Shares and Stockholder's Equity

3 Months Ended

Mar. 31, 2023

Shares and Stockholder's Equity [Abstract]

Shares and Stockholder's Equity

14. Shares and Stockholder’s Equity

All authorized and issued shares of LNL are owned by LNC.

AOCI

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

	For the Three
	Months Ended
	March 31,
	2023			2022
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain Other
Investments
Balance as of beginning-of-year	$	(8,526	)	$	9,153
Unrealized holding gains (losses) arising during the period		2,307			(10,038	)
Change in foreign currency exchange rate adjustment		75			(70	)
Change in future contract benefits and other policyholder account balances		(260	)		923
Income tax benefit (expense)		(455	)		1,962
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(37	)		(3	)
Income tax benefit (expense)		8			1
Balance as of end-of-period	$	(6,830	)	$	1,932
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	301		$	258
Unrealized holding gains (losses) arising during the period		186			(159	)
Change in foreign currency exchange rate adjustment		(67	)		75
Income tax benefit (expense)		(25	)		18
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		16			17
Income tax benefit (expense)		(3	)		(4	)
Balance as of end-of-period	$	382		$	179
Market Risk Benefit Non-Performance Risk Gain (Loss)
Balance as of beginning-of-year	$	1,739		$	1,951
Adjustment arising during the period		1,306			26
Income tax benefit (expense)		(280	)		(6	)
Balance as of end-of-period	$	2,765		$	1,971
Policyholder Liability Discount Rate Remeasurement Gain (Loss)
Balance as of beginning-of-year	$	790		$	(1,101	)
Adjustment arising during the period		(243	)		965
Income tax benefit (expense)		53			(206	)
Balance as of end-of-period	$	600		$	(342	)
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(17	)	$	(11	)
Income tax benefit (expense)		-			(1	)
Balance as of end-of-period	$	(17	)	$	(12	)

‎

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

	For the Three
	Months Ended
	March 31,
	2023			2022
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Reclassification	$	(37	)	$	(3	)	Realized gain (loss)
Reclassification before income
tax benefit (expense)		(37	)		(3	)	Income (loss) before taxes
Income tax benefit (expense)		8			1		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(29	)	$	(2	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Interest rate contracts	$	-		$	1		Net investment income
Foreign currency contracts		14			13		Net investment income
Foreign currency contracts		2			3		Realized gain (loss)
Reclassifications before income
tax benefit (expense)		16			17		Income (loss) before taxes
Income tax benefit (expense)		(3	)		(4	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	13		$	13		Net income (loss)