Lincoln National 8K Results of Operations and Financial Condition | LNC 2 Nov 11

Lincoln Financial Group
Table of Contents
Third Quarter 2011

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 Gain (Loss), After-DAC and Benefit Ratio Unlocking	6
Consolidated Statements of Income (Loss)	7
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL	8
Consolidating Statements of Income (Loss) from Operations - Current Year - Quarter	9
Consolidating Statements of Income (Loss) from Operations - Prior Year - Quarter	10
Consolidating Statements of Income (Loss) from Operations - Current Year - Year-to-Date	11
Consolidating Statements of Income (Loss) 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 (Loss) from Operations and Operational Data	15
DAC, VOBA, DSI and DFEL 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 (Loss) from Operations, 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 (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards	24
Additional Operational Data	25
Account Value Roll Forwards	26
Group Protection:
Income (Loss) from Operations and Operational Data	27

Other Operations	28

Discontinued Operations	28

Consolidated Deposits, Net Flows and Account Balances	29

Consolidated Investment Data	30

9/30/2011			i
Lincoln Financial Group Analyst Coverage
Third Quarter 2011

Firm	Analyst	Phone Number
Barclays Capital	Jay Gelb	212-526-1561
Bank of America - Merrill Lynch	Ed Spehar	212-449-4245
Citigroup	Colin Devine	212-816-1682
Credit Suisse	Tom Gallagher	212-538-2010
Dowling and Partners	Ryan Krueger	860-676-8600
Evercore Partners	Mark Finkelstein	312-445-6440
FBR Capital Markets	Randy Binner	703-312-1890
Goldman Sachs and Company	Christopher Giovanni	212-357-3560
JP Morgan Securities	Jimmy Bhullar	212-622-6397
Keefe, Bruyette and Woods	Jeff Schuman	860-722-5902
Langen McAlenney	Bob Glasspiegel	860-724-1203
Morgan Stanley	Nigel Dally	212-761-4132
Raymond James and Associates	Steven Schwartz	312-612-7686
RBC Capital	Eric Berg	212-618-7593
Sandler O'Neil and Partners	Edward Shields	312-281-3487
Sanford C. Bernstein & Co.	Suneet Kamath	212-756-4587
Scotia Capital	Joanne Smith	212-225-5071
Sterne, Agee and Leach, Inc.	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, Senior 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

9/30/2011				ii
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 derivative investments, embedded derivatives within certain reinsurance arrangements and 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 Financial Accounting Standards Board
			("FASB") Accounting Standards Codification ("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.

Income (loss) from operations available to common stockholders is net income (loss) available to common stockholders (used in the calculation of
earnings (loss) per share) in accordance with GAAP, excluding the after-tax effects of the items above and the acceleration of our Series B preferred
stock discount as a result of redemption prior to five years from the date of issuance.

	•	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:
		•	Excluded realized gain (loss);
		•	Amortization of deferred front-end loads ("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 equity measures how efficiently we generate profits from the resources provided by our net assets. Return on equity is calculated
		by dividing annualized net income (loss) by average equity, excluding accumulated other comprehensive income (loss) ("AOCI"). Management
		evaluates return on equity by both including and excluding average goodwill within average equity.

	•	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, return on equity (including and excluding average goodwill within average equity), excluding AOCI,
using annualized income (loss) from operations 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. In addition, we believe that our definitions of operating revenues and income (loss) from operations
will provide investors with a more valuable measure of our performance because it better reveals trends in our business.

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

Our roll forwards of deferred acquisition costs ("DAC") and value of business acquired ("VOBA"), deferred sales inducements ("DSI") and DFEL disclose the net impact of prospective and retrospective unlocking on amortization for these items. This information
helps explain a source of volatility in amortization.

			iii
	•	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, DSI, DFEL 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, DSI, DFEL and other contract holder funds. We may also have prospective
		unlocking in other quarters as we become aware of information that warrants updating prospective assumptions outside of our annual
		comprehensive review. These updates to assumptions result in unlocking that represent an increase or decrease to our carrying value of DAC,
		VOBA, DSI and DFEL 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.

	•	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 AOCI is calculated based upon a non-GAAP financial measure. It is calculated by dividing (a) stockholders' equity
excluding AOCI , 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.

Effective April 30, 2010, we amended our non-director deferred compensation plans to allow participants the option to diversify from LNC stock to
other investment alternatives and to be settled in shares or cash at the participant’s discretion. As a result of the amendment, we reclassified the cost
basis of deferred units of LNC stock from common stock to other liabilities on our Consolidated Balance Sheet. Consequently changes in the value of
our stock are recorded in underwriting, acquisition, insurance and other expenses on our Consolidated Statement of Income (Loss). When calculating
our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude the shares from our calculation, unless the
effect of assuming it will be settled in shares ("equity classification") would be more dilutive to our diluted EPS. The numerator used in the calculation
of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our non-director deferred compensation
plans if the effect of equity classification would be more dilutive to our diluted EPS.

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.

9/30/2011																							PAGE 1
Financial Highlights
Unaudited (in millions, except per share data)

		For the Three Months Ended September 30,												For the Nine Months Ended September 30,
								Change												Change
		2011			2010			Amount			%			2011			2010			Amount			%
Income (Loss) from Operations - By Segment
Annuities		$	161.6		$	126.1		$	35.5			28.2	%	$	459.0		$	361.2		$	97.8			27.1	%
Defined Contribution			40.5			49.9			(9.4	)		-18.8	%		131.5			121.8			9.7			8.0	%
Total Retirement Solutions			202.1			176.0			26.1			14.8	%		590.5			483.0			107.5			22.3	%
Life Insurance			131.6			59.9			71.7			119.7	%		450.3			347.8			102.5			29.5	%
Group Protection			27.8			9.5			18.3			192.6	%		78.3			53.6			24.7			46.1	%
Total Insurance Solutions			159.4			69.4			90.0			129.7	%		528.6			401.4			127.2			31.7	%
Other Operations			(44.2	)		(39.7	)		(4.5	)		-11.3	%		(103.5	)		(112.4	)		8.9			7.9	%
Income (Loss) from Operations (1)			317.3			205.7			111.6			54.3	%		1,015.6			772.0			243.6			31.6	%
Excluded realized gain (loss), after-tax (2) (3)			(119.9	)		16.5			(136.4	)	NM				(157.7	)		(17.3	)		(140.4	)	NM
Benefit ratio unlocking, after-tax (2) (3)			(40.7	)		25.1			(65.8	)	NM				(37.2	)		(0.3	)		(36.9	)	NM
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (3)			0.5			0.5			-			0.0	%		1.3			1.4			(0.1	)		-7.1	%
Gain (loss) on early extinguishment of debt, after-tax (3)			(5.5	)		-			(5.5	)	NM				(5.5	)		-			(5.5	)	NM
Income (loss) from discontinued operations, after-tax (4)			(8.4	)		(1.7	)		(6.7	)	NM				(8.4	)		28.9			(37.3	)	NM
Net Income (Loss)			143.3			246.1			(102.8	)		-41.8	%		808.1			784.7			23.4			3.0	%
Preferred stock dividends and accretion of discount			-			-			-		NM				-			(36.7	)		36.7			100.0	%
Write-off of unamortized discount on preferred stock at liquidation			-			-			-		NM				-			(130.6	)		130.6			100.0	%
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (5)			(4.8	)		(1.0	)		(3.8	)	NM				(4.7	)		(2.9	)		(1.8	)		-62.1	%
Net Income (Loss) Available to Common Stockholders - Diluted		$	138.5		$	245.1		$	(106.6	)		-43.5	%	$	803.4		$	614.5		$	188.9			30.7	%

Earnings Per Common Share - Diluted
Income (loss) from operations (1)		$	1.00		$	0.63		$	0.37			58.7	%	$	3.17		$	2.31		$	0.86			37.2	%
Excluded realized gain (loss), after-tax (2) (3)			(0.38	)		0.05			(0.43	)	NM				(0.49	)		(0.05	)		(0.44	)	NM
Benefit ratio unlocking, after-tax (2) (3)			(0.13	)		0.08			(0.21	)	NM				(0.11	)		-			(0.11	)	NM
Gain (loss) on early extinguishment of debt, after-tax (3)			(0.02	)		-			(0.02	)	NM				(0.02	)		-			(0.02	)	NM
Write-off of unamortized discount on preferred stock at liquidation			-			-			-		NM				-			(0.41	)		0.41			100.0	%
Income (loss) from discontinued operations, after-tax (4)			(0.03	)		(0.01	)		(0.02	)	NM				(0.03	)		0.09			(0.12	)	NM
Net Income (Loss)		$	0.44		$	0.75		$	(0.31	)		-41.3	%	$	2.52		$	1.94		$	0.58			29.9	%

Operating Revenues - By Segment
Annuities		$	709.6		$	660.3		$	49.3			7.5	%	$	2,175.0		$	1,934.8		$	240.2			12.4	%
Defined Contribution			247.8			244.6			3.2			1.3	%		770.8			730.4			40.4			5.5	%
Total Retirement Solutions			957.4			904.9			52.5			5.8	%		2,945.8			2,665.2			280.6			10.5	%
Life Insurance			1,176.1			1,107.9			68.2			6.2	%		3,552.0			3,372.2			179.8			5.3	%
Group Protection			479.4			451.5			27.9			6.2	%		1,457.9			1,366.8			91.1			6.7	%
Total Insurance Solutions			1,655.5			1,559.4			96.1			6.2	%		5,009.9			4,739.0			270.9			5.7	%
Other Operations			120.1			121.6			(1.5	)		-1.2	%		351.7			365.6			(13.9	)		-3.8	%
Total Operating Revenues			2,733.0			2,585.9			147.1			5.7	%		8,307.4			7,769.8			537.6			6.9	%
Excluded realized gain (loss), pre-tax (2)			(184.4	)		25.5			(209.9	)	NM				(242.6	)		(26.5	)		(216.1	)	NM
Amortization income of DFEL associated with benefit ratio unlocking, pre-tax			(1.6	)		0.7			(2.3	)	NM				(1.4	)		(0.6	)		(0.8	)	NM
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax			0.7			0.7			-			-			2.0			2.0			-			0.0	%
Total Revenues		$	2,547.7		$	2,612.8		$	(65.1	)		-2.5	%	$	8,065.4		$	7,744.7		$	320.7			4.1	%

(1)	Income (loss) 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 gain (loss) on disposal. See Discontinued Operations on page 28 for details.
(5)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our non-director
	deferred compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																						PAGE 2
Financial Highlights (Continued)
Unaudited (billions of dollars)


		For the Three Months Ended September 30,											For the Nine Months Ended September 30,
								Change											Change
			2011			2010			Amount		%			2011			2010			Amount		%
Retirement Solutions - Annuities
Gross deposits		$	2.709		$	2.978		$	(0.269	)	-9.0	%	$	8.275		$	8.077		$	0.198		2.5	%
Net flows			0.663			1.284			(0.621	)	-48.4	%		1.846			3.012			(1.166	)	-38.7	%
Account values (gross)			82.149			81.207			0.942		1.2	%		82.149			81.207			0.942		1.2	%
Account values (net of reinsurance)			81.229			80.229			1.000		1.2	%		81.229			80.229			1.000		1.2	%

Retirement Solutions - Defined Contribution
Gross deposits (1)		$	1.456		$	1.262		$	0.194		15.4	%	$	3.996		$	3.943		$	0.053		1.3	%
Net flows			0.329			(0.278	)		0.607		218.3	%		0.285			0.013			0.272		NM
Account values - annuities			25.517			25.690			(0.173	)	-0.7	%		25.517			25.690			(0.173	)	-0.7	%
Alliance and Smart Future mutual funds			11.503			11.398			0.105		0.9	%		11.503			11.398			0.105		0.9	%
Total annuities and mutual fund account values			37.020			37.088			(0.068	)	-0.2	%		37.020			37.088			(0.068	)	-0.2	%

Insurance Solutions - Life Insurance
Sales (in millions)		$	154.9		$	148.4		$	6.5		4.4	%	$	470.8		$	430.8		$	40.0		9.3	%
Life insurance in force			574.444			556.754			17.690		3.2	%		574.444			556.754			17.690		3.2	%
Gross deposits			1.343			1.230			0.113		9.2	%		3.887			3.370			0.517		15.3	%
Net flows			0.963			0.725			0.238		32.8	%		2.652			1.977			0.675		34.1	%
Account values (net of reinsurance)			34.419			32.654			1.765		5.4	%		34.419			32.654			1.765		5.4	%

Insurance Solutions - Group Protection
Annualized sales (in millions)		$	74.7		$	68.4		$	6.3		9.2%	%	$	187.2		$	196.7		$	(9.5	)	-4.8	%
Loss ratio (2)			71.8	%		79.2	%		NM		NM			73.1	%		76.5	%		NM		NM

Consolidated
Total deposits		$	5.508		$	5.470		$	0.038		0.7	%	$	16.158		$	15.390		$	0.768		5.0	%
Total account balances			152.668			149.971			2.697		1.8	%		152.668			149.971			2.697		1.8	%
Total net flows			1.955			1.731			0.224		12.9	%		4.783			5.002			(0.219	)	-4.4	%

(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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																							PAGE 3
Financial Highlights (Continued)
Unaudited (millions of dollars)

		For the Three Months Ended September 30,												For the Nine Months Ended September 30,
								Change												Change
		2011			2010			Amount			%			2011			2010			Amount			%

Balance Sheet Assets - End-of-Period		$	197,746.8		$	190,489.9		$	7,256.9			3.8	%	$	197,746.8		$	190,489.9		$	7,256.9			3.8	%

Stockholders' Equity
Beginning-of-period, including AOCI		$	13,585.7		$	12,637.3		$	948.4			7.5	%	$	12,805.8		$	11,700.2		$	1,105.6			9.4	%
End-of-period, including AOCI			14,919.1			13,557.5			1,361.6			10.0	%		14,919.1			13,557.5			1,361.6			10.0	%
End-of-period, excluding AOCI			12,455.9			11,896.0			559.9			4.7	%		12,455.9			11,896.0			559.9			4.7	%
Average equity, excluding AOCI			12,464.8			11,797.7			667.1			5.7	%		12,345.9			11,898.2			447.7			3.8	%

Return on Equity, Excluding AOCI
Income (loss) from operations with average equity:
Including goodwill			10.2	%		7.0	%								11.0	%		8.7	%
Excluding goodwill			13.4	%		9.4	%								14.5	%		11.6	%

Return on Capital
Income (loss) from operations/average capital			7.9	%		5.7	%								8.5	%		6.9	%

Common Shares Outstanding
Average for the period - basic			304.8			316.7			(11.9	)		-3.8	%		310.4			307.9			2.5			0.8	%
Average for the period - diluted			312.0			325.7			(13.7	)		-4.2	%		318.5			317.5			1.0			0.3	%
End-of-period - assuming conversion of preferreds			301.8			316.9			(15.1	)		-4.8	%		301.8			316.9			(15.1	)		-4.8	%
End-of-period - diluted			306.9			324.3			(17.4	)		-5.4	%		306.9			324.3			(17.4	)		-5.4	%

Book value per common share, including AOCI		$	49.43		$	42.78		$	6.65			15.5	%	$	49.43		$	42.78		$	6.65			15.5	%
Book value per common share, excluding AOCI			41.27			37.54			3.73			9.9	%		41.27			37.54			3.73			9.9	%

Cash Returned to Common Stockholders
Warrant repurchase - dollar amount		$	-		$	48.13		$	(48.13	)		-100.0	%	$	-		$	48.13		$	(48.13	)		-100.0	%
Share repurchase - dollar amount			150.10			-			150.10		NM				375.30			-			375.30		NM
Common dividends declared			15.10			3.20			11.90		NM				46.20			9.40			36.80		NM
Total cash returned to common stockholders		$	165.20		$	51.33		$	113.87			221.8	%	$	421.50		$	57.53		$	363.97		NM

Stock issuance - number of shares			-			-			-		NM				-			14.14			(14.14	)		-100.0	%
Share repurchase - number of shares			6.71			-			6.71		NM				14.28			-			14.28		NM
Dividend declared on common stock - per share		$	0.050		$	0.010		$	0.040		NM			$	0.150		$	0.030		$	0.120		NM
Dividend payout ratio			11.4	%		1.3	%								6.0	%		1.5	%
Annualized yield (1)			1.3	%		0.2	%								1.3	%		0.2	%

Comprehensive Income (Loss)
Net income (loss)		$	143.3		$	246.1		$	(102.8	)		-41.8	%	$	808.1		$	784.7		$	23.4			3.0	%
Net unrealized gain (loss) on available-for-sale securities			1,201.8			792.9			408.9			51.6	%		1,570.7			2,010.7			(440.0	)		-21.9	%
Unrealized other-than-temporary impairment on available-for-sale securities			0.7			(21.3	)		22.0			103.3	%		21.9			(16.6	)		38.5			231.9	%
Net unrealized gain (loss) on derivative instruments			148.0			(46.6	)		194.6		NM				122.5			(71.9	)		194.4			270.4	%
Foreign currency translation adjustment			5.3			0.9			4.4		NM				2.1			(0.5	)		2.6		NM
Funded status of employee benefit plans			(4.6	)		(2.3	)		(2.3	)		-100.0	%		(1.7	)		1.2			(2.9	)	NM
Comprehensive income (loss)		$	1,494.5		$	969.7		$	524.8			54.1	%	$	2,523.6		$	2,707.6		$	(184.0	)		-6.8	%

		As of September 30,
								Change
			2011			2010		Amount			%
Leverage Ratio
Short-term debt		$	549.9		$	101.0		$	448.9		NM
Long-term debt			5,348.4			5,943.2			(594.8	)		-10.0	%
Total debt			5,898.3			6,044.2			(145.9	)		-2.4	%
Less:
Long-term operating debt (2)			1,122.3			1,122.2			0.1			0.0	%
75% of capital securities			908.0			1,114.0			(206.0	)		-18.5	%
Carrying value of fair value hedge			277.5			195.9			81.6			41.7	%
Total numerator		$	3,590.5		$	3,612.1		$	(21.6	)		-0.6	%

Stockholders' equity, excluding AOCI		$	12,455.9		$	11,896.0		$	559.9			4.7	%
Total debt			5,898.3			6,044.2			(145.9	)		-2.4	%
Total denominator		$	18,354.2		$	17,940.2		$	414.0			2.3	%
Leverage Ratio			19.6	%		20.1	%

		Ratings as of November 2, 2011
											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)	Indicated dividend divided by the closing price.
(2)	We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain on increasing
	statutory reserves associated with secondary guarantee UL and term policies and the senior note issued in September 2008 by our primary insurance subsidiary.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																								PAGE 4
Consolidated Operating Expense Detail
Unaudited (in millions)

	For the Three Months Ended																	For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.		%			Sept.			Sept.		%
		2010			2010			2011			2011			2011		Change			2010			2011		Change
Commissions and Expenses Incurred
General and administrative expenses	$	359.8		$	464.6		$	365.0		$	366.1		$	368.4		2.4	%	$	1,039.3		$	1,099.5		5.8	%
Commissions		464.6			500.4			484.3			491.9			474.2		2.1	%		1,347.5			1,450.4		7.6	%
Media expenses		14.9			16.0			16.7			16.9			17.3		16.1	%		43.2			50.9		17.8	%
Taxes, licenses and fees		47.8			53.3			61.8			52.8			61.4		28.5	%		147.0			176.0		19.7	%
Interest and debt expense		74.5			74.3			71.6			72.0			71.0		-4.7	%		211.6			214.6		1.4	%
Expenses associated with reserve financing and unrelated
letters of credit ("LOCs")		12.1			9.7			11.4			12.4			10.7		-11.6	%		24.3			34.5		42.0	%
Total Commissions and Expenses Incurred		973.7			1,118.3			1,010.8			1,012.1			1,003.0		3.0	%		2,812.9			3,025.9		7.6	%

Less: Commissions and Expenses Capitalized
General and administrative expenses capitalized		(104.4	)		(130.0	)		(103.6)	)		(112.0	)		(113.4	)	-8.6	%		(309.9	)		(329.0	)	-6.2	%
Commissions capitalized		(297.0	)		(318.4	)		(290.7)	)		(301.8	)		(287.1	)	3.3	%		(854.9	)		(879.6	)	-2.9	%
Taxes, licenses and fees capitalized		(10.7	)		(19.9	)		(17.3)	)		(15.0	)		(14.6	)	-36.4	%		(33.6	)		(46.9	)	-39.6	%
Total Commissions and Expenses Capitalized		(412.1	)		(468.3	)		(411.6)	)		(428.8	)		(415.1	)	-0.7	%		(1,198.4	)		(1,255.5	)	-4.8	%

Total Expenses Incurred, Net of Amounts Capitalized, Excluding Amortization		561.6			650.0			599.2			583.3			587.9		4.7	%		1,614.5			1,770.4		9.7	%

Amortization
Amortization of DAC and VOBA, net of interest		194.3			332.5			195.6			125.0			515.6		165.4	%		749.3			836.2		11.6	%
Amortization of intangibles		1.0			1.1			1.0			1.1			1.0		0.0	%		3.1			3.1		0.0	%
Total Amortization		195.3			333.6			196.6			126.1			516.6		164.5	%		752.4			839.3		11.5	%
Total	$	756.9		$	983.6		$	795.8		$	709.4		$	1,104.5		45.9	%	$	2,366.9		$	2,609.7		10.3	%

General and Administrative Expenses, Net of Amounts
Capitalized - As a Percentage of Operating Revenues		9.9	%		12.0	%		9.6	%		9.0	%		9.3	%				9.4	%		9.3	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 5
Selected Financial Results Summary
Unaudited (millions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Annuities		$	660.3		$	719.9		$	731.9		$	733.5		$	709.6			7.5	%	$	1,934.8		$	2,175.0			12.4	%
Defined Contribution			244.6			257.3			263.3			259.7			247.8			1.3	%		730.4			770.8			5.5	%
Total Retirement Solutions			904.9			977.2			995.2			993.2			957.4			5.8	%		2,665.2			2,945.8			10.5	%
Life Insurance			1,107.9			1,217.4			1,147.0			1,228.9			1,176.1			6.2	%		3,372.2			3,552.0			5.3	%
Group Protection			451.5			464.3			477.9			500.6			479.4			6.2	%		1,366.8			1,457.9			6.7	%
Total Insurance Solutions			1,559.4			1,681.7			1,624.9			1,729.5			1,655.5			6.2	%		4,739.0			5,009.9			5.7	%
Other Operations			121.6			121.6			116.4			115.2			120.1			-1.2	%		365.6			351.7			-3.8	%
Total Operating Revenues			2,585.9			2,780.5			2,736.5			2,837.9			2,733.0			5.7	%		7,769.8			8,307.4			6.9	%
Excluded realized gain (loss), pre-tax (1)			25.5			(119.8	)		(23.5	)		(34.7	)		(184.4	)	NM				(26.5	)		(242.6	)	NM
Amortization of DFEL associated with benefit ratio unlocking, pre-tax			0.7			0.5			0.2			-			(1.6	)	NM				(0.6	)		(1.4	)	NM
Amortization of deferred gains arising from reserve changes on business sold through reinsurance, pre-tax			0.7			0.6			0.7			0.6			0.7			0.0	%		2.0			2.0			0.0	%
Total Revenues		$	2,612.8		$	2,661.8		$	2,713.9		$	2,803.8		$	2,547.7			-2.5	%	$	7,744.7		$	8,065.4			4.1	%

Income (Loss) from Operations
Annuities		$	126.1		$	123.2		$	147.0		$	150.4		$	161.6			28.2	%	$	361.2		$	459.0			27.1	%
Defined Contribution			49.9			32.5			48.7			42.3			40.5			-18.8	%		121.8			131.5			8.0	%
Total Retirement Solutions			176.0			155.7			195.7			192.7			202.1			14.8	%		483.0			590.5			22.3	%
Life Insurance			59.9			165.5			166.3			152.4			131.6			119.7	%		347.8			450.3			29.5	%
Group Protection			9.5			18.0			24.4			26.1			27.8			192.6	%		53.6			78.3			46.1	%
Total Insurance Solutions			69.4			183.5			190.7			178.5			159.4			129.7	%		401.4			528.6			31.7	%
Other Operations			(39.7	)		(73.7	)		(36.9	)		(22.4	)		(44.2	)		-11.3	%		(112.4	)		(103.5	)		7.9	%
Income (Loss) from Operations			205.7			265.5			349.5			348.8			317.3			54.3	%		772.0			1,015.6			31.6	%
Excluded realized gain (loss), after-tax (1) (2)			16.5			(77.8	)		(15.3	)		(22.5	)		(119.9	)	NM				(17.3	)		(157.7	)	NM
Benefit ratio unlocking, after-tax (1) (2)			25.1			10.7			4.8			(1.3	)		(40.7	)	NM				(0.3	)		(37.2	)	NM
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax (2)			0.5			0.3			0.4			0.4			0.5			0.0	%		1.4			1.3			-7.1	%
Gain (loss) on early extinguishment of debt, after-tax (2)			-			(3.1	)		-			-			(5.5	)	NM				-			(5.5	)	NM
Income (loss) from discontinued operations, after-tax (3)			(1.7	)		-			-			-			(8.4	)	NM				28.9			(8.4	)	NM
Net Income (Loss)			246.1			195.6			339.4			325.4			143.3			-41.8	%		784.7			808.1			3.0	%
Preferred stock dividends and accretion of discount			-			-			-			-			-		NM				(36.7	)		-			100.0	%
Write-off of unamortized discount on preferred stock at redemption			-			-			-			-			-		NM				(130.6	)		-			100.0	%
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (4)			(1.0	)		-			-			(1.0	)		(4.8	)	NM				(2.9	)		(4.7	)		-62.1	%
Net Income (Loss) Available to Common Stockholders - Diluted		$	245.1		$	195.6		$	339.4		$	324.4		$	138.5			-43.5	%	$	614.5		$	803.4			30.7	%

Stockholders' Equity
Beginning-of-period, including AOCI		$	12,637.3		$	13,557.5		$	12,805.8		$	13,089.7		$	13,585.7					$	11,700.2		$	12,805.8
End-of-period, including AOCI			13,557.5			12,805.8			13,089.7			13,585.7			14,919.1						13,557.5			14,919.1
End-of-period, excluding AOCI			11,896.0			12,058.1			12,307.1			12,473.7			12,455.9						11,896.0			12,455.9

Average Stockholders' Equity
Average equity, including average AOCI		$	13,097.4		$	13,181.7		$	12,947.8		$	13,337.7		$	14,252.4					$	12,544.9		$	13,512.6
Average AOCI			1,299.7			1,204.6			765.2			947.3			1,787.6						646.7			1,166.7
Average equity, excluding AOCI			11,797.7			11,977.1			12,182.6			12,390.4			12,464.8						11,898.2			12,345.9
Average goodwill			3,016.5			3,019.4			3,019.4			3,019.4			3,019.4						3,014.5			3,019.4
Average equity, excluding AOCI and goodwill		$	8,781.2		$	8,957.7		$	9,163.2		$	9,371.0		$	9,445.4					$	8,883.7		$	9,326.5

Restructuring Charges (Recoveries), After-Tax		$	-		$	(0.8	)	$	-		$	-		$	-					$	-		$	-

Common Shares Outstanding
Average for the period - basic			316.7			316.4			315.0			311.4			304.8						307.9			310.4
Average for the period - diluted			325.7			323.4			322.9			319.9			312.0						317.5			318.5
End-of-period - diluted			324.3			323.2			321.3			316.8			306.9						324.3			306.9

Earnings (Loss) Per Common Share - Diluted
Income (loss) from operations		$	0.63		$	0.82		$	1.08		$	1.09		$	1.00					$	2.31		$	3.17
Net income (loss)			0.75			0.60			1.05			1.01			0.44						1.94			2.52

Stockholders' Equity Per Common Share
Stockholders' equity, including AOCI		$	42.78		$	40.54		$	41.74		$	44.04		$	49.43					$	42.78		$	49.43
Stockholders' equity, excluding AOCI			37.54			38.17			39.24			40.43			41.27						37.54			41.27
Dividends declared (common stock)			0.010			0.050			0.050			0.050			0.050						0.030			0.150

Return on Equity, Excluding AOCI
Net income (loss) with average equity including goodwill			8.3	%		6.5	%		11.1	%		10.5	%		4.6	%					8.8	%		8.7	%
Income (loss) from operations with average equity including goodwill			7.0	%		8.9	%		11.5	%		11.3	%		10.2	%					8.7	%		11.0	%
Income (loss) from operations with average equity excluding goodwill			9.4	%		11.9	%		15.3	%		14.9	%		13.4	%					11.6	%		14.5	%

Market Value of Common Shares
Highest price		$	26.83		$	29.12		$	32.68		$	32.39		$	29.67					$	33.55		$	32.68
Lowest price			20.65			23.17			28.00			25.97			15.00						20.65			15.00
Closing price			23.92			27.81			30.04			28.49			15.63						23.92			15.63

(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 gain (loss) on disposal. See Discontinued Operations on page 28 for details.
(4)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our non-director deferred compensation plans if
	the effect of equity classification would be more dilutive to our diluted EPS.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 6
Details Underlying Realized Gain (Loss), After-DAC and Benefit Ratio Unlocking
Unaudited (millions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Components of Realized Gain (Loss), Pre-Tax
Total operating realized gain (loss) (1)(2)		$	18.2		$	20.0		$	21.6		$	22.1		$	21.8			19.8	%	$	49.2		$	65.5			33.1	%
Total excluded realized gain (loss) (3)(4)(5)(6)(7)			25.5			(119.8	)		(23.5	)		(34.7	)		(184.4	)	NM				(26.5	)		(242.6	)	NM
Total realized gain (loss), pre-tax		$	43.7		$	(99.8	)	$	(1.9	)	$	(12.6	)	$	(162.6	)	NM			$	22.7		$	(177.1	)	NM

Reconciliation of Excluded Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax (8)
Total excluded realized gain (loss) (3)(4)(5)(6)(7)		$	16.5		$	(77.8	)	$	(15.3	)	$	(22.5	)	$	(119.9	)	NM			$	(17.3	)	$	(157.7	)	NM
Benefit ratio unlocking (9)			25.1			10.7			4.8			(1.3	)		(40.7	)	NM				(0.3	)		(37.2	)	NM
Excluded realized gain (loss) net of benefit ratio unlocking, after-tax		$	41.6		$	(67.1	)	$	(10.5	)	$	(23.8	)	$	(160.6	)	NM			$	(17.6	)	$	(194.9	)	NM

Components of Excluded Realized Gain (Loss) Net of Benefit Ratio Unlocking, After-Tax (8)
Realized gain (loss) related to certain investments (3)		$	(17.0	)	$	(61.2	)	$	(11.1	)	$	(22.2	)	$	(28.3	)		-66.5	%	$	(56.0	)	$	(61.6	)		-10.0	%
Gain (loss) on the mark-to-market on certain instruments (4)			68.6			1.6			6.7			(0.6	)		(68.7	)	NM				47.1			(62.6	)	NM
Variable annuity net derivatives results: (5)(6)(9)
Hedge program performance			20.2			13.4			(19.0	)		(9.8	)		(82.6	)	NM				(40.1	)		(111.4	)	NM
Unlocking for GLB reserves hedged			-			18.1			-			-			(71.6	)	NM				-			(71.6	)	NM
GLB NPR component			(29.9	)		(47.3	)		11.3			8.5			92.2		NM				27.9			112.0		NM
Total variable annuity net derivatives results			(9.7	)		(15.8	)		(7.7	)		(1.3	)		(62.0	)	NM				(12.2	)		(71.0	)	NM
Indexed annuity forward-starting option (7)			(0.3	)		8.3			1.6			0.3			(1.6	)	NM				3.5			0.3			-91.4	%
Excluded realized gain (loss) net of benefit ratio unlocking, after-tax		$	41.6		$	(67.1	)	$	(10.5	)	$	(23.8	)	$	(160.6	)	NM			$	(17.6	)	$	(194.9	)	NM

(1)	Includes 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)	Includes 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 30 for detail.
(4)	Includes changes in the fair values of certain derivative investments (including the credit default swaps and contingent forwards associated with consolidated
	VIEs), total return swaps (embedded derivatives that are 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) and trading securities.
(5)	Includes 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)	Includes the change in the fair value of the derivatives we own to hedge the change in the GDB riders.
(7)	Includes 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.
(9)	Represents or includes changes in reserves not accounted for at fair value and resulting from benefit ratio unlocking on our GDB and GLB riders.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 7
Consolidated Statements of Income (Loss)
Unaudited (in millions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Revenues
Insurance premiums		$	537.7		$	555.4		$	567.8		$	594.1		$	559.0			4.0	%	$	1,620.9		$	1,720.9			6.2	%
Surrender charges			32.1			30.6			34.2			40.2			29.5			-8.1	%		109.3			103.9			-4.9	%
Mortality assessments			319.9			324.4			324.7			326.7			335.1			4.8	%		963.1			986.5			2.4	%
Expense assessments			417.5			528.1			458.8			533.2			499.8			19.7	%		1,278.4			1,491.8			16.7	%
Net investment income			1,132.3			1,182.7			1,191.2			1,180.6			1,150.7			1.6	%		3,358.2			3,522.5			4.9	%
Realized gain (loss):
Total other-than-temporary impairment losses on securities			(98.5	)		(53.7	)		(44.8	)		(45.1	)		(42.3	)		57.1	%		(186.0	)		(132.2	)		28.9	%
Portion of loss recognized in other comprehensive income			53.0			11.6			6.0			15.4			17.1			-67.7	%		76.5			38.5			-49.7	%
Net other-than-temporary impairment losses on securities recognized in earnings			(45.5	)		(42.1	)		(38.8	)		(29.7	)		(25.2	)		44.6	%		(109.5	)		(93.7	)		14.4	%
Realized gain (loss), excluding other-than-temporary impairment losses on securities			89.2			(57.7	)		36.9			17.1			(137.4	)	NM				132.2			(83.4	)	NM
Total realized gain (loss) (1)			43.7			(99.8	)		(1.9	)		(12.6	)		(162.6	)	NM				22.7			(177.1	)	NM
Amortization of deferred gains on business sold through reinsurance			18.8			18.8			18.7			18.7			18.7			-0.5	%		56.3			56.1			-0.4	%
Other revenues and fees			110.8			121.7			120.4			122.9			117.5			6.0	%		335.8			360.8			7.4	%
Total Revenues			2,612.8			2,661.9			2,713.9			2,803.8			2,547.7			-2.5	%		7,744.7			8,065.4			4.1	%
Benefits and Expenses
Interest credited			622.7			632.9			614.7			624.7			624.8			0.3	%		1,854.9			1,864.2			0.5	%
Benefits			924.1			786.2			833.5			1,028.2			664.8			-28.1	%		2,541.0			2,526.5			-0.6	%
Underwriting, acquisition, insurance and other expenses			688.5			911.4			725.4			637.1			1,038.6			50.8	%		2,155.3			2,401.1			11.4	%
Interest and debt expense			74.5			79.1			71.6			72.0			79.4			6.6	%		211.6			223.0			5.4	%
Total Benefits and Expenses			2,309.8			2,409.6			2,245.2			2,362.0			2,407.6			4.2	%		6,762.8			7,014.8			3.7	%
Income (loss) from continuing operations before taxes			303.0			252.3			468.7			441.8			140.1			-53.8	%		981.9			1,050.6			7.0	%
Federal income tax expense (benefit)			55.2			56.7			129.3			116.4			(11.6	)	NM				226.1			234.1			3.5	%
Income (Loss) from Continuing Operations			247.8			195.6			339.4			325.4			151.7			-38.8	%		755.8			816.5			8.0	%
Income (loss) from discontinued operations, net of federal income taxes (2)			(1.7	)		-			-			-			(8.4	)	NM				28.9			(8.4	)	NM
Net Income (Loss)			246.1			195.6			339.4			325.4			143.3			-41.8	%		784.7			808.1			3.0	%
Preferred stock dividends and accretion of discount			-			-			-			-			-		NM				(36.7	)		-			100.0	%
Write-off of unamortized discount on preferred stock at liquidation			-			-			-			-			-		NM				(130.6	)		-			100.0	%
Adjustment for deferred units of LNC stock in our non-director deferred compensation plans (3)			(1.0	)		-			-			(1.0	)		(4.8	)	NM				(2.9	)		(4.7	)		-62.1	%
Net Income (Loss) Available to Common Stockholders - Diluted		$	245.1		$	195.6		$	339.4		$	324.4		$	138.5			-43.5	%	$	614.5		$	803.4		NM

Earnings (Loss) Per Common Share (Diluted)
Income (loss) from continuing operations		$	0.76		$	0.60		$	1.05		$	1.01		$	0.47			-38.1	%	$	1.85		$	2.55			37.7	%
Income (loss) from discontinued operations, net of federal income taxes (2)			(0.01	)		-			-			-			(0.03	)	NM				0.09			(0.03	)	NM
Net Income (Loss)		$	0.75		$	0.60		$	1.05		$	1.01		$	0.44			-41.3	%	$	1.94		$	2.52			29.9	%

(1)	See page 6 for detail.
(2)	Contains discontinued operations and the gain (loss) on disposition. See Discontinued Operations on page 28 for additional details.
(3)	The numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market adjustment for deferred units of LNC stock in our non-director deferred
	compensation plans if the effect of equity classification would be more dilutive to our diluted EPS.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																			PAGE 8
Consolidated Roll Forwards of DAC, VOBA, DSI and DFEL
Unaudited (in millions)

	For the Three Months Ended															For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			Sept.			Sept.
DAC and VOBA	2010			2010			2011			2011			2011			2010			2011
Balance as of beginning-of-period	$	8,534.5		$	7,918.5		$	8,930.3		$	9,272.2		$	9,271.1		$	9,509.6		$	8,930.3
Business acquired through reinsurance		-			-			-			-			1.7			-			1.7
Deferrals		412.1			468.3			411.6			428.8			415.1			1,198.4			1,255.5
Amortization, net of interest:
Unlocking		62.8			(9.7	)		109.7			179.3			(236.3	)		127.8			52.7
Amortization, net of interest, excluding unlocking		(257.1	)		(322.8	)		(305.3	)		(304.3	)		(279.3	)		(877.1	)		(888.9	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		217.8			135.8			216.0			303.8			(98.8	)		449.1			421.0
Amortization, net of interest, associated with benefit ratio unlocking		(5.8	)		(2.2	)		(1.1	)		0.2			8.6			0.1			7.7
Adjustment related to realized (gains) losses		4.8			(27.1	)		(25.7	)		(21.5	)		3.8			(30.4	)		(43.4	)
Adjustment related to unrealized (gains) losses		(832.8	)		905.3			152.7			(283.6	)		(1,055.2	)		(2,009.9	)		(1,186.1	)
Balance as of End-of-Period	$	7,918.5		$	8,930.3		$	9,272.2		$	9,271.1		$	8,129.5		$	7,918.5		$	8,129.5

DSI
Balance as of beginning-of-period	$	288.6		$	268.7		$	285.6		$	285.9		$	276.1		$	323.3		$	285.6
Deferrals		16.2			12.1			9.8			8.6			10.5			53.4			28.9
Amortization, net of interest:
Unlocking		3.5			(3.8	)		2.8			3.7			2.9			7.8			9.4
Amortization, net of interest, excluding unlocking		(13.9	)		(14.4	)		(15.6	)		(14.8	)		(13.5	)		(43.1	)		(43.9	)
Deferrals, net of amortization included in operating insurance benefits or interest credited		5.8			(6.1	)		(3.0	)		(2.5	)		(0.1	)		18.1			(5.6	)
Amortization, net of interest, associated with benefit ratio unlocking		(0.9	)		(0.3	)		(0.2	)		-			1.2			(0.1	)		1.0
Adjustment related to realized (gains) losses		(3.9	)		(0.3	)		(0.7	)		(1.4	)		(0.7	)		(8.4	)		(2.8	)
Adjustment related to unrealized (gains) losses		(20.9	)		23.6			4.2			(5.9	)		(8.9	)		(64.2	)		(10.6	)
Balance as of End-of-Period	$	268.7		$	285.6		$	285.9		$	276.1		$	267.6		$	268.7		$	267.6

DFEL
Balance as of beginning-of-period	$	1,307.8		$	1,301.7		$	1,502.1		$	1,640.1		$	1,694.1		$	1,337.6		$	1,502.1
Deferrals		141.4			135.6			142.7			134.2			134.4			410.7			411.3
Amortization, net of interest:
Unlocking		9.8			(19.3	)		31.1			(9.4	)		7.1			(5.0	)		28.8
Amortization, net of interest, excluding unlocking		(35.2	)		(46.3	)		(36.4	)		(44.8	)		(47.2	)		(126.7	)		(128.4	)
Deferrals, net of amortization included in operating expense assessments		116.0			70.0			137.4			80.0			94.3			279.0			311.7
Amortization, net of interest, associated with benefit ratio unlocking		(0.7	)		(0.5	)		(0.2	)		-			1.6			0.6			1.4
Adjustment related to realized (gains) losses		0.2			(3.6	)		(3.7	)		(2.0	)		(4.2	)		(3.9	)		(9.9	)
Adjustment related to unrealized (gains) losses		(121.6	)		134.5			4.5			(24.0	)		(447.9	)		(311.6	)		(467.4	)
Balance as of End-of-Period	$	1,301.7		$	1,502.1		$	1,640.1		$	1,694.1		$	1,337.9		$	1,301.7		$	1,337.9

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011													PAGE 9
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended September 30, 2011
Unaudited (in millions)

		Retirement Solutions				Insurance Solutions
				Defined		Life		Group		Other
		Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	14.6	$	-	$	103.9	$	439.7	$	0.8		$	559.0
Surrender charges			8.1		0.5		20.9		-		-			29.5
Mortality assessments			-		-		335.0		-		-			335.0
Expense assessments			308.7		50.5		142.2		-		-			501.4
Net investment income			271.0		193.3		568.7		37.8		79.9			1,150.7
Operating realized gain (loss) (2)			21.6		0.1		-		-		-			21.7
Amortization of deferred gain on business sold through reinsurance			-		-		-		-		18.1			18.1
Other revenues and fees			85.6		3.4		5.4		1.9		21.3			117.6
Total Operating Revenues			709.6		247.8		1,176.1		479.4		120.1			2,733.0
Operating Expenses
Interest credited			177.1		109.5		311.9		0.8		26.5			625.8
Benefits			87.0		1.6		152.5		319.3		33.7			594.1
Underwriting, acquisition, insurance and other expenses			272.8		81.1		526.7		116.5		50.2			1,047.3
Interest and debt expense			-		-		-		-		71.0			71.0
Total Operating Expenses			536.9		192.2		991.1		436.6		181.4			2,338.2
Income (loss) from operations before federal income taxes			172.7		55.6		185.0		42.8		(61.3	)		394.8
Federal income tax expense (benefit)			11.1		15.1		53.4		15.0		(17.1	)		77.5
Income (Loss) from Operations		$	161.6	$	40.5	$	131.6	$	27.8	$	(44.2	)	$	317.3

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

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011														PAGE 10
Consolidating Statements of Income (Loss) From Operations
For the Quarter Ended September 30, 2010
Unaudited (in millions)

		Retirement Solutions					Insurance Solutions
				Defined			Life		Group		Other
		Annuities		Contribution			Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	15.7	$	-		$	107.5	$	414.5	$	0.1		$	537.8
Surrender charges			9.0		0.7			22.5		-		-			32.2
Mortality assessments			-		-			319.9		-		-			319.9
Expense assessments			259.9		47.4			109.0		-		-			416.3
Net investment income			281.9		191.9			542.8		35.0		80.7			1,132.3
Operating realized gain (loss) (2)			18.1		0.1			-		-		-			18.2
Amortization of deferred gain on business sold through reinsurance			-		-			-		-		18.1			18.1
Other revenues and fees			75.7		4.5			6.2		2.0		22.7			111.1
Total Operating Revenues			660.3		244.6			1,107.9		451.5		121.6			2,585.9
Operating Expenses
Interest credited			183.5		110.2			299.5		0.8		27.8			621.8
Benefits			43.0		(0.1	)		561.0		329.6		35.2			968.7
Underwriting, acquisition, insurance and other expenses			297.5		65.5			167.6		106.4		45.6			682.6
Interest and debt expense			-		-			-		-		74.5			74.5
Total Operating Expenses			524.0		175.6			1,028.1		436.8		183.1			2,347.6
Income (loss) from operations before federal income taxes			136.3		69.0			79.8		14.7		(61.5	)		238.3
Federal income tax expense (benefit)			10.2		19.1			19.9		5.2		(21.8	)		32.6
Income (Loss) from Operations		$	126.1	$	49.9		$	59.9	$	9.5	$	(39.7	)	$	205.7

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

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011													PAGE 11
Consolidating Statements of Income (Loss) From Operations
For the Nine Months Ended September 30, 2011
Unaudited (in millions)

		Retirement Solutions				Insurance Solutions
				Defined		Life		Group		Other
		Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	59.5	$	-	$	324.0	$	1,336.5	$	0.9		$	1,720.9
Surrender charges			28.6		1.9		73.5		-		-			104.0
Mortality assessments			-		-		986.4		-		-			986.4
Expense assessments			919.6		159.1		413.6		-		-			1,492.3
Net investment income			836.8		598.1		1,735.8		115.4		236.4			3,522.5
Operating realized gain (loss) (2)			65.2		0.3		-		-		-			65.5
Amortization of deferred gain on business sold through reinsurance			-		-		-		-		54.1			54.1
Other revenues and fees			265.3		11.4		18.7		6.0		60.3			361.7
Total Operating Revenues			2,175.0		770.8		3,552.0		1,457.9		351.7			8,307.4
Operating Expenses
Interest credited			529.6		326.5		921.5		2.5		85.1			1,865.2
Benefits			165.0		1.6		1,209.1		991.1		95.3			2,462.1
Underwriting, acquisition, insurance and other expenses			931.8		257.2		763.0		343.8		112.8			2,408.6
Interest and debt expense			-		-		-		-		214.6			214.6
Total Operating Expenses			1,626.4		585.3		2,893.6		1,337.4		507.8			6,950.5
Income (loss) from operations before federal income taxes			548.6		185.5		658.4		120.5		(156.1	)		1,356.9
Federal income tax expense (benefit)			89.6		54.0		208.1		42.2		(52.6	)		341.3
Income (Loss) from Operations		$	459.0	$	131.5	$	450.3	$	78.3	$	(103.5	)	$	1,015.6

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

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011													PAGE 12
Consolidating Statements of Income (Loss) From Operations
For the Nine Months Ended September 30, 2010
Unaudited (in millions)

		Retirement Solutions				Insurance Solutions
				Defined		Life		Group		Other
		Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Operating Revenues
Insurance premiums		$	35.4	$	-	$	327.3	$	1,258.1	$	0.1		$	1,620.9
Surrender charges			29.5		2.5		77.4		-		-			109.4
Mortality assessments			-		-		963.1		-		-			963.1
Expense assessments			769.2		145.2		363.6		-		-			1,278.0
Net investment income			824.2		569.3		1,617.9		102.9		243.9			3,358.2
Operating realized gain (loss) (2)			48.9		0.3		-		-		-			49.2
Amortization of deferred gain on business sold through reinsurance			-		-		-		-		54.3			54.3
Other revenues and fees			227.6		13.1		22.9		5.8		67.3			336.7
Total Operating Revenues			1,934.8		730.4		3,372.2		1,366.8		365.6			7,769.8
Operating Expenses
Interest credited			536.6		330.6		895.7		2.4		89.5			1,854.8
Benefits			127.5		2.0		1,333.6		973.4		104.6			2,541.1
Underwriting, acquisition, insurance and other expenses			839.3		228.5		639.9		308.8		138.9			2,155.4
Interest and debt expense			-		-		-		-		211.6			211.6
Total Operating Expenses			1,503.4		561.1		2,869.2		1,284.6		544.6			6,762.9
Income (loss) from operations before federal income taxes			431.4		169.3		503.0		82.2		(179.0	)		1,006.9
Federal income tax expense (benefit)			70.2		47.5		155.2		28.6		(66.6	)		234.9
Income (Loss) from Operations		$	361.2	$	121.8	$	347.8	$	53.6	$	(112.4	)	$	772.0

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

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011													PAGE 13
Consolidated Balance Sheets and Selected Share Data
Unaudited (in millions)

	As of
	Sept.			Dec.			March			June			Sept.
	2010			2010			2011			2011			2011
ASSETS
Investments:
Corporate bonds	$	52,907.1		$	51,740.5		$	53,174.8		$	54,830.4		$	58,262.0
U.S. Government bonds		218.1			164.8			161.8			239.7			286.0
Foreign government bonds		525.4			508.3			516.0			592.6			641.9
Mortgage-backed securities		11,493.7			10,890.4			10,541.6			10,334.3			10,119.5
Asset-backed securities		161.0			173.8			136.8			126.1			110.4
State and municipal bonds		2,961.3			3,155.4			3,280.0			3,479.3			3,969.7
Hybrid and redeemable preferred securities		1,448.7			1,397.0			1,420.0			1,317.8			1,202.0
VIEs' fixed maturity securities		585.3			583.7			586.8			592.6			699.5
Equity securities		205.3			197.2			144.6			143.7			137.4
Total available-for-sale securities		70,505.9			68,811.1			69,962.4			71,656.5			75,428.4
Trading securities		2,710.9			2,596.4			2,598.0			2,624.7			2,726.2
Mortgage loans on real estate		6,798.8			6,752.1			6,748.7			6,870.5			6,893.3
Real estate		218.9			202.1			188.9			149.9			135.8
Policy loans		2,879.1			2,864.7			2,837.1			2,877.1			2,873.5
Derivative investments		1,903.9			1,076.0			945.7			1,097.0			3,028.7
Other investments		1,096.5			1,037.7			1,029.4			1,002.3			1,104.7
Total investments		86,114.0			83,340.1			84,310.2			86,278.0			92,190.6
Cash and invested cash		3,546.7			2,741.4			2,216.4			2,911.8			4,832.7
DAC and VOBA		7,918.5			8,930.3			9,272.2			9,271.1			8,129.5
Premiums and fees receivable		308.2			334.6			400.8			370.3			383.4
Accrued investment income		988.7			932.8			988.9			994.2			1,023.3
Reinsurance recoverables		6,667.8			6,526.8			6,580.0			6,556.2			6,658.8
Goodwill		3,019.4			3,019.4			3,019.4			3,019.4			3,019.4
Other assets		3,350.9			3,368.2			3,292.9			3,307.4			3,314.5
Separate account assets		78,575.7			84,630.1			88,236.3			88,845.6			78,194.6
Total Assets	$	190,489.9		$	193,823.7		$	198,317.1		$	201,554.0		$	197,746.8

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Future contract benefits	$	18,428.0		$	17,459.6		$	17,313.1		$	17,855.5		$	19,969.2
Other contract holder funds		65,770.3			66,477.9			67,124.8			67,863.9			68,581.0
Short-term debt		101.0			351.4			351.6			251.3			549.9
Long-term debt categorized by standard rating agency leverage definitions:
Operating (see note (4) on page 3 for details)		1,122.2			1,122.2			1,122.2			1,122.2			1,122.3
Financial		4,821.0			4,276.8			4,247.4			4,606.5			4,226.1
Reinsurance related embedded derivatives		132.0			101.5			91.0			119.1			177.3
Funds withheld reinsurance liabilities		1,135.6			1,149.5			1,134.7			1,107.1			1,072.0
Deferred gain on indemnity reinsurance		487.1			468.3			449.6			430.9			412.2
Payables for collateral on investments		2,567.0			1,659.0			1,554.2			1,805.5			3,855.1
VIEs' liabilities		156.5			132.1			130.0			129.5			203.0
Other liabilities		3,636.0			3,189.5			3,472.5			3,831.2			4,465.0
Separate account liabilities		78,575.7			84,630.1			88,236.3			88,845.6			78,194.6
Total liabilities		176,932.4			181,017.9			185,227.4			187,968.3			182,827.7
Stockholders' Equity
Series A preferred stock		0.4			0.4			0.4			0.4			0.4
Common stock		8,141.9			8,124.2			8,063.5			7,937.6			7,791.5
Retained earnings		3,753.7			3,933.5			4,243.2			4,535.7			4,664.0
AOCI:
Net unrealized gain (loss) on available-for-sale securities		2,060.1			1,071.8			1,093.8			1,440.7			2,642.5
Unrealized other-than-temporary impairment on available-for-sale securities		(131.7	)		(128.9	)		(108.5	)		(107.7	)		(107.0	)
Net unrealized gain (loss) on derivative instruments		(60.5	)		(14.5	)		(22.2	)		(40.0	)		108.0
Foreign currency translation adjustment		2.4			0.6			1.6			(2.6	)		2.7
Funded status of employee benefit plans		(208.8	)		(181.3	)		(182.1	)		(178.4	)		(183.0	)
Total accumulated other comprehensive income (loss)		1,661.5			747.7			782.6			1,112.0			2,463.2
Total stockholders' equity		13,557.5			12,805.8			13,089.7			13,585.7			14,919.1
Total Liabilities and Stockholders' Equity	$	190,489.9		$	193,823.7		$	198,317.1		$	201,554.0		$	197,746.8
Share Data Per Common Share
Stockholders' equity per share	$	42.78		$	40.54		$	41.74		$	44.04		$	49.43
Book value, excluding AOCI		37.54			38.17			39.24			40.43			41.27
Common shares outstanding - assuming conversion of Series A preferred shares		316.9			315.9			313.6			308.5			301.8

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011													PAGE 14
Balance Sheet Data - Segment Highlights
Unaudited (in millions)

		Retirement Solutions				Insurance Solutions
As of September 30, 2011				Defined		Life		Group		Other
		Annuities		Contribution		Insurance		Protection		Operations (1)			Consolidated
Assets
Allocated investments and cash and invested cash (2)		$	27,819.6	$	14,968.4	$	42,717.1	$	2,797.8	$	8,720.4		$	97,023.3
DAC and VOBA			2,276.6		339.3		5,332.3		181.4		(0.1	)		8,129.5
Goodwill			439.8		20.2		2,188.5		274.3		96.6			3,019.4
DSI and other intangibles			265.7		3.9		78.0		-		118.2			465.8
Reinsurance recoverables			567.6		-		2,132.6		49.6		3,909.0			6,658.8
Separate account assets			60,713.7		12,114.0		5,205.7		-		161.2			78,194.6

Liabilities and Capital
Future contract benefits			3,820.4		9.6		7,891.5		1,698.6		6,549.1			19,969.2
Other contract holder funds			20,621.8		13,389.4		33,456.3		252.4		861.1			68,581.0

Allocated capital (3)			3,471.9		1,031.1		8,491.0		1,170.5		(1,699.7	)		12,464.8



As of December 31, 2010

Assets
Allocated investments and cash and invested cash (2)		$	22,957.0	$	14,131.6	$	38,248.2	$	2,684.3	$	8,060.4		$	86,081.5
DAC and VOBA			2,250.5		359.9		6,144.8		175.0		0.1			8,930.3
Goodwill			439.8		20.2		2,188.5		274.3		96.6			3,019.4
DSI and other intangibles			283.6		3.9		81.0		-		118.1			486.6
Reinsurance recoverables			495.7		-		2,014.0		45.1		3,972.0			6,526.8
Separate account assets			64,782.4		13,916.9		5,749.3		-		181.5			84,630.1

Liabilities and Capital
Future contract benefits			1,707.2		1.5		7,553.7		1,606.8		6,590.4			17,459.6
Other contract holder funds			20,134.3		12,773.1		32,436.0		269.1		865.4			66,477.9

Allocated capital (3)			2,989.7		1,076.6		8,385.0		1,180.3		(1,573.5	)		12,058.1

(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).

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 15
Retirement Solutions - Annuities
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Insurance premiums (1)		$	15.7		$	17.6		$	23.1		$	21.8		$	14.6			-7.0	%	$	35.4		$	59.5			68.1	%
Surrender charges			9.0			7.2			10.5			10.0			8.1			-10.0	%		29.5			28.6			-3.1	%
Expense assessments			259.9			292.2			299.4			311.5			308.7			18.8	%		769.2			919.6			19.6	%
Net investment income			281.9			295.1			288.1			277.7			271.0			-3.9	%		824.2			836.8			1.5	%
Operating realized gain (loss) (2)			18.1			19.9			21.5			22.1			21.6			19.3	%		48.9			65.2			33.3	%
Other revenues and fees (3)			75.7			87.9			89.3			90.4			85.6			13.1	%		227.6			265.3			16.6	%
Total Operating Revenues			660.3			719.9			731.9			733.5			709.6			7.5	%		1,934.8			2,175.0			12.4	%
Operating Expenses
Interest credited			183.5			188.9			174.5			178.0			177.1			-3.5	%		536.6			529.6			-1.3	%
Benefits (1)			43.0			47.2			35.4			42.6			87.0			102.3	%		127.5			165.0			29.4	%
Underwriting, acquisition, insurance and other expenses			297.5			328.9			333.4			325.6			272.8			-8.3	%		839.3			931.8			11.0	%
Total Operating Expenses			524.0			565.0			543.3			546.2			536.9			2.5	%		1,503.4			1,626.4			8.2	%
Income (loss) from operations before federal income taxes			136.3			154.9			188.6			187.3			172.7			26.7	%		431.4			548.6			27.2	%
Federal income tax expense (benefit)			10.2			31.7			41.6			36.9			11.1			8.8	%		70.2			89.6			27.6	%
Income (Loss) from Operations		$	126.1		$	123.2		$	147.0		$	150.4		$	161.6			28.2	%	$	361.2		$	459.0			27.1	%

Effective Tax Rate			7.5	%		20.5	%		22.1	%		19.7	%		6.4	%					16.3	%		16.3	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill		$	2,968.9		$	2,949.9		$	2,987.6		$	3,012.3		$	3,255.6					$	2,935.6		$	3,085.2
Average goodwill			439.8			439.8			439.8			439.8			439.8						439.8			439.8
Average equity, excluding goodwill		$	2,529.1		$	2,510.1		$	2,547.8		$	2,572.5		$	2,815.8					$	2,495.8		$	2,645.4
Return on Equity, Excluding AOCI
Including goodwill			17.0	%		16.7	%		19.7	%		20.0	%		19.9	%					16.4	%		19.8	%
Excluding goodwill			19.9	%		19.6	%		23.1	%		23.4	%		23.0	%					19.3	%		23.1	%

Income (Loss) from Operations - Basis Points on Average Account Values - Annualized			65			59			68			68			75			10			63			70			7

Operating Realized Gain (Loss) (2)
Indexed annuity net derivatives results (4)		$	0.7		$	0.8		$	1.1		$	0.4		$	(1.0	)	NM			$	0.4		$	0.5			25.0	%
GLB (5)			17.4			19.1			20.4			21.7			22.6			29.9	%		48.5			64.7			33.4	%
Total Operating Realized Gain (Loss)		$	18.1		$	19.9		$	21.5		$	22.1		$	21.6			19.3	%	$	48.9		$	65.2			33.3	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions		$	189.1		$	180.9		$	176.6		$	193.4		$	182.3			-3.6	%	$	515.8		$	552.3			7.1	%
General and administrative expenses			85.6			90.8			86.9			93.1			85.5			-0.1	%		245.7			265.5			8.1	%
Inter-segment reimbursement associated with reserve
financing and LOC expenses (6)			-			(1.0	)		(0.5	)		0.4			(0.9	)	NM				0.2			(1.0	)	NM
Broker-dealer commissions and general and administrative expenses			77.6			87.2			90.8			88.5			85.0			9.5	%		228.5			264.3			15.7	%
Taxes, licenses and fees			3.4			5.6			9.4			8.2			6.7			97.1	%		18.6			24.3			30.6	%
Total commissions and expenses incurred			355.7			363.5			363.2			383.6			358.6			0.8	%		1,008.8			1,105.4			9.6	%
Less: commissions and expenses capitalized			(171.3	)		(156.1	)		(149.8	)		(165.5	)		(160.5	)		6.3	%		(467.4	)		(475.8	)		-1.8	%
Amortization of DAC and VOBA, net of interest			113.1			121.5			120.0			107.5			74.7			-34.0	%		297.9			302.2			1.4	%
Total Underwriting, Acquisition, Insurance and Other Expenses		$	297.5		$	328.9		$	333.4		$	325.6		$	272.8			-8.3	%	$	839.3		$	931.8			11.0	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (7)			44			44			40			42			40			(4	)		43			40			(3	)

(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)	Other revenues and fees consists primarily of fees attributable to broker-dealer services that are subject to market volatility.
(4)	See note (1) on page 6 for details.
(5)	See note (2) on page 6 for details.
(6)	Represents reimbursements to Retirement Solutions - Annuities from the Insurance Solutions - Life Insurance segment for reserve financing, net of expenses incurred by Retirement
	Solutions - Annuities for its use of LOCs. The inter-segment amounts are not reported on our Consolidated Statements of Income (Loss).
(7)	Includes distribution costs.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																			PAGE 16
Retirement Solutions - Annuities
DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended															For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			Sept.			Sept.
DAC and VOBA	2010			2010			2011			2011			2011			2010			2011
Balance as of beginning-of-period	$	2,156.5		$	1,934.2		$	2,250.5		$	2,327.9		$	2,299.2		$	2,381.0		$	2,250.5
Deferrals		171.3			156.1			149.8			165.5			160.5			467.4			475.8
Amortization, net of interest:
Unlocking		16.2			12.8			29.0			33.0			53.9			103.1			115.9
Amortization, net of interest, excluding unlocking		(129.3	)		(134.3	)		(149.0	)		(140.5	)		(128.6	)		(401.0	)		(418.1	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		58.2			34.6			29.8			58.0			85.8			169.5			173.6
Amortization, net of interest, associated with benefit ratio unlocking		(5.3	)		(2.2	)		(1.1	)		0.1			8.4			0.6			7.4
Adjustment related to realized (gains) losses		(19.2	)		(4.9	)		(8.4	)		(10.1	)		0.8			(50.8	)		(17.7	)
Adjustment related to unrealized (gains) losses		(256.0	)		288.8			57.1			(76.7	)		(117.6	)		(566.1	)		(137.2	)
Balance as of End-of-Period	$	1,934.2		$	2,250.5		$	2,327.9		$	2,299.2		$	2,276.6		$	1,934.2		$	2,276.6

DSI
Balance as of beginning-of-period	$	286.3		$	266.7		$	283.6		$	283.8		$	274.2		$	320.6		$	283.6
Deferrals		16.1			12.0			9.7			8.7			10.5			53.2			28.9
Amortization, net of interest:
Unlocking		3.5			(3.7	)		2.8			3.6			2.7			7.8			9.1
Amortization, net of interest, excluding unlocking		(13.8	)		(14.1	)		(15.5	)		(14.7	)		(13.3	)		(42.9	)		(43.5	)
Deferrals, net of amortization included in operating interest credited		5.8			(5.8	)		(3.0	)		(2.4	)		(0.1	)		18.1			(5.5	)
Amortization, net of interest, associated with benefit ratio unlocking		(0.9	)		(0.3	)		(0.2	)		-			1.2			(0.1	)		1.0
Adjustment related to realized (gains) losses		(3.8	)		(0.4	)		(0.7	)		(1.4	)		(0.7	)		(8.3	)		(2.8	)
Adjustment related to unrealized (gains) losses		(20.7	)		23.4			4.1			(5.8	)		(8.9	)		(63.6	)		(10.6	)
Balance as of End-of-Period	$	266.7		$	283.6		$	283.8		$	274.2		$	265.7		$	266.7		$	265.7

DFEL
Balance as of beginning-of-period	$	201.2		$	210.0		$	222.0		$	234.2		$	246.9		$	182.1		$	222.0
Deferrals		18.7			18.9			16.8			18.6			15.7			55.7			51.1
Amortization, net of interest:
Unlocking		4.0			(3.8	)		0.2			1.0			(3.7	)		3.9			(2.5	)
Amortization, net of interest, excluding unlocking		(5.7	)		(5.7	)		(5.9	)		(5.7	)		(5.4	)		(17.0	)		(17.0	)
Deferrals, net of amortization included in operating expense assessments		17.0			9.4			11.1			13.9			6.6			42.6			31.6
Amortization, net of interest, associated with benefit ratio unlocking		(0.7	)		(0.5	)		(0.2	)		-			1.6			0.6			1.4
Adjustment related to realized (gains) losses		(5.2	)		1.8			(1.7	)		(0.7	)		(4.7	)		(9.1	)		(7.1	)
Adjustment related to unrealized (gains) losses		(2.3	)		1.3			3.0			(0.5	)		(1.2	)		(6.2	)		1.3
Balance as of End-of-Period	$	210.0		$	222.0		$	234.2		$	246.9		$	249.2		$	210.0		$	249.2

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 17
Retirement Solutions - Annuities
Account Value Roll Forwards and Information
Unaudited (in billions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Fixed Annuities (1)
Balance as of beginning-of-period		$	20.397		$	21.075		$	20.952		$	20.947		$	21.224			4.1	%	$	19.940		$	20.952			5.1	%
Gross deposits			1.774			1.155			1.116			1.307			1.294			-27.1	%		4.413			3.717			-15.8	%
Withdrawals and deaths			(0.485	)		(0.593	)		(0.513	)		(0.525	)		(0.590	)		-21.6	%		(1.427	)		(1.628	)		-14.1	%
Net flows			1.289			0.562			0.603			0.782			0.704			-45.4	%		2.986			2.089			-30.0	%
Transfers to variable annuities			(0.882	)		(0.942	)		(0.832	)		(0.699	)		(0.609	)		31.0	%		(2.455	)		(2.140	)		12.8	%
Interest credited			0.255			0.245			0.214			0.186			0.046			-82.0	%		0.551			0.446			-19.1	%
Sales inducements deferred			0.016			0.012			0.010			0.008			0.010			-37.5	%		0.053			0.028			-47.2	%
Balance as of End-of-Period (Gross)			21.075			20.952			20.947			21.224			21.375			1.4	%		21.075			21.375			1.4	%
Reinsurance ceded			(0.978	)		(0.962	)		(0.949	)		(0.935	)		(0.920	)		5.9	%		(0.978	)		(0.920	)		5.9	%
Balance as of End-of-Period (Net of Ceded)		$	20.097		$	19.990		$	19.998		$	20.289		$	20.455			1.8	%	$	20.097		$	20.455			1.8	%

Variable Annuities (2)
Balance as of beginning-of-period		$	53.921		$	60.132		$	64.858		$	67.787		$	68.551			27.1	%	$	55.368		$	64.858			17.1	%
Gross deposits			1.204			1.435			1.523			1.620			1.415			17.5	%		3.664			4.558			24.4	%
Withdrawals and deaths			(1.209	)		(1.454	)		(1.643	)		(1.702	)		(1.456	)		-20.4	%		(3.638	)		(4.801	)		-32.0	%
Net flows			(0.005	)		(0.019	)		(0.120	)		(0.082	)		(0.041	)	NM				0.026			(0.243	)	NM
Transfers from fixed annuities			0.882			0.942			0.832			0.699			0.609			-31.0	%		2.454			2.140			-12.8	%
Investment increase and change in market value			5.334			3.803			2.217			0.147			(8.345	)	NM				2.284			(5.981	)	NM
Balance as of End-of-Period		$	60.132		$	64.858		$	67.787		$	68.551		$	60.774			1.1	%	$	60.132		$	60.774			1.1	%

Total Annuities
Balance as of beginning-of-period		$	74.318		$	81.207		$	85.810		$	88.734		$	89.775			20.8	%	$	75.308		$	85.810			13.9	%
Gross deposits			2.978			2.590			2.639			2.927			2.709			-9.0	%		8.077			8.275			2.5	%
Withdrawals and deaths			(1.694	)		(2.047	)		(2.156	)		(2.227	)		(2.046	)		-20.8	%		(5.065	)		(6.429	)		-26.9	%
Net flows			1.284			0.543			0.483			0.700			0.663			-48.4	%		3.012			1.846			-38.7	%
Transfers between fixed and variable accounts			-			-			-			-			-		NM				(0.001	)		-			100.0	%
Interest credited and change in market value			5.589			4.048			2.431			0.333			(8.299	)	NM				2.835			(5.535	)	NM
Sales inducements deferred			0.016			0.012			0.010			0.008			0.010			-37.5	%		0.053			0.028			-47.2	%
Balance as of End-of-Period (Gross)			81.207			85.810			88.734			89.775			82.149			1.2	%		81.207			82.149			1.2	%
Reinsurance ceded			(0.978	)		(0.962	)		(0.949	)		(0.935	)		(0.920	)		5.9	%		(0.978	)		(0.920	)		5.9	%
Balance as of End-of-Period (Net of Ceded)		$	80.229		$	84.848		$	87.785		$	88.840		$	81.229			1.2	%	$	80.229		$	81.229			1.2	%

Variable Annuities Under Agreement - Included Above		$	0.074		$	0.076		$	0.076		$	0.073		$	0.060			-18.9	%	$	0.074		$	0.060			-18.9	%

Incremental Deposits (3)
Fixed annuities		$	1.772		$	1.154		$	1.114		$	1.306		$	1.292			-27.1	%	$	4.409		$	3.712			-15.8	%
Variable annuities			1.198			1.431			1.515			1.614			1.411			17.8	%		3.651			4.540			24.3	%
Total Incremental Deposits		$	2.970		$	2.585		$	2.629		$	2.920		$	2.703			-9.0	%	$	8.060		$	8.252			2.4	%

(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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																									PAGE 18
Retirement Solutions - Annuities
Account Value Information
Unaudited (billions of dollars)

	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2010			2010			2011			2011			2011			Change			2010			2011			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits	$	0.104		$	0.068		$	0.077		$	0.091		$	0.092			-11.5	%	$	0.306		$	0.260			-15.0	%
Withdrawals and deaths		(0.256	)		(0.336	)		(0.266	)		(0.284	)		(0.318	)		-24.2	%		(0.763	)		(0.868	)		-13.8	%
Net flows	$	(0.152	)	$	(0.268	)	$	(0.189	)	$	(0.193	)	$	(0.226	)		-48.7	%	$	(0.457	)	$	(0.608	)		-33.0	%

Gross fixed contract account values	$	8.915		$	8.740		$	8.627		$	8.517		$	8.375			-6.1	%	$	8.915		$	8.375			-6.1	%
Reinsurance ceded		(0.978	)		(0.962	)		(0.949	)		(0.935	)		(0.920	)		5.9	%		(0.978	)		(0.920	)		5.9	%
Net fixed contract account values	$	7.937		$	7.778		$	7.678		$	7.582		$	7.455			-6.1	%	$	7.937		$	7.455			-6.1	%

Indexed Annuities
Deposits	$	0.854		$	0.327		$	0.378		$	0.480		$	0.462			-45.9	%	$	1.700		$	1.320			-22.4	%
Withdrawals and deaths		(0.130	)		(0.167	)		(0.158	)		(0.153	)		(0.190	)		-46.2	%		(0.365	)		(0.501	)		-37.3	%
Net flows	$	0.724		$	0.160		$	0.220		$	0.327		$	0.272			-62.4	%	$	1.335		$	0.819			-38.7	%

Indexed Annuity Account Values	$	8.389		$	8.680		$	9.016		$	9.421		$	9.634			14.8	%	$	8.389		$	9.634			14.8	%

Fixed Portion of Variable Contracts
Deposits	$	0.817		$	0.759		$	0.661		$	0.736		$	0.740			-9.4	%	$	2.408		$	2.137			-11.3	%
Withdrawals and deaths		(0.099	)		(0.090	)		(0.089	)		(0.088	)		(0.082	)		17.2	%		(0.299	)		(0.259	)		13.4	%
Net flows	$	0.718		$	0.669		$	0.572		$	0.648		$	0.658			-8.4	%	$	2.109		$	1.878			-11.0	%

Fixed Portion of Variable Contract Account Values	$	3.771		$	3.532		$	3.304		$	3.286		$	3.366			-10.7	%	$	3.771		$	3.366			-10.7	%

Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits	$	2.021		$	2.194		$	2.184		$	2.356		$	2.155			6.6	%	$	6.072		$	6.695			10.3	%
Withdrawals and deaths		(1.308	)		(1.544	)		(1.732	)		(1.790	)		(1.538	)		-17.6	%		(3.937	)		(5.060	)		-28.5	%
Net flows	$	0.713		$	0.650		$	0.452		$	0.566		$	0.617			-13.5	%	$	2.135		$	1.635			-23.4	%

Variable Contract Account Values	$	63.903		$	68.390		$	71.091		$	71.837		$	64.140			0.4	%	$	63.903		$	64.140			0.4	%

Average Daily Variable Annuity Separate Account Values	$	57.255		$	62.832		$	66.459		$	68.262		$	65.169			13.8	%	$	56.623		$	66.625			17.7	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										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 Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			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			5.48	%		5.46	%	��	5.27	%		5.19	%		5.08	%		(40	)		5.53	%		5.18	%		(35	)
Commercial mortgage loan prepayment and bond make whole premiums			0.13	%		0.26	%		0.26	%		0.11	%		0.12	%		(1	)		0.08	%		0.16	%		8
Alternative investments			0.00	%		0.01	%		0.01	%		0.00	%		0.00	%		-			0.00	%		0.00	%		-
Net investment income yield on reserves			5.61	%		5.73	%		5.54	%		5.30	%		5.20	%		(41	)		5.61	%		5.34	%		(27	)
Interest rate credited to contract holders			3.57	%		3.47	%		3.31	%		3.38	%		3.33	%		(24	)		3.53	%		3.34	%		(19	)
Interest rate spread			2.04	%		2.26	%		2.23	%		1.92	%		1.87	%		(17	)		2.08	%		2.00	%		(8	)

Variable Annuity Expense Assessments (in millions) (2)		$	318.0		$	354.4		$	365.7		$	380.9		$	381.2			19.9	%	$	933.6		$	1,127.8			20.8	%

GLB Expense Assessments (in millions) (3)		$	71.6		$	76.5		$	81.7		$	86.8		$	91.0			27.1	%	$	202.8		$	259.5			28.0	%

Components of Attributed Fees on GLB (in millions)
Attributed fee included in operating revenues and income from operations (4)		$	25.3		$	26.6		$	28.1		$	29.4		$	30.6			20.9	%	$	72.1		$	88.1			22.2	%
Attributed fee excluded from operating revenues and income from operations (5)			32.8			35.7			38.3			40.1			42.0			28.0	%		92.5			120.4			30.2	%
Total Attributed Fees on GLB		$	58.1		$	62.3		$	66.4		$	69.5		$	72.6			25.0	%	$	164.6		$	208.5			26.7	%

GLB Account Values by Type
Guaranteed withdrawal benefits (6)		$	27.760		$	30.339		$	31.920		$	32.606		$	29.554			6.5	%	$	27.760		$	29.554			6.5	%
Guaranteed income benefits (7)			10.470			11.379			12.131			12.605			11.513			10.0	%		10.470			11.513			10.0	%
Total GLB Account Values		$	38.230		$	41.718		$	44.051		$	45.211		$	41.067			7.4	%	$	38.230		$	41.067			7.4	%

(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)	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 note (4) and note (5) and disclosed above.
(3)	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 note (4) and note (5) and disclosed above.
(4)	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.
(5)	Includes the net valuation premium of the GLB attributed rider fees in excluded realized gain (loss). See note (6) on page 6 for further discussion.
(6)	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.
(7)	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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 20
Retirement Solutions - Defined Contribution
Income (Loss) from Operations, Operational Data and DAC, VOBA and DSI Roll Forwards
Unaudited (millions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Surrender charges		$	0.7		$	0.7		$	0.7		$	0.7		$	0.5			-28.6	%	$	2.5		$	1.9			-24.0	%
Expense assessments			47.4			52.3			53.9			54.7			50.5			6.5	%		145.2			159.1			9.6	%
Net investment income			191.9			199.9			204.9			199.9			193.3			0.7	%		569.3			598.1			5.1	%
Operating realized gain (loss) (1)			0.1			0.1			0.1			0.1			0.1			0.0	%		0.3			0.3			0.0	%
Other revenues and fees (2)			4.5			4.3			3.7			4.3			3.4			-24.4	%		13.1			11.4			-13.0	%
Total Operating Revenues			244.6			257.3			263.3			259.7			247.8			1.3	%		730.4			770.8			5.5	%
Operating Expenses
Interest credited			110.2			109.4			108.3			108.7			109.5			-0.6	%		330.6			326.5			-1.2	%
Benefits			(0.1	)		0.1			-			-			1.6		NM				2.0			1.6			-20.0	%
Underwriting, acquisition, insurance and other expenses			65.5			102.9			84.8			91.3			81.1			23.8	%		228.5			257.2			12.6	%
Total Operating Expenses			175.6			212.4			193.1			200.0			192.2			9.5	%		561.1			585.3			4.3	%
Income (loss) from operations before federal income taxes			69.0			44.9			70.2			59.7			55.6			-19.4	%		169.3			185.5			9.6	%
Federal income tax expense (benefit)			19.1			12.4			21.5			17.4			15.1			-20.9	%		47.5			54.0			13.7	%
Income (Loss) from Operations		$	49.9		$	32.5		$	48.7		$	42.3		$	40.5			-18.8	%	$	121.8		$	131.5			8.0	%

Effective Tax Rate			27.7	%		27.6	%		30.6	%		29.1	%		27.2	%					28.1	%		29.1	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill		$	1,032.4		$	1,047.8		$	1,073.7		$	1,060.8		$	1,041.0					$	1,045.4		$	1,058.5
Average goodwill			20.2			20.2			20.2			20.2			20.2						20.2			20.2
Average equity, excluding goodwill		$	1,012.2		$	1,027.6		$	1,053.5		$	1,040.6		$	1,020.8					$	1,025.2		$	1,038.3
Return on Equity, Excluding AOCI
Including goodwill			19.3	%		12.4	%		18.1	%		16.0	%		15.6	%					15.5	%		16.6	%
Excluding goodwill			19.7	%		12.7	%		18.5	%		16.3	%		15.9	%					15.8	%		16.9	%

Income (Loss) from Operations - Basis Points on Average Account Values - Annualized			55			34			49			42			42			(13	)		45			45			-

Operating Realized Gain (Loss) (1)
GLB (3)		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.3		$	0.3			0.0	%
Total Operating Realized Gain (Loss)		$	0.1		$	0.1		$	0.1		$	0.1		$	0.1			0.0	%	$	0.3		$	0.3			0.0	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions		$	15.2		$	17.2		$	17.0		$	16.9		$	15.8			3.9	%	$	47.3		$	49.7			5.1	%
General and administrative expenses			60.1			71.3			63.3			71.4			65.4			8.8	%		170.6			200.1			17.3	%
Taxes, licenses and fees			2.9			3.2			4.8			3.8			3.4			17.2	%		9.8			12.0			22.4	%
Total commissions and expenses incurred			78.2			91.7			85.1			92.1			84.6			8.2	%		227.7			261.8			15.0	%
Less: commissions and expenses capitalized			(15.1	)		(20.8	)		(16.5	)		(18.8	)		(15.6	)		-3.3	%		(46.0	)		(50.9	)		-10.7	%
Amortization of DAC and VOBA, net of interest			2.4			32.0			16.2			18.0			12.1		NM				46.8			46.3			-1.1	%
Total Underwriting, Acquisition, Insurance and Other Expenses		$	65.5		$	102.9		$	84.8		$	91.3		$	81.1			23.8	%	$	228.5		$	257.2			12.6	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized (4)			67			75			64			71			68			1			63			69			6

DAC and VOBA
Balance as of beginning-of-period		$	375.2		$	277.4		$	359.9		$	420.1		$	394.5					$	537.7		$	359.9
Deferrals			15.1			20.8			16.5			18.8			15.6						46.0			50.9
Amortization, net of interest:
Unlocking			17.3			(8.2	)		3.3			(0.3	)		5.6						12.3			8.6
Amortization, net of interest, excluding unlocking			(19.7	)		(23.8	)		(19.5	)		(17.7	)		(17.7	)					(59.1	)		(54.9	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses			12.7			(11.2	)		0.3			0.8			3.5						(0.8	)		4.6
Amortization, net of interest, associated with benefit ratio unlocking			(0.5	)		-			-			-			0.2						(0.4	)		0.2
Adjustment related to realized (gains) losses			0.9			0.9			-			(0.5	)		(0.6	)					(0.7	)		(1.1	)
Adjustment related to unrealized (gains) losses			(110.9	)		92.8			59.9			(25.9	)		(58.3	)					(258.4	)		(24.3	)
Balance as of End-of-Period		$	277.4		$	359.9		$	420.1		$	394.5		$	339.3					$	277.4		$	339.3

DSI
Balance as of beginning-of-period		$	2.3		$	1.9		$	2.0		$	2.1		$	2.0					$	2.7		$	2.0
Deferrals			-			0.1			-			-			-						0.1			-
Amortization, net of interest:
Unlocking			-			(0.2	)		0.1			-			0.2						-			0.3
Amortization, net of interest, excluding unlocking			(0.1	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)					(0.3	)		(0.3	)
Deferrals, net of amortization included in operating interest credited			(0.1	)		(0.2	)		-			(0.1	)		0.1						(0.2	)		-
Adjustment related to unrealized (gains) losses			(0.3	)		0.3			0.1			-			(0.1	)					(0.6	)		-
Balance as of End-of-Period		$	1.9		$	2.0		$	2.1		$	2.0		$	2.0					$	1.9		$	2.0

(1)	Included in income (loss) from operations.
(2)	Other revenues and fees consist primarily of mutual fund account program fees for mid-to-large employers.
(3)	See note (2) on page 6 for details.
(4)	Includes distribution costs.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 21
Retirement Solutions - Defined Contribution
Account Value Roll Forwards and Information
Unaudited (in billions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Fixed Annuities (1)
Balance as of beginning-of-period		$	12.580		$	12.734		$	12.779		$	12.956		$	13.025			3.5	%	$	12.246		$	12.779			4.4	%
Gross deposits			0.349			0.340			0.346			0.318			0.378			8.3	%		0.992			1.042			5.0	%
Withdrawals and deaths			(0.455	)		(0.477	)		(0.336	)		(0.437	)		(0.356	)		21.8	%		(1.202	)		(1.129	)		6.1	%
Net flows			(0.106	)		(0.137	)		0.010			(0.119	)		0.022			120.8	%		(0.210	)		(0.087	)		58.6	%
Transfers from variable annuities			0.148			0.072			0.060			0.080			0.237			60.1	%		0.368			0.377			2.4	%
Interest credited			0.112			0.110			0.107			0.108			0.111			-0.9	%		0.330			0.326			-1.2	%
Balance as of End-of-Period		$	12.734		$	12.779		$	12.956		$	13.025		$	13.395			5.2	%	$	12.734		$	13.395			5.2	%

Variable Annuities (2)
Balance as of beginning-of-period		$	11.967		$	12.956		$	13.927		$	14.400		$	14.254			19.1	%	$	12.953		$	13.927			7.5	%
Gross deposits			0.368			0.443			0.415			0.393			0.391			6.3	%		1.171			1.199			2.4	%
Withdrawals and deaths			(0.473	)		(0.521	)		(0.587	)		(0.516	)		(0.511	)		-8.0	%		(1.637	)		(1.614	)		1.4	%
Net flows			(0.105	)		(0.078	)		(0.172	)		(0.123	)		(0.120	)		-14.3	%		(0.466	)		(0.415	)		10.9	%
Transfers to fixed annuities			(0.079	)		(0.021	)		(0.050	)		(0.040	)		(0.124	)		-57.0	%		(0.148	)		(0.214	)		-44.6	%
Investment increase and change in market value			1.173			1.070			0.695			0.017			(1.888	)	NM				0.617			(1.176	)	NM
Balance as of End-of-Period		$	12.956		$	13.927		$	14.400		$	14.254		$	12.122			-6.4	%	$	12.956		$	12.122			-6.4	%

Total Annuities
Balance as of beginning-of-period		$	24.547		$	25.690		$	26.706		$	27.356		$	27.279			11.1	%	$	25.199		$	26.706			6.0	%
Gross deposits			0.717			0.783			0.761			0.711			0.769			7.3	%		2.163			2.241			3.6	%
Withdrawals and deaths			(0.928	)		(0.998	)		(0.923	)		(0.953	)		(0.867	)		6.6	%		(2.839	)		(2.743	)		3.4	%
Net flows			(0.211	)		(0.215	)		(0.162	)		(0.242	)		(0.098	)		53.6	%		(0.676	)		(0.502	)		25.7	%
Transfers between fixed and variable accounts			0.069			0.051			0.010			0.040			0.113			63.8	%		0.220			0.163			-25.9	%
Interest credited and change in market value			1.285			1.180			0.802			0.125			(1.777	)	NM				0.947			(0.850	)	NM
Balance as of End-of-Period		$	25.690		$	26.706		$	27.356		$	27.279		$	25.517			-0.7	%	$	25.690		$	25.517			-0.7	%

Alliance and Smart Future Mutual Funds (3)
Balance as of beginning-of-period		$	10.493		$	11.398		$	12.118		$	12.952		$	13.008			24.0	%	$	10.103		$	12.118			19.9	%
Plan/participant rollovers			0.147			0.188			0.097			0.061			0.277			88.4	%		0.517			0.435			-15.9	%
Additional contributions			0.398			0.387			0.483			0.427			0.410			3.0	%		1.263			1.320			4.5	%
Gross deposits			0.545			0.575			0.580			0.488			0.687			26.1	%		1.780			1.755			-1.4	%
Withdrawals and deaths			(0.612	)		(0.664	)		(0.284	)		(0.424	)		(0.260	)		57.5	%		(1.091	)		(0.968	)		11.3	%
Net flows			(0.067	)		(0.089	)		0.296			0.064			0.427		NM				0.689			0.787			14.2	%
Transfers			(0.059	)		(0.058	)		(0.037	)		(0.057	)		(0.132	)	NM				(0.193	)		(0.226	)		-17.1	%
Other (4)			-			-			-			-			-		NM				0.186			-			-100.0	%
Interest credited and change in market value			1.031			0.867			0.575			0.049			(1.800	)	NM				0.613			(1.176	)	NM
Balance as of End-of-Period		$	11.398		$	12.118		$	12.952		$	13.008		$	11.503			0.9	%	$	11.398		$	11.503			0.9	%

Total Annuities and Mutual Funds
Balance as of beginning-of-period		$	35.040		$	37.088		$	38.824		$	40.308		$	40.287			15.0	%	$	35.302		$	38.824			10.0	%
Gross deposits			1.262			1.358			1.341			1.199			1.456			15.4	%		3.943			3.996			1.3	%
Withdrawals and deaths			(1.540	)		(1.662	)		(1.207	)		(1.377	)		(1.127	)		26.8	%		(3.930	)		(3.711	)		5.6	%
Net flows			(0.278	)		(0.304	)		0.134			(0.178	)		0.329			218.3	%		0.013			0.285		NM
Transfers			0.010			(0.007	)		(0.027	)		(0.017	)		(0.019	)	NM				0.027			(0.063	)	NM
Other (4)			-			-			-			-			-		NM				0.186			-			-100.0	%
Interest credited and change in market value			2.316			2.047			1.377			0.174			(3.577	)	NM				1.560			(2.026	)	NM
Balance as of End-of-Period		$	37.088		$	38.824		$	40.308		$	40.287		$	37.020			-0.2	%	$	37.088		$	37.020			-0.2	%

Variable Annuities Under Agreement - Included Above		$	0.009		$	0.010		$	0.010		$	0.010		$	0.008			-11.1	%	$	0.009		$	0.008			-11.1	%

(1)	Includes fixed annuity products offered under our mutual fund products and the fixed portion of variable annuities.
(2)	Excludes the fixed portion of variable annuities.
(3)	Includes mutual fund account values and other third party trustee-held assets. These items are not included in the separate accounts reported on our Consolidated
	Balance Sheets, as we do not have any ownership interest in them.
(4)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward. Effective
	January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 22
Retirement Solutions - Defined Contribution
Account Value Roll Forwards by Product
Unaudited (in billions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Total Micro - Small Segment
Balance as of beginning-of-period		$	5.544		$	5.954		$	6.396		$	6.594		$	6.566			18.4	%	$	5.863		$	6.396			9.1	%
Gross deposits			0.277			0.358			0.326			0.315			0.312			12.6	%		0.884			0.953			7.8	%
Withdrawals and deaths			(0.291	)		(0.330	)		(0.384	)		(0.325	)		(0.336	)		-15.5	%		(1.047	)		(1.045	)		0.2	%
Net flows			(0.014	)		0.028			(0.058	)		(0.010	)		(0.024	)		-71.4	%		(0.163	)		(0.092	)		43.6	%
Transfers between fixed and variable accounts			(0.001	)		0.006			(0.006	)		-			-			100.0	%		(0.002	)		(0.006	)	NM
Investment increase and change in market value			0.425			0.408			0.262			(0.018	)		(0.686	)	NM				0.256			(0.442	)	NM
Balance as of End-of-Period		$	5.954		$	6.396		$	6.594		$	6.566		$	5.856			-1.6	%	$	5.954		$	5.856			-1.6	%

Total Mid - Large Segment
Balance as of beginning-of-period		$	14.384		$	15.398		$	16.207		$	17.224		$	17.333			20.5	%	$	13.653		$	16.207			18.7	%
Gross deposits			0.800			0.819			0.831			0.704			0.969			21.1	%		2.489			2.504			0.6	%
Withdrawals and deaths			(0.858	)		(0.895	)		(0.398	)		(0.657	)		(0.408	)		52.4	%		(1.663	)		(1.463	)		12.0	%
Net flows			(0.058	)		(0.076	)		0.433			0.047			0.561		NM				0.826			1.041			26.0	%
Transfers between fixed and variable accounts			0.011			(0.013	)		(0.021	)		(0.017	)		(0.019	)	NM				0.029			(0.057	)	NM
Other (1)			-			-			-			-			-		NM				0.186			-			-100.0	%
Investment increase and change in market value			1.061			0.898			0.605			0.079			(1.769	)	NM				0.704			(1.085	)	NM
Balance as of End-of-Period		$	15.398		$	16.207		$	17.224		$	17.333		$	16.106			4.6	%	$	15.398		$	16.106			4.6	%

Total Multi-Fund® and Other Variable Annuities
Balance as of beginning-of-period		$	15.112		$	15.736		$	16.221		$	16.490		$	16.388			8.4	%	$	15.786		$	16.221			2.8	%
Gross deposits			0.185			0.181			0.184			0.180			0.175			-5.4	%		0.570			0.539			-5.4	%
Withdrawals and deaths			(0.391	)		(0.437	)		(0.425	)		(0.395	)		(0.383	)		2.0	%		(1.220	)		(1.203	)		1.4	%
Net flows			(0.206	)		(0.256	)		(0.241	)		(0.215	)		(0.208	)		-1.0	%		(0.650	)		(0.664	)		-2.2	%
Investment increase and change in market value			0.830			0.741			0.510			0.113			(1.122	)	NM				0.600			(0.499	)	NM
Balance as of End-of-Period		$	15.736		$	16.221		$	16.490		$	16.388		$	15.058			-4.3	%	$	15.736		$	15.058			-4.3	%

Total Annuities and Mutual Funds (2)
Balance as of beginning-of-period		$	35.040		$	37.088		$	38.824		$	40.308		$	40.287			15.0	%	$	35.302		$	38.824			10.0	%
Gross deposits			1.262			1.358			1.341			1.199			1.456			15.4	%		3.943			3.996			1.3	%
Withdrawals and deaths			(1.540	)		(1.662	)		(1.207	)		(1.377	)		(1.127	)		26.8	%		(3.930	)		(3.711	)		5.6	%
Net flows			(0.278	)		(0.304	)		0.134			(0.178	)		0.329			218.3	%		0.013			0.285		NM
Transfers between fixed and variable accounts			0.010			(0.007	)		(0.027	)		(0.017	)		(0.019	)	NM				0.027			(0.063	)	NM
Other (1)			-			-			-			-			-		NM				0.186			-			-100.0	%
Investment increase and change in market value			2.316			2.047			1.377			0.174			(3.577	)	NM				1.560			(2.026	)	NM
Balance as of End-of-Period		$	37.088		$	38.824		$	40.308		$	40.287		$	37.020			-0.2	%	$	37.088		$	37.020			-0.2	%

(1)	Represents LINCOLN ALLIANCE® program assets held by a third-party trustee that were not previously included in the account value roll forward.
	Effective January 1, 2010, all such LINCOLN ALLIANCE® program activity was included in the account value roll forward.
(2)	Includes mutual fund account values and other third party trustee-held assets. These items are not included in the separate accounts reported on our
	Consolidated Balance Sheets, as we do not have any ownership interest in them.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 23
Retirement Solutions - Defined Contribution
Account Value and Interest Rate Spread Information
Unaudited (in billions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Fixed Annuities, Excluding Fixed Portion of Variable Contracts
Deposits		$	0.272		$	0.259		$	0.269		$	0.233		$	0.301			10.7	%	$	0.758		$	0.803			5.9	%
Withdrawals and deaths			(0.291	)		(0.300	)		(0.160	)		(0.285	)		(0.194	)		33.3	%		(0.710	)		(0.639	)		10.0	%
Net flows		$	(0.019	)	$	(0.041	)	$	0.109		$	(0.052	)	$	0.107		NM			$	0.048		$	0.164			241.7	%

Fixed Contract Account Values		$	6.571		$	6.629		$	6.807		$	6.847		$	7.122			8.4	%	$	6.571		$	7.122			8.4	%

Fixed Portion of Variable Contracts
Deposits		$	0.077		$	0.081		$	0.077		$	0.085		$	0.077			0.0	%	$	0.234		$	0.239			2.1	%
Withdrawals and deaths			(0.163	)		(0.177	)		(0.176	)		(0.152	)		(0.162	)		0.6	%		(0.492	)		(0.490	)		0.4	%
Net flows		$	(0.086	)	$	(0.096	)	$	(0.099	)	$	(0.067	)	$	(0.085	)		1.2	%	$	(0.258	)	$	(0.251	)		2.7	%

Fixed Portion of Variable Contract Account Values		$	6.163		$	6.150		$	6.149		$	6.178		$	6.273			1.8	%	$	6.163		$	6.273			1.8	%

Variable Annuities, Including Fixed Portion of Variable Contracts
Deposits		$	0.445		$	0.524		$	0.492		$	0.478		$	0.468			5.2	%	$	1.405		$	1.438			2.3	%
Withdrawals and deaths			(0.636	)		(0.698	)		(0.763	)		(0.668	)		(0.673	)		-5.8	%		(2.129	)		(2.104	)		1.2	%
Net flows		$	(0.191	)	$	(0.174	)	$	(0.271	)	$	(0.190	)	$	(0.205	)		-7.3	%	$	(0.724	)	$	(0.666	)		8.0	%

Variable Contract Account Values		$	19.119		$	20.077		$	20.549		$	20.432		$	18.395			-3.8	%	$	19.119		$	18.395			-3.8	%

Average Daily Variable Annuity Separate Account Values		$	12.471		$	13.485		$	14.178		$	14.284		$	13.217			6.0	%	$	12.744		$	13.889			9.0	%

																	(Basis Point)									(Basis Point)
Interest Rate Spread (1)																	Change									Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses			5.71	%		5.68	%		5.61	%		5.55	%		5.53	%		(18	)		5.71	%		5.57	%		(14	)
Commercial mortgage loan prepayment and bond make whole premiums			0.04	%		0.20	%		0.35	%		0.23	%		0.04	%		-			0.03	%		0.20	%		17
Alternative investments			0.01	%		0.04	%		0.03	%		0.01	%		0.00	%		(1	)		0.02	%		0.01	%		(1	)
Net investment income yield on reserves			5.76	%		5.92	%		5.99	%		5.79	%		5.57	%		(19	)		5.76	%		5.78	%		2
Interest rate credited to contract holders			3.47	%		3.42	%		3.36	%		3.34	%		3.31	%		(16	)		3.52	%		3.34	%		(18	)
Interest rate spread			2.29	%		2.50	%		2.63	%		2.45	%		2.26	%		(3	)		2.24	%		2.44	%		20

(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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																									PAGE 24
Insurance Solutions - Life Insurance
Income (Loss) from Operations, Operational Data and DAC, VOBA and DFEL Roll Forwards
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Insurance premiums	$	107.5		$	112.1		$	108.1		$	112.0		$	103.9			-3.3	%	$	327.3		$	324.0			-1.0	%
Surrender charges		22.5			22.6			23.0			29.6			20.9			-7.1	%		77.4			73.5			-5.0	%
Mortality assessments		319.9			324.3			324.7			326.7			335.0			4.7	%		963.1			986.4			2.4	%
Expense assessments		109.0			183.1			104.7			166.7			142.2			30.5	%		363.6			413.6			13.8	%
Net investment income		542.8			567.9			579.1			588.0			568.7			4.8	%		1,617.9			1,735.8			7.3	%
Other revenues and fees		6.2			7.4			7.4			5.9			5.4			-12.9	%		22.9			18.7			-18.3	%
Total Operating Revenues		1,107.9			1,217.4			1,147.0			1,228.9			1,176.1			6.2	%		3,372.2			3,552.0			5.3	%
Operating Expenses
Interest credited		299.5			302.9			302.1			307.5			311.9			4.1	%		895.7			921.5			2.9	%
Benefits		561.0			400.7			447.2			609.4			152.5			-72.8	%		1,333.6			1,209.1			-9.3	%
Underwriting, acquisition, insurance and other expenses		167.6			267.8			150.3			86.0			526.7			214.3	%		639.9			763.0			19.2	%
Total Operating Expenses		1,028.1			971.4			899.6			1,002.9			991.1			-3.6	%		2,869.2			2,893.6			0.9	%
Income (loss) from operations before federal income taxes		79.8			246.0			247.4			226.0			185.0			131.8	%		503.0			658.4			30.9	%
Federal income tax expense (benefit)		19.9			80.5			81.1			73.6			53.4			168.3	%		155.2			208.1			34.1	%
Income (Loss) from Operations	$	59.9		$	165.5		$	166.3		$	152.4		$	131.6			119.7	%	$	347.8		$	450.3			29.5	%

Effective Tax Rate		24.9	%		32.7	%		32.8	%		32.6	%		28.9	%					30.9	%		31.6	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	8,433.9		$	8,403.4		$	8,445.6		$	8,557.8		$	8,550.1					$	8,364.3		$	8,517.8
Average goodwill		2,188.5			2,188.5			2,188.5			2,188.5			2,188.5						2,188.5			2,188.5
Average equity, excluding goodwill	$	6,245.4		$	6,214.9		$	6,257.1		$	6,369.3		$	6,361.6					$	6,175.8		$	6,329.3
Return on Equity, Excluding AOCI
Including goodwill		2.8	%		7.9	%		7.9	%		7.1	%		6.2	%					5.5	%		7.0	%
Excluding goodwill		3.8	%		10.7	%		10.6	%		9.6	%		8.3	%					7.5	%		9.5	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	156.4		$	190.4		$	172.7		$	166.4		$	160.7			2.7	%	$	473.8		$	499.8			5.5	%
General and administrative expenses		110.5			132.4			112.8			114.1			116.3			5.2	%		318.9			343.2			7.6	%
Expenses associated with reserve financing		13.2			12.1			13.8			14.4			13.9			5.3	%		25.1			42.1			67.7	%
Taxes, licenses and fees		31.1			37.6			36.1			34.0			39.7			27.7	%		90.5			109.8			21.3	%
Amortization of sales force intangibles		1.0			1.0			1.0			1.0			1.0			0.0	%		3.0			3.0			0.0	%
Total commissions and expenses incurred		312.2			373.5			336.4			329.9			331.6			6.2	%		911.3			997.9			9.5	%
Less: commissions and expenses capitalized		(213.0	)		(270.7	)		(234.4	)		(232.3	)		(223.3	)		-4.8	%		(644.2	)		(690.0	)		-7.1	%
Amortization of DAC and VOBA, net of interest		68.4			165.0			48.3			(11.6	)		418.4		NM				372.8			455.1			22.1	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	167.6		$	267.8		$	150.3		$	86.0		$	526.7			214.3	%	$	639.9		$	763.0			19.2	%

General and Administrative Expenses - Basis Points on Average Account Values - Annualized		137			160			133			134			135			(2	)		133			134			1

DAC and VOBA
Balance as of beginning-of-period	$	5,836.9		$	5,538.6		$	6,144.8		$	6,349.3		$	6,401.3					$	6,427.9		$	6,144.8
Business acquired through reinsurance		-			-			-			-			1.7						-			1.7
Deferrals		213.0			270.7			234.4			232.3			223.3						644.2			690.0
Amortization, net of interest:
Unlocking		29.2			(14.2	)		77.5			146.5			(295.8	)					12.4			(71.8	)
Other amortization, net of interest, excluding unlocking		(97.6	)		(150.8	)		(125.8	)		(134.9	)		(122.6	)					(385.2	)		(383.3	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		144.6			105.7			186.1			243.9			(193.4	)					271.4			236.6
Adjustment related to realized (gains) losses		23.1			(23.0	)		(17.3	)		(10.9	)		3.5						21.1			(24.7	)
Adjustment related to unrealized (gains) losses		(466.0	)		523.5			35.7			(181.0	)		(879.1	)					(1,181.8	)		(1,024.4	)
Balance as of End-of-Period	$	5,538.6		$	6,144.8		$	6,349.3		$	6,401.3		$	5,332.3					$	5,538.6		$	5,332.3

DFEL
Balance as of beginning-of-period	$	1,106.3		$	1,091.4		$	1,279.9		$	1,405.6		$	1,446.9					$	1,155.2		$	1,279.9
Deferrals		122.7			116.6			125.9			115.7			118.7						355.1			360.3
Amortization, net of interest:
Unlocking		5.8			(15.4	)		30.9			(10.3	)		10.7						(8.9	)		31.3
Other amortization, net of interest, excluding unlocking		(29.5	)		(40.7	)		(30.5	)		(39.1	)		(41.8	)					(109.7	)		(111.4	)
Deferrals, net of amortization included in operating expense assessments		99.0			60.5			126.3			66.3			87.6						236.5			280.2
Adjustment related to realized (gains) losses		5.3			(5.3	)		(2.0	)		(1.4	)		0.5						5.0			(2.9	)
Adjustment related to unrealized (gains) losses		(119.2	)		133.3			1.4			(23.6	)		(446.6	)					(305.3	)		(468.8	)
Balance as of End-of-Period	$	1,091.4		$	1,279.9		$	1,405.6		$	1,446.9		$	1,088.4					$	1,091.4		$	1,088.4

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 25
Insurance Solutions - Life Insurance
Additional Operational Data
Unaudited (billions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Sales by Product (in millions)
UL
Excluding MoneyGuard®		$	77.3		$	107.1		$	84.9		$	82.9		$	74.2			-4.0	%	$	245.6		$	242.0			-1.5	%
MoneyGuard®			26.5			40.5			34.3			38.5			48.0			81.1	%		68.0			120.8			77.6	%
Total			103.8			147.6			119.2			121.4			122.2			17.7	%		313.6			362.8			15.7	%
VUL			10.8			14.8			10.0			11.4			12.8			18.5	%		28.2			34.2			21.3	%
COLI and BOLI (1)			17.8			28.0			17.0			10.0			7.5			-57.9	%		34.9			34.5			-1.1	%
Term			16.0			15.4			12.8			14.1			12.4			-22.5	%		54.1			39.3			-27.4	%
Total		$	148.4		$	205.8		$	159.0		$	156.9		$	154.9			4.4	%	$	430.8		$	470.8			9.3	%

First Year Paid Premiums (in millions)
UL
Excluding MoneyGuard®		$	235.9		$	339.2		$	301.8		$	300.9		$	286.0			21.2	%	$	729.5		$	888.7			21.8	%
MoneyGuard®			177.4			259.9			225.8			251.2			313.0			76.4	%		453.7			790.0			74.1	%
Total			413.3			599.1			527.6			552.1			599.0			44.9	%		1,183.2			1,678.7			41.9	%
VUL			30.3			37.5			24.2			32.0			33.0			8.9	%		70.7			89.2			26.2	%
COLI and BOLI (1)			59.9			164.0			40.3			21.5			27.5			-54.1	%		95.5			89.3			-6.5	%
Term			16.0			15.4			12.8			14.1			12.4			-22.5	%		54.1			39.3			-27.4	%
Total		$	519.5		$	816.0		$	604.9		$	619.7		$	671.9			29.3	%	$	1,403.5		$	1,896.5			35.1	%

Life Insurance In Force
UL and other		$	294.171		$	297.837		$	299.920		$	302.205		$	304.475			3.5	%	$	294.171		$	304.475			3.5	%
Term insurance			262.583			265.154			266.764			268.520			269.969			2.8	%		262.583			269.969			2.8	%
Total		$	556.754		$	562.991		$	566.684		$	570.725		$	574.444			3.2	%	$	556.754		$	574.444			3.2	%

																	(Basis Point)									(Basis Point)
Interest-Sensitive Products Interest Rate Spreads(2)																	Change									Change
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses (3)			5.93	%		5.84	%		5.91	%		5.82	%		5.74	%		(19	)		5.89	%		5.82	%		(7	)
Commercial mortgage loan prepayment and bond make-whole premiums			0.03	%		0.21	%		0.04	%		0.14	%		0.06	%		3			0.05	%		0.08	%		3
Alternative investments			0.11	%		0.18	%		0.32	%		0.29	%		0.16	%		5			0.16	%		0.26	%		10
Net investment income yield on reserves			6.07	%		6.23	%		6.27	%		6.25	%		5.96	%		(11	)		6.10	%		6.16	%		6
Interest rate credited to contract holders			4.15	%		4.14	%		4.09	%		4.09	%		4.10	%		(5	)		4.17	%		4.09	%		(8	)
Interest rate spread			1.92	%		2.09	%		2.18	%		2.16	%		1.86	%		(6	)		1.93	%		2.07	%		14

Traditional Products Interest Rate Spreads(4)
Fixed maturity securities, mortgage loans on real estate and other, net of investment expenses			5.99	%		6.17	%		5.89	%		6.00	%		5.90	%		(9	)		6.12	%		5.93	%		(19	)
Commercial mortgage loan prepayment and bond make-whole premiums			0.12	%		0.12	%		0.10	%		0.00	%		0.03	%		(9	)		0.05	%		0.04	%		(1	)
Alternative investments			0.01	%		0.03	%		0.02	%		0.00	%		0.00	%		(1	)		0.01	%		0.01	%		-
Net investment income yield on reserves			6.12	%		6.32	%		6.01	%		6.00	%		5.93	%		(19	)		6.18	%		5.98	%		(20	)

(1)	COLI and BOLI are interest-sensitive and contain both UL and VUL products.
(2)	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.
(3)	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 December 31, 2010 and March 31, 2011 reduced our yields by approximately 1 bp and 2 bps, respectively.
	There was no impact for the three months ended September 30, 2010, June 30, 2011 and September 30, 2011, or the nine months ended September 30, 2011.
(4)	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 September
	30, 2011, interest-sensitive products represented approximately 88% of total interest-sensitive and traditional earning assets.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 26
Insurance Solutions - Life Insurance
Account Value Roll Forwards
Unaudited (billions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Interest-Sensitive Life (1)
Balance as of beginning-of-period		$	28.584		$	28.794		$	29.365		$	29.739		$	30.148			5.5	%	$	28.192		$	29.365			4.2	%
Deposits			0.983			1.324			1.085			1.126			1.165			18.5	%		2.804			3.376			20.4	%
Withdrawals and deaths			(0.384	)		(0.318	)		(0.295	)		(0.296	)		(0.232	)		39.6	%		(1.065	)		(0.823	)		22.7	%
Net flows			0.599			1.006			0.790			0.830			0.933			55.8	%		1.739			2.553			46.8	%
Contract holder assessments			(0.687	)		(0.734	)		(0.715	)		(0.724	)		(0.726	)		-5.7	%		(2.023	)		(2.165	)		-7.0	%
Interest credited			0.298			0.299			0.299			0.303			0.283			-5.0	%		0.886			0.885			-0.1	%
Balance as of End-of-Period (Gross)			28.794			29.365			29.739			30.148			30.638			6.4	%		28.794			30.638			6.4	%
Reinsurance ceded			(0.899	)		(0.888	)		(0.885	)		(0.881	)		(0.877	)		2.4	%		(0.899	)		(0.877	)		2.4	%
Balance as of End-of-Period (Net of Ceded)		$	27.895		$	28.477		$	28.854		$	29.267		$	29.761			6.7	%	$	27.895		$	29.761			6.7	%

VUL
Balance as of beginning-of-period		$	5.027		$	5.562		$	5.962		$	6.171		$	6.157			22.5	%	$	5.287		$	5.962			12.8	%
Deposits			0.247			0.240			0.185			0.148			0.178			-27.9	%		0.566			0.511			-9.7	%
Withdrawals and deaths			(0.121	)		(0.166	)		(0.154	)		(0.110	)		(0.148	)		-22.3	%		(0.328	)		(0.412	)		-25.6	%
Net flows			0.126			0.074			0.031			0.038			0.030			-76.2	%		0.238			0.099			-58.4	%
Contract holder assessments			(0.090	)		(0.092	)		(0.092	)		(0.091	)		(0.093	)		-3.3	%		(0.269	)		(0.276	)		-2.6	%
Investment income and change in market value			0.499			0.418			0.270			0.039			(0.719	)	NM				0.306			(0.410	)	NM
Balance as of End-of-Period (Gross)			5.562			5.962			6.171			6.157			5.375			-3.4	%		5.562			5.375			-3.4	%
Reinsurance ceded			(0.803	)		(0.854	)		(0.876	)		(0.857	)		(0.717	)		10.7	%		(0.803	)		(0.717	)		10.7	%
Balance as of End-of-Period (Net of Ceded)		$	4.759		$	5.108		$	5.295		$	5.300		$	4.658			-2.1	%	$	4.759		$	4.658			-2.1	%

Total Life Insurance
Balance as of beginning-of-period		$	33.611		$	34.356		$	35.327		$	35.910		$	36.305			8.0	%	$	33.479		$	35.327			5.5	%
Deposits			1.230			1.564			1.270			1.274			1.343			9.2	%		3.370			3.887			15.3	%
Withdrawals and deaths			(0.505	)		(0.484	)		(0.449	)		(0.406	)		(0.380	)		24.8	%		(1.393	)		(1.235	)		11.3	%
Net flows			0.725			1.080			0.821			0.868			0.963			32.8	%		1.977			2.652			34.1	%
Contract holder assessments			(0.777	)		(0.826	)		(0.807	)		(0.815	)		(0.819	)		-5.4	%		(2.292	)		(2.441	)		-6.5	%
Investment income and change in market value			0.797			0.717			0.569			0.342			(0.436	)	NM				1.192			0.475			-60.2	%
Balance as of End-of-Period (Gross)			34.356			35.327			35.910			36.305			36.013			4.8	%		34.356			36.013			4.8	%
Reinsurance ceded			(1.702	)		(1.742	)		(1.761	)		(1.738	)		(1.594	)		6.3	%		(1.702	)		(1.594	)		6.3	%
Balance as of End-of-Period (Net of Ceded)		$	32.654		$	33.585		$	34.149		$	34.567		$	34.419			5.4	%	$	32.654		$	34.419			5.4	%

(1)	Includes UL, interest-sensitive whole life and the fixed investment option of VUL products.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																									PAGE 27
Insurance Solutions - Group Protection
Income (Loss) from Operations and Operational Data
Unaudited (millions of dollars)

	For the Three Months Ended																		For the Nine Months Ended
	Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
	2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Insurance premiums	$	414.5		$	424.2		$	436.6		$	460.2		$	439.7			6.1	%	$	1,258.1		$	1,336.5			6.2	%
Net investment income		35.0			38.1			39.1			38.5			37.8			8.0	%		102.9			115.4			12.1	%
Other revenues and fees		2.0			2.0			2.2			1.9			1.9			-5.0	%		5.8			6.0			3.4	%
Total Operating Revenues		451.5			464.3			477.9			500.6			479.4			6.2	%		1,366.8			1,457.9			6.7	%
Operating Expenses
Interest credited		0.8			0.9			0.9			0.8			0.8			0.0	%		2.4			2.5			0.0
Benefits		329.6			322.9			326.7			345.1			319.3			-3.1	%		973.4			991.1			1.8	%
Underwriting, acquisition, insurance and other expenses		106.4			112.8			112.7			114.6			116.5			9.5	%		308.8			343.8			11.3	%
Total Operating Expenses		436.8			436.6			440.3			460.5			436.6			0.0	%		1,284.6			1,337.4			4.1	%
Income (loss) from operations before federal income taxes		14.7			27.7			37.6			40.1			42.8			191.2	%		82.2			120.5			46.6	%
Federal income tax expense (benefit)		5.2			9.7			13.2			14.0			15.0			188.5	%		28.6			42.2			47.6	%
Income (Loss) from Operations	$	9.5		$	18.0		$	24.4		$	26.1		$	27.8			192.6	%	$	53.6		$	78.3			46.1	%

Effective Tax Rate		35.4	%		35.0	%		35.1	%		34.9	%		35.0	%					34.8	%		35.0	%

Average Stockholders' Equity, Excluding AOCI
Average equity, including goodwill	$	1,138.2		$	1,163.2		$	1,177.6		$	1,168.4		$	1,166.2					$	1,107.0		$	1,170.7
Average goodwill		274.3			274.3			274.3			274.3			274.3						274.3			274.3
Average equity, excluding goodwill	$	863.9		$	888.9		$	903.3		$	894.1		$	891.9					$	832.7		$	896.4

Return on Equity, Excluding AOCI
Including goodwill		3.3	%		6.2	%		8.3	%		8.9	%		9.5	%					6.5	%		8.9	%
Excluding goodwill		4.4	%		8.1	%		10.8	%		11.7	%		12.5	%					8.6	%		11.6	%

Underwriting, Acquisition, Insurance and Other Expenses
Commissions	$	47.5		$	48.7		$	50.4		$	49.4		$	50.0			5.3	%	$	141.3		$	149.8			6.0	%
General and administrative expenses		51.1			61.0			51.4			56.4			60.1			17.6	%		147.2			167.9			14.1	%
Taxes, licenses and fees		10.2			9.8			10.7			10.1			11.7			14.7	%		29.1			32.5			11.7	%
Total commissions and expenses incurred		108.8			119.5			112.5			115.9			121.8			11.9	%		317.6			350.2			10.3	%
Less: commissions and expenses capitalized		(12.7	)		(20.6	)		(11.0	)		(12.1	)		(15.7	)		-23.6	%		(40.8	)		(38.8	)		4.9	%
Amortization of DAC and VOBA, net of interest		10.3			13.9			11.2			10.8			10.4			1.0	%		32.0			32.4			1.3	%
Total Underwriting, Acquisition, Insurance and Other Expenses	$	106.4		$	112.8		$	112.7		$	114.6		$	116.5			9.5	%	$	308.8		$	343.8			11.3	%

General and Administrative Expenses as a Percentage of Premiums		12.3	%		14.4	%		11.8	%		12.3	%		13.7	%					11.7	%		12.6	%

DAC and VOBA
Balance as of beginning-of-period	$	165.9		$	168.3		$	175.0		$	174.8		$	176.1					$	159.5		$	175.0
Deferrals		12.7			20.6			11.0			12.1			15.7						40.8			38.8
Amortization, net of interest		(10.3	)		(13.9	)		(11.2	)		(10.8	)		(10.4	)					(32.0	)		(32.4	)
Deferrals, net of amortization included in operating underwriting, acquisition, insurance and other expenses		2.4			6.7			(0.2	)		1.3			5.3						8.8			6.4
Balance as of End-of-Period	$	168.3		$	175.0		$	174.8		$	176.1		$	181.4					$	168.3		$	181.4

Annualized Sales by Product Line
Life	$	23.9		$	60.7		$	17.4		$	23.6		$	30.8			28.9	%	$	71.3		$	71.8			0.7	%
Disability		28.3			68.6			18.0			30.7			34.3			21.2	%		85.3			83.0			-2.7	%
Dental		16.2			26.7			10.0			12.8			9.6			-40.7	%		40.1			32.4			-19.2	%
Total	$	68.4		$	156.0		$	45.4		$	67.1		$	74.7			9.2	%	$	196.7		$	187.2			-4.8	%

Insurance Premiums by Product Line
Life	$	158.4		$	163.2		$	170.4		$	173.6		$	173.5			9.5	%	$	475.9		$	517.5			8.7	%
Disability		181.9			184.8			186.2			189.8			190.5			4.7	%		541.9			566.5			4.5	%
Dental		42.6			44.2			46.1			45.3			45.9			7.7	%		122.9			137.3			11.7	%
Other		31.6			32.0			33.9			51.5			29.8			-5.7	%		117.4			115.2			-1.9	%
Total	$	414.5		$	424.2		$	436.6		$	460.2		$	439.7			6.1	%	$	1,258.1		$	1,336.5			6.2	%

Income (Loss) from Operations by Product Line
Life	$	4.8		$	12.4		$	8.4		$	8.9		$	11.5			139.6	%	$	24.3		$	28.8			18.5	%
Disability		4.0			4.5			16.5			17.2			15.1			277.5	%		29.2			48.8			67.1	%
Dental		(0.6	)		(0.2	)		(1.9	)		(1.4	)		0.1			116.7	%		(3.8	)		(3.2	)		15.8	%
Other		1.3			1.3			1.4			1.4			1.1			-15.4	%		3.9			3.9			0.0	%
Total	$	9.5		$	18.0		$	24.4		$	26.1		$	27.8			192.6	%	$	53.6		$	78.3			46.1	%

Loss Ratios by Product Line
Life		79.2	%		72.0	%		75.9	%		76.1	%		72.1	%					77.1	%		74.7	%
Disability		79.2	%		78.2	%		70.1	%		69.4	%		70.4	%					74.5	%		70.0	%
Dental		79.3	%		76.8	%		83.7	%		79.9	%		76.2	%					83.2	%		80.0	%
Combined Loss Ratios		79.2	%		75.5	%		74.1	%		73.4	%		71.8	%					76.5	%		73.1	%

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 28
Other Operations
Unaudited (in millions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Operating Revenues
Insurance premiums		$	0.1		$	1.4		$	0.1		$	-		$	0.8		NM			$	0.1		$	0.9		NM
Amortization of deferred gain on business sold through reinsurance (1)			18.1			18.2			18.0			18.0			18.1			0.0	%		54.3			54.1			-0.4	%
Other revenues and fees			3.1			(1.4	)		1.7			1.5			1.4			-54.8	%		14.1			4.6			-67.4	%
Media revenues			19.6			21.7			16.5			19.3			19.9			1.5	%		53.2			55.7			4.7	%
Total Operating Revenues			121.6			121.6			116.4			115.2			120.1			-1.2	%		365.6			351.7			-3.8	%
Operating Expenses
Interest credited			27.8			30.3			28.8			29.8			26.5			-4.7	%		89.5			85.1			-4.9	%
Benefits			35.2			34.0			32.5			29.1			33.7			-4.3	%		104.6			95.3			-8.9	%
Underwriting, acquisition, insurance and other expenses			31.6			85.0			27.6			8.4			21.6			-31.6	%		97.7			57.6			-41.0	%
Inter-segment reimbursement associated with reserve financing and LOC expenses (2)			(1.1	)		(1.4	)		(2.0	)		(2.3	)		(2.4	)	NM				(1.0	)		(6.7	)	NM
Taxes, licenses and fees			0.2			(2.9	)		0.7			(3.3	)		13.7		NM				(1.0	)		11.1		NM
Interest and debt expenses			74.5			74.3			71.6			72.0			71.0			-4.7	%		211.6			214.6			1.4	%
Media expenses			14.9			16.0			16.7			16.8			17.3			16.1	%		43.2			50.8			17.6	%
Total Operating Expenses			183.1			235.3			175.9			150.5			181.4			-0.9	%		544.6			507.8			-6.8	%
Income (Loss) from operations before federal income taxes			(61.5	)		(113.7	)		(59.5	)		(35.3	)		(61.3	)		0.3	%		(179.0	)		(156.1	)		12.8	%
Federal income tax expense (benefit)			(21.8	)		(40.0	)		(22.6	)		(12.9	)		(17.1	)		21.6	%		(66.6	)		(52.6	)		21.0	%
Income (Loss) From Operations		$	(39.7	)	$	(73.7	)	$	(36.9	)	$	(22.4	)	$	(44.2	)		-11.3	%	$	(112.4	)	$	(103.5	)		7.9	%

Run Off Institutional Pensions Account Values - Balance at End-of-Period		$	1.881		$	1.869		$	1.867		$	1.845		$	1.822			-3.1	%	$	1.881		$	1.822			-3.1	%

Discontinued Operations
Unaudited (in millions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Discontinued Operations Before Disposal
Income (loss) from discontinued operations before federal income taxes		$	-		$	-		$	-		$	-		$	-		NM			$	(12.7	)	$	-			100.0	%
Federal income tax expense (benefit)			-			-			-			-			-		NM				(1.1	)		-			100.0	%
Income (Loss) From Discontinued Operations Before Disposal			-			-			-			-			-		NM				(11.6	)		-			100.0	%
Disposal
Gain (loss) on disposal before federal income taxes			1.2			-			-			-			(2.9	)	NM				66.0			(2.9	)	NM
Federal income tax expense (benefit)			2.9			-			-			-			5.5			89.7	%		25.5			5.5			-78.4	%
Gain (Loss) on Disposal			(1.7	)		-			-			-			(8.4	)	NM				40.5			(8.4	)	NM
Income (Loss) From Discontinued Operations		$	(1.7	)	$	-		$	-		$	-		$	(8.4	)	NM			$	28.9		$	(8.4	)	NM


(1)	Represents the amortization of deferred gain recognized on the business sold through indemnity reinsurance to Swiss Re.
(2)	Represents reimbursements to Other Operations from the Insurance Solutions - Life Insurance segment for the use of proceeds from certain issuances of senior notes that were used
	as long-term structured solutions, net of expenses incurred by Other Operations for its use of LOCs. The inter-segment amounts are not reported on our Consolidated Statements of
	Income (Loss).

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 29
Consolidated Deposits, Net Flows and Account Balances
Unaudited (in billions)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Deposits
Retirement Solutions:
Annuities - fixed annuities (1)		$	1.774		$	1.155		$	1.116		$	1.307		$	1.294			-27.1	%	$	4.413		$	3.717			-15.8	%
Defined Contribution - fixed annuities			0.349			0.340			0.346			0.318			0.378			8.3	%		0.992			1.042			5.0	%
Annuities - variable annuities			1.204			1.435			1.523			1.620			1.415			17.5	%		3.664			4.558			24.4	%
Defined Contribution - variable products (2)			0.913			1.018			0.995			0.881			1.078			18.1	%		2.951			2.954			0.1	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life			0.983			1.324			1.085			1.126			1.165			18.5	%		2.804			3.376			20.4	%
VUL			0.247			0.240			0.185			0.148			0.178			-27.9	%		0.566			0.511			-9.7	%
Total Deposits		$	5.470		$	5.512		$	5.250		$	5.400		$	5.508			0.7	%	$	15.390		$	16.158			5.0	%

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change
Net Flows
Retirement Solutions:
Annuities - fixed annuities (1)		$	1.289		$	0.562		$	0.603		$	0.782		$	0.704			-45.4	%	$	2.986		$	2.089			-30.0	%
Defined Contribution - fixed annuities			(0.106	)		(0.137	)		0.010			(0.119	)		0.022			120.8	%		(0.210	)		(0.087	)		58.6	%
Annuities - variable annuities			(0.005	)		(0.019	)		(0.120	)		(0.082	)		(0.041	)	NM				0.026			(0.243	)	NM
Defined Contribution - variable products (2)			(0.172	)		(0.167	)		0.124			(0.059	)		0.307			278.5	%		0.223			0.372			66.8	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life			0.599			1.006			0.790			0.830			0.933			55.8	%		1.739			2.553			46.8	%
VUL			0.126			0.074			0.031			0.038			0.030			-76.2	%		0.238			0.099			-58.4	%
Total Net Flows		$	1.731		$	1.319		$	1.438		$	1.390		$	1.955			12.9	%	$	5.002		$	4.783			-4.4	%

		As of
		Sept.			Dec.			March			June			Sept.			%
		2010			2010			2011			2011			2011			Change
Account Balances
Retirement Solutions:
Annuities - fixed annuities (1)		$	20.097		$	19.990		$	19.998		$	20.289		$	20.455			1.8	%
Defined Contribution - fixed annuities			12.734			12.779			12.956			13.025			13.395			5.2	%
Annuities - variable annuities			60.132			64.858			67.787			68.551			60.774			1.1	%
Defined Contribution - variable products (2)			24.354			26.045			27.352			27.262			23.625			-3.0	%
Insurance Solutions - Life Insurance:
Interest-Sensitive Life			27.895			28.477			28.854			29.267			29.761			6.7	%
VUL			4.759			5.108			5.295			5.300			4.658			-2.1	%
Total Account Balances		$	149.971		$	157.257		$	162.242		$	163.694		$	152.668			1.8	%

(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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

9/30/2011																										PAGE 30
Consolidated Investment Data
Unaudited (millions of dollars)

		For the Three Months Ended																		For the Nine Months Ended
		Sept.			Dec.			March			June			Sept.			%			Sept.			Sept.			%
		2010			2010			2011			2011			2011			Change			2010			2011			Change

Net Investment Income
Available-for-sale fixed maturity securities		$	946.6		$	972.6		$	984.8		$	982.5		$	972.7			2.8	%	$	2,770.3		$	2,940.0			6.1	%
Available-for-sale equity securities			1.2			1.5			1.2			1.1			1.2			0.0	%		4.2			3.5			-16.7	%
Available-for-sale VIEs' fixed maturity securities			3.5			3.1			3.1			3.1			3.6			2.9	%		11.1			9.8			-11.7	%
Trading securities			39.1			39.4			38.6			38.7			38.4			-1.8	%		117.7			115.7			-1.7	%
Mortgage loans on real estate			105.7			111.6			104.1			106.1			106.9			1.1	%		329.8			317.1			-3.9	%
Real estate			6.2			6.4			7.7			5.5			5.0			-19.4	%		18.2			18.2			0.0	%
Policy loans			41.4			42.0			40.6			43.1			41.7			0.7	%		126.9			125.4			-1.2	%
Invested cash			2.3			1.8			1.4			0.8			1.0			-56.5	%		5.5			3.2			-41.8	%
Other investments			16.6			33.3			38.0			27.3			9.8			-41.0	%		65.1			75.1			15.4	%
Investment income			1,162.6			1,211.7			1,219.5			1,208.2			1,180.3			1.5	%		3,448.8			3,608.0			4.6	%
Investment expense			(30.3	)		(29.0	)		(28.3	)		(27.6	)		(29.6	)		2.3	%		(90.6	)		(85.5	)		5.6	%
Net Investment Income		$	1,132.3		$	1,182.7		$	1,191.2		$	1,180.6		$	1,150.7			1.6	%	$	3,358.2		$	3,522.5			4.9	%

Average Invested Assets (Amortized Cost)		$	78,516.9		$	79,278.9		$	79,995.7		$	81,101.9		$	82,253.8					$	76,984.7		$	81,117.1

Net investment income yield on invested assets Invested Assets			5.77	%		5.97	%		5.96	%		5.82	%		5.60	%					5.82	%		5.79	%

Realized Gain (Loss) Related to Investments
Available-for-sale fixed maturity securities:
Gross gains		$	11.8		$	10.9		$	36.1		$	30.6		$	17.5			48.3	%	$	96.2		$	84.2			-12.5	%
Gross losses			(61.3	)		(73.7	)		(62.7	)		(50.8	)		(63.1	)		-2.9	%		(174.3	)		(176.6	)		-1.3	%
Equity securities:
Gross gains			3.3			-			8.3			1.1			0.2			-93.9	%		8.8			9.6			9.1	%
Gross losses			-			-			(0.2	)		-			-		NM				(3.5	)		(0.2	)		94.3	%
Gain (loss) on other investments			(3.3	)		(19.8	)		12.8			(8.2	)		(3.3	)		0.0	%		(32.9	)		1.3			104.0	%
Associated amortization of DAC, VOBA, DSI, DFEL and changes in other contract holder funds and funds withheld
reinsurance liabilities			23.4			(11.6	)		(11.4	)		(6.9	)		5.2			-77.8	%		19.5			(13.1	)	NM
Total realized gain (loss) on investments, pre-tax			(26.1	)		(94.2	)		(17.1	)		(34.2	)		(43.5	)		-66.7	%		(86.2	)		(94.8	)		-10.0	%
Federal income tax expense (benefit) (1)			(9.1	)		(33.0	)		(6.0	)		(12.0	)		(15.2	)		-67.0	%		(30.2	)		(33.2	)		-9.9	%
Total, After-Tax		$	(17.0	)	$	(61.2	)	$	(11.1	)	$	(22.2	)	$	(28.3	)		-66.5	%	$	(56.0	)	$	(61.6	)		-10.0	%


					As of December 31, 2010									As of September 30, 2011
					Amount			% of Total						Amount			% of Total
Available-for-Sale and Trading Securities
Fixed maturity securities (fair value)					$	71,208.1			99.7	%				$	78,015.1			99.8	%
Fixed maturity securities (amortized cost)						68,084.2			99.7	%					71,394.9			99.8	%
Equity securities (fair value)						199.3			0.3	%					139.6			0.2	%
Equity securities (amortized cost)						180.9			0.3	%					132.3			0.2	%

% of Available-for-Sale Fixed Maturity Securities, Based on Amortized Cost
Treasuries and AAA									17.9	%								15.6	%
AA or better									28.0	%								26.1	%
BB or less									7.1	%								6.2	%

General Account Investments at Amortized Cost					As of December 31, 2010									As of September 30, 2011
					Amount			% of Total						Amount			% of Total
Available-for-Sale Fixed Maturities Securities:
Corporate bonds					$	48,863.9			74.3	%				$	52,924.4			76.6	%
U.S. Government bonds						149.7			0.2	%					239.2			0.3	%
Foreign government bonds						472.8			0.7	%					590.5			0.9	%
Mortgage-backed securities						10,817.3			16.5	%					9,772.1			14.2	%
Asset-backed securities						173.9			0.3	%					130.5			0.2	%
State and municipal bonds						3,221.8			4.9	%					3,407.1			4.9	%
Hybrid and redeemable preferred securities						1,476.3			2.2	%					1,317.4			1.9	%
VIEs' fixed maturity securities						569.8			0.9	%					672.3			1.0	%
Total					$	65,745.5			100.0	%				$	69,053.5			100.0	%


		As of
		Sept.			Dec.			March			June			Sept.			%
Composition of Investment Portfolio		2010			2010			2011			2011			2011			Change
Available-for-sale securities, at fair value:
Fixed maturity		$	69,715.3		$	68,030.2		$	69,231.0		$	70,920.2		$	74,591.5			7.0	%
Equity			205.3			197.2			144.6			143.7			137.4			-33.1	%
VIEs' fixed maturity			585.3			583.7			586.8			592.6			699.5			19.5	%
Trading securities			2,710.9			2,596.4			2,598.0			2,624.7			2,726.2			0.6	%
Mortgage loans on real estate and real estate			7,017.7			6,954.2			6,937.6			7,020.4			7,029.1			0.2	%
Policy loans			2,879.1			2,864.7			2,837.1			2,877.1			2,873.5			-0.2	%
Derivative investments			1,903.9			1,076.0			945.7			1,097.0			3,028.7			59.1	%
Other investments			1,096.5			1,037.7			1,029.4			1,002.3			1,104.7			0.7	%
Total		$	86,114.0		$	83,340.1		$	84,310.2		$	86,278.0		$	92,190.6			7.1	%

(1)	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.

This is a dated document. It may not be accurate after such date and LNC does not undertake to update or keep it accurate after such date.

Lincoln National (LNC) 8-KResults of Operations and Financial Condition