Lincoln National 8K Strength in Business Model and Account Values Drive Earnings Increase | LNC 8 Feb 10

Lincoln Financial Group
Table of Contents
Fourth Quarter 2009

Lincoln Financial Group Analyst Coverage								i
Notes								ii-iii

Financial Highlights								1 - 3
Consolidated Operating Expense Detail								4
Selected Financial Results Summary								5
Details Underlying Realized Loss, After-DAC								6
Consolidated Statements of Income								7
Consolidated Roll Forwards of DAC, VOBA, DFEL and DSI								8
Consolidating Statements of Income from Operations - Current Year - Quarter								9
Consolidating Statements of Income from Operations - Prior Year - Quarter								10
Consolidating Statements of Income from Operations - Current Year - Year-to-Date								11
Consolidating Statements of Income from Operations - Prior Year - Year-to-Date								12
Consolidated Balance Sheets and Selected Share Data								13
Balance Sheet Data - Segment Highlights								14

Retirement Solutions
Annuities:
Income Statements and Operational Data								15
DAC, VOBA, DFEL and DSI Roll Forwards								16
Account Value Roll Forwards and Information								17
Account Value Information								18
Interest Rate Spread Information, GLB Expense Assessments, GLB Attributed Fee
and GLB Account Values by Type								19
Defined Contribution:
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards								20
Account Value Roll Forwards and Information								21
Account Value Roll Forwards by Product								22
Account Value and Interest Rate Spread Information								23

Insurance Solutions
Life Insurance:
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards								24
Operational Data and Account Value Roll Forwards								25
Group Protection:
Income Statements and Operational Data								26

Other Operations								27

Discontinued Operations								27

Consolidated Deposits, Account Balances and Net Flows								28

Consolidated Investment Data								29

12/31/2009			i

Lincoln Financial Group Analyst Coverage
Fourth Quarter 2009

Firm	Analyst	Phone Number
Bank of America - Merrill Lynch	Ed Spehar	212-449-4245
Barclays Capital	Eric Berg	212-526-2805
Bernstein	Suneet Kamath	212-756-4587
Citigroup	Colin Devine	212-816-1682
Credit Suisse	Tom Gallagher	212-538-2010
Deutsche Bank	Darin Arita	212-250-7321
Dowling and Partners	Sean Rourke	860-676-8600
FBR Capital Markets	Randy Binner	703-312-1890
Goldman Sachs and Company	Christopher Neczypor	212-357-8512
JP Morgan	Jimmy Bhullar	212-622-6397
Keefe, Bruyette and Woods	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Macquarie Securities	Mark Finkelstein	312-425-4079
Morgan Stanley	Nigel Dally	212-761-4132
Raymond James and Associates	Steven Schwartz	312-612-7686
Sandler O'Neil and Partners	Edward Shields	312-281-3487
Sterne, Agee and Leach	John Nadel	212-338-4717
UBS	Andrew Kligerman	212-713-2492
Wells Fargo Securities	John Hall	212-214-8032


Investor Inquiries May Be Directed To
Jim Sjoreen, Vice President, Investor Relations
Email: Jim.Sjoreen@lfg.com
Voice: (484) 583-1420
Fax: (484) 583-3962

Notes
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.

Lincoln Financial Group's Statistical Report will be available immediately after the release of
earnings for each quarter through our Investor Relations website: www.LincolnFinancial.com/investor

12/31/2009

NOTES

Definitions and Presentation

"Income (loss) from operations," "operating revenues" and "return on capital" are non-GAAP financial measures and do not replace GAAP

revenues, net income (loss) and return on stockholders' equity. Detailed reconciliations of these non-GAAP financial measures to the most directly

comparable GAAP financial measure are included in this statistical supplement.

•

We exclude the after-tax effects of the following items from GAAP net income (loss) to arrive at income (loss) from operations:

•

Realized gains and losses associated with the following ("excluded realized gain (loss)"):

•

Sale or disposal of securities;

•

Impairments of securities;

•

Change in the fair value of embedded derivatives within certain reinsurance arrangements and the change in the fair value of our trading

securities;

•

Change in the fair value of the derivatives we own to hedge our guaranteed death benefit ("GDB") riders within our variable annuities, which

is referred to as "GDB derivatives results";

•

Change in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders within our variable annuities accounted

for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative

reserves”), net of the change in the fair value of the derivatives we own to hedge the changes in the embedded derivative reserves, the net of

which is referred to as “GLB net derivative results”; and

•

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 under the Derivatives and Hedging

and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“indexed annuity forward-starting option”).

•

Change in reserves accounted for under the Financial Services - Insurance - Claim Costs and Liabilities for Future Policy Benefits Subtopic of

the FASB ASC resulting from benefit ratio unlocking on our GDB and GLB riders ("benefit ratio unlocking");

•

Income (loss) from the initial adoption of new accounting standards;

•

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

•

Gain (loss) on early extinguishment of debt;

•

Losses from the impairment of intangible assets; and

•

Income (loss) from discontinued operations.

•

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

•

Excluded realized gain (loss);

•

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

•

Amortization of deferred gains arising from the reserve changes on business sold through reinsurance; and

•

Revenue adjustments from the initial adoption of new accounting standards.

•

Return on capital measures the effectiveness of our use of total capital, which includes equity (excluding accumulated other

comprehensive income), debt, capital securities and junior subordinated debentures issued to affiliated trusts. Return on capital is

calculated by dividing annualized income (loss) from operations (after adding back interest expense) by average capital. The difference

between return on capital and return on stockholders' equity represents the effect of leveraging on our consolidated results.

Income (loss) from operations, operating revenues and return on capital are financial measures we use to evaluate and assess our results. Our

management and Board of Directors believe that these performance measures explain the results of our ongoing businesses in a manner that

allows for a better understanding of the underlying trends in our current business because the excluded items are unpredictable and not

necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions

regarding these items do not necessarily relate to the operations of the individual segments.

•

Certain operating and statistical measures are included in this report to provide supplemental data regarding the performance of our

current business. These measures include deposits, sales, net flows, first-year premiums, in force and spreads.

•

Sales as reported consist of the following:

•

Universal life ("UL") (excluding linked-benefit products) and variable universal life ("VUL"), including corporate-owned life

insurance ("COLI") and bank-owned life insurance ("BOLI") - first year commissionable premiums plus 5% of excess premiums

received, including an adjustment for internal replacements at approximately 50% of target;

•

Whole life and term - 100% of first year paid premiums;

•

Linked-benefit - 15% of premium deposits;

•

Annuities - deposits from new and existing customers;

•

Group Protection - annualized first year premiums from new policies; and

Our roll forwards of deferred acquisition costs ("DAC") and value of business acquired ("VOBA"), deferred sales inducements ("DSI") and deferred

front-end loads ("DFEL") disclose the net impact of prospective and retrospective unlocking on amortization for these accounts. This information

helps explain a source of volatility in amortization.

•

Prospective unlocking - In the third quarter of each year, we review and update our assumptions used in projecting our future estimated

gross profits ("EGPs") used to amortize DAC, VOBA, DFEL, DSI and the calculations of embedded derivatives and reserves for

annuity and life insurance products with certain guarantees. We may also have prospective unlocking if we experience long-term

or significant deviations from expected equity market returns requiring a change to best estimate projections of EGPs and reversion

to the mean ("RTM") prospective unlocking of DAC, VOBA, DFEL, DSI and other contract holder funds. These updates to assumptions

result in unlocking that represent an increase or decrease to our carrying value of DAC, VOBA, DFEL, DSI and other contract holder

funds based upon our updated view of future EGPs. The various assumptions that are reviewed include investment margins, mortality,

retention and rider utilization. In addition, in the third quarter of each year during our annual prospective unlocking review, we may

identify and implement actuarial modeling refinements which can result in prospective and retrospective unlocking impacts that impact

DAC, VOBA, DSI, DFEL and embedded derivatives and reserves for annuity and life products with living and death benefit guarantee reserves.

iii

•

Retrospective unlocking - On a quarterly basis, we “true-up” our models for actual gross profits and in-force experience for the period.

To the extent that actual experience differs from previously expected, a positive or negative retrospective adjustment to the

amortization of DAC, VOBA, DSI and DFEL is recorded. This update to the models may generate a change in the amortization rate

which results in a catch-up to the cumulative amortization, by recalculating the DAC, VOBA, DSI and DFEL balances assuming that

the revised amortization rate had been used since issue.

Book value per share excluding accumulated other comprehensive income ("AOCI") is calculated based upon a non-GAAP financial measure. It is

calculated by dividing (a) stockholders' equity excluding AOCI and Series B preferred stock balances as it is non-convertible (issued and sold to the

U.S. Treasury in connection with the Troubled Asset Relief Program Capital Purchase Program as part of the Emergency Economic Stabilization Act

of 2008), by (b) common shares outstanding, assuming conversion of Series A preferred shares. 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. We believe 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 operating margin is calculated as income (loss) from operations before federal income taxes divided by operating revenues. After-tax operating

margin is calculated as income (loss) from operations divided by operating revenues.

We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently

in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.

Inter-segment transfer refers to a transfer from Retirement Solutions - Annuities to Retirement Solutions - Defined Contribution.

Throughout the document, "after-DAC" refers to the associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract

holder funds and funds withheld reinsurance liabilities.

Reclassifications

In addition to the items discussed above, certain amounts reported in prior periods have been reclassed to the presentation adopted in the current period.

These reclassifications had no effect on net income, income from operations or stockholders' equity in the prior period.

12/31/2009																								PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)

	For the Three Months Ended December 31,												For the Years Ended December 31,
							Change												Change
	2009			2008			Amount			%			2009			2008			Amount			%
Income from Operations - By Segment
Annuities	$	119.7		$	(171.7	)	$	291.4			169.7	%	$	353.5		$	193.2		$	160.3			83.0	%
Defined Contribution		33.3			(1.1	)		34.4		NM				133.4			122.8			10.6			8.6	%
Total Retirement Solutions		153.0			(172.8	)		325.8			188.5	%		486.9			316.0			170.9			54.1	%
Life Insurance		157.6			82.5			75.1			91.0	%		569.2			540.8			28.4			5.3	%
Group Protection		30.1			18.4			11.7			63.6	%		123.9			104.1			19.8			19.0	%
Total Insurance Solutions		187.7			100.9			86.8			86.0	%		693.1			644.9			48.2			7.5	%
Other Operations		(43.5	)		(55.2	)		11.7			21.2	%		(236.9	)		(182.5	)		(54.4	)		-29.8	%
Income from Operations (Loss) (1)		297.2			(127.1	)		424.3		NM				943.1			778.4			164.7			21.2	%
Excluded realized loss, after-tax (2) (3)		(98.3	)		(130.1	)		31.8			24.4	%		(779.8	)		(372.2	)		(407.6	)	NM
Benefit ratio unlocking, after-tax (3)		7.6			(88.6	)		96.2			108.6	%		88.8			(120.4	)		209.2			173.8	%
Income from reserve changes (net of related amortization)on business sold through reinsurance, after-tax (3)		0.5			0.4			0.1			25	%		1.7			1.7			-			0.0	%
Gain on early extinguishment of debt, after-tax (3)		-			-			-		NM				41.8			-			41.8		NM
Impairment of intangibles, after-tax (3)		(108.8	)		(157.7	)		48.9			31.0	%		(710.3	)		(296.9	)		(413.4	)	NM
Income (loss) from discontinued operations, after-tax (4)		4.1			(2.4	)		6.5			270.8	%		(70.0	)		66.2			(136.2	)	NM
Net Income (Loss)		102.3			(505.5	)		607.8			120.2	%		(484.7	)		56.8			(541.5	)	NM
Preferred stock dividends and accretion of discount		(18.2	)		-			(18.2	)	NM				(34.5	)		-			(34.5	)	NM
Minority interest adjustment (5)		-			-			-		NM				(0.1	)		(0.6	)		0.5			83.3	%
Net Income (Loss) Available to CommonStockholders	$	84.1		$	(505.5	)	$	589.6			116.6	%	$	(519.3	)	$	56.2		$	(575.5	)	NM


Earnings Per Common Share - Diluted
Income (loss) from operations (1) (6)	$	0.90		$	(0.50	)	$	1.40			280.0	%	$	3.18		$	3.00		$	0.18			6.0	%
Excluded realized loss, after-tax (2) (3) (6)		(0.31	)		(0.50	)		0.19			38.0	%		(2.78	)		(1.45	)		(1.33	)		-91.7	%
Benefit ratio unlocking, after-tax (3) (6)		0.02			(0.35	)		0.37			105.7	%		0.32			(0.47	)		0.79			168.1	%
Income from reserve changes (net of related amortization)on business sold through reinsurance, after-tax (3) (6)		-			-			-		NM				0.01			0.01			-			-
Gain on early extinguishment of debt, after-tax (3) (6)		-			-			-		NM				0.15			-			0.15		NM
Impairment of intangibles, after-tax (3) (6)		(0.35	)		(0.62	)		0.27			43.5	%		(2.54	)		(1.15	)		(1.39	)	NM
Income (loss) from discontinued operations, after-tax (4) (6)		0.01			(0.01	)		0.02			200.0	%		(0.25	)		0.26			(0.51	)	NM
Adjustment attributable to using different average dilutedshares for income from operations as compared to net income (6)		-			-			-		NM				0.06			0.02			0.04			200.0	%
Net Income (Loss)	$	0.27		$	(1.98	)	$	2.25			113.6	%	$	(1.85	)	$	0.22		$	(2.07	)	NM


Operating Revenues - By Segment
Annuities	$	628.9		$	567.3		$	61.6			10.9	%	$	2,301.3		$	2,438.3		$	(137.0	)		-5.6	%
Defined Contribution		243.7			214.5			29.2			13.6	%		926.3			932.3			(6.0	)		-0.6	%
Total Retirement Solutions		872.6			781.8			90.8			11.6	%		3,227.6			3,370.6			(143.0	)		-4.2	%
Life Insurance		1,125.9			1,042.8			83.1			8.0	%		4,293.4			4,259.2			34.2			0.8	%
Group Protection		433.6			412.5			21.1			5.1	%		1,712.5			1,639.6			72.9			4.4	%
Total Insurance Solutions		1,559.5			1,455.3			104.2			7.2	%		6,005.9			5,898.8			107.1			1.8	%
Other Operations		126.4			121.6			4.8			3.9	%		466.8			534.1			(67.3	)		-12.6	%
Total Operating Revenues		2,558.5			2,358.7			199.8			8.5	%		9,700.3			9,803.5			(103.2	)		-1.1	%
Excluded realized loss, pre-tax (2)		(156.6	)		(199.8	)		43.2			21.6	%		(1,199.9	)		(573.1	)		(626.8	)	NM
Amortization income of DFEL associated with benefit ratio unlocking, pre-tax		-			(7.2	)		7.2			100.0	%		(4.2	)		(9.3	)		5.1			54.8	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.5			0.7			(0.2	)		-28.6	%		2.6			2.7			(0.1	)		-3.7	%
Total Revenues	$	2,402.4		$	2,152.4		$	250.0			11.6	%	$	8,498.8		$	9,223.8		$	(725.0	)		-7.9	%


(1)	Income from operations includes restructuring charges. See page 5 for detail.
(2)	See page 6 for detail.
(3)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
	financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(4)	Includes discontinued operations and the loss on disposal. See Discontinued Operations on page 27 for details.
(5)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(6)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have
	been anti-dilutive. This same concept applies to our income (loss) from operations as well.

12/31/2009								PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)

	For the Three Months Ended December 31,				For the Years Ended December 31,
			Change				Change
	2009	2008	Amount	%	2009	2008	Amount	%
Retirement Solutions - Annuities
Gross deposits	$ 2.461	$ 2.320	$ 0.141	6.1%	$ 10.362	$ 11.730	$ (1.368)	-11.7%
Net flows	0.818	0.376	0.442	117.6%	3.893	4.088	(0.195)	-4.8%
Account values (gross)	75.308	58.580	16.728	28.6%	75.308	58.580	16.728	28.6%
Account values (net of reinsurance)	74.281	57.455	16.826	29.3%	74.281	57.455	16.826	29.3%

Retirement Solutions - Defined Contribution
Gross deposits (1)	1.158	1.241	(0.083)	-6.7%	4.952	5.547	(0.595)	-10.7%
Net flows	(0.062)	0.171	(0.233)	NM	0.995	0.781	0.214	27.4%
Account values - annuities	25.199	22.226	2.973	13.4%	25.199	22.226	2.973	13.4%
Alliance and Smart Future mutual funds	10.103	6.652	3.451	51.9%	10.103	6.652	3.451	51.9%
Total annuities and mutual fund account values	35.302	28.878	6.424	22.2%	35.302	28.878	6.424	22.2%

Insurance Solutions - Life Insurance
Sales (in millions)	$ 194.8	$ 211.4	$ (16.6)	-7.9%	$ 609.9	$ 741.0	$ (131.1)	-17.7%
Life insurance in force	540.605	545.221	(4.616)	-0.8%	540.605	545.221	(4.616)	-0.8%
Account values (net of reinsurance)	31.742	31.753	(0.011)	-	31.742	31.753	(0.011)	-

Insurance Solutions - Group Protection
Annualized sales (in millions)	166.8	129.0	37.8	29.3%	360.4	316.1	44.3	14.0%
Loss ratio (2)	69.3%	72.8%	NM	NM	69.1%	71.4%	NM	NM

Consolidated
Total deposits	$ 4.919	$ 4.778	$ 0.141	3.0%	$ 19.765	$ 21.770	$ (2.005)	-9.2%
Total account balances	141.325	118.086	23.239	19.7%	141.325	118.086	23.239	19.7%
Total net flows	1.517	1.351	0.166	12.3%	7.307	7.691	(0.384)	-5.0%


(1)		Includes deposits for mutual funds. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets, as we do
		not have any ownership interest in them.
(2)		Represents combined loss ratio for life, disability and dental businesses.

12/31/2009																						PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)

	For the Three Months Ended December 31,												For the Years Ended December 31,
							Change												Change
	2009			2008			Amount			%			2009			2008			Amount			%

Balance Sheet Assets - End-of-Period	$	177,433.3		$	163,135.8		$	14,297.5			8.8	%	$	177,433.3		$	163,135.8		$	14,297.5			8.8	%

Stockholders' Equity
Beginning-of-period (including AOCI)	$	11,655.5		$	9,500.1		$	2,155.4			22.7	%	$	7,976.8		$	11,718.4		$	(3,741.6	)		-31.9	%
End-of-period (including AOCI)		11,700.2			7,976.8			3,723.4			46.7	%		11,700.2			7,976.8			3,723.4			46.7	%
End-of-period (excluding AOCI)		11,961.6			10,780.3			1,181.3			11.0	%		11,961.6			10,780.3			1,181.3			11.0	%
Average equity (excluding AOCI)		11,918.8			11,045.3			873.5			7.9	%		11,082.0			11,290.3			(208.3	)		-1.8	%

Return on Equity
Net income (loss)/average equity (excluding AOCI)		3.4	%		-18.3	%								-4.4	%		0.5	%
Income (loss) from operations/average equity (excluding AOCI)		10.0	%		-4.6	%								8.5	%		6.9	%

Return on Capital
Income (loss) from operations/average capital		7.9	%		-2.0	%								6.7	%		5.8	%

Common Shares Outstanding
Average for the period - basic		301.9			255.4			46.5			18.2	%		280.0			257.5			22.5			8.7	%
Average for the period - diluted		311.6			257.6			54.0			21.0	%		285.6			259.4			26.2			10.1	%
End-of-period - assuming conversion of preferreds (1)		302.4			256.1			46.3			18.1	%		302.4			256.1			46.3			18.1	%
End-of-period - diluted		311.8			257.7			54.1			21.0	%		311.8			257.7			54.1			21.0	%

Book value per common share (including AOCI) (2)	$	36.02		$	31.15		$	4.87			15.6	%	$	36.02		$	31.15		$	4.87			15.6	%
Book value per common share(excluding AOCI) (2)		36.89			42.09			(5.20	)		-12.4	%		36.89			42.09			(5.20	)		-12.4	%

Cash Returned to Common Stockholders
Share repurchase - dollar amount	$	-		$	-		$	-		NM			$	-		$	475.5		$	(475.5	)		-100.0	%
Common dividends declared		3.0			53.7			(50.7	)		-94.4	%		11.6			373.7			(362.1	)		-96.9	%
Total Cash Returned to Common Stockholders	$	3.0		$	53.7		$	(50.7	)		-94.4	%	$	11.6		$	849.2		$	(837.6	)		-98.6	%

Stock issuance - number of shares		-			-			-		NM				46.00			-			46.00		NM
Share repurchase - number of shares		-			-			-		NM				-			9.09			(9.09	)		-100.0	%
Dividend declared on common stock - per share	$	0.010		$	0.210		$	(0.200	)		-95.2	%	$	0.040		$	1.455		$	(1.415	)		-97.3	%
Dividend payout ratio		3.7	%		-10.6	%								-2.2	%		661.4	%
Annualized yield (3)		0.2	%		4.5	%								0.2	%		7.7	%

Comprehensive Income (Loss)
Net income (loss)	$	102.3		$	(505.5	)	$	607.8			120.2	%	$	(484.7	)	$	56.8		$	(541.5	)	NM
Net unrealized gain (loss) on available-for-sale securities		(77.5	)		(750.8	)		673.3			89.7	%		2,703.9			(2,740.5	)		5,444.4			198.7	%
Unrealized other-than-temporary impairment on available-for-sale securities		6.7			-			6.7		NM				(115.1	)		-			(115.1	)	NM
Net unrealized gain (loss) on derivative instruments		0.7			73.6			(72.9	)		-99.0	%		(115.7	)		74.9			(190.6	)	NM
Foreign currency translation adjustment		(65.3	)		(114.9	)		49.6			43.2	%		(3.3	)		(169.3	)		166.0			98.1	%
Funded status of employee benefit plans		94.4			(201.1	)		295.5			146.9	%		72.2			(193.8	)		266.0			137.3	%
Comprehensive Income (Loss)	$	61.3		$	(1,498.7	)	$	1,560.0			104.1	%	$	2,057.3		$	(2,971.9	)	$	5,029.2			169.2	%


Leverage Ratio (4)		27.1	%		25.0	%								27.1	%		25.0	%


	Ratings as of February 8, 2010
										Standard &
	A.M. Best			Fitch			Moody's			Poor's

Senior Debt Ratings		a-		BBB			Baa2				A-

Financial Strength Ratings
Lincoln National Life Insurance Company		A	+		A	+		A2		AA-
First Penn-Pacific Life Insurance Company		A	+		A	+		A2			A+
Lincoln Life & Annuity Company of New York		A	+		A	+		A2		AA-

(1)

The holders of our Series B preferred stock have no right to exchange or convert such shares into any other securities, therefore these shares have not been converted

in this calculation.

(2)

These computations exclude Series B preferred stock balances as it is non-convertible.

(3)

Indicated dividend divided by the closing price.

(4)

The numerator in this calculation is arrived at by adding our total debt, excluding 75% of our capital securities and all of our $375 million senior note issued in

October 2007 because the proceeds were reinvested in a pool of long-term assets, plus our Series B preferred stock liquidation value of $950 million. The

denominator in this calculation is arrived at by adding our stockholders' equity, excluding AOCI, plus 75% of our capital securities as well as the total amount of

the numerator.

12/31/2009																									PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change

Commissions	$	404.1		$	360.0		$	358.2		$	403.9		$	421.2			4.2	%	$	1,681.5		$	1,543.3			-8.2	%

General and Administrative Expenses
General and administrative expenses		350.6			306.3			311.4			317.3			351.7			0.3	%		1,273.1			1,286.7			1.1	%
Merger-related expenses		8.1			6.7			4.4			2.5			2.8			-65.4	%		49.4			16.4			-66.8	%
Total General and Administrative Expenses, Excluding Broker-Dealer		358.7			313.0			315.8			319.8			354.5			-1.2	%		1,322.5			1,303.1			-1.5	%

Communications expenses		14.8			12.9			13.5			13.2			12.9			-12.8	%		59.8			52.5			-12.2	%
Restructuring charges associated with merger-related cost saving initiatives		0.1			-			-			0.1			-			-100.0	%		2.5			0.1			-96.0	%
Restructuring charges for expense initiatives		8.0			5.1			28.6			0.5			0.3			-96.3	%		8.0			34.5		NM
Taxes, licenses and fees		45.7			54.6			43.0			48.2			24.3			-46.8	%		209.2			170.1			-18.7	%
Interest and debt expense		72.3			64.7			60.9			68.0			68.1			-5.8	%		281.1			261.7			-6.9	%
Total Commissions and Expenses Incurred		903.7			810.3			820.0			853.7			881.3			-2.5	%		3,564.6			3,365.3			-5.6	%

Less: Commissions and Expenses Capitalized		(470.4	)		(383.5	)		(385.4	)		(422.5	)		(460.0	)		2.2	%		(1,853.9	)		(1,651.4	)		10.9	%

Total Expenses Incurred, Excluding Amortization and Broker-Dealer Expenses		433.3			426.8			434.6			431.2			421.3			-2.8	%		1,710.7			1,713.9			0.2	%

Amortization
Amortization of DAC and VOBA, net of interest		685.4			237.7			231.7			311.4			260.9			-61.9	%		1,450.8			1,041.7			-28.2	%
Amortization of intangibles		1.0			1.1			1.0			1.1			1.0			0.0	%		4.2			4.2			0.0	%
Total Amortization		686.4			238.8			232.7			312.5			261.9			-61.8	%		1,455.0			1,045.9			-28.1	%

Broker-Dealer Commissions and Other Expenses		73.3			64.1			69.2			73.6			81.1			10.6	%		326.1			288.0			-11.7	%

Total	$	1,193.0		$	729.7		$	736.5		$	817.3		$	764.3			-35.9	%	$	3,491.8		$	3,047.8			-12.7	%

Merger-Related Expenses (1)
Severance and employee-related charges	$	1.7		$	0.7		$	0.6		$	0.3		$	0.5			-70.6	%	$	8.5		$	2.1			-75.3	%
Systems integration and related expenses		7.5			5.1			2.6			1.5			1.4			-81.3	%		38.4			10.6			-72.4	%
Other expenses		(1.0	)		0.9			1.2			0.8			0.9			190.0	%		5.1			3.8			-25.5	%
Total Merger-Related Expenses	$	8.2		$	6.7		$	4.4		$	2.6		$	2.8			-65.9	%	$	52.0		$	16.5			-68.3	%

(1)

Represents merger-related expenses included in general and administrative expenses and restructuring charges.

12/31/2009																									PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Operating Revenues
Annuities	$	567.3		$	521.7		$	552.5		$	598.2		$	628.9			10.9	%	$	2,438.3		$	2,301.3			-5.6	%
Defined Contribution		214.5			218.5			223.5			240.6			243.7			13.6	%		932.3			926.3			-0.6	%
Total Retirement Solutions		781.8			740.2			776.0			838.8			872.6			11.6	%		3,370.6			3,227.6			-4.2	%
Life Insurance		1,042.8			1,076.2			1,002.2			1,089.1			1,125.9			8.0	%		4,259.2			4,293.4			0.8	%
Group Protection		412.5			421.4			442.9			414.6			433.6			5.1	%		1,639.6			1,712.5			4.4	%
Total Insurance Solutions		1,455.3			1,497.6			1,445.1			1,503.7			1,559.5			7.2	%		5,898.8			6,005.9			1.8	%
Other Operations		121.6			105.4			115.4			119.6			126.4			3.9	%		534.1			466.8			-12.6	%
Total Operating Revenues		2,358.7			2,343.2			2,336.5			2,462.1			2,558.5			8.5	%		9,803.5			9,700.3			-1.1	%
Excluded realized loss, pre-tax (1)		(199.8	)		(207.6	)		(454.6	)		(381.1	)		(156.6	)		21.6	%		(573.1	)		(1,199.9	)	NM
Amortization income of DFEL associated with benefit ratio unlocking, pre-tax		(7.2	)		(4.2	)		(0.2	)		0.2			-			100.0	%		(9.3	)		(4.2	)		54.8	%
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax		0.7			0.7			0.7			0.7			0.5			-28.6	%		2.7			2.6			-3.7	%
Total Revenues	$	2,152.4		$	2,132.1		$	1,882.4		$	2,081.9		$	2,402.4			11.6	%	$	9,223.8		$	8,498.8			-7.9	%

Income (Loss) from Operations
Annuities	$	(171.7	)	$	73.9		$	65.4		$	94.5		$	119.7			169.7	%	$	193.2		$	353.5			83.0	%
Defined Contribution		(1.1	)		29.8			27.7			42.6			33.3		NM				122.8			133.4			8.6	%
Total Retirement Solutions		(172.8	)		103.7			93.1			137.1			153.0			188.5	%		316.0			486.9			54.1	%
Life Insurance		82.5			142.2			132.9			136.5			157.6			91.0	%		540.8			569.2			5.3	%
Group Protection		18.4			25.7			33.6			34.5			30.1			63.6	%		104.1			123.9			19.0	%
Total Insurance Solutions		100.9			167.9			166.5			171.0			187.7			86.0	%		644.9			693.1			7.5	%
Other Operations		(55.2	)		(108.5	)		(52.3	)		(32.6	)		(43.5	)		21.2	%		(182.5	)		(236.9	)		-29.8	%
Income (Loss) from Operations		(127.1	)		163.1			207.3			275.5			297.2		NM				778.4			943.1			21.2	%
Excluded realized loss, after-tax (1) (2)		(130.1	)		(136.4	)		(296.8	)		(248.3	)		(98.3	)		24.4	%		(372.2	)		(779.8	)	NM
Benefit ratio unlocking, after-tax (2)		(88.6	)		(52.0	)		80.9			52.3			7.6			108.6	%		(120.4	)		88.8			173.8	%
Income from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (2)		0.4			0.4			0.4			0.4			0.5			25.0	%		1.7			1.7			0.0	%
Gain on early extinguishment of debt, after-tax (2)		-			41.8			-			-			-		NM				-			41.8		NM
Impairment of intangibles, after-tax (2)		(157.7	)		(603.5	)		0.6			1.4			(108.8	)		31.0	%		(296.9	)		(710.3	)	NM
Income (loss) from discontinued operations, after-tax (3)		(2.4	)		7.7			(153.8	)		72.0			4.1			270.8	%		66.2			(70.0	)	NM
Net Income (Loss)		(505.5	)		(578.9	)		(161.4	)		153.3			102.3			120.2	%		56.8			(484.7	)	NM
Preferred stock dividends and accretion of discount		-			-			-			(16.3	)		(18.2	)	NM				-			(34.5	)	NM
Minority interest adjustment (4)		-			(0.1	)		-			-			-		NM				(0.6	)		(0.1	)		83.3	%
Net Income (Loss) Available to Common Stockholders	$	(505.5	)	$	(579.0	)	$	(161.4	)	$	137.0		$	84.1			116.6	%	$	56.2		$	(519.3	)	NM

Stockholders' Equity
Beginning-of-period (including AOCI)	$	9,500.1		$	7,976.8		$	7,323.5		$	9,074.9		$	11,655.5		$	11,718.4		$	7,976.8
End-of-period (including AOCI)		7,976.8			7,323.5			9,074.9			11,655.5			11,700.2			7,976.8			11,700.2
End-of-period (excluding AOCI)		10,780.3			10,298.6			10,782.3			11,876.0			11,961.6			10,780.3			11,961.6
Average equity (excluding AOCI)		11,045.3			10,539.5			10,540.5			11,329.1			11,918.8			11,290.3			11,082.0

Restructuring Charges, After-Tax	$	5.3		$	3.3		$	18.6		$	0.4		$	0.2		$	6.8		$	22.5

Common Shares Outstanding
Average for the period - basic		255.4			255.6			260.1			301.8			301.9			257.5			280.0
Average for the period - diluted		257.6			257.8			262.4			310.0			311.6			259.4			285.6
End-of-period - diluted		257.7			258.1			304.2			311.8			311.8			257.7			311.8

Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations (5)	$	(0.50	)	$	0.64		$	0.80		$	0.84		$	0.90		$	3.00		$	3.18
Net income (loss) (5)		(1.98	)		(2.27	)		(0.62	)		0.44			0.27			0.22			(1.85	)
Restructuring charges		(0.02	)		(0.01	)		(0.07	)		(0.00	)		(0.00	)		(0.03	)		(0.08	)

Stockholders' Equity Per Common Share
Stockholders' equity (including AOCI) (6)	$	31.15		$	28.59		$	30.02		$	35.91		$	36.02		$	31.15		$	36.02
Stockholders' equity (excluding AOCI) (6)		42.09			40.20			35.67			36.64			36.89			42.09			36.89
Dividends declared (common stock)		0.210			0.010			0.010			0.010			0.010			1.455			0.040

Return on Equity
Net income (loss)/average equity		-18.3	%		-22.0	%		-6.1	%		5.4	%		3.4	%		0.5	%		-4.4	%
Income (loss) from operations/average equity		-4.6	%		6.2	%		7.9	%		9.7	%		10.0	%		6.9	%		8.5	%

Market Value of Common Shares
Highest price	$	45.50		$	25.59		$	19.99		$	27.82		$	28.10		$	59.99		$	28.10
Lowest price		4.76			4.90			5.52			14.34			21.99			4.76			4.90
Closing price		18.84			6.69			17.21			25.91			24.88			18.84			24.88


(1)	See page 6 for detail.
(2)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
	financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.
(3)	Includes discontinued operations and the loss on disposal. See Discontinued Operations on page 27 for details.
(4)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(5)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been
	anti-dilutive. This same concept applies to our income (loss) from operations as well.
(6)	These computations exclude Series B preferred stock balances as it is non-convertible.

12/31/2009																											PAGE 6
Details Underlying Realized Loss, After-DAC
Unaudited (millions of dollars)

			For the Three Months Ended																		For the Years Ended
			Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
			2008			2009			2009			2009			2009			Change			2008			2009			Change
Pre-Tax
Operating realized gain (loss):
	Indexed annuity net derivatives results (1)		$	(0.5	)	$	(0.2	)	$	0.2		$	0.3		$	-			100.0	%	$	(0.5	)	$	0.3			160.0	%
	GLB (2)			11.1			11.8			11.5			14.7			15.8			42.3	%		38.3			53.8			40.5	%
		Total operating realized gain		10.6			11.6			11.7			15.0			15.8			49.1	%		37.8			54.1			43.1	%
Realized loss related to certain investments (3)				(566.7	)		(150.1	)		(158.3	)		(135.6	)		(128.1	)		77.4	%		(1,039.1	)		(572.1	)		44.9	%
Gain (loss) on certain reinsurance derivative/trading
	securities (4)			3.4			21.7			(9.4	)		70.5			(12.5	)	NM				3.5			70.3		NM
GLB net derivatives results (5)				314.5			(125.6	)		(150.5	)		(227.9	)		2.8			-99.1	%		397.8			(501.2	)	NM
GDB derivatives results (6)				50.4			45.8			(140.8	)		(84.2	)		(21.7	)	NM				57.7			(200.9	)	NM
Indexed annuity forward-starting option (7)				(1.4	)		0.6			3.4			(3.9	)		2.9		NM				7.0			3.0			-57.1	%
Gain on sale of subsidiaries/businesses				-			-			1.0			-			-		NM				-			1.0		NM
		Total excluded realized loss		(199.8	)		(207.6	)		(454.6	)		(381.1	)		(156.6	)		21.6	%		(573.1	)		(1,199.9	)	NM
		Total Realized Loss	$	(189.2	)	$	(196.0	)	$	(442.9	)	$	(366.1	)	$	(140.8	)		25.6	%	$	(535.3	)	$	(1,145.8	)	NM

After-Tax
Operating realized gain (loss):
	Indexed annuity net derivatives results (1) (8)		$	(0.3	)	$	(0.1	)	$	0.1		$	0.2		$	-			100.0	%	$	(0.3	)	$	0.2			166.7	%
	GLB (2) (8)			7.2			7.6			7.5			9.6			10.3			43.1	%		24.9			35.0			40.6	%
		Total operating realized gain		6.9			7.5			7.6			9.8			10.3			49.3	%		24.6			35.2			43.1	%
Realized loss related to certain investments (3) (8)				(368.3	)		(97.6	)		(102.9	)		(88.0	)		(83.3	)		77.4	%		(675.4	)		(371.8	)		45.0	%
Gain (loss) on certain reinsurance derivative/trading
	securities (4) (8)			2.2			14.1			(6.1	)		45.8			(8.1	)	NM				2.2			45.7		NM
GLB net derivatives results (5) (8)				204.4			(81.6	)		(97.9	)		(148.0	)		1.7			-99.2	%		258.7			(325.8	)	NM
GDB derivatives results (6) (8)				32.5			28.3			(92.8	)		(55.6	)		(10.5	)	NM				37.7			(130.6	)	NM
Indexed annuity forward-starting option (7) (8)				(0.9	)		0.4			2.2			(2.5	)		1.9		NM				4.6			2.0			-56.5	%
Gain on sale of subsidiaries/businesses (8)				-			-			0.7			-			-		NM				-			0.7		NM
		Total excluded realized loss		(130.1	)		(136.4	)		(296.8	)		(248.3	)		(98.3	)		24.4	%		(372.2	)		(779.8	)	NM
		Total Realized Loss	$	(123.2	)	$	(128.9	)	$	(289.2	)	$	(238.5	)	$	(88.0	)		28.6	%	$	(347.6	)	$	(744.6	)	NM

Components of GLB Net Derivatives Results
Net valuation premium, net of reinsurance, after-DAC			$	22.3		$	22.2		$	27.4		$	31.2		$	34.8			56.1	%	$	79.9		$	115.6			44.7	%
Change in reserves hedged, after-DAC:
	Unlocking			84.3			-			-			(25.7	)		(240.8	)	NM				163.9			(266.5	)	NM
	Other			(2,553.5	)		233.2			1,977.7			208.9			644.6			125.2	%		(3,365.7	)		3,064.4			191.0	%
Change in market value of derivative assets, after-DAC				2,989.0			(297.9	)		(1,846.3	)		(241.1	)		(548.9	)	NM				3,376.6			(2,934.2	)	NM
		Hedge program effectiveness (ineffectiveness), after-DAC		519.8			(64.7	)		131.4			(57.9	)		(145.1	)	NM				174.8			(136.3	)	NM
Change in reserves not hedged (NPR component), after-DAC				55.3			(55.4	)		(333.0	)		(212.0	)		54.1			-2.2	%		536.3			(546.3	)	NM
Change in derivative assets not hedged (NPR component)				(19.9	)		(11.9	)		17.0			5.0			4.7			123.6	%		(19.9	)		14.8			174.4	%
Associated amortization expense of DAC, VOBA,
	DSI and DFEL:
		Unlocking		297.7			(59.4	)		(83.7	)		(76.5	)		43.5			-85.4	%		206.9			(176.1	)	NM
		Other amortization		(560.7	)		43.6			90.4			82.3			10.8			101.9	%		(546.7	)		227.1			141.5	%
Loss from the initial impact of adoption of new accounting
	standard, after-DAC			-			-			-			-			-		NM				(33.5	)		-			100.0	%
		GLB Net Derivatives Results	$	314.5		$	(125.6	)	$	(150.5	)	$	(227.9	)	$	2.8			-99.1	%	$	397.8		$	(501.2	)	NM

			(1)	Represents the net difference between the change in the fair value of the S&P 500 Index® call options that we hold and the change in the fair value of the embedded
				derivative liabilities of our indexed annuity products. The change in the fair value of the liability for the embedded derivative represents the amount that is credited to
				the indexed annuity contract.
			(2)	Represents the "risk/profit margin" portion of the attributed GLB rider fees. We have certain GLB variable annuity riders with GWB and GIB features that are
				embedded derivatives. We attribute to the embedded derivative the portion of total fees collected from the contract holder that relates to the GLB riders
				(the “attributed fees”). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract (the “net
				valuation premium”) plus a margin that a theoretical market participant would include for risk/profit (the “risk/profit margin”). We include the net valuation
				premium of the GLB attributed rider fees in excluded realized gain (loss). For our Retirement Solutions – Annuities and Retirement Solutions – Defined Contribution
				segments, the total fees collected from the contract holders in excess of the GLB attributed fees are reported in insurance fees.
			(3)	See page 29 for detail.
			(4)	Represents changes in the fair values of total return swaps (embedded derivatives) theoretically included in our various modified coinsurance and coinsurance with funds
				withheld reinsurance arrangements that have contractual returns related to various assets and liabilities associated with these arrangements. Changes in the fair value of these
				derivatives are offset by the change in fair value of trading securities in the portfolios that support these arrangements.
			(5)	Represents the net valuation premium, the change in the fair value of the embedded derivative liabilities of our GLB products, the change in the fair value of the derivative
				instruments we own to hedge the embedded derivative, the cost of purchasing the derivative instruments, and the associated changes to DAC, VOBA, DSI, and DFEL.
			(6)	Represents the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
			(7)	Represents changes in the fair value of 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.
			(8)	We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our
				financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure.

12/31/2009																									PAGE 7
Consolidated Statements of Income
Unaudited (in millions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Revenues
Insurance premiums	$	510.5		$	508.2		$	541.8		$	490.4		$	523.8			2.6	%	$	2,017.9		$	2,064.2			2.3	%
Surrender charges		33.0			31.8			36.8			43.2			40.6			23.0	%		121.9			152.4			25.0	%
Mortality assessments		339.2			344.1			320.0			317.1			317.8			-6.3	%		1,320.4			1,299.0			-1.6	%
Expense assessments		380.9			324.9			333.9			405.3			406.9			6.8	%		1,624.8			1,471.0			-9.5	%
Net investment income		960.1			1,013.3			970.6			1,071.3			1,122.3			16.9	%		4,130.1			4,177.5			1.1	%
Realized loss:
Total other-than-temporary impairment losses on securities		(456.2	)		(210.6	)		(220.1	)		(147.5	)		(88.7	)		80.6	%		(851.4	)		(666.9	)		21.7	%
Portion of loss recognized in other comprehensive income		-			89.1			102.5			67.8			15.4		NM				-			274.8		NM
Net other-than-temporary impairment losses on
securities recognized in earnings		(456.2	)		(121.5	)		(117.6	)		(79.7	)		(73.3	)		83.9	%		(851.4	)		(392.1	)		53.9	%
Realized gain (loss), excluding other-than-temporary
impairment losses on securities		267.0			(74.5	)		(325.3	)		(286.4	)		(67.5	)	NM				316.1			(753.7	)	NM
Total realized loss (1)		(189.2	)		(196.0	)		(442.9	)		(366.1	)		(140.8	)		25.6	%		(535.3	)		(1,145.8	)	NM
Amortization of deferred gains on business sold
through reinsurance		19.0			19.0			18.3			18.4			20.3			6.8	%		76.3			76.0			-0.4	%
Other revenues and fees		98.9			86.8			103.9			102.3			111.5			12.7	%		467.7			404.5			-13.5	%
Total Revenues		2,152.4			2,132.1			1,882.4			2,081.9			2,402.4			11.6	%		9,223.8			8,498.8			-7.9	%

Benefits and Expenses
Interest credited		653.0			626.9			606.9			614.2			614.9			-5.8	%		2,502.2			2,462.9			-1.6	%
Benefits		941.4			920.1			574.6			577.2			763.9			-18.9	%		3,058.6			2,835.8			-7.3	%
Underwriting, acquisition, insurance and other expenses		1,072.0			643.5			694.5			761.4			694.6			-35.2	%		3,138.1			2,794.0			-11.0	%
Interest and debt expense		72.2			0.4			60.9			68.0			68.1			-5.7	%		281.1			197.4			-29.8	%
Impairment of intangibles		205.6			603.7			(0.6	)		(1.4	)		127.8			-37.8	%		380.5			729.5			91.7	%
Total Benefits and Expenses		2,944.2			2,794.6			1,936.3			2,019.4			2,269.3			-22.9	%		9,360.5			9,019.6			-3.6	%

Income (loss) from continuing operations before taxes		(791.8	)		(662.5	)		(53.9	)		62.5			133.1			116.8	%		(136.7	)		(520.8	)	NM
Federal income tax expense (benefit)		(288.7	)		(75.9	)		(46.3	)		(18.8	)		34.9			112.1	%		(127.3	)		(106.1	)		16.7	%
Income (Loss) from Continuing Operations		(503.1	)		(586.6	)		(7.6	)		81.3			98.2			119.5	%		(9.4	)		(414.7	)	NM
Income (loss) from discontinued operations, net of federal income tax expense (benefit) (2)		(2.4	)		7.7			(153.8	)		72.0			4.1			270.8	%		66.2			(70.0	)	NM
Net Income (Loss)		(505.5	)		(578.9	)		(161.4	)		153.3			102.3			120.2	%		56.8			(484.7	)	NM
Preferred stock dividends and accretion of discount		-			-			-			(16.3	)		(18.2	)	NM				-			(34.5	)	NM
Minority interest adjustment (3)		-			(0.1	)		-			-			-		NM				(0.6	)		(0.1	)		83.3	%
Net Income (Loss) Available to Common
Stockholders	$	(505.5	)	$	(579.0	)	$	(161.4	)	$	137.0		$	84.1			116.6	%	$	56.2		$	(519.3	)	NM

Earnings (Loss) Per Common Share (Diluted) (4)
Income (loss) from continuing operations	$	(1.97	)	$	(2.30	)	$	(0.03	)	$	0.21		$	0.26			113.2	%	$	(0.04	)	$	(1.60	)	NM
Income (loss) from discontinued operations, net of
federal income tax expense (benefit) (2)		(0.01	)		0.03			(0.59	)		0.23			0.01			200.0	%		0.26			(0.25	)	NM
Net Income (Loss)	$	(1.98	)	$	(2.27	)	$	(0.62	)	$	0.44		$	0.27			113.6	%	$	0.22		$	(1.85	)	NM

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the loss on disposition. See Discontinued Operations on page 27 for additional details.
(3)	Relates to outstanding stock options under the Delaware Investments U.S. Inc. stock option incentive plan.
(4)	In those periods with a loss from continuing operations, shares used in the earnings per share calculation represent basic shares, since using diluted shares would have been anti-dilutive.

12/31/2009																						PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DFEL and DSI
Unaudited (in millions)

	For the Three Months Ended															For the Years Ended
	Dec.			March			June			Sept.			Dec.			Dec.			Dec.
DAC and VOBA	2008			2009			2009			2009			2009			2008			2009
Balance as of beginning-of-period	$	10,993.3		$	11,403.3		$	11,399.4		$	10,455.9		$	9,182.3		$	8,807.7		$	11,403.3
Business sold through reinsurance		-			(292.9	)		-			-			-			-			(292.9	)
Deferrals		470.4			383.5			385.4			422.5			460.0			1,853.9			1,651.4
Amortization, net of interest:
Unlocking		(508.8	)		(32.6	)		(0.5	)		(39.9	)		12.7			(499.9	)		(60.3	)
Amortization, net of interest, excluding unlocking		(176.6	)		(205.1	)		(231.2	)		(271.5	)		(273.6	)		(950.9	)		(981.4	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		(215.0	)		145.8			153.7			111.1			199.1			403.1			609.7
Amortization, net of interest, associated with benefit ratio unlocking		41.6			21.4			(18.9	)		(12.1	)		(1.1	)		60.3			(10.7	)
Adjustment related to realized (gains) losses		(142.9	)		6.9			70.5			31.2			82.1			(104.7	)		190.7
Adjustment related to unrealized (gains) losses		726.3			114.9			(1,148.8	)		(1,403.8	)		47.2			2,236.9			(2,390.5	)
Balance as of End-of-Period	$	11,403.3		$	11,399.4		$	10,455.9		$	9,182.3		$	9,509.6		$	11,403.3		$	9,509.6

DFEL
Balance as of beginning-of-period	$	1,001.1		$	1,019.4		$	1,076.2		$	1,160.8		$	1,220.3		$	803.8		$	1,019.4
Business sold through reinsurance		-			(11.0	)		-			-			-			-			(11.0	)
Deferrals		114.0			107.5			112.5			124.0			151.6			428.3			495.6
Amortization, net of interest:
Unlocking		(56.3	)		(4.9	)		(0.9	)		(30.7	)		(2.0	)		(54.3	)		(38.5	)
Amortization, net of interest, excluding unlocking		(31.0	)		(32.8	)		(28.3	)		(36.6	)		(34.4	)		(150.2	)		(132.1	)
Deferrals, net of amortization included in operating expense assessments		26.7			69.8			83.3			56.7			115.2			223.8			325.0
Amortization, net of interest, associated with benefit ratio unlocking		7.1			4.1			0.2			(0.2	)		-			9.3			4.1
Adjustment related to realized gains (losses)		(15.5	)		(6.8	)		0.9			2.2			2.8			(17.5	)		(0.9	)
Adjustment related to unrealized gains (losses)		-			0.7			0.2			0.8			(0.7	)		-			1.0
Balance as of End-of-Period	$	1,019.4		$	1,076.2		$	1,160.8		$	1,220.3		$	1,337.6		$	1,019.4		$	1,337.6

DSI
Balance as of beginning-of-period	$	328.3		$	262.7		$	279.4		$	289.1		$	305.0		$	279.2		$	262.7
Deferrals		19.0			15.9			19.2			20.1			21.1			95.8			76.3
Amortization, net of interest:
Unlocking		(43.6	)		(1.7	)		(0.1	)		3.6			2.5			(44.7	)		4.3
Amortization, net of interest, excluding unlocking		(4.9	)		(4.9	)		(9.9	)		(10.2	)		(6.3	)		(27.8	)		(31.3	)
Deferrals, net of amortization included in operating insurance benefits or interest credited		(29.5	)		9.3			9.2			13.5			17.3			23.3			49.3
Amortization, net of interest, associated with benefit ratio unlocking		4.9			2.4			(1.7	)		(1.1	)		(0.1	)		6.3			(0.5	)
Adjustment related to realized (gains) losses		(41.0	)		4.8			2.9			3.1			2.0			(46.1	)		12.8
Adjustment related to unrealized (gains) losses		-			0.2			(0.7	)		0.4			(0.9	)		-			(1.0	)
Balance as of End-of-Period	$	262.7		$	279.4		$	289.1		$	305.0		$	323.3		$	262.7		$	323.3

12/31/2009																PAGE 9
Consolidating Statements of Income From Operations
For the Quarter Ended December 31, 2009
Unaudited (in millions)

		Retirement Solutions					Insurance Solutions
				Defined			Life		Group		Other
		Annuities		Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	11.9	$	-		$	115.2	$	396.4	$	0.4		$	523.9
Surrender charges			9.3		0.9			30.5		-		-			40.7
Mortality assessments			-		-			317.6		-		-			317.6
Expense assessments			230.1		48.8			127.4		-		-			406.3
Net investment income			281.2		190.6			528.2		35.7		86.5			1,122.2
Operating realized gain (2)			15.8		0.1			-		-		-			15.9
Amortization of deferred gain on business sold through reinsurance			-		-			1.4		-		18.3			19.7
Other revenues and fees			80.6		3.3			5.6		1.5		21.2			112.2
	Total Operating Revenues		628.9		243.7			1,125.9		433.6		126.4			2,558.5

Operating Expenses
Interest credited			172.5		111.1			297.7		0.7		32.8			614.8
Benefits			47.5		(0.2	)		374.6		281.1		79.0			782.0
Underwriting, acquisition, insurance and other expenses			266.0		83.4			221.5		105.4		20.2			696.5
Interest and debt expense			-		-			-		-		68.1			68.1
	Total Operating Expenses		486.0		194.3			893.8		387.2		200.1			2,161.4

Income (loss) from operations before federal income tax expense (benefit)			142.9		49.4			232.1		46.4		(73.7	)		397.1
Federal income tax expense (benefit)			23.2		16.1			74.5		16.3		(30.2	)		99.9
	Income (Loss) from Operations	$	119.7	$	33.3		$	157.6	$	30.1	$	(43.5	)	$	297.2

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

12/31/2009																	PAGE 10
Consolidating Statements of Income From Operations
For the Quarter Ended December 31, 2008
Unaudited (in millions)

	Retirement Solutions						Insurance Solutions
				Defined			Life		Group		Other
	Annuities			Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	33.7		$	-		$	93.6	$	382.9	$	0.3		$	510.5
Surrender charges		13.2			1.5			18.1		-		-			32.8
Mortality assessments		-			-			339.1		0.1		-			339.2
Expense assessments		207.7			42.7			137.6		-		-			388.0
Net investment income		235.5			167.6			446.9		28.2		81.8			960.0
Operating realized gain (2)		10.6			0.1			-		-		-			10.7
Amortization of deferred gain on business sold
through reinsurance		-			-			-		-		18.4			18.4
Other revenues and fees		66.6			2.6			7.5		1.3		21.1			99.1
Total Operating Revenues		567.3			214.5			1,042.8		412.5		121.6			2,358.7

Operating Expenses
Interest credited		206.3			109.8			300.7		0.6		40.7			658.1
Benefits		81.6			9.2			365.9		283.1		25.6			765.4
Underwriting, acquisition, insurance and other expenses		588.3			112.8			255.7		100.4		63.4			1,120.6
Interest and debt expense		-			-			-		-		72.3			72.3
Total Operating Expenses		876.2			231.8			922.3		384.1		202.0			2,616.4

Income (loss) from operations before federal income tax expense (benefit)		(308.9	)		(17.3	)		120.5		28.4		(80.4	)		(257.7	)
Federal income tax expense (benefit)		(137.2	)		(16.2	)		38.0		10.0		(25.2	)		(130.6	)
Income (Loss) from Operations	$	(171.7	)	$	(1.1	)	$	82.5	$	18.4	$	(55.2	)	$	(127.1	)

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

12/31/2009															PAGE 11
Consolidating Statements of Income From Operations
For the Year Ended December 31, 2009
Unaudited (in millions)

	Retirement Solutions					Insurance Solutions
			Defined			Life		Group		Other
	Annuities		Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	88.8	$	-		$	392.5	$	1,579.0	$	4.0		$	2,064.3
Surrender charges		36.4		4.5			111.6		-		-			152.5
Mortality assessments		-		-			1,298.8		0.1		-			1,298.9
Expense assessments		804.2		178.3			491.0		-					1,473.5
Net investment income		1,037.0		731.5			1,974.5		127.4		307.1			4,177.5
Operating realized gain (2)		53.8		0.4			-		-		-			54.2
Amortization of deferred gain on business sold
through reinsurance		-		-			-		-		73.4			73.4
Other revenues and fees		281.1		11.6			25.0		6.0		82.3			406.0
Total Operating Revenues		2,301.3		926.3			4,293.4		1,712.5		466.8			9,700.3

Operating Expenses
Interest credited		682.4		445.5			1,184.2		2.3		148.0			2,462.4
Benefits		241.8		(3.0	)		1,374.0		1,117.4		257.6			2,987.8
Underwriting, acquisition, insurance and other expenses		983.0		300.3			921.1		402.0		179.7			2,786.1
Interest and debt expense		-		-			-		-		261.7			261.7
Total Operating Expenses		1,907.2		742.8			3,479.3		1,521.7		847.0			8,498.0

Income (loss) from operations before federal income tax expense (benefit)		394.1		183.5			814.1		190.8		(380.2	)		1,202.3
Federal income tax expense (benefit)		40.6		50.1			244.9		66.9		(143.3	)		259.2
Income (Loss) from Operations	$	353.5	$	133.4		$	569.2	$	123.9	$	(236.9	)	$	943.1

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

12/31/2009															PAGE 12
Consolidating Statements of Income From Operations
For the Year Ended December 31, 2008
Unaudited (in millions)

	Retirement Solutions					Insurance Solutions
				Defined		Life		Group		Other
	Annuities			Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums	$	136.4		$	-	$	360.4	$	1,516.9	$	4.0		$	2,017.7
Surrender charges		45.4			6.2		70.2		-		-			121.8
Mortality assessments		-			-		1,320.4		0.1		-			1,320.5
Expense assessments		926.9			215.9		489.9		-		-			1,632.7
Net investment income		971.7			695.0		1,987.8		117.2		358.4			4,130.1
Operating realized gain (2)		37.6			0.2		-		-		-			37.8
Amortization of deferred gain on business sold
through reinsurance		-			-		-		-		73.7			73.7
Other revenues and fees		320.3			15.0		30.5		5.4		98.0			469.2
Total Operating Revenues		2,438.3			932.3		4,259.2		1,639.6		534.1			9,803.5

Operating Expenses
Interest credited		703.9			429.5		1,202.5		1.6		170.9			2,508.4
Benefits		214.9			9.3		1,372.0		1,106.7		113.2			2,816.1
Underwriting, acquisition, insurance and other expenses		1,381.2			341.4		876.6		371.1		240.7			3,211.0
Interest and debt expense		-			-		-		-		281.1			281.1
Total Operating Expenses		2,300.0			780.2		3,451.1		1,479.4		805.9			8,816.6

Income (loss) from operations before federal income tax expense (benefit)		138.3			152.1		808.1		160.2		(271.8	)		986.9
Federal income tax expense (benefit)		(54.9	)		29.3		267.3		56.1		(89.3	)		208.5
Income (Loss) from Operations	$	193.2		$	122.8	$	540.8	$	104.1	$	(182.5	)	$	778.4

(1)	Includes inter-segment eliminations.
(2)	For detail, see pages 15 and 20.

12/31/2009																PAGE 13
Consolidated Balance Sheets and Selected Share Data
Unaudited (millions of dollars)

	As of
	Dec.			March			June			Sept.			Dec.
	2008			2009			2009			2009			2009
ASSETS
Investments:
Corporate bonds	$	36,055.6		$	37,076.2		$	42,489.5		$	46,304.6		$	45,860.3
U.S. Government bonds		245.9			233.4			221.2			221.7			194.2
Foreign government bonds		520.8			479.6			479.8			492.9			504.9
Asset and mortgage-backed securities		10,129.6			9,754.6			9,889.7			10,946.9			11,103.3
State and municipal bonds		226.4			226.6			906.6			1,464.9			1,967.6
Preferred stocks - redeemable		962.3			765.1			1,063.0			1,235.2			1,188.0
Common stocks		200.0			132.8			171.9			211.6			198.4
Preferred stocks - equity		54.1			42.9			64.4			71.4			80.0
Total available-for-sale securities		48,394.7			48,711.2			55,286.1			60,949.2			61,096.7
Trading securities		2,332.5			2,245.6			2,316.7			2,547.9			2,504.6
Mortgage loans on real estate		7,715.4			7,615.9			7,468.3			7,276.7			7,177.8
Real estate		125.2			129.2			159.2			154.3			173.8
Policy loans		2,921.1			2,905.6			2,896.9			2,893.0			2,897.8
Derivative investments		3,397.2			2,226.1			1,233.8			1,282.0			1,010.1
Other investments		1,624.1			1,476.2			1,187.1			1,079.6			1,057.2
Total investments		66,510.2			65,309.8			70,548.1			76,182.7			75,918.0
Cash and invested cash		5,588.0			5,386.9			2,399.5			3,159.0			4,024.7
DAC and VOBA		11,403.3			11,399.4			10,455.9			9,182.3			9,509.6
Premiums and fees receivable		449.5			462.7			400.2			323.4			320.9
Accrued investment income		814.1			865.0			881.5			943.2			889.2
Reinsurance recoverables		8,395.9			7,976.0			7,729.3			7,664.1			6,425.9
Reinsurance related derivative assets		31.2			106.9			45.8			-			-
Goodwill		3,696.4			3,096.4			3,096.4			3,096.4			3,013.5
Other assets		10,592.5			9,888.5			10,396.8			10,827.1			3,831.4
Separate account assets		55,654.7			52,935.3			61,090.9			70,111.0			73,500.1
Total Assets	$	163,135.8		$	157,426.9		$	167,044.4		$	181,489.2		$	177,433.3

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	18,431.3		$	18,038.8		$	16,127.5		$	15,970.2		$	15,287.4
Other contract holder funds		60,569.7			61,254.8			62,427.2			63,956.0			64,818.2
Short-term debt		814.7			1,435.7			454.5			400.2			349.9
Long-term debt		4,731.0			4,344.9			4,775.1			4,788.6			5,050.4
Reinsurance related derivative liabilities		-			-			-			39.1			30.5
Funds withheld reinsurance liabilities		2,042.3			1,215.0			1,222.3			1,219.8			1,260.6
Deferred gain on indemnity reinsurance		619.5			547.7			529.1			510.8			543.4
Payables for collateral under securities loaned and derivatives		3,705.9			2,385.9			1,712.1			2,239.8			1,906.7
Other liabilities		8,589.9			7,945.3			9,630.8			10,598.2			2,985.9
Separate account liabilities		55,654.7			52,935.3			61,090.9			70,111.0			73,500.1
Total liabilities		155,159.0			150,103.4			157,969.5			169,833.7			165,733.1

Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.4
Series B preferred stock		-			-			-			799.9			806.3
Common stock		7,035.3			7,033.5			7,681.5			7,841.7			7,839.9
Retained earnings		3,744.6			3,264.7			3,100.4			3,234.0			3,315.0
Accumulated other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale securities		(2,654.5	)		(2,699.5	)		(1,448.8	)		126.8			49.4
Unrealized other-than-temporary impairment on available-
for-sale securities		-			(75.2	)		(117.7	)		(121.8	)		(115.1	)
Net unrealized gain on derivative instruments		127.1			57.8			53.7			10.8			11.4
Foreign currency translation adjustment		6.3			23.2			91.5			68.2			2.9
Funded status of employee benefit plans		(282.4	)		(281.4	)		(286.1	)		(304.5	)		(210.0	)
Total accumulated other comprehensive loss		(2,803.5	)		(2,975.1	)		(1,707.4	)		(220.5	)		(261.4	)
Total stockholders' equity		7,976.8			7,323.5			9,074.9			11,655.5			11,700.2
Total Liabilities and Stockholders' Equity	$	163,135.8		$	157,426.9		$	167,044.4		$	181,489.2		$	177,433.3

Share Data Per Common Share
Stockholders' equity per share (1)	$	31.15		$	28.59		$	30.02		$	35.91		$	36.02
Book value, excluding AOCI (1)		42.09			40.20			35.67			36.64			36.89
Common shares outstanding - assuming conversion of Series A preferred shares (in millions)		256.1			256.2			302.3			302.3			302.4

(1)

These computations exclude Series B preferred stock balances as it is non-convertible.

12/31/2009														PAGE 14
Balance Sheet Data - Segment Highlights
Unaudited (in millions)

	Retirement Solutions				Insurance Solutions
As of December 31, 2009			Defined		Life		Group		Other
	Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)	$	21,113.4	$	13,053.4	$	35,072.6	$	2,296.1	$	8,407.2		$	79,942.7
DAC and VOBA		2,381.0		537.7		6,412.0		159.5		19.4			9,509.6
Goodwill		439.8		20.2		2,188.5		274.3		90.7			3,013.5
DSI and other intangibles		320.6		4.6		85.0		-		118.2			528.4
Reinsurance recoverables		531.8		-		1,870.8		39.9		3,983.4			6,425.9
Separate account assets		55,286.9		12,949.6		5,088.3		-		175.3			73,500.1

Liabilities and Capital
Future contract benefits		1,439.0		2.6		6,434.7		1,446.3		5,964.8			15,287.4
Other contract holder funds		19,565.6		12,239.8		31,287.4		193.1		1,532.3			64,818.2

Allocated capital (3)		2,785.0		1,070.6		8,144.1		1,065.1		(1,103.2	)		11,961.6



As of December 31, 2008

Assets
Allocated investments and cash and invested cash (2)	$	23,175.5	$	11,304.2	$	31,934.0	$	1,962.9	$	3,721.7		$	72,098.3
DAC and VOBA		2,976.9		883.3		7,383.5		145.9		13.7			11,403.3
Goodwill		1,039.8		20.2		2,188.5		274.3		173.6			3,696.4
DSI and other intangibles		260.7		4.6		89.0		-		169.5			523.8
Reinsurance recoverables		725.8		-		2,039.0		33.2		5,597.9			8,395.9
Separate accounts assets		40,849.5		10,579.7		4,063.5		-		162.0			55,654.7

Liabilities and Capital
Future contract benefits		3,958.0		24.8		6,379.9		1,378.4		6,690.2			18,431.3
Other contract holder funds		17,219.9		11,627.8		29,999.2		148.6		1,574.2			60,569.7

Allocated capital (3)		3,404.7		958.5		8,294.8		989.8		(2,867.5	)		10,780.3

(1)	Includes inter-segment eliminations.
(2)	Includes inter-segment cash management balances our segments utilize to borrow money to meet their short-term needs and also to invest short-term funds with other segments.
	These balances eliminate in consolidation.
(3)	Allocated capital is based on internal economic capital models plus certain other items (principally intangibles, including DAC and VOBA, goodwill and other items).

12/31/2009																												PAGE 15
Retirement Solutions - Annuities
Income Statements and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Operating Revenues
Insurance premiums (1)	$	33.7		$	27.1		$	32.5		$	17.3		$	11.9			-64.7	%	$	136.4		$	88.8			-34.9	%
Surrender charges		13.2			9.2			8.9			9.0			9.3			-29.5	%		45.4			36.4			-19.8	%
Expense assessments		207.7			172.5			187.3			214.3			230.1			10.8	%		926.9			804.2			-13.2	%
Net investment income		235.5			240.4			243.9			271.5			281.2			19.4	%		971.7			1,037.0			6.7	%
Operating realized gain (2)		10.6			11.5			11.6			14.9			15.8			49.1	%		37.6			53.8			43.1	%
Other revenues and fees (3)		66.6			61.0			68.3			71.2			80.6			21.0	%		320.3			281.1			-12.2	%
Total Operating Revenues		567.3			521.7			552.5			598.2			628.9			10.9	%		2,438.3			2,301.3			-5.6	%

Operating Expenses
Interest credited		206.3			163.6			170.4			175.9			172.5			-16.4	%		703.9			682.4			-3.1	%
Benefits (1)		81.6			75.8			67.0			51.5			47.5			-41.8	%		214.9			241.8			12.5	%
Underwriting, acquisition, insurance and other expenses		588.3			219.7			238.5			258.8			266.0			-54.8	%		1,381.2			983.0			-28.8	%
Total Operating Expenses		876.2			459.1			475.9			486.2			486.0			-44.5	%		2,300.0			1,907.2			-17.1	%

Income (loss) from operations before federal income tax expense (benefit)		(308.9	)		62.6			76.6			112.0			142.9			146.3	%		138.3			394.1			185.0	%
Federal income tax expense (benefit)		(137.2	)		(11.3	)		11.2			17.5			23.2			116.9	%		(54.9	)		40.6			174.0	%
Income (Loss) from Operations	$	(171.7	)	$	73.9		$	65.4		$	94.5		$	119.7			169.7	%	$	193.2		$	353.5			83.0	%

Effective Tax Rate		44.4	%		-18.1	%		14.6	%		15.6	%		16.2	%					-39.7	%		10.3	%

Average Equity	$	3,615.3		$	3,193.4		$	2,912.1		$	2,814.2		$	2,785.6					$	3,585.8		$	2,926.3
Return on Average Equity		-19.0	%		9.3	%		9.0	%		13.4	%		17.2	%					5.4	%		12.1	%

Income (Loss) from Operations - Basis Points on Average Account Values - Annualized		(118	)		52			42			55			65			183			28			54			26

Operating Realized Gain (Loss)(2)
Indexed annuity net derivatives results (4)	$	(0.5	)	$	(0.2	)	$	0.2		$	0.4		$	-			100.0	%	$	(0.5	)	$	0.4			180.0	%
GLB (5)		11.1			11.7			11.4			14.5			15.8			42.3	%		38.1			53.4			40.2	%
Total Operating Realized Gain	$	10.6		$	11.5		$	11.6		$	14.9		$	15.8			49.1	%	$	37.6		$	53.8			43.1	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	132.7		$	124.6		$	157.2		$	185.3		$	161.1			21.4	%	$	645.6		$	628.2			-2.7	%
General and administrative expenses		86.8			72.1			76.2			82.5			85.9			-1.0	%		330.0			316.7			-4.0	%
Broker-dealer commissions and general and administrative expenses		73.3			64.1			69.2			73.6			81.1			10.6	%		326.1			288.0			-11.7	%
Taxes, licenses and fees		5.7			5.7			6.7			6.3			4.0			-29.8	%		30.2			22.7			-24.8	%
Total commissions and expenses incurred		298.5			266.5			309.3			347.7			332.1			11.3	%		1,331.9			1,255.6			-5.7	%
Less: commissions and expenses capitalized		(151.2	)		(127.3	)		(158.2	)		(181.0	)		(157.2	)		-4.0	%		(685.5	)		(623.7	)		9.0	%
Amortization of DAC and VOBA, net of interest		441.0			80.5			87.4			92.1			91.1			-79.3	%		734.8			351.1			-52.2	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	588.3		$	219.7		$	238.5		$	258.8		$	266.0			-54.8	%	$	1,381.2		$	983.0			-28.8	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (6)		59			51			49			48			47			(12	)		47			48			1

(1)	Includes our single premium immediate annuities, which have a corresponding offset to benefits for changes in reserves.
(2)	Included in income (loss) from operations.
(3)	Primarily broker-dealer revenues.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Includes distribution costs.

12/31/2009																						PAGE 16
Retirement Solutions - Annuities
DAC, VOBA, DFEL and DSI Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended															For the Years Ended
	Dec.			March			June			Sept.			Dec.			Dec.			Dec.
DAC and VOBA	2008			2009			2009			2009			2009			2008			2009
Balance as of beginning-of-period	$	3,157.9		$	2,976.9		$	3,056.6		$	2,698.1		$	2,286.6		$	2,477.0		$	2,976.9
Inter-segment transfer		-			-			-			-			-			(6.9	)		-
Deferrals		151.2			127.3			158.2			181.0			157.2			685.5			623.7
Amortization, net of interest:
Unlocking		(377.2	)		(17.8	)		5.0			5.1			16.2			(391.4	)		8.5
Amortization, net of interest, excluding unlocking		(63.8	)		(62.7	)		(92.4	)		(97.2	)		(107.3	)		(343.4	)		(359.6	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		(289.8	)		46.8			70.8			88.9			66.1			(49.3	)		272.6
Amortization, net of interest, associated with benefit ratio unlocking		40.3			19.8			(16.9	)		(11.0	)		(0.9	)		58.9			(9.0	)
Adjustment related to realized (gains) losses		(232.7	)		(18.2	)		22.5			26.2			43.9			(275.2	)		74.4
Adjustment related to unrealized (gains) losses		301.2			31.3			(434.9	)		(515.6	)		(14.7	)		772.4			(933.9	)
Balance as of End-of-Period	$	2,976.9		$	3,056.6		$	2,698.1		$	2,286.6		$	2,381.0		$	2,976.9		$	2,381.0

DFEL
Balance as of beginning-of-period	$	160.5		$	130.3		$	134.5		$	146.5		$	162.2		$	130.9		$	130.3
Deferrals		11.4			10.6			12.3			15.8			17.6			49.7			56.3
Amortization, net of interest:
Unlocking		(32.3	)		(2.0	)		(0.2	)		(2.8	)		0.9			(32.2	)		(4.1	)
Amortization, net of interest, excluding unlocking		(1.0	)		(0.7	)		1.1			1.0			1.8			(10.0	)		3.2
Deferrals, net of amortization included in operating expense assessments		(21.9	)		7.9			13.2			14.0			20.3			7.5			55.4
Amortization, net of interest, associated with benefit ratio unlocking		7.1			4.1			0.2			(0.2	)		-			9.3			4.1
Adjustment related to realized gains (losses)		(15.4	)		(7.6	)		(1.4	)		1.8			(0.4	)		(17.4	)		(7.6	)
Adjustment related to unrealized gains (losses)		-			(0.2	)		-			0.1			-			-			(0.1	)
Balance as of End-of-Period	$	130.3		$	134.5		$	146.5		$	162.2		$	182.1		$	130.3		$	182.1

DSI
Balance as of beginning-of-period	$	326.3		$	260.7		$	277.2		$	286.6		$	302.4		$	278.8		$	260.7
Inter-segment transfer		-			-			-			-			-			(1.3	)		-
Deferrals		18.8			15.7			18.7			20.0			21.0			95.2			75.4
Amortization, net of interest:
Unlocking		(43.4	)		(1.7	)		(0.2	)		3.6			2.6			(44.5	)		4.3
Amortization, net of interest, excluding unlocking		(5.0	)		(4.7	)		(9.7	)		(10.2	)		(6.4	)		(27.8	)		(31.0	)
Deferrals, net of amortization included in operating interest credited		(29.6	)		9.3			8.8			13.4			17.2			22.9			48.7
Amortization, net of interest, associated with benefit ratio unlocking		4.9			2.4			(1.7	)		(1.1	)		(0.1	)		6.3			(0.5	)
Adjustment related to realized (gains) losses		(40.9	)		4.7			2.9			3.1			2.0			(46.0	)		12.7
Adjustment related to unrealized (gains) losses		-			0.1			(0.6	)		0.4			(0.9	)		-			(1.0	)
Balance as of End-of-Period	$	260.7		$	277.2		$	286.6		$	302.4		$	320.6		$	260.7		$	320.6

12/31/2009																										PAGE 17
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)

	For the Three Months Ended																			For the Years Ended
	Dec.				March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008				2009			2009			2009			2009			Change			2008			2009			Change
Fixed Annuities
Balance as of beginning-of-period	$	17.689			$	17.655		$	17.854		$	18.596		$	19.766			11.7	%	$	17.822		$	17.655			-0.9	%
Gross deposits		1.233				1.361			1.774			2.025			1.195			-3.1	%		5.040			6.355			26.1	%
Withdrawals and deaths		(0.836	)			(0.765	)		(0.646	)		(0.501	)		(0.523	)		37.4	%		(2.828	)		(2.435	)		13.9	%
Net flows		0.397				0.596			1.128			1.524			0.672			69.3	%		2.212			3.920			77.2	%
Transfers to variable annuities		(0.581	)			(0.558	)		(0.582	)		(0.610	)		(0.726	)		-25.0	%		(2.799	)		(2.476	)		11.5	%
Inter-segment transfer		-				-			-			-			-		NM				(0.089	)		-			100.0	%
Interest credited		0.132				0.145			0.177			0.237			0.207			56.8	%		0.414			0.766			85.0	%
Sales inducements deferred		0.018				0.016			0.019			0.019			0.021			16.7	%		0.095			0.075			-21.1	%
Balance as of End-of-Period (Gross)		17.655				17.854			18.596			19.766			19.940			12.9	%		17.655			19.940			12.9	%
Reinsurance ceded		(1.125	)			(1.094	)		(1.065	)		(1.049	)		(1.027	)		8.7	%		(1.125	)		(1.027	)		8.7	%
Balance as of End-of-Period (Net of Ceded) (1)	$	16.530			$	16.760		$	17.531		$	18.717		$	18.913			14.4	%	$	16.530		$	18.913			14.4	%

Variable Annuities
Balance as of beginning-of-period	$	49.982			$	40.925		$	39.301		$	45.523		$	52.429			4.9	%	$	58.643		$	40.925			-30.2	%
Gross deposits		1.087				0.827			0.851			1.063			1.266			16.5	%		6.690			4.007			-40.1	%
Withdrawals and deaths		(1.108	)			(0.993	)		(0.944	)		(0.977	)		(1.120	)		-1.1	%		(4.814	)		(4.034	)		16.2	%
Net flows		(0.021	)			(0.166	)		(0.093	)		0.086			0.146		NM				1.876			(0.027	)	NM
Transfers from fixed annuities		0.579				0.558			0.582			0.609			0.726			25.4	%		2.798			2.475			-11.5	%
Inter-segment transfer		-				-			-			-			-		NM				(0.206	)		-			100.0	%
Investment increase and change in market value		(9.615	)			(2.016	)		5.733			6.211			2.067			121.5	%		(22.186	)		11.995			154.1	%
Balance as of End-of-Period (2)	$	40.925			$	39.301		$	45.523		$	52.429		$	55.368			35.3	%	$	40.925		$	55.368			35.3	%

Total Annuities
Balance as of beginning-of-period	$	67.671			$	58.580		$	57.155		$	64.119		$	72.195			6.7	%	$	76.465		$	58.580			-23.4	%
Gross deposits		2.320				2.188			2.625			3.088			2.461			6.1	%		11.730			10.362			-11.7	%
Withdrawals and deaths		(1.944	)			(1.758	)		(1.590	)		(1.478	)		(1.643	)		15.5	%		(7.642	)		(6.469	)		15.3	%
Net flows		0.376				0.430			1.035			1.610			0.818			117.6	%		4.088			3.893			-4.8	%
Transfers between fixed and variable accounts		(0.002	)			-			-			(0.001	)		-			100.0	%		(0.001	)		(0.001	)		0.0	%
Inter-segment transfer		-				-			-			-			-		NM				(0.295	)		-			100.0	%
Interest credited and change in market value		(9.483	)			(1.871	)		5.910			6.448			2.274			124.0	%		(21.772	)		12.761			158.6	%
Sales inducements deferred		0.018				0.016			0.019			0.019			0.021			16.7	%		0.095			0.075			-21.1	%
Balance as of End-of-Period (Gross)		58.580				57.155			64.119			72.195			75.308			28.6	%		58.580			75.308			28.6	%
Reinsurance ceded		(1.125	)			(1.094	)		(1.065	)		(1.049	)		(1.027	)		8.7	%		(1.125	)		(1.027	)		8.7	%
Balance as of End-of-Period (Net of Ceded)	$	57.455			$	56.061		$	63.054		$	71.146		$	74.281			29.3	%	$	57.455		$	74.281			29.3	%


Variable Annuities Under Agreement - Included Above	$	0.076			$	0.069		$	0.076		$	0.082		$	0.082			7.9	%	$	0.076		$	0.082			7.9	%

Incremental Deposits: (3)
Fixed annuities	$	1.225			$	1.358		$	1.774		$	2.023		$	1.194			-2.5	%	$	5.011		$	6.349			26.7	%
Variable annuities		1.076				0.824			0.849			1.059			1.263			17.4	%		6.608			3.995			-39.5	%
Total Incremental Deposits	$	2.301		��	$	2.182		$	2.623		$	3.082		$	2.457			6.8	%	$	11.619		$	10.344			-11.0	%

(1)	Includes the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Represents gross deposits reduced by transfers from other Lincoln products.

12/31/2009																									PAGE 18
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Fixed Annuities, Excluding Fixed Portion of Variable
Contracts
Deposits	$	0.142		$	0.235		$	0.248		$	0.414		$	0.082			-42.3	%	$	0.528		$	0.979			85.4	%
Withdrawals and deaths		(0.504	)		(0.397	)		(0.328	)		(0.283	)		(0.299	)		40.7	%		(1.837	)		(1.307	)		28.9	%
Net flows	$	(0.362	)	$	(0.162	)	$	(0.080	)	$	0.131		$	(0.217	)		40.1	%	$	(1.309	)	$	(0.328	)		74.9	%

Gross fixed contract account values	$	9.035		$	8.959		$	8.981		$	9.219		$	9.102			0.7	%	$	9.035		$	9.102			0.7	%
Reinsurance ceded		(1.125	)		(1.094	)		(1.065	)		(1.049	)		(1.027	)		8.7	%		(1.125	)		(1.027	)		8.7	%
Net fixed contract account values	$	7.910		$	7.865		$	7.916		$	8.170		$	8.075			2.1	%	$	7.910		$	8.075			2.1	%

Indexed Annuities
Deposits	$	0.289		$	0.367		$	0.651		$	0.846		$	0.318			10.0	%	$	1.078		$	2.182			102.4	%
Withdrawals and deaths		(0.142	)		(0.214	)		(0.187	)		(0.115	)		(0.120	)		15.5	%		(0.441	)		(0.636	)		-44.2	%
Net flows	$	0.147		$	0.153		$	0.464		$	0.731		$	0.198			34.7	%	$	0.637		$	1.546			142.7	%

Indexed Annuity Account Values	$	5.003		$	5.195		$	5.716		$	6.557		$	6.839			36.7	%	$	5.003		$	6.839			36.7	%

Fixed Portion of Variable Contracts
Deposits	$	0.802		$	0.759		$	0.875		$	0.765		$	0.795			-0.9	%	$	3.433		$	3.194			-7.0	%
Withdrawals and deaths		(0.191	)		(0.155	)		(0.131	)		(0.104	)		(0.103	)		46.1	%		(0.549	)		(0.493	)		10.2	%
Net flows	$	0.611		$	0.604		$	0.744		$	0.661		$	0.692			13.3	%	$	2.884		$	2.701			-6.3	%

Fixed Portion of Variable Contract Account Values	$	3.617		$	3.699		$	3.899		$	3.990		$	3.999			10.6	%	$	3.617		$	3.999			10.6	%

Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	1.890		$	1.586		$	1.726		$	1.829		$	2.060			9.0	%	$	10.123		$	7.201			-28.9	%
Withdrawals and deaths		(1.300	)		(1.148	)		(1.075	)		(1.082	)		(1.222	)		6.0	%		(5.362	)		(4.527	)		15.6	%
Net flows	$	0.590		$	0.438		$	0.651		$	0.747		$	0.838			42.0	%	$	4.761		$	2.674			-43.8	%

Variable Contract Account Values	$	44.542		$	43.000		$	49.422		$	56.419		$	59.367			33.3	%	$	44.542		$	59.367			33.3	%


Average Daily Variable Annuity Separate Account Values	$	40.743		$	39.035		$	43.828		$	49.135		$	54.013			32.6	%	$	52.111		$	46.551			-10.7	%

12/31/2009																															PAGE 19
Retirement Solutions - Annuities
Interest Rate Spread Information, GLB Expense Assessments,
GLB Attributed Fee and GLB Account Values by Type
Unaudited (billions of dollars)

			For the Three Months Ended																			For the Years Ended
			Dec.			March			June			Sept.			Dec.			%				Dec.			Dec.			%
			2008			2009			2009			2009			2009			Change				2008			2009			Change
																		(Basis Point)										(Basis Point)
Interest Rate Spread (1)																		Change										Change
Fixed maturity securities, mortgage loans on real estate and
	other, net of investment expenses (2)			5.65	%		5.28	%		5.44	%		5.68	%		5.59	%		(6	)			5.79	%		5.50	%		(29	)
	Commercial mortgage loan prepayment and bond make whole premiums			0.02	%		0.00	%		0.01	%		0.02	%		0.08	%		6				0.02	%		0.03	%		1
Alternative investments				-0.04	%		-0.01	%		0.00	%		0.01	%		0.00	%		4				-0.01	%		0.00	%		1
	Net investment income yield on reserves			5.63	%		5.27	%		5.45	%		5.71	%		5.67	%		4				5.80	%		5.53	%		(27	)
	Interest rate credited to contract holders			3.87	%		3.85	%		3.81	%		3.80	%		3.65	%		(22	)			3.84	%		3.77	%		(7	)
		Interest rate spread		1.76	%		1.42	%		1.64	%		1.91	%		2.02	%		26		��		1.96	%		1.76	%		(20	)

Variable Annuity Expense Assessments
	(in millions) (3)		$	251.7		$	213.8		$	234.6		$	265.7		$	287.4			14.2	%		$	1,088.3		$	1,001.5			-8.0	%

GLB Expense Assessments (in millions) (4)			$	46.2		$	47.9		$	50.6		$	54.7		$	58.9			27.5	%		$	174.0		$	212.1			21.9	%

Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income (loss) from operations (5)			$	18.3		$	16.2		$	16.9		$	17.5		$	18.6			1.6	%		$	69.0		$	69.2			0.3	%
Attributed fee excluded from operating revenues and income(loss) from operations (6)				25.7			25.5			30.6			34.3			37.9			47.5	%			92.6			128.3			38.6	%
	Total Attributed Fees on GLB		$	44.0		$	41.7		$	47.5		$	51.8		$	56.5			28.4	%		$	161.6		$	197.5			22.2	%

GLB Account Values by Type (7)
Guaranteed withdrawal benefits (8)			$	14.785		$	14.910		$	17.973		$	21.462		$	23.500			58.9	%		$	14.785		$	23.500			58.9	%
Guaranteed income benefits (9)				6.780			6.623			7.708			8.835			9.333			37.7	%			6.780			9.333			37.7	%
	Total GLB Account Values		$	21.565		$	21.533		$	25.681		$	30.297		$	32.833			52.3	%		$	21.565		$	32.833			52.3	%

(1)	For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average invested assets on
	reserves. We exclude net investment income earned on investments supporting statutory surplus, reverse repurchase agreement interest expense and inter-segment cash management
	account interest expense from our yield and spread calculations. The average crediting rate is calculated using interest credited before DSI amortization, plus the immediate annuity
	reserve change (included within benefits), divided by average fixed account values net of co-insured account values. Fixed account values reinsured under modified co-insurance
	agreements are included in account values for this calculation since assets (and therefore margin) are retained under these agreements.
(2)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets. The increased
	cash and short-term investment balances for the three months ended March 2009, June 2009, September 2009, December 2009 and the year ended December 2009 reduced our
	yields by approximately 40 bps, 33 bps, 3 bps, 5 bps and 20 bps, respectively.
(3)	Comprised of the variable annuity expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of attributed fees on
	GLB, as described in footnotes 5 and 6 and disclosed above.
(4)	Comprised of the GLB expense assessments included in the expense assessments line item on page 15 and the amounts presented in the components of attributed fees on GLB, as
	described in footnotes 5 and 6 and disclosed above.
(5)	Includes the risk/profit margin portion of the GLB attributed rider fees in operating realized gain (loss) and the amount reported in expense assessments. See note (2) on page 6 for
	further discussion.
(6)	Includes the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss). See note (5) on page 6 for further discussion.
(7)	As of March 31, 2009, we modified our presentation of these period end balances to reflect the amounts net of reinsurance and adjusted all prior periods accordingly.
(8)	Guaranteed withdrawal benefits include features that offer the contract holder a guarantee equal to the initial deposit (or contract value, if elected after issue), adjusted for any
	subsequent purchase payments or withdrawals.
(9)	For our guaranteed income benefits, we offer other product riders allowing variable annuity contract holders access and control during the income distribution phase of their contract.
	This added flexibility allows the contract holder to access the account value for transfers, additional withdrawals and other service features, such as portfolio rebalancing.

12/31/2009																											PAGE 20
Retirement Solutions - Defined Contribution
Income Statements, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)

			For the Three Months Ended																		For the Years Ended
			Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
			2008			2009			2009			2009			2009			Change			2008			2009			Change
Operating Revenues
Surrender charges			$	1.5		$	1.0		$	1.3		$	1.3		$	0.9			-40.0	%	$	6.2		$	4.5			-27.4	%
Expense assessments				42.7			39.6			43.4			46.5			48.8			14.3	%		215.9			178.3			-17.4	%
Net investment income				167.6			175.5			175.6			189.8			190.6			13.7	%		695.0			731.5			5.3	%
Operating realized gain (1)				0.1			0.1			0.1			0.1			0.1			0.0	%		0.2			0.4			100.0	%
Other revenues and fees				2.6			2.3			3.1			2.9			3.3			26.9	%		15.0			11.6			-22.7	%
Total Operating Revenues				214.5			218.5			223.5			240.6			243.7			13.6	%		932.3			926.3			-0.6	%

Operating Expenses
Interest credited				109.8			111.5			112.0			110.9			111.1			1.2	%		429.5			445.5			3.7	%
Benefits				9.2			(1.8	)		(0.7	)		(0.3	)		(0.2	)	NM				9.3			(3.0	)	NM
Underwriting, acquisition, insurance and other expenses				112.8			72.4			73.9			70.6			83.4			-26.1	%		341.4			300.3			-12.0	%
Total Operating Expenses				231.8			182.1			185.2			181.2			194.3			-16.2	%		780.2			742.8			-4.8	%

Income (loss) from operations before federal income tax expense (benefit)				(17.3	)		36.4			38.3			59.4			49.4		NM				152.1			183.5			20.6	%
Federal income tax expense (benefit)				(16.2	)		6.6			10.6			16.8			16.1			199.4	%		29.3			50.1			71.0	%
Income (Loss) from Operations			$	(1.1	)	$	29.8		$	27.7		$	42.6		$	33.3		NM			$	122.8		$	133.4			8.6	%

Effective Tax Rate				93.6	%		18.1	%		27.7	%		28.3	%		32.6	%					19.3	%		27.3	%

Average Equity			$	964.6		$	1,009.7		$	1,050.0		$	1,025.2		$	1,040.8					$	941.6		$	1,031.4
Return on Average Equity				(0.5	%)		11.8	%		10.6	%		16.6	%		12.8	%					13.0	%		12.9	%

Income (Loss) from Operations - Basis Points on Average Account Values - Annualized				(1	)		42			37			52			38			39			37			44			7

Operating Realized Gain (1)
GLB (2)			$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.2		$	0.4			100.0	%
Total Operating Realized Gain			$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.2		$	0.4			100.0	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions			$	16.0		$	14.0		$	15.5		$	16.4		$	18.1			13.1	%	$	72.3		$	64.0			-11.5	%
General and administrative expenses				63.3			53.6			53.7			53.3			59.2			-6.5	%		219.9			219.8			0.0	%
Taxes, licenses and fees				2.8			3.6			3.0			2.7			2.9			3.6	%		13.3			12.2			-8.3	%
Total commissions and expenses incurred				82.1			71.2			72.2			72.4			80.2			-2.3	%		305.5			296.0			-3.1	%
Less: commissions and expenses capitalized				(28.2	)		(18.3	)		(17.0	)		(15.4	)		(17.9	)		36.5	%		(93.7	)		(68.6	)		26.8	%
Amortization of DAC and VOBA, net of interest				58.9			19.5			18.7			13.6			21.1			-64.2	%		129.6			72.9			-43.8	%
Total Underwriting, Acquisition, Insurance and Other Expenses			$	112.8		$	72.4		$	73.9		$	70.6		$	83.4			-26.1	%	$	341.4		$	300.3			-12.0	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (3)				86			76			71			65			68			(18	)		65			72			7

DAC and VOBA
Balance as of beginning-of-period			$	744.8		$	883.3		$	918.2		$	762.7		$	550.4					$	513.8		$	883.3
Inter-segment transfer				-			-			-			-			-						6.9			-
Deferrals				28.2			18.3			17.0			15.4			17.9						93.7			68.6
Amortization, net of interest:
Unlocking				(47.7	)		(2.2	)		0.1			7.8			0.1						(52.9	)		5.8
Amortization, net of interest, excluding unlocking				(11.2	)		(17.3	)		(18.8	)		(21.4	)		(21.2	)					(76.7	)		(78.7	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses				(30.7	)		(1.2	)		(1.7	)		1.8			(3.2	)					(35.9	)		(4.3	)
Amortization, net of interest, associated with benefit ratio unlocking				1.4			1.6			(2.0	)		(1.1	)		(0.2	)					1.4			(1.7	)
Adjustment related to realized (gains) losses				5.1			2.5			5.6			2.3			0.8						11.4			11.2
Adjustment related to unrealized (gains) losses				162.7			32.0			(157.4	)		(215.3	)		(10.1	)					385.7			(350.8	)
	Balance as of End-of-Period		$	883.3		$	918.2		$	762.7		$	550.4		$	537.7					$	883.3		$	537.7

DSI
Balance as of beginning-of-period			$	2.0		$	2.0		$	2.2		$	2.5		$	2.6					$	0.4		$	2.0
Inter-segment transfer				-			-			-			-			-						1.3			-
Deferrals				0.2			0.3			0.4			0.2			0.1						0.6			1.0
Amortization, net of interest:
Unlocking				(0.1	)		-			-			0.1			-						(0.1	)		0.1
Amortization, net of interest, excluding unlocking				-			(0.1	)		(0.1	)		(0.2	)		(0.1	)					(0.2	)		(0.5	)
Deferrals, net of amortization included in operating interest credited				0.1			0.2			0.3			0.1			-						0.3			0.6
Amortization, net of interest, associated with benefit ratio unlocking				-			-			-			-			-						-			-
Adjustment related to realized (gains) losses				(0.1	)		-			-			-			0.1						-			0.1
		Balance as of End-of-Period	$	2.0		$	2.2		$	2.5		$	2.6		$	2.7					$	2.0		$	2.7

(1)	Included in income (loss) from operations.
(2)	See note (2) on page 6 for details.
(3)	Includes distribution costs.

12/31/2009																									PAGE 21
Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Fixed Annuities
Balance as of beginning-of-period	$	11.418		$	11.638		$	11.924		$	12.070		$	12.158			6.5	%	$	10.889		$	11.638			6.9	%
Gross deposits		0.279			0.409			0.328			0.306			0.299			7.2	%		1.181			1.342			13.6	%
Withdrawals and deaths		(0.387	)		(0.383	)		(0.326	)		(0.327	)		(0.368	)		4.9	%		(1.548	)		(1.404	)		9.3	%
Net flows		(0.108	)		0.026			0.002			(0.021	)		(0.069	)		36.1	%		(0.367	)		(0.062	)		83.1	%
Transfers from variable annuities		0.214			0.150			0.037			(0.003	)		0.044			-79.4	%		0.595			0.228			-61.7	%
Inter-segment transfer		-			-			-			-			-		NM				0.089			-			-100.0	%
Interest credited		0.114			0.110			0.107			0.112			0.113			-0.9	%		0.432			0.442			2.3	%
Balance as of End-of-Period (1)	$	11.638		$	11.924		$	12.070		$	12.158		$	12.246			5.2	%	$	11.638		$	12.246			5.2	%

Variable Annuities
Balance as of beginning-of-period	$	13.480		$	10.588		$	9.721		$	11.102		$	12.620			-6.4	%	$	17.876		$	10.588			-40.8	%
Gross deposits		0.403			0.418			0.368			0.387			0.413			2.5	%		2.170			1.586			-26.9	%
Withdrawals and deaths		(0.506	)		(0.412	)		(0.416	)		(0.471	)		(0.589	)		-16.4	%		(2.708	)		(1.888	)		30.3	%
Net flows		(0.103	)		0.006			(0.048	)		(0.084	)		(0.176	)		-70.9	%		(0.538	)		(0.302	)		43.9	%
Transfers to fixed annuities		(0.143	)		(0.166	)		(0.019	)		0.021			(0.012	)		91.6	%		(0.461	)		(0.176	)		61.8	%
Inter-product transfer (2)		-			-			-			-			-		NM				(0.553	)		-			100.0	%
Inter-segment transfer		-			-			-			-			-		NM				0.206			-			-100.0	%
Investment increase and change in market value		(2.646	)		(0.707	)		1.448			1.581			0.521			119.7	%		(5.942	)		2.843			147.8	%
Balance as of End-of-Period (3)	$	10.588		$	9.721		$	11.102		$	12.620		$	12.953			22.3	%	$	10.588		$	12.953			22.3	%

Total Annuities
Balance as of beginning-of-period	$	24.898		$	22.226		$	21.645		$	23.172		$	24.778			-0.5	%	$	28.765		$	22.226			-22.7	%
Gross deposits		0.682			0.827			0.696			0.693			0.712			4.4	%		3.351			2.928			-12.6	%
Withdrawals and deaths		(0.893	)		(0.795	)		(0.742	)		(0.798	)		(0.957	)		-7.2	%		(4.256	)		(3.292	)		22.7	%
Net flows		(0.211	)		0.032			(0.046	)		(0.105	)		(0.245	)		-16.1	%		(0.905	)		(0.364	)		59.8	%
Transfers between fixed and variable accounts		0.071			(0.016	)		0.018			0.018			0.032			-54.9	%		0.134			0.052			-61.2	%
Inter-product transfer (2)		-			-			-			-			-		NM				(0.553	)		-			100.0	%
Inter-segment transfer		-			-			-			-			-		NM				0.295			-			-100.0	%
Interest credited and change in market value		(2.532	)		(0.597	)		1.555			1.693			0.634			125.0	%		(5.510	)		3.285			159.6	%
Balance as of End-of-Period	$	22.226		$	21.645		$	23.172		$	24.778		$	25.199			13.4	%	$	22.226		$	25.199			13.4	%

Alliance and Smart Future Mutual Funds
Balance as of beginning-of-period	$	7.675		$	6.652		$	6.848		$	8.155		$	9.544			24.4	%	$	7.293		$	6.652			-8.8	%
Plan/participant rollovers		0.249			0.338			0.071			0.057			0.086			-65.5	%		0.970			0.552			-43.1	%
Additional contributions		0.310			0.396			0.363			0.353			0.360			16.1	%		1.226			1.472			20.1	%
Gross deposits		0.559			0.734			0.434			0.410			0.446			-20.2	%		2.196			2.024			-7.8	%
Withdrawals and deaths		(0.177	)		(0.109	)		(0.132	)		(0.161	)		(0.263	)		-48.6	%		(0.510	)		(0.665	)		-30.4	%
Net flows		0.382			0.625			0.302			0.249			0.183			-52.1	%		1.686			1.359			-19.4	%
Transfers		(0.079	)		-			(0.008	)		(0.003	)		(0.032	)		59.5	%		(0.199	)		(0.043	)		78.4	%
Inter-product transfer (2)		-			-			-			-			-		NM				0.553			-			-100.0	%
Interest credited and change in market value		(1.326	)		(0.429	)		1.013			1.143			0.408			130.8	%		(2.681	)		2.135			179.6	%
Balance as of End-of-Period (4)	$	6.652		$	6.848		$	8.155		$	9.544		$	10.103			51.9	%	$	6.652		$	10.103			51.9	%

Total Annuities and Mutual Funds
Balance as of beginning-of-period	$	32.573		$	28.878		$	28.493		$	31.327		$	34.322			5.4	%	$	36.058		$	28.878			-19.9	%
Gross deposits		1.241			1.561			1.130			1.103			1.158			-6.7	%		5.547			4.952			-10.7	%
Withdrawals and deaths		(1.070	)		(0.904	)		(0.874	)		(0.959	)		(1.220	)		-14.0	%		(4.766	)		(3.957	)		17.0	%
Net flows		0.171			0.657			0.256			0.144			(0.062	)	NM				0.781			0.995			27.4	%
Transfers		(0.008	)		(0.016	)		0.010			0.015			-			100.0	%		(0.065	)		0.009			113.8	%
Inter-segment transfer		-			-			-			-			-		NM				0.295			-			-100.0	%
Interest credited and change in market value		(3.858	)		(1.026	)		2.568			2.836			1.042			127.0	%		(8.191	)		5.420			166.2	%
Balance as of End-of-Period	$	28.878		$	28.493		$	31.327		$	34.322		$	35.302			22.2	%	$	28.878		$	35.302			22.2	%

Variable Annuities Under Agreement - Included Above	$	0.008		$	0.007		$	0.008		$	0.009		$	0.009			12.5	%	$	0.008		$	0.009			12.5	%

Incremental Deposits: (5)
Fixed annuities	$	0.361		$	0.407		$	0.327		$	0.305		$	0.298			-17.5	%	$	1.129		$	1.337			18.4	%
Variable annuities		0.398			0.418			0.367			0.387			0.413			3.8	%		2.142			1.585			-26.0	%
Total annuities incremental deposits		0.759			0.825			0.694			0.692			0.711			-6.3	%		3.271			2.922			-10.7	%
Total Alliance mutual funds incremental deposits		0.560			0.734			0.434			0.410			0.446			-20.4	%		2.196			2.024			-7.8	%
Total Incremental Deposits	$	1.319		$	1.559		$	1.128		$	1.102		$	1.157			-12.3	%	$	5.467		$	4.946			-9.5	%

(1)	Includes fixed annuity products offered under our mutual fund products and the fixed portion of variable annuities.
(2)	On 9/30/08, the Lincoln Employee 401(k) Plan transferred from Director to Alliance in the amount of $653 million, of which $100 million transferred within fixed annuities
	and therefore is not depicted on this roll forward.
(3)	Excludes the fixed portion of variable annuities.
(4)	Represents amounts attributable to mutual fund net flows. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance
	Sheets, as we do not have any ownership interest in them.
(5)	Represents gross deposits reduced by transfers from other Lincoln products.

12/31/2009																									PAGE 22
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Total Micro - Small Segment
Balance as of beginning-of-period	$	5.790		$	4.888		$	4.710		$	5.234		$	5.785			-0.1	%	$	7.798		$	4.888			-37.3	%
Gross deposits		0.255			0.306			0.256			0.290			0.305			19.6	%		1.531			1.157			-24.4	%
Withdrawals and deaths		(0.311	)		(0.266	)		(0.268	)		(0.319	)		(0.420	)		-35.0	%		(1.741	)		(1.273	)		26.9	%
Net flows		(0.056	)		0.040			(0.012	)		(0.029	)		(0.115	)	NM				(0.210	)		(0.116	)		44.8	%
Transfers between fixed and variable accounts		0.004			(0.004	)		-			-			0.002			-50.0	%		(0.008	)		(0.002	)		75.0	%
Inter-product transfer (1)		-			-			-			-			-		NM				(0.653	)		-			100.0	%
Investment increase and change in market value		(0.850	)		(0.214	)		0.536			0.580			0.191			122.5	%		(2.039	)		1.093			153.6	%
Balance as of End-of-Period	$	4.888		$	4.710		$	5.234		$	5.785		$	5.863			19.9	%	$	4.888		$	5.863			19.9	%

Total Mid - Large Segment
Balance as of beginning-of-period	$	10.310		$	9.540		$	9.920		$	11.425		$	12.972			25.8	%	$	9.463		$	9.540			0.8	%
Gross deposits		0.729			1.026			0.661			0.617			0.650			-10.8	%		2.933			2.954			0.7	%
Withdrawals and deaths		(0.191	)		(0.233	)		(0.211	)		(0.259	)		(0.407	)	NM				(0.871	)		(1.110	)		-27.4	%
Net flows		0.538			0.793			0.450			0.358			0.243			-54.8	%		2.062			1.844			-10.6	%
Transfers between fixed and variable accounts		(0.011	)		(0.013	)		0.010			0.016			(0.001	)		90.9	%		(0.055	)		0.012			121.8	%
Inter-product transfer (1)		-			-			-			-			-		NM				0.653			-			-100.0	%
Investment increase and change in market value		(1.297	)		(0.400	)		1.045			1.173			0.439			133.8	%		(2.583	)		2.257			187.4	%
Balance as of End-of-Period	$	9.540		$	9.920		$	11.425		$	12.972		$	13.653			43.1	%	$	9.540		$	13.653			43.1	%

Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period	$	16.473		$	14.450		$	13.863		$	14.668		$	15.565			-5.5	%	$	18.797		$	14.450			-23.1	%
Gross deposits		0.257			0.229			0.213			0.196			0.203			-21.0	%		1.083			0.841			-22.3	%
Withdrawals and deaths		(0.568	)		(0.405	)		(0.395	)		(0.381	)		(0.393	)		30.8	%		(2.154	)		(1.574	)		26.9	%
Net flows		(0.311	)		(0.176	)		(0.182	)		(0.185	)		(0.190	)		38.9	%		(1.071	)		(0.733	)		31.6	%
Transfers between fixed and variable accounts		(0.001	)		0.001			-			(0.001	)		(0.001	)		0.0	%		(0.002	)		(0.001	)		50.0	%
Inter-segment transfer		-			-			-			-			-		NM				0.295			-			-100.0	%
Investment increase and change in market value		(1.711	)		(0.412	)		0.987			1.083			0.412			124.1	%		(3.569	)		2.070			158.0	%
Balance as of End-of-Period	$	14.450		$	13.863		$	14.668		$	15.565		$	15.786			9.2	%	$	14.450		$	15.786			9.2	%

Total Annuities and Mutual Funds
Balance as of beginning-of-period	$	32.573		$	28.878		$	28.493		$	31.327		$	34.322			5.4	%	$	36.058		$	28.878			-19.9	%
Gross deposits		1.241			1.561			1.130			1.103			1.158			-6.7	%		5.547			4.952			-10.7	%
Withdrawals and deaths		(1.070	)		(0.904	)		(0.874	)		(0.959	)		(1.220	)		-14.0	%		(4.766	)		(3.957	)		17.0	%
Net flows		0.171			0.657			0.256			0.144			(0.062	)	NM				0.781			0.995			27.4	%
Transfers between fixed and variable accounts		(0.008	)		(0.016	)		0.010			0.015			-			100.0	%		(0.065	)		0.009			113.8	%
Inter-segment transfer		-			-			-			-			-		NM				0.295			-			-100.0	%
Investment increase and change in market value		(3.858	)		(1.026	)		2.568			2.836			1.042			127.0	%		(8.191	)		5.420			166.2	%
Balance as of End-of-Period (2)	$	28.878		$	28.493		$	31.327		$	34.322		$	35.302			22.2	%	$	28.878		$	35.302			22.2	%

(1)	On 9/30/08, the Lincoln Employee 401(k) Plan transferred from Director to Alliance in the amount of $653 million.
(2)	Includes mutual fund account values. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance Sheets,
	as we do not have any ownership interest in them.

12/31/2009																									PAGE 23
Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.189		$	0.316		$	0.244		$	0.227		$	0.224			18.5	%	$	0.812		$	1.011			24.5	%
Withdrawals and deaths		(0.016	)		(0.185	)		(0.132	)		(0.149	)		(0.201	)	NM				(0.557	)		(0.667	)		-19.7	%
Net flows	$	0.173		$	0.131		$	0.112		$	0.078		$	0.023			-86.7	%	$	0.255		$	0.344			34.9	%

Fixed Contract Account Values	$	5.601		$	5.773		$	5.879		$	6.030		$	6.139			9.6	%	$	5.601		$	6.139			9.6	%

Fixed Portion of Variable Contracts
Deposits	$	0.090		$	0.093		$	0.084		$	0.079		$	0.075			-16.7	%	$	0.369		$	0.331			-10.3	%
Withdrawals and deaths		(0.371	)		(0.198	)		(0.194	)		(0.178	)		(0.167	)		55.0	%		(0.991	)		(0.737	)		25.6	%
Net flows	$	(0.281	)	$	(0.105	)	$	(0.110	)	$	(0.099	)	$	(0.092	)		67.3	%	$	(0.622	)	$	(0.406	)		34.7	%

Fixed Portion of Variable Contract Account Values	$	6.037		$	6.150		$	6.191		$	6.128		$	6.107			1.2	%	$	6.037		$	6.107			1.2	%

Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	0.493		$	0.511		$	0.452		$	0.466		$	0.488			-1.0	%	$	2.538		$	1.917			-24.5	%
Withdrawals and deaths		(0.877	)		(0.610	)		(0.610	)		(0.649	)		(0.756	)		13.8	%		(3.698	)		(2.625	)		29.0	%
Net flows	$	(0.384	)	$	(0.099	)	$	(0.158	)	$	(0.183	)	$	(0.268	)		30.2	%	$	(1.160	)	$	(0.708	)		39.0	%

Variable Contract Account Values	$	16.625		$	15.872		$	17.293		$	18.748		$	19.060			14.6	%	$	16.625		$	19.060			14.6	%

Average Daily Variable Annuity Separate Account Values	$	10.666		$	9.846		$	10.768		$	11.881		$	12.726			19.3	%	$	14.935		$	11.315			-24.2	%

																(Basis Point)									(Basis Point)
Interest Rate Spread (1)																Change									Change

Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (2)		5.84	%		5.70	%		5.79	%		5.85	%		5.72	%		(12	)		5.89	%		5.76	%		(13	)
Commercial mortgage loan prepayment and bond make whole premiums		0.00	%		0.00	%		0.01	%		0.08	%		0.08	%		8			0.06	%		0.04	%		(2	)
Alternative investments		-0.14	%		-0.01	%		-0.02	%		0.03	%		0.02	%		16			-0.05	%		0.01	%		6
Net investment income yield on reserves		5.70	%		5.69	%		5.78	%		5.96	%		5.82	%		12			5.90	%		5.81	%		(9	)
Interest rate credited to contract holders		3.79	%		3.78	%		3.73	%		3.66	%		3.63	%		(16	)		3.79	%		3.70	%		(9	)
Interest rate spread		1.91	%		1.91	%		2.05	%		2.30	%		2.19	%		28			2.11	%		2.11	%		-

(1)

For the annuity products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average invested

assets on reserves. We exclude net investment income earned on investments supporting statutory surplus from our spread calculations. The average crediting rate is

calculated as interest credited before DSI amortization, plus the immediate annuity reserve change (included within benefits), divided by the average fixed account

values, including the fixed portion of variable annuities.

(2)

Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets.

The increased cash and short-term investment balances for the three months ended March 2009, June 2009, September 2009, December 2009 and the year ended

December 2009 reduced our yields by approximately 16 bps, 18 bps, 11 bps, 6 bps and 13 bps, respectively.

12/31/2009																												PAGE 24
Insurance Solutions - Life Insurance
Income Statements, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Operating Revenues
Insurance premiums	$	93.6		$	90.5		$	93.3		$	93.5		$	115.2			23.1	%	$	360.4		$	392.5			8.9	%
Surrender charges		18.1			21.6			26.7			32.8			30.5			68.5	%		70.2			111.6			59.0	%
Mortality assessments		339.1			344.1			320.0			317.1			317.6			-6.3	%		1,320.4			1,298.8			-1.6	%
Expense assessments		137.6			116.5			103.0			144.1			127.4			-7.4	%		489.9			491.0			0.2	%
Net investment income		446.9			497.7			453.3			495.3			528.2			18.2	%		1,987.8			1,974.5			-0.7	%
Amortization of deferred loss on business sold throughreinsurance		-			-			(0.7	)		(0.7	)		1.4		NM				-			-		NM
Other revenues and fees		7.5			5.8			6.6			7.0			5.6			-25.3	%		30.5			25.0			-18.0	%
Total Operating Revenues		1,042.8			1,076.2			1,002.2			1,089.1			1,125.9			8.0	%		4,259.2			4,293.4			0.8	%

Operating Expenses
Interest credited		300.7			302.8			290.8			292.9			297.7			-1.0	%		1,202.5			1,184.2			-1.5	%
Benefits		365.9			355.7			323.0			320.7			374.6			2.4	%		1,372.0			1,374.0			0.1	%
Underwriting, acquisition, insurance and other expenses		255.7			224.0			191.7			283.9			221.5			-13.4	%		876.6			921.1			5.1	%
Total Operating Expenses		922.3			882.5			805.5			897.5			893.8			-3.1	%		3,451.1			3,479.3			0.8	%

Income from operations before federal income tax expense		120.5			193.7			196.7			191.6			232.1			92.6	%		808.1			814.1			0.7	%
Federal income tax expense		38.0			51.5			63.8			55.1			74.5			96.1	%		267.3			244.9			-8.4	%
Income from Operations	$	82.5		$	142.2		$	132.9		$	136.5		$	157.6			91.0	%	$	540.8		$	569.2			5.3	%

Effective Tax Rate		31.5	%		26.6	%		32.4	%		28.8	%		32.1	%					33.1	%		30.1	%

Average Equity	$	8,263.8		$	8,235.3		$	7,980.9		$	8,053.3		$	8,148.8					$	8,166.5		$	8,104.6
Return on Average Equity		4.0	%		6.9	%		6.7	%		6.8	%		7.7	%					6.6	%		7.0	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	210.5		$	176.9		$	141.9		$	159.0		$	197.8			-6.0	%	$	794.7		$	675.6			-15.0	%
General and administrative expenses		116.0			110.2			109.5			112.5			122.4			5.5	%		424.0			454.6			7.2	%
Taxes, licenses and fees		25.0			33.3			22.9			30.7			28.5			14.0	%		119.7			115.4			-3.6	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%		4.0			4.0			0.0	%
Total commissions and expenses incurred		352.5			321.4			275.3			303.2			349.7			-0.8	%		1,342.4			1,249.6			-6.9	%
Less: commissions and expenses capitalized		(272.5	)		(224.5	)		(197.5	)		(213.4	)		(264.2	)		3.0	%		(1,016.3	)		(899.6	)		11.5	%
Amortization of DAC and VOBA, net of interest		175.7			127.1			113.9			194.1			136.0			-22.6	%		550.5			571.1			3.7	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	255.7		$	224.0		$	191.7		$	283.9		$	221.5			-13.4	%	$	876.6		$	921.1			5.1	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized		145			139			144			145			155			10			131			141			10

DAC and VOBA
Balance as of beginning-of-period	$	6,947.8		$	7,383.5		$	7,265.0		$	6,830.9		$	6,173.4					$	5,691.7		$	7,383.5
Business sold through reinsurance		-			(292.9	)		-			-			-						-			(292.9	)
Deferrals		272.5			224.5			197.5			213.4			264.2						1,016.3			899.6
Amortization, net of interest:
Unlocking		(84.0	)		(12.6	)		(5.5	)		(52.8	)		(3.7	)					(55.6	)		(74.6	)
Other amortization, net of interest, excluding unlocking		(91.7	)		(114.5	)		(108.4	)		(141.3	)		(132.3	)					(494.9	)		(496.5	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		96.8			97.4			83.6			19.3			128.2						465.8			328.5
Adjustment related to realized losses		76.3			20.0			41.1			1.7			38.3						147.1			101.1
Adjustment related to unrealized (gains) losses		262.6			57.0			(558.8	)		(678.5	)		72.1						1,078.9			(1,108.2	)
Balance as of End-of-Period	$	7,383.5		$	7,265.0		$	6,830.9		$	6,173.4		$	6,412.0					$	7,383.5		$	6,412.0

DFEL
Balance as of beginning-of-period	$	840.2		$	888.7		$	941.4		$	1,014.0		$	1,057.8					$	672.6		$	888.7
Business sold through reinsurance		-			(11.0	)		-			-			-						-			(11.0	)
Deferrals		102.6			96.9			100.3			108.2			133.8						378.5			439.2
Amortization, net of interest:
Unlocking		(24.0	)		(2.9	)		(0.7	)		(27.9	)		(3.0	)					(22.0	)		(34.5	)
Other amortization, net of interest, excluding unlocking		(30.1	)		(32.1	)		(29.6	)		(37.7	)		(36.0	)					(140.4	)		(135.4	)
Deferrals, net of amortization included in operating expense assessments		48.5			61.9			70.0			42.6			94.8						216.1			269.3
Adjustment related to realized losses		-			0.9			2.4			0.3			3.1						-			6.7
Adjustment related to unrealized gains (losses)		-			0.9			0.2			0.9			(0.5	)					-			1.5
Balance as of End-of-Period	$	888.7		$	941.4		$	1,014.0		$	1,057.8		$	1,155.2					$	888.7		$	1,155.2

12/31/2009																									PAGE 25
Insurance Solutions - Life Insurance
Operational Data and Account Value Roll Forwards
Unaudited (billions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®	$	142.7		$	102.7		$	84.9		$	91.0		$	117.7			-17.5	%	$	524.8		$	396.3			-24.5	%
MoneyGuard®		12.8			11.0			14.3			18.4			23.3			82.0	%		49.9			67.0			34.3	%
Total		155.5			113.7			99.2			109.4			141.0			-9.3	%		574.7			463.3			-19.4	%
VUL		14.6			9.0			7.1			6.7			13.3			-8.9	%		53.9			36.1			-33.0	%
COLI and BOLI (1)		30.7			11.7			4.7			14.4			20.7			-32.6	%		84.4		��	51.5			-39.0	%
Term/Whole Life		10.6			10.8			12.7			15.7			19.8			86.8	%		28.0			59.0			110.7	%
Total	$	211.4		$	145.2		$	123.7		$	146.2		$	194.8			-7.9	%	$	741.0		$	609.9			-17.7	%

First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®	$	287.4		$	230.5		$	216.2		$	238.3		$	329.5			14.6	%	$	1,057.5		$	1,014.5			-4.1	%
MoneyGuard®		85.1			73.1			94.9			122.1			154.4			81.4	%		332.8			444.5			33.6	%
Total		372.5			303.6			311.1			360.4			483.9			29.9	%		1,390.3			1,459.0			4.9	%
VUL		34.2			25.2			20.1			10.2			38.6			12.9	%		131.1			94.1			-28.2	%
COLI and BOLI (1)		82.2			52.0			16.1			33.8			46.9			-42.9	%		196.4			148.8			-24.2	%
Term/Whole Life		29.5			18.8			23.0			28.2			37.3			26.4	%		79.9			107.3			34.3	%
Total	$	518.4		$	399.6		$	370.3		$	432.6		$	606.7			17.0	%	$	1,797.7		$	1,809.2			0.6	%

Life Insurance In Force
UL and other	$	310.198		$	288.826		$	288.632		$	289.124		$	291.879			-5.9	%	$	310.198		$	291.879			-5.9	%
Term insurance		235.023			236.408			238.901			242.889			248.726			5.8	%		235.023			248.726			5.8	%
Total	$	545.221		$	525.234		$	527.533		$	532.013		$	540.605			-0.8	%	$	545.221		$	540.605			-0.8	%

Interest-Sensitive Life
Balance as of beginning-of-period	$	27.227		$	27.502		$	27.617		$	27.709		$	27.825			2.2	%	$	26.518		$	27.502			3.7	%
Deposits		0.951			0.815			0.840			0.899			1.067			12.2	%		3.565			3.621			1.6	%
Withdrawals and deaths		(0.325	)		(0.358	)		(0.391	)		(0.417	)		(0.296	)		8.9	%		(1.306	)		(1.462	)		-11.9	%
Net flows		0.626			0.457			0.449			0.482			0.771			23.2	%		2.259			2.159			-4.4	%
Contract holder assessments		(0.639	)		(0.631	)		(0.645	)		(0.657	)		(0.698	)		-9.2	%		(2.421	)		(2.631	)		-8.7	%
Interest credited		0.288			0.289			0.288			0.291			0.294			2.1	%		1.146			1.162			1.4	%
Balance as of End-of-Period (Gross) (2)		27.502			27.617			27.709			27.825			28.192			2.5	%		27.502			28.192			2.5	%
Reinsurance ceded		-			(0.938	)		(0.930	)		(0.923	)		(0.917	)	NM				-			(0.917	)	NM
Balance as of End-of-Period (Net of Ceded) (2)	$	27.502		$	26.679		$	26.779		$	26.902		$	27.275			-0.8	%	$	27.502		$	27.275			-0.8	%

VUL
Balance as of beginning-of-period	$	5.056		$	4.251		$	3.992		$	4.562		$	5.176			2.4	%	$	6.040		$	4.251			-29.6	%
Deposits		0.266			0.243			0.180			0.174			0.233			-12.4	%		0.928			0.830			-10.6	%
Withdrawals and deaths		(0.088	)		(0.143	)		(0.089	)		(0.095	)		(0.243	)	NM				(0.365	)		(0.570	)		-56.2	%
Net flows		0.178			0.100			0.091			0.079			(0.010	)	NM				0.563			0.260			-53.8	%
Contract holder assessments		(0.092	)		(0.094	)		(0.088	)		(0.091	)		(0.092	)		0.0	%		(0.370	)		(0.365	)		1.4	%
Investment income and change in market value		(0.891	)		(0.265	)		0.567			0.626			0.213			123.9	%		(1.982	)		1.141			157.6	%
Balance as of End-of-Period (Gross)		4.251			3.992			4.562			5.176			5.287			24.4	%		4.251			5.287			24.4	%
Reinsurance ceded		-			(0.640	)		(0.719	)		(0.807	)		(0.820	)	NM				-			(0.820	)	NM
Balance as of End-of-Period (Net of Ceded)	$	4.251		$	3.352		$	3.843		$	4.369		$	4.467			5.1	%	$	4.251		$	4.467			5.1	%

Total Life Insurance
Balance as of beginning-of-period	$	32.283		$	31.753		$	31.609		$	32.271		$	33.001			2.2	%	$	32.558		$	31.753			-2.5	%
Deposits		1.217			1.058			1.020			1.073			1.300			6.8	%		4.493			4.451			-0.9	%
Withdrawals and deaths		(0.413	)		(0.501	)		(0.480	)		(0.512	)		(0.539	)		-30.5	%		(1.671	)		(2.032	)		-21.6	%
Net flows		0.804			0.557			0.540			0.561			0.761			-5.3	%		2.822			2.419			-14.3	%
Contract holder assessments		(0.731	)		(0.725	)		(0.733	)		(0.748	)		(0.790	)		-8.1	%		(2.791	)		(2.996	)		-7.3	%
Investment income and change in market value		(0.603	)		0.024			0.855			0.917			0.507			184.1	%		(0.836	)		2.303		NM
Balance as of End-of-Period (Gross)		31.753			31.609			32.271			33.001			33.479			5.4	%		31.753			33.479			5.4	%
Reinsurance ceded		-			(1.578	)		(1.649	)		(1.730	)		(1.737	)	NM				-			(1.737	)	NM
Balance as of End-of-Period (Net of Ceded)	$	31.753		$	30.031		$	30.622		$	31.271		$	31.742			0.0	%	$	31.753		$	31.742			0.0	%

																(Basis Point)									(Basis Point)
Interest-Sensitive Products Interest Rate Spreads(3)																Change									Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (4)		5.86	%		5.83	%		6.03	%		5.97	%		5.88	%		2			5.91	%		5.93	%		2
Commercial mortgage loan prepayment and bond make whole premiums		0.01	%		0.00	%		0.06	%		0.04	%		0.07	%		6			0.05	%		0.04	%		(1	)
Alternative investments		-0.65	%		-0.06	%		-0.71	%		-0.29	%		0.05	%		70			-0.03	%		-0.25	%		(22	)
Net investment income yield on reserves		5.22	%		5.77	%		5.38	%		5.72	%		6.00	%		78			5.93	%		5.72	%		(21	)
Interest rate credited to contract holders		4.25	%		4.25	%		4.20	%		4.22	%		4.25	%		-			4.33	%		4.23	%		(10	)
Interest rate spread		0.97	%		1.52	%		1.18	%		1.50	%		1.75	%		78			1.60	%		1.49	%		(11	)

Traditional Products Interest Rate Spreads(5)
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses		6.10	%		6.00	%		5.96	%		5.98	%		6.01	%		(9	)		6.13	%		5.99	%		(14	)
Commercial mortgage loan prepayment and bond make whole premiums		0.00	%		0.01	%		0.01	%		0.01	%		0.00	%		-			0.03	%		0.01	%		(2	)
Alternative investments		-0.08	%		-0.01	%		-0.01	%		0.02	%		0.01	%		9			-0.03	%		0.00	%		3
Net investment income yield on reserves		6.02	%		6.00	%		5.96	%		6.01	%		6.02	%		-			6.13	%		6.00	%		(13	)

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.
(3)	For the interest-sensitive life products spread, the yield on earning assets is calculated as net investment income on fixed product investment portfolios divided by average earning assets. We exclude net investment income earned on investments supporting statutory surplus and reverse repurchase agreement interest expense from our yield and spread calculations. The average crediting rate is calculated using interest credited on life products divided by average fixed account values.
(4)	Our yields on net investment income have been lowered due to holding higher cash balances related to our short-term liquidity strategy during recent volatile markets. The increased cash and short-term investment balances for the three months ended March 2009, September 2009, December 2009 and the year ended December 2009 reduced our yields by approximately 11 bps, 4 bps, 13 bps and 8 bps, respectively. There was no impact for the three months ended June 2009.
(5)	For the traditional life products, the yield on earning assets is calculated as net investment income on traditional investment portfolios divided by average earning assets. As of
	December 31, 2009, interest-sensitive products represented approximately 86% of total interest-sensitive and traditional earning assets.

12/31/2009																									PAGE 26
Insurance Solutions - Group Protection
Income Statements and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change
Operating Revenues
Insurance premiums	$	382.9		$	389.8		$	413.3		$	379.5		$	396.4			3.5	%	$	1,516.9		$	1,579.0			4.1	%
Mortality assessments		0.1			-			-			0.1			-			-100.0	%		0.1			0.1			0.0	%
Net investment income		28.2			30.1			28.1			33.5			35.7			26.6	%		117.2			127.4			8.7	%
Other revenues and fees		1.3			1.5			1.5			1.5			1.5			15.4	%		5.4			6.0			11.1	%
Total Operating Revenues		412.5			421.4			442.9			414.6			433.6			5.1	%		1,639.6			1,712.5			4.4	%

Operating Expenses
Interest credited		0.6			0.6			0.5			0.5			0.7			16.7	%		1.6			2.3			0.4
Benefits		283.1			282.0			292.7			261.6			281.1			-0.7	%		1,106.7			1,117.4			1.0	%
Underwriting, acquisition, insurance and other expenses		100.4			99.3			98.0			99.3			105.4			5.0	%		371.1			402.0			8.3	%
Total Operating Expenses		384.1			381.9			391.2			361.4			387.2			0.8	%		1,479.4			1,521.7			2.9	%

Income from operations before federal income tax expense		28.4			39.5			51.7			53.2			46.4			63.4	%		160.2			190.8			19.1	%
Federal income tax expense		10.0			13.8			18.1			18.7			16.3			63.0	%		56.1			66.9			19.3	%
Income from Operations	$	18.4		$	25.7		$	33.6		$	34.5		$	30.1			63.6	%	$	104.1		$	123.9			19.0	%

Effective Tax Rate		35.2	%		34.9	%		35.0	%		35.2	%		35.1	%					35.0	%		35.1	%

Average Equity	$	1,002.3		$	1,014.7		$	1,047.5		$	1,056.8		$	1,061.7					$	991.1		$	1,045.2
Return on Average Equity		7.3	%		10.1	%		12.8	%		13.1	%		11.3	%					10.5	%		11.9	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions (1)	$	44.7		$	44.2		$	43.6		$	43.3		$	44.5			-0.4	%	$	167.6		$	175.6			4.8	%
General and administrative expenses (1)		53.9			47.4			48.2			48.1			60.0			11.3	%		187.4			203.7			8.7	%
Taxes, licenses and fees		10.6			10.5			7.3			9.3			9.1			-14.2	%		38.6			36.2			-6.2	%
Total commissions and expenses incurred		109.2			102.1			99.1			100.7			113.6			4.0	%		393.6			415.5			5.6	%
Less: commissions and expenses capitalized		(18.5	)		(13.2	)		(12.5	)		(12.8	)		(20.8	)		-12.4	%		(58.3	)		(59.3	)		-1.7	%
Amortization of DAC and VOBA, net of interest		9.7			10.4			11.4			11.4			12.6			29.9	%		35.8			45.8			27.9	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	100.4		$	99.3		$	98.0		$	99.3		$	105.4			5.0	%	$	371.1		$	402.0			8.3	%

General and Administrative Expenses as a
Percentage of Premiums (1)		14.1	%		12.2	%		11.7	%		12.7	%		15.1	%					12.4	%		12.9	%

DAC and VOBA
Balance as of beginning-of-period	$	137.1		$	145.9		$	148.7		$	149.8		$	151.2					$	123.4		$	145.9
Deferrals		18.5			13.2			12.5			12.8			20.9						58.3			59.4
Amortization, net of interest		(9.7	)		(10.4	)		(11.4	)		(11.4	)		(12.6	)					(35.8	)		(45.8	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		8.8			2.8			1.1			1.4			8.3						22.5			13.6
Balance as of End-of-Period	$	145.9		$	148.7		$	149.8		$	151.2		$	159.5					$	145.9		$	159.5

Annualized Sales by Product Line
Life	$	49.9		$	22.7		$	21.1		$	31.4		$	67.2			34.7	%	$	125.2		$	142.4			13.7	%
Disability		63.6			23.5			29.3			38.5			78.3			23.1	%		148.2			169.6			14.4	%
Dental		15.5			8.1			9.1			9.9			21.3			37.4	%		42.7			48.4			13.3	%
Total	$	129.0		$	54.3		$	59.5		$	79.8		$	166.8			29.3	%	$	316.1		$	360.4			14.0	%

Insurance Premiums by Product Line
Life	$	138.8		$	142.4		$	147.4		$	142.2		$	152.1			9.6	%	$	541.2		$	584.1			7.9	%
Disability		173.1			174.0			171.1			173.0			174.1			0.6	%		671.7			692.2			3.1	%
Dental		37.9			37.5			37.2			36.2			37.7			-0.5	%		149.8			148.6			-0.8	%
Other		33.1			35.9			57.6			28.1			32.5			-1.8	%		154.2			154.1			-0.1	%
Total	$	382.9		$	389.8		$	413.3		$	379.5		$	396.4			3.5	%	$	1,516.9		$	1,579.0			4.1	%

Income from Operations by Product Line
Life	$	3.8		$	0.6		$	12.5		$	16.0		$	13.3			250.0	%	$	34.2		$	42.4			24.0	%
Disability		13.1			25.3			20.7			17.3			15.6			19.1	%		64.4			78.9			22.5	%
Dental		0.8			(1.1	)		(1.5	)		(0.6	)		1.1			37.5	%		1.3			(2.1	)	NM
Other		0.7			0.9			1.9			1.8			0.1			-85.7	%		4.2			4.7			11.9	%
Total	$	18.4		$	25.7		$	33.6		$	34.5		$	30.1			63.6	%	$	104.1		$	123.9			19.0	%

Loss Ratios by Product Line
Life		77.3	%		81.6	%		70.3	%		66.6	%		69.6	%					73.9	%		72.0	%
Disability		68.7	%		59.1	%		62.4	%		66.8	%		67.5	%					67.9	%		64.0	%
Dental		75.6	%		84.2	%		86.1	%		79.7	%		76.6	%					78.3	%		81.7	%
Combined Loss Ratios		72.8	%		70.8	%		68.2	%		68.1	%		69.3	%					71.4	%		69.1	%

(1)

Prior periods reflect a reclassification to general and administrative expenses from commissions for approximately $2.5 million a quarter as third party administrative fees were

incorrectly reflected as commissions.

12/31/2009																									PAGE 27
Other Operations
Unaudited (in millions)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change

Operating Revenues
Insurance premiums	$	0.3		$	0.8		$	2.7		$	0.1		$	0.4			33.3	%	$	4.0		$	4.0			0.0	%
Net investment income		81.8			69.7			69.8			81.1			86.5			5.7	%		358.4			307.1			-14.3	%
Amortization of deferred gain on business sold through reinsurance (1)		18.4			18.4			18.4			18.3			18.3			-0.5	%		73.7			73.4			-0.4	%
Other revenues and fees		1.7			1.7			5.4			2.9			4.5			164.7	%		12.5			14.5			16.0	%
Communications revenues		19.4			14.8			19.1			17.2			16.7			-13.9	%		85.5			67.8			-20.7	%
Total Operating Revenues		121.6			105.4			115.4			119.6			126.4			3.9	%		534.1			466.8			-12.6	%

Operating Expenses
Interest credited		40.7			50.9			31.4			32.9			32.8			-19.4	%		170.9			148.0			-13.4	%
Benefits		25.6			106.6			36.0			36.0			79.0			208.6	%		113.2			257.6			127.6	%
Underwriting, acquisition, insurance and other expenses		47.1			35.0			56.8			24.3			27.5			-41.6	%		173.5			143.6			-17.2	%
Taxes, licenses and fees		1.6			1.5			3.1			(0.9	)		(20.2	)	NM				7.4			(16.5	)	NM
Interest and debt expenses		72.3			64.7			60.9			68.0			68.1			-5.8	%		281.1			261.7			-6.9	%
Communications expenses		14.7			12.9			13.5			13.3			12.9			-12.2	%		59.8			52.6			-12.0	%
Total Operating Expenses		202.0			271.6			201.7			173.6			200.1			-0.9	%		805.9			847.0			5.1	%

Loss from operations before federal income tax benefit		(80.4	)		(166.2	)		(86.3	)		(54.0	)		(73.7	)		8.3	%		(271.8	)		(380.2	)		-39.9	%
Federal income tax benefit		(25.2	)		(57.7	)		(34.0	)		(21.4	)		(30.2	)		-19.8	%		(89.3	)		(143.3	)		-60.5	%
Loss From Operations	$	(55.2	)	$	(108.5	)	$	(52.3	)	$	(32.6	)	$	(43.5	)		21.2	%	$	(182.5	)	$	(236.9	)		-29.8	%

Run Off Institutional Pensions Account Values -
Balance at End-of-Period	$	1.941		$	1.931		$	1.928		$	1.931		$	1.911			-1.5	%	$	1.941		$	1.911			-1.5	%


	Discontinued Operations
	Unaudited (in millions)

		For the Three Months Ended																For the Years Ended
		Dec.			March		June			Sept.			Dec.		%			Dec.			Dec.			%
			2008			2009		2009			2009			2009	Change				2008			2009		Change

Discontinued Operations Before Disposal
Income from discontinued operations before federal income tax expense		$	(4.0	)	$	13.2	$	27.0		$	27.3		$	7.2		280.0	%	$	118.6		$	74.7			-37.0	%
Federal income tax expense			(1.2	)		5.5		10.8			10.3			4.1	NM				42.6			30.7			-27.9	%
Income (Loss) From Discontinued Operations Before Disposal			(2.8	)		7.7		16.2			17.0			3.1		210.7	%		76.0			44.0			-42.1	%

Disposal
Gain (loss) on disposal before federal income tax expense (benefit)			0.6			-		(237.0	)		16.7			1.0		66.7	%		(12.2	)		(219.3	)	NM
Federal income tax expense (benefit)			0.2			-		(67.0	)		(38.3	)		-		-100.0	%		(2.4	)		(105.3	)	NM
Gain (Loss) on Disposal			0.4			-		(170.0	)		55.0			1.0		150.0	%		(9.8	)		(114.0	)	NM
Income (Loss) From Discontinued Operations		$	(2.4	)	$	7.7	$	(153.8	)	$	72.0		$	4.1		270.8	%	$	66.2		$	(70.0	)	NM

(1)

Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.

12/31/2009																		PAGE 28
Consolidated Deposits, Account Balances and Net Flows
Unaudited (in billions)

	For the Three Months Ended													For the Years Ended
	Dec.		March		June		Sept.		Dec.		%			Dec.		Dec.		%
	2008		2009		2009		2009		2009		Change			2008		2009		Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)	$	1.233	$	1.361	$	1.774	$	2.025	$	1.195		-3.1	%	$	5.040	$	6.355		26.1	%
Defined Contribution - fixed annuities		0.279		0.409		0.328		0.306		0.299		7.2	%		1.181		1.342		13.6	%
Annuities - variable annuities		1.087		0.827		0.851		1.063		1.266		16.5	%		6.690		4.007		-40.1	%
Defined Contribution - variable products (2)		0.962		1.152		0.802		0.797		0.859		-10.7	%		4.366		3.610		-17.3	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.951		0.815		0.840		0.899		1.067		12.2	%		3.565		3.621		1.6	%
VUL		0.266		0.243		0.180		0.174		0.233		-12.4	%		0.928		0.830		-10.6	%
Total Deposits		4.778		4.807		4.775		5.264		4.919		3.0	%		21.770		19.765		-9.2	%


	As of
	Dec.		March		June		Sept.		Dec.		%
		2008		2009		2009		2009		2009	Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)	$	16.530	$	16.760	$	17.531	$	18.717	$	18.913		14.4	%
Defined Contribution - fixed annuities		11.638		11.924		12.070		12.158		12.246		5.2	%
Annuities - variable annuities		40.925		39.301		45.523		52.429		55.368		35.3	%
Defined Contribution - variable products (2)		17.240		16.569		19.257		22.164		23.056		33.7	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		27.502		26.679		26.779		26.902		27.275		-0.8	%
VUL		4.251		3.352		3.843		4.369		4.467		5.1	%
Total Account Balances		118.086		114.585		125.003		136.739		141.325		19.7	%


	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
		2008			2009			2009			2009			2009		Change				2008			2009		Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)	$	0.397		$	0.596		$	1.128		$	1.524		$	0.672			69.3	%	$	2.212		$	3.920			77.2	%
Defined Contribution - fixed annuities		(0.108	)		0.026			0.002			(0.021	)		(0.069	)		36.1	%		(0.367	)		(0.062	)		83.1	%
Annuities - variable annuities		(0.021	)		(0.166	)		(0.093	)		0.086			0.146		NM				1.876			(0.027	)	NM
Defined Contribution - variable products (2)		0.279			0.631			0.254			0.165			0.007			-97.5	%		1.148			1.057			-7.9	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life		0.626			0.457			0.449			0.482			0.771			23.2	%		2.259			2.159			-4.4	%
VUL		0.178			0.100			0.091			0.079			(0.010	)	NM				0.563			0.260			-53.8	%
Total Net Flows		1.351			1.644			1.831			2.315			1.517			12.3	%		7.691			7.307			-5.0	%


(1)	Includes fixed portion of variable annuities.
(2)	Includes amounts attributable to mutual fund net flows. Mutual fund account values are not included in the separate accounts reported on our Consolidated Balance
	Sheets, as we do not have any ownership interest in them.

12/31/2009																												PAGE 29
Consolidated Investment Data
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Years Ended
	Dec.			March			June			Sept.			Dec.			%			Dec.			Dec.			%
	2008			2009			2009			2009			2009			Change			2008			2009			Change

Net Investment Income
Available-for-sale fixed maturity securities	$	827.5		$	824.9		$	854.6		$	904.7		$	903.4			9.2	%	$	3,348.1		$	3,487.6			4.2	%
Available-for-sale equity securities		4.8			1.7			1.8			1.8			2.2			-54.2	%		26.4			7.5			-71.6	%
Trading securities		40.3			39.6			39.0			40.0			40.2			-0.2	%		165.9			158.8			-4.3	%
Mortgage loans on real estate		122.1			119.2			120.0			114.2			118.2			-3.2	%		493.5			471.6			-4.4	%
Real estate		4.7			3.8			3.5			3.6			8.1			72.3	%		23.0			19.0			-17.4	%
Policy loans		45.3			44.3			42.2			41.9			43.2			-4.6	%		179.0			171.6			-4.1	%
Invested cash		13.8			8.3			4.1			1.0			1.6			-88.4	%		52.4			15.0			-71.4	%
Other investments		(68.4	)		(2.2	)		(67.4	)		(6.7	)		36.5			153.4	%		(32.8	)		(39.8	)		-21.3	%
Investment income		990.1			1,039.6			997.8			1,100.5			1,153.4			16.5	%		4,255.5			4,291.3			0.8	%
Investment expense		(30.0	)		(26.3	)		(27.2	)		(29.2	)		(31.1	)		-3.7	%		(125.4	)		(113.8	)		9.3	%
Net Investment Income	$	960.1		$	1,013.3		$	970.6		$	1,071.3		$	1,122.3			16.9	%	$	4,130.1		$	4,177.5			1.1	%

Average Invested Assets (Amortized Cost)	$	69,731.7		$	69,583.2		$	71,331.0		$	73,791.1		$	74,731.7					$	70,023.9		$	72,359.2

Ratio of Net Investment Income Over Average Invested Assets		5.51	%		5.82	%		5.44	%		5.81	%		6.01	%					5.90	%		5.77	%

Realized Loss Related to Investments
Available-for-sale fixed maturity securities:
Gross gains	$	16.1		$	53.7		$	32.8		$	23.4		$	51.5			219.9	%	$	60.1		$	161.4			168.6	%
Gross losses		(527.1	)		(241.3	)		(172.1	)		(165.9	)		(129.3	)		75.5	%		(1,118.7	)		(708.6	)		36.7	%
Equity securities:
Gross gains		-			3.1			0.5			0.5			1.5		NM				1.1			5.6		NM
Gross losses		(131.5	)		(2.6	)		(6.0	)		(7.8	)		(10.9	)		91.7	%		(163.3	)		(27.3	)		83.3	%
Gain (loss) on other investments		8.5			(2.1	)		(57.9	)		1.6			(72.0	)	NM				37.4			(130.4	)	NM
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds and funds withheld reinsurance liabilities		117.4			55.6			48.4			24.7			32.6			-72.2	%		256.4			161.3			-37.1	%
Total realized loss on investments, excluding trading securities		(516.6	)		(133.6	)		(154.3	)		(123.5	)		(126.6	)		75.5	%		(927.0	)		(538.0	)		42.0	%
Loss on certain derivative instruments		(50.1	)		(16.5	)		(4.0	)		(12.1	)		(1.5	)		97.0	%		(112.1	)		(34.1	)		69.6	%
Total, pre-tax		(566.7	)		(150.1	)		(158.3	)		(135.6	)		(128.1	)		77.4	%		(1,039.1	)		(572.1	)		44.9	%
Income taxes		(198.4	)		(52.5	)		(55.4	)		(47.6	)		(44.8	)		77.4	%		(363.7	)		(200.3	)		44.9	%
Total, After-Tax	$	(368.3	)	$	(97.6	)	$	(102.9	)	$	(88.0	)	$	(83.3	)		77.4	%	$	(675.4	)	$	(371.8	)		45.0	%


	As of December 31, 2009					As of December 31, 2008
	Amount		% of Total			Amount		% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)	$	63,320.8		99.6	%	$	50,471.6		99.5	%
Fixed maturity securities (amortized cost)		63,097.0		99.4	%		56,686.3		99.2	%

Equity securities (fair value)		280.5		0.4	%		255.6		0.5	%
Equity securities (amortized cost)		383.7		0.6	%		429.8		0.8	%

% of Available-for-Sale Fixed Maturity Securities, Based on Fair Value
Treasuries and AAA				19.3	%				24.5	%
AA or better				27.3	%				30.9	%
BB or less				6.9	%				4.5	%


General Account Investments	As of December 31, 2009					As of December 31, 2008
	Amount		% of Total			Amount		% of Total
Fixed Maturities - Security Sector:
Corporate bonds	$	45,860.3		75.4	%	$	36,055.6		74.9	%
U.S. Government bonds		194.2		0.3	%		245.9		0.5	%
Foreign government bonds		504.9		0.8	%		520.8		1.1	%
Mortgage-backed securities		11,103.3		18.3	%		10,129.6		21.0	%
State and municipal bonds		1,967.6		3.2	%		226.4		0.5	%
Preferred stocks - redeemable		1,188.0		2.0	%		962.3		2.0	%
Total	$	60,818.3		100.0	%	$	48,140.6		100.0	%


	As of
	Dec.		March		June		Sept.		Dec.		%
Composition of Investment Portfolio	2008		2009		2009		2009		2009		Change
Available-for-sale securities, at fair value:
Fixed maturity	$	48,140.6	$	48,535.5	$	55,049.8	$	60,666.2	$	60,818.3		26.3	%
Equity		254.1		175.7		236.3		283.0		278.4		9.6	%
Trading securities		2,332.5		2,245.6		2,316.7		2,547.9		2,504.6		7.4	%
Mortgage loans on real estate and real estate		7,840.6		7,745.1		7,627.5		7,431.0		7,351.6		-6.2	%
Policy loans		2,921.1		2,905.6		2,896.9		2,893.0		2,897.8		-0.8	%
Derivative investments		3,397.2		2,226.1		1,233.8		1,282.0		1,010.1		-70.3	%
Other investments		1,624.1		1,476.2		1,187.1		1,079.6		1,057.2		-34.9	%
Total	$	66,510.2	$	65,309.8	$	70,548.1	$	76,182.7	$	75,918.0		14.1	%

Lincoln National (LNC) 8-KStrength in Business Model and Account Values Drive Earnings Increase