Lincoln National 8K/A Account Value Growth Drives Earnings Increase | LNC 28 Apr 10

	Lincoln Financial Group
	Available-For-Sale (AFS) by Industry Classifications
	Amounts in Millions

		As of 3/31/2010													As of 12/31/2009
		Amortized			Unrealized		Unrealized			Fair		% Fair			Amortized		Unrealized		Unrealized			Fair		% Fair
AFS - Fixed Maturities		Cost			Gains		(Losses)			Value		Value			Cost		Gains		(Losses)			Value		Value
Corporate
Financial Services		$	8,471		$	334	$	(201	)	$	8,604		13.6	%	$	8,260	$	248	$	(341	)	$	8,167		13.3	%
	Basic Industry		2,291			141		(43	)		2,389		3.8	%		2,304		116		(57	)		2,363		3.9	%
	Capital Goods		3,172			173		(32	)		3,313		5.2	%		2,995		149		(26	)		3,118		5.1	%
	Communications		2,701			204		(40	)		2,865		4.5	%		2,817		200		(51	)		2,966		4.9	%
Consumer Cyclical			2,533			152		(56	)		2,629		4.1	%		2,589		141		(66	)		2,664		4.4	%
Consumer Non-Cyclical			6,137			411		(16	)		6,532		10.3	%		5,568		380		(16	)		5,932		9.8	%
	Energy		4,327			331		(12	)		4,646		7.3	%		4,251		290		(22	)		4,519		7.4	%
	Technology		1,192			83		(3	)		1,272		2.0	%		1,121		76		(4	)		1,193		2.0	%
	Transportation		1,183			77		(9	)		1,251		2.0	%		1,224		85		(15	)		1,294		2.1	%
	Industrial Other		697			44		(7	)		734		1.2	%		709		35		(11	)		733		1.2	%
	Utilities		9,221			494		(54	)		9,661		15.2	%		8,941		415		(81	)		9,275		15.2	%
ABS
	CDO / CLN [1]		130			14		(14	)		130		0.2	%		735		11		(296	)		450		0.7	%
	CRE CDO		53			-		(22	)		31		0.0	%		54		-		(24	)		30		0.0	%
	Credit Card [1]		831			25		(7	)		849		1.3	%		265		9		(9	)		265		0.4	%
	Home Equity		1,062			2		(356	)		708		1.1	%		1,099		1		(428	)		672		1.1	%
Manufactured Housing			119			1		(7	)		113		0.2	%		122		1		(11	)		112		0.2	%
	Auto Loan		218			5		-			223		0.4	%		220		5		-			225		0.4	%
	Other		221			17		(3	)		235		0.4	%		230		12		(3	)		239		0.4	%
CMBS
Non-Agency Backed			2,374			79		(318	)		2,135		3.4	%		2,436		49		(354	)		2,131		3.5	%
CMOs
	Agency Backed		4,276			287		(2	)		4,561		7.2	%		4,494		252		(23	)		4,723		7.8	%
Non-Agency Backed			1,812			8		(411	)		1,409		2.2	%		1,697		5		(454	)		1,248		2.1	%
Pass Thrus
	Agency Backed		3,163			71		(10	)		3,224		5.1	%		2,912		64		(14	)		2,962		4.9	%
Non-Agency Backed			66			-		(6	)		60		0.1	%		69		-		(8	)		61		0.1	%
Municipals
	Taxable		2,104			29		(28	)		2,105		3.3	%		1,900		13		(53	)		1,860		3.1	%
	Tax-Exempt		18			-		-			18		0.0	%		35		-		-			35		0.1	%
Government/Gov Agencies
	United States		1,106			92		(10	)		1,188		1.9	%		963		85		(14	)		1,034		1.7	%
	Foreign		1,327			60		(29	)		1,358		2.1	%		1,345		53		(39	)		1,359		2.2	%
Preferred Stock Redeemable & Hybrids			1,351	��		38		(172	)		1,217		1.9	%		1,402		36		(250	)		1,188		2.0	%
AFS - Fixed Maturities			62,156			3,172		(1,868	)		63,460		100.0	%		60,757		2,731		(2,670	)		60,818		100.0	%
AFS - Equities			377			29		(96	)		310					382		21		(125	)		278
Total AFS Securities			62,533			3,201		(1,964	)		63,770					61,139		2,752		(2,795	)		61,096
Trading Securities [2]			2,351			244		(63	)		2,532					2,342		243		(80	)		2,505
Total AFS & Trading Securities		$	64,884		$	3,445	$	(2,027	)	$	66,302				$	63,481	$	2,995	$	(2,875	)	$	63,601

[1]

Includes amortized cost of $566 million ABS Credit Card assets that were reclassed from the ABS CDO/CLN assets as a result of adopting ASU 2009-17 as of January 1, 2010. For additional information, please see the Notes to the Consolidated Financial Statements - Note 2 "Consolidation Topic" and Note 4 "Variable Interest Entities."

[2]

The trading securities support our Modco reinsurance agreements and the investment results are passed directly to the reinsurers.

Lincoln Financial Group
AFS - Exposure to Residential MBS ("RMBS") and Related Collateral
As of 03/31/2010
Amounts in Millions


	Total				Prime/Agency				Prime/Non-Agency				Alt-A				Subprime
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Type	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
RMBS	$	9,254	$	9,317	$	7,785	$	7,439	$	989	$	1,246	$	480	$	632	$	-	$	-
ABS		708		1,062		-		-		-		-		265		382		443		680
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680

Rating
AAA	$	8,470	$	8,184	$	7,768	$	7,423	$	332	$	347	$	163	$	182	$	207	$	232
AA		192		239		-		-		45		58		123		150		24		31
A		137		177		17		16		35		41		45		57		40		63
BBB		54		80		-		-		34		43		9		20		11		17
BB and below		1,109		1,699		-		-		543		757		405		605		161		337
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680

Origination Year
2004 and prior	$	3,606	$	3,609	$	2,749	$	2,582	$	349	$	387	$	285	$	345	$	223	$	295
2005		1,445		1,617		885		839		183		246		217		289		160		243
2006		727		926		312		294		159		195		198		299		58		138
2007		1,592		1,655		1,249		1,156		298		418		45		81		-		-
2008		343		322		343		322		-		-		-		-		-		-
2009		1,531		1,531		1,529		1,527		-		-		-		-		2		4
2010		718		719		718		719		-		-		-		-		-		-
Total	$	9,962	$	10,379	$	7,785	$	7,439	$	989	$	1,246	$	745	$	1,014	$	443	$	680

Note:

This table does not include the fair value of trading securities totaling $242 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $242 million in trading securities consisted of $213 million prime, $16 million Alt-A, and $13 million subprime.

Lincoln Financial Group
AFS - RMBS and Related Collateral
As of 03/31/2010
Amounts in Millions

Prime

	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	3,098	$	2,969	$	3,042	$	2,891	$	27	$	35	$	26	$	26	$	1	$	3	$	2	$	14
2005		1,068		1,085		894		849		14		18		20		23		28		31		112		164
2006		471		489		325		306		4		5		-		-		5		9		137		169
2007		1,547		1,574		1,249		1,156		-		-		6		8		-		-		292		410
2008		343		322		343		322		-		-		-		-		-		-		-		-
2009		1,529		1,527		1,529		1,527		-		-		-		-		-		-		-		-
2010		718		719		718		719		-		-		-		-		-		-		-		-
Total	$	8,774	$	8,685	$	8,100	$	7,770	$	45	$	58	$	52	$	57	$	34	$	43	$	543	$	757

Alt-A

	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	285	$	345	$	130	$	141	$	87	$	106	$	43	$	55	$	9	$	20	$	16	$	23
2005		217		289		22		30		10		13		2		2		-		-		183		244
2006		198		299		11		11		26		31		-		-		-		-		161		257
2007		45		81		-		-		-		-		-		-		-		-		45		81
Total	$	745	$	1,014	$	163	$	182	$	123	$	150	$	45	$	57	$	9	$	20	$	405	$	605

Subprime

	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	223	$	295	$	151	$	165	$	24	$	31	$	8	$	16	$	2	$	7	$	38	$	76
2005		160		243		56		67		-		-		32		47		9		10		63		119
2006		58		138		-		-		-		-		-		-		-		-		58		138
2009		2		4		-		-		-		-		-		-		-		-		2		4
Total	$	443	$	680	$	207	$	232	$	24	$	31	$	40	$	63	$	11	$	17	$	161	$	337

Lincoln Financial Group
AFS - ABS - Consumer Loan
As of 03/31/2010
Amounts in Millions

	Total				Credit Card [1]				Auto Loans
	Fair		Amortized		Fair		Amortized		Fair		Amortized
	Value		Cost		Value		Cost		Value		Cost
Rating
AAA	$	1,045	$	1,023	$	822	$	805	$	223	$	218
A		9		10		9		10		-		-
BBB		17		16		17		16		-		-
Total	$	1,071	$	1,049	$	848	$	831	$	223	$	218

[1]

Note:

This table does not include the fair value of trading securities totaling $2 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $2 million in trading securities were credit card securities.

Lincoln Financial Group
AFS - CMBS
As of 03/31/2010
Amounts in Millions

	Total				Multiple Property				Single Property				CRE CDOs
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Type	Value		Cost		Value		Cost		Value		Cost		Value		Cost
CMBS	$	2,135	$	2,374	$	2,062	$	2,253	$	73	$	121	$	-	$	-
CRE CDOs		31		53		-		-		-		-		31		53
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53

Rating
AAA	$	1,523	$	1,462	$	1,477	$	1,411	$	36	$	36	$	10	$	15
AA		294		316		287		306		7		10		-		-
A		132		178		104		131		10		13		18		34
BBB		114		167		108		157		3		6		3		4
BB and below		103		304		86		248		17		56		-		-
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53

Origination Year
2004 and prior	$	1,455	$	1,515	$	1,392	$	1,447	$	50	$	53	$	13	$	15
2005		402		481		370		406		22		60		10		15
2006		167		261		158		230		1		8		8		23
2007		142		170		142		170		-		-		-		-
Total	$	2,166	$	2,427	$	2,062	$	2,253	$	73	$	121	$	31	$	53

Note:	This table does not include the fair value of trading securities totaling $81 million which support our Modco reinsurance agreements since investment results for these agreements are passed directly to the reinsurers. The $81 million in trading securities consisted of $78 million CMBS and $3 million CRE CDOs.

Lincoln Financial Group
AFS - CMBS
As of 03/31/2010
Amounts in Millions

	Total				AAA				AA				A				BBB				BB & Below
	Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized		Fair		Amortized
Origination Year	Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost		Value		Cost
2004 and prior	$	1,455	$	1,515	$	1,044	$	1,011	$	246	$	266	$	96	$	112	$	16	$	26	$	53	$	100
2005		402		481		327		314		18		20		4		6		28		44		25		97
2006		167		261		79		74		21		20		15		29		44		72		8		66
2007		142		170		73		63		9		10		17		31		26		25		17		41
Total	$	2,166	$	2,427	$	1,523	$	1,462	$	294	$	316	$	132	$	178	$	114	$	167	$	103	$	304

Lincoln Financial Group
Commercial Mortgage Loan Portfolio, Net of Reserves
As of 03/31/2010
Amounts in Millions

LNC MORTGAGE LOAN DISTRIBUTION
Property Type	Amount		%			State	Amount		%
Office Building	$	2,394		34.1	%	CA	$	1,453		20.8	%
Industrial		1,868		26.6	%	TX		606		8.6	%
Retail		1,660		23.7	%	MD		423		6.0	%
Apartment		659		9.4	%	FL		317		4.5	%
Hotel/Motel		204		2.9	%	VA		315		4.5	%
Mixed Use		132		1.9	%	TN		305		4.3	%
Other Commercial		96		1.4	%	AZ		298		4.2	%
Total	$	7,013		100.0	%	WA		284		4.0	%
						NC		256		3.7	%
						GA		238		3.4	%
						IL		238		3.4	%
Geographic Region	Amount		%			PA		205		2.9	%
Pacific	$	1,842		26.3	%	NV		203		2.9	%
South Atlantic		1,688		24.1	%	OH		189		2.7	%
Mountain		699		10.0	%	IN		159		2.3	%
East North Central		675		9.6	%	MN		151		2.2	%
West South Central		641		9.1	%	NJ		140		2.0	%
Middle Atlantic		472		6.7	%	NY		127		1.8	%
East South Central		433		6.2	%	SC		124		1.8	%
West North Central		388		5.5	%	MA		121		1.7	%
New England		175		2.5	%	Below 2%		861		12.3	%
Total	$	7,013		100.0	%	Total	$	7,013		100.0	%

Lincoln Financial Group
Additional Disclosure of Insured Bonds and Direct Exposure
As of 03/31/2010
Amounts in Millions

	Direct		Insured		Total		Total		Total			Total
Monoline Name	Exposure [1]		Bonds [2]		Amortized Cost		Unrealized Gain		Unrealized (Loss) and OTTI			Fair Value
AMBAC	$	-	$	250	$	250	$	2	$	(66	)	$	186
ASSURED GUARANTY LTD		30		-		30		-		(10	)		20
FGIC		-		87		87		-		(29	)		58
FSA		-		60		60		-		(3	)		57
MBIA		12		150		162		11		(19	)		154
MGIC		11		6		17		-		(2	)		15
PMI GROUP INC		27		-		27		-		(14	)		13
RADIAN GROUP INC		19		-		19		-		(4	)		15
XL CAPITAL LTD		72		63		135		3		(14	)		124
Total	$	171	$	616	$	787	$	16	$	(161	)	$	642

Additional direct exposure through Credit Default Swaps with a notional totaling $84 million is excluded from this table.

[1]

[2]

Additional indirect insured exposure through structured securities is excluded from this table. See "Credit-Linked Notes (CLN)" disclosure starting on page 191 of the 2009 Form 10-K.

Note:

This table does not include the fair value of trading securities totaling $30 million which support our Modco reinsurance agreements because investment results for these agreements are passed directly to the reinsurers. The $30 million in trading securities consisted of $10 million of Direct Exposure and $20 million of Insured Exposure. This table also excludes insured exposure totaling $12 million for a guaranteed investment tax credit partnership.

Lincoln National (LNC) 8-K/AAccount Value Growth Drives Earnings Increase