Lincoln National (LNC) 8-K Lincoln Financial Group reports THIRD Quarter 2022 Results And Declares Quarterly Cash Dividend

Lincoln Financial Group
Table of Contents
Notes	1
Credit Ratings	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
Fixed-Income Asset Class	22
Fixed-Income Credit Quality	23
Realized Gain (Loss), After-DAC	24
Select GAAP to Non-GAAP Reconciliations	25

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.

• We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.  In addition, for any period where a net loss or adjusted loss from operations is experienced,

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

• Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets.  ROE is calculated by dividing annualized net income (loss) (or adjusted income (loss)

 from operations) by average equity, excluding accumulated other comprehensive income (loss) (“AOCI”).  Management evaluates consolidated ROE by both including and excluding the effect

 of average goodwill.

• Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI, by common shares outstanding.  We provide book value per share, excluding AOCI, to enable

 investors to analyze the amount of our net worth that is attributable primarily to our business operations.  Management believes book value per share excluding AOCI is useful to investors because

 it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.  Book value per share is the most directly comparable GAAP measure.

• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.

Definitions

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial

paper outstanding.

Sales as reported consist of the following:

• Annuities and Retirement Plan Services – deposits from new and existing customers;

• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

•  MoneyGuard®linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM (VUL), 150% of commissionable premiums;

• Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of

     single premium deposits;

• Term – 100% of annualized first-year premiums; and

• Group Protection – annualized first-year premiums from new policies.

Throughout the document, “after-DAC” refers to the associated amortization expense of deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”)

and deferred front-end loads (“DFEL”) and changes in other contract holder funds.

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.

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein.

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Realized gains and losses associated with the following (“excluded realized gain (loss)”):

▪ Sales or disposals and impairments of financial assets;

▪ Changes in the fair value of equity securities;

▪ Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities (“gain (loss) on the mark-to-market on certain instruments”);

▪ Changes in the fair value of the derivatives we own to hedge our guaranteed death benefit (“GDB”) riders within our variable annuities;

▪ Changes in the fair value of the embedded derivatives of our guaranteed living benefit (“GLB”) riders reflected within variable annuity net derivative results accounted for at fair value;

▪ Changes in the fair value of the derivatives we own to hedge our GLB riders reflected within variable annuity net derivative results; and

▪ Changes in the fair value of the embedded derivative liabilities related to index options we may purchase or sell in the future to hedge contract holder index allocations applicable to

future reset periods for our indexed annuity products accounted for at fair value (“indexed annuity forward-starting options”);

• Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders and variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”);

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

• Gains (losses) on modification or early extinguishment of debt;

• Losses from the impairment of intangible assets;

• Income (loss) from discontinued operations;

• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business; and

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes including the net impact from the Tax Cuts and Jobs Act.

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

• Excluded realized gain (loss);

• Revenue adjustments from the initial adoption of new accounting standards;

• Amortization of DFEL arising from changes in benefit ratio unlocking; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Management believes that the non-GAAP performance measures previously discussed explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying

trends in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many

instances, decisions regarding these items do not necessarily relate to the operations of the individual segments.  In addition, we believe that our definitions of adjusted operating revenues and adjusted

income from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

Statistical Supplement is Dated

The financial data in this document is dated November 2, 2022, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

Page 1b

Lincoln Financial Group
Credit Ratings
	Ratings as of November 2, 2022
					Standard
		A.M Best	Fitch	Moody's	& Poor's
Senior Debt Ratings		a-	BBB+	Baa1	A-
Financial Strength Ratings
The Lincoln National Life Insurance Company		A+	A+	A1	AA-
First Penn-Pacific Life Insurance Company		A	A+	A1	A-
Lincoln Life & Annuity Company of New York		A+	A+	A1	AA-
Investor Inquiries May Be Directed To:
Albert Copersino, Vice President, Investor Relations
Email:  Albert.Copersino@lfg.com
Phone:  203-257-4493
Page 2

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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Revenues
Insurance premiums	$	1,394	$	1,420	$	1,477	$	1,498	$	1,548	11.0%	$	4,198	$	4,523	7.7%
Fee income		1,996		1,628		1,568		1,506		1,527	-23.5%		5,258		4,602	-12.5%
Net investment income		1,576		1,445		1,412		1,369		1,326	-15.9%		4,670		4,108	-12.0%
Realized gain (loss)		85		(115)		29		522		220	158.8%		(97)		771	NM
Amortization of deferred gain on business
sold through reinsurance		9		19		19		19		18	100.0%		27		56	107.4%
Other revenues		181		207		182		190		159	-12.2%		571		529	-7.4%
Total revenues		5,241		4,604		4,687		5,104		4,798	-8.5%		14,627		14,589	-0.3%
Expenses
Interest credited		750		692		697		706		722	-3.7%		2,224		2,125	-4.5%
Benefits		2,122		2,251		2,565		2,890		5,106	140.6%		6,278		10,562	68.2%
Commissions and other expenses		1,906		1,328		1,236		1,127		1,358	-28.8%		4,462		3,721	-16.6%
Interest and debt expense		73		66		66		68		71	-2.7%		204		205	0.5%
Spark program expense		22		30		31		44		44	100.0%		57		118	107.0%
Impairment of intangibles		-		-		-		-		634	NM		-		634	NM
Total expenses		4,873		4,367		4,595		4,835		7,935	62.8%		13,225		17,365	31.3%
Income (loss) before taxes		368		237		92		269		(3,137)	NM		1,402		(2,776)	NM
Federal income tax expense (benefit)		50		17		(12)		31		(563)	NM		217		(543)	NM
Net income (loss)		318		220		104		238		(2,574)	NM		1,185		(2,233)	NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans		-		-		(1)		(7)		(1)	NM		-		(8)	NM
Net income (loss) available to common
stockholders – diluted	$	318	$	220	$	103	$	231	$	(2,575)	NM	$	1,185	$	(2,241)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.68	$	1.20	$	0.58	$	1.34	$	(15.17)	NM	$	6.19	$	(13.06)	NM
ROE, including AOCI
Net income (loss)		5.9%		4.2%		2.4%		8.0%		NM			7.5%		-25.4%
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	100,862	$	98,120	$	90,561	$	83,158	$	77,446	-23.2%
U.S. government bonds		443		433		418		415		384	-13.3%
State and municipal bonds		6,901		6,621		6,001		5,523		5,089	-26.3%
Foreign government bonds		512		432		383		348		338	-34.0%
Residential mortgage-backed securities		2,935		2,525		2,338		2,181		2,048	-30.2%
Commercial mortgage-backed securities		1,594		1,599		1,592		1,557		1,549	-2.8%
Asset-backed securities		8,303		8,512		8,929		9,711		10,347	24.6%
Hybrid and redeemable preferred securities		535		504		473		472		371	-30.7%
Total fixed maturity AFS securities, net of allowance for credit losses		122,085		118,746		110,695		103,365		97,572	-20.1%
Trading securities		4,191		4,482		4,385		3,822		3,580	-14.6%
Equity securities		243		318		346		344		427	75.7%
Mortgage loans on real estate, net of allowance for credit losses		17,730		17,991		17,892		17,922		18,066	1.9%
Policy loans		2,379		2,364		2,339		2,368		2,347	-1.3%
Derivative investments		4,828		5,437		4,840		3,370		3,681	-23.8%
Other investments		4,069		4,292		4,127		4,054		3,820	-6.1%
Total investments		155,525		153,630		144,624		135,245		129,493	-16.7%
Cash and invested cash		2,614		2,612		1,960		1,567		1,472	-43.7%
DAC and VOBA		5,965		6,081		8,810		11,872		13,676	129.3%
Premiums and fees receivable		584		580		671		656		583	-0.2%
Accrued investment income		1,297		1,189		1,247		1,226		1,283	-1.1%
Reinsurance recoverables, net of allowance for credit losses		15,729		20,295		20,044		19,909		20,045	27.4%
Funds withheld reinsurance assets		526		517		510		506		501	-4.8%
Goodwill		1,778		1,778		1,778		1,778		1,144	-35.7%
Other assets		17,367		18,036		17,406		17,219		19,191	10.5%
Separate account assets		175,667		182,583		168,879		145,791		137,295	-21.8%
Total assets	$	377,052	$	387,301	$	365,929	$	335,769	$	324,683	-13.9%
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future contract benefits	$	40,641	$	41,030	$	39,773	$	39,306	$	41,716	2.6%
Other contract holder funds		109,297		111,702		112,901		115,127		118,174	8.1%
Short-term debt		300		300		-		-		500	66.7%
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		866		867		867		867		867	0.1%
Financial		5,457		5,458		5,694		5,631		5,092	-6.7%
Reinsurance-related embedded derivatives		304		206		-		-		-	-100.0%
Funds withheld reinsurance liabilities		2,078		2,118		2,164		2,229		2,190	5.4%
Payables for collateral on investments		8,379		8,946		8,927		7,524		6,865	-18.1%
Other liabilities		12,893		13,819		12,012		10,106		9,767	-24.2%
Separate account liabilities		175,667		182,583		168,879		145,791		137,295	-21.8%
Total liabilities		355,882		367,029		351,217		326,581		322,466	-9.4%
Stockholders’ Equity
Common stock		4,956		4,735		4,586		4,546		4,534	-8.5%
Retained earnings		9,365		9,096		8,876		8,985		6,311	-32.6%
AOCI:
Unrealized investment gains (losses)		7,128		6,674		1,485		(4,104)		(8,384)	NM
Foreign currency translation adjustment		(14)		(14)		(19)		(33)		(47)	NM
Funded status of employee benefit plans		(265)		(219)		(216)		(206)		(197)	25.7%
Total AOCI		6,849		6,441		1,250		(4,343)		(8,628)	NM
Total stockholders’ equity		21,170		20,272		14,712		9,188		2,217	-89.5%
Total liabilities and stockholders’ equity	$	377,052	$	387,301	$	365,929	$	335,769	$	324,683	-13.9%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss)
Net income (loss)	$	318	$	220	$	104	$	238	$	(2,574)	NM	$	1,185	$	(2,233)	NM
Pre-tax adjusted income (loss) from operations		354		320		333		463		(2,243)	NM		1,504		(1,447)	NM
After-tax adjusted income (loss) from operations (1)		307		286		294		391		(1,735)	NM		1,265		(1,050)	NM
Adjusted operating tax rate		13.3%		10.6%		11.5%		15.6%		22.6%			15.9%		27.4%
Average Stockholders’ Equity
Average equity, including AOCI	$	21,458	$	20,721	$	17,492	$	11,950	$	5,702	-73.4%	$	21,091	$	11,715	-44.5%
Average AOCI		7,164		6,645		3,846		(1,547)		(6,485)	NM		7,043		(1,395)	NM
Average equity, excluding AOCI	$	14,294	$	14,076	$	13,646	$	13,497	$	12,187	-14.7%	$	14,048	$	13,110	-6.7%
ROE, Excluding AOCI
Net income (loss)		8.9%		6.3%		3.0%		7.0%		-84.5%			11.2%		-22.7%
Adjusted income (loss) from operations		8.6%		8.1%		8.6%		11.6%		-57.0%			12.0%		-10.7%
Per Share
Net income (loss) (diluted)	$	1.68	$	1.20	$	0.58	$	1.34	$	(15.17)	NM	$	6.19	$	(13.06)	NM
Adjusted income (loss) from operations (diluted)		1.62		1.56		1.66		2.23		(10.23)	NM		6.62		(6.17)	NM
Dividends declared during the period		0.42		0.45		0.45		0.45		0.45	7.1%		1.26		1.35	7.1%
Book value, including AOCI	$	113.77	$	114.41	$	85.59	$	53.97	$	13.10	-88.5%	$	113.77	$	13.10	-88.5%
Per share impact of AOCI		36.81		36.36		7.27		(25.52)		(50.99)	NM		36.81		(50.99)	NM
Book value, excluding AOCI	$	76.96	$	78.05	$	78.32	$	79.49	$	64.09	-16.7%	$	76.96	$	64.09	-16.7%
Shares
Repurchased during the period		3.1		9.1		5.8		1.8		1.0	-67.7%		7.2		8.7	20.8%
End-of-period – basic		186.1		177.2		171.9		170.2		169.2	-9.1%		186.1		169.2	-9.1%
Average for the period – basic		187.3		180.5		174.2		171.1		169.7	-9.4%		189.7		171.6	-9.5%
End-of-period – diluted		188.1		179.8		173.8		171.6		170.7	-9.3%		188.1		170.7	-9.3%
Average for the period – diluted		189.1		183.2		176.4		172.7		171.1	-9.5%		191.3		173.4	-9.4%
(1) See reconciliation to net income (loss) on page 25.
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Cash Returned to Common Stockholders
Shares repurchased	$	200	$	650	$	400	$	100	$	50	-75.0%	$	455	$	550	20.9%
Common dividends		79		78		80		77		77	-2.5%		240		234	-2.5%
Total cash returned to common stockholders	$	279	$	728	$	480	$	177	$	127	-54.5%	$	695	$	784	12.8%
Leverage Ratio
Short-term debt	$	300	$	300	$	-	$	-	$	500	66.7%
Long-term debt		6,323		6,325		6,561		6,498		5,959	-5.8%
Total debt (1)		6,623		6,625		6,561		6,498		6,459	-2.5%
Less:
Operating debt (2)		866		867		867		867		867	0.1%
Pre-funding of upcoming debt maturities		300		300		300		300		300	0.0%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
Carrying value of fair value hedges and other items		333		335		273		209		169	-49.2%
Total numerator	$	4,822	$	4,821	$	4,819	$	4,820	$	4,821	0.0%
Stockholders’ equity, excluding unrealized
investment gains (losses)	$	14,042	$	13,598	$	13,227	$	13,292	$	10,601	-24.5%
Add:  25% of capital securities and subordinated
notes		302		302		302		302		302	0.0%
Total numerator		4,822		4,821		4,819		4,820		4,821	0.0%
Total denominator	$	19,166	$	18,721	$	18,348	$	18,414	$	15,724	-18.0%
Leverage ratio		25.2%		25.8%		26.3%		26.2%		30.7%
Holding Company Available Liquidity	$	754	$	1,117	$	755	$	756	$	756	0.3%
(1) Excludes obligations under finance leases and certain financing arrangements of $551 million that are reported in other liabilities on our Consolidated Balance Sheets.
(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce the strain
on increasing statutory reserves associated with secondary guarantee UL and term policies.
Page 6

Lincoln Financial Group
Segment and Sources of Earnings
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss) from Operations, Pre-Tax
Annuities	$	403	$	391	$	351	$	295	$	534	32.5%	$	1,133	$	1,180	4.1%
Retirement Plan Services		72		68		64		63		60	-16.7%		216		187	-13.4%
Life Insurance		113		97		65		139		(2,743)	NM		560		(2,539)	NM
Group Protection		(40)		(146)		(52)		75		46	215.0%		(15)		70	NM
Other Operations		(194)		(90)		(95)		(109)		(140)	27.8%		(390)		(345)	11.5%
Adjusted income (loss) from operations, before
income taxes	$	354	$	320	$	333	$	463	$	(2,243)	NM	$	1,504	$	(1,447)	NM
Income (Loss) from Operations, After-Tax
Annuities	$	338	$	332	$	302	$	256	$	449	32.8%	$	951	$	1,007	5.9%
Retirement Plan Services		60		57		55		54		52	-13.3%		178		161	-9.6%
Life Insurance		93		80		58		114		(2,160)	NM		455		(1,988)	NM
Group Protection		(32)		(115)		(41)		59		37	215.6%		(12)		55	NM
Other Operations		(152)		(68)		(80)		(92)		(113)	25.7%		(307)		(285)	7.2%
Adjusted income (loss) from operations	$	307	$	286	$	294	$	391	$	(1,735)	NM	$	1,265	$	(1,050)	NM
	For the Three Months Ended											For the Trailing Twelve Months
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Sources of Earnings, Pre-Tax
Investment spread	$	152	$	113	$	99	$	128	$	(919)	NM	$	658	$	(579)	NM
Mortality/morbidity		21		(81)		(11)		150		(1,620)	NM		327		(1,562)	NM
Fees on AUM		381		355		325		305		221	-42.0%		1,381		1,206	-12.7%
VA riders		(6)		23		15		(11)		215	NM		47		243	NM
Total sources of earnings, before income taxes		548		410		428		572		(2,103)	NM		2,413		(692)	NM
Other Operations		(194)		(90)		(95)		(109)		(140)	27.8%		(516)		(436)	15.5%
Adjusted income (loss) from operations, before
income taxes	$	354	$	320	$	333	$	463	$	(2,243)	NM	$	1,897	$	(1,128)	NM
Sources of Earnings, Pre-Tax, Percentage By Component
Investment spread		27.7%		27.6%		23.2%		22.3%		-43.7%			27.3%		-83.6%
Mortality/morbidity		3.9%		-19.7%		-2.6%		26.2%		-77.1%			13.6%		-225.8%
Fees on AUM		69.4%		86.5%		76.0%		53.3%		10.5%			57.2%		174.4%
VA riders		-1.0%		5.6%		3.4%		-1.8%		10.3%			1.9%		35.0%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Annuities
Operating revenues	$	1,267	$	1,282	$	1,232	$	1,169	$	1,183	-6.6%	$	3,720	$	3,583	-3.7%
Deposits		2,707		3,011		2,705		2,702		3,262	20.5%		8,729		8,669	-0.7%
Net flows		(841)		(655)		(553)		(318)		319	137.9%		(1,913)		(551)	71.2%
Average account values, net of reinsurance		169,581		170,953		163,628		152,025		147,049	-13.3%		165,234		154,212	-6.7%
Retirement Plan Services
Operating revenues	$	328	$	335	$	318	$	315	$	316	-3.7%	$	989	$	949	-4.0%
Deposits		2,411		3,000		3,367		2,943		2,799	16.1%		7,839		9,109	16.2%
Net flows		(21)		(380)		946		913		811	NM		843		2,670	216.7%
Average account values		96,723		98,008		95,843		90,628		88,194	-8.8%		93,448		91,642	-1.9%
Life Insurance
Operating revenues	$	2,325	$	1,844	$	1,825	$	1,800	$	1,762	-24.2%	$	6,293	$	5,387	-14.4%
Deposits		1,324		1,872		1,334		1,439		1,386	4.7%		3,822		4,160	8.8%
Net flows		871		1,438		883		1,038		978	12.3%		2,544		2,898	13.9%
Average account values, net of reinsurance		59,642		51,067		51,236		49,380		47,742	-20.0%		58,902		49,453	-16.0%
Average in-force face amount		935,096		959,478		985,286		1,010,659		1,037,952	11.0%		917,556		1,011,299	10.2%
Group Protection
Operating revenues	$	1,243	$	1,252	$	1,303	$	1,323	$	1,333	7.2%	$	3,743	$	3,959	5.8%
Insurance premiums		1,107		1,117		1,169		1,187		1,200	8.4%		3,333		3,556	6.7%
Consolidated
Adjusted operating revenues (1)	$	5,205	$	4,769	$	4,718	$	4,641	$	4,630	-11.0%	$	14,870	$	13,989	-5.9%
Deposits		6,442		7,883		7,406		7,084		7,447	15.6%		20,390		21,938	7.6%
Net flows		9		403		1,276		1,633		2,108	NM		1,474		5,017	240.4%
Average account values, net of reinsurance		325,946		320,028		310,707		292,033		282,985	-13.2%		317,584		295,307	-7.0%
(1) See reconciliation to total revenues on page 25.
Page 8

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Sales
Annuities:
Indexed variable	$	853	$	977	$	1,048	$	1,220	$	1,246	46.1%	$	3,933	$	3,515
Other variable without GLBs		739		787		605		422		374	-49.4%		2,032		1,399
Other variable with GLBs		773		834		678		536		475	-38.6%		2,153		1,689	-21.6%
Total variable		2,365		2,598		2,331		2,178		2,095	-11.4%		8,118		6,603	-18.7%
Fixed		342		413		374		524		1,167	241.2%		611		2,066	238.1%
Total Annuities	$	2,707	$	3,011	$	2,705	$	2,702	$	3,262	20.5%	$	8,729	$	8,669	-0.7%
Percent with GLBs		28.6%		27.7%		25.1%		19.8%		14.6%			24.7%		19.5%
Percent with GLBs, including the impact of VA reinsurance		20.2%		20.8%		17.9%		14.0%		11.4%			19.8%		14.2%
Retirement Plan Services:
First-year sales	$	745	$	1,270	$	1,198	$	1,210	$	991	33.0%	$	2,541	$	3,400	33.8%
Recurring deposits		1,666		1,730		2,169		1,733		1,808	8.5%		5,298		5,709	7.8%
Total Retirement Plan Services	$	2,411	$	3,000	$	3,367	$	2,943	$	2,799	16.1%	$	7,839	$	9,109	16.2%
Life Insurance:
IUL/UL	$	24	$	42	$	26	$	27	$	40	66.7%	$	61	$	93	52.5%
MoneyGuard®		26		36		22		24		22	-15.4%		65		69	6.2%
VUL		40		92		34		44		36	-10.0%		89		114	28.1%
Term		42		47		43		48		47	11.9%		106		138	30.2%
Executive Benefits		34		37		30		50		26	-23.5%		85		104	22.4%
Total Life Insurance	$	166	$	254	$	155	$	193	$	171	3.0%	$	406	$	518	27.6%
Group Protection:
Life	$	22	$	163	$	53	$	62	$	41	86.4%	$	101	$	157	55.4%
Disability		20		199		47		59		37	85.0%		85		143	68.2%
Dental		6		23		5		6		10	66.7%		16		21	31.3%
Total Group Protection	$	48	$	385	$	105	$	127	$	88	83.3%	$	202	$	321	58.9%
Percent employee-paid		50.1%		35.0%		57.0%		48.5%		49.4%			58.6%		51.6%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Operating Revenues
Annuities	$	1,267	$	1,282	$	1,232	$	1,169	$	1,183	-6.6%	$	3,720	$	3,583	-3.7%
Retirement Plan Services		328		335		318		315		316	-3.7%		989		949	-4.0%
Life Insurance		2,325		1,844		1,825		1,800		1,762	-24.2%		6,293		5,387	-14.4%
Group Protection		1,243		1,252		1,303		1,323		1,333	7.2%		3,743		3,959	5.8%
Other Operations		42		56		40		34		36	-14.3%		125		111	-11.2%
Total segment operating revenues	$	5,205	$	4,769	$	4,718	$	4,641	$	4,630	-11.0%	$	14,870	$	13,989	-5.9%
General and Administrative Expenses,
Net of Amounts Capitalized (1)
Annuities	$	115	$	125	$	112	$	108	$	118	2.6%	$	352	$	338	-4.0%
Retirement Plan Services		70		80		69		69		75	7.1%		213		213	0.0%
Life Insurance		121		138		117		115		132	9.1%		365		365	0.0%
Group Protection		163		177		165		166		182	11.7%		482		513	6.4%
Other Operations		143		52		48		48		70	-51.0%		233		165	-29.2%
Total	$	612	$	572	$	511	$	506	$	577	-5.7%	$	1,645	$	1,594	-3.1%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Annuities		9.1%		9.7%		9.1%		9.3%		10.0%			9.5%		9.4%
Retirement Plan Services		21.5%		23.8%		21.7%		21.8%		23.7%			21.5%		22.4%
Life Insurance		5.2%		7.5%		6.4%		6.4%		7.5%			5.8%		6.8%
Group Protection		13.1%		14.1%		12.7%		12.5%		13.7%			12.9%		13.0%
Other Operations		345.5%		96.8%		116.6%		141.5%		195.3%			186.3%		149.9%
Total		11.8%		12.0%		10.8%		10.9%		12.5%			11.1%		11.4%
(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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	662	$	642	$	562	$	559	$	634	-4.2%	$	1,797	$	1,755	-2.3%
Commissions		656		760		654		656		659	0.5%		1,924		1,970	2.4%
Taxes, licenses and fees		79		89		98		83		82	3.8%		252		262	4.0%
Interest and debt expense		66		66		66		68		71	7.6%		196		205	4.6%
Expenses associated with reserve financing
and letters of credit		26		26		26		27		27	3.8%		76		80	5.3%
Total adjusted operating commissions and other
expenses incurred		1,489		1,583		1,406		1,393		1,473	-1.1%		4,245		4,272	0.6%
Less Amounts Capitalized
General and administrative expenses		(50)		(70)		(51)		(53)		(57)	-14.0%		(152)		(161)	-5.9%
Commissions		(253)		(361)		(265)		(281)		(283)	-11.9%		(745)		(828)	-11.1%
Taxes, licenses and fees		(9)		(15)		(11)		(10)		(9)	0.0%		(29)		(30)	-3.4%
Total amounts capitalized		(312)		(446)		(327)		(344)		(349)	-11.9%		(926)		(1,019)	-10.0%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,177		1,137		1,079		1,049		1,124	-4.5%		3,319		3,253	-2.0%
Amortization
Amortization of DAC, VOBA and other intangibles		821		263		289		250		381	-53.6%		1,386		920	-33.6%
Total operating commissions and other expenses	$	1,998	$	1,400	$	1,368	$	1,299	$	1,505	-24.7%	$	4,705	$	4,173	-11.3%
Page 11

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Annuities
Earned rate on reserves		3.07%		3.06%		2.99%		3.09%		3.25%	18		3.15%		3.11%	(4)
Variable investment income on reserves (1)		0.28%		0.31%		0.23%		0.11%		0.01%	(27)		0.21%		0.12%	(9)
Net investment income yield on reserves		3.35%		3.37%		3.22%		3.20%		3.26%	(9)		3.36%		3.23%	(13)
Interest rate credited to contract holders		1.90%		1.82%		1.85%		1.90%		1.93%	3		1.97%		1.89%	(8)
Interest rate spread		1.45%		1.55%		1.37%		1.30%		1.33%	(12)		1.39%		1.34%	(5)
Base spreads excluding variable investment income		1.17%		1.24%		1.14%		1.19%		1.32%	15		1.18%		1.22%	4
Retirement Plan Services
Earned rate on reserves		3.56%		3.51%		3.45%		3.49%		3.62%	6		3.60%		3.52%	(8)
Variable investment income on reserves (1)		0.22%		0.39%		0.19%		0.14%		0.03%	(19)		0.20%		0.12%	(8)
Net investment income yield on reserves		3.78%		3.90%		3.64%		3.63%		3.65%	(13)		3.80%		3.64%	(16)
Interest rate credited to contract holders		2.65%		2.63%		2.55%		2.55%		2.57%	(8)		2.67%		2.56%	(11)
Interest rate spread		1.13%		1.27%		1.09%		1.08%		1.08%	(5)		1.13%		1.08%	(5)
Base spreads excluding variable investment income		0.91%		0.88%		0.90%		0.94%		1.05%	14		0.93%		0.96%	3
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.64%		4.67%		4.60%		4.50%		4.49%	(15)		4.68%		4.53%	(15)
Variable investment income on reserves (1)		1.23%		0.85%		0.54%		0.36%		-0.35%	(158)		1.22%		0.18%	(104)
Net investment income yield on reserves		5.87%		5.52%		5.14%		4.86%		4.14%	(173)		5.90%		4.71%	(119)
Interest rate credited to contract holders		3.76%		3.76%		3.77%		3.74%		3.79%	3		3.77%		3.77%	-
Interest rate spread		2.11%		1.76%		1.37%		1.12%		0.35%	(176)		2.13%		0.94%	(119)
Base spreads excluding alternative investments		1.05%		1.12%		1.06%		0.99%		0.93%	(12)		1.07%		0.99%	(8)
Base spreads assuming 10% annualized yield on alternative
investments		1.24%		1.35%		1.30%		1.25%		1.19%	(5)		1.26%		1.25%	(1)
Total (2)
Earned rate (3)		3.93%		3.80%		3.80%		3.77%		3.96%	3		3.94%		3.84%	(10)
Variable investment income (1) (3)		0.72%		0.53%		0.36%		0.22%		-0.14%	(86)		0.70%		0.15%	(55)
Net investment income yield (3)		4.65%		4.33%		4.16%		3.99%		3.82%	(83)		4.64%		3.99%	(65)
(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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	30	$	27	$	30	$	25	$	57	90.0%	$	89	$	112	25.8%
Fee income		690		702		658		611		590	-14.5%		2,022		1,860	-8.0%
Net investment income		371		349		360		337		379	2.2%		1,052		1,076	2.3%
Operating realized gain (loss)		49		55		54		51		52	6.1%		152		157	3.3%
Amortization of deferred gain		7		7		6		6		6	-14.3%		19		19	0.0%
Other revenues		120		142		124		139		99	-17.5%		386		359	-7.0%
Total operating revenues		1,267		1,282		1,232		1,169		1,183	-6.6%		3,720		3,583	-3.7%
Operating expenses:
Interest credited		210		203		207		214		224	6.7%		608		646	6.3%
Benefits		135		138		152		180		(56)	NM		411		275	-33.1%
Commissions incurred		276		287		268		257		255	-7.6%		849		780	-8.1%
Other expenses incurred		258		280		260		243		251	-2.7%		776		753	-3.0%
Amounts capitalized		(113)		(132)		(118)		(110)		(117)	-3.5%		(384)		(345)	10.2%
Amortization		98		115		112		90		92	-6.1%		327		294	-10.1%
Total operating expenses		864		891		881		874		649	-24.9%		2,587		2,403	-7.1%
Income (loss) from operations before taxes		403		391		351		295		534	32.5%		1,133		1,180	4.1%
Federal income tax expense (benefit)		65		59		49		39		85	30.8%		182		173	-4.9%
Income (loss) from operations	$	338	$	332	$	302	$	256	$	449	32.8%	$	951	$	1,007	5.9%
Effective Federal Income Tax Rate		16.1%		15.1%		14.0%		13.1%		15.9%			16.1%		14.6%
Average Equity, Excluding Goodwill and AOCI	$	5,282	$	5,310	$	5,298	$	5,665	$	6,266	18.6%	$	5,143	$	5,743	11.7%
ROE, Excluding Goodwill and AOCI		25.6%		25.0%		22.8%		18.1%		28.7%			24.7%		23.4%
Return on Average Account Values		80		78		74		67		122	42		77		87	10
Income (Loss) from Operations
Variable annuity		287		295		269		230		401	39.7%		840		900	7.1%
Fixed annuity		51		37		33		26		48	-5.9%		111		107	-3.6%
Account Values, Net of Reinsurance – End of Period
Variable account values without GLBs	$	65,223	$	69,625	$	66,584	$	59,163	$	57,749	-11.5%	$	65,223	$	57,749	-11.5%
Variable account values with GLBs		84,320		86,234		78,837		68,468		64,057	-24.0%		84,320		64,057	-24.0%
Fixed account values		16,804		16,866		16,723		16,621		16,974	1.0%		16,804		16,974	1.0%
Total account values		166,347		172,725		162,144		144,252		138,780	-16.6%		166,347		138,780
Percent variable account values with GLBs		50.7%		49.9%		48.6%		47.5%		46.2%			50.7%		46.2%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	75	$	76	$	70	$	65	$	64	-14.7%	$	220	$	199	-9.5%
Net investment income		245		250		238		241		244	-0.4%		742		723	-2.6%
Other revenues		8		9		10		9		8	0.0%		27		27	0.0%
Total operating revenues		328		335		318		315		316	-3.7%		989		949	-4.0%
Operating expenses:
Interest credited		153		154		152		156		161	5.2%		462		469	1.5%
Benefits		1		1		1		1		1	0.0%		2		2	0.0%
Commissions incurred		21		21		20		18		20	-4.8%		63		58	-7.9%
Other expenses incurred		78		89		79		76		82	5.1%		236		237	0.4%
Amounts capitalized		(5)		(7)		(5)		(5)		(6)	-20.0%		(15)		(15)	0.0%
Amortization		8		9		7		6		(2)	NM		25		11	-56.0%
Total operating expenses		256		267		254		252		256	0.0%		773		762	-1.4%
Income (loss) from operations before taxes		72		68		64		63		60	-16.7%		216		187	-13.4%
Federal income tax expense (benefit)		12		11		9		9		8	-33.3%		38		26	-31.6%
Income (loss) from operations	$	60	$	57	$	55	$	54	$	52	-13.3%	$	178	$	161	-9.6%
Effective Federal Income Tax Rate		16.8%		16.3%		13.7%		15.5%		13.2%			17.4%		14.1%
Average Equity, Excluding Goodwill and AOCI	$	1,492	$	1,477	$	1,534	$	1,618	$	1,696	13.7%	$	1,518	$	1,616	6.5%
ROE, Excluding Goodwill and AOCI		16.1%		15.4%		14.4%		13.3%		12.2%			15.7%		13.3%
Return on Average Account Values		25		23		23		24		24	(1)		25		23	(2)
Pre-tax Net Margin		41.2%		37.6%		38.6%		39.8%		38.5%			41.0%		39.0%
Net Flows by Market
Small Market	$	(43)	$	98	$	(116)	$	80	$	157	NM	$	35	$	121	245.7%
Mid - Large Market		423		(58)		1,350		1,074		906	114.2%		1,858		3,329	79.2%
Multi-Fund® and Other		(401)		(420)		(288)		(241)		(252)	37.2%		(1,050)		(780)	25.7%
Net Flows – Trailing Twelve Months	$	1,183	$	464	$	1,062	$	1,458	$	2,290	93.6%	$	1,183	$	2,290	93.6%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	256	$	266	$	277	$	283	$	289	12.9%	$	767	$	849	10.7%
Fee income		1,230		848		846		840		876	-28.8%		3,014		2,561	-15.0%
Net investment income		832		716		688		665		586	-29.6%		2,493		1,939	-22.2%
Operating realized gain (loss)		-		(4)		1		(2)		(3)	NM		(4)		(4)	0.0%
Amortization of deferred gain on
business sold through reinsurance		3		13		12		12		12	300.0%		8		37	NM
Other revenues		4		5		1		2		2	-50.0%		15		5	-66.7%
Total operating revenues		2,325		1,844		1,825		1,800		1,762	-24.2%		6,293		5,387	-14.4%
Operating expenses:
Interest credited		375		322		325		329		329	-12.3%		1,117		982	-12.1%
Benefits		976		1,126		1,126		1,041		3,736	282.8%		3,148		5,903	87.5%
Commissions incurred		153		236		156		176		177	15.7%		403		509	26.3%
Other expenses incurred		201		234		202		199		208	3.5%		604		609	0.8%
Amounts capitalized		(175)		(276)		(182)		(204)		(202)	-15.4%		(468)		(588)	-25.6%
Amortization		682		105		133		120		257	-62.3%		929		511	-45.0%
Total operating expenses		2,212		1,747		1,760		1,661		4,505	103.7%		5,733		7,926	38.3%
Income (loss) from operations before taxes		113		97		65		139		(2,743)	NM		560		(2,539)	NM
Federal income tax expense (benefit)		20		17		7		25		(583)	NM		105		(551)	NM
Income (loss) from operations	$	93	$	80	$	58	$	114	$	(2,160)	NM	$	455	$	(1,988)	NM
Effective Federal Income Tax Rate		17.6%		17.1%		11.3%		17.6%		21.3%			18.8%		21.7%
Average Equity, Excluding Goodwill and AOCI	$	9,245	$	8,971	$	8,831	$	9,294	$	8,213	-11.2%	$	9,063	$	8,779	-3.1%
ROE, Excluding Goodwill and AOCI		4.0%		3.6%		2.6%		4.9%		NM			6.7%		-30.2%
Average Account Values, Net of Reinsurance	$	59,642	$	51,067	$	51,236	$	49,380	$	47,742	-20.0%	$	58,902	$	49,453	-16.0%
In-Force Face Amount
UL and other	$	357,624	$	362,106	$	361,490	$	361,565	$	362,098	1.3%	$	357,624	$	362,098	1.3%
Term insurance		587,372		611,854		635,123		663,140		689,101	17.3%		587,372		689,101	17.3%
Total in-force face amount	$	944,996	$	973,960	$	996,613	$	1,024,705	$	1,051,199	11.2%	$	944,996	$	1,051,199	11.2%
Page 15

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Income (Loss) from Operations						��
Operating revenues:
Insurance premiums	$	1,107	$	1,117	$	1,169	$	1,187	$	1,200	8.4%	$	3,333	$	3,556	6.7%
Net investment income		91		90		85		86		83	-8.8%		276		254	-8.0%
Other revenues		45		45		49		50		50	11.1%		134		149	11.2%
Total operating revenues		1,243		1,252		1,303		1,323		1,333	7.2%		3,743		3,959	5.8%
Operating expenses:
Interest credited		1		2		1		2		1	0.0%		4		4	0.0%
Benefits		971		1,072		1,027		926		939	-3.3%		2,818		2,892	2.6%
Commissions incurred		88		95		94		96		101	14.8%		266		291	9.4%
Other expenses incurred		209		225		217		214		235	12.4%		626		667	6.5%
Amounts capitalized		(19)		(30)		(21)		(24)		(23)	-21.1%		(61)		(69)	-13.1%
Amortization		33		34		37		34		34	3.0%		105		104	-1.0%
Total operating expenses		1,283		1,398		1,355		1,248		1,287	0.3%		3,758		3,889	3.5%
Income (loss) from operations before taxes		(40)		(146)		(52)		75		46	215.0%		(15)		70	NM
Federal income tax expense (benefit)		(8)		(31)		(11)		16		9	212.5%		(3)		15	NM
Income (loss) from operations	$	(32)	$	(115)	$	(41)	$	59	$	37	215.6%	$	(12)	$	55	NM
Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%			21.0%		21.0%
Average Equity, Excluding Goodwill and AOCI	$	2,759	$	2,810	$	2,899	$	2,988	$	3,012	9.2%	$	2,736	$	2,966	8.4%
ROE, Excluding Goodwill and AOCI		-4.6%		-16.4%		-5.6%		7.9%		4.9%			-0.6%		2.5%
Loss Ratios by Product Line
Life		105.1%		108.7%		91.0%		80.5%		71.6%			95.2%		81.0%
Disability		77.7%		90.2%		87.2%		76.7%		83.2%			78.5%		82.3%
Dental		75.7%		71.1%		71.1%		76.9%		72.0%			78.0%		73.3%
Total		87.8%		96.1%		88.0%		78.2%		78.3%			84.7%		81.4%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Other Operations
Operating revenues:
Insurance premiums	$	1	$	10	$	1	$	3	$	2	100.0%	$	9	$	6	-33.3%
Net investment income		37		40		41		40		34	-8.1%		107		116	8.4%
Other revenues		4		6		(2)		(9)		-	-100.0%		9		(11)	NM
Total operating revenues		42		56		40		34		36	-14.3%		125		111	-11.2%
Operating expenses:
Interest credited		10		10		12		9		9	-10.0%		32		30	-6.3%
Benefits		21		21		14		21		24	14.3%		59		60	1.7%
Commissions and other expenses		117		19		12		1		28	-76.1%		171		43	-74.9%
Interest and debt expense		66		66		66		68		71	7.6%		196		205	4.6%
Spark program expense		22		30		31		44		44	100.0%		57		118	107.0%
Total operating expenses		236		146		135		143		176	-25.4%		515		456	-11.5%
Income (loss) from operations before taxes		(194)		(90)		(95)		(109)		(140)	27.8%		(390)		(345)	11.5%
Federal income tax expense (benefit)		(42)		(22)		(15)		(17)		(27)	35.7%		(83)		(60)	27.7%
Income (loss) from operations	$	(152)	$	(68)	$	(80)	$	(92)	$	(113)	25.7%	$	(307)	$	(285)	7.2%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	6,472	$	6,169	$	6,284	$	9,020	$	12,087	86.8%	$	6,025	$	6,284	4.3%
Business acquired (sold) through reinsurance		-		(650)		-		-		-	NM		-		-	NM
Deferrals		312		446		328		345		350	12.2%		932		1,023	9.8%
Operating amortization		(820)		(259)		(284)		(245)		(375)	54.3%		(1,378)		(905)	34.3%
Deferrals, net of operating amortization		(508)		187		44		100		(25)	95.1%		(446)		118	126.5%
Amortization associated with benefit ratio unlocking		4		(11)		36		64		35	NM		(13)		134	NM
Adjustment related to realized (gains) losses		10		36		(37)		(131)		(35)	NM		51		(201)	NM
Adjustment related to unrealized (gains) losses		191		553		2,693		3,034		1,834	NM		552		7,561	NM
Balance as of end-of-period	$	6,169	$	6,284	$	9,020	$	12,087	$	13,896	125.3%	$	6,169	$	13,896	125.3%
DFEL
Balance as of beginning-of-period	$	433	$	396	$	415	$	1,363	$	4,097	NM	$	401	$	415	3.5%
Business acquired (sold) through reinsurance		-		(290)		-		-		-	NM		-		-	NM
Deferrals		251		294		256		270		273	8.8%		722		800	10.8%
Operating amortization		(522)		(147)		(151)		(145)		(190)	63.6%		(831)		(486)	41.5%
Deferrals, net of operating amortization		(271)		147		105		125		83	130.6%		(109)		314	NM
Amortization associated with benefit ratio unlocking		1		(1)		6		10		3	200.0%		(2)		18	NM
Adjustment related to realized (gains) losses		(8)		(1)		(6)		(12)		(18)	NM		(10)		(35)	NM
Adjustment related to unrealized (gains) losses		241		164		843		2,611		1,587	NM		116		5,040	NM
Balance as of end-of-period	$	396	$	415	$	1,363	$	4,097	$	5,752	NM	$	396	$	5,752	NM
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	4,561	$	4,637	$	6,049	$	6,312	$	6,434	41.1%	$	4,561	$	6,434	41.1%
Page 18

Lincoln Financial Group
Annuities – Account Value Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Fixed Annuities
Balance as of beginning-of-period	$	24,840	$	24,642	$	24,728	$	24,475	$	24,253	-2.4%	$	25,405	$	24,728	-2.7%
Gross deposits		342		413		374		524		1,167	241.2%		611		2,066	238.1%
Full surrenders and deaths		(489)		(415)		(420)		(457)		(489)	0.0%		(1,464)		(1,366)	6.7%
Other contract benefits		(163)		(198)		(171)		(176)		(167)	-2.5%		(419)		(513)	-22.4%
Net flows		(310)		(200)		(217)		(109)		511	264.8%		(1,272)		187	114.7%
Contract holder assessments		(20)		(17)		(15)		(12)		(10)	50.0%		(66)		(39)	40.9%
Reinvested interest credited		132		303		(21)		(101)		82	-37.9%		575		(40)	NM
Balance as of end-of-period, gross		24,642		24,728		24,475		24,253		24,836	0.8%		24,642		24,836	0.8%
Reinsurance ceded		(7,838)		(7,862)		(7,752)		(7,632)		(7,862)	-0.3%		(7,838)		(7,862)	-0.3%
Balance as of end-of-period, net	$	16,804	$	16,866	$	16,723	$	16,621	$	16,974	1.0%	$	16,804	$	16,974	1.0%
Variable Annuities
Balance as of beginning-of-period	$	151,396	$	149,550	$	155,866	$	145,428	$	127,639	-15.7%	$	140,313	$	155,866	11.1%
Gross deposits		2,365		2,598		2,331		2,178		2,095	-11.4%		8,118		6,603	-18.7%
Full surrenders and deaths		(1,875)		(1,858)		(1,567)		(1,366)		(1,302)	30.6%		(5,647)		(4,234)	25.0%
Other contract benefits		(1,021)		(1,195)		(1,100)		(1,021)		(985)	3.5%		(3,112)		(3,107)	0.2%
Net flows		(531)		(455)		(336)		(209)		(192)	63.8%		(641)		(738)	-15.1%
Contract holder assessments		(723)		(727)		(692)		(655)		(638)	11.8%		(2,112)		(1,986)	6.0%
Change in market value and reinvestment		(592)		7,498		(9,410)		(16,925)		(4,995)	NM		11,990		(31,328)	NM
Balance as of end-of-period, gross		149,550		155,866		145,428		127,639		121,814	-18.5%		149,550		121,814	-18.5%
Reinsurance ceded		(7)		(7)		(7)		(8)		(8)	-14.3%		(7)		(8)	-14.3%
Balance as of end-of-period, net	$	149,543	$	155,859	$	145,421	$	127,631	$	121,806	-18.5%	$	149,543	$	121,806	-18.5%
Total
Balance as of beginning-of-period	$	176,236	$	174,192	$	180,594	$	169,903	$	151,892	-13.8%	$	165,718	$	180,594	9.0%
Gross deposits		2,707		3,011		2,705		2,702		3,262	20.5%		8,729		8,669	-0.7%
Full surrenders and deaths		(2,364)		(2,273)		(1,987)		(1,823)		(1,791)	24.2%		(7,111)		(5,600)	21.2%
Other contract benefits		(1,184)		(1,393)		(1,271)		(1,197)		(1,152)	2.7%		(3,531)		(3,620)	-2.5%
Net flows		(841)		(655)		(553)		(318)		319	137.9%		(1,913)		(551)	71.2%
Contract holder assessments		(743)		(744)		(707)		(667)		(648)	12.8%		(2,178)		(2,025)	7.0%
Change in market value and reinvestment		(460)		7,801		(9,431)		(17,026)		(4,913)	NM		12,565		(31,368)	NM
Balance as of end-of-period, gross		174,192		180,594		169,903		151,892		146,650	-15.8%		174,192		146,650	-15.8%
Reinsurance ceded		(7,845)		(7,869)		(7,759)		(7,640)		(7,870)	-0.3%		(7,845)		(7,870)	-0.3%
Balance as of end-of-period, net	$	166,347	$	172,725	$	162,144	$	144,252	$	138,780	-16.6%	$	166,347	$	138,780	-16.6%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
General Account
Balance as of beginning-of-period	$	22,995	$	23,152	$	23,639	$	23,958	$	24,917	8.4%	$	22,916	$	23,639	3.2%
Gross deposits		504		908		572		1,132		702	39.3%		1,417		2,405	69.7%
Withdrawals		(647)		(631)		(554)		(485)		(575)	11.1%		(1,820)		(1,614)	11.3%
Net flows		(143)		277		18		647		127	188.8%		(403)		791	296.3%
Transfers between fixed and variable accounts		149		59		154		160		69	-53.7%		188		385	104.8%
Contract holder assessments		(3)		(4)		(3)		(3)		(3)	0.0%		(10)		(10)	0.0%
Reinvestment interest credited		154		155		150		155		162	5.2%		461		467	1.3%
Balance as of end-of-period	$	23,152	$	23,639	$	23,958	$	24,917	$	25,272	9.2%	$	23,152	$	25,272	9.2%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	72,913	$	72,454	$	75,475	$	71,385	$	61,789	-15.3%	$	65,391	$	75,475	15.4%
Gross deposits		1,907		2,092		2,795		1,811		2,097	10.0%		6,422		6,704	4.4%
Withdrawals		(1,785)		(2,749)		(1,867)		(1,545)		(1,413)	20.8%		(5,176)		(4,825)	6.8%
Net flows		122		(657)		928		266		684	NM		1,246		1,879	50.8%
Transfers between fixed and variable accounts		(154)		(77)		(230)		(9)		(41)	73.4%		(338)		(282)	16.6%
Contract holder assessments		(66)		(67)		(64)		(60)		(57)	13.6%		(193)		(181)	6.2%
Change in market value and reinvestment		(361)		3,822		(4,724)		(9,793)		(3,303)	NM		6,348		(17,819)	NM
Balance as of end-of-period	$	72,454	$	75,475	$	71,385	$	61,789	$	59,072	-18.5%	$	72,454	$	59,072	-18.5%
Total
Balance as of beginning-of-period	$	95,908	$	95,606	$	99,114	$	95,343	$	86,706	-9.6%	$	88,307	$	99,114	12.2%
Gross deposits		2,411		3,000		3,367		2,943		2,799	16.1%		7,839		9,109	16.2%
Withdrawals		(2,432)		(3,380)		(2,421)		(2,030)		(1,988)	18.3%		(6,996)		(6,439)	8.0%
Net flows		(21)		(380)		946		913		811	NM		843		2,670	216.7%
Transfers between fixed and variable accounts		(5)		(18)		(76)		151		28	NM		(150)		103	168.7%
Contract holder assessments		(69)		(71)		(67)		(63)		(60)	13.0%		(203)		(191)	5.9%
Change in market value and reinvestment		(207)		3,977		(4,574)		(9,638)		(3,141)	NM		6,809		(17,352)	NM
Balance as of end-of-period	$	95,606	$	99,114	$	95,343	$	86,706	$	84,344	-11.8%	$	95,606	$	84,344	-11.8%
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
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
General Account
Balance as of beginning-of-period	$	38,013	$	37,969	$	38,094	$	37,921	$	37,817	-0.5%	$	38,136	$	38,094	-0.1%
Deposits		894		1,050		878		880		925	3.5%		2,689		2,683	-0.2%
Withdrawals and deaths		(237)		(213)		(315)		(226)		(271)	-14.3%		(776)		(814)	-4.9%
Net flows		657		837		563		654		654	-0.5%		1,913		1,869	-2.3%
Contract holder assessments		(1,086)		(1,107)		(1,131)		(1,096)		(1,101)	-1.4%		(3,235)		(3,327)	-2.8%
Reinvested interest credited		385		395		395		338		331	-14.0%		1,155		1,065	-7.8%
Balance as of end-of-period, gross		37,969		38,094		37,921		37,817		37,701	-0.7%		37,969		37,701	-0.7%
Reinsurance ceded		(620)		(5,562)		(5,544)		(5,549)		(5,533)	NM		(620)		(5,533)	NM
Balance as of end-of-period, net	$	37,349	$	32,532	$	32,377	$	32,268	$	32,168	-13.9%	$	37,349	$	32,168	-13.9%
Separate Account
Balance as of beginning-of-period	$	23,361	$	23,250	$	24,907	$	23,464	$	20,363	-12.8%	$	21,078	$	24,907	18.2%
Deposits		430		822		456		559		461	7.2%		1,133		1,477	30.4%
Withdrawals and deaths		(216)		(221)		(136)		(175)		(137)	36.6%		(502)		(448)	10.8%
Net flows		214		601		320		384		324	51.4%		631		1,029	63.1%
Contract holder assessments		(211)		(247)		(218)		(230)		(231)	-9.5%		(611)		(679)	-11.1%
Change in market value and reinvestment		(114)		1,303		(1,545)		(3,255)		(1,064)	NM		2,152		(5,865)	NM
Balance as of end-of-period, gross		23,250		24,907		23,464		20,363		19,392	-16.6%		23,250		19,392	-16.6%
Reinsurance ceded		(1,018)		(5,593)		(5,215)		(4,498)		(4,209)	NM		(1,018)		(4,209)	NM
Balance as of end-of-period, net	$	22,232	$	19,314	$	18,249	$	15,865	$	15,183	-31.7%	$	22,232	$	15,183	-31.7%
Total
Balance as of beginning-of-period	$	61,374	$	61,219	$	63,001	$	61,385	$	58,180	-5.2%	$	59,214	$	63,001	6.4%
Deposits		1,324		1,872		1,334		1,439		1,386	4.7%		3,822		4,160	8.8%
Withdrawals and deaths		(453)		(434)		(451)		(401)		(408)	9.9%		(1,278)		(1,262)	1.3%
Net flows		871		1,438		883		1,038		978	12.3%		2,544		2,898	13.9%
Contract holder assessments		(1,297)		(1,354)		(1,349)		(1,326)		(1,332)	-2.7%		(3,846)		(4,006)	-4.2%
Change in market value and reinvestment		271		1,698		(1,150)		(2,917)		(733)	NM		3,307		(4,800)	NM
Balance as of end-of-period, gross		61,219		63,001		61,385		58,180		57,093	-6.7%		61,219		57,093	-6.7%
Reinsurance ceded		(1,638)		(11,155)		(10,759)		(10,047)		(9,742)	NM		(1,638)		(9,742)	NM
Balance as of end-of-period, net	$	59,581	$	51,846	$	50,626	$	48,133	$	47,351	-20.5%	$	59,581	$	47,351	-20.5%
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Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 9/30/21				As of 12/31/21				As of 9/30/22
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost
Industry corporate bonds:
Financial services	$	16,476		15.3%	$	16,438		15.6%	$	17,676		15.9%
Basic industry		4,634		4.3%		4,436		4.2%		4,371		3.9%
Capital goods		7,457		6.9%		7,316		7.0%		7,440		6.7%
Communications		4,379		4.1%		4,124		3.9%		4,237		3.8%
Consumer cyclical		5,718		5.3%		5,811		5.5%		6,082		5.5%
Consumer non-cyclical		17,254		16.1%		16,905		16.1%		17,161		15.5%
Energy		5,351		5.0%		4,932		4.7%		4,869		4.4%
Technology		5,213		4.9%		5,173		4.9%		5,562		5.0%
Transportation		3,425		3.2%		3,414		3.2%		3,583		3.2%
Industrial other		2,090		1.9%		2,159		2.1%		2,251		2.0%
Utilities		14,288		13.3%		13,785		13.0%		14,072		12.8%
Government-related entities		1,937		1.8%		1,863		1.8%		1,801		1.6%
Residential mortgage-backed securities ("RMBS")
Agency backed		2,302		2.1%		1,973		1.9%		1,867		1.7%
Non-agency backed		384		0.4%		360		0.3%		372		0.3%
Commercial mortgage-backed securities ("CMBS")		1,528		1.4%		1,552		1.5%		1,789		1.6%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		6,435		6.0%		6,356		6.0%		8,242		7.4%
Other ABS		1,751		1.6%		2,083		2.0%		3,094		2.8%
Municipals		5,543		5.2%		5,322		5.1%		5,412		4.9%
Government:
United States		385		0.4%		375		0.4%		410		0.4%
Foreign		455		0.4%		373		0.4%		377		0.3%
Hybrid & redeemable preferred securities		437		0.4%		408		0.4%		372		0.3%
Total fixed maturity AFS securities, net of allowance for credit losses, at amortized cost		107,442		100.0%		105,158		100.0%		111,040		100.0%
Trading Securities		3,828				4,170				3,978
Equity Securities		216				285				395
Total fixed maturity AFS, trading and equity securities	$	111,486			$	109,613			$	115,413
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Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 9/30/21				As of 12/31/21				As of 9/30/22
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	59,792		55.6%	$	58,542		55.7%	$	63,105		56.8%
NAIC 2 (BBB)		43,659		40.6%		42,797		40.7%		44,086		39.7%
Total investment grade		103,451		96.2%		101,339		96.4%		107,191		96.5%
NAIC 3 (BB)		2,561		2.4%		2,278		2.1%		2,203		2.0%
NAIC 4 (B)		1,306		1.2%		1,424		1.4%		1,597		1.5%
NAIC 5 (CCC and lower)		53		0.0%		51		0.0%		47		0.0%
NAIC 6 (in or near default)		71		0.1%		66		0.1%		2		0.0%
Total below investment grade		3,991		3.7%		3,819		3.6%		3,849		3.5%
Total	$	107,442		100.0%	$	105,158		100.0%	$	111,040		100.0%
Commercial Mortgage Loans, at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,971		81.7%	$	14,028		81.7%	$	13,550		80.3%
CM2 (BBB)		2,844		16.6%		2,878		16.8%		3,109		18.4%
CM3-7 (BB and lower)		284		1.7%		265		1.5%		226		1.3%
Total	$	17,099		100.0%	$	17,171		100.0%	$	16,885		100.0%
Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, at Amortized Cost (1)(2)
AAA-A	$	73,763		59.2%	$	72,570		59.3%	$	76,655		59.9%
BBB		46,503		37.3%		45,675		37.3%		47,195		36.9%
BB and lower		4,275		3.5%		4,084		3.4%		4,075		3.2%
Total	$	124,541		100.0%	$	122,329		100.0%	$	127,925		100.0%
(1) Ratings are based upon the designations determined and provided by the National Association of Insurance Commissioners (“NAIC”) or based upon ratings from credit rating
agencies to derive the NAIC designation.
(2) CM ratings reflect the risk-based capital risk category for commercial mortgage loans.  Letter ratings are assumed NAIC equivalent ratings where NAIC 1 = CM1,  NAIC 2 = CM2
and NAIC 3-6 = CM3-7.
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Lincoln Financial Group
Realized Gain (Loss), After-DAC
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Components of Realized Gain (Loss), Pre-Tax
Total adjusted operating realized gain (loss)	$	49	$	51	$	55	$	49	$	49	0.0%	$	148	$	153	3.4%
Total excluded realized gain (loss)		36		(166)		(26)		473		171	NM		(245)		618	NM
Total realized gain (loss), pre-tax	$	85	$	(115)	$	29	$	522	$	220	158.8%	$	(97)	$	771	NM
Components of Excluded Realized Gain (Loss), After-Tax
Credit loss benefit (expense) on mortgage loans on
real estate	$	28	$	26	$	13	$	(5)	$	(7)	NM	$	53	$	-	-100.0%
Credit loss benefit (expense) on reinsurance-related assets		(2)		6		(3)		(1)		(103)	NM		(5)		(107)	NM
Credit loss benefit (expense) on other financial assets		(7)		(1)		(1)		(3)		(5)	28.6%		(8)		(9)	-12.5%
Realized gain (loss) related to certain financial assets		(4)		(6)		(7)		(5)		(40)	NM		(9)		(54)	NM
Realized gain (loss) on equity securities		3		4		3		(6)		2	-33.3%		28		-	-100.0%
Realized gain (loss) on the mark-to-market on certain
instruments		8		34		(9)		-		48	NM		26		40	53.8%
Total realized gain (loss) related to financial
instruments and reinsurance-related assets		26		63		(4)		(20)		(105)	NM		85		(130)	NM
Variable annuity net derivative results:
Hedge program performance, including unlocking
for GLB reserves hedged and benefit ratio unlocking		(4)		(78)		(247)		(183)		(82)	NM		(32)		(512)	NM
GLB non-performance risk component		(2)		(47)		18		74		(11)	NM		(148)		81	154.7%
Total variable annuity net derivative results		(6)		(125)		(229)		(109)		(93)	NM		(180)		(431)	NM
Indexed annuity forward-starting option		(3)		7		43		(3)		2	166.7%		21		41	95.2%
Excluded realized gain (loss), including
benefit ratio unlocking		17		(55)		(190)		(132)		(196)	NM		(74)		(520)	NM
Less: benefit ratio unlocking on GDB
and GLB riders		(12)		77		(170)		(506)		(330)	NM		119		(1,007)	-30.0%
Total excluded realized gain (loss), after-tax	$	29	$	(132)	$	(20)	$	374	$	134	NM	$	(193)	$	487	9.1%
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Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Nine Months Ended
	9/30/21		12/31/21		3/31/22		6/30/22		9/30/22		Change	9/30/21		9/30/22		Change
Revenues
Total revenues	$	5,241	$	4,604	$	4,687	$	5,104	$	4,798	-8.5%	$	14,627	$	14,589	-0.3%
Less:
Excluded realized gain (loss)		36		(166)		(26)		473		171	NM		(245)		618	NM
Amortization of DFEL associated with
benefit ratio unlocking		-		1		(5)		(10)		(3)	NM		2		(18)	NM
Adjusted operating revenues	$	5,205	$	4,769	$	4,718	$	4,641	$	4,630	-11.0%	$	14,870	$	13,989	-5.9%
Net Income
Net income (loss)	$	318	$	220	$	104	$	238	$	(2,574)	NM	$	1,185	$	(2,233)	NM
Less:
Excluded realized gain (loss), after-tax		29		(132)		(20)		374		134	NM		(193)		487	NM
Benefit ratio unlocking, after-tax		(12)		77		(170)		(527)		(339)	NM		119		(1,036)	NM
Impairment of intangibles		-		-		-		-		(634)	NM		-		(634)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		(11)		-		-		-	NM		-		-	NM
Gain (loss) on modification or early extinguishment
of debt, after-tax		(6)		-		-		-		-	100.0%		(6)		-	100.0%
Total adjustments		11		(66)		(190)		(153)		(839)	NM		(80)		(1,183)	NM
Adjusted income (loss) from operations	$	307	$	286	$	294	$	391	$	(1,735)	NM	$	1,265	$	(1,050)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	1.68	$	1.20	$	0.58	$	1.34	$	(15.17)	NM	$	6.19	$	(13.06)	NM
Less:
Excluded realized gain (loss), after-tax		0.15		(0.72)		(0.11)		2.16		0.79	NM		(1.01)		2.84	NM
Benefit ratio unlocking, after-tax		(0.06)		0.42		(0.97)		(3.05)		(2.00)	NM		0.61		(6.04)	NM
Impairment of intangibles		-		-		-		-		(3.73)	NM		-		(3.69)	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		(0.06)		-		-		-	NM		-		-	NM
Gain (loss) on modification or early extinguishment
of debt, after-tax		(0.03)		-		-		-		-	100.0%		(0.03)		-	100.0%
Adjusted income (loss) from operations	$	1.62	$	1.56	$	1.66	$	2.23	$	(10.23)	NM	$	6.62	$	(6.17)	NM
Page 25