2Q20 - 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	Joshua Shanker					646-855-5716
Citi Research	Suneet Kamath					212-816-3457
Credit Suisse	Andrew Kligerman					212-325-5069
Dowling & Partners	Humphrey Lee					860-676-7324
Evercore	Thomas Gallagher					212-446-9439
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
Piper Sandler & Co.	John Barnidge					312-281-3412
RBC Capital Markets	Mark Dwelle					804-782-4008
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 August 5, 2020
						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-
Lincoln Life Assurance Company of Boston		A+				AA-

Investor Inquiries May Be Directed To:
Chris Giovanni, Senior Vice President, Corporate Treasurer
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 net loss is experienced, shares used in the diluted EPS calculation represent

basic shares, as the use of diluted shares would result in a lower loss per share.

• 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 financial assets;

▪ Changes in the fair value of equity 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 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; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell 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”);

• 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.

Due to reporting a net loss for the three months ended September 30, 2019, and the three and six months ended June 30, 2020, basic shares were used in the diluted earnings per share calculation

for those periods as the use of diluted shares would have resulted in a lower loss per share.

Statistical Supplement is Dated

The financial data in this document is dated August 5, 2020, 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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Revenues
Insurance premiums	$	1,398	$	1,325	$	1,344	$	1,373	$	1,342	-4.0%	$	2,845	$	2,715	-4.6%
Fee income		1,517		1,934		1,572		1,539		1,458	-3.9%		2,991		2,997	0.2%
Net investment income		1,355		1,235		1,381		1,375		1,172	-13.5%		2,606		2,547	-2.3%
Realized gain (loss):
Other-than-temporary impairment (“OTTI”)		(4)		(2)		(1)		-		-	100.0%		(12)		-	100.0%
Realized gain (loss), excluding OTTI		(113)		(9)		(118)		(24)		(647)	NM		(468)		(671)	-43.4%
Total realized gain (loss)		(117)		(11)		(119)		(24)		(647)	NM		(480)		(671)	-39.8%
Amortization of deferred gains on business
sold through reinsurance		8		8		7		11		11	37.5%		15		22	46.7%
Other revenues		149		147		159		151		181	21.5%		298		332	11.4%
Total revenues		4,310		4,638		4,344		4,425		3,517	-18.4%		8,275		7,942	-4.0%

Expenses
Interest credited		680		705		717		725		732	7.6%		1,358		1,457	7.3%
Benefits		1,852		2,502		1,768		2,501		1,725	-6.9%		3,610		4,227	17.1%
Commissions and other expenses		1,272		1,552		1,288		1,085		1,123	-11.7%		2,446		2,207	-9.8%
Interest and debt expense		70		113		72		68		84	20.0%		141		152	7.8%
Strategic digitization expense		15		16		18		12		14	-6.7%		31		26	-16.1%
Total expenses		3,889		4,888		3,863		4,391		3,678	-5.4%		7,586		8,069	6.4%
Income (loss) before taxes		421		(250)		481		34		(161)	NM		689		(127)	NM
Federal income tax expense (benefit)		58		(89)		50		(18)		(67)	NM		73		(85)	NM
Net income (loss)		363		(161)		431		52		(94)	NM		616		(42)	NM
Adjustment for LNC stock units in our
deferred compensation plans		-		(3)		(1)		(23)		-	NM		-		(10)	NM
Net income (loss) available to common
stockholders – diluted	$	363	$	(164)	$	430	$	29	$	(94)	NM	$	616	$	(52)	NM

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM

ROE, including AOCI
Net income (loss)		8.3%		-3.4%		8.7%		1.1%		-2.0%			7.5%		-0.5%



Page 3


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

	As of
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowances for
credit losses ("ACL"):
Corporate bonds	$	84,790	$	87,910	$	88,716	$	85,797	$	95,390	12.5%
U.S. government bonds		430		438		435		482		504	17.2%
State and municipal bonds		5,669		5,800		5,884		5,906		6,393	12.8%
Foreign government bonds		440		444		393		389		436	-0.9%
Residential mortgage-backed securities		3,292		3,287		3,241		3,271		3,272	-0.6%
Commercial mortgage-backed securities		965		1,033		1,083		1,119		1,226	27.0%
Asset-backed securities		3,542		4,172		4,889		5,086		5,716	61.4%
Hybrid and redeemable preferred securities		605		575		559		556		582	-3.8%
Total fixed maturity AFS securities, net of ACL		99,733		103,659		105,200		102,606		113,519	13.8%
Trading securities		4,522		4,691		4,673		4,019		4,651	2.9%
Equity securities		196		158		103		83		87	-55.6%
Mortgage loans on real estate, net of ACL		15,090		15,947		16,339		16,791		16,578	9.9%
Policy loans		2,484		2,475		2,477		2,571		2,551	2.7%
Derivative investments		1,510		2,201		1,911		4,417		2,957	95.8%
Other investments		2,845		3,389		2,994		4,765		4,574	60.8%
Total investments		126,380		132,520		133,697		135,252		144,917	14.7%
Cash and invested cash		3,314		2,939		2,563		6,202		4,201	26.8%
DAC and VOBA		8,588		7,492		7,694		9,212		7,012	-18.4%
Premiums and fees receivable		553		440		465		562		490	-11.4%
Accrued investment income		1,146		1,182		1,148		1,185		1,168	1.9%
Reinsurance recoverables, net of ACL		17,481		17,353		17,144		16,923		16,866	-3.5%
Reinsurance related embedded derivatives		-		-		-		137		-	NM
Funds withheld reinsurance assets		548		543		536		535		535	-2.4%
Goodwill		1,778		1,778		1,778		1,778		1,778	0.0%
Other assets		16,196		15,939		16,170		16,246		15,905	-1.8%
Separate account assets		146,275		145,092		153,566		130,617		146,787	0.4%
Total assets	$	322,259	$	325,278	$	334,761	$	318,649	$	339,659	5.4%




Page 4a


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

	As of
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	34,890	$	36,108	$	36,420	$	37,100	$	38,604	10.6%
Other contract holder funds		94,947		95,283		98,018		99,508		100,537	5.9%
Short-term debt		300		300		300		-		-	-100.0%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		866		866		866		866	0.0%
Financial		4,755		5,204		5,201		5,882		5,870	23.4%
Reinsurance related embedded derivatives		310		339		327		-		245	-21.0%
Funds withheld reinsurance liabilities		1,796		1,817		1,810		1,843		1,867	4.0%
Payables for collateral on investments		5,632		5,528		5,082		8,434		7,031	24.8%
Other liabilities		14,033		14,742		13,482		17,824		17,121	22.0%
Separate account liabilities		146,275		145,092		153,566		130,617		146,787	0.4%
Total liabilities		303,804		305,279		315,072		302,074		318,928	5.0%

Stockholders’ Equity
Common stock		5,241		5,192		5,162		5,071		5,081	-3.1%
Retained earnings		8,878		8,559		8,854		8,500		8,327	-6.2%
AOCI:
Unrealized investment gains (losses)		4,658		6,572		6,017		3,348		7,668	64.6%
Foreign currency translation adjustment		(24)		(29)		(17)		(27)		(28)	-16.7%
Funded status of employee benefit plans		(298)		(295)		(327)		(317)		(317)	-6.4%
Total AOCI		4,336		6,248		5,673		3,004		7,323	68.9%
Total stockholders’ equity		18,455		19,999		19,689		16,575		20,731	12.3%
Total liabilities and stockholders’ equity	$	322,259	$	325,278	$	334,761	$	318,649	$	339,659	5.4%










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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss)
Net income (loss)	$	363	$	(161)	$	431	$	52	$	(94)	NM	$	616	$	(42)	NM
Pre-tax adjusted income (loss) from operations		566		(104)		566		558		195	-65.5%		1,073		752	-29.9%
After-tax adjusted income (loss) from operations (1)		478		(46)		482		465		187	-60.9%		919		652	-29.1%
Adjusted operating tax rate		15.5%		55.8%		14.8%		16.5%		4.0%			14.4%		13.3%

Average Stockholders’ Equity
Average equity, including AOCI	$	17,436	$	19,227	$	19,844	$	18,132	$	18,653	7.0%	$	16,410	$	18,393	12.1%
Average AOCI		3,394		5,292		5,961		4,338		5,164	52.2%		2,412		4,751	97.0%
Average equity, excluding AOCI	$	14,042	$	13,935	$	13,883	$	13,794	$	13,489	-3.9%	$	13,998	$	13,642	-2.5%

ROE, Excluding AOCI
Net income (loss)		10.4%		-4.6%		12.4%		1.5%		-2.8%			8.8%		-0.6%
Adjusted income (loss) from operations		13.6%		-1.3%		13.9%		13.5%		5.5%			13.1%		9.6%

Per Share
Net income (loss) (diluted)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM
Adjusted income (loss) from operations (diluted)		2.36		(0.25)		2.41		2.24		0.97	-58.9%		4.50		3.27	-27.3%
Dividends declared during the period		0.37		0.37		0.40		0.40		0.40	8.1%		0.74		0.80	8.1%

Book value, including AOCI	$	91.92	$	100.84	$	100.11	$	85.79	$	107.28	16.7%	$	91.92	$	107.28	16.7%
Per share impact of AOCI		21.60		31.51		28.84		15.55		37.90	75.5%		21.60		37.90	75.5%
Book value, excluding AOCI	$	70.32	$	69.33	$	71.27	$	70.24	$	69.38	-1.3%	$	70.32	$	69.38	-1.3%

Shares
Repurchased during the period		2.3		2.5		1.7		3.8		-	-100.0%		6.2		3.8	-38.7%
End-of-period – basic		200.8		198.3		196.7		193.2		193.2	-3.8%		200.8		193.2	-3.8%
End-of-period – diluted		202.2		200.7		199.2		195.0		194.0	-4.1%		202.2		194.0	-4.1%
Average for the period – diluted		202.9		201.6		200.0		197.3		193.8	-4.5%		204.4		196.2	-4.0%

(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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Cash Returned to Common Stockholders
Shares repurchased	$	150	$	150	$	100	$	225	$	-	-100.0%	$	390	$	225	-42.3%
Common dividends		75		74		73		79		77	2.7%		150		156	4.0%
Total cash returned to common stockholders	$	225	$	224	$	173	$	304	$	77	-65.8%	$	540	$	381	-29.4%

Leverage Ratio
Short-term debt	$	300	$	300	$	300	$	-	$	-	-100.0%
Long-term debt		5,621		6,070		6,067		6,748		6,736	19.8%
Total debt (1)		5,921		6,370		6,367		6,748		6,736	13.8%
Less:
Operating debt (2)		866		866		866		866		866	0.0%
25% of capital securities		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		270		331		278		459		451	67.0%
Total numerator	$	4,483	$	4,871	$	4,921	$	5,121	$	5,117	14.1%

Stockholders’ equity, excluding unrealized
investment gains (losses)	$	13,797	$	13,427	$	13,672	$	13,227	$	13,063	-5.3%
Add: 25% of capital securities		302		302		302		302		302	0.0%
Total numerator		4,483		4,871		4,921		5,121		5,117	14.1%
Total denominator	$	18,582	$	18,600	$	18,895	$	18,650	$	18,482	-0.5%

Leverage ratio		24.1%		26.2%		26.0%		27.5%		27.7%

Holding Company Available Liquidity	$	474	$	765	$	702	$	760	$	774	63.3%

(1) Excludes obligations under finance leases and certain financing arrangements of $456 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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	309	$	185	$	312	$	302	$	272	-12.0%	$	596	$	574	-3.7%
Retirement Plan Services		49		49		54		45		33	-32.7%		92		78	-15.2%
Life Insurance		207		(318)		222		209		(52)	NM		403		157	-61.0%
Group Protection		86		78		68		50		49	-43.0%		155		100	-35.5%
Other Operations		(85)		(98)		(90)		(48)		(107)	-25.9%		(173)		(157)	9.2%
Adjusted income (loss) from operations, before
income taxes	$	566	$	(104)	$	566	$	558	$	195	-65.5%	$	1,073	$	752	-29.9%

Income (Loss) from Operations, After-Tax
Annuities	$	266	$	169	$	269	$	261	$	237	-10.9%	$	517	$	498	-3.7%
Retirement Plan Services		42		44		47		40		30	-28.6%		81		69	-14.8%
Life Insurance		168		(245)		179		171		(37)	NM		325		134	-58.8%
Group Protection		68		61		54		40		39	-42.6%		123		79	-35.8%
Other Operations		(66)		(75)		(67)		(47)		(82)	-24.2%		(127)		(128)	-0.8%
Adjusted income (loss) from operations	$	478	$	(46)	$	482	$	465	$	187	-60.9%	$	919	$	652	-29.1%

	For the Three Months Ended											For the Trailing Twelve Months
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Sources of Earnings, Pre-Tax
Investment spread	$	164	$	(126)	$	173	$	151	$	39	-76.2%	$	646	$	237	-63.3%
Mortality/morbidity		196		(119)		189		165		15	-92.3%		754		250	-66.8%
Fees on AUM		269		262		275		290		245	-8.9%		1,049		1,072	2.2%
VA riders		22		(23)		19		-		3	-86.4%		126		(1)	NM
Total sources of earnings, before income taxes		651		(6)		656		606		302	-53.6%		2,575		1,558	-39.5%
Other Operations		(85)		(98)		(90)		(48)		(107)	-25.9%		(340)		(344)	-1.2%
Adjusted income (loss) from operations, before
income taxes	$	566	$	(104)	$	566	$	558	$	195	-65.5%	$	2,235	$	1,214	-45.7%

Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		25.2%		1829.1%		26.4%		25.0%		12.7%			25.1%		15.2%
Mortality/morbidity		30.2%		1720.6%		28.8%		27.3%		4.8%			29.3%		16.1%
Fees on AUM		41.1%		-3785.1%		42.0%		47.8%		81.3%			40.7%		68.8%
VA riders		3.5%		335.4%		2.8%		-0.1%		1.2%			4.9%		-0.1%
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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Annuities
Operating revenues	$	1,156	$	1,117	$	1,153	$	1,129	$	1,037	-10.3%	$	2,330	$	2,166	-7.0%
Deposits		3,654		3,461		3,902		3,697		2,515	-31.2%		7,162		6,211	-13.3%
Net flows		377		253		729		528		58	-84.6%		869		585	-32.7%
Average account values		131,675		133,922		137,817		137,922		134,197	1.9%		129,437		136,114	5.2%

Retirement Plan Services
Operating revenues	$	299	$	298	$	310	$	297	$	282	-5.7%	$	592	$	579	-2.2%
Deposits		2,073		2,234		2,663		2,779		2,307	11.3%		4,568		5,086	11.3%
Net flows		307		272		422		671		(1,207)	NM		(74)		(536)	NM
Average account values		72,612		74,201		76,478		75,845		73,611	1.4%		71,228		75,187	5.6%

Life Insurance
Operating revenues	$	1,802	$	2,098	$	1,838	$	1,821	$	1,639	-9.0%	$	3,502	$	3,460	-1.2%
Deposits		1,683		1,685		2,413		1,450		1,428	-15.2%		3,221		2,878	-10.6%
Net flows		1,217		1,227		1,957		963		1,023	-15.9%		2,237		1,986	-11.2%
Average account values		51,495		52,050		53,243		52,866		52,693	2.3%		50,925		52,780	3.6%
Average in-force face amount		772,231		790,667		814,865		836,488		853,071	10.5%		762,836		844,779	10.7%

Group Protection
Operating revenues	$	1,155	$	1,137	$	1,158	$	1,224	$	1,199	3.8%	$	2,293	$	2,424	5.7%
Insurance premiums		1,032		1,024		1,035		1,094		1,086	5.2%		2,055		2,179	6.0%

Consolidated
Adjusted operating revenues (1)	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%
Deposits		7,410		7,380		8,978		7,926		6,250	-15.7%		14,951		14,175	-5.2%
Net flows		1,901		1,752		3,108		2,162		(126)	NM		3,032		2,035	-32.9%
Average account values		255,782		260,173		267,538		266,633		260,501	1.8%		251,590		264,081	5.0%

(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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Sales
Annuities:
With guaranteed living benefits	$	1,241	$	1,243	$	1,428	$	1,185	$	824	-33.6%	$	2,301	$	2,008	-12.7%
Without guaranteed living benefits		1,115		1,191		1,298		1,454		1,392	24.8%		1,979		2,846	43.8%
Variable		2,356		2,434		2,726		2,639		2,216	-5.9%		4,280		4,854	13.4%
Fixed		1,298		1,027		1,176		1,058		299	-77.0%		2,882		1,357	-52.9%
Total Annuities	$	3,654	$	3,461	$	3,902	$	3,697	$	2,515	-31.2%	$	7,162	$	6,211	-13.3%

Retirement Plan Services:
First-year sales	$	610	$	723	$	1,227	$	867	$	827	35.6%	$	1,438	$	1,694	17.8%
Recurring deposits		1,463		1,511		1,436		1,912		1,480	1.2%		3,130		3,392	8.4%
Total Retirement Plan Services	$	2,073	$	2,234	$	2,663	$	2,779	$	2,307	11.3%	$	4,568	$	5,086	11.3%

Life Insurance:
UL	$	15	$	11	$	20	$	9	$	5	-66.7%	$	26	$	14	-46.2%
MoneyGuard®		56		67		124		34		36	-35.7%		107		70	-34.6%
IUL		25		37		76		21		23	-8.0%		41		44	7.3%
VUL		53		54		107		44		55	3.8%		105		98	-6.7%
Term		37		37		39		35		36	-2.7%		67		72	7.5%
Total individual life insurance		186		206		366		143		155	-16.7%		346		298	-13.9%
Executive Benefits		24		28		81		26		4	-83.3%		55		30	-45.5%
Total Life Insurance	$	210	$	234	$	447	$	169	$	159	-24.3%	$	401	$	328	-18.2%

Group Protection:
Life	$	42	$	131	$	108	$	50	$	47	11.9%	$	107	$	98	-8.4%
Disability		40		96		140		42		47	17.5%		82		89	8.5%
Dental		13		15		49		10		11	-15.4%		25		20	-20.0%
Total Group Protection	$	95	$	242	$	297	$	102	$	105	10.5%	$	214	$	207	-3.3%
Percent employee-paid		45.8%		41.5%		37.6%		59.9%		51.6%			49.6%		55.7%






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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Operating Revenues
Annuities	$	1,156	$	1,117	$	1,153	$	1,129	$	1,037	-10.3%	$	2,330	$	2,166	-7.0%
Retirement Plan Services		299		298		310		297		282	-5.7%		592		579	-2.2%
Life Insurance		1,802		2,098		1,838		1,821		1,639	-9.0%		3,502		3,460	-1.2%
Group Protection		1,155		1,137		1,158		1,224		1,199	3.8%		2,293		2,424	5.7%
Other Operations		58		50		54		38		52	-10.3%		116		90	-22.4%
Total segment operating revenues	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%

General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities		126	$	118	$	132	$	120	$	111	-11.9%	$	243	$	232	-4.5%
Retirement Plan Services		76		73		78		72		68	-10.5%		150		141	-6.0%
Life Insurance		131		123		145		121		116	-11.5%		253		238	-5.9%
Group Protection		167		162		174		154		153	-8.4%		323		304	-5.9%
Other Operations		37		25		43		(4)		55	48.6%		78		51	-34.6%
Total	$	537	$	501	$	572	$	463	$	503	-6.3%	$	1,047	$	966	-7.7%

General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		10.9%		10.6%		11.4%		10.7%		10.7%			10.4%		10.7%
Retirement Plan Services		25.4%		24.6%		25.3%		24.4%		24.3%			25.4%		24.3%
Life Insurance		7.3%		5.9%		7.9%		6.7%		7.1%			7.2%		6.9%
Group Protection		14.4%		14.1%		15.0%		12.5%		12.7%			14.1%		12.6%
Other Operations		64.3%		49.6%		81.8%		-10.0%		107.5%			67.1%		57.1%
Total		12.0%		10.7%		12.7%		10.3%		12.0%			11.9%		11.1%

(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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	593	$	569	$	663	$	520	$	554	-6.6%	$	1,157	$	1,073	-7.3%
Commissions		689		707		867		706		621	-9.9%		1,338		1,327	-0.8%
Taxes, licenses and fees		74		86		87		90		79	6.8%		174		169	-2.9%
Interest and debt expense		70		71		72		68		68	-2.9%		141		137	-2.8%
Expenses associated with reserve financing
and unrelated letters of credit		22		22		23		23		23	4.5%		44		45	2.3%
Total adjusted operating commissions and other
expenses incurred		1,448		1,455		1,712		1,407		1,345	-7.1%		2,854		2,751	-3.6%

Less Amounts Capitalized
General and administrative expenses		(56)		(68)		(91)		(57)		(51)	8.9%		(110)		(107)	2.7%
Commissions		(348)		(374)		(523)		(362)		(291)	16.4%		(674)		(652)	3.3%
Taxes, licenses and fees		(15)		(14)		(26)		(13)		(13)	13.3%		(30)		(26)	13.3%
Total amounts capitalized		(419)		(456)		(640)		(432)		(355)	15.3%		(814)		(785)	3.6%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,029		999		1,072		975		990	-3.8%		2,040		1,966	-3.6%

Amortization
Amortization of DAC, VOBA and other intangibles		280		601		261		247		207	-26.1%		488		455	-6.8%
Total operating commissions and other expenses	$	1,309	$	1,600	$	1,333	$	1,222	$	1,197	-8.6%	$	2,528	$	2,421	-4.2%













Page 11


Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited

	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Annuities
Earned rate on reserves		4.09%		4.04%		3.84%		3.73%		3.69%	(40)		4.03%		3.71%	(32)
Variable investment income on reserves (1)		0.09%		0.09%		0.20%		0.03%		0.10%	1		0.07%		0.06%	(1)
Net investment income yield on reserves		4.18%		4.13%		4.04%		3.76%		3.79%	(39)		4.10%		3.77%	(33)
Interest rate credited to contract holders		2.35%		2.46%		2.47%		2.31%		2.26%	(9)		2.37%		2.28%	(9)
Interest rate spread		1.83%		1.67%		1.57%		1.45%		1.53%	(30)		1.73%		1.49%	(24)
Base spreads excluding variable investment income		1.74%		1.58%		1.37%		1.42%		1.43%	(31)		1.66%		1.43%	(23)

Retirement Plan Services
Earned rate on reserves		4.13%		4.13%		4.07%		3.95%		3.85%	(28)		4.16%		3.90%	(26)
Variable investment income on reserves (1)		0.07%		0.16%		0.24%		0.05%		0.06%	(1)		0.06%		0.06%	-
Net investment income yield on reserves		4.20%		4.29%		4.31%		4.00%		3.91%	(29)		4.22%		3.96%	(26)
Interest rate credited to contract holders		2.90%		2.90%		2.89%		2.87%		2.86%	(4)		2.91%		2.88%	(3)
Interest rate spread		1.30%		1.39%		1.42%		1.13%		1.05%	(25)		1.31%		1.08%	(23)
Base spreads excluding variable investment income		1.23%		1.23%		1.18%		1.08%		0.99%	(24)		1.25%		1.02%	(23)

Life Insurance – Interest-Sensitive
Earned rate on reserves		4.87%		4.86%		4.84%		4.77%		4.78%	(9)		4.86%		4.77%	(9)
Variable investment income on reserves (1)		0.46%		-0.38%		0.33%		0.31%		-0.72%	(118)		0.26%		-0.21%	(47)
Net investment income yield on reserves		5.33%		4.48%		5.17%		5.08%		4.06%	(127)		5.12%		4.56%	(56)
Interest rate credited to contract holders		3.68%		3.71%		3.71%		3.80%		3.81%	13		3.68%		3.80%	12
Interest rate spread		1.65%		0.77%		1.46%		1.28%		0.25%	(140)		1.44%		0.76%	(68)
Base spreads excluding variable investment income		1.19%		1.15%		1.13%		0.97%		0.97%	(22)		1.18%		0.97%	(21)

Total (2)
Earned rate (3)		4.35%		4.39%		4.33%		4.29%		4.06%	(29)		4.33%		4.18%	(15)
Variable investment income (1) (3)		0.32%		-0.19%		0.28%		0.19%		-0.34%	(66)		0.20%		-0.08%	(28)
Net investment income yield (3)		4.67%		4.20%		4.61%		4.48%		3.72%	(95)		4.53%		4.10%	(43)

(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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	137	$	79	$	78	$	53	$	22	-83.9%	$	345	$	75	-78.3%
Fee income		586		596		606		593		567	-3.2%		1,154		1,160	0.5%
Net investment income		286		287		309		326		270	-5.6%		544		595	9.4%
Operating realized gain (loss)		46		51		53		54		49	6.5%		87		104	19.5%
Amortization of deferred gain		8		8		7		8		8	0.0%		15		16	6.7%
Other revenues		93		96		100		95		121	30.1%		185		216	16.8%
Total operating revenues		1,156		1,117		1,153		1,129		1,037	-10.3%		2,330		2,166	-7.0%
Operating expenses:
Interest credited		163		183		190		192		192	17.8%		325		384	18.2%
Benefits		219		273		163		170		127	-42.0%		503		297	-41.0%
Commissions incurred		287		295		322		311		246	-14.3%		555		558	0.5%
Other expenses incurred		244		240		257		250		221	-9.4%		475		470	-1.1%
Amounts capitalized		(161)		(175)		(198)		(191)		(122)	24.2%		(308)		(313)	-1.6%
Amortization		95		116		107		95		101	6.3%		184		196	6.5%
Total operating expenses		847		932		841		827		765	-9.7%		1,734		1,592	-8.2%
Income (loss) from operations before taxes		309		185		312		302		272	-12.0%		596		574	-3.7%
Federal income tax expense (benefit)		43		16		43		41		35	-18.6%		79		76	-3.8%
Income (loss) from operations	$	266	$	169	$	269	$	261	$	237	-10.9%	$	517	$	498	-3.7%

Effective Federal Income Tax Rate		13.9%		8.4%		13.9%		13.4%		12.9%			13.4%		13.2%

Average Equity, Excluding Goodwill and AOCI	$	4,741	$	4,846	$	4,883	$	4,887	$	5,002	5.5%	$	4,763	$	4,945	3.8%

ROE, Excluding Goodwill and AOCI		22.5%		14.0%		22.0%		21.4%		19.0%			21.7%		20.2%

Return on Average Account Values		81		51		78		76		71	(10)		80		73	(7)

Income (Loss) from Operations
Variable annuity		232		198		233		232		207	-10.8%		447		439	-1.8%
Fixed annuity		34		(29)		36		29		30	-11.8%		70		59	-15.7%

Account Values
Variable annuity account values:
Average	$	117,254	$	118,680	$	121,632	$	120,972	$	116,861	-0.3%	$	115,531	$	118,979	3.0%
End-of-period		119,005		118,424		125,492		108,689		121,712	2.3%		119,005		121,712	2.3%
Fixed annuity account values:
Average		14,421		15,242		16,185		16,950		17,336	20.2%		13,906		17,135	23.2%
End-of-period		14,839		15,611		16,636		17,208		17,349	16.9%		14,839		17,349	16.9%

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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	62	$	63	$	66	$	61	$	58	-6.5%	$	123	$	119	-3.3%
Net investment income		231		229		239		229		218	-5.6%		457		447	-2.2%
Other revenues		6		6		5		7		6	0.0%		12		13	8.3%
Total operating revenues		299		298		310		297		282	-5.7%		592		579	-2.2%
Operating expenses:
Interest credited		145		147		148		150		153	5.5%		290		303	4.5%
Benefits		1		1		1		-		1	0.0%		1		1	0.0%
Commissions incurred		19		20		20		19		18	-5.3%		39		37	-5.1%
Other expenses incurred		83		80		86		82		77	-7.2%		167		159	-4.8%
Amounts capitalized		(5)		(5)		(7)		(6)		(6)	-20.0%		(10)		(12)	-20.0%
Amortization		7		6		8		7		6	-14.3%		13		13	0.0%
Total operating expenses		250		249		256		252		249	-0.4%		500		501	0.2%
Income (loss) from operations before taxes		49		49		54		45		33	-32.7%		92		78	-15.2%
Federal income tax expense (benefit)		7		5		7		5		3	-57.1%		11		9	-18.2%
Income (loss) from operations	$	42	$	44	$	47	$	40	$	30	-28.6%	$	81	$	69	-14.8%

Effective Federal Income Tax Rate		14.3%		9.3%		13.7%		11.3%		10.1%			11.6%		10.8%

Average Equity, Excluding Goodwill and AOCI	$	1,429	$	1,447	$	1,440	$	1,415	$	1,410	-1.3%	$	1,415	$	1,413	-0.1%

ROE, Excluding Goodwill and AOCI		11.7%		12.2%		13.0%		11.2%		8.5%			11.5%		9.8%

Pre-tax Net Margin		31.7%		32.4%		33.6%		30.4%		25.8%			30.4%		28.3%

Return on Average Account Values		23		24		25		21		16	(7)		23		18	(5)

Net Flows by Market
Small Market		25		117		118		141		30	20.0%	$	213	$	171	-19.7%
Mid - Large Market		532		436		651		790		(1,084)	NM		249		(294)	NM
Multi-Fund® and Other		(250)		(281)		(347)		(260)		(153)	38.8%		(536)		(413)	22.9%

Net Flows – Trailing Twelve Months	$	1,510	$	371	$	620	$	1,672	$	158	-89.5%	$	1,510	$	158	-89.5%





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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	224	$	219	$	228	$	224	$	230	2.7%	$	438	$	454	3.7%
Fee income		868		1,275		898		893		830	-4.4%		1,710		1,723	0.8%
Net investment income		707		601		706		697		577	-18.4%		1,351		1,274	-5.7%
Operating realized gain (loss)		(2)		(1)		(1)		(3)		(2)	0.0%		(5)		(5)	0.0%
Amortization of deferred gain on
business sold through reinsurance		-		-		-		3		3	NM		-		6	NM
Other revenues		5		4		7		7		1	-80.0%		8		8	0.0%
Total operating revenues		1,802		2,098		1,838		1,821		1,639	-9.0%		3,502		3,460	-1.2%
Operating expenses:
Interest credited		355		360		364		371		375	5.6%		709		746	5.2%
Benefits		913		1,426		942		954		1,084	18.7%		1,814		2,037	12.3%
Commissions incurred		197		212		337		191		173	-12.2%		383		364	-5.0%
Other expenses incurred		214		215		256		209		195	-8.9%		426		405	-4.9%
Amounts capitalized		(232)		(246)		(397)		(216)		(202)	12.9%		(452)		(418)	7.5%
Amortization		148		449		114		103		66	-55.4%		219		169	-22.8%
Total operating expenses		1,595		2,416		1,616		1,612		1,691	6.0%		3,099		3,303	6.6%
Income (loss) from operations before taxes		207		(318)		222		209		(52)	NM		403		157	-61.0%
Federal income tax expense (benefit)		39		(73)		43		38		(15)	NM		78		23	-70.5%
Income (loss) from operations	$	168	$	(245)	$	179	$	171	$	(37)	NM	$	325	$	134	-58.8%

Effective Federal Income Tax Rate		19.1%		22.9%		19.2%		18.1%		28.9%			19.3%		14.5%

Average Equity, Excluding Goodwill and AOCI	$	8,697	$	8,601	$	8,502	$	8,798	$	8,977	3.2%	$	8,548	$	8,888	4.0%

ROE, Excluding Goodwill and AOCI		7.7%		-11.4%		8.4%		7.8%		-1.6%			7.6%		3.0%

Average Account Values	$	51,495	$	52,050	$	53,243	$	52,866	$	52,693	2.3%	$	50,925	$	52,780	3.6%

In-Force Face Amount
UL and other	$	347,674	$	348,836	$	357,726	$	356,889	$	357,690	2.9%	$	347,674	$	357,690	2.9%
Term insurance		433,706		451,117		472,050		486,311		505,251	16.5%		433,706		505,251	16.5%
Total in-force face amount	$	781,380	$	799,953	$	829,776	$	843,200	$	862,941	10.4%	$	781,380	$	862,941	10.4%




Page 15


Lincoln Financial Group
Group Protection – 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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,032	$	1,024	$	1,035	$	1,094	$	1,086	5.2%	$	2,055	$	2,179	6.0%
Net investment income		81		72		81		81		69	-14.8%		154		151	-1.9%
Other revenues		42		41		42		49		44	4.8%		84		94	11.9%
Total operating revenues		1,155		1,137		1,158		1,224		1,199	3.8%		2,293		2,424	5.7%
Operating expenses:
Interest credited		1		2		1		2		1	0.0%		3		3	0.0%
Benefits		758		756		768		862		843	11.2%		1,511		1,706	12.9%
Commissions incurred		92		88		95		87		97	5.4%		184		183	-0.5%
Other expenses incurred		208		212		232		200		198	-4.8%		411		397	-3.4%
Amounts capitalized		(20)		(29)		(38)		(19)		(23)	-15.0%		(43)		(42)	2.3%
Amortization		30		30		32		42		34	13.3%		72		77	6.9%
Total operating expenses		1,069		1,059		1,090		1,174		1,150	7.6%		2,138		2,324	8.7%
Income (loss) from operations before taxes		86		78		68		50		49	-43.0%		155		100	-35.5%
Federal income tax expense (benefit)		18		17		14		10		10	-44.4%		32		21	-34.4%
Income (loss) from operations	$	68	$	61	$	54	$	40	$	39	-42.6%	$	123	$	79	-35.8%

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	$	2,360	$	2,492	$	2,554	$	2,601	$	2,628	11.4%	$	2,262	$	2,615	15.6%

ROE, Excluding Goodwill and AOCI		11.5%		9.9%		8.4%		6.1%		5.9%			10.9%		6.0%

Loss Ratios by Product Line
Life		71.2%		70.5%		65.7%		79.4%		82.6%			71.3%		81.0%
Disability		74.9%		76.4%		80.5%		78.3%		78.7%			75.2%		78.5%
Dental		75.0%		73.4%		70.7%		74.6%		40.2%			73.6%		57.7%
Total		73.6%		74.1%		74.4%		78.5%		77.8%			73.6%		78.1%








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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Other Operations
Operating revenues:
Insurance premiums	$	5	$	3	$	4	$	2	$	5	0.0%	$	7	$	7	0.0%
Net investment income		50		46		46		42		38	-24.0%		100		80	-20.0%
Other revenues		3		1		4		(6)		9	200.0%		9		3	-66.7%
Total operating revenues		58		50		54		38		52	-10.3%		116		90	-22.4%
Operating expenses:
Interest credited		15		14		14		12		11	-26.7%		30		23	-23.3%
Benefits		25		42		23		16		30	20.0%		46		46	0.0%
Commissions and other expenses		18		5		17		(22)		36	100.0%		41		15	-63.4%
Interest and debt expenses		70		71		72		68		68	-2.9%		141		137	-2.8%
Strategic digitization expense		15		16		18		12		14	-6.7%		31		26	-16.1%
Total operating expenses		143		148		144		86		159	11.2%		289		247	-14.5%
Income (loss) from operations before taxes		(85)		(98)		(90)		(48)		(107)	-25.9%		(173)		(157)	9.2%
Federal income tax expense (benefit)		(19)		(23)		(23)		(1)		(25)	-31.6%		(46)		(29)	37.0%
Income (loss) from operations	$	(66)	$	(75)	$	(67)	$	(47)	$	(82)	-24.2%	$	(127)	$	(128)	-0.8%



















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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	9,689	$	8,832	$	7,731	$	7,928	$	9,457	-2.4%	$	10,512	$	7,928	-24.6%
Business acquired (sold) through reinsurance		-		-		-		(10)		-	NM		-		(10)	NM
Cumulative effect from adoption of new
accounting standard		-		-		-		5		-	NM		-		5	NM
Deferrals		427		459		643		435		355	-16.9%		832		790	-5.0%
Operating amortization		(279)		(604)		(262)		(243)		(204)	26.9%		(488)		(447)	8.4%
Deferrals, net of operating amortization		148		(145)		381		192		151	2.0%		344		343	-0.3%
Amortization associated with benefit ratio unlocking		(7)		3		(16)		66		(4)	42.9%		(32)		62	293.8%
Adjustment related to realized (gains) losses		11		(9)		22		58		33	200.0%		42		91	116.7%
Adjustment related to unrealized (gains) losses		(1,009)		(950)		(190)		1,218		(2,396)	NM		(2,034)		(1,178)	42.1%
Balance as of end-of-period	$	8,832	$	7,731	$	7,928	$	9,457	$	7,241	-18.0%	$	8,832	$	7,241	-18.0%

DFEL
Balance as of beginning-of-period	$	2,203	$	1,647	$	482	$	650	$	1,379	-37.4%	$	2,769	$	650	-76.5%
Cumulative effect from adoption of new
accounting standards		-		-		-		4		-	NM		-		4	NM
Deferrals		245		264		368		240		252	2.9%		462		492	6.5%
Operating amortization		(142)		(547)		(163)		(160)		(111)	21.8%		(255)		(270)	-5.9%
Deferrals, net of operating amortization		103		(283)		205		80		141	36.9%		207		222	7.2%
Amortization associated with benefit ratio unlocking		(1)		-		(2)		8		(2)	-100.0%		(4)		6	250.0%
Adjustment related to realized (gains) losses		(3)		(3)		3		17		12	NM		-		29	NM
Adjustment related to unrealized (gains) losses		(655)		(879)		(38)		620		(1,097)	-67.5%		(1,325)		(478)	63.9%
Balance as of end-of-period	$	1,647	$	482	$	650	$	1,379	$	433	-73.7%	$	1,647	$	433	-73.7%

DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,676	$	5,727	$	5,750	$	6,382	$	5,378	-5.2%	$	5,676	$	5,378	-5.2%








Page 18


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

	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Fixed Annuities
Balance as of beginning-of-period	$	22,941	$	23,836	$	24,448	$	25,384	$	25,740	12.2%	$	21,666	$	25,384	17.2%
Gross deposits		1,298		1,027		1,176		1,058		299	-77.0%		2,882		1,357	-52.9%
Full surrenders and deaths		(501)		(441)		(355)		(400)		(384)	23.4%		(970)		(784)	19.2%
Other contract benefits		(135)		(145)		(170)		(156)		(143)	-5.9%		(286)		(299)	-4.5%
Net flows		662		441		651		502		(228)	NM		1,626		274	-83.1%
Contract holder assessments		(10)		(10)		(11)		(13)		(16)	-60.0%		(18)		(28)	-55.6%
Reinvested interest credited		243		181		296		(133)		305	25.5%		562		171	-69.6%
Balance as of end-of-period, gross		23,836		24,448		25,384		25,740		25,801	8.2%		23,836		25,801	8.2%
Reinsurance ceded		(8,997)		(8,837)		(8,748)		(8,532)		(8,452)	6.1%		(8,997)		(8,452)	6.1%
Balance as of end-of-period, net	$	14,839	$	15,611	$	16,636	$	17,208	$	17,349	16.9%	$	14,839	$	17,349	16.9%

Variable Annuities
Balance as of beginning-of-period	$	116,514	$	119,005	$	118,424	$	125,492	$	108,689	-6.7%	$	108,536	$	125,492	15.6%
Gross deposits		2,356		2,434		2,726		2,639		2,216	-5.9%		4,280		4,854	13.4%
Full surrenders and deaths		(1,722)		(1,711)		(1,642)		(1,602)		(1,068)	38.0%		(3,180)		(2,670)	16.0%
Other contract benefits		(919)		(911)		(1,006)		(1,011)		(862)	6.2%		(1,857)		(1,873)	-0.9%
Net flows		(285)		(188)		78		26		286	200.4%		(757)		311	141.1%
Contract holder assessments		(619)		(636)		(638)		(632)		(611)	1.3%		(1,221)		(1,243)	-1.8%
Change in market value and reinvestment		3,395		243		7,628		(16,197)		13,349	293.2%		12,447		(2,847)	NM
Balance as of end-of-period, gross		119,005		118,424		125,492		108,689		121,713	2.3%		119,005		121,713	2.3%
Reinsurance ceded		-		-		-		-		(1)	NM		-		(1)	NM
Balance as of end-of-period, gross and net	$	119,005	$	118,424	$	125,492	$	108,689	$	121,712	2.3%	$	119,005	$	121,712	2.3%

Total
Balance as of beginning-of-period	$	139,455	$	142,841	$	142,872	$	150,876	$	134,429	-3.6%	$	130,202	$	150,876	15.9%
Gross deposits		3,654		3,461		3,902		3,697		2,515	-31.2%		7,162		6,211	-13.3%
Full surrenders and deaths		(2,223)		(2,152)		(1,997)		(2,002)		(1,452)	34.7%		(4,150)		(3,454)	16.8%
Other contract benefits		(1,054)		(1,056)		(1,176)		(1,167)		(1,005)	4.6%		(2,143)		(2,172)	-1.4%
Net flows		377		253		729		528		58	-84.6%		869		585	-32.7%
Contract holder assessments		(629)		(646)		(649)		(645)		(627)	0.3%		(1,239)		(1,271)	-2.6%
Change in market value and reinvestment		3,638		424		7,924		(16,330)		13,654	275.3%		13,009		(2,676)	NM
Balance as of end-of-period, gross		142,841		142,872		150,876		134,429		147,514	3.3%		142,841		147,514	3.3%
Reinsurance ceded		(8,997)		(8,837)		(8,748)		(8,532)		(8,453)	6.0%		(8,997)		(8,453)	6.0%
Balance as of end-of-period, net	$	133,844	$	134,035	$	142,128	$	125,897	$	139,061	3.9%	$	133,844	$	139,061	3.9%

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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
General Account
Balance as of beginning-of-period	$	19,914	$	20,076	$	20,337	$	20,558	$	21,335	7.1%	$	19,766	$	20,558	4.0%
Gross deposits		393		469		663		609		817	107.9%		850		1,426	67.8%
Withdrawals		(470)		(490)		(682)		(565)		(752)	-60.0%		(989)		(1,317)	-33.2%
Net flows		(77)		(21)		(19)		44		65	184.4%		(139)		109	178.4%
Transfers between fixed and variable accounts		97		136		94		587		124	27.8%		168		711	NM
Contract holder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(6)		(6)	0.0%
Reinvestment interest credited		145		149		149		149		151	4.1%		287		300	4.5%
Balance as of end-of-period	$	20,076	$	20,337	$	20,558	$	21,335	$	21,672	7.9%	$	20,076	$	21,672	7.9%

Separate Account and Mutual Funds
Balance as of beginning-of-period	$	51,885	$	53,938	$	54,227	$	58,131	$	48,301	-6.9%	$	47,289	$	58,131	22.9%
Gross deposits		1,680		1,765		2,000		2,170		1,490	-11.3%		3,718		3,660	-1.6%
Withdrawals		(1,296)		(1,472)		(1,559)		(1,543)		(2,762)	NM		(3,653)		(4,305)	-17.8%
Net flows		384		293		441		627		(1,272)	NM		65		(645)	NM
Transfers between fixed and variable accounts		(141)		(190)		(171)		(610)		(161)	-14.2%		(352)		(771)	NM
Contract holder assessments		(52)		(54)		(55)		(54)		(49)	5.8%		(103)		(103)	0.0%
Change in market value and reinvestment		1,862		240		3,689		(9,793)		8,067	NM		7,039		(1,726)	NM
Balance as of end-of-period	$	53,938	$	54,227	$	58,131	$	48,301	$	54,886	1.8%	$	53,938	$	54,886	1.8%

Total
Balance as of beginning-of-period	$	71,799	$	74,014	$	74,564	$	78,689	$	69,636	-3.0%	$	67,055	$	78,689	17.3%
Gross deposits		2,073		2,234		2,663		2,779		2,307	11.3%		4,568		5,086	11.3%
Withdrawals		(1,766)		(1,962)		(2,241)		(2,108)		(3,514)	-99.0%		(4,642)		(5,622)	-21.1%
Net flows		307		272		422		671		(1,207)	NM		(74)		(536)	NM
Transfers between fixed and variable accounts		(44)		(54)		(77)		(23)		(37)	15.9%		(184)		(60)	67.4%
Contract holder assessments		(55)		(57)		(58)		(57)		(52)	5.5%		(109)		(109)	0.0%
Change in market value and reinvestment		2,007		389		3,838		(9,644)		8,218	NM		7,326		(1,426)	NM
Balance as of end-of-period	$	74,014	$	74,564	$	78,689	$	69,636	$	76,558	3.4%	$	74,014	$	76,558	3.4%







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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
General Account
Balance as of beginning-of-period	$	37,275	$	37,438	$	37,582	$	38,141	$	38,054	2.1%	$	37,289	$	38,141	2.3%
Deposits		1,117		1,137		1,525		996		964	-13.7%		2,144		1,960	-8.6%
Withdrawals and deaths		(195)		(243)		(156)		(380)		(263)	-34.9%		(527)		(643)	-22.0%
Net flows		922		894		1,369		616		701	-24.0%		1,617		1,317	-18.6%
Contract holder assessments		(1,107)		(1,094)		(1,184)		(1,075)		(1,073)	3.1%		(2,148)		(2,148)	0.0%
Reinvested interest credited		348		344		374		372		352	1.1%		680		724	6.5%
Balance as of end-of-period, gross		37,438		37,582		38,141		38,054		38,034	1.6%		37,438		38,034	1.6%
Reinsurance ceded		(666)		(660)		(656)		(649)		(646)	3.0%		(666)		(646)	3.0%
Balance as of end-of-period, net	$	36,772	$	36,922	$	37,485	$	37,405	$	37,388	1.7%	$	36,772	$	37,388	1.7%

Separate Account
Balance as of beginning-of-period	$	15,346	$	15,941	$	16,136	$	17,646	$	14,782	-3.7%	$	13,735	$	17,646	28.5%
Deposits		566		548		888		454		464	-18.0%		1,077		918	-14.8%
Withdrawals and deaths		(271)		(215)		(300)		(107)		(142)	47.6%		(457)		(249)	45.5%
Net flows		295		333		588		347		322	9.2%		620		669	7.9%
Contract holder assessments		(195)		(197)		(230)		(204)		(211)	-8.2%		(388)		(415)	-7.0%
Change in market value and reinvestment		495		59		1,152		(3,007)		2,458	NM		1,974		(549)	NM
Balance as of end-of-period, gross		15,941		16,136		17,646		14,782		17,351	8.8%		15,941		17,351	8.8%
Reinsurance ceded		(844)		(829)		(876)		(712)		(830)	1.7%		(844)		(830)	1.7%
Balance as of end-of-period, net	$	15,097	$	15,307	$	16,770	$	14,070	$	16,521	9.4%	$	15,097	$	16,521	9.4%

Total
Balance as of beginning-of-period	$	52,621	$	53,379	$	53,718	$	55,787	$	52,836	0.4%	$	51,024	$	55,787	9.3%
Deposits		1,683		1,685		2,413		1,450		1,428	-15.2%		3,221		2,878	-10.6%
Withdrawals and deaths		(466)		(458)		(456)		(487)		(405)	13.1%		(984)		(892)	9.3%
Net flows		1,217		1,227		1,957		963		1,023	-15.9%		2,237		1,986	-11.2%
Contract holder assessments		(1,302)		(1,291)		(1,414)		(1,279)		(1,284)	1.4%		(2,536)		(2,563)	-1.1%
Change in market value and reinvestment		843		403		1,526		(2,635)		2,810	233.3%		2,654		175	-93.4%
Balance as of end-of-period, gross		53,379		53,718		55,787		52,836		55,385	3.8%		53,379		55,385	3.8%
Reinsurance ceded		(1,510)		(1,489)		(1,532)		(1,361)		(1,476)	2.3%		(1,510)		(1,476)	2.3%
Balance as of end-of-period, net	$	51,869	$	52,229	$	54,255	$	51,475	$	53,909	3.9%	$	51,869	$	53,909	3.9%




Page 21


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

	As of 6/30/19				As of 12/31/19				As of 6/30/20
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS, Trading and Equity Securities, at Fair Value
Fixed maturity AFS securities, net of ACL:
Corporate bonds	$	84,790		81.2%	$	88,716		80.7%	$	95,390		80.7%
U.S. government bonds		430		0.4%		435		0.4%		504		0.4%
State and municipal bonds		5,669		5.4%		5,884		5.4%		6,393		5.4%
Foreign government bonds		440		0.4%		393		0.4%		436		0.4%
Residential mortgage-backed securities		3,292		3.2%		3,241		2.9%		3,272		2.8%
Commercial mortgage-backed securities		965		0.9%		1,083		1.0%		1,226		1.0%
Asset-backed securities		3,542		3.4%		4,889		4.4%		5,716		4.8%
Hybrid and redeemable preferred securities		605		0.6%		559		0.5%		582		0.5%
Total fixed maturity AFS securities, net of ACL		99,733		95.5%		105,200		95.7%		113,519		96.0%
Trading securities		4,522		4.3%		4,673		4.2%		4,651		3.9%
Equity securities		196		0.2%		103		0.1%		87		0.1%
Total fixed maturity AFS securities, net of ACL, and trading and equity securities	$	104,451		100.0%	$	109,976		100.0%	$	118,257		100.0%

Fixed Maturity AFS, Trading and Equity Securities, at Amortized Cost
Fixed maturity AFS securities	$	91,190		95.4%	$	94,295		95.8%	$	98,817		95.9%
Trading securities		4,227		4.4%		4,005		4.1%		4,096		4.0%
Equity securities		205		0.2%		123		0.1%		112		0.1%
Total fixed maturity AFS, trading and equity securities	$	95,622		100.0%	$	98,423		100.0%	$	103,025		100.0%

Percentage of Fixed Maturity AFS Securities, at Amortized Cost
Investment grade				96.1%				96.3%				95.8%
Below investment grade				3.9%				3.7%				4.2%











Page 22


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
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	44	$	50	$	52	$	51	$	47	6.8%	$	82	$	99	20.7%
Total excluded realized gain (loss)		(161)		(61)		(171)		(75)		(694)	NM		(562)		(770)	-37.0%
Total realized gain (loss), pre-tax	$	(117)	$	(11)	$	(119)	$	(24)	$	(647)	NM	$	(480)	$	(671)	-39.8%

Reconciliation of Excluded Realized Gain (Loss)
Net of Benefit Ratio Unlocking, After-Tax
Total excluded realized gain (loss)	$	(128)	$	(49)	$	(135)	$	(60)	$	(548)	NM	$	(443)	$	(609)	-37.5%
Benefit ratio unlocking		46		(2)		91		(349)		282	NM		188		(67)	NM
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(82)	$	(51)	$	(44)	$	(409)	$	(266)	NM	$	(255)	$	(676)	NM

Components of Excluded Realized Gain (Loss) Net
of Benefit Ratio Unlocking, After-Tax
Credit loss expense on mortgage loans on real estate	$	-	$	-	$	-	$	(51)	$	(79)	NM	$	-	$	(130)	NM
Credit loss expense on other financial assets		-		-		-		(16)		(1)	NM		-		(17)	NM
OTTI		(3)		(2)		(1)		-		-	100.0%		(9)		-	100.0%
Realized gain (loss) related to certain financial assets		(7)		(12)		(8)		14		(36)	NM		(21)		(22)	-4.8%
Realized gain (loss) on equity securities		1		(14)		3		(15)		2	100.0%		6		(12)	NM
Realized gain (loss) on the mark-to-market on certain
instruments		(28)		19		9		38		(1)	96.4%		(122)		36	129.5%
Realized gain (loss) related to financial assets, after-tax		(37)		(9)		3		(30)		(115)	NM		(146)		(145)	0.7%
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged		(19)		(65)		2		(496)		(71)	NM		(33)		(568)	NM
GLB non-performance risk component		(2)		43		(55)		147		(79)	NM		(30)		69	NM
Total variable annuity net derivative results		(21)		(22)		(53)		(349)		(150)	NM		(63)		(499)	NM
Indexed annuity forward-starting option		(24)		(20)		6		(30)		(1)	95.8%		(46)		(32)	30.4%
Excluded realized gain (loss) net of
benefit ratio unlocking, after-tax	$	(82)	$	(51)	$	(44)	$	(409)	$	(266)	NM	$	(255)	$	(676)	NM






Page 23

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

	For the Three Months Ended											For the Six Months Ended
	6/30/19		9/30/19		12/31/19		3/31/20		6/30/20		Change	6/30/19		6/30/20		Change
Revenues
Total revenues	$	4,310	$	4,638	$	4,344	$	4,425	$	3,517	-18.4%	$	8,275	$	7,942	-4.0%
Less:
Excluded realized gain (loss)		(161)		(61)		(171)		(75)		(694)	NM		(562)		(770)	-37.0%
Amortization of DFEL associated with
benefit ratio unlocking		1		(1)		2		(9)		2	100.0%		4		(7)	NM
Adjusted operating revenues	$	4,470	$	4,700	$	4,513	$	4,509	$	4,209	-5.8%	$	8,833	$	8,719	-1.3%

Net Income
Net income (loss)	$	363	$	(161)	$	431	$	52	$	(94)	NM	$	616	$	(42)	NM
Less:
Excluded realized gain (loss), after-tax		(128)		(49)		(135)		(60)		(548)	NM		(443)		(609)	-37.5%
Benefit ratio unlocking, after-tax		46		(2)		91		(349)		282	NM		188		(67)	NM
Net impact from the Tax Cuts and Jobs Act		-		-		17		-		-	NM		-		-	NM
Acquisition and integration costs related to
mergers and acquisitions, after-tax		(33)		(31)		(24)		(4)		(3)	90.9%		(48)		(6)	87.5%
Gain (loss) on early extinguishment of debt, after-tax		-		(33)		-		-		(12)	NM		-		(12)	NM
Total adjustments		(115)		(115)		(51)		(413)		(281)	NM		(303)		(694)	NM
Adjusted income (loss) from operations	$	478	$	(46)	$	482	$	465	$	187	-60.9%	$	919	$	652	-29.1%

Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.79	$	(0.83)	$	2.15	$	0.15	$	(0.49)	NM	$	3.01	$	(0.27)	NM
Less:
Excluded realized gain (loss), after-tax		(0.63)		(0.24)		(0.68)		(0.30)		(2.85)	NM		(2.17)		(3.13)	-44.2%
Benefit ratio unlocking, after-tax		0.22		(0.01)		0.46		(1.77)		1.46	NM		0.92		(0.35)	NM
Net impact from the Tax Cuts and Jobs Act		-		-		0.08		-		-	NM		-		-	NM
Acquisition and integration costs related to mergers
and acquisitions, after-tax		(0.16)		(0.16)		(0.12)		(0.02)		(0.01)	93.8%		(0.24)		(0.04)	83.3%
Gain (loss) on early extinguishment of debt, after-tax		-		(0.17)		-		-		(0.06)	NM		-		(0.06)	NM
Adjustment attributable to using different average
diluted shares for adjusted income from operations
as compared to net loss		-		-		-		-		-	NM		-		0.04	NM
Adjusted income (loss) from operations	$	2.36	$	(0.25)	$	2.41	$	2.24	$	0.97	-58.9%	$	4.50	$	3.27	-27.3%


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