Shares and Stockholder's Equity

3 Months Ended

Mar. 31, 2024

Stockholders' Equity Note [Abstract]

Shares and Stockholder's Equity

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,
	2024		2023
Unrealized Gain (Loss) on Fixed Maturity AFS Securities and Certain
Other Investments
Balance as of beginning-of-year	$	(3,532)	$	(8,526)
Unrealized holding gains (losses) arising during the period	(914)		2,307
Change in foreign currency exchange rate adjustment	(102)		75
Change in future contract benefits and policyholder account balances,
net of reinsurance	1,574		(260)
Income tax benefit (expense)	(120)		(455)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	(51)		(37)
Income tax benefit (expense)	11		8
Balance as of end-of-period	$	(3,054)	$	(6,830)
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	249	$	301
Unrealized holding gains (losses) arising during the period	(16)		186
Change in foreign currency exchange rate adjustment	101		(67)
Income tax benefit (expense)	(18)		(25)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	15		16
Income tax benefit (expense)	(3)		(3)
Balance as of end-of-period	$	304	$	382
Market Risk Benefit Non-Performance Risk Gain (Loss)
Balance as of beginning-of-year	$	1,069	$	1,739
Adjustment arising during the period	(590)		1,306
Income tax benefit (expense)	126		(280)
Balance as of end-of-period	$	605	$	2,765
Policyholder Liability Discount Rate Remeasurement Gain (Loss)
Balance as of beginning-of-year	$	645	$	790
Adjustment arising during the period	133		(243)
Income tax benefit (expense)	(28)		53
Balance as of end-of-period	$	750	$	600
Funded Status of Employee Benefit Plans
Balance as of beginning-of-year	$	(16)	$	(17)
Balance as of end-of-period	$	(16)	$	(17)

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

	For the Three Months Ended March 31,
	2024		2023
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Reclassification	$	(50)	$	(37)	Realized gain (loss)
Associated change in future contract benefits	(1)		–		Benefits
Reclassification before income tax benefit (expense)	(51)		(37)		Income (loss) before taxes
Income tax benefit (expense)	11		8		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(40)	$	(29)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Foreign currency contracts	15		14		Net investment income
Foreign currency contracts	–		2		Realized gain (loss)
Reclassifications before income tax benefit (expense)	15		16		Income (loss) before taxes
Income tax benefit (expense)	(3)		(3)		Federal income tax expense (benefit)
Reclassifications, net of income tax	$	12	$	13	Net income (loss)