Shares and Stockholder's Equity

9 Months Ended

Sep. 30, 2023

Shares and Stockholder's Equity [Abstract]

Shares and Stockholder's Equity

16. 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 Nine
	Months Ended
	September 30,
	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		(2,781	)		(25,928	)
Change in foreign currency exchange rate adjustment		(21	)		(620	)
Change in future contract benefits and policyholder account balances		491			2,395
Income tax benefit (expense)		478			5,159
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		(3,704	)		(9	)
Income tax benefit (expense)		778			2
Balance as of end-of-period	$	(7,433	)	$	(9,834	)
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	301		$	258
Unrealized holding gains (losses) arising during the period		10			(214	)
Change in foreign currency exchange rate adjustment		30			623
Income tax benefit (expense)		(9	)		(87	)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)		46			78
Income tax benefit (expense)		(10	)		(16	)
Balance as of end-of-period	$	296		$	518
Market Risk Benefit Non-Performance Risk Gain (Loss)
Balance as of beginning-of-year	$	1,739		$	1,951
Adjustment arising during the period		(944	)		285
Income tax benefit (expense)		202			(61	)
Balance as of end-of-period	$	997		$	2,175
Policyholder Liability Discount Rate Remeasurement Gain (Loss)
Balance as of beginning-of-year	$	790		$	(1,101	)
Adjustment arising during the period		326			2,470
Income tax benefit (expense)		(69	)		(527	)
Balance as of end-of-period	$	1,047		$	842
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(17	)	$	(11	)
Balance as of end-of-period	$	(17	)	$	(11	)

‎

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 Nine
	Months Ended
	September 30,
	2023			2022
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Reclassification	$	(4,293	)	$	(9	)	Realized gain (loss)
Associated change in future contract benefits		589			-		Benefits
Reclassification before income tax benefit (expense)		(3,704	)		(9	)	Income (loss) before taxes
Income tax benefit (expense)		778			2		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(2,926	)	$	(7	)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Interest rate contracts	$	-		$	1		Net investment income
Foreign currency contracts		42			48		Net investment income
Foreign currency contracts		4			29		Realized gain (loss)
Reclassifications before income tax benefit (expense)		46			78		Income (loss) before taxes
Income tax benefit (expense)		(10	)		(16	)	Federal income tax expense (benefit)
Reclassifications, net of income tax	$	36		$	62		Net income (loss)