1Q19 - Stat Supp


	Lincoln Financial Group
	Table of Contents


	Analyst Coverage and Credit Ratings	1
	Notes	2
	Consolidated
	Consolidated Statements of Income (Loss)	3
	Consolidated Balance Sheets	4
	Earnings, Shares and Return on Equity	5
	Key Stakeholder Metrics	6
	Segment and Sources of Earnings	7
	Select Earnings Drivers By Segment	8
	Sales By Segment	9
	Operating Revenues and General and Administrative Expenses By Segment	10
	Operating Commissions and Other Expenses	11
	Interest Rate Yields and Spreads By Segment	12
	Select Earnings and Operational Data from Business Segments
	Annuities	13
	Retirement Plan Services	14
	Life Insurance	15
	Group Protection	16
	Other Operations	17
	DAC & Account Value Rollforwards
	Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
	Account Value Roll Forwards:
	Annuities	19
	Retirement Plan Services	20
	Life Insurance	21
	Other Information
	Select Investment Data	22
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC	23
	Select GAAP to Non-GAAP Reconciliations	24


Lincoln Financial Group
Analyst Coverage and Credit Ratings


Firm	Analyst				Phone Number
Autonomous Research U.S., L.P.	Erik Bass					646-561-6248
B. Riley FBR	Randy Binner					703-312-1890
Bank of America Merrill Lynch	Jay Cohen					646-855-5716
Barclays Capital	Jay Gelb					212-526-1561
Citi Research	Suneet Kamath					212-816-3457
Credit Suisse	Andrew Kligerman					212-325-5069
Deutsche Bank	Joshua Shanker					212-250-7127
Dowling & Partners	Humphrey Lee					860-676-7324
Evercore	Thomas Gallagher					212-446-9439
Goldman Sachs	Alex Scott					917-343-7160
J.P. Morgan Securities	Jimmy Bhullar					212-622-6397
Keefe, Bruyette & Woods, Inc.	Ryan Krueger					860-722-5930
Morgan Stanley	Nigel Dally					212-761-4132
RBC Capital Markets	Mark Dwelle					804-782-4008
Sandler O’Neill & Partners, L.P.	John Barnidge					312-281-3412
UBS	John Nadel					212-713-4299
Wells Fargo	Elyse Greenspan					212-214-8031

This list is provided for informational purposes only. Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these
or any other analysts.

		Ratings as of May 1, 2019
						Standard
		A.M Best	Fitch	Moody's		& Poor's
Senior Debt Ratings		a-	BBB+	Baa1		A-
Financial Strength Ratings
The Lincoln National Life Insurance Company		A+	A+	A1		AA-
First Penn-Pacific Life Insurance Company		A	A+	A1		A-
Lincoln Life & Annuity Company of New York		A+	A+	A1		AA-
Liberty Life Assurance Company of Boston		A				AA-

Investor Inquiries May Be Directed To:
Chris Giovanni, Senior Vice President, Investor Relations
Email: Christopher.Giovanni@lfg.com
Phone: 484-583-1793

Page 1

Lincoln Financial Group

Notes

Computations

• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.

• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.

• If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market

adjustment for deferred units of LNC stock in our deferred compensation plans. In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted EPS

calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation. In these periods, we would also exclude the deferred compensation adjustment.

• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. ROE is calculated by dividing annualized net income (loss) (or adjusted income (loss)

from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”). Management evaluates consolidated ROE by both including and excluding the effect

of average goodwill.

• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding. We provide book value per share, excluding AOCI, to enable

investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share excluding AOCI is useful to investors because

it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP measure.

• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.

Definitions

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial

paper outstanding.

Sales as reported consist of the following:

• Annuities – deposits from new and existing customers;

• MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;

• Universal life (“UL”), indexed universal life (“IUL”), variable universal life (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

• Executive Benefits – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess

premium received;

• Term – 100% of annualized first-year premiums; and

• Group Protection – annualized first-year premiums from new policies.

Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)

and deferred front-end loads (“DFEL”) and changes in other contract holder funds.

Page 2a

Lincoln Financial Group

Notes

Sources of earnings are defined as follows:

• Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related

expenses.

• Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level

of insurance in force.

• Fees on assets under management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.

• Variable annuity (“VA”) riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in

benefit reserves and related expenses.

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Realized gains and losses associated with the following (“excluded realized gain (loss)”):

▪ Sales or disposals and impairments of securities;

▪ Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

▪ Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders reflected within our variable annuities;

▪ Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;

▪ Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results;

▪ Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future

reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting options”); and

▪ Changes in the fair value of equity securities;

• Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);

• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

• Gains (losses) on early extinguishment of debt;

• Losses from the impairment of intangible assets;

• Income (loss) from discontinued operations;

• Acquisition and integration costs related to mergers and acquisitions; and

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

• Excluded realized gain (loss);

• Revenue adjustments from the initial adoption of new accounting standards;

• Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Page 2b

Lincoln Financial Group

Notes

Management believes that the non-GAAP performance measures previously discussed explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying

trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many

instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. In addition, we believe that our definitions of adjusted operating revenues and adjusted

income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

Prior year interest rate spreads for the Life Insurance segment have been restated to conform to the current year presentation.

Statistical Supplement is Dated

The financial data in this document is dated May 1, 2019, and has not been updated since that date. Lincoln Financial Group does not intend to update this document.

Page 2c


Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Revenues
Insurance premiums	$	777	$	1,165	$	1,323	$	1,336	$	1,446	86.1%
Fee income		1,456		1,470		1,550		1,511		1,475	1.3%
Net investment income		1,233		1,232		1,271		1,349		1,251	1.5%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(2)		(1)		(2)		(2)		(8)	NM
Realized gain (loss), excluding OTTI		14		(6)		(53)		193		(354)	NM
Total realized gain (loss)		12		(7)		(55)		191		(362)	NM
Amortization of deferred gains on business
sold through reinsurance		-		-		-		8		8	NM
Other revenues		131		160		175		136		147	12.2%
Total revenues		3,609		4,020		4,264		4,531		3,965	9.9%

Expenses
Interest credited		653		647		652		663		678	3.8%
Benefits		1,358		1,661		1,626		2,142		1,757	29.4%
Commissions and other expenses		1,057		1,177		1,367		1,162		1,176	11.3%
Interest and debt expense		91		68		69		69		71	-22.0%
Strategic digitization expense		15		16		18		28		15	0.0%
Total expenses		3,174		3,569		3,732		4,064		3,697	16.5%
Income (loss) before taxes		435		451		532		467		268	-38.4%
Federal income tax expense (benefit)		68		66		42		68		16	-76.5%
Net income (loss)		367		385		490		399		252	-31.3%
Adjustment for LNC stock units in our
deferred compensation plans		(2)		(8)		-		(12)		-	100.0%
Net income (loss) available to common
stockholders – diluted	$	365	$	377	$	490	$	387	$	252	-31.0%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.64	$	1.70	$	2.24	$	1.80	$	1.22	-25.6%

ROE, including AOCI
Net income (loss)		8.8%		9.9%		13.0%		10.9%		6.6%



Page 3


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities:
Corporate bonds	$	80,680	$	81,059	$	81,065	$	81,314	$	84,255	4.4%
U.S. government bonds		401		422		409		417		423	5.5%
Foreign government bonds		440		471		459		448		453	3.0%
Mortgage-backed securities		4,037		4,121		4,035		4,177		4,299	6.5%
Asset-backed collateralized debt obligations		875		1,119		1,362		1,730		2,437	178.5%
State and municipal bonds		5,000		5,248		5,218		5,345		5,569	11.4%
Hybrid and redeemable preferred securities		626		620		613		593		614	-1.9%
Total AFS securities		92,059		93,060		93,161		94,024		98,050	6.5%
Trading securities		1,553		1,450		1,440		1,950		3,314	113.4%
Equity securities		112		112		112		99		153	36.6%
Mortgage loans on real estate		11,047		12,217		12,561		13,260		13,997	26.7%
Policy loans		2,389		2,508		2,490		2,509		2,498	4.6%
Derivative investments		827		584		706		1,107		981	18.6%
Other investments		2,060		2,076		2,216		2,267		2,752	33.6%
Total investments		110,047		112,007		112,686		115,216		121,745	10.6%
Cash and invested cash		2,257		1,775		1,460		2,345		1,593	-29.4%
DAC and VOBA		9,289		9,904		10,014		10,264		9,441	1.6%
Premiums and fees receivable		480		574		592		570		607	26.5%
Accrued investment income		1,137		1,119		1,168		1,119		1,184	4.1%
Reinsurance recoverables		5,009		17,979		18,271		17,748		17,660	252.6%
Funds withheld reinsurance assets		576		572		566		557		549	-4.7%
Goodwill		1,368		1,750		1,757		1,782		1,778	30.0%
Other assets		6,313		8,921		9,644		15,713		16,373	159.4%
Separate account assets		142,761		144,231		147,692		132,833		143,369	0.4%
Total assets	$	279,237	$	298,832	$	303,850	$	298,147	$	314,299	12.6%





Page 4a


Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)

	As of
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	22,923	$	33,718	$	33,988	$	34,648	$	34,009	48.4%
Other contract holder funds		80,710		88,698		89,906		91,233		93,959	16.4%
Short-term debt		250		-		-		-		300	20.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		865		865		865		866		866	0.1%
Financial		4,783		4,961		4,939		4,973		4,706	-1.6%
Reinsurance related embedded derivatives		34		25		20		3		177	NM
Funds withheld reinsurance liabilities		1,726		1,711		1,733		1,740		1,762	2.1%
Payables for collateral on investments		4,265		4,699		4,212		4,805		5,362	25.7%
Other liabilities		4,935		4,747		5,425		12,696		13,372	171.0%
Separate account liabilities		142,761		144,231		147,692		132,833		143,369	0.4%
Total liabilities		263,252		283,655		288,780		283,797		297,882	13.2%

Stockholders’ Equity
Common stock		5,700		5,674		5,619		5,392		5,285	-7.3%
Retained earnings		8,052		8,302		8,615		8,551		8,679	7.8%
AOCI:
Unrealized investment gains (losses)		2,533		1,502		1,138		729		2,773	9.5%
Foreign currency translation adjustment		(9)		(18)		(20)		(23)		(20)	NM
Funded status of employee benefit plans		(291)		(283)		(282)		(299)		(300)	-3.1%
Total AOCI		2,233		1,201		836		407		2,453	9.9%
Total stockholders’ equity		15,985		15,177		15,070		14,350		16,417	2.7%
Total liabilities and stockholders’ equity	$	279,237	$	298,832	$	303,850	$	298,147	$	314,299	12.6%










Page 4b


Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss)
Net income (loss)	$	367	$	385	$	490	$	399	$	252	-31.3%
Pre-tax adjusted income (loss) from operations		512		540		599		563		507	-1.0%
After-tax adjusted income (loss) from operations (1)		441		454		510		475		441	0.0%
Adjusted operating tax rate		13.9%		15.9%		14.9%		15.6%		13.0%

Average Stockholders’ Equity
Average equity, including AOCI	$	16,653	$	15,581	$	15,124	$	14,710	$	15,384	-7.6%
Average AOCI		3,052		1,717		1,019		622		1,430	-53.1%
Average equity, excluding AOCI	$	13,601	$	13,864	$	14,105	$	14,088	$	13,954	2.6%

ROE, excluding AOCI
Net income (loss)		10.8%		11.1%		13.9%		11.3%		7.2%
Adjusted income (loss) from operations		13.0%		13.1%		14.5%		13.5%		12.6%

Per Share
Net income (loss) (diluted)	$	1.64	$	1.70	$	2.24	$	1.80	$	1.22	-25.6%
Adjusted income (loss) from operations (diluted)		1.97		2.02		2.34		2.15		2.14	8.6%
Dividends declared during the period		0.33		0.33		0.33		0.37		0.37	12.1%

Book value, including AOCI	$	73.09	$	69.85	$	70.17	$	69.71	$	80.88	10.7%
Per share impact of AOCI		10.21		5.53		3.90		1.98		12.09	18.4%
Book value, excluding AOCI	$	62.88	$	64.32	$	66.27	$	67.73	$	68.79	9.4%

Shares
Repurchased during the period		-		1.5		2.7		9.1		3.9	NM
End-of-period – basic		218.7		217.3		214.8		205.9		203.0	-7.2%
End-of-period – diluted		222.4		220.7		217.4		209.0		204.2	-8.2%
Average for the period – diluted		222.3		221.6		218.5		215.0		206.0	-7.3%

(1) See reconciliation to net income (loss) on page 24.




Page 5


Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)

	As of or For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Cash Returned to Common Stockholders
Shares repurchased	$	-	$	100	$	175	$	535	$	240	NM
Common dividends		72		72		72		70		76	5.6%
Total cash returned to common stockholders	$	72	$	172	$	247	$	605	$	316	NM

Leverage Ratio
Short-term debt	$	250	$	-	$	-	$	-	$	300	20.0%
Long-term debt		5,648		5,826		5,804		5,839		5,572	-1.3%
Total debt (1)		5,898		5,826		5,804		5,839		5,872	-0.4%
Less:
Operating debt (2)		865		865		865		866		866	0.1%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		200		178		155		189		222	11.0%
Total numerator	$	4,531	$	4,481	$	4,482	$	4,482	$	4,482	-1.1%

Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,452	$	13,675	$	13,932	$	13,621	$	13,644	1.4%
Add: 25% of capital securities		302		302		302		302		302	0.0%
Total numerator		4,531		4,481		4,482		4,482		4,482	-1.1%
Total denominator	$	18,285	$	18,458	$	18,716	$	18,405	$	18,428	0.8%

Leverage ratio		24.8%		24.3%		23.9%		24.4%		24.3%

Holding Company Available Liquidity	$	1,063	$	484	$	465	$	465	$	481	-54.8%

(1) Excludes obligations under finance leases of $364 million that are reported in other liabilities on our Consolidated Balance Sheets.
(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
on increasing statutory reserves associated with secondary guarantee UL and term policies.







Page 6


Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	313	$	322	$	350	$	300	$	287	-8.3%
Retirement Plan Services		48		51		47		54		43	-10.4%
Life Insurance		172		185		217		218		195	13.4%
Group Protection		37		57		79		64		70	89.2%
Other Operations		(58)		(75)		(94)		(73)		(88)	-51.7%
Adjusted income (loss) from operations, before
income taxes	$	512	$	540	$	599	$	563	$	507	-1.0%

Income (Loss) from Operations, After-Tax
Annuities	$	267	$	275	$	302	$	258	$	250	-6.4%
Retirement Plan Services		43		43		40		45		39	-9.3%
Life Insurance		144		150		176		175		157	9.0%
Group Protection		29		45		63		50		55	89.7%
Other Operations		(42)		(59)		(71)		(53)		(60)	-42.9%
Adjusted income (loss) from operations	$	441	$	454	$	510	$	475	$	441	0.0%

	For the Three Months Ended											For the Trailing Twelve Months
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change	3/31/18		3/31/19		Change
Sources of Earnings, Pre-Tax
Investment spread	$	161	$	172	$	169	$	161	$	151	-6.2%	$	739	$	654	-11.5%
Mortality/morbidity		132		159		198		182		179	35.6%		603		717	18.9%
Fees on AUM		247		256		264		274		243	-1.6%		1,005		1,036	3.1%
VA riders		30		28		62		19		22	-26.7%		112		131	17.0%
Total sources of earnings, before income taxes		570		615		693		636		595	4.4%		2,459		2,538	3.2%
Other Operations		(58)		(75)		(94)		(73)		(88)	-51.7%		(256)		(330)	-28.9%
Adjusted income (loss) from operations, before
income taxes	$	512	$	540	$	599	$	563	$	507	-1.0%	$	2,203	$	2,208	0.2%

Sources of Earnings, Pre-Taxes, Percentage By Component
Investment spread		28.2%		28.0%		24.4%		25.4%		25.5%			30.0%		25.8%
Mortality/morbidity		23.1%		26.0%		28.5%		28.5%		30.1%			24.5%		28.2%
Fees on AUM		43.4%		41.5%		38.2%		43.0%		40.7%			40.9%		40.8%
VA riders		5.3%		4.5%		8.9%		3.1%		3.7%			4.6%		5.2%
Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%

Page 7

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Annuities
Operating revenues	$	1,073	$	1,106	$	1,118	$	1,086	$	1,174	9.4%
Deposits		2,526		2,983		3,080		3,774		3,508	38.9%
Net flows		(606)		(126)		(81)		675		492	181.2%
Average account values		138,290		136,741		138,639		124,869		127,185	-8.0%

Retirement Plan Services
Operating revenues	$	292	$	292	$	294	$	300	$	293	0.3%
Deposits		2,360		2,217		3,328		2,163		2,496	5.8%
Net flows		463		499		1,411		173		(381)	NM
Average account values		68,249		68,534		71,293		69,518		69,977	2.5%

Life Insurance
Operating revenues	$	1,660	$	1,680	$	1,766	$	1,815	$	1,700	2.4%
Deposits		1,534		1,517		1,523		1,863		1,537	0.2%
Net flows		1,076		1,084		1,080		1,439		1,020	-5.2%
Average account values		49,165		49,548		50,201		50,088		50,355	2.4%
Average in-force face amount		722,585		727,577		733,216		740,047		753,441	4.3%

Group Protection
Operating revenues	$	553	$	937	$	1,128	$	1,139	$	1,138	105.8%
Insurance premiums		508		846		1,011		1,018		1,023	101.4%

Consolidated
Adjusted operating revenues (1)	$	3,645	$	4,073	$	4,362	$	4,394	$	4,362	19.7%
Deposits		6,420		6,717		7,931		7,800		7,541	17.5%
Net flows		933		1,457		2,410		2,287		1,131	21.2%
Average account values		255,704		254,823		260,133		244,475		247,517	-3.2%

(1) See reconciliation to total revenues on page 24.





Page 8


Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Sales
Annuities:
With guaranteed living benefits	$	1,447	$	1,496	$	1,416	$	1,347	$	1,060	-26.7%
Without guaranteed living benefits		587		598		774		1,122		864	47.2%
Variable		2,034		2,094		2,190		2,469		1,924	-5.4%
Fixed		492		889		890		1,305		1,584	222.0%
Total Annuities	$	2,526	$	2,983	$	3,080	$	3,774	$	3,508	38.9%

Retirement Plan Services:
First-year sales	$	800	$	841	$	1,977	$	835	$	829	3.6%
Recurring deposits		1,560		1,376		1,351		1,328		1,667	6.9%
Total Retirement Plan Services	$	2,360	$	2,217	$	3,328	$	2,163	$	2,496	5.8%

Life Insurance:
UL	$	10	$	10	$	9	$	14	$	11	10.0%
MoneyGuard®		56		57		53		58		51	-8.9%
IUL		14		14		13		22		16	14.3%
VUL		58		46		62		103		52	-10.3%
Term		25		29		26		33		30	20.0%
Total individual life insurance		163		156		163		230		160	-1.8%
Executive Benefits		10		6		4		32		31	210.0%
Total Life Insurance	$	173	$	162	$	167	$	262	$	191	10.4%

Group Protection:
Life	$	23	$	31	$	69	$	100	$	64	178.3%
Disability		21		38		73		123		42	100.0%
Dental		11		25		16		49		13	18.2%
Total Group Protection	$	55	$	94	$	158	$	272	$	119	116.4%
Percent employee-paid		53.4%		39.9%		40.0%		42.1%		52.6%






Page 9


Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Operating Revenues
Annuities	$	1,073	$	1,106	$	1,118	$	1,086	$	1,174	9.4%
Retirement Plan Services		292		292		294		300		293	0.3%
Life Insurance		1,660		1,680		1,766		1,815		1,700	2.4%
Group Protection		553		937		1,128		1,139		1,138	105.8%
Other Operations		67		58		56		54		57	-14.9%
Total adjusted operating revenues	$	3,645	$	4,073	$	4,362	$	4,394	$	4,362	19.7%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		116	$	111	$	116	$	120	$	117	0.9%
Retirement Plan Services		76		75		75		78		75	-1.3%
Life Insurance		118		113		119		121		121	2.5%
Group Protection		80		140		174		166		156	95.0%
Other Operations		28		28		34		33		40	42.9%
Total	$	418	$	467	$	518	$	518	$	509	21.8%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.8%		10.0%		10.4%		11.1%		10.0%
Retirement Plan Services		25.9%		25.7%		25.6%		25.8%		25.5%
Life Insurance		7.1%		6.7%		6.8%		6.7%		7.1%
Group Protection		14.5%		14.9%		15.3%		14.6%		13.7%
Other Operations		42.0%		50.2%		59.9%		59.8%		69.9%
Total		11.5%		11.5%		11.9%		11.8%		11.7%

(1) See page 11 for general and administrative expenses capitalized.







Page 10


Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	460	$	515	$	572	$	591	$	563	22.4%
Commissions		596		623		650		737		649	8.9%
Taxes, licenses and fees		78		79		82		80		100	28.2%
Interest and debt expense		68		68		69		69		71	4.4%
Expenses associated with reserve financing
and unrelated letters of credit		20		21		21		22		22	10.0%
Total adjusted operating commissions and other
expenses incurred		1,222		1,306		1,394		1,499		1,405	15.0%

Less Amounts Capitalized
General and administrative expenses		(42)		(48)		(54)		(73)		(54)	-28.6%
Commissions		(289)		(292)		(313)		(406)		(326)	-12.8%
Taxes, licenses and fees		(11)		(10)		(9)		(59)		(15)	-36.4%
Total amounts capitalized		(342)		(350)		(376)		(538)		(395)	-15.5%
Total expenses incurred, net of amounts
capitalized, excluding amortization		880		956		1,018		961		1,010	14.8%

Amortization
Amortization of DAC, VOBA and other intangibles		259		262		420		308		209	-19.3%
Total adjusted operating commissions and
other expenses	$	1,139	$	1,218	$	1,438	$	1,269	$	1,219	7.0%












Page 11


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Annuities
Earned rate on reserves		3.87%		3.84%		3.89%		3.92%		3.97%	10
Variable investment income on reserves (1)		0.08%		0.13%		0.13%		0.07%		0.05%	(3)
Net investment income yield on reserves		3.95%		3.97%		4.02%		3.99%		4.02%	7
Interest rate credited to contract holders		2.32%		2.23%		2.24%		2.31%		2.41%	9
Interest rate spread		1.63%		1.74%		1.78%		1.68%		1.61%	(2)
Base spreads excluding variable investment income		1.55%		1.61%		1.65%		1.61%		1.56%	1

Retirement Plan Services
Earned rate on reserves		4.28%		4.25%		4.19%		4.20%		4.18%	(10)
Variable investment income on reserves (1)		0.09%		0.12%		0.10%		0.06%		0.05%	(4)
Net investment income yield on reserves		4.37%		4.37%		4.29%		4.26%		4.23%	(14)
Interest rate credited to contract holders		2.90%		2.90%		2.90%		2.89%		2.92%	2
Interest rate spread		1.47%		1.47%		1.39%		1.37%		1.31%	(16)
Base spreads excluding variable investment income		1.38%		1.35%		1.29%		1.31%		1.26%	(12)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.98%		4.98%		4.85%		4.92%		4.85%	(13)
Variable investment income on reserves (1)		0.27%		0.16%		0.38%		0.61%		0.06%	(21)
Net investment income yield on reserves		5.25%		5.14%		5.23%		5.53%		4.91%	(34)
Interest rate credited to contract holders		3.76%		3.72%		3.72%		3.73%		3.69%	(7)
Interest rate spread		1.49%		1.42%		1.51%		1.80%		1.22%	(27)
Base spreads excluding variable investment income		1.22%		1.26%		1.13%		1.19%		1.16%	(6)

Total (2)
Earned rate (3)		4.50%		4.46%		4.37%		4.43%		4.33%	(17)
Variable investment income (1) (3)		0.23%		0.17%		0.29%		0.43%		0.06%	(17)
Net investment income yield (3)		4.73%		4.63%		4.66%		4.86%		4.39%	(34)
Interest rate credited to contract holders		3.17%		3.13%		3.12%		3.14%		3.16%	(1)
Interest rate spread		1.56%		1.50%		1.54%		1.72%		1.23%	(33)
Base spreads excluding variable investment income		1.33%		1.33%		1.25%		1.29%		1.17%	(16)

(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
(2) Includes the results of all of our business segments and Other Operations.
(3) Includes investment yields on reserves and surplus.


Page 12


Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	70	$	109	$	102	$	108	$	208	197.1%
Fee income		586		587		598		571		568	-3.1%
Net investment income		249		244		251		261		257	3.2%
Operating realized gain (loss)		48		48		46		50		41	-14.6%
Amortization of deferred gain		-		-		-		8		8	NM
Other revenues		120		118		121		88		92	-23.3%
Total operating revenues		1,073		1,106		1,118		1,086		1,174	9.4%
Operating expenses:
Interest credited		148		144		145		150		162	9.5%
Benefits		145		183		149		196		284	95.9%
Commissions incurred		244		265		278		291		268	9.8%
Other expenses incurred		232		222		233		241		230	-0.9%
Amounts capitalized		(120)		(134)		(147)		(176)		(147)	-22.5%
Amortization		111		104		110		84		90	-18.9%
Total operating expenses		760		784		768		786		887	16.7%
Income (loss) from operations before taxes		313		322		350		300		287	-8.3%
Federal income tax expense (benefit)		46		47		48		42		37	-19.6%
Income (loss) from operations	$	267	$	275	$	302	$	258	$	250	-6.4%

Effective Federal Income Tax Rate		14.7%		14.6%		13.6%		13.8%		12.8%

Average Equity, Excluding Goodwill and AOCI	$	4,954	$	5,002	$	5,045	$	5,000	$	4,785	-3.4%

ROE, Excluding Goodwill and AOCI		21.6%		22.0%		23.9%		20.7%		20.9%

Return on Average Account Values		77		81		87		83		79	2

Income (Loss) from Operations
Variable annuity		220		225		264		232		214	-2.7%
Fixed annuity		47		50		38		26		36	-23.4%

Account Values
Variable annuity account values:
Average	$	118,782	$	117,177	$	118,838	$	112,615	$	113,785	-4.2%
End-of-period		116,172		116,901		119,430		108,536		116,514	0.3%
Fixed annuity account values:
Average		19,508		19,564		19,801		12,254		13,400	-31.3%
End-of-period		19,457		19,655		19,855		12,743		13,944	-28.3%

Page 13


Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	64	$	64	$	65	$	62	$	61	-4.7%
Net investment income		222		222		223		232		226	1.8%
Other revenues		6		6		6		6		6	0.0%
Total operating revenues		292		292		294		300		293	0.3%
Operating expenses:
Interest credited		137		137		140		142		145	5.8%
Commissions incurred		19		21		20		18		19	0.0%
Other expenses incurred		85		83		83		86		85	0.0%
Amounts capitalized		(4)		(6)		(5)		(6)		(5)	-25.0%
Amortization		7		6		9		6		6	-14.3%
Total operating expenses		244		241		247		246		250	2.5%
Income (loss) from operations before taxes		48		51		47		54		43	-10.4%
Federal income tax expense (benefit)		5		8		7		9		4	-20.0%
Income (loss) from operations	$	43	$	43	$	40	$	45	$	39	-9.3%

Effective Federal Income Tax Rate		11.4%		15.1%		15.9%		15.9%		8.5%

Average Equity, Excluding Goodwill and AOCI	$	1,312	$	1,302	$	1,316	$	1,356	$	1,402	6.9%

ROE, Excluding Goodwill and AOCI		13.0%		13.3%		12.1%		13.3%		11.2%

Pre-tax Net Margin		31.0%		32.8%		30.7%		34.0%		29.1%

Return on Average Account Values		25		25		22		26		22	(3)

Net Flows by Market
Small Market		(79)		12		110		248		189	NM
Mid - Large Market		834		730		1,573		264		(283)	NM
Multi-Fund® and Other		(292)		(243)		(272)		(339)		(287)	1.7%

Net Flows – Trailing Twelve Months	$	1,766	$	1,844	$	2,813	$	2,546	$	1,702	-3.6%






Page 14


Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)

	As of or For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	196	$	205	$	205	$	210	$	213	8.7%
Fee income		805		819		886		881		844	4.8%
Net investment income		658		650		671		719		643	-2.3%
Operating realized gain (loss)		(1)		(2)		(3)		-		(3)	NM
Other revenues		2		8		7		5		3	50.0%
Total operating revenues		1,660		1,680		1,766		1,815		1,700	2.4%
Operating expenses:
Interest credited		354		351		352		357		354	0.0%
Benefits		849		840		742		913		902	6.2%
Commissions incurred		180		166		173		241		186	3.3%
Other expenses incurred		201		198		202		210		212	5.5%
Amounts capitalized		(204)		(193)		(199)		(318)		(220)	-7.8%
Amortization		108		133		279		194		71	-34.3%
Total operating expenses		1,488		1,495		1,549		1,597		1,505	1.1%
Income (loss) from operations before taxes		172		185		217		218		195	13.4%
Federal income tax expense (benefit)		28		35		41		43		38	35.7%
Income (loss) from operations	$	144	$	150	$	176	$	175	$	157	9.0%

Effective Federal Income Tax Rate		16.2%		18.9%		18.7%		19.8%		19.6%

Average Equity, Excluding Goodwill and AOCI	$	7,826	$	7,954	$	8,047	$	8,147	$	8,399	7.3%

ROE, Excluding Goodwill and AOCI		7.4%		7.5%		8.8%		8.6%		7.5%

Average Account Values	$	49,165	$	49,548	$	50,201	$	50,088	$	50,355	2.4%

In-Force Face Amount
UL and other	$	340,862	$	341,663	$	342,455	$	343,922	$	346,292	1.6%
Term insurance		384,154		388,475		393,839		399,877		416,789	8.5%
Total in-force face amount	$	725,016	$	730,138	$	736,294	$	743,799	$	763,081	5.3%






Page 15


Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	508	$	846	$	1,011	$	1,018	$	1,023	101.4%
Net investment income		40		63		76		80		74	85.0%
Other revenues		5		28		41		41		41	NM
Total operating revenues		553		937		1,128		1,139		1,138	105.8%
Operating expenses:
Interest credited		1		1		1		2		1	0.0%
Benefits		326		617		744		769		753	131.0%
Commissions incurred		66		83		89		101		92	39.4%
Other expenses incurred		105		176		218		218		203	93.3%
Amounts capitalized		(13)		(17)		(25)		(39)		(23)	-76.9%
Amortization		31		20		22		24		42	35.5%
Total operating expenses		516		880		1,049		1,075		1,068	107.0%
Income (loss) from operations before taxes		37		57		79		64		70	89.2%
Federal income tax expense (benefit)		8		12		16		14		15	87.5%
Income (loss) from operations	$	29	$	45	$	63	$	50	$	55	89.7%

Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%

Average Equity, Excluding Goodwill and AOCI	$	1,102	$	1,610	$	2,105	$	2,082	$	2,165	96.5%

ROE, Excluding Goodwill and AOCI		10.5%		11.2%		11.9%		9.6%		10.1%

Loss Ratios by Product Line
Life		63.2%		68.0%		70.6%		70.8%		71.4%
Disability		61.9%		76.4%		75.8%		79.6%		75.4%
Dental		74.7%		73.4%		72.2%		70.6%		72.2%
Total		64.3%		73.1%		73.6%		75.8%		73.7%








Page 16


Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Other Operations
Operating revenues:
Insurance premiums	$	3	$	5	$	4	$	-	$	2	-33.3%
Net investment income		64		53		50		57		51	-20.3%
Other revenues		-		-		2		(3)		4	NM
Total operating revenues		67		58		56		54		57	-14.9%
Operating expenses:
Interest credited		15		14		14		13		15	0.0%
Benefits		19		28		38		20		20	5.3%
Commissions and other expenses		8		7		11		(3)		24	200.0%
Interest and debt expenses		68		68		69		69		71	4.4%
Strategic digitization expense		15		16		18		28		15	0.0%
Total operating expenses		125		133		150		127		145	16.0%
Income (loss) from operations before taxes		(58)		(75)		(94)		(73)		(88)	-51.7%
Federal income tax expense (benefit)		(16)		(16)		(23)		(20)		(28)	-75.0%
Income (loss) from operations	$	(42)	$	(59)	$	(71)	$	(53)	$	(60)	-42.9%



















Page 17


Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	8,641	$	9,538	$	10,162	$	10,278	$	10,512	21.7%
Deferrals		353		363		387		550		406	15.0%
Operating amortization		(267)		(269)		(424)		(311)		(209)	21.7%
Deferrals, net of operating amortization		86		94		(37)		239		197	129.1%
Amortization associated with benefit ratio unlocking		5		1		(5)		36		(25)	NM
Business acquired		-		30		-		-		-	NM
Business sold through reinsurance		-		-		-		(278)		-	NM
Adjustment related to realized gains (losses)		(5)		(7)		-		(38)		31	NM
Adjustment related to unrealized gains (losses)		811		506		158		275		(1,026)	NM
Balance as of end-of-period	$	9,538	$	10,162	$	10,278	$	10,512	$	9,689	1.6%

DFEL
Balance as of beginning-of-period	$	1,445	$	1,877	$	2,294	$	2,442	$	2,769	91.6%
Deferrals		203		207		214		251		217	6.9%
Operating amortization		(107)		(121)		(165)		(146)		(112)	-4.7%
Deferrals, net of operating amortization		96		86		49		105		105	9.4%
Amortization associated with benefit ratio unlocking		1		-		(1)		4		(3)	NM
Adjustment related to realized (gains) losses		(4)		(4)		(3)		(10)		3	175.0%
Adjustment related to unrealized (gains) losses		339		335		103		228		(671)	NM
Balance as of end-of-period	$	1,877	$	2,294	$	2,442	$	2,769	$	2,203	17.4%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	6,052	$	6,216	$	6,190	$	6,117	$	5,914	-2.3%











Page 18


Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Fixed Annuities
Balance as of beginning-of-period	$	20,305	$	20,315	$	20,722	$	21,116	$	21,666	6.7%
Gross deposits		492		889		890		1,305		1,584	222.0%
Full surrenders and deaths		(399)		(490)		(555)		(501)		(469)	-17.5%
Other contract benefits		(152)		(157)		(161)		(186)		(151)	0.7%
Net flows		(59)		242		174		618		964	NM
Contract holder assessments		(7)		(8)		(8)		(9)		(8)	-14.3%
Reinvested interest credited		76		173		228		(59)		319	NM
Balance as of end-of-period, gross		20,315		20,722		21,116		21,666		22,941	12.9%
Reinsurance ceded		(858)		(1,067)		(1,261)		(8,923)		(8,997)	NM
Balance as of end-of-period, net	$	19,457	$	19,655	$	19,855	$	12,743	$	13,944	-28.3%

Variable Annuities
Balance as of beginning-of-period	$	117,479	$	116,172	$	116,901	$	119,430	$	108,536	-7.6%
Gross deposits		2,034		2,094		2,190		2,469		1,924	-5.4%
Full surrenders and deaths		(1,614)		(1,545)		(1,523)		(1,414)		(1,458)	9.7%
Other contract benefits		(967)		(917)		(922)		(998)		(938)	3.0%
Net flows		(547)		(368)		(255)		57		(472)	13.7%
Contract holder assessments		(619)		(620)		(629)		(617)		(601)	2.9%
Change in market value and reinvestment		(141)		1,717		3,413		(10,334)		9,051	NM
Balance as of end-of-period, gross and net	$	116,172	$	116,901	$	119,430	$	108,536	$	116,514	0.3%

Total
Balance as of beginning-of-period	$	137,784	$	136,487	$	137,623	$	140,546	$	130,202	-5.5%
Gross deposits		2,526		2,983		3,080		3,774		3,508	38.9%
Full surrenders and deaths		(2,013)		(2,035)		(2,078)		(1,915)		(1,927)	4.3%
Other contract benefits		(1,119)		(1,074)		(1,083)		(1,184)		(1,089)	2.7%
Net flows		(606)		(126)		(81)		675		492	181.2%
Contract holder assessments		(626)		(628)		(637)		(626)		(609)	2.7%
Change in market value and reinvestment		(65)		1,890		3,641		(10,393)		9,370	NM
Balance as of end-of-period, gross		136,487		137,623		140,546		130,202		139,455	2.2%
Reinsurance ceded		(858)		(1,067)		(1,261)		(8,923)		(8,997)	NM
Balance as of end-of-period, net	$	135,629	$	136,556	$	139,285	$	121,279	$	130,458	-3.8%



Page 19


Lincoln Financial Group
Retirement Plan Services – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
General Account
Balance as of beginning-of-period	$	18,724	$	18,856	$	19,046	$	19,511	$	19,766	5.6%
Gross deposits		459		394		704		489		458	-0.2%
Withdrawals		(520)		(443)		(442)		(544)		(519)	0.2%
Net flows		(61)		(49)		262		(55)		(61)	0.0%
Transfers between fixed and variable accounts		60		104		65		169		70	16.7%
Contract holder assessments		(3)		(3)		(3)		(3)		(3)	0.0%
Reinvestment interest credited		136		138		141		144		142	4.4%
Balance as of end-of-period	$	18,856	$	19,046	$	19,511	$	19,766	$	19,914	5.6%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	48,645	$	48,854	$	50,137	$	52,994	$	47,289	-2.8%
Gross deposits		1,901		1,823		2,624		1,674		2,038	7.2%
Withdrawals		(1,377)		(1,275)		(1,475)		(1,446)		(2,358)	-71.2%
Net flows		524		548		1,149		228		(320)	NM
Transfers between fixed and variable accounts		(119)		(112)		(134)		(170)		(210)	-76.5%
Contract holder assessments		(52)		(52)		(53)		(52)		(51)	1.9%
Change in market value and reinvestment		(144)		899		1,895		(5,711)		5,177	NM
Balance as of end-of-period	$	48,854	$	50,137	$	52,994	$	47,289	$	51,885	6.2%

Total
Balance as of beginning-of-period	$	67,369	$	67,710	$	69,183	$	72,505	$	67,055	-0.5%
Gross deposits		2,360		2,217		3,328		2,163		2,496	5.8%
Withdrawals		(1,897)		(1,718)		(1,917)		(1,990)		(2,877)	-51.7%
Net flows		463		499		1,411		173		(381)	NM
Transfers between fixed and variable accounts		(59)		(8)		(69)		(1)		(140)	NM
Contract holder assessments		(55)		(55)		(56)		(55)		(54)	1.8%
Change in market value and reinvestment		(8)		1,037		2,036		(5,567)		5,319	NM
Balance as of end-of-period	$	67,710	$	69,183	$	72,505	$	67,055	$	71,799	6.0%







Page 20


Lincoln Financial Group
Life Insurance – Account Value Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
General Account
Balance as of beginning-of-period	$	36,791	$	36,855	$	36,955	$	37,054	$	37,289	1.4%
Deposits		1,040		1,073		1,024		1,133		1,027	-1.3%
Withdrawals and deaths		(318)		(312)		(266)		(197)		(331)	-4.1%
Net flows		722		761		758		936		696	-3.6%
Contract holder assessments		(1,019)		(1,018)		(1,024)		(1,051)		(1,043)	-2.4%
Reinvested interest credited		361		357		365		350		333	-7.8%
Balance as of end-of-period, gross		36,855		36,955		37,054		37,289		37,275	1.1%
Reinsurance ceded		(700)		(693)		(683)		(677)		(669)	4.4%
Balance as of end-of-period, net	$	36,155	$	36,262	$	36,371	$	36,612	$	36,606	1.2%

Separate Account
Balance as of beginning-of-period	$	13,851	$	13,987	$	14,420	$	15,102	$	13,735	-0.8%
Deposits		494		444		499		730		510	3.2%
Withdrawals and deaths		(140)		(121)		(177)		(227)		(186)	-32.9%
Net flows		354		323		322		503		324	-8.5%
Contract holder assessments		(179)		(179)		(187)		(210)		(193)	-7.8%
Change in market value and reinvestment		(39)		289		547		(1,660)		1,480	NM
Balance as of end-of-period, gross		13,987		14,420		15,102		13,735		15,346	9.7%
Reinsurance ceded		(861)		(868)		(886)		(758)		(832)	3.4%
Balance as of end-of-period, net	$	13,126	$	13,552	$	14,216	$	12,977	$	14,514	10.6%

Total
Balance as of beginning-of-period	$	50,642	$	50,842	$	51,375	$	52,156	$	51,024	0.8%
Deposits		1,534		1,517		1,523		1,863		1,537	0.2%
Withdrawals and deaths		(458)		(433)		(443)		(424)		(517)	-12.9%
Net flows		1,076		1,084		1,080		1,439		1,020	-5.2%
Contract holder assessments		(1,198)		(1,197)		(1,211)		(1,261)		(1,236)	-3.2%
Change in market value and reinvestment		322		646		912		(1,310)		1,813	NM
Balance as of end-of-period, gross		50,842		51,375		52,156		51,024		52,621	3.5%
Reinsurance ceded		(1,561)		(1,561)		(1,569)		(1,435)		(1,501)	3.8%
Balance as of end-of-period, net	$	49,281	$	49,814	$	50,587	$	49,589	$	51,120	3.7%




Page 21


Lincoln Financial Group
Select Investment Data
Unaudited (millions of dollars)

	As of 3/31/18				As of 12/31/18				As of 3/31/19
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities:
Corporate bonds	$	80,680		86.1%	$	81,314		84.7%	$	84,255		83.0%
U.S. government bonds		401		0.4%		417		0.4%		423		0.4%
Foreign government bonds		440		0.5%		448		0.5%		453		0.4%
Mortgage-backed securities		4,037		4.3%		4,177		4.3%		4,299		4.2%
Asset-backed collateralized debt obligations		875		0.9%		1,730		1.8%		2,437		2.4%
State and municipal bonds		5,000		5.3%		5,345		5.6%		5,569		5.5%
Hybrid and redeemable preferred securities		626		0.7%		593		0.6%		614		0.6%
Total fixed maturity AFS securities		92,059		98.2%		94,024		97.9%		98,050		96.5%
Trading securities		1,553		1.7%		1,950		2.0%		3,314		3.3%
Equity securities		112		0.1%		99		0.1%		153		0.2%
Total fixed maturity AFS, trading and equity securities	$	93,724		100.0%	$	96,073		100.0%	$	101,517		100.0%

Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	87,267		98.3%	$	92,429		98.0%	$	92,894		96.6%
Trading securities		1,392		1.6%		1,823		1.9%		3,115		3.2%
Equity securities		112		0.1%		116		0.1%		164		0.2%
Total fixed maturity AFS, trading and equity securities	$	88,771		100.0%	$	94,368		100.0%	$	96,173		100.0%

Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				95.7%				96.2%				96.1%
Below investment grade				4.3%				3.8%				3.9%











Page 22


Lincoln Financial Group
Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	47	$	46	$	43	$	50	$	38	-19.1%
Total excluded realized gain (loss)		(35)		(53)		(98)		141		(400)	NM
Total realized gain (loss), pre-tax	$	12	$	(7)	$	(55)	$	191	$	(362)	NM

Excluded Realized Gain (Loss) Net of
Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(28)	$	(41)	$	(77)	$	111	$	(316)	NM
Benefit ratio unlocking		(10)		7		33		(167)		142	NM
Net gain (loss), after-tax	$	(38)	$	(34)	$	(44)	$	(56)	$	(174)	NM

Realized Gain (Loss) Net of Benefit Ratio
Unlocking, After-Tax
Realized gain (loss) related to investments	$	(15)	$	9	$	(15)	$	(37)	$	(110)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(25)		(42)		(19)		(53)		(15)	40.0%
GLB non-performance risk component		5		2		(5)		56		(27)	NM
Total variable annuity net derivative results		(20)		(40)		(24)		3		(42)	NM
Indexed annuity forward-starting option		(3)		(3)		(5)		(22)		(22)	NM
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(38)	$	(34)	$	(44)	$	(56)	$	(174)	NM

Components of Realized Gain (Loss)
Related to Investments, After-Tax
OTTI	$	(2)	$	(1)	$	(2)	$	(2)	$	(6)	NM
Other realized gain (loss) related to certain investments		(15)		(11)		(7)		(13)		(15)	4.8%
Gain (loss) on the mark-to-market on equity investments		-		2		-		(15)		5	NM
Gain (loss) on the mark-to-market on certain instruments		2		19		(6)		(7)		(94)	NM
Total realized gain (loss) related
to investments, after-tax	$	(15)	$	9	$	(15)	$	(37)	$	(110)	NM





Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)

	For the Three Months Ended
	3/31/18		6/30/18		9/30/18		12/31/18		3/31/19		Change
Revenues
Total revenues	$	3,609	$	4,020	$	4,264	$	4,531	$	3,965	9.9%
Less:
Excluded realized gain (loss)		(35)		(53)		(98)		141		(400)	NM
Amortization of DFEL associated with benefit ratio unlocking		(1)		-		-		(4)		3	NM
Adjusted operating revenues	$	3,645	$	4,073	$	4,362	$	4,394	$	4,362	19.7%

Net Income
Net income (loss)	$	367	$	385	$	490	$	399	$	252	-31.3%
Less:
Excluded realized gain (loss), after-tax		(28)		(41)		(77)		111		(316)	NM
Benefit ratio unlocking, after-tax		(10)		7		33		(167)		142	NM
Net impact from the Tax Cuts and Jobs Act		(13)		-		32		-		-	100.0%
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(4)		(35)		(8)		(20)		(15)	NM
Gain (loss) on early extinguishment of debt, after-tax		(19)		-		-		-		-	100.0%
Adjusted income (loss) from operations	$	441	$	454	$	510	$	475	$	441	0.0%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.64	$	1.70	$	2.24	$	1.80	$	1.22	-25.6%
Less:
Excluded realized gain (loss), after-tax		(0.13)		(0.19)		(0.36)		0.53		(1.54)	NM
Benefit ratio unlocking, after-tax		(0.04)		0.03		0.15		(0.78)		0.69	NM
Net impact from the Tax Cuts and Jobs Act		(0.06)		-		0.15		-		-	100.0%
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.02)		(0.16)		(0.04)		(0.10)		(0.07)	NM
Gain (loss) on early extinguishment of debt, after-tax		(0.08)		-		-		-		-	100.0%
Adjusted income (loss) from operations	$	1.97	$	2.02	$	2.34	$	2.15	$	2.14	8.6%







Page 24