)		-			(44	)
Insurance liabilities and reinsurance-related balances		(300	)		(1	)		(301	)
Accrued expenses		200			-			200
Federal income tax accruals		234			(1	)		233
Cash management agreement		(1,367	)		-			(1,367	)
Other		(226	)		-			(226	)
Net cash provided by (used in) operating activities		202			17			219
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(11,756	)		(20	)		(11,776	)
Sales of available-for-sale securities and equity securities		1,441			-			1,441
Maturities of available-for-sale securities		6,897			-			6,897
Purchases of alternative investments		(504	)		-			(504	)
Sales and repayments of alternative investments		258			-			258
Issuance of mortgage loans on real estate		(2,191	)		3			(2,188	)
Repayment and maturities of mortgage loans on real estate		1,267			-			1,267
Repayment (issuance) of policy loans, net		47			-			47
Net change in collateral on investments, derivatives and related settlements		2,132			-			2,132
Other		(181	)		-			(181	)
Net cash provided by (used in) investing activities		(2,590	)		(17	)		(2,607	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65			-			65
Payment of long-term debt, including current maturities		(60	)		-			(60	)
Issuance (payment) of short-term debt		(14	)		-			(14	)
Proceeds from certain financing arrangements		50			-			50
Deposits of fixed account values, including the fixed portion of variable		9,136			2			9,138
Withdrawals of fixed account values, including the fixed portion of variable		(4,935	)		-			(4,935	)
Transfers from (to) separate accounts, net		(252	)		(2	)		(254	)
Common stock issued for benefit plans		(12	)		-			(12	)
Dividends paid to Lincoln National Corporation		(795	)		-			(795	)
Other		(63	)		-			(63	)
Net cash provided by (used in) financing activities		3,120			-			3,120
Net increase (decrease) in cash, invested cash and restricted cash		732			-			732
Cash, invested cash and restricted cash as of beginning-of-year		1,462			-			1,462
Cash, invested cash and restricted cash as of end-of-period	$	2,194		$	-		$	2,194

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Three Months Ended
	March 31, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	469		$	(11	)	$	458
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(266	)		9			(257	)
Sales and maturities (purchases) of trading securities, net		(189	)		-			(189	)
Amortization of deferred gain (loss) on business sold through reinsurance		(18	)		8			(10	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		24			-			24
Premiums and fees receivable		(91	)		-			(91	)
Accrued investment income		(44	)		-			(44	)
Insurance liabilities and reinsurance-related balances		303			(4	)		299
Accrued expenses		(229	)		-			(229	)
Federal income tax accruals		85			(3	)		82
Cash management agreement		872			-			872
Other		-			(3	)		(3	)
Net cash provided by (used in) operating activities		916			(4	)		912
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(3,910	)		-			(3,910	)
Sales of available-for-sale securities and equity securities		105			-			105
Maturities of available-for-sale securities		1,566			-			1,566
Purchases of alternative investments		(141	)		-			(141	)
Sales and repayments of alternative investments		130			-			130
Issuance of mortgage loans on real estate		(540	)		1			(539	)
Repayment and maturities of mortgage loans on real estate		716			-			716
Repayment (issuance) of policy loans, net		25			-			25
Net change in collateral on investments, derivatives and related settlements		(242	)		-			(242	)
Other		(79	)		3			(76	)
Net cash provided by (used in) investing activities		(2,370	)		4			(2,366	)
Cash Flows from Financing Activities
Issuance (payment) of short-term debt		(347	)		-			(347	)
Payment related to sale-leaseback transactions		(4	)		-			(4	)
Deposits of fixed account values, including the fixed portion of variable		3,043			(2	)		3,041
Withdrawals of fixed account values, including the fixed portion of variable		(1,819	)		(54	)		(1,873	)
Transfers from (to) separate accounts, net		14			56			70
Common stock issued for benefit plans		(17	)		-			(17	)
Dividends paid to Lincoln National Corporation		(25	)		-			(25	)
Net cash provided by (used in) financing activities		845			-			845
Net increase (decrease) in cash, invested cash and restricted cash		(609	)		-			(609	)
Cash, invested cash and restricted cash as of beginning-of-year		2,331			-			2,331
Cash, invested cash and restricted cash as of end-of-period	$	1,722		$	-		$	1,722

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Six Months Ended
	June 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	925		$	(25	)	$	900
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(347	)		20			(327	)
Sales and maturities (purchases) of trading securities, net		109			-			109
Amortization of deferred gain (loss) on business sold through reinsurance		(35	)		15			(20	)
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		(8	)		(2	)		(10	)
Premiums and fees receivable		(71	)		-			(71	)
Accrued investment income		(40	)		-			(40	)
Insurance liabilities and reinsurance-related balances		54			27			81
Accrued expenses		(340	)		-			(340	)
Federal income tax accruals		198			(6	)		192
Cash management agreement		2,427			-			2,427
Other		258			(34	)		224
Net cash provided by (used in) operating activities		3,130			(5	)		3,125
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(8,091	)		1			(8,090	)
Sales of available-for-sale securities and equity securities		236			-			236
Maturities of available-for-sale securities		3,165			-			3,165
Purchases of alternative investments		(300	)		-			(300	)
Sales and repayments of alternative investments		181			-			181
Issuance of mortgage loans on real estate		(1,368	)		2			(1,366	)
Repayment and maturities of mortgage loans on real estate		1,422			-			1,422
Repayment (issuance) of policy loans, net		(6	)		-			(6	)
Net change in collateral on investments, derivatives and related settlements		(2,321	)		(1	)		(2,322	)
Other		(96	)		3			(93	)
Net cash provided by (used in) investing activities		(7,178	)		5			(7,173	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		65			-			65
Payment of long-term debt, including current maturities		(40	)		-			(40	)
Issuance (payment) of short-term debt		(385	)		-			(385	)
Payment related to sale-leaseback transactions		(47	)		-			(47	)
Proceeds from certain financing arrangements		53			-			53
Deposits of fixed account values, including the fixed portion of variable		6,892			-			6,892
Withdrawals of fixed account values, including the fixed portion of variable		(3,280	)		(54	)		(3,334	)
Transfers from (to) separate accounts, net		62			54			116
Common stock issued for benefit plans		(21	)		-			(21	)
Dividends paid to Lincoln National Corporation		(305	)		-			(305	)
Net cash provided by (used in) financing activities		2,994			-			2,994
Net increase (decrease) in cash, invested cash and restricted cash		(1,054	)		-			(1,054	)
Cash, invested cash and restricted cash as of beginning-of-year		2,331			-			2,331
Cash, invested cash and restricted cash as of end-of-period	$	1,277		$	-		$	1,277

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)

	For the Nine Months Ended
	September 30, 2022
	As
	Previously			Restatement			As
	Reported			Impacts			Restated
Cash Flows from Operating Activities
Net income (loss)	$	(1,362	)	$	(27	)	$	(1,389	)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Realized (gain) loss		(353	)		15			(338	)
Sales and maturities (purchases) of trading securities, net		164			-			164
Amortization of deferred gain (loss) on business sold through reinsurance		(52	)		23			(29	)
Impairment of intangibles		634			-			634
Change in:
Deferred acquisition costs, value of business acquired, deferred sales
inducements and deferred front-end loads deferrals and interest, net
of amortization		9			(6	)		3
Premiums and fees receivable		(2	)		-			(2	)
Accrued investment income		(77	)		-			(77	)
Insurance liabilities and reinsurance-related balances		2,311			-			2,311
Accrued expenses		(375	)		-			(375	)
Federal income tax accruals		(301	)		(7	)		(308	)
Cash management agreement		2,803			-			2,803
Other		480			(2	)		478
Net cash provided by (used in) operating activities		3,879			(4	)		3,875
Cash Flows from Investing Activities
Purchases of available-for-sale securities and equity securities		(11,961	)		-			(11,961	)
Sales of available-for-sale securities and equity securities		1,231			-			1,231
Maturities of available-for-sale securities		4,339			-			4,339
Purchases of alternative investments		(453	)		-			(453	)
Sales and repayments of alternative investments		380			-			380
Issuance of mortgage loans on real estate		(1,928	)		4			(1,924	)
Repayment and maturities of mortgage loans on real estate		1,866			-			1,866
Repayment (issuance) of policy loans, net		16			-			16
Net change in collateral on investments, derivatives and related settlements		(3,667	)		-			(3,667	)
Other		(83	)		-			(83	)
Net cash provided by (used in) investing activities		(10,260	)		4			(10,256	)
Cash Flows from Financing Activities
Capital contribution from Lincoln National Corporation		145			-			145
Payment of long-term debt, including current maturities		(40	)		-			(40	)
Issuance (payment) of short-term debt		(313	)		-			(313	)
Payment related to sale-leaseback transactions		(52	)		-			(52	)
Proceeds from certain financing arrangements		53			-			53
Deposits of fixed account values, including the fixed portion of variable		11,054			(5	)		11,049
Withdrawals of fixed account values, including the fixed portion of variable		(4,916	)		(54	)		(4,970	)
Transfers from (to) separate accounts, net		12			59			71
Common stock issued for benefit plans		(21	)		-			(21	)
Dividends paid to Lincoln National Corporation		(580	)		-			(580	)
Other		(1	)		-			(1	)
Net cash provided by (used in) financing activities		5,341			-			5,341
Net increase (decrease) in cash, invested cash and restricted cash		(1,040	)		-			(1,040	)
Cash, invested cash and restricted cash as of beginning-of-year		2,331			-			2,331
Cash, invested cash and restricted cash as of end-of-period	$	1,291		$	-		$	1,291