Lincoln National (LNC) 8-K Lincoln Financial Group Reports third QUARTER 2017 Results and announces increase to dividend

	Lincoln Financial Group
	Table of Contents
	Analyst Coverage and Credit Ratings	1
	Notes	2
	Consolidated
	Consolidated Statements of Income (Loss)	3
	Consolidated Balance Sheets	4
	Earnings, Shares and Return on Equity	5
	Key Stakeholder Metrics	6
	Segment and Sources of Earnings	7
	Select Earnings Drivers By Segment	8
	Sales By Segment	9
	Operating Revenues and General and Administrative Expenses By Segment	10
	Operating Commissions and Other Expenses	11
	Interest Rate Yields and Spreads By Segment	12
	Select Earnings and Operational Data from Business Segments
	Annuities	13
��	Retirement Plan Services	14
	Life Insurance	15
	Group Protection	16
	Other Operations	17
	DAC & Account Value Rollforwards
	Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
	Account Value Roll Forwards:
	Annuities	19
	Retirement Plan Services	20
	Life Insurance	21
	Other Information
	Select Investment Data	22
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC	23
	Select GAAP to Non-GAAP Reconciliations	24

	Lincoln Financial Group
	Analyst Coverage and Credit Ratings
	Firm	Analyst				Phone Number
	Autonomous Research U.S., L.P.	Erik Bass				646-561-6248
	Barclays Capital	Jay Gelb				212-526-1561
	Citi Research	Suneet Kamath				212-816-3457
	Dowling & Partners	Humphrey Lee				860-676-7324
	Evercore	Thomas Gallagher				212-446-9439
	FBR Capital Markets	Randy Binner				703-312-1890
	Goldman Sachs	Alex Scott				917-343-7160
	J.P. Morgan Securities	Jimmy Bhullar				212-622-6397
	Janney Montgomery Scott	Bob Glasspiegel				860-724-1203
	Keefe, Bruyette & Woods, Inc.	Ryan Krueger				860-722-5930
	Morgan Stanley	Nigel Dally				212-761-4132
	RBC Capital Markets	Mark Dwelle				804-782-4008
	Sandler O’Neill & Partners, L.P.	John Barnidge				312-281-3412
	Wells Fargo	Sean Dargan				212-214-1416
	This list is provided for informational purposes only.  Lincoln Financial Group does not endorse the analyses, conclusions or recommendations contained in any report issued by these
	or any other analysts.
			Ratings as of November 1st, 2017
						Standard
			A.M Best	Fitch	Moody's	& Poor's
	Senior Debt Ratings		a-	BBB+	Baa1	A-
	Financial Strength Ratings
	Lincoln National Life Insurance Company		A+	A+	A1	AA-
	First Penn-Pacific Life Insurance Company		A	A+	A1	A-
	Lincoln Life & Annuity Company of New York		A+	A+	A1	AA-
	Investor Inquiries May Be Directed To:
	Chris Giovanni, Senior Vice President, Investor Relations
	Email:  Christopher.Giovanni@lfg.com
	Phone:  484-583-1793
Page 1

	Lincoln Financial Group
	Notes
	Computations
	• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.
	• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.
	• If the effect of equity classification would result in a more dilutive Earnings Per Share (“EPS”), the numerator used in the calculation of our diluted EPS is adjusted to remove the mark-to-market
	adjustment for deferred units of LNC stock in our deferred compensation plans.  In addition, for any period where a loss from continuing operations is experienced, shares used in the diluted  EPS
	calculation represent basic shares, as using dilutive shares would be anti-dilutive to the calculation.  In these periods, we would also exclude the deferred compensation adjustment.
	• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets.  ROE is calculated by dividing annualized net income (loss) (or income (loss)
	from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).  Management evaluates consolidated ROE by both including and excluding the effect
	of average goodwill.
	• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding.  We provide book value per share, excluding AOCI, to enable
	investors to analyze the amount of our net worth that is attributable primarily to our business operations.  Management believes book value per share excluding AOCI is useful to investors because
	it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.  Book value per share is the most directly comparable GAAP measure.
	• Pre-tax net margin is calculated by dividing income (loss) from operations before taxes by net revenue, which is defined as total operating revenues less interest credited.
	Definitions
	Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commerical
	paper outstanding.
	Sales as reported consist of the following:
	•  MoneyGuard®, our linked-benefit product – 15% of total expected premium deposits;
	•  Universal life (“UL”), indexed universal life ("IUL"), variable universal life (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;
	•  Executive Benefits – single premium bank-owned UL and VUL, 15% of single premium deposits, and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess
	premium received;
	•  Term – 100% of annualized first-year premiums;
	•  Annuities – deposits from new and existing customers; and
	•  Group Protection – annualized first-year premiums from new policies.
	Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)
	and deferred front-end loads (“DFEL”) and changes in other contract holder funds.
Page 2a

	Lincoln Financial Group
	Notes
	Sources of Earnings are defined as follows:
	•  Investment spread earnings consist primarily of net investment income, net of interest credited earned on the underlying general account investments supporting our fixed products less related
	expenses.
	•  Mortality/morbidity earnings result from mortality margins, morbidity margins, and certain expense assessments and related fees that are a function of the rates priced into the product and level
	of insurance in force.
	•  Fees on Assets Under Management (“AUM”) earnings results consist primarily of asset-based fees charged based on variable account values less associated benefits and related expenses.
	•  Variable Annuity (“VA”) Riders earnings consist of fees charged to the contract holder related to guaranteed benefit rider features, less the net valuation premium and associated change in
	benefit reserves and related expenses.
	Non-GAAP Performance Measures
	Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.
	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)”):
	▪  Sales or disposals and impairments of securities;
	▪  Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders reflected within our variable annuities;
	▪  Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;
	▪  Changes in the fair value of the derivatives we own to hedge our guaranteed living benefit ("GLB") riders reflected within variable annuity net derivative results;
	▪  Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future
	reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting option”);
	•  Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders (“benefit ratio unlocking”);
	•  Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;
	•  Gains (losses) on early extinguishment of debt;
	• Losses from the impairment of intangible assets;
	•  Income (loss) from discontinued operations; and
	•  Income (loss) from the initial adoption of new accounting standards.
	Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items:
	• Excluded realized gain (loss);
	•  Revenue adjustments from the initial adoption of new accounting standards;
	•  Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and
	•  Amortization of deferred gains arising from reserve changes on business sold through reinsurance.
Page 2b

	Lincoln Financial Group
	Notes
	We use our prevailing 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.
	Management believes that the non-GAAP performance measures discussed above explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying
	trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many
	instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.  In addition, we believe that our definitions of operating revenues and income from
	operations provide investors with more valuable measures of our performance as they better reveal trends in our business.
	Prior year interest rate spreads have been restated to conform to the current year presentation, which has been modified to be consistent across our business segments.
	New Accounting Standards - Restatement of Certain Interim Reporting Metrics
	Effective October 1, 2016, we elected to early adopt ASU 2016-09, Improvements to Employee Share-based Payment Accounting.   We have updated certain previously reported interim results and
	metrics in accordance with the new guidance.
	Statistical Supplement is Dated
	The financial data in this document is dated November 01, 2017, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.
Page 2c

	Lincoln Financial Group
	Consolidated Statements of Income (Loss)
	Unaudited (millions of dollars, except per share data)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Revenues
	Insurance premiums	$	708	$	736	$	807	$	801	$	774	9.3%	$	2,252	$	2,382	5.8%
	Fee income		1,376		1,345		1,354		1,393		1,401	1.8%		3,899		4,148	6.4%
	Net investment income		1,259		1,244		1,238		1,262		1,239	-1.6%		3,630		3,738	3.0%
	Realized gain (loss):
	Other-than-temporary impairment (“OTTI”)		(13)		(25)		(4)		(4)		(8)	38.5%		(76)		(16)	78.9%
	Realized gain (loss), excluding OTTI		50		(192)		(35)		(6)		(48)	NM		(45)		(89)	-97.8%
	Total realized gain (loss)		37		(217)		(39)		(10)		(56)	NM		(121)		(105)	13.2%
	Amortization of deferred gains on business
	sold through reinsurance		18		18		18		4		-	-100.0%		55		22	-60.0%
	Other revenues		127		128		122		127		153	20.5%		361		403	11.6%
	Total revenues		3,525		3,254		3,500		3,577		3,511	-0.4%		10,076		10,588	5.1%
	Expenses
	Interest credited		642		650		647		646		647	0.8%		1,914		1,940	1.4%
	Benefits		922		1,230		1,290		1,287		1,261	36.8%		3,462		3,839	10.9%
	Commissions and other expenses		1,283		1,041		1,015		1,034		1,020	-20.5%		3,236		3,068	-5.2%
	Interest and debt expense		66		129		64		63		63	-4.5%		202		190	-5.9%
	Strategic digitization expense		-		8		9		14		10	NM		-		33	NM
	Total expenses		2,913		3,058		3,025		3,044		3,001	3.0%		8,814		9,070	2.9%
	Income (loss) from continuing operations before taxes		612		196		475		533		510	-16.7%		1,262		1,518	20.3%
	Federal income tax expense (benefit)		145		6		40		122		92	-36.6%		260		254	-2.3%
	Net income (loss)		467		190		435		411		418	-10.5%		1,002		1,264	26.1%
	Adjustment for LNC stock units in our
	deferred compensation plans		-		-		-		1		-	NM		(1)		5	NM
	Net income (loss) available to common
	stockholders – diluted	$	467	$	190	$	435	$	412	$	418	-10.5%	$	1,001	$	1,269	26.8%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	2.00	$	0.82	$	1.89	$	1.81	$	1.87	-6.5%	$	4.17	$	5.58	33.8%
	ROE, including AOCI
	Net income (loss)		11.6%		4.9%		11.8%		10.6%		10.3%			8.8%		10.9%
Page 3

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change
	ASSETS
	Investments:
	Available-for-sale (“AFS”) securities:
	Corporate bonds	$	81,369	$	78,149	$	79,841	$	81,598	$	82,319	1.2%
	U.S. government bonds		458		419		576		578		574	25.3%
	Foreign government bonds		530		506		456		455		455	-14.2%
	Mortgage-backed securities		4,019		3,964		4,008		4,028		4,037	0.4%
	Asset-backed collateralized debt obligations		686		744		776		703		694	1.2%
	State and municipal bonds		4,939		4,627		4,826		5,010		5,049	2.2%
	Hybrid and redeemable preferred securities		631		604		619		642		639	1.3%
	VIEs' fixed maturity securities		600		200		-		-		-	-100.0%
	Equity securities		273		275		276		275		302	10.6%
	Total AFS securities		93,505		89,488		91,378		93,289		94,069	0.6%
	Trading securities		1,808		1,712		1,703		1,678		1,665	-7.9%
	Mortgage loans on real estate		9,430		9,889		10,001		10,023		10,382	10.1%
	Real estate		23		24		24		23		11	-52.2%
	Policy loans		2,471		2,451		2,432		2,416		2,417	-2.2%
	Derivative investments		2,170		927		991		1,054		960	-55.8%
	Other investments		2,184		2,230		2,104		2,156		2,210	1.2%
	Total investments		111,591		106,721		108,633		110,639		111,714	0.1%
	Cash and invested cash		3,444		2,722		1,923		1,978		1,965	-42.9%
	DAC and VOBA		8,020		9,134		9,030		8,555		8,543	6.5%
	Premiums and fees receivable		355		430		465		365		370	4.2%
	Accrued investment income		1,117		1,062		1,124		1,082		1,137	1.8%
	Reinsurance recoverables		5,432		5,265		5,333		5,228		5,062	-6.8%
	Funds withheld reinsurance assets		628		617		610		607		602	-4.1%
	Goodwill		2,273		2,273		2,273		2,273		2,273	0.0%
	Other assets		5,152		5,006		5,119		5,099		5,507	6.9%
	Separate account assets		128,593		128,397		132,958		135,825		139,612	8.6%
	Total assets	$	266,605	$	261,627	$	267,468	$	271,651	$	276,785	3.8%
Page 4a

	Lincoln Financial Group
	Consolidated Balance Sheets
	Unaudited (millions of dollars)
		As of
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change
	LIABILITIES AND STOCKHOLDERS’ EQUITY
	Liabilities
	Future contract benefits	$	22,120	$	21,576	$	22,202	$	22,293	$	22,547	1.9%
	Other contract holder funds		77,963		78,903		79,078		79,216		79,623	2.1%
	Short-term debt		250		-		200		450		450	80.0%
	Long-term debt by rating agency leverage definitions:
	Operating (see note (2) on page 6 for details)		865		865		865		865		865	0.0%
	Financial		4,592		4,480		4,268		4,036		4,035	-12.1%
	Reinsurance related embedded derivatives		137		53		50		53		63	-54.0%
	Funds withheld reinsurance liabilities		1,999		1,976		1,961		1,862		1,807	-9.6%
	Deferred gain on business sold through reinsurance		43		24		6		2		2	-95.3%
	Payables for collateral on investments		5,654		4,995		5,086		4,952		4,968	-12.1%
	Other liabilities		8,066		5,880		5,821		6,101		6,499	-19.4%
	Separate account liabilities		128,593		128,397		132,958		135,825		139,612	8.6%
	Total liabilities		250,282		247,149		252,495		255,655		260,471	4.1%
	Stockholders’ Equity
	Common stock		5,906		5,869		5,839		5,774		5,717	-3.2%
	Retained earnings		7,040		7,043		7,287		7,511		7,738	9.9%
	AOCI:
	Unrealized investment gains (losses)		3,684		1,858		2,139		3,003		3,149	-14.5%
	Foreign currency translation adjustment		(20)		(27)		(25)		(20)		(16)	20.0%
	Funded status of employee benefit plans		(287)		(265)		(267)		(272)		(274)	4.5%
	Total AOCI		3,377		1,566		1,847		2,711		2,859	-15.3%
	Total stockholders’ equity		16,323		14,478		14,973		15,996		16,314	-0.1%
	Total liabilities and stockholders’ equity	$	266,605	$	261,627	$	267,468	$	271,651	$	276,785	3.8%
Page 4b

	Lincoln Financial Group
	Earnings, Shares and Return on Equity
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											As of or For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss)
	Net income (loss)	$	467	$	190	$	435	$	411	$	418	-10.5%	$	1,002	$	1,264	26.1%
	Pre-tax income (loss) from operations		571		533		485		544		566	-0.9%		1,460		1,596	9.3%
	After-tax income (loss) from operations (1)		441		409		442		419		454	2.9%		1,131		1,314	16.2%
	Operating tax rate		22.8%		23.3%		8.9%		23.0%		19.8%			22.5%		17.7%
	Average Stockholders’ Equity
	Average equity, including AOCI	$	16,122	$	15,400	$	14,725	$	15,485	$	16,155	0.2%	$	15,183	$	15,455	1.8%
	Average AOCI		3,286		2,471		1,706		2,279		2,785	-15.2%		2,412		2,257	-6.4%
	Average equity, excluding AOCI	$	12,836	$	12,929	$	13,019	$	13,206	$	13,370	4.2%	$	12,771	$	13,198	3.3%
	ROE, excluding AOCI
	Net income (loss)		14.5%		5.9%		13.4%		12.4%		12.5%			10.5%		12.8%
	Income (loss) from operations		13.7%		12.7%		13.6%		12.7%		13.6%			11.8%		13.3%
	Per Share
	Net income (loss) (diluted)	$	2.00	$	0.82	$	1.89	$	1.81	$	1.87	-6.5%	$	4.17	$	5.58	33.8%
	Income (loss) from operations (diluted)		1.89		1.77		1.92		1.85		2.03	7.4%		4.71		5.80	23.1%
	Dividends declared during the period		0.25		0.29		0.29		0.29		0.29	16.0%		0.75		0.87	16.0%
	Book value, including AOCI	$	71.43	$	63.97	$	66.58	$	71.98	$	74.31	4.0%	$	71.43	$	74.31	4.0%
	Per share impact of AOCI		14.78		6.92		8.21		12.20		13.02	-11.9%		14.78		13.02	-11.9%
	Book value, excluding AOCI	$	56.65	$	57.05	$	58.37	$	59.78	$	61.29	8.2%	$	56.65	$	61.29	8.2%
	Shares
	Repurchased during the period		4.3		3.2		2.9		3.0		2.8	-34.9%		16.1		8.7	-46.0%
	End-of-period – basic		228.5		226.3		224.9		222.2		219.5	-3.9%		228.5		219.5	-3.9%
	End-of-period – diluted		231.4		230.1		228.9		226.0		222.7	-3.8%		231.4		222.7	-3.8%
	Average for the period – diluted		233.7		230.9		230.1		227.3		223.9	-4.2%		239.9		227.4	-5.2%
	(1) See reconciliation to net income (loss) on page 24.
Page 5

	Lincoln Financial Group
	Key Stakeholder Metrics
	Unaudited (millions of dollars, except per share data)
		As of or For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Cash Returned to Common Stockholders
	Shares repurchased	$	200	$	204	$	200	$	200	$	200	0.0%	$	675	$	600	-11.1%
	Common dividends		58		57		66		65		64	10.3%		179		195	8.9%
	Total cash returned to common stockholders	$	258	$	261	$	266	$	265	$	264	2.3%	$	854	$	795	-6.9%
	Leverage Ratio
	Short-term debt	$	250	$	-	$	200	$	450	$	450	80.0%
	Long-term debt		5,457		5,345		5,133		4,901		4,900	-10.2%
	Total debt (1)		5,707		5,345		5,333		5,351		5,350	-6.3%
	Less:
	Operating debt (2)		1,115		865		865		865		865	-22.4%
	25% of capital securities		302		302		302		302		302	0.0%
	Carrying value of fair value hedges		420		258		246		263		261	-37.9%
	Total numerator	$	3,870	$	3,920	$	3,920	$	3,921	$	3,922	1.3%
	Stockholders’ equity, excluding unrealized
	investment gains (losses)	$	12,639	$	12,620	$	12,834	$	12,993	$	13,165	4.2%
	Add:  25% of capital securities		302		302		302		302		302	0.0%
	Total numerator		3,870		3,920		3,920		3,921		3,922	1.3%
	Total denominator	$	16,811	$	16,842	$	17,056	$	17,216	$	17,389	3.4%
	Leverage ratio		23.0%		23.3%		23.0%		22.8%		22.6%
	Holding Company Available Liquidity	$	546	$	561	$	551	$	523	$	569	4.2%
	(1) Excludes obligations under capital leases of $260 million that are reported in other liabilities on our Consolidated Balance Sheets.
	(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
	on increasing statutory reserves associated with secondary guarantee UL and term policies.
Page 6

	Lincoln Financial Group
	Segment and Sources of Earnings
	Unaudited (millions of dollars)
		For the Three Months Ended											As of or For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss) from Operations, Pre-Tax
	Annuities	$	303	$	306	$	280	$	310	$	350	15.5%	$	871	$	940	7.9%
	Retirement Plan Services		45		46		48		50		48	6.7%		128		147	14.8%
	Life Insurance	��	246		228		187		194		175	-28.9%		524		556	6.1%
	Group Protection		44		25		11		53		63	43.2%		75		127	69.3%
	Other Operations		(67)		(72)		(41)		(63)		(70)	-4.5%		(138)		(174)	-26.1%
	Income (loss) from operations, before income taxes	$	571	$	533	$	485	$	544	$	566	-0.9%	$	1,460	$	1,596	9.3%
	Income (Loss) from Operations, After-Tax
	Annuities	$	240	$	242	$	281	$	251	$	277	15.4%	$	693	$	809	16.7%
	Retirement Plan Services		32		34		37		37		35	9.4%		94		109	16.0%
	Life Insurance		167		154		130		133		121	-27.5%		361		384	6.4%
	Group Protection		28		16		7		35		41	46.4%		49		83	69.4%
	Other Operations		(26)		(37)		(13)		(37)		(20)	23.1%		(66)		(71)	-7.6%
	Income (loss) from operations	$	441	$	409	$	442	$	419	$	454	2.9%	$	1,131	$	1,314	16.2%
			For the Three Months Ended										For the Trailing Twelve Months
			9/30/16		12/31/16		3/31/17		6/30/17		9/30/17	Change	9/30/16		9/30/17		Change
	Sources of Earnings, Pre-Tax
	Investment spread	$	205	$	199	$	172	$	186	$	188	-8.3%	$	685	$	745	8.8%
	Mortality/morbidity		175		151		115		158		156	-10.9%		474		581	22.6%
	Fees on AUM		222		220		209		230		280	26.1%		853		939	10.1%
	VA riders		36		35		30		33		12	-66.7%		137		110	-19.7%
	Total sources of earnings, before income taxes		638		605		526		607		636	-0.3%		2,149		2,375	10.5%
	Other Operations		(67)		(72)		(41)		(63)		(70)	-4.5%		(184)		(246)	-33.7%
	Income (loss) from operations, before income taxes	$	571	$	533	$	485	$	544	$	566	-0.9%	$	1,965	$	2,129	8.3%
	Sources of Earnings, Pre-Taxes, Percentage By Component
	Investment spread		32.3%		32.9%		32.5%		30.7%		29.6%			31.9%		31.4%
	Mortality/morbidity		27.4%		24.9%		21.9%		26.0%		24.6%			22.0%		24.5%
	Fees on AUM		34.8%		36.4%		39.9%		37.8%		43.9%			39.7%		39.5%
	VA riders		5.5%		5.8%		5.7%		5.5%		1.9%			6.4%		4.6%
	Total		100.0%		100.0%		100.0%		100.0%		100.0%			100.0%		100.0%
Page 7

	Lincoln Financial Group
	Select Earnings Drivers By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Annuities
	Operating revenues	$	1,000	$	1,011	$	1,061	$	1,076	$	1,073	7.3%	$	3,023	$	3,211	6.2%
	Deposits		1,938		1,810		2,016		1,991		1,916	-1.1%		6,404		5,924	-7.5%
	Net flows		(868)		(932)		(944)		(1,075)		(1,025)	-18.1%		(1,354)		(3,044)	NM
	Average account values		125,023		124,450		127,644		130,321		132,304	5.8%		121,876		130,169	6.8%
	Retirement Plan Services
	Operating revenues	$	282	$	284	$	282	$	290	$	291	3.2%	$	819	$	863	5.4%
	Deposits		1,799		2,406		2,252		1,978		1,908	6.1%		5,251		6,138	16.9%
	Net flows		97		386		116		395		415	NM		180		926	NM
	Average account values		56,537		57,552		59,530		61,728		63,665	12.6%		54,841		61,636	12.4%
	Life Insurance
	Operating revenues	$	1,630	$	1,600	$	1,606	$	1,655	$	1,614	-1.0%	$	4,646	$	4,874	4.9%
	Deposits		1,490		1,648		1,414		1,543		1,462	-1.9%		4,120		4,422	7.3%
	Net flows		1,102		1,209		924		1,101		1,064	-3.4%		2,910		3,090	6.2%
	Average account values		44,792		45,485		46,147		46,842		47,547	6.2%		44,250		46,845	5.9%
	Average in-force face amount		680,010		688,791		695,759		701,592		708,148	4.1%		672,058		701,833	4.4%
	Group Protection
	Operating revenues	$	534	$	537	$	541	$	541	$	564	5.6%	$	1,593	$	1,646	3.3%
	Non-medical earned premiums		485		487		495		494		500	3.1%		1,452		1,488	2.5%
	Consolidated
	Operating revenues (1)	$	3,530	$	3,519	$	3,578	$	3,629	$	3,607	2.2%	$	10,325	$	10,814	4.7%
	Deposits		5,227		5,864		5,682		5,512		5,286	1.1%		15,775		16,484	4.5%
	Net flows		331		663		96		421		454	37.2%		1,736		972	-44.0%
	Average account values		226,352		227,487		233,321		238,891		243,516	7.6%		220,967		238,650	8.0%
	(1) See reconciliation to total revenues on page 24.
Page 8

	Lincoln Financial Group
	Sales By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Sales
	Annuities:
	With guaranteed living benefits	$	1,052	$	928	$	905	$	1,007	$	959	-8.8%	$	3,463	$	2,871	-17.1%
	Without guaranteed living benefits		466		471		549		607		573	23.0%		1,375		1,729	25.7%
	Variable		1,518		1,399		1,454		1,614		1,532	0.9%		4,838		4,600	-4.9%
	Fixed		420		411		562		377		384	-8.6%		1,566		1,324	-15.5%
	Total Annuities	$	1,938	$	1,810	$	2,016	$	1,991	$	1,916	-1.1%	$	6,404	$	5,924	-7.5%
	Retirement Plan Services:
	First-year sales	$	607	$	1,177	$	800	$	737	$	672	10.7%	$	1,431	$	2,209	54.4%
	Recurring deposits		1,192		1,229		1,452		1,241		1,236	3.7%		3,820		3,929	2.9%
	Total Retirement Plan Services	$	1,799	$	2,406	$	2,252	$	1,978	$	1,908	6.1%	$	5,251	$	6,138	16.9%
	Life Insurance:
	UL	$	23	$	29	$	17	$	14	$	10	-56.5%	$	65	$	42	-35.4%
	MoneyGuard®		56		64		60		80		65	16.1%		150		203	35.3%
	IUL		23		31		18		16		19	-17.4%		59		53	-10.2%
	VUL		52		58		36		50		45	-13.5%		123		131	6.5%
	Term		31		29		27		28		29	-6.5%		85		84	-1.2%
	Total individual life insurance		185		211		158		188		168	-9.2%		482		513	6.4%
	Executive Benefits		8		20		23		9		10	25.0%		24		43	79.2%
	Total Life Insurance	$	193	$	231	$	181	$	197	$	178	-7.8%	$	506	$	556	9.9%
	Group Protection:
	Life	$	28	$	98	$	23	$	28	$	33	17.9%	$	80	$	84	5.0%
	Disability		33		109		23		32		35	6.1%		85		90	5.9%
	Dental		17		56		11		28		26	52.9%		43		65	51.2%
	Total Group Protection	$	78	$	263	$	57	$	88	$	94	20.5%	$	208	$	239	14.9%
	Percent employee-paid		44.0%		47.5%		53.3%		40.7%		44.7%			47.8%		45.3%
Page 9

	Lincoln Financial Group
	Operating Revenues and General and Administrative Expenses By Segment
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Operating Revenues
	Annuities	$	1,000	$	1,011	$	1,061	$	1,076	$	1,073	7.3%	$	3,023	$	3,211	6.2%
	Retirement Plan Services		282		284		282		290		291	3.2%		819		863	5.4%
	Life Insurance		1,630		1,600		1,606		1,655		1,614	-1.0%		4,646		4,874	4.9%
	Group Protection		534		537		541		541		564	5.6%		1,593		1,646	3.3%
	Other Operations		84		87		88		67		65	-22.6%		244		220	-9.8%
	Total	$	3,530	$	3,519	$	3,578	$	3,629	$	3,607	2.2%	$	10,325	$	10,814	4.7%
	General and Administrative Expenses,
	Net of Amounts Capitalized (1)
	Annuities	$	111	$	113	$	112	$	120	$	114	2.7%	$	340	$	346	1.8%
	Retirement Plan Services		77		79		75		79		77	0.0%		227		231	1.8%
	Life Insurance		121		128		120		126		125	3.3%		347		371	6.9%
	Group Protection		77		79		73		77		85	10.4%		217		235	8.3%
	Other Operations		25		48		22		26		29	16.0%		35		77	120.0%
	Total	$	411	$	447	$	402	$	428	$	430	4.6%	$	1,166	$	1,260	8.1%
	General and Administrative Expenses,
	Net of Amounts Capitalized, as a Percentage
	of Operating Revenues
	Annuities		11.1%		11.2%		10.6%		11.1%		10.6%			11.2%		10.8%
	Retirement Plan Services		27.3%		27.7%		26.6%		27.2%		26.5%			27.7%		26.8%
	Life Insurance		7.4%		8.0%		7.5%		7.6%		7.8%			7.5%		7.6%
	Group Protection		14.4%		14.8%		13.4%		14.2%		15.1%			13.6%		14.3%
	Other Operations		30.2%		55.2%		24.8%		40.8%		42.1%			14.3%		34.8%
	Total		11.6%		12.7%		11.2%		11.8%		11.9%			11.3%		11.7%
	(1) See page 11 for general and administrative expenses capitalized.
Page 10

	Lincoln Financial Group
	Operating Commissions and Other Expenses
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Operating Commissions and
	Other Expenses Incurred
	General and administrative expenses	$	454	$	504	$	446	$	475	$	479	5.5%	$	1,293	$	1,400	8.3%
	Commissions		562		590		555		576		555	-1.2%		1,630		1,685	3.4%
	Taxes, licenses and fees		65		58		70		64		57	-12.3%		197		191	-3.0%
	Interest and debt expense		66		67		64		63		63	-4.5%		202		190	-5.9%
	Expenses associated with reserve financing
	and unrelated letters of credit		21		21		21		21		20	-4.8%		59		62	5.1%
	Total operating commissions and other
	expenses incurred		1,168		1,240		1,156		1,199		1,174	0.5%		3,381		3,528	4.3%
	Less Amounts Capitalized
	General and administrative expenses		(43)		(57)		(44)		(47)		(49)	-14.0%		(127)		(140)	-10.2%
	Commissions		(286)		(314)		(261)		(280)		(254)	11.2%		(812)		(795)	2.1%
	Taxes, licenses and fees		(10)		(10)		(11)		(11)		(10)	0.0%		(27)		(32)	-18.5%
	Total amounts capitalized		(339)		(381)		(316)		(338)		(313)	7.7%		(966)		(967)	-0.1%
	Total expenses incurred, net of amounts
	capitalized, excluding amortization		829		859		840		861		861	3.9%		2,415		2,561	6.0%
	Amortization
	Amortization of DAC and VOBA		512		258		237		243		220	-57.0%		1,013		701	-30.8%
	Amortization of intangibles		1		1		1		1		1	0.0%		3		3	0.0%
	Total amortization		513		259		238		244		221	-56.9%		1,016		704	-30.7%
	Total operating commissions and
	other expenses	$	1,342	$	1,118	$	1,078	$	1,105	$	1,082	-19.4%	$	3,431	$	3,265	-4.8%
Page 11

	Lincoln Financial Group
	Interest Rate Yields and Spreads By Segment
	Unaudited
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Annuities
	Earned rate on reserves		4.16%		4.00%		4.06%		3.99%		3.94%	(22)		4.19%		4.00%	(19)
	Variable investment income on reserves (1)		0.22%		0.20%		0.11%		0.20%		0.33%	11		0.12%		0.21%	9
	Net investment income yield on reserves		4.38%		4.20%		4.17%		4.19%		4.27%	(11)		4.31%		4.21%	(10)
	Interest rate credited to contract holders		2.42%		2.44%		2.43%		2.37%		2.29%	(13)		2.39%		2.36%	(3)
	Interest rate spread		1.96%		1.76%		1.74%		1.82%		1.98%	2		1.92%		1.85%	(7)
	Base spreads excluding variable investment income		1.74%		1.56%		1.63%		1.62%		1.65%	(9)		1.80%		1.64%	(16)
	Retirement Plan Services
	Earned rate on reserves		4.48%		4.42%		4.37%		4.30%		4.31%	(17)		4.52%		4.32%	(20)
	Variable investment income on reserves (1)		0.27%		0.27%		0.08%		0.17%		0.15%	(12)		0.13%		0.14%	1
	Net investment income yield on reserves		4.75%	��	4.69%		4.45%		4.47%		4.46%	(29)		4.65%		4.46%	(19)
	Interest rate credited to contract holders		3.00%		3.04%		2.93%		2.91%		2.93%	(7)		2.99%		2.92%	(7)
	Interest rate spread		1.75%		1.65%		1.52%		1.56%		1.53%	(22)		1.66%		1.54%	(12)
	Base spreads excluding variable investment income		1.48%		1.38%		1.44%		1.39%		1.38%	(10)		1.53%		1.40%	(13)
	Life Insurance – Interest-Sensitive
	Earned rate on reserves		5.22%		5.16%		5.11%		5.05%		5.06%	(16)		5.23%		5.07%	(16)
	Variable investment income on reserves (1)		0.42%		0.32%		0.34%		0.44%		0.27%	(15)		0.19%		0.35%	16
	Net investment income yield on reserves		5.64%		5.48%		5.45%		5.49%		5.33%	(31)		5.42%		5.42%	-
	Interest rate credited to contract holders		3.89%		3.85%		3.85%		3.82%		3.83%	(6)		3.91%		3.83%	(8)
	Interest rate spread		1.75%		1.63%		1.60%		1.67%		1.50%	(25)		1.51%		1.59%	8
	Base spreads excluding variable investment income		1.33%		1.31%		1.26%		1.23%		1.23%	(10)		1.32%		1.24%	(8)
	Total (2)
	Earned rate (3)		4.68%		4.64%		4.61%		4.57%		4.52%	(16)		4.72%		4.57%	(15)
	Variable investment income (1) (3)		0.36%		0.30%		0.26%		0.35%		0.28%	(8)		0.16%		0.29%	13
	Net investment income yield (3)		5.04%		4.94%		4.87%		4.92%		4.80%	(24)		4.88%		4.86%	(2)
	Interest rate credited to contract holders		3.28%		3.28%		3.26%		3.22%		3.19%	(9)		3.29%		3.22%	(7)
	Interest rate spread		1.76%		1.66%		1.61%		1.70%		1.61%	(15)		1.59%		1.64%	5
	Base spreads excluding variable investment income		1.40%		1.36%		1.35%		1.35%		1.33%	(7)		1.43%		1.35%	(8)
	(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
	(2) Includes the results of all of our business segments and Other Operations.
	(3) Includes investment yields on reserves and surplus.
Page 12

	Lincoln Financial Group
	Annuities – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	45	$	67	$	124	$	106	$	82	82.2%	$	264	$	312	18.2%
	Fee income		535		529		533		553		574	7.3%		1,539		1,660	7.9%
	Net investment income		268		256		256		263		260	-3.0%		777		779	0.3%
	Operating realized gain (loss)		45		45		45		45		44	-2.2%		132		134	1.5%
	Other revenues		107		114		103		109		113	5.6%		311		326	4.8%
	Total operating revenues		1,000		1,011		1,061		1,076		1,073	7.3%		3,023		3,211	6.2%
	Operating expenses:
	Interest credited		148		149		147		145		145	-2.0%		432		438	1.4%
	Benefits		112		132		193		174		135	20.5%		465		502	8.0%
	Commissions incurred		214		202		224		222		216	0.9%		648		662	2.2%
	Other expenses incurred		214		214		213		224		220	2.8%		643		657	2.2%
	Amounts capitalized		(100)		(92)		(97)		(98)		(90)	10.0%		(318)		(285)	10.4%
	Amortization		109		100		101		99		97	-11.0%		282		297	5.3%
	Total operating expenses		697		705		781		766		723	3.7%		2,152		2,271	5.5%
	Income (loss) from operations before taxes		303		306		280		310		350	15.5%		871		940	7.9%
	Federal income tax expense (benefit)		63		64		(1)		59		73	15.9%		178		131	-26.4%
	Income (loss) from operations	$	240	$	242	$	281	$	251	$	277	15.4%	$	693	$	809	16.7%
	Effective Federal Income Tax Rate		20.8%		21.0%		-0.4%		19.2%		20.8%			20.4%		14.0%
	Average Equity, Excluding Goodwill and AOCI	$	4,611	$	4,608	$	4,575	$	4,769	$	4,982	8.0%	$	4,498	$	4,775	6.2%
	ROE, Excluding Goodwill and AOCI		20.8%		21.0%		24.6%		21.0%		22.3%			20.6%		22.6%
	Return on Average Account Values		77		78		88		77		84	7		76		83	7
	Account Values
	Variable annuity account values:
	Average	$	105,954	$	105,374	$	108,337	$	110,832	$	112,888	6.5%	$	103,015	$	110,764	7.5%
	End-of-period		106,473		105,766		109,475		111,570		114,270	7.3%		106,473		114,270	7.3%
	Fixed annuity account values:
	Average		19,069		19,076		19,307		19,489		19,416	1.8%		18,861		19,405	2.9%
	End-of-period		19,037		19,139		19,455		19,459		19,394	1.9%		19,037		19,394	1.9%
Page 13

	Lincoln Financial Group
	Retirement Plan Services – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Fee income	$	58	$	58	$	59	$	62	$	63	8.6%	$	170	$	183	7.6%
	Net investment income		220		222		218		224		223	1.4%		637		666	4.6%
	Other revenues		4		4		5		4		5	25.0%		12		14	16.7%
	Total operating revenues		282		284		282		290		291	3.2%		819		863	5.4%
	Operating expenses:
	Interest credited		128		134		132		134		136	6.3%		379		401	5.8%
	Benefits		-		-		-		-		-	NM		1		1	0.0%
	Commissions incurred		20		18		19		19		19	-5.0%		59		57	-3.4%
	Other expenses incurred		85		89		85		89		86	1.2%		250		259	3.6%
	Amounts capitalized		(6)		(10)		(8)		(8)		(6)	0.0%		(19)		(22)	-15.8%
	Amortization		10		7		6		6		8	-20.0%		21		20	-4.8%
	Total operating expenses		237		238		234		240		243	2.5%		691		716	3.6%
	Income (loss) from operations before taxes		45		46		48		50		48	6.7%		128		147	14.8%
	Federal income tax expense (benefit)		13		12		11		13		13	0.0%		34		38	11.8%
	Income (loss) from operations	$	32	$	34	$	37	$	37	$	35	9.4%	$	94	$	109	16.0%
	Effective Federal Income Tax Rate		28.6%		26.8%		22.4%		27.5%		27.9%			26.7%		26.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,128	$	1,149	$	1,191	$	1,218	$	1,218	8.0%	$	1,098	$	1,209	10.1%
	ROE, Excluding Goodwill and AOCI		11.4%		11.7%		12.5%		12.0%		11.5%			11.4%		12.0%
	Pre-tax Net Margin		29.4%		30.5%		31.9%		32.2%		31.3%			29.1%		31.8%
	Return on Average Account Values		23		23		25		24		22	(1)		23		23	-
	Net Flows by Market
	Small Market		99		320		(380)		124		169	70.7%	$	90	$	(87)	NM
	Mid - Large Market		166		340		738		525		492	196.4%		572		1,756	207.0%
	Multi-Fund®and Other		(168)		(274)		(242)		(254)		(246)	-46.4%		(482)		(743)	-54.1%
	Net Flows – Trailing Twelve Months	$	(41)	$	565	$	603	$	994	$	1,312	NM	$	(41)	$	1,312	NM
Page 14

	Lincoln Financial Group
	Life Insurance – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		As of or For the Three Months Ended											As of or For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	174	$	179	$	185	$	199	$	191	9.8%	$	524	$	575	9.7%
	Fee income		780		758		760		778		764	-2.1%		2,188		2,301	5.2%
	Net investment income		665		652		658		672		655	-1.5%		1,910		1,984	3.9%
	Operating realized gain (loss)		(1)		3		(4)		(3)		(3)	NM		(1)		(10)	NM
	Other revenues		12		8		7		9		7	-41.7%		25		24	-4.0%
	Total operating revenues		1,630		1,600		1,606		1,655		1,614	-1.0%		4,646		4,874	4.9%
	Operating expenses:
	Interest credited		349		348		349		349		350	0.3%		1,045		1,048	0.3%
	Benefits		522		707		797		807		808	54.8%		1,971		2,411	22.3%
	Commissions incurred		190		222		174		190		176	-7.4%		512		541	5.7%
	Other expenses incurred		201		207		201		209		205	2.0%		579		615	6.2%
	Amounts capitalized		(219)		(249)		(199)		(219)		(201)	8.2%		(582)		(619)	-6.4%
	Amortization		341		137		97		125		101	-70.4%		597		322	-46.1%
	Total operating expenses		1,384		1,372		1,419		1,461		1,439	4.0%		4,122		4,318	4.8%
	Income (loss) from operations before taxes		246		228		187		194		175	-28.9%		524		556	6.1%
	Federal income tax expense (benefit)		79		74		57		61		54	-31.6%		163		172	5.5%
	Income (loss) from operations	$	167	$	154	$	130	$	133	$	121	-27.5%	$	361	$	384	6.4%
	Effective Federal Income Tax Rate		32.4%		32.6%		30.3%		31.6%		30.8%			31.1%		30.9%
	Average Equity, Excluding Goodwill and AOCI	$	6,272	$	6,410	$	6,581	$	6,762	$	6,798	8.4%	$	6,332	$	6,714	6.0%
	ROE, Excluding Goodwill and AOCI		10.6%		9.6%		7.9%		7.9%		7.1%			7.6%		7.6%
	Average Account Values	$	44,792	$	45,485	$	46,147	$	46,842	$	47,547	6.2%	$	44,250	$	46,845	5.9%
	In-Force Face Amount
	UL and other	$	334,601	$	336,851	$	337,338	$	337,971	$	338,753	1.2%	$	334,601	$	338,753	1.2%
	Term insurance		350,047		356,083		361,247		366,628		372,943	6.5%		350,047		372,943	6.5%
	Total in-force face amount	$	684,648	$	692,934	$	698,585	$	704,599	$	711,696	4.0%	$	684,648	$	711,696	4.0%
Page 15

	Lincoln Financial Group
	Group Protection – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Income (Loss) from Operations
	Operating revenues:
	Insurance premiums	$	485	$	487	$	495	$	494	$	500	3.1%	$	1,452	$	1,488	2.5%
	Net investment income		45		47		43		43		41	-8.9%		131		127	-3.1%
	Other revenues		4		3		3		4		23	NM		10		31	210.0%
	Total operating revenues		534		537		541		541		564	5.6%		1,593		1,646	3.3%
	Operating expenses:
	Interest credited		1		1		-		-		-	-100.0%		2		1	-50.0%
	Benefits		291		345		351		326		334	14.8%		976		1,009	3.4%
	Commissions incurred		57		67		63		62		62	8.8%		181		188	3.9%
	Other expenses incurred		102		116		96		99		107	4.9%		292		301	3.1%
	Amounts capitalized		(14)		(30)		(13)		(13)		(16)	-14.3%		(46)		(42)	8.7%
	Amortization		53		13		33		14		14	-73.6%		113		62	-45.1%
	Total operating expenses		490		512		530		488		501	2.2%		1,518		1,519	0.1%
	Income (loss) from operations before taxes		44		25		11		53		63	43.2%		75		127	69.3%
	Federal income tax expense (benefit)		16		9		4		18		22	37.5%		26		44	69.2%
	Income (loss) from operations	$	28	$	16	$	7	$	35	$	41	46.4%	$	49	$	83	69.4%
	Effective Federal Income Tax Rate		35.0%		35.0%		35.0%		35.0%		35.0%			35.0%		35.0%
	Average Equity, Excluding Goodwill and AOCI	$	1,096	$	1,070	$	1,065	$	1,044	$	1,054	-3.8%	$	1,152	$	1,054	-8.5%
	ROE, Excluding Goodwill and AOCI		10.4%		6.1%		2.6%		13.3%		15.6%			5.6%		10.5%
	Loss Ratios by Product Line
	Life		66.1%		66.1%		72.5%		66.1%		55.8%			69.2%		64.8%
	Disability		52.9%		76.4%		68.9%		65.4%		69.5%			65.0%		67.9%
	Dental		66.6%		67.0%		73.3%		68.7%		68.0%			70.2%		70.0%
	Total non-medical		60.1%		70.9%		71.0%		66.1%		63.7%			67.4%		66.9%
Page 16

	Lincoln Financial Group
	Other Operations – Select Earnings and Operational Data
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Other Operations
	Operating revenues:
	Insurance premiums	$	3	$	2	$	3	$	2	$	1	-66.7%	$	12	$	7	-41.7%
	Net investment income		61		67		63		60		60	-1.6%		175		182	4.0%
	Amortization of deferred gain on
	business sold through reinsurance		18		18		18		4		-	-100.0%		53		22	-58.5%
	Other revenues		2		-		4		1		4	100.0%		4		9	125.0%
	Total operating revenues		84		87		88		67		65	-22.6%		244		220	-9.8%
	Operating expenses:
	Interest credited		17		18		18		18		15	-11.8%		56		51	-8.9%
	Benefits		49		34		28		27		36	-26.5%		107		91	-15.0%
	Commissions and other expenses		19		32		10		8		11	-42.1%		17		29	70.6%
	Interest and debt expenses		66		67		64		63		63	-4.5%		202		190	-5.9%
	Strategic digitization expense		-		8		9		14		10	NM		-		33	NM
	Total operating expenses		151		159		129		130		135	-10.6%		382		394	3.1%
	Income (loss) from operations before taxes		(67)		(72)		(41)		(63)		(70)	-4.5%		(138)		(174)	-26.1%
	Federal income tax expense (benefit)		(41)		(35)		(28)		(26)		(50)	-22.0%		(72)		(103)	-43.1%
	Income (loss) from operations	$	(26)	$	(37)	$	(13)	$	(37)	$	(20)	23.1%	$	(66)	$	(71)	-7.6%
Page 17

	Lincoln Financial Group
	Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	DAC, VOBA, and DSI
	Balance as of beginning-of-period	$	8,522	$	8,256	$	9,377	$	9,274	$	8,794	3.2%	$	9,766	$	9,377	-4.0%
	Deferrals		345		385		325		342		319	-7.5%		986		987	0.1%
	Operating amortization		(523)		(267)		(244)		(250)		(232)	55.6%		(1,037)		(726)	30.0%
	Deferrals, net of operating amortization		(178)		118		81		92		87	148.9%		(51)		261	NM
	Amortization associated with benefit ratio unlocking		(8)		2		(11)		(6)		(7)	12.5%		(7)		(24)	NM
	Adjustment related to realized (gains) losses		(26)		50		(5)		(10)		1	103.8%		(32)		(13)	59.4%
	Adjustment related to unrealized (gains) losses		(54)		951		(168)		(556)		(96)	-77.8%		(1,420)		(822)	42.1%
	Balance as of end-of-period	$	8,256	$	9,377	$	9,274	$	8,794	$	8,779	6.3%	$	8,256	$	8,779	6.3%
	DFEL
	Balance as of beginning-of-period	$	1,357	$	1,286	$	1,874	$	1,796	$	1,443	6.3%	$	1,952	$	1,874	-4.0%
	Deferrals		164		181		169		196		187	14.0%		450		551	22.4%
	Operating amortization		(151)		(100)		(82)		(94)		(98)	35.1%		(327)		(274)	16.2%
	Deferrals, net of operating amortization		13		81		87		102		89	NM		123		277	125.2%
	Amortization associated with benefit ratio unlocking		(1)		-		(1)		(1)		(1)	0.0%		(1)		(3)	NM
	Adjustment related to realized (gains) losses		(5)		2		(4)		(4)		(3)	40.0%		(6)		(11)	-83.3%
	Adjustment related to unrealized (gains) losses		(78)		505		(160)		(450)		17	121.8%		(782)		(592)	24.3%
	Balance as of end-of-period	$	1,286	$	1,874	$	1,796	$	1,443	$	1,545	20.1%	$	1,286	$	1,545	20.1%
	DAC, VOBA, DSI, and DFEL Balance as
	of End-of-Period, After-Tax	$	4,531	$	4,877	$	4,861	$	4,778	$	4,702	3.8%	$	4,531	$	4,702	3.8%
Page 18

	Lincoln Financial Group
	Annuities – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Fixed Annuities
	Balance as of beginning-of-period	$	19,598	$	19,634	$	19,723	$	20,027	$	20,021	2.2%	$	19,082	$	19,723	3.4%
	Gross deposits		420		411		562		377		384	-8.6%		1,566		1,324	-15.5%
	Full surrenders and deaths		(412)		(321)		(343)		(404)		(420)	-1.9%		(1,042)		(1,167)	-12.0%
	Other contract benefits		(137)		(148)		(137)		(150)		(155)	-13.1%		(394)		(442)	-12.2%
	Net flows		(129)		(58)		82		(177)		(191)	-48.1%		130		(285)	NM
	Reinvested interest credited		163		145		220		168		179	9.8%		409		565	38.1%
	Sales inducements deferred		2		2		2		3		5	150.0%		13		11	-15.4%
	Balance as of end-of-period, gross		19,634		19,723		20,027		20,021		20,014	1.9%		19,634		20,014	1.9%
	Reinsurance ceded		(597)		(584)		(572)		(562)		(620)	-3.9%		(597)		(620)	-3.9%
	Balance as of end-of-period, net	$	19,037	$	19,139	$	19,455	$	19,459	$	19,394	1.9%	$	19,037	$	19,394	1.9%
	Variable Annuities
	Balance as of beginning-of-period	$	103,861	$	106,473	$	105,766	$	109,475	$	111,570	7.4%	$	103,146	$	105,766	2.5%
	Gross deposits		1,518		1,399		1,454		1,614		1,532	0.9%		4,838		4,600	-4.9%
	Full surrenders and deaths		(1,312)		(1,236)		(1,439)		(1,474)		(1,374)	-4.7%		(3,503)		(4,287)	-22.4%
	Other contract benefits		(945)		(1,037)		(1,041)		(1,038)		(992)	-5.0%		(2,819)		(3,072)	-9.0%
	Net flows		(739)		(874)		(1,026)		(898)		(834)	-12.9%		(1,484)		(2,759)	-85.9%
	Change in market value and reinvestment		3,351		167		4,735		2,993		3,534	5.5%		4,811		11,263	134.1%
	Balance as of end-of-period, gross		106,473		105,766		109,475		111,570		114,270	7.3%		106,473		114,270	7.3%
	Reinsurance ceded		-		-		-		-		-	NM		-		-	NM
	Balance as of end-of-period, net	$	106,473	$	105,766	$	109,475	$	111,570	$	114,270	7.3%	$	106,473	$	114,270	7.3%
	Total
	Balance as of beginning-of-period	$	123,459	$	126,107	$	125,489	$	129,502	$	131,591	6.6%	$	122,228	$	125,489	2.7%
	Gross deposits		1,938		1,810		2,016		1,991		1,916	-1.1%		6,404		5,924	-7.5%
	Full surrenders and deaths		(1,724)		(1,557)		(1,782)		(1,878)		(1,794)	-4.1%		(4,545)		(5,454)	-20.0%
	Other contract benefits		(1,082)		(1,185)		(1,178)		(1,188)		(1,147)	-6.0%		(3,213)		(3,514)	-9.4%
	Net flows		(868)		(932)		(944)		(1,075)		(1,025)	-18.1%		(1,354)		(3,044)	NM
	Change in market value and reinvestment		3,514		312		4,955		3,161		3,713	5.7%		5,220		11,828	126.6%
	Sales inducements deferred		2		2		2		3		5	150.0%		13		11	-15.4%
	Balance as of end-of-period, gross		126,107		125,489		129,502		131,591		134,284	6.5%		126,107		134,284	6.5%
	Reinsurance ceded		(597)		(584)		(572)		(562)		(620)	-3.9%		(597)		(620)	-3.9%
	Balance as of end-of-period, net	$	125,510	$	124,905	$	128,930	$	131,029	$	133,664	6.5%	$	125,510	$	133,664	6.5%
Page 19

	Lincoln Financial Group
	Retirement Plan Services – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	General Account
	Balance as of beginning-of-period	$	16,996	$	17,387	$	17,883	$	18,192	$	18,413	8.3%	$	16,588	$	17,883	7.8%
	Gross deposits		555		681		710		557		415	-25.2%		1,423		1,681	18.1%
	Withdrawals		(456)		(557)		(538)		(429)		(397)	12.9%		(1,512)		(1,363)	9.9%
	Net flows		99		124		172		128		18	-81.8%		(89)		318	NM
	Transfers between fixed and variable accounts		163		238		1		(40)		59	-63.8%		509		19	-96.3%
	Reinvestment interest credited		129		134		136		133		136	5.4%		379		406	7.1%
	Balance as of end-of-period	$	17,387	$	17,883	$	18,192	$	18,413	$	18,626	7.1%	$	17,387	$	18,626	7.1%
	Separate Account and Mutual Funds
	Balance as of beginning-of-period	$	38,434	$	39,881	$	40,551	$	42,541	$	44,155	14.9%	$	37,512	$	40,551	8.1%
	Gross deposits		1,244		1,725		1,542		1,421		1,493	20.0%		3,828		4,457	16.4%
	Withdrawals		(1,246)		(1,463)		(1,598)		(1,154)		(1,096)	12.0%		(3,559)		(3,849)	-8.1%
	Net flows		(2)		262		(56)		267		397	NM		269		608	126.0%
	Transfers between fixed and variable accounts		(126)		(172)		(8)		(23)		(88)	30.2%		(431)		(119)	72.4%
	Change in market value and reinvestment		1,575		580		2,054		1,370		1,739	10.4%		2,531		5,163	104.0%
	Balance as of end-of-period	$	39,881	$	40,551	$	42,541	$	44,155	$	46,203	15.9%	$	39,881	$	46,203	15.9%
	Total
	Balance as of beginning-of-period	$	55,430	$	57,268	$	58,434	$	60,733	$	62,568	12.9%	$	54,100	$	58,434	8.0%
	Gross deposits		1,799		2,406		2,252		1,978		1,908	6.1%		5,251		6,138	16.9%
	Withdrawals		(1,702)		(2,020)		(2,136)		(1,583)		(1,493)	12.3%		(5,071)		(5,212)	-2.8%
	Net flows		97		386		116		395		415	NM		180		926	NM
	Transfers between fixed and variable accounts		37		66		(7)		(63)		(29)	NM		78		(100)	NM
	Change in market value and reinvestment		1,704		714		2,190		1,503		1,875	10.0%		2,910		5,569	91.4%
	Balance as of end-of-period	$	57,268	$	58,434	$	60,733	$	62,568	$	64,829	13.2%	$	57,268	$	64,829	13.2%
Page 20

	Lincoln Financial Group
	Life Insurance – Account Value Roll Forwards
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	General Account
	Balance as of beginning-of-period	$	35,775	$	35,975	$	36,272	$	36,295	$	36,454	1.9%	$	35,545	$	36,272	2.0%
	Deposits		1,050		1,159		1,042		1,115		1,070	1.9%		2,988		3,229	8.1%
	Withdrawals and deaths		(270)		(241)		(403)		(316)		(310)	-14.8%		(882)		(1,030)	-16.8%
	Net flows		780		918		639		799		760	-2.6%		2,106		2,199	4.4%
	Contract holder assessments		(921)		(975)		(969)		(995)		(999)	-8.5%		(2,688)		(2,964)	-10.3%
	Reinvested interest credited		341		354		353		355		361	5.9%		1,012		1,069	5.6%
	Balance as of end-of-period, gross		35,975		36,272		36,295		36,454		36,576	1.7%		35,975		36,576	1.7%
	Reinsurance ceded		(756)		(747)		(738)		(734)		(726)	4.0%		(756)		(726)	4.0%
	Balance as of end-of-period, net	$	35,219	$	35,525	$	35,557	$	35,720	$	35,850	1.8%	$	35,219	$	35,850	1.8%
	Separate Account
	Balance as of beginning-of-period	$	10,172	$	10,763	$	11,058	$	11,772	$	12,296	20.9%	$	9,696	$	11,058	14.0%
	Deposits		440		489		372		428		392	-10.9%		1,132		1,193	5.4%
	Withdrawals and deaths		(118)		(198)		(87)		(126)		(88)	25.4%		(328)		(302)	7.9%
	Net flows		322		291		285		302		304	-5.6%		804		891	10.8%
	Contract holder assessments		(153)		(158)		(152)		(165)		(163)	-6.5%		(431)		(480)	-11.4%
	Change in market value and reinvestment		422		162		581		387		479	13.5%		694		1,447	108.5%
	Balance as of end-of-period, gross		10,763		11,058		11,772		12,296		12,916	20.0%		10,763		12,916	20.0%
	Reinsurance ceded		(800)		(794)		(824)		(836)		(851)	-6.4%		(800)		(851)	-6.4%
	Balance as of end-of-period, net	$	9,963	$	10,264	$	10,948	$	11,460	$	12,065	21.1%	$	9,963	$	12,065	21.1%
	Total
	Balance as of beginning-of-period	$	45,947	$	46,738	$	47,330	$	48,067	$	48,750	6.1%	$	45,241	$	47,330	4.6%
	Deposits		1,490		1,648		1,414		1,543		1,462	-1.9%		4,120		4,422	7.3%
	Withdrawals and deaths		(388)		(439)		(490)		(442)		(398)	-2.6%		(1,210)		(1,332)	-10.1%
	Net flows		1,102		1,209		924		1,101		1,064	-3.4%		2,910		3,090	6.2%
	Contract holder assessments		(1,074)		(1,133)		(1,121)		(1,160)		(1,162)	-8.2%		(3,119)		(3,444)	-10.4%
	Change in market value and reinvestment		763		516		934		742		840	10.1%		1,706		2,516	47.5%
	Balance as of end-of-period, gross		46,738		47,330		48,067		48,750		49,492	5.9%		46,738		49,492	5.9%
	Reinsurance ceded		(1,556)		(1,541)		(1,562)		(1,570)		(1,577)	-1.3%		(1,556)		(1,577)	-1.3%
	Balance as of end-of-period, net	$	45,182	$	45,789	$	46,505	$	47,180	$	47,915	6.0%	$	45,182	$	47,915	6.0%
Page 21

	Lincoln Financial Group
	Select Investment Data
	Unaudited (millions of dollars)
		As of 9/30/16				As of 12/31/16				As of 9/30/17
		Amount		%		Amount		%		Amount		%
	AFS and Trading Securities, at Fair Value
	AFS securities:
	Corporate bonds	$	81,369		85.3%	$	78,149		85.6%	$	82,319		86.0%
	U.S. government bonds		458		0.5%		419		0.5%		574		0.6%
	Foreign government bonds		530		0.6%		506		0.6%		455		0.5%
	Mortgage-backed securities		4,019		4.2%		3,964		4.3%		4,037		4.2%
	Asset-backed collateralized debt obligations		686		0.7%		744		0.8%		694		0.7%
	State and municipal bonds		4,939		5.2%		4,627		5.1%		5,049		5.3%
	Hybrid and redeemable preferred securities		631		0.7%		604		0.7%		639		0.7%
	VIEs’ fixed maturity securities		600		0.6%		200		0.2%		-		0.0%
	Equity securities		273		0.3%		275		0.3%		302		0.3%
	Total AFS securities		93,505		98.1%		89,488		98.1%		94,069		98.3%
	Trading securities		1,808		1.9%		1,712		1.9%		1,665		1.7%
	Total AFS and trading securities	$	95,313		100.0%	$	91,200		100.0%	$	95,734		100.0%
	AFS and Trading Securities, at Amortized Cost
	Fixed maturity securities	$	85,860		99.7%	$	86,003		99.7%	$	88,050		99.7%
	Equity securities		259		0.3%		260		0.3%		296		0.3%
	Total AFS and trading securities	$	86,119		100.0%	$	86,263		100.0%	$	88,346		100.0%
	Percentage of Fixed Maturity AFS Securities, at Amortized Cost
	Investment grade				94.9%				95.0%				95.7%
	Below investment grade				5.1%				5.0%				4.3%
Page 22

	Lincoln Financial Group
	Realized Gain (Loss) and Benefit Ratio Unlocking, After-DAC
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Realized Gain (Loss), Pre-Tax
	Total operating realized gain (loss)	$	44	$	48	$	41	$	42	$	41	-6.8%	$	131	$	124	-5.3%
	Total excluded realized gain (loss)		(7)		(265)		(80)		(52)		(97)	NM		(252)		(229)	9.1%
	Total realized gain (loss), pre-tax	$	37	$	(217)	$	(39)	$	(10)	$	(56)	NM	$	(121)	$	(105)	13.2%
	Excluded Realized Gain (Loss) Net of
	Benefit Ratio Unlocking, After-Tax
	Total excluded realized gain (loss)	$	(4)	$	(172)	$	(52)	$	(34)	$	(63)	NM	$	(164)	$	(149)	9.1%
	Benefit ratio unlocking		30		(6)		45		26		30	0.0%		34		101	197.1%
	Net gain (loss), after-tax	$	26	$	(178)	$	(7)	$	(8)	$	(33)	NM	$	(130)	$	(48)	63.1%
	Realized Gain (Loss) Net of Benefit Ratio
	Unlocking, After-Tax
	Realized gain (loss) related to investments	$	(28)	$	(10)	$	(1)	$	(13)	$	(13)	53.6%	$	(140)	$	(27)	80.7%
	Variable annuity net derivative results:
	Hedge program performance, including unlocking
	for GLB reserves hedged		82		(87)		9		17		(5)	NM		(35)		22	162.9%
	GLB non-performance risk component		(32)		(91)		(9)		(8)		(16)	50.0%		59		(34)	NM
	Total variable annuity net derivative results		50		(178)		-		9		(21)	NM		24		(12)	NM
	Indexed annuity forward-starting option		4		10		(6)		(4)		1	-75.0%		(14)		(9)	35.7%
	Excluded realized gain (loss) net of
	benefit ratio unlocking, after-tax	$	26	$	(178)	$	(7)	$	(8)	$	(33)	NM	$	(130)	$	(48)	63.1%
	Components of Realized Gain (Loss)
	Related to Investments, After-Tax
	OTTI	$	(8)	$	(16)	$	(3)	$	(3)	$	(5)	38.5%	$	(49)	$	(10)	79.6%
	Other realized gain (loss) related to certain investments		(19)		(8)		(6)		(9)		(8)	58.0%		(90)		(22)	75.6%
	Gain (loss) on the mark-to-market on certain instruments		(1)		14		8		(1)		-	100.0%		(1)		5	NM
	Total realized gain (loss) related
	to investments, after-tax	$	(28)	$	(10)	$	(1)	$	(13)	$	(13)	53.6%	$	(140)	$	(27)	80.7%
Page 23

	Lincoln Financial Group
	Select GAAP to Non-GAAP Reconciliations
	Unaudited (millions of dollars)
		For the Three Months Ended											For the Nine Months Ended
		9/30/16		12/31/16		3/31/17		6/30/17		9/30/17		Change	9/30/16		9/30/17		Change
	Revenues
	Total revenues	$	3,525	$	3,254	$	3,500	$	3,577	$	3,511	-0.4%	$	10,076	$	10,588	5.1%
	Less:
	Excluded realized gain (loss)		(7)		(265)		(80)		(52)		(97)	NM		(252)		(229)	9.1%
	Amortization of DFEL on benefit ratio unlocking		1		(1)		1		-		1	0.0%		1		2	100.0%
	Amortization of deferred gains arising from reserve
	changes on business sold through reinsurance		1		1		1		-		-	-100.0%		2		1	-50.0%
	Operating revenues	$	3,530	$	3,519	$	3,578	$	3,629	$	3,607	2.2%	$	10,325	$	10,814	4.7%
	Net Income
	Net income (loss)	$	467	$	190	$	435	$	411	$	418	-10.5%	$	1,002	$	1,264	26.1%
	Less:
	Excluded realized gain (loss)		(4)		(172)		(52)		(34)		(63)	NM		(164)		(149)	9.1%
	Benefit ratio unlocking		30		(6)		45		26		30	0.0%		34		101	197.1%
	Income (loss) from reserve changes (net of related
	amortization) on business sold through reinsurance		-		-		-		-		-	NM		1		1	0.0%
	Gain (loss) on early extinguishment of debt		-		(41)		-		-		(3)	NM		-		(3)	NM
	Income (loss) from operations	$	441	$	409	$	442	$	419	$	454	2.9%	$	1,131	$	1,314	16.2%
	Earnings (Loss) Per Common Share – Diluted
	Net income (loss)	$	2.00	$	0.82	$	1.89	$	1.81	$	1.87	-6.5%	$	4.17	$	5.58	33.8%
	Less:
	Excluded realized gain (loss)		(0.02)		(0.75)		(0.22)		(0.16)		(0.28)	NM		(0.68)		(0.65)	4.4%
	Benefit ratio unlocking		0.13		(0.03)		0.19		0.12		0.13	0.0%		0.14		0.44	214.3%
	Gain (loss) on early extinguishment of debt		-		(0.17)		-		-		(0.01)	NM		-		(0.01)	NM
	Income (loss) from operations	$	1.89	$	1.77	$	1.92	$	1.85	$	2.03	7.4%	$	4.71	$	5.80	23.1%
Page 24