2Q19 - 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 July 31, 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 and Retirement Plan Services – 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 July 31, 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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Revenues
Insurance premiums	$	1,165	$	1,323	$	1,336	$	1,446	$	1,398	20.0%	$	1,943	$	2,845	46.4%
Fee income		1,470		1,550		1,511		1,475		1,517	3.2%		2,926		2,991	2.2%
Net investment income		1,232		1,271		1,349		1,251		1,355	10.0%		2,465		2,606	5.7%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(1)		(2)		(2)		(8)		(4)	NM		(3)		(12)	NM
Realized gain (loss), excluding OTTI		(6)		(53)		193		(354)		(113)	NM		8		(468)	NM
Total realized gain (loss)		(7)		(55)		191		(362)		(117)	NM		5		(480)	NM
Amortization of deferred gains on business
sold through reinsurance		-		-		8		8		8	NM		-		15	NM
Other revenues		160		175		136		147		149	-6.9%		290		298	2.8%
Total revenues		4,020		4,264		4,531		3,965		4,310	7.2%		7,629		8,275	8.5%

Expenses
Interest credited		647		652		663		678		680	5.1%		1,300		1,358	4.5%
Benefits		1,661		1,626		2,142		1,757		1,852	11.5%		3,019		3,610	19.6%
Commissions and other expenses		1,177		1,367		1,162		1,176		1,272	8.1%		2,234		2,446	9.5%
Interest and debt expense		68		69		69		71		70	2.9%		159		141	-11.3%
Strategic digitization expense		16		18		28		15		15	-6.3%		31		31	0.0%
Total expenses		3,569		3,732		4,064		3,697		3,889	9.0%		6,743		7,586	12.5%
Income (loss) before taxes		451		532		467		268		421	-6.7%		886		689	-22.2%
Federal income tax expense (benefit)		66		42		68		16		58	-12.1%		134		73	-45.5%
Net income (loss)		385		490		399		252		363	-5.7%		752		616	-18.1%
Adjustment for LNC stock units in our
deferred compensation plans		(8)		-		(12)		-		-	100.0%		(10)		-	100.0%
Net income (loss) available to common
stockholders – diluted	$	377	$	490	$	387	$	252	$	363	-3.7%	$	742	$	616	-17.0%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.70	$	2.24	$	1.80	$	1.22	$	1.79	5.3%	$	3.34	$	3.01	-9.9%

ROE, including AOCI
Net income (loss)		9.9%		13.0%		10.9%		6.6%		8.3%			9.3%		7.5%



Page 3


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

	As of
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities:
Corporate bonds	$	81,059	$	81,065	$	81,314	$	84,255	$	85,907	6.0%
U.S. government bonds		422		409		417		423		430	1.9%
Foreign government bonds		471		459		448		453		440	-6.6%
Mortgage-backed securities		4,121		4,035		4,177		4,299		4,257	3.3%
Asset-backed collateralized debt obligations		1,119		1,362		1,730		2,437		2,425	116.7%
State and municipal bonds		5,248		5,218		5,345		5,569		5,669	8.0%
Hybrid and redeemable preferred securities		620		613		593		614		605	-2.4%
Total AFS securities		93,060		93,161		94,024		98,050		99,733	7.2%
Trading securities		1,450		1,440		1,950		3,314		4,522	211.9%
Equity securities		112		112		99		153		196	75.0%
Mortgage loans on real estate		12,217		12,561		13,260		13,997		15,090	23.5%
Policy loans		2,508		2,490		2,509		2,498		2,484	-1.0%
Derivative investments		584		706		1,107		981		1,510	158.6%
Other investments		2,076		2,216		2,267		2,752		2,845	37.0%
Total investments		112,007		112,686		115,216		121,745		126,380	12.8%
Cash and invested cash		1,775		1,460		2,345		1,593		3,314	86.7%
DAC and VOBA		9,904		10,014		10,264		9,441		8,588	-13.3%
Premiums and fees receivable		574		592		570		607		553	-3.7%
Accrued investment income		1,119		1,168		1,119		1,184		1,146	2.4%
Reinsurance recoverables		17,979		18,271		17,748		17,660		17,481	-2.8%
Funds withheld reinsurance assets		572		566		557		549		548	-4.2%
Goodwill		1,750		1,757		1,782		1,778		1,778	1.6%
Other assets		8,921		9,644		15,713		16,373		16,196	81.5%
Separate account assets		144,231		147,692		132,833		143,369		146,275	1.4%
Total assets	$	298,832	$	303,850	$	298,147	$	314,299	$	322,259	7.8%







Page 4a


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

	As of
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	33,718	$	33,988	$	34,648	$	34,009	$	34,890	3.5%
Other contract holder funds		88,698		89,906		91,233		93,959		94,947	7.0%
Short-term debt		-		-		-		300		300	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		865		865		866		866		866	0.1%
Financial		4,961		4,939		4,973		4,706		4,755	-4.2%
Reinsurance related embedded derivatives		25		20		3		177		310	NM
Funds withheld reinsurance liabilities		1,711		1,733		1,740		1,762		1,796	5.0%
Payables for collateral on investments		4,699		4,212		4,805		5,362		5,632	19.9%
Other liabilities		4,747		5,425		12,696		13,372		14,033	195.6%
Separate account liabilities		144,231		147,692		132,833		143,369		146,275	1.4%
Total liabilities		283,655		288,780		283,797		297,882		303,804	7.1%

Stockholders’ Equity
Common stock		5,674		5,619		5,392		5,285		5,241	-7.6%
Retained earnings		8,302		8,615		8,551		8,679		8,878	6.9%
AOCI:
Unrealized investment gains (losses)		1,502		1,138		729		2,773		4,658	210.1%
Foreign currency translation adjustment		(18)		(20)		(23)		(20)		(24)	-33.3%
Funded status of employee benefit plans		(283)		(282)		(299)		(300)		(298)	-5.3%
Total AOCI		1,201		836		407		2,453		4,336	261.0%
Total stockholders’ equity		15,177		15,070		14,350		16,417		18,455	21.6%
Total liabilities and stockholders’ equity	$	298,832	$	303,850	$	298,147	$	314,299	$	322,259	7.8%










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											As of or For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss)
Net income (loss)	$	385	$	490	$	399	$	252	$	363	-5.7%	$	752	$	616	-18.1%
Pre-tax adjusted income (loss) from operations		540		599		563		507		566	4.8%		1,051		1,073	2.1%
After-tax adjusted income (loss) from operations (1)		454		510		475		441		478	5.3%		895		919	2.7%
Adjusted operating tax rate		15.9%		14.9%		15.6%		13.0%		15.5%			14.8%		14.4%

Average Stockholders’ Equity
Average equity, including AOCI	$	15,581	$	15,124	$	14,710	$	15,384	$	17,436	11.9%	$	16,117	$	16,410	1.8%
Average AOCI		1,717		1,019		622		1,430		3,394	97.7%		2,384		2,412	1.2%
Average equity, excluding AOCI	$	13,864	$	14,105	$	14,088	$	13,954	$	14,042	1.3%	$	13,733	$	13,998	1.9%

ROE, excluding AOCI
Net income (loss)		11.1%		13.9%		11.3%		7.2%		10.4%			10.9%		8.8%
Adjusted income (loss) from operations		13.1%		14.5%		13.5%		12.6%		13.6%			13.0%		13.1%

Per Share
Net income (loss) (diluted)	$	1.70	$	2.24	$	1.80	$	1.22	$	1.79	5.3%	$	3.34	$	3.01	-9.9%
Adjusted income (loss) from operations (diluted)		2.02		2.34		2.15		2.14		2.36	16.8%		3.99		4.50	12.8%
Dividends declared during the period		0.33		0.33		0.37		0.37		0.37	12.1%		0.66		0.74	12.1%

Book value, including AOCI	$	69.85	$	70.17	$	69.71	$	80.88	$	91.92	31.6%	$	69.85	$	91.92	31.6%
Per share impact of AOCI		5.53		3.90		1.98		12.09		21.60	290.6%		5.53		21.60	290.6%
Book value, excluding AOCI	$	64.32	$	66.27	$	67.73	$	68.79	$	70.32	9.3%	$	64.32	$	70.32	9.3%

Shares
Repurchased during the period		1.5		2.7		9.1		3.9		2.3	53.3%		1.5		6.2	NM
End-of-period – basic		217.3		214.8		205.9		203.0		200.8	-7.6%		217.3		200.8	-7.6%
End-of-period – diluted		220.7		217.4		209.0		204.2		202.2	-8.4%		220.7		202.2	-8.4%
Average for the period – diluted		221.6		218.5		215.0		206.0		202.9	-8.4%		221.9		204.4	-7.9%

(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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Cash Returned to Common Stockholders
Shares repurchased	$	100	$	175	$	535	$	240	$	150	50.0%	$	100	$	390	290.0%
Common dividends		72		72		70		76		75	4.2%		144		150	4.2%
Total cash returned to common stockholders	$	172	$	247	$	605	$	316	$	225	30.8%	$	244	$	540	121.3%

Leverage Ratio
Short-term debt	$	-	$	-	$	-	$	300	$	300	NM
Long-term debt		5,826		5,804		5,839		5,572		5,621	-3.5%
Total debt (1)		5,826		5,804		5,839		5,872		5,921	1.6%
Less:
Operating debt (2)		865		865		866		866		866	0.1%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		178		155		189		222		270	51.7%
Total numerator	$	4,481	$	4,482	$	4,482	$	4,482	$	4,483	0.0%

Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,675	$	13,932	$	13,621	$	13,644	$	13,797	0.9%
Add: 25% of capital securities		302		302		302		302		302	0.0%
Total numerator		4,481		4,482		4,482		4,482		4,483	0.0%
Total denominator	$	18,458	$	18,716	$	18,405	$	18,428	$	18,582	0.7%

Leverage ratio		24.3%		23.9%		24.4%		24.3%		24.1%

Holding Company Available Liquidity	$	484	$	465	$	465	$	481	$	474	-2.1%

(1) Excludes obligations under finance leases and certain financing arrangements of $413 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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	322	$	350	$	300	$	287	$	309	-4.0%	$	635	$	596	-6.1%
Retirement Plan Services		51		47		54		43		49	-3.9%		99		92	-7.1%
Life Insurance		185		217		218		195		207	11.9%		357		403	12.9%
Group Protection		57		79		64		70		86	50.9%		94		155	64.9%
Other Operations		(75)		(94)		(73)		(88)		(85)	-13.3%		(134)		(173)	-29.1%
Adjusted income (loss) from operations, before
income taxes	$	540	$	599	$	563	$	507	$	566	4.8%	$	1,051	$	1,073	2.1%

Income (Loss) from Operations, After-Tax
Annuities	$	275	$	302	$	258	$	250	$	266	-3.3%	$	542	$	517	-4.6%
Retirement Plan Services		43		40		45		39		42	-2.3%		86		81	-5.8%
Life Insurance		150		176		175		157		168	12.0%		294		325	10.5%
Group Protection		45		63		50		55		68	51.1%		74		123	66.2%
Other Operations		(59)		(71)		(53)		(60)		(66)	-11.9%		(101)		(127)	-25.7%
Adjusted income (loss) from operations	$	454	$	510	$	475	$	441	$	478	5.3%	$	895	$	919	2.7%

	For the Three Months Ended											For the Trailing Twelve Months
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Sources of Earnings, Pre-Tax
Investment spread	$	172	$	169	$	161	$	151	$	164	-4.7%	$	724	$	646	-10.8%
Mortality/morbidity		159		198		182		179		196	23.3%		604		754	24.8%
Fees on AUM		256		264		274		243		269	5.1%		1,031		1,049	1.7%
VA riders		28		62		19		22		22	-21.4%		107		126	17.8%
Total sources of earnings, before income taxes		615		693		636		595		651	5.9%		2,466		2,575	4.4%
Other Operations		(75)		(94)		(73)		(88)		(85)	-13.3%		(269)		(340)	-26.4%
Adjusted income (loss) from operations, before
income taxes	$	540	$	599	$	563	$	507	$	566	4.8%	$	2,197	$	2,235	1.7%

Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		28.0%		24.4%		25.4%		25.5%		25.2%			29.4%		25.1%
Mortality/morbidity		26.0%		28.5%		28.5%		30.1%		30.2%			24.5%		29.3%
Fees on AUM		41.5%		38.2%		43.0%		40.7%		41.1%			41.8%		40.7%
VA riders		4.5%		8.9%		3.1%		3.7%		3.5%			4.3%		4.9%
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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Annuities
Operating revenues	$	1,106	$	1,118	$	1,086	$	1,174	$	1,156	4.5%	$	2,180	$	2,330	6.9%
Deposits		2,983		3,080		3,774		3,508		3,654	22.5%		5,509		7,162	30.0%
Net flows		(126)		(81)		675		492		377	NM		(732)		869	218.7%
Average account values		136,741		138,639		124,869		127,185		131,675	-3.7%		137,532		129,437	-5.9%

Retirement Plan Services
Operating revenues	$	292	$	294	$	300	$	293	$	299	2.4%	$	584	$	592	1.4%
Deposits		2,217		3,328		2,163		2,496		2,073	-6.5%		4,577		4,568	-0.2%
Net flows		499		1,411		173		(381)		307	-38.5%		962		(74)	NM
Average account values		68,534		71,293		69,518		69,977		72,612	6.0%		68,437		71,228	4.1%

Life Insurance
Operating revenues	$	1,680	$	1,766	$	1,815	$	1,700	$	1,802	7.3%	$	3,340	$	3,502	4.9%
Deposits		1,517		1,523		1,863		1,537		1,683	10.9%		3,051		3,221	5.6%
Net flows		1,084		1,080		1,439		1,020		1,217	12.3%		2,160		2,237	3.6%
Average account values		49,548		50,201		50,088		50,355		51,495	3.9%		49,357		50,925	3.2%
Average in-force face amount		727,577		733,216		740,047		753,441		772,231	6.1%		725,081		762,836	5.2%

Group Protection
Operating revenues	$	937	$	1,128	$	1,139	$	1,138	$	1,155	23.3%	$	1,490	$	2,293	53.9%
Insurance premiums		846		1,011		1,018		1,023		1,032	22.0%		1,354		2,055	51.8%

Consolidated
Adjusted operating revenues (1)	$	4,073	$	4,362	$	4,394	$	4,362	$	4,470	9.7%	$	7,719	$	8,833	14.4%
Deposits		6,717		7,931		7,800		7,541		7,410	10.3%		13,137		14,951	13.8%
Net flows		1,457		2,410		2,287		1,131		1,901	30.5%		2,390		3,032	26.9%
Average account values		254,823		260,133		244,475		247,517		255,782	0.4%		255,326		251,590	-1.5%

(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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Sales
Annuities:
With guaranteed living benefits	$	1,496	$	1,416	$	1,347	$	1,060	$	1,241	-17.0%	$	2,943	$	2,301	-21.8%
Without guaranteed living benefits		598		774		1,122		864		1,115	86.5%		1,185		1,979	67.0%
Variable		2,094		2,190		2,469		1,924		2,356	12.5%		4,128		4,280	3.7%
Fixed		889		890		1,305		1,584		1,298	46.0%		1,381		2,882	108.7%
Total Annuities	$	2,983	$	3,080	$	3,774	$	3,508	$	3,654	22.5%	$	5,509	$	7,162	30.0%

Retirement Plan Services:
First-year sales	$	841	$	1,977	$	835	$	829	$	610	-27.5%	$	1,641	$	1,438	-12.4%
Recurring deposits		1,376		1,351		1,328		1,667		1,463	6.3%		2,936		3,130	6.6%
Total Retirement Plan Services	$	2,217	$	3,328	$	2,163	$	2,496	$	2,073	-6.5%	$	4,577	$	4,568	-0.2%

Life Insurance:
UL	$	10	$	9	$	14	$	11	$	15	50.0%	$	19	$	26	36.8%
MoneyGuard®		57		53		58		51		56	-1.8%		115		107	-7.0%
IUL		14		13		22		16		25	78.6%		28		41	46.4%
VUL		46		62		103		52		53	15.2%		104		105	1.0%
Term		29		26		33		30		37	27.6%		54		67	24.1%
Total individual life insurance		156		163		230		160		186	19.2%		320		346	8.1%
Executive Benefits		6		4		32		31		24	300.0%		16		55	243.8%
Total Life Insurance	$	162	$	167	$	262	$	191	$	210	29.6%	$	336	$	401	19.3%

Group Protection:
Life	$	31	$	69	$	100	$	64	$	42	35.5%	$	53	$	107	101.9%
Disability		38		73		123		42		40	5.3%		59		82	39.0%
Dental		25		16		49		13		13	-48.0%		37		25	-32.4%
Total Group Protection	$	94	$	158	$	272	$	119	$	95	1.1%	$	149	$	214	43.6%
Percent employee-paid		39.9%		40.0%		42.1%		52.6%		45.8%			44.9%		49.6%






Page 9


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Operating Revenues
Annuities	$	1,106	$	1,118	$	1,086	$	1,174	$	1,156	4.5%	$	2,180	$	2,330	6.9%
Retirement Plan Services		292		294		300		293		299	2.4%		584		592	1.4%
Life Insurance		1,680		1,766		1,815		1,700		1,802	7.3%		3,340		3,502	4.9%
Group Protection		937		1,128		1,139		1,138		1,155	23.3%		1,490		2,293	53.9%
Other Operations		58		56		54		57		58	0.0%		125		116	-7.2%
Total adjusted operating revenues	$	4,073	$	4,362	$	4,394	$	4,362	$	4,470	9.7%	$	7,719	$	8,833	14.4%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		111	$	116	$	120	$	117	$	126	13.5%	$	227	$	243	7.0%
Retirement Plan Services		75		75		78		75		76	1.3%		151		150	-0.7%
Life Insurance		113		119		121		121		131	15.9%		230		253	10.0%
Group Protection		140		174		166		156		167	19.3%		220		323	46.8%
Other Operations		28		34		33		40		37	32.1%		57		78	36.8%
Total	$	467	$	518	$	518	$	509	$	537	15.0%	$	885	$	1,047	18.3%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.0%		10.4%		11.1%		10.0%		10.9%			10.4%		10.4%
Retirement Plan Services		25.7%		25.6%		25.8%		25.5%		25.4%			25.8%		25.4%
Life Insurance		6.7%		6.8%		6.7%		7.1%		7.3%			6.9%		7.2%
Group Protection		14.9%		15.3%		14.6%		13.7%		14.4%			14.8%		14.1%
Other Operations		50.2%		59.9%		59.8%		69.9%		64.3%			45.7%		67.1%
Total		11.5%		11.9%		11.8%		11.7%		12.0%			11.5%		11.9%

(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											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	515	$	572	$	591	$	563	$	593	15.1%	$	975	$	1,157	18.7%
Commissions		623		650		737		649		689	10.6%		1,219		1,338	9.8%
Taxes, licenses and fees		79		82		80		100		74	-6.3%		158		174	10.1%
Interest and debt expense		68		69		69		71		70	2.9%		136		141	3.7%
Expenses associated with reserve financing
and unrelated letters of credit		21		21		22		22		22	4.8%		41		44	7.3%
Total adjusted operating commissions and other
expenses incurred		1,306		1,394		1,499		1,405		1,448	10.9%		2,529		2,854	12.9%

Less Amounts Capitalized
General and administrative expenses		(48)		(54)		(73)		(54)		(56)	-16.7%		(90)		(110)	-22.2%
Commissions		(292)		(313)		(406)		(326)		(348)	-19.2%		(582)		(674)	-15.8%
Taxes, licenses and fees		(10)		(9)		(59)		(15)		(15)	-50.0%		(21)		(30)	-42.9%
Total amounts capitalized		(350)		(376)		(538)		(395)		(419)	-19.7%		(693)		(814)	-17.5%
Total expenses incurred, net of amounts
capitalized, excluding amortization		956		1,018		961		1,010		1,029	7.6%		1,836		2,040	11.1%

Amortization
Amortization of DAC, VOBA and other intangibles		262		420		308		209		280	6.9%		521		488	-6.3%
Total adjusted operating commissions and
other expenses	$	1,218	$	1,438	$	1,269	$	1,219	$	1,309	7.5%	$	2,357	$	2,528	7.3%












Page 11


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Annuities
Earned rate on reserves		3.84%		3.89%		3.92%		3.97%		4.09%	25		3.85%		4.03%	18
Variable investment income on reserves (1)		0.13%		0.13%		0.07%		0.05%		0.09%	(4)		0.11%		0.07%	(4)
Net investment income yield on reserves		3.97%		4.02%		3.99%		4.02%		4.18%	21		3.96%		4.10%	14
Interest rate credited to contract holders		2.23%		2.24%		2.31%		2.41%		2.35%	12		2.27%		2.37%	10
Interest rate spread		1.74%		1.78%		1.68%		1.61%		1.83%	9		1.69%		1.73%	4
Base spreads excluding variable investment income		1.61%		1.65%		1.61%		1.56%		1.74%	13		1.58%		1.66%	8

Retirement Plan Services
Earned rate on reserves		4.25%		4.19%		4.20%		4.18%		4.13%	(12)		4.27%		4.16%	(11)
Variable investment income on reserves (1)		0.12%		0.10%		0.06%		0.05%		0.07%	(5)		0.10%		0.06%	(4)
Net investment income yield on reserves		4.37%		4.29%		4.26%		4.23%		4.20%	(17)		4.37%		4.22%	(15)
Interest rate credited to contract holders		2.90%		2.90%		2.89%		2.92%		2.90%	-		2.90%		2.91%	1
Interest rate spread		1.47%		1.39%		1.37%		1.31%		1.30%	(17)		1.47%		1.31%	(16)
Base spreads excluding variable investment income		1.35%		1.29%		1.31%		1.26%		1.23%	(12)		1.37%		1.25%	(12)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.98%		4.85%		4.92%		4.85%		4.87%	(11)		4.98%		4.86%	(12)
Variable investment income on reserves (1)		0.16%		0.38%		0.61%		0.06%		0.46%	30		0.21%		0.26%	5
Net investment income yield on reserves		5.14%		5.23%		5.53%		4.91%		5.33%	19		5.19%		5.12%	(7)
Interest rate credited to contract holders		3.72%		3.72%		3.73%		3.69%		3.68%	(4)		3.73%		3.68%	(5)
Interest rate spread		1.42%		1.51%		1.80%		1.22%		1.65%	23		1.46%		1.44%	(2)
Base spreads excluding variable investment income		1.26%		1.13%		1.19%		1.16%		1.19%	(7)		1.25%		1.18%	(7)

Total (2)
Earned rate (3)		4.46%		4.37%		4.43%		4.33%		4.35%	(11)		4.48%		4.33%	(15)
Variable investment income (1) (3)		0.17%		0.29%		0.43%		0.06%		0.32%	15		0.20%		0.20%	-
Net investment income yield (3)		4.63%		4.66%		4.86%		4.39%		4.67%	4		4.68%		4.53%	(15)

(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											As of or For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	109	$	102	$	108	$	208	$	137	25.7%	$	180	$	345	91.7%
Fee income		587		598		571		568		586	-0.2%		1,173		1,154	-1.6%
Net investment income		244		251		261		257		286	17.2%		493		544	10.3%
Operating realized gain (loss)		48		46		50		41		46	-4.2%		96		87	-9.4%
Amortization of deferred gain		-		-		8		8		8	NM		-		15	NM
Other revenues		118		121		88		92		93	-21.2%		238		185	-22.3%
Total operating revenues		1,106		1,118		1,086		1,174		1,156	4.5%		2,180		2,330	6.9%
Operating expenses:
Interest credited		144		145		150		162		163	13.2%		291		325	11.7%
Benefits		183		149		196		284		219	19.7%		329		503	52.9%
Commissions incurred		265		278		291		268		287	8.3%		509		555	9.0%
Other expenses incurred		222		233		241		230		244	9.9%		454		475	4.6%
Amounts capitalized		(134)		(147)		(176)		(147)		(161)	-20.1%		(254)		(308)	-21.3%
Amortization		104		110		84		90		95	-8.7%		216		184	-14.8%
Total operating expenses		784		768		786		887		847	8.0%		1,545		1,734	12.2%
Income (loss) from operations before taxes		322		350		300		287		309	-4.0%		635		596	-6.1%
Federal income tax expense (benefit)		47		48		42		37		43	-8.5%		93		79	-15.1%
Income (loss) from operations	$	275	$	302	$	258	$	250	$	266	-3.3%	$	542	$	517	-4.6%

Effective Federal Income Tax Rate		14.6%		13.6%		13.8%		12.8%		13.9%			14.6%		13.4%

Average Equity, Excluding Goodwill and AOCI	$	5,002	$	5,045	$	5,000	$	4,785	$	4,741	-5.2%	$	4,978	$	4,763	-4.3%

ROE, Excluding Goodwill and AOCI		22.0%		23.9%		20.7%		20.9%		22.5%			21.8%		21.7%

Return on Average Account Values		81		87		83		79		81	-		79		80	1

Income (Loss) from Operations
Variable annuity		225		264		232		214		232	3.1%		444		447	0.7%
Fixed annuity		50		38		26		36		34	-32.0%		98		70	-28.6%

Account Values
Variable annuity account values:
Average	$	117,177	$	118,838	$	112,615	$	113,785	$	117,254	0.1%	$	117,974	$	115,531	-2.1%
End-of-period		116,901		119,430		108,536		116,514		119,005	1.8%		116,901		119,005	1.8%
Fixed annuity account values:
Average		19,564		19,801		12,254		13,400		14,421	-26.3%		19,558		13,906	-28.9%
End-of-period		19,655		19,855		12,743		13,944		14,839	-24.5%		19,655		14,839	-24.5%

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											As of or For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	64	$	65	$	62	$	61	$	62	-3.1%	$	129	$	123	-4.7%
Net investment income		222		223		232		226		231	4.1%		444		457	2.9%
Other revenues		6		6		6		6		6	0.0%		11		12	9.1%
Total operating revenues		292		294		300		293		299	2.4%		584		592	1.4%
Operating expenses:
Interest credited		137		140		142		145		145	5.8%		274		290	5.8%
Benefits		-		-		-		-		1	NM		1		1	0.0%
Commissions incurred		21		20		18		19		19	-9.5%		40		39	-2.5%
Other expenses incurred		83		83		86		85		83	0.0%		167		167	0.0%
Amounts capitalized		(6)		(5)		(6)		(5)		(5)	16.7%		(10)		(10)	0.0%
Amortization		6		9		6		6		7	16.7%		13		13	0.0%
Total operating expenses		241		247		246		250		250	3.7%		485		500	3.1%
Income (loss) from operations before taxes		51		47		54		43		49	-3.9%		99		92	-7.1%
Federal income tax expense (benefit)		8		7		9		4		7	-12.5%		13		11	-15.4%
Income (loss) from operations	$	43	$	40	$	45	$	39	$	42	-2.3%	$	86	$	81	-5.8%

Effective Federal Income Tax Rate		15.1%		15.9%		15.9%		8.5%		14.3%			13.3%		11.6%

Average Equity, Excluding Goodwill and AOCI	$	1,302	$	1,316	$	1,356	$	1,402	$	1,429	9.8%	$	1,307	$	1,415	8.3%

ROE, Excluding Goodwill and AOCI		13.3%		12.1%		13.3%		11.2%		11.7%			13.1%		11.5%

Pre-tax Net Margin		32.8%		30.7%		34.0%		29.1%		31.7%			31.9%		30.4%

Return on Average Account Values		25		22		26		22		23	(2)		25		23	(2)

Net Flows by Market
Small Market		12		110		248		189		25	108.3%	$	(67)	$	213	NM
Mid - Large Market		730		1,573		264		(283)		532	-27.1%		1,564		249	-84.1%
Multi-Fund® and Other		(243)		(272)		(339)		(287)		(250)	-2.9%		(535)		(536)	-0.2%

Net Flows – Trailing Twelve Months	$	1,844	$	2,813	$	2,546	$	1,702	$	1,510	-18.1%	$	1,844	$	1,510	-18.1%





Page 14


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

	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	205	$	205	$	210	$	213	$	224	9.3%	$	401	$	438	9.2%
Fee income		819		886		881		844		868	6.0%		1,624		1,710	5.3%
Net investment income		650		671		719		643		707	8.8%		1,308		1,351	3.3%
Operating realized gain (loss)		(2)		(3)		-		(3)		(2)	0.0%		(2)		(5)	NM
Other revenues		8		7		5		3		5	-37.5%		9		8	-11.1%
Total operating revenues		1,680		1,766		1,815		1,700		1,802	7.3%		3,340		3,502	4.9%
Operating expenses:
Interest credited		351		352		357		354		355	1.1%		705		709	0.6%
Benefits		840		742		913		902		913	8.7%		1,690		1,814	7.3%
Commissions incurred		166		173		241		186		197	18.7%		345		383	11.0%
Other expenses incurred		198		202		210		212		214	8.1%		399		426	6.8%
Amounts capitalized		(193)		(199)		(318)		(220)		(232)	-20.2%		(397)		(452)	-13.9%
Amortization		133		279		194		71		148	11.3%		241		219	-9.1%
Total operating expenses		1,495		1,549		1,597		1,505		1,595	6.7%		2,983		3,099	3.9%
Income (loss) from operations before taxes		185		217		218		195		207	11.9%		357		403	12.9%
Federal income tax expense (benefit)		35		41		43		38		39	11.4%		63		78	23.8%
Income (loss) from operations	$	150	$	176	$	175	$	157	$	168	12.0%	$	294	$	325	10.5%

Effective Federal Income Tax Rate		18.9%		18.7%		19.8%		19.6%		19.1%			17.6%		19.3%

Average Equity, Excluding Goodwill and AOCI	$	7,954	$	8,047	$	8,147	$	8,399	$	8,697	9.3%	$	7,890	$	8,548	8.3%

ROE, Excluding Goodwill and AOCI		7.5%		8.8%		8.6%		7.5%		7.7%			7.5%		7.6%

Average Account Values	$	49,548	$	50,201	$	50,088	$	50,355	$	51,495	3.9%	$	49,357	$	50,925	3.2%

In-Force Face Amount
UL and other	$	341,663	$	342,455	$	343,922	$	346,292	$	347,674	1.8%	$	341,663	$	347,674	1.8%
Term insurance		388,475		393,839		399,877		416,789		433,706	11.6%		388,475		433,706	11.6%
Total in-force face amount	$	730,138	$	736,294	$	743,799	$	763,081	$	781,380	7.0%	$	730,138	$	781,380	7.0%






Page 15


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	846	$	1,011	$	1,018	$	1,023	$	1,032	22.0%	$	1,354	$	2,055	51.8%
Net investment income		63		76		80		74		81	28.6%		103		154	49.5%
Other revenues		28		41		41		41		42	50.0%		33		84	154.5%
Total operating revenues		937		1,128		1,139		1,138		1,155	23.3%		1,490		2,293	53.9%
Operating expenses:
Interest credited		1		1		2		1		1	0.0%		2		3	50.0%
Benefits		617		744		769		753		758	22.9%		943		1,511	60.2%
Commissions incurred		83		89		101		92		92	10.8%		149		184	23.5%
Other expenses incurred		176		218		218		203		208	18.2%		281		411	46.3%
Amounts capitalized		(17)		(25)		(39)		(23)		(20)	-17.6%		(30)		(43)	-43.3%
Amortization		20		22		24		42		30	50.0%		51		72	41.2%
Total operating expenses		880		1,049		1,075		1,068		1,069	21.5%		1,396		2,138	53.2%
Income (loss) from operations before taxes		57		79		64		70		86	50.9%		94		155	64.9%
Federal income tax expense (benefit)		12		16		14		15		18	50.0%		20		32	60.0%
Income (loss) from operations	$	45	$	63	$	50	$	55	$	68	51.1%	$	74	$	123	66.2%

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

Average Equity, Excluding Goodwill and AOCI	$	1,610	$	2,105	$	2,082	$	2,165	$	2,360	46.6%	$	1,356	$	2,262	66.9%

ROE, Excluding Goodwill and AOCI		11.2%		11.9%		9.6%		10.1%		11.5%			10.9%		10.9%

Loss Ratios by Product Line
Life		68.0%		70.6%		70.8%		71.4%		71.2%			66.1%		71.3%
Disability		76.4%		75.8%		79.6%		75.4%		74.9%			71.6%		75.2%
Dental		73.4%		72.2%		70.6%		72.2%		75.0%			74.0%		73.6%
Total		73.1%		73.6%		75.8%		73.7%		73.6%			69.8%		73.6%








Page 16


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Other Operations
Operating revenues:
Insurance premiums	$	5	$	4	$	-	$	2	$	5	0.0%	$	8	$	7	-12.5%
Net investment income		53		50		57		51		50	-5.7%		117		100	-14.5%
Other revenues		-		2		(3)		4		3	NM		-		9	NM
Total operating revenues		58		56		54		57		58	0.0%		125		116	-7.2%
Operating expenses:
Interest credited		14		14		13		15		15	7.1%		29		30	3.4%
Benefits		28		38		20		20		25	-10.7%		47		46	-2.1%
Commissions and other expenses		7		11		(3)		24		18	157.1%		16		41	156.3%
Interest and debt expenses		68		69		69		71		70	2.9%		136		141	3.7%
Strategic digitization expense		16		18		28		15		15	-6.3%		31		31	0.0%
Total operating expenses		133		150		127		145		143	7.5%		259		289	11.6%
Income (loss) from operations before taxes		(75)		(94)		(73)		(88)		(85)	-13.3%		(134)		(173)	-29.1%
Federal income tax expense (benefit)		(16)		(23)		(20)		(28)		(19)	-18.8%		(33)		(46)	-39.4%
Income (loss) from operations	$	(59)	$	(71)	$	(53)	$	(60)	$	(66)	-11.9%	$	(101)	$	(127)	-25.7%



















Page 17


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	9,538	$	10,162	$	10,278	$	10,512	$	9,689	1.6%	$	8,641	$	10,512	21.7%
Deferrals		363		387		550		406		427	17.6%		716		832	16.2%
Operating amortization		(269)		(424)		(311)		(209)		(279)	-3.7%		(535)		(488)	8.8%
Deferrals, net of operating amortization		94		(37)		239		197		148	57.4%		181		344	90.1%
Amortization associated with benefit ratio unlocking		1		(5)		36		(25)		(7)	NM		6		(32)	NM
Business acquired		30		-		-		-		-	-100.0%		30		-	-100.0%
Business sold through reinsurance		-		-		(278)		-		-	NM		-		-	NM
Adjustment related to realized gains (losses)		(7)		-		(38)		31		11	257.1%		(12)		42	NM
Adjustment related to unrealized gains (losses)		506		158		275		(1,026)		(1,009)	NM		1,316		(2,034)	NM
Balance as of end-of-period	$	10,162	$	10,278	$	10,512	$	9,689	$	8,832	-13.1%	$	10,162	$	8,832	-13.1%

DFEL
Balance as of beginning-of-period	$	1,877	$	2,294	$	2,442	$	2,769	$	2,203	17.4%	$	1,445	$	2,769	91.6%
Deferrals		207		214		251		217		245	18.4%		410		462	12.7%
Operating amortization		(121)		(165)		(146)		(112)		(142)	-17.4%		(227)		(255)	-12.3%
Deferrals, net of operating amortization		86		49		105		105		103	19.8%		183		207	13.1%
Amortization associated with benefit ratio unlocking		-		(1)		4		(3)		(1)	NM		1		(4)	NM
Adjustment related to realized (gains) losses		(4)		(3)		(10)		3		(3)	25.0%		(8)		-	100.0%
Adjustment related to unrealized (gains) losses		335		103		228		(671)		(655)	NM		673		(1,325)	NM
Balance as of end-of-period	$	2,294	$	2,442	$	2,769	$	2,203	$	1,647	-28.2%	$	2,294	$	1,647	-28.2%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	6,216	$	6,190	$	6,117	$	5,914	$	5,676	-8.7%	$	6,216	$	5,676	-8.7%











Page 18


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Fixed Annuities
Balance as of beginning-of-period	$	20,315	$	20,722	$	21,116	$	21,666	$	22,941	12.9%	$	20,305	$	21,666	6.7%
Gross deposits		889		890		1,305		1,584		1,298	46.0%		1,381		2,882	108.7%
Full surrenders and deaths		(490)		(555)		(501)		(469)		(501)	-2.2%		(890)		(970)	-9.0%
Other contract benefits		(157)		(161)		(186)		(151)		(135)	14.0%		(308)		(286)	7.1%
Net flows		242		174		618		964		662	173.6%		183		1,626	NM
Contract holder assessments		(8)		(8)		(9)		(8)		(10)	-25.0%		(15)		(18)	-20.0%
Reinvested interest credited		173		228		(59)		319		243	40.5%		249		562	125.7%
Balance as of end-of-period, gross		20,722		21,116		21,666		22,941		23,836	15.0%		20,722		23,836	15.0%
Reinsurance ceded		(1,067)		(1,261)		(8,923)		(8,997)		(8,997)	NM		(1,067)		(8,997)	NM
Balance as of end-of-period, net	$	19,655	$	19,855	$	12,743	$	13,944	$	14,839	-24.5%	$	19,655	$	14,839	-24.5%

Variable Annuities
Balance as of beginning-of-period	$	116,172	$	116,901	$	119,430	$	108,536	$	116,514	0.3%	$	117,479	$	108,536	-7.6%
Gross deposits		2,094		2,190		2,469		1,924		2,356	12.5%		4,128		4,280	3.7%
Full surrenders and deaths		(1,545)		(1,523)		(1,414)		(1,458)		(1,722)	-11.5%		(3,158)		(3,180)	-0.7%
Other contract benefits		(917)		(922)		(998)		(938)		(919)	-0.2%		(1,885)		(1,857)	1.5%
Net flows		(368)		(255)		57		(472)		(285)	22.6%		(915)		(757)	17.3%
Contract holder assessments		(620)		(629)		(617)		(601)		(619)	0.2%		(1,238)		(1,221)
Change in market value and reinvestment		1,717		3,413		(10,334)		9,051		3,395	97.7%		1,575		12,447	NM
Balance as of end-of-period, gross and net	$	116,901	$	119,430	$	108,536	$	116,514	$	119,005	1.8%	$	116,901	$	119,005	1.8%

Total
Balance as of beginning-of-period	$	136,487	$	137,623	$	140,546	$	130,202	$	139,455	2.2%	$	137,784	$	130,202	-5.5%
Gross deposits		2,983		3,080		3,774		3,508		3,654	22.5%		5,509		7,162	30.0%
Full surrenders and deaths		(2,035)		(2,078)		(1,915)		(1,927)		(2,223)	-9.2%		(4,048)		(4,150)	-2.5%
Other contract benefits		(1,074)		(1,083)		(1,184)		(1,089)		(1,054)	1.9%		(2,193)		(2,143)	2.3%
Net flows		(126)		(81)		675		492		377	NM		(732)		869	218.7%
Contract holder assessments		(628)		(637)		(626)		(609)		(629)	-0.2%		(1,253)		(1,239)	1.1%
Change in market value and reinvestment		1,890		3,641		(10,393)		9,370		3,638	92.5%		1,824		13,009	NM
Balance as of end-of-period, gross		137,623		140,546		130,202		139,455		142,841	3.8%		137,623		142,841	3.8%
Reinsurance ceded		(1,067)		(1,261)		(8,923)		(8,997)		(8,997)	NM		(1,067)		(8,997)	NM
Balance as of end-of-period, net	$	136,556	$	139,285	$	121,279	$	130,458	$	133,844	-2.0%	$	136,556	$	133,844	-2.0%



Page 19


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
General Account
Balance as of beginning-of-period	$	18,856	$	19,046	$	19,511	$	19,766	$	19,914	5.6%	$	18,724	$	19,766	5.6%
Gross deposits		394		704		489		458		393	-0.3%		853		850	-0.4%
Withdrawals		(443)		(442)		(544)		(519)		(470)	-6.1%		(963)		(989)	-2.7%
Net flows		(49)		262		(55)		(61)		(77)	-57.1%		(110)		(139)	-26.4%
Transfers between fixed and variable accounts		104		65		169		70		97	-6.7%		164		168	2.4%
Contract holder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(5)		(6)	-20.0%
Reinvestment interest credited		138		141		144		142		145	5.1%		273		287	5.1%
Balance as of end-of-period	$	19,046	$	19,511	$	19,766	$	19,914	$	20,076	5.4%	$	19,046	$	20,076	5.4%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	48,854	$	50,137	$	52,994	$	47,289	$	51,885	6.2%	$	48,645	$	47,289	-2.8%
Gross deposits		1,823		2,624		1,674		2,038		1,680	-7.8%		3,724		3,718	-0.2%
Withdrawals		(1,275)		(1,475)		(1,446)		(2,358)		(1,296)	-1.6%		(2,652)		(3,653)	-37.7%
Net flows		548		1,149		228		(320)		384	-29.9%		1,072		65	-93.9%
Transfers between fixed and variable accounts		(112)		(134)		(170)		(210)		(141)	-25.9%		(231)		(352)	-52.4%
Contract holder assessments		(52)		(53)		(52)		(51)		(52)	0.0%		(105)		(103)	1.9%
Change in market value and reinvestment		899		1,895		(5,711)		5,177		1,862	107.1%		756		7,039	NM
Balance as of end-of-period	$	50,137	$	52,994	$	47,289	$	51,885	$	53,938	7.6%	$	50,137	$	53,938	7.6%

Total
Balance as of beginning-of-period	$	67,710	$	69,183	$	72,505	$	67,055	$	71,799	6.0%	$	67,369	$	67,055	-0.5%
Gross deposits		2,217		3,328		2,163		2,496		2,073	-6.5%		4,577		4,568	-0.2%
Withdrawals		(1,718)		(1,917)		(1,990)		(2,877)		(1,766)	-2.8%		(3,615)		(4,642)	-28.4%
Net flows		499		1,411		173		(381)		307	-38.5%		962		(74)	NM
Transfers between fixed and variable accounts		(8)		(69)		(1)		(140)		(44)	NM		(67)		(184)	NM
Contract holder assessments		(55)		(56)		(55)		(54)		(55)	0.0%		(110)		(109)	0.9%
Change in market value and reinvestment		1,037		2,036		(5,567)		5,319		2,007	93.5%		1,029		7,326	NM
Balance as of end-of-period	$	69,183	$	72,505	$	67,055	$	71,799	$	74,014	7.0%	$	69,183	$	74,014	7.0%







Page 20


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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
General Account
Balance as of beginning-of-period	$	36,855	$	36,955	$	37,054	$	37,289	$	37,275	1.1%	$	36,791	$	37,289	1.4%
Deposits		1,073		1,024		1,133		1,027		1,117	4.1%		2,112		2,144	1.5%
Withdrawals and deaths		(312)		(266)		(197)		(331)		(195)	37.5%		(629)		(527)	16.2%
Net flows		761		758		936		696		922	21.2%		1,483		1,617	9.0%
Contract holder assessments		(1,018)		(1,024)		(1,051)		(1,043)		(1,107)	-8.7%		(2,037)		(2,148)	-5.4%
Reinvested interest credited		357		365		350		333		348	-2.5%		718		680	-5.3%
Balance as of end-of-period, gross		36,955		37,054		37,289		37,275		37,438	1.3%		36,955		37,438	1.3%
Reinsurance ceded		(693)		(683)		(677)		(669)		(666)	3.9%		(693)		(666)	3.9%
Balance as of end-of-period, net	$	36,262	$	36,371	$	36,612	$	36,606	$	36,772	1.4%	$	36,262	$	36,772	1.4%

Separate Account
Balance as of beginning-of-period	$	13,987	$	14,420	$	15,102	$	13,735	$	15,346	9.7%	$	13,851	$	13,735	-0.8%
Deposits		444		499		730		510		566	27.5%		939		1,077	14.7%
Withdrawals and deaths		(121)		(177)		(227)		(186)		(271)	NM		(262)		(457)	-74.4%
Net flows		323		322		503		324		295	-8.7%		677		620	-8.4%
Contract holder assessments		(179)		(187)		(210)		(193)		(195)	-8.9%		(358)		(388)	-8.4%
Change in market value and reinvestment		289		547		(1,660)		1,480		495	71.3%		250		1,974	NM
Balance as of end-of-period, gross		14,420		15,102		13,735		15,346		15,941	10.5%		14,420		15,941	10.5%
Reinsurance ceded		(868)		(886)		(758)		(832)		(844)	2.8%		(868)		(844)	2.8%
Balance as of end-of-period, net	$	13,552	$	14,216	$	12,977	$	14,514	$	15,097	11.4%	$	13,552	$	15,097	11.4%

Total
Balance as of beginning-of-period	$	50,842	$	51,375	$	52,156	$	51,024	$	52,621	3.5%	$	50,642	$	51,024	0.8%
Deposits		1,517		1,523		1,863		1,537		1,683	10.9%		3,051		3,221	5.6%
Withdrawals and deaths		(433)		(443)		(424)		(517)		(466)	-7.6%		(891)		(984)	-10.4%
Net flows		1,084		1,080		1,439		1,020		1,217	12.3%		2,160		2,237	3.6%
Contract holder assessments		(1,197)		(1,211)		(1,261)		(1,236)		(1,302)	-8.8%		(2,395)		(2,536)	-5.9%
Change in market value and reinvestment		646		912		(1,310)		1,813		843	30.5%		968		2,654	174.2%
Balance as of end-of-period, gross		51,375		52,156		51,024		52,621		53,379	3.9%		51,375		53,379	3.9%
Reinsurance ceded		(1,561)		(1,569)		(1,435)		(1,501)		(1,510)	3.3%		(1,561)		(1,510)	3.3%
Balance as of end-of-period, net	$	49,814	$	50,587	$	49,589	$	51,120	$	51,869	4.1%	$	49,814	$	51,869	4.1%




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

	As of 6/30/18				As of 12/31/18				As of 6/30/19
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities:
Corporate bonds	$	81,059		85.7%	$	81,314		84.7%	$	85,907		82.3%
U.S. government bonds		422		0.4%		417		0.4%		430		0.4%
Foreign government bonds		471		0.5%		448		0.5%		440		0.4%
Mortgage-backed securities		4,121		4.4%		4,177		4.3%		4,257		4.1%
Asset-backed collateralized debt obligations		1,119		1.2%		1,730		1.8%		2,425		2.3%
State and municipal bonds		5,248		5.5%		5,345		5.6%		5,669		5.4%
Hybrid and redeemable preferred securities		620		0.7%		593		0.6%		605		0.6%
Total fixed maturity AFS securities		93,060		98.4%		94,024		97.9%		99,733		95.5%
Trading securities		1,450		1.5%		1,950		2.0%		4,522		4.3%
Equity securities		112		0.1%		99		0.1%		196		0.2%
Total fixed maturity AFS, trading and equity securities	$	94,622		100.0%	$	96,073		100.0%	$	104,451		100.0%

Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	90,083		98.5%	$	92,429		98.0%	$	91,190		95.4%
Trading securities		1,304		1.4%		1,823		1.9%		4,227		4.4%
Equity securities		110		0.1%		116		0.1%		205		0.2%
Total fixed maturity AFS, trading and equity securities	$	91,497		100.0%	$	94,368		100.0%	$	95,622		100.0%

Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				95.9%				96.2%				96.1%
Below investment grade				4.1%				3.8%				3.9%












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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	46	$	43	$	50	$	38	$	44	-4.3%	$	94	$	82	-12.8%
Total excluded realized gain (loss)		(53)		(98)		141		(400)		(161)	NM		(89)		(562)	NM
Total realized gain (loss), pre-tax	$	(7)	$	(55)	$	191	$	(362)	$	(117)	NM	$	5	$	(480)	NM

Excluded Realized Gain (Loss) Net of
Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(41)	$	(77)	$	111	$	(316)	$	(128)	NM	$	(69)	$	(443)	NM
Benefit ratio unlocking		7		33		(167)		142		46	NM		(3)		188	NM
Net gain (loss), after-tax	$	(34)	$	(44)	$	(56)	$	(174)	$	(82)	NM	$	(72)	$	(255)	NM

Realized Gain (Loss) Net of Benefit Ratio
Unlocking, After-Tax
Realized gain (loss) related to investments	$	9	$	(15)	$	(37)	$	(110)	$	(37)	NM	$	(6)	$	(146)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(42)		(19)		(53)		(15)		(19)	54.8%		(67)		(33)	50.7%
GLB non-performance risk component		2		(5)		56		(27)		(2)	NM		7		(30)	NM
Total variable annuity net derivative results		(40)		(24)		3		(42)		(21)	47.5%		(60)		(63)	-5.0%
Indexed annuity forward-starting option		(3)		(5)		(22)		(22)		(24)	NM		(6)		(46)	NM
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(34)	$	(44)	$	(56)	$	(174)	$	(82)	NM	$	(72)	$	(255)	NM

Components of Realized Gain (Loss)
Related to Investments, After-Tax
OTTI	$	(1)	$	(2)	$	(2)	$	(6)	$	(3)	NM	$	(2)	$	(9)	NM
Other realized gain (loss) related to certain investments		(11)		(7)		(13)		(15)		(7)	39.0%		(26)		(21)	19.2%
Gain (loss) on the mark-to-market on equity investments		2		-		(15)		5		1	-50.0%		1		6	NM
Gain (loss) on the mark-to-market on certain instruments		19		(6)		(7)		(94)		(28)	NM		21		(122)	NM
Total realized gain (loss) related
to investments, after-tax	$	9	$	(15)	$	(37)	$	(110)	$	(37)	NM	$	(6)	$	(146)	NM





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

	For the Three Months Ended											For the Six Months Ended
	6/30/18		9/30/18		12/31/18		3/31/19		6/30/19		Change	6/30/18		6/30/19		Change
Revenues
Total revenues	$	4,020	$	4,264	$	4,531	$	3,965	$	4,310	7.2%	$	7,629	$	8,275	8.5%
Less:
Excluded realized gain (loss)		(53)		(98)		141		(400)		(161)	NM		(89)		(562)	NM
Amortization of DFEL associated with
benefit ratio unlocking		-		-		(4)		3		1	NM		(1)		4	NM
Adjusted operating revenues	$	4,073	$	4,362	$	4,394	$	4,362	$	4,470	9.7%	$	7,719	$	8,833	14.4%

Net Income
Net income (loss)	$	385	$	490	$	399	$	252	$	363	-5.7%	$	752	$	616	-18.1%
Less:
Excluded realized gain (loss), after-tax		(41)		(77)		111		(316)		(128)	NM		(69)		(443)	NM
Benefit ratio unlocking, after-tax		7		33		(167)		142		46	NM		(3)		188	NM
Net impact from the Tax Cuts and Jobs Act		-		32		-		-		-	NM		(13)		-	100.0%
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(35)		(8)		(20)		(15)		(33)	5.7%		(39)		(48)	-23.1%
Gain (loss) on early extinguishment of debt, after-tax		-		-		-		-		-	NM		(19)		-	100.0%
Adjusted income (loss) from operations	$	454	$	510	$	475	$	441	$	478	5.3%	$	895	$	919	2.7%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.70	$	2.24	$	1.80	$	1.22	$	1.79	5.3%	$	3.34	$	3.01	-9.9%
Less:
Excluded realized gain (loss), after-tax		(0.19)		(0.36)		0.53		(1.54)		(0.63)	NM		(0.32)		(2.17)	NM
Benefit ratio unlocking, after-tax		0.03		0.15		(0.78)		0.69		0.22	NM		(0.01)		0.92	NM
Net impact from the Tax Cuts and Jobs Act		-		0.15		-		-		-	NM		(0.06)		-	100.0%
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.16)		(0.04)		(0.10)		(0.07)		(0.16)	0.0%		(0.18)		(0.24)	-33.3%
Gain (loss) on early extinguishment of debt, after-tax		-		-		-		-		-	NM		(0.08)		-	100.0%
Adjusted income (loss) from operations	$	2.02	$	2.34	$	2.15	$	2.14	$	2.36	16.8%	$	3.99	$	4.50	12.8%






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