Shares and Stockholder's Equity

9 Months Ended

Sep. 30, 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 Nine Months Ended September 30,
	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	1,523		(2,781)
Change in foreign currency exchange rate adjustment	125		(21)
Change in future contract benefits and policyholder account balances,
net of reinsurance	(453)		491
Income tax benefit (expense)	(253)		478
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	(9)		(3,704)
Income tax benefit (expense)	2		778
Balance as of end-of-period	$	(2,583)	$	(7,433)
Unrealized Gain (Loss) on Derivative Instruments
Balance as of beginning-of-year	$	249	$	301
Unrealized holding gains (losses) arising during the period	213		10
Change in foreign currency exchange rate adjustment	(121)		30
Income tax benefit (expense)	(20)		(9)
Less:
Reclassification adjustment for gains (losses) included in net income (loss)	40		46
Income tax benefit (expense)	(8)		(10)
Balance as of end-of-period	$	289	$	296
Market Risk Benefit Non-Performance Risk Gain (Loss)
Balance as of beginning-of-year	$	1,069	$	1,739
Adjustment arising during the period	(367)		(944)
Income tax benefit (expense)	79		202
Balance as of end-of-period	$	781	$	997
Policyholder Liability Discount Rate Remeasurement Gain (Loss)
Balance as of beginning-of-year	$	645	$	790
Adjustment arising during the period	(46)		326
Income tax benefit (expense)	10		(69)
Balance as of end-of-period	$	609	$	1,047
Foreign Currency Translation Adjustment
Balance as of beginning-of-year	$	–	$	–
Foreign currency translation adjustment arising during the period	(1)		–
Balance as of end-of-period	$	(1)	$	–
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 on the Consolidated Statements of Comprehensive Income (Loss):

	For the Nine Months Ended September 30,
	2024		2023
Unrealized Gain (Loss) on Fixed Maturity AFS
Securities and Certain Other Investments
Reclassification	$	(15)	$	(4,293)	Realized gain (loss)
Associated change in future contract benefits	6		589		Benefits
Reclassification before income tax benefit (expense)	(9)		(3,704)		Income (loss) before taxes
Income tax benefit (expense)	2		778		Federal income tax expense (benefit)
Reclassification, net of income tax	$	(7)	$	(2,926)	Net income (loss)
Unrealized Gain (Loss) on Derivative Instruments
Interest rate contracts	$	(2)	$	–	Interest and debt expense
Foreign currency contracts	41		42		Net investment income
Foreign currency contracts	1		4		Realized gain (loss)
Reclassifications before income tax benefit (expense)	40		46		Income (loss) before taxes
Income tax benefit (expense)	(8)		(10)		Federal income tax expense (benefit)
Reclassifications, net of income tax	$	32	$	36	Net income (loss)